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GOLDEN HOPE MINES (TSXV:GNH) Confirms High Grade Intersection of 64.1 g/t Au (Gold) over 1m Read More

The screen metallic analysis returned 82 g/t Au for an average grade of 93.5 g/t Au.
Two additional fire assays on the original pulp done prior to the screen metallic analyses returned 0.22 g/t Au and 0.12 g/t Au for an average fire assay grade of 0.41 g/t Au. The weighted average of all the fire assays and screen metallic assays from this 1-metre section in hole BD2011-184 is 64.1 g/t Au.

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Message: Fundamentals of Junior Gold

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jordie

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Fundamentals of Junior Gold

posted on May 28, 08 12:23PM

Highlights:

Gold correction most probably over (bottomed out at $850)
Junior sector just recovering from deepest over-sold condition since late 2002
CDNX has started outperforming gold over the last few weeks
Previous bottoms in CDNX/GOLD ratio were being characterized by sharp up-moves that lasted for many months
CDNX/GOLD ratio charts leave plenty of room for a giant up-move that could last for more than a year
Sentiment in junior sector has hit an all time low. This is a dream scenario from a contrarian perspective.

Reasons why juniors will be watched (by major gold producers and investors):

The industry is not replacing the reserves it is mining every year
High grade mines are running out of ore.
Even with gold at $1000/oz , it still takes four to seven years to open a mine.
The industry isn't going to be able to respond immediately to higher gold prices.
Reserves will be depleted in less than 10 years at current annual production rates
The industry needs some major new finds desperately. Since 1999 only a very few world class gold deposits have been found.
Majors are forced to acquire juniors because of the need for more reserves
Juniors making discoveries are phenomenally profitable.