Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

Orsu Metals ( TSXv:OSU) was formed in June 2008 by way of the amalgamation of Lero Gold and European Minerals Corporation.

Since being formed in June 2008, Orsu's main focus has been ramping up operations at Varvarinskoye. Varvarinskoye is the first new mine to open in Kazakhstan since the nation became independent in 1991. President Nazerbayev has even visited the site several times in a show of his support. Here at www.themarkettraders.com we too have been watching this story with piqued interest as well.

You see, anytime a new mine goes into production, the entire mining industry – and thousands of investors - watch. Getting a mine into production can take a decade or more of exploration, development, financing, construction and so on. There are so many variables – commodity prices and the market for financing being the primary two – that can delay a new mine or even kill it. So it really is a big deal to see a mining project move forward.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The financial world is in a spot of bother right now, but instead of getting sucked into the vortex of fear, investors should take a step back and look for the opportunities that this crisis is presenting. Make no doubt about it, the Federal Reserve with the help of its trusty printing presses will print the financial system out of trouble. The end result, though, will be a bloated money supply (as if it's not bloated already…) which will fan the flames of inflation and further dampen the enthusiasm for fiat currency. The benefactors of this exercise to print the system out of its deep dark hole, will be none other than Gold and Silver. But, buyer beware. The world is not all milk and honey. Think twice if you are looking at buying shares of a Gold or Silver firm that is involved in some far flung corner of the world. Geopolitical tension in some of these countries can rise quicker than the temperature on a summer's day in Phoenix. Probably wiser to stick close to home where political risk is not a factor. The question then becomes one of "where do I invest in Gold and Silver in North America"? Well, for starters, take a look at the picturesque State of Idaho.

In particular, Idaho's Silver Valley in the Coeur d'Alene mining district is world renowned for its history of Silver mining. In fact, since 1884, the district has produced over 1.18 billion ounces of silver, along with major amounts of lead, zinc, copper, and antimony. In total, more than $2.89 billion worth of metal has been produced from veins in the district.

One company that has caught our attention here at The Market Traders is Canadian listed US Silver Corp (TSXv:USA). US Silver is a relatively new story for the markets. In 2006, US Silver acquired over 10,000 acres of land from Coeur d'Alene Mining (for a mere $15 million) which hosts the past producing Galena Shaft(s) and Mill Complex, the past producing Coeur Shaft and Mill Complex and the Caladay exploration shaft. US Silver has since gone on to acquire additional property in the area to being its land holdings to some 18,000 acres.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

In these tough, challenging markets, Arian Silver continues to forge ahead and continues to keep its nose to the grindstone. Over the past couple months, Arian has issued preliminary inferred resource estimates for its San Jose project and also for its Tepal project. For regular visitors to this site, you will know that these projects are located in Mexico. Problem is, with the negative sentiments swirling about in the markets I think the greater meaning of these resource estimates has been lost. So, let's take a closer look shall we…..

The preliminary inferred resource estimate at the Tepal property shows: 1.18 Million ounces Gold (grading 0.47 g/tonne) and 421 Million pounds Copper (grading 0.24 g/tonne). This estimate is based on the historical data from Tepal plus an additional 23 holes drilled by Arian.

The San Jose preliminary resource calculation shows 27.7 Million ounces Silver, 64.6 Million pounds Lead and 147.5 Million pounds of Zinc.

So, the question now becomes one of assigning some value to these resource estimates. I am going to resort to my usual "back of the envelope" calculations that are fast becoming a trademark here at the SuperCycle Report. Let me stress one more time that these calculations really are "back of the envelope" and are not based on any detailed scientific or engineering number crunching. However, they have yet to steer me wrong as a very basic method of determining whether a stock is overvalued or undervalued.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The North Shore – Another Rossing in the Making?

Mention Uranium exploration to someone and the word Saskatchewan is sure to be uttered at some point in the conversation. But – there is a part of Canada that is poised to possibly eclipse Saskatchewan and its exploration feats. The North Shore of the St. Lawrence River in eastern Quebec is fast becoming recognized for its potential to host some serious deposits of lower grade uranium mineralization. In fact, people in the know are now starting to compare this North Shore area to the famed and fabled Rossing Deposit which has been the centerpiece of uranium mining in the African nation of Namibia. Excitement is building in Quebec and Uracan Resources is right in the thick of it.

SS The Double S Zone SS

The focus of Uracan's efforts over the past year has been its 1000 sq. km North Shore Uranium property and in particular the Double S Zone. A total of 51 drill holes (13,555 meters) were drilled up to the end of 2007 and the assay data from these holes has now been crunched to produce a 43-101 compliant inferred resource. At a cutoff grade of 0.009%, calculations show an inferred resource of 20 million pounds of uranium mineralization. Since the start of 2008, drilling has been ongoing and more mineralization has been found. A further 10,000 meters will be drilled as part of the Summer program which has now started. Once this data is factored into the mix later this year, I fully expect to see a further increase in the size of this resource.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

Antares Minerals is squarely focused on unlocking value in projects in South America. At present, Antares is focused on its Haquira Copper Project in Peru and on its 50/50 joint ventured Rio Grande Copper-Gold Project in Argentina. The Antares team is led by President John Black. Mr. Black is no stranger to South America having a number of years in places like Chile, Ecuador, Peru and Argentina with the likes of Kennecott and Western Mining. Mr. Black is ably assisted by Chief Operating Officer Robert Wunder who has worked around the globe on mining projects for the likes of Kennecott, Echo Bay Mines and Gold Reserve.

