TUO update from Mark B
Update:
Here’s what is happening in Teuton Resources.
There are several forces driving the price of TEUTF (TUO.V in Canada) right now and I’ll briefly touch on them.
1. Volume is coming into the stock. Clearly some entities are accumulating Teuton and stock for sale is scarce.
2. Pretium Resources (PXZRF 6.40) (PVG in Canada) was formed by the former CEO of Silver Standard (SSRI). SSRI sold their Snowfield-Brucejack property to Pretium and Silver Standard retains a significant stock position in the new company. Pretium raised in excess of $250 million at $6 per share and their only asset is Snowfield-Brucejack.
If you go to the Teuton Website, www.teuton.com , you can see a presentation on our High property which is abutting the Brucejack. I think Pretium will eventually sell for much more. When you see the Teuton presentation on the High property, you will know why Pretium can be huge. Check out the bonanza grades they reported on several holes last year. Pretium’s Snowfield-Brucejack properties combined host 43,000,000 ounces of gold, 43-101 compliant, and much more will be added to those sums, plus tens of millions of ounces of silver. It should be noted that the anomaly runs north to south, and our High property shares the same border as Pretium’s Brucejack to the south.
3. Treaty Creek litigation: Teuton has sued American Creek Resources, (AMK) claiming that, among other things, AMK is not in compliance as to the amount of money they were required by contract to expend to drill Treaty Creek to earn their percentage interest in our property. If Teuton wins its case, the property could revert back to Teuton in its entirety.
American Creek’s 2009 drill program has already demonstrated Treaty Creek’s promise, as one finding had 241 meters of .8 grams per ton gold, the same as the neighboring Seabridge Gold KSM deposit, with the Ironcap Zone just 800 meters away from our property line.
Unfortunately, American Creek, our drilling partner, ran out of cash and was unable to do any followup drilling last year. In the alternative, the case may settle with Teuton owning more than its current 49 percent. If Teuton gets control of AMK’s portion of TC, we will be back to 100 percent ownership; or perhaps a settlement of the case might also restore the lion’s share of the property to Teuton. This is yet another “story” driving the stock.
I believe that Dino Cremonese, President of Teuton, is planning a followup interview on www.smartstox.com. At that time, we may get the benefit of his 2011 guidance and plans.
I’ve copied Gary Assaly at Teuton, their great investor relations guy; if there are any inaccuracies in what I’ve stated, he’ll let me know and I’ll pass them on. If anyone wants to talk to Gary, his phone number is 800 879-2333. Remember, he’s in Vancouver so there’s a 3 hour time difference.
Conclusion: A lot depends on what happens this year with Pretium and our own High exploration program. Pretium still has not released all of its findings from their 2010 drill program. That news release, if positive, can also be beneficial to Teuton.
The above constitutes my personal opinions and is not investment advice. You need to do your own due diligence. This stock would have to be called “very speculative,” to say the least, so it’s not for everybody.
Mark
