Looking for a Turn in Gold

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

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

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

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

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

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

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

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

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

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

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

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

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

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

From:: The Gold Report

Viva Gold Steals Gold Project

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

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

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

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

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

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

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

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

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

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

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

Actually the visibility. Visibility is a real problem.

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

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

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

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

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

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

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

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

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

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

Want to read more Gold Report articles like this? Sign up for our …read more

From:: The Gold Report

Copper Miner Gears Up for Summer Drill Season

Source: Gerardo Del Real for Streetwise Reports 05/17/2018

Vince Sorace, the president and CEO of Kutcho Copper Corp., tells Resource Stock Digest about the company’s plan of attack for the 2018 field program, which he believes will generate substantial news flow over the coming months.

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me is president and CEO of Kutcho Copper Corp. (KC:TSX.V), Mr. Vince Sorace.

You know it’s been quiet as far as the share price goes, until recently. And it’s not a coincidence that news flow is really picking up. You had some news yesterday. And it’s an important piece of news because you’ve now commenced field mobilization, and this includes the mobilization of heavy equipment, camp facilities, and as important as anything, the drill rigs. Let’s talk about the 2018 field program and what you’re trying to accomplish, Vince.

Vince Sorace: We’re getting to work. There’s been a lot of planning going on in the last four months. And so at this point we are going to start executing on everything that we said we were going to. That’s going to involve a number of exciting aspects with respect to the project. As we’ve talked to you in the past, the real potential behind this project is that it’s already a very highly economic, high-margin project with a manageable capex. We see the potential to expand the size of this and make it even more robust.

That’ll be our plan of attack this year and what we’re going to capture during this field season. The drill rigs will be looking to capture a lot of upside potential and that resides in converting a bunch of the inferred resources—there’s a lot of low-hanging fruit there—and potentially some new stuff on the exploration side. All this will feed into the feasibility study in Q2/2019. But the results of that will be apparent coming throughout the summer. There’ll be lots of news flow this summer with respect to the drilling that we’re doing, with respect to optimized metallurgical programs that we’re advancing, with respect to restating our resources in the fall. As a result of this field season, we’re targeting a 65–70% increase in reserves heading into the feasibility study. And all this will have a significant positive impact on the already robust economics of the project.

Gerardo Del Real: You mentioned how robust those economics are, and let me just provide a bit on context. The base case estimate of the last prefeasibility study gives an after-tax net present value, at an 8% discount rate, of CA$265 million and an internal rate of return (IRR) of 27.6%. And that’s using metal prices way below where they’re at right now. That’s using metal prices of $2.75/pound copper, $1.10/pound zinc, $17/ounce silver, and $1,250/ounce gold.

Also, you’re basing that on reserves from a Measured and Indicated resource that is 49% smaller than what’s currently stated in the 2017 preliminary feasibility study. So I think that should provide some context as to what the upside is. You are starting this drilling program with two diamond drill rigs. Is that correct, Vince?

Vince Sorace: Yes, that’s correct.

And just to add to that previous comment. It doesn’t take much. We’ve done a lot of this work at $3.10 copper and with some higher zinc prices—you can see this in our presentation—it already has a $100 million impact to NPV. So very sensitive to copper prices. I think the sentiment out there is very bullish on copper, now and in the coming years. So just the commodity price alone has a substantial impact on what the project economics are going to look like. And I’ll also say we’ve identified a lot of opportunities, even in opex and a few other areas, that I think we’ll be capturing in the feasibility study that can also help feed into the project economics as well.

Gerardo Del Real:Excellent. Who do you have leading the feasibility study?

Vince Sorace: We chose Ausenco Engineering. A great outfit, they’ve got lots of experience in doing this, a very practical shop. We believe the guys are very good at what they do and we think they’re going to deliver a great product to us at the end of this that will recognize the potential of the project.

Gerardo Del Real: You executed a deal in 2017 with Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) that I think was one of the best, if not the best deals in the junior space. How is the support from the Wheaton group coming along?

Vince Sorace:Wheaton’s commitment is firm and strong. They are very big supporters of this project. They believe and want to see this project into production. They’ve just been an outstanding, and will continue to be a great partner for us. We recently received the first tranche of the upfront money that they committed to us, that was US$3.5 million, I guess about a month ago. And we’re expecting to receive the second tranche of that, similar amount, in the coming couple of months. I’m in constant communication with them. They are an outstanding group of individuals and fully supportive of our efforts moving forward.

