The next great gold junior?

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#1 Tue, Jun 14, 2011 - 8:41pm
Joined: Jun 14, 2011

The next great gold junior?

I've been investing in precious metal mining shares for eight years now. I've had some disasters (copper-golds in 2008) and some great winners. The best of the golds was a ten bagger, Virginia Gold. I nearly ten-bagged on Aurelian but was too late for the nicest gains.

If you think you've come across the next ten-bagger, don't be shy now. Flush it down the u-bend of Turd's Toilet and see if it floats....

Edited by: silvernomics on Nov 8, 2014 - 5:20am
Wed, Jun 15, 2011 - 1:15pm
Joined: Jun 15, 2011

Decent gold explorer transforming into producer

I have no idea whether it will be a next great gold junior but it certainly has a lot of potential. GGN (Gryphon Gold Corporation

The company is located in Nevada with deposit over 2 million oz of gold and possibility to expand it much further. The Borealis project is located in Walker Lane trend, which is not as prolific as Carlin trend but nonetheless still in Nevada. What is important for me is really inexpensive valuation and production start in near term. Currently it has 194 million shares and the sp is about 0.16 Canadian dollars which gives it a market cap of 31 million Canadian dollars. Considering they have around 10 million in cash which is enough to restart heap leach production. I did put a link to their latest presentation.

There is a possibility of increasing resources and production further down the line but for the first 2 years they plan to produce 40 000 oz/year at a cash cost of 476 $/oz (47 000 oz in year 1). They are going to switch to lower grade deposit after 2 years and their cash cost will rise to 822 $/oz but I expect/hope by this time their exploration campaign would generate some results. Anyway producing 47 000 oz at cash costs of 476 $/oz should generate in excess of (1520-475) x 47000=49.1 million revenue from which 5 % royalty needs to be paid. Most of the profits from first year are to be used to fund the rest of infrastructure needed to commence full production which is expected around Feb 2012. For me it is a no brainer when potential revenue of the company generated in less than a year from now can exceed current market cap. Whether it will generate these profits and whether mining plan will be implemented as it is planned involves risk and careful analysis. What is comforting for me is that CEO is a miner and an open pit mining is relatively more straightforward than underground.

Disclosure: Obviously I do owe shares in this GGN and some other precious metals companies so please DYOR. Anyone interested should have a look at their presentation.

Wed, Jun 15, 2011 - 4:48pm Prem124
Tampa, FL
Joined: Jun 15, 2011

I like them too.   Looks

I like them too. Looks ready to move higher.

I own QNMNF of which AEM has bought %16 of last year. Right next to one of AEM's best mines

Thu, Jun 16, 2011 - 8:45pm
Big Rocks
Socal, CA
Joined: Jun 16, 2011

Smashing Baby!

from $20m MC to $200m? can do!

Metal Augmentor: Smashing, Baby!29-Apr-11 05:59 pm

Smashing, Baby!

April 26th, 2011 David Zurbuchen

To those who follow the Yukon mining scene, it’s old news that Smash Minerals (TSX-V: SSH, Stock Forum) began trading on April 4th after an IPO raised $6.4 million at 80 cents. Unfortunately for us, the deal wasn’t available to participants from the United States. Unfortunately for the non-Americans among you, we haven’t set up the required details to discuss special situations like this in a semi-open forum such as Metal Augmentor. In any case, the IPO was heavily oversubscribed so participation would have been difficult regardless.

Be that as it may, we couldn’t resist the opportunity to pick up a few shares on the first trading day in the low 90 cent range as the brokers flipped a portion of their position to create the initial public float. That first day’s trading volume remains by far the highest in the company’s short trading history, but the situation is deceptive: any aggressive attempt to pick up more than a few thousand shares would probably have caused all the “asks” to be taken out with the result being an extreme trading range on the opening day. As it happened, the trading was quite orderly not only on that first day but during the past 3 weeks as well. Despite the orderliness, it remains the case that the shares are extremely illiquid and therefore undisciplined buying will likely result in paying way too much. Therefore the situation is still not very ripe for the buying and we only bring it up now in case the shares catch a draft as the Yukon exploration season gets under way.

Let’s be realistic: it’s probably unlikely that Smash will trade anywhere near the 80 cent IPO price in the short term — even during a summer pullback and perhaps even during significant weakness in the gold price. So it is probably unreasonable to hold out for a true bargain here. Rather, a practical goal might be to initiate a position near the $1 level with more buying to follow if the price remains near or below the initial trade. If given the opportunity, we personally would be quite willing to buy more below the $1 level. In the intermediate term, an uneventful first season of exploration may yet provide the opportunity to increase position size at a price even below the IPO. It certainly wouldn’t be a surprise or the first time it happened.

The Basics

Smash Minerals is run by Adrian Fleming of Underworld Resources fame who seeks to make a similar discovery in the same White Gold district where Kinross Gold made its “impetuous” buyout of the Golden Saddle deposit (impetuous because it can so early after the discovery). With just over C$6 million raised from the IPO, Smash’s enterprise value works out to about C$14 million. Considering the valuations afforded to many Yukon plays (a number of which will not even drill this year), this is quite reasonable for what basically amounts to a virgin exploration play.

