An Idiot’s Guide to Investing in Junior Resource Stocks

WGO Chart

Source: Bob Moriarty for Streetwise Reports 05/24/2018

Bob Moriarty of 321 Gold discusses a Canadian explorer with a project in the Yukon he is putting his money on.

About this time two years ago I was sitting in a friend’s chalet in Switzerland waiting for Barbara to fly over. It takes dynamite to move Barbara so I sat around for a long time. I got bored. And since the chalet was the same place I had written The Art of Peace a year before, I figured I should give another book a go. That was the origin of Nobody Knows Anything.

It was written more out of boredom than brilliance even though it still sells well. According to Amazon, they have sold 200 books this month. The book took me eleven days to write. The average book on Amazon only sells 50 books total ever.

For the longest time people have suggested I write a book about investing in junior resource stocks. The topic is one that has been rocks and shoals for many a poor writer. Lots of books abound, few sell well. I’m made major progress on the book; I’ve come up with a title. I’m going to call it An Idiot’s Guide to Investing in Junior Resource Stocks.

Don’t be offended by the title. I’m the idiot, not you. I have been investing in junior resource companies since gold hit a bottom in August of 1999. If there is a mistake I have not made, please feel free to point it out. I believe I have made just about all of them. So I’m ok sharing my stupidity with you in the hopes it saves you time and money.

The resource market is about as active as maple syrup in January right now. I’m bored again so perhaps this time I will write the bloody thing in pieces rather than pound on my computer for another eleven days.

You will know you are near a bottom in resource stocks when you can’t give them away. When everyone wants to buy them, you are near a top.

My experience is that most writers make investing look way too complicated. At any given time you can find fifty different explanations for everything that happens.

But can you make money out of those complex solutions? After all that’s what it should be about. You want to remove yourself from the herd and the 95% of people who will always lose money. You want to be in the 5% who make money. At least I do and I hope my readers do.

Investing is simply but not necessarily easy. You need to find out what the mob is doing and do the opposite. If you can figure out what is popular you should sell. Figure out what is hated the most and buy. It really is no more complex than that.

I looked around at our sponsors to determine who was the most boring right now and I discovered White Gold Corp. (WGO:TSX.V; WHGOF:OTCBB). As of May 24th, the stock traded on only one day out of the last seven and that was for a blazing 23,950 shares.

Another rule for investing in junior resource shares is to buy low and sell dear. I know that sounds too simple, I thought the same thing the first time I heard it. But it really is that simple. I have had people ask me, “How can you tell if it’s cheap?” That’s pretty easy, you can always look at a chart. I have pulled up the Stockwatch chart for White Gold.

A year ago White Gold was selling for $2.30, today $0.80. Gold is about the same price. Nothing has really changed but the shares are down 65%. Now we don’t know if WGO will go much lower, it might. But you can see clearly that it was $2.30 then and $0.80 now and it’s cheap relative to what it was a year ago.

The company has 1.24 million ounces of gold in a 43-101 resource. How low can it go? At $0.61 a share that made ounces of gold in the ground worth about $30 an ounce USD when deals were being done for $175 an ounce.

Buy cheap, sell high. Look at a chart and see what it tells you. Don’t look for the most complex answer, find the simple one.

But what about the location and the management and the projects?

What about them?

Some of the biggest piece of crap stocks run by the biggest idiots will make the largest moves higher in a bull market. I don’t suggest looking for idiots to invest in, there are far too many of them to go around. But some idiot will be running a company that will go from $0.05 to $2.00 in a roaring bull and you can retire.

Shawn Ryan vended his Yukon projects into White Gold. They include a total of 390,000 ha in the Yukon, about 40% of the district. His prospecting and soil work helped find the White Gold project, the Coffee deposit and the QV property. That’s over 7.5 million ounces of gold.

Kinross owns 19.9% of White Gold Corp. Agnico Eagle owns a similar 19.9%. You don’t need to be an expert if you are smart enough to know who the experts are. The majors are consuming their young. They must replace the ounces of gold they are producing. Right now they are not.

Kinross and Agnico Eagle have staffs of trained people who do nothing but look at juniors to invest in. You don’t need to become a pro. See who the best companies are investing and follow them.

White Gold has started a $9 million dollar exploration program for 2018 planning on drilling over 100 RAB drill holes and a 22,000-soil sample survey.

Everything in life deviates from the mean and eventually regresses to the mean. Resource shares are the unloved red-headed-stepchild …read more

From:: The Gold Report

Commodity Supercycle Smiling on Energy Metals

Source: Streetwise Reports 05/24/2018

The commodity supercycle could be on an upward curve, and among the commodities, the energy metals could see the most lift, fed by demand for alternative energy going mainstream among consumers, posits Lobo Tiggre of Louis James Ltd. and founder and editor of Independent Speculator, in this interview with Streetwise Reports.

