Nevsun, Sunridge and Eritrea

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August 25, 2009 08:49 AM


Lots of inquiries about action today in Nevsun Resources. As you know this is a prime takeover candidate IMHO. The shares pulled back recently during the consolidation in gold and the umpteen no, new-news story of America’s political view on Eritrea. I had hoped this way overblown concern and gold weakness could bring Christmas early by allowing purchases at $1.40 or under U.S. We almost got our present.

Whether today’s latest rumor of* takeover amounts to anything or not, I do believe barring a collapse in metal prices* and/or a dramatic escalation of the friction involving Eritrea, a takeover of NSU is not if, but when. This is a superb project with a fantastic payback schedule.

If and when such a deal takes place, I suspect Eritrea can become a major area play given the tremendous exploration potential it has. Sunridge Gold (SGC-TSX.V $.40) is a natural “next-in-line” play with a strong package of projects. My belief, albeit prejudice due to the working relationship I have with SGC, is SGC becomes the next institutional/mining company darling in the area.

Stay tuned.





grandich.agoracom.com