Urgent Report from Dan Ferris:
Dear Reader,
I've only written a letter like this one other time in my entire career...
And the information it contained showed my readers 248% gains in 11 months.
This time it could easily be worth double that.
But only if you act quickly...
Because I just spent a week trekking through Canada to uncover this story. And what I discovered won't stay quiet for long.
In short, nestled in the backwoods of western Newfoundland, shrouded in fog and ice...
Lies a private mountain literally bursting with gold.
And when I say bursting, I mean there's so much gold here you can literally see it in the rocks.
I've been a gold stock investor longer than I've been any other type of investor, and in all almost 20 years of investing and research, I've never seen visible gold just sitting there on the ground. As the day wore on, the geologists I was traveling with picked up rock after rock...and there was visible gold in almost every one.
Understand I was invited to this spot for a private tour by the exploration firm that recently staked this claim.
I made no promises to them about what I would or wouldn't share, which is why I'm writing you this letter.
But it won't be long before this discovery is headline news -- if it's not already by the time you read this.
Right now, this stock trades for about $10.
Based on what I saw -- and what I know of this company's plans -- I fully expect it to reach $30 or more.
Here's the story...
The province of Newfoundland is practically unheard of...
About the size of Texas, it has almost as many moose as people.
So on my trip, I took three of the world's most talented mineral geologists and two of the world's sharpest mining analyst -- the only guys I know that could make sense of this terrain.
We flew a chopper onto the mountain. And we had barely disembarked before all five of us stopped, bent over and picked up the first rock we saw.
There it was: Visible gold.
Scattered around like sprinkles on a sundae.
Here's just one of the pictures from the site...
And there are dozens more just like it.
How is that possible? And how has this mountain remained untouched for so long?
The story is actually just as shocking as it is simple.
You see, Newfoundland was uncharted territory for decades -- essentially since the gold booms began in the 1840s.
Most geologists considered it a frozen wasteland rather than a mineral rich hotspot it is today.
It was so bad that the government started offering incredible incentives to anyone who was willing to explore there...
It was these incentives that finally caught the eye of Noranda, a major mining firm from Quebec.
For a year, they explored that mountain in western Newfoundland where I just returned from. Noting in their journals the "visible gold" strewn all around.
At this time, however, gold prices were low – about a third of what they are today.
Noranda did a lot of the original legwork on exploring and developing the Newfoundland area, but eventually optioned off a lot of their claims.
But here's the thing...
In Newfoundland, discoveries like this are a matter of public record.
 |
Jump ahead 19 years...
Gold prices are hitting new highs every day...
A tiny local miner goes down to the hall of records, looking to stake a claim...
And finds the deal of a lifetime...
-S&A Geologist Matt Badiali
After conducting an extensive study of gold mines over the past several months, I've noticed that the average North American gold mine produces 7 grams of gold per ton.
That's an important number...
Because by that standard, the first round of testing on this gold-covered mountain has produced shocking results -- an average of 39.1 grams of gold per ton.
That's roughly 6 times more gold than average!
As our resident geologist Matt Badiali recently told us: "These results are over the moon spectacular."
The CEO of this tiny company shares a similar sentiment with me. From what I took from him, there's no analog for this gold find anywhere in Newfoundland. In fact, few deposits like this exist in the world.
Exactly how much gold are we talking about?
According to various analysts, including Charles Wyatt of the Mine Site Journal, this mountain "has excellent potential to host a multi-million ounce gold deposit."
 |
More than enough -- not only to justify drilling -- but to make a ton of money in the process.
Understand, according to the World Gold Council, very few gold discoveries like this are even made each year.
And they're usually found in places fraught with geopolitical risk like Africa and South America.
Meanwhile, this gold deposit lies in one of the safest regions on earth.
In fact, the Newfoundland Government has started paying mining companies to dig up the ground again.
This particular project, for example, received a C$100,000 grant from the government.
Now, if you know me, you know that I only buy what I believe has built in profit potential.... investments with very little downside risks that I wouldn't mind holding for the long-term.
That usually keeps me away from tiny gold stocks like this one. There are simply too many risks -- too many things that can go wrong -- for me to feel confident about owning them.
First, you have to spend a lot of time and money just looking for a potential mine.
Then, you have to spend a lot of time and money drilling and testing...
Sometimes you get lucky -- and your shareholders get rich.
Gains of 1,000% are commonplace for these types of stocks.
But most of the time, you're unlucky. The holes you drill come up dry. And your stock disappears.
These variables are hard to control. So I usually stay away.
But with this company...
Let me put it this way:
This outfit has no exploration work to do. They have no testing to do.
It is all being done for them.
