Joint Venture Decision on Golden Arrow’s Chinchillas Project Nears

Development progresses at Golden Arrow’s Chinchillas project as investors await Silver Standard Resources’ business combination decision, which is due by March. Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) and Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ) entered into a business combination agreement in October 2015 for the joint development of Golden Arrow’s Chinchillas project and “an agreement to combine the producing Pirquitas Mine and the Chinchillas project, located approximately 35 kilometres apart in Jujuy Province of Argentina, into a single new operation.” The joint venture would be 75% owned by Silver Standard and 25% owned by Golden Arrow. During the 18-month preliminary period, Silver Standard would invest up to approximately US$12.6 million “at Chinchillas to advance the project and evaluate the feasibility of developing a combined mining business with its existing Pirquitas operation.” Development has advanced at Chinchillas since that time. On Dec. 20, 2016, Joseph Grosso, chairman, president and CEO … Continue reading

Slivovo Gold Study Points to Further Exploration at Avrupa Minerals’ JV

The Slivovo Gold Project Study that Avrupa Minerals received from its JV partner recommends further exploration to increase the size of the deposit. Avrupa Minerals Ltd. (AVU:TSX.V, FWB:8AM) announced that it had received the Slivovo Gold Project Study from its JV partner, Byrnecut International Ltd., in a statement released on Jan. 13. According to the company, “The study contains detailed geological, geochemical, and geophysical information about the Slivovo gold deposit, as well as chapters covering environmental, social, metallurgical, mining, infrastructure and surface facilities, waste management, capital costs, and other studies.” Byrnecut has earned into 85% of the joint venture by delivering the report on the Kosovo project; it spent an estimated €4 million on the project. Avrupa noted that “since the start of the joint venture in April 2014, Avrupa and Byrnecut have made a gold discovery at Slivovo, calculated an initial NI 43-101 indicated resource estimate, and produced an … Continue reading

Dolly Varden: Exploring a High-Grade Silver District in British Columbia

The Critical Investor examines Dolly Varden Silver, a junior exploration company fully focusing on the Dolly Varden silver district, which is home to several former high-grade silver mines. • Dolly Varden is looking for much more high grade silver on its prolific land package, just inside the Golden Triangle • A new management team has taken on Dolly Varden under the leadership of Gary Cope as President & CEO. • After raising C$7.2M, Dolly Varden is ready for a major drill program in 2017. • The 2016 drill results are in and look very promising. 1. Introduction The best place to explore for a new mine is in the shadow of an old mine. This is a very old adage in the mining sector and is definitely valid for new sponsor of my website Dolly Varden Silver Corp. (DV:TSX.V). Dolly Varden is a junior exploration company fully focusing on the … Continue reading

Nexus Scores on Gold, Misses on Press Release

Veteran investor Bob Moriarty provides an update on Nexus Gold’s potential home runs in Burkina Faso. I wrote about the incredible coup that Nexus Gold Corp. (NXS:CVE) scored in Burkina Faso back in early December. Basically they have picked up two potential home runs in the best country to explore and build a mine in, in the entire continent. Using the skills of the former Chief Geologist for Roxgold, Warren Robb, the company managed to scarf up two good properties for about US$1.5 million each but the deals are rear end loaded and have a tiny 1% NSR. They have two years to test the crap out of the projects before big bucks are due so the money they raise now goes directly into the ground rather than into the landowner’s pocket today. One thing I have learned over the last fifteen years and seeing hundreds of projects is that … Continue reading

High-Grade Gold Discovery in New Mexico Doubles the Opportunities for Southern Silver Exploration

The discovery of a widespread oxide gold system at the Oro deposit in New Mexico creates a second prospect for Southern Silver Exploration. Recent drill results from Southern Silver Exploration Corp.’s (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) Oro deposit in New Mexico identified a widespread gold system at the Stockpond target. The company announced on Nov. 23, 2016, that drilling “intersected widespread alteration and a thick zone of strongly anomalous gold mineralization in a sediment-hosted oxide-gold system located on the edge of the drill pattern, which remains open laterally to the east, north and south under thin gravel cover.” Nine reverse circulation holes were drilled during the exploration program, totaling 1,223 meters. Hole SP16-004A contained the highlight of a “9.1 meter interval averaging 0.75g/t Au, contained within a 41.2 meter interval averaging 0.42g/t Au.” The company noted that, “the results from this initial program were successful in identifying the edge of a potentially … Continue reading

Is the Appointment of Paul Zink a Game-Changer for Terraco Gold?