That said, Smash has something that virtually none of the others have — a head honcho who has actually discovered a gold deposit of merit in the very same district where he is now set to explore again. We don’t want to get carried away at this point, but with a little luck Smash could become absolutely “shagadelic”. The catch is that it is going to take a couple of years — perhaps three in the worst case — of exhaustive exploration to determine if Smash’s ground does in fact contain a gold deposit. Therefore anyone buying at this early stage should be prepared to wait it out in order to get the biggest potential reward– we certainly are. Of course there’s always the potential for an interim spike where profit taking might be in order but we are highly inclined to see this one through to discovery or bust. As you might already know, we don’t often get involved with early-stage story stocks — but if we are going to do it then it shall be bold and right.


Please visit to read the full article.
Fri, Jun 17, 2011 - 9:41am Big Rocks
Joined: Jun 15, 2011

Big Rocks, I am in agreement

Big Rocks, I am in agreement with you on this stock. Here is an interview with Jay Taylor and I think what is significant is that they are using some new drilling technology that will allow them get instant assay results so that they can fine tune the locations before sending them to the official assayist for their official results, so I get from the interview that their news flow will be quicker to market than the other companies drilling in the Yukon.

Fri, Jun 17, 2011 - 11:15am
Joined: Jun 14, 2011

Siga Resources

I do not know much about these guys, but received this news in my morning work email update. Something to check out.

Top Three Links You Must Click On
From the Wires Siga Resources Inc Signs Letter of Intent to Acquire Big Bear Gold Mining Claims in San Bernardino County, California By: Marketwire . Jun. 16, 2011 06:01 AM

SOUTH LAKE TAHOE, CA -- (Marketwire) -- 06/16/11 -- Siga Resources Inc (OTCBB: SGAE) President and CEO Edwin Morrow announced today that Siga Resources Inc has signed a Letter of Intent with Montana Mining Corporation of Blaine, Washington to acquire 100% interest in the Big Bear gold mining property near Lucerne Valley, San Bernardino County, California.

Siga has agreed, subject to satisfactory due diligence, to deliver 11 million shares of Siga common stock as consideration for the acquisition.

Located on the Northern edge of the San Bernardino Mountains, the project is known as the Silver Reef/Blackhawk Landslide. The area of interest is a massive landslide that came down Blackhawk canyon at two separate times approximately 17,000 years ago. The landslide entrained a significant amount of a vein mineralized zone in metamorphic and carbonate host rocks, and exposed mineralization under the area it occupied. The surface exposure became the Blackhawk Mining District in the late 1800s, and produced a few tens of thousands of tons of ores reported to run in the .1 to .9 oz/ton gold range.

The carbonate host rocks that slid off the mountain contain naturally crushed vein mineralized rock which has been a target for gold exploration occasionally throughout the last three decades. In the late 1970s, an exploration program of 61 drill holes, hundreds of feet of bulldozer trench sampling and extensive geochem surface sampling was done. This program showed a broad area of gold mineralization contained in the landslide which was estimated to contain up to 80 million tons of mineralized material at gold grades averaging .03 oz/ton, and silver grades averaging .25 oz/ton. Gold grades of the late 1970s (approx $350/oz gold and $15/oz silver) did not make the project economically viable at the time. However, the current gold and silver prices, at $1,500/oz gold and Silver in the mid $30s/oz, cast the economics in a very favorable light.

During the due diligence period, Siga will evaluate the economic and metallurgical qualities of the landslide material as well as the regulatory conditions. If ore grades can be established to carry over normal mining widths, a 5,000 ton per day surface operation could produce 30,000 to 50,000 oz of gold and 300,000 oz of silver annually.

About Siga Resources Inc

Siga Resources Inc, founded in 2007, is based in South Lake Tahoe, California. Siga is a mineral resource exploration and development company. Siga's strategy targets properties that have the potential for near term production and early positive cash flow. Siga's general geographical interest is North and South America.

Forward-Looking Statements

You should not place undue reliance on forward-looking statements in this press release. This press release contains forward-looking statements that involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends," and similar expressions are used to identify these forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks we face as described in this press release.

Siga Resources Inc
Edwin Morrow
President and Director
Email: Email Contact
1-530 577-4141 (Phone)
530 548-7369 (FAX)
On the web at:

Published Jun. 16, 2011— Reads 127
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Thu, Jul 7, 2011 - 1:11pm
Joined: Jul 7, 2011

You guys that are looking for

You guys that are looking for the next 10-bagger are missing the boat if you don't own a mitt full of warrants associated with the juniors.

I'm sure you have some questions: What are warrants? Which miners have warrants? How do I go about buying them?

I have written many articles on the subject (I seem to be the only one doing so) over the past 7/8 years and have developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:

1. The “Secret” World of Gold & Silver Company Warrants

2. Gold & Silver Warrants Index (GSWI) Update

3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!)