Newstrike Billion dollar deposit?
James West today on Gold report (Nes)
For speculative strategies, I like the junior gold and silver explorers: Colossus Minerals Inc. (TSX:CSI) and Lago Dourado Minerals Ltd. (TSX.V:LDM) in Brazil, Continental Gold Ltd. (TSX:CNL), Waymar Resources Ltd. (TSX.V:WYM), CuOro Resources (TSX.V:CUA) and Seafield Resources Ltd. (TSX.V:SFF) in Colombia, Golden Reign Resources Ltd. (TSX.V:GRR) and Corazon Gold Corp. (TSX.V:CGW) in Nicaragua, Prodigy Gold Incorporated (TSX.V:PDG) in Ontario and Newstrike Capital Inc. (TSX.V:NES) in Mexico. The latter just announced an incredible 230 meter intercept at 7+ g/t gold.
The cool thing about the juniors is that the mainstream market is nowhere near this space right now. Case in point: when Newstrike came out with that hole, the stock blasted up to $2.30, which is an 87% increase from where we initiated coverage in January of this year, and the investment world is out to lunch. Here we’ve got a deposit that is shaping up to look like a $1 billion gold deposit, and the mainstream investment community is so utterly out to lunch, they don’t see it.
The last time a company drilled a hole like this was Ventana, and that stock is now over $13. That was a 1,200% winner for Midas Letter subscribers, and I’m willing to bet the farm that Newstrike Capital is going to head in the same direction. If the next set of holes they release emulates these results, look out.
