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ECUADOR GOLD AND COPPER CORP V.EGX

"Ecuador Gold and Copper Corp is a mineral exploration, mining and development company. The Company acquires and explores gold mineral rights located in Ecuador."


TSXV:EGX - Post by User

Comment by Goldenruleson May 31, 2015 2:49pm
176 Views
Post# 23782372

RE:RE:A Big Picture Look at the PEA

RE:RE:A Big Picture Look at the PEAI have no idea what the short term will bring. From past experience, I'd say when a company goes into news blackout for a year after promising the PEA last May, the analysts simply ignore it. They need hard data, which this PEA provides. I expect with the AGM coming up in June and this report out now, the company should start making a little more noise. 

As I've been saying over the past few months, this play will be directly affected by the price of gold. This is really all that matters now. We have some potential fireworks coming up this Friday with Greece's next payment, which they claim they can't make. June should be a big month for gold and with this much uncertainty in the air, I don't think we'll see the same "sell in May and go away" mentality in the gold market. 

My portfolio is filled with stocks that are leveraged to the price of gold and I think the PEA puts EGX officially in this category. Analysts know the value of these large low-grade deposits because of the economies of scale. Copper/gold porphyries, that almost always have low grade gold, make up the largest gold deposits in the world and analysts know this. The similarities between this play and Corriente's are greater than those of Frute del Norte's and Corriente's and Corriente's deposit sold to the Chinese and is now going into production. It takes a little patience to make money on these plays, but the returns can be life changing if the right circumstances line up, as I feel they will with EGX and the gold market over the coming months. 
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