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.
Note: The interviewer holds a share position in RBW.