GOLD >>> WOW WOW WOW!!!

aRTICLE ON jUNIOUR cOMPANies being bought up.

in goldseek.com

Wouldnt it be nice if Ole qualifies……

Goldcorp’s $238 million acquisition of gold junior Canplats last week is a reminder of the next phase of the gold price boom in which the largest gold companies will buy out the minnows of the industry.

Big Gold needs to replenish its reserves in an era of declining global gold output and rising prices. Leaving these acquisitions much longer will mean that the best targets have gone, and the cost of the remainder will be that much higher.

Bargain takeover

Canplats shows that cheap gold is still available in the junior mining sector. Goldcorp got a bargain apparently with 1.7 million ounces of gold reserves bought for an average price of $133 an ounce.

Of course it is better than that because as a publicly quoted group Goldcorp is more highly valued than a small company, so the reserves are actually revalued by a factor of five in the takeover.

So the next gold rush is not gong to be guys heading to California with picks and shovels but investment bankers running their slide-rules over the junior mining sector. Buy these stocks now and you ought to become very rich!

The obvious plumbs are those with under-priced reserves that can be revalued. But there are also many junior explorers sitting on gold claims that have far greater potential value to Big Gold. These assets can also be revalued in a takeover but also hold the potential for new gold discoveries at a time of surging gold prices.

Gold claims

In fact in previous gold price booms the biggest surge in share prices has always been among the gold exploration stocks, the juniors that own these gold claims.

Surely the investment bankers looking at what gold companies ought to be buying will soon come across this not so generally appreciated fact and begin to make some interesting recommendations among the junior gold explorers.

There is even a new ETF for junior gold companies, GDXJ, but the best buys will be the individual stock picks, although a rising tide will carry all ships higher.

— Posted Monday, 23 November 2009 | Digg This Article | Source: GoldSeek.com

Previous Articles by Peter Cooper

All the restatement was, was the company conforming to the regulations. There has been no study of the feasibility of getting the gold identified by the latest drill results out of the ground, therefore the company isn’t allowed to classify them as they did. They had to roll back the “official” numbers, that’s all. That’s what I read in the announcements. The gold’s still there, it just needed to be put in the right bucket.

I repeat my opinion , that more and BETTER NRs re gold assay results should do wonders for the currently ridiculously low Ole shareprice…

What are your “thouights” re when is “early DEC.” for next NR…….Friday ,12/4 or sometime week of 12/7 to 12/11 ?? or even later ?? Ole mgmt has not exactly been timely heretofore…I believe they will not be late this time and will guess week of 12/7…..What say you??? ….We really need an excellent/spectacular one to get this shareprice moving in the right direction–NORTH !!!……..If it turns out so , I will probably hang on , but if not , I am out of here…I am just totally frustrated with their lackluster performance..Will take my “lumps” and move on….

RE: Great article………Fools is the toilet paper still sound?dsh……The US has run the largest deficit trade balance for decades and Asian manufacturers received US dollars for the goods. Prior to the 70s, deficits could not be run on that scale. When the dollar was no longer tied to gold, the deficits exploded. The US got goods. Asia got US paper dollars….dsh