Pengram Corp. (PNGM)

$1 Billion Hidden Underneath A “Mountain of Gold”

The Profits From This Major Find Could Explode Within Weeks… Make Sure You’re Lined Up To Claim What Could Exceed A 3,879% Gain

Pengram Corp. sits Next to an Historic Gold Mine That Contains at least 390,000 ounces of Gold and up to 611,000 ounces! And That’s Before You Consider This Latest Discovery!

Dear Natural Resources Investor,

As promised, I am about to reveal to you gold’s dirtiest secret.

It is the secret that could power your big gains on a company called Pengram Corp. Now you can call it skill, good management, or just plain dumb luck…either way, it points to massive profits for the company and you, its shareholders.

You see, what I am referring to is the fact that Pengram Corp. holds a property called the Golden Snow property in Nevada – the largest source of gold in the USA.

Now that’s newsworthy in itself, but what is extraordinary is that right next to the Golden Snow, is a property called Lookout Mountain – owned and mined by Timberline Resources (NYSE MKT: TLR).  Lookout Mountain produced gold throughout the 1980’s and has up to 611,000 ounces the company knows about so far…

While drilling hole BHSE-152, a hole to establish a water monitoring well near the historic Lookout Mountain deposit, Timberline’s crew intercepted another high grade mineralization.  This discovery is so significant, that the CEO of Timberline publicly announced, “This deeper resource has never been tested…These drill results validate Timberline’s continued confidence in the larger potential of the South Eureka Property…With these very encouraging results, we are planning to follow up with testing the high-grade mineralization at depth…”

THIS MASSIVE DISCOVERY IS AT PENGRAM’S DOORSTEP!

 I am convinced that the down dip trend – which extends onto Pengram’s Golden Snow Property – is where most investors stand to make stratospheric gains.  You see, while most of Wall Street is watching Timberline with baited breath, no one has heard of a small penny stock that had the good fortune, the good management, or just plain dumb luck to be holding the property where this new gold discovery zone extends.   The moment Pengram Corp. starts mining a slice of the “Mountain of Gold”, its shares could fly from under 9 cents to $3.45… or beyond.

That result would translate into huge gains in the neighborhood of 3,879%… but only for agile investors who get in at, or near, PNGM’s current shareprice…

There’s a good chance you’re one of these success-driven investors… but before you make the slightest move on Pengram Corp… there’s something about the gold mining sector you need to know now…

Something the aggressive salesmen in the media and on Wall Street live in fear you’ll discover.

How To Leverage Peak Gold Into Your Personal Fortune

It all has to do with the fact that the world is running out of gold…

It really is… but that’s not one of those really scary things like running out of oil or water.

Still, as you’ll see, the fact that the mining industry can no longer keep up with the massive demand for gold should create a classic squeeze that sends gold prices flying beyond $5,000 during the next three years… and dare I suggest it… perhaps on to as high as $10,000 an ounce.

And, by the way, I am not a lone voice predicting $5,000 to $10,000 gold… my voice is just one of the many authoritative and respected voices making such a claim, as you’ll see.

And, there is a specific reason behind why the world is running out of gold… it’s the dirty secret Wall Street hopes you don’t learn… because you’d NEVER BUY A MAJOR GOLD STOCK AGAIN… EVER!

You’d only buy junior gold miners such as Pengram Corp.

Gold’s Dirty Secret Revealed

 So here it is…

Like I said, despite record gold prices, gold miners just can’t crank out enough of the stuff.

Between 1997 and 2001, miners “high-graded” (mined ore with the highest grades) just to keep the lights on, as gold prices bottomed and the yellow metal was reaching the peak of its long bear run.

Ever since then, as gold prices steadily climbed, these miners have shifted production to lower grade ore, leading to ever-lower output.

Why?

Because there is virtually no high-grade ore left on the planet… and certainly not enough to keep up with the current massive demand… and Pengram could have one of the last undiscovered high-grade gold deposits left on the planet!

Gold Is Now Harvested Like Potatoes

During the past five years, the average recovered ore grade has declined a full 30% – dropping from 1.8 grams per ton down to 1.3 grams per ton.

