Saturn Minerals (TSXv: SMI) – Getting Positioned in Saskatchewan

Back in December, 2007 when I attended the FAMMS Conference in Cancun, Mexico I was introduced to a junior firm called Saturn Minerals. In particular I met Stan Szary who is a Director of the company and Krzysztof Mastalerz who is the company geologist. I have since been following Saturn Minerals and I can tell you that my level of fascination is increasing.

Stan Szary grew up in the Canadian Province of Saskatchewan and he has since been keeping his ear to the ground for possible opportunities in Saskatchewan. Several weeks ago, Stan sprang into action like a lion that had been stalking its prey. What made Stan act so fast was news that another Canadian firm Goldsource Mines (TSXv:GXS) had hit upon a coal seam in Saskatchewan when drilling into what it thought should be a diamond bearing kimberlite formation that had been identified through geophysical work. How’s that for serendipity? Goldsource shares shot from 20 cents to near $7 on the news. Lab testing has now confirmed that the coal seams intersected are high volatile bituminous C and sub-bituminous A grade. In layman’s terms, this is “good stuff”. By the way the location of all this action is near a town called Hudson Bay, Saskatchewan. Look it up on a Google search.

What Stan and the team at Saturn have done is partner 60/40 with a related firm called Swift Resources to file coal permit applications on some 2662 sq. kms of land (an area equivalent to about 32 miles x 32 miles). The Saskatchewan Government is currently dealing with the avalanche of coal permit applications that it has received. You see this area of Saskatchewan was not supposed to contain coal according to the geological experts. The deluge of permit filing activity has created quite a buzz. The next week or so will reveal just who got what. Saturn was early enough out of the starting blocks that they should get everything applied for. News confirming just what all was granted by the Gov’t will be a major news event that could move the Saturn stock. Stay tuned….

But there is more to Saturn than just Coal. Saturn has established a presence near Atlin in the north-west portion of the Province of British Columbia as well. Drilling on its Wheelbarrow property returned some fairly decent looking Silver assay results on 9 holes totaling 1995 feet of drilling. The Wheelbarrow property adjoins Adanac Molybdenum’s Ruby Creek property (TSX:AUA) and the Atlin-Rufner Silver,Lead,Zinc mine. Adanac is now advancing Ruby Creek to production. Preliminary rock sampling on its McKee Creek property has uncovered gold bearing quartz veins. McKee Creek has a colorful history of placer gold mining and the quartz veins could be part of a larger gold system. Rock sampling on the Robin property (located 6 kms from Adanac’s Ruby Creek project) has returned some interesting looking Molybdenum assays. Further drilling and exploration is obviously necessary, but these early results certainly boded well for good things down the road.

Prior to the brilliant move to acquire the Saskatchewan coal permits, Saturn shares were languishing at the 11 cent level. Today, Saturn is trading at the 36 cent level which still is not entirely in keeping with its true value. After all, think about it. With 42.7 million shares outstanding, Saturn has a market cap of $12.8 million. Is this proper value for a firm that may be sitting on a gold bearing system at McKee Creek? Is this proper value for a firm that has property adjoining Adanac Moly and another property 6 kms away? Is this proper value for a company poised to participate in one of the most exciting “area plays” in Saskatchewan in years? Not likely, I say.

We at The Market Traders shall be following the Saturn Minerals story closely. The Saskatchewan coal play could be the company maker that sends Saturn shares on an upward trajectory not unlike what we have seen with Goldsource Mines. We are initiating a speculative buy rating on Saturn Minerals. As developments unfold further and as news starts to flow, we will be providing further updates.

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