American Company Spotlight

MAX Resource Corp. is actively exploring for gold & silver in Nevada, where multiple drill programs are planned for 2011 to follow up on exploration success in 2010.

Profile

Gold and silver prices continue to pound northward and at insatiable pace. Currently, gold for June delivery is trading on the Comex division of the New York Mercantile Exchange in excess of $1,450 per troy ounce and silver has surged passed $40 an ounce leaving some critics of the ever-rising prices with their jaws hanging open while the bulls beat their chests and say “I told you.” The majority of analysts are still expecting prices to go higher in the future as the $1,500 marker was just the first benchmark that was expected to be reached with higher targets set forth for the years that still lie ahead.

For any follower of the rise in metal prices, analyst predictions back around 2004 are almost ludicrous as the forecasts were calling for gold to continue its upward path and “would reach $800 an ounce” in 2010. Of course, it is pertinent to note that gold started off 2004 around $400 per ounce, but the uptrend was really just starting to kick it into gear since hitting some lows around $260 an ounce at the turn of the century. They weren’t wrong, as gold certainly kept climbing. They just missed by a few years in the estimations as gold topped $800 on its way to breach $1000 per ounce just a few years later in 2007. All of that aside, most investors dream of the “the big hitter” and a play that can double or triple the initial investment. The fact is that gold prices have climbed nearly six-fold since January 2000. The pace has not been linear; it looks to be gaining steam.

How high will gold go? The answer is not so simple as to just haphazardly throw a number out there, no matter what analysts want to say. The future of inflation plays a key component in making that “guestimate.” If deflation becomes dominate, then gold may very well sit around these levels or even drop off some. But, odds are that the government will never let something along the lines of the Great Depression-type of deflation happen nor will inflation be allowed to spiral out of control. Stagflation is more likely, as it keeps the Dow Jones moving upward even with slow economic growth and, for those who love gold long-term, drives gold prices much higher than current levels over the next ten years.

Even with the common consensus pointing towards higher gold and silver prices in the future, exploration companies still have to find it and extract it from the earth. Mining companies in the United States flock in droves to one particular location: Nevada. It may be the home of gambling because of the City that Never Sleeps, but it’s also home to the second largest deposit of microscopic gold in the world; second only to South Africa. The gold was formed 40 million years ago through massive tectonic plate movements that allowed gold-rich fluids to move upward along fault lines and has received world acclaim since the first authenticated discovery was made more than 150 years ago.

Nevada is the world's third largest gold producer after South Africa and Australia. There are several very distinct gold trends that have been established over the years with the land earning a reputation as a geologists' and miners' paradise. The Carlin, Eureka and Cortez are the most famous. The Carlin Trend is second in the world in size of reserves only to the legendary Witwatersrand Basin in South Africa, but there is a belief amongst experts that the lesser-explored trends in Nevada may be similar in size. Ongoing exploration is helping prove the case for those experts.

Nevada’s reputation for gold and metal production is well-documented. 79 percent of all of the gold mined in the United States comes from Nevada. In 2009, 5.64 million troy ounces were produced; adding to the total of more than 150 million ounces that has been registered in the last 75 years. At today’s current prices, that equates to approximately $220 billion. Simply put, if someone is looking for lions, they head to the plains of Africa. If an exploration company is looking for gold in the U.S., they head for Nevada.

The proof of the enormous amount of money to be made in Nevada mining is demonstrated by the biggest companies in the industry actively working the land, including Barrick Gold, which has seven different mines there; Goldcorp (two projects); Newmont (14 open-pit and four underground mines and 14 processing facilities); and Kinross Gold.

Vancouver, British Columbia-based Max Resource Corp. (OTCBB:MXROF) is a junior exploration company controlling a diversified portfolio of mineral exploration projects in the Western United States with a concentrated focus on precious metals in Nevada, with four gold and silver properties being actively explored in 2011. Max Resources is planning on securing their fair share of the precious metal market by owning strategically-located properties that are part of the large gold trends in Nevada as well as the lucrative molybdenum, tungsten and uranium markets through other projects. For a junior miner, Max’s portfolio is nothing shy of impressive, containing five Nevada projects: Table Top (gold), Majuba Hill (copper/gold/silver), East Manhattan Wash (gold) and Diamond Peak (gold/zinc/silver) as well as a molybdenum/tungsten property and a uranium property in New Mexico.

While all of the Max properties are valuable, The Table Top Project is the most extensively explored to date and extremely attractive due to its prime location. The project area is on trend with AMAX's Sleeper Canyon Mine (2.5 million ounces of gold produced) located just to the north and immediately south of the Sandman gold project, one of the Nevada properties included in the recent acquisition of Frontier Gold Inc. by Newmont Mining Corp. The land is geologically favorable for the discovery of a medium-sized high grade, bonanza style gold deposit in a near surface environment. Core drilling began last year and intersected significant gold mineralization hosted in sedimentary rocks similar to typical Carlin mineralization and confirmed that the mineralization not only extends to depth, but also increases in width and grade. Results included an intercept of 12.1 meters of 0.91 g/t gold, inclusive of 9.1 meters of 1.09 g/t gold.

