Replies to post #32006 on Value Microcaps Junior Miners

[nsomniyak]

Now all they (Crocodile Gold) need to do is merge with Dundee Capital...:)

[dr_airtime]

NMI.TO - **Link back to my last post if you haven't**

Link back to my last post as one of my must-read posts of 2015 for a must-own gold producer if you want sector exposure. Technical chart suberb and I am crossing fingers for pullback for initial position in what will hopefully be a multi-year hold, adding along the way.

Elevator pitch is that this that an all star Vancouver-based management-board team acquired Crocodile Gold and plan on using this platform to consolidate producing gold assets. Bringing the company to the TSX and it currently trades cheaper than all the Canadian underground producing companies on every metric, but arguably should not as in Australian dollar has been hammered about 10% lower (relatively) to Canadian dollar in last year (Gold priced in $USD vs. costs in $AUD).

For a quick intro look as slides 22 for valuation (Metrics - these are conveniently unchanged since September so undervaluation is overstated) and slides 25 for examples of the calibre of management-board.

http://www.newmarketgoldinc.com/assets/docs/presentations/newmarket-gold-corporate-presentation-oct-v9.pdf

This is highlights the of recent drilling on flagship Fosterville mine growth resources with this quote from the CEO making the production grade sound similar to Abitibi Canadian underground producers (Richmont, Lakeshore, Kirkland):

Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: "In the first half of 2015, exploration drilling completed at Fosterville resulted in the discovery of the Eagle Fault in the Lower Phoenix gold system, a new zone of significant visible gold mineralization proximal to current mine infrastructure. Recent drilling targeting the Eagle Fault, and other structures, continues to intersect high-grade gold mineralization containing visible gold with mining currently extracting ore from these structures which contributed to record mill grades of 6.4 g/t Au in Q3, 2015. Since its discovery, we have seen the Eagle Fault continue to expand which is encouraging as it has strong potential to add to our mineral reserves and resources."

http://finance.yahoo.com/news/newmarket-gold-exploration-success-fosterville-113000847.html

[dr_airtime]

NMI.TO - More thoughts from Denver Webcast.

Newmarket correcting today and went as low as $1.40. Consolidated at 1.40 for a few months and was at 1.40 during time of Denver webcast below so it's still cheap.

My previous post had the Precious Metals Summit Webcast (the CFO shines in his knowledge of mining IMO) and my comments below are from the Denver Gold Forum webcast with CEO.

Notes from Denver webcast with CEO. I've bolded the blue sky he discusses at each of their 3 mines below . Apparently there are "7 analysts visiting mines in November" so time could run out for current opportunity which is simplt revaluation (6 month time horizon)

http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2015/09/17/newmarket-gold-inc/play/stream/16027

- 50% of AISC trend decrease in last year operational, 50% $AUD weakness

- Still cheaper than “Abitibi underground comparables”. Denver presentation SP was at 1.40. Back to 1.45 today so the comps in presentation mostly apply.

- Flagship fosterville is refractory and they use a bio-ox plant and get 89% recovery. Average grade to date has been 5.85 g/t

-Fosterville discovery in Eagle Zone (8:00 minute mark) is 12g-100g and appears to be free gold (non-refractory)

- Cosmo mine in second year of underground ops at 3.3 g/t. Mine 800k tonnes/year and makes money at this rate. Put in 13 holes and outlined 400m by 400m zone which represents a new mining front. 160m drive to get into this zone that represents production upside.

- Stawell – old mine and produces 30k oz/year. The mine produced 100k oz/year for 20 years. Now they simply mine remnant pillars @ 5g/t and keep minimal reserves. Makes 7-8M in Free cash flow pear year and they think they can go for 4 more years.

- Key to Stawell is new discovery in Aurora and East Flank. 7g/t over 17m; 13.7g over 6M. Driving towards a drilling ramp now. Blue Sky is CEO says “they think they have the same footprint as original Stawell mine (produced 2M oz)” in Aurora/East Flank.

-Management and Board owns 10% and has invested $14M.

-Performance Share Units for management and 1/3 vests if stock goes to 2.25, 3.00, 3.75 so mgmt. aligned with shareholders. This is over the next 3 years. This is pretty unique only to CanadianCo junior mining world.