2020-07-06 21:23 ET – In the News
Jay Taylor, in the June 16, 2020, edition of Gold, Energy & Tech Stocks, refreshes his buy of Goldsource Mines Inc., recently 12.5 cents. Mr. Taylor said buy nine times from Feb. 12, 2014, to April 17, 2020, at prices ranging from seven cents to 22 cents. Assuming a $1,000 investment for each of the nine buys, the $9,000 position is now worth $8,550. Goldsource has been drilling its Eagle Mountain gold project in Guyana. One of its most recent highlights was a 27-metre intersection grading 1.72 grams per tonne gold. While this result “apparently didn’t knock anyone’s socks off,” Mr. Taylor reminds investors not to get hung up on splashy intersections or a lack thereof. The most important thing is whether a mine can be profitable. Mr. Taylor is confident that Eagle Mountain will clear this bar, based on Goldsource’s trial mining experiment a few years ago, which demonstrated pleasingly low costs. The company is now working to expand the resources at Eagle Mountain to support a more extensive mining operation. It plans to release an updated resource estimate later this year, at which point Mr. Taylor expects the market to “wake up to a valuation that is several if not many times higher” than the current share price. Buy.
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