Stockchase Opinions

Rick Rule Gold Standard Ventures GSV-T COMMENT Aug 11, 2016

Very well owned, and is run by very good people. Has a new discovery in the single best gold address in the world, Carlin Trend in Nevada. However, it is fairly early on in the discovery process. Everything that could go right has gone right, and he is just too cheap to pay $750 million for 2 discovery holes.

$3.760

Stock price when the opinion was issued

precious metals
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TOP PICK
Has been popping on drilling results. It is high risk. It could be a triple. Last week they released 50 meters at 9 grams. Very rich, high margin deposits and this is what a major is going to want to buy. Buy part now and more if the market gives us a good reason. It is a gambling stock.
WEAK BUY

He is attracted to the land position and management team. If he wanted a drill hole play he would be attracted to this one.

COMMENT

In Nevada and has done well. An interesting story. They’ve had Oceana Gold and Gold Corp. do private placements with them. Have a small oxide gold resource in Nevada called Pinion. Not real big, and goes underground quickly, and the strip gets high. Recently pulled 2 holes north of there in the Dark Star project, which are quite good. If they can be extended, they are onto something significant. Moving to the north it tends to feather out, but is open to the south. What happens in the next 2 drill holes to the south is going to tell you everything you need to know. His concern is that there might be a blockage structure coming across.

TOP PICK

Always likes to own some gold because something always goes wrong in the world, and gold goes up. This has a $250 million market cap and is not a producer. A little riskier, but they have an outstanding deposit in Nevada with ability to improve the deposit. You have to think there is a bidding war coming for this asset, because there are 2 producers who are already in there. They have tons of cash and there are some major investors in this. Thinks this will be gone next year.

COMMENT

Have a very, very interesting land deposit in Nevada, and it is backed by some very big names. Good management team. Just made a small acquisition of a piece of land. He likes to always own gold, because you just never know when it is going to hit the fan. A good one to own if you are willing to take the risk of a non-producer. It is an exploratory play. Thinks it gets taken out in the next 12 months for more than $12. An interesting speculation.

COMMENT

A high quality team and a high quality place. They have an interesting discovery in very attractive real estate. However, it has a very large market capitalization. If you own, he would suggest that you begin to hedge your gains by using a trailing stop, and move it up if the stock continues to move higher. An expensive stock.

PAST TOP PICK

(Top Pick Mar 9/16, Up 172%) He looked to see who owned it and was impressed and got comfortable with it. They have a great management team and a great list of shareholders. They are in the 8th inning. Someone will probably take them out evenutally.

BUY ON WEAKNESS

An exploration project in Nevada. Really great geology. They are still reinterpreting all the stacking that has gone on in the batter, which he finds pretty interesting. Market cap is $700 million, so it is not a cheap stock. If it pulls back, this is one you could look at.

DON'T BUY

They are not getting ahead. It should be okay, but you have to manage the balance sheet and the capital structure and so far they are not doing a good job of that.