Gerardo Del Real: You also recently signed an Exploration and Communication Agreement with the First Nations group. Can we talk about that? Because we know how important the social license is.

Vince Sorace: We have put a lot of emphasis with respect to the social license and this project moving forward. That’s reflected in the permitting team we’ve put together on this project. We have, and we will continue to, put a lot of emphasis on that. I would say that the relationships that we’ve formed already with respect to the First Nations are fantastic. At this point we’re all on the same page. It seems like it’s going to be a joint effort for all parties …read more

From:: The Gold Report

Zinc Miner Signs Contract for Drilling at High-Grade Site in Nevada

Source: Streetwise Reports 05/17/2018

Canada-based zinc mining company expands drilling program at U.S. site.

Pasinex Resources Ltd. (PSE:CNX) has announced that it has signed a drilling contract with Idea Drilling LLC of Minnesota. The contract is for drilling at least four holes of up to 3,000 feet of oriented diamond core at the Gunman high-grade zinc project in Nevada. It is expected that this drilling work will begin at the end of May. The budget for the work is $500,000.

“This is a ‘surgical’ drilling program designed to confirm previous reverse circulation drilling results and, for the first time, to provide oriented diamond core to crucially work out the structural controls on the mineralization. Detailed mapping of the Gunman project is also almost complete and fundamental to effective targeting within mineralized host-carbonate rocks along strike and under cover. A drone-borne magnetic survey over the Gunman project is being planned in the coming months to reveal covered geology and hidden structure,” explained Pasinex’s VP of Exploration, John Barry.

The Gunman project has both a high-grade zinc and deep root potential, according to the company. It is located north and east of Eureka, Nevada. Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:Frankfurt) and privately held Caliber Minerals Inc. own the project, but Pasinex could earn an 80% interest by paying US$675,000 in cash and issuing 4.8 million shares of Pasinex common shares over a four-year period. Pasinex must also spend US$2.95 million over four years to explore the property.

Toronto-based Pasinex Resources also owns 50% of the Pinargozu high-grade zinc mine located in Turkey.

Read what other experts are saying about:

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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: Cypress Development. 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: CYP:TSX.V; CYDVF:OTCQB; C1Z1:Frankfurt,
PSE:CNX,
)

…read more

From:: The Gold Report

The State of Mining in India

Source: Streetwise Reports 05/17/2018

Jayant Bhandari, host of the “Capitalism and Morality” seminar, discusses with Maurice Jackson of Proven and Probable the state of mining in India, as well as some mining companies that offer arbitrage opportunities.

Maurice Jackson: Joining us is Jayant Bhandari, the host of the highly acclaimed “Capitalism and Morality” seminar and a prominent, sought-out advisor to institutional investors. Today, we will discuss the mining industry in India and arbitrage opportunities.

Let’s begin our discussion in India. There are some new reform laws taking place in the mining industry that could really have a significant impact on India. For those that may not be familiar with India and its natural resources, can you share what India produces and how it has been extracting those resources historically?

Jayant Bhandari: India produces about 40,000 ounces of gold and should be able to produce a lot more ounces of gold in that country, but the problem is no one cares to explore for gold in that country. This is mostly because the land rights are not properly defined, and the bureaucratic procedure to get from reconnaissance permit to mining permit is virtually impossible. It takes a huge amount of time, and at every step in the process the bureaucrat has the right to take away the project from you. So you might invest hundreds of millions of dollars on these projects, but at the end of the day, the government might just take that project away from you. That is the very reason why the Indian mining industry is extremely backward.

Coal mining is a monopoly run by the government of India. Iron mining takes place in a very confined space in that country in which private operators operate iron mining as a part of the steel industry. In virtually every case, these companies are in bed with the government in a corrupt way, and they are in bed with the mafia. When you have corrupt regulations, you also empower mafia kind of organizations to come in and exist, who then exploit the local people.

So Indian mining industry is almost an impossible industry. You might be able to operate that as a mafia-run industry, but even then Indian companies prefer to own coal mines and iron mines in Brazil, Africa, Indonesia, Papua New Guinea or Australia. They prefer not to operate in India not only because of the cost, but also because the bureaucratic regulations are very difficult or impossible, plus land rights are very difficult obtain, and on top of that, costs of making mining happen in that country is extraordinarily high.

