Canadian Palladium Makes a Debut

Source: Bob Moriarty for Streetwise Reports   02/12/2020

Bob Moriarty of 321gold discusses the name change and prospects for Canadian Palladium Resources.

I first wrote about a company named 21C last May. The company has a pair of "green energy" projects, palladium in Canada and cobalt/copper in Europe. And easily had the worse name of any company I ever knew. I hated the name 21C. What exactly did that mean?

Well, no thanks to me, the company changed the name to one of the very best names I have ever heard, especially valuable right now. They are now Canadian Palladium Resources Inc. (BULL:CSE; DCNNF:OTCQB) with the same symbol, BULL-V. Good timing as palladium went on a tear last week with prices touching $2602 USD before settling down. I would be quite comfortable with a correction; I hate it when any commodity goes curvilinear.

South Africa has gone stupid and socialist. What the government charges for electricity is lower than the cost of production. The mines across the country are getting killed with a constant lack of power. South Africa produces 78% of the world's platinum and about 45% of the world's production of palladium. We easily could have a multi-year shortage of both metals. Right now the near contracts for palladium carry a premium to the distant months indicating a severe shortage of the metal.

There are only a few juniors working in the platinum palladium space. Palladium has had a hell of a run lately while platinum has been about as exciting as watching paint dry. Personally I'd like to see the entire precious metals marketplace have a nice scary correction, bottoms are easier to see. But month after month the metals just keep climbing.

I love the fact that 21C changed their name to something highly meaningful. Just knowing what the company is about will bring in new buyers in what is a small area of the metals.

Canadian Palladium is well cashed up, just having completed a $4 million dollar placement as well as having Eric Sprott as a major investor. In the recent private placement the company issued 33 million shares and 33 millions warrants exerciseable at $0.18 which are already at the money. Should the price continue higher, that would bring in an additional $6 million which would pay for a lot more drilling. Days ago the company announced a 10,000 meter drill program designed to expand an existing 523,000 Pd ounce equivalent resource. Drilling has commenced.

With an $18 million market cap and $1.1 billion worth of metal in an inferred resource, Canadian Palladium is well positioned for an advance on any real success in their ongoing drill program. I don't know if the palladium shortage reflects a real lack of physical metal but for now and at today's price for palladium BULL looks like a good bet if you like the numbers on the metal.

Canadian Palladium is an advertiser and I have participated in a private placement in the past. Naturally that makes me biased so do your own due diligence.

Canadian Palladium
BULL-C $0.18 (Feb 12, 2020)
DCNNF-OTCQB 100.3 million shares
Canadian Palladium Website.

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: Canadian Palladium. My company has a financial relationship with the following companies mentioned in this article: Canadian Palladium 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: BULL:CSE; DCNNF:OTCQB, )

‘The Rock’ Exploring for Copper and Gold in Canada

Source: Ron Struthers for Streetwise Reports   02/12/2020

Ron Struthers of Struthers' Resource Stock Report shares his thoughts on gold and the coronavirus, and profiles Rockridge Resources, a company with an advanced-stage copper project and a high-grade gold prospect, both in Canada.

Gold is about to soar in price because of a worldwide misinformation campaign. So far the effects from the coronavirus are being mostly ignored by the markets. There seems to be hope that this virus will be contained or maybe it is denial of economic damage it will, and could cause.

Furthermore we are getting statistics from a government that is notorious for a lack of transparency.

The Chinese government probably does not even know how bad it is. The reported amount dead already exceeds SARS and the death rate of 2.5% may compare low but it is not if multiples more contract the virus. There is a website in China called Tencent, it is like Google or Facebook here. Tencent posted some numbers about 10 times greater that government statistics. Why would they be so far off, fake news but within hours the post taken down.

The Lancet in UK, a prestigious medical journal, did a study and used a model based on city population and travelling, etc. Based on hard data and a past reliable model, it came back 5 to 10 times worse than official China government statistics. We have two separate entities that produced results way higher than government stats. Also looking at what the people are seeing there and reporting sounds far worse than government stats.

They cannot even keep up to the death count as bodies are disposed of without confirmation testing. I have no doubt the situation is far worse than government reported stats. Remember, it is the government's job and best interest whether here, Europe or China to promote stable economies and markets.

The best solution is a vaccine, but that usually takes two or three years, even if they get it in six months, there is the distribution and administering. China's biological warfare weapons lab is in Wuhan, which is ground zero. What are the possibilities this is a leak from that lab? Let's hope not, but China is not co-operating with the World Health Organization either, and that does not help the situation.

Symptoms don't show for 10 to 14 days, which makes the whole containment initiative very difficult. The current estimate has 60 million people under quarantine and most travel is at a standstill. You have probably heard of some of the effects like Starbucks closing half their stores in China.

China is the manufacturing engine of the world and we are relying on them for so many goods that few realize. Practically all the smartphones are made there and what happens to a company and stock like Apple when they have a severe shortage of products to sell? This is just one example out of thousands. China is a manufacturing hub so it relies on transportation of goods into the country to assemble, then shipping finished goods out. If factories close or transportation halts, it does not just slow things down, it grinds it down to zero.

The economic impact could be catastrophic. What if markets start to price in the worst? China's and the world economy were already slowing ahead of this. The U.S. is doing the best in the world but still GDP is only around 2%. This coronavirus is going to get much worse before it gets better and it is happening in an already weak economy. We are a few months away from seeing any impact; that could start showing with Q1 data.

Slowing economies will results in more QE and a quicker move to zero interest rates. U.S. stock markets are frothy at record levels and the balloon is seeking a pin. These factors are all positive to gold and the price chart is just itching to break to the upside. I commented previously that I wanted to see a close above $1600 to confirm a break out, but let's call a spade a spade. Since gold broke higher in early January the chart looks like a consolidation above the previous high. This usually results in higher prices. Now is an excellent time to add both producers and quality junior gold companies to our portfolio.

This underpriced junior has an advanced stage copper project in the Flin Flon VMS belt of Saskatchewan and a high-grade gold prospect in the Timmins gold camp, Ontario. The gold project is the current focus as they are just starting a drill program. The company's strategy is to acquire projects in historical and prolific mining districts, apply modern exploration techniques to test new geological models and prove discoveries.

Rockridge Resources Ltd. (ROCK:TSX.V; RRRLF:OTC) (The Rock)
Recent Price $0.16
52 week trading range $0.13 to $0.39
Shares outstanding 33.9 million, Fully diluted 50.3M

Highlights:

  • Knife Lake Project - Flin Flon district of Saskatchewan which is ranked #3 in the world by Fraser Institute
  • Over 300 drill holes for 43-101 resource estimate
  • Near surface Indicated resource of 3.8M tonnes at 1.02% Cu Eq and Inferred resource of 7.9M tonnes at 0.67% Cu Eq
  • Raney Gold project SW of Timmins, best drill intercept 6.5 g/t Au over 8.0 meters
  • New geological model indicates south dip (previously thought north)
  • Very limited drilling and open on strike and depth
  • Strong management with extensive experience, some highlights below

Management - highlights

Grant Ewing, P.Geo, CEO, is a geologist with over 25 years of experience in the mineral industry and the last 10+ years in senior executive roles. His extensive knowledge base covers the entire mine development cycle, from early stage exploration through to production, in several different commodities. Strong merger and acquisitions, corporate development, and capital markets knowledge complement his mineral industry experience.

