Aftermath Buys Silver for $0.12 an Ounce

Source: Bob Moriarty for Streetwise Reports   07/28/2020

Bob Moriarty of 321gold outlines the company's latest deal.

If you are a silver bug, Aftermath Silver Ltd. (AAG:TSX.V) just did a binding agreement on a project in Southern Peru with a silver 43-101 resource of 126 million ounces. They are paying about $14.5 million in total in USD with a tiny NSR on production. It comes with 771 million pounds of copper in a 43-101 resource for free.

Alternatively, if you are a copper nutcase rather than a silver nutcase, you can think of Aftermath paying $0.02 a pound for a 771 million pound copper resource that comes with 126 million ounces of silver for free. That seems like a pretty good deal to me.

They are buying the project from SSRM. SSRM used to have the most wonderful name. They were called Silver Standard. How cool was that?

Some bright spark determined SSRM was a better name. Not all of the idiots in the world are in Portland and Seattle.

In any case, SSRM (gag me with a spoon) is selling the Berenguela project to Aftermath for $13 million USD in cash over a six-year period and $3 million CAD in Aftermath shares.

This is going to go down as the deal of the century for Aftermath. The whole reason for owning a silver/copper project in an environment of hyperinflation is that it will project you against a collapse in the US dollar. I guess no one let SSRM know.

Aftermath is an advertiser. I am a shareholder. Do your own due diligence.

Aftermath Silver Ltd.
AAG-V $0.485 (Jul 27, 2020)
AAGFF-OTCBB 92.2 million shares
Aftermath Silver website

Bob Moriarty
President: 321gold
Archives
321gold

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

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Aftermath Silver. Aftermath Silver is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aftermath Silver, a company mentioned in this article.

( Companies Mentioned: AAG:TSX.V, )

Why Is VanGold Mining So Hot?

Source: Peter Epstein for Streetwise Reports   07/28/2020

In this interview, Peter Epstein of Epstein Research talks with CEO James Anderson about why this company has potential beyond riding the rising tide of gold and silver prices.

In every article/interview I've done on a gold or silver junior in the past three months, I've remarked, somewhat breathlessly, on how strong prices are. Yet, prices keep moving higher! Gold, at US$1,944/ounce (US$1,944/oz; an all-time high in U.S. dollars) is up +39% from its 52-week low of US$1,401/oz. Silver, at US$24.33/oz, is up 102% from its mid-March COVID-19 low!

VanGold Mining Corp. (VGLD:TSX.V) is a silver-gold story benefiting from this apparent precious metals bull market, but more importantly from the potential to generate two-years-plus of steady free cash flow starting in about 6–9 months. Monetizing historical stockpiles is as much as most readers may know about VanGold, but there's so much more to this story.

In a prior article I mentioned the possibility of CA$15 to CA$27 million (CA$27M) in total cash flow, over 24–30 months, from toll-milling surface and underground (u/g) stockpiles. At today's spot prices, my rough estimate increases to CA$23M–$35M. Anything above CA$15M would be a great outcome for a company with a market cap of CA$13.0M = US$9.7M. [Note: Market cap is before a recently announced private placement of 24.5M units at CA$0.155/unit.]

While free cash flow from harvesting stockpiles would greatly reduce the need for future equity raises, better still is the tremendous exploration and near-term production potential. High-grade ore in and around historical u/g workings is low-hanging fruit that could pay off for years to come.

Finally, there's a decent chance that the entire region's blockbuster vein, the Mother Vein, passes through VanGold's property at depth, with (possibly) very wide stopes and high grades. The company needs to drill to test that theory, so stay tuned. Please continue reading to find out what CEO James Anderson has been up to that has everyone so damn excited.

Peter Epstein: Please explain what VanGold learned from shipping and toll-milling 1,039 tonnes of ore from its surface stockpile of approximately 175,000 tonnes.

James Anderson: Many things really. Regarding gold and silver recoveries, some people thought our surface material, exposed to the elements for nearly 110 years, would not float in a floatation mill due to oxidation. We proved those folks wrong with +75% recoveries for gold (Au) and +60% for silver (Ag). We have ideas about how to get better Ag recoveries. For a first test through a mill, we are very happy with these results.

The head grade of 1.23 g/t Au Eq (Au equivalent) on 1,039 tonnes of surface material passed through the mill was almost exactly what we expected. That gives us confidence in our other grade assumptions—especially for the u/g stockpile—which we believe is about three times higher than the surface stockpile, roughly 3.6 g/t Au Eq. In 1959, the Mexican Geological Survey estimated a meaningfully higher grade. So, there might be some upside here.

Perhaps most important, we learned a great deal about the economics of sending material to a local mill. Actually knowing all the component costs of shipping and processing gives you great confidence to plan for the future. We ended up producing 18 ounces of gold and 930 ounces of silver, a small start, but an important first step along our journey.

PE: After your current capital raise, VanGold will have about $5M in cash. And, you hope to have significant monthly cash flow, for 24–30 months, targeted to start in 1H/2021. Why do you need so much cash?

JA: First, I want to thank our shareholders, many of whom are investing for a second or third time, for giving us money to pursue this exciting project. Re-entering and refurbishing the 110-year old mine will no doubt come with surprises, both good and bad.

We're now confident that we will have ample funds to deal with anything unexpected as we assess the bottom of the u/g stockpile and access the #7, or Sangria, adit level. Although delayed for 10 days due to COVID-19, that work is expected to start next week. Meanwhile, computer modeling of the deposit in anticipation of an underground drill program is ongoing.

PE: Regarding VanGold's two stockpiles, please explain the logistics of monetizing these assets?

JA: With regard to the surface stockpile, it could not be easier. A front-end loader will shovel material into 20-tonne trucks for delivery to a local mill. With regard to the u/g stockpile, there are several additional steps. First, we need to clear the bottom of the El Pinguico shaft and sample the bottom of the u/g stockpile.

As established by VanGold's trenching (to NI 43-101 standards), the top of the stockpile grades about 3.6 g/t Au Eq. We plan to further establish and confirm that grade by sampling the bottom. We are carefully studying options to either refurbish the El Pinguico shaft, or the Sangria adit, to 21st-century safety standards, to bring the u/g material to surface. Finally—let me emphasize this point—we need to establish a medium-term contract with a mill to process our material.

We're optimistic on this front. I mean, we did successfully negotiate and fulfill a contact for 1,039 tonnes in May. There are four mills between 2 to 28 kilometers (28 km) from our property. We think we will be able to strike a deal with one of them. Still, until we sign a contract, that remains a risk factor.

PE: How soon before you might deliver a PEA/PFS [preliminary economic assessment or preliminary feasibility study]? Or, given that you've done trial mining and toll-milling on 1,039 tonnes of ore, do you need to spend the time and capital on these reports?

