“#1 Gold Stock” from Luke Burgess (and a few personal portfolio moves)

by Travis Johnson, Stock Gumshoe | May 20, 2011 3:39 pm

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One response to ““#1 Gold Stock” from Luke Burgess (and a few personal portfolio moves)”

  1. ellisto says:

    May 5, 2011 – Mining Speculator

    Ethos Capital Corp (Symbols: ECC on the TSX-V, and ETHOF on the OTCBB) http://www.ethoscapitalcorp.com

    ECC has quickly developed into a very strong value proposition with multiple top notch jurisdictions, plenty of cash in the bank, and a top management team with a track record of success. They have a high ranking on our TOP 10 LIST for these reasons and much more.

    I can easily see this company trading at $3.00 to $6.00 with any kind of exploration success this summer or beyond. Here’s why:

    First, the company is positioned well with cash. Once the current financing is completed (the subscribers to the financing are already booked), ECC will have $20,000,000 in the bank and roughly 40 million shares outstanding. On a fully diluted basis it would be $31,500,000 in the bank and around 51 million shares outstanding.

    With this much cash, great share structure and a great exploration team in place, the odds for early or long-term success are in favor of current shareholders. We now have the money to do the work that will be necessary to make a big discovery in one or more jurisdictions.

    Second, ECC is the third largest land holder in the emerging White Gold camp within the Yukon Territories. This land is not just moose pasture. This is qualified Shawn Ryan ground that was amongst the earliest claims in the much sought after White Gold exploration area. The ground that has been vended into Ethos from Shawn Ryan has what we are looking for; big structural controls with potential high grade soil samples in the most prospective areas within the White Gold camp. Only Kinross and Kaminak have bigger land positions that Ethos.

    During the 2011 summer exploration program, Shawn Ryan’s team will be working for Ethos Capital in collecting 33,000 soil samples from our ground work program. To help you understand just how significant this is, Kaminak only completed roughly 4000 soil samples over the past four years to make its major discovery at the Coffee project. We have a big land package and ECC is going to be very aggressive at doing the kind of work that leads to discovery.

    This area in the Yukon is very unique in its exploration methods. The soil samples and geochemistry are the keys to making the big discoveries. They show an exploration company like Ethos where to put their drill holes. This exploration signature is very simple compared with other exploration efforts I see around the world, and I am expecting many new discoveries in the White Gold camp and throughout the Yukon in the coming months and years. This is one of the most exciting times we have seen in the exploration business in decades! And Ethos Capital is smack dab in the middle of it all.

    The soil sampling work on the Ethos ground will be underway next month in June.

    Third, ECC has the ability to make news year round and will not be negatively affected by the seasonality situation in the Yukon. The company’s Mexican assets are extremely well heeled for a potential big discovery as well. These projects are located within one of the most prominent silver belts in the world and are known to host huge tonnage, very economic mines. ECC will keep our news flow coming year round as work also progresses in Mexico where we already have some initial success with exploration. ECC will be updating us very soon on their projected activities in Mexico that will commence as activity in the Yukon begins to subside later this fall.

    Fourth, based on our tight share structure and low market cap (58 million, 51 million fully diluted times $1.14), any exploration success in the Yukon or Mexico will have a “greased lightning” effect on our share price. To help you understand this just look at Kaminak Gold who now has a market cap of roughly 250 million (74 plus million shares fully diluted times the current share price today of $3.40.

    Just one solid drill hole for Ethos in the Yukon could easily drive our share price north of $2.00 or more. Even at $3.00 a share our market cap would only be 150 million. ECC represent great value with big upside potential.

    What investors need to understand is that things are heating up in the Yukon and work will soon be underway. The current market sell-off is giving us a great opportunity to buy the companies with the best chances for exploration success and Ethos is now listed as a STRONG BUY up to $1.30 a share. Please take advantage of this situation.

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