Canadian Company Spotlight

Sphere Resources Inc. is a Canadian based minerals company with gold exploration and development activity centered in the Red Lake township of northwestern Ontario, Canada and the Carlin trend of Nevada, USA. These superior gold camps of North America are endowed with world class mineral deposits. Having had previous success as an explorer and developer of gold assets in Asia and Africa, Sphere’s new direction is to find major gold deposits in the leading gold camps of North America and use an innovative approach to reduce the time and cost to market by using deep resolution IP technology continually while drilling to achieve success.

Profile

Exploration companies continue to search the world over on a constant hunt searching for gold and precious metals. It has been going on for centuries that way and it will go on for many more as metal prices have risen steadily over time with no real end in sight as to where or when the true peak will occur. The stories are fabled and forever will be entrenched in history books so children can learn about things such as the California Gold Rush or the Comstock Lode and the silver that it bore to make so many people wealthy. While it may not have all the glamour and lacks some of the sensationalism of tales of fathers packing up their families and heading-out to stake their claim to fabulous riches, there is still plenty of gold left in the ground and mining companies are still pulling it out on a regular basis.

In North America, the U.S. and Canada each have an area that has garnered world-wide recognition for massive amount of gold that is contained within it. In the United States, it is the Carlin Trend and surrounding areas in Nevada. In 2009, the USA was the fourth largest world producer of gold with the most prosperous mining region located in this area. During that year, 79 percent of all the gold in the United States, or 5.64 million troy ounces, was mined in Nevada; raising the all-time total for the state to in excess of 157 million ounces. At 2010 prices, the more than 4,700 tons of gold that have come from Nevada over the last 175 years would be valued at approximately $190 billion.

Gold in this area was overlooked for many years, but for good reason; it’s difficult to see. “Carlin”-type deposits represent some of the biggest hydrothermal gold deposits in the world, but the invisible nature of the gold in the deposit make them difficult to spot as the gold is in tiny particle form. Because of its miniscule nature, the gold is not considered to be high-grade which led to the gold being considered “waste rock” years ago, but modern technologies, heap leaching and large-scale equipment has reversed that train of thought. This class of deposit was not even defined until the 1960’s when mass production began and the area started to earn a deserved nickname of “the invisible gold rush.” Barrick Gold Corporation’s open pit Goldstrike Mine is the largest Carlin-type deposit in the world, containing more than 35 million ounces gold, and has helped make this area famous and a target for many other miners who have staked claims and actively mine the land.

In Canada, the prolific gold region of choice is located approximately 500 miles northwest of Thunder Bay in Ontario and called the Red Lake Gold District. Red Lake, a tiny town with only about 5,000 citizens, has evolved into the gold hub of Canada over the last decade. Gold was first discovered in the region in the mid-1920s and within ten years several producing gold mines were in operation. The belt quickly became known for its high-grade and highly profitable gold mines.

Even though the area was being mined regularly for more than 50 years, the most prolific discovery was not made until recently. Dickenson Mines Ltd. had been successfully operating the Arthur White Mine since 1948 until it was acquired by Goldcorp in 1989. A world-leader, Goldcorp hit the ground running and applied modern technologies and new exploration programs that in 1995 resulted in one of the largest gold discoveries of all time when they made an intercept averaging 9.08 ounces of gold over 7.5 feet on nine drill holes.

Presently, the Red Lake Mine (a newly-named combination of two mines acquired and operated by Goldcorp) is widely-regarded as one of the world’s most prolific mines with its extremely high-grade ore being reported at two troy ounces per metric ton. In 2009 and at a rate of 26 grams per tonne, the Red Lake Mine produced 623,000 ounces of gold at a cash cost of only $288 per ounce for Goldcorp. With past production and current reserves for the Red Lake District reported in excess of 40 million ounces, it is plain to see why the now high-profile Red Lake district has attracted nearly 60 juniors over the past five years with real estate being elevated to blue chip status.

