gold stocks undervalued - the gold report, page-17

these are a few points made in the Emerging Trends report by Richard Karn.








1. Antimony is in strong demand , but despite smelters worldwide routinely crediting miners with auro-stibnite concentrates for 80-85% of the Au content and for 85-90% of the Sb content, the market continues to price Northwest Resources Ltd. as if it were suffering from antimony contamination.
2. We believe the A$25 million in funding needed to put the mine back into production will be raised either by the elegant irony of antimony off-take agreements or via bank financing with but minimal share dilution, which loads significant upside into the share price.
3. We like Northwest?s prospects, vision, and conservative approach and believe they have learned from the mistakes of previous operators of the project; further, we think they have a tremendous opportunity to expand their resource base at very low cost.
4. However, our primary reason for buying Northwest Resources Ltd. prior to making our site visit was simply that we believe the market is mispricing their stock. We areconvinced that by the time we get out to the Pilbara region of Western Australia in4-5 months for a site visit, we will no longer be able to buy a 42- to 52- gram per ton, narrow vein gold mine containing a JORC proven reserve of 288,000 oz of gold and more than 6000 tons of antimony, a surface deposit with an additional 56,000 oz of gold and 1100 tons of antimony, tremendous exploration potential, and a mining camp complete with serviceable CIP treatment plant, crusher, accommodation and outbuildings for little more than the value of the cash the company presently has on hand.