JA: That's a good question. Frankly, we hope to skip over much of the cult of report writing and simply transition from shipping our stockpiled material (over 24–30 months, targeted to start 1H/2021) into adding in higher grade, in-situ, newly mined material.

PE: El Pinguico is usually described as a silver-gold project. Do you know what the mix is between the two metals?

JA: Well, the u/g stockpile grades 1.66 g/t gold + 167 g/t silver, a 100 to 1 silver to gold ratio. If the stockpile is indicative of surrounding areas, which we believe it probably is, then for each ounce of gold, there's likely to be about 100 ounces of silver. In terms of in-situ metal value, at spot prices (US$1,944/oz gold and US$24.33/oz silver), 56% of the economics would come from silver, and 44% from gold.

PE: The u/g stockpile grades ~3.6 g/t gold equivalent. Yet, historical mining, drill records and u/g sampling indicate much higher grades. Why is the stockpile grade much lower?

JA: In any u/g operation, mining consistent tonnage facilitates the smooth procession of the overall mine plan. Mining widths and grades vary, as does the time it takes to mine a specified amount of ore on any given day or week. Therefore, miners keep a running stockpile of lower-grade ore to supplement the high-grade material sent to the mill. We believe our u/g stockpile is just that, partially diluted high-grade ore that never made it out of the mine when operations ended in 1913.

PE: You've spoken about the possibility of the Mother Vein crossing your property. If it does, what might that mean for the scope of the project?

JA: We are nearly certain the Veta Madre, or 'Mother Vein,' crosses our property at depth. The structure is regional in size, having a surface expression over 25–30 km. Meanwhile, we know that Fresnillo Plc (FRES:LSE) mined the Veta Madre to within 250 meters of our property border.

What we don't know is how well mineralized the Veta Madre will be on our property, or whether the El Pinguico vein structures, which host all the high-grade silver and gold mined on our property 110 years ago, intersects with that larger structure. If there's a meaningful intersection, it will be an extraordinarily compelling drill target!

PE: Are there nearby properties or mining assets to consider acquiring or otherwise gaining control of?

JA: Yes, we certainly have some ideas about that, but I really can't say more at this time. There is an important balance for VanGold regarding staying focused on the work we have ahead at El Pinguico, and yet maintaining our eyes on the horizon too. We're keenly watching for new opportunities within the 450-year-old Guanajuato mining camp.

PE: The gold price has breached US$1,900/oz, and silver has doubled to US$24+/oz since mid-March! Sentiment for precious metal juniors is quite buoyant. What could go wrong?

JA: Sentiment could hardly be better right now. That usually marks at least an interim top for precious metals. We saw a modest pause last week in some of the sector's strongest performing juniors. Preparing for that inevitable pull back, and taking advantage of it when it does occur, is certainly one of VanGold Mining's top goals. That's one of the reasons why we're raising cash now, better safe than sorry.

PE: Thank you, James, I think we covered a lot of ground here. I will be watching VanGold for updates. I would wish you good luck on your capital raise, but I doubt you need it. Stay safe and healthy.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

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Epstein Research disclosures/disclaimers: The content of this interview is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about VanGold Mining, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of VanGold Mining are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned stock and warrants in VanGold Mining, and the Company was an advertiser on [ER].

While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover any specific events or news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: VGLD:TSX.V, )

The Explosive Upside for Junior Gold Developers

Source: Michael Ballanger for Streetwise Reports   07/27/2020

Given current market conditions, sector expert Michael Ballanger makes his argument for investment in junior gold developers such as Getchell Gold.

Reading the hundreds upon hundreds of newsletter writers, bloggers, armchair analysts and professional money managers this past week skipping merrily down the road of self-aggrandizement, large meaty hands issuing congratulatory thumps squarely on their own puffed-out chests, I began to get the sense that a certain definable "froth" has descended upon us.

"Froth" is defined as "something that rises or overflows in a soft, light mass," as in a glass of beer or other carbonated soft drink, but for today's discussion, from a political perspective, "froth" is defined as "worthless or insubstantial talk, ideas, or activities." And nowhere was there less worth and insubstantial talk than in the Twitterverse, where the number of late claimants to the throne of the Golden Monarch has gone from three in 2019 to 3,000 in 2020 (and that's only in the English-speaking world).

I find it astonishing how people whom I have never heard of are popping up all over the place, offering to teach me how to trade gold and silver for $2,500/year, but are quick assure me that theirs is not "investment advice." Even the permabulls in gold and silver have taken to reminding us, through hourly podcasts and posts, that they "called the lows" last March, or last year, or last Shrove Tuesday, and that they are now up 1, 2, 3,000%, using a "proprietary system" available only to patrons or donors, refusing at all costs to ever refer to them as clients or customers or, God forbid, "subscribers."

If I get one more retweet of a bullish "call" made in 2016 qualifying the author for greatness and entry into the Precious Metals Hall of Fame, I swear I'm going to take my potato gun and aim it at the laptop.

Mark Hulbert pointed out a few days ago that gold market timers are more bullish today than they were at the top, in 2011, while the daily sentiment index for gold is at an alarming 91 and silver at an outright frightening 93.

Now, it does not mean that I am turning bearish on the precious metals (PMs), nor am I dumping my junior developers, but it does force me to keep a reasonably fat cash position in both the portfolio and trading accounts. Failing that, a modest hedge in the silver options could offset weakness in the event a correction materializes.

Whether it is rampaging bullish sentiment or blogospheric hubris, the time has arrived for increased caution, and even some profit-taking in the seniors and intermediate gold producers.

However, as the title of today's missive would suggest, it is not the time to exit the marginal producers and most certainly not the time to exit my beloved developers.

I am going to repost a section of my last GGMA Email Alert (2020-116), in which I made reference to the May 31, 2015, report by Vancouver-based Cipher Research, in which they laid out their base-case analysis for determining what an ounce of gold is worth to a junior developer sitting on a resource. The link to the report can be found here: The Real Value of Gold in the Ground.pdf.

From that report, the conclusions drawn are as follows:

➢ 80% of all transaction occur at $90/oz or less; over half (56%) occurred below $45/oz
➢ With the exception of a few outliers, there is little or no correlation to the price of gold
➢ The average price paid for gold in the ground was $63/oz
➢ The median price was $39/oz
➢ Slightly higher premiums were paid for projects in development or production, versus resource definition stage
➢ Average price is 33% higher ($52 versus $69/oz)
➢ Median is 18% higher ($34 versus $40/oz)
➢ There is surprisingly little difference in prices based on geographical location. (Although not measured, we believe that this is a result of the cumulative effect of all risk premium attached—for instance, high political risk in some jurisdictions may be offset by low permitting risk)
➢ The size of the resource was not positively correlated to the price paid (in other words, miners pay for the quality of the project, not the quantity of ounces)

At the time of issuance of this report, gold was sitting at around $1,215 per ounce and had endured four long years of a bear market, with the mining stocks (including marginal producers and pre-production developers) all suffering from lack of attention and consensus ridicule. As a result, the data upon which Cipher drew their conclusions was skewed to the downside by 2015 gold market conditions and the miserable state of the industry. Low prices and high costs ($60/barrel for oil) delayed or invalidated projects that, four years earlier, were given positive feasibility, a condition that did not begin to rectify until the following December, when gold finally bottomed at $1,045.

