Home   Links   Contact   Editorials

In Production

Bob Moriarty
Mar 6, 2009

ATW Gold Corporation

I love ATW. I've mentioned them a whole bunch of times. We have been shareholders for the longest time. They just made the most important announcement they will ever make. They are in production.

They should have been in production a year ago but everything in life seems to take longer and cost more than anyone guesses. They just received all their approvals, their people are in place and they are mining.

They do not yet have the ability to pour gold so we are two months away from seeing the first dore bar.

ATW was a hell of a deal when I first wrote about them. The stock did get hammered along with everything else but with over 500,000 ounces in 43-101 resources, the company is pretty much a slam-dunk. Drilling continues to expand the resource at Burnakura with recent results as high as 23.7 meters of 16 gpt gold. I've seen the project twice and it's a lot bigger and better than the numbers indicate.

ATW estimates US cash cost of $450 an ounce. The Aussie dollar is cheap right now so their expenses are in the cheaper dollar and their sales are in the valuable US dollar.

If all ATW had in the stable was Burnakura, they would be a wonderful company. But they have another project just as good, Gullewa. Management is in the process of raising $6 million in a convertible debenture and with those funds in hand will get Gullewa in production later this year. It's about the same size and will produce about the same numbers.

At Burnakura ATW is saying they will produce 35,000 ounces this year. Like the management of most mining companies, they are lying. It's going to be higher. They are deliberately understating what they intend to do. I like that.

We are biased. We own a lot of shares. They are an advertiser and with any luck, I will be there when they pour the first gold bar in 60 days. It doesn't get any better than this.

Remember, Desert Sun was producing about 105,000 ounces of gold a year when they got bought out for $700 million. With a "guesstimated" production a third as large, that implies a market cap of $233 million for ATW. At today's price, the company has a cap of $45 million. They are going higher. Soon.

ATW Gold Corporation
ATW-V $.75 (Mar 5, 2009)
ATWVF-PK 61.1 million shares
ATW Venture website

Bob Moriarty
President: 321gold

321gold Ltd