Rio Alto's La Arena

321gold (02/09/2010)
"I went to Peru to visit a mining project last week. I flew to Lima, spent the night at a hotel right at the airport and got up early to fly to Trujillo in the north of Peru to visit the La Arena gold/copper project of Rio Alto Mining. And my conclusion after a very short visit was it literally looks too good to be true. That's why the company is selling for maybe 25% of what it should be selling for. It looks so good no one wants to believe their lying eyes. But it is just as good as it looks and it's for certain not too good to be true. It's the real deal.

Rio Alto has brilliant management. They understand Peru, they understand La Arena and they have a plan that is excellent for shareholders. They will be in production this year. This is the sweet spot where most of the risk has been taken out of the deal. I don't even want to spend any more time discussing how silly a price of $3.50 an ounce for gold is. It's absurd and won't last for long.

I am going to buy some shares. I like the story. I am not paid to write this piece, they are not yet advertisers but I would be shocked if they don't feel like shouting out their story from the highest hilltop. I am biased but in a good way."

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