Thanks to the early exploration projects back in the '80s of this mountain, they knew exactly where to go... and they knew exactly how much gold was likely to be there (an estimated $2 BILLION worth).
Now here's the cherry on top:
The mountain had recently been discovered by a prospector... And this tiny company purchased it from this prospector for just $30,000, actually only having to put up $5,000 in cash upfront. And even better ... they've contracted out the additional "dirty work"... and can just sit back on their claim.
In other words, they get all the potential reward of a big gold discovery -- gains of 100% or more -- with virtually none of the risks.
No additional exploration costs. No analysis costs. And practically zero capital expenditure.
In my opinion, this company is a perfect business. And, more importantly, the perfect investment, especially right now.
There's almost no overhead, very few employees... and potentially incredible profits...
As I mentioned, I rarely ever tout mining stocks. In fact, of the 3,000 Canada mining stocks that now exist, I've only ever considered recommending three to my readers.
I recommended one of these stocks earlier this year... Take a look at what happened...
Back in March 2009, I told my readers to buy a Colorado-based mining stock.
The company collects much of its revenue from the exact same source as this $7 Newfoundland stock.
They own 85 mines on more than 40 projects around the world, and most of them are in North America.
On Monday, Dec. 7, one of the biggest gold companies in the world bought this Colorado stock for about $640 million.
The proposal, worth $6.75 a share, made my readers a 248% gain in 11 months.
But here's the best part...
These two companies are partners. The Newfoundland stock I've been telling you about actually owns nearly 10% of this Colorado miner.
In other words, this recent buyout could easily boost their share price over the next several weeks... if not sooner.
You see what I haven't yet told you is that aside from owning a mountain of gold, this Newfoundland stock has 12 other joint venture projects including a stake in one of the biggest iron ore deposits in Canada.
I believe iron ore is ten times better than gold. It sits in the ground in troughs and can be scooped out without a lot of processing. Extracting gold, on the other hand, involves stages of chemical processing that is both expensive and time consuming.
This tiny stock happens to be one of the largest holders of iron ore licenses in this region and could wind up with HUGE profits from iron ore down the road.
With virtually no debt and enough sustainable cash flow to keep itself afloat for the next several decades, this is the safest low-risk way to own gold and other precious metals right now.
I have a confession to make...
This little gold miner I've been telling you about isn't planning to mine a single ounce of this gold... or anything else it owns.
Let me explain...
In the metals business, the best way to make money is not as an explorer... or a producer.
No, the best way to make money is to get a foothold on profitable mining royalties.
And that's exactly what this little company does.
They don't do any digging, production, or actual mining.
Instead they simply scout out mineral-rich deposits, find a partner to do all the work, and get paid royalties as the metals come out of the ground.
It's an incredibly simple and lucrative business. Instead of getting paid on just one mine, these companies own stakes in dozens, sometimes hundreds.
As you can imagine, the money these firms can make for themselves -- and their shareholders -- is stupendous...
One of the first companies to do this in the gold industry was an operation called Franco-Nevada, which got its start in the mid-1980s.
This royalty company paid investors an average of 38% gains for 18 years.
That's a total gain of 32,000%.
A modest $5,000 investment in this firm back then would be worth $1.6 MILLION today.
That means 2,404% after 10 years... and an incredible 32,000% over the full 18 years... which turns a $5,000 investment into $1.6 million!
 |
Since 2001, the company has returned a whopping 1,589%.
It's incredible. Owning royalty stakes in the world's best mining operations is a low-risk, inexpensive, and simple way to make an absolute fortune, especially in a precious metals bull market like we're in right now.
In fact, mining royalties may be the best business models in the world.
Before the market downturn, this little mining company I've been telling you about had basically gone on a straight line up from its IPO in 2003 at around $1.60 a share... to over $30.
That's a 1,775% return.
It got beaten down, just like every other stock. Almost back to where it started. Which is why I fully expect it could climb another 1,775% again over the next several years.
The business hasn't changed one bit -- and they've got a brand new mine about to go into production.
If this sounds like a deal you'd like to get in on, I've just compiled the full details in a special report I call: "Bursting with Gold: How Newfoundland's Golden Mountain Could Make You a Fortune."
In this report, I tell you all about what I saw on my trip... and exactly how this tiny gold stock could make you rich.
Best of all, this report is free of charge.
Here's how to get your copy...
-The Street.com
I think this stock could make you a fortune, no matter what.
But it certainly doesn't hurt that we're in the middle of a raging bull market in gold.
In the past few years, gold prices have more than tripled. And I don't see any sign of a slowdown.
Neither does Bloomberg, who reported that gold could double again next year...
