Opawica, Low Risk
Apr 26, 2010
Something has changed in the last month in the resource sector.
For some reason junior mining companies have been lining up to
advertise on 321gold. Maybe passing $1100 gold on the way up
has made believers out of companies that have been sitting on
their wallets for the last 18 months. We have added a dozen advertisers
in a month.
I try to keep up with what our advertisers are doing and frankly
it's difficult when we are adding them every two days. One new
advertiser, Opawica (OPW-V) announced drill results yesterday.
When I saw the
announcement, [pdf] I went to their site. What I saw was
remarkable. This is a low risk stock for certain.
The present market cap as of Friday is a tiny $6 million dollars
with 55 million shares selling for $.11. For that you get 452,000
ounces of gold and 118.7 million pounds of copper. That means
you can buy gold for about $12 an ounce. That seems pretty cheap
to me. And you are getting over 2 pounds of copper worth $3.50
a pound per share. $7 worth of copper per $.11 a share stock
seems really cheap.
But that wasn't what rocked me the most. In February Opawica
did a deal on a project with a company called Upper Canada Gold.
OPW took 11.74 million shares of UCC in exchange for the property.
Just for fun I tried to figure out how much the 11.74 million
shares of UCC were worth. As of Friday last, those shares held
by OPW were worth $5.2 million.
So here's the math; for $11.00 you can buy 100 shares of Opawica
giving you almost eight tenths of an ounce of gold worth about
$939 and $715 worth of copper. Or if you consider OPW selling
all their shares in UCC at Friday's price, the entire company
is valued at under $800,000.
By the way, the drill results were good and they will be releasing
drill results once a week for the next six weeks. They are on
hole four of a minimum 6-hole 3600-meter drill program. Look
for more good news.
We are biased. We own shares and OPW is an advertiser. Please
do your own due diligence.
Opawica Explorations Inc.
OPW-V $.11 (Apr 23, 2010)
OPWEF-OTCBB 55.3 million shares