MD: Rare Earth Excitement

Adrian Day's Global Analyst (11/15/2010)
"Midland Exploration has drifted slightly from the price jump in September when it announced a JV with the Japan Oil, Gas Company (Jogmec) on a rare earths property. Since then, the aggressive exploration by Jogmec is paying off, with the discovery of two new REE systems, as well as some significant assay results from initial drilling.

The JV has staked new ground around existing properties. Given Japan's urgent need for rare earths, Jogmec is being very aggressive in its program. This does not guarantee success, of course, but it does mean the properties will get properly explored. . .With a strong balance sheet, top management, a sound, disciplined business plan and several active JVs on various properties in different resources, Midland remains a top holding. The rare earths venture will likely drive the stock price in the near term, though there are many other irons in the fire. Given the excitement over rare earths, the stock could jump on positive news at any time but we will wait for further retracement to add to positions. If you do not own already, $1.60 might be a good entry price."

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