Fast forward to July 2020: Gold is approaching all-time high ground and oil is 33% lower than in 2015; conditions have dramatically improved. In fact, where on our planet are fundamentals so unarguably positive for any sector of the global economy?

ballanger7-26-2020.1

Now I offer a look at the gold price chart showing the point in 2015 where the benchmark was set at around US$40/ounce of gold. Since then, gold has advanced over 50.3%, or US$612 per ounce and has now forced the market to re-evaluate "in ground value per ounce" for junior developers.

The 2020 argument in favor of gold is well documented and strongly underpinned, thanks to the insanity of our serial debt-printing central bankers. Maddeningly, it also the mindless insistence of the banco-politico class to engage in policies intended to not only secure the status quo, but also to persuade large blocks of the youth movement across the political divide and into the MMT camp, where work is unnecessary and saving money is irrelevant because the government is ready, willing and able to hand it out without conditions. In fact, owning a "savings account" is something granddad did, and mom and dad did, and the only time a millennial used it was to access the trust fund they were provided.

For a myriad of reasons, while the senior and junior gold miners have had blistering years in performance, the acceleration in earnings and free cash flow from elevated gold and silver prices and lower energy costs is going to launch them into still a new paradigm. The more youthful of the institutional community, who have never owned anything vaguely resembling a gold or silver equity, are today being dragged, kicking and screaming, into positions that they were told were nothing better than a "pet rock."

So, while all the visible names like Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) and Newmont Corp. (NEM:NYSE) and Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) are being slowly acquired by an entirely new generation of investors, it is going to take a great deal of "catch-up" to bring these kiddies up to speed in terms of evaluating the high-cost marginal producer and the highly-leveraged junior developer—and therein lies the opportunity and the beauty of owning this lagging sector. It is the leverage to the gold price that creates ten-bagger and twenty-bagger potential.

I made the decision back in mid-April to switch my senior and junior gold exchange-traded funds (ETFs) to a basket of junior developer/explorers to capture the majesty of the inevitable rotation of large capital flows into the more speculative names. In prior cycles, timing such a move requires incredible patience and nerve, because if you are too early or too late, you wind up in trouble. Worse still, you can end up with "dead money" in the juniors while you watch the big boys ramp higher (bringing on varying degrees of suicidal tendency).

I would love to pronounce that my prescient abilities timed this year's rotation to perfection, but what actually made it effective was the arrival of the pandemic in March and then the panic-button reactions by the central banks and governments around the world. The chart below is a good illustration of the relative performance of GDX versus my two largest positions (Aftermath Silver Ltd. [AAG:TSX.V] and Getchell Gold Corp. [GTCH:CSE]) since mid-April.

ballanger_7-26-2020.2

Looking out to 2021, I contend that the $40/ounce valuation used as a benchmark in May 2015 is drastically too conservative in a world of $1,885 gold. If you find a junior developer with 1,000,000 ounces whose preliminary economic analysis threw out a 5% ROI [return on investment] at $1,215 gold, it experiences a geometric increase in the ROI figure when the new price is plugged into the model. On many occasions, 5% ROI comes 500% ROI, with net present values more than quadrupling all because of the leverage to rising prices.

Furthermore, when one factors in energy, you have a double whammy of impact on profitability, and while it is a boon for the majors, it is like a Red Bull amphetamine for the marginal producers and especially developers (like Getchell and Aftermath), where they have undervalued ounces worth many times more today than in 2015.

In the interest of full disclosure, I am shamelessly "talking my book" in using Getchell Gold's 1,069,000 ounces in my illustration of how revaluation of ounces in the ground can impact the share price performance. It also illustrates the kinds of deposits I want to own, because the marginal ones are still underowned while the high-grade ones are fully owned.

As an example, using Getchell Gold's 1,069,000 ounces as a minimum gold resource, the $40 per ounce figure implies a valuation of US$42.76 million, or US$0.459 (assuming full dilution of 93,010,619 issued) or CA$0.62 per share. With the last trade at US$0.31, there is still an implied discount of 32.5% to fair value, representing a compelling reason to continue to hold the stock and add to positions at current levels.

However, this methodology is using an outdated model, because the assumptions used in 2015 to arrive at that US$40/ounce number have changed dramatically, increasing the margin expansion outlook for the foreseeable future. I maintain the junior developers should today be using US$80 per ounce as a benchmark, and once gold achieves escape velocity beyond the 2011 highs at around US$1,900, a US$100/ounce-plus benchmark will be accepted for all developing resources.

I am not going to speculate, in this example, as to how many additional ounces will be established this year as drilling commences in two to three weeks on the highly prospective Tenneco, Pack Rat, and Colorado zones, or from the Revised Resource Estimate that will include these new proven gold-bearing structures. I am, however, going to speculate on the revaluation of Getchell's Fondaway Canyon Assets based upon July 2020 gold prices.

➢ Using US$80 per ounce, Getchell is fair value up to US$85.52 million, or US$0.919 or CA$1.23 per share.
➢ At US$100 per ounce, Getchell is fair value up to US$106,900,000. or US$1.149 or CA$1.546 per share.

There are dozens upon dozens of these types of companies that have defined resources, where irrespective of drilling, they will be revalued upward as gold rises. The key is in looking at the assumptions used in the calculation of ROI, with obviously the gold price and the cost of unleaded gas (or diesel) being the first stopping points.

I maintain that eventually, the junior explorers will also get discovered by this new generation of speculators, replacing the developers as the sector of choice as this golden bull matures and broadens out in terms of volumes and exposure.

For now, however, developers that were thrown under a bus back in 2015 because the resource was marginal at US$1,215 gold find themselves in greater and greater demand because of the lack of exploration risk and the certainty of tracking higher as those ounces are reranked by the analytical community.

Lastly, with the Van Eck Junior Gold ETF (GDXJ:US) now really only owning junior producers and very few (if any) non-producers, it forces the average investor to seek out the right opportunities rather than letting the ETF manager make the selections. Because the manager many times is prohibited from buying a company either too small or illiquid, the prices I pay are spectacular once those ounces are rerated, thus rendering these companies "eligible," but at levels many multiples higher than today's prices.

Conclusion: Buy the junior developers.

Originally published July 25, 2020.

