Gold, Silver & US Dollar Updates with Review of Latest COTS

Source: Clive Maund for Streetwise Reports 05/21/2018

Technical analyst Clive Maund looks at gold, silver and the dollar after reviewing the latest COT Charts.

Gold’s breach of nearby support last week freaked out some longs of a nervous disposition, but it did no technical damage of any significance, as we can see on our latest 3-year shown chart below on which we can observe that it is still above important supporting trendlines. This chart shows that last week’s drop was just a “storm in a teacup.” Recall that the pattern that has been forming since mid-2016, for nearly two years now, is the Right Shoulder of its giant Head-and-Shoulders bottom that may be viewed on the 8-year chart in the last Gold Market update.

Last week’s drop actually improved gold’s technical condition by flushing out more jittery Large Specs, as we can see on its latest COT chart. While there is room for further improvement, positions are now at levels that are moderate enough to permit a rally, which will happen if the dollar reverses here or soon.

Turning to the 3-year chart for silver, we see that its technical condition is becoming extraordinarily tight, with fluctuations narrowing into a very tight range. This is a situation that must lead soon to a big move, and for a variety of reasons, that move is expected to be to the upside. Recall that the pattern that has been forming since mid-2016, for nearly two years now, is the Right Shoulder of its giant downsloping Head-and-Shoulders bottom that may be viewed on the 8-year chart in the last Silver Market update.

One important reason that silver’s next big move is expected to be to the upside is its COT structure, which is still more bullish than gold’s, with relatively low Commercial short positions and extremely low Large Spec long positions. Although this COT has deteriorated somewhat over the past two weeks, it remains strongly bullish.

Even though gold and silver’s charts and COTs remain strongly bullish, as we have just seen, many are worried that the party will be ruined by a continuation of dollar strength, with it now being widely assumed that it will carry on ascending, so how does its latest chart look?

On the latest 5-month chart for the dollar index, we can start to see signs that its strong rally is running out of steam, with it starting to round over, having punched through its falling 200-day moving average, and one possibility, which is shown, is that it is at or very close to the high point of an intermediate Head-and-Shoulders top. This is an audacious call that could of course quickly be squelched by market action, but if should prove correct, then the precious metals sector should turn up here and gold and silver proceed to break out of their giant Head-and-Shoulders bottom patterns, as we have long been expecting, which will cause the PM sector to rocket higher.

With regards to possible reasons why the dollar might reverse here we have some interesting news out of Europe in “Brussels Rises In Revolt Against Washington,” that, tired of being dictated to by Washington, in addition to not obeying Washington’s commands that it pull out of the nuclear treaty, it is taking steps to circumvent the use of the dollar when buying oil from Iran.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who …read more

From:: The Gold Report

Golden Triangle Stock Review

Source: Clive Maund for Streetwise Reports 05/21/2018

Technical analyst Clive Maund takes a look at miners working in British Columbia’s Golden Triangle.

We have looked at three exploration stocks working in British Columbia’s Golden Triangle in recent months. Two of them are at about the same price as when we bought them, while the third is up significantly, and all three are expected to advance in coming months as the drilling season unfolds. They should go up even if gold doesn’t go up, although it is expected to.

In this update we are going to review the technicals of these three stocks, and three new ones have been added. You will observe that since we are talking about the Golden Triangle here, this article started with three stocks, and has just been expanded to six stocks, which are, of course, multiples of the number of sides of a triangle.

The well-known Lawrence Roulston has got the fundamentals of the Golden Triangle well covered in his just published interview, Highly Anticipated Summer of Exploration in BC’s Golden Triangle, which it is worth reading carefully. I, therefore, do not need to discuss them, but would draw your attention to the key third paragraph in Roulston’s article, which, for convenience, is pasted in below, and also to the additional point he makes that the infrastructural situation in the Golden Triangle (roads, electricity, etc.) is vastly improved. From Roulston’s article:

“After decades of traveling around the world looking for big high-grade metal deposits, I found the best area was right here in my backyard—the northwest part of British Columbia (B.C.), an area called the Golden Triangle. It’s one of the most richly endowed mineral regions on the planet. The gold resources that have already been outlined in that region exceed the Carlin Trend, which is generally seen to be the biggest depository of gold on this side of the planet. And in addition to the gold, there’s an equivalent value of silver, copper and other base metals as well as exotic metals like scandium. So, this is a really exceptional depository of metals and there will be a lot more ounces and pounds found in that region over the next couple of years.”

