Tonogold Resources, Inc. Stakes an Additional 25,600 Acres at Nyac, Alaska Gold Project Thursday April 20, 3:51 pm ET
LA JOLLA, CA--(MARKET WIRE)--Apr 20, 2006 -- Tonogold Resources, Inc. (Other OTC:TNGL.PK - News) has increased the size of its holdings in the Nyac Gold District from the original 57,600 acres (90 square miles) to 83,200 acres (130 square miles).
The original acreage is leased from the Calista Corporation. Approximately six square miles in the southwestern half of the Nyac District were targeted by Tonogold's 2005 surface geochemical program. The surface program delineated 1.5 square miles of gold values consistently higher than 0.1 g/t gold. Individual soil samples were up to 4.2 g/t gold and individual rock chip samples to 15.1 g/t gold. These substantial surface results in the southwestern half of the Nyac Gold District caused the Tonogold team to increase the holdings to 83,200 acres.
Alaska Earth Sciences Inc. staked 160 State of Alaska Mining Claims west, north, and northeast of Tonogold's leased lands. Each mining claim is 160 acres. These new claims cover areas with early, wide-spaced, anomalous rock chip samples taken in the 1980s and 1990s that, along with apparent favorable lithologies and alteration, and historic placer operations, delineate the northern and northeastern portions of the Nyac Gold District.
Don Strachan, Tonogold's Vice President of Exploration, has stated, "The extensive blanket of gold-anomalous soil in the southern half of the Nyac Gold District occurs over a vertical relief of 1,100 vertical feet. We expect the results of Tonogold's 2006 drilling to reflect that vertical dimension, and we eagerly await the results of the planned northerly sample program."
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Tonogold’s Nyac Gold Project covers 57,600 acres in one the most prolific mineral belts in the world – the famous Tintina Gold Belt. Donlin Creek – one of the largest undeveloped gold resources in the world – is only 90 miles away. Tonogold’s geologists estimate that Nyac could be of the same size and character as the Fort Knox deposit, located in the eastern Tintina Gold Belt. Over 500,000 ounces of gold have been produced in the Nyac district - but the source of this gold has never been discovered – until this summer. Tonogold conducted an extensive ground geochemistry program this summer (3,200 samples) and found a gold anomaly covering 1.5 square miles that may be the source of the district’s gold-bearing streams. Much exploration remains to be done at Nyac and the really interesting results for this property are ahead. However, the large surface gold anomaly leads Tonolgold to believe that excellent drill results are likely.
Strong Management Team
Jeff Janda, Tonogold’s President and Chairman, has a history of getting into bull markets early and producing excellent returns for investors. He took several companies public in the 1990’s and was an early participant in both the tech boom and the housing boom. He often says: “What tech was to the 90’s, resources – metals in particular – will be to the current decade.” Donald Strachan, Tonogold’s Vice President of Exploration and Chief Geologist is an expert in both Alaska and Nevada geology and has worked extensively in gold, silver, and uranium. More importantly, Mr. Strachan has a history of finding and expanding deposits. During the last mining boom, Mr. Strachan was a geologist for the highly successful exploration company, Houston Oil & Minerals – which was bought out by Tenneco.
How About Valuation?
Currently, Tonogold has 36 million shares outstanding on a primary basis and 39 million on a fully-diluted basis. At the current stock price of $.25 the market capitalization of Tonogold is only $9.1 million! The Gold Stock Analyst estimates that the average valuation per production ounce is $2,376 per ounce and the average valuation per proven and probable reserve ounce is $156. Other sources estimate that smaller exploration companies command a valuation per ounce of $35. Discovering just one multi-million ounce deposit would justify a valuation many times the current price!
Exciting Future Prospects
Next year Tonogold plans to drill its Nyac Project. Next summer’s drill results should provide good evidence of the magnatude of this project. Very often, exploration stocks make big moves as drill results become available and sometimes stocks move in anticipation of these results. Given the results of the surface sampling – Tonogold believes that the Nyac is a high probability drill target. In addition, the Company plans an aggressive property-acquisition program in Nevada as well as some exploratory drilling in Nevada. In the past year, Tonogold has acquired one property every four months and it expects additional property acquisition activity soon. Tonogold believes that it is poised to deliver extraordinary returns for investors in the coming year and that its shares represent a great way to play the gold bull market.
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Our system posted a BUY CONFIRMED today. The previous SELL recommendation was issued on 04.18.2006 (2) days ago, when the stock price was 0.4000. Since then TNGL has gained 25.00% .
BUY-IF is confirmed by a white candlestick which has an open equal to the previous close but closing higher. The buying price is the previous close ( 0.4900 ) according to the Rules of Confirmation.
The recent bullish formation leading to the BUY-IF signal is confirmed today. The market seems ready for a new bullish move. Though the market opened lower today, the day’s activity created a white candlestick that closed above the previous close. This is a valid confirmation criterion.
The significant failure of the previous SELL signal is unfortunately confirmed too. Our shot went away this time. It is a fact that such signal failures are more unlikely for higher rated stocks, but it is not possible to deal with all the vagaries of the stock market. The signal system, however, continues to do an excellent job in the overall, despite such failures. This can be seen easily with a quick glance to the signal history table.
We hope that you bought this stock and still have the chance to profit from the later phase of the bullish attack. Today your important benchmark was the previous close. You were supposed to watch the session carefully, feel its bullish tendency despite the lower opening, and go long after making sure that the prices stay over the previous close.
If you bought, continue to hold this stock until the confirmation of the next SELL-IF signal. You are on relatively safe grounds as long as the future prices continue to trade above the benchmark price and if an emergency warning is not issued. What to do if you did not buy? Maybe, you did not have time to follow the session or you simply delegated the delicate job of confirmation to us. Well, it is a bit late, but not too late. You may still find suitable prices for buying in the following sessions and still profit in case of a sustained bullish move.
The market is currently cold for short-sellers. Avoid any short sales and cover the short positions immediately if there are any. We erred significantly on the short side last time, but we are sure that you may easily cover your losses (if any) by basing your future trades on our signal system.