Follow Michael Ballanger on Twitter @MiningJunkie.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger's adherence to the concept of "Hard Assets" allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Getchell Gold, Aftermath Silver. My company has a financial relationship with the following companies referred to in this article: Getchell Gold, Aftermath Silver. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 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.
4) 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Getchell Gold, Newmont Corp. and Aftermath Silver, companies mentioned in this article.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: AAG:TSX.V, GTCH:CSE, )

Explorer Acquires Rosales Copper Project in Chile, Drops Indiana Project

Source: The Critical Investor for Streetwise Reports   07/26/2020

The Critical Investor examines Golden Arrow Resources' swap of one South American gold project for another, and discusses the company's prospects for becoming a "multi-bagger."

Because Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE) renegotiated their Indiana gold project in Chile not too long ago [with] very favorable terms, I was surprised to recently read about the company dropping the project—"The Company also wishes to report that it is not proceeding with its option of the Indiana Gold-Copper project in Chile."—when announcing in the same news release the acquisition of the Rosales Copper project, located in Chile as well, which is less advanced, and will be discussed later on.

The Indiana project seemed very appealing to me, with a significant but still historic near surface resource of 607,000 ounces at 6 g/t gold equivalent (AuEq), and lots of exploration potential. Management estimated potential for at least 1 million ounces (1 Moz) AuEq, and in this gold environment it would have been a solid flagship project in my view.

They also managed, as mentioned, to amend the definitive agreement with the property owner substantially, bringing down the payments for the first two years from US$3 million (US$3M) to US$350,000, and increasing ownership after production decision from 75% to 100% at no additional costs.

In order to do so, management studied the available drill data in great detail, and obviously spent a lot of time on Indiana. Also keep in mind that a 2,500-meter (2,500m) drill program was defined, budgeted and planned for Q1/Q2, with first results coming out at the beginning of Q2, and a further minimum 2,500m drill program and commencement of preliminary engineering studies was intended before the end of 2021.

Of course, COVID-19 overturned this scheduling, but as all mining juniors have gone back to work these days, I expected Golden Arrow to do the same on Indiana. As I found it remarkable for the company not to proceed with this project, I asked them what exactly the reasons were.

VP Exploration Brian McEwen stated: "The success of Indiana depended largely on being able to put the project into production quickly to make the large vendor payments in the coming years. With the COVID-19 shutdown we were faced with several challenges. One was the vendor would not commit to an extended schedule for the payments, and secondly, there were illegal miners on the property taking ore from the high-grade vein. Rectifying these had costs, and it seemed there was no controllable end in sight. Presented with the options, management took the decision to walk away before incurring any more costs or making the next payment. Also, it should be pointed out that that we believe we have identified several other opportunities without the burden of heavy payments."

Too bad, as I don't see a few months of delay a problem over a period of three to four years, and I viewed the Indiana project as a very good, relatively advanced project to have in this positive metal market.

Let's have a look at the newly acquired Rosales copper project. The project was acquired with the view of benefiting the rapidly rising copper prices of late. Rosales is located adjacent to the operating, small-scale, underground Margarita copper mine, and both are positioned on a 3-kilometer-long structural trend called the Margarita Mine Trend.

The Rosales Copper project is situated in the Atacama Region, in a prolific mining region that, besides some of the largest and richest lithium brine deposits globally, also hosts multiple large precious and base metal mines. Large mineral deposit types in the area include: iron-oxide copper-gold (Candalaria, Mantos Verde), porphyry copper-gold (Inca del Oro), epithermal gold-silver (El Peñon, Guanaco) and Maricunga gold deposits (Cerro Casale-Caspiche, Refugio, Marte, Maricunga).

In general, the mineralization type found is stockwork, consisting of breccias, veins/veinlets, fractures and mantos. Management thinks there could be a possible epithermal system at depth. Considering the types of mineralization, it seems width is typically limited, and limited width means two things in general: relatively low tonnage and lots of drilling required. For copper targets, usually high tonnage and continuity are preferred.

I asked management about their motivation to pursue this type of greenfield exploration, which will take lots of time, potentially causing Golden Arrow to miss out on a significant part of the current copper run, over Indiana, which is a copper-gold project, enjoying both gold and copper enthusiasm.

The company stated, "This is high-grade copper, near-surface and could be advanced quickly. With high grade, lower tonnage is required to identify something economic. These types of project fly under the radar and we believe this to be an attractive target that cost us nothing to acquire."

The acquired claims (1,450 hectares) have seen no drilling, but did return high-grade sampling, up to as high as 5.74% copper (Cu). Based on these results, the company applied for another 824 hectares of adjacent mineral rights. Golden Arrow is starting a phase 1 exploration program that is expected to include detailed mapping and sampling, as well as ground magnetics and induced polarization (IP)/resistivity geophysical surveys. Results of this program are expected in August/September and, depending on the results, a drill program could be lined out and could start as early as October.

As the news release didn't mention any deal terms on the Rosales copper project, I asked management [to] elaborate on it.

According to them, this was open land and they staked it. There are other areas like this that they seek to acquire. It is nice to not have to be making payments to vendors instead of putting the money straight into the ground.

The company still has 950,000 shares of SSR Mining Inc. (SSRM:NASDAQ), worth CA$29.99M at the moment (July 23, 2020), after having sold 250,000 shares of the original 1,245,580 shares received from SSR Mining as partly compensation for the sale of the 25% interest in the Puna operation. Golden Arrow has about CA$4M in the treasury at the moment, and is fully funded for their 2020 exploration programs. According to management, the company has sufficient cash and cash equivalents to be able to take any project to preliminary feasibility study stage.

When looking at the chart of SSR Mining, it can be seen why these shares are a great and liquid asset to have, as the company is performing very well and is profiting perfectly of the current record prices of precious metals.


Share price SSRM.TO; 3-year time frame (Source: tmxmoney.com)

Golden Arrow has been slowly recovering now, on the back of a rather viciously developing precious/mining bull market. The share price has been lagging compared to most gold/silver stocks, and has lots of room to run with any half-decent drill result.


Share price GRG.V; 3-year time frame (Source: tmxmoney.com)

Although the 10% buy-back program was timed very well, it probably accounted for at least a part of the increase in share price.

As the company wasn't confined to the Indiana project, it was useful to get an update on the other projects by VP Exploration Brian McEwen.

  • Regarding the Tierra Dorada project in Paraguay, the upcoming drill program will be defined shortly. As a reminder, trenching results returned 89.5 g/t Au and 61 g/t Ag (silver) over 0.93 m, and 143.4 g/t Au and 95.8 g/t Ag over 0.58 m.
  • The Flecha de Oro project in Argentina has surface mapping and sampling underway, and will be followed by detailed mapping and trenching in Q2/Q3. As a reminder, the following numbers came from trenching so far:
    • 24.0 g/t Au over 2 m
    • 18.0 g/t Au over 0.7 m, including visible gold
    • 13.09 g/t Au over 5 m
    • 99 g/t Ag and 2.8% Cu over 0.2m
    • 129 g/t Ag, 3.5% Cu and 0.2% Bi over 1.2m

Further results will be announced in Q3. Argentina is still shut down for travel between provinces, but management is looking at some new opportunities.

