Wall Street Grand Report
We have a new 5 Star Stock that we want everyone to research as soon as possible while it has dipped to atrractive levels. The company we are referring to is PC Gold Inc. (TSX: PKL.TO) currently at 63 cents.
The company website is http://www.pcgold.ca/en
PKL holds 100% ownership of Pickle Crow, one of Canada’s best known past producing gold mines, located in northwestern Ontario in a belt of rocks well known for its rich gold deposits. PKL believes there is considerable gold left in place within or close to the mine, and a major exploration program is unfolding with the objective of quantifying what remains, and making new discoveries.
The potential to revitalize old Ontario and Quebec gold mines has been recognized by other present-day resource companies such as Goldcorp, Detour Gold, Osisko Mining and Kirkland Lake Gold, all of whom have achieved success with the old mine redevelopment model. PKL recognizes similar potential at Pickle Crow, and intends to follow the same path trodden by its peers with the re-exploration and redevelopment of this well-known past producer, at one time among the best known underground gold mines in Canada.
Pickle Crow consists of a mix of contiguous patented and non-patented mining claims covering a total of 4,117 hectares (10,173 acres). The core area encompassing the past producing Pickle Crow gold mine has dimensions of approximately 4 km SW-NE by 1.5 km SE-NW, and comprises 98 patented mining claims covering 1,532.9 hectares (3,788 acres). Pickle Crow has easy road and air access with excellent infrastructure already in place including power generators, 3 shafts, 2 winzes and some 40 kms (25 mi) of workings, 250 tpd mill, on-site office, tailings sites, mine dry facility, communications, water.
Nearby housing, educational, medical, recreational and shopping facilities, labour, industrial supplies and services.
To see photos of the Pickle Crow please go to - http://www.pcgold.ca/en/Photos_-_Oct_2010_98.html
Now here's where it gets interesting...
Pickle Crow produced 1.47 million oz gold during the years 1935-1966 and only closed because the price of gold fell to $35 per ounce making it unprofitable to continue production. A major exploration and development program commenced on Pickle Crow late in 2007, and was accelerated subsequent to PKL's IPO in May 2008. PKL’s overriding goal is to demonstrate the existence on the property of a substantial compliant gold resource, and to grow that resource base as much as possible by expanding known gold zones and generating new discoveries. These goals will be pursued by, firstly, quantifying what remains within the historical workings; secondly, by drilling lateral to and below the historical workings; and thirdly, by drilling new targets located away from the core of the old mine. Last quarter, PKL had 55 million shares outstanding and a solid balance sheet with $9.55 million in cash, NO DEBT, and a book value of $0.81.
In our opinion, PKL is extremely undervalued!
Earlier this month, PKL announced that it raised over $10 MM in a PPM at $0.90 PPS. After the private placement, PKL now has about 66 million shares outstanding and a market cap of $43.56 million with a cash position of $19.55 million.
Based off fundamentals if we subtract PKL's cash position from its market cap, the Pickle Crow property is currently being valued at only $24 million when it previously produced 1.47 million ounces of gold!
Think about this...
This means PKL is currently being valued at only $16.32 per previously produced ounce of gold, when gold is currently close to all time highs near $1,400 an oz!
In March, PKL made a run from $0.68 to a high of $1.90 for a gain of 179% in just 5 trading days, after their drilling indicated a major discovery of extraordinarily high grades of gold at moderate depths right next to existing workings. In our opinion, based on PKL's drilling during the past year, Pickel Crow has the potential to contain a multi-million ounce gold resource once again. I believe most of the gold at Pickle Crow still remains in the ground and there is huge potential to return this property into one of the TOP PRODUCING gold mines in Canada!
After the recent big dip in PKL this could potentially be a huge buying opportunity, in our opinion. We could see PKL dip a little more before making a turn around but this is a LONG-TERM play so either way we feel the gains could be significant.
Start your research on PKL.TO and stay tuned for more info.
We will have a huge new gold discovery coming this weekend so get ready!
More Updates To Come ...