Could Nanotechnology Bring Down the Costs of Gold Mining Extraction?

This past year has been remarkable for gold mining investors in that the gold price has broken out into multi year highs and record highs outside the USA.  Ideally these companies should be making money hand over fist, however we are finding many miners dealing with increasing all in sustaining costs and less of a bottom line profit and free cash flow to fund resource growth or pay back debt or possibly dividends to shareholder.

We are seeing miners like Agnico Eagle $AEM one of the high fliers come back to Earth.  The CEO said, "Production ramp up in Nunavut has been slower than expected, which has resulted in higher than anticipated costs in the fourth quarter of 2019 and slight revisions to our 2020 production guidance."  

The Canadian Arctic was supposed to be the next big boom.  Since TMAC Resources became a producer in Nunavut in 2017 they have been facing problems.  They are losing a lot of gold.  Costs are way too high which means the mine runs out of money.

We need as a mining community to learn the lesson from the failures at TMAC and AEM and why they are struggling.  

To build value you have to look at Capex and payback to build operations.   

Yamana $AUY had a strong quarter but there costs are still high around $1000 an ounce.

Gold mining is not all drilling, making a new discovery and building a resource.  While exploration is exciting for speculators and big resources sell stock, the main concern is can a mine be profitable and deliver free cash flow to expand like at Kirkland Lake Fosterville, K92 and Newmont's Long Canyon which are some of the most profitable gold mines in the world now.  

With the recent breakout in gold and blockbuster M&A activity with Barrick and Randgold and Newmont and Goldcorp take all the headlines.  While drill results and economic studies get junior mining speculators, the key to the success of the industry is if a gold miner can get into production and extract the gold profitably.  Its one thing to find the gold, but its a whole other challenge to extract the gold from the ore profitably.

Extracting gold before the 20th Century was mostly done by using gravity separation placer mining.  This is like the old California miners panning in the river.  However, in the 20th Century a scientist discovered cyanide could leach gold from hard rock.  This was a huge breakthrough and makes up a large part of today's mining industry.  Cyanide leach helped the South African mines boom in the early 1900's.

Then through American ingenuity around the turn of the century two American Metallurgists Charles Merril and Tom Crowe came up with a new and improved method which added vacuums and zinc.  This Merril Crowe approach is pretty much widely used today.

For the past 100 years or so after hard rock is treated with cyanide the rock dissolves into solution and is eventually recovered using activated carbon which binds with gold molecular particles.

2020-02-14_13-02-23This is where the problem lies with a lot of gold miners.  More than 10% of gold mined is lost in this 100 year old cyanide solution using activated carbon.  This comes at a huge cost  for big producers like Agnico, Kinross and TMAC.  A 200k oz/year producer could lose over $26 million annually just lost in cyanide solution and carbon particles.

2020-02-14_13-06-34

A new company that just came public this week has an answer and its called IXOS®.  This technology uses molecular imprinted polymers instead of activated carbon that has a polymer matrix which targets specific metals like gold, silver, lithium and copper much more quickly and at lower cost.  2020-02-14_13-09-31

One of the key features why I believe miners will adopt Molecular imprinted polymer nanotechnology over activated carbon is that you can use a lot less water.  Water is a major issue in South America especially Chile where indigenous people are concerned that they will lose their drinking water.  The eluent is reusable and the size of the plant is much smaller.  Take a look at the tour of their pilot plant at one of Kinross's gold mines.

In conclusion, this new company just went public and there is already great interest in their technology.  This patented technology can transform the gold extraction industry.  Its six time faster to strip the gold from cyanide and saves the miners $100 per ounce.

2020-02-14_13-20-59

Suffice it to say, this technology is just starting to get noticed by the big producers.  The company signed a deal with Sumitomo the Japanese mining giant to market this technology to their network.

2020-02-14_13-29-43When big companies like this start to take notice it may be wise to start learning more about this new company with what could the best gold extraction technology in the industry.

Listen to my interview with the CEO by clicking here...

Sixth Wave $SIXW.CN $ATURF

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Disclosure: Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

Big News Expected in the Gold Miners Before BMO and PDAC

Coronavirus concerns and fear of a global economic slowdown because of this outbreak has not derailed the rally in the US markets.  However, base metals, oil and copper have taken it on the chin as Chinese cut back on imports.

Prices have stabilized after a precipitous fall.  The President of China just came out in public after not being seen in weeks to hopefully signal to the World things are getting better.

