We are looking for a PEA to be released this month as well as some driulling results both of which are expected to give GIX a nice boost.
The Gold Report lists several positive analyst comments on GIXincluding John Kaisers below:
TGR: John, you understand geology better than most geologists. What exploration plays do you like?
JK:In terms of exploration potential, one of the areas I'm very keen on ishybrid base/precious metals deposits. Copper-gold porphyry projectsintrigue me a lot because I'm a bull on the continuing growth of Chinaand demand growth for copper. And I've already talked about how high Ithink gold could go. We need to develop lower-grade copper deposits,which require higher copper prices. I think strong copper prices in the$3–$6 range are the new reality.
One of the juniors I've got a strong open recommendation on is Geologix Explorations Inc. (TSX:GIX),which acquired the Tepal gold-copper porphyry project in southernMexico from a company that got caught in the financial meltdown.Geologix itself had its major project taken away during the meltdown butused its remaining cash to acquire Tepal, which has just below 100million tons (Mt.) of copper-gold mineralization.
Geologix isnow doing two things: 1) Working on a PEA to figure out what it takes tomine the existing resource as a modest copper-gold open-pit operation;and 2) Bringing geological talent to bear and using geophysical surveyson the surrounding area to see how this system actually works. There ispotential to expand the resource through exploration, perhaps evendouble it. That would mean they could scale up the mining plant.
Rightnow, the market is pricing Geologix as though it will be unsuccessfulwith further exploration. By buying Geologix, you're placing a bet ongold and cooper trending higher and a favorable PEA making it worth$100M or so down the road. That means the stock might go to $1 and gettaken out by another entity looking to add a copper-gold producer to itsportfolio. On the other hand, if exploration is successful, you couldsee this thing turn into a $200M–$300M asset, which, of course, wouldput the stock in the $2–$3 range—a 10-bagger from the current level.
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We've been beating the drum about GIX for a while now. Glad to see its getting the recognition it deserves.
Web site: http://cjrs.ca (See "Daily Notes" for some other ones we are following closely)
Twitter: http://twitter.com/qtrader