Recently, he was president and CEO of Kiska Metals (2014 to 2017) until it was acquired by AuRico Metals, where he continued as vice president exploration of AuRico Metals until it was acquired by Centerra Gold for approximately $300 million. Prior to that, he was president and CEO of Acadian Mining (2010 to 2014) until its sale to an international mining company. Atlantic Gold later acquired and is currently developing the projects that Acadian advanced through the discovery and resource development stages.

Jordan Trimble, president and director, has worked in the resource industry in various roles with numerous companies specializing in management, corporate finance/strategy, deal structuring and capital raising. He is the president and CEO of Skyharbour Resources Ltd., and was previously the corporate development manager for Bayfield Ventures, a gold company with projects in Ontario that was successfully acquired by New Gold (TSX: NGD) in 2014. Bayfield made a high-grade gold and silver discovery at its Burns Block property in the Rainy River district, which is now a part of the producing Rainy River Mine. Through his career Trimble has founded and helped manage several public and private companies and has been instrumental in raising substantial amounts of capital for mining companies with his extensive network of institutional and retail investors.

Ron Netolitzky, strategic advisor, has had an illustrious career in the mining and exploration industry with over 40 years of experience and having been directly associated with three major discoveries in Canada that subsequently went into production: Eskay Creek, Snip and Brewery Creek. Netolitzky has been honored with the Prospector of the Year award from the PDAC, and Developer of the Year award from the BC & Yukon Chamber of Mines. In 2015, he was inducted into the Canadian Mining Hall of Fame.

Joseph Gallucci, MBA, B.Comm, director, is a capital markets executive with over 15 years of experience in investment banking and equity research focused on mining, base metals, precious metals and bulk commodities on a global scale. Gallucci is currently the managing director and the head of mining investment banking at Laurentian Bank Securities Inc. His career has spanned across various firms including BMO Capital Markets, GMP Securities, Dundee Securities, and he was a founding principal of Eight Capital where he recently led their Mining Investment Banking Team.

Richard Kusmirski, P.Geo, M.Sc., director, has over 40 years of exploration experience in North America and overseas, and has actively participated in the discovery of a number of uranium, gold and base metal deposits. For several years, in his capacity as exploration manager, he directed Cameco Corporation's (TSX: CCO) uranium exploration projects in the Athabasca Basin. In 1999, Kusmirski joined JNR Resources becoming VP of exploration in 2000. Subsequently, he directed the exploration program that led to the discovery of the Maverick Zone on the Moore Lake uranium joint venture in the Athabasca Basin in Saskatchewan with partner Kennecott Canada. Kusmirski became JNR's president and CEO in January of 2001. In February of 2013, Denison Mines Corp. (TSX: DML) successfully acquired all of the outstanding shares of JNR by way of a friendly all-share take-over bid.

Raney Gold Project, Timmins, 100% option

The property is located in Ontario, 110 km SW of Timmins, on the eastern side of Raney Lake. The property is accessible by highway and secondary roads. It is in the Archean Swayze Greenstone Belt, which is a part of the Abitibi Greenstone Belt that hosts the world-class Timmins and Kirkland Lake gold mining camps.

The property has excellent access and infrastructure and is accessible by paved and forestry roads. Work by MPH Ventures in 2009 and 2010 consisted of trenching and sampling, induced polarization (IP) surveys, followed by drilling. MPH Ventures completed four separate phases of drilling on the Raney Project between early 2009 and early 2010. Hole R-09-08 returned 6.5 g/t Au over 8.0 meters, and established a 50-meter strike length for gold mineralization, extending from historical hole 99-01 to RAN-08-04.

  • Hole R-09-011 intersected 4.7 g/t Au over 3.0 meters, including 11.5 g/t Au over 1.0 meters.

  • Hole R-09-14 intersected 1.43 g/t Au over 2.25 meters, extending mineralization 100 meters west of the original discovery.

This zone needs to be tested for continuity with additional drilling, at and below the 150 meter level. The presence of a gold system as identified on the Raney Gold Project would suggest that the remainder of the project should be explored for additional gold structures. This graphic from the company's presentation will give you a good picture of the limited area drilled and potential for expansion.

If The Rock's new geological model proves correct we could see much longer drill intersects and higher grades at depth.

Last week The Rock announced plans to mobilize and commence an exploration drill program at its Raney gold project. Chenier Drilling Services Inc. has been contracted to conduct the drilling program and will mobilize its equipment for the program in mid-February. Chenier Drilling has carried out drill programs for IAMgold at the nearby Cote project. An exploration permit for the program is in hand that provides for exploration activities including geophysical surveys and diamond drilling to be conducted over three years.

Planned drill program summary

Historical drilling at the Raney gold project focused on identifying near-surface gold mineralization along an extensive alteration zone. Three sub-parallel and closely spaced mineralized zones of quartz carbonate alteration with quartz veining, pyrite, pyrrhotite and occasionally visible gold have been outlined. The drilling to date suggests the possibility of steeply plunging shoots of mineralization with reasonable widths open along strike.

A compilation and interpretation of historic data have resulted in the development of a new geologic model for the project. This new model indicates that the mineralized zones may have a steep south dip orientation versus the historical model that showed a steep north dip. Continuity between the mineralized zones correlate better along strike and down dip with the new model. The strike potential of the mineralized zones may be expanded as some of the historic exploration drill holes would have missed the target zone with the new geologic model.

The planned phase 1 exploration drill program will entail approximately 2,000 meters in 7 to 10 holes. The initial drill holes will target the zone that produced the best historical intercept of 6.5 g/t gold over eight meters. This zone occurs below the 100-meter level and is open for expansion. Mobilization of the drill will occur in mid-February with the drilling program expected to take approximately 60 days to complete. Updates from the field and drill program will be provided as the program progresses.

While the Raney gold project is the near-term focus, The Rock's other asset is substantial and provides a solid base valuation for the company even if the current stock price is showing little value.

Knife Lake Project, Saskatchewan, 100% option

The 85,197 hectare Knife Lake Project is 130km north-northwest of Flin Flon and 45km north of Sandy Bay. A new power line 16km from the deposit area greatly enhances the project's infrastructure. Since the initial discovery of mineralization in 1915, the Flin Flon camp has produced over 170 million tons of sulphide ore from 31 VMS deposits worth in excess of $25 billion dollars (2002 NRC, Current Research). Over 50% of deposits in the camp have been advanced to production, which have led to 86 consecutive years of mining. More recently, activity in the region has picked up including Rio Tinto's $30 million earn-in option on the Janice Lake project northeast of Knife Lake, Glencore helping advance the McIlvenna Bay project through a feasibility study, Hudbay's new high-grade discovery near the Lalor mine, and Greenstone's $29 million strategic investment in Rockcliff Metals to advance and develop several VMS deposits around Flin Flon and Snow Lake.

The Knife Lake Project area is an advanced-stage copper, silver, zinc and cobalt exploration property with extensive exploration completed from the late 1960s to the 1990s. Prior to The Rock's involvement, the last documented work program was completed in 2001. Over 300 holes provided data for the first NI 43-101 resource estimate.

