Research & history is an adventure at the keyboard and computer screen in this day and age and where it can lead or what one may discover is 'THE' adventure in itself. With the hours spent formulating my last editorial on Shandong 'Kingdom of Gold' www.goldrea.com/ShandongChina.pdf I had many such adventures and travels thru China's golden ages. From the philosophy of Confucious or reading of ancient Chinese Gold mines and treasures to the era of Gold mining in China today, I managed to traverse thru various epochs all entwined with the ageless and eternal yellow metal.
Indeed even in this our modern age of distorted and misplaced values no one should be even remotely surprised that in the here and now of 2005, Gold is still as much a treasure and a store of wealth as it was in the year 260 of China's Han Dynasty. We may even now be returning to an age where Gold will be restored to being the ultimate wealth of Nations and back in the people's consciousness again as it always should be. Many listeners are cynical when it comes to this kind of talk, just as they are cynical about entering into business or mining ventures in a foreign land of which they know little about or in which they refuse to see the winds of change. Now I won't revert to quotes from Confucious here as I did in the last piece, but I would give you a quote from the well read author Oscar Wilde when defining a 'Cynic' he said…."A Cynic is One who knows the price of everything and the value of nothing"
Myself I believe investors in the junior exploration mining industry should not be cynical about the value as well as the potential and safety of western companies venturing into China and many other parts of the world to search and mine for Gold or any other minerals in this day and age. There is a saying about how money goes where money is and nothing could be more self evident than the flow of untold Billions of dollars into China today from outside their once closed borders. I'm sure you like myself have read the reports of men like George Soros investing mega dollars in China, or read the writings of Jim Rogers and his expectations or listened to his public speaking symposiums on what change China and the Indo-Asian nations will bring to the future valuations and not unlimited reality of the finite commodities our planet has to offer. There was a time when I myself would be the first to say hogwash, this time it is not any different, especially when it comes to scribes heralding again and again the major moves in Gold about to unfold. I've heard those utterances and rants far too many times in past years and in the end nothing was different. Nothing other than the names of the players who gambled and lost based on their well & rightly perceived reality of fundamentals but held a poor sense of timing. You know and I know whether through insight or experience, timing is everything in the unpredictable game of speculation. Better a day early than a day late as the saying goes. If you subscribe to this attitude then you must also believe in the adage of "Fortune favors the bold".
So does it take boldness coupled with vision and a whole lot of due diligence to take that leap of faith that can make you money? Ask the men I have previously mentioned here or the likes of Warren Buffet. Obviously most of us are reticent to compare ourselves to the likes of these power players, but they themselves also had humble beginnings and with an uncanny sense of timing and vision they like many of the world's wealthy men and women took leaps of faith to attain that same wealth.
In my previous and somewhat amateur writings on Molybdenum, Gold, China and Papua New Guinea I have never placed a disclosure at the end of my reports even though the companies I consult for have been disclosed and in some cases the report even carried links to their respective websites and I feel obligated at this time to state why not. First because there was no recommendation to invest in any of them or even pursue any DD. Secondly because I only represent or consult for companies that I have done extensive research on w/ respect to management history and their respective projects, my thinking was that others will eventually hear or read elsewhere of the company I am involved with relative to the editorial being read and come to similar conclusions after close review. Based on the overwhelming amount of emails I receive after one of my editorials is published I am prone to believe that is exactly the end result. One point that I must impress upon those who choose to read my reports is… "I will NEVER represent or recommend any company or management team until I am personally satisfied of their ability, integrity, honesty and project fundamentals or potential". Having been a Gold miner, prospector, claims staker/vendor, and involved in mining projects in many parts of the world whether on the ground personally in the exploration, to being an IR consultant or looking for the one or two winners in a thousand projects that will become a mine as a private investor, I have my own high level of criteria to be met.
This editorial is intended to not only reinforce your confidence in mining ventures in China, and in particular Shandong province because of it's history and potential for rich mines at depths as yet untapped, but to give you a sense of who this writer is and what credentials I bring to my reports. No one should think that my opinions are mine alone. Myself like so many of you, I follow the wisdom of the writers and analysts who believe we are in a PM and base metals bull market the likes of which will amaze the uninitiated and eternal bears. A $500.00 near term target for Gold is just the tip of the looming iceberg on the horizon in my personal opinion. In the years ahead I believe we will see four digits ahead of the decimal point when we check the daily spot price of Gold, and that point in time may not be all that far off from my viewpoint.
