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XMFSinchiruna (27.35)

Skilled Pilots Find the Gold Again

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February 15, 2012 – Comments (10)

These guys have steered their way into major strategic gold desposits before, and they are in the process of doing it all over again.

Over the past week or so, the market finally began to take notice.

I refer, of course, to Pilot Gold, which was created as a spin-off of assets not included within Newmont's $2.3 billion acquisition of Fronteer Gold.

http://www.fool.com/investing/general/2011/02/07/requiem-for-golds-final-fronteer.aspx

On November 16, 2011, I wrote on my blog here:

http://caps.fool.com/Blogs/the-greatest-turnaround/669504?&mrr=0.25

Has anyone noticed how cheap Pilot Gold has become?

Remember, that's the same team that built Fronteer Gold from the ground-up. Pilot began as a spin-off from Newmont's purchase of Fronteer, and started out with a significant portfolio of projects. Have a look at Haligaga and TV Tower properties in Turkey (joint ventures with Teck).

These guys are cashed up as well for some sustained drilling. I've been a buyer of these shares recently beneath $1.25.

I did indeed buy shares near that level, and today it's a top-10 holding of mine.

I met up with the Pilot team in Vancouver last month, and was extremely impressed by their serene confidence given the stock's rough trailinhg performance. They seemed like guys who knew something I didn't, and after the recent press releases it's clear that they did indeed.

The pink sheet ticker symbol is PLGTF. On the TSX it's PLG.

Here are the last 2 press releases, which are each awe inspiring:

http://pilotgold.com/news/initial-pilot-gold-drilling-returns-591-gt-gold-over-184-metres-kinsley-mountain

http://pilotgold.com/news/pilot-gold-reports-first-resource-halila%C4%9F-copper-gold-porphyry

No near-term projections here... stock has moved quite a bit and could either stall or continue near-term. Long-term, however, I think these guys are clearly on the gold once again and likely to continue piloting a profitable course.

10 Comments – Post Your Own

#1) On February 15, 2012 at 8:37 PM, rd80 (98.26) wrote:

Hey Sinchy,

Congrats on the Pilot call.  

Not related to your post, but did you catch that there's now a Yuan denominated gold ETF trading in Hong Kong?

blogs.wsj.com/deals/2012/02/13/not-much-love-for-first-yuan-denominated-gold-etf/

http://www.reuters.com/article/2012/02/14/us-hangseng-goldetf-idUSTRE81D0DC20120214

Reads like the launch landed with a thud, but do you think it might be something that opens up a new source of demand for gold?

 

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#2) On February 15, 2012 at 10:47 PM, skypilot2005 (< 20) wrote:

Sinch wrote:

"piloting a profitable course."   In regard to Pilot Gold.  I like it!

I own Pilot thanks to Sinch's earlier  coverage.

Check this out:

http://finance.yahoo.com/news/moodys-may-downgrade-17-banks-003723628.html

Moody's warns may downgrade 17 global banks,

By Ian Chua and Soyoung Kim

(Reuters) - Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign that the impact of the euro zone government debt crisis is spreading throughout the global financial system.

 

Sky

 

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#3) On February 15, 2012 at 11:29 PM, SN3165 (< 20) wrote:

Hey Sinch what's your email address?

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#4) On February 15, 2012 at 11:33 PM, SN3165 (< 20) wrote:

PC Gold update:

"The market currently values the Pickle Crow resource at about $16 an ounce. Chauvin describes this as “kind of ludicrous.” He believes management’s focus now should be to upgrade the underground resource in order to give the property a valuation more in tune with its potential."

“Our current plan is to try to raise the funds necessary to be able to go underground and move the resource up to a proven and probable category in order to complete a feasibility study."

 Full Article: http://resourceclips.com/2012/02/14/going-underground/

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#5) On February 16, 2012 at 8:56 AM, XMFSinchiruna (27.35) wrote:

sinchiruna@cox.net

Please note that all of you who sent me your e-mail addresses for the proposed distribution list have been added to my list in preparation for a possible start-up of such a thing. Just didn't want anyone to think they'd missed anything. :)

107 of you signed up just after a couple of casual mentions on this blog. I am encouraged by the level of interest, and will do what I can to get it going.

If anyone who has not already responded previously would like their e-mail address included for this potential informal e-mail distribution list, then please send an e-mail to the above and indicate with your Motley Fool username.

Thanks for your patience.

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#6) On February 16, 2012 at 1:03 PM, Jbay76 (< 20) wrote:

"have been added to my list in preparation for a possible start-up of such a thing"....what "thing"?  I think I missed the original announcement.

Thanks

J

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#7) On February 16, 2012 at 3:50 PM, SN3165 (< 20) wrote:

Any idea what's going on with Brigus ?

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#8) On February 16, 2012 at 4:33 PM, XMFSinchiruna (27.35) wrote:

SN,

Yeah, a turnaround story so unconscienably long in the making that most investors have likely thrown in the towel. In my opinion, it's best to let the company show us some progress on the operations front before digging further into the obvious bargain.

For newcomers, it could be considered a compelling speculative buy here, but for existing holders I'd say it's a hold until we can hold an operational turnaround in our hands.

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#9) On February 17, 2012 at 10:19 AM, Jbay76 (< 20) wrote:

Wow, so BRD is in that bad of shoes?

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#10) On February 17, 2012 at 1:13 PM, XMFSinchiruna (27.35) wrote:

JBay,

I'm just growing frustrated at how long its taking for the company to generate the profits that Black Fox is capable of generating. I think you'll agree I've been patient for quite a while.

I'm not touching my core position, but nor am I adding to the position into this weakness. When the turnaround becomes apparent and observable, there will be plenty of time to add more shares at a significant discount to fair value even if it's a bit higher than here.

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