Short Update on Novo

Source: Bob Moriarty for Streetwise Reports 07/20/2018

Bob Moriarty of 321 Gold discusses the reasons behind the slow pace of assay results.

The chat boards on Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX) have been a hive of activity pondering the issue of why only five assays have been released in the past year. Is Quinton Hennigh involved in some devious conspiracy to hold down the price of his own shares? Is Novo maneuvering to take over Artemis or Kirkland Lake? Or is Quinton simply incompetent?

None of the above actually comes even close to the truth.

The conglomerate gold story based around Karratha is similar to one of those good news/bad news stories. Due to the size of the gold, it is virtually impossible to measure with accuracy. I have said before and I will repeat it again. You can’t measure this gold, you can only mine it. I don’t give a damn what anyone calls it, a bulk sample is mining, albeit on a tiny scale.

Everyone keeps trying to run the exploration program just as if you are exploring a many million-ounce gold deposit. Which it most certainly is. But thinking of it as a giant hard rock property is causing all of the companies involved, not just Novo Resources, to see the trees and miss the forest.

The conglomerate gold story is a placer story. And with placer gold, you have exactly the same good news/bad news story. Depending on the size and grade of the gold it varies from measuring with a 35% plus or minus guess at the grade to simply wetting your finger and holding it in the breeze to see which way the breeze is blowing. Or better put, giving a SWAG (Stupid Wild-Assed Guess). It’s between hard to measure to impossible to measure.

However the good news is really good news. Placer gold is really easy to process. The bigger the gold, the easier and cheaper it is to process.

After figuring out that a large core drill rig could drill nice wide pretty holes, Novo also figured out that you couldn’t blow the gold, with an specific gravity of about 19, back up the hole so you could measure it scientifically.

If you can, just imagine the drill supervisor looking down a wonderful wide hole three meters deep at a pile of gold nuggets at the bottom and saying, “Yup. You got a lotta gold here.”

So Novo went the mining route bulk sample process as I suggested. I think that started back in November when they figured out the large diameter drill was a write off. And the company went to one of the best and most qualified assay labs in Australia, SGS. SGS was going to design and build a small plant just for processing the bulk samples.

Since December SGS has managed to process and release two samples. In seven months.

That’s absurd.

There are two issues that caused this utter failure. One is that unbeknownst to most people, Australia has a severe labor problem. With the iron and coal mines working 24/7 it’s damned hard to find and keep qualified labor.

The other issue is that everyone, including SGS, is making the conglomerate gold issue too complicated. It’s placer gold that just happens to be in hard rock. Crush it and run it across a sluice box. But SGS makes a lot more money if they come up with a complicated solution.

They don’t need a complicated solution, they need a simple solution. Simple solutions work. Complicated solutions fail.

I talked to Quinton a little while back and asked just what it was that held things up; after all, all they are doing is building a mini plant. He said there were issues with the hardness of the rock and they seemed to have a crusher that didn’t work.

Rocks tend to be hard. That is what makes them rock. If they were soft, they would be dirt. If you try running a certain species of rock through a crusher and the crusher has a problem with it, get a bigger hammer. No problem.

I had a placer project in Mexico and used a screen deck and a short sluice box to recover most of the gold from what was fairly fine gold. Certainly not coarse. It cost about $50,000 all in, design, fabrication, customs, transportation and set up. And it worked even though the guys working for me specialized in breaking equipment. The life span of a truck was about six months.

I had another placer gold project in Tanzania with ultra fine, fly spec gold. We used $3000 all in, hand fed sluice boxes larger but similar to this. A pan of dirt to be sampled might have 400 colors. It was really hard to pan, the gold was so small. But those tiny almost home-made recovery plants worked.

When I was in Karratha a year ago, we drove out to Comet Well and Purdy’s and passed a shallow gravel pit on the way to the projects. Someone working on a road crew a few months before saw some gold in the gravel on a job they were on and asked around about where the gravel came from. He and a mate bought a metal detector and tested the gravel pit. It wasn’t big, maybe 100 meters across and maybe 1-2 meters in depth. They took home hundreds of ounces of gold from a weekend. I’m certain they declared all the gold and paid taxes on it.

There is a boatload of gold in Karratha. It could easily be mined at great profit if people would stop making it so damned complicated. If metal detectors work, buy some and rip the ground with a D-11 dozer with a ripper. Run the crap across a sluice box and recover 98% of the gold. Easy Peasy.

