Easily 10 bagger.... Amarillo Gold is highly undervalued. They have two excellent projects in Brazil. The Mara Rosa project (1.3 million oz at 1.6 gpt) is likely to begin production of 125,000 oz in 2015 (feasibility due in early 2013). Mara Rosa is on 150,000 acres and has significant exploration potential to expand production in the future. Cash costs are forecasted to be low ($525) and recoveries high (92%). They own the project 100% and the infrastructure is excellent. The capex is forecasted to be $184 million.
The Lavras do Sul property is an early exploration project on 50,000 acres with several drilling targets. They have already found 500,000 oz (.8 gpt). Lavras do Sul is only owned 60 percent, but there is likely a mine to be found.
At a fully diluted market cap of $58 million, Amarillo Gold is a speculative stock with significant upside potential. I wish they owned the Lavras do Sul property outright (their JV partner has a buy back option), since that is their main pipeline for another mine, but this stock is still attractive. If they can expand their resources at Mara Rosa, and expand future production to 150,000 oz, then this stock could easily be a 10 bagger long term. There is always high risk for companies that are not producers with cash flow, but Amarillo appears to be a very good bet for the long term.