SmallCap Sentinel: Finding a Real Gold Deal

IRVINE, Calif., Feb. 11, 2009 (GLOBE NEWSWIRE) -- With gold at a seven-month high and still at historically exceptional spot price valuations, smallcap gold equities are assuredly being plied with the aforementioned spot price as the front man. But rarer still than the yellow ore, are companies that will eventually locate sellable gold. After years of watching gold stories come and go, SmallCap Sentinel is noting the differences between today's featured company, Hawthorne Gold Corp. (TSX-V:HGC), (Pink Sheets:HWTHF), and a cast of optimistic gold bugs.

Most of the hundreds of mining deals we've reviewed over the past years focus on the fact that they are located in the vicinity of previous successful gold operations. Hawthorne focuses on its own empirical data to prove the potential of their properties.

Most resource deals never move past the "core sample" stage. It's as if they fear that if they actually start mining they won't have anything good to talk about. All the blue sky of what might be in the ground is gone and they are left with the stark reality of what isn't there. Hawthorne has mines, heavy equipment and miners that will be bringing ore out of the mine in late 2009.

Hawthorne is buying out partners rather than looking for them. The stated reason is that it will save millions of dollars in future cash payments and provide the Company 100% control of the deposit. This inspires confidence in their belief that gold lies within. This strategy also increases Hawthorne's gold resource portfolio at a low acquisition cost (currently estimated at less than $2.75 per ounce). A company that doubts its prospects would likely never use today's cash to buy out a partner.

Most lesser resource deals show lots of maps but almost never show an actual mine. Hawthorne Gold prominently posts pictures of dirty-faced miners emerging from actual mines.

For a full StockUpTicks profile on HWTHF please visit:

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