Miniscule company drilling on a hot gold property in the former USSR, where Russian geologists discovered significant amounts of gold in the 1970s
Moreover, this property has the same geology as a neighboring mine which already has $1.3 BILLION of gold.
But the property had never been explored using modern drilling methods … until Kentor Gold started doing that last year. And assay results are now showing one great gold intercept after another.
This is a classic, grass-roots exploration play. With a total market value of only $7 million, Kentor is so small that a few positive drill hits and assay results could send the shares up 2 or 3 fold. And if Kentor uncovers as much gold on its property as there is in the mine right next door, then we think you stand to earn up to 20 times your initial investment in the long-term.
Dear Subscriber:
Kentor Gold is an Australian exploration company with extensive gold and base metal exploration permits in the former Soviet Socialist Republic of Kyrgyzstan, in Central Asia. Its business model is very similar to another recent recommendation of ours, Lero Gold, which went back through the rich, Soviet-era geological archives, looking for promising old minerals discoveries that were never developed by the Russians.
Kentor has a Russian-speaking management team based full-time in the Kyrgyz capital Bishkek, and enjoys a cordial relationship with the Kyrgyz government. The company has full access to all the old Soviet geological
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archives for the country, and based on what they're uncovering, they've been pegging some of the best mining claims in the country for further exploration. Already they have secured five highly-promising prospecting licences in the Kyrgyz Republic.
Kentor's main focus at the present time is the Savoyardy gold discovery that the Soviets made back in the 1970s. The property is located in the prolific Tian Shan Gold Belt which hosts numerous world-class gold deposits including Newmont’s Muruntau mine (140 million ounces of gold) and Centerra’s Kumtor mine (14 million ounces).
Simple soil samples and trenching done by the Soviet geologists in the 1970s already show there is significant amounts of gold there, with high grades of up to 30 grams per ton of gold. To put this into perspective, there are many profitable underground gold mines with grades of only 5 grams per ton or less.
But until Kentor started exploration drilling last year the Savoyardy property had never been explored using modern drilling methods.
So far Kentor has completed over 3,200 feet of drilling. The assay results the company released based on this drilling so far showed one great gold intercept after another. They confirmed, and even surpassed, the results achieved by the Soviets 30 years ago.
Highlights included wide intercepts of up to 49 feet with a gold grade of over 14 grams per ton. This means that there is a high concentration of gold per ton of rock AND it stretches over a significant vertical distance below ground. Moreover, some intercepts showed gold grades of up to 44 grams per ton.
Looking ahead to the next round of drilling, Kentor has just finished rehabilitating some of the old underground tunnels dug by the Soviets on the Savoyardy property. This will allow Kentor to conduct exploration drilling from underground, as well as from the surface.
That's important since the weather conditions in this part of the world are extremely harsh most of the year round, and limit surface drilling to a rather short summer drilling season. By doing exploration from underground, Kentor can now do year-round exploration on the Savoyardy property, greatly speeding up the process of compiling a geological estimate of the amount of gold the Savorady property contains
But what really makes the potential of the Savoryardy property exciting to me is that ...
Kentor’s property is just 5 miles away from Majestic Gold’s Sawayerdun Project, which contains at least 1.5 million ounces of gold
Canadian exploration company Majestic Gold’s Sawayerdun Project is only 5 miles away to the southwest, just over the border from Savoyardy, on
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the Chinese side.
To date, Majestic has done enough drilling to satisfy their geologists that there is at least 1.5 million ounces of gold on their exploration lease, and further exploration to try and increase that number is continuing. Based on the data gathered from both Kentor and Majestic’s exploration activities, the two discoveries are very likely part of one and the same orebody that flows from the north (Kentor’s property) and goes down southwest, across the border, to Majestic’s property on the Chinese side.
Moreover, both properties have almost the same size. Majestic’s Sawayerdun project comprises 47 square miles, while Kentor’s Savoyardy property covers an area of more than 48 square miles.
Based on the existing drill results, and the similarity of the geology, we think there is great potential for Kentor to find just as much gold as Majestic, or even more.
And what really gets us salivating is that Kentor's market cap is only a puny A$7.6 million (US$7.1 million). In fact, that's not just puny. It's derisory -- an insult to the company's management.
