Penny-Cap Stock on Watch: North Spring Resources Corp. (NSRS)
  • Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Stock Alert for North Springs Resources Corp. (NSRS)
  • " />

    Stock Alert for Searchlight Minerals Corp. (SRCH)

    Searchlight Minerals Corp. (SRCH) is an exploration stage company engaged in the acquisition and exploration of mineral properties and slag reprocessing projects.  The Company holds interests in two mineral projects: (i) the Clarkdale Slag Project, located in Clarkdale, Arizona, which is a reclamation project to recover precious and base metals from the reprocessing of slag produced from the smelting of copper ore mined at the United Verde Copper Mine in Jerome, Arizona; and (ii) the Searchlight Gold Project, which involves exploration for precious metals on mining claims near Searchlight, Nevada.  The Clarkdale Slag Project is the more advanced of two ongoing projects that the Company is pursuing.  The Searchlight Gold Project is an early-stage gold exploration endeavor on 3,200 acres located approximately 50 miles south of Las Vegas, Nevada.

    Share Statistics (19-Sept-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol SRCH Revenue, $Mn 0.00 0.00 0.0% 0.00 0.00 0.0%
    Current price $1.23 Gross marg.
    52wk Range: $0.35-$1.54 Oper. margin
    Avg Vol (3m): 472,445 Net margin
    Market Cap. 156.23M
    Shares Outstanding 127.02M EPS, $ -0.04 -0.04 0.0% -0.01 -0.01 0.0%

    Source:, SEC Filings.

    Investment Highlights

    Shares of SRCH have gained 45.2% in the last five days; 130.2% in the last month; and 19.6% year to date.

    SRCH shares on Tuesday climbed as high as $1.54, a fresh 52-week high, on volume of over 400K shares.

    The stock closed the session at $1.23, up 11.8% from the previous session’s closing price.

    SRCH shares were traded heavily early this month after the company announced that an internationally recognized engineering firm, SGS Lakefield Research Chile S.A. (SGS), confirmed results of earlier autoclave tests conducted by its technical consultants of its Clarkdale Slag Project.

    According to the Company, SGS performed a number of autoclave tests, under various metallurgical conditions, using both pressure oxidation and pressure oxidative leach testing methodologies. The results from the tests showed approximately 0.5 ounces per ton of gold extracted into solution. SRCH said these results are consistent with other tests and analyses conducted by other independent consultants as well as its pilot test conducted last year at the Clarkdale Facility using a similar leach in an ambient temperature and pressure environment, rather than under autoclave conditions.

    SGS test results reaffirm that autoclaving does not dissolve the levels of iron and silica into solution as did the ambient leach, thereby improving the ability to recover gold from solution and thus improving process technical feasibility, SRCH added.

    The Company is currently performing additional autoclave tests through its consultants and SGS to confirm and prove the repeatability of the optimized metallurgical protocols that yielded the highest gold extraction into solution at SGS.   The Company is also performing gold recovery and extraction tests to determine the best method of recovering gold from the pregnant leach solution.   This important step will also provide the data necessary to determine the recovered gold grade from solution and is expected to result in the production of gold dore, providing determination of recoverable gold grades.

    The results from the additional tests independently performed by SGS as well as reports received from SRCH’s technical consultants are very encouraging and represent the next step in the Company’s ultimate goal of proving the economic feasibility of the Clarkdale Slag Project,” SRCH CEO Martin Oring commented in the release.  “On a near-term basis, we are intensely focused on finalizing the autoclave POX and POL protocols and extracting the gold from solution in order to commence the continuous pilot tests, in a larger multi-compartment autoclave, that are necessary to obtain a bankable study.”


    Financial Summary

    SRCH is currently in the exploration stage of its business, and has not earned any revenues from its planned mineral operations to date. The Company did not generate any revenues from inception in 2000 through the six month period ended June 30, 2011. It does not anticipate earning revenues from its planned mineral operations until such time as it enters into commercial production of the Clarkdale Slag Project, the Searchlight Gold Project or other mineral properties it may acquire from time to time, and of which there are no assurances.

    The Company’s exploration and evaluation plan calls for significant expenses in connection with the Clarkdale Slag Project and the Searchlight Gold Project. As of August 12, 2011, SRCH’s management anticipates that the minimum cash requirements for funding its proposed testing and feasibility programs and its continued operations will be approximately $7.3 million during the next 12 months.

    The Company’s cash reserves totaled approximately $5.9 million as of August 12, 2011. Its current financial resources may not be sufficient to allow it to meet the anticipated costs of its testing and feasibility programs during the next 12 months and it may require additional financing in order to fund these activities.


    Financial Strength (19-Sept-2011)




    S&P 500

    Quick Ratio (MRQ) 1.74 0.73 0.76
    Current Ratio (MRQ) 17.64 3.07 1.13 1.12
    LT Debt to Equity (MRQ) 0.00 18.93 11.57 110.87
    Total Debt to Equity (MRQ) 0.00 21.17 29.95 149.02
    Interest Coverage (TTM) 6.09 0.13 23.27

    Source:, SEC Filings.

    Analyst Consensus

    No consensus recommendations data available.

    Technical Analysis


    Comparative Analysis

    No consensus recommendations data available.

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at