Knife Lake NI 43-101 resource estimate provides excellent anchor for the project:

  • Indicated resources: 3.8 MT @ 1.02% Cu Eq.
  • or 3.8 MT @ 0.83% Cu, 3.7 gpt Ag, 0.097 gpt Au, 82 ppm Co,1740.7 ppm Zn.
  • Inferred resources: 7.9 MT @ 0.67% Cu Eq.
  • or 7.9 MT @ 0.53% Cu, 2.4 gpt Ag, 0.084 gpt Au, 53.1 ppm Co, 1454.9 ppm Zn.

Rockridge completed the first work program in the last ~20 years in 2019. Results included 2.03% Cu, 9.88 g/t Ag, 0.19 g/t Au, 0.36% Zn, and 0.01% Co (2.42% CuEq) over 37.6m beginning at 11.2m in hole KF19003.

The deposit is a remobilized portion of a presumably larger "primary" VMS deposit; most of the historical work has consisted of shallow drilling at the deposit area with little regional work carried out and limited deeper drilling below the deposit. There are 11 highly prospective priority targets and numerous second priority targets. The 2019 summer field exploration focused on refining three priority targets noted below. The field program included geological mapping, geochemical sampling and soil sampling.

Gilbert Lake target area is west of the Knife Lake deposit and is +14 km of highly prospective VMS stratigraphy, shallow EM conductors with favorable alteration and mineralization.

Scimitar Lake target area is east of the deposit and is 3.4 km of prospective VMS stratigraphy with EM conductors. The majority of conductors are untested along strike and at depth.

Machete is located north-northwest of the deposit and is +10km of prospective VMS stratigraphy with ab airborne EM anomaly. There is no documented exploration on this target.

There is strong discovery potential in and around the deposit as well as at regional targets on the property. The Rock plans to use modern exploration techniques and methods to make new discoveries.

Financials

Last financials as of October 2019 show almost $400,000 cash and no debt. Since then The Rock raised $1.04 million in a private placement with 3,210,000 units at 12.5 cents per share and 4,572,715 flow-through units at 14 cents . Each unit has a 1/2 warrant with a whole warrant exercisable at 25 cents for three years. The company is well funded for the current drill program and beyond.

Summary

I have nicknamed the company "The Rock" not just because of the symbol but I believe the company is rock solid and so is the investment. The management team is extensive and has experience with juniors that were bought out for their discoveries. The stock value is underpinned by its advanced copper VMS deposit, Knife Lake in Flin Flon, and also has upside there given it is a remobilized deposit. There is more upside with the Raney gold project the company is about to drill, as well with the new geological model. The company is relatively new as it acquired its first project, Knife Lake, in November 2018. The share structure is very good with just 34 million shares outstanding and with strong insider ownership.

The company is focused on copper and gold, which I believe is a good combination. Large copper deposits have become very hard to find and copper has a bright future as the world becomes electrified, especially the growing demand for electric vehicles. With years of inflated markets, easy monetary policy and heading to zero interest rates, the bull market in gold has a long way to go.

Given the large land package The Rock has northwest of Flin Flon, additional discoveries are likely. The stock was about double the current price last year based on Knife Lake. We will soon have news flow from drilling at the Raney Gold project and since a discovery has already been made, the odds of good drill results are high. If the company's new geological model proves correct there could be some very pleasant upside with the drill results.

The stock chart looks very good. The stock broke the down trend channel in early January and the recent pull back from the 23 cent high is a very good entry level. It is also not much above support I see around 14 cents so it appears there is very little downside.

Ron Struthers founded Struthers' Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 - $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.

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Disclosure:
1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: I currently own 40,000 shares of Rockridge Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Rockridge Resources is an advertiser at playstocks.net. Additional 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 sponsors of Streetwise Reports: Skyharbour Resources. 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. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources, a company mentioned in this article.

Charts and images provided by the author.

Author's Disclosures: Copyright 2020, Struthers' Resource Stock Report. All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

c. Copyright 2020, Struther's Resource Stock Report

( Companies Mentioned: ROCK:TSX.V, )

Irving’s Hole 10 Had Great Results

Source: Bob Moriarty for Streetwise Reports   02/10/2020

Bob Moriarty of 321gold discusses this company's latest drill results.

There are times I want to grab the average investor by the stacking swivel and give them a good hard shake. While the shares are up about 35% since the first of the year, they took a 15% tumble on Friday when the company announced the first deep hole.

Strong investors in Irving should wave at the weak hands and remind them to not let the swinging door bang them on the butt on their way out.

On January 17th Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB) released results from seven holes drilled at the Omui Mine. Six of the holes delivered significant results. These were shallow holes and not expected to hit much. The intercepts exceeded expectations.

Hole 10 was the first deep hole drilled on the project at either the mine or the sinter. It was intended to intercept an attractive target revealed by the CSAMT program conducted by Newmont's top guys. Quinton Hennigh has always wanted to drill deep, believing the goodie locker would be located deeper than 350 meters.

Quinton did give some hints in the press release about Hole 10 saying numerous quartz veins were intercepted and at least nine revealed particles of electrum. When the Hole 10 results came out on Friday, the company reported having intercepted 21 individual Au-Ag veins. Hole 10 was actually the very first hole to reach the primary target zone.

The weak hands promptly sold the shares down 15%. Sometimes you just can't fix stupid.

Hole 9 was another shallow hole and it had results worthy of mention. The assays from 9 and 10 came back together so they were released together.

From 190.0 to 190.8 meters down hole results over the 0.80 meters showed 46.3 g/t Au and 22.1 g/t Ag. That's $2350 per ton rock.

Hole 9

Hole 10 started off with a bang with the first three meters from surface showing 27.0 g/t Au and 40.5 g/t Ag. That's $1386 rock.

Hole 10

From 117.0 to 118.1 meters down hole came up with 29.6 g/t Au and 36.5 g/t Ag over 1.1 meters. That's $1515 rock.

Hole 10

That last intercept included 0.30 meters of 96.5 g/t Au and 65.7 g/t Ag worth $4,908 rock.

Hole 10

The system appears to have a silver rich pulse as well as the gold rich pulse. From 454.8 meters to 455.1 meters assays showed 26.2 g/t Au and 2970 g/t Ag over 0.30 meter. That's $3,010 rock.

Hole 10

You will never make money in investing by being smart. You make money by realizing when others are being stupid.

This is the best initial drill program that I have ever seen. But the adventure is still ahead of Irving. At some point these numbers will get really boring. That might be a good time to sell.

My numbers indicate that 90% of the shares are in the hands of the top dozen shareholders. What goes down will go up. And quickly.

Irving is an advertiser. I have bought shares in the open market and in every private placement. Naturally I am biased.

Meanwhile I have been making belt buckles out of slabbed material that Quinton sent me.

Buckle 1

Buckle 2

Buckle 3

Irving Resources
IRV-C $3.85 (Feb 7, 2020)
IRVRF OTCBB 53.4 million shares
Irving Resources website.

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: Irving Resources. My company has a financial relationship with the following companies mentioned in this article: Irving Resources 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 Irving Resources, a company mentioned in this article.

