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Emgold: Small Market Cap Gold Mine Developer
The ticker symbols are:
US Pink Sheets symbols: EGMCF.PK, EGMCF
Canadian Vancouver exchange: EMR.V, V.EMR
http://www.emgold.com/s/Home.asp
http://www.idaho-maryland.com/s/Home.asp
Emgold July 2012 Corporate
Pesentation:
http://www.emgold.com/i/pdf/CorporatePresenta...ion_Jul2012.pdf
As of July 1, 2012
Shares Outstanding: 58,814,504
Fully Diluted including all options and warrants: 99,703,570
Share Price: .09/share CDN
Market Cap: $5.3 million
CDN equivalent to $5.3 million US.
Emgold's last feasibility
study projected their Idaho Maryland mine being economically profitable with
gold prices at $420/oz. At $1600/oz., this leaves $1200/oz. as pure
profit.
They plan to be able to
produce up to 200,000 oz./year, giving a profit of about $240 million/year.
For a $5.3 million market cap
company, this is an incredible opportunity and value. They need to
raise around $125 to $175 million to start mining, and payback would be in
less than a full year of mining, but it might take up to year five to reach
full production.
The company might be able to
earn over $1/share, and this is a company that might rise in value 100 times
from today's share prices. It may well rise to $1/share by financing,
and up to $10/share at full mining production.
The reason this project is
overlooked, I feel, is due to the fact that the gold market is just getting
started, since less than $1 in $1000 in America is yet being spent on
physical gold. Only about $1.6 billion is spent on Gold American
Eagles, which represent about a third of the gold sold through our gold and
silver bullion shop at target="_blank" www.jhmint.com.
So, about $4-7 bilion is spent on gold in the USA, out of maybe $18,000
billion possible, which indicates that only about $1 in $3000 is being spent
on gold annually. Gold is an overlooked, and undervalued market, and
gold stocks are an even more overlooked market.
As gold prices have climbed,
gold stocks that have lagged the gold price must certainly slingshot upwards
in value to catch up to their true value, and Emgold is one of those stocks.
Emgold also was overvalued in
2006, when mining stocks in general hit their prior peak, and since then,
Emgold stock has come down significantly in price.
Emgold owns a lease on the
Historic Idaho-Maryland Mine.
Historically, the
Idaho-Maryland Mine was the second largest gold mine in California, and
produced 2.4 million ounces of gold at a recovered grade of 0.43 ounces per
ton from 1862 to 1956.
The Idaho-Maryland deposit has
current measured plus indicated resources of 472,000 ounces of gold, and
inferred resources of 1,002,000 ounces.
The Idaho-Maryland deposit
represents a world class gold property. The potential resource target is 3 to
5 million ounces of gold, subject to mine dewatering and additional
exploration.
Emgold is completing an
Environmental Impact Report to reopen the Idaho-Maryland Mine to ultimately
construct a 2,400 ton per day underground gold mine with potential to produce
over 200,000 ounces of gold per year.
The mine consisted of 72 miles
of tunnels with workings to a depth of 3,280 feet below surface.
Underground mines within a
three mile radius of Idaho-Maryland Mine produced 13 million ounces of gold
from 1850 to the mid-1950’s.
Project history:
Emgold originally acquired the
Idaho-Maryland Mine in the 1993 and completed an Environmental Impact Report
to dewater and explore the mine in 1996. The Company temporarily abandoned
the Project in 1999 when the price of gold fell below $300 per ounce.
In 2002, with rising gold
prices, Emgold re-acquired the property. By 2006, the Company completed
exploration drilling, geological modeling, and other technical work,
including an NI 43-101 Technical Report.
In 2005, Emgold commenced
permitting activities to reopen the Mine, including dewatering, exploration,
operation, and reclamation.
The City of Grass Valley was
chosen to be the Lead Agency to permit the Project under the California
Environmental Quality Act and Surface Mining and Reclamation Act.
I live in Grass Valley.
This is a real historic gold mine in a real historic high grade gold
district. The numbers are real. The town has on display many of
the high pressure hose nozzels that were used to strip mine the hills in the
area with hydrolic high water pressure, of the type that was outlawed in the
late 1800's. The gold is so rich in this area, many people even today
bring in placer gold on a nearly daily basis into our shop, and there are 5
other dealers in town buying placer gold found in local streams and rocks.
Required SEC disclaimer:
I own Emgold stock, and nobody has paid me to write about Emgold. I'll
earn money only if the stock price goes up.
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