Issue link: http://resourceworld.uberflip.com/i/355430
A U G U S T / S E P T E M B E R 2 0 1 4 www.resourceworld.com 23 the Red Lake Mine and Bruce Channel is nearing completion. Assay results from drilling stations along the tram are expected throughout 2014. BlackPEarl rESourcES inc. [PXX-TSX] BlackPearl is one of the highest leveraged and highest quality ways to gain exposure to an improving heavy oil outlook, in our analyst's view. The company's produc- tion is 98% heavy oil weighted and it has 30+ year reserve life index (RLI) potential given its significant thermal oil reserves and resources. John Festival and his team have a solid history of value creation hav- ing sold its previous company BlackRock Ventures to Royal Dutch Shell in 2006 for $2.4B (generating a compound annual return to initial shareholders of ~65%). We feel the market is significantly under appreciating the company's organic growth profile through 2016, when production is expected to surpass 16,000 bbl/d, repre- senting a 60% growth profile from 2014 full year forecasts. The company is fully financed for its first phase of development at Onion Lake using current cash plus its existing $150 million credit facility. We believe investors are currently paying for only the company's conventional assets and receive 850 million barrels of thermal upside for free. These are only five out of about 30 com- panies that currently have a seat in the sun at our CG Focus List table. So, if you're looking for sizzling hot picks for sum- mer, please take a look at the Canaccord Genuity Canadian Focus List or email us at hoesgens@canaccord.com for a copy of the complete report, which also includes target prices. n Eric Hoesgen and Dennis Hoesgen can be reached at 604-643-7705 or HIP@Canaccord. com. Dennis Hoesgen and Eric Hoesgen are Senior Investment Advisors with Hoesgen Investment Partners (HIP) at Canaccord Genuity wealth management, a division of Canaccord Genuity Corp, Member-Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaran- teed, nor in providing it does HIP, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This infor- mation is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on fur- ther developments relating to these securities. This report should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and hold- ings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities men- tioned herein. The views expressed are those of the authors and not necessarily those of Canaccord. www.kootenaysilver.com For more information call 604.601.5652 or toll free 1.888.601.5650 NEW NEAR SURFACE DISCOVERY! • La Negra Diatreme Breccia prospect, located 7 kms north of Promontorio Silver Resource • Silver identified on surface within entire 100 by 400 meter core of Diatreme Breccia • Drilling to commence August 2014. Large scale, open-pit potential • Promontorio, closing in on 100+ Million oz. Silver Eqv. Milestone • 92 Million Ounce M&I NI 43-101 M&I Silver Equivalent Resource Established • M&I = 44,504,000 tonnes grading avg. 64.32 gpt Ag Eqv. (27.77 gpt Ag,0.35 gpt Au and 0.87% Pb+Zn) Promontorio Silver Project, Sonora, Mexico TSX.V: KTN