Sunday, November 1, 2009

Lovitt Resources - 5 million shares outstanding, $2 million market cap, 400,000 high grade gold ounces

Hi,

My highlighted company for November, Lovitt Resources (LRC.V), can be accessed at the top left of the site. They are unique in that they have a substantial historical, high-grade resource (non-43 101) of 400,000 ounces of gold in the state of Washington and only 5.1 million shares outstanding with a market cap of under $2 million. A summary of the report in bullet points includes:

• Only 5.1 million shares outstanding with no options or warrants issued
• Non 43-101 compliant resource of approximately 400,000 ounces of gold (historical) at ~ 7 g/t
• No deep drilling on the Lovitt property but plans to deep drill it over the next few months
• Cannon Mine less than a mile away on trend produced 1.25 million ounces high grade gold
• Prior production at Lovitt Mine of 400,000 high grade gold ounces in the 1950's and 1960's
• In 1982, Breakwater went from $.18 to over $40 over the next few years on the Cannon discovery
• Current replacement cost of Lovitt Mine infrastructure and data would exceed $40 million
• Real estate and high tech processing equipment worth Lovitt's current market cap – gold for free
• Near-term production from high grade areas by hauling out material for milling
• Minimal capital cost of $1-$2 million....Kinross Buckhorn plant in Washington has excess capacity
• No prior promotion or marketing means this is a truly undiscovered story
• Current market cap of $1.8 million....private sales of this type have gone for over $10 million
• Safe jurisdiction with water, power, labor and other requirements available locally
• Patented claims 100% owned by Lovitt Resources with no exploration permitting required
• With gold at the $1,000 level and the junior market heating up, investors will be looking for high
grade gold exploration companies with a ultra-tight share structure for the most leverage
• Recent exhibiting at the Toronto Resource Show was the “coming out party” - building awareness

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