Below is another example of an early explorer, trading at 60 cents, with all the hype of a letter writer who has credibility, and saying that anything under $1 is a good buy!. These guys have 1.20 gms/ton in the ground that has to be dug out for hundreds of millions…and has to prove up many more intercepts….and is called a “home run”!

Everyone is going nuts about it as it “could” be anther Ventana…you know the one Eike Batista of EBX is after and that Ventana shareholders just announced they may not be happy with the Batista offer.

My goodness, compare this to SFMI with all that rich ore just waiting to be milled that is multiples richer than this one’s one big drill hole to date…not to mention War Eagle. One has to stand back in absolute amazement. If the XXXX stock below is a buy at under $1, with years to go and hundreds of millions to be spent….SFMI should be trading at $5…especially on the forthcoming news…even if the SFMI grades are “only” 9 gms/ton as mentioned in the article… as if that were bonanza grade! Mind boggling!

XXXX Letter Asks: Is XXXX Resources The Next Ventana Gold?

By James West
MidasLetter.com
December 3, 2010
XXX Resources Ltd. announced on Thursday a stunning drill hole result: 449 metres grading 1.29 grams per tonne of gold. With this intercept, which included a 23.95 metre segment grading 9.18 gram per tonne gold, there is absolutely no doubt that the MMMM deposit is going to be a home run.
The stock traded just under 47 million shares on Friday, and gained 117% to close at
.50. Midas Letter subscribers were alerted pre-market at
.23, so are quite happy.
When the market opens Monday, any shares you can get under a dollar will likely be ten-bagger potential, as with a few more drills holes like this one, and you’ve got Ventana 2 on your hands. (Ventana is currently the subject of a buyout offer by Brazil’s EBX Gruoup for $1.5 Billion.)
…
“On April 20, 2010, XXXX announced it had finalized an option agreement with the As (“AMM”) to acquire 100% interest in the MMMM property …

AMM currently operates a small underground mine at MMMM that produces about eight tonnes per day.
The option agreement calls for cash payments of US$1,500,000 in five payments over two years and a final option payment of US$1,500,000 within 30 months of the initial signing date. In return for GGGG facilitating the option, XXXX issued to GGGG 2,000,000 common shares of XXXX (issued and valued at $380,000) and paid US$100,000. If XXXX elects to continue with the option after the first anniversary of signing the agreement, it will issue a further 1,000,000 common shares of XXXX and pay GGGG a further US$125,000.”
Not a bad deal at all for XXXX.
This drill result comes from the 12 –hole 3,800 meter drill program that began in June and wound up at the end of October, so there could be some more spectacular intersections coming out. Not that such a fantastic hole needs to be immediately followed up with another grand slam.
The MMMM deposit occurs within a hydrothermal breccia body and is roughly circular in shape,
measuring some 280 metres by 250 metres in outcrop. It has been traced by drilling for over 600 metres in vertical extent and remains open at depth. During the period 2005-2007, AngloGold Ashanti Limited and B2Gold Corp. completed the diamond drilling and underground sampling and were successful in delineating the significant low-grade large-tonnage Au-Ag deposit which forms the current inferred resource and is potentially amenable to bulk-tonnage mining and mineral extraction techniques.
You can count on substantial and ferocious demand for these shares. But with such a big intercept, there’s no doubt there is more where that came from.
Shares Outstanding: 98,699,092
Warrants & Options: 47,972,177
Fully Diluted: 146,671,269