Now we will proceed to review the three Golden Triangle stocks that we bought earlier. Note that clicking on the stock name will take you back to the latest/last report on it.

Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS); CA$0.21, $0.165

We start with Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS), which we bought at just the right time as its current uptrend started early in April, so even after the correction of recent days it is up 50%, as we can see on its latest 6-month chart below.

Despite the stock having become overbought some days back, we decided not to sell, but to ride out any minor correction, because it is still early in its drilling season speculative rally, which could see it attain its highs of last year by midsummer and possible exceed them, as we can see on its 3-year chart below.

Aben Resources website.

Auramex Resources Corp. (AUX:TSX.V); CA$0.065

On the 10-year chart for Auramex Resources Corp. (AUX:TSX.V) we can see that it is just started to emerge out of a giant saucer-base pattern, with its volume indicators positive.

On the 3-year chart we see that it is in a strong uptrend, and at a good entry point having just reacted back to support near to its rising 200-day moving average. Although it looks like it has risen a lot already on this chart, with the benefit of having looked at the 10-year, we know that it could rise much further yet and could well accelerate.

On the 6-month chart we see that we are at a good entry point right now.

Auramex Resource Corp website.

Golden Ridge Resources Ltd. (GLDN:TSX.V); CA$0.14

Next we look at Golden Ridge Resources Ltd. (GLDN:TSX.V), which is at about the same price as when we bought it back in the middle of March. As we can see on its latest 9-month chart it is still basing in a trading range, but as the drilling season gets underway it is likely to do what we expected of it, which is to break out of the trading range and advance, possibly steeply, again probably topping out in midsummer.

Golden Ridge Resources website.

Metallis Resources Inc. (MTS:TSX.V); CA$1.33, $1.03

Metallis Resources Inc. (MTS:TSX.V) staged a summer rally of almost mind-boggling proportions last year, as we see on its 1-year chart. This was followed by an inevitable fall reaction, which was actually rather modest and followed by the formation of a saucer-base pattern, that appears to be completing, as luck would have it, right at the start of a new drilling season. Could we see another big summer ramp? We could—why not? Although since it will begin from a much higher start point we won’t and can’t see the sort of percentage gains that occurred last year. Nevertheless they could be well worth going for, and after the dip of recent days it is rated a strong speculative buy here.

The 6-month chart shows recent action in more detail, and we can see more clearly the recent uptrend above the saucer boundary, with the bullishly aligned moving averages providing underlying support. Good entry point but a break below the saucer boundary would spoil the pattern. Dump it if it drops below CA$1.20. The stock should break out upside from the saucer imminently. Metallis trades in light but acceptable volumes on the U.S. OTC market.

Metallis Resources <a target="_blank" …read more

From:: The Gold Report

Jack Chan’s Weekly Precious Metals Update

Source: Jack Chan for Streetwise Reports 05/21/2018

Technical analyst Jack Chan updates his gold and silver charts.


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 sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.


Speculation is in bull market values.


A massive multiyear bottoming pattern is in progress.


Silver is on a long-term buy signal.


SLV is on a short-term sell signal, and short term signals can last for days to weeks, more suitable for traders.


Speculation is at a multiyear low and yet prices are holding firm.

Summary
The precious metals sector is on a long-term buy signal. Short term is on sell signals. The cycle is up. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

…read more

From:: The Gold Report

Drill Results May Double Size of Gold-Bearing Structure on Canadian Project

Source: Streetwise Reports 05/20/2018

Wrapping up its winter drill program, holes on this company’s property in the Northwest Territories included discovery of visible gold.

