We used to have a decent discussion in one of the australian forums back from mid 2011 till the merger. There was a guy who owned a very large number of warrants, he could own a few % of the company now. He always liked the big picture of putting drill holes over the entire Meguma. Here are a few of his excerpts.
Prioe to the merger the canadian half owned absolutely nothing in Nova Scotia. The companies current assets were peiced together by wally and his team bcak when it was only on the australian stock exchenge.
This an announcement from Wally regarding purchasing Cochrane hille
https://hotcopper.com.au/threads/ann-purchase-of-cochrane-hill-project.1428528/?post_id=8254337
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The latest quarterly for ATV on the face of it appears to indicate things are progressing slowly but an unhyped announcement hides significant progress and time is getting short to purchase this stock at the bargain basement prices available right now.
There is real prospect for significant progress to occur in the March & June Quarters with regards to securing the necessary titles to advance the Touquoy project and complete the necessary industrial permitting.
The indications are that funding the Touquoy project wont be a major issue and the only issue holding things up is likely to be sorted out in the not to distant future with the Company now in a position to submit a formal request to the Province in the March quarter for assistance to clear the remaining unmarketable titles to enable conveyance and purchase.
Once the titles issue is sorted things will start to happen very quickly so the window to buy this stock at such a bargain price will only exist until the titles issue is sorted and this could happen a lot faster than many people expect.
The exploration potential of the Meguma Terrane is highlighted by the large increase in the Regional land package increased to 7,424 claims covering 1,184 km2 and four new gold-bearing properties optioned from prospectors. Package covers compelling targets with Touquoy/Cochrane Hill geological and geophysical
characteristics.
Wally Bucknell has a plan to find a lot of ounces and the large increase in claims to 1,184 km2 shows his intentions in no uncertain terms.
This stock has been sleeping for a long time but 2011 should reward ATV shareholders handsomely.
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Atlantic Gold taking up the offer to purchase 100% of Cochrane Hill which has a resource of 549000 ozs is a major step forward for the company and the market has not taken any notice.
Previously Atlantic Gold owned 60% of Cochrane Hill and Scorpio Gold had 40% and Atlantic Gold was required to spend an additional 3.2 Million as part of there option agreement with Scorpio Gold to earn their 60% stake.
Out of the blue Scorpio Gold have decided to sell 100% of Cochrane Hill for just 1.6 Million and Atlantic Gold have greatfully accepted the opportunity to reduce their cost to own Cochrane Hill by 1.6 Million and effectively gain 100 % ownership of the project and effectively an additional 220000 ozs for themselves that was previously attributed to Scorpio Gold for there 40% stake.
This additional 220000 ozs is worth approx $325 million at the current gold price and makes a mockery of the current market cap of Atlantic Gold which is approx $20 million.
Atlantic Gold has total resources of 1.205 Million ozs which has an in ground value of approx US$1.78 Billion.
This stock is outrageously undervalued and the recent agreement to purchase 100% of Cochrane Hill shows that the management are shrewd operators and have positioned themselves nicely to benefit from the galloping gold price in the years ahead.
This stock is basically unknown to investors because management couldn't promote there way out of a wet paper bag.
The management have already had significant success with Plutonic Resources in the 1990's when they took a $45 million dollar company and discovered 11 million ozs and turned it into a Billion dollar company and were taken over by Homestake.
Progress has been slow but steady and there is likely to be a lot of positive progress made this year as they are just waiting for some title issues to be sorted and then they should then get the final go ahead for the Touquoy Gold Project.
Hardly anybody knows about this stock and CEO Wally Bucknell is a notoriously conservative individual who has no idea how to promote the company but when it comes to how to run a successful gold company and produce and find gold they have a mighty impressive track record with Plutonic Resources and this story is well worth investigating thoroughly because in the words of Wally Bucknell Nova Scotia and the Meguma Terrane where they are finding gold and have a huge land position is just like Western Australia was in the late 1980's and gold became a major industry in Western Australia during that period and Ron Hawkes & Wally Bucknell were there at that time helping make it happen.
Atlantic Gold is getting close to reaching the stage of becoming a gold producer in Nova Scotia and once they get into production they will have the cashflow to conduct extensive exploration of the Meguma Terrane and Wally Bucknell is confident there are many millions of ozs just waiting to be found hidden under the gravel overburden and ripe for discovery by an experienced geologist with Wally Bucknell's expertise and proven track record.
DYOR
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Atlantic Gold is certainly an extremely undervalued stock with a market cap of only $21.3 Million and an in ground gold resource valued at approx A$1.7 Billion.
The 2010 Annual report was out on Friday and gives an excellent overview of progress to date and their future exploration plans for the meguma terrane.
Atlantic Gold has a very profitable gold project and they are getting close to the mining stage and yet the most exciting part is the exploration upside that they will be able to pursue with great gusto once they are generating cashflow from the Touquoy Project.
They fully expect to find many millions of oz's in this highly prospective but extremely underexplored gold terrane which they compare to how Western Australia was in the 1980's.
Wally Bucknell has a track record for finding a lot of gold and the patience of investors in this company should be handsomely rewarded in the not to distant future.
If you are interested in gold and gold stocks your time would certainly be warranted in finding out more about Atlantic Gold.
DYOR
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There are 3 million ozs of known resources in the Meguma Terrane and considering 90% of the Meguma is covered in Glacial till and has never been explored for gold there is a serious prospect that the known resources are just barely scratching the surface of what is there.
Wally Bucknell is certainly very confident that there is a lot of gold to be found in the Meguma and he has a plan to find it.
