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Focus on Colombia prospecting, Gold Standard (GSV) speculation

Thom Calandra Thom Calandra, www.thomcalandra.com
0 Comments| October 7, 2013

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Please see:

October 2013Colombia Gold Letter.
Paul Harris's best to date.

Colombia's president and ministers are a joke when it comes to resources, for one.

The Medellin mining fair two weeks ago was ghost town hombre. Paul tells us there were four active exhibitors among the miners and prospectors, down from dozens in recent years.

Those stepping up to the plate, and which I either own or believe in: Colombian Mines Corp. (TSX: V.CMJ, Stock Forum); Continental Gold Ltd. (TSX: T.CNL, Stock Forum); and tiny Solvista Gold Corp. (TSX: V.SVV, Stock Forum), which is one of the TCR 8.

Good for them. Continental has the money and the extreme high grades to benefit from the show. Colombian Mines' Bob and Gloria Carrington have the local connections and another possible joint venture in the works on their large land package in Colombia -- plus the promise of El Dovio copper.

Solvista has ... has ... well ... consistency. Jeffrey Brooks and Miller Oprey were there. They expect more drilling results ahead from the Caramanta gold-copper porphyry, even with the prospector's stock one of the hardest hit in Latin America in 2013.

Anyway, one report by Nicolas Villegas, Colombia exploration manager for Iamgold Corp. (TSX: T.IMG, Stock Forum), was outstanding. I have met Nicolas. His article speaks volumes about the prospecting opportunity available now in Colombia, where mining companies are as cheap as ever.

Nice jobbo, Paul Harris.

GSV: JUST MET with Jonathan Awde of Gold Standard Ventures Corp. (TSX: V.GSV, Stock Forum).

Buy the shares today or Tuesday if you believe the Nevada developer is close to seeing a 4.9 percent stake in the company double -- from a large miner, probably active in Nevada. My bet is Agnico-Eagle Mines Ltd. (TSX: T.AEM, Stock Forum), but that is pure speculation as it also could be someone smaller ... or bigger.

Any increase in x-company's holdings will come at a premium with no warrant, just like the last financing. The company likely would be required to file its holdings at SEDAR.

In addition, a fresh hole is in the lab. GSV has had several joint venture offers on its Railroad properties near Elko. None were good enough to cut the quick.

"Unfortunately, we live and die by each hole, which if you understand the nature of Carlin-style deposits, is not the way it should be with the Railroad property (Rain District)," Jonathan says.

I am buying more shares today or Tuesday. The number of drill rigs operating in Nevada -- like the rest of the world -- is down 65 percent this year, perhaps more. That is total rigs, not GSV.

Says Awde, "We've kept our team. We are negotiating successfully on our Pinon properties." Those are low grade oxide -- perhaps 1 million ounces and a lot like Newmont Mining Corp.'s (NYSE: NEM, Stock Forum) Emigrant Mine in Nevada. Cheap mine to build -- maybe $60 million at Emigrant.

GSV owns about 51 % of the Pinon properties, to the south of Railroad.

Geologist Dave Mathewson, leading a team that includes Steven Koehler, Mac Jackson, Steve Moore and Robert Edie among others, has been "vectoring to the north" at the prime target at Railroad, the North Bullion Deposit. At least two companies - one Wednesday and one next week -- are kicking tires at the property.

They are busy even with the dumpster market for prospectors continuing into autumn here in western USA. The technical team will oversee another 15 drill holes through December.

I think the cover is going to come off the baseball on any of these targets. Home run. (Go Oakland Athletics, by the way.)

Jonathan was in town here in Tiburon to update our TCR audience before he headed to Elko. Much more in Tuesday report.

Your friendly,

THE CALANDRA REPORT: Subscribe


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