GTX GLOBAL (fka GTXC)

[KITTYTEK]

Hello jamstah, hope your doing ok!! what do you think of this stock i found. sounds to good to be true but you never know.
A 'Stellar' Opportunity


If any of you aren't already aware of the recent nosebleed rise in
price of Paramount Gold's stock, I suggest you take a look (PGDP.PK
6-month Chart). I myself was unaware of Paramount Gold until
mid-December of this past year, when I was fortunate enough to acquire
a position at $.86/share. Paramount Gold now trades at $3.58/share
just a few weeks later (closing 1/18/06). Now don't misunderstand me,
I'm not promoting Paramount Gold, this report is about the little
known American Stellar Energy (AMRS.PK). I've since sold my position
in Paramount Gold to lock in gains, and I've reinvested a portion of
that money into AMRS.

One thing to recognize is that Paramount has the ability to raise
substantial amounts of money in short order, as evidenced by their two
recent above-market financings, which together raised $1 million. This
is extremely good news for their JV partners, and AMRS is partnered
with them in 2 of its 4 properties.

AMRS currently trades at $0.099/share (closing 1/18/06), and has about
62 million outstanding shares. This equates to the very modest market
capitalization of $6.14 million. Contrast this to Paramount Gold's
over 30 million outstanding shares at $3.58, making for a market
capitalization of $107.4 million.

The First Property in which American Stellar Energy is Joint-Ventured
with Paramount Gold is the San Miguel Groupings:

The San Miguel District is made up of several concessions and past
producing mines known individually as San Miguel (the head of the
group), Santa Clara, La Blanca, San Luis, El Carmen, Swanick, Sangre,
Sangre De Cristo, Guadalupe De los Reyes, San Juan, El Rosario,
Empalme, Las Tres S.S.S., and Las Tres B.B.B.

The JV agreement will allow Paramount Gold to acquire a 70% interest
in the property, AMRS retaining their 30%. Paramount currently has the
rights to 25% of the property. In order to exercise their full rights,
Paramount must:

*

Pay AMRS a total of $400,000 ($300,000 paid thus far) to acquire
35% interest.
*

Issue to AMRS a total of 700,000 shares of their stock. (300,000
are being issued to AMRS at this time)
*

Spend a total of $3.5 million on exploration work, plus other
payments.
*

Pay AMRS $50,000 or an equivalent value of its shares annually.

Paramount is planning to commence an extensive drill program on the
San Miguel property in February of 2006.

The Second Property in which American Stellar Energy is Joint-Ventured
with Paramount Gold is La Blanca (adjacent to San Miguel):

At La Blanca, previous drilling indicates a block of over 6 million
tonnes, grading 4.7 ounces silver per ton, and .013 ounces gold per
ton. That's over 28.2 million ounces silver and 78,000 ounces gold, of
which bench mark metallurgical testing shows that recoveries of 90%
are possible using flotation (a relatively cheap and easy way to
extract the gold and silver).

With 90% recovery, that's 25.4 million ounces of silver and over
70,000 ounces gold.

Bill Reed, Paramount's exploration officer, stated that "We are
planning an extensive drill program that I believe will not only
validate this resource, but add significantly to it."

In fact, it has been concluded by Paramount Gold that tonnage can be
increased 2-3 times by exploring below the current level of penetration.

Bill Reed was the former Chief Geologist (1998-2004) for the Mexican
subsidiary of Hecla Mining.

Paramount is planning to commence an extensive drill program on La
Blanca in February of 2006.

This agreement allows Paramount to acquire a 70% interest, AMRS
retaining their 30%. In order to fully exercise their rights,
Paramount must:

*

Pay an initial $50,000 to the property owner (done).
*

Pay the property owner an additional $960,000 within a 10-month
period commencing January 31, 2006.
*

Make 80% of all future property payments.

If Paramount chooses to exercise its full 70% interest in both
properties before year-end 2006 (which seems very likely), then the
total compensation to AMRS would be:

*

700,000 shares of PGDP, currently (closing 1/18/06) valued at
$2.51 million US.
*

$50,000 US yearly.
*

80% of all future property payments on La Blanca.
*

A virtual free ride on exploring the historically prolific San
Miguel Groupings as Paramount will be spending $2.5 million on
exploratory costs.

The 700,000 Paramount shares alone represent over 40% of AMRS's
current market capitalization! That's pure profit which could be
realized in less than 1 year from now!

There is a hold time of 1 year on the 700,000 shares. As to what might
be done after this period, I can think of two options:

*

Sell them to fund operations
*

Distribute them to shareholders of AMRS as a dividend.

American Stellar Energy also owns 2 other properties:

La Currita:

*

Active mine, with a 150 ton/day mill.
*

Currently generating revenue of about $110,000/month.
*

With the proposed plans to upgrade the mill and ramp up
production to full capacity (currently running at about one-half), La
Currita operations should easily cover all company expenses in the
future and still show a profit.*

*AMRS has very moderate overhead costs with a high percentage of all
money going into the ground.

La Millionaire:

*

Looking for a strong Joint Venture Partner.
*

Outcrop portion of vein estimated at 1.8 million tonnes, grading
at 8g/tonne gold.
*

Mine tailings remaining from a previous small mining operation
are estimated to be 29,000 tonnes at 9.6g/ton gold.
*

Combined, the above numbers indicate that there remains at least
472,000 ounces gold yet to be exploited, with a fraction of the
property being explored to date.

