Patriot Gold Corp (PGOL)

[howestreetbull]

Gold Investment Letter's comments on yesterdays announcement...hsb

Good Evening,

This is very interesting news (full press release linked below). This is a very exciting development for investor's in Patriot (PGOL) and should make those of you who have been watching and/or new subscribers take notice as well.

Canamex, Patriot Gold's JV partner on the Bruner property in Nevada received a $2.5MM investment from Hecla Mining today. And, it seems, the Bruner project is the main focus and reason for the investment. Read this from the PR:

"Greg Hahn, the President and COO of Canamex, stated: "A $1.5 billion+ NYSE-listed company, Hecla Mining Company is one of the largest and lowest-cost silver producers in the United States with over a century of experience building and operating mines. We are delighted Hecla has chosen to enter into a strategic relationship with Canamex. Hecla brings a wealth of exploration, development and operating history to the relationship, which will be invaluable as we move our Bruner Gold Project forward."

This clause confirms that Bruner is the priority: "Pursuant to the subscription agreement with Hecla, at least 75% of the proceeds from the Financing will be used in connection with the exploration and development of the Company''s Bruner property in Nevada, and no more than 25% may be used for general corporate purposes."

Patriot is in the cat bird seat regarding this property. Currently owning 100% until Canamex earns in for a 70% interest by spending (I believe it's $8MM but it may be slightly less) further cash on drilling, then Patriot flips to 30% but has no funding requirements until this money is spent. They have a similar deal with Northern Vertex (NEE.V) on their Moss property in Arizona, which has a 43-101 compliant resource of just under 1 million ounces of gold. Patriot trades at a tiny market capitalization of $6MM currently and , we believe, is drastically undervalued at 23 cents a share.

Someone else is going to pick up on this story....it's imminent. The investment thesis is too good, filled with both steak (Moss) and sizzle (Bruner). This is the type of scenario you want to be a stakeholder in before Canamex releases more drill results. If they extend this ultra high grade discovery from July, and the drilling continues to grow the resource in the future, Hecla could buy both companies interests out at multiples of their current paltry market caps.If Bruner were to flop, you still have Moss hedging your risk. I think this one is just a matter of time.

Here's the full release: http://finance.yahoo.com/news/.....00719.html

Best,

Eric




875 North Michigan Avenue suite 3100, Chicago, IL 60611, USA

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