(BUF.U and BYBUF-OTC)
www.buffalogold.ca Buffalo Gold Ltd.
1111 West Georgia Street (24th Floor)
Vancouver, British Columbia, Canada
V6E 4M3
Tel: (604) 685-5492
Fax: (604) 685-2536
Toll Free: 1-888-685-5492
A Prelude Before We Begin
It has been a dismal month or two for the resource sector based upon the price of gold (and silver) and the corresponding decline in prices we find many of the junior mining companies we are covering. However, I want you to clearly understand my position on the long term prospects for the Junior Mining Sector. I’m bullish—I’m very very bullish.
We all need to understand that this correction in the precious metals is simply that, a correction. Put in terms even more accurate, I’d suggest to you that this is a consolidation. Is there a difference? Well, perhaps and perhaps they simply go hand in hand. The gold market corrects from lofty heights attained too quickly in the overall scheme of things and then requires sufficient time to consolidate in order to repair the technical damage that occurred after the fall from grace. That is where we are now.
This is a generational bull market. That means that these types of markets in the resource sector come about once every generation if we’re lucky. The old pros know that there are ebbs and flows in a sector once the primary trend has been established. Never forget the primary trend can be up or down and that the same principals apply in both directions; the most important one being “don’t fight the trend”.
This is a good news bad news story. It’s good news because we are witnessing and participating in this precious metals bull market. However, the bad news encompasses all the reasons why this Bull Run in gold and silver is going to be so historic. Those reasons have to do with government policies that are simply atrocious. Remember that it took a great deal of misguided polices over years and years to bring us to this point.
The last time we had an environment that even somewhat resembles this one was back in the 1980’s some 25-30 years ago. However, back then, the US was a Creditor Nation; not a debtor nation. The population had not yet been inculcated, i.e. brainwashed, to borrow until there was no possibility of repayment of the debt in one’s lifetime. Back then there was the possibility of raising interest rates without throwing the country into a Depression.
Citizens of the US have been taught to ignore every sound financial principle known throughout history from the first seashell currency. Most importantly a country just like a family, should not consume more than it produces. But in order for the US to maintain its lifestyle it has had to do exactly that—it has to consume more than it produces. To make matters worse, these policies have not only been endorsed by the government, they’ve been encouraged!
Speaking of Interest Rates, our beloved Mr. Greenscam, who in my opinion was the worst Fed Chairman in History, thought he could buck the trend and create enough liquidity to always stave off a recession. The sin of this is that Greenscam knew the importance of gold. He knew that it was real wealth and that currencies needed to be anchored to something tangible and valuable or they are abused. He knew all of this and much more and yet he allowed and was a willing participant in the debasement of the US dollar.
Remember that the Federal Reserve is in no way part of the US Government but an independent third party entity that is allowed to print money and then lend it to the citizens of the United States. Pretty nice gig if you can get it.
There is simply so much baloney that has been presented as fact that it truly boggles the mind.
Buffalo Gold: Introduction and Highlights
I shall get straight to the point, “BYBUF”. That is the new US OTC symbol for Buffalo Gold and this is the second in a series of articles and updates I’m writing on Buffalo Gold.
Why and Why Now? They have great projects, a talented management team (that just got better), and of course, there is always that Mt. Kare Property in Papua New Guinea. You know; the one I’ve been involved with for the past five years? Mt Kare has a resource of about 1.8 million ounces of gold and about 20 million ounces of silver. The particulars of those numbers are in my article titled: Buffalo Gold There’s a Stampede A’Coming and it can be found in my archives at www.goldseek.com
But I believe there is a grand plan for this company and it is being created by Damien Reynolds, President and Chairman of the Board. Simply put, it includes the idea of focusing the efforts of the company on the Australasia region of the world. Since my last article on the company, several new acquisitions have empirically verified those efforts. However, the main focus is still Mt. Kare and drilling is underway to expand the gold and silver resources on that property. New results from that program are just out and the highlights are:
Buffalo gold intersects 114.8 m of 4.03 g/t gold at Mt. Kare gold project;
Pre-feasibility study expanded and resource estimate confirmed
Buffalo Gold Ltd. has released assay results from the first 13 drill holes from its infill drilling program at the Mt. Kare gold project in Papua New Guinea. Highlights of the drill results include:
- 114.8 metres of 4.03 grams per tonne gold in hole MK06-38 (this is truly an exciting in-fill result—take heed!)
- 9.1 metres of 13.11 grams per tonne gold in hole MK06-09 (hole abandoned while still in mineralization due to drill conditions — Buffalo plans to re-drill the hole)
- 56.0 metres of 3.76 grams per tonne gold in hole MK06-19.
Another important component of this particular press release: Buffalo has now expanded its 2006 drill plans for the Mt. Kare project, increasing the program to 6,500 metres to include additional targets. A second diamond drill has been mobilized to the project to speed up the completion of the remaining infill drill holes and to drill step-out and exploration holes.
