Santa Fe Gold Corp (SFEG.OB): Among the many reasons the
former President of Exxon Minerals might feel as strongly as other
investors, in a promising emerging resources play, could include the $6 Billion or so in-ground assets, this company has amassed under the tenure of another Exxon Minerals former head of a special exploration task force credited with its early successes.
It was the undervalue of Santa Fe's original Mica and MIO reserves, that
initially attracted the former Exxon Minerals protégé and highly accomplished explorer, Dr W Pierce Carson who has as yet since, wasted no time in adding billions in value to Santa Fe's growing in-ground reserves and gearing up for full Gold and Silver production with strong directive and mission statement upon his engagement to Santa Fe, bringing with him, a potential bounty of 24 attractive acquisitions, four of which have so far been achieved.
Upon his nomination to the board of directors, former President of Exxon
Minerals with his accomplished record of growth and responsibility for
establishing and managing Exxon's very successful domestic and
international minerals exploration programs that still today rank among some of the largest in the world. He brings a wealth of experience and prestige to the board of Santa Fe Gold Corporation, and had this to add:
"I am excited about this challenge and eager to assist in assessing new
opportunities and bringing Santa Fe Gold's assets to fruition. Pierce and his team have done a terrific job over the past several years. With the Summit silver-gold deposit now ready to proceed to full production and the Ortiz gold project in the pipeline, I believe the company is poised for significant growth. These are exciting times for our industry and for Santa Fe Gold and I am pleased to contribute to the company's future success for the benefit of all shareholders."
Dr. John E. (Jack) Frost has over 50 years of international mining experience in a wide range of metallic and non-metallic minerals and has been closely involved in the discovery, evaluation, development and/or acquisition of more than 40 commercial mineral deposits. As principal of Frost Minerals International, Inc. since 1986, Dr. Frost has provided management and consulting services involving acquisitions, minerals exploration and mining. From 1967-1986, he worked for Exxon Minerals Company and its affiliates in a number of senior management capacities, including president and director of Exxon Minerals International.
With a current market value of just $60 Million and a stock price of about
$0.70, Santa Fe would appear to have considerable upside potential,
as begins to close the gap on its real value approaching one hundred times what it is currently worth today. According to a reliable source, on a previous occasion, Dr Frost, upon joining another company's board, that same company's stock rose from $0.70 to $20 or so, in short order...
When one considers what Santa Fe represents today, with Silver and Gold
reserves approaching nearly three million ounces and with Gold prices over $800 per ounce, any further acquisitions will begin to place Santa Fe as a contender to being a mid-tier mining conglomerate and that combined with CEO Dr Carson's pledge to monetize every last ounce of Gold, Silver or other minerals the company currently holds or fully intends to acquire and with a string of positive reports on the company from renowned analyst strong buy rating and initial target of $3 per share, it's not hard to foresee Santa Fe differentiating itself from other Gold issues over the coming months and rising sharply as it gears up for full Gold and Silver production from its Summit Silver Gold mine in New Mexico and its potential to leverage its cash flow to additional production.
With an impressive list of major and institutional shareholders including a Swiss Industrialist, of enviable, if not formidable investment reputation who has taken a nearly 25% stake in the company through his desire to fund the Summit project in its entirety, the future would appear to bode exceedingly Golden for Santa Fe, in fact we believe his investment will eventually be worth $400 Million plus in due time as this story unfolds.
The company is incredibly highly leveraged to an increasingly bullish outlook for Gold, Silver and Minerals.
(Special thanks to Gary and Toby Hansen for this report.)
Note: The above report is the opinion of its author and is not to be considered a solicitation to buy or sell any security. Always do your own diligence and consult with a licensed financial planner before making any investment decision.
Futures & Options Broker