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Heavy, Solid Value: Gravity West
Mining Corporation (GRW.V)
By Glenn Wilkins
Metals such as uranium have played an important role in the history of the
Western World. The rich uranium deposits in Canada proved pivotal in the
development of the atomic bomb, bringing the Second World War to a swift
conclusion. Depleted uranium is also used in kinetic energy penetrators and
armor plating, and with more of an emphasis being placed on nuclear energy as an
alternative source of power in some locales, peaceful uses for uranium are
becoming more obvious.
Small wonder, therefore, that the uranium field is becoming more competitive.
That’s why junior mining firms such as Vancouver, B.C-based Gravity West Mining
Corporation merit serious consideration by small cap investors.
Gravity West, former known as Staccato’s Incorporated, is a publicly traded
Canadian company focused on creating shareholder value through taking early
stage positions, primarily in uranium properties, but also in other selected
high-value minerals. For example, the company is also assembling a portfolio of
gold and mineral properties in Nevada, Northern British Columbia and Ontario.
The company
(TSX Venture:GRW) has as its mandate: “To create value for our shareholders
through the exploration and exploitation of mineral properties in some of North
America’s most prolific mining areas.”
Among the most significant of the company’s recent finds was made in the Sibley
Basin of Northern Ontario, a uranium prospect with the potential to rival
Saskatchewan’s Athabasca basin, one of the world’s richest uranium deposits. The
company website notes with pride the similarities between the two, but which led
to only modest exploratory efforts in the 1970s and 80s. The presence of
commercial grade uranium was confirmed two years ago in the Sibley property by
an American firm known as Rampart Ventures. Gravity West is a large landholder
in the Sibley Basin, located immediately north of Rampart’s holdings, and
according to Gravity West President Livio Susin, “Rampart has proved there is
uranium in the system. It is now a matter of finding the deposits.”
In late September, surveys conducted by Geotech Services on the westernmost side
of Sibley uncovered prospects which caused the company to increase its holdings
in the area to 81,000 acres. GRW has been conducting a uranium drilling program
this year, designed to test geophysical and geological targets for uranium
mineralization within the Sibley Basin project areas.
Other lands in which GRW has large land positions are located in the Northwest
Territories’ Hornby Basin (uranium prospect) and the Red Chris mine in Northern
British Columbia (copper/gold poryphory). And the company continues to look for
more potentially lucrative deposits within Canada’s borders and beyond.
For example, Gravity West owns three properties with uranium potential located
in the Great Bear Lake area of the Northwest Territories, approximately 430
kilometres (about 270 miles) north of Yellowknife. The properties are located as
near as 10 kilometers (six miles) north of the Contact Lake property owned by
Alberta Star Development Corp.
(TSX Venture:ASX). Property holders in the Great Bear Lake area are at work
on aggressive exploration programs this year.
Results were released in early October on tests conducted on four B.C.
properties adjacent to and including Red Chris, revealing solid prospects for a
drilling program for copper/gold poryphory. The results will be analyzed in
anticipation of a 2008 drilling program. In addition, B.C. Premier Gordon
Campbell announced an extension on October 1 of the province’s electrical grid
into the northwest region, which affects Gravity West’s area of interest.
As for the management team overseeing this progress, Susin is a past co-founder
of the Hera Resources and International Taurus Resources, and brings to the
table more than a dozen years in the public company field. His board of
directors includes Marinus Jellema, a 20-year veteran of planning and
management, who, besides his experience in the restaurant industry, also serves
as manger of utilities for a big player in the pulp and paper industry.
Company CFO Adrian Palmer chaired a Canadian management consulting firm for five
years, and now serves as CEO of Odorchem Manufacturing, an emerging
environmental products manufacturer and heads up a thriving wire and cable
concern. He has served as a consultant to some major mining companies in Western
Canada.
As with any company with big ambitions, the profit picture remains a mystery.
The last reporting period for GRW (which finalized its name change in April
2005) is June 2007, and the semi-annual report reveals the company in a loss in
excess of half a Million dollars (all figures in Canadian funds unless specified
otherwise). Ironically, it was in June that the stock hit its 52-week peak
around the 22-cent mark per share, before settling into its current 10-cent
range. Its trough was around six cents in the fall of ’06.
But with the dizzy period of activity in which Gravity West now finds itself,
stock watchers are reckoning the bottom line will change for the better for this
bold little mining company… and soon!
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Although the majority of
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compensation for carrying the report on Gravity West Mining
Corp,
the compensation is five thousand dollars by the company. This creates an
inherent conflict of interest and readers are encouraged to
view the main disclaimer at
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