4 Big Reasons Why You Might Want to Consider Gold Stocks Right Now

Gold mining stocks are incredibly undervalued relative to broader equities
click to enlarge

I believe that for investors with a long-term horizon, this makes gold miners look especially attractive as we await valuations to revert their mean, or average. Hopefully this can be achieved without a significant decline in the S&P.

2. Rising inflation has historically lifted gold prices.

Inflation can be understood as the destruction of wealth. Every time consumer prices head higher, a dollar loses some of its value, whether in your pocket or your savings account. Inflation can also weigh on stock prices, as some investors anticipate it cutting into corporate earnings. They might therefore decide to move their money into other assets.

That includes gold, which has enjoyed a long history of being an attractive store of value during times of higher inflation.

After being mostly stagnant for several years, inflation looks as if it’s ready to stage a strong comeback, thanks to rising oil prices and new trade tariffs imposed by the Trump administration, among other factors.

But which measure of inflation is most accurate? The Federal Reserve prefers the consumer price index (CPI), but there are others, including the New York Fed’s Underlying Inflation Gauge (UIG) and ShadowStat’s Alternative CPI.

no matter which gauge you use, inflation is on the rise
click to enlarge

From the chart above, we can surmise that inflation could be highly understated right now. According to the official CPI, prices rose 2.4 percent year-over-year in March. But if we use the Fed’s methodology from 1980, as ShadowStats does, it’s possible prices advanced more than 10 percent from a year ago.

Regardless of which measure you trust the most, it’s clear that inflation has been heating up at a faster pace—meaning it might be time for investors to consider adding to their gold exposure.

3. Gold supply is shrinking while demand continues to grow.

Like most hard assets, prices of gold and other precious metals respond to supply and demand. If supply goes up but there’s little demand, prices tend to struggle to gain momentum. But if the reverse happens—if supply can’t meet demand—prices have a better chance of increasing.

It’s possible we could see the latter scenario in the coming months.

That’s because many explorers and producers went into cost-cutting mode after the price of gold broke down from its record high of around $1,900 an ounce in August 2011. Exploration budgets were slashed, and partially as a result, there have been fewer and fewer large-deposit discoveries.

What this all means is that if gold demand were to spike unusually high, there’s a strong probability that not enough gold would be available. We would expect the metal to be traded at a premium.

gold supply crunch ahead?
click to enlarge

In the chart above, you can see how a smaller number of projects have been added to the pipeline in some recent years, thanks to a decrease in exploration budgets. Meanwhile, demand has continued to grow as incomes rise in emerging markets that have a strong appetite for the yellow metal—India, China and Turkey chief among them.

4. Gold prices have historically tracked government debt—which appears to be increasing dramatically.

I think what’s also driving gold demand right now are concerns over the U.S. budget deficit and ballooning government debt. The Congressional Budget Office (CBO) recently said it estimated the deficit to surge over $1 trillion in 2018 and average $1.2 trillion each subsequent year between 2019 and 2028, for a total of $12.4 trillion.

Believe it or not, servicing the interest on this debt alone is expected to exceed what the government spends on its military by 2023.

Now, the International Monetary Fund (IMF), in its April “Fiscal Monitor,” says U.S. government debt will continue to expand as a percent of gross domestic product (GDP), even surpassing levels we last saw during World War II.

gold supply crunch ahead?
click to enlarge

This is a cause for concern, the IMF writes, because “large debt and deficits hinder governments’ ability to implement a strong fiscal policy response to support the economy in the event of a downturn.”

You can probably tell where I’m headed with all of this. Savvy investors and savers might very well see this as a sign to allocate a part of their portfolios in assets that have historically held their value well in times of economic contraction.

Gold is one such asset that’s been trusted as a store of value in such times. As I’ve shown elsewhere, gold has tracked U.S. government debt up since 1971, when President Richard Nixon ended the gold standard.

Take the Next Step

Taking all of this into consideration, I believe an excellent way to gain exposure to the gold market is with our

The price of gold has been feeling the pressure lately from a stronger U.S. dollar, which is at a four-month high, and rising Treasury yields. Nevertheless, the yellow metal eked out a positive March quarter, returning close to 1.3 percent, while the S&P 500 Index posted its first negative quarter since 2015. This tells me the investment case in gold and gold mining stocks remains as strong as ever.

Below are four more reasons why I think you should consider adding gold stocks to your portfolio right now.

1. Gold mining stocks look inexpensive.

Billionaire investor Warren Buffett once said: “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

Compared to the broader equities market, gold mining stocks, as measured by the NYSE Arca Gold Miners Index, look incredibly “marked down” right now. They’re far below the average gold miners-to-S&P 500 ratio of 0.7 for the nine-year period, and nearly as undervalued as they’ve ever been.

I believe that for investors with a long-term horizon, this makes gold miners look especially attractive as we await valuations to revert their mean, or average. Hopefully this can be achieved without a significant decline in the S&P.