In a May 8 press release, TerraX Minerals Inc. (TXR:TSX.V) announced that additional drilling on the Crestaurum zone in its Yellowknife City gold project had intersected mineralization that may have doubled the known size of the gold-bearing structure, and included visible gold.

Assays from 11 drill holes included four in the “high-grade Crestaurum gold bearing structure to test whether gold mineralization continued to depth.”Two of those holes showed visible gold, and all “intersected significant gold.”

The assays showed the following:

  • 8.84 g/t Au over 2.49 m and 5.38 g/t Au over 0.63 m in hole TCR18-076
  • 3.08 g/t Au over 2.80m, and 5.57 g/t Au over 2.06 m, in hole TCR18-078
  • 13.30 g/t Au over 1.24 m, and 4.41 g/t Au over 0.80 m, in hole TCR18-079
  • 3.86 g/t Au over 0.56 m in hole TCR18-077

TerraX also completed additional exploration work at its Sam Otto west zone, drilling five holes that all intersected “gold mineralized structure with best results of 3.00 g/t Au over 2.69 m in hole TSO18-038, 1.06 g/t Au over 4.00 m in hole TSO18-041, and 1.32 g/t Au over 2.70 m in hole TSO18-036,” according to the release. The company asserted these results “makes this a good target for continued exploration.”

Reflecting on results from the Crestaurum zone, TerraX CEO Joe Campbell said, “This small program of four holes successfully demonstrated that the Crestaurum zone continues at depth on multiple surfaces, potentially doubling the size of the zone. The 300 meter vertical depth tested with these holes is still considered very shallow for Archean lode gold deposits and mineralization remains open for further expansion, both along strike and at depth.”

Read what other experts are saying about:

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: TerraX. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: TXR:TSX.V,
)

…read more

From:: The Gold Report

Precious Metals Streaming Firm Seals Deal with New Mine Owner

Source: Streetwise Reports 05/19/2018

Andrew Kaip, an analyst with BMO Capital Markets, reviewed the arrangement between the two entities.

In a May 13, 2018 research note, analyst Andrew Kaip with BMO Capital Markets indicated Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) entered into a metals purchase agreement with First Majestic Silver Corp.’ (FR:TSX; AG:NYSE; FMV:FSE) regarding the San Dimas mine following the close of First Majestic’s acquisition of Primero.

According to the deal terms, Kaip reported, Wheaton “will receive 25% of gold production plus an amount of gold equal to 25% of silver production based on a fixed exchange ratio. It will make ongoing payments of the lesser of $600 per ounce (1% inflationary adjustment) and the market price.” Also, it will get 20.9 million First Majestic shares valued at $151 million. Kaip wrote, “We forecast an average of 34 thousand ounces of gold equivalent (34 Koz Au eq) over the next three years versus an average of 75 Koz Au eq over the previous three years.”

BMO viewed the deal as “slightly dilutive at 6%,” which was expected, Kaip noted. However, “given Wheaton’s carrying value of ~$133M at the end of Q1/18, the company is expected to record a gain on the transaction.”

As for First Majestic as a partner, it’s a solid one, wrote Kaip, one with a good track record of operating in Mexico and a strong balance sheet to invest in exploration and development and “to reinvigorate San Dimas.”

Further, the closing of the transaction should allow for the overhang on Primero to dissipate, “thereby setting the stage for investors to recalibrate expectations on San Dimas,” said Kaip.

In other news, Wheaton’s Q1/18 was as expected. Looking forward, the company anticipates deliveries of 355 thousand ounces of gold and 22.5 million ounces of silver this year. Additionally, Wheaton now has a court date, September 2019, for its pending tax dispute with the Canadian Revenue Agency.

Based on Wheaton’s Q1/18 results and its agreement with First Majestic, BMO raised its net asset value per share on the San Dimas stream to $12.35 from $12.09. On Wheaton, BMO reiterated its Outperform rating and US$28 per share target price. Wheaton’s stock is currently trading at around US$21.66 per share.

