612,000 Ounces Gold for Only $8 Million!

Note: See previous thread started by Bull under USCS.


612,000 Ounces Gold for Only $8 Million!

That’s right! That’s $500 million value in gold (612,000 * $815 = $500 million) for a current market capitalization of under $8 million! That’s a leverage factor of 62:1! There is a company that is now trading for under $0.25 per share that has a potential value of over $15!

US Corp trades on the US OTCBB under symbol USCS. They have 33 million shares with a float of 8 million shares. With a recent share price of $0.23 they have a market capitalization of $7.6 million US dollars.

Reserves are:
612,000 oz gold Proven (grading 0.17 oz/ton)
22.44 million oz. gold Inferred
2.16 million oz. silver Proven (grading 0.6 oz/ton)
79.2 million oz. silver Inferred
The company assumes a recovery rate of 73% for gold and 75% for silver.

That’s 652,000 gold equivalent oz. of proven gold and 23.9 gold equivalent oz inferred. With gold at $815/oz and cash costs of $250/oz that leaves a net profit of $565/oz of gold produced. So that gives us a net present value of $368 million for proven gold and $13.5 billion for inferred gold. Taking recovery rates into account you get about $268 million (proven) and $9.86 billion (inferred) value. Now that would be $8.14 per share for the proven gold and $299 per share for the inferred gold! I would give credibility to the proven resources and only count on ¼ of the inferred resources. So that gives us a total of $8.14 + $299/4 = $8.14 + $74.75 = $82.89 per share net present value for resources in the ground after cash costs of $250/oz. are deducted! Even if we only consider the proven resources you get an $8/share value (after costs are deducted!) for less than $0.25! How’s that for leverage? Add the inferred conservative value of about $75/share and you get an $83/share stock for only $0.25! It sounds too good to be true doesn’t it? Perhaps it is or perhaps the market just hasn’t considered the real potential value of this company!

US Corp has road access, water rights, power access, nearby labor supply in Baghdad, AZ, small share count (33 million/ 8 million float), etc.

• The property is quite large and open to further development and
expansion.
• Twin Peaks is a world class gold deposit with potential for leverage to
gold and silver prices.
• The ore body is simple to mine.
• Metallurgy is straightforward with gravity circuit primary to produce gold
& silver concentrates and cyanidation of tailings.
• Infrastructure near the Twin Peaks mine would reduce capital and
operating cost.

See my previous thread at http://jasonhommelforum.com/forums/showthread.php?t=2128
For more information or visit the company website at http://www.uscorpnv.com/index.html

If you add their other property, Picacho Salton, with the following resources:

Resource classification Troy Ounces of Gold
Measured mineral resource (1) 231,513oz
Indicated mineral resource (2) 1,185,348oz
Inferred mineral resource (3) 11,853,483oz

You get 843,500 oz. of proven gold valued at $800/oz * 843,500 * 0.75(recovery rate) = $674 million for a market cap of just under $8 million! Total indicated and inferred gold is 13.04 million ounces! That has a potential added value of $800 * 13.04 mil = $10.3 billion! This stock is either grossly undervalued or grossly misrepresented! I am in for 100k shares just in case they have even ¼ of what their feasibility studies say they have! Tell me what you think!

I notice that over at JH Forums, Shelby has dismissed this company because of his noting that a sensitivity table at the end of the Feasibility Study for Twin Peaks shows a rise in NPV of only 20% for a doubling of the price of gold. Shelby says that this is due to the high cost of reclamation that is not factored into other data, only in the sensitivity table for NPV on the last page. I don't know for sure if he is correct or not. This is disconcerting and if correct, would indicate that I could invest better elsewhere. I am not sure of how to reconcile this table (p. 23) with other data presented throughout the report in other tables. I countered and still believe that the numbers presented for Net Profit on both Proven and Inferred Reserves of gold and silver indicate a great potential for share price appreciation going forward.

