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GFG Hits a Hole in One  

Bob Moriarty
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Sep 12, 2018

Some times I get it almost exactly right in my forecasts. I have written a number of times about Rattlesnake Hills and GFG Resources. The latest was just over a month ago. I love getting it right. There was a ton of opportunity then and for those investors willing to take a chance, they are going to be richly rewarded.

In it I said,

I love Rattlesnake Hills and have since I first visited it in 2008. But big projects consume money. I would far rather see GFG find a partner with deep pockets to advance Rattlesnake and they work in Timmins where a couple of million dollars buys a lot of drill holes.

GFG has substantial management the quality of which is not incorporated in their share price. A lack of visible progress is the sole reason the shares have gone lower but a ton of activity has been going on behind the curtain. Now the company is about to produce a lot of visible action and I think the market will get it. If Rattlesnake Hills was worth $110 million in 2012, the addition of the high-grade projects in Ontario only serves to make the value higher. One day investors will get it.

On September 11th GFG made an interesting announcement where Newcrest is doing an option on Rattlesnake Hills. The terms are a little confusing to me and I suspect to investors but go through the press release because it’s giant news for GFG. Essentially it means Newcrest can get 75% of Rattlesnake for about $100 million over years. That values the project at over $133 million and GFG will retain 25%. With a market cap of about $16 million USD right now, GFG is a screaming buy.

When Evolving Gold first did the deal many years ago with Agnico Eagle I was thrilled. With a project this large, you need a well run company with deep pockets and Agnico qualified on both counts. Bruce Duncan was an idiot to queer that deal. But adult management at GFG has done an even better deal with Newcrest and they are probably the best company in the world to advance Rattlesnake. Both companies have my congratulations for a deal well done.

GFG can now focus on their Ontario projects. GFG announced a major exploration program earlier this year including an 8000-meter drill program. Drilling starts this month. Look for lots of news coming out starting in a couple of months on both projects.

The company does an incredible job of communicating and has already updated their presentation to reflect the deal with Newcrest. Read it.

GFG is an advertiser and I own shares. Do your own due diligence.

GFG Resources
GFG-V $.27 (Sep 11, 2018)
GFGSF OTCBB 87.8 million shares
GFG Resources website

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Bob Moriarty
President: 321gold
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321gold Ltd


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