Klondike Gold (V.KG) remains halted at 12:00 Vancouver time. Speculation as to the cause of the halt is keeping the bullboards buzzing. However, the one bit of hard fact which may be pertinent to the halt, a paid for article at Oilprice.com, is pretty factual.
Given the significant ownership by Frank Giustra, co-founder of Goldcorp, and Peter Tallman’s – the CEO – track record, this is not your ordinary, pump and dump, junior gold play.
The V.KG story is very typical of Yukon explorers: look for where the placer gold has come from. Do the geology, find drill targets, drill.
So, if it is not a stock scam (and it probably isn’t), and the Oilprice article, while paid for, is generally accurate, why the halt?
Largely because the stock price charged ahead at the open this morning with bids as high as .75 on a stock which closed at .35 on Friday. This suggests that there may be some significant news which has, perhaps, leaked. Which would not be the first time news leaked from a camp or a lab or a conversation which should not have been overheard was.
Hey Jay,
After reading the article, I think IIROC probably did not like this statement in particular:
” The 2.4 g/t results from 2 holes at Lone Star on 11 July, was just the beginning of what promises to be a massive barrage of great news.”
You cannot say promises there. Just my best guess and agree with you about the potential in this stock.
That might be it, David.
There is nothing wrong with paid for pieces – I write them all the time 😉 But a piece which is objective, even if paid for, has a much greater impact. This, of course, is the secret of Bob Moriaty’s success at 321gold.com. He’ll tear a strip off management if he doesn’t think they are doing a decent job. And he still charges lots for a company to be a sponsor.
KG is poised to be a great story…and no they are not a client…yet.
Retraction released today: http://www.4-traders.com/KLONDIKE-GOLD-CORP-1410568/news/Klondike-Gold-Clarifies-and-Retracts-Technical-Disclosures-24988188/
It was a smart promo probably at the suggestion of Giustra.
1) Send out a hyped up promo.
2) Get halted and have your hand slapped by IIROC which brings more free pub
3) Release a retraction (sorry your honor, I withdraw the question) Genie is already out of the bottle!
4) Send out a PR speeding up the drill program and adding another rig. http://www.klondikegoldcorp.com/klondike-gold-mobilizes-second-drill-40-holes-planned-in-30-days/
When the halt gets lifted the share price zooms on huge volume!
Giustra is not a billionaire cuz he got lucky!
You’re more cynical than I am David…and very possibly right.