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Gold Stock
Alert:
Pacific
Ridge Exploration
A 1st
class property
Bob Moriarty
April 14, 2003
Markets tend
to range from one extreme of emotion to the opposite extreme
of emotion. But as readers of various investment advisors we
demand specific numbers as targets, so that's what the advisors
provide us. In reality, just how valid is it for a pundit to
say, "We think gold is going down to $312 but if it doesn't
go down, it will go up."
No kidding.
But what other alternatives are there? Gold either goes down
or it goes up.
I don't pay
a lot of attention to price predictions. I have followed various
advisors for years and those who can predict accurate prices
on a regular basis are rare indeed. In my experience, the most
important factor affecting price is the psychology of investors.
In January, bullishness on gold hit the stops, gold had rocketed
from $320 to $390 in six weeks and wild predictions of gold well
above $400 in days were common.
So gold promptly
went down. It responds not to price predictions, only to emotion.
We are hitting the stops in emotion towards gold again but in
the opposite direction. Now no one wants gold, bullishness is
at yearly lows. That means gold and the gold stocks should be
going up. I won't give price predictions, I don't think they
have much value. Buy until everyone wants to own gold, then sell.
Last August,
I took an 8 day trip with Bill Henderson of Nevada
Sunrise, LLC
to inspect mining properties in Nevada. One of the mining camps
we inspected was that of the Golden Arrow property, the flagship
of Nevada Sunrise. A month ago, Nevada Sunrise and Pacific Ridge
Exploration announced
a deal
whereby Pacific Ridge would acquire a 60% interest in the property
in exchange for exploration expenditures of $6 million.
Pacific Ridge
Exploration (PEX-V) is the exploration
arm of the mining combination of John Brock and Wayne Roberts.
This highly seasoned team with 68 years combined mining experience
have put together a variety of successful mines in the past.
But finding
money for mineral exploration at times is more important than
the ability to find gold. If you can't advance a project, it
doesn't matter how much gold it contains. John Brock has raised
over $50 million in financing since 1994 in addition to finding
productive mines all over the world.
Previous drilling
at Golden Arrow proved resources of 480,000 ounces. These resources
are subject to confirmation according to standards of 43-101
and will have to be resubmitted to the exchange but basically,
there was a lot of mining at Golden Arrow in the past, and there
is gold there now.
Pacific Ridge
plans an aggressive $700,000 drill program starting this summer.
Golden Arrow has a proven high grade vein system which has had
little exploration outside the previous drilling. The property
measures 6 square miles and shows mineralization up to 1.87 ounces
per ton of gold over a 15 foot section.
Previous drilling
of 267 holes revealed two different bulk tonnage zones called
Gold Coin and Hidden Hill which represent only 10% of the overall
target area of 5,000 feet by 15,000 feet. pacific Ridge intends
to both extend the existing zones as well as adding additional
high grade formations.
The real key
to an investment in Pacific Ridge is their extremely low market
cap. With the price at $.12 Canadian and 19.8 million shares
outstanding, this impressive company has a total cap of only
$2.4 million Canadian or $1.6 million US. That's not much. The
stock has ranged up and down around $.10 a share and we consider
it very attractive in the $.10 area.
Golden Arrow
has a proven resource now and we expect drill results and geochem
sampling to increase the resource in line with 43-101. Given
that we believe gold is due for a strong advance on its own merits,
now is a good time to consider adding investments in precious
metals stocks.
With Pacific
Ridge, you have a management team with substantial mining exploration
experience, the ability to raise money when needed and a 1st
class property with proven gold resourses and potential to the
sky. When a company has all those assets and a tiny market cap,
it has a great future, and IMO it's well worth investing in.
In 1967, I
was in San Diego visiting a friend. I still recall walking past
a coin dealer and seeing bright stacks of shiny $20 gold pieces
in the window. With just under an ounce of gold in each coin,
the dealer was selling them in any quantity for $38 apiece. By
the time the war ended, gold rocketed to $200 an ounce.
When you hear
baying of the dogs of war, buy gold. Or gold shares.
Pacific Ridge
website
Bob Moriarty
April 14, 2003
Pacific Ridge
is an advertiser on 321gold and we own 150,000 shares purchased
at $.10 a share.
_______________
 321gold Inc Miami USA
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