Doug Casey is still maintaining his recommendations on GRM and Columbia. Here is an excerpt from his February Issue.
I expect to be in Columbia as you read this to size up the properties of Sur American Mining (SUR.C, C$2.25) (Alberta Exchange), but feel confident making this recommendation now. In essence they've acquired 23 projects in Columbia over the last two years, most of which appear to have major potential. Their initial concentration has been on four properties in the Marmato trend, which I've discussed in the past in conjunction with Gran Columbia (GRM.T, $C1.80). The commonly held opinion of most geological professionals is the Marmato mountain alone probably contains over 100 million ounces. Which means I was quite correct saying in December 1995 that Gran Colombia had the potential to be the next Bre-X. In the company's case, however, management has been a problem. And for both them and Conquistador (CQL.V, C$6.65) Colombia itself has been a problem.
I believe the aggressive program of Sur American will offer results that will turn the region into a flavor of the month, running the stocks of the other two companies as well. The published press releases of Sur American describe surface and tunnel sampling over wide areas with high grades. I bought some shares when the stock started trading recently, but anticipate building a big portion. With 20 million shares out, the market cap is reasoable, for what I expect to find is multi-million ounce potential in each of several separate deposits. My expectation is a price over C$5 by summer.
Interesting to note that SUR was trading in the $3.65 range (C$2.25 at time of new letter issue) just two days before the Bre-X collapse. It is now trading in the $2.30 range. A Bargain. Furthermore, GRM is trading in the $1 range. Very Very Cheap. I don't see how you could possible get hurt at that level. I feel sorry for those that saw their paper profits vanish before their eyes, but I beleive that we can thank Bre-X for some wonderful bargains in the Juniors. |