The Gold Report: Lobo, lots of readers know you as Louis James, your pen name for many years. After a long stint with Casey Research, you have gone off on your own, formed Louis James Ltd. and started the Independent Speculator newsletter. Would you tell us a little bit about your new publication?

Lobo Tiggre: Yes, I’m very happy to. I have worked with and learned from Doug Casey of Casey Research for almost 14 years. I would say he taught me everything I know, except that I had other teachers like Rick Rule and many famous geologists, who all gave generously of their time and understanding. I’ve gotten to the point now where I want to do it on my own, and have started the Independent Speculator.

I feel it’s important to have skin in the game. I like it when, in evaluating a resource company, I look at the ownership and see that management has put a significant amount of their own money in the stock, that they will suffer or celebrate the same ups and downs that their shareholders will. So I thought it was important for me to be able to offer the same thing to my readers, which I wasn’t able to do under my previous employment.

This is one of the main ideas of my new service. I write about what I’m investing in. I’m active as a speculator. I’m applying everything that Doug and company taught me. And I am very happy at this point in the commodity cycle to be able to put my own money into the market, to benefit from what I think is coming. And I want to have skin in the game with my readers, to be in the trenches with them.

TGR:Let’s talk about the commodity supercycle—where is it and where do you think it’s going?

LT: The commodity supercycle is interesting because it’s such a strong pattern. You see commodities moving together in big waves. They go down and up, and they all seem to move together. But if you look at what drives any particular commodity, it seems completely unrelated to anything else. Oil is up recently because of the Iran nuclear deal being scrapped by the U.S. administration. What does that have to do with the price of industrial metals? And yet, most are up this year.

I don’t have a really great explanation for why this is, or should be so, but it is a fact. The correlations are extremely high. And gold bugs should beware—silver bugs too—that the correlation between precious metals and other commodities is extremely high. I agree that they are also monetary metals and safe-haven assets, different from pork bellies and coffee. And they do diverge under moments of stress in the global economy, which is what they should do. But apart from those moments of acute stress, gold and silver tend to move with the other commodities.

That’s good news for us right now because the commodity supercycle is in an upward curve. I personally think that all that we saw from 2001 to 2011 was a warm-up. We’re going to see a bigger cycle and a bigger mania blow off at the top. It will take a while to gather steam, but I do think that’s what’s coming.

Why? It’s not just the supercycle. It has to do with my macroeconomic view. All the money printing that governments around the world have done is going to show up in real stuff, including commodities. Things are going to respond to all of the liquidity that has been created since 2008. So I’m very, very bullish. On the exact timing, I don’t have a crystal ball. But I do think it’s coming. And I do think that while the markets are still languishing in the remaining grips of the bear, it’s a great time to be buying. I’m very glad to be able to be doing that myself right now.

TGR: You said that in the supercycle commodities run generally in correlation, but do you see some doing better than others in this next cycle, this bullish cycle?

LT: I do. I’m particularly bullish on the energy minerals, excluding oil. Oil is the old energy mineral. The new energy minerals are set for a stellar run. This is driven by a true paradigm shift out of burning fossil fuels for energy and into renewable energy. That is big and real and powerful and gaining steam. It used to be the pet project of a few people with an ideological axe to grind. Then governments started putting in incentives, pushing to make it happen sooner than the market would have adopted it. But it’s gone beyond that now.

There’s really been a tidal shift. Consumers want these new products and services. Consumers want electric cars now. Before, EVs used to be like golf carts, right? Nobody wanted really an electric car unless they were really hard-core environmentalist types. But now, Tesla Motors Inc. (TSLA:NASDAQ) has smashed the old image of what an electric car could be. The change is not just about Tesla. Everybody’s getting into this because they realize that customers want these new products.

It used to be that solar power was very inefficient and expensive. It was just something for ideologically motivated people. But now it pays for itself, even without government subsidies in some areas, and there are government subsidies in many areas. If you go with a Tesla roof, you can even get financing. You don’t even have to cough up all the money up front and hope to get …read more

From:: The Gold Report

Copper Explorer Gearing Up for Significant Project Expansion

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Source: The Critical Investor for Streetwise Reports 05/23/2018

The Critical Investor examines a company that has been diligently exploring a copper-zinc project in British Columbia.

Kutcho project, VP Exploration Rory Kutluoglu

1. Introduction

After entering the markets with a big splash in December 2017, on the back of an almost monumental deal (for a nano cap) with Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE), Kutcho Copper Corp. (KC:TSX.V) has been working quietly but diligently behind the scenes, to set up everything for further development of their high grade copper-zinc Kutcho project in British Columbia.

