TER: So who are you following, then, in the rare earths?

VG: Avalon Rare Metals (TSX:AVL) is kind of a darling because I bought it so cheap. I've been following that from around the 40 cent range. It had a very impressive run to over $4. The most important thing is not the tenfold run in price. It's also the increase in market valuation because a $4 market cap on a company with 80 million shares outstanding is a company that's worth a lot of money and is representative of what they've got.

They've got one of the largest deposits, they're working on feasibility, they're working on all the things it's going to take to put it in production. Based on its size, I don't think the fact that it's in the north is going to be a major hurdle. If anything, due to the relationship with the native communities up there, I think that's actually going to be a benefit. So Avalon I personally believe is going to be probably the first or second company to attain that status, and they're very well funded, working towards their end goal.

They're considering actually using wind power to power their project because they are located in one of the windiest places up in the Northwest Territories. So I think that really attests to a legitimately green company. This company is the type that's just going to keep moving up and up and up because they're going to keep hitting the milestones without anything hindering it.

TER: So they're one of the first one or two to get to production. Are there other ones that you are following that are in a similar situation?

VG: I think Rare Element Resources Ltd. (TSX.V:RES) is certainly in a similar situation. I have a personal bias towards Avalon just because I have so much more of Avalon stock, but that's not to say by any means that Rare Element Resources is not in a situation where they can really progress. They've had a similar run in their stock from give or take 40 cents to $4 as well.

They have a tighter share structure, but they also have a bit of a small project. However, it's not in the remote situation (i.e., it's not in the Northwest Territories), so that's kind of nice. But I think both these companies are going to be real winners in this situation. It'll be like having a Goldcorp and a Barrick. It's not necessarily one or the other. I think it'll be really both.

TER: On BNN you mentioned a company named Threegold Resources Inc. (THG:TSX.V) that seems to be in a similar space.
VG: Threegold is in the rare earth space. And, again, not a lot of the companies that are really in a low, low market cap (i.e., 15 cents and lower with not very many shares out) compel me in the rare earth space, but Threegold certainly did for multiple reasons. I've actually followed this company for quite a while, since inception actually, just haphazardly because somebody presented it to me.

When I saw them come out with these rare earth numbers, I was quite intrigued and I sat down with the president probably a couple of months ago. He told me in University his Masters was on rare earths. A lot of these rare earths companies, especially the ones just sprouting up now, have nice projects, have good consultants, but the people who actually work for the company don't always have the highest expertise in the area.

Well, this is a company who has a guy in charge that spent most of his academic career working on and researching the rare earth space and that, to me, makes a big difference.

I think it's around 17 cents today. Right now we're still waiting on news on their gold project which could end up being a new discovery. If it comes back positive, I think it'll be a game changer for the company. This could have major potential. That's my opinion.

TER: Are there other sources of energy or energy phasing alternatives that you can discuss?

VG: There's lots we can discuss, but primarily I've been sticking to those just as an area where I've been comfortable with. Geothermal is obviously something that's done well and going to continue to do well. I still think the major geothermal phase is yet to come because we've seen a bit of a bump in it a while back and it's taken the back burner again. I think we're probably due for something. Exactly when, I can't really say, but I think the geothermal phase is going to start seeing some appreciation. Some companies such as Western Geothermal and Nevada Geothermal are probably going to see some appreciation based on that.

TER: We appreciate your time, once again, Victor. This has been very interesting.

By arrangement with: www.theenergyreport.com

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