Ashanti Gold Corp. GULSF

A few thoughts on MNL and GUL vs IFR

[Dave4444]

I have owned a lot of GUL and made good money on the last drill program. I now have a lot of MNL. But have recently also been picking up lots of IFR. IMHO at 77 cents IFR it is a steal. Why you ask? Well for one thing it has over $30 million in the bank, which is over 50 cents per share. Then there are the big McKenzie Valley gas discoveries, which will see more drilling this winter. And sooner yet, it has a 6.25% interest in the about to spud Lytham North Sea project that will be followed by the Ridgewood Project. Both Lytham and Ridgewood are being drilled by Lundin Petroleum and since the licences to the blocks were held by IFR it is only paying 5% of the costs for Lytham and only 15% of the costs for Ridgewood. Now here is where the good part comes in, With only about 60 million shares outstanding the upside if Lytham or Ridgewood hit, is huge, multiple dollars per share and yet the downside risk on a miss is about 10 cents at most. Why?? Because of the 50 cents a share in cash, the McKenzie gas discoveries, the ownership of a number of other North Sea licences, etc. So I think risking 10 cents or so to possibly make a couple of dollars is a no-brainer.