Here's another one from Stockhouse online journal...
Time for another update on one of SGV's companies, KWG Resources, which SGV holds 26% interest in...
As I indicated in my earlier posting, KWG was expected to issue a news release late May on the Dominican Republic (DR) JV with Falconbridge (49% KWG, 51% FB). Well, we have the release and it can be seen here. As you know, news releases are written in a manner such that it does not appear to hype the stock.
What the release does not say is as follows, and of course some is speculative at this point:
What's of special note is that this prospect has all the geological earmark of the nearby world-class 32 million ounce Roserin/Pueblo Viejo gold mine. If Falconbridge drilling program should confirm the similarity to the Pueblo mine -one of the largest in Latin America- this could blow the roof off KWG's stock in short order. Also to note, the geophysical anomaly may be 3 times larger than Gasper anomaly in Cuba. Stay tuned on this, we are not done yet.
Here is sort of bad luck for KWG. It appears from the last 3 news releases that KWG has a timing problem when it comes to releasing excellent news. A while ago KWG come out with an excellent release which should have moved the stock $2 to $3, but it was released on the same day as the Bre-X fiasco broke out. The stock gained only $1. A couple of weeks later, another excellent release on the same day that gold dropped $4.50. Again, the stock didn't react and remained neutral. This latest release came out on a Friday, a day you are not expected to release good stuff, not to mention that the US market is closed on Monday. In the case of the DR project, Falconbridhe is the project operator and therefore controls the timing of news releases. Let's hope future releases are better timed.
The Source... I'll be back!!! |