With three exploration projects ongoing, a lot of news flow can be expected from Golden Arrow, and the best news, in my view, in the current environment, would be a set of spectacular drill results, considering the share price explosions of peers enjoying such results.

Conclusion

I had to admit I was a bit confused after reading about Golden Arrow rescinding the option on the Indiana project in Chile, which I clearly viewed as their flagship asset in the making. Especially after the successful renegotiation and the plans made for it, it came as a surprise.

However, according to management, it seemed things weren't proceeding very smoothly. With the new Rosales copper project the company maintains their Chile exposure, and the prominent copper angle seems well timed these days. Since Golden Arrow still owns almost CA$30M in SSR Mining shares, cash is not the issue, so many meters can be drilled. Let's see if management can convert the SSR Mining compensation into tangible drill results—hopefully the type of results that create the kind of enthusiasm that enabled lots of juniors lately to become instant multi-baggers overnight.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

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Critical Investor Disclaimer:
The author is not a registered investment advisor, currently has a long position in this stock, and Golden Arrow Resources is a sponsoring company. All facts are to be checked by the reader. For more information go to www.goldenarrowresources.com and read the company's profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Golden Arrow Resources, a company mentioned in this article.

Charts and graphics provided by the author.

( Companies Mentioned: GRG:TSX.V; GARWF:OTCQB; G6A:FSE, SSRM:NASDAQ, )

Lion One Intercepts $80,078 Au

Source: Bob Moriarty for Streetwise Reports   07/25/2020

Bob Moriarty of 321gold discusses Lion One's latest drill results.

I put out a short update on a few favorite companies on my site on Friday. That turned out to be excellent timing as Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) released assay results on Friday as well. The numbers were off the chart.

Hole TUDDH500 reported 12.7 meters of 46.14 g/t gold. In the text above the numbers it shows 7 meters but if you look at the interval it indicates 12.7 meters. That seemed incredible at first glance.

46 g/t gold

I kept reading and my eyes just about popped out when I saw 0.9 meter at 506.4 g/t Au. I should have calmed down but couldn’t when I saw the shorter interval.

506 g/t gold

Three feet of $30,955 gold is remarkable but a piece of last interval graded over a kilo of gold to the ton.

1310 g/t gold

Those vein intercepts are 75 meters above the anticipated target zone indicating this is probably a bigger system than first imagined. When a cubic foot of the last intercept is worth $8000, you have a giant hole already.

The majors are going to be all over this like white on rice. I doubt there is any way they could get a commanding position without paying through the nose. Lion One is going to be bought out way before they ever come up with an updated 43-101. Anyone who understands drill results and alkaline systems also is smart enough to know what time it is.

Lion One is an advertiser and I own a lot of shares. Right now it is my 2nd biggest position. I am adding more in this latest private placement. Do your own due diligence.

Lion One Metals
LIO-V $1.98 (Jul 24, 2020)
LOMLF OTCQX 117.5 million shares
Lion One website

Bob Moriarty
President: 321gold
Archives
321gold

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

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Lion One. Lion One is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Lion One. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: LIO:TSX.V; LOMLF:OTCQX, )

Copper May Be Entering a Golden Moment

Source: McAlinden Research for Streetwise Reports   07/23/2020

McAlinden Research examines the investment opportunity afforded by copper in the evolving pandemic and post-pandemic economy.

The coronavirus has disrupted copper mines and delayed new builds, throttling current and future supply. Meanwhile, demand is bouncing back as the world's biggest consumers of copper reboot their economies. Stimulus packages being unleashed across the world also promise to transform the long-term outlook, particularly with spending on copper-intensive green energy infrastructure.

Related Exchange-Traded Funds (ETFs): iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC); Global X Copper Miners ETF (COPX)

Copper has been on a roll in recent months. Today, the commodity is trading at a price of $2.87 per pound in the spot market, marking a 36% increase from March 22, when copper's price plunged to a five-year low of $2.10 due to a collapse in demand. In the securities market, the copper ETF (JJC) has gained 39% since stocks bottomed on March 23, while the copper miners ETF (COPX) has actually doubled.

To receive all of MRP's insights in your inbox Monday–Friday, follow this link for a free 30-day trial. This content was delivered to McAlinden Research Partners clients on July 16.

Following these impressive gains, we are right back to where we were at the start of the year. Copper's spot price is just 2% higher than on January 1, 2020, while JJC is up 3% and COPX is down 3%. In comparison, the S&P 500 is flat year-to-date. When looking at performance over a two-year horizon, the copper ETFs still lag the broad market. Over the past two years, JJC returned has +4%, COPX has returned -15%, while SPY returned +15%.

The big question now is whether further outperformance is possible after copper's recent gains. The answer is yes, based on three factors.

I. Post-Pandemic Recovery of the Global Economy

Industrial production is on the rise globally, as businesses resume their operations. [The July 15] data release from the Fed showed that U.S. industrial output surged 5.4% in June, the most since December 1959, beating market expectations. Factory production jumped 7.2%, and even more so in the beleaguered auto industry, where production of cars and auto parts surged 105%. Though U.S. capacity utilization increased 3.5 percentage points to 68.6% in June, that rate is below its long-run (1972–2019) average 80.1% and below January's level of 76.9%, so there's plenty of room for production expansion. The June ISM Manufacturing PMI index also suggests that factory output will rebound further.

A similar comeback in industrial production is taking place in China, and in the European Union. China's industrial production rose by 4.8% from a year earlier in June 2020, marking the third back-to-back month of expansion and the largest increase in six months, as factory activity picked up.

This is all positive for copper demand, as those three markets—China, the EU and the U.S.—account for 80% of the world's annual copper consumption.

II. Global Transition to Low Carbon Economy

From a longer-term perspective, copper stands to be a big beneficiary as the world transitions to a low-carbon economy. That's because renewable systems use about five times more copper than conventional energy systems. Electric vehicles (EVs) also require 2-4 times more copper than internal combustion engine vehicles. EV sales and the switch to renewables are only set to grow as many countries, especially in Europe, place the green recovery at the center of their stimulus packages.

Accordingly, copper should experience huge demand in coming years given its potentially expanding role in a green economy. The metal is considered a critical component in practically all green tech, from electric vehicles to wind- and solar-power technology.

III. The Supply Picture

On the supply side, analysts are projecting shortages in the future due to a dearth of investments in new mines. More recently, the pandemic's rapid spread across Latin America and worker strikes have led to supply disruptions in key producing nations like Chile. That's likely to result in lower production this year.

With output from some mines limited and demand picking back up, global copper stockpiles have been dropping since March. Inventories of copper in warehouses monitored by the Shanghai Futures Exchange stood at 137,336 tonnes on Friday, which is 64% lower than the peak of 380,000 tonnes reached around March 13. In LME-registered warehouses, copper inventories have fallen to 197,850 tonnes, down about 28% since March 13.

