This article was originally published on January 16 — the teaser pitch in question is still being actively sent and we’re still getting questions about it, so we re-publish it here for your information. It has not been updated or revised, the stock rose sharply in January around the time the ad started running, but has since been more or less flat.
Lots of questions rolling in this morning on the gold front… which probably shouldn’t be surprising, since gold has had a nice little run lately (up about 7% in the past month or so), and a rising gold price tends to get gold mining speculators a little hot and bothered, a state of affairs that is not missed by the promoters of mining-related newsletters.
Nothing sells a newsletter like profit lust, and it’s an even easier sell if you can manufacture the feeling that you’re getting in on something secret and special, just for you… which leads us to the latest pitch from Nick Hodge for his Wall Street’s Underground Profits newsletter (a relatively inexpensive letter, $99/yr). Here’s how the ad gets our juices flowing:
“Why NOBODY Knows About America’s Biggest Gold Discovery
“In this presentation, you’ll discover…
“The American deposit with 20 million ounces of gold — and why few have ever heard of it
“When news of this major discovery will be released to the public
“The tiny 50-cent-per-share miner with complete ownership of the mine… and how to buy in now for life-altering returns”
What more could one person want, right? Apparently it’s a stock Nick Hodge has been following for a while… more from the ad:
“I’ve spent the last five years studying this deposit and the tiny company that owns it….
“Officially, there are 6 million ounces of gold there now.
“Which alone makes it one of the biggest in America. But that’s just one part of the equation.
“This gold is…
“Cheaper to mine than almost any other in America
“One of the highest-grade forms of gold
“And incredibly easy to extract, with minimal environmental impact
“Plus, as you’ll see in a moment, approval for permitting is now virtually guaranteed.”
OK, so that’s a nice little crop of clues. Do we learn anything more about the stock from this ad? He does go on and on for a while… Hodge tells us the he has personally explored all 1,500 acres of the property, which is Idaho, that there’s “over three times more gold here” than the official reports say, meaning as much as 20 million ounces… and that this “tiny, virtually unknown miner has complete ownership” and trades for about 50 cents a share.
And, for one more clue — almost superfluous at this point, though we’ll toss it on the pile — we learn about one of the major backers of this mine:
“… billionaires are betting the house on this play!
“Like John Paulson….
“I’ve personally uncovered the billionaire legend’s NEXT big bet…Are you getting our free Daily Update
"reveal" emails? If not,
just click here...
“A bet unknown to the financial media.”
There’s more to the hinting, as Hodge lays it on pretty thick — he says that the permitting process will be smooth and easy because the miner says it can actually improve the environmental disaster left behind by previous miners on this same site… and that the mine also can produce a “critical strategic metal” called antimony.
So that’s about all the hinting we can stand, and the answer is quite clear — the Thinkolator doesn’t even need to shift into second gear to let us know that Hodge is (again) teasing Midas Gold (MAX.TO in Canada, MDRPF OTC in the US) and its Stibnite Gold Project in Idaho.
Which is, indeed, a pretty large past-producing gold mine (several mines, actually), with a nice resource base of 4.6 million ounces in probable reserves across three locations… and they do indicate in their latest investor presentation that they think they have potential upside to increase those reserves meaningfully as they upgrade historical resources and do more drilling to extend the defined ore body.
And yes, it is an unusually high grade open pit mine… and even at five million ounces, it would be pretty big. And it includes meaningful antimony resources, which ap