Westgold Resources (WGR:ASX) - watch!

Gold prices are set to reach new highs in coming weeks. In the spirit of a gold rush, I have found another nice gold explorer. I'm a little late to the party on this one, but its a developing story, so its one to watch. Westgold Resources has identified a gold province adjoining the Tennant Creek gold fields of the Northern Territory. The NT has not produced much gold, though interestingly the Tennant Creek field generated 5Moz at an average gold grade of 17g/t, compared to more typical grades of 2-4g/t. More interesting still is the fact that Westgold has successfully reinterpreted this geological terrain and found gold in an adjoining area, with seemingly the same geological characteristics. The Rover 1 discovery was the first of many targets to be assessed. See the attached gold grades.

It is early days so one does not want to get too excited since there is a lot of money to be spent before anything is mined, but this is a promising discovery. You can read the presentation yourself, so you can see the potential, though it does not offer a great upside. I am not inclined to invest at this point because the stock has a premium attached to its exploration upside. It is capitalised at $110mil, but it does have $22mil in cash. Its justified but without having resources yet to back up that valuation, one is inclined to look elsewhere. But you have to love the geology. There is another good streaming presentation on their website.
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Andrew Sheldon www.sheldonthinks.com

Mining Fundamentals eBook - 2nd edition

Anyone interested in how we identify the best mining stocks in the world? Interested in how we find the best mining stocks during the current gold boom? Our Mining Fundamentals eBook is intended to provide you with the tools.

I have recently expanded our 1st edition (150 page) Mining Fundamentals eBook to offer even more value to investors. This $US19.95 1st edition report is still available, though you might prefer the 187-page 2nd edition which offers greater value following feedback from readers. If you buy the first edition, you can still upgrade to the 187-page (Professional Analyst's) 2nd edition by paying the difference. i.e. If you have already purchased the 1st edition, simply purchase the 1st edition again and we will forward the 2nd edition to you.
The 1st edition is still offered to investors as a teaser. It is timeless content. The difference is simply an expanded and revised package of content thanks to the feedback from readers.
I would like to thank those readers and others for their support in 2009!
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Andrew Sheldon www.sheldonthinks.com