The Bottom Line

As an industrial metal with a wide variety of applications—from manufacturing to electronics and construction—copper is considered a cyclical commodity whose price fluctuates in tandem with economic cycles, rising when the economy grows and falling when the economy slows. As the world's biggest economies go into recovery mode, and given its potentially expanding role in an increasingly green global economy, copper's medium-term and long-term outlook appears increasingly positive.

As such, investing in copper now can perform triple duty in an investor's portfolio. It can serve as a bet on the 2020/2021 global economic recovery, a play on the secular shift from fossil fuels to renewables and a potential hedge for inflation, since copper typically rises when inflation is accelerating.

How to Gain Exposure

Investors can gain exposure to copper's rise through ETFs that track the metal's price in the futures market or by investing in copper producers, since the latter stand to benefit from higher prices.

The Global X Copper Miners ETF (COPX) invests in a diversified basket of about 30 copper miners. Meanwhile, the iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC) and the United States Copper Index Fund (CPER) offer exposure to fluctuations in the price of the physical commodity by investing in copper futures contracts. While JJC is structured as an exchange-traded note, CPER is structured as a commodity pool.

 McAlinden Research Partners McAlinden Research Partners (MRP) provides independent investment strategy research to investors worldwide. The firm's mission is to identify alpha-generating investment themes early in their unfolding and bring them to its clients' attention. MRP's research process reflects founder Joe McAlinden's 50 years of experience on Wall Street. The methodologies he developed as chief investment officer of Morgan Stanley Investment Management, where he oversaw more than $400 billion in assets, provide the foundation for the strategy research MRP now brings to hedge funds, pension funds, sovereign wealth funds and other asset managers around the globe.

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2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 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.
4) 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.
5) From time to time, Streetwise Reports 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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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This report has been prepared solely for informational purposes and is not an offer to buy/sell/endorse or a solicitation of an offer to buy/sell/endorse Interests or any other security or instrument or to participate in any trading or investment strategy. No representation or warranty (express or implied) is made or can be given with respect to the sequence, accuracy, completeness, or timeliness of the information in this Report. Unless otherwise noted, all information is sourced from public data.

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In Honor of Silver’s Epochal Breakout

Source: Clive Maund for Streetwise Reports   07/23/2020

Technical analyst Clive Maund charts the start of the "biggest silver bull market in history."

The purpose of this update is to celebrate and mark silver's powerful breakout from a giant base pattern that started to form as far back as 2013–2014, a breakout which has only happened during the past few days, July 21 and July 22, with Wednesday's advance finally seeing it break clear above the resistance at the upper limits of the base pattern. While this doesn't mean it can't drop back again, it makes it less likely, and even if it does, it is likely to soon turn up again.

Quite clearly, when you are only two days into a bull market that is starting after the completion of a six-year-long base pattern, the probabilities are very high that it has much further to go, both in respect to time and magnitude of advance.

Wednesday's breakout may very well have been triggered by the bellicose actions of the U.S. with respect to China in closing its embassy, or whatever it is, in Houston, which is a continuation of an increasingly hostile attitude to China, based on the U.S. attempt to tear down what it views as its main rival for global dominance.

Now, with its economy getting ever closer to imploding completely, the U.S. is looking to direct the mounting anger and frustration of its population toward a manufactured external enemy, which is what politicians always seek to do when their backs are against the wall.

Wednesday's action was another step on the road to a major war, which is a normal consequence of economic depression. In addition to that, we had the ludicrous and laughable assertion that Russia has been trying to hack coronavirus research secrets, which is just another irrelevant distraction.

Regardless of what actually triggered the breakout, it was a valid and powerful breakout, as we can see on the charts set out below.

silver13year220720

Not surprisingly, the effect of silver's breakout on all things silver was electrifying, with a good example being shown below, Kootenay Silver Inc. (KTN:TSX.V), which is a silver stock we went for back in May because its charts looked so strong, and which is already up 50%.

With the prospect of hyperinflation in the not too distant future due to relentless and increasingly desperate and extreme money-printing by central banks, the prospects for silver and silver investments have never been brighter as one thing we can look forward to is the biggest silver bull market in history by far.

This is a very good juncture at which to watch Mike Maloney's interesting and insightful new video on silver entitled Silver Soars–Where to Next?

Originally published on CliveMaund.com on July 22, 2020.

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

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author 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.
4) 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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 receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: KTN:TSX.V, )

Short Updates on Benchmark, TriStar Gold, Precipitate Gold and Lion One

Source: Bob Moriarty for Streetwise Reports   07/23/2020

With gold and silver "climbing to the moon," Bob Moriarty of 321gold discusses four juniors.

My readers may be shocked to hear that I have been exceptionally busy lately, as the metals seem to be climbing to the moon. Naturally the stories I follow are trying to make hay while the sun shines so I am forced into ganging some of those stories together else I will never catch up. There are probably 1,500 juniors in Canada all clamoring for attention and I can only type so fast.

These are all companies I have written about in the past and if you want to reread what I have said, go to my archives page and do a search for their name.

Benchmark Metals Inc. (BNCH:TSX.V; CYRTF:OTCQB) is in the midst of a 50,000-meter drill program at their Lawyer's gold/silver project in the Golden Horseshoe district in Northern BC. To date they have completed 10,500 meters of drilling this year. Results will start to come out in the next couple of weeks. They have added a third core rig to make a total of five drill rigs working. Expect a lot more gold and silver.

TriStar Gold Inc. (TSG:TSX.V) just closed a $9.2 million bought deal financing about two weeks ago. That will fund the exploration portion for their prefeasibility study scheduled for release early next year. Meanwhile they will begin a major drill program shortly.

Investors are going to have to read between the lines for the meaning of the latest press release from Precipitate Gold Corp. (PRG:TSX.V; PREIF:OTCBB) but I will give you a big hint. This is exactly what you want to see if you want to find another Pueblo Viejo gold deposit. With a $25 million market cap, PRG is a giant sleeper. Naturally the truth detector will be the drill rig but the company is coming up with the ground survey results that you want to see in a big deposit. Pueblo Viejo is the largest gold mine in the Americas and the 8th largest in the world. All shares in juniors are lottery tickets but the Precipitate lotto has a giant potential payoff.

Like Benchmark and TriStar, the market understands the potential and is willing to pay up for Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) with a market cap of about $220 million today. But Lion One owns a whole alkaline gold system in a region where such deposits are measuring 10-20 million ounces. Their latest report on drilling from the company just out a couple of days ago suggests they have found the feeder structure they have been looking for. Drilling is continuing and assays are pending.

I own shares in all of these companies and have participated in prior private placements. All are advertisers so I am biased. Do your own due diligence.