2. Rising inflation has historically lifted gold prices.

Inflation can be understood as the destruction of wealth. Every time consumer prices head higher, a dollar loses some of its value, whether in your pocket or your savings account. Inflation can also weigh on stock prices, as some investors anticipate it cutting into corporate earnings. They might therefore decide to move their money into other assets.

That includes gold, which has enjoyed a long history of being an attractive store of value during times of higher inflation.

After being mostly stagnant for several years, inflation looks as if it’s ready to stage a strong comeback, thanks to rising oil prices and new trade tariffs imposed by the Trump administration, among other factors.

But which measure of inflation is most accurate? The Federal Reserve prefers the consumer price index (CPI), but there are others, including the New York Fed’s Underlying Inflation Gauge (UIG) and ShadowStat’s Alternative CPI.

no matter which gauge you use, inflation is on the rise
click to enlarge

From the chart above, we can surmise that inflation could be highly understated right now. According to the official CPI, prices rose 2.4 percent year-over-year in March. But if we use the Fed’s methodology from 1980, as ShadowStats does, it’s possible prices advanced more than 10 percent from a year ago.

Regardless of which measure you trust the most, it’s clear that inflation has been heating up at a faster pace—meaning it might be time for investors to consider adding to their gold exposure.

3. Gold supply is shrinking while demand continues to grow.

Like most hard assets, prices of gold and other precious metals respond to supply and demand. If supply goes up but there’s little demand, prices tend to struggle to gain momentum. But if the reverse happens—if supply can’t meet demand—prices have a better chance of increasing.

It’s possible we could see the latter scenario in the coming months.

That’s because many explorers and producers went into cost-cutting mode after the price of gold broke down from its record high of around $1,900 an ounce in August 2011. Exploration budgets were slashed, and partially as a result, there have been fewer and fewer large-deposit discoveries.

What this all means is that if gold demand were to spike unusually high, there’s a strong probability that not enough gold would be available. We would expect the metal to be traded at a premium.

gold supply crunch ahead?
click to enlarge

In the chart above, you can see how a smaller number of projects have been added to the pipeline in some recent years, thanks to a decrease in exploration budgets. Meanwhile, demand has continued to grow as incomes rise in emerging markets that have a strong appetite for the yellow metal—India, China and Turkey chief among them.

4. Gold prices have historically tracked government debt—which appears to be increasing dramatically.

I think what’s also driving gold demand right now are concerns over the U.S. budget deficit and ballooning government debt. The Congressional Budget Office (CBO) recently said it estimated the deficit to surge over $1 trillion in 2018 and average $1.2 trillion each subsequent year between 2019 and 2028, for a total of $12.4 trillion.

Believe it or not, servicing the interest on this debt alone is expected to exceed what the government spends on its military by 2023.

Now, the International Monetary Fund (IMF), in its April “Fiscal Monitor,” says U.S. government debt will continue to expand as a percent of gross domestic product (GDP), even surpassing levels we last saw during World War II.

gold supply crunch ahead?
click to enlarge

This is a cause for concern, the IMF writes, because “large debt and deficits hinder governments’ ability to implement a strong fiscal policy response to support the economy in the event of a downturn.”

You can probably tell where I’m headed with all of this. Savvy investors and savers might very well see this as a sign to allocate a part of their portfolios in assets that have historically held their value well in times of economic contraction.

Gold is one such asset that’s been trusted as a store of value in such times. As I’ve shown elsewhere, gold has tracked U.S. government debt up since 1971, when President Richard Nixon ended the gold standard.

Take the Next Step

Taking all of this into consideration, I believe an excellent way to gain exposure to the gold market is with our Gold and Precious Metals Fund (USERX). USERX seeks capital appreciation and protecting against inflation and monetary instability—concerns many investors might have right now. It also pursues current income as a secondary objective.

I’m very pleased to say that as of March 31, USERX continues to hold its overall four-star rating from Morningstar among 67 Equity Precious Metals funds, based on risk-adjusted returns.

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Minera Alamos to Commence Drilling at Santana/Los Verdes Property

gold outlook free report

Minera Alamos Inc. (TSXV:MAI) reported that planning is nearing completion for the commencement of its new exploration drill program at the now combined Los Verdes/Santana gold project in Sonora, Mexico.

As quoted in the press release:

The phase one drill program consisting of up to 20 holes with a combined meterage of approximately 3,000 meters is anticipated to begin in the next month and will prioritize areas associated with the extension of the Nicho Main deposit to the NW and SE, as well as additional holes at Nicho Norte testing continuity into the contiguous Los Verdes claims (Nicho Norte is currently undergoing bulk heap leaching tests to determine optimal crushing sizes for the potential development of a commercial heap-leach mining operation). Previous drilling programs at the Santana project outlined significant gold mineralization associated with hydrothermal breccias hosted by stocks and batholithic intrusions (approximately 500 meters x 300 meters) in the Nicho main zone target area.

Drill holes were shallow (<150 meters depth) and the mineralization appears to remain open both at depth and along strike. In addition, a number of other mineralized satellite targets were identified within the project area via surface sampling and limited drilling. The most significant of these to date is the Nicho Norte area located approximately 500m northwest of the Nicho Main Zone and which is the subject of ongoing heap leach test mining activities.