( Companies Mentioned: IRV:CSE; IRVRF:OTCBB, )

The Great Dichotomy

Source: Michael Ballanger for Streetwise Reports   02/09/2020

Sector expert Michael Ballanger sees something "terrifying" in the charts for copper and long-term bonds.

One of the advantages of being a sexagenarian is that after forty years investing in stocks, bonds, commodities, and currencies you have a pretty good idea when something is not exactly "right." If you have lived a good, normal life and you still have decent control of over your mental faculties and bodily functions, you remember moments in time that impacted your sensibilities, not unlike your first crush on a girl, or that final exam, or an authoritarian coach's dressing-down.

However, given my chosen profession, nothing gets more indelibly etched into one's psyche than a big price "move" in something one owns. Be it a loss or a win, one can recall all the inputs that created that "move" and, sometimes elatedly and sometimes sadly, one can recall all of the ramifications and repercussion from the "move." You will, later in life, regale in the joy (or sorrow) of recounting the story of the "move" until people roll their eyes in angst upon being subjected to their ninth or tenth serving.

Of course, one of the disadvantages of being a sexagenarian is that over time, one forgets (or imbues) portions of the story, usually in favor of its historical significance or personal accolade. But, alas, that is an anecdote for another day. What I wish to discuss with you all today is that my geriatric power of recall and my olfactory rot-sensor are telling me that something is definitely not "right."

This pervasive feeling of dread originates from this perversion known as "the stock market." where our banker-politico alliance has conspired to distort its historical role as a barometer for the economy and instead use it as a tool for manipulating consumer (and voter) behavior.

The practice of using the Working Group on Capital Markets to alleviate concern in the minds of iPhone-buying citizens through the constant and criminal levitation of stock prices (as shown above in the "All is well!" chart), and the capping of gold prices, has now made the barometric role of natural price discovery a thing of the past, a distant memory, a figment of sexagenarian imagination. That young investors can boldly go where no man has gone before in terms of risk discounting (or risk ignorance) is a moral hazard of utmost consequence and danger.

It is said that copper has a PhD in economics, and since it is such a gargantuan global market, it is essentially immune from the whims of the banker-politico lever-pullers. As such, it has been screaming "Danger!" for most of this very young 2020. This swoon in the world's #1 industrial metal is comparable to the crashes in 2001 and 2008, and similar recessionary periods such as 1980–82 and 1973–1974, and warns of a rapidly slowing global trend.

Actually, copper has been moving straight south since mid-2018, but there hasn't been as much as a peep from the hallowed halls of the Wall Street Journal or the sacred studios of CNBC, because to do so would oppose the national narrative. To wit, it is this national narrative that really gets on my wick because my training from the pre-2000 period of financial sanity has me constantly on the lookout for things that just aren't "right." To have young people diving into overinflated stock funds (and housing) because global growth is "healthy" is somewhat warped and totally bereft of logic.

We can look at charts of the Fed balance sheet, or national debt, or China's purchasing manager indexes (PMIs) and all arrive at various (bullish) conclusions of all shapes and sizes. But there is one chart in all of the financial universe that tells me what the smartest people in the world are doing with their "big wallets," and that is the chart of long-term bond yields. If copper has a PhD in economics, then bond yields would be the academic masters that wrote the books copper studied en route to its degree.

Long-term yields are different than short-term yields because the former are demand-driven while the latter are policy-driven or "administered." The Federal Reserve maestros can play Pac-Man with short-term interest rates, but they can't with long-term yields because over the long term, yields will move to levels governed by fear. And it is fear and fear alone that drives the risk-free rate of return for holders of all the wealth in the world.

Accordingly, it is this next chart whose eardrum-splitting air raid siren is drowning out the blips and beeps of the copper chart or the ding-dong of the stock chart without a trace of indecision or reflection. Long-term yields are moving lower and they are moving lower fast. That, my friends, reeks of a sense of urgency verging on panic, and it began long before the coronavirus arrived.

The chart below is truly "The Great Dichotomy."

It is this Great Dichotomy that terrifies me, and the one chart that should be required reading for everyone participating in the world of financial speculation—and a rote memory prerequisite for the all serious investors.

To put this in perspective, you are afflicted with a certain medical condition and there are ten people in a room all telling you what medicine to take. You can heed the younger guy with the tattoos and the leather chains smoking a reefer, or you can listen to the older, quite hale gentleman in the white coat and glasses. One is telling you that you are fine while the other says you need some rest. One is telling you that "All is well!" while the other is telling you to go directly to the emergency ward. Failure to respect dichotomies such as this can lead one to disaster and financial ruin.

If it was only copper, or only elevated relative strength index (RSI) readings, or only a global pandemic, one could a write it off as "a buying opportunity," and take the tack of patience and calm, moving forward into battle with a stiff upper lip and stoic resolve. This, however, is not a one-off "event-risk" situation that will eventually fade, leaving the dance floor wide open for above-average capital gains and central planner-entitled prosperity. Long-term yields do not lie. You can discount virtually everything else in the universe of chart-ology, but you dare not doubt that one simple dichotomy shown above.

Stocks are being priced for massage parlor perfection, but bond yields are being priced for a nuclear winter—andthat is how I am proceeding. Caution over greed. . .

Now, last week was a the second-most blatant case of intervention by the banker-politico alliance, exceeded only by the 2008 bank bailout and stock levitation, and slightly ahead of the Christmas 2018 activation of Smilin' Stevie Mnuchin's Plunge Protection Team (PPT) campaign. With stocks breaking down on the eve of the impeachment vote and on the crest of the coronavirus wave, China set the table with trillions of USD-equivalent yuan liquidity jolts in order to prevent a microbe-triggered meltdown in its capital markets, matched majestically by similar actions from its U.S. counterparts. The result was a near-magical, one-week levitation of 2.46%, the biggest advance of this duration and amplitude in two-odd years. Praise the Lord!

When I look at a chart such as this, I am inclined to default to a well-honed suspicion, and in order to decipher the true meaning of such an advance, I turn to gold and fully expect that these collusive cretins would have engineered a countertrend takedown of equal magnitude. But while gold lost some $20 on the week, it was a mere pittance given the extent of the rescue mission in stocks. No uptrend line was broken; few negative divergences came about; and the bull market emerged from yet another week of pandemonium intact, albeit on a late downtick.

Silver fared not as well. It suffered its fourth down week in five for the year, but remains in the uptrend that started last May. If that "slingshot effect" I wrote of earlier is to pass, silver needs to get the lead out of its jeans, and quickly. The gold:silver ratio (GSR) is hovering just under 90 (88.80), and please forgive the redundancy, but a rising GSR is not characteristic of a healthy bull market.

Similarly, the action in the gold miners early in the week gave me the opportunity to replace

50% of the GDX and GDXJ positions at or under their respective 50-day moving averages (dma) and then top up the rest on Friday. However, the HUI has also struggled since 2020 arrived and, like silver, suffered its fourth down week in five. More ominously, unlike gold and silver, the HUI has broken below the uptrend line drawn off the May 2019lows, and this is not good. We absolutely must reclaim that uptrend line—and hopefully this week—to avoid any further divergences and potential nonconfirmations.

