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Gold Junior sits on Doorstep of Monsterous KSM properties

August 01, 2009 – Comments (2) | RELATED TICKERS: SA , SSRI

Here's an obscure speculative stock that I've been accumulating for more than a year.  Teuton Resources, American symbol TEUTF, better known as TUO.V.  See www.teuton.com

As most gold bugs know, Seabridge Gold and Silver Standard have been exploring a massive resource known as the KSM deposit.  While both of these companies are great buy and hold stocks, I think that Teuton has a chance to move from the 14 cent price it's at now to much higher levels. 

Their Treaty Creek property is in close proximity to the KSM deposit and their 2009 drilling program begins August 5.  Teuton also has a stake in close proximity to Bravo Resource's Homestake Ridge find which has propelled their stock (BVG.V) to recent highs and large volume (for a TXS Venture stock.)  Teuton also is currently arranging to drill on another of their properties this summer. 

Another positive is Seabridge Gold has published a plan to build a 23 kilometer tunnel to bring ore to its proposed mill.  This tunnel would run through Teuton's Treaty Creek property and ultimately Seabridge would have to compensate Teuton or perhaps simply buy them out.

American Creek, (AMK.V) their drilling partner, shares in the Teuton Property 50% (providing they spend a futher million dollars drilling.)  American Creek's price driver is clearly Treaty Creek and, interestingly, that stock sells for approximately 30 cents a share with almost three times the 35 million shares (fully diluted) of Teuton!!!!  Yet Teuton has been "sleeping" on light volume at what I view as a ridiculous price.  Put another way, either Teuton is grossly underpriced or AMK is overpriced. 

Again, this is a very speculative stock but at 14 cents, I think it merits attention.  If you apply the AMK valuation, you would price this company -- which has a better portfolio of properties, in my opinion, than AMK -- at 90 cents a share.  I don't think AMK is worth the 90 cents and I think 14 cents is too low, so I'll make my 2010 target for Teuton a mere 50 cents.  If tests reveal the presence of substantial gold, this stock could be in the "dollars."  Remember, though this is no Seabridge, Seabridge was once a penny stock itself.

The American Creek website has a nice presentation on the property at www.americancreek.com 

This is my "Golden Lottery Ticket" to an early retirement, but it is highly speculative, boys and girls, so do your due diligence.