Larry Oakley's Bold Ventures

Posted 7/18/2011

New World Gold Corp. (Other OTC: NWGC)

Comment

One of my readers told me about this company. In this economy that is beginning to mirror the Great Depression, I am beginning to look at several gold mining situations. During the Great Depression, those who invested in gold stocks did very well, compared to almost everyone else who lost most of their wealth. I am just beginning to investigate this company, & so far it appears that it may be one that you should consider. I base that on its success in obtaining debt funding, acquiring two mills, & being at the start of its efforts to mine gold. As I learn more, I will keep you informed concerning what I find.

What NWGC Is & Does

NWGC is exploring & developing gold prospects & examining leases in order to increase its proven reserves. It has three producing gold mines & two operational mills that could very well create attractive revenues!

For the past few months NWGC has had strong growth via joint ventures, partnerships, & multiple acquisitions. It recently announced the acquisition of a second mill with the capability to process 40 tons of ore per day. With the upgrades in progress now, it plans to have the capability of processing 70 tons per day in the next two months & 100 tons per day within the next four months, followed by the completion to 150 tons per day.

There are several mining properties in this region and with the exception of NWGC’s milling facility, the nearest mill is roughly 100 miles away over dangerous mountains & small poorly constructed roads!

Preliminary studies indicate that the average grade from surrounding mines will be two ounces of gold per ton with potential pockets of ore as high as eight ounces of gold per ton.

Recent News

NWGC announced on 6/16/2011 that it completed a financing of $500,000 with an interest rate of 9% to allow for the completion of the upgrades to its mills. The funds will be paid back over three years. The capacity of the mills is being increased from 40 tons per day to 150 tons per day. Once the upgrades are completed, the Company expects the mills to produce in excess of 100 ounces of gold per day on a consolidated basis.

NWGC will continue to look for opportunities that will allow it to grow by increasing its proven reserves, production capability, & cash flow. It is in the process of defining & producing gold reserves on existing leases, while attempting to acquire additional gold reserves. The corporate strategy takes a long-term result-oriented approach to exploration & development in an efficient, profitable manner, while remaining environmentally responsible. The company has two categories of gold reserves: Domestic & International.

The U.S. remains one of the world’s most important gold producers. The U.S. is the third largest gold producing nation behind only China & South Africa. America is also a net exporter of gold. USGS believes that there is $700 billion worth of gold in the U.S. that remains undiscovered. The company feels that there are huge opportunities to acquire small non-producing mines that have undiscovered reserves waiting to be unearthed.

The company will focus on its domestic reserves as a priority, as they can be brought on production quickly. The U.S. is mining friendly, has political stability, & a terrific infrastructure.

My Opinion

I like the fact that NWGC will be able to process its own ore & generate cash flow while at the same time purchasing ore from other mines & generating additional cash flow from other sources.

Based on this preliminary information, & the state of the present market for gold, as well as the company’s planned growth plans, I suspect that it may be worth your looking into. Please be aware that I have not interviewed management, & when I do so, I will report my findings to you.

The last trade was on 7/15/2011 at $0.065 on a modest volume of 29,669 shares. Yahoo! Finance shows the market cap to be $3.67 million. My reader says that its 52 week range is $0.01 – $0.40, its shares out at 5/27/2011 were 58,895,175, & its float at that time was 18,171,685 shares.

For more information visit: www.NewWorldGoldCorp.com or www.nwgcreport.com.
My old friend James Meadows may be able to provide more information – you can reach him at 407-788-0123 at his office or 407-592-0123 at his cell, or at his email at JMeadows@cfl.rr.com

My comments in this column are strictly my personal opinion. At times, I will include forward-looking information as that term is defined in the Private Security Reform Act of 1995. Such information & the related company are subject to many risks & uncertainties. There can be no assurance that actual results, business conditions, business developments, losses & contingencies, local & foreign factors, & other matters will not differ materially from those suggested in any of my forward-looking statements. Such differences are the result of all sorts of factors (some examples: market conditions, competition, advances in technology, acquisitions, mergers, potential litigation, personnel changes, market changes, capital availability, etc., etc.).

Do not run out & buy a stock just because I am enthusiastic about the situation. Call the company before you buy -- satisfy yourself first. I always include a phone number for that purpose. My purpose in this column is to respond to your request for my personal opinion. You have the responsibility of making your own investment decisions. Do not give up that responsibility.

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