Nevada Juniors....desperately seeking valueWatching the sharp movement in a few Nevada based juniors has been encouraging the past few days. It is also a great example to compare and evaluate what shareholders have in CAT vs early junior leaders.
VIT which is more or less excitement over an early drill result ( no better than Staccato has had in some of it's early holes )has a market cap close to 2.5 times of Staccato and obviously more S/O. Columbus Gold which is a new issue just out in May, is more or less some promising properties in Nevada and as described by D. Casey...." A People Play". This is in no way an attempt to diminish the excitement over these particular 2 juniors, but to illustrate to those perhaps newer to pm juniors, that once gold breaks out over $650 ( that is what takes gold from a consolidating period into a full bullish runaway trend ) decent quality juniors like Staccato will soar. As far as mgmt goes, comparing the 3 mentioned juniors,CGT has J. Livermore and Andy Wallace..both pros with history in Nevada. VIT has Bema as a major stakeholder.
Staccato has 4 of the best geologists in Nevada with over 100 combined years of expertise. Richard Russell with over 20 years was part of of 20 million discovery owned now by Newmont. Plus another Nevada discovery Mule Canyon and Pipeline. D. Decker has 30 years of expertise and involvement with Nevada and owns over 3200 acres at the Marigold mine area. He seems to have a sharp eye for Nevada gold properties judging from his 6 million plus shares, options owned in Staccato ( correct me if I have number wrong ) Carl Pesciois a veteran of Nevada and well known, recently doing a royalty deal with Vista Gold. He has extensive experience and huge land ownership which is related to Vista Gold. Finally, Dave Mathewson over 35 years and many of those with Newmont, involved with Rain deposit discoveries. Now, how does that geological team stack up against other Nevada juniors or Columbus Gold and Victoria? No contest
One way of valuing a junior is to take number of shares and divide by ounces in ground. It includes the probable and inferred categories also. In that way, you see how many ounces back up each share. In the case of Victoria and Columbus, there is none.( as far as my own dd has shown, but I could be wrong) So even well promoted, well managed companies like those 2 can fly. Both have share prices ranging from $1.20 to $1.70. Compare that with Staccato which is .65 and will in all probability announce an updated 43-101 compliant resource calc of over 1,000,000 ounces.
So, if we are early in another up trend for gold which might test the $730 high and gold writers are talking about "quality mgmt teams" and some actual results, then this junior's days in the .60 area will be a distant memory and a time when you can look back and say.......
"hey, I had a chance to buy this one at .62 cents"
Just to explain Pizza contest price bids for June 1st, MHO is Staccato will by April test $2 Depending on how physical gold price does, my bid is based on a temporary pull back to it's old high which at that time might become the new support level. $1.50. If they do find another "pod like deposit" along the Ratto Ridge, then much higher prices are in store.
MHO only