Bill Cara for the Trader Wizard

I wrote to you June 25 about Alamos Gold in an article called, Potpourri. I was on my way out of town on vacation and covered a few topics briefly that day. But I stopped to tell you about John McCluskey whose company had started trading on the Toronto Exchange the day before (at C$2.25).
http://www.traderwizard.com/blog/archives/000109.php

McCluskey is a man I personally know. I last enjoyed a beer with him in a downtown, downscale, Vancouver bar in November 2000. We talked about old times. John's a good guy.

Alamos Gold (TSE: AGI) is an interesting new player in the gold group. They own a property called Salamandra, bought from Placer Dome (NYSE: PDG) for which they are presently completing about $70 million in financing to bring into production a year from now. As they bought this project when gold was just $265 (as I write this, it's $402.80), the economics look real good. According to John, internal returns are going to exceed 50% at these price levels for gold. Production will be about 150,000 oz per year, which is not huge for a gold mine but will make it the largest gold mine in Mexico. One important thing about John McCluskey you should know is that he personally selects his projects and his associates with care; with the result being he has a significant track record of successes in his career.

Well on October 14, Alamos Gold agreed to sell C$24 million in common shares to RBC Capital Markets for re-sale to the public in Canada. Here is the news release.

AGI set a new high of $3.24 on Friday, and with the treasury filled up, things are going swimmingly for McCluskey. The stock is up 40% from its first day close on the TSE. Naturally, I am happy for him.

The AGI stock is registered to trade in the U.S., and can be found in the pink sheets. But I'll stick to the charts of AGI on the Toronto Exchange, where the volume is higher and the markets tighter.

When it comes to picking a junior gold company, I'll always go with the promoter, which in this case is John McCluskey. He has solid credentials for the job, as listed on the Alamos Gold web site:
• 20 years experience in mining finance and management
• Started career with Glamis Gold Ltd. (1983-1989)
• Subsequently held key executive positions with Queenstake Resources, Miramar Mining Corp, Major General Resources, Atna Resources, Boron Chemicals, Inca Pacific Resources, & Grayd Resource Corp.

Next week John will be doing his meet & greet thing in London, at the 3rd Annual Gold Investment Summit. The week after, it will be more of the same at the New Orleans Investment Conference Saturday November 13 (12:25 -- 1:15 pm in the Grand Couteau room, Fifth Floor, Sheraton New Orleans).

I guarantee; if you meet him, you'll like him.

And, no, I don't own any of his stock, nor owe him any favors. I just think he's one of the good-guy, hard-workers in the business.

And I think gold is going higher over the next few years, and Alamos Gold is ready to develop a nice little property. It's pretty much the same as 20 years ago when John was the understudy for Chester Millar at Glamis Gold (NYSE: GLG), and my has Glamis come a long way since then.

The June 25-04 article on Alamos Gold

Yesterday, there was a new listing on the Toronto Exchange for a company called Alamos Gold. Company CEO, John McCluskey, was interviewed on ROBTV, which is Canada's answer to CNBC, and in my opinion a much better service.

McCluskey is a man I personally know. I last enjoyed a beer with him in a downtown, downscale, Vancouver bar in November 2000. We talked about old times. John's a good guy.

Alamos Gold (TSE: AGI) is an interesting new player in the gold group. They own a property called Salamandra, bought from Placer Dome (NYSE: PDG) for which they are presently completing about $70 million in financing to bring into production a year from now. As they bought this project when gold was just $265 (as I write this, it's $402.80), the economics look real good.

According to John, internal returns are going to exceed 50% at these price levels for gold. Production will be about 150,000 oz per year, which is not huge for a gold mine but will make it the largest gold mine in Mexico.

One important thing about John McCluskey you should know is that he personally selects his projects and his associates with care; with the result being he has a significant track record of successes in his career.

You might do well to review his web site at Alamos Gold and even to pay him a telephone call, as will I when I return from vacation next week.

Website: http://www.alamosgold.com
Email: info@alamosgold.com
Address: 110 Yonge Street, Suite 1503Toronto, OntarioCanada M5C 1T4
Telephone: (416) 368-9932

I also found an interview with McCluskey while browsing the web.

Remember that Alamos is not yet in production, so it is a speculative investment. However, I think it will be a good one.

Finally, yesterday, I made a pretty good call on gold. I said it was looking good real early in the day, up $2. It closed the day up $8. There is no doubt in my mind that gold bullion and the gold stocks will have a good year, which is why last weekend, I issued a Buy Alert on gold stocks, with several additional comments during the week. .