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    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: Reuters.com, 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.”

    Source:

    http://www.marketwire.com/press-release/internationally-recognized-engineering-firm-confirms-results-earlier-company-autoclave-otcbb-srch-1557151.htm

    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.

    Source: http://biz.yahoo.com/e/110812/srch.ob10-q.html

    Financial Strength (19-Sept-2011)

    Company

    Industry

    Sector

    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: Reuters.com, SEC Filings.

    Analyst Consensus

    No consensus recommendations data available.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    No consensus recommendations data available.

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