Ubika Research

Planet Mining Exploration Inc.
TSX VENTURE : PXI

May 17, 2012 10:23 ET

Early-Stage, Well-Funded, Undervalued: Planet Mining Exploration Could Be Sitting on a Mining Bonanza in B.C. and Northern Ontario - Latest Addition to Ubika Research Watchlist

TORONTO, ONTARIO--(Marketwire - May 17, 2012) - A well-funded and under-valued early-stage gold and nickel-cobalt-PGE mining company based in Vancouver "is sitting on properties in two of Canada's most prolific mining districts, with an excellent Phase 1 drilling result and an Nl 43-01 compliant gold resource for at least one of the two properties" says Toronto based Ubika Research, who is featuring the miner under its popular feature "Junior Resource Stock Watchlist" on its high-traffic Smallcappower.com website and the feature report is available at: http://www.smallcappower.com/junior-resource-stocks/junior-resources-of-the-week.aspx

The Ubika Research Resource Stock Watchlist features research analyst's profiles of prospective junior mining companies. Investors regularly discover high potential junior resource and mining companies through this very popular feature.

Ubika's Resource Watchlist companies have often outperformed the benchmark Index, the TSX Venture Index, and a number of profiled companies were acquired, often at significantly higher values compared to profiled levels. A few notable past successes include Hathor Exploration, which was acquired by Rio Tinto Ltd., Peregrine Metals, acquired by Stillwater Mining and Goldstone Resources, acquired by Premier Gold.

Ubika Managing Director Mr. Vikas Ranjan, who has been involved in taking a closer look at Planet Mining Exploration Inc. (TSX VENTURE:PXI), further states: "Although we haven't initiated coverage on this company and do not have a detailed research report yet, from what we have gleaned from public and company sources, we find the company and its prospects very interesting."

Mr. Ranjan adds that at a market cap of $5.75 million and cash in hand of approximately $4 million (as of December 31, 2011), the company's shares trade at less than 2x cash (the company has a cash per share of approximately $0.10 as of December 31, 2011) and it gets little value for its current NI 43-101 resource at the Red Lake property.

The company has two key properties, Golden Loon comprising 7,400 hectares in south-central British Columbia's prolific Quesnel Belt, and the Sidace Lake property, which is a joint venture with mining giant Goldcorp (60%), in the highly prolific gold mining district of Red Lake in Northern Ontario. Both areas boast large historic production.

"The Company already has an NI 43-101 compliant 360,000 ounces of gold in indicated and inferred NI 43-101 resource categories at the Red Lake project at an average grade of 3 g/t [grams/tonne] gold in just two of the five drill targets and all targets remain open to expansion," says Mr. Ranjan, pointing out that his preliminary finding is based solely on publicly available sources. "Huge potential to increase the resource estimate still exists as just 10% of property has been actively explored so far."

At Golden Loon, the flagship project, recent drill results released by the company confirm a large nickel, cobalt, silver and platinum mineralized ultramafic intrusion that forms the core of this property.

"It is, however, the potential to discover a massive Nickel-Cobalt-PGE resource, which is especially exciting about Golden Loon project," says Ranjan. "It recently announced very encouraging drill results from the Phase 1 drilling, which confirmed the exploration target. The company is currently undertaking an initial metallurgical work, which is supervised by SRK Consulting. A positive metallurgical result means the company will pursue an aggressive follow up definition drill program to explore this system further to discover a sizable resource."

"The in-situ value of its share of Red Lake resource, which stands at 360,000 oz of gold resource in the indicated and inferred categories, should be valued in the range of $10 million to $12 million based on a very conservative industry average of $60/oz to $70/oz for NI 43-101 compliant gold resource in such a prolific gold district," says Ranjan. "It clearly is not getting any value for its highly prospective Golden Loon property, its current focus, which could easily mean a discovery of large Nickel-Cobalt-PGE deposit, potentially worth hundreds of millions of dollars."

(PGE or platinum group elements, collectively refers to six metallic elements clustered together, i.e. ruthenium, rhodium, palladium, osmium, iridium, and platinum.)

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    Vishy Karamadam
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