AMNP is a `Golden Opportunity` once again
As I have said MANY times, I LOVE gold stocks. That is why I continue
to watch that sector closely. One of the high-fliers of recent days is
American Sierra Gold Corporation (
AMNP).
I had alerted my members to it near the end of its last run, but the
members were still able to book gains over 20% before its "vigorous`
selloff.
The encouraging news is that the company still has GREAT prospects,
but now it has a GREAT chart! The selloff has brought the price from
its high of around $1.50 ALL the way down to around $0.83.
What I see is very encouraging:
Positive price trend for the first time since its gigantic sell off
Decline in downside volume is a good sign that the sellers are "all
out". Buyers appear to be coming back into the stock
Stochastics are deeply oversold, but cross and the angle suggest that
traders could see a bounce in the near term
The MACD bearish signal is decreasing...once the indicator turns
bullish and gets above the zero line...WATCH OUT -- this is a GREAT
chart set up!!
AMNP the company
The company has not made any major announcements since our last alert
and they continue to execute on their plan (although they did update
their website). Here is a quick review of
AMNP.
AMNP now owns two gold properties:
Sierra Madre Mountains, Mexico
AMNP calls it their Urique (You-reek-eh) Project. Here are the details
of the project:
AMNP holds a 90% interest in 11 exploration permits totaling 72,740
acres in the prolific gold belt of the Sierra Madre Mountain Range in
Mexico....known as the Urique Project. The company believes that there
are multiple exploration targets in this area which they are currently
exploring (or plan to explore).
Their Urique Project was introduced in an earlier PR release. The
release gave some details about the project, but the most compelling
were
AMNP`s land package sits 10 miles from the producing El Sauzal
gold mine owned by Gold Corp. 6 and which has produced, on average,
300,000 ounces of gold per year over the past 3 years." Read the full
release here
Discovery Day Gold Project, California
The company has finalized the purchase of their second project.
AMNPacquired a 75% stake in the high-grade Discovery Day Gold Project. The
Discovery Day Gold Project covers over 950 acres and controls the
entire Knownothing Mining District, which includes the four principal
mines -- the Gilta, Discovery Day, Hansen, and Knownothing and several
other smaller mines and prospects.
AMNP`s has agreed to issue
stock/warrants and to invest $2MM over a two year period in the
project as their consideration.
An ore reserve estimate from 1996 published study by Cooksley
Geophysical, Inc. reported a total inferred resource of 1,165,000
ounces of gold.
To read the full release: Click Here
AMNP Capitalization
AMNP previously announced that they had gotten a financing commitment
for $6,000,000 in financing NOW and it is expandable by another
$10.5MM.
Mr. Wayne Gruden, American Sierra Gold`s CEO and President stated "We
are very pleased to have closed this equity financing agreement as it
will allow us to fund the implementation of our operations and
acquisitions strategy. This agreement is an indication of confidence
in the future of our projects and will ensure the future growth of the
Company."
I would certainly agree with Mr. Gruden that the potential of almost
$17 million in financing is a very strong "indication of confidence in
the future of our projects"
To read the full release: Click Here
Final Words
AMNP was a very recent "STOCK ROCKET" and I view it as having a
potential to soar again. Past performance is no guarantee that it will
fly this time, but I think it looks promising.
This is how I ended my first alert on
AMNP (and it still applies):
"The stamp of approval for
AMNP that the financing represents and with
gold continuing to trade strong, I think that Gold is a GREAT sector
to be in and
AMNP is a GREAT company to consider."
Let`s all have a great trade with this one. Good luck and good
trading!
To view the disclaimer visit
http://cts.vresp.com/c/InvestorSoup/a553c9cccf/ed931285a7/560f09ac8a
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