In other words, dig a ton of dirt (ore) out of gold-rich ground and you’ll get about 1.3 grams of gold after you’ve washed everything else away.

As a reference point, there are 28 grams to an ounce… so it takes about 25 tons of dirt to yield one ounce of gold…

But – again – there are just about no 1.3 gram-per-ton gold properties around right now.

So, the grades of replacement ore being found are now averaging about 0.50 grams per ton, meaning twice as much ore has to be found just to replace gold being produced at current grades.  And these are considered good grades today…Remember this as you read the rest of this report and discover Pengram’s potential grades…

$1600+ Gold Makes It Super Profitable To Dig For Gold

Gold has become so valuable that millions of tons of what was formerly considered waste rock are now being recategorized as gold reserves.

Economic theory tells us that as demand increases, so does supply, which helps to contain prices.

In the case of gold, however, that just isn’t happening.

There’s simply not enough new gold being found to replace consumed reserves and to allow for higher production levels.

In fact, over the past year, gold production has only managed a 3.0% increase, despite a 20% spike in price.

Demand Is Crazy… Supply Is Shrinking

So this is the major reason why gold is headed for stratospheric prices… $5,000 and ounce and higher.

And, of course, if it is profitable to mine 0.50-gram-per-ton ore at today’s price of about $1,600 an ounce you can imagine how profitable it will be as gold passes $2,000, $3,000… $5,000.

This the big reason why you must look carefully at Pengram Corp. and its potential to bring 200,000 ounces of gold to the market.

Because, while PNGM’s potential holding could be worth nearly $225 million today… imagine two years from now when gold is at $5,000…

How does $1 billion sound to you?

Why PNGM Is A Must Buy Today

And you know what that would do to Pengram’s share price… which you can acquire for under 10 cents today.

Now, in just a second I’ll go into great detail about Pengram Corp. and its massive potential in Nevada… PNGM’s access to the Southwest’s famous Mountain of Gold.

But, before we get there, let’s quickly look at the other important factors driving up the price of gold…

World Events Are Spiking Gold’s Price

I’ll be brief because, whether you listen to FOX News or read the New York Times… one thing they both agree on are the economic factors driving gold.

You see, beyond Peak Gold – the fact that we’ re running out of gold – there are three other specific trends that promise to keep gold prices on an upward trajectory. I’m referring to the fact that:

  • Ongoing global stimulus initiatives will likely ignite inflation, which is highly bullish for gold.
  • Global demand is burgeoning as wages rise in such newly emergent markets as China and India – a trend that’s not going to quit.
  • Global investors remain dramatically under-invested in gold.

PNGM PRICE DRIVER #1 – The Stimulus and Currency Wars

In the past four years the U.S. Federal Reserve, the European Union, and central banks in China, Japan and a host of other nations have chosen to “stimulate” their economies by ramping up spending and cranking up their printing presses.

Multi-trillions of dollars of liquidity have been injected into the global economy.

That’s going to lead to inflation. It already has in the “volatile” food and energy segments that the U.S. government conveniently leaves out of its twisted consumer price index (CPI) numbers.

The U.S. central bank’s $600 billion “QE2″ initiative failed to boost the economy and/or lower unemployment in any meaningful way. So now they’re onto “QE3” – with an unlimited budget! And in case you’re wondering, all that “hot money” is making its way to emerging-market economies where it’s being plowed into hard-asset resources such as gold.

Even so, if there’s one likelihood we can rely on, it’s that U.S. Federal Reserve Chairman Ben S. Bernanke will continue to do the one thing that he seems to excel at – printing money.

Eventually, inflation will take hold like a nasty virus – and it will be near impossible to halt. The Fed’s plan is to just raise interest rates to tame inflation and mop up the massive liquidity.

Don’t Wait For The Fed To Flinch…

Buy PNGM Today, While It’s Still Under 10 Cents

But our central bankers are likely to be taken by surprise and end up moving too late.

If you doubt this, just remember how the Fed dragged its feet in the subprime mortgage crisis, and then Lehman Brothers debacle.

