White Gold on Sale
Someone I have known for a long time called me yesterday and wanted to know what I thought about half a dozen stocks. He went through the list and as he did I commented on each stock I knew anything about. His last stock was White Gold. I told him it was one of the easiest calls in Canada. It’s a great stock.
Shawn Ryan put together a package of all the claims that he had staked and brought them into one company, White Gold. The claims had been spread out through ten juniors. If you take the prices of the total ten juniors from eleven years ago before he put White Gold together, the various claims would be worth $5 a share. White Gold hit a yearly low of $.45 at the first of October before jumping up 90% in the next two weeks based on a series of excellent drill results from several different projects.
Results included six diamond drill holes punched into their Betty Ford gold target with assays coming out in mid-November showing some of the best results in the Yukon and certainly from this year. Hole D003 showed 50.0 meters of 3.46 g/t Au from 33 meters. Hole D001 intercepted 48.0 meters of 1.17 g/t Au from 19 meters.
The entire package of claims owned by White Gold total over 420,000 ha. The Golden Saddle-Arc property has a resource of 1.542 million ounces of gold with another 267,600 thousand ounces of gold from the VG deposit. Recent discoveries have included Ryan’s Surprise and newly drilled Betty project.
What makes White Gold especially interesting to me is that both Agnico Eagle and Kinross have major share positions. The two companies were equal in stock position at 17.1 million shares until recently when WGO announced Agnico has increased their share position to 19.9% with an investment of about $9 million in flow through and non-flow through shares with no warrants at an above market price.
I cannot think of any way that two of the best mining companies in Canada could show their attitude to White Gold better than by pulling out their checkbook and putting a lot of zeros on the paper. I would be very surprised if Agnico Eagle doesn’t belly up to the bar and increase their position size to remain equal to Kinross.
With an overall resource of about 1.8 million ounces of gold today and a series of new and excellent drill results and a market cap today of about $88 million in Canadian pesos, investors can buy ounces of gold for about $40 US in a company that Kinross loves, Agnico Eagle loves and even Eric Sprott loves. It’s in the safest mining jurisdiction in the world.
The shares hit a yearly low at the first of October before climbing to a yearly high in November at $.85 before dropping to $.64 in Tax Loss Silly Season now. The stock is cheap and if I am right in saying we are about to have a nice rally in the price of gold and of resource stocks, White Gold is on sale now but won’t be for long.
White Gold is an advertiser and I bought shares in the open market. Do your own due diligence.
White Gold Corp