Benchmark Metals Inc.
BNCH-V $0.76 (Jul 23, 2020)
CYRTF-OTCBB 118.5 million shares
Benchmark Metals website

TriStar Gold Corp.
TSG-V $0.38 (Jul 23, 2020)
TSGZF-OTCBB 182 million shares
TriStar Gold website

Precipitate Gold Corp.
PRG-V $0.255 (Jul 23, 2020)
PREIF-OTCBB 105.7 million shares
Precipitate Gold website

Lion One Metals
LIO-V $1.88 (Jul 23, 2020)
LOMLF OTCQX 117.5 million shares
Lion One website

Bob Moriarty
President: 321gold
Archives
321gold

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

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Benchmark Metals, TriStar Gold, Precipitate Gold and Lion One. Benchmark Metals, TriStar Gold, Precipitate Gold and Lion One are advertisers on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Lion One. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: BNCH:TSX.V; CYRTF:OTCQB, LIO:TSX.V; LOMLF:OTCQX, PRG:TSX.V; PREIF:OTCBB, TSG:TSX.V, )

Stocks Disconnect from Economy, Gold Responds

Source: Adrian Day for Streetwise Reports   07/21/2020

Given the current uncertainties and recent market moves, money manager Adrian Day offers some thoughts on the macroeconomic environment.

Global stock markets zooming ahead amid historic unemployment and economic contraction is surreal. Half of the U.S. has been locked down, with economies virtually shut, a second virus wave appears underway and yet the stock market is almost back to February's all-time highs.

And this is not only in the U.S.; stock markets have rallied strongly around the world. We know that central bank money creation is the primary cause, but this dichotomy cannot continue indefinitely, at least without a meaningful correction. Meanwhile, gold—for sounder reasons than stocks—has outperformed and, notwithstanding anticipated volatility, will, we think, continue to do so.

The economic outlook is uncertain

The keyword for the economic outlook is uncertainty. The economy cannot resume the level of January after months of closures, not in anything like the near term. Some sectors will do well, but others will be very slow to recover—office space, for example, or malls. Many small businesses, such as restaurants, will try to do the job with fewer people.

Real unemployment is probably higher than the headline numbers suggest, as furloughed workers are counted as "employed." And it will get worse as restrictions from layoffs in the government payroll protection loans end. There's uncertainty about a second wave of the virus and potentially resumed restrictions on businesses. Already, over half of the U.S. population is seeing announced reopenings on hold or reversed.

There is as much uncertainty on the supply side of the equation as the demand. Both will shrink, which is why I do not think we shall see deep and sustained deflation as much as a shrinking economy, with the possibility of inflation later.

Fed policy will destroy the capitalist economy and more

One cannot discuss the economic outlook without discussing the Federal Reserve and other central banks. The dramatic decline in short-term interest rates; the huge explosion in the Fed's balance sheet, moving from $3.8 trillion to $7.1 trillion over the past year; and the moves by the Fed in rapid succession to buying investment-grade bond funds, then junk bond funds, then individual bonds, raise the question of what comes next. Are negative rates ahead on the next downturn? Where does QE (quantitative easing) Infinity take us? And is the Fed going to start buying equities next? And then we shall start to see selective "debt jubilees," with the government forcing different lenders to forgive certain types of debt.

The Federal Reserve is buying bonds of companies such as Coca Cola, Apple and Berkshire Hathaway. Why does the government need to lower Warren Buffett's cost of capital? And they are buying bonds of some foreign companies, including Daimler. Why? This unprecedented—and illegal, by the way—move by an arm of the government into the private financial markets is not receiving sufficient attention, in my view. It is the beginning of a very slippery and dangerous slope indeed.

More and more credit needed to sustain the boom

As with the drug addict who needs ongoing and increased injections to keep the high going, so too with a market dependent on easy money. The longer this continues the more devastating will be the consequences. Fed apologists will say the epidemic was unforeseen and they had to respond. But the truth is that the Fed was already boosting credit recklessly when Corona was just a Mexican beer. From September to February, Fed credit was growing at the fastest rate ever. We would have reached the current state eventually. When thinking of the Fed, one is put in mind of nothing as much as the saying, "When you are a hammer, everything looks like a nail."

Each Fed easing, never cut back in the good times, leads to the next crisis. The housing bubble was fueled by the easy money of the early 2000s, just as surely as the easy money policy following the credit crisis—and the failure to pull back after the recovery—led to the bubble in bonds and equities that greeted the start of the year. It was a bubble in search of a pin, and had the virus not come to these shores, there surely would have been another crisis and the Fed would surely have reacted similarly.

And if the Fed was unable (or unwilling) to return to normal after the dot-com bust, and despite pledges as early as 2014 to "return to normal," pitifully unable to do anything like that after QE1, 2 and 3, how can we possibly think they will do so after QE Infinity, and after buying bond funds and junk bonds, without causing massive distortions if they tried?

MMT fuels unrest and leads to chaos

All of this has dramatic effects not only on the economy and investments, but on society itself. It will lead to reduced economic activity and eventual inflation; further erosion of the value of the dollar and destruction of savings; a further explosion in debt. More and more the economy will be dependent on government spending, and individuals on government transfers. Monetary policy will distort prices, and therefore distort asset allocation, lead to excess risk taking and further debt. It increases government power, and with it the tendency to abuse that power, and reduces individual freedoms.

And it will, as it has in the decade after the credit crisis, further exacerbate the wealth gap, leaving behind a growing underclass and destroying the middle class, leading to protest, radicalized politics and social unrest. "Modern Monetary Theory"—not modern, not purely monetary, and not much of a theory—which is now firmly ensconced as government and Fed policy, leads ultimately to social division, violence and chaos. In extreme cases, it ends in war—either a war of aggression, or (by so weakening a society) by invasion, or (by so dividing a society) by civil war. Extreme debasement of the currency always, and everywhere throughout history, has done so, from the last Roman emperors, to the Jin Dynasty, the Stuart Kings and the aftermath of the Weimar Republic.

Reduced economic activity everywhere

The U.S. is not alone. Around the world, economies have experienced reduced economic activity on the different restrictive measures introduced. East Asia generally has fared better than the rest of the world. In Europe, the impact of the virus has varied widely among countries; Europe has the weakest banking sector of any major region while the single-currency Eurozone reduces flexibility. In Latin America, where different countries have their own problems, the virus has been particularly virulent.

In most countries, governments have responded with aggressive monetary and fiscal stimulus. Programs differ, but everywhere governments have introduced measures that are extreme by that country's standards.

Why are stocks ignoring the economic damage?

The market (per S&P) had the fastest 30% drop in history, followed by the strongest 50-day move ever, back very close to all-time highs. The dichotomy between a contracting economy—with high unemployment and business closings—and the zooming stock markets around the world is stark. The reasons are clear:

  • With interest rates so low around the world, traditional places to put money for safety and income, such as bank CDs and bonds, do not look attractive; stocks benefit.

  • Some are looking ahead and see a recovering economy. They think the worst is behind us. Stocks are forward looking.

