“Revolutionary Mining Company with 1,000%+ Potential Returns”

By Travis Johnson, Stock Gumshoe, December 1, 2010

An attentive reader recently forwarded an email teaser ad to me for a newsletter called The Dollar Vigilante, not one I’d heard of before — but it is edited by Ed Bugos, whose name might ring a bell if you frequent gold and mining websites, and the teaser language rang a little bell deep in the cellar of Gumshoe Headquarters … so I thought I’d spend a few minutes taking a look for you.

The Dollar Vigilante appears to be yet another tapdancer on the (expected) grave of the US dollar, the Federal Reserve, and the global monetary system. From a quick glance at their site (the free blog part, at least), they have some interesting opinions and have highlighted some profitable ideas (no surprise for a new letter — gold and silver are both up quite hugely since they launched in July), but the basic arguments about the decline of fiat currencies and the need to get yourself out of the dollar (or even expatriate and get out of the U.S. entirely) will be familiar to anyone who reads much of anything in financial newsletterland. Porter Stansberry, for example, has a new ad out today that’s similar in tone, all about the need to open foreign bank accounts, store your gold overseas, and own productive farmland so you can protect your assets and feed your family during the coming collapse, and you’ll hear much the same from hundreds of investing pundits.

I have no idea how far dollar debasement will go, of course, though I agree that it seems likely that real asset prices will rise over time as the world gets more crowded and more money gets printed by every central bank — maybe there will be a real and abrupt currency crisis (or full-blown social crisis) as Stansberry and many others predict, or maybe the frog in the pot will come to a boil very slowly, I have no idea, but I wouldn’t personally want to make any long term loans that are repaid in dollars right now. That said, logical arguments don’t always carry the day — and things can certainly stay in what seems like an unsustainable state for a lot longer than you might expect, especially when the world is accustomed to “the way things are.” I’d always guess at gradual change and “muddling through” instead of abrupt crisis, but that’s just the kind of easygoing guy I am.

But anyway, the Dollar Vigilante folks are tossing their ideas and perspective on top of this pile … in exchange for your subscription dollars. And they’re clearly paying attention to the marketplace, because they apparently realize that the way to get subscribers is to offer a tantalizing investment idea but leave the actual specifics just … out … of … reach untilyousubmityourcreditcardnumber.

And that’s where we come in, fellow gumshoes. Let’s find out what stock they’re teasing, and think on it for a spell … shall we?

The promise is familiar, of course … and compelling:

“The Dollar Vigilante has uncovered a company that is about to start a revolution in mining and has serious potential for thousand percent plus returns….

“MANY MINING MAJORS HAVE ALL INVESTED… ALL AT HIGHER PRICES THAN YOU CAN PAY TODAY

“Investing, more often than not, is a case of “following the money” and this is certainly the case with this company. Many mining majors including Anglo American, Barrick Gold and Teck Resources lined up to put in over $300 million into these [sic] junior exploration company.”

The tease tells us that these big major miners rushed in ” before it was even ready to begin testing its theories.” But that they are now “proving the value” of their techniques … and the market hasn’t “woken up to the potential” yet.

So which “revolutionary” mining stock is this? Well, we get plenty more clues:

“Another financial newsletter that charges $5,000/year to receive their investment recommendations featured this stock in July – also at higher levels than you can buy it at today.”

Ha! Well, now you see why the bell rang over here at Gumshoe HQ — if you’ve been around these parts since the Summer, you may well remember this heavily promoted tease. But if not, let me string you along with a few more clues …

“… they are pioneers in a new way of mining that “can be more than an order of magnitude richer” than regular gold mines,” according to a study published in Nature.

“Preliminary samples from one site where this revolutionary mining company has drilled had an average concentration of 15 grams per ton. Doesn’t sound like much? It does when you consider that the average global gold mine has about 1 to 3 grams of gold per ton of ore. Even South African mines only have about 7 grams per ton. That’s less than half as rich as the resources this company has tapped.”

And …

“… this company has found and has exploration licenses encompassing an area as large as the entire United Kingdom!”

And then we get to the part that really gives away the secret, even if you weren’t reading as closely as your friendly neighborhood Stock Gumshoe:

“Dr. Charles Morgan, a geochemist and former project manager for the U.S. Department of Interior said, “Geologically… this is definitely the best prospect I’ve ever seen.”

“The gold content is incredibly high,” professor emeritus of geology at the University of Toronto, Dr. Steven Scott said. “It is exceptional.”

“These are very, very high contents of valuable metals,” said CSIRO scientist, Dr. Ray Binns….

“… this company is years ahead of any competition in figuring out how to mine resource from underneath the sea floor. In fact, over the decades, the oil & gas industry has developed much of the technology that they plan to utilize today. So in many ways, this company is already ahead of the curve.

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