African Gold Group, Inc (TSX-V: AGG) Chairman and CEO Stan Bharti joins Midas Letter to outline the big uptick in the gold price and how the trend effects junior gold mining and the company. African Gold Group is developing a gold platform in West Africa with its principal asset being the Kobada Project in southern Mali. The official resource in Kobada is 2 million ounces, but the CEO sees the potential for a far greater resource. The economics were calculated at a gold price of $1,200 with a rate of return of almost 50 percent and a one-and-a-half-year payback. At the current $1,500 gold price level, those numbers dramatically improve as the current cost for AGG is under $600 per ounce. Mr Bharti explains “we’re going to start small, because the gold market is still starting; we’ll start at 50,000 ounces. The vision is to expand gradually to 100,000 to 150,000 ounces, depending on exploration results.” The CEO also outlines the several private placements the company have under taken in recent months – the latest for gross proceeds of approximately $3 million.
Should I buy gold? Should I buy ETFs? Should I buy majors? And the answer is, buy junior gold stocks, because they will give you the most leverage. If you want a 10X return, buy junior gold stocks. – Stan Bharti, African Gold Group CEO.
Mike Swanson – I talked with Skarica about this stock in a recent podcast with him and the company is now doing a new financing. For more info go here.