SGS has stopped the conglomerate gold rush in its tracks just by keeping their head where the …read more

From:: The Gold Report

The Silver and Platinum Express

Stillwater West

Source: Bob Moriarty for Streetwise Reports 07/19/2018

Bob Moriarty of 321 Gold discusses the relative prices of gold, silver and platinum and highlights two exploration companies, one with platinum and one with silver.

I’ve written about both Group Ten Metals (PGE-V) and Metallic Minerals (MMG-V) before. I’m going to group the two companies in one piece today for a number of reasons. The companies share management. One, Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTC), is a platinum/palladium company. The other, Metallic Minerals Corp. (MMG:TSX.V), is oriented toward silver in the Keno Hill silver district.

Inflation is directly responsible for the price increase of everything. That doesn’t mean that all commodities or financial instruments go up in unison, they don’t. But soybeans or silver are not inherently more valuable today than they were a hundred years ago. What has changed is the value of the dollar, not the commodity. Markets search constantly for the correct price. That is why prices go up and prices go down. The market never quite knows what is the right price for anything so it searches until buyers and sellers are satisfied with price and make a transaction.

Human behavior causes distortions in price between commodities. It’s like dancing. Sometimes you lead. Sometimes you follow. An astute investor can profit when the price of one commodity in comparison to another deviates from the mean. We can be assured that eventually price will regress to the mean. Understanding how deviation from the mean and the ultimate regression to the mean allows savvy punters to speculate on the price difference between two commodities without the need to place a bet on the direction of price for either. I explain all of this at length in Nobody Knows Anything.

Over the past one hundred years the ratio of silver to gold has varied from about 17-1 to just over 100-1. That means it took seventeen ounces of silver to equal one ounce of gold at the extreme. The average ratio has been about 53-1. Therefore without guessing what price will do, we know from factual history that when silver is below 53-1 gold is relatively cheap and above 53-1 silver is relatively cheap. As I write the ratio is about 80-1 which means silver is a lot cheaper than gold. So either silver goes up, or gold goes down or both at the same time and eventually we will regress to the mean of history.

Likewise, for 95% of the time since the discovery of platinum in 1748 the metal has had a premium to the price of gold due to it being a lot more rare than gold. Lately the prices of the two commodities have inverted and platinum sells at about a $420 discount to gold. That’s a record by the way.

Buying or selling anything when it is an extreme of emotion is the best way to profit. We can only guess from one day to the next what the correct price is for anything. But a study of the history of prices will immediately reflect when you are somewhere never gone before. In short at least compared to gold, both platinum and silver are cheap. If the level of debt in the world makes you think that maybe spending is not a surefire way to profit and debt is the same as slavery, it might be nice to own something that you can hold in your hand that has always had some value. Gold, silver and platinum make great insurance policies in times of financial chaos. Right now both silver and platinum are relatively better value than gold and those companies who are going to produce them should increase in value more than those of gold.

Group Ten Metals has put together a large land position in the Stillwater Complex in Montana adjacent to the 80 million ounce Pt/Pd resource belonging to the Sibanye-Stillwater Mine. The exploration on the Group Ten package is brownfields with management having a solid background and experience with PGMs and Ni projects including Stillwater, Wellgreen and Goldfields.

The 54 square km land package the company refers to as the Stillwater West project shows an 18 km long PGM soil anomaly also containing cobalt and gold. Just like the Stillwater Mine next door.

Within the Stillwater West property are found 12 major geophysical anomalies from 3 to 6 km in length to overlie the soil anomalies. Group Ten has drill data from 215 holes with over 28,000 meters of drilling. They have 11,000 meters of drill core. The Phase 1 exploration program in progress consists of relogging and assaying the 11,000 meters of core and putting together all the data into a geological model. At the conclusion the Phase 2 portion will drill test the highest priority targets. A drill permit has been applied for and the company believes drilling will commence later this summer.

I should remind readers that 78% of platinum production comes from South Africa. Certain political parties in the country are calling for an open season on white farmers. When South Africa goes the way of Zimbabwe it will leave Russia as primary producer of the PGMs. There is, of course, a coup d’état in progress in the United States with various powerful three-letter agencies determined to overthrow the democratically elected president and to go to war with Russia. I happen to believe that is the worst of bad ideas but who am I?

Should South Africa go the auto-stupid route and the coup succeed, it might be nice to have another alternative source for PGMs.

Both companies are headed by Greg Johnson; he has used the same model as he used with Novagold going back to 2000 in Alaska. He targeted a mineral and then put together a package of land properties in the same region. He has done …read more

From:: The Gold Report

Gold Miner Signs Letter to Fund Copperstone Gold Development and Production

Source: Streetwise Reports 07/19/2018

Letter of Intent signed for US$27.6 million.