The entire Press Release can be found at: www.buffalogold.ca Then go to Investor Info and then to the current Press Release.
These are excellent results, and yet the gold community is not taking note. However, this is not surprising because several companies on our list have come out with sensational results and generally speaking, there are nothing but yawns. I would suggest that if you have the available funds, now is the time to brighten up your portfolios with some of these companies that are being brought to your attention.
The future is bright and if you believe as I do that gold and silver are going to be an outstanding investments as the months wear on, I would seriously consider reviewing the facts on Buffalo Gold. Try and get the “feel” of the company—of the team. Review Long View Strategies and see what they’ve accomplished in the past. You will be encouraged.
In addition to gold and silver and still off the radar screen of many investors, is Uranium. It has appreciated dramatically over the past several years and the acquisitions recently concluded by “BYBUF” tell me that this company has its eye towards the future. It has an eye towards Uranium.
Remember that Uranium in and of itself is not evil—it’s dangerous when it is enriched for weapons systems, but it can also be used for positive ends. With the world quickly running out of oil, there are several options. One is Solar, one is wind, one is geo-thermal, one is hydrothermal, and one is nuclear. Of all the alternatives, nuclear appears to be the one that can produce the most energy over time for the maximum number of people. The US is way behind the rest of the world in building Nuclear Power plants. But we have the technology and like it or not they are coming because the oil supplies of the world are dwindling.
Back into Focus
As I just mentioned, Buffalo Gold has been making aggressive acquisitions in the Australasia region and to put it mildly, there is significant activity occurring within the company. Talented new people are coming on board to fill important positions and this is going to assist the company in fulfilling its business plan while facilitating the process of extending its message into the international public domain. The message is that Buffalo Gold is a dynamic exploration company with an orientation towards gold, silver, and uranium. It is a company with special projects, aggressive leadership and past successes. And the future success of the company could very well lie in Australasia.
I would like you to understand that past successes come via Tournigan Gold (TVC-V) and Long View Strategies Inc (LV).
One of those new people coming on board is Brian McEwen who will be Buffalo’s new President and COO. Personally, I am not well acquainted with Mr. McEwen, but from what very reliable sources tell me, he is a talented manager with an excellent work ethic. He is also a mining geologist with 25 years in the business on an international scale. My sources tell me that he is a straight ahead, no nonsense kind of guy which is exactly what Buffalo Gold needs right now with all of the growth occurring in the company. I think Damien Reynolds has an eye for choosing the right people for key positions and this appointment will certainly assist Buffalo to move forward, especially in this environment of precious metals consolidation.
I just want to take a moment to personally extend our sympathies to the family and friends of John Tully who was the past president of Buffalo. A while back he passed on after an extended illness. He was a very classy gentleman and the company will miss him and the leadership qualities he demonstrated.
A Large Puzzle Coming Together
As you probably realize by now, Damien Reynolds is the President and Chairman of the Board of Buffalo Gold. I believe that he is in the process of creating a very substantial company with Mt. Kare in Papua New Guinea as the flagship property; his “lead pony” if you will. However, this company has an eclectic mix of valuable properties which mandates pulling the pieces of this very large puzzle together in order to create some significant value for its shareholders. I think Damien has already demonstrated that he has the boundless energy and talent to affect such a scenario.
The puzzle is of course, the Australasia region and the tremendous amounts of resources that are available there. Damien and brother Lee Remolds grew up in that corner of the world and have an excellent understanding of the geography and where that geography can lead. Of course, Mt. Kare is smack dab in the middle of that region and holds enormous promise.
Again, I’d ask that you refer to my archives and review, “There’s A Stampede A’ Coming”. It will get you up to speed on BUF.U very quickly. In that article I mentioned that Buffalo was planning on having an OTC listing within a few months and sure enough that feat was accomplished right on schedule! The symbol is BYBUF on the OTC. This is a very important development because US investors can purchase shares directly through their US Brokers.
But the news becomes even better.
If you choose to become involved in Buffalo Gold, might I suggest that you open an account at Pennaluna and work with John Worrell or his brother Ron Nicklas. This is very important because these gentlemen are principals in Penn Trade and / or Pennaluna (basically the same company) and will offer you excellent executions and minimal commissions. Why? Well, for one reason they are market makers for BYBUF.
Please call John (Toll free at 1.800.535.5329) mention my name and request the special commission structure that I have arranged for you. I believe you’ll be very pleased with their service. As of June 1, 2006, the BYBUF symbol is only just becoming active in the US and therefore the market is just being created. As time goes by, there will be tighter spreads in terms of bids and asks. Be patient and place your bids where you feel most comfortable.
Pennaluna is the full retail brokerage firm and Penn Trade is the on-line trading platform. The company has been in existence for over 80 years and I have full confidence in them. Pennaluna.com is the broker side of the business. www.penntrade.com and you can sign up on line.
