"Gateway Gold: It’s a Gold Story"

A Gold Story for the 21st Century 

Gateway Gold is a mineral exploration company concentrating on gold deposits in Nevada. The properties are approximately 50 miles northeast of the city of Elko. The principal target of the company is the Big Springs. The corporate goal is to define a major gold deposit at Big Springs with the potential for major expansion.

The Big Springs the project is in early exploration stage. The company has defined around Big Springs one million two hundred thousand ounces of unsubstantiated gold which it intends to lead to a 1.5 - 1.8 million deposit in late 2006 or early 2007.

The principal interest in Gateway is the statistics. The company has recently raised $12 million dollars for exploration purposes. It owns properties that cover some 30 exploration projects of which 5 will be explored in 2006 and 2007. Together they have a potential value of $30 million dollars.

At the same time, Big Springs at 1.2 million ounce gold prospects is valued at about $70 an ounce, bringing about an evaluation of $85 million dollars.

Most of this valuation was established in the pre-spring 2006 gold price increase. This statement is very important for a company like Gateway. If we assume that we are going into a world of gold, where price will oscillate between $650 and $1000, and more and more interest the monetary evaluation of the metal, we can actually calculate a price level of $120 per ounce. If we look for a 1.5 million ounce of gold deposit valued at $120, we are talking of a total valuation of $180 million dollars. Considering that the company only has 32 million shares outstanding, the number just on the Big Springs alone amounts to $6 a share.

$180M ÷ 32M Shares = $6.00 per share   

In the following table we bring forward an illustrative document statistics. The summary table reads as follows:

This is equivalent to a valuation of $3 to $7 a share.

For a resource company, the current market around $50 million to jump to a potential $200 million dollar potential is vitally important we also match the management capability of an experienced geological team and financial management with the new volume of resources available.

In our experience, we have found very few companies with numerical figures as cheap as Gateway Gold. Furthermore, the company’s $15 million cash and represents an opportunity to expand the company towards acquisition of other resources. The cash share value of Gateway will expand as we enter the Age of Commodities. Coupling with a solid base (Big Springs) with cash, raising stock price, new exploratory projects, proven management - part of the new generation of the publicly owned emerging gold companies. Gateway is the current version of the 21st Century gold mine, the true reflection of the Commodity Age. Needless to say, at the $200 million market cap level is much easier than at a $50 million dollar level and consequently we can look at a planned expansion.

(Article 28- posted May 15, 2006)

e-mail: mlikar@aol.com

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