Discoveries Create Fortunes: 50 oz of Au over 15 feet
Silver Stock Report
by Jason Hommel, December 21, 2006
Recent discoveries are creating fortunes for gold mining company shareholders.
On Dec. 4th, I let my paying subscribers know I had bought stock in a company that released a drill result of 50 oz. gold/tonne over 15 feet. Yes, that's fifty ounces of gold per tonne over 15 feet!
That high grade is shocking the entire gold mining industry. "There's gold in them thar hills!"
Here is an update.
The company just raised $15 million, at $.50/share, and closed today. On this news, the stock was up 17% for the day. 17% gain in one day, and many of my paying subscribers now own this stock!
But it's not too late to buy in. I estimate that after financing, the company will have about 110 million shares, fully diluted.
Stock price: $.87 Cdn.
Market cap: $83 million
The property with the high grade is 100% owned, and they have many other properties.
The average number of shares traded each day is about 2-4 million shares traded daily--so the stock is very liquid, and very easy to both buy and sell.
The drill result of 50 ounces/tonne over 15 feet is not a "one strike" wonder. In fact, previous drill results were just outstanding, yet overlooked by the market, as follows:
1 ounce gold/tonne over 31 feet -- 1997
.3 ounce gold/tonne over 75 feet -- 2003
.25 ounce gold/tonne over 44 feet -- 2004
1/3 ounce gold/tonne over 22 feet -- 2005
.85 ounce gold/tonne over 47 feet -- 2006
The last result, .85 ounce gold/tonne over 47 feet appears to be 100 meters away from the recent hit of 50 oz. gold/tonne over 15 feet.
The company will continue to release more drill results from the current drilling program.
The company plans to drill around the very high grade 50 ounces of gold per tonne, starting February 1st.
The company will soon be building a 2000 foot exploration ramp for $7-8 million dollars, right to the high grade area, for "bulk sampling".
One man, at my member's forum, calculated the potential here as follows:
"50 ounces of gold is $32,000 per tonne. This type of rock is likely around 4 tonnes per square meter so $128,000 worth of gold per square metre. If the vein was 4 meters wide by 1 meter, that’s $512,000 per meter of vein, or $1 million dollars per 2 meters of vein."
To get the name of this stock today, you can sign up to look at my portfolio, which automatically renews at $40/month.
Many people are saying that this stock is going to be the next Aurelian, or even better than Aurelian. Aurelian rose nearly 10,000%, or up 100 times, this year to create a $1 billion market cap, up from $10 milion!
Discoveries like these help to bring many investors into the natural resources sector.
Since the stock with the new gold discovery has less than $100 million market cap, it may be a stock that can rise 1000% in about 1 year.
I'm sorry I didn't get my subscribers into Aurelian! Although my top 3 stocks have not done as well as Aurelian, my top 3 were up about 200% (GMO), 400% (MMG), and 600% (SVG.V) for the year, which is not a bad performance for my portfolio. Two of those, GMO and MMG, I predicted would outperform in Jan. 2006.
The recent consolidation period appears about over. It therefore feels to me like gold and silver are about to take another breathtaking move upwards, starting about now, or maybe within 6 months, and over a period of about 6 months or less, we will see about 50-100% gains in gold and silver again, and the average stock in the natural resources sector will rise another 100-200%, or more.
Please do yourself a favor, and sign up to look at my portfolio, which automatically renews at $40/month.
We offer a money-back guarantee if you are not satisfied.
Investing is a numbers business. Here are some of my numbers:
I have about 750 paying subscribers. (up recently from about 600 about a month ago, but down from about 1000 subscribers back in May, 2006, when gold and silver were peaking.)
If you subscribe, you get access to the member's forum, which is an outstanding resource: Look at these statistics:
Threads: 603, Posts: 4,358, Members: 332, Active Members: 140
Nearly every time I ask for the order, and ask you to subscribe, some envious or covetous person emails me to call me greedy. (I will admit to seeking gains, but I don't think I'm doing it in an immoral, or excessive way.)