Haquira – Positive Preliminary Economic Assessment

The Haquira project is located in south-central Peru adjacent to mining giant Xstrata's La Bamba project. Antares Minerals has now received a positive scoping study and preliminary economic assessment on the near surface portion of the mineralization at the Haquira project. The scoping study shows that for a capital investment of $301 million, a 50,000 tonne per day heap leach mining/milling operation could be built that would see Copper cathode produced using the SX-EW process over an 11 year mine life. This study was centered around a resource of 212 million tonnes of indicated mineralization grading 0.42% Copper and an additional inferred resource of 77.2 million tonnes grading 0.35% Copper.

Baja Mining is squarely focused on advancing its Boleo project (copper,cobalt, zinc, manganese) located in Baja Sur, Mexico towards production. Boleo is located along the east coast of the Baja peninsula about 850 km south of San Diego, California. The Baja team is led by President John Greenslade. Mr. Greenslade spent a number of years with the predecessor of Placer Dome before going on to law school and the start of his own law firm specializing in securities law and mining projects. Mr. Greenslade is ably assisted by VP of Engineering Michael Shaw. Mr. Shaw has spent his long and successful career with a focus on mainly Latin American mining projects.

Boleo – $700 million Project NPV

The Boleo property has a long history that dates back to the late 1800's when local ranchers noted mineralized copper outcroppings. From 1884 to 1934 a French firm (financed by the Rothschilds) mined higher grade ore using underground methods but made no attempt to recover the contained cobalt or zinc. From 1935 to 1984 there were a number of other sporadic attempts at mining with ore being sold to a nearby smelter at Santa Rosalia. In 1992 John Greenslade acquired the property and optioned it out to a Canadian firm called International Curator who spent $23 million on exploration. In 2001 with metals prices low, International Curator relinquished their option and 100% ownership reverted back to John Greenslade. In 2004, Mr. Greenslade rolled the property into a publicly traded entity that today is recognized as Baja Mining and he has not looked back since.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

A Well Diversified Global Exposure

Ask yourself this question. Would you consider investing your entire portfolio into one single energy stock that was focused on one single project in one part of the world?

Of course not. That would be too risky and not in keeping with the tenets of prudent risk management. Now ask yourself this question. Would you invest a portion of your portfolio into an energy company that has taken steps to wisely diversify itself in many projects in many places around the world? If you are like me, you are saying yes to this question.

Now, what if this energy company in question was trading in the markets for the equivalent of its cash and securities on hand? What if this company had not yet been recognized by investors? Would you leap at the opportunity to buy some shares? If you are like me, you are saying yes.

Welcome to Brownstone Ventures – a well diversified energy investment opportunity. I recently discovered Brownstone Ventures and when I learned it was managed by Sheldon Inwentash I immediately became excited. You see, Mr. Inwentash is no stranger to the concept of assembling a diverse portfolio of projects under a single publicly traded entity. He has done it with a couple other Canadian listed firms already. With Brownstone, he is simply following his tried and true model all over again, except this time the focus is oil and gas.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

In a trading note released recently, we highlighted a Canadian company called Raytec Metals and focused on its potash exploration properties in the Province of Saskatchewan. Raytec has now released a resource estimate which has prompted this report to be written.

Recall that we noted Raytec had assembled 2 land packages in the Province of Saskatchewan. The first, KP441, comprises 198,720 acres of land near Saskatoon, Saskatchewan. KP441 is in close proximity to potash mining operations currently in operation by Agrium (TSX:AGU), Mosaic (NYSE: MOS) and Potash Corp (TSX: POT). The second property package (92,160 acres), KP452, is situated 2 hours drive east of Regina, Saskatchewan in close proximity to operations run by Mosaic and Potash Corp.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The Golden Highway

The financial markets in Canada are filled with companies hot in pursuit of Gold. So much so in fact, investors can quickly lose sight of just where to focus their efforts. At The Market Traders there is one area in Canada that we feel investors should direct their attention to and that is the Abitibi Greenstone Belt which trends in an east-west direction and is intersected by the Ontario-Quebec provincial border. This geological formation is truly prolific thanks in large measure to a geological fault zone running through the area called the Larder Lake-Cadillac Break. Just for fun sometime, approach a person familiar with Gold in Canada and mention the Larder Lake-Cadillac Break. Watch the smile that crosses that person's face and you will know what I am talking about. In fact it could well be argued that the Abitibi Greenstone Belt is almost like a Golden Highway. The map on the following page (taken from www.niogold.com) shows the orientation of this belt and the documented historical production that has come out of the area.

One of the companies that we have been following for some time now is Niogold. I first met company President Michael Iverson in San Francisco back in November 2007 at a lunch event (hosted by well known financial market commentator Al Korelin) at Tommy Toy's Chinese Restaurant. I was impressed with the energy exuded by Michael Iverson and his Vice President Rock LeFrancois and I have been keeping an eye on Niogold ever since.