Teuton Update from Mark B
Here is an excellent update from guest contributor Mark B
We continue to hold TUO and it is one of our largest core positions
We will add as cash is available with a BUY rating
we have no target as TUO could easily go to extraordinary highs as they are, as Mark says, in elephant country
Update:
Teuton closed today at .63 CAD up .09, not bad for a stock that was languishing at .27 in January. Congrats to those already on board.
Developments:
Speculation on my part, but most people close to the company feel that our lawsuit against American Creek is strong. The upshot is we could either get the entire Treaty Creek property back (100%) or settle with American Creek on terms favorable to Teuton, e.g., Teuton 75% AMK 25%. Allegation by Teuton: American Creek, in order to earn 51%, needed to spend X millions on drilling and spent a lesser amount. Worst case outcome, property remains status quo.
Pretium and Seabridge, neighboring companies with large gold reserves, are seeing their share prices surge. Pretium (PXZRF) was effectively spun off at $6 per share in late December; got over $10 before backing off due to profit taking. This area, once believed too remote to be mined, has so much gold in the ground that a large mining company would make a fortune building a mine and the (in Seabridge’s case) $3.5 billion to move mountains, build roads, etc., is chump change, considering the KSM planned mines would have a 37 year mine life with 10 billion pounds of copper and more than 40 million ounces of gold, with more being discovered each year. These are the types of deposits in and around our properties.
Teuton’s Treaty Creek property is on trend to the Seabridge Ironcap zone of KSM and Teuton’s High property is a stone’s throw from Pretium’s Brucejack drills, including the Galena high grade gold where bonanza grades (kilos per ton vs. grams per ton) were discovered last year. Pretium plans to drill lots o’ holes looking for more of the high grade stuff.
So as interest in the area heats up, Teuton could be sitting on a gold mine of its own…who knows? That’s the speculation. But we have 300,000 acres in elephant country and the betting is the gold is there.
This email is just to bring folks who may not follow the company closely somewhat up to speed. There are a lot more facets to the company, but this is just an attempt to explain the surge in interest.
Volume has been going through the roof. In 2008, there were WEEKS when I was the only buyer; and if I wanted to sell, I guess I’d have had to buy it from myself! What a relief to see that others are seeing what I saw in the dog days of the stock market.
GLTA …. do your own due diligence, but if you have any questions, I advise you to call Teuton’s IR man, Gary Assaly (who I’m copying to make sure there are not mistakes) at 800 879-2333. Remember that Vancouver is a 3 hour time difference.
Mark
