RE: Just received a reply from Blake.From Jay Taylor.
When Mrs. Taylor and I were visiting
my brother Roger in Belize a couple of
weeks ago, I learned of a gold-mining exploration project in that country known as the Ceibo Chico
Gold Prospect. Brother Roger knew the company involved was Erin Ventures Inc. So when I
returned to my computer in New York, I began some research and found this stock to be a very
appealing speculation at its current price of around US$0.06.
In the chart above, you will note an abrupt plunge in the company’s share price. This has to do with
the government of Serbia, which abruptly took away the license it had previously granted to Erin
Ventures to explore, develop, and mine the Piskanja Boron Property in Serbia. The company is now
addressing this misdeed in court and is seeking US$15 million in monetary compensation for losses
and certain damages. How that will come out only God knows, but obviously, a lot of shareholders
didn’t want to hold their breath and wait for the answer.
But the company does have this property in Belize known as the Ceibo Chico Gold Prospect. In a
nutshell, here is what I know about this project at this time.
· The company has the claims to mine alluvial gold from a stream on the property. This
stream has values that range from around $3 per cubic yard to $21 per cubic yard at $500
gold.
· The cost of buying and bringing in a dredge to mine this creek bed is very low and now that
the rainy season is over, a dredge is being mobilized on the property.
· Geologists believe there could be up to one million cubic yards of this alluvial gold-bearing
material on the company’s claims. If so, the company believes it could generate some
significant cash flow from this gold production to be used to further explore the property.
· Management believes it has identified the host rock for this alluvial gold. It plans to use the
proceeds from the sale of the alluvial gold mined on this property to look for the lode
deposit.
Will this company be successful in executing this business plan? I don’t know for sure, but the
chances would seem to be fairly good that they could, given an experienced management team and
the work carried out on the property both by Erin and previous operators. As with all the stocks we
recommend, you should conduct your own due diligence before buying, and we strongly
recommend you not allocate more than 5% of your portfolio to any one stock. We are, however,
adding this to our portfolio this week, believing that at under US$0.10, the downside risk is very
limited.