Many companies go through “dark periods” where news is very thin, but savvy investors can catch a glimpse of an opportunity by noticing significant movements in share value. Rostock Ventures Corp. (OTCBB: ROSV), a San Diego, California-based junior explorer that acquired the mineral rights to multiple gold prospects within North America, is a exemplifying this concept. The company has made it a practice to acquire properties in prolific regions next to producing or past producing properties of majors in the business. Although news from the young company has been scarce, share values have been steadily chugging upward for the last six months from subpenny to now more than 5 cents per share.
Rostock’s lead property, the White Gold Prospect in the Yukon, consists of approximately 3200 contiguous acres and has similar geological characteristics as recent gold discoveries in close proximity to this new prospect, including Kinross Gold Corp’s (TSX: K) Golden Saddle deposit. Kinross acquired the property through the acquisition of Underworld Resources in 2010. To date, Kinross shows the Measured and Indicated reserves on the property at 9.8 million tonnes at a grade of 3.19 g/t totaling 1 million ounces of gold with Inferred resources of 9.39 million tonnes at a grade of 1.91 g/t totaling 578,000 ounces of gold. Both Rostock’s and Kinross’s properties are located in the Tintian gold belt, one of the most recent gold discoveries in the Yukon and possibly one of the largest gold deposits in the world.
The Tintina Gold Belt is already home to several multi-million ounce gold deposits including Donlin Creek (29.3 million ounces Proven and Probable reserves), the producing Fort Knox mine operated by Kinross, the Pogo mine operated by Sumitomo Metal Mining in Alaska, the development stage multi-million ounce Livengood Project of International Tower Hill Mines Ltd. (NYSE MKT: THM)
Rostock also owns the Hants County, Nova Scotia Canada Gold Prospect, which is located in an area called the Central Rawdon Mines and includes a past producing gold mine that produced 6,744 of gold at an average grade of 1.264 ounces of gold per ton.
The company’s portfolio also has in it the McVicar Lode Mining Claim in the gold-rich state of Nevada in the U.S. The McVicar Lode Mining Claim is comprised of one claim with an area of 30 acres located in the Goodsprings (Yellow Pine) Mining District situated within the southwestern corner of the State of Nevada, an area known historically for prolific production of gold, silver and lead. The Root Mine lies one mile away with reported historic production of 3,896,057 pounds zinc, 858,055 pounds lead, 20,783 ounces silver, 44,002 pounds copper and 27 ounces gold.
While the other holdings in Canada and Nevada could hold strong promise, the Yukon property will be the main focus initially with the company stating in August 2011 that it was preparing to commence operations on the prospect.
Notably, an increase in volume has happened in the last two trading weeks with about 9 million shares changing hands and the stock price rising in value from around 2 cents to close Friday at 5.2 cents to surge well above its 50 day moving average. The web is quiet with rumors, which has to perk the interest of investors as potential corporate developments.
Investors are encouraged to visit www.baystreet.ca to view our technician’s opinion of the ROSV stock chart as the stock is holding a bullish trend.
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