today a couple of gold juniors reported news, and their stocks went nowhere.

tyhee (tdc) reported that their resource estimate increased by 431,000 oz. of gold, and the stock is down 3 cents. it's in a safe jurisdiction, and the gold grades about 3 1/2 grams/ton, there is plenty of blue sky, they are continuing to drill, and yet the stock is dirt cheap. it seems eveyone is waiting for them to hit an aurelian-type hole to bid the price up.

then there is skygold (skv) reporting its first resource estimate for spanish mountain, which is actually in british columbia. the main zone now contains 1.75 million oz. gold if you use a cut-off grade of 0.5g/ton. lower the cut-off grade to 0.3 g/ton and the total jumps to 2.95 million oz. i don't think 0.3 g/ton is economic even for an open pit mine, but the point is that there is plenty of gold there, and higher prices will bring it out. this also does not count the fact that the company has already found more gold expanding the main zone, which wasn't included in the resource estimate. this will be a low-grade, bulk tonnage operation, but it is still open in all directions, so i have no doubt the resource will continue to grow. the stock was up a penny today.

now compare those two, which have a lot of work to do just finding an economic ore deposit, never mind the financing to develop it, and all the problems with building a mine, with sso which already has all of its ducks in a row. those penny stocks have a lot of upside potential if everything works out, but sso is a lot safer, especially when it only sells around $30.