Similar gold mineralization was once again drilled via shallow holes (<150 meters) over a strike length of approximately 200 meters right up to the limits of the then owner's (Corex Gold) northern claim boundary. The identified mineralization appears to extend northwards onto the contiguous Minera Alamos Los Verdes concessions and testing these extensions will be one of the primary objectives of the current exploration program.

The company’s current exploration program will be the first drilling campaign at the project since the Nicho deposit was delineated in 2009-2011. During that time 25,000 meters of total drilling was completed; approximately half occurred within the main zone area, returning significant intervals of disseminated gold mineralization

• 87 meters grading 1.04 g/t gold; and • 47.5 meters grading 0.80 g/t gold mineralization extends from surface and appears to remain open at depth.

A portion of the currently budgeted drill program will be aimed at confirming the vertical continuity of the deposits.

Doug Ramshaw, president, commented:

The opportunity to combine the two respective project areas within Minera Alamos immediately provides near-term gold exploration upside by allowing the previously identified Nicho gold structures to be followed onto the southern end of the Company’s Los Verdes concessions.

These concessions were known to be the subject of historical gold activity and recent surface work by our exploration group has confirmed the presence of Nicho-style geology across the concession boundaries. In addition to targeting lateral extensions, the current program will also allow the Company to confirm the deeper vertical potential of the deposits. We look forward to providing updates on the progress and results from the drill program over the coming months.

Click here to read the full Minera Alamos Inc. (TSXV:MAI) press release.


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Chalice Gold Mines Makes Investment in Renforth and Options Denain-Pershing Property

Renforth Resources (CSE:RFR) (“Renforth” or the “Company”) is pleased to announce that an earn-in option has been granted to Chalice Gold Mines Limited (“Chalice”) of Western Australia on the Denain-Pershing Property. In addition, Chalice has agreed to participate in Renforth’s next financing transaction in the amount of $250,000, on the same terms (to be determined) as other participants.

In order to earn an 80% interest in the Denain-Pershing Property, over a 3 year period, Chalice will make payments to Renforth totaling $200,000 and spend $1,250,000 in work on the property. Once Chalice has earned their interest an 80/20 joint venture will be formed between Chalice and Renforth.

“Renforth is pleased to welcome Chalice as a partner in the Denain-Pershing project, and eventually as a shareholder in Renforth. Chalice is a well-financed Australian and TSX listed company with multiple gold properties, including those near the Denain-Pershing property. The proposed equity position in Renforth as well as the JV is indicative of their interest in the area as well as the merit of Renforth’s resource properties on the Cadillac break and elsewhere, Renforth is a well positioned junior gold explorer. This year we will focus our exploration dollars on building gold ounces on two of our properties and I look forward to reporting the work to be done by Chalice through this JV partnership,” States Nicole Brewster, President and CEO of Renforth.

The option agreement is subject to the completion of ongoing due diligence, and any regulatory approvals required. The equity order is subject to agreement to terms, all parties acting reasonably, to close by May 31, 2018.

For further information please contact:

Renforth Resources Inc.

Nicole Brewster

President and Chief Executive Officer

C:416-818-1393

E: nicole@renforthresources.com

#200 – 65 Front St. E, Toronto, ON M5E 1B5

No securities regulatory authority has approved or disapproved of the contents of this news release.

Forward Looking Statements

This news release contains forward-looking statements and information under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as ‘may’, ‘will’, ‘plan’, ‘expect’, ‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals, licenses and permits and the availability of financing, as described in more detail in the Company’s securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and the Company assumes no obligation to revise or update these forward-looking statements except as required by applicable law.

To view the original release, please click here

Click here to connect with Renforth Resources (CSE:RFR) for an Investor Presentation.

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Northern Vertex Provides Commissioning Update for Moss Mine

gold outlook free report

Northern Vertex Mining Corp. (TSXV:NEE) announced that they have completed five gold shipments and continue to meet the design expectations of their NI 43-101 feasibility report at its Moss Mine in Arizona.

Highlights are as follows:

  • Grade and tonnage reconciliation inline with reserve model
  • Recoveries meeting feasibility numbers
  • Crushing plant throughput better than feasibility
    Mining
    • 241,000 metric tonnes of ore grade material mined to date
    • Blast hole ore grades on Hill #1 and Hill #2 are consistent with our geological model
    • NA Degerstrom (‘NAD’) mining contract has been approved; larger mining fleet to arrive in the coming weeks to increase throughput as a natural extension of our ramp-up
    • Initial block model reconciliation shows ore tonnage at reserve modeled grades are in-line with feasibility study expectations

    Crushing Plant

    • 20 percent increase over feasibility study in through put with average hourly operating rate of 386 metric tonnes
    • 33 percent longer life than feasibility study on life of cone crusher liners with replacement of first set at 100,000 tonnes

    Heap Leach Pad

    • 184,000 metric tonnes crushed, agglomerated and stacked on the pad for processing through April 25, 2018
    • 5,094 gold contained ounces (4,177 recoverable ounces) and 41,960 silver contained ounces (27,274recoverable ounces) have been stacked on the pad as of April 28th