I hope and pray it is.  Crude Oil and Copper have been hardest hit but could be a discount v shaped reversal for those with long term bullish beliefs.

This divergence between stocks and commodities could be that both China and the USA are printing money at the highest rate ever flooding the equity market with liquidity which is going into a few select stocks.  The risk capital has not yet flowed into the commodities markets yet which is still at record all time low valuations versus the equity, fixed income or real estate market.

The wave for hard assets is coming again.  The rich billionaires are now positioning in junior miners after one of the longest and most brutal bear markets.

This multi year bear market in energy, commodities and metals comes at the same time when Central Bankers are printing money at the highest rates ever!

Deficits have soared in the past two decades, money printing is at record levels and hard assets are still ignored by the masses.

US household debt reaches new record at over $14 trillion!  Even though gold has hit new highs in all the currencies except the US dollar, the junior explorers have not been able to keep up pace yet.  But it is coming and when it comes the move will be like a sling shot and the only ones who win are those positioned.

The move is going to come.  Parabolic moves in equity markets don't end well.  Look at what happened during the dot com bubble and most recently with the cannabis and crypto crazes.  I know everyone is in tech stocks and real estate but maybe its time to just think out of the box and put a little into the neglected hard assets.

We are still witnessing parabolic moves in the US tech stocks most notably Apple $AAPL, Tesla $TSLA and Microsoft $MSFT whose market caps surpass the entire German Economy.  The Germans are moving into recession territory.

German automakers are still recovering from the Volkswagen Dieselgate Scandal and are trying to catch up to rivals like Tesla leading the electric vehicle revolution.

The Lithium stock ETF $LIT and Lithium Bellwether Albemarle $ALB are breaking out and the battery metals space appears to be heating up.

Look at the chart of Ganfeng who is partnered with Lithium Americas on the verge of a two year downtrend change and appears to be a takeout target by the Chinese who have taken majority control of their lithium asset is Argentina.

Its amazing the Nikola Motor has put out a powerful electric pickup with 600 mile range.  There will be huge advancements in battery technology.  This week we hear news of major financings in this area.  There were a lot of shorts who lost billions as Tesla rebounded.  This is not an area to short.

US Uranium stocks $URA continue to get support from President Trump who has included a special uranium reserve so that USA doesn't have to be so reliant on the Russians for everything nuclear related.

China and Russia are trying to monopolize the nuclear sector and Trump isn't standing for that.  He has put $150 million into the uranium budget to lessen USA reliance on uranium from Kazakhstan.  I am on the lookout for good uranium stories in the USA with clean balance sheets.

The Trump Administration is extremely supportive of the rare earth sector and for the US military to become less reliant on China for these magnet metals.  This week the US Government has charged China with spying on the American People.  Tensions with China are the worst in my lifetime.  I have never seen anything like this.

Listen to this unique near term rare earth producer in the USA who has interest from the US Dept of Defense as well as additional parties to start a rare earth refinery in the USA.  Remember these electric vehicles require rare earths in the motors that power the traction.  Maybe they will get US funds from recent budget?

I am continuing to search for new mining technologies that are cleaner and could cut processing costs.  This new nanotechnology being used by Kinross can replace activated carbon and capture almost 10x more gold!  It could change gold mining and just went public today.  It could replace 100 year old activated carbon, capture more gold, use a lot less water and save miners a lot of money.  Check it out yourself.

For months now I have been following this Nevada Gold Explorer which has attracted the top Placer Dome Geo in Nevada as Chairman of this tiny junior.  He has loved this project for 20 years and believes they could be onto something massive right in Northern Nevada surrounded by massive 20 million ounce gold mines.  This company is actively drilling with lots of news pending.  Insiders just participated in the financing.  Its still a tough market at the stock has corrected as the company is waiting on results.  Click here to listen a recent interview with the CEO who is well known in the mining industry and has put his reputation and lots of money on the line for this project.

A major discovery backed by Newmont in the Yukon put out a resource today and puts together years of recent drilling success.  The stock has been ignored possibly due to large amounts of copper.  But I think its a powerful story in the Yukon that has been overlooked but if gold and copper takes off this could have huge leverage and see a powerful reversal as its one of the highest grade porphyry discoveries in Canada and the World.  Newmont should continue to finance this project as they have done in British Columbia recently with that Golden Triangle discovery. 

