Yes, gold is going to go a lot higher. But, that's not the only reason to buy shares of American Sierra Gold Corp (OTCBB: AMNP) now. When gold does climb to $2,000, (as many top analysts believe it will within a year or so) that will be the icing on the cake. There are two immediate reason to load up on American Sierra Gold Corp (OTCBB: AMNP) now:
One, on its own merits, American Sierra Gold is so undervalued, it has at least a gain of 500% built into it just to catch up to the market!
Two, as I've already said, it's a sitting duck takeover target. Goldcorp, its giant neighbor in Mexico's Urique gold district, is in desperate need of new resources to maintain its production. They've got to be drooling over what's been discovered next door!
Goldcorp (NYSE GG) is the world's third largest gold producer, with a market cap of over $28 billion. It has to keep producing gold to maintain its stock price. And they desperately need what American Sierra now has! I wouldn't be surprised to see a takeover move at any moment!
But, let's put the takeover prospect aside for the moment and look at American Sierra as a pure gold play. The simple fact is that this brand-new equity is now THE best way I know of to invest in gold.
AMNP is the fresh horse in a half-run race!
Forget all of Wall Street's tired gold-related recommendations. They've already had their run This company is so new and its potential so vast that when the gold bugs find out about it (they're reading along with you this very minute) its stock could literally double or triple over night.
If you're debating the future of gold as an investment, you'll find some cogent arguments for gold's escalation as you read on. One well-respected analysts is actually mentioning the possibility of $6,000 an ounce!
This gold-rich tract of the Sierra Madre in southwestern Chihuahua has already made tens of billions of profit for giant Goldcorp. Just as Burger King succeeded by opening next door to McDonald's, American Sierra guaranteed its future by snatching the gold-rich land next door to one of the most productive gold mines in the entire world.
American Sierra Gold's Project Is Contiguous With
the Property That Ignited This Mexico Gold Frenzy!
The short version of this incredible story is that this brand new company just pulled off what may be the gold coup of the century. When no one was looking, American Sierra bought what is unquestionably the single largest, (29,100 hectares) under-developed concession in the gold-rich Sierra Madre Precious Metal Belt in Chihuahua, the southwestern State of Mexico.
Check this out yourself on the map below. Not only is American Sierra Gold Corp (AMNP) neighbor to Goldcorp's El Sauzal mine, it just signed a deal for sixteen concessions that envelop the mining operation of another exploration company, Paramount gold. And get this:
Neighboring Paramount gold recently rewarded early investors with a 533% gain in its stock price!
(click to enlarge)
Paramount was my last gold pick and its stock jumped 533% in 6 months when it released an independent estimate for its San Miguel Project, located next door to American Sierra's new leases.
Here's the critical part: extensive geophysical, historic records dating to the Spanish explorers and recent core drilling (I'll get into that in a moment) have established with 100% certainty that American Sierra's newly-acquired property, known as the Urique Project is an extension of the gold-rich mineralized structure zone of both of its next-door neighbors, Paramount and Goldcorp!
American Sierra Gold (AMNP) Could Be Sitting
On Tens of $-Billions Worth of Gold!
American Sierra Gold is in the process of establishing an independent and "official" estimate of how much gold is in its Urique Project. In the past two years, prior exploration focused on four primary exploration targets, all of which have the potential to hold many millions of ounces of gold. In addition, there are at least five other promising targets that have not yet been evaluated.
$2.1 $-Billion in Just One of Its Nine Targets!
Based on recent core drillings from just one of the four primary targets, the El Rosario target is a 200m wide section that's 200m deep with, at minimum, a mineralization of 3oz per tonne. Assuming the length to be just 500m, that equates to 2.5 million ounces of gold. At $1,000 per ounce, that works out to $2.5 billion. And that's just for the El Rosario target, one of nine within American Sierra Gold's Urique Project.
The single largest under-explored land package in that
portion of the Sierra Madre Precious Metal Belt.
American Sierra Gold's (AMNP) Urique project is located in the prolific Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico, and includes sixteen concessions covering 29,100 hectares. The company has already identified at least two targets with multi-million ounce silver potential and expects several more.
