Sagebrush Gold (OTC BB: SAGE) and Levi Straus
Itís an old metaphor, but it undoubtedly applies here. As much as the world is distinctive, tried and true ways to make money in small stocks have survived the test of time, and Sagebrush Gold appears to be a strong contestant for a massive profit.
So, what do Levi Strauss and Sagebrush Gold have in common? Simple- they both knew how to yield money from a Gold Rush.
although the recent pullback in the price of GOLD (which is likely to spin back up in short order), thereís a global gold rush going on out there. With GOLD around $1500 per ounce, itís amazingly productive to pull the stuff out of the ground, and there are dozens of "light on their feet" junior mining companies moving to take lead of these high prices.
Itís like a 21st Century version the California Gold Rush in the mid 1800?s.
Thousands of miners flooded the California mountains in 1849 looking to stake their claim and get rich. It was a relentless lifestyle. consequently, how many of them got rich? Very few, but one guy figured out how to create a fortune without ever sticking a shovel in the ground.
Working with picks and shovels all day long was pretty physical stuff. Levi Strauss found some really tough fabric- Denim- and instead of sewing all the seams together, he actually riveted the fabric to make it tougher. To serve the 49er Miners, Levi Straus made-up blue jeans- the first pants that would hold up longer in that hostile location.
A few miners got rich, but Levi Strauss made more money than every single one of them. They all bought his denim jeans before heading up into the mountains. A few miners got rich, but the suppliers got stinking rich.
So, what does this have to do with Sagebrush Gold? pleased you asked.
Nevada has the richest gold deposits in the continental US, and thereís a bunch of junior mining companies staking their claims. They are a bit more experienced than the Miner 49ers, but itís the same idea all over again.
Like Levi Straussís blue jeans, Sagebrush Gold has something they all will in the long run need, and few of them have. Sagebrush Gold just dropped a cool $20 million on this facility, and it gives the company a competitive advantage in the junior mining world of Nevada.
Sagebrush Gold (SAGE) Drops $20 Million on Gold Property and Processing Facility
On August 31 SAGE announced it dropped a cool $20 Million to pay for the Relief Canyon Gold Project in North Central Nevada- right in the middle of Nevada gold country. SAGE paid $12 million in cash, and the seller took $8 Million of the money in secured debt.
The Relief Canyon Gold Mine was operated by Pegasus Mining from November 1986 to September 1990, and is estimated to have produced 100,000 ounces of gold. At todayís price of about $1500 per ounce, it would equate to $150 Million in revenues. The company plans to mine in the untaken infrastructure, and expand outwardly to a number of very promising areas in their immediate district.
In my belief, what sets Sagebrush Gold distant from all the other Nevada based junior mining companies is the following. The Relief Canyon acquisition includes a complete dispensation facility! This is the one Junior Mining company that actually has not only the aptitude to mine for gold, but the capability to process it as well.
The acquisition integrated a primary/secondary crushing system, a screening plant, a portable conveyer, a leaching pad, pond/pipes and pumping, a processing plant, offices, and a warehouse.
The processing plant sets SAGE aside from all the other junior miners. There a dozens in commission in the neighborhood, but none of the juniors have the processing facility.
When the Miner 49erís headed into the mountains in the middle 1800?s, they had to break off and see Levi Strauss on their path to acquisition their denim blue jeans with the riveted seams.
Todayís gold rush miners want to get their ore processed. Theyíll be stopping by Relief Canyon in North Central Nevada, and the company stands to make a fortune- just like Levi Strauss- without sticking a single shovel in the ground.
However, this company will be doing that as well.
The Sagebrush Gold "First Look"
$1.03 on Friday, but $1.50 back in June. In my view, the stock is going back to the $1.50 level it traded to in June in short order.
We have the "pole position" on this one. I expect hundreds of thousands of investors will discover about this company in the next few weeks, and OTC Journal members have the leading look. Thatís why I put this idea out on Sunday- to give you the first look.
NYXO, AAGC, TKDN, and GCLL- all profitable trading ideas in the last 4 weeks as I released from the Pole Position.
I see no reason why SAGE wouldnít follow suit with all the others. Letís make it 5 in a row.
SAGE is categorically separated from the pack with its processing facility and successful mining history.
Geologic estimates on their existing resource is over 150,000 ounces of gold- $225 Million in revenues based on $1500 per ounce gold.
This group spent $20 million to purchase a "turnkey" operation, and it plans to turn the keys in very rapid order, so I assume there will be a lot of activity and news gush coming out of this one in the near term.
I think you can easily accumulate this one up to $1.15 to $1.20 this week, and look for $1.50 in the near term.
Remember, you have the pole position, so take advantage of it.
Accumulate up to $1.15. Short term target (30 days) $1.50. SSL: $.85- certainly worth a $.15 to $.20 risk to watch this stock head move backward to its previous high.
Letís make it 5 in a row this week.
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Sagebrush Gold Stock Review
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