J.Taylor's Energy & Energy Tech Stocks (01/30/2010)

"In your editor's view, NioGold Mining (TSX-V: NOX) has the potential to continue building its gold resource into the multi-million ounce range given following factors:

• Gold mineralization along the major faults zones in Quebec and Ontario extend to great depths. So far, most of the resources have been calculated to a depth of 200 meters with the deepest holes going to 630 meters, which is still very shallow compared to the depth from which gold has been mined in these systems.
• There are many zones on surface that have yet to be tested. Most notable in that regard is the area between the Marban Mine and the Malartic Mine to the North.
• Other Quebec Projects in the Area not show on the map also have great exploration potential and can be focused on later after the company brings its Malartic area property up to an optimum level where its economics come into focus.

With 64 million shares outstanding and a price of C$0.33, this company has a market cap of only about C$21 million and nearly 1 million ounces of gold in the ground. Those ounces can rise dramatically with an aggressive drill program being planned over the next year or so. We can't generally view a 'C' progress company with the same level of comfort we usually assign to a producer or a company that has established solid economic potential. But, given its low market cap, likely ability to grow its resources substantially in an area that arguably has the most pro-mining government in the world and that has all the infrastructure required for mining, we think NioGold offers speculative investors great upside potential from its ongoing exploration efforts, assuming as we do that the gold bull market will remain in place for at least several more years."
For more independent commentary, click here: NioGold Mining Corp. TSX-V:NOX;OTC:NOXGF.pk