Ross Beaty is back investing big bucks in Colombia. Last week, by means of his investment arm Lumina Capital, he initiated a position in CBJ.V – CB Gold. Just a few days prior to that private placement CBJ.V published drill results containing what can only be labelled ‘monster gold grades’.
Drill result news: Vancouver, British Columbia: October 24, 2011 – CB Gold Inc. (TSX-V: CBJ) (“CB Gold” or the “Company”) is pleased to provide summary results from its on-going drilling program at its Vetas Gold Project, District of Santander, Colombia (“Vetas Gold Project”), located 10km south of AUX’s La Bodega and La Mascota deposits:
including: 40.89m of 17.17 g/t Gold
You know the name of the game. The mining business is risky. Buying into exploration companies listed on the Canadian Venture Exchange is even riskier. But we also know that someone like Ross Beaty is better connected than the rest of us. If he commits large sums of money he most likely does so because he deems odds to clearly be in his favour.
He already did it in the past. VEN.TO – Ventana Gold is the one he went in early. Then the fight of the two mining magnates over Ventana broke out. Ultimately VEN.TO was bought out by Eike Batista. When Ross Beaty originally went in I simply followed the smart money and positioned myself accordingly. Long-term readers of my website did the same and held on to that position for a long time and sure remember the incredible performance that trade yielded.
Colombia has already offered a lot of great stock trades in the gold mining realm. It looks like there is more to come. A few of the past that come to mind are BAT.V – Batero Gold and CNL.TO – Continental Gold. I also did publish a ‘Colombia Mining Stock List’. But to make sure to have access to the most up-to-date technical analysis resource and a list of the stocks I am watching very closely go to:
The updated chart now also contains SWD – Sunward Resources, RD.V – Red Eagle Mining and GXG – Colombia ETF.
Up-to-date CBJ.V – CB Gold price chart on my public list.
Look at the volume. Need I say more? This is buying pressure at its best. Institutions are slowly discovering the potential of this new story and are scrambling to build positions in order to have exposure in case this turns out to be the next winning stock everybody wants to own. We are not there yet, but the way I see it this is a brand new story about a stock with huge potential. A situation and a stock position traders dream about and that will be worth holding for months to come if the next set of drill results confirms the high-grade nature of the new discovery. Could follow-up news and gold grades disappoint? Certainly. Then again, ask yourself what else you need to know before you are willing to commit your hard earned money. If you don’t know what I am referring to, it is probably a good idea to re-read the passage about Information Risk vs. Price Risk I published a while back.
Disclaimer: I decided to stop publicly disclosing my positions for the time being. You know the drill. I might be long or short any stock I mention at any point in time. Enough said.
Wait a second. One last thing I do want to say. CB Gold. Colombia Beaty. Talk about the power of a decent telling name. Now if that isn’t a coincidence I don’t know what is 😉
CBJ.V – CB Gold corporate summary:
CB Gold is a rapidly growing mining company focused on the exploration and development of precious metals deposits in Colombia. CB Gold operates in the Vetas Mining District, in the Santander Province of Colombia. The Vetas Gold Project is located approximately 10km South of the California Mining District which contains the Angostura Deposit, La Bodega / La Mascota. In addition, CB Gold is exploring the Norte de Santander Gold Project, a large exploration package in the Norte de Santander Department, with 37 exploration properties totaling over 50,000 hectares.
The best traders are not afraid of holding on to strong stocks, they are afraid of holding on to losing stocks. – Tyler Bollhorn
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!
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