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Teryl Resources: an undiscovered gold
dynasty
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A little-known mining concern is
rapidly making progress in exploring and developing gold-rich
properties in Alaska and Canada. The company is already sitting
on several highly developed claims in the Northwest with excellent
gold, silver and diamond prospects, and is ripe for being
acquired by its partner Kinross Gold. More importantly shares
of this company are being quietly, yet rapidly accumulated
by insiders who see its enormous profit potential with its
stock ready to explode.
The company is up-and-comer Teryl
Resources Corp., a natural resources concern that is beginning
a major investor awareness campaign on the basis of their
gold reserves and possibilities of finding a new major gold
strike. Teryl has 4 gold properties in Alaska within 6 miles
of Kinross Gold's famous Fort Knox and True North deposits.
Teryl's main asset, the Gil, is made up of 4 sub-properties
and is a 20%Teryl - 80%Kinross joint venture that already
contains nearly 11 million tons of drill indicated reserves
grading 0.04 ounces of gold per ton, or 433,000 ounces. Teryl
geologists are confident that current drill programs could
hit new mineralizations with grades higher than at Fort Knox.
The Fort Knox mill will be able
to process Teryl's ore at an estimated cash cost of US$200oz.
In 1999 Kinross purchased the True North property from Newmont
and La Teko containing 660,000 ounces of gold (same vicinity
as Gil) for US$28 million cash and 10.5 million shares of
stock. Kinross recently raised US$97 million dollars and is
on a roll. Kinross has about 400 million shares outstanding
trading around C$3 a share, while Teryl has about 30 million
shares outstanding trading around C$.15 a share. Clearly,
Teryl offers greater upside potential in view of the numbers.
From a trader and investor standpoint,
Teryl is a major percentage-play dream. Shares currently trade
around 13 to 15 cents with a well-defined trading range of
about 7 cents over the past five months. From a chart reading
perspective there appears to be strong supporting interest
at around the 7-8 cent area, which happens to be where a 1-year
uptrend line intersects. Proof that net accumulation has been
taking place is readily apparent in the chart, which shows
that two major lines of supply (i.e., trend lines) have been
broken in the past three months with a third and final area
of supply on the verge of being taken out. A penetration above
$0.15 would also signal a buy signal in the 3-day swing-trading
chart, a signal that cannot be ignored. When this final supply
of shares is absorbed (right around the 15 level, also the
5-month trading range top) by all indications there should
follow a rally up to at least the 23-25 cent level, a potential
gain of up to 60% over a short period! Once Teryl successfully
penetrates its 2002 high of $0.27, chart pivots suggest a
swing up to the doubling point of at least $0.54 before the
next consolidation. Based on price equilibrium studies, however,
once $0.50 is exceeded Teryl should have little trouble making
it to $1.00 after a brief consolidation.
Another technical study to see
the excellent trading opportunity Teryl presents is to overlap
the gold futures chart with Teryl's chart and note the upward
gains Teryl has made each time gold prices start to move.
Teryl made a high of $0.27 on the last gold move to $333oz,
and another similar run is clearly in the making. We know
of no faster way in the gold market to multiply trading capital
in a short time period than by trading in Teryl shares. The
entire gold share market capitalization is only about ½ the
size of just Coca Cola. It will not take much buying to see
gold share prices multiply by many times once the fun begins.
U.S. traders and investors are
urged not to let this enormous profit-potential Canadian stock
turn you away. If unable to trade these shares through your
current broker, we recommend using a firm in Idaho - www.penntrade.com
or phone (800) 953-2860. They have some of the best commission
rates to trade online or call-in (only $29.95 a trade). An
account can usually be opened within a day.
More information is available on
Teryl's website at www.terylresources.com
- symbol TRC on the TSX venture exchange in Canada. It would
be a good idea to leave your email to receive their press
releases.
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Clif Droke is the editor of the weekly
Bear Market Report, a combined forecast and analysis of U.S.
stocks and indices and international precious metals stocks,
and is the author of numerous books on finance and investing,
including most recently "How to Trade Gold & Gold Stocks."
Visit his web site for free samples of his analysis at www.clifdroke.com
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