Assays should be out soon, no?
NP says Goldsource a diamond in the rough coal play
Goldsource Mines Inc (C:GXS) Shares Issued 19,311,681Last Close 10/2/2008 $2.84Friday October 03 2008 - In the News
The National Post reports in its Friday, Oct. 3, edition that Goldsource Mines found coal instead of diamonds last spring in Saskatchewan. The Post's Peter Koven writes the discovery happened at the start of one of the biggest coal booms ever. The company's shares shot from pennies to a high of $19.60. Since then, the stock has plummeted to $2.84. Genuity Capital Markets analyst Michael Gray has picked up coverage of the stock and asks the question on everyone's mind. Will Goldsource deliver a new thermal coal district in Saskatchewan? So far, he estimates the company has potentially documented around 750 million tonnes of thermal coal with a combination of "hits" and "misses" in its drill program. That is still short of the two billion tonnes or more that many investors will want to see, but Mr. Gray notes Goldsource has "clear exploration potential." However, the geology appears to be complex. He put a "buy" rating on Goldsource with a 12-month target price of $9 a share. Some catalysts for the stock include results from its summer drill program, a large winter drill program,\ and an inferred resource estimate that is expected in the second quarter next year, says Mr. Gray. |