Kerr Mines Inc. (KER:TSX; KERMF:OTC; 7AZ1:FRA) recently announced the signing of a Letter of Intent with Pandion Mine Finance for US$27.6 million to fund the development and production of gold at the Copperstone Mine by Q4/19.

The financing is subject to the execution of a Prepaid Forward Gold Agreement. Additionally, there is an anticipated initial tranche of US$19.6 million targeted for August 2018 and a second tranche of US$8 million in July 2019. It has been anticipated that Pandion will sign a Definitive Agreement in August 2018; the proceeds from it will be mostly used to fund the Copperstone Mine into production by Q4/19.

“After careful review of the financing options available, we are pleased to select Pandion Mine Finance as our funding partner. We believe the terms of this financing are competitive and create value for our shareholders. It is another key milestone that our team has achieved in just over a year since taking the helm of the Company,” explained Claudio Ciavarella, the CEO of Kerr Mines.

The 2018 drilling program will be started by the company to convert a significant proportion of Measured, Indicated and Inferred Resource into Proven and Probable to extend the mine life and cash flows.

Some key highlights of the agreement are that Kerr will deliver to Pandion a total of approximately 95,000 ounces over a 40 month period. However, no gold shall be deliverable by the company during the first 22 months. Another is that all other production from the Copperstone will be sold at the market price. In addition, Pandion would have the option to elect at any time to receive common shares of Kerr Mines at a price of $0.40 per share, in lieu of delivery of up to 10,000 ounces of gold, subject to the prior approval of the TSX.

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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: Kerr Mines. 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 Kerr Mines, a company mentioned in this article.

( Companies Mentioned: KER:TSX; KERMF:OTC; 7AZ1:FRA,
)

…read more

From:: The Gold Report

New Discovery Returns Gold Grades Up to 336 g/t

Source: Streetwise Reports 07/19/2018

The results highlight a mineralized trend in a new area near the existing mine site.

Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTC.MKTS) announced in a July 19 press release initial sampling and exploration results from an ongoing program assessing the potential of newly discovered high-grade veins at the Machichie site, within the Cuiú Cuiú Project, Pará State, northern Brazil.

“Initial results have highlighted a newly recognized mineralized trend with no previous drilling that is located only 500 meters north of the Cabral’s MG deposit. MG is one of four deposits with defined resources at Cuiú Cuiú,” noted the company.

The newly discovered Machichie mineralized structures extend at least 300 meters and lie along an easterly trend, roughly parallel to the MG deposit, according to the company.

“The discovery is highlighted by a line of recently sunk artisanal shafts that are exploiting high-grade gold-bearing quartz veins hosted in soft, shallow weathered bedrock,” explained the company in the release. “The structure is defined as a subtle magnetic low that corresponds to a coincident gold-in-soil geochemical anomaly (100-315ppb Au).”

“A composite grab sample of mineralized rock returned 336 g/t Au from a 1-meter-wide quartz-pyrite vein in an artisanal shaft at Machichie,” note the company. “Channel sample results include 54.6 g/t Au over 0.80 meters, 13.2 g/t Au over 0.75 meters, 13.8 g/t Au over 1.5 meters and 5.8 g/t Au over 1.75 meters.”

The Cuiú Cuiú Project includes the largest of the historical placer gold camps in the Tapajós region of northern Brazil. The project has yielded an estimated 2 Moz of gold from the overall 20-30 Moz gold produced during the Tapajós gold rush from the late-1970s though the mid-1990s.

“Placer workings cover over 850 hectares on the property but are largely exhausted,” according to the news release. “The few remaining artisanal workers now process gold from palaeo-valley placer deposits and in places exploit high-grade gold mineralization from quartz veins in saprolite (shallow highly weathered bedrock).”

Exploration from 2006 through 2012 identified multiple bedrock sources for numerous placer workings, largely discovered through following up pronounced surface gold-in-soil geochemical anomalies. Many potential source areas remain untested, and recent work by artisanal workers is uncovering additional new targets, noted the company.

Earlier this year, Cabral reported an updated a Mineral Resource Estimate totaling 5.9 million tons grading 0.9 g/t Au (Indicated) and 19.5 million tons grading 1.2 g/t Au (Inferred), or 0.2 Moz and 0.8 Moz of gold, respectively. That estimate was based on four deposits drilled prior to the cessation of drilling in 2012.

