Gold and Silver Juniors, Mid-tiers and Producers Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LLCF who wrote (65564)	6/3/2009 8:40:51 AM
From: Earlie	Read Replies (2) of 78411

Hi Dak: Your query re GSL is well timed. You might be well served to have a serious look at it. If of interest, I would do it in the very near term. Here's why: - The company's Agnostura deposit is now fully PROVEN and exceeds 15.0 million ounces. - The feasibility (phase one) report has been published and it is excellent.... low stripping ratio, good oxide/sulphide ratio, solid overall grade, etc. - The World Bank has spent two years doing its due diligence and just bought a solid slug of it. They will provide $150.0 million in loans and bring in related banks to fund the estimated $600.0 million total mine/infrastructure costs. Put another way, GSL will not have to raise serious sums to get into production. - A 15 year mine life (minimum) with expected 200,000 ounce production in 2012 is expected. - The company is the "favored child" of the Uribe government (bless that amazing man for what he has done for Colombia). GSL stayed the course during the difficult years in Colombia and the government is grateful for this. - This is a surface mining situation.... i.e., low cost (see web site and feasibility report details)... cash flow is going to be excellent and it is going to kick in "earlie", ah.... er...."early" (lousy pun) due to solid oxide ratio. - The company has plenty of cash and a relatively low amount of stock issued (roughly 50.0 million shares). GSL has also commenced drilling on its other adjacent properties and is getting similar (to slightly better) drill results (see this morning's press release). This could result in a serious increase in the included resource. Art Ditto, a world class mining engineer/geologist (Kinross fame) told me years ago that GSL was probably sitting on an area that would turn out to be a "gold camp". It looks like he was accurate as other players are moving in and getting good results. Witness Ventana, a company that acquired property adjacent to GSL's Agnostura. Ventana has posted excellent drill results and has seen its stock take off on a rocket ride. Many analysts liked GSL and had big target prices on it a year or two ago. Alas, most had their heads handed to them when last year's debacle in the gold sector saw GSL's stock price fall off a cliff (along with most of the other gold juniors). I have heard that a bunch of analysts are heading down for a serious look in the very near term. If they come home happy (and I believe they will, given the situation) we could see "strong buys" issued and solid buying. GSL is no longer an explorer. It is about to become a producer. The explorer/producer transition period has historically proven to be a profitable period for gold stock ownership. It is also listed as being among the "top ten" take-over targets, although I think a takeover is unlikely as the shareholders want to go all the way to production. GSL's stock got to $12. a year ago and was not nearly as strong then as it is now. Currently it is at $3.75. I think it is about to give us another delightful ride. Best, Earlie

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next