Its been ten years online and 20 years investing in the junior mining sector.  The past 8 years have been painful for precious metal investors and its been the first real bear market I have lived through.  Its also one of the worst and most painful.  There have been many times I've wanted to quit and many times when I've felt on top of the world.  Winners are not people who never fail but people who never quit.  I believe this could be a huge turning point for investors at stock markets continue into record overbought territory and hard assets hit 100 year lows.  Remember great gains can be made but it is often after severe losses.  Its not an easy game and its not all sunshine and rainbows.  You must keep going despite getting knocked down.

The Junior Gold Miners $GDXJ are holding the 50 DMA and forming a cup and handle.  We could see a bounce starting soon.  Big news is expected from some junior miners before the annual BMO and PDAC events in early March which are the biggest mining conferences of the year.

Disclosure:

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

 

 

 

 

Gold Mining Investors Returning To High Grade in Quebec

Gold has been one of the top performers over the last year and finally inflows are returning to the gold mining stocks and emerging near term producers in safe and friendly jurisdictions.

 

The rise of terrorist attacks in West Africa and the illegal blockades of established mines in South America are motivating investors to look for mines in the more friendly and stable jurisdictions.

Recently Burkina Faso is in the news as a volatile spot for junior miners as the miners complained about their safety for months but were ignored.  I started warning readers on social media in early April as a geologist was killed, then I shared the US Embassy alert on Twitter in August and then there was the horrible November attack on Semafo where 39 miners were murdered.

Most of the investment community ignored my twitter posts.

Burkina Faso has been battling Islamic terrorists since 2016, thousands are dead and they have driven nearly 500K from their homes, mining operations have been attacked.

I was once bullish but started moving away in 2019 focused on North America.  One area that has been our favorite is Quebec especially the established Cadillac Break Trend where more than 75 million ounces of gold have been produced over the past 100 years.

The gold in this area has simple geology that goes from surface underground and straightforward metallurgy with over 10 mills nearby looking for ore to process.

There is an established mining labor camp and high powered electricity that runs right through the major intersection of the mills and mines.

Some of these juniors have recently spent a fortune going through permitting and resource calculations but are still priced near bear market lows unlike gold which is at new all time highs in Canadian dollar terms.

This little junior recently has spent tens of millions developing a resource but recently hit a lot of high grade.

The little junior with just a $12 million market cap believes they have just hit something big and could expand the grade and size to be possibly up to 2 million ounces and up to 10 grams per ton is their near term goal.

Because this little junior has gone through a few cycles they are more advanced being fully permitted which took the company two years and six million dollars worth of studies.

There are eight mills in the area with three of them shut down as they are desperate for new growing discoveries.

This company has not only production potential and exploration potential but another unique aspect.  Because of the excellent technical team they have payed out dividends to  shareholders.

The little junior spun out an excellent silver play in Canada which has been a top performer.

This company could be a takeout target as they are permitted for production and can ship ore and make money yet are only valued at a $12 mil market cap.

They can also start drilling more aggressively with these higher gold prices as they have not yet really drilled this new high grade structure that they just found where they hit 33 meters of 11+ g/t material.

These Quebec miners are good at what they do and they just announced the start of a bulk sample and have lots more news pending…

The chart looks excellent with a breakout gap that has recently just been filled and a golden crossover of the 50 day and 200 day moving average.  The downtrend from $1 appears to have a good chance to break to the upside.

Stock is currently 15 cents but with gold breaking out into new highs and if it can get back into production and more high grade is found there is no reason it can't at least test those highs again???

Listen for yourself by clicking on the following Youtube link to an interview with the CEO who is world class metallurgist from McGill University.

PS...I just found another extremely rich gold mine on Cadillac Break that our friends and brilliant mining investors Rob McEwen and Michael Gentile are buying.  The cup and handle chart looks amazing and insiders have been buying.

They have $8.5 mil in cash and 20k meter drilling campaign underway with news starting to return and pending.  Management is confident that model is on its way to find the high grade bonanza area...Remember anything over 5 g/t is great in this area...this little junior is hitting over 50 g/t but no one knows about it yet.  This little junior is currently valued at pennies to the dollar when comparing to others in sector.  Listen to my recent interview by clicking here...

Disclosure:

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

8 Gold Miners Showing Relative Strength Despite Coronavirus Scare

As the #coronavirus hits global #stockmarkets investors look to #gold and the highest quality #goldminers showing great relative strength on a cloudy day!