But let me explain why I ask you to subscribe. Subscriptions bring in about $25,000/month (after costs, hosting, CC processing, etc.) I spend nearly all of it on advertising (and sometimes more). In November, I spent $13,482 at google adwords, which is about 1/2 of my ad spending.
There are 34,000 email addresses on my free email list. My email list is growing at a rate of about 50-100% per year. I have spent about $400,000 on advertising, in the last 12 months.
I could not have afforded to find you and be found by you, without other people having first signed up to my subscription service. I started the subscription service due to market demand, after about 10 people said they would subscribe if I had such a service.
About 7000-10,000 people actually open my emails, and click through to read them at silverstockreport.com. So, about 10% of my regular readers are current paying subscribers.
A single semester's college course costs about, what, about $300?
A subscription to my portfolio for six months costs about $240.
Again, if you subscribe, you will get immediate access to the name of the stock with the 50oz. gold / tonne high grade, as well as the member's forum, where many very intelligent, and very wealthy, subscribers who love to crunch the numbers, discuss this stock, as well as many other natural resource stocks.
Now is the time to subscribe! Don't wait until after silver hits $20-25/oz. and gold exceeds $1000/oz. to subscribe, and then end up investing at the top, and suffering losses for 6 months while the sector may be in a temporary dip. Buy now to reap the best gains.
Gold Prices must go up! A lot! Why?
Paper money is fraud, and paper money growth has been tremendous. This Spring, the Fed stopped publishing numbers for M3 (M3 is the best measure of money in the banks) when M3 was about $10.3 trillion. Recently, I discovered a private company that is keeping track of M3, and M3 is soaring past $11.2 trillion, a 10% increase this year.
The dollar, which is said to be a unit of account, no longer has any accounting, and those who print it, are accountable to no one!
They are accountable to you, but only if you do something about it, such as buy gold and silver!
So let's do some counting!
Central banks are running short on gold, and are starting to buy gold again. Currently, the U.S. (officially) has 261 million ounces of gold.
If U.S. money, M3, were backed by U.S. gold, there would be over $42,911 dollars for every one ounce of gold!
The total value of all the paper money and bonds in the world is about $100 trillion, and all the gold ever mined in all of human history is just under about 5 billion ounces. That’s $20,000 per ounce!
But world central banks are running out of gold, and some are starting to buy gold, such as Russia, China, South Africa, South Korea, and more! The central banks claim to have about 30,000 tonnes of gold, but they may have less than half of that, as most has been lent or leased into the market over the past ten years.
In sum, at $700/oz., there is about $3.5 trillion dollars worth of gold in the world, but there is $50 trillion worth of bonds, and $40 trillion worth of paper money! So, bonds and paper money must go down, and gold must go up!
Gold is money, because of its fundamental nature.
Gold is money because it is liquid and easily tradable, with a narrow spread between the prices to buy and sell (about 1%). Also, gold is easily transportable, because it has a high value for its weight. This makes gold an excellent medium of exchange.
Gold is money because it is divisible, you can divide it into coins, or re-melt it into bars, without destroying it. Also, gold is fungible, where each unit of .999 fine gold (99.9% pure) is similar enough to another unit so as to be easily interchangeable. Gold is also nearly impossible to counterfeit, as genuine gold is easily recognizable. When measured by weight, gold is easily countable, and verifiable. These properties make gold an excellent unit of account.
Gold is money because it is a great store of value. Gold is not subject to decay, rot, or rust. Gold has an intrinsic value, because it is rare, highly coveted the world over, and is a luxury item.
About 10 years ago, M3 was about $4 trillion, and silver was at $5/oz. Today, M3 is exceeding $11.2 trillion, and silver is at $12.50/oz. Silver today is about as cheap as it ever was!
Gold mining companies remain cheap. Learn about the best resource companies today, and subscribe to my Silver Stock Report.