Liberty Gold Corp (LGDTF)

[Picassa]

Fronteer has a huge land position in Nevada, second only to Newmont, and is consistently announcing high-grade results from its 100%-owned Long Canyon Mine. It has been impressing the markets by expanding the mineralization to the northeast, and in its last press release it showed high-grade mineralization to the west. This is demonstrating to the mining community what an incredible deposit this is becoming and how it is open in multiple directions.

The recent results also validate Fronteer's move to acquire Auex Ventures in order to take 100% control of this asset. Fronteer has not just discovered a mine, it's discovered a whole new trend in a mining-friendly jurisdiction near infrastructure. This mine has the potential to get huge. Drilling results are continuing to expand high-grade intersections of around 10 grams per ton. Now,with the recent transaction this past week of its Michelin Uranium Deposit, Fronteer is in a strong cash position and is the largest shareholder of Paladin Energy (PALAF.PK), a world-class uranium miner. This provides Fronteer with liquidity. At any time it can raise money through selling shares and not diluting shareholders to build its gold discoveries.

Paladin is the eighth-largest producer of uranium with a pipeline of uranium projects and is in a strong financial position. This is an investment for shareholders who believe we're in the beginning of a uranium bull market. I believe in a couple of years, the price of uranium will move much higher, placing Fronteer in a financial position to build world-class gold mines without needing financing or diluting shareholders. It also gives a concrete value to any potential suitor in case it should want to purchase Fronteer. Fronteer’s books have about $120 million of cash and around $250 million of Paladin Energy, an impressive balance sheet for an emerging-mine developer.

http://seekingalpha.com/article/243356-smaller-explorers-vs-major-miners?source=email_watchlist