  • And most importantly, when central banks create excess liquidity (by definition, liquidity in excess of the requirements of the economy) that money must go somewhere; there is excess liquidity beyond the wildest dreams of Greenspan and Bernanke. It has gone largely into equities.

Arguing against higher stock prices are two simple related issues. We will see weak economic news for the second quarter, and the economy, particularly employment, may not recover to where it was at the start of the year any time soon.

And stock market valuations are high. They were already high in February, but, despite reduced analysts' expectations, the U.S. market (per S&P) is selling at 26 times forward earnings. That would be a high number in the strongest of economies, but now, with sharp declines likely to be reported in coming weeks, with sluggishness for the next several months and with a great deal of uncertainty, that number is extreme.

The market decline we saw in March, though rapid, is mild compared with declines in periods of economic contraction in the past. And even at the March lows, the market was by no means cheap. It is possible that central bank liquidity trumps all other considerations. That may be true over the medium term. But it is almost inconceivable to think that the decline we saw in mid-March is all we are going to experience.

We agree with Mohamed El-Erian, astute chief economist for Allianz, who says, referring to central bank money printing, "I don't feel comfortable investing on that basis."

Near-term volatility expected

The truth is that the market has been very dependent on Fed stimulus for years now, both expecting and demanding it. Each attempt, however timid, at tightening has been met by a market hissy fit and more stimulus. In the near term, second-quarter corporate earnings season, coming soon to a theater near you, could produce some shocks and provoke a sell-off in stocks. At minimum, we expect individual stocks to be hit hard, and we anticipate volatility over this period.

And further out, we would not be surprised to see further, more protracted declines to new lows, perhaps after a year or more. This is not an unusual pattern after very sharp short-term rallies, as experienced most notably following the 1929 crash.

Resources have been hurt by shutdowns

Not surprisingly, most resources took it on the chin from the contraction in economic activity following the lockdowns and restrictions. Oil was the most hard hit, as demand was slashed amid a glut in production. Copper, "the metal with a PhD in economics," has not been as weak as one might have thought looking only at the economy. Prices did drop to their lowest level in three years, but for the year to date are down only 3%. The main reason has been the significant supply interruptions, particularly from Chile.

Gold, however, is a different story. Completing a seventh consecutive quarterly gain, concluding with the best quarter in four years, gold is above $1,800 for the first time since 2012.

Gold is undervalued—relative to the money supply, and relative to financial assets—and it is underowned. Given that gold is a very small market relative to global stocks and bonds, even a small move by investors into gold will have a significant effect on the price. That is what we are beginning to see now, with emphasis on "beginning." As more and more investors, small individual investors and large institutions alike, decide to put a part of their assets into gold, the price will move up significantly.

Gold stocks are still cheap; corrections are to be bought

As gold is undervalued, gold shares are undervalued against gold itself. And, despite the recent strong rally, they remain in the lowest 25 percentile in terms of price and valuations. As gold moves up, especially in an environment of low oil prices and generally low currencies (the two largest cost inputs in a mining operation), much of that increase flows to the bottom line. Mining companies, with a newfound discipline and a more favorable environment, are generating free cash flow for the first time in many, many years.

We remain somewhat concerned about the possibility of a pullback in the price of gold. I do not anticipate that such a correction would be particularly deep or long-lasting, but a pullback in gold itself would see meaningful corrections in the mining stocks, particularly after such strong short-term appreciation.

Will gold stocks fall if the broad market does?

Certainly, if we see a broad stock market decline in coming weeks, the gold stocks could initially fall with the market. Generally, gold stocks have been more vulnerable when the following conditions are present: the market drops sharply in a short period of time; there is a liquidity panic; gold drops; and the stocks are expensive entering the correction.

Generally, gold stocks have been less vulnerable when the broad market decline is slow and protracted; when it is more selective; when gold does not decline; and when gold stocks are not overvalued.

Based on those criteria, we may see a relatively short and shallow pullback, but it will be neither a crash nor the start of a long period of lower prices. Our list of "Current Recommendations" already emphasizes gold and silver stocks, but we would use any near-term pullback to add to positions.

Buy now? Sell now? It all depends

A newsletter provides one-size-fits-all recommendations: "buy this"; "sell this". (We try to differentiate by saying X is appropriate for conservative investors, Z for speculators.) But money management is not like that, whether you have an outside manager or are doing it yourself. One investor might say he has sufficient exposure to gold and silver even if there never is the opportunity to buy any more, whereas another investor, new to the sector, should step up now and at least take initial positions.

Buying this week

This week we are buying very little. For investors who do not own, we would buy Lara Exploration Ltd. (LRA:TSX.V) (0.76), which has corrected after a very strong move; and Kingsmen Creatives Ltd. (KMEN:SI) (0.205), which remains inexpensive. Some of the stocks on our list are expensive and ahead of themselves, such as Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), but we are not going to try to be clever and trade our position. An investor, however, will take many factors into consideration: the allocation to any single stock, whether it is held in a tax-exempt account (if he has a lot of tax losses) and so on.

Originally posted on July 19, 2020.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is "Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks."

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Lara Exploration, Kingsmen Creatives, Franco-Nevada. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: All. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 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.
4) 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.
5) From time to time, Streetwise Reports 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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lara Exploration and Franco-Nevada, companies mentioned in this article.

Adrian Day's Global Analyst disclosures: Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor's opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2020.

( Companies Mentioned: FNV:TSX; FNV:NYSE, LRA:TSX.V, )

Blackrock Hits Bigly Silver in Nevada

Source: Bob Moriarty for Streetwise Reports   07/21/2020

Bob Moriarty discusses the company's off-the-charts drill results at its Nevada silver project.

Blackrock Gold Corp. (BRC:TSX.V; BKRRF:OTCMKTS) announced the first drill results from their latest program at their 100% controlled Tonopah West silver project in Nevada.

Hole TW20-001 showed two massive silver intercepts. The highest grade was the 2,198 g/t Ag over 3.04 meters.

Silver

Another layer that was the actual target of the drill hole reported 29 meters of 965 g/t Ag where it intersected the Victor silver vein.

Silver

No wonder the shares were up 102% on the day.

The company has about 20 million warrants outstanding with an average exercise price of $0.25 and some warrants can be forced so the company can count on having another $5 million brought it.

It might be time to change the name of the company from Blackrock Gold to Blackrock Silver because they just brought the Tonopah silver district back to life in a bigly way.

Blackrock is an advertiser. I have participated in several private placements so naturally I am biased. Their website is pretty good and presentation excellent.

Blackrock Gold Corp
BRC-V $0.87 (Jul 20, 2020)
BKRRF-OTCBB 69.4 million shares
Blackrock Gold website

Bob Moriarty
President: 321gold
Archives
321gold

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

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Blackrock Gold. Blackrock Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: BRC:TSX.V; BKRRF:OTCMKTS, )