Looking to cash-in on these major gold-bearing lands, Sphere Resources Inc. (TSX-Venture:SPH.H) is a Canadian based minerals company with gold exploration and development activity centered in the aforementioned Red Lake region in Ontario and the Carlin trend of Nevada. Having had previous success as an explorer and developer of gold assets in Asia and Africa, Sphere has recently turned its attention to find major gold deposits in the leading gold camps of North America through its innovative approach to reduce time and cost by using deep resolution induced polarization technology continually while drilling to quicken success.

Sphere is unique in comparison to most other junior miners in that it is led by a team of highly-experienced businessmen with a strong background in finance and growing developing companies. They utilize business strategies to generate funds rather than simply adding shares like so many other companies do. A recent example of this business sense was demonstrated in 2010 when the company bought a 30.25% interest in the highly-acclaimed Puna property in Argentina to participate in the growth of the rapidly-expanding Lithium Carbonate market. Due to the strategic position and quality of the brines the company was approached by one of the largest investors in the region and sold out for $1 million in cash to increase the company’s exposure to the prolific Red Lake gold camp.

Sphere’s first acquisition with the monies from the Argentinean sale was a logical piece of property that extended existing land controlled by Sphere in Red Lake. The McManus property was purchased in December 2010 which adjoins the company's Dome property from the north of the south eastern block and to the east from the north western block. Collectively, Sphere refers to these properties as “the Dome Property.” The latest acquisition not only enlarges the Sphere corporate footprint in the region, but also lessens the distance to Goldcorp’s high-grade mine to less than three kilometers. In addition, the property adjoins Mega Precious Metal's Headway property at its south western border where Mega is drilling 2 holes of 3,000 meters each.

The saying “the trend is your friend” could prove very valuable if true for the McManus property. Recent drill reports released by Goldcorp in November of 2010 show another massive gold intercept of 34.7 meters of 136.3 g/t gold and 1.7 meters of 1,826.3 g/t gold that appears to be trending in a southwestern direction and could possibly run right into the McManus property. Further increasing the likelihood of significant gold being contained within the Dome Property, Rubicon Minerals recently announced it has more than 4 million ounces of gold at its Phoenix project also in Red Lake.

As a whole, the Dome property consists of 19 McManus freehold mining patents and 17 mining claims totaling an equivalent of 58 mining units totaling approximately 835 hectares in the core of the Red Lake gold camp. Sphere has contracted Quebec-based Abitibi Geophysics to perform a high resolution induced polarization (IP) survey using their state of the art "IPower 3D" technology and a detailed ground magnetic survey on 100% of the expanded Dome property which will provide a 3-dimensional resolution for narrow feature detection with the capability to penetrate depths of roughly 500 meters. The data from this cutting-edge technology will then be integrated with historic information from the area using the latest state of the art 3D exploration earth modeling to determine high priority drill targets.

Stateside, Sphere has acquired two significant properties and is now exploring well-positioned land within the Carlin and Northumberland gold trends. The properties, Poker Flats and Ziggurat were optioned from Mexivada Mining Corp in December 2010.

The Poker Flats property comprises non-contiguous blocks containing a total of 25 unpatented lode mining claims, totaling approximately 500 acres. The Poker Flats property is situated within the north-northwest-trending Carlin gold trend, which hosts a series of disseminated gold and silver deposits as well as several fault-controlled vein-style gold-silver deposits. Sphere intends to generate shallow, open pit ore bodies for heap leaching that could be mined and processed through Newmont Mining's scheduled new mining operation to be started up soon at Emigrant Springs.

The Ziggurat property consists of 57 lode mining claims encompassing 1,140 acres, located 20 km north of Kinross-Barrick's enormous 15-million-ounce Round Mountain open pit, heap leach gold mine, and 5 kilometers south of Fronteer Gold's 3-million-ounce Northumberland Mine gold property. The target size at Ziggurat is large enough to host a multi-million ounce Carlin-style bulk mineable gold deposit and offers a strong potential as either a stand-alone mine or an incremental feed to one of the major miners nearby properties.