Or Barron's, who reported gold could hit $8,000 an ounce.
And over the past few months, gold stocks have been acting accordingly...
- Crocodile Gold Corp. is up 823%
- Oregon Gold is up 175%
- Riverstone Resources Inc. is up 265%
- Novagold Resources is up 108%
Like Greenlight Capital Inc. founder David Einhorn. The $5.1 billion hedge fund manager is loading up on gold for the first time ever.
Even Central Banks are getting on board:
On Nov. 23, 2009, Russia's central bank announced that it had bought 15.6 metric tons of gold.
According to the World Gold Council’s new chief Executive Aram Shishmanian, ”As the dollar continues to weaken and central bankers around the world realize the continuing importance of gold in providing economic stability, we believe more central banks in Asia and beyond with now announce increased allocations to gold.”
Timothy Green, author of The Ages of Gold, says this is "the biggest single central-bank purchase we know about for at least 30 years in such a short period."
And that's why right now is exactly the time to be buying gold-related stocks, especially those that collect royalties on existing gold mines...
Instead of owning a mining business or trying to hoard physical gold... it can be much, much safer and more lucrative to simply own a stake in the real estate where the best mines are located...
For example:
- A company called Consolidated Stikine owned a stake in what turned out to be a massive gold deposit in British Columbia, called Eskay Creek. In three years time, this company's shares went from 32 cents to $73 dollars -- an astounding gain of 22,712%...
- Arequipa Resources had a big interest in Pierina, a gold mine in Peru. When this mine hit, shares went from $2.50 to $34 -- a gain of 1,260%...
- And a firm called Aurelian Resources owned a stake in a gold project called Fruta del Norte in Ecuador. When this project hit it big in 2006, Aurelian's shares skyrocketed from 60 cents to $29 – a gain of 4,654%.
And everything you need to know to get in on this deal right now is included in my special report: "Bursting with Gold: How Newfoundland's Golden Mountain Could Make You a Fortune"
Again, I'd like to send you this report absolutely free of charge.
In return, I only ask that you take a no-obligation trial subscription to my investment advisory newsletter: Extreme Value.
Let me tell you a little about it, so you can decide if it's right for you...
The first thing you should know about me is that I'm a bit of a hardhead when it comes to investing...
I spend the majority of my time compiling super-detailed balance sheets for various companies, every day.
In fact, I'll gladly put six months of research into a single stock recommendation if I think it can help make my readers money...
In other words, I won't recommend any stock unless I am sure it has VERY little downside risk.
Here's a great example of what I'm talking about...
When I first started writing Extreme Value in 2002, America had real estate fever. The price of houses and land were going crazy (like what's happening in the gold market right now)...
One of the first investment opportunities I recommended in Extreme Value was a way to get up to a 99% discount on some of the most beautiful (and expensive) land in the United States.
For example...
- I discovered 13,800 acres by a scenic river, right next to the Daytona International Speedway, and the Ladies Professional Golf Association headquarters...
- I also found a piece of completely pristine, undeveloped land the size of Los Angeles -- in southern California, just a few miles from the Pacific Ocean...
- And I found 21,000 acres of undeveloped land on the Hawaiian island of Kauai (where they filmed Jurassic Park)... plus a 37,000-acre plantation on the island of Maui... for around $2 per acre.
Instead I was looking for a way for my readers to buy this land for the price it was originally purchased (at prices from over 100 years ago, in some cases)...
Through the stock of five public companies.
To vet these companies, I flew all across the country doing the kind of in-depth research very few other analysts will do.
I searched the deeds at the Land Titles Office, by hand.
I checked out current property sales.
I investigated the local real estate markets. And I talked to as many brokers and insiders as I could.
In short, I spent countless hours (often 12 hours a day or more, for days straight) digging into the balance sheets and financials of these companies.
All told, I spent over four months working on the research and recommendations for what became "The Undervalued Land Report."
Readers who followed my recommendations could have made a killing...
Within the first two years after I recommended these five companies, Extreme Value subscribers could have seen gains as high as...
|
Together, these five stocks had an average gain of 149%... Enough to turn $5,000 invested in each into $62,400, in a very short time.
This is how I like to do things.
First, I find an extraordinary opportunity...
And then spend an incredible amount of time and money getting it right.
This is why I felt it was necessary to fly out to Newfoundland in order to visit this landmark gold discovery and meet with the CEO of the 12-man company that now owns it.
And personally, I think this opportunity will be FAR bigger than anything I've ever recommended before...
|
Now... I believe I could help you make a fortune in the next few months -- with a safe, inexpensive opportunity most Americans will find out about only when it's too late.
And, as I mentioned earlier...
