Galahad Metals Inc. V.GAX

Small NR and reading material

[glorieux]

See News Release (C-ABI) Abcourt Mines Inc

Mr. Renaud Hinse reports
ABCOURT ENLARGES ITS ABCOURT-BARVUE PROPERTY
Abcourt Mines Inc. signed a purchase agreement with Galahad Metals Inc. for the acquisition of 104 claims, located in the Landrienne and Barraute townships, representing 4,378 hectares, to enlarge its Abcourt-Barvue property.
These claims cover the extensions of the Abcourt-Barvue structure to the east and to the west over a distance of 16 kilometres. Galahad did airborne and ground geophysical surveys but drilled only one hole. In the past, very little exploration was done on these claims, but a few interesting diamond drill intersections, like 52.92 grams per tonne silver over 4.57 metres, 32.08 g/t Ag and 4.08 g/t gold over 1.22 m, and 1.05 per cent zinc over 8.38 m, have been reported. The decision to acquire these claims was triggered by the good drilling results on the Abcourt-Barvue property that have been reported lately. This acquisition gives Abcourt a control over the Abcourt-Barvue structure. The ore-making potential of this structure at the eastern and western ends of the mine area remains to be tested, but it could be substantial.
The acquisition cost is $25,000 cash and 500,000 Class B shares of Abcourt. The shares are subject to a hold period of four months and one day. This agreement is subject to the approval of the TSX Venture Exchange.
We seek Safe Harbor.
So the deal is worth about $80k at this point. ABI has a large share float of 149M shares and right now is 11 cents. I guess these shares are money in the bank and increases our treasury without affecting any of our main projects. Right now cash is king and we have lots of it and results in the next 4 weeks.
As a side note, I had mentionned a few months back that I expected GAX to overtake GNH in the share price race...in my mind I had GAX moving up, not GNH moving down this low. If we do get the assays we are hoping for, then we should rocket by GNH as they are just getting their drill going again.
Here is some decent reading by Dr. Steve Sjuggerud from the DailyWealth in the mean time to keep us from moving away from gold stocks at the wrong time:

It's the third-cheapest they've been since 2003 and history is on your side here, based on the best gold stock valuation indicator I know

My favourite gold stock "value" indicator is flashing BUY right now.
The last two times this happened, gold stocks doubled in eight months or less...
This indicator is simple at its core. But it takes some work to put it together. Fortunately, my friend John Doody does the work for us...
John's excellent gold stock value indicator is a feature of his newsletter, The Gold Stock Analyst.
John's indicator essentially looks at two things...
How much gold do you have in the ground?
How much gold are you producing?
John has determined the "fair value" of these things for his universe of gold stocks, relative to the price of gold. When investors get too excited about gold stocks, they trade at a premium to John's fair value. When investors are down on gold stocks, they trade at a discount to John's fair value.
And the indicator works...
Gold stocks last traded at a big premium to John's fair value in October 2007. The indicator was right: Gold stocks fell 50% over the next year.
By October 2008, gold stocks were cheap by John's indicator... And they more than doubled in seven months. Right again. (The previous time gold stocks were particularly cheap by John's indicator was back in March 2003... Gold stocks doubled in eight months.)
Last week, I saw John Doody at a conference in Pennsylvania. He told me gold stocks are darn cheap once again relative to their fair value.
It makes sense... Since the beginning of May, gold stocks have tumbled, down by double-digits in percentage terms. Meanwhile, the price of gold is up (just barely).
So gold stocks are now cheap once again.
It's the third-cheapest they've been since 2003. The other two times gold stocks got cheap like this, they doubled in eight months or less.

Of course, I can't guarantee a double in eight months this time around... but history is on your side here, based on the best gold stock valuation indicator I know.
The simplest way to buy gold stocks is through GDX, a basket of big gold producers.
Gold stocks are a great value. Trade accordingly.