This ad caught the attention of a lot of Gumshoe readers over the weekend, which isn’t surprising — it’s filled with promise:
“One of the world’s top geologists makes an $80,000 bet…
“Now It’s About to Turn Into a $10.1 Billion Gold Mine
“And give you the rare opportunity to ‘buy’ gold for 17 cents on the dollar today – and make up to
11 times your money by December…”
Of course, we see promises like that every day here at Stock Gumshoe HQ — but that doesn’t mean we don’t start to imagine buying an island or a yacht when we see teasers like this … or, at least, a few more weeks of daycare for the Junior Gumshoes. So is it real?
Well, the newsletter is one I don’t think I’ve written about before — it’s apparently new, and called Global Resource Alert … edited by Peter Krauth, and published by the good folks at Money Map Press, one of a zillion Agora-affiliated publishers, if that means anything to you.
Let’s dig in a bit deeper … as with so many ads, they use a personal story to draw the picture for you:
“In November of 2004, a 44-year-old French Canadian with a crop of white hair (I’ll call him “T.R.”) purchased an abandoned gold mine from a bankrupt mining company.
“He paid the princely sum of $80,000 for the land and all the mineral rights it contained. “Princely” because his peers in the gold mining industry thought he was crazy to spend even a dime on it…
“The mine hadn’t produced an ounce of gold for over 20 years.
“And the owners of the property? They were thrilled at the prospect of making any kind of money from their useless land. Someone would have to be a fool, they said, throwing away good money on a dry rock hole.
“But this man was not your ‘average Joe.’
“T.R., it turns out, is now considered one of the top geologists on earth. He and his team have amassed a record of 10 major mining projects – more than almost anyone in the business.”
But the exciting part is the bit about their big gold reserves, which are in Quebec … and that’s where we start to get into some of the specifics. Or as I like to call them, “clues.”
“On November 25, 2008, to little fanfare, this tiny company recorded its scientific findings in an obscure government document.
“What they recorded set a new mark in the North American record books:
“The discovery of an astounding 8.43 million ounces of gold.
“And on June 2nd of this year – just 1,200 yards away from the original site…
“They confirmed the discovery of an additional 2.24 million ounces.
“Total deposits: 10.67 million ounces of gold.
“Total value of the deposits is a record setting $10.1 Billion.
“This renegade geologist and his ‘mom-and-pop’ company are now sitting on the largest undeveloped gold reserves in Canadian history…”Are you getting our free Daily Update
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So … what else do we know about this stock?
It’s trading for about $7.
It’s a company based in Montreal.
The technical report on Osisko’s reserves, the NI 43-101 filing, reports, at least in part, 8.43 Moz of gold at .9 g/t out of about 286 million tons.
And of course, the ad lists dozens of other small gold miners that hit it big — without, of course, specifically claiming that our fair newsletter editor picked these miners before they had huge gains. Throw in a few examples of little miners whose share prices rocketed during the last gold peak almost 30 years ago, and an argument about “peak gold” and peak demand being fast upon us, and any investor would be filling his shoes with drool.
So what is the stock that will apparently bring us these riches?
Well, a reader threw a tip my way about this one … and I’m pretty sure he’s right. This looks to be Osisko (OSK in Toronto, OSKFF on the pink sheets).
The shares are just under C$7, (US$5.75) — they peaked about a month ago at a bit over US$6.50. They did buy a mine that others had given up on (the property went through a bankruptcy, I think), but which had been explored by Lac Minerals previously (before they were bought by Barrick) … and they did file their resource estimate on Nove