Zeev, Have a safe and prosperous trip.
A little something for you to ponder.
Barry Downs, Sr. V.P. of Investments as LEGG MASON, perhaps the only
one to visit all the "DIRTS", and twenty-five years is the Mining
Sector, a gentleman that I had the pleasure to talk with last week
about the "DIRTS" has mailed his Rec'd to his clients as of the 24th
of Feb., and has given GPGI permission to reprint.
While this thesis/rec'd is five pages and his main point is that,
" I believe sufficient evidence exists to conclude that a "Desert
Sands" ie: gold, platinum, and PGM industry will emerge and the breakthrough may happen sometime later this year.", and diversity is
important. I will eliminate company info and get to his rec'd.
L.S. Capitol Corp
Rec'd-Testing of the pilot plant recovery is about to begin and management's intention is to prove the high grade (1 ounce per ton +)
deposit and then bring in a senior joint venture partner with the
financing to begin commercial production. I believe L.S. is a speculative BUY at this time.
NAXOS
Ledoux Labs has verified the recovery of gold and will continue working with the company to perfect the recovery process. I believe the stock is a speculative BUY but expect some volatility until after
the Alberta Exchange hearing has been concluded and the stock moves up
to be listed on the Bulletin Board. Allen & Co. is reportedly considering a financing arrangement to bring Franklin Lake into production and if Allen & Co. does in fact come on board, the stock should respond favorably.
MAXAM
Maxam is a clean start up operation with very competent and honest people running the company. I believe the stock is a good speculative BUY on the expectation of near term production. Given Maxam's stated gold in the ground and valuing it at only $100 per ounce, the stock has a target of $9.90 per share.
GPGI
Global is another "Desert Sands" operation with a proprietary catalyst to recover precious metals. If we are super conservative and reduce
the stated estimated value of precious metals two-thirds the stock still should be valued at an impressive $100.oo per share. Verification of precious metals by an internationally known assay lab should bring in the necessary financing and a move in the share price. I believe the shares represent a speculative BUY for investors looking for upside potential.
USPS
US Power is ridiculously cheap based on the information I recieved but
should only be bought by the speculator who can afford to lose his
investment.
IPMCF
Unless something suddenly goes wrong, IPM seems destined for production this year. BRX's size is now 26 square miles and ore reserves could reach hundreds of millions of tons.
I believe the shares are a speculative BUY based on the fundamentals. I do however have to add a caveat: Years ago I had a unfortunate experience with a member of IPM's management involving an Australian gold exploration co. The company went out of business and the stock became worthless. I have yet to recieve a satisfactory explanation directly from the individual as to what actually happened. Hopefully the individual will step forward to clear the air with me.
Jim |
