"That's too small," I said. At the time, the stock traded for 15 cents. The market cap was (and is) minuscule. "Even if I liked it, I couldn't recommend it."
"Come anyway," he said.
"How am I going to justify the expense?" I asked.
"They'll pay your airfare and hotel."
"Just what I want, to be squeezed into an economy class seat, shipped across the country like a piece of meat, then end up in Reno."
"You'll find it interesting," he said. "Come and see."
So, I went. And sure enough, the project was interesting, as you'll see from the video I'm about to post. But this is not a recommendation. I'll explain why.
Good points include ...
- It's in a highly prospective geologic area.
- It was previously a working gold mine. Often the best place to look for gold is in an old gold mine. The old-timers missed a lot, especially if they were chasing visible gold in veins.
- The geologist, Tom Callicrate, really knows his stuff.
- Technology has improved quite a bit, and that could help the discovery process.
- The company that owns Eagleville is very small. Its share price is low.
- It has enough money to cover expenses for this year, but it will have to raise more cash.
- The volume on the stock is very low.
- I cannot emphasize enough how risky a gold exploration stock is, especially in an environment in which gold prices are drifting sideways to down.
And yes, it's near a working gold project. But that can be akin to the similarity between lightning and a lightning bug. The jury is out until they prove they have a deposit.
One final point: You can buy working gold mines with good prospects for expansion at close to book value right now. Sometimes cheaper than book value. Maybe not for 15 cents a share. But they're producing mines. Eagleville is not.
So no, I do not recommend this company at this time. It has a whole drilling program ahead of it. Anything can happen. They might actually turn up a sizable gold deposit. They might not.
Here is the video ...
And if you want to see a longer version of this video, with extra footage at the end of Tom showing us lots of maps about the project and the area, CLICK HERE