Newstrike Capital Inc NWSKF

Weird day

[taylor1988]

5 orders went through during the day for a total of 125,000 shares or almost 70% of shares traded today and in the last half hour 15,000 shares or less than 10% of shares traded took us from $3.05 to the lows of the day. As Caliche's post about TXG has showed, NES is trading at a huge discount at these prices based on TXG's current $725 million market cap. Most high-grade ounces are worth $150 / oz in this market and acquired for $200 / oz + in acquisitions. Currently NES fully diluted market cap of $325 million is pricing them in for 2.2 million ounces of gold at Ana Paula. Anyone who has looked at a recent drill map or done their due dilligence here knows there is more than 3 million ounces alone in the breccia (not to mention the other 1 km strike of low-grade bulk tonnage/ high-grade silver). The volume on TXG is really interesting the past two days and I'm surprised some money hasn't spilled into NES. Ana Paula is a world-class deposit and anyone who says different has yet to take a position. After comparing several different juniors with market capitalizations of at least $100 million and deposit potential of at least 3 million ounces it's apparent that NES provides one of the best entries into a world-class gold find. Based on 8 million ounces at Ana Paula - NES is being given a $40 / oz valuation - or 1/10th the evaluation given to Ventana, 1/7th of Fronteer and 1/20th that of Andean Resources price paid per oz when acquired by majors.