This post is for Robert or Bobby Y. or anyone else following Almaden.
I just received the October issue of Bob Bishop's Gold Mining Stock Report. I liked how he called AMH "pregnant" because of all their high potential propertys and the likelihood that one will hit real soon. He also called it a $10 stock. But I'll let you read it yourself. Here's what he said (dated 9/11/96 per his fax releases):
"Last week Almaden announced an option to purchase agreement for the 40,000 acre Caballo Blanco gold-silver property, near Vera Cruz, Mexico. This property represents a new discovery, with sampling in a road cut yielding assays up to 0.257 oz. gold/ton. This zone has been traced northwest from the highway for about 150 meters. The company reported that the main area of interest is about seven kilometers southwest of the road cut, where 33 samples taken by Almaden averaged .077 oz. gold/ton and 2.1 oz. silver/ton. The company believes that Caballo Blanco has the potential to host large tonnage stockwork and bonanza vein zones, and sampling programs should lead to the development of drill targets for an early '97 drill program.
On other fronts, Almaden had advanced its Erika project, also in Mexico, and an October IP program could lead to a drill program as early as late November. Major companies have visited this property, but at this stage, it would appear that it is in Almaden's interest to drill the property before contemplating a joint-venture. At the La Trinidad project, in joint-venture with Eldorado, the company is on the threshold of its first gold production; elsewhere on the property, Eldorado has developed several new drill targets. Given that companies history of successful reserve expansion at its La Colorada project, I think there's good cause for optimism about exploration success at La Trinidad.
On the market side, I choose to view it as a big plus that several shareholders asked about Almaden in Las Vegas last week. Concentrated doses of investor fatigue, which is how I would characterize at least some of last week's inquiries about Almaden, is almost always a good sign. While some may be tiring of owning Almaden, a 720,000 share block that traded yesterday is a strong sign that the Almaden market is on the verge of looking more lively. Brokers CAnaccord, First Marathon, and Whalen Beliveau took down this block, and I suspect this means that the Almaden story is on the verge of becoming better known.
I've always had a lot of time for Duane Pliquin's geological abilities, and I think it's fair to say that the company's property portfolio is approaching critical mass. With a market capitalization of only about C$25 million, Almaden is cheap and obviously capable of moving much higher. If there's a drawback it is that the stock is highly illiquid at these levels. Almaden will have to trade much higher before it will become a good trader, but yesterday's block trade- and a pregnant portfolio - suggests to me that those with investor fatigue will feel rejuvenated in the months ahead. Given the ease with which AMH could be a $10 bill (and still only C$85 million market cap), I'm not likely to view anything much short of that as an attractive offer for my stock. I, too, get fatigued from time to time, but this isn't one of those times. If your'e tired of owning Almaden, now is the time to summon a second wind. Better days lie ahead.
Almaden is getting an endorsement, not an all-out buy signal, simply because so little stock is for sale at these prices - and thus the shares are especially vulnerable to self-fullfilling prophecy. As I've said before, AMH will have to go higher before it will trade. In my view, yesterday's block treade marks the begining of that process."
I have a lot of respect for Mr. Bishop and believe he's really on to something here. Munro Lake assays due any day now... |
