For speculative investment money only, I am initiating coverage for the first time on Bonanza Goldfields (BONZ) with a BUY rating and $0.12 target price – currently trading at $0.007. Although I have followed this operation for some time, Bonanza Goldfield's 4/4/13 Press Release announcing significant lode
concentrations in large exposed quartz veins being identified - is impressive, with verified assays ranging from .007 to 2.73 oz/ton. Meeting with management and a site visit confirms their focus is shifting to principally lode processing as opposed to previous placer exploration/production that is yielding more modest results. This junior miner is located about 1½ hours NW of Phoenix – on patent claims adjacent to the Congress Mine, a mine that historically produced 396,300 ounces of gold primarily from 1887 – 1912 and later reopened and operated through 1959. As the company gains more visibility in the public market and attracts more investors, it should trade more in line with its peers at $1.75/share. If Bonanza Goldfields works out, I see lots of upside and if it doesn't work out, I see only minimal downside as it presently trades at a modest market cap of $1.61 million with a 230 million share float. Management is unproven in a junior and a bit arrogant (or confident?) as to their abilities to make this junior a big success - although I judge them as capable of it.