Read what other experts are saying about:

Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Wheaton Precious Metals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

Disclosures from BMO Capital Markets, Wheaton Precious Metals, May 13, 2018

Analyst’s Certification: I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures:

Disclosure 2: BMO Capital Markets has provided investment banking …read more

From:: The Gold Report

Looking for a Turn in Gold

chart

Source: Rudi Fronk and Jim Anthony for Streetwise Reports 05/18/2018

Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, reflect on market factors that are driving current fluctuations in the gold price.

For nearly four months now, gold has been pressured lower by a rising dollar; the inverse correlation has been almost exact. Gold has dropped 5.2% from its January 25, 2018 close of $1,362 to its May 16 close of $1,291.50. Meanwhile, the US dollar index has risen 5.4% from this year’s low close of 88.50 on February 15, 2018, to its close on May 16 at 93.26. In the past few days, shorts have jumped in to press their luck, judging from the increase in CME open interest while the price is falling.

There are growing signs that the correction in gold is over. We will look at the COTs after tomorrow’s close, when we expect the latest data will show a big drop in the net speculative long position typical of a bottom. But there are other indicators perhaps even more relevant that are visible now.

First, gold typically trades with commodities. This week, Brent crude hit another 52-week high while copper, palladium and silver all moved higher. Below, a daily chart of the Bloomberg Commodity Index ($BCOM, the black line) shows that it has been rising steadily since early April, breaking through its 50-day (50dma) and 20-day moving averages, while gold has been falling. This is an unusual divergence as the chart demonstrates: Upticks in $BCOM typically track with gold. It’s interesting also to note that commodities are rising despite a stronger dollar. We think $BCOM is signaling inflation and these divergence will not last.

The gold price has fallen to the point where the RSI is close to oversold territory. The CCI (Commodity Channel Index), a good coincident indicator, is signaling that a bottom may be at hand.

chart

Gold stocks typically lead gold on the way up and on the way down; they therefore tend to bottom first. One way to track this indicator is the ratio of GDX, the senior gold stock ETF, to GLD, the gold ETF. The GDX/GLD ratio has been rising since late March, outperforming gold itself and breaking above its 50dma. Gold has made several new lows since May 1, 2018, but GDX, so far, has not, another useful divergence.

chart

Lance Lewis of the Daily Market Summary has commented on another parameter that points to a turn in the gold price…gold’s Daily Sentiment Indicator (DSI). The DSI is a poll of futures traders who are usually in tune with the market. When they are all on one side of the boat, as they have been recently, a turn is likely coming soon, and they are the first to trade it. Therefore, the DSI typically turns before the price does.

The DSI hit 10% on Tuesday of this week, which is lower than the DSI at the December low and matches the low back in July of last year. Wednesday, the DSI rose 3 points to 13% despite gold making a new low close for the correction, a divergence that has marked lows in the past. The HGNSI (Hulbert’s survey of gold timers) also imploded 28.25 points to -2.17%, a new low for the move.

As Lewis points out, “There have been exactly three times since late 2016’s cyclical bear market that the HGNSI was negative on the same day that the DSI was below 15%. . .Wednesday of this week, July 10, 2017, and December 11, 2017. Both of the 2017 dates marked GLD’s low closes for those corrections.”

Finally, as we noted at the beginning, the dollar has been the key factor driving the gold price. The dollar index has been rising but mostly against the euro, which accounts for 60% of the index. Meanwhile, as the index rises, its RSI has hit overbought levels usually associated with a turn, and the RSI so far has not made a new high this week along with the dollar. We think the dollar run higher may be nearing its end.

chart

This article is the collaboration of Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, and reflects the thinking that has helped make them successful gold investors. Rudi is the current Chairman and CEO of Seabridge and Jim is one of its largest shareholders. Disclaimer: The authors are not registered or accredited as investment advisors. Information contained herein has been obtained from sources believed reliable but is not necessarily complete and accuracy is not guaranteed. Any securities mentioned on this site are not to be construed as investment or trading recommendations specifically for you. You must consult your own advisor for investment or trading advice. This article is for informational purposes only.

