Resource World Magazine

Two attractive junior miners to watch Gold Reach Resources Ltd. [GRV-TSXV] holds a 100% interest in a large copper-gold-molybdenum porphyry resource 6 km south of the producing, open pit Huckleberry Mine, near Houston, British Columbia. The company and its Ootsa Project boast many positive qualities an investor should look for in this challenging resource market: • A tight share structure (35.6 million) with proven management team at the helm • $4.5 million in the bank with a drill program underway to increase resources • A road accessible project close to infrastructure, power, in a safe mining jurisdiction • Significant copper-gold-molybdenum grades that are comparable and locally higher than the project's producing neighbour as well as to other active mines in British Columbia • Near surface higher-grade zones that are potentially open pit mineable The Ootsa Project currently hosts resources containing 2.1 billion lbs of copper, almost 1.9 million ounces of gold, 32 million ounces of silver and 211 million lbs of molybdenum. These resources are currently based on three known zones of mineralization; the Seel, Ox and Damascus Silver Vein. A number of new mineralized zones have been discovered, the most significant ones have been dubbed the East Seel and West Seel zones. Recent drill results from these zones include 92.4 metres averaging 0.76% copper equivalent and 305.2 metres averaging 0.57% copper equivalent. Geological and geophysical evidence indicates there are additional untested mineralized zones within the 470 km2 property. Based on this year's excellent drill results, I anticipate that further significant resource increases are inevitable. Gold Reach intends to table updated resource estimates for the Ox and Seel zones in Q4 - 2013 and Q1 - 2014, respectively. These new resource estimates should include the East and West Seel zones In my opinion, GRV's Ootsa asset is a prime candidate for an eventual takeover bid, based on its resource potential and proximity to a producing open-pit mine. HWY 50 Gold Corp. [HWY-TSXV] is an earlier stage exploration company looking for the next Cortez Hills or Pipeline-style discovery in Nevada. What excites me about this company is the management team. HWY 50 is lead by the Leask brothers, who DECEMBER/JANUARY 2014 RW December 2013.indd 29 BROKER'S P IC KS S h a y n e Ny q u v es t both have professional geological engineering backgrounds. Gordon and John have over 65 years combined experience in the industry. In 2001, they recognized the significance of the geology around Placer Dome's Pediment discovery and began aggressively acquiring ground in the Cortez trend. In 2003, when Placer Dome discovered the massive Cortez Hills deposit nearby, the significance of the region became clear. The Leask brothers ultimately sold their ground to US Gold Corp. in 2007 for $160 million. Using their extensive knowledge of Nevada geology, Gordon and John Leask believe they have identified another area that could host a massive Cortez or Pipeline-style deposit. There are only a few locations in Nevada where the geological architecture controlling major gold districts is similar; three of these areas have produced in excess of 20 million oz of gold. One more has been identified by the Leask brothers and it has never been tested. That project now sits in HWY 50 Gold's portfolio and is referred to as the Porter Canyon property. Based on management's research and experience, the property hosts all the right ingredients for a potential gold discovery: • A deep-seated crustal structural control on fluid flow and deposition of metals along crosscutting structures • Multiple intrusive events that are Jurassic to Tertiary in age • The presence of favourable host rocks • Gold and pathfinder elements found in the pediment HWY 50 Gold is a high-risk exploration gamble, but nevertheless, I like the jockey and the horse he is riding. The company currently has 19.6 million shares outstanding with a market capitalization of about $8 million. This article is solely the work of its author, Shayne Nyquvest, a registered Investment Advisor at Jordan Capital Markets Inc., a member of both the Investment Industry Regulatory Organization of Canada ("IIROC") and the Canadian Investor Protection Fund ("CIPF"). The views (including recommendations) expressed in it are those of the author alone, and are not necessarily those of Jordan Capital Markets. The information contained herein is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the author or Jordan Capital Markets assume any liability. At this time the author does own Gold Reach Resources and does not own HWY 50 Gold Corp. n www.resourceworld.com 29 12/11/2013 6:12 PM

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