Value Microcaps Junior Miners

[checkmate28]

LC Re GORO Have a listen to the recent conference call where a caller asked just that question- Where did the gold go? Start at the 44:12 minute mark. You might want to send that over to Otto.

http://www.goldresourcecorp.com/content/conference-calls/1603850_08-06.wav

The difference in the produced gold number and sold gold number, is the cut that the smelter-buyer gets for his service and theirby the answer to the missing gold question.


I bought a nice piece of GORO last week on a stink bid just over $2
The drop happened after the operational results showed lower grades and production numbers that were due to mine development issues plus a short strike from one third of the union workers. 47% of the production was from development ore. Previous to that, shares suffered due to the institutional selling and the class action lawsuit that was settled. I expect these shares to be up 50 - 100% within 12mths even if gold stays here as these were temporary mishaps that provided a temp dip in price. The shares have been beaten down hard and the risk reward ratio is looking good.

My thesis is that GORO has spent the last 2 years rehabbing the mine and mill, theirby doubling production capacity from cash flow. Additionally the Aguila mill currently has a ready to go leach circuit being tuned up that will provide even more production capacity and growth.

They have the new switch back zone feed the current mill to max capacity, plus a lot of very good drill results from a few different property's they can use to feed the leach circuits.

Recently they commissioned a new dory facility that will decrease refining costs from 9% down to 1% for about 40% of their production.

So large increases in mill and mine capacity plus decreased costs should equate to record production and increased cash flow IMO with an added bonus for price of silver and gold going up. IMO each quarter should contain more and more of this increase and prove out this under valued situation.

JMHO
CHECKMATE 28