“The Company’s current program is designed to improve understanding and expand existing prospects, evaluate newly identified discoveries, prioritize drill targets, and to build upon the existing resource inventory. One focus is on the definition of gold targets that are strategically close to existing resources. The Machichie area is one such target, as it lies within 500 meters of the MG deposit,” the company noted.

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Disclosure:
1) John McPhaul 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: Cabral Gold. 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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cabral Gold, a company mentioned in this article.

( Companies Mentioned: CBR:TSX.V; CBGZF:OTC.MKTS,
)

…read more

From:: The Gold Report

Upside Could Lie in Explorer’s Secondary Vein Targets on Nevada Property

Source: Streetwise Reports 07/19/2018

Moving into the next exploration phase means a shift in this company’s areas of focus.

American Pacific Mining Corp. (USGD:CSE;USGDF:OTCPK) intends to expand its Tuscarora gold project in Elko, Nevada, beyond the South Navajo vein to an additional 13 or so previously mined targets identified during historical work. “These vein sets and stockworks will be a main focus in our exploration efforts moving forward,” said American Pacific Mining President Eric Saderholm. “This is the upside of the Tuscarora property,” which is located northeast of Nevada’s Carlin trend, southwest of the Jerritt Canyon deposit and east-northeast of the Midas deposit.

Listed by geographical location, from west to east, the targets to be further explored include: Battle Hill, Modoc Hill, Silica, Kings Pinto, Navajo Hill, Navajo North and South, Revenue, Schoolhouse, Independence, DuFreese, Grand Prize and East Pediment. “All of these veins, or vein clusters, project into the pediment with fewer than 10 drill holes to test them aside from the South Navajo vein,” Saderholm said.

In late June, American Pacific released the initial assays from the first drilling phase at Tuscarora. It should announce results for the remaining 11, Phase 1 holes soon.

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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: American Pacific Mining. 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 American Pacific Mining, a company mentioned in this article.

( Companies Mentioned: USGD:CSE;USGDF:OTCPK,
)

…read more

From:: The Gold Report

Base Metals Miner Pursues Takeover of Midtier in Space

Source: Streetwise Reports 07/18/2018

An Eight Capital report described the acquisition proposal and what it means for the shareholders of the two involved entities.

In a July 17, 2018, research note, Eight Capital analyst Ralph Profiti reported that Lundin Mining Corp. (LUN:TSX) plans to initiate a formal bid around July 27, 2018, to acquire Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.MKT) for CA$1,436 million. This will be Lundin’s fifth purchase proposal, as Nevsun rejected the previous four, all submitted earlier this year.

Profiti explained that under the most recently proposed arrangement, Nevsun shareholders would receive CA$4.75 per share in cash from Lundin, an amount that represents a 12.8% premium to its closing price on July 16, 2018. Euro Sun Mining, present in previous proposals, is not involved this time.

For the prospective acquirer, “we believe this transaction still makes sense with Nevsun’s European assets providing a strong fit for Lundin and now includes a risk-adjusted bid on the Bisha asset,” Profiti noted. Specifically, Nevsun’s Timok project fits Lundin’s criteria in that it is “a potentially value-accretive, copper-focused development project in a favorable jurisdiction with optionality.”

Lundin should end Q3/18 with $1.5 billion in cash and $350 million in available credit, for total liquidity of $1.85 billion, Eight Capital estimates, using spot prices. If the takeover were to go through, Lundin’s liquidity afterward would be about $750 million.

With respect to the takeover target, Nevsun, it would not recoup its full value through the current proposal, Profiti indicated: “We believe that Lundin’s CA$4.75 per share offer is inadequate.” Eight Capital derives a higher value for Nevsun, of CA$5.50–6.50 per share. The investment firm, however, favorably views the all-cash structure because it lowers transaction risk to Nevsun shareholders.

At CA$4.75 per share, the deal would be 6.3% accretive to Lundin’s net asset value per share, Profiti explained. At CA$5.50, it would be 3.7% accretive.

On Lundin, whose stock is trading today at around CA$7.51 per share, Eight Capital has a Buy rating and a CA$12.50 per share target price.

On Nevsun, Eight Capital also has a Buy rating but a CA$6 per share price target. The current share price is about CA$4.74.

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) 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: None. 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 Nevsun Resources, a company mentioned in this article.

Disclosures from Eight Capital, Lundin Mining and Nevsun Resources, First Impressions, July 17, 2018

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security …read more

From:: The Gold Report

The Unstoppable Force in British Columbia

King Solomon Gold Zone

Source: Andrew O’Donnell for Streetwise Reports 07/18/2018

Andrew O’Donnell of Supercharged Stocks discusses a gold exploration company that should start receiving summer drill results shortly.

