I have put together a sort of slide presentation to show what I saw on my visit. Click on the photos for larger pictures.
But first, a little history.
Bill Henderson, President and CEO of Nevada Sunrise contacted me last June about doing some advertising for them. They have had a banner on our site ever since and I have done a couple of articles about them. He invited me on a tour of the 20 Nevada Sunrise properties in mid-August. Let me tell you, when you are touring 20 different properties, it soon gets to the "if it's Tuesday, it must be Battle Mountain Day."
In any case, Bill invited me out to tour Nevada and tour we did. It's a big state, a very very big state. I can drive from Miami to Jax in 6 hours and to Pensacola in 10 without speeding all that much. In Nevada there are places it's six hours between gas stations. But best of all are the trailers out in the middle of no place where you can rent girls for what ails you. Me, being over the hill and it being the middle of August, I would be better served by a giant cup of iced tea than a rent-a-girl. But it's an interesting quirk of an interesting state.
One of the properties over on the east coast of Nevada is called the Kinsley Mountain property. We got to the property late in the week after having visited most of the other 20 properties of Nevada Sunrise so by then, my head was reeling.
The Kinsley mine was a story similar to many other properties. First discovered in 1984, it went through a handful of owners before being bought for $3 million by Alta Gold in 1994. Alta Gold put the property into production in 1994 and between then and 1999, the property produced over 138,000 ounces of gold, about 30,000 ounces per year.
Even with $250 gold, the mine was in production and still making money in 1999. But problems and cost overruns at another Alta property caused the company to go broke. One day they were mining gold, the next day everyone lost their job and everything was sold at action. It was an eerie experience to wander around an existing gold mine with everything except people and equipment. There were shot holes lined up all in a row, just waiting for the explosives to be poured for yet another blast. Today, the lonely wind whistles over the empty blast holes with nothing but a few field mice for company.
It has been my contention for the past three years that the companies taking action now and preparing for the next gold rise will be the ones to gain the most. Lateegra management optioned the Kinsley Mountain property last October because it has many of the same characteristics of the mines on the Carlin Trend. They know they could put the property into production now and make money but are betting they can dramatically increase the resources and property value. It is companies like Lateegra which represent the greatest potential in the mining business.
If you went to Barrick Gold and asked them who the leading company is in the mining business, without a doubt, their answer would be Barrick. But what they consider a 17 million ounce lifeboat more closely resembles a 17 million ounce anchor. Barrick insists they can postpone delivery into their hedges for 15 years but if they weren't smart enough to cover their short at $250 gold, exactly when would they. Barrick has one foot on a banana peel and the other foot in the grave and they don't want to admit it.
I like the Lateegras of the mining world and not because I have a vested interest. It's the risk takers and those willing to bet their fortunes on a higher price of gold who will gain the most benefit.
I look forward to another visit to Kinsley where I expect to see a lot more going on than just a few field mice running around.
Lateegra: symbol LEG
on the TSX.V (Yes, I do like a bit of leg!)
Lateegra is a paid advertiser and we own 50,000 shares of LEG.
Copyright ©2001-2021 321gold Ltd. All Rights Reserved