Technically speaking, The SPH.H chart (Technical chart as of March 24, 11) is positioned in the area where technical traders will be watching closely. The share price has channeled between 5 cents and 7 cents for nearly four months and is positioned to end its bouncing between the support and resistance as indicated through making higher lows. A new support level has been established at 6 cents over the last month as any dips below that level promptly result in buying to pull the price back upward. The majority of the indicators are riding in a “middle of the road” area as the price has been holding in the channel since the climb at the end of 2010 which pulled the share price upwards from 2 cents.

From a technical standpoint, a greater number of buys is supported through the Chaikin Money Flow (CMF) and the Accumulation Distribution (A/D) which are smoothed indicators showing that average weighted volume is favoring buying pressure. Long term and exponentially smoothed indicators such as the popular Moving Average Convergence/Divergence has recently demonstrated a “bullish cross” through the signal line which also is indicative of continued upward movement. Even sometimes lesser understood indicators such as the Commodity Channel Index (CCI) recently dropped a “buy” signal by breaking through the upper levels of their channels further purporting a possible break upward. While technical analysis is merely one more tool to support an educated decision in trading, at this point anyway, things are leaning towards putting a strong test to the top resistance to possibly make a new high. Of course volume is the biggest indicator of all, and buying usually follows corporate developments in the form of a press release.  After the bell on March 24th, the Company announced that it has entered into an Agreement with Camp McMan Red Lake Gold Mines to acquire a 100% interest in the historic Alcourt property in Fairlie township approximately 12 kms northwest of the Town of Red Lake, Ontario. The property a mining lease covers an area of 83 hectares and is well known to have gold occurrences.

The property was last explored in 1980 by Sherritt Gordon Mines Ltd. who completed detailed panel sampling on two of the three (3) narrow gold-bearing veins on surface. The No.1 Vein being the longest, was traced for 120 m. Approximately 3,000 m of drilling was performed on both the No. 1 and 3 veins. Sherritt Gordon took 31 panel samples on the No.1 Vein that ranged from 1.8m to 3.0m of quartz vein material ranging from 60 to 180kg in weight. The average gold grade of four determinations of each panel sample returned grades that ranged from 0.0105 to 1.649 ounces gold per tonne. On the No.3 Vein, the average grades of four determinations of each of 8 panel samples, each 2m of quartz vein material ranging from 50 to 120 kg in weight, ranged from 0.0584 to 1.2759 ounces gold per tonne. News of this sort could be seen very favourably by investors, excitement generates volume, from there it's simply supply and demand to determine the price of the V.SPH.H stock. We'll all see what tomorrow holds, but it should be an active day as the Company continues to push forward in the prolific Red Lake mining district, and news of this sorts is generally not taken lightly by investors.  As always, investors need to remember that the technical assessment of the V.SPH.H stock chart is merely AllPennyStocks.com's assessment and we strongly encourage all investors to do their own due diligence and consult with a financial advisor prior to making any trades.

Sphere Resources is a junior miner that is on the move as they waste no time in performing their due diligence on a prospective property, making decisions and acquiring juicy properties in the heart of gold-producing areas currently mined by the biggest names in the business. As noted above, if a company is looking to increase their odds of striking significant gold deposits, there are two formidable places in North America: Nevada and Ontario. Sphere holds valuable land in both. The share structure is intact with only 107 million shares issued and no warrants outstanding. It is clear that the Company is focused and driven with a seasoned management team and NI 43-101 qualified person with a track record of success in gold exploration. It is for these reasons as well as the ones mentioned above that we at AllPennyStocks have decided to shine our next corporate spotlight on Sphere Resources, Inc. (TSX-Venture:SPH.H) and encourage all of our members to begin their due diligence and add Sphere to their watchlist.

