eResearch Issues Update Report on Grandview Gold Inc.
TORONTO, ONTARIO, Sep 19, 2008 (Marketwire via COMTEX) -- Grandview Gold Inc. is a gold-focused exploration company, with properties in three prominent North American gold camps: (1) the Carlin Trend in Nevada; (2) the Red Lake Gold District in north-western Ontario; and (3) the Rice Lake Gold District in south-eastern Manitoba.
The current adverse market environment has resulted in the share prices of many junior mining companies, including Grandview, falling 70% or more. Excluding the one-day spike last September to $1.40, the stock's normalized high over the last twelve months was $0.98. Thus, the stock is down 87%, and severely depressed. Despite trading at fire-sale prices, the Company's fundamentals remain intact.
On the Carlin Trend, the Company's neighbours include the world's two largest gold-producing companies: Barrick Gold Corporation and Newmont Mining Company.
The Company's Pony Creek property on the Carlin Trend has an Inferred Resource of 1.4 million ounces of gold, although this resource estimate is not NI 43-101 compliant.
Once the price of gold starts to recover, the shares of gold exploration companies, including Grandview, should benefit. However, to reflect current adverse market conditions, we are lowering our one-year Target Price from $1.35 to $0.65 per share. Our Recommendation remains Speculative Buy, and the shares are suitable only for high risk-tolerant investors. This Press Release was prepared by eResearch and was not vetted by Grandview Gold Inc. Further, the Recommendation and Target Prices contained in this Press Release and in the Update Report are strictly those of eResearch and, due to securities laws, are not endorsed by Grandview Gold Inc.
eResearch is a primary source for professional investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential of reaching millions of global investors through our extensive electronic distribution network.
Grandview Gold Inc. paid eResearch a fee of $20,000 + GST to conduct research on the Company, on an Annual Continuous Coverage basis.
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Bob Weir, CFA
Director of Research
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