Want to read more Gold Report articles like this? Sign up at www.streetwisereports.com/get-news for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Statements and opinions expressed are the opinions of Rudi Fronk and Jim Anthony and not of Streetwise Reports or its officers. The authors are wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the content preparation. The authors were not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the authors to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
2) Rudi Fronk and Jim …read more

From:: The Gold Report

Viva Gold Steals Gold Project

Source: Bob Moriarty for Streetwise Reports 05/18/2018

Bob Moriarty of 321 Gold explains why he believes a gold explorer got a great deal on a Nevada project.

That may sound a little cruel of me but when a company plucks a company out of bankruptcy court with a 424,000 ounce gold resource for a nickel an ounce, what the hell am I supposed to call it? But it gets worse.

Midway Gold had gold projects in Nevada and was going into production when a whole bunch of things went south at the same time. The company went into bankruptcy in June of 2015, just six months before a major low in the price of gold. All their projects got dumped onto a judge’s desk at a time you couldn’t pay people to take gold properties in Nevada off your hands.

Viva Gold Corp. (VAU:TSX.V) walks into the courtroom and buys what they now call the Tonopah Gold project out of hock for $25,000. It came with an M&I resource within the pit of 424,000 ounces after 641 drill holes and 87,700 meters of drilling. It also came with the biggest ball and chain around its neck in Nevada history.

So they stole the project for $.05 per ounce of gold. But getting the project and the attached ball and chain out of the courthouse required one of the 200,000 ton dump trucks with the tires as big as ten elephants standing on top of each other in the form of a 7% NSR. That’s why the judge couldn’t give the project away.

In all of recorded mining history there isn’t a company mining hard rock that could break even with a 7% NSR. It’s what’s known as a “Deal Breaker.” Or better put, “Ball Buster.”

This is where it gets really funny. The Viva management group bought a pig in a poke and they knew it. But they also knew that if they could get the owners of the NSR to get reasonable, they had an excellent chance of having the deal of the year. So they go to the guys holding the NSR and said, “Look guys, JC himself couldn’t mine this at a profit with a 7% NSR so either get reasonable or consider turning it into the world’s biggest tumble weed farm.”

The NSR holders thought about it. Tumbleweed futures are at all time low prices so they said, “OK.” And they gave Viva a 2% NSR on the Tonopah Gold project. In Tex/Mex that’s called, “El Goodo Dealo.” But it gets even worse.

Viva Gold is a new company and management hasn’t yet taken the opportunity to totally blow out the share structure. So while they bought ounces of gold for $.05, the company has a market cap of $4.6 million CAD or about $3.6 million USD so investors can buy ounces of gold in Nevada for $8.50 USD.

You may safely assume I like the story a lot. Or better said, I love the story. Management saw an opportunity to pick up a nice project for peanut shells. They turned a lump of coal into a blue diamond by getting the NSR dropped out of orbit and have a really tight share structure. What’s not to like?

Actually the visibility. Visibility is a real problem.

No one has ever heard of the story and you have to make an appointment six months in advance to give the shares away. What they really need to do is get a US OTCBB symbol so Americans can buy the shares. They also need to find a newsletter writer with some credibility to write up the story so people can understand it.

They have an asset in the Tonopah Gold Project with a quality resource that can be advanced easily. It’s a typical Walker Lane gold project. For those interested it is a near surface low-sulfidation epithermal gold system with near vertical quartz-adularia gold veins.

The project is very similar to that of Hasbrouck owned by West Kirkland located a few miles south of the Tonopah project of Viva Gold. West Kirkland has a market cap of about $18 million but about 30% more ounces.

Viva Gold recently completed a private placement to raise just over $1 million. There are 4.2 million warrants at $.35 that would raise another $1.45 million so the company is well cashed up for now.

Viva just announced a 28-hole RC drill program has been approved by the BLM. The company wants to confirm extensions to the known bonanza grade gold bearing veins. It’s a 4200-meter program with both in-fill and step-out drilling. The company is aiming to expand the known resource to above 1 million ounces of gold. Viva will complete a PEA in H2 of 2018.