A severe loss of confidence in the greenback could push bond prices lower and cause yields to soar virtually overnight, beating Bernanke and company to the draw.

And a badly weakened U.S. dollar will devastate millions of savers… and shoot gold to the moon.

If that doesn’t scare you, consider this: At its current pace, every 18 days, the U.S. government issues debt equal in value to a full year of gold production.

Every year, the United States borrows the equivalent of a full one third of all the gold ever mined.

And it’s not happening just in America…Central banks all over the world, and the International Monetary Fund have all increased their gold holdinigs.  The World Gold Council report reveals the support of financial markets and low borrowing costs have led to gold accumulation.  Gold is no longer just an inflation hedge; it is the key protection against a global race to devalue currencies…

Yes, owning physical gold is a hedge… but don’t forget gold stocks race up four to five faster than the price of gold.  And as currencies devalue, stocks will rise – and are much easier to trade, and safer to store than physical gold should you need cash.

It why you need gold stocks that can out race runaway inflation… a company such as Pengram with it’s huge potential 3,879% near-term upside could offer you a way better hedge again inflation than physical gold.

PNGM PRICE DRIVER #2 – Global Demand Is Burgeoning:

Chindia (China and India) – with 35% of the world’s population – has turned into a big fan of gold.

India is the world’s largest gold consumer. In 2009, Indians bought just under 500 tons of gold… 16 million ounces.

They bought a record 969 tons 2011, and have jumped to 200 metric tons in just the third quarter of 2012!

Worldwide, investment demand for gold will be up, too, led by China, India, Russia, and Turkey.

“Bar hoarding” is on the rise, as well, increasing 44% over 2009 as investors increasingly take physical delivery of their merchandise, reports the World Gold Council.

Thomson Teuters GFMS stated, “Gold Investment demand is expected to post a fresh all-time high this year in both volume and Dollar terms.”  They further stated, at Gold Survey 2012 – the gold industry’s dominant data and analysis title – that, “a push on towards $2000 is definitely on the cards before the year is out…”

Refusing to be left behind, jewelry and industrial demand have also posted year-over-year third-quarter increases of 13% and 18%, respectively.

In fact, a smaller (unnamed) Middle Eastern nation has indicated that it is converting 200,000 barrels per day of oil production into gold, the annualized equivalent of 140 tons of gold yearly at the current oil-to-gold ratio.

This is why physical gold is disappearing.

It will be up to small companies such as PNGM to pick up the slack… and, while other junior’s look to rework historic finds for remnants and tailings, only Pengram Corp. sits next to the United States’ only recently discovered high grade ore deposit.

This deposit combined with an almost crucially necessary demand gives PNGM the potential to turn into a billion dollar company…

One you can buy today for under 10 cents.

PNGM PRICE DRIVER #3 —Investors Remain Under-invested in Gold

All this said… the scary fact… the fact I am writing you today about… is that…

As it currently stands, the average U.S. investor, both retail and institutional, is sorely under-invested in gold-related holdings.

Just after the gold prices hit their peak in their last secular bull run, gold and gold-mining shares represented 26% of global assets.

In 2009, investment levels in these same subsectors represented a microscopic 0.80% of global assets. Clearly, gold has a long way to go just to become a significant allocation within the average portfolio.

Steve Forbes, publisher of the venerated Forbes Magazine, has advised all Americans to put atleast 10% of their wealth in gold.  An outspoken critic of printing money, he see’s the printing of more money leading to currency devaluation, and gold as a safe harbor.

So if you’ve been asking yourself that burning question: “Is gold in a bubble?” – rest assured that the answer is still a resounding “No!”

You need to take action now: With gold prices projected to hit $2,000 an ounce by the close of 2012 – and as high as $5,000 or more an ounce over the long haul, gold should be in virtually every investor’s portfolio.

And a good low-priced way to load up is with an inexpensive junior gold explorer such as Pengram (PNGM).

It sits next to America’s newest high grade gold discovery, in an area that is already known to contain over 390,000 ounces…

And, you can buy as much PNGM as you want today for under a dime cents…

So, IS PNGM A MIRACLE WAITING TO HAPPEN??

