The savvy investor realizes that the rattling of the stock markets over the last few months is based upon fears stemming from European financial woes, but sees the opportunities that are presented as a result of the turmoil. Warren Buffett is forever quoted for trading principles capitalizing on other people’s fears because the situation depresses stock valuations that are often times unjustified and thins the investment community which allows for significant opening positions. Gold and other metals have been widely publicized recently with the retraction in values, boosting the upside gains to the still strong future estimates as compared to where they were a few months ago.
GreenLight Resources (TSX-Venture:GR), with its substantial mineral holdings in Atlantic Canada is a company that falls right into the wheelhouse of investors searching for companies with a large upside compared to today’s market capitalization. The British Columbia-based miner holds six different properties in the extremely mining friendly area of New Brunswick and Nova Scotia, Canada. The world-class deposits on the properties hold a host of minerals, including silver, base metals, rare earth elements, manganese, graphite, gold, silver and lithium. It’s a major miner’s type of portfolio wearing a junior miner’s suit.
It’s difficult to overlook any of GreenLight’s properties given their variances in minerals. Particularly impressive is the Kemptville gold property which previous exploration has boasted results as high as 60 grams per tonne of gold over 1.6 meters.
The Company’s Keymet silver property, located on the northwest of New Brunswick has been of interest to miners for more than a century since the identification of a 22 feet-wide quartz-carbonate-sulphide vein. Early exploration showed a strike length of more than 1,100 that was an average of 8 feet wide bearing assays of 13.8 feet of 8.48% lead, 10.99% zinc and 2.96 ounces per tonne silver. Production in the 1950’s resulted in a total of 56,000 tons grading 0.25% copper, 2.44% lead, 2.59% zinc and 0.99 ounces per tonne silver. Even more promising, recently grab samples from the dump rock at the Keymet shaft and a typical lead/zinc samples from the ore dump ran 549 grams per tonne silver, 2.35% copper, 33.90% lead and 22.90% zinc.
Today, GreenLight showcased the potential via a press release after the bell noting the Keymet property with new information on gold discoveries. Strong gold discoveries that complement the silver, copper, lead and zinc already noted. Two new gold findings were identified: an outcrop on a brook just south of the Keymet shaft returning 3.4 grams per tonne gold and an area to the north-west of the shaft with indications that boulders contain between 1.7 and greater than 3.0 grams per tonne gold.
Investors should be aware that the Keymet shaft is located only six kilometers northeast of the Castle Resources Ltd Elmtree gold/silver/base metal deposit. A PEA (Preliminary Economic Assessment) has been completed on an open pit, 1.117 million tonne deposit grading 2.41 grams per tonne gold (also containing silver, lead and zinc) deposit. Castle is currently engaged in an ongoing Feasibility study prior to moving on to the Environmental Assessment stage.
The Keymet property is only a portion of GreenLight’s holdings. Yet, the Company is still only bringing 14 cents per share with a miniscule $3.48 million market cap. As the article began, fear and misunderstanding of the true economic climate can often leave wide openings for undervalued companies. Proper due diligence is always encouraged.
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