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We believe the best way to preserve wealth and make extraordinary gains over the short to medium term is to invest in junior gold stocks. It isn’t for everyone and the gyrations can certainly be gut wrenching at times but there is no other market where you can garner 5 to 10 times your money in... More
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  • Calichebahada.com TOP PICK Calyx Bio Ventures CYX.v

    calichebahada.com TOP PICK Calyx Bio Venture -CYX.v

    http://calichebahada.com/

    "You are only as good as your last pick". I've been hearing this since I started as a broker way back in 1990. It is as true now as it was then. I have moved past being a broker, as much of the world has moved past people having brokers. The digital era has changed many things with online commerce gaining ground and online trading taking volume away from traditional brokers. What has not changed is that anyone in the investment business is still only as good as their last pick.

    Our last pick was Newstrike Capital NES on the TSX venture. They are proving out a resource estimated to be greater than 3 million ounces of gold with only 2 years of drilling, 125 holes, and only $20 million spent. There is a high probability this company will be bought by a major mining company for multiples of its current trading range.

    As Newstrike continues to prove up ounces, growing their deposit towards a buyout I find myself looking for my next pick. We have had very nice gains with the last 3 doing very well indeed. Our last 3 picks have returned an average 18 times our original investment with NES still in the running for even more.

    The table below highlights theoretical gains, investing $10,000 in each stock at 10% higher than our first recommendation and selling 20% lower than the high.

    Name

    SymbBuyHighSoldGain
          
    OrominOLE0.144.183.34$228,571
          
    TorexTXG0.082.431.97$236,250
          
    Newstrike*NES0.33.372.7$80,000
         $544,821

    *We still hold NES for continued gains

    It turns out I didn't have to look very far to find our next pick. The stock we feel has the best probability of returning multiples of your original investment is a company called Calyx Bio Venture CYX.v http://www.calyxbio.com/ Calyx has a director in common with Newstrike, NES's CEO Richard Whittall.

    Calyx owns an approximate 30% interest in a company called Agrisoma Biosciences http://www.agrisoma.com

    Agrisoma Biosciences is a Canadian-based agricultural biotechnology company that has commercialized Resonance™ Energy Feedstock , a sustainable feedstock crop solution for the biofuels industry.

    Agrisoma uses a species of Ethiopian mustard (related to canola) called Carinata. It is a non-food oilseed that is sustainable, with value chain economics that are scalable to support the biofuels industry. When pressed and lightly refined, Carinata produces a "drop-in" bio fuel solution that takes advantage of the power of agriculture to achieve scale and quality in the emerging Bio Fuel space.

    Resonance™ Energy Feedstock provides an optimized oil for advanced biofuel manufacturing technologies with significant benefits in fuel manufacturing efficiencies and economics.

    What all that means is Calyx owns 30% of a company that quite literally grows jet fuel! It may seem too much to be believed. I have had people literally think I was crazy. I got the same reaction when I told people about fuel cells months before Ballard Power IPO'd. Agrisoma has had 11 years of development partly funded by The Business Development Bank of Canada (also a shareholder) as well as grants from the National Research Council and Agriculture Canada (see the partners page on the Agrisoma website for others). This is no startup, Agrisoma is on the verge of commercializing Resonance. They have already invested between $100 and $200 million in development and have 60 to 70 patents on the technology. The fuel created from Carinata has been flight tested using up to 60% bio fuel in the NRC's Falcon-20 twin engine jet. Early results indicate a complete success. Everyone involved was excited and pleased, so much so that now a second flight test is scheduled to use 100% bio fuel, a first in aviation history! Here is the headline from the latest news:

    Applied Research Associates (ARA) and Chevron Lummus Global (CLG) are partnering with the National Research Council of Canada (NRC), the U.S. Air Force Research Laboratory (AFRL), and Agrisoma Biosciences Inc., a Canadian firm with a growing presence in the biofuel feedstock market, to evaluate CLG and ARA's 100% drop-in ReadiJet™ Fuel

    The only semi comparable listed company is called Ceres. They are growing a sweet sorghum (grass) and converting it to ethanol. Ceres IPO'd at $13, a market cap at IPO of 318 million dollars. Compare that to the implied value of Agrisoma today of just 14 million. Ceres has fallen to a MC of 177 million given market conditions over the last months and concerns with ethanol as a fuel additive.

    Any company that has a technological or competitive advantage especially in a new or upcoming field will outperform the markets by a wide margin. Agrisoma is the most exciting company that no one has ever heard of. I will admit I had never considered any other type of bio fuel other than ethanol, not to mention bio jet fuel. With QE to infinity announced last week oil prices will continue to rise. The scaling simplicity of Readijet suggests future prices will be more competitive with traditional fuel and will vastly undercut the current price paid for a gallon of bio jet fuel, while maintaining margins.

    Calyx represents a unique opportunity to participate in a company on the verge of commercial success without waiting the decade to develop the technology.

    We have a position in Calyx and are buyers as money permits.

