Our very own “Ranting Andy” was privileged to tour Andover Ventures’ (OTC Other: AOVTF; TSX-V: AOX) Tintic district property, just 70 miles South of Salt Lake City, Utah. Many seasoned investors do not realize Utah is one of the most prolific mining states in America, home to the continent’s largest open pit mine (Bingham Canyon, photo below) and a rich mining history dating back to the 1800s.
Andover’s dynamic CEO,Gordon Blankstein, an international businessman with a history of successful acquisitions and divestitures, acquired the Tintic District in 2008, essentially out of bankruptcy. His specialty is buying assets cheaply, thriftily improving their value, and selling them at higher prices. In this case, I believe the ultimate sale price could be many multiples above the $24 million paid to acquire the Company’s vast asset base.
The 16,000 acre property, controlled via 78% ownership of Chief Consolidated Mining Company, represents the third largest land holding in all of Utah, and last saw production in 2002 via its Trixie gold and silver mine. Trixie and its sister mine, Burgin, were two of 23 former underground mines in this world class district, which has cumulatively produced 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 350 million pounds of zinc, and 2.2 billion pounds of lead over the last century, all from ore bodies above the water table due to a lack of mine technology that has since been developed.