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A rendezvous with discovery investing pioneer

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26 March 2008 @ 01:36 am EST
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MB: I visited War Eagle Mining Co. germanium and zinc mine in Chihuahua. It turns out that germanium is a very rare metal used in fiber optics and night location devices and so on. Their Tres Marias Mine high grade zinc, high grade germanium is very attractive. This is really an interesting play, and I think it's going to worth an awful lot of money. The stock is about 40 cents today very cheap and it's a stock that should be considered. In addition to the Tres Marias Mine in Chihuahua, there are a number of other targets that look like they're germanium as well, so it's a very interesting play and a good team.

Polymet Mining pulled a real coup. They acquired Cleveland Cliff s asset base in northern Minnesota. These include the iron ore processing facilities for a song. They have a very prolific ore body up there. It has PGMs, cobalt, gold and copper in it. They're waiting for environmental permission from Minnesota and I think they're going to get it. The stock is very cheap in the $3 range. The catalyst for Polymet will be environmental approvals by the state of Minnesota.

TGR: Can you talk about a couple of other gold names? You've mentioned Piedmont Mining Company, Inc. and Freegold Ventures

MB: Piedmont Mining is an incubator company. I started buying it at 6 cents it went up to 30 cents. It has since fallen back to 18 cents. They have a great management team led by Dr. Robert Shields and a good board of directors.

Their strategy is to have property exposure on the famous gold trends in Nevada. All their properties (they have eight) are situated on the various gold trends there. They are focused on gold although they may have some silver. I think they've got a great chance to make a discovery given the number of their properties, and the kind of people with whom they're doing joint ventures. This is an incubator company with the potential I like to find at the beginning of the discovery cycle. They have a great opportunity to create significant wealth. The share price is 18 cents and, if you are new to the game, you can buy 10,000 shares and it doesn't break you. Your risk to reward ratio is also favorable

TGR: What about Freegold?

MB: Freegold Ventures is a classic discovery play.CEO Steve Manz took it over, and he's done a great job with it he's going to be a great CEO. This was a 40 cent stock but they kept making discoveries, and eventually the market recognized that this was more than a micro cap stock, and they bid the stock up. The stock got as high as $2.70. It was hurt in this last down turn but it's very cheap.

One property is in Alaska and lots of gold has been discovered there, so I like Freegold's chances. I call them a mature discovery play rather than an incubator because they have made some significant discoveries. Once they start to pile up the resource, the market is going to wake up and say, Hey, wait a minute! This is more than just an ordinary stock, this is for real. When that happens, it's very exciting, and I think that could happen to Freegold.

I think Freegold has great potential. So does Polymet and certainly Midway. If somebody doesn't want to buy at the incubator stage because the stocks are just too risky for them, then look at Midway Gold, Freegold or Polymet. These companies are positioned to move higher with more discoveries, and they're maturing. So you cut your risks with them.

TGR: What about U.S. Silver, MacMillan, GoldCorp, Goldcorp and Kenrich?

MB: Let's start with Kenrich Eskay Mining Corp. I started working with Kenrich a couple of years ago. We flew up to see the famous Eskay Creek mine. On the 109th hole they found a mass of sulfide, and it was very rich. That mine just kept producing and producing many millions of ounces of gold and hundreds of millions of ounces of silver. And Kenrich Eskay has all the properties maybe 10 kilometers south of the Eskay Creek Mine.

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