Red Lake Gold Inc. press release
Mathematically AM Gold Inc. Offers the Most Gold Insitu and Accompanying Overall Ore Value than Any Other Candidate
CSE - Canadian National Stock Exchange · Gold · Lithium · Uranium · Canada
Mining MarketWatch Journal has added AM Gold Inc. (TSX VENTURE: AMG) (Pink Sheets: ACERF) (frankfurt:AMX) to its 'Top Takeover Targets' list and published a review offering insight and opportunity afforded investors as AMG.V possesses significant intrinsic value, large resource growth potential, and is in the process of exposing additional serious potential value at an attractive share price. AM Gold Inc. was recently identified in a metal value content report by mining industry research analyst Dennis Boyko as one of the best intrinsic value bargains in the mining sector on a comparative market cap per ounce of gold equivalent and average ore value per tonne basis.
The full review may be viewed at http://miningmarketwatch.net/amg.htm online.
As a result of clarity on the ground in Peru with new mining law and the significant nature of its Pinaya gold-copper project, Mining MarketWatch Journal is adding AM Gold to its “Top Takeover Targets” list (the Mining MarketWatch Journal 'Top Takeover Targets' list also includes Guyana Goldfields (TSX: GUY), Premier Gold (TSX: PG), International Tower Hill Mines (TSX: ITH), Bayfield Ventures (TSX: BYV), and Pretium Resources (TSX: PVG)). At the tail end of September 2011, Peru passed three new mining laws. The new mining law provides clarity for mining companies, it modifies some mineral royalties and establishes a new legal framework for the industry. The end result is that Peru is now considered stable and mining-friendly, there is no uncertainty, and the level of interest from majors regarding junior resource deposits/projects of significance in Peru now is high. The new royalty is not prejudicial towards juniors and affects mostly the large established producers that had sweetheart deals that kept their royalty payments low. The AM Gold Inc’s Pinaya gold-copper project possesses 969,000 ounces gold and 610 million pounds copper in all categories, has high resource growth prospects, and on its own justifies a market cap for shares of AMG.V over $50,000,000.
AM Gold Inc. was recently identified in a metal value content report by mining industry research analyst Dennis Boyko as one of the best intrinsic value bargains in the mining sector on a comparative market cap per ounce of gold equivalent and average ore value per tonne basis. Boyko believes AM Gold Inc. is just about the cheapest gold junior out there today and an excellent place for investors looking to put their money to work in a company with real intrinsic value on two stable fronts. The Mining MarketWatch Journal review provides a link to Boyko's full comparative list of mining companies broken down via market cap per ounce of gold equivalent; according to the list (as of October 6, 2011) AM Gold Inc. has an ore value of roughly US$38 per tonne and market cap per ounce of gold equivalent of ~US$5.07 (see metal summary report and comparative list on miners for explanation of calculation methodology used). Only one other stock which Boyko tracks had a lower market cap per ounce of gold equivalent than AM Gold but Boyko dismissed the other stock due to the significantly lower ore value.
AM Gold's two fronts:
1) 100% owned Pinaya gold-copper deposit in Peru; AMG.V was first to the region and now finds itself surrounded by majors. The Pinaya possesses 969,000 ounces gold and 610 million pounds copper in all categories, broken down as follows: 152,000 oz Gold Measured + 464,000 oz Gold Indicated + 353,000 oz Gold Inferred & 57,991,000 lbs Copper Measured + 234,778,000 lbs Copper Indicated + 318,171,000 lbs Copper Inferred and also possesses near term open pit mine potential at Pinaya. The Pinaya gold-copper project possesses very large bulk tonnage potential, is favorably located, and has no NSR.
2) Red Mountain gold project within the Tintina Gold Belt, Yukon: In Q4 2010 AM Gold Inc. released a new NI 43-101 resource estimate on Red Mountain revealing 1,230,000 ounces gold (68 million tonnes grading 0.56 g/t gold inferred). This resource estimate appears to represent just the very tip of the iceberg at Red Mountain as the interpretation of the geophysics indicates the target size is very large and extends to depth. The project is in the same geological belt as Underworld and several very large multi-million oz gold type bulk tonnage open-pit world class deposits including gold producer Kinross's Fort Knox mine and International Tower's 12M oz discovery. The amount of gold AM Gold is amassing in the Yukon is astounding and the project now has the earmark of a world class gold deposit in the making with the potential to rival biggest area reference Fort Knox -- AM Gold’s target objective from a comparative exploration viewpoint is 10M oz plus as the published resource constitutes ONLY ~2% of that target area. The project contains a large aeromagnetic anomaly and AM Gold Inc. has aggressive plans to add to the estimate by targeting buried intrusive structure. 6000m of core drilling in Q3 2011 has extended mineralization 200m and confirmed a new gold zone, demonstrating the upside potential of this giant intrusive (full results are pending). All drill hole results from summer 2010 & 2011 exploration revealed a series of successful intercepts that have significantly extended mineralization, now ~1km along strike & 450m across.
The risk-reward characteristics are highly advantageous for investors establishing a long position in AMG.V as the current market cap of AMG.V relative to the inherent value of their properties seem disproportionate. Shares of AM Gold appear poised for significant upward price movement with only ~54M shares outstanding (~67M fully diluted) and is trading under CDN$0.50. AM Gold’s current in-situ gold resource (Market Cap/Oz Au In-Situ) valuation is one of the best bargains in the mining sector.
The full review may be viewed at http://miningmarketwatch.net/amg.htm online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
Contact Information: James O'Rourke Editor, Mining MarketWatch Journal
editor@miningmarketwatchjournal.net