-- Posted Tuesday, 30 November 2004 | Digg This Article
Company Facts |
Symbol - OTCBB (US) | LNXGF |
Recent Price | U.S. $0.15 |
Average Daily Volume | 99,686 |
52-week Range | 0.12 - 0.46 |
Common Shares | 64 million |
Market Cap | $ 9,600,000 |
Linux Gold Corp. |
Gold broke through a 16-year resistance in early November surpassing $430 an ounce and is expected to continue marching to levels not seen since the 1980’s. Yet despite this bullish move, many gold stocks remain well below their early 2004 highs as cautious optimism is providing wonderful investment opportunities.
Among the segment of stocks in the gold sector noticeably underachieving the general market are exploration companies. Many still trade over 50% from their prior highs made when the bull market started a few years ago and are just starting to see a return of capital inflows. With huge leverage to a higher gold price, these companies provide a very attractive risk to reward opportunity as gold moves to fresh, record highs.
Among the companies that investors should be watching closely is Linux Gold Corp (LNXGF). A junior mineral resource exploration company with a portfolio of three active projects in Alaska, British Columbia and the recently acquired rights to a 161 square kilometer minerals property in China.
Property Overviews:
CHINA: In the early part of 2004, Linux Gold Corp. ventured into China and has an option to earn up to 95% in the mineral production from a sizable piece of property that is 161 square kilometers (100 miles). It is located 4 hours north of Beijing with good accessibility. The property hosts 10 zones (3 main mines) with a proven history of producing small amounts of gold and silver by bucket and hand for many years. The mission is to test and analyze the property (mines & tunnels) and put the mill into production, then search for a large (bulk) tonnage reserve that can be mined as open pit. **The entire operation can be modernized for a reasonable cost.
ALASKA: Linux can also earn a 50% interest (Teryl Resources Corp. 50%) in 30 mining claims known as Fish Creek. Located in the Fairbanks Mining Division in
Alaska, Kinross Gold's Fort Knox mill is within 6 miles of Fish Creek. Fort Knox has been in operation for several years, producing over 400,000 ounces of gold annually at a cash cost of approximately US$207 per ounce. The Fish Creek Property is an excellent gold prospect that will be drilled in 2004 to test its potential to host lode and alluvial gold deposits. There is possibility for a low-cost placer mining operation.
CANADA: In the second quarter 2003, the company acquired 100% interests in two gold prospects located in British Columbia. The TY and ORO properties are located within 6 miles of the Bralorne Pioneer Gold Mine, among one of the richest gold mines in Western Canada, which since its discovery has produced some 4.1 million ounces of gold.
Technical Overviews:
GOLD PRICE - 2003 - 2005
The price of gold has been moving higher pushing fresh 16+ year highs over the past few weeks. With gold back in bull market mode, expect 2005 to bring even higher prices with a conservative $500+ price target.
LINUX GOLD CORP. - LNXGF
A bullish technical chart on Linux Gold shows a bullish positive increase in volume on the way higher in late 2003. With nearly all exploration gold stocks falling in 2004 on lower volume, the technical picture could not be a more bullish set-up. Linux Gold Corp. has very good support around the .15 level with a break of .18 - .19 signaling a possible breakout. We are then likely to see a repeat of late 2003 to the $0.50 - $1.00 range, as gold remains firm and Linux Gold Corp. forges ahead.
Recommendation |
Short-Term (0-3 months) |
Strong Buy |
Price Target: $.70 |
Long-Term (1 year+) |
Strong Buy |
Price Target: | $2.00+ |
Recommendation Price: | $0.15 |
High Risk / High Reward |
Linux Gold Corp. Symbol LNXGF |
© Gold Seek LLC, 2004
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-- Posted Tuesday, 30 November 2004 | Digg This Article
