ABOT Mining is experiencing significant trading volume this past week, which is why Penny Stocks Research has decided to issue this FYI Research Report on the company. Please keep in mind that FYI (For Your Information) opinions are only summary research reports, and do not have a Buy, Spec Buy, Sell or Hold opinion attached. The purpose of the this FYI Research Report for Abot Mining is to provide a very quick informational background on the company, and their recent corporate events in a neutral tone.
Please be advised that Penny Stocks Research may revise our opinion in the future, but not until we have had more time to assess the company, and their recent corporate developments. All sources of information for this report we attained via public sources such as Abot Mining Website, Edgar Filings, and recent public news disclosures.
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Abot Mining Corp.
| Opinion: FYI |
| Ticker Symbol: ABOT |
| Exchange: Pink Sheets |
| Date of Report: 23/12/2011 |
Investment Summary
This is an FYI report on ABOT Mining Corp., a U.S. mining company which trades Over-the-Counter on the Pink Sheets. According to the Abot Mining website;ABOT is a US based mining company engaged in discovering, acquiring, developing, producing, and marketing precious and semi-precious metal properties and is currently headquartered in Sherman Oaks, California. ABOT plans to create long term shareholder value by implementing an aggressive exploration program, making new precious metals discoveries and developing mining properties with long-life and low cost operation. ABOT's strategy is based on a positive outlook in the precious and semi-precious sector and finding synergies with mineral owners to deliver consistent returns to its shareholders.
ABOT recently announced a series of acquisitions in the Tecuala Mining District of Mexico. The companies signature property is the Aztlan 8B Project, which they purchased a 50% interest from a Mexican corporation Rising Star S.A. de C.V.
Aztlan is currently an exploration property, which has reported bulk sampling results between 0.20 g/ton to 39 g/ton, from past trenching results, revealing both placer and epithermal gold deposits (research has not found a 43-101 compliant report for the property, but that is not a requirement for the exchange). The company has suggested that it will initiate a test production run for 1000 tons of ore at the beginning of 2012, which will be followed by a full scale production run soon afterward. The company plans to process an estimated 9 million tons of ore in total. After the 1000 tons test production run, the company will begin increasing ore production to 10,000 tons per run at a variety of processing facilities in the region. The company has stated that;
ABOT’s strategy is based on a positive outlook in the precious and semi-precious sector and finding synergies with mineral owners to deliver consistent returns to its shareholders.
Investment Highlights
- Exposure to both Gold and Silver markets, which are trading above historical levels.
- 50% interest in the Aztlan 8B Project, which has reported significant gold and silver mineralization
- Region offers known mineralization, with several publicly traded companies reporting significant mineral reserves and resources.
- Exploration on the property by previous operations have reported gold mineralization via bulk sampling for 0.20 gm/t to 39.00 gm/t.
- Past surface trench testing has revealed deposits of placer and epithermal gold deposits.
- Company plans a production test run of 1000 tons of Ore
- Portfolio of mineral exploration properties focused in the favorable Tecuala Mining District of Mexico.
- Low market capitalization offers an opportunity for investors.
- Significant share volume, indicates liquidity for investors.
Description of Assets
Overview of Market
Management
Investment Risks
- Currently trades OTC PInk.
- Share price of less and $1 is indicative of a highly volatile market.
- Exploration of the property has been carried out by previous operators.
- Current projects are at an early stage of exploration.
- No significant revenues being generated by the company.
- Large number of outstanding shares.
- Recent dramatic increase in average daily share volume could be indicative of stock promotion activities, and not based upon corporate developments.
- According to information posted ABOT website, the Board of Directors for the company lacks significant experience in mining or mining exploration.
Report Conclusion
The recent increase in share volume is due to a couple of factors;- Newletter coverage.
- Paid promotional activities.
- Recent acquisition of Mexican mining property, Aztlan 8B Project in the Tecuala Mining District.
- Announcement of test production @ Aztlan 8B.
- Announcement to begin processing ore from Aztlan 8B at various processing facilities in the region in early 2012.
- ABOT Mining Corp. Website
- SEC Edgar Filings
- Recent Press Releases for the company
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