"I've always read about the great investors: they worry first and foremost about their downside risk. The upside potential then takes care of itself.
 
With that in mind, I made Tyhee Development my favorite gold stock and also the most heavily weighted in my portfolio.
 
Here's why:
 
They are sitting on a global gold resource, compliant with 43-101 standards of reporting under Canadian Law, of roughly 1,500,000 ounces. They are situated in mining-friendly Canada, where property rights are as protected as they can get. In addition, they own a property that has a resource of 600,000 ounces of gold, but is not compliant with 43-101 standards, because that deposit was delineated before the newer reporting standards were established. The CEO thinks the gold is there and probably expandable even more, as it sits in the very same type of geologic setting
as his current 1,500,000 ounce deposit at the Ormsby Zone.
 
In addition, When gold went above $500/ ounce, the company changed its focus from underground mining of its 1,500,000 ounces (contained in 2 distinct deposits) to open-pittable bulk mining, and is busy recalculating and updating its global resource for these 2 deposits. The CEO is on record as saying that he thinks there's a good chance the resource will go up by an additional 1,000,000 ounces.
 
So the total projected resource might be as high as around 3,000,000 ounces. At an in-situ valuation of $100 per ounce in this environment of $700 gold, the total value of this package would be on the order of $300 Million Dollars. Divided by 160,000,000 fully-diluted shares, and you have a rough share price of $2.
 
The stock currently trades around 50 cents Canadian, on the
Toronto Venture Exchange, under the symbol TDC.
 
There is also a lot of blue sky there, as most of the ounces are no deeper than 400 meters down, but most other mines ever mined in the area, were mined to depths of 1,000 meters and deeper. The CEO, David Webb, a PHD in Geology who did his Doctoral thesis on the very area he's operating in (Yellowknife, NorthWest Territories), thinks this projected mineralization at depth is very likely.
 
Additional blue sky, among many other properties under their control, is a property they recently staked close to Yellowknife, which the CEO says has certain rare characteristics from a geologic point of view, that lead him to believe it could be similar to the Cripple Creek deposit in Colorado operated by AngloGold. That deposit produces about 300,000 ounces of gold per annum.
 
Now I know this is all blue sky, and no more. But the point is the shares have very limited down-side risk, and very high upside potential reward within the next 6 months to a year, just based on current reality. The blue sky is really just icing on the very sweet cake.
 
This gold junior is a www.agorafinancialpublications.com/RudeAwakening/RAissues/2007/MayJun/RA050707.htmldeep-value keeper!"