Maurice: For someone not familiar with India, are the mines there nationalized, and if so, what changes is India trying to implement to change this course?

Jayant: Coal India is a nationalized company. It is run by the government of India. It is listed on the stock exchange, but the majority of the shares are owned by the government, which means that the government runs the company based on what looks beneficial to the government.

The government of India has made many attempts to liberalize coal mining. The problem is that India has among the highest and the largest reserves of coal mining in the world. However, Indian coal-powered electricity generating stations must import a huge amount of coal from Brazil and Australia and Indonesia because Coal India is an extraordinarily corrupt organization, which means that it cannot supply the required coal to the electricity generating power stations, and when it does supply coal to the power stations, it is mixed with a huge amount of waste, which creates a massive amount of efficiency problems at the power stations.

This means that people and electric generating companies find it much easier to import coal from outside of India than buy it domestically. That is how difficult mining has been in India. Mostly because there’s no rule of law in that country, and mostly because these bureaucrats who have zero experience of real life assume that they must be trusted by companies and citizens, and they reserve the right to steal your property when they wish to take it away for the so-called greater good of the society and that so-called greater good of the society always translates into more bribes and more corruption in that country.

Maurice: Sounds as if there’s a number of inefficiencies within the industry. As a champion of liberty, I assume you’re in favor of the privatization of the mining industry in India, but is there a catch on India’s initiatives on this legislation?

Jayant: Nothing will change because of the new law. The government of India is trying to liberalize the coal production in that country, and again the reason is very simple. It will make some superficial changes as it has consistently made over the last 30 years, but nothing significant, nothing material will change to make it attractive for outsiders to invest in that country. In fact, not much will change for even Indian companies to invest a lot more money in that country. As I said earlier, even Indian companies prefer to invest their capital in Africa or Papua New Guinea or Indonesia, which are by themselves very difficult jurisdictions. But India is such a tough jurisdiction that no one really cares to invest in mining in that country.

Maurice: Jayant, if India is not a good place to put our capital, do you have any names and/or arbitrage opportunities that have your attention at the moment?

Jayant: Well, there’s certainly one Indian company, a mining company, that I follow. I don’t invest in that company. However, it is run by some good people. The name of the company is Australian/Indian Resources and its sister company is Deccan Gold Mines. Deccan Gold Mines is listed on the Bombay Stock Exchange. Again, it is run by people I like, but I don’t necessarily think this will lead to a …read more

From:: The Gold Report

Shovelnose Delivers Gold to Westhaven

Source: Streetwise Reports 05/17/2018

Bob Moriarty of 321 Gold profiles a company that holds a large land position in the “most unexplored gold belt in British Columbia.”

As I just wrote yesterday, I see a low in the metals and junior resource shares approaching. It’s time to load up the truck. The metals have meandered up and down for almost two years building a base. I believe it is for a march going much higher soon. I have a number of companies I have been holding back on writing about waiting for a signal of a turn. It’s coming and times are about to get interesting.

There are a bunch of factors an investor needs to consider when putting their hard earned money into a venture. Where is it? What metal are they looking for? What’s the country risk? Do they have any money? Is it a project that has been drilled by every ne’er-do-well in Vancouver until it looks like Swiss cheese? Who is running it?

I’ve been to somewhere between 400 and 500 projects, been lied to a thousand times and heard most of the bullshit stories told. When I began doing these trips seventeen years ago I was totally ignorant and for certain knew less about mining and projects than anyone on the tour. But guys who know what they are doing are more than willing to share what they know if you are smart enough to know the right questions to ask. I still want to be the dumbest guy on a tour; when you are the smartest and most knowledgeable person on the trip, you can’t learn anything.

Since I wasn’t a spring chicken even then I was forced to come up with some shortcuts. Of all the information we were being handed, what was the most important thing to focus on? And since I had done a lot of things in different ventures, I knew that one of the most important things to know was the qualifications of the people behind the deal. Who is running the show and how qualified are they?

Someone contacted me a few weeks ago and wanted me to look at Westhaven Ventures Inc. (WHN:TSX.V). I did and they look interesting. The company wanted to advertise so I asked them to send me some tag lines for a banner. What they sent me knocked me over.

The CEO, Gren Thomas, has been inducted into the Canadian Mining Hall of Fame. That was pretty interesting to me. And he has been initiated into the Yukon Mining Hall of Fame. And been the PDAC Prospector of the Year. Crikie, this guy has some qualifications.