Numerous gold deposits of a million-plus ounces have been discovered in this 300 km long region of southwestern Chihuahua: including Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo (Gammon Lake), as well as the now-famous El Sauzal mine for which Goldcorp paid Glamis $9.5 billion. American Sierra's Urique Project is located immediately north of Glamis's property and approximately 10 km north of the El Sauzal mine and extends 40 kilometers to the north where it borders the Monterde property (Kimber Resources). The El Sauzal mine entered production in 2004 and at its peak was producing more than 300,000 ounces of gold annually.
At say $1,000 an ounce (to make the math easy) that works out to $3 billion a year!
Here's Why Goldcorp Needs American Sierra's Leases:
The Urique Project covers or surrounds ten mineralized areas with past mining activity. Each of these areas is related to large mineralized hydrothermal systems that have the potential to host bulk mineable resources.
In the past two years exploration has advanced the project mainly at four primary exploration targets, each of which warrants additional exploration. The two targets that have multi-million ounce silver potential – El Rosario and Cerro Colorado – were prioritized. In addition, there are at least five other targets within the Project that have yet to be fully evaluated.
The project has been separated into the Urique North and Urique South areas, primarily due to differing geological domains. During the past two years two different field crews advanced exploration in each area at the same time out of separate field offices.
URIQUE PROJECT: SOUTH
The Urique zone is made up of an epithermal vein district measuring 2 x 2 km in size with more than 15 historic mines identified to date. Initial sampling at Urique has yielded local bonanza grade gold and silver values with highlights of 86.0 g/t gold and 8,290.0 g/t silver. Urique, (including the recently discovered El Rosario target) is a priority for the current drill program.
In Urique North the principal targets are the Cerro Colorado, San Pedro, and Cuiteco. In Urique South The Rosario mine area was identified as the primary exploration target. Efforts to date have been concentrated on the Urique Target Area near the town of Urique after the re-discovery of at least 30 historic mines and an obvious significant mining history that dates back to the Spanish.
El Rosario Alone Could Hold As
Much as $1.2 Billion Worth of Gold
This most recently identified zone, El Rosario, is located east of the town of Urique and comprises multiple historic mines and prospects that exploited a system of high grade veins. Formal mining of this area ended in the late 1920's and consisted of several hundred metres of underground workings on three levels. These historic workings are all within a zone of strong silicification in the andesite host rocks that measures approximately 100 metres wide and over 400 metres long. The zone is open at depth and along strike.
At El Rosario, there is a series of at least five main veins sets that were partially exploited from several hundred meters of crosscuts and stopes. The vein system has been mapped to be at least 800 meters along strike and approximately 400 meters in width and remains open in each direction.
The vein sets measure several metres to tens of metres wide and is made up a relatively narrow vein – less than 10 cm to about 40 cm in width – with high grade silver and, locally, high grade gold as well. Additional sampling of wider zones around the veins has shown the potential for high grades over normal mining widths. The veins are hosted by altered andesite and sedimentary rocks that have been intruded by granitic pluton, forming a hornfels.
Results from the initial work completed in the Rosario area highlighted the presence of very high grade veins with highlights being 8,290 grams per metric tonne (g/t) silver and 10.6 g/t gold from 10 to 40 centimeter wide veins. Subsequent work focused on evaluating the potential for wider zones of mineralization which returned assays of as much as 1,640 g/t silver over 1.05 metres, 441 g/t silver over 2.35 metres and 8.8 g/t gold over 0.85 metres. In addition, and perhaps more importantly, samples of altered and mineralized wall rocks have yielded as much as 257 g/t silver and 0.78 g/t gold over 5.0 metres.
Cerro Colorado Target is also rich in gold
The second priority target within the project, Cerro Colorado, consists of a 2.5 kilometre long mineralized structural zone that is between 3 and 10 metres wide. Three areas of mineralization with past mining activity are along the main structure: El Vergel, Mina Guadalupe, and Las Minitas. Samples from two small mines that were previously developed at El Vergel and Mina Guadalupe yielded high gold and silver values of as much as 15.3 g/t gold at the surface.
The structurally controlled breccia at Cerro Colorado has been traced over a strike length of 2.5 kilometres. The width of the structure varies from 2 metres to greater than 10 metres and occurs within a much wider package of alteration. At least four areas of mineralization have been identified: the El Vergel, Mina Guadalupe and Ampliacion Guadalupe zones occur along the main structure, and the Las Taunas zone is an interpreted splay off the main structure. Mapping has shown that the main structure is continuous between all of the zones.