Once you’ve seen what I am about to show you… your answer could be a resounding YES!

Here’s why

PNGM’s Access To The Mountain of Gold Wall Street Hasn’t Noticed…Yet

Truth be told, Pengram was concentrating on one of its other properties until it’s neighbor discovered its high grade deposit on a property called Lookout Mountain, right next to Pengram’s Golden Snow Property.

You see, Pengram owns several mineral properties in Nevada, and in British Columbia, and each sits on a prolific trendline.

In an effort to ensure shareholder value, PNGM’s management optioned some of the properties to other’s for exploration.  Each deal is separate, but the common theme is the exploration costs are to be borne by the partner, and the findings shared.  This allows Pengram to concentrate on picking up the best properties while its partners explore them.

Pengram had its attention focused on its Clisbako property located in British Columbia’s gold-rich Cariboo Mining District as it’s partner had just finished its initial drilling program there before the winter set in.  The results will determine whether the property warrants further drilling and exploration.

While waiting for the Clisbako results, Timberline Resources, a NYSE listed company, made their high-grade gold Lookout Mountain discovery right next door to Pengram’s Golden Snow property.  Timberline’s own observations show the trend looks to run right onto the Golden Snow property owned by PNGM.

And that the property’s gold content is “greater than one gram per tonne of gold over significant lengths…” So, as we’ve seen… THIS IS A SOLID DISCOVERY.

But That’s Not All…

While all the talk today is about Pengram’s Golden Snow Property, PNGM sits on two other equally exciting properties.

Golden Snow: The Leader of the Pack

 Located in Eureka County, Nevada. The project consists of 58 mining claims covering approximately 3.5 square miles or 2,240 acres. It is eight miles southwest of Eureka and situated near several existing gold mines.

Just north of the Golden Snow Project is the East Archimedes Gold Mine where Barrick Gold Corporation is currently mining a Carlin-type sediment hosted gold deposit (677,000 ounces mined, 1.1 million ounces resource/reserve, as reported by the Geological Society of Nevada 2006 Special Publication #43). It is also contiguous to the southern end of Staccato Gold’s South Eureka property, where Staccato has identified several mineralized areas and has defined a gold resource estimate at the Lookout Mountain deposit.

Substantial exploration has been conducted on the Golden Snow property including geologic mapping, 932 soil samples and detailed ground-based gravity geophysical surveys. Based on this work, several distinct target zones have been outlined and it is interpreted that the Ratto Ridge Fault zone, which controls the mineralization on the South Eureka property, continues south onto the Golden Snow property. These target areas are well located and are drill ready.

Also, immediately north of Golden Snow, the Company noted that last month Timberline Resources Corporation announced its high grade gold discovery.   According to Timberline, “Lookout Mountain is the most advanced project within Timberline’s 23 square-mile South Eureka land package and is located just a few miles from Barrick Gold Corporation’s two-million ounce Archimedes / Ruby Hill mine. [The area] hosts significant oxide gold mineralization amenable to low-cost, heap-leach recovery, along with a smaller, high-grade, sulfide resource.”

Pengram has successfully completed a joint venture agreement for Golden Snow which provides for the JV partner to pay Pengram $175,000 in staged payments, and spend $1.75 million in exploration expenditures, over 39 months to earn up to 75 percent of the project.

For a junior to garner a commitment of $1.75 million for exploration is unheard of, and truly speaks to the quality of the properties under the Pengram umbrella.

Fishing for Gold: The Fish Project

Situated within the Walker Lane Mineral Belt, Lone Mountain District, Esmeralda County, Nevada about 12 miles west of the historic mining town of Tonopah. The project consists of 58 mining claims covering 1.9 square miles or 1,216 acres.

