Two Gold Stocks For One

Published: Tue, 12/05/17

 

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The “Perfect” Gold Stock?

Columbus Gold (CGT.TO; CBGDF.OTCQX) is a rare two-for-one opportunity, with a big, advanced gold project ready for a takeover and a portfolio of prime Nevada exploration projects.

That portfolio is about to get the attention it deserves by getting spun out into a new company called Allegiant Gold, led by Nevada legend Andy Wallace.

Invest in Columbus Gold today, before the imminent spinout, and get both Columbus and Allegiant in your portfolio!

If you’re a serious gold stock investor, you’re probably looking for one of two things:

1) A company on the brink of discovery...
2) Or a company with a large, undervalued and advanced gold resource. (Bonus points apply if the asset would be attractive to a big offer from a major mining company.)

But it’s impossible to find a “perfect” gold stock that offers both, right?

Well, take a look at the facts below, and you’ll see that Columbus Gold (CGT.TO; CBGDF.OTCQX) today checks all the boxes and more.

In fact, it’s like getting two gold companies in one....

A Mountain Of Gold

Columbus Gold is a recommendation in my weekly paid publication, The Maven Letter.

Gwen Preston is the Resource Maven.

Maven means ‘a trusted expert in a particular field who seeks to pass knowledge on to others.’

Gwen has a deep base of knowledge and a broad network of contacts in the resource sector. She understands which projects and pieces of news matter. She appreciates what it takes for a project to move from exploration to development to production and what opportunities each stage offers. She knows how the metals markets work and how to profit from commodity cycles.

Gwen chronicles her thoughts, buys, and sells each week in The Maven Letter, a subscriber-supported newsletter.

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Here’s why I recommended the company last year: Columbus Gold’s key asset is a mountain of gold — literally, their 4.8-million-ounce project in French Guiana is called Montagne d’Or, which translates as “mountain of gold.”

But this project isn’t just a resource: A full-scale feasibility study outlining a mine churning out 237,000 oz. gold a year is done. The metallurgy is simple. Locals want the mine. Odds are good the deposit will still grow.

Major miners are desperate for new ounces. They need to replenish their reserves by adding big deposits that could be shovel ready in the near term. But after a five-year bear market stopped most projects in their tracks, there are very few gold projects that fit the bill.

As a feasibility-level project able to produce 237,000 ounces of gold annually – enough to move the needle for even the largest of the world’s gold mining companies – Montagne is a clear M&A target.

A major miner is going to build this project. It’s just a question of who – and that question will get answered over the next year or two, as the project moves through permitting and likely attracts a takeout.

So with Montagne d’Or, Columbus Gold gives shareholders exposure to whatever miner ends up buying this big, advanced gold project.

That alone makes Columbus Gold very attractive. But here’s the kicker...

If you invest in Columbus before December 11th, you also get in early with a brand-new company about to start exploring a prime portfolio of 14 US exploration targets.

December 11th is when Columbus will spin out Allegiant Gold. Anyone who owns CGT shares on that Monday will get one Allegiant share for every five Columbus shares held.

Montagne d’Or is reason enough to own Columbus, but buy in ahead of December 11th and you’ll also get exposure to dynamic new explorer headed by a Nevada legend with plans to drill no less than 10 projects in the next 12 months.

They already have one gold deposit that could get bigger and just finished drilling another project that could produce a new discovery. These two projects alone backstop Allegiant’s valuation.

CLICK HERE for an in-depth report on Columbus Gold that assesses all angles of the Montagne d’Or project and the opportunity inherent in Allegiant Gold

And then there are the other 12 other projects, 11 in Nevada and three in Utah and Arizona, all handpicked by exploration legend Andy Wallace.

No one knows Nevada gold better than Wallace. He discovered a number of multi-million-ounce gold deposits that later became gold mines, some of which are still producing today. And over the last ten years Wallace has been quietly acquiring his favorite Nevada exploration properties and putting them into Columbus Gold.

Wallace has prospected, mapped, and sampled these properties. He ran geophysics, generated geologic models, and delineated drill targets.

All he needed was a corporate directive to get going – and now he’s getting exactly that – and with it a chance to make another big gold discovery.

Columbus gets zero value for its Nevada portfolio because it gets completely overshadowed by the “Mountain of Gold.” By spinning it out, the market is going to see the value and potential in this incredible portfolio.

And Wallace is going to get the money and focus to explore his hidden cache of prime gold targets.

Some experts I’ve talked to expect that Allegiant will be worth at least half as much as Columbus in short order. I won’t hazard a specific prediction, but I will say that spin outs like this are known to immediately unlock hidden value.

And with an aggressive plan to drill 10 of these highly prospective projects in 12 months, that odds are good that Allegiant could also hit into a new discovery. If that happens, the valuation potential increases immensely.

This is a rare two-for-one deal: Buy one stock and get two companies.

One company gets you exposure to early-stage discovery and resource growth in one of the best gold jurisdictions in the world; the other is likely to be acquired by a mid-tier or senior at a premium to market.

But you have to act now. You have to be a Columbus shareholder of record as of December 11. I urge you to act without delay.

Note: There is much more to this story. For my in-depth report on Columbus Gold, covering everything there is to know about the Montagne d’Or project and the opportunity inherent in Allegiant Gold, CLICK HERE.

Thanks for your time.

Gwen Preston

Editor, The Maven Letter

CLICK HERE for an in-depth report on Columbus Gold

 


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Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader.

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