Gold Fever
Gold has broken out with all indications, both technical and fundamental pointing to higher levels. Senior and intermediate gold stocks have shown price appreciation, but juniors are lagging. This situation will not last for very long.
Juniors with properties of merit which are strategically located at or near discoveries and have plans for exploration this season will appreciate to a greater degree than producers. Case in point is the GOLDEN TRIANGLE located in northwestern British Columbia. Seabridge Gold’s (SEA) KSM discovery and Silver Standard’s (SSO) Snowfield discovery currently host the world’s largest undeveloped gold resource with 70 million oz. TEUTON RESOURCES (TUO) TREATY CREEK PROPERTY borders both SEA & SSO to the north. To the south TUO’s HIGH property borders SSO’s recent Brucejack discovery on which SSO will spend $10 million this season. TUO has plans for an extensive program on the HIGH property. In addition to this,TUO has extensive holdings next to IMPERIAL METALS (III) RED CHRIS discovery. Of all of the companies with holdings in RED CHRIS,TUO is the company which is closest (3km) in proximity to the III discovery. IMPERIAL METALS plans to spend approximately $27 million this season.
Other properties of merit to be worked on this season are: Clone, Fiji and Tennyson. TUO stock which currently trades in the mid $0.40 – $0.50 range is undervalued when taking into account the low float, property portfolio, proximity to recent discoveries and the continuing price appreciation in gold. It should be noted that total expenditures in the GOLDEN TRIANGLE AND RED CHRIS regions will exceed $85 million this year. TUO stock should experience above average appreciation over the next 3-6 months based on the above and should be purchased at current levels for aggressive accounts. For further information, please call Gary M. Assaly, Investor Relations at 1-800-879-2333.