Their goal is to advance the deposit to ultimately double the current size, and by doing this improve current 2017 Pre Feasibility Study (PFS) economics when the Feasibility Study (FS) will be completed a year from now. In this article I will discuss proceedings for this year, revisit economic potential and valuations, and will have a more in-depth look in the WPM stream, in order to show it is in fact a good deal for Kutcho Copper compared to others.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in US Dollars, unless stated otherwise.

2. Current status and plans

Before I continue with current activities, let’s have a look at a few basics first. Kutcho Copper has $4.5M in cash at the moment after receiving the first US$3.5M payment from WPM on April 4, 2018, and C$20M in debt. The second payment of US$3.5M is expected in August of this year. As a reminder, management and Board controls 10% of shares which counts as above average skin in the game. Wheaton Precious Metals holds 13% and Capstone Mining is the largest shareholder with 16%.

As of May 18, Kutcho Copper has a share price of C$0.59 and a market cap of C$28.18M, with only a very tight 47.77M shares outstanding (fully diluted 70.1M, all options and warrants out of the money at C$1.00, expiry in 3 years). The average daily volume of last month is 43k shares, which is about 10% of the average of the first 2 months.

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Share price over 1 year period

After the big entry in December, the stock gradually went down lower as everybody that was interested took a position in these first months, and buying pressure and volume decreased. When looking at the chart it seemed that the C$0.45-50 level functions as a solid bottom and an indicator of minimum fundamental value the market was willing to pay for Kutcho, as there were no strong catalysts or marketing since Dec 2017-Jan 2018. As the summer drill program is about to start and further catalysts are expected, I expect investor awareness for this company improving again, facilitating a second wave of new entrants.

As a reminder, Kutcho Copper management has planned the scale of the upcoming field program such that they can achieve all the technical data collection for the feasibility in one field season. The easy field season up there is May 21 to October 31. Outside this window, things are not impossible, just more expensive, and therefore the company is looking to complete all drilling requirements within this period.

All kinds of equipment, supporting the upcoming field program, is being transported to location at the moment. Camp construction and commissioning is anticipated to be completed by June 1st, and drilling with two rigs will commence on June 15th. According to COO Duncan, if needed the number of rigs will be scaled up to four in order to finish before the winter break. The 2018 field program will look to expand resources through infill drilling for inclusion in the FS, and to provide data for the optimization of metallurgical recoveries and geotechnical parameters.

Under the engineering lead of Ausenco, the recently hired engineering firm to do the FS, the team consists of: Sim Geological Inc. for resource modeling, Holland & Holland for metallurgical engineering and process design, Terrane Geoscience Inc. for geotechnical engineering, and SRK Consulting for open pit and underground mine design among others.

I am not too familiar with the other names, but Ausenco is a worldwide operating firm, worked for majors like BHP, Glencore, Newmont, Vale and numerous others like copper/base metal focused Hudbay, Las Bambas, Teck, and also did a good job at Atlantic Gold’s Moose River project. I am happy to see SRK, which I regard as one of the top two or three in the mining business, doing the mine design. This will probably generate a lot of confidence in the quality of this study and its economics.

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Exploration camp used by Kutcho Copper

Although the upcoming drill program will focus on infill drilling, several priority drill ready targets prospective for additional resources have also been prepared. These prospective targets include, as mentioned in the corresponding news release:

– Mineralized drill intersections along strike and down plunge to the west from the Esso deposit (one of three VMS deposits comprising the Kutcho project) including 7.1 metres @ 1.96% copper, 5.24% zinc, and 18.0 g/t silver in DDH 94-B3. These intercepts could represent extensions to the high-grade Esso deposit or a potential new deposit.

– The FWZ, a relatively narrow sulphide lens (2 to 5 metres thick) which lies beneath the Main zone and which was subject to an historic estimate prepared as an internal document for Esso Minerals in 1979, of 230,000 tonnes averaging 1.47% copper, 5.52% zinc, 0.4 g/t gold and 43.7 g/t silver. The FWZ may have potential along strike and down dip for additional mineral resources. This mineralized zone demonstrates that additional horizons across the property are productive for VMS style mineralization:

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– Main mineralization is open down-dip along 800 m, or 57%, of the total strike for this deposit, indicating potential for resource expansion down-dip.

– Esso mineralization is …read more

From:: The Gold Report

Gearing Up for a Busy Summer in the Golden Triangle

Source: Thibaut Lepouttre for Streetwise Reports 05/22/2018

Calling it “one of the hottest exploration regions in Canada,” Thibaut Lepouttre of Caesars Report describes how one company is preparing for the short summer exploration season.

One of the hottest Canadian exploration regions in Canada in the past few years has been the Golden Triangle in British Columbia. Unfortunately the exploration season is pretty short, as companies have just a few months to get in and drill holes before the weather changes. This means exploration companies need to be able to hit the ground running to maximize their efforts. One of those companies is Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS), which is getting ready to drill its flagship Forrest Kerr Gold project again.