Keep in proper perspective that considering the raging advance in the NASDAQ this week, led by the epic short squeeze in Tesla (and move to over $960), gold miners did relatively well despite a weak silver market and a near-300 point drop in the Dow.

More than a few subscribers and followers have been asking about the junior developer/explorer portion of the GGM Advisory portfolio, and while Aftermath Silver Ltd. (AAG:TSX.V) was the superstar in 2019, it has been in correction mode recently, with both Goldcliff Resource Corp. (GCN:TSX.V; GCFFF:OTCBB) (now drilling Nevada Rand) and Getchell Gold Corp. (GTCH:CSE) (preparing to drill Fondaway) outperforming. I put out a note to subscribers on Thursday on Aftermath that I am now happy to share, so e-mail me at miningjunkie2016@outlook.com and I'll be pleased to pass it along. I smell an upside advance on the immediate horizon and my note (hopefully) spells it out in large block letters.

Heed the Great Dichotomy. It is an insidious omen for all but those things "precious."

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.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Aftermath Silver, Goldcliff Resource, Getchell Gold. My company has a financial relationship with the following companies referred to in this article: Aftermath Silver, Goldcliff Resource, Getchell Gold. 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: Goldcliff Resource. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aftermath Silver. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Aftermath.
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 Aftermath Silver, Goldcliff Resources, and Getchell Gold, companies mentioned in this article.

Charts provided by the author.

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, GCN:TSX.V; GCFFF:OTCBB, )

The Great Dichotomy

Source: Michael Ballanger for Streetwise Reports 02/09/2020

Sector expert Michael Ballanger sees something “terrifying” in the charts for copper and long-term bonds.

One of the advantages of being a sexagenarian is that after forty years investing in stocks, bonds, commodities, and currencies you have a pretty good idea when something is not exactly “right.” If you have lived a good, normal life and you still have decent control of over your mental faculties and bodily functions, you remember moments in time that impacted your sensibilities, not unlike your first crush on a girl, or that final exam, or an authoritarian coach’s dressing-down.

However, given my chosen profession, nothing gets more indelibly etched into one’s psyche than a big price “move” in something one owns. Be it a loss or a win, one can recall all the inputs that created that “move” and, sometimes elatedly and sometimes sadly, one can recall all of the ramifications and repercussion from the “move.” You will, later in life, regale in the joy (or sorrow) of recounting the story of the “move” until people roll their eyes in angst upon being subjected to their ninth or tenth serving.

Of course, one of the disadvantages of being a sexagenarian is that over time, one forgets (or imbues) portions of the story, usually in favor of its historical significance or personal accolade. But, alas, that is an anecdote for another day. What I wish to discuss with you all today is that my geriatric power of recall and my olfactory rot-sensor are telling me that something is definitely not “right.”

This pervasive feeling of dread originates from this perversion known as “the stock market.” where our banker-politico alliance has conspired to distort its historical role as a barometer for the economy and instead use it as a tool for manipulating consumer (and voter) behavior.

The practice of using the Working Group on Capital Markets to alleviate concern in the minds of iPhone-buying citizens through the constant and criminal levitation of stock prices (as shown above in the “All is well!” chart), and the capping of gold prices, has now made the barometric role of natural price discovery a thing of the past, a distant memory, a figment of sexagenarian imagination. That young investors can boldly go where no man has gone before in terms of risk discounting (or risk ignorance) is a moral hazard of utmost consequence and danger.

It is said that copper has a PhD in economics, and since it is such a gargantuan global market, it is essentially immune from the whims of the banker-politico lever-pullers. As such, it has been screaming “Danger!” for most of this very young 2020. This swoon in the world’s #1 industrial metal is comparable to the crashes in 2001 and 2008, and similar recessionary periods such as 1980–82 and 1973–1974, and warns of a rapidly slowing global trend.

Actually, copper has been moving straight south since mid-2018, but there hasn’t been as much as a peep from the hallowed halls of the Wall Street Journal or the sacred studios of CNBC, because to do so would oppose the national narrative. To wit, it is this national narrative that really gets on my wick because my training from the pre-2000 period of financial sanity has me constantly on the lookout for things that just aren’t “right.” To have young people diving into overinflated stock funds (and housing) because global growth is “healthy” is somewhat warped and totally bereft of logic.

We can look at charts of the Fed balance sheet, or national debt, or China’s purchasing manager indexes (PMIs) and all arrive at various (bullish) conclusions of all shapes and sizes. But there is one chart in all of the financial universe that tells me what the smartest people in the world are doing with their “big wallets,” and that is the chart of long-term bond yields. If copper has a PhD in economics, then bond yields would be the academic masters that wrote the books copper studied en route to its degree.

Long-term yields are different than short-term yields because the former are demand-driven while the latter are policy-driven or “administered.” The Federal Reserve maestros can play Pac-Man with short-term interest rates, but they can’t with long-term yields because over the long term, yields will move to levels governed by fear. And it is fear and fear alone that drives the risk-free rate of return for holders of all the wealth in the world.

Accordingly, it is this next chart whose eardrum-splitting air raid siren is drowning out the blips and beeps of the copper chart or the ding-dong of the stock chart without a trace of indecision or reflection. Long-term yields are moving lower and they are moving lower fast. That, my friends, reeks of a sense of urgency verging on panic, and it began long before the coronavirus arrived.

The chart below is truly “The Great Dichotomy.”

It is this Great Dichotomy that terrifies me, and the one chart that should be required reading for everyone participating in the world of financial speculation—and a rote memory prerequisite for the all serious investors.

To put this in perspective, you are afflicted with a certain medical condition and there are ten people in a room all telling you what medicine to take. You can heed the younger guy with the tattoos and the leather chains smoking a reefer, or you can listen to the older, quite hale gentleman in the white coat and glasses. One is telling you that you are fine while the other says you need some rest. One is telling you that “All is well!” while the other is telling you to go directly to the emergency ward. Failure to respect dichotomies such as this can lead one to disaster and financial ruin.

If it was only copper, or only elevated relative strength index (RSI) readings, or only a global pandemic, one could a write it off as “a buying opportunity,” and take the tack of patience and calm, moving forward into battle with a stiff upper lip and stoic resolve. This, however, is not a one-off “event-risk” situation that will eventually fade, leaving the dance floor wide open for above-average capital gains and central planner-entitled prosperity. Long-term yields do not lie. You can discount virtually everything else in the universe of chart-ology, but you dare not doubt that one simple dichotomy shown above.

Stocks are being priced for massage parlor perfection, but bond yields are being priced for a nuclear winter—andthat is how I am proceeding. Caution over greed. . .

Now, last week was a the second-most blatant case of intervention by the banker-politico alliance, exceeded only by the 2008 bank bailout and stock levitation, and slightly ahead of the Christmas 2018 activation of Smilin’ Stevie Mnuchin’s Plunge Protection Team (PPT) campaign. With stocks breaking down on the eve of the impeachment vote and on the crest of the coronavirus wave, China set the table with trillions of USD-equivalent yuan liquidity jolts in order to prevent a microbe-triggered meltdown in its capital markets, matched majestically by similar actions from its U.S. counterparts. The result was a near-magical, one-week levitation of 2.46%, the biggest advance of this duration and amplitude in two-odd years. Praise the Lord!

