Gold and GemStone Mining Inc. GGSM
Allow us to introduce GGSM this morning. We are pretty pumped about the upside potential of this stock. The main focus of the company currently lays in the alluvial diamond and gold-producing area of Sierra Leone known as the Kono District.
One of things that makes it so exciting is the history of the region, being known as the site of many large finds in the past, including most recently in 2002, a diamondweighing 1440ct was found and sold for 75 million dollars in Belgium.
GGSM has worked very hard to receive the clearance (or concession) from local authorities to go ahead with mining operations, so that gold and diamonds can begin to be extracted from their three current claims which are sprawled over three separate chiefdoms.
The company’s near term focus is on the full funding, development and production of its first mining concessions, from which several instances of sampling have produced promising results.
The results show an average 56 carats per hundred-ton of high quality diamonds, slightly above the average grade of stones coming out of the region.
Equally impressive data is found, in relation to the incidence of gold with sampling taken from a total of 270 tonnes of gravel showing 62 grams /hundred ton at a purity rate of 96.4%.
Through the addition of a managing partner with experience in African diplomacy, we feel that the company will eventually be able to expand operations into surrounding chiefdoms. This addition is outlined in the PR from yesterday, that we’ve included here:
DRAPER, UT, Dec 04, 2012 (MARKETWIRE via COMTEX) — Gold and GemStone Mining Inc. (OTCQB: GGSM), an alluvial gold and diamond exploration and development stage mining company has announced Martin Hall as Chairman of the Board of directors.
Mr. Hall is working closely with numerous African governments in an effort to transform the mining industry on the Continent and to provide them with related technologies that will revolutionize the manner in which mining had been conducted in the past.
___In addition to a promising back-story, the GGSM Chart has been building steadily over the past few weeks, running 100% from a low of .07 on Oct.17th, to .14, reached on Monday.
As you can see below, the stock broke above all of its moving averages midway through November. It has been on a steady uptrend since then, with only a few instances in which it dipped, to find support at the 100DMA.
We have a diverging MACD following the recent bullish cross, and the histogram is ramping up to that effect. The Slow STO is in the power zone and appears ready for another bullish cross. While not pictured below, the RSI is in the power zone as well. GGSM traded 3.5X its 3mo. average volume yesterday. As we all know, volume increases often precede PPS increases, so we are looking for GGSM to attain even further gains, and continue the current uptrend. The 52-week high is .20- a jump back to those levels from the current price, we could be looking at an additional 43% gain.
Be sure to watch this GGSM spotlight for a peek into operations in Sierra Leone:
More Info at : www.ggsmining.com