Dear Investors:
In a recent interview with Streetwise Reports, Brien Lundin commented on Comstock Metals Ltd. The past year was a very tough one for the junior gold mining sector. In this interview with The Gold Report, Lundin says that the past year has, in fact, put many gold mining companies on the bargain basement shelf. He shares some advice on end-of-year portfolio repositions and talks about some of his favorite stocks that he believes are poised for a rebound in 2013.
We thought you'd be interested in reading Brien Lundin's comments on Comstock Metals. Please see below for more.
TGR: Another company you follow is Comstock Metals Ltd. (CSL: TSX.V). You see more promise in the recent drill results from the company's QV project in the Yukon than the market does. Give us your thoughts on that.
BL: Comstock is a case where expectations were really high before the first drill results came in. The results were actually quite good, but not quite up to the elevated expectations. So the share price sold off, which was unwarranted.
The first results showed the potential for a nice sized deposit at the VG Zone. Importantly, the company also outlined a number of other drill targets from soil sampling and trenching. The real key for Comstock will come with next year's exploration program. The company's geologists plan to mount a comprehensive attack on all those highly prospective targets.
I think Comstock is a longer-term story. It's not going to be built on a few drill holes or even a couple of rounds of drilling. It's a project that has a number of very exciting targets. It's a cross between the Underworld Resources story, which had the Golden Saddle deposit just about 10 or 11 kilometers to the south, and the Kaminak Gold Corp. (KAM: TSX.V) story not far away. Kaminak had a number of anomalies that it had to drill off and is only now starting to connect those anomalies with mineralization.
There's a lot of potential in Comstock. I see some very exciting analogs in the area and the mineralization that it has seen so far is very, very similar to that at the Golden Saddle discovery by Underworld. That discovery was a big winner for Gold Newsletter readers, when Kinross Gold Corp. (K: TSX; KGC: NYSE) took over Underworld at a big premium.
TGR: One hole cut 89.9 meters of 2.34 grams per tonne gold. Could this be a bulk tonnage starter?
BL: That wasn't a very deep intersection, so it could be bulk tonnage. People tend to feel that the grades in the Yukon have to be very high even for a bulk-tonnage or an open-pit deposit for the economics to work. But this whole area is becoming ripe with new discoveries and infrastructure will follow, and, at some point, it's also going to be ripe for consolidation. So I think that the current grades are very close to what a company would need to make a deposit work in the Yukon.
To read the entire interview with Brien Lundin, please click here
With a career spanning three decades, Brien Lundin serves as president and CEO of Jefferson Financial, a highly regarded publisher of market analyses and producer of investment-oriented events. Under the Jefferson Financial umbrella, Lundin edits and publishes Gold Newsletter, a cornerstone of precious metals advisories since 1971. He also hosts the New Orleans Investment Conference, the oldest and most respected investment event of its kind.
To view Comstock's new Corporate Presentation, please click here