Files crossing my desk showing flight of quality capital into some gold miners we follow including $FNV $LUG $TGZ $GCM $BTO $YRI $KNT $GTT...all these companies are larger cap situations and not many juniors are participating with the gain in safe haven gold and US treasury bonds.  

Investors are obviously looking for liquidity is cash and gold today due to the outbreak of the Corona Virus, bombings at the US Embassy in Iraq and the major push of the Democratic party to impeach Trump before next election.  

I did notice recent insider buying some juniors like $BRC $RDS and insider selling in $TSG.  Insider buying could be a good signal of positive things to come!

The rally in gold is just getting started after a four month bull market consolidation.  Some of the traders I speak to think we could be near $1800 USD by PDAC.  Notice the recent decline in equities from the coronavirus scare.  Any little Black Swan could send equities from these lofty levels and reverse the algorithms to hit sell button.  That is what happened once during a flash crash.  The downtrend of gold stocks versus the Dow stocks could be ending.

 


Look at some recent financings by smart investors like Rob McEwen, Ross Beatty and Eric Sprott.  These are not young men but they are taking big risks according to the mainstream who are just encouraging equities and fixed income.

1)These are the gentleman with deep pockets that can resurrect companies from the dust.  Notice Rob McEwen just made major strategic investment in one that I have followed all year.  Listen to me speak to this great Quebec team where insiders are buying.  Its the highest grade undeveloped gold project along the #cadillacbreak in #quebec.  I think they are onto an area of the mine that could produce blockbuster results in 2020.  They are in the midst of the biggest drilling campaign ever on the project.

2)Another area which I've highlighted for months palladium has attracted the interest of billionaire Eric Sprott.  He recently invested in a junior I featured for months in Ontario which recently came out with a PEA with a Value of close to $900 million at $1,275 an ounce Palladium.  Palladium is trading over $2k recently and could go past $3k.

3)Coeur Mining has now come into 3 juniors after I have featured them to my readers.  Coeur is a NYSE producer and has one of the smartest mine development teams especially when it comes to gold and silver.  They recently came into this micro cap juniors project which could be another mine right down the road from their Silvertip Project which Coeur bought 2 years ago for around $200 million.  Its trading around 5 cents now!

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

 

 

GO USA! First New #Copper Mine in USA in 10 Years

For many years Gold Stock Trades has been at the cutting edge of new trends like the electrification of the automobile and a resurgence of mining in the USA for precious and battery metals.

I have searched high and low for the best US mineral assets which can supply gigafactories with the much needed metals needed for electric vehicles and technology.

I have written to some of our top leaders to start developing and incentivizing a return to US mining and manufacturing for the following reasons.

We have become energy independent with regards to oil.  Nevertheless, we import our most important metals like uranium, copper, rare earths and lithium and are totally reliant on foreign countries to supply a whole litany of the periodic table.

This comes at a huge cost.  A major legal case has been launched against the largest tech companies such as Apple, Google, Microsoft and Tesla for using child slave labor.

Families are seeking damages for their relatives that were killed and maimed to provide the materials used in smartphone devices. 

This is the first such case and should bring more support for mining in the USA rather than in other places which take advantage of children.

Demand for copper and cobalt is soaring but a lot originates from areas with extreme poverty and no labor laws.

Washington DC is seeing a push led by President Trump to boost domestic mineral production, development and exploration for the first time in decades.

News came out recently in our sector that a junior copper producer has started mining again in Nevada.  Its the first new copper mine in the USA in over a decade.  

The mine could produce around 27k tonnes of copper annually at a cost below $2 and mine life is at least 13 years but they are also drilling and discovering a lot more copper at surface which is open pit amenable.

This means they could expand significantly and have first mover advantage.  The automakers are all looking to expand their battery and electric vehicle making industry in the Western USA.

This demand growth is going to require a lot more battery metals more specifically copper which has not yet moved like gold and silver but could have its day soon possibly turning the corner to hit new highs.

The stock is forming a cup and handle and has broken out above the 200 DMA which is technically bullish.

Listen to my recent interview with the CEO of this new copper producer in the USA...the first one in 10 years!

Please note for full disclosure Jeb Handwerger is a shareholder and they are a Goldstocktrades.com sponsor that means I have a conflict of interest.

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

Gold Year End Breakout Finally Boosting Junior Miners $GLD $GDXJ

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Several weeks ago when the TSX Venture was on its back due to tax loss selling I warned its planting time not selling time predicting a year end breakout in gold and the junior miners.  Now gold has rallied pretty much everyday for 2 straight weeks making it short term overbought after a powerful breakout move into new 7 year highs.

