Resource World Magazine

o c t o b e r / n o v e m b e r 2 0 1 5 www.resourceworld.com 27 Shell Shocked Y ou probably can picture the scene from an old war movie. Our heroes emerge from a pile of dusty rubble and stare blankly into the sky wondering if the barrage that had leveled their world was finally over. Satisfied that the shell- ing had ceased for at least a while, they slowly look around and assess the damage to see what if anything can be salvaged. And from there, as any good movie, piece by piece they begin the long process of rebuilding their life to ultimately prosper once again. Now transfer this image to the world of resources and I give you my impression of today's resource investor. The average resource investor, especially a junior resource investor, has been hit with an excruciating 4½-year barrage after barrage of negative events in this sector. From Japanese tsuna- mis, to shale fracking, to zero interest rates, to Chinese economics, almost every mineral from uranium to petroleum to precious met- als to base metals has been decimated. Add to this a sky-high Canadian hous- ing market that seems to be attracting most of the Canadian investment attention these days and you have a TSX Venture Exchange that traded down to a record closing low of 518 on August 24th. So there they are – resource investors staring blankly at their statements and wondering what to do. Is the worst over? Is it going to get worse or is there any hope of a recovery? Should they just throw in the towel and sell and go away? These are all difficult decisions and no one can say for sure that things are going to get better or worse for the resource sector. But there are a few indicators. The price of uranium at US $37 is up by 17% from its lows and is actually up almost 6% for the year. Crude oil at US $45 is up by 19% from its low, gold bullion at US $1,132 is up by 4%, copper at US $2.30 is up by 3% and the lowly TSX Venture Exchange at 543 is up by 5% from its record low in August. Plus, the tradition season of strength for commodities and resource stocks is from mid-summer through to the end of the first quarter of next year. Now granted, not all issues will recover just because of an upswing in the price of their underlying commodity. Some compa- nies are just too weak financially or have dropped their projects. Some have left the sector entirely. My advice: take this time to refocus your resource portfolio. Sell the issues that you don't like, trust or understand anymore and purchase more of the ones where their story is still intact and makes sense to you. This way you will accumulate some tax loss cred- its while still being exposed to a sector that is long overdue for a broad-based rally. The shelling is probably over. It's time to come out from under the rubble. n Rodney Blake is an Investment Advisors with 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 guaranteed, nor in providing it does Rodney Blake, Canaccord Genuity Corp, or its sub- sidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these securities. This article should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings 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 author and not necessarily those of Canaccord Genuity Corp. He can be reached at 604-643-7567 or rod.blake@canaccord.com at t h e m a r k e t R o d n e y B l a k e • 500,000 oz @ 10g/t • Down drip drill results at the Sugar Zone Deposit confirm > 1 million ounce Au potential, early 2015 drilling identified 300 meter extension on strike potential at the Sugar Zone Deposit • Fully permitted 70,000 tonne bulk sample to begin Q4 2015, expected to produce >30,000 ounces Au • Preliminary Economic Assessment shows $600/oz operating costs • Proximity to Hemlo Gold Mining Camp (30 million oz Au in production and reserves / resource) provides ready access to experienced labour pool and infrastructure • Hemlo style gold mineralization present on the property in both the Wolf Zone and newly discovered Contact Zone

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