GIX: Accumulate Now

Kaiser Bottom-Fish Report (06/01/2010)
"The speculative upside for Geologix comes from the possibility that Libertad turns into a major gold-silver discovery or the exploratory drilling at Tepal demonstrates that the gold-copper resource is several times bigger. Because Tepal has a significant gold grade for a porphyry deposit, it also allows the Geologix stock price to track increases in the real price of gold. Geologix thus offers bottom-fishers the homerun potential of exploration as well as price appreciation linked to advancement of a development play and higher copper and gold prices, with emphasis on a higher gold price. In terms of the rational speculation model, Tepal offers fair speculative value for a $500 million dream target when classified as a discovery delineation stage project, and close to fair speculative value if pushed into the infill drilling stage to reflect a $100 million dream target. Given that Geologix is sufficiently financed for its upcoming programs, is run by an experienced and well-rounded management team, has an implied project value of less than $20 million for its flagship Tepal project which has an indicated and inferred gold-copper resource with an in situ value of $2.6 billion and which has exploration targets that could increase the resource several times over, has a wildcard gold-silver exploration play at Libertad which the market is discounting 100% and has a liquid market with a cheap stock price thanks to an $0.18 unit financing whose warrant (not listed for trading) is no doubt being clipped by certain purchasers flipping their long positions, I cannot think of a better bottom-fish to accumulate as we head into the summer doldrums."

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