An SFMI comparison....for comparison's sake.

I am watching "XXX" stock that is a hot pick favorite of a well known letter writer who I like. It is trading at 68 cents today with 90 million shares out, exploring 6 different properties, drilling on three….having just completed a 10,000 metre program on one…”to confirm its model” down so far, to the 800 meter level. The property has been explored and surveyed since 1927. Holes 1 thru 6 returned intervals of gold ½ meter to 1.5 M thick with grades ranging from 1.6G/T to 4.9 G/T…with two high intercepts of 21 and 13 G/T. Assays are due on 3 more holes…and a phase 2, 20,000 meter program is starting. XXX has several properties and one other that has decent grades of around 4 G/T. No one even has a clue yet as to how much gold they will find. It will take years.

This company completed a financing in Dec. and has working capital of $5 M as of end Dec….with deferred exploration expenses of almost $9 million. Administration, professional and consulting fees are ongoing and a stock based compensation program is in place. Co. development will depend on its ability to raise funds.

So, here we have a very promising little exploration venture on the VSE with years of drilling, exploration, assaying, development, infrastructure, financing, permitting, and feasibility studies (Canadian) to carry out before it can even be proven to be a potential, profitable small miner. Then it has to raise even more funds to build a mill. What year might that be?

How much more dilution of shares? At least to150 million I would guess.

Now, compare the above XXX to SFMI, with above ground ore at higher grade than the XXX fledgling explorer has just found up to 600 meters deep…but we know that SFMI has at least $60 million in the tailings dumps alone. SFMI is all the way down the road to being a producer within a few weeks. That’s years ahead of our XXX example and money in the bank. Then look at all the infrastructure SFMI has in the mines and all the rich ore awaiting in nearby, accessible veins…both gold and silver…estimated by respected geological reports to be up to 5 million, high grade ounces of gold/silver.

How in the world does XXX, a first trimester conception at 68 cents today even begin to hold a candle to SFMI, trading at the ludicrously basement bargain price of 5 cents?

How, I ask you, does any of this make sense???

Now get this, here are a few quotes from the said, respected and successful letter writer of this junior explorer:

“We have seen huge market speculation in this stock and now those speculators have exited their positions. This kind of activity is not uncommon in junior mining stocks when expectations of a major discovery are running high…( can you imagine what he would say if there were 60,000 oz. plus potential 5 million?)…

We have just witnessed how powerful the two biggest motivators (greed and fear) can interact with a stock regardless of what the facts are… I have not sold my shares. I was in the category of watching the price go up and down without selling. The reason for that is because I am not in this story for a double, triple, or quadruple. I remain in this story because I am looking for an elephant discovery that could make our market cap $1.4 billion or more with one exciting drill hole. With 90 million shares outstanding, a $1.4 billion market cap would give us an XXX a share price of $15.50. That is the potential of XXX with the right drill hole

According to the theoretical model we are looking for, the glory hole … All It will take for EXS to take off is one hole that has a big enough (more than 20 meters) intercept of 7 grams gold or more per tonne of rock. That could easily happen on hole number seven…Once the stock price settles, you will see the share price rebound as this buying comes into the picture. You'll know when the stock settles because the volume will be below a million shares a day. Once that happens, then and only then will the price begin to rebound..”

Can you say “BRUTALLY UNDERVALUED” for SFMI???? Compared to XXX it should be trading at $5 minimum.