Saying that Viva Gold is cheap is pretty easy. Management has done a wonderful job of picking up a quality asset just in time to ride the gold wave higher. They have cash, management, and are located in the most mining friendly state in the US.

I bought shares in the open market, I was too late to the party to get in on the placement. Viva Gold is an advertiser so naturally I am biased. Do your own due diligence.

Viva is an easy triple even without the price of gold going higher. With higher gold Viva has 500% potential.

Viva Gold Corp
VAU-V $0.32 (May 18, 2018)
14.5 million shares
Viva Gold website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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From:: The Gold Report

Junior Explorer Advances Mexican Mine Project

Source: Maurice Jackson for Streetwise Reports 05/18/2018

The president of this junior miner discusses the promise of an orogenic heap-leach project on its property in Sonora with Maurice Jackson of Proven and Probable.

Maurice Jackson: We are discussing a company that has established itself as a premier project generator, Millrock Resources Inc. (MRO:TSX.V). Joining us today is Gregory Beischer, the president, CEO and director of Millrock. Mr. Beischer, welcome.

In our last interview, we discussed Millrock Resources’ La Navidad Gold Project. You were addressing the initial drill results there. Today, Millrock has informed the market that a second round of drilling has commenced at the La Navidad Gold Project. Gregory, before we get into the press release, where is the La Navidad Gold Project located?

Gregory Beischer: It’s in Sonora State. That’s northwestern portion of Mexico, just south of the state of Arizona and north of the city of Hermosillo. It’s just a really great mining state, mining community. People there are very welcoming. They understand and make a lot of money from mining. We feel very welcome there.

Maurice Jackson: What are some of the strategic advantages of being there?

Gregory Beischer: Well, there’s a lot of support industry surrounding the active mines and the numerous exploration companies. The people there know what they’re doing. There’s good technical talent. Just overall, a vibrant mining community.

Maurice Jackson: Taking us now onto the La Navidad Gold Project, describe the metallurgy for us.

Gregory Beischer: What we’re looking for in this area is what geologists call an orogenic gold deposit. These are large volume, typically low-grade deposits where a large volume of rock with a little bit of gold can be processed at very low cost methods by run-of-mine, heap-leach processing. It costs very little to process the ore. That allows mining companies to produce gold from low grade but large volumes. That’s what we seek. We’ve got some pretty darn good signs of such a deposit on the La Navidad Project. As we last discussed, Millrock had announced results from a drilling program that we conducted last November and December. We talked about those in March. Since February, our team has been running flat out. We have done a great deal of soil sampling, digging, trenches with excavators and bulldozers so that we can expose the bedrock, its surface and collect rock samples.

We’ve done a variety of geophysical surveys to help us image what’s beneath the surface. We were focusing, primarily, on the Cobre and Crossover prospect acres, which are to the northwest of the original drilling that we have done last December at the Anchor prospect. The Cobre and Crossover are quite large, with strong gold and soil anomaly. There’s size potential indicated. We found altered rocks over widely distributed area. The trench results were pretty good. We’ve got the grades that we’re seeking for an orogenic heap-leach-type gold project.

We’re starting by reentering one of the holes—in fact, hole number 10—from the original program to deepen it. We had cut the hole off because it was becoming late in the season, almost Christmas and the budget was tight. We’d cut the hole off at 250 meters, but in fact, we knew the rock were still quite altered and sure enough, there was gold in it right at the bottom of the hole. That’s how we’ll start this program, deepen hole 10 at the Anchor prospect and then it’s on to Cobre and Crossover to test some of the great targets that are being developed there since the start of February.

Maurice Jackson: Switching gears, the Sprott Natural Resource Symposium is fast approaching, Millrock Resources, once again, has been hand selected by Rick Rule to be an attendee. What an accomplishment.

Gregory Beischer: Thanks. It’s great to be going back to that conference in Vancouver. It feels a little surprising that almost a whole year has gone by since you and I met there. It really is an honor. The 50 or 60 companies that are invited to present are hand selected by Sprott Global Resources and the team of brokers and analysts that work there. We’re very pleased to be counted amongst that upper tier of early stage explorers and developers.