    Process Plant

    • Leach solution started being pumped to pad on February 3, 2018
    • Pregnant solution reporting off of pad on February 11, 2018
    • Pregnant solution initially pumped through Merrill Crowe plant on February 17, 2018
    • First gold pour on March 7, 2018
    • Five shipments of Dore for external refining to date totaling 374 ounces of gold and 1,089 ounces of silver
    • Initial gold recovery is meeting the expected rates from the feasibility model

    Clean Electrical Power

    • The Bureau of Land Management (“BLM”) announced on May 1, 2018 that the environmental assessment for the proposed rights-of-way for the electric distribution line, fiber optic line and road expansion proposed on public lands east of Bullhead City to the Moss Mine were available for review and comment. The 15-day public comment period opens on May 3, 2018 and closes May 18, 2018.
    • Replacing existing generators with utility power is expected to reduce emissions from burning 5,300 gallons of diesel fuel per day when the mine is operating at intended capacity

    Human Resources

    • The NEE Operational team currently consists of 55 NEE staff and 22 NA Degerstrom contract miners at the Moss Mine Site.
    • Exploration team lead by NEE Advisors Bud Hillemeyer and Perry During are conducting regional and close proximity satellite exploration programs within the Oatman District.

Kenneth Berry, president & CEO, commented:

Commissioning at the Moss Mine continues towards commercial production. I am delighted with the progress made by our operations team, led by Bill Martinich, to check off punch-list items and provide insightful equipment upgrades to improve operational efficiencies. We anticipate further optimizations during this ramp up period as we continue to pour gold at the Moss Mine.

Click here to read the full Northern Vertex Mining Corp. (TSXV:NEE) press release.


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Wallbridge Closes Equity Private Placement

Wallbridge Mining Company Ltd. (TSX:WM, FWB:WC7) (“Wallbridge” or the “Company”) is pleased to announce the closing of its previously announced non-brokered private placement through the issuance of 28,518,657 common shares (“Shares”) of the Company at a price of C$0.07 per Share for gross proceeds of $1,996,306 (the “Offering”). No finder fees or commissions were paid in connection with the Offering.

William Day Holdings Limited (“William Day”) acquired 27,142,857 Shares for total consideration to the Company of $1,900,000 (the “Acquisition”). Prior to the Acquisition, William Day owned 27,652,050 Shares of the Company representing approximately 9.35% of the issued and outstanding Shares of the Company. In addition, William Daycurrently owns 11,722,050 additional Share purchase warrants. Following the Acquisition, William Day owns 54,794,907 Shares of the Company representing approximately 16.98% of the issued and outstanding Shares on a non-diluted basis, and approximately 19.89% on a partially diluted basis.

All securities issued under the Offering are subject to a statutory hold period of four months in accordance with applicable securities legislation. The proceeds of the Offering will be used to fund the 35,000-tonne bulk sample at Wallbridge’s 100%-owned Fenelon Gold Deposit in Quebec (see Wallbridge news release issued May 1, 2018).

About Wallbridge Mining

Wallbridge is working to establish a pipeline of projects that will support sustainable production and revenue as well as organic growth through exploration and scalability.

Wallbridge is currently developing its 100%-owned high-grade Fenelon Gold property in Quebec with ongoing exploration and a bulk sample in 2018. Wallbridge is also pursuing other additional advanced- stage projects which would add to the Company’s near term project pipeline. These discussions benefit from the operating capabilities Wallbridge demonstrated by safely and efficiently mining the Broken Hammer deposit in Sudbury, which was completed in October 2015. Wallbridge is also continuing partner-funded exploration on its large portfolio of nickel, copper, and PGM projects in Sudbury, Ontario, with a focus on its high-grade Parkin project.

This press release may contain forward-looking statements (including “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge’s most recent annual information form under the heading “Risk Factors” and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.

Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.

Click here to connect with Wallbridge Mining Company Ltd. (TSX:WM, FWB:WC7) for an Investor Presentation.

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Anaconda Mining Achieves Quarterly Gold Sales of 4,526 Ounces in Q1 2018

gold outlook free report

Anaconda Mining Inc. (TSX:ANX) reported its financial and operating results for the three months ended March 31, 2018 (“Q1 2018”).