Double or even triple your initial investment in Kentor on good drill results; and make up to 20 times your money if Kentor finds as much gold as its near neighbors mine
The time to buy shares in Kentor is right now. Two rigs have just started on the next phase of the company's exploration program -- drilling a total of nearly 15,000 feet at Savoyardy. The first batch of drill core will be in the lab by late this month. And, given Kentor’s good relationship with a world-class lab, it expects to get the assay results back as early as next month.
With a puny market cap of just $7.1 million, and a steady stream of strong assay results likely, we think that you could double or even triple your initial investment in the short-to medium term, based on the drilling news flow alone.
But if -- as we expect -- Kentor’s Savoyardy project yields a similar amount of gold to Majestic’s 1.5 million ounces (so far) just across the Chinese border, making 2 or 3 times your money will just be the start. That much gold is worth $1.3 BILLION at today’s market prices -- over 170 times Kentor’s present market cap!
Even at a super conservative valuation of just $50 per ounce of gold in the ground, that much gold would be over 9 times Kentor’s current market cap. And at a valuation of $100 per ounce of gold in the ground, you'd be looking at almost 20 times your money!
Added bonus: Potential for more gold or base metals discoveries from four other promising properties in Kyrgyzstan
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Besides Savoyardy, Kentor has nailed down exploration rights on four more promising properties in Kyrgyzstan, too. The most advanced is Akbel, which is right next to the world-class Kumtor gold mine (6 million ounces). Kentor also has the license to explore the nearby Bashkol gold and uranium prospects which could be as rich as Akbel, but are still largely unexplored.
And, there’s the Chaarkuduk and the Kurgan exploration licences which are prospective for base and precious metals such as lead, zinc, copper, gold, silver, and uranium.
All these properties were hand-picked by Kentor as properties with some of the best potential, based on the archived data from Soviet-era minerals discoveries.
Positive assay results in the future from an eventual successful drill-hit at Akbel, or any of Kentor’s other projects would just be gravy on top of Savoyardy.
Call your broker and buy some shares in Kentor Gold now while drilling is still underway and the shares remain dirt cheap.
Kentor Gold’s stock trades on the Australian Stock Exchange under the symbol KGL. Shares closed at A$0.11 ($0.10) Wednesday. The shares also trade on the US OTC market under the symbol KGOLF. We recommend that you buy the Australian-listed shares because they are more actively traded. That should allow you to get in (and out) at a better price.
For more information, you may visit the company's website at http://www.kentorgold.com.au/ .
Warm regards,
Chuck de Castro and Andy Ledesma Co-Editors Penny Mining Speculator May 14, 2008
P.S. Your regular stockbroker should be able to buy the Australian-listed shares of Kentor Gold for you. Ask him. If your broker can't, here are several brokers that can. They are by no means the only brokers capable of handling this trade for you. They are simply brokers that we know can do it.
To put your mind at ease, I want you to know that we accept no compensation of any kind from any of these brokers.
Online brokers
1. Interactive Brokers Phone: 1-877-442-2757 (toll-free) or 4
1. Commonwealth Securities Locked Bag 22 Australia Square NSW 1215 Australia Tel: +61-2-8223-7014 (8 am to 7 pm, Sydney time, Mon to Fri) Fax: +61-2-8292-4777 Website: www.comsec.com.au Email: [email protected] Commonwealth Securities is a broker offering both online and telephone-based services. Account opening forms and most of the information you're likely to need are all available for download directly from the Commonwealth website.
2. Tricom Equities Level 27, Governor Phillip Tower 1 Farrer Place, Sydney NSW 2000 Australia Contact name: Greg Chalom Tel (direct): +61 2 8336 7355 Fax: +61 2 8336 7555 Website: www.tricom.com.au Email: [email protected] Tricom is a full-service broker and accepts orders via phone, fax, and email. So, despite the time difference with Australia (Sydney is currently 14 hours ahead of New York), it should be convenient to trade.
3. Newbridge Securities Corp. 1451 West Cypress Creek Road, Suite 204 Ft. Lauderdale, Fl. 33351 USA Contact name: Irvin Rosenfeld Tel: 1-877-447-9625 x120 or 1-954-689-6875 Fax: 954-229-9937 Email: [email protected] 4. Wachovia Securities 901 East Byrd Street Richmond, VA 23219 USA Contact name: Karen Charvonia Tel: 800-235-5152, loc. 714 Email: [email protected] 5. Man Financial, Inc. Contact Name: Rebekah Furgeson 141 West Jackson Blvd., Suite 1800-A Chicago, IL 60605 Phone: 1-800-560-5850 5
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