Golden Minerals

[Picassa]

Golden Minerals is the one I just visited in Argentina, and I think that their El Quevar project is very interesting and has a lot of potential upside.

The company's market cap is still under $400 million, and I think it has a long way to go.

It is still drilling right now, and all the labs around the world are backlogged. It's already drilled 10 holes on the Carmen prospect and has been waiting for assays for roughly two weeks now.

So, the investment thesis on Golden Minerals is this: The Yaxtché zone contains 100% of the company's resources, which is roughly 60.5 Moz. silver.

Now based on recent drilling, the geologists on site believe they have two other sub-parallel zones to Yaxtché.

One is the Carmen target and the other is Mani (500 m south of Yaxtché). They are parallel to Yaxtché, and if the geologists can prove they are sub-parallel veins to Yaxtché, the resource estimate could even triple.

Right now, the company is completing a feasibility study on El Quevar. Once that's reported, we can model the mine very easily.

We can build a financial model of the mine that will make us even more confident in the number of ounces, as well as the production and cost numbers. I see the market cap easily doubling once that happens.

TGR: How large can this Yaxtché deposit be?

AS: If the sub-parallel zones are as big as the Yaxtché, about 180 Mozs. of silver.

Even if the zones turn out to be smaller, sub-parallel zones, I think Golden Minerals'

El Quevar can easily come up with more than 100 Moz of silver.

http://seekingalpha.com/article/242797-interview-precious-metals-expert-alka-singh-talks-gold-and-silver-producers-with-growth-potential