Penny Stock Goldminer!
Southern USA Resources Inc. (OTC: SUSA) started moving up on accelerated volume in the second week of January; from a start point of around $0.70 the stock saw recent highs of $1.70 before consolidating in the $1.40 range. The explosion in price and volume is the result of a multi-million dollar promotion including a documented $900,000 hard mailer campaign; I have included an image of the hard mailer used in the SUSA promotion below.
Headquartered in Ashland, AL, Southern USA Resources, Inc. operates a gold mining operation and exploration group in the "Idaho District" of Northern Clay County Alabama. The Idaho District has numerous sites which have been producing mines and placer sites dating to the late 1800's. Using modern mining techniques, the Company is revisiting prior producing sites where it plans to excavate to a minimum depth of 80 feet, projecting the life of this project to be in excess of 20+ years.
On January 24 SUSA reported on its mining equipment that has been established on the Company's flagship property, SUSAR No. 1. The Company has been running its equipment and making modifications to prepare for its gold production for 2013.
The Company's primary processing equipment includes a Gator 42" X 16" portable jaw crushing plant with a 16 ft. grizzly feeder and a 42" discharge conveyor, Gardner Denver 18" X 18" pulverizer, Tyler 4' X 8' multi deck wet screen, and Oro Industries custom mobile wash plant with custom rougher spiral gold separator machine. Combined, the processing equipment has the potential to process up to 75 tons of material per hour for approximately 10 hours a day, for 5 days a week.
Currently trading at a market valuation approaching $50 million SUSA is a shell that has been around for a while and has a long history of name change and reverse stock split. While the Company has exciting plans which they have clearly outlined in a mountain of promotional material they have minimal cash, a heavy debt-load, $0 revenues and a history of losses.
Conclusion: SUSA just started moving up off its $0.70 base on accelerated volume. With a documented production budget of $900,000 on hard mailers the stock could certainly see explosive short term gains. Long term SUSA cannot maintain anywhere near current market valuation and will drop significantly from current levels.
Please note: OTCMAGIC has no connection whatsoever with SUSA or SUSA management or any 3rd parties connected with the Company. We have certainly not been compensated in any way shape or form for this article which is obvious if one really read’s what I have written.
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Southern USA Resources Inc. (OTC: SUSA) was incorporated as “Lodestar Mining on October 31, 2006 under the laws of the State of Delaware. On February 4, 2010, the Company changed its name to Atlantic Green Power Holding Company. On April 23, 2012, the Company changed its name to Southern USA Resources, Inc.
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