Coal Mining Heats Up in Saskatchewan

In the countryside where the treeplanters run the towns on the weekend to the chagrin of the good-natured rural residents that actually inspired CTV's runaway it sit-com Corner Gas -- 50 km north of a struggling town called Hudson Bay, some miners struck it rich. Looking far and wide for the diamonds rumoured to be so plentiful beneath the Earth, instead of finding bling, the mining junior Goldsource hit coal.

Though potash had its turn a couple of years ago, the star of the mining show out in Saskatchewan this year is the dirty black stuff. You might get a lump of it at Christmas time if you've been bad but hang up a stocking, loads of it powered the Titanic to a very icy conclusion, and it continues to supply the average family in the province with the majority of their power. Yep, coal is going to make a few lucky souls mighty rich coming up here. Although it might take a bit of time. And things could get mushy too -- because the Goldsource find is under a giant "swamp" that is "hampering" the dig.

As soon as Goldsource announced its findings, their stock rocketed up 2100 per cent in just three weeks. They had found the first-ever quality coal deposits buried in Saskatchewan. With the help of the provincial government they now can say the bulk coal-filled land here belongs to them. And plenty are following in Goldsource's footsteps. Nine other companies have joined the rush, surveying ground, selecting plots of land. Things are getting pretty heavy. Watch for claims of insider trading. Keep tabs on Saturn Minerals (SMI-V, SAEUF-O). There are interesting dealings afoot.

It's become evident that the value of physical land is actually quite high according to miners and aboriginals -- although they've formed this opinion for quite different reasons.

For more information check out "The Northern Miner" May 26-June 1 2008 edition.

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