Malcolm Bucholtz B.Sc, MBA Analyst Trading Note Saskatchewan is sizzling HOT !!! No, I am not talking temperature hot, I am talking resource hot. You name it, Potash, Oil, Gas, Uranium and now Coal. Saskatchewan has it and others want it. The area around the small, sleepy town of Hudson Bay now finds itself smack in the middle of one of the most exciting "area plays" since Robert Friedland set Voisey's Bay abuzz years ago. This week I had the good fortune to chat with Mitch Adams from Weststar Resource Corp. Weststar recently made a bold move to get involved in the Saskatchewan coal rush and has inked a letter of intent to acquire a parcel of land called the "18 Meter Property". If you have missed the action, let me remind you that what made Weststar act so fast was news that another Canadian firm Goldsource Mines (TSXv:GXS) had hit upon a coal seam in Saskatchewan when drilling into what it thought should be a diamond bearing kimberlite formation that had been identified through geophysical work. How's that for serendipity? Goldsource shares shot from 20 cents to near $20 on the news and have now eased off to the $15 level. Lab testing has now confirmed that the coal seams intersected are high volatile bituminous C and sub-bituminous A grade. In layman's terms, this is "good stuff". The "18 Meter Property" consists of 72 coal-permit applications (138,240 acres) located about 70 kms north-west of the Goldsource discovery holes. So why does this property have such an odd sounding name – the 18 Meter Property? Well, it turns out that in 1994 a junior company called Pine Channel Gold intersected an 18 meter thick zone of coal while drilling into an anomaly that they too thought might contain diamond bearing kimberlite. Problem was back in 1994 the world was still asleep at the wheel and nobody was interested in coal, let alone coal in Saskatchewan. The cost of acquiring these coal permits has been agreed upon as being $1,150,000 plus the issuance of 3.3 million shares of Weststar. There has been a literal avalanche of coal applications made on ground around Hudson Bay and the folks at the Saskatchewan Mining Recorders Office have been scrambling to dig their way out of a mountain of paperwork. I am told there is light at the end of the tunnel and that coal permits should be awarded soon. Once Weststar receives formal notification of its permits and once it starts its aggressive drill program to get a better handle on the size and scope of the coal that exists on the 18 Meter Property watch for the stock to start moving – and I mean start moving !! While coal in Saskatchewan will be the focus for Weststar, it also has an interesting property under development in British Columbia called the Axe Property. The Axe Property is located 20 kms north of Princeton in an area deemed by many to be the copper mining center of Canada. The nearby Highland Valley Copper Mine run by mining giant Teck Cominco produces 160,000 tonnes of copper a year. The Axe property has a historical (non 43-101 compliant) indicated resource of 39 million tonnes grading 0.38% copper and a historical inferred resource of 32 million tonnes grading 0.38% copper. Prior to the brilliant move to acquire the Saskatchewan coal permits, Weststar shares saw only limited trading at the sub-20 cent level. Today, Weststar is trading at the 65 cent level after having spiked to over $1. With a fully diluted share structure of 26.5 million shares outstanding, Weststar as of this time of writing has a market cap of a mere $17 million. Is this proper value for a firm that may be sitting on a potentially serious coal deposit? Is this proper value for a firm that has a highly prospective copper property in an area of British Columbia deemed to be the copper center of Canada? Not likely, I say. Here at the Market Traders we shall be keeping a keen eye on Weststar. As soon as news crosses the wires that coal permits have been formally granted get ready to "back the truck up….and fill yer' boots" with Weststar shares. If the Goldsource Mines price explosion is any indication at all of how the Weststar story could play out, you'll be glad you loaded up. The Commodity Supercycle Report (a publication of Brookhaven Advisors LLC) is protected by copyright law. Corporations, websites, newsletters or individuals seeking to copy, distribute or otherwise disseminate the contents of this report or any of our other writings in part or in whole are welcome to do so upon obtaining our prior written permission and paying a reproduction fee of US$500. Anyone seeking to avoid doing so is 'itchin for a nasty fight. The information contained herein does not necessarily constitute a solicitation to buy or sell. Consult with your financial advisor to ensure any securities mentioned herein meet with your investment objectives. Principals of Brookhaven Advisors may or may not hold any securities mentioned herein.