Rainbow Resources (RBW, TSX-V) is in a select group of resource companies on the TSX Venture Exchange that’s actually trading up for 2012. Rainbow, which was first listed on the Venture in January, 2011, started to come to life late last year after acquiring privately-held Braveheart Resources. RBW closed 2011 at 16.5 cents, climbed as high as 29.5 cents February 29, and has since pulled back to the upper teens following the nearly 30% correction in the CDNX. Technically, the stock is again in a select group with rising 100, 200 and 300-day moving averages (SMA’s).
Rainbow is quickly emerging as an exploration leader in an area that has a prolific mining history – the West Kootenay region of southeast British Columbia – and the company is going after primarily high-grade Silver and Gold targets. Of its four key properties in its 12,700-hectare Big Strike Project, three are past producers and have never been previously drilled.
Also in the West Kootenays, Rainbow has just recently staked out a 40-sq. km land position within the Valhalla Metamorphic Complex which hosts the only producing natural flake graphite mine in western North America (operated by privately-held Eagle Graphite).
And in Nevada, Rainbow is exploring the past producing Jewel Ridge Property which the company acquired an option on two months ago.
RBW has a tight share structure and an aggressive style, and we believe it’s a company that will make a lot of noise and attract plenty of attention over the second half of 2012. It has a strong team behind it including a “folksy cowboy” from Calgary – President David W. Johnston – and two other successful and colorful businessmen from Calgary including a part-owner of the NHL’s Flames.
Last night, Jon spoke with Johnston for an update on the company’s activities. Simply click on the link below to listen to the 11-minute interview.
BMR Interview with David W. Johnston May 22/12
Note: The interviewer holds a share position in RBW.
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Jon – thank you for posting this interview. How long does it typically take to secure a drill permit in BC? It seems that it is delayed and perhaps if there had been less snowfall or an earlier melt Rainbow still would not be able to start drilling.
From the geology of the Slocan Valley is it possible to make a guess which company has staked the most prospective ground: ASW, BSM:CNX or RBW? Thanks!
Comment by Andrew — May 22, 2012 @ 3:40 pm
Thanks, Andrew…drill permits in this region can be granted in as quick as 6 weeks or it could take as much as 3 months. RBW I believe applied near the end of March. So they’re right in the ballpark of getting approval at almost anytime. I suspect at some point in June. So not much longer to wait.
Comment by Jon - BMR — May 22, 2012 @ 3:44 pm
Good Stuff! Thx Jon!
Comment by db — May 22, 2012 @ 3:48 pm
Thanks Jon – In the second part of my question I omitted to say that I’m referring to graphite. ASW and BSM both have attractive share prices at present.
Comment by Andrew — May 22, 2012 @ 3:59 pm
Andrew- My 2 cents for what its worth… I find BSM very attractive at its low SP as it has filed for a venture listing and their Fox Lake copper project looks quite interesting as well as their newly aquired graphite claims.
Comment by db — May 22, 2012 @ 4:29 pm
Jon
Just listened to your interview, good job ! What was interesting was your use of
phonetics, for RBW, Randy, Bob, William. I hope members of the armed or police
forces won’t tune in.
Go Romeo, Bravo, Whiskey go ! R !
Comment by Bert — May 22, 2012 @ 4:36 pm
Thanks db for your input – that’s my pick too!
Comment by Andrew — May 22, 2012 @ 4:41 pm
Sorry, missed the 2nd part of your question…..who has staked the best ground? I guess that’ll be determined after some results start coming out; RBW is flanked in the north on either side by Eagle, so that could prove interesting….I also like how they’ve tied up ground contiguous to the south of Blu Starr………RBW has also staked ground to extend the western boundary of Gold Viking, and with Eagle moving in around there it’ll be interesting if prospecting picks up any flake graphite showings…..RBW’s Gold Viking drilling will be in the central portion of that property……BSM got some ground quite close to the west of the eagle processing plant, but some of that could be in nelson intrusives…..blu starr has excellent prospects…..
Comment by Jon - BMR — May 22, 2012 @ 4:50 pm
Yes, I was a little off the mark, I guess – 0-for-3!
Comment by Jon - BMR — May 22, 2012 @ 4:52 pm
GBB is very close to the rim of 8 cents and has very weak support…. wait and see…. SFF is performing much much better than GBB…. In my opinion, stay away from GBB… there are too many big lots to be dumped… millions of placement shares and cut loss from private investors. They will dump when a big lot is accumulating. Today is another good example… 8.5 cents lot filled…..
Comment by Theodore — May 22, 2012 @ 7:36 pm
2 hours to go before open & it doesn’t look good out there. Seems as if Copper is also
losing it’s lustre. Sell in May & go away is alive & well this year. R !
Comment by Bert — May 23, 2012 @ 3:40 am
Jon – Thanks, I’m going to go back to the maps and have another butchers (hook = look)
Comment by Andrew — May 23, 2012 @ 4:47 am