ITF-V (Freegold) is a definite sleeper.
Two major gold projects in North America -- Alaska and Idaho.
The Alaskan project, 20 miles from Fairbanks, is in a area where major mining companies (Newmont, Placer Dome, Homestake) have staked ground or entered JV's with juniors in the past couple of years. Freegold's Golden Summit Project is the Fairbanks Mining District's heart, with a lode and placer production history totalling over 7 million oz. Bulk tonnage and high grade targets abound. Drilling began in 1995, and current reserves are 1.2 million oz, indicated & inferred. Budget for 1997 drilling will be double last year's US$750,000.
The Almaden Project, Idaho, is a million oz drill proven gold deposit which Freegold is earning a 60% interest in by completing a final feasibility study, due in June this year. A green light is fully expected, and mining analysts will be crunching Almaden numbers and rating Freegold as an emerging producer before summer's end.
We financed ITF in May 1996 at $1.00/share (Special Warrant Offering) in a market with strong expectations of a rising gold bullion price, an expectation which did not come true. Some of those who invested with ITF were "players" looking for leverage on gold, and these investors have been dumping the stock at a loss to themselves since the financing paper became freetrading last September. This market activity has suppressed ITF's price way below what such an asset base would reasonably be expected to command, and it continues to trade at $0.70-$0.75.
Numerous newsletter writers have taken up ITF based on its fundamentals, but the market has been slow to respond due to the aforementioned overhang. To the best of my knowledge, and I know ITF very well, this overhang is almost done. I estimate 60,000 shares left in one hand, down from 950,000 in September/96. When this is clear, the ITF market should slowly start to regain its momentum. My prediction, not at all recklessly undertaken, is that ITF will start to reflect its true value this fall, as the impact of Almaden is combined with drill results from the summer program in Alaska. Furthermore, I can think of few junior gold companies positioning themselves as more attractive takeover candidates by a major.
Call me at 1-800-667-1870, fax 604-685-8045, email rdh@direct.ca
for further info. Also, ITF's website is at
augoldgroup.com
Douglas Hickey
Manager, Investor Relations |
