Commodity Super-Cycle Mining Sector Rotation and Valuation Commentary on Yale Resources

Research group provides analytical review of the commodity super-cycle, commentary on commodities, China economics, copper insight, and provides a case study of exceptional valuation Yale Resources Ltd. (TSX-V: YLL).

New York, NY (PRWEB) November 13, 2008 -- Madison Avenue Research Group has published a report on mining sector rotation and related opportunity. The report also provides an analytical review of the commodity super-cycle, commentary on commodities, China economics, copper insight, and provides a case study of exceptional valuation Yale Resources Ltd. (TSX-V: YLL) provides as it focuses on defining a deposit that supports a production decision at its 100% owned La Verde Grande Mine.

The abridged report may be viewed free of charge at: http://www.madisonaveresearch.com/miningsectorrotation08.htm

Excerpts from report:
1) Yale Resources has methodically advanced their La Verde Grande project to the point where the inherent value of La Verde as a possible future revenue source is growing and the Company is approaching an inflection point.

Madison Avenue Research contacted Yale Resources' president, Ian Foreman, P.Geo., for insight into the significance of the latest press release on October 31, 2008 ("Yale Samples 14.2M Grading 2.14 % Cu, 151.8 G/T Ag And 0.96 % Zn Above La Verde Grande Mine") and he stated the following; "We have doubled the length to which the deposit comes to surface. The fact that it comes to surface for now 80% of its known length is really significant in that it increases the size of the deposit, it confirms our geological theories with regards to the size and dimensions of the deposit are correct, and that if we move down the path to production then this dramatically reduces things such as strip ratio … when you've got 40m swaths of mineralization on surface when you start - in early days of the deposit [strip ratio] may be zero."

Upside Valuation/Summary: An exceptional risk-reward scenario exists in Yale Resources Ltd. (YLL.V) as this young Mexico focused venture's story is more widely understood. Yale is focused on highly mineralized Copper-Gold-Silver-Zinc projects, including multiple historic mines with current production within 10 km of each of their properties. With less than 44M shares outstanding (~61M fully diluted) and currently trading at under CDN$0.15, the current market cap of YLL.V relative to its portfolio of highly prospective rapidly advancing projects seems disproportionate.

2) Mining Sector Rotation; November 2008 Sector Rotation Chart Demonstrates Opportunity That Exists Now
Commodities and material stocks over the last several weeks have experienced one of the steepest sell-offs ever seen as talk of China growth worries and the reality of global economic recession spreads. Markets are about dynamic equilibrium, and are in a constant state of flux as they attempt to maintain it. Sector Rotation is always happening, both between and within sectors. There are many forces at play - both micro & macro. A well balanced portfolio will have exposure to all sectors - the key is the weighting and timing. The stock market is a discounting mechanism; industry groups are priced now according to investor's perception of future company earnings and fortunes within the various groups. Capital flows in and out of the markets according to anticipated fortunes and momentum. The flight from commodity based stocks has been breathtaking as fund manager liquidated positions and appears to have created opportunity. Sometimes things just get overdone; don't misinterpret commodity stocks downward movement to be proportional with lack of demand for the commodity -- now would be the time to dive in as the foundation for the next boom in commodity prices is being sown and the related commodity stocks will react in time. You need to be invested in the sector in order to participate and a patient investor can now buy stocks and/or options at attractive prices. The relative ranking of the mining sector has steadily fallen from week to week and now sits at a low relative to almost every sector tracked (as illustrated in adjacent (in report) Sector Rotation Performance Spreadsheet)...

The abridged report may be viewed free of charge at: http://www.madisonaveresearch.com/miningsectorrotation08.htm

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Reports herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the disclaimer and disclosure section and link found at the bottom of the above referenced URL.

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