shifting gearsI hate to use certain expressions because it sure looks like rampant pumping, but in my opinion GGI is finaly on the launch pad and ready to make a big move higher. I have been invested with this stock for nearly 2 years and waited patiently through the market ups and downs, while the company got a lot of work done behind the scenes. Investors in juniors are typically very impatient and unwilling to allow developments to progress if the stock is weak. The reality of the sector is that it takes years to become an overnight success.
GGI has assembled an excellent suite of properties and then went about the business of completing the fieldwork to prepare for a more aggressive exploration program. Getting a drill lined up in Mexico is a challenge in itself, but it looks like we have defined some high priority targets, and will now be in position to complete a drilling program. Drill results are what has contributed to the biggest share performance success stories this year, and Morales is certainly capable of delivering results that will put GGI on the front burner. So I am very optimistic for the short term and happy that I waited.
Over the longer term outlook, I am even more bullish. The Mexican government has staked a huge part of Chihuahua and other states where they believe O&G resources may exist. That has effectively taken a lot of the exploration property inventory off the market for juniors looking to participate in the Mexico gold and silver story. GGI controls a huge property area and is willing to do a JV deal, which would leverage shareholders to a piece of any new success without putting a strain on the finances of the company. Those JV projects are now more valuable and in demand. And if GGI or another junior hits on a major new discovery nearby, the JV properties will become more valuable still.
So I am quite happy to hold on and enjoy this ride. This is one of the best positioned juniors in Mexico and it is still in bargain territory but I suspect we will not have to endure the low share price too much longer.
I met with the management of Paramount Gold and Silver this week at the Vegas show. For anyone that is now aware of it, they control a large block of property immediately adjacent to our holdings, and they have met with exploration success on targets that are believed to extend onto our concessions. I asked what their opinion was of GGI and they have some very complimentary things to say about Steve Regocci and GGI. For the average shareholder, that may not seem important, but keep in mind the universe of juniors active in Mexico is very small, and the players know each other intimately. To have the respect of other companies is critical in order to get good deals done.
GGI is going to be leveraged to its own exploration results, but it is also a project generator, and the success of the company will be largely dependant on the quality of the deals it can negotiate since the property holdings amount to far more than we can ever explore on our own. I think things will start happening pretty fast from here on...
cheers!
COACH247