Dear Jon Letter: Thom @ Large

Type:  Thom  

Thom Calandra - (www.babybulls.com)
ELKO, Nevada
--- When I first saw Railroad, the Nevada gold project just outside town here, I was trying to put the scale of it into a personal frame of mind. 

I mean, back in December 2010, I'd already had two people tell me the Railroad Gold Project could make Nevada prospecting history. Lucky for me, I bought the shares after CEO Jonathan Adwe cornered me in New Orleans at the investment show. And that was after I'd seen the project, vetted it against my Thunderbolt geologists list and watched as Mr. Adwe and David Mathewson, Gold Standard's chief geologist/VP of Exploration and a Nevada namesake himself, lived up to the promise of the Railroad Project. 

I guess this is a Dear Jon letter: as in, Dear Jonathan, thanks for being one of my 2012 winners, in a big way. 

Jonathan Awde, a Vancouver, Canada, financier, and David Mathewson are methodically notching their exploration targets at their Nevada site that resembles the geology of the Carlin trend. Gold Standard Ventures is the company.That's GV in Canada for ticker purposes. 

Lucky also for me, Gold Standard Ventures is a client of Torrey Hills Capital, the publisher of this BabyBulls report, I came across GV thanks to Bob Moriarty of 321gold.com ... and later ... after the insistence of Gordon Holmes at Streetwise Gold Reports. We are talking 18 months ago, [perhaps more}, when the stock was 70 cents and many drill holes awaited the GV team. 

The latest trigger on the now almost $3 stock was last week's 164 meters of 3.38 gram per tonne gold. But for me, the triggers were meeting Jonathan at the site, and getting into some science with Mr. Mathewson and his team of geologists. Things like density, alteration, similarity to Carlin Trend characteristics and Newmont Mining's (Premier Gold) Rain district rock. Plus, how Railroad's potential conceivablywill be the promise of a high-grade gold feeder zone, or zones, that the GV team is honing in on. 

Dr. Paul Zweng,an asset manager and Stanford doctorate in geology, tells me, "That was a heck of a hole at Rail Road.  Don't know if it will make history, as Maggie Creek and some others just N of the town of Carlin are the giants in Nevada.  That said, who cares?  If Rail Road could join the ranks of the major Carlin deposits that would represent a huge home run."  

The kicker on all this was getting to know Carl Pescio, yet another Nevada geologist whose roots are in the rock, so to speak. He and his wife vended much of the property that is now Allied Nevada. He said to me at some point, back when I was writing about this sizeable tract of property outside Elko, "Stick with these folks. Jonathan will make you a lot of money, and David knows this territory as well as anyone, and better," 

Anyway, I own about 40,000 shares.I just bought a bit more today (Monday).I know three fund managers looking to increase their stakes in this thing. We'll see how it goes with that feeder zone. 

Happy confluences: I am off to see Santa Fe Gold's holdings in the New Mexico desert. That's SFEG in the USA> In the meantime, I noticed a theme the other day, when Iamgold said it would purchase Trelawney Mining at a 44 percent premium to market. "Safe jurisdictions." Not that any place in the world is entirely copacetic about mining, even Ontario, where Trelawney is based. 

Still, I thought, 'Hey, a company like Iamgold (IAG in USA and IMG in Canada) is probably at the extreme end of the spectrum as it allies itself with prospectors and projects in Colombia, West Africa and elsewhere. Ontario, and other North America jurisdictions, take the edge off the Iamgold map-reach, just like vermouth does with a great martini. 

I looked at my holdings for relatively sound jurisdictions in Canada and the USA and maybe Europe and came up with Golden Valley MInes (GZZ in Canada) in Quebec; Carlisle Goldfields in Manitoba (CGJ in Canada); Gold Standard Ventures in Nevada; one or two others. Colt Resources (GTP) in Portugal. Yes they each have attendant geopolitical risk -- the euro in Portugal; First Nation challenges in parts of Canada. But in the mind of a business development geologist at Kinross, or at Iamgold, or Be2Gold. these Norte Americanos look a lot tamer than holdings in Ghana or Mali or Colombia or Nicaragua. 

I don't own enough of these, preferring to go all-out in Ghana, Cambodia, Mali, Colombia and so on. Much of my resour es portfolio, with four or five exceptions, I must acknowledge, is looking wan these days. Lucky for me, I do not use margin, 

Still, I need a splash of vermouth, 

Not on that safe-juro list, but in Iamgold's sphere, is Bellhaven Copper & Gold in Colombia. BHV is a 12 percent or so holding for Iamgold, which apparently likes what it sees in Colombia's Middle Cauca Belt in and around Antioquia. I have owned a lot of BHV for about three years noI w. I have been out to the country of Colombia 16 or more times in the past four or five years, and will be there again in two weeks. 

That is all for now. 

Thom Calandra is a writer and an investor. His biography is at www.babybulls.com.