Maurice Jackson: As a reminder, you may get tickets for the Sprott Natural Resource Symposium, which will be conducted in Vancouver July 17-20. Gregory, we’ve discussed the La Navidad Gold Project. Talk to us about other projects in the Millrock Resources portfolio.

Gregory Beischer: We sure have a lot going on, Maurice. As you know, we were quite aggressive over the last few years buying up projects, taking claims and developing new projects. That’s all coming forward now. Things are clearly on the uptick. The major midtier companies must have bigger budgets because there’s lots of them looking at our projects and talking to us about making exploration agreements. I’m pretty sure we’re going to have more of those soon, so we’ll become even more active. We have also been very active on the El Picacho project, a very similar style gold project in Sonora xtate, also being funded by Centerra Gold Inc. (CG:TSX; CADGF:OTCPK) as they earn their way into an interest in that project. Our geologic teams have been coming up with some high-quality targets at that project as well. I would think that we’d be drilling that by this fall.

In the meantime, our partner in Alaska, PolarX Resources Ltd. (PXX:ASX), a junior Australian company, has raised cash to advance exploration. We’re mounting quite a good program there in June, at least a couple of million dollars of drilling to further expand at the Alaska Range project on the Zackly high-grade copper-gold deposit that we delineated on behalf of PolarX last year. We hope to expand that deposit significantly this year. We started drilling as of …read more

From:: The Gold Report

Gold Miner Firms Up Financial Agreements

Source: Streetwise Reports 05/17/2018

The news flow for this company includes initiation of a gold hedge program and filing paperwork with the TSX Venture Exchange for a new royalty agreement.

To offset the risks involved with fluctuating gold prices, Victoria Gold Corp. (VIT:TSX.V) recently announced it has entered into a “gold price protection program” for its Eagle Gold Project in Canada’s Yukon Territory.

The hedging program, entered into with Macquarie Bank Ltd. includes the following provisions:

  • 100,000 ounces of put options were purchased with a strike price of CA$1,500/oz,
  • 100,000 ounces of call options were sold with a strike price of CA$1,936/oz, and
  • the 100,000 ounces include 40,000 oz in 2020 and 60,000 oz in 2021.

The company also described the program as “unsecured and [a] zero-cost collar” in its May 14 press release.

In other recent news, Victoria Gold announced it had filed documentation with the TSX.V exchange with regard to its royalty agreement with Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) and a March 8 private placement. Under the terms of the royalty agreement, Victoria Gold “shall sell to Osisko a 5 percent net smelter return (NSR) royalty for proceeds of $98 million.” With regard to the private placement, 250 million shares were purchased at $0.50 per share, as were 25 million share purchase warrants with an exercise price of $0.625/share over five years.

Read what other experts are saying about:

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Victoria Gold Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: VIT:TSX.V,
)

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From:: The Gold Report

Gold Producer Clears Final Acquisition Hurdle

Source: Streetwise Reports 05/17/2018

With Mexican government approval in hand, this gold producer expects to close the acquisition within a week.

The Vancouver-based gold producer Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX) recently announced that the Mexican Comisión Federal de Competencia Económica (COFECE) approved its acquisition of Brio Gold Inc.

This approval was the final one necessary, and Leagold expects to close the acquisition by May 24, 2018.

In April 2018, Brio shareholders approved the acquisition by Leagold.

Brio has three functioning gold mines in Brazil. It has one mine that is on care and maintenance, but expects to re-activate it at the end of 2018.

The company reported that Brio anticipates gold production for 2018 in the range of 205,000 to 235,000 ounces. That amount could increase to 400,000 ounces for 2019.

Leagold also fully owns the Los Filos mine in Mexico, which it purchased from Goldcorp in early 2017.

Read what other experts are saying about:

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new interviews and articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Leagold Mining Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: LMC:TSX.V; LMCNF:OTCQX,
)

…read more

From:: The Gold Report