Highlights are as follows:

  • First Quarter 2018 Highlights
    • Anaconda sold 4,526 ounces of gold in Q1 2018, a 25.8 percent increase over the three months ended February 28, 2017, generating gold revenue of C$7.6 million at an average realized gold price per ounce sold* of C$1,677.
    • Strong revenue and lower costs enabled the Point Rousse project to generate EBITDA* of C$3.3 million for the first quarter of 2018, compared with C$0.8 million for the three months ended February 28, 2017.
    • On a consolidated basis, EBITDA* for the three months ended March 31, 2018 was C$2.4 million, an increase of C$1.8 million over the comparative period.
    • Operating cash costs per ounce sold* at the Point Rousse project in Q1 2018 was C$900 (US$712), well below 2018 annual guidance of around C$1,100, and a 32.6 percent improvement over the comparative fiscal quarter.
    • All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was C$1,377 (US$1,090) for Q1 2018, a 23.5 percent improvement over the three months ended February 28, 2017.
    • The company invested C$1.5 million in its exploration and development projects, including C$1.0 million on the Goldboro Gold project in Nova Scotia.
    • Significant development progress was achieved at Stog’er Tight, achieving 159,927 tonnes of waste development, the dewatering of Fox Pond, and the completion of a settling pond and pit dewatering system.
    • The company has commenced the conversion of the Pine Cove pit into a fully permitted tailings storage facility, which will provide 15 years of capacity based on throughput rates of 1,350 tonnes per day.
    • Net income for the three months ended March 31, 2018 was C$149,218, or C$0.00 per share, compared to a net loss of C$940,032, or C$0.02 per share, for the three months ended February 28, 2017.
    • As at March 31, 2018, the company had cash of C$2.8 million, net working capital* of C$6.6 million, and additional available liquidity of C$1,000,000 from an undrawn revolving line of credit facility.

Dustin Angelo, CEO, commented:

Anaconda continues to demonstrate its ability to operate in a safe, responsible, and profitable manner, driving down unit operating costs and generating strong operating cash flows from its Point Rousse Project in the first quarter of 2018, while making significant progress developing the Stog’er Tight Mine. Our established and robust physical infrastructure and experienced workforce, together with the consistent performance at Point Rousse, form the platform for a well-defined growth strategy in Atlantic Canada. Leveraging the Pine Cove Mill and the fully-permitted Pine Cove tailings facility, Anaconda has the ability to accelerate the development of gold projects such as the Hammerdown Mine owned by Maritime Resources Corp, for which Anaconda has made a take-over offer, which will drive long-term shareholder value for both Maritime and Anaconda.

Click here to read the full Anaconda Mining Inc. (TSX:ANX) press release.


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Osprey Commences Exploration Program at Caribou Gold Project, Nova Scotia

Osprey Gold Development Ltd. (TSXV:OS, OTCQB:OSSPF) is pleased to announce the commencement of its 2018 exploration programs on the ground in Nova Scotia, Canada. The first phase of work has begun at the Caribou Gold Project (“Caribou”), located approximately 80 kilometers northeast of the city of Halifax, Nova Scotia.

“We are happy to start our 2018 exploration with work at the Caribou project. Through the winter, we’ve been busy with desktop data compilation and interpretation, and have prioritized several key areas where we believe near surface mineralization may be present within the host rock argillites,” said Company President Cooper Quinn. “This program will look to advance these areas, especially the Dixon-Truro Trend and Elk Zone targets, to a drill ready stage. We’ll also be working to identify additional stockwork or “fissure vein” style mineralization at Caribou, as these zones historically provided some of the best grades and widths in the area, both in historic production records and previous exploration.”

Figure 1 – Caribou Project overview, showing surface expression of veining, and overall anticline structure. The Elk and Dixon-Truro trend will be the focus of near-term exploration.

To view an enhanced version of Figure 1, please visit: http://orders.newsfilecorp.com/files/5059/34444_a1525324992306_47.jpg

This initial phase of work at Caribou will consist of re-analysis of historic core, surface sampling and mapping, followed by mechanical trenching. Analysis of previous drilling will start on two zones where previous work left large intervals of potentially mineralized sediments outside the gold-bearing quartz veins unsampled. The Dixon-Truro Trend on the south limb of the anticline was drilled by Seabright Exploration in 1988; the Elk Zone, on the north limb of the anticline at the boundary of the Goldenville and Halifax sedimentary formations, was subject to a limited drill program in 1987, with five holes focused on one vein target. Several holes from each zone will have unsampled zones split and submitted for analysis. A mechanical trenching program will follow this work, and will be focused on extensions of both zones with the goal to fully develop new drill targets on the property.

About the Caribou Property

  • Strategically located, 8 kilometres north of Atlantic Gold’s Touquoy Mine and Moose River Consolidated mill site and completely surrounded by Atlantic Gold claimholdings (see Figure 1 below);
  • Historic drill results in stockwork zones include 11.2 metres grading 10.86 grams per tonne (“g/t”) gold in Hole CM-98-01 and 9.8 metres grading 12.2 g/t gold in Hole SB-88-11;
  • Project area includes broad areas of Halifax Group argillites, a favored host rock for disseminated gold and which at the Caribou Project are largely unexplored;
  • Reported past production of over 100,000 gold ounces between 1869 and 1955, as reported in a historical technical report prepared for Scorpio Gold Corporation by Guy Mac Gillivray, P.Geo. of W.G. Shaw and Associates Limited in a report dated October 8, 2008 (the “Historical Report”);
  • An inferred historic resource of 94,763 ounces of gold in 350,305 tonnes grading 8.81 g/t gold, uncut (the “Historic Estimate”); and
  • Using a grade cap for gold of 47.0 g/t (to compensate for nugget effect) the Historical Estimate for the Caribou Gold Property is 350,305 tonnes grading 5.83 g/t gold, or 67,425 ounces of gold;

The reader is cautioned that a qualified person has not done sufficient work to classify this Historical Estimate as current resources and Osprey is not treating this Historical Estimate as a current mineral resource. While this estimate was prepared in accordance with National Instrument 43-101 and the “Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines” in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The Historical Estimate is relevant to obtain a reference to mineral potential present on the property. The Company has not undertaken any verification of the historical data upon which the historical estimates are based on.