The Fish Project is a drill-ready project with permitting for a Phase I drilling program well advanced with the Bureau of Land Management.  The Fish Project is a skarn-manto gold, silver and base metal prospect where rock chip samples have returned the following:

  • Gold values ranging from less than 0.002 ounces per ton to 0.307 ounces per ton.
  • Silver values ranging from less than 0.01 ounces per ton to 32 ounces per ton.
  • Zinc values ranging from 0.01% to 32.8%.
  • Lead values ranging from less than 0.01% to 16.4%

 Clisbako Property – Exploration Results Imminent

Located in the Cariboo Mining Division of British Columbia, Canada – one of the friendliest mining countries in the world – it consists of 10 claims covering approximately 13 square miles or 8,372 acres. It is located 78 miles west of Quesnel.

The property has been previously explored and the historical work outlined eight main target pay zones. The records indicate several soil geochemical surveys and geophysical surveys have been conducted with a total of 34 diamond drill holes. The results showed gold deposits were on the property and they were enough to attract the attention of others.

Because of the interest in the property in September 2010 the company granted an option to a Canadian company to acquire up to 75% in the property. The agreement includes cash payments and agreement to conduct further exploration on the property.

The option agreement is a great opportunity for the company. They retain their ownership and if the optioning company makes a huge find they will still own 25% of the property and if the company exercises their option Pengram will enter into a joint venture with the company.

That’s a win-win for Pengram!

The results of this initial exploration are due any day now!

So, this looks to be about as perfect a deal as you could find… but there is more good news, too.

OWNING PNGM IS LIKE BUYING A BASKET OF DIVERSIFIED GOLD PROPERTIES IN THE BEST LOCATIONS IN THE TWO BEST MINING COUNTRIES IN THE WORLD

 They say a picture is worth a thousand words…

 

Property

Golden Snow

Fish

Clisbako

# Claims

58

58

10

126

# Acres

2240

1216

8372

11828

Majors Nearby

Barrick, Staccato, Timberline

Several at historic Tonopah District

Several in the historic Quesnel District

Infrastructure

Roads, Mills, Market

Roads, Mills, Market

Roads, Mills, Market

JV Status

JV Parnter responsible for all expenses

Owned

JV Parnter responsible for all expenses

Other Minerals

Primarily gold

Silver, Zinc, Lead

Exploration Ongoing?

YES

YES

YES

Targetted Payzones?

YES

YES

YES

Country

USA

USA

CANADA

 

 

Looking at the table, its easy to see why I consider Pengram Corp. the most undervalued gold explorer in the USA today!

How To Get From 10 Cents To $3.88

 

Let’s just take the Golden Snow Project and see what it could be worth if it only comes up with half of what Timberline and Barrick have found in the area.  Timberline has 390,000 ounces and Barrick has 670,000 and counting.

Let’s be conservative and price gold at $1550 per ounce, leaving about a $1000 profit per ounce. And to be ultra conservative, lets say Pengram only sits on 225,000 ounces, although it could be much, much more.

The deposit looks to be on a Carlin type trend, and costs to produce gold in the area run at around $550 per ounce.

In other words, there could be as much $225 million in pure profit at today’s gold prices… that would increase dramatically as the price of gold spikes.

And since Pengram only has 58 million shares outstanding, each share is worth a potential $3.88! That’s a whopping 3,879% potential upside.

Even if I’m only half right, there’s still plenty of upside.

Of course, Pengram Corp. would not just jump from 10 cents to $3.88… so should things unfold the way I imagine they could… there would be plenty of time to grab some significant short-term gains as well.

Risk Reward Factor

 Of course, in a fabulous story like this… there is always a “BUT.”

And the “but” here is that Pengram Corp. does does have to do some work to prove out this amazingly gold rich property I have shown you today…

And if it’s JV partner decides to put up the exploration expenses it will have to share the wealth…

And that would mean only a 1,000% increase in share price, or only a potential 10-bagger…

PNGM’s Top Management

 

The company’s CEO is a smart man named Richard W. Donaldson.   He has more than 25 years experience in corporate management reorganizations, mergers and acquisition. He is a former director and officer of numerous private and public companies including: Noront Resources Ltd., Aiviv Ventures Inc., Cherokee Minerals Corp., Canzona Minerals, Inc., and Renox Creek Petroleum Corp.

 

Mr. Donaldson is well-connected within the North American mining and investment communities and familiar with all facets of moving projects from grass roots exploration to full scale production.

