I really can,t believe our sp hasn,t gone up this week on Tues news about the Cueva Blanca (CB). Here we have a major interested in the CB with most likely an NDA signed with IGD and SLI. And I wouldn,t call Beunaventura, just any major. They own around 44% of the second largest open pit gold mine in the world. Here is a link to their profile so you can see just how important they are in Peru;
http://www.buenaventura.com/
Also, here is a link to Newmonts profile, one of the largest gold companies in the world;
http://www.newmont.com/about
Now, when I read that release the other day, the lines about Beunaventure jumped right out at me.
http://steliasmines.com/newsrelease/update-cueva-blanca-gold-property-in-peru/
Now take a look at this claims map from the SLI website for the CB;
http://steliasmines.com/projects/peru-projects/cueva-blanca-peru/
If this claims map is up to date, I don,t see any Beunaventura on there, but I do see Newmont, 1 of Beunaventures partners on the Yanacocha gold mine. Then we see Candente, the company that has around 10 NDA,s signed and is trying to sell its huge copper deposit, if the price is right, just to the north of us a couple km,s or less. Then, you see a few other Majors right there as well.
So, because of this crazy market, no one gets the picture or even took time to look, because it seems that fundamentals are right out the window, along with speculation. At this crazy time, can someone please tell me why all the gold stocks are down and some trading at $10 per ounce of gold in the ground? Fundamentals are gone in the gold stocks, but are alive and well south of the border with lots of speculation on top. Take Linkedin, trading on the NYSE today with a crazy P/E ratio of 1070.9! Does this really make sense? Looks like lots of bubbles in the markets, but I believe some golden green shoots are soon gonna have their day. It can,t continue,we are sitting on the threshold, the POG would have to come down to probably $800 for the valuations of some of these juniors at the present.
We know the majors are paying ~$100 per ounce gold in the ground. It costs on an average, around $700 to process an ounce of gold, leaving a large area for profit, once a mine is set up at todays POG. Should the POG skyrocket after some tumultuous event, there is gonna be one hell of a gap to fill from the present sp,s of the gold stocks, to the catch up to the fundamentals. The Majors definitely know this, and they are presently sniffing around for aquisitions of little fish or their belongings. Right about now, the CB is getting sniffed. What I find more interesting is the fact, why would such a small suggestion of gold in the CB bring out a big fish? Maybe its because the CB may have a sizable deposit ? A major would know by now that if Lori played her cards right, which I believe she did, no one can take out IGD or SLI, or any property, unless the price is right. So, if any major knew they were not gonna get a property from us on the cheap, why even bother, when there are whole lot more little fish in the sea for them to eat, that wouldn,t fight back? All I am left with is, the major must think that this is a valuable property and want to express their interest now, ahead of a possible flurry of Merger and Aquisiton activity. They know there is more than the couple hundred thousand ounces of gold on there that was suggested by previous work, not to mention the possibilty of copper. And what about the silver? We know Candente has identified 45 million ounces of silver on their property adjoing ours, to the north. Talk about the price of silver, that hasn,t even caught up to its historic ratio to gold yet, let alone if gold soars.
Courtesy of Hogs hard work, he has found a lot of older news and info on the CB, that at first glance, may suggest a lot more gold there than what I previously thought was suggested. I haven,t taken the time to try to piece all the new to me/us info together yet, but may try in the near future.
IMO, the news the other day should have put SLI up to around .70 by today. Its a crazy market when speculation is taken away from these small exploration companies that could be sitting on multiple world class properties of which one is being drilled right now with pending results. Like Buffet says "buy when there is fear", especially in some of these promising gold stocks that have been beaten up beyond fundamentals,speculation and promise.
IMO