When I look at a chart such as this, I am inclined to default to a well-honed suspicion, and in order to decipher the true meaning of such an advance, I turn to gold and fully expect that these collusive cretins would have engineered a countertrend takedown of equal magnitude. But while gold lost some $20 on the week, it was a mere pittance given the extent of the rescue mission in stocks. No uptrend line was broken; few negative divergences came about; and the bull market emerged from yet another week of pandemonium intact, albeit on a late downtick.

Silver fared not as well. It suffered its fourth down week in five for the year, but remains in the uptrend that started last May. If that “slingshot effect” I wrote of earlier is to pass, silver needs to get the lead out of its jeans, and quickly. The gold:silver ratio (GSR) is hovering just under 90 (88.80), and please forgive the redundancy, but a rising GSR is not characteristic of a healthy bull market.

Similarly, the action in the gold miners early in the week gave me the opportunity to replace

50% of the GDX and GDXJ positions at or under their respective 50-day moving averages (dma) and then top up the rest on Friday. However, the HUI has also struggled since 2020 arrived and, like silver, suffered its fourth down week in five. More ominously, unlike gold and silver, the HUI has broken below the uptrend line drawn off the May 2019lows, and this is not good. We absolutely must reclaim that uptrend line—and hopefully this week—to avoid any further divergences and potential nonconfirmations.

Keep in proper perspective that considering the raging advance in the NASDAQ this week, led by the epic short squeeze in Tesla (and move to over $960), gold miners did relatively well despite a weak silver market and a near-300 point drop in the Dow.

More than a few subscribers and followers have been asking about the junior developer/explorer portion of the GGM Advisory portfolio, and while Aftermath Silver Ltd. (AAG:TSX.V) was the superstar in 2019, it has been in correction mode recently, with both Goldcliff Resource Corp. (GCN:TSX.V; GCFFF:OTCBB) (now drilling Nevada Rand) and Getchell Gold Corp. (GTCH:CSE) (preparing to drill Fondaway) outperforming. I put out a note to subscribers on Thursday on Aftermath that I am now happy to share, so e-mail me at miningjunkie2016@outlook.com and I’ll be pleased to pass it along. I smell an upside advance on the immediate horizon and my note (hopefully) spells it out in large block letters.

Heed the Great Dichotomy. It is an insidious omen for all but those things “precious.”

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.

Read what other experts are saying about:

  • Goldcliff Resource Corp.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Aftermath Silver, Goldcliff Resource, Getchell Gold. My company has a financial relationship with the following companies referred to in this article: Aftermath Silver, Goldcliff Resource, Getchell Gold. 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: Goldcliff Resource. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aftermath Silver. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Aftermath.
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 Aftermath Silver, Goldcliff Resources, and Getchell Gold, companies mentioned in this article.

Charts provided by the author.

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,
GCN:TSX.V; GCFFF:OTCBB,
)

Resource Estimate Hits 3 Moz Gold for Idaho Gold Project

Source: Streetwise Reports   02/08/2020

The new numbers and potential for further growth are discussed in an Echelon Wealth Partners report.

In a Feb. 3 research note, Echelon Wealth Partners analyst Gabriel Gonzalez reported that Revival Gold Inc.'s (RVG:TSX.V) updated mineral resource estimate for Beartrack-Arnett Creek hit its target of 3 million ounces of gold (3 Moz), up from 2 Moz, and further upside remains.

"We believe that Revival has the potential to demonstrate additional resource growth potential to drive further project value," Gonzalez commented.

Both the mill resource and heap-leach resource were updated. The new total mill resource, including Indicated and Inferred ounces, is 2.4 Moz gold at a grade of 1.47 grams per ton (1.47 g/t). This reflects a 46% growth in ounces and a 3% increase in grade over those in the previous estimate.

The new total heap-leach resource is 580,000 (580 Koz) gold at a grade of 0.56 g/t. These updated amounts changed from the previous ones by +76% and -23%, respectively, "with the decrease due to the exclusion of historical RC drill holes from the estimate, and a conservative 75% assumed metallurgical recovery (compared to >90% in preliminary bottle roll tests)."

Gonzalez pointed out that further heap-leach resource potential exists. For Beartrack specifically, the total resource now stands at 384 Koz, up 16%, at a grade of 0.55 g/t, down 24%. The differences in those numbers are due to use of a 15% lower mining cost of $2.25 per ton and a lower cutoff grade of 0.17 g/t (versus 0.26 g/t).

Regarding Arnett Creek, its total resources are now 196 Koz gold, down 48%, at a grade of 0.58 g/t, down 34%. The changes are due to the exclusion of historical reverse circulation drill hole results from the estimate along with a conservative assumed metallurgical recovery of 75%. "There is substantial opportunity for a pickup in ounces and grade as work on Arnett Creek is advanced," wrote Gonzalez.

Additional heap-leach resource potential exists through possible expansions to the main Haidee target and other Arnett Creek areas. At Beartrack, growth potential exists on the delineated 5 kilometers (5 km) of strike and at depth of it as well as to the south, where Revival identified another 5–6 km structure.

Gonzalez purported that "mill resource growth will drive longer-term project upside." The mill could produce more than 250 Koz per year in addition to the projected 50 Koz per year of heap-leach production. This could move the project to a production level of interest to intermediate and senior gold producers.

The analyst concluded, "We continue to be positive on Revival Gold given the large resource demonstrated at Beartrack-Arnett Creek and further potential upside as well as the project's location in Idaho (a favorable mining jurisdiction) and highly experienced management team and board of directors."

Echelon has a Speculative Buy rating and a CA$1.80 per share target price on Revival Gold. The company's stock is trading at around CA$0.78 per share.

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

Disclosures from Echelon Wealth Partners, Revival Gold Inc., February 3, 2020

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Garbriel Gonzalez, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Issuer.

Does the Analyst or any member of the Analyst's household have a financial interest in the securities of the subject issuer? No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

( Companies Mentioned: RVG:TSX.V, )

Resource Estimate Hits 3 Moz Gold for Idaho Gold Project

Source: Streetwise Reports 02/08/2020

The new numbers and potential for further growth are discussed in an Echelon Wealth Partners report.

In a Feb. 3 research note, Echelon Wealth Partners analyst Gabriel Gonzalez reported that Revival Gold Inc.’s (RVG:TSX.V) updated mineral resource estimate for Beartrack-Arnett Creek hit its target of 3 million ounces of gold (3 Moz), up from 2 Moz, and further upside remains.

“We believe that Revival has the potential to demonstrate additional resource growth potential to drive further project value,” Gonzalez commented.

Both the mill resource and heap-leach resource were updated. The new total mill resource, including Indicated and Inferred ounces, is 2.4 Moz gold at a grade of 1.47 grams per ton (1.47 g/t). This reflects a 46% growth in ounces and a 3% increase in grade over those in the previous estimate.

The new total heap-leach resource is 580,000 (580 Koz) gold at a grade of 0.56 g/t. These updated amounts changed from the previous ones by +76% and -23%, respectively, “with the decrease due to the exclusion of historical RC drill holes from the estimate, and a conservative 75% assumed metallurgical recovery (compared to >90% in preliminary bottle roll tests).”