Malcolm L Stevens

Malcolm qualified as Chartered Accountant with Price Waterhouse in Perth, Western Australia in 1972 after completing a Bachelor of Commerce at Curtain University. Since then Malcolm has worked in a number of International Investment Banks which led to the establishment of his own licensed Investment Dealer, CanAustra Investments Ltd in Sydney1988. The resource sector has been the main focus of business activity from the work on the project financing of Woodside’s North West Shelf Gas Project (Australia’s largest private sector bank financing at the time) in the early 1980’s to being a major participant in the development of the modern gold loan financings in Australia and Canada from 1982 to the mid 1990’s.

Malcolm headed up the establishment of two private equity funds’, one internationally in 1996 and the other in Australia in 2000. These funds were focused primarily on venture capital mainly for the resource sector. Malcolm has been Chairman of a number of private and public companies and today is Executive Chairman and President Sphere Resources Inc. in Canada and Executive Chairman of AAP Carbon Ltd in Hong Kong.

Marshall Auerbach

Marshall Auerback has some 28 years experience in the investment management business, serving as a global portfolio strategist for RAB Capital Plc, a UK-based fund management group with $2bn under management since 2003. He also serves as an economic consultant to PIMCO, the world’s largest bond fund management group, and a non-executive director of Pinetree Capital in Toronto, Ontario, Canada. From 1983-1987, he was an investment manager at GT Management (Asia) Limited in Hong Kong, where he focussed on the markets of Hong Kong, the ASEAN countries (Singapore, Malaysia, the Philippines, Indonesia, and Thailand), New Zealand and Australia. From 1988-91, Mr Auerback was based in Tokyo, where his Pacific Rim expertise was broadened to include the Japanese stock market. From 1992-95, Mr Auerback worked in New York for the Tiedemann Investment group, where he ran an emerging markets’ hedge fund. From 1996-99, he worked as an international economics strategist for Veneroso Associates, which provided macroeconomic strategy to a number of leading institutional investors. and helped Mr Veneroso research "The Gold Book Annual 1998". From 1999-2002, he managed the Prudent Global Fixed Income Fund for David W. Tice & Associates, a USVI-based investment management firm, and assisted with the management of the Prudent Bear Fund. Mr Auerback graduated magna cum laude in English & Philosophy from Queen’s University in 1981 and received a law degree from Corpus Christi College, Oxford University in 1983.

Christopher Tucker

Mr. Tucker is currently President and CEO of Tucker & Partners (www.tuckerandpartners.com), a company engaged in international strategic advisory and business development services to growing companies, mostly in the technology and clean technology sectors. In this role, Mr. Tucker has assisted companies from around the world in penetrating new markets, forming strategic partnerships and raising finance.

Prior to forming Tucker & Partners, Mr. Tucker worked for leading European investment banks in London, including Kleinwort Benson, Paribas Capital Markets and WestLB, in equity research and corporate finance. During the 1990s he was involved in many of the IPOs in the European telecommunications sector. Mr. Tucker spent the early part of his career in the UK’s electricity industry, initially as a physicist and subsequently as a strategic planner.

Mr. Tucker has an M.A. in physics from the University of Oxford and an M.Sc. in electronic and electrical engineering from the University of London.

The addition of Mr. Tucker to the Board will enable the Company to expand its corporate strategy to explore investments in high value and/or demand led commodities such as lithium, sodium carbonate and sodium sulphate.

Sphere Resources Inc.
Canadian Office
204 Black Street Ste. 300
Whitehorse, Yukon
Canada Y1A 2M9

Phone Canada: 1-647-986-8940

Phone USA: 1-623-207-7784

Email: info@sphereresources.com

AllPennyStocks.com © 1999 - 2012. AllPennyStocks.com is a web publishing venture produced by AllPennyStocks.com Media, Inc.