About Goldenville and Osprey

Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100% (subject to certain royalties) in all five properties, including the Goldenville Gold Project, Nova Scotia’s largest historic gold producer. Goldenville hosts a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped) near the town of Sherbrooke, NS. All five properties in Osprey’s current portfolio have a history of high-grade gold production. A copy of the Company’s technical report titled “Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada” prepared by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company’s profile at www.SEDAR.com.

A Quality Control/Quality Assurance program, including the insertion of Standards and Blanks, has been implemented. The 2018 exploration program on the Company’s properties is performed under the supervision of Perry MacKinnon, P.Geo, Vice-President of Exploration of Osprey Gold Development Ltd. and a ‘Qualified Person’ under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.

Additional information regarding Osprey and the Goldenville property is available under the Company’s profile at www.sedar.com and at www.ospreygold.com.

For further information please contact:

ON BEHALF OF OSPREY GOLD DEVELOPMENT LTD.,

“Cooper Quinn”

Cooper Quinn, President and Director

For further information please contact Osprey at (778)986-8192 or cooper@ospreygold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Osprey within the meaning of applicable securities laws. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific …read more

Ely Gold Royalties Sells Kraut Claims to VR Resources

Ely Gold Royalties Inc. (TSXV:ELY, OTC:ELYGF) (“Ely Gold”) through its wholly owned subsidiary, Nevada Select Royalty, Inc (“Nevada Select”) is pleased to announce that it has entered into a definitive sale agreement with Renntiger USA, a Nevada corporation and a wholly owned subsidiary of VR Resources Ltd (“VR Resources”), a British Columbia corporation listed on the TSX Venture Exchange (TSXV: VRR), whereby VR Resources has acquired a 100% interest in six unpatented mining claims (the “Kraut Claims” or “Kraut”) located in Nye County, Nevada (the “Sale Agreement”). The total consideration for the claims is US$60,000 and 100,000 VR Resources common shares. Nevada Select will retain a 2.0% net smelter returns royalty (“NSR”). The Sale Agreement is subject to approval of the TSX-V and final documentation (the “Closing”).

The acquisition of the Kraut property allows VR Resources to expand its epithermal gold exploration strategy within the southern part of the Walker Lane belt in west-central Nevada. As shown on Figure 1, of this news release, the Kraut property is located approximately 5 kms northwest of VR Resources’ Danbo property. The Kraut and Danbo Projects are hosted by silicic volcanic rocks. The properties sit on the edge of a caldera similar to of the Round Mountain deposit, 45 kms east, with gold production over a 15-year period. Nevada Select acquired the Kraut Claims as part of the Platoro West acquisition announced in a June 23, 2017 news release. Nevada Select also acquired a 3% NSR on eight Danbo claims, from Wolfpack Gold, announced in a press release dated September 15, 2017

Trey Wasser, President and CEO of Ely Gold stated, “We are very pleased to assist VR Resources in the consolidation of the Kraut and Danbo Projects. Our business model, predicated on the consolidation of district scale projects identified by using our proprietary data base, continues to generate fresh under-explored projects in Nevada. This Option adds another exciting exploration royalty while significantly expanding the coverage of our Danbo Royalty. VR Resources is an excellent exploration partner with three projects now in our growing Nevada asset portfolio.”

The Sale Agreement

Under the terms of the Sale Agreement, VR Resources will acquire a 100% interest in the Kraut Claims by undertaking the following payments:

  • US$10,000 and 50,000 VR Resources shares at Closing; and
  • US $50,000 and 50,000 VR Resources shares once an initial drill program begins on any of the Kraut Claims included in the Sale Agreement

VR Resources shall have the right, at any time, to purchase up to one percent (1.0%) of the NSR at a cost of $500,000 for each one half of one percent of the NSR for a maximum cost of $1,000,000, thus reducing the NSR to a minimum of one percent (1.0%). The NSR will include an area of interest which includes the two sections surrounding the Kraut Claims.

VR Resources has also agreed to amend the Danbo Royalty to include 30 additional claims acquired by VR Resources and any subsequent claims acquired at Danbo.

Figure 1. Location of Danbo and Kraut mineral properties, VR Resources Ltd., Nye County, Nevada.