I want you to have my new report on this situation - - with my compliments, if you're willing to give Extreme Value a try.
But before I tell you how to receive this new research, there's something else you'll get to be involved with, which I recently put together...
It's an amazing opportunity I think you'll find very valuable...
What if I told you that, thanks to the real estate collapse, you could now own some of the nicest beaches in all of America... for the equivalent of one hundred dollars per acre...
Would you be interested?
Well, I've done an incredible amount of research on this opportunity, and I can tell you that this opportunity is very real—and there is nothing else like it in America.
Even better, you can make this real estate investment in the stock market, so it's super-simple and cheap to buy and sell.
You see, very few investors know it, but there's a one-of-a-kind stock in this country that does nothing but hold some of the world's most valuable land... stretches of prime beachfront, in some of the most popular destinations on Earth.
What's incredible is that due to the real estate meltdown you now have the opportunity to buy this beachfront land at truly distressed prices... 65% less than it was fetching a few years ago.
Look... I'm not one who looks specifically to capitalize on others misfortune... but these prices are far too good to pass up. This is absolutely the real estate buy of a lifetime.
Your kids and grandkids could look back at this investment as the smartest one you ever made.
Yes, there are some other incredible deals in the real estate markets right now... but for most of them, you have to deal with bankers, distressed properties, foreclosures, etc.
Well, this beachfront investment opportunity I want to tell you about is safer, easier, and probably more lucrative than anything else you can find on the real estate front today.
That's why Michael Winer, who might be the best real estate value investor in America recently said: "For us, [this company] boils down to some 800,000 acres of spectacular real estate that is ripe for generations of development."The point is this is a way to get in on America's best real estate, at dirt-cheap prices. I think you could safely double your money over the next few years... And probably make many, many times that over the next decade and beyond.
You most likely won't have an opportunity to own beachfront land at these prices again in your lifetime... so if you think people will continue to want beachfront land... this is one of the best investments in the world.
I recently finished writing a new Research Report about this ridiculously low-priced beachfront land, called "The World's Most Desirable Beachfront Land for $1,500 An Acre."
You can have access to this report - free of charge - within the next 15 minutes.
Here's how...
The cost of Extreme Value for one year – 12 research reports per year – is $1,000.
No, it's not cheap, but I believe that's an absolute bargain.
A small investment in any one of the ideas I've mentioned in this letter could easily pay for your subscription... many times over.
Just listen to what some of my readers have to say:
*** "Dan, my results have been as follows: Made $1.01 million in profits, before taxes and expenses."~ Josh Winters, Thornton, COAnd it's not just individual investors, either...
*** I made my first purchase from your recommendations nearly three years ago and have realized a 554% gain on that investment alone. Other big winners for me have been 129%, 100%, and 90%... Keep up the good work!"~ Rich Charles, Tacoma, WA
*** "About $20,000 ahead in just 60 days! Needless to say, these returns have sure beat the recent "market" by a country mile. Extreme Value delivers what it promises! Tell Dan Ferris, I figure that his research is worth a lot more than the cost of his subscription."~ Hank Dickson, Colby, KS
Some of the biggest, most respected people in finance read Extreme Value.
Mohnish Pabrai, for example, is an investment manager whose fund has grown from $1 million to $218 million in six years. And he was recently featured in Forbes magazine for having outperformed Warren Buffett for four straight years.
He says:
"I read Extreme Value every month. It's one of the best value-oriented advisory letters I receive."Understand, by taking me up on this offer, you are agreeing only to try my work to see if you like it.
If not, no problem...
You'll have 90 days decide.
If you decide it's not for you, simply cancel before the 90-day trial period is up and I'll send you a full refund, minus a 10% refund fee.
As soon as you let me know if you want to take a trial look, you'll have access to:
- Research Report #1: "Bursting with Gold: How Newfoundland's Golden Mountain Could Make You a Fortune." This report will tell you everything you need to know about my recent trip to Newfoundland and the mountain of gold I found there. You'll also get full details on the tiny company that now owns it, which could realistically make you 10-times your money in the next few years.
- Research Report #2: The World's Most Desirable Beachfront Land for $1,500 An Acre. Prime beachfront property in one of the most popular destinations in America. You could buy this pristine land today and potentially double your money.
- 12 monthly issues (1 full year) of Extreme Value. On the second Friday of every month, I will send you a full report (by email and regular mail) on what I believe is the best investment opportunity in the market.
- Every Extreme Value issue ever published (going back to 2002). Many of the investments I've recommended in the past are still great buys. Here, you'll have full access to all of them.
Good Investing,
Dan Ferris
Editor, Extreme Value
May 2010