This company is very close to mining at Touquoy but considering the share price they should focus on some serious exploration and finding a couple of million ozs would certainly boost the share price and enable them to capital raise for production at Touquoy at the price where they should be being valued at around 34 cents.
This stock is a sleeper and nobody knows about it but some good exploration results that prove Wally's theories about the Meguma would catapult the share price skywards.
Atlantic Gold is certainly an extremely undervalued stock with a market cap of only $23 Million and an in ground gold resource valued at approx A$1.7 Billion.
The 2010 Annual report was out on Friday and gives an excellent overview of progress to date and their future exploration plans for the meguma terrane.
Atlantic Gold has a very profitable gold project and they are getting close to the mining stage and yet the most exciting part is the exploration upside that they will be able to pursue with great gusto once they are generating cashflow from the Touquoy Project.
They fully expect to find many millions of oz's in this highly prospective but extremely underexplored gold terrane which they compare to how Western Australia was in the 1980's.
Wally Bucknell has a track record for finding a lot of gold and the patience of investors in this company should be handsomely rewarded in the not to distant future.
If you are interested in gold and gold stocks your time would certainly be warranted in finding out more about Atlantic Gold.
DYOR
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The March quarterly reads well and of particular interest were the comments regarding the economics of touquoy which with the rising gold price keeps getting better and better.
With the strengthening A$ the project cost has reduced from A$136 million to A$118 million and an increase in NPV from A$88 million to A$152 million, IRR has increased from 32% to 50% and net cash surplus from A164 million to A$250 million.
There have been substantial delays in bringing Touquoy to fruition but this has worked out in Atlantic Golds favour because the rapidly increasing gold price means the longer mining is delayed the greater the value of the gold.
Gold is going to the moon and in the words of Jim Sinclair the premiere gold guru, gold in the ground is where its at because as gold goes higher and higher the gold in the ground becomes worth more and more and in the not to distant future when investors wake up they will be valuing gold stocks on the value of the gold they have in the ground rather than whether they are currently producing gold.
As of today the value in the ground of 1,205,000 ozs is A$1.72 Million and the market cap of ATV is approximately A$22 Million.
It appears that finally Ron and Wally have realised the importance of gold exploration as opposed to just focusing on bringing Touquoy into production and how the true wealth will be generated by Wally finding millions of ozs of gold in the Meguma and a delay in production now just means they can produce the gold and receive ever increasing prices for that gold in the years ahead.
If Touquoy doesn't get into production for 18 months that should be considered no big deal as gold is likely to be over $2000 by that time.
In that time if Wally has a few million to spend on exploration in the Meguma there is a real chance he could find a million ozs or more on top of what they already have and that should certainly ignite the share price.
The share price is insanely undervalued but also an opportunity for investors to get set at firesale prices.
When the public finally wakes up, the price of quality gold stocks with superior exploration projects and proven management are going to go to the moon.
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The following is a quote by gold master guru Jim Sinclair
"The Hedgies are having their way with the gold shares, but logically this is coming to an end. When you can buy companies whose resources are three times the company?s present capitalization, the share is getting unreasonably cheap."
ATV Gold Resource worth approx A$1.65 Billion
Market Cap A$22 Million approx
Certainly seems unreasonably cheap to me.
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AU Mining have steadily been increasing there stake in Atlantic Gold and currently own 71.6 Million shares which is approx 14%.
They have been buying rapidly lately and the SPP provided a lot of sellers who sold to get cash together to participate in the SPP and AU Mining happily bought those shares and now with profit taking from shareholders selling their SPP shares at a premium to the issue price of 4 cents AU Mining is picking up a large stake in ATV at bargain basement prices.
AU Mining would appear to be smart operators with very deep pockets and in the current investment climate they are taking the golden opportunity to buy ATV cheap as investors sell whilst the ASX is getting hammered.
Investors selling out of ATV are losing the chance to make a fortune and conversely AU Mining will ultimately reap a huge return on their investment.
I would surmise that AU Mining want as large a stake as they can possibly get and ideally would like to gain a controlling stake and subsequently they could then fund the Touquoy Project and loan the funds to Atlantic Gold and sign an offtake agreement to be paid back in gold for the loan.
This would make a lot of sense as they would be able to buy US$135 million of gold direct from ATV as Touquoy goes into production.
For very large investors like AU Mining it is difficult to buy a lot of gold so it makes enormous sense to take a large holding in a future gold producing company so you have ready access to the gold when it is produced and they get the double whammy benefit of owning a large holding in Atlantic Gold which is going to appreciate substantially once they list on the TSX and also when Touquoy goes into production. When Atlantic Gold has substantial funds being generated from Touquoy to spend on exploration, the skilled hands of Wally Bucknell and his team will subsequently find the many millions of ounces just sitting there in the Meguma waiting to be found by a highly experienced geologist who has a plan and knows what he is doing.(because he has done it before with Plutonic Resources)
AU Mining appear to be a friendly investor and it would seem they have substantial funds behind them and hence make for an ideal partner, they recognise the expertise Wally Bucknell has and logically would not want to do anything to make Wally leave ATV because Wally Bucknell will find the tens of millions of ounces sitting there in the Meguma Terrane, all he needs is the exploration budget and AU Mining are well aware of this important fact. AU Mining may well initiate a stand in the market once they reach 20% and this should be construed as a positive for all investors.
The financial climate is such that AU Mining are picking up a gem of a company for peanuts, they have the means to enable Atlantic Gold to become a major player and allow Wally Bucknell to fulfil his dream and realise the potential of the Meguma Terrane.
Investors have a golden opportunity to pick up a stake in Atlantic Gold at bargain basement prices in this depressed market and at a very exciting time in this companies history.