The “Perfect” Gold Stock? The perfect gold stock investment is a company with a large, undervalued gold resource...and drills turning on targets that could yield big new discoveries.
But where to find such a gold stock?
The facts show that Columbus Gold (CGT.TO; CBGDF.OTCQX) may hit the bullseye. Dear John, If you’re a serious gold stock investor, you’re probably looking for one of two things: 1) A company on the brink of discovery...
2) Or a company with a large, undervalued and advanced gold resource. (Bonus points apply if that company’s assets would be attractive to a big offer from a major mining company.) But it’s impossible to find a “perfect” gold stock that offers both, right?
Well, take a look at the facts below, and you’ll see that Columbus Gold (TSX: CGT) today checks all the boxes and more.
In fact, it’s like getting two gold companies in one.... A Mountain Of Gold Columbus Gold is a long-time recommendation in my monthly paid publication, Gold Newsletter. And here’s why I originally recommended the company years ago: Columbus Gold’s key asset is a mountain of gold — literally, their 4.8-million-ounce project in French Guiana is called Montagne d’Or, which translates as “mountain of gold.”
But this project isn’t just a resource: A full-scale feasibility study outlining a mine churning out 237,000 oz. gold a year is done. The metallurgy is simple. Locals want the mine. Odds are good the deposit will still grow.
Major miners are desperate for new ounces. They need to replenish their reserves by adding big deposits that could be shovel ready in the near term. But after a five-year bear market stopped most projects in their tracks, there are very few gold projects that fit the bill. As a feasibility-level project able to produce 237,000 ounces of gold annually – enough to move the needle for even the largest of the world’s gold mining companies – Montagne is a clear M&A target.
A major miner is going to build this project. It’s just a question of who – and that question will get answered over the next year or two, as the project moves through permitting and likely attracts a takeout.
So with Montagne d’Or, Columbus Gold gives shareholders exposure to whatever miner ends up buying this big, advanced gold project.
That alone makes Columbus Gold very attractive. But here’s the kicker... If you invest in Columbus before December 11th, you also get in early with a brand-new company about to start exploring a prime portfolio of 14 Nevada exploration targets. December 11th is when Columbus will spin out Allegiant Gold. Anyone who owns CGT shares on that Monday will get one Allegiant share for every five Columbus shares held.
Montagne d’Or is reason enough to own Columbus, but buy in ahead of December 11th and you’ll also get exposure to dynamic new explorer headed by a Nevada legend with plans to drill no less than 10 projects in the next 12 months.
They already have one gold deposit that could get bigger and just finished drilling another project that could produce a new discovery. These two projects alone backstop Allegiant’s valuation.
And then there are the 12 other projects, all hand-picked by Nevada exploration legend Andy Wallace.
Wallace has discovered a number of multi-million-ounce gold deposits that later became gold mines, some of which are still producing today. No one knows Nevada gold better than Wallace. And over the last five years Wallace has been quietly acquiring his favorite Nevada exploration properties and putting them into Columbus Gold.
Wallace has prospected, mapped, and sampled these properties. He ran geophysics, generated geologic models, and delineated drill targets. All he needed was a corporate directive to get going – and now he’s getting exactly that – and with it a chance to make another big gold discovery. Columbus gets zero value for its Nevada portfolio because it gets completely overshadowed by the “Mountain of Gold.” By spinning it out, the market is going to see the value and potential in this incredible portfolio.
And Wallace is going to get the money and focus to explore his hidden cache of prime Nevada gold targets.
Some experts I’ve talked to expect that Allegiant will be worth at least half as much as Columbus in short order. I won’t hazard a specific prediction, but I will say that spin outs like this are known to immediately unlock hidden value.
And with an aggressive plan to drill 10 of these highly prospective projects in 12 months, that odds are good that Allegiant could also hit into a new discovery. If that happens, the valuation potential increases immensely. This is a rare two-for-one deal: Buy one stock and get two companies. One company gets you exposure to early-stage discovery and resource growth in one of the best gold jurisdictions in the world; the other is likely to be acquired by a mid-tier or senior at a premium to market.
But you have to act now. You have to be a Columbus shareholder of record as of December 11. I urge you to act without delay.
Note: There is much more to this story. For an in-depth report written by my friend Gwen Preston on Columbus Gold and its Montagne d’Or project, including a detailed analysis of the opportunity inherent in Allegiant Gold, CLICK HERE. All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
CLICK HERE for an in-depth report on Columbus Gold | 