Cannot view this image? Please visit:
http://orders.newsfilecorp.com/files/4181/34428_a1525295260744_97.jpg

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties is an emerging royalty company with interests in 70 precious metal properties, primarily in Nevada. 41 of these properties are being explored by majors, producing mid-tiers and high quality junior exploration companies. 21 properties are in the Company’s royalty portfolio and 20 properties are being purchased under option contracts. All the Company’s option properties will produce royalties, if exercised. Ely Gold is also actively purchasing existing third-party royalties. Ely Gold maintains a strong cash position and a gold stock equity portfolio. Ely Gold is well positioned with its current portfolio of 29 available properties to generate operating revenue and royalties through additional option and sale transactions. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com
972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com
604-488-1104

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Click here to connect with Ely Gold Royalties Inc. (TSXV:ELY, OTC:ELYGF) and receive an Investors Presentation.

The post Ely Gold Royalties Sells Kraut Claims to VR Resources appeared first on Investing News Network.

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“Money Is Gold — and Nothing Else”

PLACEHOLDER

This post “Money Is Gold — and Nothing Else” appeared first on Daily Reckoning.

Following the Panic of 1907, John Pierpont Morgan was called to testify before Congress in 1912 on the subject of Wall Street manipulations and what was then called the “money trust” or banking monopoly of J. P. Morgan & Co.

In the course of his testimony, Morgan made one of the most profound and lasting remarks in the history of finance. In reply to questions from the congressional committee staff attorney, Samuel Untermyer, the following dialogue ensued as recorded in the Congressional Record:

Untermyer: I want to ask you a few questions bearing on the subject that you have touched upon this morning, as to the control of money. The control of credit involves a control of money, does it not?

Morgan: A control of credit? No.

Untermyer: But the basis of banking is credit, is it not?

Morgan: Not always. That is an evidence of banking, but it is not the money itself. Money is gold, and nothing else.

Morgan’s observation that “Money is gold, and nothing else,” was right in two respects. The first and most obvious is that gold is a form of money. The second and more subtle point, revealed in the phrase, “and nothing else,” was that other instruments purporting to be money were really forms of credit unless they were redeemable into physical gold.

My readers know that I am a big proponent of gold. We should all be mindful of Morgan’s admonition, and not lose sight of the way in which real wealth is preserved through manias, panics and crashes.

Today I’ll provide an overview on why I recommend gold in every portfolio, and why gold may be the best performing asset class in the years ahead.

Specifically, my intermediate term forecast is that gold will reach $10,000 per ounce in the course of the current bull market that began in December 2015. I recommend that investors keep 10% of their investable assets in physical gold (with room left in the portfolio for “paper gold” in the form of ETFs and mining stocks).

Here’s the analysis:

We begin with the 10% allocation. The first step is to determine “investable assets.” This is not the same as net worth. You should exclude your home equity, business equity and any other illiquid or intangible assets that constitute your livelihood. Do not take portfolio market risk with your livelihood or the roof over your head. Once you’ve removed those assets, whatever is left are your “investable assets.” You should allocate 10% of that amount to physical gold.

Your correspondent in a vault near Zurich, Switzerland during a recent visit. The pallet in front of me has $25 million in gold bars arrayed.

This gold should not be kept in a bank safe deposit box or bank vault. There is a high correlation between the time you’ll want your gold the most and the time banks will be closed by government order. Keep your gold in safe, non-bank storage.

The next part of the analysis concerns my $10,000 per ounce forecast for the dollar price of gold. This is straightforward.

Excessive Federal Reserve money printing from 2008–2015 combined with projected U.S. government deficits over $1 trillion per year for the foreseeable future, and a U.S. debt-to-deficit ratio of 105% rising to over 110% in a few years, leave the U.S. dollar extremely vulnerable to a collapse of confidence on the part of foreign investors and U.S. citizens alike.

That collapse of confidence will not happen in a vacuum. It will coincide with a more general loss of confidence in all major central banks and reserve currencies. This loss of confidence will be exacerbated by malicious efforts on the part of Russia, China, Turkey, Iran and others to abandon dollars entirely and to bypass the U.S. dollar payments system.

The evolution of oil pricing from dollars to IMFs special drawing rights, SDRs, will be the last nail in the dollar’s coffin. All of these trends are well underway now, but could climax quickly into a general loss of confidence in the dollar.

At that point, either the U.S. acting on its own or a global conference resembling a new Bretton Woods will turn to gold to restore confidence. Once that route is chosen, the critical factor is to set a non-deflationary price for gold that restores confidence, but does not lead to a new depression.

Here’s the math on how to compute a non-deflationary price of gold using the latest available data:

The U.S., China, Japan and the Eurozone (countries using the euro), have a combined M1 money supply of $24 trillion. Those same countries have approximately 33,000 tons of official gold.

Historically, a successful gold standard requires 40% gold backing to maintain confidence. That was the experience of the United States from 1913 to 1965 when the 40% backing was removed.

Taking 40% of $24 trillion means that $9.6 trillion of gold is required.

Taking the available 33,000 tons of gold and dividing that into $9.6 trillion gives an implied gold price of just over $9,000 per ounce. Considering that global M1 money supply continues to grow faster than the quantity of official gold, this implied price will rise over time, so $10,000 per ounce seems like a reasonable estimate.

