Hot junior resource stock, small cap resource stock investment tips sandspring resources ltd v-ssp

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Sandspring Resources Ltd.(Symbol: V.SSP)
Company Name:	Sandspring Resources Ltd.
HQ Location:	Guyana
Company Website:	www.sandspringresources.com
Shares Outstanding	86.6 Million
Closing Price (May 26, 2010)	$1.37
Market Cap:	$118.6 Million
Average Daily Volume	130,000

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Business Overview

Sandspring Resources (TSX VENTURE:SSP) is an advanced stage junior exploration company representing 10 years of private operational experience in the Republic of Guyana. The former private company predecessor is now a wholly owned subsidiary of Sandspring. The production history of the Company is surface alluvial and saprolite mining in Guyana. The main project is the Toroparu project Located 200 km west of Georgetown, Republic of Guyana. + More info

What is interesting?

This is a region with huge gold resource possibilities. The same greenstone belt containing Toroparu extends into Venezuela where the combined resources of Las Brisas and Las Cristinas contain 39.8 million ounces of gold (at 0.89 g/t) and 3.3 billion pounds of copper (at 0.11%).
Located in “elephant country” - the prolific Guiana Shield El Callao (>20mm 0z Au) and nearby Km 88 District (Las Cristinas, Las Brisas; >20mm oz Au).
Initial Resource of 2.3 MM oz Au (0.89g/t) + 266 MM lb Cu = 3.36 MM oz Au Eq.
Toroparu is in the right geological neighbourhood, has a mineralization type similar to existing deposits and remains open in all dimensions. Toroparu hosts rock lithologies that closely resemble those at the Brisas del Cuyuni concession, a part of the Brisas -Las Cristinas district.
Management of Sandspring has a long history of working in Guyana and has the experience to bring the project to fruition.
Management and board includes senior personnel with lots of mining experience.
Sandspring is presently a permitted medium-scale placer miner (<3000 tpd) in Guyana with “ramp-up” expansion plans to large-scale bedrock mining ( >20,000 tpd).
On a market cap per resource ounce basis company seems undervalued.
Toroparu is accessible by road and an airstrip.
Guyana is politically stable, English-speaking democracy with British Common Law.
Guyana has a well established Mining Act and history of successful large scale bedrock gold production (e.g. Omai).
250,000 acres land package that is 100% owned by Sandspring.
A 60-person camp has been built at the site, and offers full amenities, including internet service and phone communication.
Historic placer gold area. Exploration drilling has outlined primary gold-copper mineralization below saprolite cove in Toroparu.
Well financed with good cash position of over $15 million dollars.

Risks

Toroparu is at an early stage of development and exploration; there is considerable uncertainty in defining and developing the resources. The company will need to raise additional capital to continue to define its resource which is dependent on market conditions.

Sandspring Resources Ltd. News

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