Issue link: http://resourceworld.uberflip.com/i/102869
brok er 's p i c k s Derek W ood Beaufield Resources: great time to take a look? A nyone involved in the junior mining markets over the last year and a half is likely to share a common frustration with stock performance. It has always been my experience that times like these represent opportunities to get involved with companies with much more potential value than represented by their current share price. It is important to focus on situations where companies enjoy a strong cash position, an advanced portfolio of high impact properties and proven management that has a vested interest in the success of the enterprise. Beaufield Resources Inc. [BFD-TSXV] is a company that possesses such criteria. The company has a strong balance sheet with approximately $8 million of working capital. In addition, the current share price is at a significant discount to the price of completed financings over the past several years. Included in this cash position is approximately $1.5 million in Maple Leaf gold coins that were purchased for investment purposes when gold traded under US $1,000 per ounce. Beaufield also has a strong portfolio of advanced, high impact properties that cover three key mineral sectors, including gold, base metals and iron ore. On the company's Shefferville iron property, located in the Labrador trough, surface samples returned values as high as 91.7% iron oxide. In April 2012, an independent technical report on the Shefferville property concluded the property had numerous targets of merit. Over this past summer, 22 holes totaling 2,141 metres were drilled. Results are pending. Also, pending, and expected by year end, is a NI 43-101 resource calculation on Beaufield's base metal Tortigny property, located 100 km from the town of Chibougamou, Québec. Beaufield has drilled more than 16,000 metres since 2010. Results included some of the highest base metal grades in Québec in many years. 24 www.resourceworld.com The NI 43-101 report is expected by year end. Beaufield's Opinaca gold project is located adjacent to Goldcorp's Eleonore property and six km from the site of Goldcorp's proposed Eleonore Mine. Goldcorp plans to start production in 2014 with forecasted annual production of 600,000 ounces of gold. Beaufield enjoyed some early stage exploration success on this property, and it is considered drill ready; however, it is not expected to be a focus until Goldcorp completes road access. This will considerably lower the cost and improve the effectiveness of drilling. Road access is expected to be completed in early 2013. Beaufield recently nominated Kevin Weston as President and CEO of the company, replacing Jens Hansen. Hansen has been instrumental in advancing Beaufield to this point, but stated that Weston's nomination was "key to move Beaufield's high quality projects to the next stage of development and increase shareholder value." Weston is a mining industry veteran with over 30 years experience following his graduation from McGill University in Mining Engineering. Hansen will stay on with Beaufield as a director and continue to add value through his vast experience and knowledge Beaufield is well positioned to participate when a recovery occurs in the junior mining sector. In the meantime, Beaufield has excess working capital, and is continuing to advance its key properties with management that has a history of creating shareholder value. I think that anyone interested in the junior mining sector would do well to consider Beaufield as an investment. I would recommend taking a look at their website for more information. n Junior mining companies are speculative investments whereby significant loss of capital is possible and should be suitable for risk tolerant investors only. This article is solely the work of the author who is a registered investment advisor at Wolverton Securities Ltd. The views (including any recommendations) expressed in this article are those of the author alone, and are not necessarily those of Wolveton Securities Ltd. The information contained in this article is drawn from sources believed to be reliable but its accuracy and completeness is not guaranteed. This article is not to be construed as an offer to sell or a solicitation to buy any securities. Wolverton Securities Ltd. The author of this article may or may not hold securities of the companies mentioned in the article. Wolverton Securities Ltd. Is a member of the Canadian Investor Protection Fund. Derek Wood can be reached at 403-218-3580 or Derek.wood@wolverton.ca NOVEMBER 2012