Perhaps I am all wet on this one and barking up the wrong tree. If anyone else has input on this one I would appreciate it. Remember, Seabridge Gold has most of their reserves in the inferred category as an example and a share price that is over $30/ share with comparable reserves. Just think of what this could mean for US Corp if only a fraction of the inferred resources are proven!

I may be wrong on this but I think that the odds are slim that I am. Thanks to Bull for bringing this stock to my attention.

As far as I can tell, this stock is rivaling Seabridge Gold! Seabridge is over $30/share and has 13 million oz in proven and probable ( measured and indicated) . I had a 30 minute conversation with Bob Dultz (Chariman, CEO and CFO of US Corp) last night. What a great guy! I enjoyed the conversation and his humor is well balanced with intelligence and wit. His personal stories were great! Now for the really good part! Bob reinforced a sentence from the company web site that I had overlooked and I had to go back to the web site and find out what he was saying was there for all to see but easy to overlook! I am still buying this stock and will have to pay more to keep buying it but it is something that I want to share with everyone here. Here is what the web site says:
From the company web site Investor Relations page:
Financings
“We have current commitments for $1.2 million through calendar 2007. We intend to commence full-scale profitable commercial production upon securing additional financing and expenditure of the capital needed to develop the Company's resources and complete permitting, approvals and bonding; Major equity financing (up to $20,000,000) is being negotiated with private and corporate funding sources in North America and Europe.”

I think that Bull really found one here. I have taken a position that I do not intend to sell for some time. I intend to hold this one into producttion which could be as soon as next year. I believe Bob Dultz who tells me that all the costs and resource estimates are conservative numbers! Look again at the numbers and see what you think.
This is a low cost gold and silver mine with titanium added to sweeten the pot of gold! They have a market cap of under $10 million and small share structure. They have strong hands holding the shares and very low volume trading but don't expect that to last. News is coming soon and it should be good drill results with updated company plans and hopefully approved environmental plans by the BLM. They have yet to fully drill the property at Twin Peaks. This could easily be a $10/share stock. But don't bet the farm on it. I have a position that I can afford to lose and will not put all my eggs in one basket no matter what! Do your own due diligence and remember, this is not a recommendation. This is just my own view of this company and I own shares and expect to reap a profit within 1 year or sooner. US Corp could be producing next year with a cash cost of about $200/oz. It will be a pit mine not underground.

If I am wrong about this company, I will not ever mention a stock again on this forum.

Oh, I forgot a few things that you might want to consider. USCS will not hedge (they have a very small hedge to an investor who wanted to be paid in gold equivalent terms) and will not hedge going forward. They plan on paying dividends in gold and silver! According to Bob Dultz, they will pay in gold and silver to share holders and he is the biggest one! He was very interested in my thoughts from an investor view point and optimistic about plan approval by the BLM. USCS has the property, people, financing and hopefully the promotion coming soon with a new ad company. New listing on the Canadian exchange is expected too! If I am wrong on this I will really have egg on my face and won't be able to show my face on this forum again if wrong. There are not many shares being offered for sale looking at market depth by order. That doesn't mean that sell orders won't show up if enough buying materializes though. Be careful before investing in this one. I like what I see.

Mr. Mason,

Thanks for the D.D. on your part for US Corp!

Quote :

If I am wrong about this company, I will not ever mention a stock again on this forum.

Every poster has had at least one wrong Dana. Your recommendation is well respected here. Like you said. "Don't bet the farm on it!"

If I loose my farm. It's my own damn fault!

We are all responsible for our own investments. So keep on posting no matter what happens.


P.S. Thanks Bull for all you hard work!

[quote="danamas"]I notice that over at JH Forums, Shelby has dismissed this company because of his noting that a sensitivity table at the end of the Feasibility Study for Twin Peaks shows a rise in NPV of only 20% for a doubling of the price of gold. Shelby says that this is due to the high cost of reclamation that is not factored into other data, only in the sensitivity table for NPV on the last page. I don't know for sure if he is correct or not. This is disconcerting and if correct, would indicate that I could invest better elsewhere. I am not sure of how to reconcile this table (p. 23) with other data presented throughout the report in other tables.