I believe this kind of monetary reset is just a matter of time. It could happen through a planned process such as a new Bretton Woods, or a chaotic process in response to lost confidence, heightened money velocity, and runaway inflation.

The portfolio recommendation is to put 10% of investable assets into physical gold as a diversifying asset allocation and as portfolio insurance. The following example demonstrates that insurance aspect.

For purposes of simplification, we’ll assume the overall portfolio contains 10% gold, 30% cash, and 60% equities. Obviously those percentages can vary and the equity portion can include private equity and other alternative investments.

Here’s how the 10% allocation to gold works to preserve wealth:

If gold declines 20%, unlikely in my view, the impact on your overall portfolio is a 2% decline (20% x 10%). …read more

From:: Daily Reckoning

The Dreaded “S-word” Threatens a Return

TIP:TLT

This post The Dreaded “S-word” Threatens a Return appeared first on Daily Reckoning.

A fearsome bogeyman may be stalking the American economy…

Dormant for decades, many considered it permanently licked.

But some have picked up its grisly scent… and discovered its approaching footprints.

What is this fee-fi-fo-fum?

And why its possible return?

Today we investigate the reports… weigh the evidence… and hazard a judgment.

We first note that first-quarter GDP fell 0.6% from the previous quarter.

And the New York Fed’s six-month business activity outlook plunged from 44.1 last month… to a dismal 18.8.

According to Danielle DiMartino Booth, former adviser to the president of the Dallas Fed:

The 26-point move lower is worse than anything seen during the 2008–09 financial crisis and on par only with the one that followed Sept. 11.

We further note that consumer spending slowed to its weakest pace in nearly five years last quarter.

Of course, one swallow does not a summer make… nor does one snowball a winter make.

But the overall trend does not… encourage.

And at 107 months, the current recovery vastly exceeds the 58-month post-WWII average.

How much longer can it last?

But to the second part of our tale…

Inflation begins to stir.

Consumer prices — excluding food and energy — rose at a 2% annual rate the first three months of 2018.

And oil prices have soared nearly 50% since last August alone.

The cost of fueling an average tractor-trailer has risen nearly $100 over the past year.

Your grocer, of course, hands you a part of that bill at the check-out.

“More and more we are going to see small businesses having to pass along those higher costs,” affirms Scott Anderson, chief economist at the Bank of the West.

Meantime, the folks at Phoenix Capital say the bond market is predicting a “massive inflationary development.”

As they explain:

Perhaps the single best metric for measuring inflation versus deflation for the bond market is the Treasury inflation-protected securities (TIPs) versus Long U.S. Treasury ratio.

In its simplest rendering when this ratio rises, it means inflation is on the rise. When it falls it means deflation is dominating the bond markets.

As you can see in the chart below, this ratio has just broken out of a 10-year deflationary downtrend. This is the FIRST confirmed breakout since the 2008 crisis. And it signals a tectonic shift toward inflation is underway in the bond markets.

A “tectonic shift toward inflation is underway,” they say.

Above we draw a portrait of weakening growth… and approaching inflation.

Which inevitably brings us to the topic of today’s discussion…

Stagflation.

The word is as ugly as it sounds — a ghastly portmanteau of stagnation and inflation.

It conjures the darkest days of the 1970s…

Stalling economic growth, soaring prices, gas lines… bell-bottomed trousers.

We do not suggest stagflation has arrived — unlike the 1970s, for example, official unemployment is low.

And gas lines can nowhere be found.

But with slackening growth and percolating inflation… are we receiving a foretaste of coming events?

“Investors better wake up to the growing risk of stagflation,” thunders the aforesaid Danielle DiMartino Booth.

“By all metrics, inflation is heating up,” she continues, “but it’s not clear the same can said for underlying economic activity.”

No, alas, it is not clear.

Ms. DiMartino Booth is not alone.

Jim Paulsen, chief investment strategist at the Leuthold Group:

This idea of facing higher rates and higher inflation with decelerating economic momentum — that’s stagflation and that’s very frightening for both stock and bond investors.

Our how about the maestro himself?

What does old Alan Greenspan say?

Stagflation is about to emerge. We are moving into a different phase of the economy, to a stagflation not seen since the 1970s.

Given Mr. Greenspan’s “imperfect” forecasting record… you may salt his comments according to your taste.

But finally we come to our own Jim Rickards:

Now we’re returning to that unpleasant combination of low growth and high inflation… Stagflation may be in the cards. If so, it will be a return to the late 1970s when the “misery index” was created to describe the stagflation combination of high interest rates and high unemployment at the same time.

History rarely, if ever, repeats itself, as Mark Twain said — but it does “rhyme.”

Could we be heading for a 21st-century stagflation… absent the trappings of the disco era?

We have no answer, of course.

But two things we do know…

1: We need no reminders of the 1970s — thank you just the same.

And…

2: Gold skyrocketed 2,300% during the stagflation of the 1970s.

Regards,

Brian Maher
Managing editor, The Daily Reckoning

The post The Dreaded “S-word” Threatens a Return appeared first on Daily Reckoning.

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From:: Daily Reckoning