Goombarh 50 - April 11th, 2011
Good morning,
All is well with Great Basin Gold (GBG), though the market does not appreciate this emerging mid-tier producer. News this morning:
More exploration finds at Hollister with high grade extensions off their existing gold veins and surface exploration startup. This I believe will be the key to unlock the future potential of GBG. It is possible to find another deposit similar to Hollister at their claims! At Burnstone the ramp up is on-going, and they are finding more Gold in the Kimberly layered sediments that is the reef. The thickness is greater than expected and the grades are higher than expected. However, as the mine is in South Africa, the market will just ignore this, and will wait for the expected Gold output information before re-rating the share price, this fall. Great Basin is just a great bargain at this price level!
As stated in the Silver article sent out yesterday, I believe Silvermex (GGCRF, TSX: SLX)is a great bargain at this price level also!
Those are two, underestimated strong precious metal stocks, while Gold and Silver prices are pursuing higher prices. One can do no better that these two for a relatively safe, yet prospective stock. I would not be concerned about the ups and downs, as multiples are in store for these two.
Further thoughts for readers, I do understand that there is a varied background out there. On the one hand, I advocate paying attention daily, as I try to do, yet on the other, I say the buy and hold is dead. Many readers would not have the time available to perform daily monitoring of your positions, nor would you wish to, as there are other things to do in life. Do not try to emulate, the jumping in and out of stock positions, as I seem to be doing recently. For a longer term hold, meaning over 1 year, the above two stocks cannot be beat in my opinion. Their strong management coupled with their prospective mining properties are an ideal mix for the rising environment for equities, precious metals rising and demand growth stemming from the emerging markets middle classes.
Enough said, and now I am looking for more risky and volatile situations for myself and other traders. As disclosed previously, I have positions in:
· Pacific Wildcat Resources (PWCRF, TSX: PAW) - Rare Earths in Kenya Africa.
· Ethiopian Postash (TSX:FED) - KCL in Danakil basin in Ethiopia.
· Compliance Energy (CPYCF, TSX:CED) - Coal in BC Canada.
· Shore Gold (SGHDF, TSX:SGF) - diamonds in Saskatchewan, Canada.
· Anvel Gold (ANVZF, TSX:AVK) - gold miner in Mali, Africa
Until next time,
Marco G.
http://goombarhsedge.blogspot.com/
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