What a year.It's been almost a year since I thought 8 cents was a bargain. So much for the market for gold juniors. I still think this company has a shot based on the size of the discovery and it looks like they have some higher grade zones to explore now to.
of a JayTaylor I received over the holidays.
be anything but a highly speculative buy? But with 5.95 million gold-equivalent ounces (all categories) contained on its Nucleus and Revenue deposits in the Yukon, I believe it is a rational assuming gold resumes its upward path. It is important to note that both of these properties are road-accessible and amenable to open pit mining. Results of 2010 and 2011 Titan Surveys combined with drill results confirm management’s belief that a large-scale mineralized system exists that provides the potential to expand mineralization well beyond the current 43-101 resource. Indeed the total strike length of the target zone is over 10 kilometers. For sure, the company has a larger number of shares out than I like. But despite its 152,334,884 shares out, its 2-cent share price means its market cap is a mere $3 million. As of 9/30/13 the company had working capital of about $1 million.
The main criticism of the project is that grades are relatively low and the polymetallic nature of the deposit may give concern to metallurgical recoveries. However, preliminary metallurgical recoveries on the Nucleus Deposit, which contains 1.3 million ounces of gold, suggested recoveries up to 97%. The Revenue Deposit, 3 kilometers east of the Nucleus, contains 1.1 million oz. of gold but as of this date has not yet had metallurgical work carried out on it. Obviously, this is no “slam dunk,” but a return of the gold bull market alone could easily turn this 2-cent stock into a $0.20 issue without any property progress announcements. If you have a speculative bone in your body, this looks like a good bet.