Jim Letourneau's Blog

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Here is what I wrote about the TSX Venture stock rocket, Goldnev Resources (GNZ.V) on July 10, 2007. It closed yesterday at $0.53 with over 27 million shares trading!

Goldnev Resources Inc.
Closing Price $0.105
O/S Shares 63,074,883
Market Cap $6,622,863

Goldnev recently announced a farm-in deal with a private company to explore and develop 155,443 acres of oil shale in Saskatchewan. There are significant oil resources tied up in this oil shale - management is floating a 7 billion barrel number for the district. The good thing about oil shale is that there is little exploration risk. Shale thickness and organic content don’t usually vary dramatically. Preliminary analysis indicates that there is an average of 30 meters of thickness with approximately 18 meters of overburden on the project.

Keep in mind that Goldnev’s neighbor, Oilsands Quest (AMEX-BQI), has 405,000 acres of oil shale permits with proven reserves of 2.4 billion barrels. The company doesn’t have a website yet but they should be able to promote this property to higher levels. Lets be pessimistic and assume they have 5 billion barrels of oil in place. Lets be cheap and assign them a valuation of $0.01/barrel in the ground. That gives a project valuation of $50,000,000 of which Goldnev can earn 50%. I don’t think Goldnev’s market cap will remain at $6.6 million for long.

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