Gonzalez pointed out that further heap-leach resource potential exists. For Beartrack specifically, the total resource now stands at 384 Koz, up 16%, at a grade of 0.55 g/t, down 24%. The differences in those numbers are due to use of a 15% lower mining cost of $2.25 per ton and a lower cutoff grade of 0.17 g/t (versus 0.26 g/t).

Regarding Arnett Creek, its total resources are now 196 Koz gold, down 48%, at a grade of 0.58 g/t, down 34%. The changes are due to the exclusion of historical reverse circulation drill hole results from the estimate along with a conservative assumed metallurgical recovery of 75%. “There is substantial opportunity for a pickup in ounces and grade as work on Arnett Creek is advanced,” wrote Gonzalez.

Additional heap-leach resource potential exists through possible expansions to the main Haidee target and other Arnett Creek areas. At Beartrack, growth potential exists on the delineated 5 kilometers (5 km) of strike and at depth of it as well as to the south, where Revival identified another 5–6 km structure.

Gonzalez purported that “mill resource growth will drive longer-term project upside.” The mill could produce more than 250 Koz per year in addition to the projected 50 Koz per year of heap-leach production. This could move the project to a production level of interest to intermediate and senior gold producers.

The analyst concluded, “We continue to be positive on Revival Gold given the large resource demonstrated at Beartrack-Arnett Creek and further potential upside as well as the project’s location in Idaho (a favorable mining jurisdiction) and highly experienced management team and board of directors.”

Echelon has a Speculative Buy rating and a CA$1.80 per share target price on Revival Gold. The company’s stock is trading at around CA$0.78 per share.

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

Disclosures from Echelon Wealth Partners, Revival Gold Inc., February 3, 2020

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Garbriel Gonzalez, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Issuer.

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

( Companies Mentioned: RVG:TSX.V,
)

Coverage Resumed on Canadian Producer Following Acquisition

Source: Streetwise Reports   02/07/2020

A review of the transaction and its implications are provided in a BMO Capital Markets report.

In a Feb. 3 research note, analyst Brian Quast reported that BMO Capital Markers resumed coverage and lowered its target price on Kirkland Lake Gold Inc. (KL:TSX; KL:NYSE) to CA$61 per share following its acquisition of Detour Gold. In comparison, Kirkland Lake Gold is trading around CA$49.75 per share.

BMO decreased its target price on Kirkland Lake Gold for two reasons, Quast wrote. One was to account for the increased risk tied to Kirkland incorporating the Detour assets into its own. The second was to get Kirkland Lake Gold's valuation closer to that of its peers as it moves toward becoming a senior gold producer.

However, Quast highlighted that the Detour purchase was positive, "given that the long-life asset is a good strategic fit for Kirkland Lake's asset portfolio and that the transaction is immediately accretive to shareholders on a net asset value basis (NAV)," by about 26%.

Quast reviewed the Kirkland Lake-Detour deal and how it affects BMO's model on the acquiring company.

In the transaction, each single Detour Gold share was exchanged for 0.4343 share of Kirkland Lake Gold; about 77 million shares were issued in all. "Kirkland Lake Gold now has about 289 million shares outstanding with an approximately CA$15.6 billion market capitalization," noted Quast.

The analyst indicated that cash flow following the merger is estimated to be neutral in 2020 but accretive, by about 14%, in 2021. BMO expects Fosterville will drive Kirkland Lake Gold's near-term cash flow generation.

Quast relayed that BMO's model of the Detour Lake mine, albeit conservative, outlines production of 13,800,000 of gold over a 21-year life of mine at an average all-in sustaining cost of CA$871 per ounce. This assumes BMO metals prices and a 5% discount rate. BMO assigned 50% of Kirkland Lake Gold's NAV to the Detour Gold assets.

BMO has a Market Perform rating on Kirkland Lake Gold.

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

Disclosures from BMO Capital Markets, Kirkland Lake Gold, February 3, 2020

IMPORTANT DISCLOSURES

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

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

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

Company Specific Disclosures
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Kirkland Lake Gold.
Disclosure 6B: Kirkland Lake Gold is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: B) Non-Investment Banking Securities Related Services
Disclosure 8A: BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of Kirkland Lake Gold.

For Important Disclosures on the stocks discussed in this report, please click here.

( Companies Mentioned: KL:TSX; KL:NYSE, )

Explorer ‘Gearing Up to Increase Resource Base’ on Colombia Project

Source: Streetwise Reports   02/07/2020

The expected updated resource estimate is discussed in a ROTH Capital Partners report.

In a Feb. 3 research note, ROTH Capital Partners analyst Jake Sekelsky reported that GoldMining Inc. (GOLD:TSX) has "a strong balance sheet with catalysts on the horizon."

The nearest upcoming potential stock mover, Sekelsky highlighted, is an updated resource estimate on GoldMining's recently acquired Yarumalito project in Colombia, at which 18,540 meters were drilled historically. "Based on the historic resource estimate and exploration work at the project, we believe the project could host a significant resource base," he added. As far as an impact on the company overall, it could boost its current worldwide resource to more than 28 million ounces of gold. The Yarumalito resource update is expected in Q1/20.

Sekelsky also noted that GoldMining could develop Yarumalito and its nearby La Mina and Titiribi gold projects in Colombia using a "hub-and-spoke strategy." Further, this land package could be attractive to larger mining companies in the future.

In other news, Sekelsky wrote, GoldMining recently exercised outstanding warrants and thereby added CA$5.5 million to the balance sheet. "We believe the recent warrant exercise removed an overhang from the stock and note that the company is now well-funded to execute on its stated objectives for 2020," the analyst commented.

Sekelsky concluded that "GoldMining remains well positioned to advance its portfolio of gold assets in the Americas, with particular emphasis on its Colombian assets."

ROTH has a Buy rating and a CA$4.50 per share price target on Goldmining, whose stock is trading at around CA$1.63 per share.

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

Disclosures from ROTH Capital Partners, GoldMining Inc., Company Note, February 3, 2020

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Shares of GoldMining Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: GOLD:TSX, )

Good Buys Among Resource Companies

Source: Adrian Day for Streetwise Reports   02/05/2020

Fund manager Adrian Day looks at four of the resource companies in his portfolio, three of which he calls good buys at current prices.

Altius Minerals Corp. (ALS:TSX.V, Toronto, 10.71) generated $78 million in royalty revenue last year, following a soft last quarter, with 37% of it from copper. Coal royalties, which dominated after the acquisition of a package of royalties from Sherritt in 2013, are now down to 14% of the total.

Altius has filed a takings suit against the Alberta government, which arbitrarily banned coal-fired power generation; the mine on which Altius has a royalty had a multi-decade contract to supply coal to a local plant. Both the plan and the mine were compensated by the provincial government, but Altius has not been. It took a C$70 million write-off on its investment. We do not expect to see compensation in that amount, but an award, and a substantial one, is certainly possible, though the case may take years to drag through the courts.

New renewable energy venture grows rapidly

Given the limited time frame on its coal royalties and the poor image associated with them, Altius has been using the revenue from coal royalties to launch a new clean energy unit. At present, this comprises two wind projects, though other clean energy project, and other partners, are likely to be included over time. Altius expects this business to become self-sustaining "very soon" as it is growing faster than expected.

