Welcome To The Houston Lake Mining HUB On AGORACOM

"Positioned Today for the Resources of Tomorrow"

Free
Message: Houston Lake Mining Continues to define more Gold
Junior miners feel meltdown heat
By BRYAN MEADOWS
Monday, October 6, 2008



Accurassay Labs general manager Jason Moore.

The financial crisis gripping the United States has trickled down to Northwestern Ontario, cooling the hot mining sector.
With investor confidence shaken, junior mining companies are watching their spending, wondering if investment lifelines will wither and dry up.
“The current financial crisis has impacted our company‘s share prices, but to a lesser extent than most other junior mining companies,” said Houston Lake Mining president Grayme Anthony.
Jason Moore, general manager of Accurassay Laboratories in Thunder Bay, said the Wall Street meltdown has yet to affect the big mining companies as their success is based on current high metal and gold prices.
“Because 60 to 70 per cent of the company‘s business is from this sector,” he said, the situation is not all doom and gloom.
That being said, Moore added that some of the “newer” junior mining companies are facing cash flow problems and “are being very restrictive” with their money.
That is where “we‘re starting to be impacted,” he said, explaining that the juniors are more likely to cancel projects in the bush.
Actlabs spokesman Ryan Mackie said he feels many mining companies raised capital prior to the meltdown.
“As long as the demand (for minerals) is there, people will continue to explore . . . there may be a slowdown, but it won‘t be that bad,” Mackie predicted.
Accurassay Laboratories and Actlabs provide mineral analysis services to the Canadian and international mining industry.

Prior to the meltdown, Moore said, junior companies were cash heavy, and now with money in the bank they are being cautious about how they spend it.

Anthony explained that there are two ways of reacting to the current market conditions: cut back on all activities; or make hay while the sun shines. Given the economic uncertainties, gold, his company‘s main target, “still appears to be destined for quite a run.” With Houston Lake successful in raising funds in late August and early September, Anthony said, “we are well positioned to carry out our plans for drilling and advancing our West Cedartree gold project near Kenora,‘‘ adding expectations for the project “continue to be high.‘‘

Meanwhile, opportunity can sometimes be found in market calamity. Anthony suggested that “current market conditions represent a great opportunity to distinguish ourselves by continuing to be active when most of our competitors are relatively quiet.” “Adding a U.S. investor relations presence (also) leverages this higher profile,” he added. The company announced last week that it has retained California-based Incorporated Communications Services to conduct media awareness and investor relations programs.

Share
New Message
Please login to post a reply