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Granada Gold Mine Inc. V.GGM

Alternate Symbol(s):  GBBFF

Granada Gold Mine Inc. is a Canada-based junior mining and exploration company. The Company is engaged in developing and exploring its 100% owned Granada Gold Property near Rouyn-Noranda, Quebec, which is adjacent to the Cadillac Break. The Granada Gold Property is located five kilometers south of the mining community of Rouyn-Noranda, Quebec. The property includes the former Granada Gold underground mine. The Company owns about 14.73 square kilometers of land in a combination of mining leases and claims. This near-surface and underground gold deposit, with the added discovery of a Rubidium (alkali metal) deposit, is located 15 minutes from Rouyn-Noranda, Quebec.


TSXV:GGM - Post by User

Bullboard Posts
Post by RX4H1N1on Apr 12, 2013 9:25pm
398 Views
Post# 21249776

GBB on goldsilverdata.com

GBB on goldsilverdata.com

Summary (from last analysis - 01/10/2013)

Gold Bullion Development is highly undervalued with a fully diluted market cap of only $24 million. The Granada property in Quebec, Canada is on 27,000 acres. It is a shallow surface mine with an estimated 3.5+ million oz resource. They have a 43-101 resource estimate of 2.6 million oz at 1 gpt (1.6 million Measured and Indicated), and will likely increase that before they release a feasibility study in the next couple of years. This low valuation is typical in the mining business lately. Large deposits are consistently being undervalued (future reserves are valued at $13). The stock market refuses to give a company value until they are near production. Thus, this is a long term investment.

I would not expect this stock to get its true valuation for another 5 years. However, they are in a gold district in Quebec, and it would not surprise me for them to find 3+ million oz on their 27,000 acre property. If that happens, this stock could be a 5 bagger very quickly, and a 25 bagger long term. As a speculation stock this is not a bad play, because there are not many 3 million oz deposits in the world.

There are a few red flags. First, is the timeline until production, which won’t be for at least 5 years. The second is the possibility of a buyout. They will get several offers, because it is so cheap. Also, the stock is highly diluted (and they are low on cash), which will limit the explosiveness of the stock price. The last red flag is management. If I had more confidence in management's ability to build the mine, I would be more excited. On the positive side, the location is ideal. Another positive is that a PFS (pre-feasibility study) is going to be started in 2013.
 
 
 
 
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