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

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To: BSGrinder who wrote (65789)	6/20/2009 10:36:04 AM
From: Earlie	1 Recommendation Read Replies (2) of 78410

Hi BSGrinder: This territory has produced gold for hundreds of years. That said, the gold-bearing ore found in the area is very diverse. Indeed, both Greystar and Ventana have found rich intercepts but the overall grades are "solid" rather than say "barnburner". Greystar's advantages include: - its Angostura deposit is large, "proven" and mineable via open pit. - the strip ratio appears to be excellent. - production costs will be quite low - it has decent oxide-to-sulfide ratios, which equates with the ability to get into production quickly. This area is just beginning to turn into a "gold camp" so it is going to produce some exciting exploration plays. That said, I think the key to long term success in this area will relate more to acquiring land or mineral rights where the topography will allow you to commercially mine, than to just finding gold (use Google Earth to have a look... it is rugged territory). Greystar got in very early, which allowed it to both build up an understanding of the area's geology, as well as pick off land where mining is possible. It's Angostura property is now fully proven and holds 15.0 million ounces (one of the largest unexploited gold deposits in the world). The released (phase one) feasibility study is positive and The World Bank has invested heavily and will anchor the required large loans to build out the required mill and mine. A strategic consideration for me is that Greystar is miles ahead of the pack and approaching production. Once it gets into production it will dominate the area as it will have the expensive production infrastructure in place. For any companies in the area that do find and prove out serious deposits (and I think there will be several that do), it will make economic sense to have Greystar process their ore rather than attempt to raise the hundreds of millions of dollars required to build the required production facilities. Greystar also has large land holdings in the area so it has plenty of room for further exploration. The current stock price appears a bargain to me (and it has already treated me well in the past). Best, Earlie

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