NGM: Big Upside Potential

J. Taylor's Gold, Energy & Tech Stocks (02/25/2011)
"Northern Gold Mining Inc. is in the process of earning an 80% interest in two gold exploration properties in Ontario that appear to have the potential to become world-class deposits on a very large block of claims known as the Garrison Claims.

The flagship property on the Garrison Claim area is the Garrcon Property. The second property, located adjacent to the Garrcon, is the Jonpol Property. Both of these properties are located along the prolific Destor-Porcupine Fault System. Both are very promising properties. [There is]. . .the potential for an Osisko-sized open-pit deposit. For those of you who may not follow Osisko, it has an 11.67 Moz. resource and is projected to produce an average of 463 Koz./year at a cash cost of $382/oz. Osisko's market cap is around $5 billion, compared to a market cap of less than $50 million for Northern Gold Mining.

I believe the upside potential for this company's shares from its current price level is very significant, given the company's: a.) Current share price; b.) Current resource; and most importantly, c.) High likelihood of outlining a very major open-pit gold resource in an area where political risks are minimal and infrastructure is as good as it gets. In the many years I have been following junior gold exploration stocks, it's hard to think of many that have a better shot than Northern Gold at coming up big and generating huge investment gains."

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