Gold Summit - analyzed and compared
I can see that Gold Summit (TSX-V: GSM) has been edging up lately. It is nice to see these microcap juniors doing well. When money flows into this sector, these exploration companies with tiny market caps but excellent pedigrees and properties in good locations will rise the most in percentage terms. The stock is rising on not much volume (when measured in dollars of stock bought). If - I should say when - gold goes to $850 or $1,000, imagine how far these companies can fly. The leverage to gold is tremendous.
This company can be compared quite favorably with Piedmont Mining (USA-OTC: PIED) which is a company I know a lot about. Piedmont has a similar tiny market cap as Gold Summit (GSM) does. Like GSM it has stellar geological talent behind it. Also, PIED is focused only on Nevada with about 7 exploration projects there, 3 of which are starting drill programs in the next week or two. Nevada is the place to be, a safe mine-friendly jurisdiction with over twice the gold production per square mile as South Africa. I have watched Piedmont go from 7 cents to 37 cents (yesterday's close) in the last 3 years. GSM is at about the same stage now as Piedmont. GSM is focused primarily (though not exclusively) on Nevada, and is drilling now. It owns its Monte Christo project 100% as far as I know (no JV partner) and has a lower market cap. With excellent drill results this stock could be $.50 or $1.00; with $850-1,000 gold it could be $2.00. (I know, these sorts of stock price predictions seem ridiculous at this time, but so did $750 gold six years ago when gold was trading at $260). We have to let the drill rig and the passage of time tell the story further.