Don't be surprised for a little profit taking along the way as precious metals bulls who have been beaten down for so long are finally able to take some gains as gold is overbought because of the recent instability in Iraq over the killing of the Iranian General by the USA.

I believe after a little bit of a breather in gold we could be on our way to new record highs in gold in 2020 past $2000 USD.  There are real weaknesses with the economy and there are not many tools left for the bankers to employ.  War is one possible fix to boost inflation but the American Public may be tired after close to 20 years of fighting in the Middle East.

For years the West has been trying to appease and keep a balance in the Middle East between the Shiites and Sunnis all for the sole purpose of a steady supply of oil.  When one side gets too powerful the other is assisted.  Recently Isis and Al Qaeda were devastated leading to the Shiites led by Iran to have control.  The last thing the West wants is Iran to take over Baghdad which could lead to the next step which is war with Saudi Arabia over Mecca.

Trump made an interesting point that the USA doesn't need the Middle East oil anymore as the Country in now energy independent.   Question remains what would happen if USA pulls troops out of region and leaves it for Nato to solve.  Even many oil rich countries are looking for better energy alternatives such as nuclear and solar and the consumers are pushing for electric vehicles as Tesla overtakes the traditional automaker market.

Finally the junior gold miners are breaking out especially the explorers ready to drill.  For years the majors have neglected exploration and they are running out of reserves.  New discoveries are being looked at and some major exploration teams are getting permitted, funded and starting to drill.

For weeks I highlighted this little junior recommended by the top newsletter writers in the industry such as Eric Coffin, Brien Lundin, Bob Moriarity, Jordan Roy Byrne and Gwen Preston among others especially when I saw the Placer Dome Geo who discovered the major mine for Barrick Newmont join the team.

The overall team is amazing with an all star roster but this recent addition along with raising money indicated smart money is following this drilling program.  The project is adjacent to Barrick-Newmont's largest gold mine in Latin America which produces over a million ounces of gold a year at all in sustaining costs under $650. 2020-01-08_13-28-42

This is not just an area play...they have historical drill results already which shows its inline with the large system next door.  They have 8 untested magnetic anomalies that have not been tested at all.  They are fully financed and permitted for drilling which may get started any day now.  The share count is still low around 100 million shares with almost a third of the float in the hands of insiders and strategics. The chart looks amazing.

Listen to my recent interview recorded before the Holidays with the CEO by clicking here...

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Follow me on Twitter, Facebook and Linkedin @goldstocktrades Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

 

Gold and Palladium Hitting Record Highs on Geopolitical Uncertainty

In the late 1990's when gold was at major low, Central Banks were liquidating their gold holdings and investors became completely disillusioned with junior gold exploration after Bre X I decided to go against the consensus at that time.

My friends went off to study computer science but I went into mine development and engineering.  I became horribly depressed around academic engineers in university as the culture at that time was very negative and a lot of the professors at that time were recently laid off by major producers.  It was a negative atmosphere and professors were actually discouraging me from the profession.

I then decided to look for real world engineers and financiers still making it in the business.  I started going to investment conferences and met people like Rick Rule, Rob Mcewen, Bob Quatermain, David Tice, John Doody, Jay Taylor and that is where I saw academics turned to a real world hypothesis with money on the line.  I met the top scientists and financiers who believed they would make it big and gold would turn!  It did.

A lot of those stocks went from pennies to tens of dollars and I thought I was smart eventually quitting my job to blog full time and that is exactly when gold corrected.  I lost almost 90% from the highs.

I thought it would be a year or two correction but it lasted more like 8 years and now we are finally breaking out into new multiyear highs.  It was long dark winter of a bear market.  But I continued buying after failure and investing in scientists I believed in.  Now it looks as though spring has arrived and the seeds we planted are sprouting.

Gold is on the verge of hitting new highs and palladium has surpassed those record highs soaring past $2k.

We may be on the verge of that next run in the junior miners like we saw almost 20 years ago.  The Iran-US tensions now after the death of the Iranian General is the worse since 1979 when gold soared last time.

Now even Iraq is turning over to Iran against US asking troops to leave.  It seems Obama's appeasement is all null and void now as they are threatening nuclear war again.

The tensions now especially around Strait of Hormuz is greater than that of the beginning of the Iraq War in 2003.  Gold benefits during times of financial uncertainty and war.  So does palladium which continues to tighten and move parabolic.  Silver looks strong too hitting almost $18.50.

