AMEL, FASV and XTGR: Small Cap Mining Stocks With News to Dig Into

Amerilithium Corp. (OTC: AMEL), First American Silver (OTC: FASV) and Xtra-Gold Resources (OTC: XTGR) are three small cap mining stocks that recently issued press releases or had other updates for investors. Specifically, AMEL moved into the exploration stage at one of their lithium mining projects, FASV started a geographical survey on a gold and silver prospect and XTGR announced that they keep intercepting gold mineralization at their Ghana gold mining project. Of course, there is nothing wrong with small cap mining stocks issuing press releases or updates to investors concerning their mining activities. However, its also important to remember that just one well placed or well written press release or update from a small cap mining stock like AMEL, FASV or XTGR can send shares soaring (and likewise, cause them to sink). Hence, here is a closer look at all three mining stocks to help you decide whether their recent press releases or exploration updates warrant further digging into:

Amerilithium Corp. (OTC: AMEL) Moves Into the Exploration Stage at One of Their Lithium Mining Projects

Amerilithium has a lithium mining portfolio consisting of approximately 724,000 acres that include three Nevada lithium projects near the only lithium producing plant in the US, a large project in Alberta (Canada) and a project in Western Australia. On Wednesday, Amerilithium announced the completion of initial data acquisition on one of their Nevada lithium mining projects plus the start of the first stage of its Geophysical exploration on another Nevada Lithium project. Nevertheless, Amerilithium closed at $0.190 (AMEL has a 52 week trading range of $0.13 to $0.57 a share) and its worth mentioning that the stock has a history of being promoted. Investors should also note that Amerilithium has no revenues; net losses of $241k, $256k, $595k and $163k for each of the last four quarters; and $468k in cash. Hence, AMEL will likely need to do a few private placements (diluting shareholders) to move beyond the exploration stage.

First American Silver (OTC: FASV) Starts a Geophysical Survey on its Mt. Jackson Gold and Silver Prospect

First American Silver explores and develops silver mining properties in Nevada. On Wednesday, First American Silver announced preliminary gravity geophysical survey on their Mt. Jackson Gold and Silver prospect in Nevada. FASV also noted that past drilling on the property has produced estimates of approximately 42,000 ounces of gold and 960,000 ounces of silver on the property. Hence, First American Silver rose 15% to $0.230 (FASV has a 52 week trading range of $0.16 to $1.39 a share). However, investors should note that First American Silver has no revenues; net losses of $33k, $25k, $36k and $2k for each of the last four quarters respectively; and $80k in cash to cover liabilities of $9k. Hence, expect First American Silver to do a few private placements when they are ready to move beyond the exploration mining stage.

Xtra-Gold Resources (OTC: XTGR) Keeps Intersecting Gold Mineralization at Their Ghana Gold Project

Xtra-Gold Resources is a gold exploration mining company with a substantial land position in the Kibi greenstone belt or so-called “Kibi Gold Belt" in Ghana, West Africa. On Wednesday, Xtra-Gold Resources announced that ongoing drilling on the Kibi Gold Project has continued to intersect significant gold mineralization. Hence, Xtra-Gold Resources rose 9.77% to $1.91 (XTGR has a 52 week trading range of $1.40 to $2.51 a share). However, investors should note that Xtra-Gold Resources has no revenues; net losses of $1,424k, $431k, $1,455k and $564k for each of the last four quarters respectively; and $9,098k in cash to cover $348k in liabilities. Hence, Xtra-Gold Resources will likely not need to do any private placements that would dilute shareholders for some time.

The Bottom Line. Investors should be concerned that an investment in AMEL and FASV might be diluted by private placements should these mining stocks move beyond the exploration stage while XTGR (at least on the surface) looks like a mining stock that is worth taking a closer look at.