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« Democrats poised for US election gains | Main | KINROSS GOLD CORP: Decent set of results »
Sunday
Nov052006

SILVERADO: Adds another 11% on Friday

silv1


On the 30th October 2006 we reported that we might just be in for a pleasant surprise! Wow! This gold mining stock has rocketed up the chart.

We wrote about Silverado getting closer to the Mother Lode on the Nolan Heights just a week ago and then a buying frenzy started. We have to say that we were not amongst the buyers as we are already in position on this one. So we had no effect on the price but others have certainly pilled in.

silv2

Is the buying spree over? We do not think so. Why?

Well the Market Capitalisation for this company is around $49.0 million.

Silverado have invested more than $40.0 million into the Nolan Heights project.

The have a round $1.0 million or so in gold

All of the drainage channels that they have explored have contained gold.

This is a famous gold mining area.

The scientific indications are that they could be close to a major discovery.

(They also have the green fuel side of the business, which if the Democrats get in could see alternative forms of fuel in a brighter light.)

There are many companies out there with not much more than a nice address in Vancouver and a few ideas. Some of these companies are selling at large premiums when compared to their assets. Where as Silverado has something going for it and that’s why we are investors.


On the downside they may never find anything, but that applies to a lot of gold mining ventures. The average volume for the last 10 days is 3.3 million shares traded, on Friday 7.1 million shares changed hands. So the stock price could come back when the volume drops, we will wait and see.

Go gently as always, but at 8 cents a share it is still a bargain in our very humble opinion.


05 November 2006

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