Uncertain times and a shaky history of late have many investors going back to their roots so to speak when choosing where to allocate capital. One constant throughout the recession has been the value of tangible assets such as precious metals like gold. One company is on track to shake up the mining market like a tornado, except their debris will be laced with gold and sapphires. New World Gold Corp. (PinkSheets: NWGC) has mining operations in Montana and Colorado along with International expansion agreements in place for mining in Columbia and Indonesia.
Mining gold is all well and good on its own, but New World Gold has sapphires in them there hills too… Not bad when you can get more bang for your buck or, in this case, more minerals for each ton of earth. Thanks to advances in technology, New World Gold has been able to identify significant deposits of gold in previously closed mines and has a business plan in place to search out and identify solid investment projects.
Projects and plans are all well and good but current production and areas being developed are a must for investors to commit substantial capital. Good thing New World Gold has the Montana project ready to mine with equipment on site; samples taken with production estimates in place; and the Colorado project on the tarmac ready for takeoff once it gets the necessary funding.
Some highlights and production estimates are as follows for years one and two:
Revenues from gold mined are expected to be $4.5 million for year one (Montana).
Revenues from gold mined are expected to be $11 million for year two once the Colorado project goes on-line.
Sapphire numbers are expected to be significant (pending independent verification).
The Company is in the process of converting its financials from in-house to audited and plans to move up to the Amex exchange by the first quarter of 2011.
In conclusion, New World Gold is a company with solid expansion plans in place to complement its current production at the Montana location. Also, by going after all the goodies underground, the Company is diversifying itself and leveraging risk while not increasing expenses that come with any mining operation. At $0.08 per share NWGC.PK is definitely worth a look and should offer solid returns in the short and long term as long as the company follows its business strategy during a reasonable timeline.
Tuesday, August 17, 2010
New World Gold Corp. (PinkSheets: NWGC):The Golden Sapphire
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