Thomas E. Sawyer, Ph.D. He served as a senior advisor to Presidents Nixon, Ford and Reagan.

Also on the Board is Howard Metzler.  Mr Metzler brings over 30 years experience in exploration geology, primarily high grade vein and disseminated gold/silver deposits in northern Nevada. Since 1985, he has served as principal and CEO of the Nevada-based geologic consulting firm Kayzak Resources. At Kayzak, his work includes covering properties as a Qualified Person in all of the major Nevada trends including Bald Mountain in the Battle Mountain – Cortez Trend, Eastgate & Silver Peak in the Walker Lane, and Midas in the Carlin Trend.

Since 1987, he has been actively involved in the mining of high grade, low sulfidation veins in the Ten Mile District, Humboldt County, Nevada as well as developing and mining high grade gold and gold “specimens” on proprietary district claims just south of Newmont/Fronteer Gold’s Sandman project.

Commenting on his appointment to the Pengram Board, Mr. Metzler said, “After evaluating Pengram’s portfolio of properties and those under consideration for acquisition, I am confident we have an opportunity to develop these highly prospective properties and build a company of major value. I am delighted to play a leadership role in Pengram’s future.”

“When it comes to exploration geology, there is no substitute for experience and no one knows the richest Nevada trends or their mineralization better than Howard,” said Richard Donaldson, Chief Executive Officer, Pengram Corporation. “Howard is a seasoned professional with that special knack for mineral discovery and development, and we are excited to have him on board.”

Pengram’s Management Team has terrific foresight…and at the end of the day, Pengram Shareholders will reap the benefit as management focuses on turning their company into a cash cow.

These are serious gold miners.

So, in the end, I believe the case for Pengram is crystal clear…

There are not too many times in your life when you can latch onto a 10-cent stock from a company like Pengram Corp. One poised to accomplish real things… such a bringing 225,000 ounces of gold to the market.

PNGM Looks Perfectly Ripe For The Taking

 

The global newspapers sometimes give me a hard time because I do the one thing that the establishment hates… I zero in on speculations…

Small companies that the blue bloods and Wall Street elites can afford to dismiss…

Yet, I deliver results on these micro cap speculations time and time again…

I’ve had so many successes that the establishment newspapers couldn’t ignore me… because when regular guys make money once or twice, the elites don’t care…

But when we do it over and over again – they take notice – now you wouldn’t believe the CEOs that read my newsletter.

So, let’s be frank… with Pengram Corp. – we’re still talking about a speculative play… but it’s a speculation that is in the right place, at the right time with the right showings and the right neighbors.

Bet On PNGM Snagging Its Share

Of The Mountain of Gold

I think it will prove up the numbers… and that is what you will bet on as well.

So, I am not going to pressure you to rush out and buy PNGM… I won’t threaten you with regret or recriminations for missing out.

That is a bush-league tactic used by people who can’t stand behind their ideas.

No, instead, I am going to demand that…

YOU MUST TAKE THIS ACTION NOW!

#1 Call your broker immediately and discuss Pengram Corp. (PNGM) with him… after all, he has access to the same regulatory filings and corporate information as I do. Run my revenue projections by him too.

Remind him that PNGM currently trades under 10 cents. When your broker agrees that my facts are current, discuss with him how large a position in PNGM you should take and still be able to sleep at night.

#2 If you take care of your money yourself… go online now to your account and check out my facts. Go to SEC.gov and examine the PNGM’s filings. Once you are satisfied that I am correct, buy as much of Pengram Corp. (PNGM) as you want this one time… remember, smart people don’t treat a speculation the same as longer-term plays… they don’t buy on dips or on growth. Get what you can afford today when you buy Pengram Corp. at the market.

And…

#3 Bookmark this page and take another look at PNGM a couple months from now.

I believe it could be up as much as 888% from where it is right today… on its way to what I predict will be a huge 3,879% gain.

At that point… My hope is that you will have other no option but to email me and subscribe to my newsletter Emerging Resource Stocks, Early Edition.

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 Sincerely

 Albert Hyman