Re: Charts & Comments
in response to
by
posted on
Sep 04, 2010 10:48AM
Saskatchewan's SECRET Gold Mining Development.
Your assumption is incorrect. There is a fund manager who participated in a previous private placement who is clipping coupons, i.e., selling stock for a relatively quick 30% gain and use the proceeds to exercise GBN warrants to maintain his position in the company. The smart money including insiders such as Ron Netolitzky has been using this as a buying opportunity the past two days to increase their holdings. With gold production starting this quarter and positive cash flow to fund future exploration, this is the last chance to buy GBN at this very inexpensive price. GBN is better positioned than say San Gold and look at the market cap investors have given San Gold. GBN's projects will easily double their gold resources within 1-2 years. GBN is a company whose mine life will easily be at least 10 years with average annual production by year 3 over 100,000 ounces. Should GBN find the source for all its high-grade gold deposits, shareholders are likely looking at a 5 million ounce plus company. GBN is a steal at its current market cap of approximately $65 million, which is the value of its mill and equipment. You are essentially getting its current gold resources, its blue sky potential and arguably one of the world's greatest geologists with a proven track record of building shareholder wealth in Ron Netolitzky and his management team, for free. It is very easy to sleep at night owning a large position in GBN in a long term bull market for the real price of gold. Should gold reach $1400-$1500 by the end of 2011 as people such as Sprott, Faber, Institutional Advisors and others believe, GBN is easily a ten bagger from its current price.