Bottom Feeding Of Some Gold Mining Stocks
With last years sell off of gold stocks followed by tax loss selling in December, a lot of fair value stocks got smashed to 52 week lows. Some of the more resilient ones have rebounded quite nice. Premier Gold PG was one that rebounded to see a nice 50% gain. Silver miner Endevour EDR also saw it's share price move up 50% this month. These are just 2 of the more known stocks that are traded and have good volumes behind them. However,there are some small stocks out there that have great upside potential as well. One of those small companies with big upside potential is Angel Gold ANG. During the last month of 2013 the company did a roll back of 1 new for 10 old which brought their float down to 7.5 million shares OS. I personally am not a fan of roll backs but in this case for those who are looking at getting in, now would be a great time.
The company has it's main work area in Columbia SA. Columbia is probably one of the worlds most mining friendly areas and it also has a very rich history of mining and gold in particular. Angel's main property portfolio contains the El Cafetal Gold Project, a target-rich property with a history of production from high-grade veins. This area already has some heavy weights close by. Companies like Anglo Gold, B2Gold, Teck and Seafield are just a few. The El Cafetal Gold Mine is a 135 hectare mine area. Gran Columbian Gold GCM which is the owner of the Marmato deposit in Marmato district located a few KM away, reports an NI 43-101 compliant measured and indicated resource of approximately 7,490,000 ounces of gold and 47,956,000 ounces of silver in a total of 245 million tonnes of material, with an average grade of 0.95 gpt gold and an average grade 6.09 gpt silver.
The company also has 2 other areas of interest. The Heliconia Project claim and the El Pino West. This solicited area lies immediately north of the concessions making up the Gramalote project (B2Gold/AngloGold joint venture) and is crossed by south-east trending faults similar to those believed to control the emplacement of mineralization at Gramalote. In April of 2012 B2Gold announced an updated resource estimate of 2.5 million ounces of gold in 97.1 million metrictonnes of material.
Trading volumes in Angel Gold ANG are fairly light but with only 7.5 million shares OS it would not take to many trades to make the stock move up. The 52 week high was $1.80 and the low was 5 cents. At 10 cents today this stock could very well be a 10 bagger or even more. Those who wanted out are pretty much out and the stock is now seeing a new group of shareholders who see upside value. (added note) At these prices I am long ANG
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GAdams