GSP Resources Begins Drill Program
GSP Resources (GSPR-V GSRCF-OTCBB) put out a press release on the 8th of September that was at the very least poorly worded and confusing. They announced the start of a drill program at their Alwin copper mine adjacent to Teck’s Highland Valley Mine. When I read the press release I got into contact with the company to clarify what I thought they were doing.
In the press release GSPR stated, “The Phase 1 program will consist of a minimum of 1,000 meters of diamond drilling. . . “ And I get about as excited at a press release talking about a 1000 meter drill program as do my readers. That is to say not at all. But management did clarify the release. The 1000 meters is just the start of Phase 1 and there will be a Phase 2 based on the results of the first program. The entire drill program is financed with money in the bank and they have $500,000 in cash beyond that. There will be more drilling.
With copper breaking out above the $3 level after a 50% advance in six months from the March 19th low at $2.08 investors should be looking for low priced lottery tickets on copper. GSPR has a tiny 16 million shares and at today’s price has a total market cap of about $5 million USD.
GSPR is going to drill a lot more than 1000 meters in this year. They will hit copper. The copper/silver/gold structure mined at the Highland Valley Mine runs right into the Alwin property. They are a natural buyout candidate for Teck.
Copper has had a great run since March, it is probably due a correction but GSP Resources is a cheap lottery ticket on both copper and the stupidity of the Federal Reserve in destroying the US dollar.
GSP Resources is an advertiser. I have bought shares in the latest PP and naturally that makes me biased. Please take responsibility for your own due diligence.