    Disclaimer - The views contained here may not represent the views of the owner, its affiliates or advertisers. We make no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. This blog is for informational purposes only. In no event shall the owner or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein. The information provided in this blog is my personal opinion and should not be construed as investment advice. Personal decisions to buy or sell shares or any other financial instrument are exactly that, personal. Please consult an investment and/or tax advisor prior to making any investment decisions, and as always do your own Due Diligence. We shall not be held responsible for or deemed culpable for losses incurred as a result of reading this blog.

    Sep 21 4:19 AM | Link | Comment!
  • Make Money In Gold, Look At Companies In The Guerrero Gold Belt!

    Make money in gold, look at companies in the Guerrero Gold Belt!

    From http://calichebahada.com/

    Newstrike Capital NES.v 2.21

    Oroco Resources OCO.v .26

    Torex Gold TXG.to 2.07

    With the latest worldwide round of QE many investors are looking for a place to make money going forward. The best place to do that is to buy shares in gold companies. One of the best countries to buy gold companies in is Mexico, and one of the best places in Mexico to find gold is Guerrero.

    Mexico has a long history of commercial Gold and Silver mining that dates back over 500 years. The main mining provinces in Mexico are Sonora, Coahuila, Zacatecas, Chihuahua, Durango and Guanajuato. We can now add Guerrero as a significant new mining province with over 16 million ounces of gold discovered to date.

    The modern-day history of the Guerrero area commenced when gold was discovered at Xochipala in 1924 by the Franco Urias Family, who operated a small family-owned mill and mine until 1988, producing a reported total of 360,000 ounces of gold (Au).

    The 'Guerrero Gold Belt" or GGB, as the area is now known, extends for at least 55 km from southeast to northwest and remains open to exploration in all directions.

    Regionally, several multi-million ounce gold deposits all related to large intrusions have been identified. These include Newstrike's Ana Paula deposit (possible 3 million ounce plus), the El Limon and Los Guajes deposits of Torex (4.8 million ounce), Goldcorp's Los Filos-El Bermejal mine (~11 million ounce), which is currently the largest producing mine in Mexico, forecast to produce 345,000 ounces of gold in 2012.

    There are few investments that can generate profits as quickly as a gold exploration company that has just discovered a new deposit. The typical life cycle of a gold stock generates profits in several phases from initial speculation through to implementation of development and eventually production.

    Typically a stock will trend upward after news of drilling is announced. If a discovery is made, the stock can generate 10 to 20 times your initial investment! As drilling continues the initial excitement can subside with the share price giving back some of its gains. In time, as the project is de-risked through more drilling and engineering studies, the share price will again increase as speculation gives way to investment. Further gains can be made when a senior producer acquires an exploration company.

    Ironically the place where gold was first discovered in Guerrero is the least explored using modern techniques. Oroco Resources OCO.v .26 has recently announced registration of the Xochipala project with the PRM (Mexican mining authority).

    The Xochipala Property, which is surrounded by concessions owned by Goldcorp, lies approximately 4 kilometers southeast of Goldcorp's Los Filos Mine.

    The Oroco property contains the southern-most intrusion in the Guerrero Gold Belt. Historical workings have exposed highly oxidized mineralized zones. These were then sampled by Oroco geologists in a preliminary evaluation of the claims soon after the property was acquired. Mapping and assay results indicate that gold mineralization exists at Xochipala along the contact zone between intrusive and sedimentary rocks.

    Oroco represents the initial phase of speculation and thus, the opportunity for the greatest share appreciation. The exciting thing is that it displays the common trait of a GGB deposit, a contact zone with an intrusive and also has a very good address, being the closest to a producing mine. Of course the best place to look for a deposit is next to a mine!

    According to recent reports 24 holes have indeed been drilled at Xochipala. The interesting thing is that is was not done by Oroco.

    http://www.321gold.com/editorials/moriarty/moriarty091212.html

    Newstrike Capital NES.v 2.21 is next along the development curve with a very high grade discovery already made at Ana Paula. AP is significantly de-risked and engineering studies are underway. The share price has already retraced from its highs and is now again moving up as speculation is replaced with investment.

    The NES management and technical staff are familiar with the area, having over 8 million GGB ounces attributed to them through years of exploration success with various companies. They have all come together in Newstrike, a GGB powerhouse.

    Since acquiring the project from Goldcorp only 2 years ago, they are well on their way to proving up an estimated 3 million ounce deposit in their maiden resource calculation. As of Friday they were drilling hole 125 at Ana Paula, I have never seen a better return on investment of meters drilled. As a reference, Torex TXG.to 2.07 has drilled approximately 1500 holes. Torex is about 12 to 18 months ahead of Newstrike on the development curve. They have reported 4.8 million ounces and a feasibility study on their Morelos project.

    The GGB represents a unique opportunity as it offers several great companies at different stages of exploration and development. The great thing is that the projects can be easily compared since geopolitical differences cancel out, leaving only relative project valuations.

    A relative valuation can be made between NES and TXG. Given the drill data and geometries available on the NES website, we can estimate roughly 3 million ounces are contained in the high grade Breccia and surrounding envelope. We can compare this to the reported 4.8 million ounces of Torex. The market cap of TXG today is $888 million, compare this to the NES market cap of only $263 million.