Juggernaut Exploration Ltd.’s (JUGR:TSX.V) stock has been getting a lot of attention from many industry heavyweights, newsletter writers and senior mining analysts who are considered experts in the mining sector. Quiet enthusiasm has been growing and this is being reflected in the price and volume of the stock traded. Subscribers who got in at around $0.20, when I started covering Juggernaut (February 28, 2018) are asking if it is time to add to their positions as drilling is about to commence. Now, I cannot answer that for each individual, but what I can say is this: I am not in this just to double my money. I am in this stock for a major discovery and right now Juggernaut is in a “data accumulation phase”: drilling and amassing information to further its conclusion that it is sitting on a world-class discovery. My fear is missing out on the potential upside when it starts releasing the data shortly.

Every other day there are new emails, inquiries and phone calls asking about this company from strangers, new subscribers and the new investors into this market. Their first question is always “What is going on?!” Followed quickly by the question: “Am I too late for Juggernaut?” The answer is no. We are standing in ahead of the curve on this and even at $0.60 you are well positioned. This is a stock for holding and waiting for the data. Sure, you could have made incredible short-term gains on this stock just because more and more people are coming into the opportunity, but the bigger question is why? Why would you risk the potential to capitalize on the opportunity that many feel is unfolding before us? The indicators are there that this could be the deposit that sparks a sector boom. I am in this one for the big gain, a ten-bagger (10 times return on investment). That speaks to my level of risk tolerance, as well as my understanding of the data. A lot of time, effort, research and data have been put into this region by many smart people. This sector, this region in morthwest British Columbia, the syndicates and this management in particular are going to deliver results.

I had mentioned that this was a hold stock for me, but that does not mean there is not a market to trade. In fact, it is quite the opposite. The volume, market and retail growth coupled with the two consecutive oversubscribed financings totaling $4,253,000 has now fully funded the highly anticipated and extensive inaugural drilling campaigns for both of Juggernaut’s 100%-controlled Empire and Midas properties. Juggernaut continues to receive strong support from senior miners, institutions and strategic accredited investors alike, making this a versatile stock for both short-term and long-term players. There are wonderful technical stock analysts out there who can give you the edge in trading this stock, but for me, I am a believer and I look forward to the release of data.

The latest news from Juggernaut has been exciting and the story is getting out; the right people are looking at the story. Recent financings have allowed the company to get strategic partners involved. Juggernaut’s recent financing was wildly successful (in an otherwise barren market) and included key industry players to get this story in front of the most sophisticated investors and institutions. With that in mind, Juggernaut is an incredible opportunity to invest risk capital, or better yet take it to your broker—and show them what is happening with this company.

So what has happened?

In the past few weeks, small victories built upon each other. This began with Jay Taylor, owner of Miningstocks.com and Taylor HardMoney Advisors. Jay is one of the most highly respected and stoic investors in this space. He said in his June 1, 2018, publication: “It is my view that Juggernaut is one of the most exciting high probability early exploration stories I have covered in this newsletter since its inception in 1981.”Coming from Jay Taylor, this is high praise indeed. Furthermore, Mr. Taylor finished off his statement about Juggernaut by concluding:

“Last but not least, the quality of management with its proven track record provides added confidence in the likelihood of success. All in all, this is a stock I felt compelled to own and to pass what I know along to you.”

Getting that type of endorsement from a man with his reputation certainly brought the right type of attention to the opportunity. Canada’s largest and most respected independent national brokerage firm, Haywood Securities, heeded the call and included Juggernaut in its highly respected publication “Haywood’s Junior Exploration Q2/18 Report.”

The news Juggernaut has created in this space is growing, but I want to reach out again and let people know about this opportunity. I want to inspire people to take action and enter into an undervalued sector that has massive historical data in a world-class region with global demand.

Let’s look at the fundamentals of this company and revisit my last analysis from late February 2018 when the stock was trading around $0.20.

The junior mining market is small. This is not a disparaging comment, but on the global financial scale, junior miners raise smaller amounts of funds to do the heavily lifting of finding, prepping and making projects feasible for producing companies. This historical curve is supported by evidence. Juggernaut could truly be only one drill hole away from a paradigm shift. As one P.Geo put it to me recently, “the opportunity in Juggernaut is geologically irrefutable, truly elephant targets in elephant country.” This is the type of opportunity we all are looking for to get in on, ahead of the curve. It could be any week that results start trickling in, or we start to hear …read more

From:: The Gold Report

E-Waste Mining Joint Venture Reports Significant Achievements

Source: Streetwise Reports 07/18/2018

The Canada-based companies report the doubling of the fabrication facility in British Columbia.

Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB) and its joint venture partner Enviroleach Technologies Inc. (ETI:CSE) reported a number of significant recent achievements in their shared operations in July 17 press releases.

Mineworx reported the doubling of their current 7,050 sq. ft. fabrication facility in Coquitlam, British Columbia, to almost 14,000 sq ft; the leasing of an additional 13,674 sq ft facility in Vancouver (Surrey), BC; the commencement of a 20 ton per day E-Waste concentration plant to be assembled at their new Vancouver (Surrey) facility with EnviroLeach; and the appointment of a human resources, health and safety Manager.

“These combined facilities will quadruple the capacity of Company’s E-Waste fabrication and production capabilities to almost 28,000 square feet,” said Greg Pendura, CEO. “This expansion now enables Mineworx to move quickly upon the site acceptance of the Memphis, Tennessee E-Waste processing plant to immediately expedite our business model in this dynamic sector.”

Meanwhile, EnviroLeach announced new upgrades and enhancements to its process has yielded positive results in a series of bulk tests.

The modifications and enhancements to the EnviroLeach process, which included the addition of a proprietary three-stage concentration process and minor formula modifications, have delivered significant improvements in performance and recoveries, said the company’s press release.

The benefits of these enhancements include improvements in the overall recoveries of precious and base metals to over 90%; the production of a refinery-grade, saleable concentrate; the reduction of formula/chemistry losses to in-leach contaminants; 50% improvement in process flow and feedstock throughput; advancements in the mechanical processes including grinding, pumping, filtration and agitation; improved leach kinetics and characteristics; increased process pulp density from 10% solids to 25%solids; extended reusability of the formula; improved gold electrowinning characteristics; improved base level economics; and reduced environmental footprint.

The company has hired Sarah Heath as the manager of human resources, health and safety to facilitate the expansion and transition into a fully operational organization.

“Sarah brings multiple years of experience in these functions and will assist with the progression of the Mineworx/EnviroLeach JV as it moves into commercial production,” said the Mineworx press release.

Mineworx has positioned itself for growth through partnerships with advanced mining and E-Waste opportunities utilizing its proprietary and patent pending extraction technologies, said the press release. “These innovations will increase and enhance business opportunities by deploying cost effective, environmentally friendly extractive metallurgy solutions.”

For its part, EnviroLeach said it has completed several lab to pilot scale and full-scale tests to confirm the results of its modifications on various low to mid-grade circuit boards with positive results overall recoveries of 91%.

“The results of the bulk testing indicate that the gold (Au) is almost evenly distributed between both the heavy (56%) and light fractions (44%) with all other metals predominantly reporting to the heavy (Concentrate) fraction,” said the press release.

Read what other experts are saying about:

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Disclosure:
1) John McPhaul 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: Mineworx Technologies. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with EnviroLeach Technologies. Please click here for more information.
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.
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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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mineworx Technologies and EnviroLeach Technologies, companies mentioned in this article.

( Companies Mentioned: MWX:TSX.V; MWXRF:OTCQB,
)

…read more

From:: The Gold Report

Full Stream Ahead with Small-Cap Royalty Company

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Source: Peter Epstein for Streetwise Reports 07/18/2018

Brett Heath, CEO of Metalla Royalty & Streaming, speaks with Peter Epstein of Epstein Research about the company’s rapid growth and its most recent acquisition.

The following interview of Brett Heath, CEO of Metalla Royalty & Streaming Ltd. (MTA:TSX.V; EXCFF:OTCQB) was conducted by phone and email over a one week period ended July 18th. Metalla is a small-cap precious metals royalty/streaming company. The investment thesis, in my opinion, is that someday it will be acquired by a larger player in the sector.

In the meantime, it trades at roughly one-third the valuation of peer industry giants. Brett and his accomplished team are growing the company rapidly via prudent transactions that diversify risk and appear to have highly attractive return profiles. Corporate presentation is available here.

I’ve written a few articles on Metalla Royalty & Streaming and I’m happy to report that management has delivered on its promises. It was up-listed to tier 1 on the TSX.V, instituted and has already increased a monthly cash dividend, made accretive deals and has several more in the works, including Valgold Resources. Metalla has secured several new team members and closed a blockbuster transaction with prominent mid-tier miner Coeur Mining.

Without further preamble, here’s my exclusive interview with President and CEO Brett Heath.

