John Embry on SWG:
<One that isn’t anywhere close to production but is probably one of the most exciting plays in the world is called Southwestern Resources (SWG.TO). The company is earning a 90% interest in the Boca Project in southwest China near Kunming, a city of about 4 million people. I just returned from China where I actually observed the potential ore body. The company, headquartered in Vancouver, is run by a couple of really smart geologists who have been putting together properties from all over the world for a number of years. They generally use other people’s money to explore. This one was so exciting they are spending their own money because they want to retain the maximum exposure possible. Chinese operators already put in 133 tunnels, and these tunnels are just crawling with gold. The Chinese have a small mining operation going on and it confirms the richness of the ore. They have been drilling into the mountain and at this point, just based on what they have found already, they probably have 10 million ounces. So this is just one of the potential home runs. The price has moved up a lot - from $3 to $14, but the $14 reflects what they have already found and it is open all over the place. Again China tends to be discounted, because people are a little concerned about China, but I don’t think they should be. I think since China got into the World Trade Organization, they are taking in enormous amounts of foreign capital, and I don’t think they will start not respecting property rights. It is cheap to operate over there, obviously. I think it is a really exciting story.>
kitco.com
Sounds good to me |
