Why?
Because of the potential of making a killing of a lifetime from a small, but seemingly reliable gold explorer.
This company I am talking about is Goldspring, Inc., a junior explorer in the historical Comstock region of Nevada.
I've been looking at this company since the winter of 2008 when the stock price hit a low price of about a penny and a half. What intrigued me about this company wasn't the volume of shares being traded day-to-day, but the SEC filings that they've been submitting. Long story short, they seem like a well-focused company with a goal of one day becoming a junior producer, much like Alexis Minerals in my previous post. As I perused through the filings, I've noticed that Goldspring is lining up all their ducks in a row - the last of these ducks is operation permits and a mining plan. Of course, there are still several hurdles along the way such as equipment purchasing, staff hiring, security, etc. But, given their methodical approach, it looks like they will overcome these hurdles in time. After all, getting into mining production is a difficult and complex process which takes a lot of preparation time and funding. That said, I estimate their production timeframe to be around the mid-year 2010.
I've rolled the dice with this company, going in with a million shares at an average of 1.24 cents per share. I see this more of a long-term, fairly secured lotto ticket with the potential of ridiculous wealth. If they get into production, a run on the share price can hit around 50 cents in a matter of weeks after they start pouring out gold bars.
Here are a few facts with this company from AOL:
- 564,000 recoverable ounces of Gold in reserves
- additional 870,000 ounces of Gold in resources
- 5.85 million recoverable ounces of Silver in reserves
- additional 12.9 million ounces of Silver in resources
- estimated value of Gold + Silver reserves = $604 million
- all of these ounces of Gold and Silver reserves and resources are on only 5% of Goldspring land
For more information about Goldspring, go to: http://goldspring.us/?act=pages&page_id=9
As you can see from the facts, there is tremendous potential for this company to explode once the start mining. If they plan out the mining production well and execute on their plan, they will make a grand killing, and so will I. If they find similar reserves and resources on the remaining 95% of their land, well let's just say that they will become the next Barrick or Goldcorp.
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