Analyst Finds Valuation of Junior Explorer 'Compelling'

Peter Epstein of Epstein Research discusses the results of a recent drill program by Aston Bay Holdings.

Aston Bay Holdings Ltd. (BAY:TSX.V; ATBHF:OTCQB) announced results from its Phase 2 drill program (seven holes, 803 meters [803m]) at the Buckingham Gold property in central Virginia (USA). Phase 2 added to the 1,218m (10 holes) from Phase 1 in March.

The new holes included one strong, very near-surface intercept [1.5m @ 37.7 g/t gold, @ 16.3m depth]; another good shallow interval of 1.5m at 12.5 g/t; and 6.6 g/t over 2.2m in a 50m step-out. Note: All drilling in past 18 months has been 500%. By contrast, BAY.V is up just 29%, from a 52-week low of $0.035/share to $0.045/share (down $0.01 on today's news).

More boring exploration work, punctuated by continued good-to-very good, near-surface and increasingly deeper high-grade drill intercepts, along an expanding strike length (currently >200 meters), should attract new investors. There's a great deal of blue-sky potential embedded in Aston Bay's anemic valuation. Will patience be rewarded in coming months?

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

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At the time this article was posted, Aston Bay was an advertiser on [ER] and Peter Epstein owned shares in the company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

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