The more I delved into the company the better it looks. Management has major skin in the game owning over 40% of the shares. It’s vital in any company that you consider buying that you know if your interests and management’s interests overlap. When management has nothing but a bunch of options on the company that’s a double negative. In the unlikely event that they ever actually move the stock much higher, they are going to be exercising the options and dumping the shares.

I want to know that if I go broke because I own a bunch of shares in an expired lottery ticket, at least the idiots running the company go on the dole with me.

Westhaven has a giant 30,000 square ha land position in the most unexplored gold belt in British Columbia. Thomas spent the dismal years between 2011 and 2015 putting the package of properties together. They are located about 70 miles northeast of Vancouver.

The Fraser River Gold rush of 1857 is credited with the foundation of what would become known as British Columbia. Other discoveries further north took the prospectors off where the gold was greener on the other side of the fence leaving behind a rich but basically unexplored gold region. CEO Gren Thomas literally made a career of picking the low hanging fruit that others overlooked. He’s done this again and again.

Westhaven owns 100% of three main projects. The company began a 2,600-meter seven-hole diamond drill program in March on their Shovelnose Gold property. It was completed a few days ago. In early May the company released results from the first three holes. Hole SN18-03 showed nice results giving 28.7 meters of 2.6 g/t Au including 2.9 meters of 9.7 g/t gold.

On May 16th Westhaven announced the remaining assays from the last four holes would be released in about 3-4 weeks in a single batch. Once Westhaven has all the results back and can figure them out, they intend a follow-up 3,000-meter program at Shovelnose. Historic sampling shows float samples of up to 119 g/t gold and 273 g/t silver. Trench samples ran up to 66 g/t gold.

In the dismal days leading up to the major bottom in late 2015 when the CEOs of most juniors were whining into their beer mugs, Westhaven was out plucking the crop. Gren snapped up the Skoonka Gold property and the Prospect Valley Gold project for $140,000 in cash and 3 million shares.

Westhaven is targeting their high potential targets first. As the Phase 2 drill program begins at Shovelnose, the company also plans a 3,000-meter diamond core drill program at the Skoonka project starting in June.

Investing is not rocket science. If you understand the importance of being able to measure sentiment and the vital signals it sends, you can make money with the right companies. Westhaven has most of the major pieces you need to make a major discovery. Obviously raising money is always an issue, no money, no drilling, no drilling, no discovery. A tailwind from the price of gold will make a lot of money available for exploration.

At today’s price, WHN has a market cap of $10 million USD. I think that’s …read more

From:: The Gold Report

Gold Miner Firms Up Financial Agreements

Source: Streetwise Reports 05/17/2018

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

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

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

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

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

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

Read what other experts are saying about:

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

( Companies Mentioned: VIT:TSX.V,
)

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From:: The Gold Report

Gold Producer Clears Final Acquisition Hurdle

Source: Streetwise Reports 05/17/2018

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

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

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

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

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

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

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

Read what other experts are saying about:

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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: Leagold Mining Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

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

…read more

From:: The Gold Report

Drilling at Nevada Gold Deposit Expands Resource Potential

Source: Streetwise Reports 05/16/2018

The release of infill drilling results at a Nevada gold project shows continuing resource potential.

Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) recently announced results from its 2018 infill drilling program at the Dark Star oxide gold deposit. Some 4,605 meters of infill drilling have been achieved at this site in 28 holes. This phase of drilling was completed in mid-March. The company subsequently turned its focus towards more drilling work at the Pinion deposit. Over 120 holes were completed at this site. After work at the Pinion deposit was finished, drilling with a core rig and a reverse circulation rig was started up again at Dark Star.

Over 140 exploration and development holes remain to be drilled at Dark Star.

Some highlights of the work at Dark Star are:

  • The intercept in the northern part was thicker and of higher grade than was predicted. DR18-26 intersected 54.9m of 1.64 g Au/t, including 18.3m of 3.04 g Au/t. At the topographic surface, DR18-26 also intersected 12.2m of 1.36 g Au/t.
  • DS17-35 returned 8m of 2.96 g Au/t, including 93.0m of 5.06 g Au/t while DS17-37 yielded 141.8m of 3.32 g Au/t, including 25.9m of 8.63 g Au/t.
  • Of all the holes drilled at Railroad-Pinion, DS17-35 and DS17-37 have been two of the best, but the new drilling verified the existence of a new high-grade target to the west.

