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« Kinross Gold Corp | Main | Agnico-Eagle Mines Ltd »
Sunday
Jun252006

US Gold Corp

US Gold is a small cap gold exploration company, based in Nevada, which has been home to mining for over 150 years. The company has been around for over 25 years however it went through a relatively static period in the 1990’s. This was to continue until Rob McEwen joined the company as Chairman and CEO, shortly after he purchased 33% of the company in July 2005.
Rob McEwen
Rob McEwen is the founder of Goldcorp Inc, which is now the lowest cost gold producer in the world, with a cash cost of $25 per ounce. Rob McEwen took Goldcorp form a market capitalisation of $50 million to over $7 billon and the company now produces about 1 million ounces of gold per year. However he has now turned his attention to US Gold and has said that US Gold, “are looking for Nevada’s next major gold discovery”. McEwen has over 29 years experience with the resource industry and an excellent track record, backing this venture. So far he has taken the company’s share price from 30 cents to over $10, a spectacular start. However some believe that this is only the beginning with many speculating that McEwen intends to create another Goldcorp, which is currently trading near $30 per share.

US Gold’s exploration program is based on the Cortez trend in Nevada. If Nevada was to be considered as a separate country, it would be the world’s third largest producer behind South Africa and Australia. Nevada’s gold makes up 10% of world production and 75% of America’s production. It is home to some to world most senior mining companies and largest gold deposits.

US Gold’s Tonkin Springs property is situated on 36 sq miles of Nevada’s Cortez Trend, close and parallel to the Carlin Trend, home to numerous gold deposits of up to 39 million ounces. The company in consolidating the trend as it intends to acquire four other companies in the region.
US Gold Corp Chart
In the last year this stock has done incredibly well, rocketing to $10.30 from $0.35 and the recent consolidation in US Gold’s stock price was to be expected after such a fantastic rally. However this presents as excellent buying opportunity at its current price of $8.40

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Reader Comments (2)

2 questions:
I understand that Kinross, bought Bema 5-6 years ago.

you quoted Goldcorp at 30.00. As we speak gg is selling on the NYSE @46.00 + change

O.Ikola

December 15, 2010 | Unregistered CommenterOsmo Ikola

Osmo,

This article was written in June 25th, 2006, so its a tad out of date now.

December 15, 2010 | Unregistered CommenterGold Prices

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