Dawn of a New Gold Miner

I was watching BNN (the business news network), and I saw the commodities report which features up and coming junior miners in the gold, silver and copper mining sectors. One of the budding superstars that caught my eye was a junior Canadian explorer and now producer of gold. This little fireball is called New Dawn Mining (ND.TO on the TSX), and their main mining operations takes place in their newly opened Turk mine in Zimbabwe.



Since they opened the mine early in March this year, New Dawn has been steadily increasing production of gold bars month over month. And since March '09, their stock price has soared from a measly 5 cents to $1.45 this November '09. So if you bought $1000 worth of ND.TO in March, you would've made about $28,000 in 7 months. Not bad, eh?



But, there's even better news to keep hanging on to this stock. First, New Dawn has no debt, and current production is profitable after all production costs are taken into account. Second, the price of gold will continue to soar due to ideal conditions that will sustain the gold bull run for the next several years. Third, New Dawn is consistently upgrading it's production goals month over month and are exceeding those production goals, month over month. Last, they are also exploring the surrounding region and have found more veins. I'm looking for New Dawn's stock price to hover around $4.50 per share around mid-summer of 2010.

The Time is NOW for Junior Gold Diggers!

The perfect storm is upon us, mates! The price of Gold has broken $950/oz and stayed there for a week. The US dollar is weakening, and hyperinflation is right around the corner. Junior gold miners have been crushed last year, and not just because of the global economic downturn. The price of Gold will skyrocket, believe me it will. And, this means that the junior gold producers who have been hammered so badly will benefit the most from the meteoric rise. The perfect storm is here. And already we are seeing evidence in the junior gold mining sector.

I have been following junior gold mining companies since the beginning of last year and found that they've suffered a fair bit over the last few months. But recently, the trend is beginning to change as a rebound is in the works, most particularly in the companies that ARE producing gold bricks, not just drilling and exploring for them. So here's a piece of advice if you want to invest in junior gold companies and make a killing: find the junior gold PRODUCERS, not the explorers.

Canada has a fair share of explorers and only a handful of junior producers. And, my pick would be a small company in Quebec called Alexis Minerals. This little company is a fireball. Recently, it's stock price bottomed out at 24 cents early this year. But ever since they went from being an explorer to becoming a PROFITABLE producer, the stock price shot up to 56 cents today. I got in at 32 cents with a hefty chunk of dough, and I'm keeping this one for a while. Why? Because this company is thinking BIG and have the plans and the means to get there. It's not a matter of funding anymore. They are profitable. It's a matter of time now. They've indicated a huge amount of gold reserves and are continuing to find even more.

Just as recently as this past Wednesday, Alexis Minerals has released a report indicating that they've discovered more EXTRACTABLE gold in their properties.

http://www.alexisminerals.com/docs08/pdfs/may27_eng.pdf

This is great news, because it shows that they are exploring while they are producing, and that they can pay for exploration costs with their profits. This demonstrates not only a sustainable company, but a company that will grow. It is ripe for the picking, especially at this time.

There are other success stories like Alexis Minerals out there, it's just a matter of finding them. And as the perfect storm hits us, it is the junior gold producers who will become the champions of the gold mining industry.