[I will and have been trying to get to someone about this to get an answer and will post it if I do.
]

dana, did you get the answers you were trying to seek to refute shelby's claims?

also how does one pay div in gold/silver? do you mean gold and silver equivalent of CND/USD at the time of payment? when does one foresee this event to occur?

[Major equity financing (up to $20,000,000) is being negotiated with private and corporate funding sources ]

another PP?any ideas specificallywhen and the terms? i am assuming that is not and will not be public knoweldge ;(

The company was founded in 1989 as The Movie Greats Network, Inc. and changed its name to The Program Entertainment Group, Inc. in 1992. Further, it changed its name to Santa Maria Resources, Inc. in 1997; to Fantasticon, Inc. in 2000; and to USCorp. in 2002.

silverman wrote:

The company was founded in 1989 as The Movie Greats Network, Inc. and changed its name to The Program Entertainment Group, Inc. in 1992. Further, it changed its name to Santa Maria Resources, Inc. in 1997; to Fantasticon, Inc. in 2000; and to USCorp. in 2002.

Could it be that USCorp. just took over the shell?

I will call them and ask -

I don't feel compelled to refute Shelby's claims regarding the sensitivity chart. I think that the onus is on him since he raised it without anything other than a claim. I did talk to Bob Dultz for about 30 minutes and my impression was that he is sensible and credible. I could be totally mistaken regarding my gut feeling about him. I bought some more stock the other day and added to my position. I am not totally sure about this investment but then that is true of all my positions. I feel that they have filed all the important papers and listed credible information especially in their Feasibility Study on Twin Peaks. I urge everyone to read them first before investing and draw your own conclusions. Bob Dultz (CEO, CFO) said that all costs and resource estimates were the most conservative ones they could make. They had several resource estimates and they chose the lower numbers for resources and higher numbers for costs! Either this is a totally bogus shell or they really have what they say. Time will tell. I forgot to ask Bob about the sensitivity charts as Shelby questioned but I did email him with the question on the environmental costs being factored into the fully loaded cash costs and the sensitivity chart questions today. I will let you know what the answer is as soon as I get a response.

I would ask you all if you believe the Feasibility Study? Do you think it is legitimate? Perhaps I am too gullible looking for the pot of gold at the end of the rainbow? Do you think that Seabridge Gold is overvalued? US Corp has resources comparable to Seabridge.

As far as the non-public knowledge issue raised by mshen11, the financing will be public knowledge and it is a done deal as far as I know. I don't know the terms but you can see that one prior financing was done earlier for $600,000+ that is their only gold hedge for a few ounces.

Silverman, the dividends will be paid in gold and silver according to Bob Dultz! How about that?

I know that talk is cheap and actions speak louder than words so we will see if Bob Dultz comes through in the next few weeks by the end of December 2007. That is the time frame he mentioned to me for advertising, financing, plan approval by BLM, announcements, etc. Time will tell. By the way. US Corp has some stock on the German Exchange. They are seeking listing on the Canadian TO exchange according to Bob.

I have to admit that the name change is disconcerting! I don't know the history on that! I own a number of stocks that have at least two name changes. The ones mentioned by Silverman are rather amusing though! I am just taking them at face value regarding the current company status. Silverman, do you think that the Feasibility Study is a sham?

Do any of you feel that Shelby has promoted a stock and then sold to move on to greener pastures and then repeated the process numerous times? Do any of you feel that Shelby has told someone on JH Forums to withhold information until the insiders got their fill of a stock before bringing it to the general forum's attention? Does anyone think that Goldplunger was wrong for encouraging the JH Forumites to buy more GORO and the drilling company( Timberline Resources, TBLC) that dropped dramatically after that promo? How about Shelby's latest stock picks that change monthly? It's okay with me if he does that, he may be right!