Buying royalties a competitive business with lower returns

Acquiring royalties, including those on base metals and other resources, has become more competitive and expensive, as not only new companies enter the space, but also private equity and other players who do seem concerned with realistic rates of return. Altius is expecting going forward more royalty generation from deals on its extensive land package of early-stage resource properties, though these will take longer that purchased royalties before they generate revenue. Altius has proven itself over the years, however, at being able to generate revenue from these deals long before royalty income begins, such as by selling equity interests in new companies formed to advance particular projects.

Hidden value in balance sheet

New debt stands at $82 million, down slightly from the previous quarter. Although the cash balance—at C$22 million—is relatively low, it ignores the value of a junior portfolio of just over $54 million, as well as the value of its holding in Labrador Iron Ore, at $93 million.

The value of the junior portfolio is more-or-less where it stood a year ago, despite Altius having pulled out $19 million. It has also streamlined the portfolio, from 27 to 18 companies, limiting holdings to companies with which Altius has some strategic royalty interest. In addition, Altius has access to capital through its line-of-credit, its relationship with Fairfax Financial, and other partners. It has been aggressively buying back stock.

We have high confidence in Altius's management, disciplined, patient and imaginative. Together with its solid balance sheet; strong, diverse, cash flow; and vast land package; this makes Altius a long-term holding for exposure to non-gold resources. At the current price, it is a strong buy.

Vista monetizes assets while it guards value at Mt Todd

Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX, NY, US$0.68) continues to pursue optimization at its Mt Todd project in Northern Territories, Australia. At the same time, it continues to seek non-dilutive ways of boosting its cash balance to pay costs as it waits for the opportune time to do a deal on the property. Vista is seeking a partner who will finance and develop the project, while Vista's interest will be funded by the proceeds of the sale. If this works, it would be a very nice conclusion, though the company is also open to a complete sale at the right price.

Now it is monetizing a royalty it holds on the Awak Mas property in Indonesia. Vista originally had a working interest in the property, which it later converted to a royalty. Now it will receive shares in the Australian company that owns the property plus $100,000, and the owner continues to have the right to convert 50% of the royalty for $2.4 million by April, and now the other half for $2.5 million a year later. This is a good deal for Vista, since the money will come sooner than would any royalty revenue. These payments along with the further $1.5 million option payment in October 2021 on the de los Reyes property in Mexico cover another year's expenses. With the reduced spend at Mt Todd, overall expenses are upwards for $6 million a year now.

Can it avoid an equity raise?

Vista still owns shares in Midas Gold, currently worth around US$3.5 million; these shares are eligible to be sold in the market at any time. And it owns a used mill which it is offering for sale; that could raise $7 million or possibly more. As of last quarter, Vista had $7.2 million in working capital, with cash just over $4 million; that will be lower at end year. It is possible that the cash, the two Awak Mas payments, followed by the de los Reyes option (perhaps with Midas share sales) could take the company through to the end of next year. It is likely, however, that without a sale of the mill or meaningful movement on a Mt Todd transaction, the company will look to raise some equity funds in the coming year.

Given the attractiveness of Mt Todd—its size and location—and the huge discount at which Vista is trading, patient investors should continue to accumulate Vista at the current level. This is a particularly good time, since, despite the recent advances in both the gold price and at the company, the stock price—which has had a range of 70 cents to $1.35 over the past year—has hardly moved.

Osisko is loudly proclaiming its mission

Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE, NY, US$9.98), following confusion and opposition after its September acquisition of all of the Barkerville shares it did not already own—which saw the stock drop 24% in one week—plus several high-profile exits from the company, has been making clear that it is not becoming a mining company, and that the core business remains royalties. The new messaging has been a little slow, and the stock has only very slowly begun to recover.

The company has said that its contribution to Barkerville is mostly done, and that it does not intend any additional exploration expenditures. It will look for financing sources and seek to monetize its investment. The company concedes that there is a possibility it would build the mine—the company certainly has the expertise since it built Malartic, one of Canada's largest recent mines—but would do so with financing from others, and seek to monetize it.

Was it the deal or the way it was presented?

In short, Osisko feels that the biggest mistake it made was not in buying Barkerville, which it said represents tremendous value, but in not clearly stating that it was not turning into a mining company. Barkerville is an extension off Osisko's accelerator model, which has been a financial success. Given the discount at which Osisko trades relative to other mid-sized and large royalty companies—only some of which is justified, given the higher-risk "hybrid" model—Osisko is a good buy at these levels.

Murphy's at work at Fortuna Silver

Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE, NY, US$3.92) had more bad news when a Mexican government department served notice it would cancel one of the major concessions at Fortuna's San Jose Mine if it did not pay $30 million by March due to disputed royalties. The concession represents about 27% of San Jose, which itself represents about one-third on Fortuna's Net Asset Value, but currently most of its cash flow. San Jose still has a five-year life ahead of it, though the potential for further resources is still there. However, the ore mined has been lower grade of late.

The royalty was allegedly given to the government by the property's previous owner. Fortuna challenged this in court, but no definitive ruling has yet been made. Fortuna has asked the court for a stay on the latest directive threatening to cancel the concession. Given that the dispute was not widely known in the market, the response has been somewhat muted.

At Fortuna's other existing mine, Caylloma, in Peru, lead and zinc have become far more dominant, while their prices are down even as treatment charges are up; there has been less silver mined even as the price of silver has appreciated. This combination means that cash flow of $10 million 2019 could drop to $2 million or so at current prices.

Nearly there at Lindero

The development at Lindero, including positive grade reconciliation, perhaps offset the bad news elsewhere. Reports of a dispute with its main contractor at the last minute are also worrying, though that should not cause further delays in the countdown to first gold pour by March. It is important to note that under Argentina's capital controls, money can be taken out of the country to repay debt, so Fortuna has about 18 months of revenue before capital controls would be an issue.

Fortuna stock has been volatile over the past year, after it was hurt by the Argentina vote favoring the opposition, trending back up more recently on the countdown to first gold pour at Lindero. We would hold here.

Best Buys

Best buys at current prices, in addition to above, include Kingsmen Creatives Ltd. (KMEN:SI, Singapore, 0.375); Lara Exploration Ltd. (LRA:TSX.V, Toronto, 0.57); and Evrim Resources Corp. (EVM:TSX.V, Toronto, 0.32).

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 shares of the following companies mentioned in this article: Evrim Resources, Altius Minerals and Lara Exploration. 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: Osisko Gold Royalties, Kingsmen Creatives, Lara Exploration, Evrim Resources, Altius Minerals, Vista Gold and Fortuna Silver. 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 Osisko Gold, Evrim Resources, Altius Minerals, Vista Gold and Lara Exploration, companies mentioned in this article.

Adrian Day's disclosures: Adrian Day's Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. 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. © 2019. Adrian Day's Global Analyst. Information and advice herein are intended purely for the subscriber's own account. Under no circumstances may any part of a Global Analyst fax or e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

( Companies Mentioned: ALS:TSX.V, FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE, OR:TSX; OR:NYSE, VGZ:NYSE.MKT; VGZ:TSX, )