Dear Readers,



Zenyatta Ventures, which for new subscribers, has been our top stock pick for the past year, today is invalidating the breakdown below the 50 DMA that occurred yesterday. If the stock indeed closes above $3.69 today or tomorrow, the technical breach will have been successfully reversed. I believe the news today: http://online.wsj.com/article/PR-CO-20130829-908998.html , although not well detailed, has significant and meaningful undertones.

"Eveleigh further stated "Both pipes continue to demonstrate the exceptional continuity and size potential of the graphite deposit, and the outline of each pipe correlates well with the shape of the conductivity anomalies defined by the ground EM survey. The current drill campaign is designed to allow for a NI 43-101 compliant resource estimate by RPA (formerly Roscoe Postle & Associates Inc.) for both the East and West pipes. Drilling is on schedule for a NI 43-101 statement in early 4Q/13."

This indicates as I suspect what we'll see unequivocally validated in September.....the West pipe is the same high purity hydrothermal graphite as the East pipe. We need to see assays for validation but I'm quite confident we won't be negatively surprised. The fact is the West pipe anomaly is over 3 times the size of the East and drilling from the East has taken the stock to $5 and up 2,500% since last August. What will confirmation of the West pipe drill results do to the stock? I guess we'll see....but I think the effect will be significant.

This imminent news coupled with university lab results confirming that the end product Zenyatta will sell into the marketplace will be effective for the highest ends of the market (nuclear etc), could cause a Super Spike in the share price. But, if those 2 things don't do it, we have a 43-101 technical report due in October that is critical to the institutional investment community's participation. I believe there are potentially many institutions awaiting this report to justify buying shares in Zenyatta. Institutions take stocks from $4 to $10 not retail investors.

I have done much work on the Net Asset Value of the Albany graphite deposit, much of which was relayed in the special report I published in February. I feel like it is almost obvious at this juncture that the numbers I came up with will be dwarfed in terms of tonnage in the ground. The fact remains that many people doubt Zenyatta at this point and have a 'doubting Thomas' attitude until they see the 43-101 released. Not only is there doubt but also disdain because most people missed this opportunity from the ground floor, unlike us.

I do not by any stretch of the imagination believe ZEN is overvalued at a $200M market cap. In fact, I think we should be trading at closer to a $500MM market cap, particularly once the 3 items outlined above are on the table. If the 3 things outlined above indeed prove themselves all to be affirmative/positive, many large investors and potential buyers of the company will have a light bulb moment.....that Zenyatta (or whomever takes the deposit into production) could CASH FLOW between $250,000,000 to $750,000,000 per year.

A 10X multiple on the low end of that is a market value over 10 fold today's stock price. We are 45-60 days away from crystal clear evidence of what we have or don't have here. If you are a conservative/skittish investor who is sitting on significant gains in the stock, you may want to take your chips and go home. For those of us who can handle the risk, I'm sticking around for what should be a very exciting next few weeks/months.

New subscribers have an opportunity to get involved right now in our top stock pick (ZEN.V/ZENYF on US exchange)...there are many of you. You can read the evidence of our participation as the only newsletter writer covering Zenyatta since last spring here: http://www.goldinvestmentletter.com/blog/. I feel confident that traders can still buy shares under $4 and make nice money into the anticipated news flow in September/October. A retest of $5 is a nice 30% trade from here and an ultimate move to our $10 long term price target is 150%.


Enjoy your long holiday weekend those of you in the United States!



Best,




Eric Muschinski