I am not saying that Shelby is merely taking advantage of the forum or that his questions/concerns on this company are not valid. I am glad he raised them. I will continue to answer them as best I can. It took me almost 2 weeks to get in touch with Bob Dultz but I can understand that considering the circumstances. He is President, CEO, CFO and a financing specialist. He is working on updated plan approval for the mines with the BLM including the environmental approval. It is a small company with less that 20 people.

I have given you all the best information I can attain, I am not a mining guru and am still learning about the industry. Perhaps this is a scam, be careful and make your own decisions based on your own due diligence. I am simply digging deeper into a stock brought to my attention by Bull. It is all his fault! Just kidding Bull! I take full responsibility for everything I have published regarding this company. It is all based on company reports, phone conversation with the CEO and bald-faced speculation on my part. Don't buy this stock based on my actions or feelings, I could be totally wrong!

I appreciate the questions on this stock and I do consider it my responsibility to answer questions as best as I can on US Corp since I have taken a position in them and brought them up on the forum here. I will do my best!

I wish you all well and Happy Thanksgiving! I am going to eat some turkey now and hope that US Corp is not a turkey pick!

I will call them next week to ask about the names changes - will report back

Silverman:

Good luck getting a hold of Bob Dultz, he is a busy man. It took me 2 weeks to get to talk to him. I think that the name changes are marketing considerations. Names can mean a lot when marketing to the public. US Corp has a nice ring to it, much better than Fantasticon or the other weird names. The name Santa Maria Resources made sense since the Santa Maria River runs through the Twin Peaks Property. I'm not sure what was up with the Fanatasticon name though. The name has been the same for several years now so that doesn't concern me. What concerns me are the things like environmental permitting, financing for production ($13 million) etc.

I think that the plan that US Corp has is sound and is spelled out in the feasibility study. Look at Phelps-Dodge copper mine just a few miles away from where the Twin Peaks Property is located, it is huge and has operated for decades near Bagdad, AZ. They also have some gold and silver!

I think that there is a lot of potential in the Twin Peaks Property beyond what they have proven. Even the proven reserves should take the stock to several dollars per share! I am still in until or unless I find out that it is a bad investment. I can tell you that Bob Dultz told me that production could and probably will start next year and that the financing is favorable and will happen soon. The Company has hired a large marketing firm from Chicago to promote their story. Mr. Dultz is reluctant to do more than modest promotion as he doesn't want to be seen as a pump and dumper. He seems to be a man of integrity.

I want to simplify my previous posts on US Corp to show why I like this stock so much! All information can be found on the company web site under the Twin Peaks Feasibility Study (near Bagdad, AZ.) at http://www.uscorpnv.com/twinpeaksfeasabilitystudy.pdf

From Table 1.1 (p. 9 of the Twin Peaks Feasibility Study)
Mineral Resources of the Twin Peaks Project Area
Resource classification Gold in ounces Silver in ounces
Measured1 mineral resource 612,000 2,160,000
Indicated2 mineral resource 1,500,000 6,500,000
Inferred3 mineral resource 22,440,000 79,200,000

Let’s take the company’s numbers with a recovery rate of 73% for gold. Grades run 0.05 – 2.25 oz. per ton. I will use the company’s conservative estimate of $250/oz. fully loaded cash cost to produce and a gold price of $850/oz. which will yield a profit of $600/oz. ($850-250 = $600/oz.)

Measured Gold:
612,000 oz. x 0.73 x $600 = $268 million net profit.
Indicated Gold:
1.5 million oz. x 0.73 x $600/oz. = $657 million net profit.
Inferred Gold:
22.44 million oz. x 0.73 x $600/oz. = $9.83 billion net profit.

The company has not provided any cost estimates for the silver so I will assume $5/oz. fully loaded cash costs, a recovery rate of 75% and a silver price of $15/oz. leaving a net profit of $10/oz. Grade is 0.6 oz. per ton.

Measured Silver:
2.16 million oz. x 0.75 x $10/oz. = $16.2 million net profit.
Indicated Silver:
6.5 million oz. x 0.75 x $10/oz. = $48.75 million net profit.
Inferred Silver:
79.2 million oz. x 0.75 x $10/oz. = $594 million net profit.

