Price weakness in stocks may be providing an opportunity for investors, it often does, but few take advantage of it. That will never change!

The present price weakness in the gold mining stocks and gold itself is in our view an opportunity to accumulate shares in mining companies with advanced resources that by several gauges are undervalued. Generally, we are quite positive on the mining shares as our analysis suggests that a major bottom is being completed. That analysis consists of fundamental technical and most importantly cyclical analysis.

Note well that since last July, many mining stocks have seen their price lows and have appreciated well. We have also noticed that many stocks do not seem to have offerings of any size. In our opinion, for the next bull market in mining stocks “the stage is set.” Be ready!

Niogold Mining Corporation, symbol “NOX” on TSXV, is a Canadian gold exploration company founded in 2003. The company’s properties are located in the Cadillac, Malartic and Val d’or mining camps in the Abitibi district of Quebec. Most mining investors are aware that the Abitibi region has an eighty year history of gold production (over 45,000,000 ounces of gold production through 2013) and today that region continues to be one of the most productive gold mining areas in North America.

Niogold has a 130 square kilometer land package of which for this report, we are focusing on its Marban Block that contains three past producing mines with current 43-101 resources of over 2,100,000 ounces of gold. Niogold’s mining neighbors include seven producing gold mines including Agnico-Eagle, Osisko and Richmont Mines.

The company’s exploration focus over the last four years has been its 100% owned Marban Block project. Since its inception in 2004, over $24,000,000 has been spent on exploration with another $1,100,000 budgeted for 10,000 meters of drilling in 2014. As is the normal strategy with junior exploration companies, our analysis suggests that Niogold’s exploration will continue to add ounces to the resource base since there still is substantial further potential in Niogold’s total land package.

To date, the company is on schedule with already 1,531,000 ounces of 43-101 measured and indicated resources and 599,000 inferred at the Marban Block. That property now has a level of 43-101 resources that is close to mining consideration in itself. As always, the price of gold bullion is a key factor.

The Stock: Who owns it?
The stock is relatively tightly held. A U.S. Hedge fund raised its percentage to 20%, Niogold’s officers and directors own 6% with “friendlies and close associates” holding another 21%. A Canadian mining executive with an outstanding history of mining accomplishment owns 5% of the shares. The directors include people of superb repute and success in the mining industry.

Valuation of resources just at Marban?
A most important factor, (among several) in putting a value on an exploration company is the amount of resources in the properties owned. Historically a gold property with deposits was valued at $50 to $70 an ounce of in-ground (in-situ) resources. However, in the last decade, despite the enormous move up in gold’s price, it has dropped to into the $10 to $15 per ounce range in ground. Naturally it is influenced by many factors including depth of deposits and the area of the mining. Yet, $15 is low!

Moreover, while Niogold has 2,100,000 ounces 43-101 resources, we expect that amount to increase as exploration continues. Thus, we feel that by using $15 an ounce we are being quite conservative. That computes to $31,500,000 for the value of Niogold’s Marban Block (Measured and Indicated Resources 78%, Inferred Resources 28%) which calculates to .29 cents per Niogold share.

As well, Niogold has over $4,000,000 in cash and marketable securities which would add another .03 cents per share. Keep in mind that we are only using the value up to this point at the Marban Block-the values for the other projects are not included here.

Infrastructure
At all Niogold’s projects, the needed infrastructure for mining is already in place. There is an abundance of skilled labor, available electric power and readily accessible roads. A railroad goes directly through the Marban Block. Overall, it is an ideal mining location.

Conclusion
In a difficult market for mining and particularly junior exploration companies, Niogold has made superb progress and remains debt free. Our analysis projects that change will soon be at hand and that Niogold merits attention. Keeping in mind that since we no longer have market makers and brokerage house support as in the past, investors might consider “dollar cost averaging” during price declines if a company’s fundamentals remain positive. Many successful investors do it.

Contributed by: K.C. Grainger and Bob Pellerin

We have obtained the information in this report from sources we believe to be reliable. We cannot guarantee its accuracy or completeness. It is an overview not a complete discussion of the risk factors associated with this or any other investment. We may be compensated for this or other reports and may engage in corporate finance for corporations.