http://etfdailynews.com/2012/02/11/peter-grandich-now-predicting-gold-prices-to-top-2350oz-gld-paas-min-nsu-rio-tmm-gix-mfn/
TGR: Which of your junior gold equities that you follow have recent news that could act as catalysts?
PG: Of all the companies that I am involved with, just about every one is an undervalued junior because they have multiple, advanced-stage exploration projects in either prefeasibility or feasibility studies. Their values are far more than their market caps. For instance, if Sunridge Gold Corp.s (TSE:SGC) project wasnt in Eritrea, this stock would already be many times its current price.
TGR: Wouldnt it then be taken out?
PG: Yes. The market is discounting this project somewhere between 80% and 99% because its in Eritrea. However, the country risk is even less than what it was. The U.N. sanctions against the country ended up getting watered down. The Chinese have announced a major investment in Eritrea and are talking about doing more.
Its extremely good for Sunridge and bullish for the bigger company in Eritrea at the moment, Nevsun Resources Ltd. (NYSE:NSU). I would not put it past Nevsun to acquire it, but I would think Nevsun would wait until Sunridges projects are more advanced. Once Sunridges studies are in, Nevsun, another company or Sunridge will develop it. Its close to getting updated resources on multiple projects, so its just too compelling.
Even though theyve moved up somewhat, Sunridge shares are still substantially lower than their 52-week high. This is a key year for Sunridge. Its gone through tough times. Its stock went down to pennies on the dollar. If it demonstrates what I think its going to in these reports, no matter that its in Eritrea, it should have a much higher valuation.
Some people that Ive met who are familiar with Sunridge believe its Emba Derho zinc-gold-copper VMS deposit is bigger than Nevsuns Bisha project. That says a lot.
TGR: Could Nevsun be taken out by something like Rio Alto Mining Ltd. (CVE:RIO), BHP Billiton Ltd. (NYSE:BHP) or a Chinese company?
PG: Both Nevsun and Sunridge could be gobbled up by a bigger company. But Nevsun could also be interested by something thats worth 5 to 10 times more than its current value with the advantage of being in its own backyard.
Also, Cliff Davis, the chief executive of Nevsun, and the principals of Sunridge go back a long time. They have cooperated on a lot of things. But no matter what happens, Sunridges stock is extremely cheap.
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Received on Sat Feb 11 2012 - 18:27:20 EST