So let’s put them together now.
Measured gold and silver value is $284.2 million!
Indicated gold and silver value is $705.75 million!
Inferred gold and silver value is $10.424 billion!
Total potential gold and silver value (after costs!) is $11.414 billion!

Considering only the measured value we get a $284.2 million value (after costs!) for a $10 million market cap! With 34 million shares we get a stock that has a potential value of $8.35/ share after costs! The stock is selling for $0.25 per share now! Wow! Taking it further and considering indicated value we get $705.75 million. That’s $20.75 per share value (after costs!). Inferred values give us $10.424 billion or $306 per share after costs!

I’m either really missing something here or this company is tremendously undervalued by a factor of 10 to 500!

So, breaking it all down to a per share value with all values considering costs already deducted we get:
$8.35/shr Measured value.
$20.75/shr Indicated value.
$306/shr Inferred value.

$335/share Total Value!
Now that’s what I call potential and leverage! Just the measured resources alone make this an excellent risk to reward stock!

All of these figures assume a fixed cost for expenses and a mine life of 13 years, capital expenditures of $13 million for the mine construction and $58 million for the environmental costs over the life of the mine. Twin Peaks has nearby power access from the same line that feeds the Phelps-Dodge Copper mine. They have water rights from the Santa Maria River. They have road access and nearby labor. They have near-surface minerals with high grades! CEO Bob Dultz has stated that all costs and resource estimates are conservative! They are still drilling to expand the resource estimate with drill holes no more than a few hundred feet in depth and an open pit mine! So we have here a potential near term (less than 1 year) producer with low cash costs and a potential world class resource of gold and silver! Remember, this only considers one property and not the Picacho-Salton property which has respectable but not as high grade gold as Twin Peaks! I will add more as information becomes available with news flowing over the next 2 months.

I have decided to delete my post on this company which was somewhat rash and hasty. I have instead, just left remaining a statement by CEO, Bob Dultz so that his words can speak and not my possible misunderstanding of information gained by me through the internet.

I had a nice long conversation with CEO Bob Dultz this evening (12-02-2007) and he kindly provided good (and lengthy) answers to all my questions regarding US Corp. I feel that I may have jumped the gun so to speak by not waiting for Bob to provide explanations to them. I understand that due to some personal matters, he could not respond as quickly as I would have liked. So much for my patience. I am weak in the patience department and will work on improving my performance in that area. Suffice it to say that I feel that my impatience was unfounded in this case.

I did some searching via Google and found erroneous information regarding International Energy and Resources, Inc. This information is apparently incorrect according to Bob Dultz. That information has been deleted from this post and new information regarding that will be posted here when available from the SEC. I will provide that as soon as possible. IERI is not associated with US Corp in any way at this time and has not been for some time now. Do your own Google search and you will probably get the same information that I got. I do not know the reliability of that information at this point and have deleted it.


I got the following email from Bob Dultz: "We plan an extensive drilling program in the next few months and are raising the money for it at this moment. When that program is complete we will post the results. Results of prior drill programs are not available in electronic format – we have about 500 lbs of paperwork and we do not have the staff or equipment to convert it at this time. All of our work in the past 5 years on this project has confirmed and expanded prior work done on the property. Our time and resources are better spent getting current results that will be created in electronic format as we go along."

Comments made regarding a phone conversation with a specialist at the BLM may also have been somewhat inaccurate and have also been deleted from this post. The information may have been incorrect due to a misunderstanding of statements. That also has been deleted.

Bob Dultz holds 17 to 22 million shares of US Corp and that information is on the company web site.

I still own 50,000 shares of USCS and am holding on for the hopefully big returns in the coming year.

Cheers and lets hope for a Merry Christmas this year!

Dan - thank you for sharing this info with us !

Yes - it looks very suspicious .

Regards, Ari

Thanks Dan!

I own a small amount of shares as well. Just keeps going to show how extremely improtant seasoned/proven management is.