Dutton Associates initiates coverage of GoldSpring (OTCBB:GSPG) with a Speculative Buy rating and a $.07 price target. The 20-page report by Dutton senior analyst Mike Niehuser is available at www.duttonassociates.com as well as from First Call, Bloomberg Professional, FactSet, Capital IQ, Zacks, Reuters, Knobias, and other leading financial portals.
The Comstock is one of the greatest mining stories in U.S. history because of the historic level of gold-silver production, the large number of technological innovations laying the foundation for modern underground mining, and otherwise one the most colorful periods in the Old West. Eventually technological advancements reached their inevitable limitations in the 1880’s for deep underground mining, and with falling metal prices and fragmented approach to mining. GoldSpring has consolidated over 80% of the fragmented ownership interests making possible the first comprehensive development/production of the Comstock with modern exploration/mining technology during a period of stable and rising precious metal prices. The first opportunity for investors in the Comstock in over a century. GSPG has the dominant land position on the Comstock in the Virginia City area, south of Reno, Nevada. GoldSpring appears well positioned to rapidly move forward with the second phase of production, having assembled a property position in a prolific mining area, a mining operation, and a capable mining team. Production should help fund additional development of the historic Comstock District. As only 5% to 10% of their land position has been subject to modern exploration techniques and equipment, it would appear that there is ample opportunity to locate and mine previously unknown or unavailable resources. While GoldSpring is early in its understanding of the potential of the historic Comstock district, it appears that there is significant upside in the area mining from both open pit and underground.
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Dutton Associates is one of the largest independent investment research firms in the U.S. Its 29 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
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