    Using Friday's close of $2.07 for TXG, Newstrike should be trading at $7.44, given equivalent ounce counts. Clearly we can see quite a large divergence here. When we take into consideration the ratio of ounces of each company 3 million for NES and 4.8 for TXG we get a ratio of .63, which implies an ounce corrected value of NES at $4.65. The current closing price of NES is $2.22. There is a 100% + upside potential from here just to get to fair value, not to mention any buyout premium.

    The Guerrero Gold Belt is unique as it represents an area of predictable gold mineralization over a large area. Several world-class deposits have been discovered and it is all within sight of the largest producing mine in Mexico! The full spectrum of gold exploration is present in the GGB from pre-discovery (OCO) to delineation (NYSE:NES) to feasibility and pre-construction (TXG), all the way to full scale production (NYSE:G). The only thing separating these companies is time. The GGB has a proven exploration model and multiple discoveries. The best place to make money going forward is gold and the best place to find gold is the GGB!

    Disclosure:

    I have a large position in Newstrike Capital

    I have initiated a buy program on Oroco Resources and have a starter position.

    I have owned Torex and swapped all of it for Newstrike, given the large relative undervaluation given to NES.

    I have no position in Goldcorp.

    Companies featured in this article

    http://www.newstrikecapital.com/

    http://www.orocoresourcecorp.com/

    http://www.torexgold.com/s/Home.asp

    Disclaimer - The views contained here may not represent the views of the owner, its affiliates or advertisers. We make no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. This blog is for informational purposes only. In no event shall the owner or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein. The information provided in this blog is my personal opinion and should not be construed as investment advice. Personal decisions to buy or sell shares or any other financial instrument are exactly that, personal. Please consult an investment and/or tax advisor prior to making any investment decisions, and as always do your own Due Diligence. We shall not be held responsible for or deemed culpable for losses incurred as a result of reading this blog

    Sep 17 1:53 AM | Link | Comment!
  • If You Want To Make Money In Gold Buy Newstrike Capital, NES $3.06
    The stars are aligning on NES. Gold is on its way up, the junior market is getting its legs and Newstrike is charging ahead with 4 drills turning on the Ana Paula project as we speak.

    The new discovery in the South West and the continued de risking of the project have received little recognition in the market. The share price is essentially where it was at the end of August (with several excellent buying opportunities in between). That in itself is a testament to the importance and magnitude of the discoveries since many other stocks are down significantly over the same period. We feel that is about to change. Newstrike has added George Brack to the board, he was previously an advisor along with John Morganti, who remains as advisor.

    Mr. Brack is a mining industry veteran with extensive experience in the areas of investment banking and corporate development. Most recently Mr. Brack acted as the Managing Director and Industry Head, Mining Group, of Scotia Capital where he led a team responsible for the identification, evaluation and execution of strategic mergers and acquisitions, as well as the provision of equity financing.

    The market has begun to notice Newstrike of late with over $20,000,000 in buying coming into the market in the last 30 days. The analyst site tour in early January went well with coverage beginning from Cormark and Desjardins. Cormark coincidently has been the largest buyer of late with over 8.2 million dollars in the last 30 days. The institutional buying is beginning. We feel there have been many eyes on NES. With continuing excellent results and consistently moving the project forward with the purchase of lands adjacent to AP and the initial 43 101 pending the more astute institutions are coming into the market. We feel the trend will continue with a re adjustment of share price upward to reflect the significant milestones achieved in the last 4 months.

    We can easily compare Newstrike with Torex and see the comparative undervaluation of NES relative to TXG. Torex is on its way to updating their current ounce count to to 5 million ounces of gold. We have confidence that the Newstrike deposits will outweigh 5 million ounces within the current year with an initial 43 101 coming in between 3 and 5 million ounces. Given the market cap of TXG we feel NES should be closer to $8.50, and feel confident the market will agree once the full extent of AP is realized.

    Mineralization has been found in every hole drilled to date. This is a credit to the geological team we have working at AP, with constant modeling and evaluation of every hole, sample, and road cut they are able to determine the optimum drill locations to move the project forward. The mineralization has now been shown to exist over an area of 1Km x 2Km with a high grade Breccia Zone measuring 250x150x250 meters deep. The breccia will provide an excellent high grade starter pit with mineralization from surface to the breccia body. This will give the project excellent economics and will shorten payback significantly to the prospective buyers of the property.

    Technically the stock has just completed a bullish continuation diamond within a very wide ascending channel. The current price target based on this trend is 4.20 to 4.60. Almost every other technical tool is calling NES a BUY.

    The market is playing catch up with NES and we feel that within a very short period of time the share price will catch up with the fundamental value the company has demonstrated.

    We believe the step out discovery to the SW will prove to be at minimum a typical GGB deposit (that so far have averaged 3+ million ounces) and hopefully much more if they are again blessed with a mineralized breccia!

    We maintain our overweight position in NES and expect it to outperform the market and its peers!

    warmest regards

    caliche

    Disclosure: I am long OTCPK:NWSKF.

    Feb 22 6:02 AM | Link | 2 Comments
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