Categories: Precious Metals
Topics: General Precious Metals

Brent Cook on San Gold

 (excerpt from interveiw from theaureport.com)

TGR: Do you have any companies that are both the pure gold plays and also have margins?

BC: I don’t spend a lot of time on the big cap mining companies. There’s too much to really understand to get an edge over the competition. You need an edge in this business and for me that is understanding the fine geologic details that will either show up a fatal flaw or indicate a true discovery. So I stick pretty much to the smaller cap gold companies and, in fact, mostly the exploration-stage companies. Not many people put the time in to figure these early stage companies out.

I was very, very cautious last year and I will be again this year. I think it’s going to be very tough out there. The problem we’ve got is that it’s no longer a market where someone’s going to buy your mistake. You’re going to live with your mistakes. There’s a lot I’m following, a lot of things I look at and keep on my radar screen and watch, but there’s not that many companies I actually buy. Over the whole of last year, we purchased 13 stocks in the portfolio and right now we own 10. Just to plug myself here, I was down 12% on the year.

One company that I have recommended in the newsletter is Sangold Corporation (TSX.V:SGR). This is a small company in Manitoba. They’ve got a small reserve that doesn’t justify the market cap, and a good resource in the order of 1.2 million ounces. But most importantly from my perspective, a new discovery called the Hinge Zone #4 that is adjacent to the current operations—well, a kilometer away—and readily accessible. And this thing will run probably two to three times the average grade of the mine they’re currently working on. So we’ve got a small mining company that’s moving towards production with a lot of upside in terms of future discoveries. So I like that one.

TGR: If they’re moving towards production, do they have the capital to bring it into production or are they anticipating selling this?

BC: It’s in production right now but not up to speed. They’ve got the capital to improve production —I think they’re targeting 900 to 1,200 tons a day as things get going over the next few years. So it’s a small operation. These are underground veins. You can’t mine that much anyway without a lot more buildup of infrastructure.

The advantage is that they’re permitted, they’re in production, they’ve got a work force, they’re in Canada, and they’ve got fantastic potential to discover new higher grade bodies. If I’m a mid-tier to large producer, this is the sort of property I would want to buy. I think someone will look at this as an acquisition to add on to their current production because it’ll be high margin with lots of exploration upside.

Brent Cook Interview from theaureport.com at http://www.theaureport.com/pub/na/2147?utm_source=streamsend&utm_medium=email&utm_content=2624472&utm_campaign=The%20Gold%20Report%20%u2502Brent%20Cook%3A%20Turning%20Rocks%20Into%20Money

 

Brent owns shares in all of the companies discussed today.

Exploration Insights offers the sophisticated speculator independent and unbiased information analysis on the junior mining and exploration market.  It is written and produced on a weekly basis by Brent Cook, a veteran geologist and mining stock analyst. To learn more about subscribing to Exploration Insights visit our web site here https://www.explorationinsights.com/pebble.asp?relid=26

Testimonials

Rick Rule
Global Resource Investments, Founder
http://www.gril.net/default.htm
”Serious mineral exploration speculators should “employ” Brent Cook.  I’m supposed to be smart, and I paid him hundreds of thousands of dollars when he worked for me; you can get him for $140 per month! I got good value- imagine your potential returns. Brent is a no nonsense “boots on the ground” geo, not one of the “desk explorers” who cost the investment community so many millions. He can make you serious money with his buy recommendations, and save you much more, by counseling you on what to avoid.  Most newsletters are written by journalists, if they researched publishing investments, maybe they would be credible.  Brent is an exploration geologist, writing about exploration geology, what a wonderful, novel idea.  Do your portfolio a favor, subscribe!”

Robert Bishop
Editor, Gold Mining
Stock Report (1983-2007)
“Minerals exploration is a game of long odds and Brent Cook never lets his readers forget that.  After years of visiting mining projects with Brent, and liberally picking his brain when not in the field, I have gained the utmost respect for Brent’s views on rocks.  Market psychology, promotion, capital structure, people, and many other factors dictate whether a stock will rise or fall, but in the final analysis, the rocks always prevail.  Brent Cook knows rocks.”