All in on Gold and Animas Resources Ltd
Seeking Alpha Analyst Since 2011
Animas Resources Ltd is an interesting gold company with low share price that could rice quickly when Animas start drilling at Kinsley Mountain property and the drilling can’t be far away. In the beginning of 2007 there was a lot of people that talked about Animas Resources and the people involved with Animas, but now it’s seems like many people lose interest in Animas Resources.
When people start lose interest in something like this or gambling then is time to go all in and junior company in the mining business is gambling but you can also go for better odds and betting on people with great experience in the mining industry and that is what Animas is all about, after the drillings in Golden Arrow that turned out to be nothing of value, people started jumping over board so my thoughts is to go all in on Animas Resources and at this share price $0,29 is in my thoughts easy money in the short run and if they have no luck in the next drilling I guess even more people is jumping of the wagon but if they success there is another story and the stock price will go higher than $1 witch I first bought the Animas stock in 2009 if my memory service me well.
Animas did not have any problems raising money in the past and with the people involved in Animas I do not think there will be no problems in the future and I guess they soon will need to raise new capital.
Next drilling is probably the Kinsley Mountain.Animas can earn a 51% interest in the Kinsley Mountain property by spending $1.5 million in exploration expenditures over three years. Alta Gold produced some 135,000 ounces of gold from oxidized material mined from a number of small open pits.
Deeper material was tested by only a few deep drill holes. Holes that did test this zone yielded grades that ranged from 0.235 ounce per ton gold (7,3gpt) on the east side of the range to 0.149 ounce per ton gold one mile to the northwest By analogy to the better-explored gold deposits of the Carlin trend, the deeper zones of gold mineralization at Kinsley Mountain could contain a lot more the amount of oxide gold already mined. The district remains remarkably under-explored says Gregory E. McKelvey C.E.O.
Animas also have a district in Mexico called the Santa Teresa district that has high expectations and where there is gold in the ground and Gregory Mckelvey is very excited about the Santa Teresa district witch is not an easy play but now Animas must have a great understanding of the geology of the district.
Phelps Dodge were first alerted to the property when a local prospector began making periodic shipments of silica flux, grading 13.4g Au/t, to the
Phelps Dodge smelter in Douglas, Arizona so the gold in my own opinion must surfaced from a deeper and high tonnage gold mineralization.
We also have a Moly discovery and general conclusion is that the El Tigre area may contain a significant porphyry molybdenum deposit.
All of the drill holes encountered strongly anomalous molybdenum, and surface sampling has defined an extensive area of anomalous molybdenum in soils and rock-chip samples. Trace element geochemistry from core and soil sampling reveals a picture that is supportive of a potentially significant area of molybdenum mineralization.
Multiple periods of mineralization can produce more than one molybdenum “shell” some of which can overlap. This can produce large tonnages and higher grades of Mo.
Animas Resources have some value and increased the inferred gold resources with 300% to 557,000 ounces of gold and I calculate the value to around $11 000,000 and the Molybdenum discovery has high potential and Animas market cap is around $13 000,000 so Animas Resources have a lot more value this days compared to when Animas share was trading over $1. I still trust Gregory E. McKelvey and that his team will bring value to the share holder.
Disclosure: I am long OTC:ANIMF.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.