It's only been a little over 7 months since Francis R. Biscan, Jr.,
President of American Stellar Resources, visited Mexico and acquired
the four aforementioned properties in May of 2005. With 2 joint
ventures already completed, and the continuing operation of the La
Currita mine (it was already producing when acquired), this represents
some fast and impressive work. And it appears we can expect more of
the same in the future.

Look for a name change in the near future. The probable change will
turn what is now American Stellar Energy to Tara Gold Mining Corp.
This change alone will bring much more exposure to the company as it
clarifies the company's position and objective. The "Energy" in
American Stellar Energy used to stand for the oil and natural gas
properties* that the company once owned, but they have since been sold
in order to focus on the mining of silver and gold in Mexico.

*Currently, management has no plans to become involved again in oil
and natural gas properties.

Francis Biscan has a number of contacts in Mexico, and this allows him
to scope out attractive properties and bring them to the table for
Paramount and others to consider. Thus, the plan of the American
Stellar is simple: discover promising mining opportunities, work out a
JV with a partner, and begin realizing significant cash-flow once the
properties are brought into production or bought-out. Thus, when all
is said and done, AMRS will be able to reap significant profits while
spending very little capital.

It's simply amazing that Paramount is valued almost 18 times more
highly than American Stellar, when their JV arrangements call for a
70/30-split interest. Furthermore, American Stellar Energy has two
additional properties (100% owned), including a producing mine, as
well as one other property that is in the works.

In contrast, Paramount Gold has one other property, the Linda Property
in Peru, within which they can only become 51% operator according to
the terms of the JV arrangement between Minera ABX Exploraciones (a
subsidiary of Barrick Gold) and themselves. Besides, this Peruvian
property seems to be in an early stage of development, and it also
appears that the majority of Paramount's value lies in it's two
Mexican properties, within which they are joint-ventured with American
Stellar Energy.


Valuation

If AMRS were to be valued at 43% of Paramount Gold (30/70
relationship), it would then trade at around $.74/share, an increase
of more than 700% over the January 18, 2006 closing price.

I do not think this price is unreasonable, and I attribute the delay
of parallel price appreciation with Paramount Gold to a lack of PR
exposure. This problem should be solved in the near future, because as
soon as revenue starts to flow in and AMRS becomes a fully reporting
company, Francis Biscan plans to hire a respectable PR firm with cash.
The delay of hiring a PR firm up till now was the result of Francis
Biscan not wanting to dilute the share count any further.

For another valuation exercise, let's say that Paramount exercises
their full 70% rights to La Blanca, begins their intensive exploration
program, and eventually drill proves what could potentially represent
100-150 million ounces of silver. Using 125 million ounces, at a 1:60
price ratio between gold and silver (i.e. $9 vs. $550), the gold
equivalent within La Blanca would amount to almost 2.1 million ounces.

Once having accomplished the exploratory work necessary to prove the
in-ground reserves/resources, the goal of both Paramount and American
Stellar would be to sell the property to an industry major for a price
of around $125 per ounce of gold equivalent. Using the $125/ounce
buyout price and 2.1 million ounces of gold equivalent, a profit of
$262.5 million dollars would be realized from the sale of the La
Blanca property, minus any exploration costs in excess of the budgeted
$2.5 million (the obligation of Paramount Gold). Split 70/30, American
Stellar Energy would receive almost $79 million after the sale, an
amount equal to nearly 13 times their current market capitalization.
And remember that La Blanca is only one of American Stellar's four
properties!

Francis Biscan, President of American Stellar Energy, owns about 12%
of AMRS's outstanding shares, and he has avoided dilution by investing
hundreds of thousands of dollars of his own money into his company. He
doesn't plan on raising any significant funds until substantial price
appreciation occurs, and there is even a strong possibility that such
fund raising will never again be necessary due to very low cash
obligations, which are currently:

*

$65,000 in the next six months for the San Miguel property
payment (paramount pays the remaining 35,000). This payment will again
come due after an additional six-months, but more than likely the
payment will lesson to either $45,000 or $30,000, since Paramount is
likely to increase their percent interest in San Miguel.

*

After November 30, 2006, %658,000 spread over the next 3 years
for the La Blanca property (Paramount pays the remaining $2,632,000)

That amounts to a maximum cash obligation of $130,000 over the next
1-year period, and more than likely it will be closer to $110,000.
That's it, and it's entirely possible that the profit coming in from
the La Currita mine will be able to pay for this, meaning no need for
further dilution.

The Quick Facts:

There are currently:

*

No long term debt obligations.
*

No options outstanding.
*

No preffered shares outstanding.
*

1.4 million warrants exercisable at $.12/share, all expiring
3/15/06.


Excellent TA Charts
by Roy Martens
Daily and Weekly Analysis of AMRS

To conduct further due diligence visit:

www.americanstellarenergy.com
www.paramountgold.com


Active Message Boards:

Raging Bull AMRS
Investors Hub (IHUB)


Contact Information:

Francis R. Biscan, Jr.
Phone: [phone]
Fax: [phone]
E-Mail: [e-mail]
also, you know how to read these things better than i do.....

http://biz.yahoo.com/e/060131/amrs.pk10qsb.html