Brett, when we first met, you had a couple of early stage royalties and a C$10 million market cap. Now you have a growing portfolio of producing, development and exploration royalties/streams and a C$60 million market cap. How were you able to do this?

As far as mining investments go, it’s hard to beat the stability of precious metals royalties. Just look at companies like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) or Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX). They have significantly outperformed traditional mining companies and the underlying gold price over the last decade.

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That success created an opportunity that Metalla, just 1/200th the average market cap of those three, has been able to capitalize on. Our size allows us to look at hundreds of royalty and streaming deals that aren’t big enough to move the needle of larger companies.

Our third-party acquisition strategy has allowed us to pick up royalties on projects operated by multi-billion-dollar companies like Goldcorp, Pan American Silver, Tahoe Resources, Agnico Eagle, TOHO Zinc and Osisko Mining (not to be confused with Osisko Gold Royalties). These strong operators will drive big premiums for Metalla shareholders as we continue to add more royalties and streams to the portfolio.

How important is your team? You say that you benefit from smaller, more attractive transactions, but the Majors have deep pockets and access to top-notch financial advisors and mining experts.

Our team is critical. Every deal is different. Each requires specific expertise once you get down into the details. That’s why we have a strong, full-time team and we also retain consulting experts to help us solve unique problems in the deal process. This means we have access to the same caliber of legal, technical and financial (tax/accounting, etc.) people as our much larger peers, but without the bloated payroll.

Among our officers and directors we have decades of experience in all facets of the mining industry. We also have an expansive network to tap when we need a technical geologist, engineer or metallurgist to perform specific jurisdictional and mining due diligence.

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On our board is Frank Hanagarne, Sr. VP and COO Coeur Mining. Coeur Mining (NYSE:CDE) has an EV of C$2.3 billion and vast experience with operating mines in North Americas. As you can imagine, having the COO of a successful mid-tier precious metals company on our board is extremely useful. Frank was also an executive at Newmont during the formation of Franco-Nevada, so in addition to having a strong technical background, he has in-depth knowledge and understanding of the royalty and streaming space.

We also have E.B. Tucker and Lawrence Roulston, two well-known mining industry analysts/financiers/investors with admirable track records and amazing industry contacts.

We recently appointed Alex Molyneux to our board. He has a tremendous amount of direct deal-making experience and was the head of Metals and Mining Investment Banking, Asia Pacific for Citigroup in Hong Kong. Alex lives in Taiwan and has a remarkable network of contacts, especially across Asia, that should help propel Metalla forward.

Drew Clark is our VP of Corporate Development, he previously worked for Premier Royalty, which was taken over by Sandstorm Gold.

Your most recently announced deal is the outright acquisition of Valgold Resources (expected to close within a month). Please tell readers about this deal.

Valgold Resources (TSX-V:VAL) is an excellent example of our business model at work. It’s an all-share transaction, so we’re not laying out any cash. Metalla’s share price has outperformed our peer group, so we don’t mind issuing a relatively modest number of new shares to lock down a highly attractive gold royalty on a potentially world-class project in the tier-1 mining jurisdiction of Ontario, Canada.

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The Garrison Gold project is operated by Osisko Mining, a proven mine builder. Garrison is an essential project for them. We think uncapped upside on our 2% NSR is very exciting and could produce a long-term return that’s much higher than the base case scenario.

Metalla recently provided attributable silver equivalent guidance for the fiscal year ending May 31, 2019. Can you walk us through your thinking?

We expect sales to be roughly 500,000 to 600,000 silver equivalent ounces (attributable to Metalla). That compares to about 520,000 ounces in the year ended May 31, 2018. Keep in mind, that’s what we expect from our existing portfolio, it does not include potential acquisitions.

We continue to work on a number of new deals, some of which on assets very close to, or actually in production. In our guidance we indicated annual …read more

From:: The Gold Report

Pass the Moonshine

Source: Michael J. Ballanger for Streetwise Reports 07/18/2018

Precious metals expert Michael Ballanger discusses down periods in the gold and silver markets that presaged large gains.

There was a time not very long ago when hard work, honest execution, determination and honor contributed to financial security. In special cases, extraordinary application of those four practices resulted in financial windfall, as in the case of the visionary entrepreneurs from Benjamin Franklin to James Watt to Henry Ford to Bill Gates and Steve Jobs.