While we’re at this, I have to say that some of you have told me you are a bit confused by the original Canadian symbol of Buffalo Gold which is BUF.U. The U simply stands for US dollars. So BUF.U is simply a Canadian based Company that is traded in US dollars. There is nothing more to it.
It is quite refreshing in this day and age for a company to make a pronouncement and then delivers what was promised. Of course that is the way it should be, but frequently there are discrepancies where reality and promises meet.
I think that BYBUF is still in a quiet period but that period may be about to end. Once through that period, I believe the share price will begin moving again. BYBUF has an excellent PR team in place headed up by Julie Hajduk based out of Vancouver. If you have any questions as a US investor, Julie is knowledgeable and possesses a great deal of integrity. I like her style immensely because she is a person who works tirelessly on behalf of Buffalo Gold shareholders. She is a professional, she’s effective, and she cares. That’s not just idle chatter, that’s reality and the point is you want that kind of person on your team when you’re building a company. Julie can be reached toll free at 1-888-685-5492
There is one more point I’d like to mention. After only three weeks of being listed on the OTC, Buffalo Gold currently has seven market makers in the US. There are a team of people looking to elevate the profile of this company. And while the share price has shared the same fate of many of the juniors in this consolidation period, I believe it will be one of the first to move up once the confidence of the community reestablishes itself. It is my opinion that these are excellent entry level prices as of June 29, 2006.
The Focus is Still Mt. Kare which is in Papua New Guinea
You’re going to see a good deal of activity if you review the company’s recent press releases. There are more acquisitions and Damien Reynolds is looking to build value into the company through these acquisitions based around gold and Uranium. Most of these acquisitions and the area of focus are in the Australasia region. However, I would encourage you to keep your focus on the Mt. Kare project in Papua New Guinea. Think of Mt. Kare as the cake and all the other acquisitions as icing. Mt. Kare is where Buffalo is currently drilling and my understanding is that a portion of that program has been completed but they are waiting for additional drill results before making an announcement. I can assure you that no grass is growing under their feet.
Buffalo currently has less than 23,000,000 shares outstanding.
I will say this. Based upon the quality of the projects this company has acquired and the management directing them, we could see the share price significantly higher than where it is currently residing in the not too distant future. Yes, I’m very bullish on Buffalo and yes I’m doing work for the company and so I might be considered bias. But then again I’m biased on all the companies we cover or we wouldn’t be bringing them to your attention. But if you review the companies I’ve been covering, and how well they’ve been doing, I don’t believe you have grounds to be too disappointed. We’re quite careful as to the quality of the companies with which we become involved. That being said, we are also in this for the long haul. I believe we need to be patient and allow the management to proceed as they see fit. I guess what I’m saying once again is that “day traders need not apply”.
You have to realize that there are two different kinds of resource companies—well, any company for that matter. There are the companies trying to build value for themselves and their shareholders and then there are “stock plays”. You don’t want to be part of stock plays because they are synthetic. What goes up, must come down. Usually the process unfolds quickly and little ole you and little ole me are not going to be advised of their time schedule.
For the record, I’m also extremely bullish on gold, copper, silver, and uranium. Any company that is well managed and has exposure to any or all of these commodities should do well for investors.
The Flagship Property
Currently Buffalo Gold’s flagship property is the Mt. Kare Project in Papua New Guinea, which again, is in this Australasia region. This is the project that is joint ventured with Madison-Minerals (MMR and MMRSF) and one that I’ve written about extensively. If you want to know about Mt. Kare, just review the piece titled Madison Minerals and the Monastery Monk and you’ll have an excellent idea of the potential of this play. However, for the record, I shall say that Mt. Kare is situated in the middle of an area where some of the richest gold mines on the planet are located. Madison has proven up a resource of 1.8 million ounces of gold and 20 million ounces of silver after spending approximately $30 million Canadian and eight years of work on the property. Buffalo Gold is now in a position to pick up the ball and move it towards the goal line. That means simply that Buffalo can benefit from Madison’s hard work over the years and advance the exploration to the point it becomes attractive to a major or is turned into a mine given the correct circumstances.
Conclusion
Ignore the stagnant market in precious metals because it is only going to last for an additional month or two at best. By the end of August 2006, don’t be surprised to see some of the select Junior Mining Companies at considerable prices than where they are today. Buffalo Gold has a lot going for it, not the least of which were the exciting infill results just released from the ongoing drill program at Mt. Kare. The numbers truly do speak for themselves. I know that management is committed to making Mt. Kare a success and as importantly, Mt. Kare has the gold and silver on the property to warrant that success. It will go to the next level and I personally believe you will be well served by participating in the process.
Until Next time,
D. Stewart Armstrong
Posted by D.Stewart Armstrong in Articles