Terraco Gold rang in 2017 with the announcement that it has appointed Paul Zink as consultant and advisor. In a Jan. 3 news release, Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK) noted that “Mr. Zink is a mining industry professional with more than 35 years of experience in finance and the extractive industries. He has particular expertise in mineral royalties, project financing, financial analysis, business development and strategic planning. Within his career, Mr. Zink has held several senior positions specific to the royalty sector including President of International Royalty Corporation (“IRC”) until the successful sale of IRC to Royal Gold, Inc. in February 2010. . .he began his career following the mining and metals industries during a 17-year tenure on Wall Street with J.P. Morgan & Co., where he performed industry research and merger and acquisition analysis on mineral companies, banking and project finance advisory work for European mining companies, and sell-side … Continue reading

Should Investors Continue to Hold Ares Capital after the Merger?

The completion of the acquisition of American Capital by Ares Capital leads money manager Adrian Day to reappraise an investment in Ares, causing him to ask if investors should buy or continue to hold at this time. Ares Offers 9% on Top BDC Ares Capital Corp. (ARCC:NASDAQ, 16.91, 8.99%) is not only by far the largest Business Development Company (BDC), with about $12 billion in investment assets, it is also one of the best and one of the most conservative. It has a strong balance sheet, with sizeable liquidity, and one of the top platforms for new investments. Over the past three years, it has a ROE (NAV growth plus dividend) of 9.7%, almost twice the average BDC, and the growth outlook remains positive, with quarterly earnings on track to grow from last quarter’s 39 cents per share to 43 cents over the next several quarters, according to analysts. Most … Continue reading

A Time for Caution, Though Gold Stocks Look Like Good Buys

While fund manager Adrian Day believes investors should tread cautiously in the market right now, he is upbeat on some gold stocks. Given our caution on the broad stock market, resulting from relatively high prices across the board, we have relatively few “buy” recommendations. Most of our buys are concentrated on the gold stocks, and even there, many of our limits are below current prices. I do not think one needs to be aggressive in the current environment. Of course, so much depends on your personal circumstances—all the “financial planning” circumstances such as age, future financial obligations and so forth—as well as what your current portfolio looks like. If, for example, you do not own very much in the gold space, I should certainly step up to the plate now; start with two major gold royalty companies, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE; 61.27) and Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX; 65.51), top … Continue reading

Jack Chan: This Past Week in Gold

Technical analyst Jack Chan charts the latest moves in the gold and silver markets. Our proprietary cycle indicator is up. The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders. Speculation has now dropped below the level of the previous bottom. Gold stocks are testing resistance. Silver is on a long-term buy signal. SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders. SummaryThe gold sector is on a major buy signal. The cycle is up. Short-term gold is also on a buy signal, looking for a trend-line support to establish and set up. Jack Chan is the editor of … Continue reading

The Ultimate Resource Portfolio for 2017

Investors can profit in resources, says Lior Gantz, editor of Wealth Research Group, by partnering with and investing like the big players in the field. The natural resource industry is a maze of companies—thousands of them—but when you get right down to it, this entire sector is 95% made up of average businessman and a small and tight-knit group of top dogs. Partnering up with them and investing like them has proven to be enormously profitable. Ray Dalio is the most successful fund manager in history. LCH Investments says its estimates show that the hedge fund Dalio founded in 1975, Bridgewater Associates, has produced more net gains in absolute U.S. dollars than any other hedge fund, surpassing all others. Bridgewater’s Pure Alpha hedge funds have generated $45 billion in net gains since inception, compared to the $42.8 billion produced by Soros’ funds, LCH Investments reported. Dalio allocates 15% of his … Continue reading