“Once again, we are impressed by the grade and thickness of the intercepts from the Dark Star deposit. As we do the detailed infill drilling for our upcoming PEA, we are finding the smaller-scale structural features that generate exceptional grade in Carlin-style deposits. We are also discovering lateral extensions which we expect to be able to bring within the PEA’s pit configuration and include in our mine plans,” explained Gold Standard CEO Jonathan Awde.

Gold Standard reiterated that it intends to release a preliminary economic assessment (PEA) for Dark Star and Pinion during the second half of this year.

Read what other experts are saying about:

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) 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: Gold Standard Ventures. 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: GSV:TSX.V; GSV:NYSE,
)

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From:: The Gold Report

The Holy Grail of Investing

Source: Bob Moriarty for Streetwise Reports 05/16/2018

Bob Moriarty of 321 Gold discusses movements in the gold and silver markets.

A major low in the price of precious metals this way cometh.

I remember clearly the first time someone informed me that all markets were manipulated. It was just after my mom told me that the sun rises in the east. When I learned about everything was manipulated, there are no free markets, I was so mad I kicked the slats out of my cradle.

We need to know all about manipulation. We also need to know where the sun rises and sets. For example, you are sitting in your car; you feed in the name of a nearby bar into your phone, press DIRECTIONS and then GO.

Your phone tells you to turn east. How wonderful is modern technology? Your phone can navigate you to the nearest bar, it just can’t tell you what direction east is. But you remember back to momma and everything she schooled you. You look up thinking that finding a bar at ten in the morning when it is east of you, just drive in the direction of the sun. That’s east.

I’m told than ninety-five percent of investors lose money. I can believe that, most people are fools. I invest to make money. I run a website that tries to help people make money. We want to cater to those tiny few souls who want to be in the five percent.

But you want to know, you need to know, what the ninety-five percent are thinking because it tells you what not to do. I spent a lot of time writing about it in Nobody Knows Anything. You are either a contrarian or a victim.

Imagine yourself standing at the bottom of a very tall mountain. A guy dressed up in fancy and expensive climbing gear comes up. He asks you to hold a brief case filled with $100 bills for him.

He’s just learned about the manipulation of gold and silver. He tells you that he’s going to climb to the top of the mountain at the time of the full moon and howl at the moon until those rat bastards in the greedy banks stop manipulation of gold and silver. He wants you to hold the briefcase while he’s gone.

What do you do?

You do what anyone in the five percent would do when confronted with fools.

Take the money. We in the five percent act as a destination for the money of the ninety-five percent who are clueless. They want to give their money away. It’s only fair to take it and hold it until they wake up.

On January 26th I wrote a piece about the Daily Sentiment Indicator giving signals on a full dozen different commodities. The DSI said each of the commodities was near an extreme of emotion and were about to reverse direction. The DSI predicted the move, I just happened to notice that a lot of totally different commodities were sending signals. The DSI numbers were facts, not opinions, I just put it all together.

If you spent $3.99 on Nobody Knows Anything, you wouldn’t need a guru or to know all about manipulation or banks that want to steal all your money or conspiracies. You could figure it out all by itself.

For the last couple of months, I have been hoping for a minor crash in the price of the metals. We need that. We need to run all the stops and expunge all the overzealous PermaBulls before we can start the next drive higher. I was looking for a low in the June/July timeframe. We tend to have two lows a year, once in the summer. Once at the end of the year. I am on record as telling people to look for a DSI below 10.

On May 15th we got a new low for the year of 10 for both gold and silver. That does not mean they will turn today. That does not mean the DSI can’t go to 5 or 6 or lower. It just means a low for the metals is nearby and the DSI will mark it as it always does.

If you can’t afford the $3.99, send me your email address and I will give you a copy as a gift. It’s that valuable. I can afford it; I understand how markets function without worrying about noise. I focus on signal.

When you read my book and finally understand how people think, sign up for the DSI. You will be able to afford it then.

It really is the Holy Grail.

Just watch what happens with the metals shortly. I’ll be sure to point it out.

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

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 Bob Moriarty and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. 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) This article does not constitute investment advice. Each reader is encouraged to consult with his …read more

From:: The Gold Report