The Flagship Forrest Kerr Property

Aben Resources acquired the 23,000-hectare Forrest Kerr project in British Columbia’s Golden Triangle region in 2016. This region was just heating up again after remaining dormant for a few decades. The development of the Valley of the Kings and Red Chris Mines (owned by respectively Pretium Resources Inc. [PVG:TSX; PVG:NYSE] and Imperial Metals Corp. [III:TSX]), as well as new infrastructure development by the government, has led to an increased level of exploration activity in the region.

The Golden Triangle has been the hot spot of gold exploration and production throughout the past few decades. Placer gold was initially discovered along the Stikine and Anuk Rivers in mid-1800s, and the exact point where both rivers combined was the scene of a new gold rush. These small-scale placer gold operations continued for several decades until a first mine was developed right after the First World War.

But the most famous mines in the Golden Triangle district were undoubtedly the Snip Mine (1.1 million ounces recovered at an average grade of 27.5 g/t gold) and the Eskay Creek Mine (producing 3 million ounces of gold and 160 million ounces of silver). A very prospective region, indeed.

Aben seems to have negotiated a good deal considering the company has to issue just 7 million shares and complete CA$3 million in exploration expenditures by June 2020. That gave Aben a four-year period (from 2016-2020) to test the merits of the project while incurring the expenses needed to reach full ownership of the project. It’s very likely Aben will be completing its exploration expenses by the end of this year, which would secure its 100% ownership two years ahead of schedule.

Looking at the historical data provided by the previous owners of the project, it’s understandable that Aben’s technical team was charmed by the property. Kiska Metals Corp. (KSK:TSX.V)(one of the previous operators) drilled a very short but ultra-high-grade interval of 0.45 meters containing 359.7 g/t gold and 1.95 meters containing 101 g/t gold. You obviously cannot expect these high-grade results to pop up everywhere on the property, but these intervals, combined with in excess of 20,000 samples, were a good enough reason for Aben to get back in the field for its 2016 and 2017 exploration programs.

After analyzing all the data gathered from the 2016 exploration season, Aben immediately designed a nine-hole drill program, completing 2,445 meters of diamond drilling in the summer of 2017. The first three holes were drilled at the Carcass Creek Zone and didn’t immediately yield the expected/desired results as only short intervals of low-grade mineralization were encountered. Before the company could target the expected structure from a different angle, the drill program at Carcass was suspended for safety reasons, and the next six holes were drilled at the more important Boundary Zone.

This zone was Aben’s high-priority drill target after analyzing the 2016 assay results and fortunately these six holes did provide the desired results. A first batch of three holes was drilled from the same drill pad at different angles (45, 60 and 75 degrees), and encountered 10 meters at 6.7 g/t gold, 6.36 g/t silver and 0.9% copper (with a higher grade interval of 3 meters at 18.9 g/t gold, 16.6 g/t silver and 2.2% copper) in the first hole, followed by 12 meters of 10.9 g/t gold, 14.6 g/t silver and 1.5% copper in the second hole (drilled at a 60-degree angle). And the final hole of that series of three (drilled at a 75-degree angle) encountered 14 meters at 2.91 g/t gold, 5.2 g/t silver and 0.6% copper.

These are excellent high-grade results, indicating a narrow high-grade zone within a very broad mineralized zone, which Aben Resources will undoubtedly want to follow up on. It’s still very early days at the Boundary Zone, but Aben now has a pretty good idea of how to make its 2018 drill program as efficient as possible.

It’s now also cheaper to get an exploration program going in the Golden Triangle. The recent completion of major infrastructure works at and around the Golden Triangle have renewed the interest of exploration companies in this area as it’s now easier to explore, and a discovered deposit now actually has a chance of becoming a mine without needing Snip-like grades. The Forrest Kerr property is definitely blessed with excellent access to infrastructure: a hydro dam has been built on the southern part of the property boundaries, and this resulted in the construction of access roads and, more importantly, a 287-kilovolt power line.

That’s an important step forward. It doesn’t increase the odds of finding a deposit (as you’ll still need to apply “pure” geology), but it definitely makes it easier and cheaper to explore.

Share Structure

Although Aben Resources just raised CA$2.3M at CA$0.125 per share, it has done a great job keeping its share count under control. The company currently has just 78.1 million shares outstanding, and that’s after issuing 6.3 million shares at CA$0.125/share in a hard-dollar financing, and 8.55 million flow-through shares at CA$0.18. Both tranches were accompanied by a three-year warrant with a strike price of CA$0.25 per warrant.

As Aben Resources still had some cash on …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

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.

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 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

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.”

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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.

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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

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