Thesis Gold Hits and Runs
Ordinary investors are not going to understand this for quite a while but for those who have been invested for most of the last twenty years, the caliber and quality of mining companies today is far superior to the mass of cheap lottery tickets in the proliferation of juniors from 2001 at the lows to 2011 at the high. In simple terms there was a lot of crap out in the market. And it was especially difficult for investors to compare one to another. You pretty much had to take your chances and the odds were very much against you.
There are dozens of great companies in the market place right now and the quality of management teams far superior to the trash of fifteen years ago run by former taxi drivers and drill supervisors. Given that it really looks to me as if we have had at least a tradable bottom with the DSI of gold at 10 with silver and platinum at 9 just a week ago. I think we have seen the lows. If I am right we will need to climb the wall of worry.
Meanwhile there is an ongoing liquidity crisis. Panicked sellers in a market where you have to make an appointment two weeks in advance to sell fifty shares are dumping resource shares. I like buying things when they are cheap but I’m the exception. Most investors, especially all the weak hands, want to sell at the new lows.
So it’s a real treat when an excellent company with a tight share structure in a safe jurisdiction delivers brilliant results and manages to catch a bid and go up in double digits rather than crash. Damn unusual as well.
Thesis Gold (TAU-V) issued an interesting press release on October 5th showing assay results from their first three holes on their 100% owned Ranch Gold-Copper project in the Golden Horseshoe district of North Central BC. The results drove the shares up 15% for the day.
Hole 001 showed 34.0 meters of 19.56 g/t Au starting at a near surface 26 meters down hole. Hole 002 was good but not great at 15.32 meters of 1.87 g/t Au and Hole 003 was another home run with 24.86 meters of 9.53 g/t gold starting at 10 meters depth. The company has two diamond drills turning and a track mounted RC drill rig.
The company is wrapping up a 20,000-meter drill program as winter approaches Northern BC. As of August the company had cash in the bank of $23 million after a raise of $18.4 million in June while the market was still red hot.
The remainder of the assays will show up someday if the assay labs ever get their act together but the company is well cashed up for next year’s program to expand the resource.
There are a couple of issues investors should be aware of. They don’t have a US listing yet. That is going to be important since they need US investors. Also they have done such a good job of convincing funders to invest that the public float is less than 15%. Insiders own 25% and institutions own about 60% so good news will blow the lid off the stock.
The company has done an excellent presentation that makes their plans and progress clear to investors. They have a young and aggressive team highly experienced in the area they are working.
Thesis Gold is an advertiser on 321gold but I was not smart enough to get into the private placement or to buy shares in the open market. Please do your own due diligence.
Thesis Gold Inc