Money WILL be made by those with physical ownership of Gold, but the REAL money will be made by those who hold junior mining stocks of merit.
Holding physical Gold & Silver to me is an ultimate insurance policy, not an investment.
Owning shares in a mining company that has not as yet, but may, in the near future become a producer of Gold is where the leverage is. Now is the time to find and invest in those companies!
One such company that I have found thru extensive DD and research, and subsequently become a consultant to is Goldrea Resources Corp. The management CEO/Pres. Larry Reaugh has a history of past mines brought into production and the (China) property/project has as much merit & potential as one could ever wish for. Envision if you will a Canadian Jr miner JV'd with a Chinese Corporate partner who owns and operates a modern existing mine/mill with infrastructure worth many millions of dollars. A Gold mine (Shandong-Daye) that has repeatedly over the last number of years produced an average of 65,000 oz of Au p/yr from a small open pit operation in an area (Shandong Province) that in 2004 produced 30.4 % of all the Gold mined in China. Now let's get to the real kicker. Shandong-Daye mine is owned by China Rushan Group and China Rushan is Goldrea's JV partner. Shandong-Daye mine is running out of ore grade rock in the current pit and the JV owns the ground under and around this entire pit/mine operation. The mine itself is capable of milling 2500 T p/day, but has gone from 1750 T p/day down to 300 T/p/day for lack of ore. Old drill work from years past by China Rushan shows a 2500 M strike zone to the west of the pit and with very widely spaced drilling and very few holes an inferred reserve (not yet proven 43-101 compliant by Goldrea Resources Corp. *see disclaimer below*) of over 707,000 oz (approx. 22 T) of Gold. Recently Goldrea's first two infill drill holes near the current pit had assays & intersects of as high as 8 to 14 grams p/T over many meters. (Cross section drawing of Pit/drill holes @ link) www.goldrea.com/fig3.pdf
With the very favorable and equitable structure of the Goldrea & China Rushan JV agreement and Goldrea having permits and business licenses in hand (facilitated by the Chinese JV partner) the potential for Goldrea to become a small to mid-cap Gold producer in the next 8 to 12 months is enormous. The potential for infill drilling and further exploration of this largely unexplored to depth, 650 sq km claim block to hold reserves in the millions of oz is also enormous. Bob Moriarty and Mike Hoy, both of whom I am acquainted with (Mike & myself are associate consultants for Goldrea) and both of whom have my utmost respect in terms of their integrity, research and writings have been on site at the mine & have seen first hand the entire operation in Shandong and subsequently called the JV project a slam dunk deal for Goldrea.
Well this should be the final report on the potential of Shandong China and the "Kingdom of Gold", but definitely not my final word on Goldrea Resources or their project there. If your due diligence like my own leads you to a similar set of conclusions and high comfort level regarding Goldrea Corp and the Shandong project then you will be keeping an eye out for future company news releases and or commentaries by myself, Moriarty or Hoy and invariably other writers as well on the success and progression of Goldrea from explorer to producer of Gold in China. Personally in my view I envision in the not so distant future, a Goldrea Resources that is paying dividends higher than what the current share value is. I could go on for a few more pages here touting the merits of this play and the company, but then I'm not making the investment decisions for anyone other than myself so the ball is now in your court and time is wasting for you to start and complete your own necessary and all important personal research and due diligence. A seed must be planted before a garden grows. You be the researcher, the gardener and the harvester all in one. Hopefully I have given you enough information from which to start this all important process.
Email: ykgold@telus.net
Ph: 403-844-2914
Independent Investor Relations & Reasearch Consultant.
Adanac Moly Corp.
www.adanacmoly.com
Goldrea Resources Corp.
www.goldrea.com
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*Disclosure: The author does receive a monthly remuneration in companies I represent and as well as share options. I may from time to time personally own shares in those same aforementioned companies.
*Disclaimer: The author's intention by the penning of this editorial is for no other purpose than to invoke an interest in the reader to do his/her own due diligence on the company therein mentioned. The author is not an accredited investment advisor and is not soliciting the buying or selling of this or any other company stock.
*Disclaimer regarding SEC 43-101 Compliance Rules: It must be emphasized that this Chinese Report regarding the 'Inferred' 22 T (707,000 Oz Au) pre-dates the establishment of National Instrument 43-101 ("NI 43-101"). It uses categories that are not in accordance with NI 43-101 and cannot be considered to be NI 43-101 compliant. The company (Goldrea Resources Corp) will be required to conduct its own exploration programs to confirm, verify and make NI 43-101 compliant the historical estimates.