A total of 1,363 meters was drilled in nine holes, confirming the presence of a large mineralized system and potential bulk tonnage silver-gold deposit.
A geophysical survey, consisting of IP and ground magnetics, was also completed in 2008. Linear geophysical anomalies tended to coincide with mineralized structures and veins, and in many cases the dip of the anomalies are similar with those of the mineralized structures. The anomalies were interpreted to show that the mineralization and alteration identified on surface may extend to depths greater than 150 metres – the effective depth of the geophysical survey.
If all that technical jargon seems confusing, trust me, what it all means is that there is overwhelming solid geological evidence that American Sierra is sitting on absolutely enormous amounts of gold.
At its recent price of under $1 a share,
American Sierra Gold Corp (AMNP) has the
potential to turn $10,000 into $50,000
Remember, this situation is so new, American Sierra Gold is a virtually undiscovered company. And its El Rosario and Cerro Colorado are just two of nine gold-rich targets within the company's Urique Project. Only after the others are drilled and assayed, can the total potential value of this property be estimated. But this much is for certain, American Sierra Gold Corp. just bought itself one of the richest mineral concessions in the entire Sierra Madre Precious Metal Belt.
I can't believe the geologists next door at Goldcorp (NYSE:GG) haven't seen the details of what you just read. And I know they understand how much gold is sitting right next to their declining El Sauzal mine. Goldcorp needs to maintain its production and it can't do that without finding new resources.
I wouldn't be surprised to see Goldcorp (NYSE:GG) try a low-ball takeover soon, before a complete survey of American Sierra is available. Even if they offered $10 a share, if you get in now at under $1, you could turn $10,000 into $100,000 in one fell swoop!
Even if Goldcorp (NYSE:GG) doesn't pounce soon, early investors are sure to be well rewarded. And if gold goes to $2,000 an ounce, as many experts predict, who knows how high this under-$1 stock(AMNP) will soar? If you're nervous about the economy, the possibility of rising inflation and where the stock market is headed, this is the place to put some money. American Sierra Gold will help you shrug off any negative economic news.
How high will GOLD Eventually Go?
But, if gold continues to climb, as most experts predict it will, this stock will do even better. How high will the price of gold go? Well, according to Robert McEwen, CEO., U.S. Gold Corporation…
“Gold prices may reach $2,000 an ounce by 2010 on demand for an alternative to currencies. You have much more money than there is gold, and as people see their currencies falling relative to gold; they’re going to be saying ‘Maybe I should have some of this.”
Citibank precious metals analysts, John Hill and Graham Wark, wrote…
“Frankly, we're surprised, that gold is not already at $2,000 an ounce. Gold will benefit from both the “gloom & doom” and “muddle-through & monetization” scenarios, possibly regaining $1,000 per ounce at year-end and even doubling or tripling in the long term,”
Adam Hamilton of Zeal Intelligence says that…
“If our current gold rally truly unfolds into a Great Gold Rally, $1,000 gold is merely the first stage. A gold bubble, which will probably ultimately happen as a way to climax the coming gold mania, maybe five to seven years out, could easily launch gold above $5,000 per ounce. The actual top of a new gold bubble at the final pinnacle of another Great Gold Rally could touch $6,000+ per ounce!”
A Virtually Undiscovered Company
With Very Experienced Management
The president and CEO, brings over twenty-five years experience investing in capital markets with a strong emphasis on strategic investments including a lengthily stint with Syncrude Canada. Also on its notable team is a field geologist with experience in a wide spectrum of geological environments involving both base and precious metals. He has worked for various junior mining and exploration companies in North and South America, including a series of large multi-million dollar exploration programs in Canada and Mexico as well as substantial projects in Peru. As Chief Geologist, he was a key figure in putting the 1,000 tonne-per-day Santa Rosa open pit gold-silver mine into production.
More Big Winners Guaranteed!
American Sierra Gold Corp (AMNP), my latest find, is a good example of the kind of fortune-building opportunities I try and bring my subscribers in every issue of Stock Prospector. I hope you're going to invest now in American Sierra Gold (AMNP) and I also hope you'll be tempted by it to accept a NO-RISK trial subscription to my advisory.
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