We have a new gold pick, which could turn out to be the best ‘bounce’ play of the week!
This company has a solid revenue stream (a current gold producer), great management, 3rd party support, and tends to skyrocket on positive news!    And right now it’s trading at a VERY attractive price (hopefully showing us bigger percentage gains!)
RZOR is a fully reporting and producing junior mining company.  They are flush with gold, currently producing about 200 ounces monthly, and are projected to reach $3.8 million in revenue for 2011.  I’ve told you plenty of times about the importance of gold as an investment with the onset of inflation coming.

About Razor Resources (RZOR):
RZOR is a Los Angeles, California based gold exploration and production company, engaged in gold mining.  Razor Resources is one of the few junior resource companies to reach ‘production status’ – and is focused on increasing gold production on an annual basis.
Company Website: www.razorresourcesinc.com
According to some Industry estimates, gold prices are expected to near $2000 per ounce by the end of 2011!

Industry:
Gold is long regarded as one of the most credible and economically proven sources of stable long-term investment. The demand for gold has been consistently on the rise, with 55% of the demand coming from five countries – India, Italy, Turkey, USA and China.  As we’ve highlighted time and time again, gold is a turmoil commodity and performs exceptionally well during crisis periods and weak economic time periods.
RZOR Future Growth:
The Company intends to raise annual production to 1,000 oz per month!  Based on current gold prices around $1,340 an oz, that would add up to approximately $1.3 Million per month.  According to Grass Roots Research, the Company is in a strong position with steady cash flows from its present properties.

Current News:
1/27/11
RZOR announced 2nd shipment of Gold
Before the bell, Razor Resources announced another shipment of gold from their Clavo Rico Mine Acquisition, valued at well over $300,000!  Production resulted in approximately 227 ounces of finished gold and 64 ounces of finished silver.  RZOR stock shot up 40% after this announcement!
1/25/11
Buy Recommendation from Cohen Research
Cohen Research, considered by many to be the nation’s leading fundamental independent research firm for small and midcap companies, set a price target of $1.34 per share for RZOR, which is almost 400% higher than the current stock price of $0.27 cents.
Cohen Research projects revenues of approximately $3.8 million in 2011 and $16.9 million in 2015.

RZOR Business Strategy:
RZOR intends to grow aggressively in Honduras or Central America by producing from its mine while acquiring and producing quality reserves throughout the region.
Razor Resources will increase production by gradual expansion of its mining properties and modernization of the mine retrieval techniques.  The Company is planning to add a vibrating table and flotation cells to produce a sulphide concentrate.  When coupled with the construction of additional leaching vats, production has the potential to increase an estimated 300-400%.

Partnerships:
Johnson Matthey Inc.-
Razor Resources is currently working with Johnson Matthey, which has almost 200 years of experience as the largest global full-service refiner of precious metals.  This is the Company RZOR uses to process their gold shipments.

RZOR’s Current Mining Project:
Clavo Rico mine
The mine is situated in the Choluteca region of Honduras.  It has produced gold since the 1500s.  Studies suggest that the property has estimated resources of 500,000 – 1,000,000 ounces of gold, dependent on grade.  Production is being increased through expansion of the mine and modernization of the processing of ore.  The mine has accumulated approximately 130,000 tonnes of tailings that have been assessed to hold approximately 3-5 grams of gold per tonne.  That alone is roughly $19 to $32 million of gold, based on $1400/oz.

Executive Highlights:
RZOR’s management team has expansive industry experience that spans more than 3 decades apiece.
Sam Nastat – President
Mr. Sam Nastat has been involved in the resource sector of capital markets for over 20 year. He has experience with both oil and gas exploration and drilling as well as mineral exploration and development. From his 14 years as director of oilfield project development to his years of running the largest placer Gold operation in the U.S.  In the 1990′s, he ran the Tule Canyon Mine in Gold Point, Nevada.
Gregory Rotelli – CFO, Secretary
Mr. Rotelli is Principal of Pacific Coast Capital Group, LLC and has over 25 years experience in senior management for both public and early-stage private companies.  Mr. Rotelli has advised and negotiated in both structured financings and early stage investment capital raising ranging up to a $150 million securitization.
Duncan Bain – Consultant Geologist
Mr. Duncan Bain is one of the leading geologists in North America, with extensive experience working with a variety of resource materials.  Mr. Bain has extensive experience developing junior mining projects to their full potential. He was instrumental in bringing a 1.8 million oz. Gold deposit from the exploration stage to the pre-production stage at Consolidated Cinola Mines in Canada.  Mr. Bain also brought two silver deposits to full production in the NWT along with another 100,000 oz gold deposit.

RZOR’s Technicals:
RZOR has shown day-traders that the stock can be profitable in the short-term, with recent runs of 42% last Thursday, with another run Friday, giving the stock an accumulative 72% gain.
As can be expected, the stock pulled back the last couple of days after heavy selling pressure and profit taking.  The good news is that the next base looks to be forming, which could mean another round of solid profits!
RZOR has enormous upside potential, now that the stock has leveled off and found a new starting base
I recommend taking a look at RZOR tonight.  The stock has the potential to do very well in the short-term, with many investors looking for a 2nd rally, similar to last weeks run!
Happy Trading