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Undervalued Opportunities With Two Gold Stocks
Contributed Opinion

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Bob Moriarty Bob Moriarty of 321gold shares two gold stocks he believes offer exceptional potential for ten-fold returns.

In a market where the mob often buys at tops and sells at bottoms, contrarian investors seek undervalued gold stocks with extraordinary potential.

Two such opportunities are West Red Lake Gold Mines Inc. and New Found Gold Corp., which could provide returns of 500% to 1000% as investors recognize their value.

West Red Lake Gold: A Steal of a Deal

West Red Lake Gold Mines Inc. (WRLG:TSXV;WRLGF:OTCQB) acquired the Madsen mine and mill from Pure Gold in a deal that was a steal. The acquisition included a 2.1-million-ounce gold resource and an 800 TPD mill that cost over $350 million to build. Despite this, WRLG's market cap is only $141 million, a fraction of the $1.15 billion Pure Gold was once valued at.

WRLG also owns the nearby Rowan Gold project, which boasts a 43-101 resource of nearly 0.9 million high-grade gold ounces. The company plans to feed the Madsen mill with ore from both properties and the management team, led by the highly capable Shane Williams, is focused on building a premier gold company in Canada.

Moreover, the Pure Gold purchase came with a $273 million tax write-off, meaning that when Madsen returns to production, the first $273 million in profits will be tax-free. With current management and $2200 gold, WRLG could be worth 500% to 1000% more as investors wake up to its potential.

New Found Gold: The Best Discovery in 20 Years

New Found Gold Corp.'s (NFG:TSX.V; NFGC:NYSE.American) Queensway project in Newfoundland is the best gold discovery in the last two decades. This grassroots discovery features incredibly high-grade gold from surface, analogous to Kirkland Lake Gold's Fosterville Mine in Australia. Kirkland Lake's market cap soared from $3 billion to $18 billion after acquiring and understanding the potential of Fosterville.

NFG's deposit could contain 10-20 million ounces of gold, and the company has a brilliant technical team and an aggressive management team to advance the project.

Despite its potential, NFG's market cap is only $900 million, leaving plenty of room for growth as investors recognize the value of this exceptional discovery.

The Shift from Overvalued to Undervalued

As sentiment shifts away from overvalued stocks like Nvidia and Bitcoin, money will likely flow into undervalued resource stocks. West Red Lake Gold and New Found Gold are two of the safest and most promising gold stocks available, offering the potential for tenfold returns.

Investors should conduct their own due diligence, but these two companies stand out as extraordinary opportunities in a market where many are selling at the bottom.

By focusing on undervalued gold stocks with exceptional assets and strong management teams, contrarian investors can position themselves for significant gains as the market recognizes their true value.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake.
  2. Bob Moriarty: I, or members of my immediate household or family, own securities of: West Red Lake or New Found Gold. My company has a financial relationship with New Found Gold and West Red Lake. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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