In the 1980–2000 era, enormous fortunes were also created by those men and women daring enough to use funds from private investors to allow them to carry out and complete geological theories resulting in massive discoveries, be it in oil and gas or minerals. The early investors in many of Murray Pezim’s (a Toronto-born butcher turned Vancouver mining promoter) deals lost heavily but those that stayed with him were made ridiculously wealthy with the Hemlo and Eskay Creek gold discoveries of the 1980s. Robert Friedland’s Galactic Resources filed for bankruptcy in 1992 but investors loyal to Friedland in 1994 wound up owning Diamondfields and by 1997, it was taken out by Inco for $4.3 billion after the Voisey’s Bay nickel discovery.

Now, the biggest discovery I was ever involved with as a corporate finance executive was the Mountain Province discovery of 1995 where 3.76 ct/t was considered “$1,000 (per tonne) rock!” and I was rewarded by a jump from $0.39 (where we funded it) to the ultimate peak $9.75/share. Today, with zinc at $1.36/lb. after literally decades in the $0.50s and $0.60s, the value-per-tonne of a 10% grade intercept is noteworthy and similarly, with gold at $1,260/ounce versus $300–400/ounce where it resided for most of the 1990s, a 6 g/t intercept is a big deal because most of the deposits are lucky to carry sufficient scale and continuity in order to qualify as economic.

However, today, unlike the 1980–2000 period, massive intercepts are treated as “leper colony” events and are a clarion call to “SELL! SELL! SELL!” because there is absolutely no marginal buyer cognizant of the long-term accretive powers of a major discovery (which add more reserves to inventory) that will go to his/her board of directors with a scrap of Bloomberg Terminal ticker tape pitching it on the basis of being “good for our company.”

To wit, look at the past thirty days where these results were reported:

June 27th: Fremont Gold Ltd. (FRE:TSX.V) Gold Drills 25.9m @ 4.66 g/t Au at Gold Bar Project, Nevada

Stock spikes to $0.22 in March on speculation and to $0.18 the day of the announcement; four trading days later the stock trades down to $0.12.

June 26th: Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) drills 10.4 meters grading 44.0% zinc in new discovery of exceptional zinc grade at Ayawilca

Stock trades 2.7 million shares immediately after the announcement and then sells back down to within pennies of its recently completed $0.485/unit private placement.

June 28th: American Pacific Mining Corp. (USGD:CSE;USGDF:OTCPK) Drills 16 g/t Gold over 1.5 Meters at Tuscarora

Stock opens immediately after the NR at $0.215 then sells down to $0.18 and closes $0.19 on 670,250 volume.

This latter company is included because it is a company actively covered by Bob Moriarty of 321gold.com and it really shows you just how rotten sentiment is when even one of his sponsors can’t catch a bid.

Conditions such as these are symptomatic of market bottoms where gargantuan amounts of fear have replaced smidgeons of greed in setting the tone for reactions to positive exploration news. This condition is diametrically opposite to what we encounter in the overall stock market where negative news are greeted with a persistent “Buy the dip” mentality, the product of incessant, predictable interventions by government-policy-directed trading desks of the major banks. Retail investors have been trained in a Pavlovian sequence of behavior modification resulting in well engrained neural responses to stocks and gold fed and fueled by the MSM and championed by the bank-sponsored cable networks led by CNBC.

Adding insult to injury, the new generation of investors led by the Generation X, Generation Y (echo-boomers) and Millennials, with the prior two setting the standard for and handing down the investing baton to the latter. Take the Generation Y group, born between 1970 and 1990. They are now considerably larger than their Gen X predecessors (the “baby-bust generation”) but they are now between 18 and 38 and represent the vast majority of new investors AND investment managers. Furthermore, they have grown up during a period of financial entitlement, where government bailouts protect stocks at the risk of immense moral hazard, the nature of which is being felt and witnessed by subdued attitudes toward risk and elevated expectations toward reward. They forge ahead as a thundering herd of demographic chaos, buying companies with zero earnings and enormous debt (Tesla?), gravitating toward the technology sector due to their considerable familiarity with its products, and pushing prices and valuations to the absolute extreme of any and all valuation metrics with full expectations of winning. And guess what? Since the 2007–2008 GFC, that strategy has been 100% effective because by aligning themselves as a voting bloc of investment consensus, they are able to control downside reactions and manage upside probes through Twitter and Facebook, text messaging and email. And, of course, with the full support of the U.S. Fed, the BoJ, the BoC and the ECB.

So in trying to come to grips with my dismally performing junior mining portfolio of explorers and developers, I have reached the stage where I am finally contemplating capitulation and surrender. I am a hair’s breadth away from throwing in the proverbial bloodstained towel and avoiding the gold and silver sectors in the interest of capital preservation and survival. Now, having said that, I would also remind you of a similar notion communicated (with high anxiety …read more

From:: The Gold Report