The Majuba Hill encompasses 2,313 acres of surface and mineral rights consisting of patented and unpatented lode mining claims and private mineral rights. Once again, the location of the historically-producing land is situated next to other major mines. Nearby Coeur d'Alene's Rochester Mine has produced 127 million ounces of silver and 1.5 million ounces of gold since 1986. Max recently released news that exploration on its Majuba Hill project has commenced as excavation of drill sites is underway with core drilling scheduled to begin in April 2011 following completion of drilling at its nearby Table Top gold project. The drilling program will expand upon previous programs such as Minterra Exploration’s 2008 efforts which reported a number of high-grade drill intercepts, including 145 ft @ 1.85 o/t gold and 0.49% copper, inclusive of 15 feet @ 5.01 o/t silver and 100 ft @ 0.99 o/t silver, inclusive of 15 feet @ 4.00 o/t silver. Rock chip samples from the property have graded as high as 10 g/t gold and 981 g/t silver.

The Diamond Peak Property, comprised of 58 claims, is a historic MK Gold gold/base metal property that was explored during the late 1990's and is located at the southern end of the prolific Carlin trend and in close proximity to Barrick Gold’s Archimedes gold deposit. In December 2007, Max entered into an option agreement to acquire a 100 percent interest in the East Manhattan Wash claims in the Manhattan Mining District; an area that has produced more than 1 million ounces of gold historically. Located within miles of the Max project are the Echo Bay East and West Pit deposits which operated in the early 1990s, producing 260,000 ounces at an average grade of 0.06 o/t and the Round Mountain Mine, which has produced more than 12 million ounces of gold.

A great piece of property is only as good as the management behind the development of it. Max has a management team with proven success not only in the mining space, but specifically with regards to Nevada. President and Director, Stuart Rogers has 23 years of experience with public companies and is the founder and former Chief Financial Officer of Venture Exchange-traded Prophecy Resources Corp. Clarence Wendt, P. Geo, holds the position of Vice President, Exploration and has been involved in gold and silver exploration in the Americas for nearly four decades. He is the former President of the Geological Society of Nevada and has been integral to the discovery of 12 gold deposits in Nevada that have yielded more than 17 million ounces of gold. Further strengthening the team is Dan MacInnis, P. Geo, who sits as a director of Max while also holding the position of President of AMEX-traded MAG Silver.

When covering all of the bases, it is also mandatory to check into a company’s share structure and finances to evaluate potential building of share value. Max Resources only has 23.7 million shares outstanding (fully diluted 29.3 million) and has working capital in excess of $2.3 million; a rarity for a developmental miner. This leaves plenty of room for growth especially considering it has a market cap of only $9.3 million.

Technically speaking, the (Canadian listed stock chart shown) V.MXR chart is looking bullish. Stocks that make big moves, as this one did climbing from $0.25 to $0.525, are always going to experience a pullback in share price, but the key to overall bullish sentiment lies in holding key levels throughout the indicators and candles. MXR is demonstrating a critical component of technical analysis in the rule that “resistance becomes support,” by bouncing off of 40 cents today to make another strong move upwards. Additionally, a bullish chart is trading above the 50 and 200 day simple moving averages and even more bullish if those averages are trending upward; which they are in the chart for Max.

The RSI has a multi-month trend holding over top of 50 which is another indication of continued upward momentum underlying the share price. Even with the price retracement, the RSI has basically held this level. The lower indicators are also positioned in prime spots for a shift in trend from the minor sell-off as profit takers tallied their gains from the recent run. The commonly-used Moving Average Convergence Divergence (MACD) is not only holding a strong uptrend, but also holding above zero. All too often, the MACD will dip below zero slightly on a pullback (which is not necessarily bearish), but holding above “the money line” is a show of even greater strength. Another prominent lower indicator amongst technical traders in the Full Stochastics, which has spent very little time below 50 and even less in what is considered “oversold” territory. Presently, the Full STO has slipped down in the area of 20 which produced a prompt upward move in share price the last time it reached this level, so traders will have their eyes peeled once again for a momentum shift back to the north. As always, this is only AllPennyStocks.com's assessment of the V.MXR technical chart and we strongly encourage all investors to perform their own due diligence and consult with a financial advisor prior to making any trades.

The cost of metals, both precious and non-precious, looks to be continuing on their upward path for many years to come. Finding a company that has the complete package of the property, the management and the financial structure to capitalize for many decades is a rare occurrence, but Max is one that is poised and ready. With the price of a share still in the area of 40 cents, the Company has a special appeal. It is for this reason that we have decided to turn our next Canadian spotlight on Max Resources Corp. (OTCBB:MXROF) and encourage our members to conduct their due diligence and add it to their watchlists.

