RE:Interesting comparison.......
Delphi008 wrote: In his report last week Luke Burgess, Editor of the Junior Mining Trader, compared NFG to Aurelian Resources who owned a high grade project in Ecuador in 2006. After releasing impressive drill results, shares of Aurelian went from 70 cents to just under $40. Some of the results that caught the attention of investors were:
38.6 g/t over 10.5 meters
97 g/t over 14.8 meters
149 g/t over 11.5 meters
24 g/t over 189 meters
It was this last hole (CP-06-57) that sparked the rally and caused Blackmont Capital's Don Poirier to remark, "This is one of the best drill hole results we have ever seen. We are excited about this new discovery, believing that it represents one of the best in the past decade." Even though Aurelian went on to report even better drill holes, it was CP-06-57 that put Aurelian on the map and the company would eventually go on to be bought out by Kinross in a $2.1 billion deal! Luke Burgess believes NFG has all the makings of another Aurelian and will be the #1 gold stock of this decade.
The rich get richer, eh Eric.......!
Yeah I am familiar with the story on ARU in Ecuador and the author of the article should have finished the story. Lol. It did go to $40 initially on great drill results which had high grade gold and silver as well if I remember correctly but the government banned foreign mining companies from doing business there out of the blue during the discovery and the stock crashed but Kinross did buy it eventually for a lot less. I think the deal went through for about 1.2 billion dollars which was about the same as the Arequipa ARQ and Barrick deal about a decade before in Peru. Kinross got a sweetheart of a deal on that one. I think there were a few shady things that happened but it was a huge gold deposit with well over ten million ounces of gold and 20 million ounces of silver.
One huge benefit of having this gold discovery in Newfoundland is it is a friendly mining jurisdiction so there is no political risk. Actually Newfoundland's track record of giving away its natural resources for peanuts will work in New Found Gold's favour. Just ask Quebec Hydro or Exxon Oil who did ok off Newfoundland's resources. I'm being just a little bit sarcastic. Lol