GOLDBUGS AMEX Goldbugs Index (GOLD)

[YankeeAce]

I'm new to this board, but thought I would just mention my favorite gold play. WITM.OB just bounced off its bottom bolli and appears to be reversing back to $0.40-45. Nice story stacking up with two potential veins intersecting the Bater Hunter Mine here in Colorado. Initial assays confirmed the historical information so far and that is just around the first level. The true potential lies down around 700 feet below the surface which is still underwater. Since the mine stopped operations back in the 70's the shaft filled with water. Current dewatering has them down to about the 200 foot level. Much work to be done still with that.

The company is still in its due diligence period over the Bates Hunter Mine. The asking price is around $3M which the company should recoup in the first year or two of full production. Currently they are drilling to confirm the parallel vein and continued assays. IMO here is how it will play out. The parallel vein will confirm historical values as well. That should be announced this month. This summer the dewatering will speed up and the mine should be in production by the end of summer. By fall the company should announce that it is purchasing the property either alone or as a jv.

By the time the Bates Hunter Mine enters full scale production I expect this stock to be above $1. For the short term we should return to $0.40 within the month. I can't think of anything that would reverse the current uptrend. Should see some normal resistance around $0.45-50 unless breakout news comes before that. This one is good for a swing trade or long term hold. You will find some good information on the company's website. Chartist should love it because it bounced off the lower bolli and looks to be continuing to the top. Could see a breakout thru the top if timing works out the way I think it will.

Feel free to drop a few comments on the Wits Basin message board that I started under Basic Materials, before I saw this section. Not much discussion over there but I welcome any comments (positive or negative). Of course these are all my opinions and I suggest doing your own DD before entering a position. I do own a small stake in the company (wish I got more before the bounce). In case you are wondering I do not receive any form of compensation from the company. I just want to see what this Colorado mine has to offer and hopefully make some money.