Stuart Rogers: President and Director

Stuart Rogers has been involved in the venture capital community in Vancouver since 1987. Mr. Rogers has served as an officer and/or director of technology and resource companies listed on the TSX Venture Exchange, Toronto Stock Exchange, NASDAQ Small Cap and NASD OTC Bulletin Board. He also currently serves as a Director of TerraX Minerals Inc. (TSX-V:TXR) and Prophecy Resource Corp (TXR-V:PCY).

Clarence J. (Clancy) Wendt: Vice-President Exploration and Director

Clancy Wendt received his B.S. degree from San Diego State University in 1967. He began his career at Stauffer Chemical and worked at various companies until returning to the University of Arizona where he obtained his M.S. degree in 1978. After this he worked at Duval Corporation and other companies until becoming District Manager for Westmont Mining. He is credited with the Mt. Hamilton gold/molybdenum discovery in Nevada and managed the programs which led to the discovery of other deposits in the Carlin Trend.

Mr. Wendt has been a consulting geologist since 1992, specializing in exploration and evaluation of mineral deposits. He is a registered geologist in Arizona, British Columbia, Canada, and a Chartered Professional Geologist in Australia and is writes reports for various exchanges. He is a member of SME, SEG, FAusIMM(CP), PDAC, a former Trustee of the NWMA and Member of the Board of Directors of the Mining Club of the Southwest. In addition, Mr. Wendt is the recipient of the Presidents Award from the NWMA, the Ben F. Dickerson Award, and is a past President of the Geological Society of Nevada.

Mr. Wendt has prior experience in gold, base metal and uranium exploration with such notable uranium companies as Phillips Uranium, Teton Exploration and Cerro Corporation. In addition, he has conducted all phases of uranium exploration, from conceptual targeting to drilling and evaluation, with extensive experience in the Wyoming, New Mexico, Utah and South Dakota uranium fields.

Christopher Cherry, CA, CGA: Chief Financial Officer

Mr. Cherry has over eight years experience as an accountant and auditor, with KPMG and Davidson and Company in Vancouver. He achieved the Certified General Accountant designation in August 2004 and the Chartered Accountant designation in February 2009. Mr. Cherry is a financial controller with iO Corporate Services Ltd., a private company that provides administrative services to several public companies. Mr. Cherry currently serves as Chief Financial Officer to Luzon Minerals Ltd., Teslin River Resources Corp., and Reva Resources Corp., all of which are listed on the TSX Venture Exchange.

Daniel MacInnis: Director

Mr. MacInnis is currently the President and Chief Executive Officer of MAG Silver Corp. (TSX-V: MAG; AMEX: MVG) and has over 30 years of experience in mineral exploration on an international basis. He has extensive experience in property acquisitions and joint venture negotiations, with a significant number of mineral discoveries having been made under his guidance. In addition, Mr. MacInnis has managed and directed multi-million dollar exploration programs for Noranda Exploration, Battle Mountain Gold/Hemlo Gold, and Sargold Resources.

Mr. MacInnis is a Registered Professional Geoscientist (P. Geo) and a graduate of Saint Francis Xavier University in Nova Scotia with a B Sc. in Geology

Tim Coupland: Director

Tim Coupland is currently the President of Alberta Star Development Corp. (TSX-V: ASX; OTC BB: ASXSF), MAX's joint venture partner on the Target 1 and MacInnis Lake uranium properties in the Northwest Territories. Mr. Coupland holds a bachelor's degree in geography from Simon Fraser University and is an accomplished mineral landman and explorer, with over 20 years experience with both public and private companies working in the mineral exploration field in Canada. Mr. Coupland was the lead negotiator who secured drill permits and the access and benefits agreement with the Sahtu Dene First Nations on their traditional territories in the Northwest Territories, where Alberta Star is currently focused in the development of the Eldorado and Contact Lake iron oxide, copper, gold and uranium projects. Over the past ten years, Mr. Coupland has successfully developed long term business relationships with many Canadian First Nations & Metis Groups living in Canada's Northwest Territories.

Paul John: Director

Mr. John graduated from the University of Victoria, B.C. with a Bachelor of Arts degree, majoring in Economics and Political Science. From 1971 to 1979, he worked with the Hudson Bay Company, a national Canadian department store chain, rising to the senior executive level. In 1980, he acquired a WorkWear World franchise in the interior of British Columbia, developing this initial location into 19 stores in B.C. and the Yukon Territories, with annual sales of $18 million when sold to Mark's Work Warehouse, a TSX listed company, in 1999. Mr. John is currently General Franchise Manager for Work World in Western Canada.

Corporate Address:

Max Resource Corp.
2300-1066 West Hastings Street
Vancouver, BC
Canada V6E 3X2

Telephone: (604) 689-1749
Email: info@maxresource.com

Corporate Communications:

Leonard MacMillan
Email: info@maxresource.com
Telephone: (604) 637-2140
Toll Free: 1 (866) 331-5088

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