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Unlike many metals I can't find palladium projects for development especially with no royalties or streams.  One that I have featured for months just came out with economics (PEA) today.

The chart looks amazing and I can't find any other junior like this.  If you can find another palladium junior in North America with these economics please tell me!  Its hard to find a project that could average 200k palladium eq. ounces annually over 14 years at an all in sustaining cost under $600 an ounce.

Please remember this is just the base case!  The company hasn't included all the recent drilling from additional deposits.  Don't discount the fact that North American Palladium was just taken out.  I have a feeling this could be candidate.  Check out my recent interview by clicking here... 

Please note for full disclosure I am a shareholder and they are a Goldstocktrades.com sponsor that means I have a conflict of interest.

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Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit.  I may have received or intend to receive compensation for digital marketing services from these companies.  The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

M&A Activity Sparks The Junior Gold Miners to Make Year End Breakout $GDXJ

 

Following the Great Financial Crisis in 2008, Governments around the world flooded the banks with cash expanding their balance sheets.  Rates were kept artificially low to continue to try to support growth. From 2009 to 2015 rates were cheap but then after six years of going higher the Fed decided to attempt to start tightening.  For 3 more years they tried to raise rates until the market combined with tariff concerns had it worst December in 2018 and the beginning of a massive rotation into precious metals.

Now this year we saw a record amount of negative yielding debt globally and deposit accounts in Germany are being affected.  We also witnessed the inverted yield curve which is a troublesome sign.  The global economy is still weak despite these colossal efforts by Bankers. Now the Fed decided to reverse direction and start cutting rates in 2019.  Gold has broken out into six year highs and mining investment which was ignored for a decade comes back into favor first led by the Australians who came into North America through companies like Northern Star that bought Pogo in Alaska, South 32 which paid billions for Arizona Mining, St Barbara for Atlantic Gold and now recently Evolution for the Newmont assets. 

After the Australians made a move then the majors like Barrick and Randgold and Newmont and Goldcorp merged.  Recently Kirkland Lake has made a friendly offer for Detour and Zijin just bought Continental in Colombia this week.  Osisko made the move for Barkerville in BC recently and Endeavour tried a hostile bid on Centamin.  The junior gold miners look like they are breaking out of its 3 month pullback. Notice the recent share consolidations with Victoria and Gold X as companies look to possibly start uplisting to the American Exchanges.  All these events above are signs gold is already in a bull market. For over 10 years gold investors have been embarrassed as predictions of painful inflation have largely been masked by a record high US Equity Market led by Tech stocks in the Nasdaq and Large Caps in the S&P500 and a booming real estate market globally.  

That could be changing now as there are record inflows into the gold mining ETF's.  Companies need to build up their market caps and liquidity to qualify.  These gold miners need to be more than one trick ponies. Smart investors realize we could be at the top of a credit cycle peak that comes once every ten years.  Junior miners and real hard assets will come back into favor when the bubble bursts like it did in crypto and cannabis. The Algo ETF Funds want these juniors to get bigger and faster quicker than possibly with just the drill bit alone.  Its going to be done through acquisitions.  Major financings are coming back into the junior mining business most notably by stories like Pure Gold, Great Bear, Sun Metals, Integra and Corvus.  All of which have been featured over the years. I expect a lot more M&A to continue in 2020. The overall US Market is still forming a huge megaphone top and I expect a reset to occur especially if Trump is impeached and does not make it to 2020 election.  We could see a huge move past $2000 USD an ounce if this occurs and a huge downside target for S&P500. I really like how some of the recent silver stocks are behaving that Billionaire Eric Sprott has invested in.  Check out the recent action here and stay tuned.

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Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit.  I may have received or intend to receive compensation for digital marketing services from these companies.  The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

Junior Mining Investors Waiting for Tax Loss Selling Season To End

Gold is continuing to consolidate after a record breakout move this summer from June 1st all the way through to September 1st.  Now for 2 and half months gold has been digesting those gains finally appearing to find support at a key 38.2 fibonacci retracement and the August breakout point at $1450.sc-170

I'm hoping we can find some new technical buyers here if not the next stop would possibly be the 200 DMA at $1400 if we continue to correct until the end of 2019 which is a possibility but I think unlikely.

Gold has strong seasonal strength going into the Holiday Shopping Season.  Last year gold had a strong rally that started halfway through November.  This year the rally in gold could be even greater as the negative divergence between stocks and the real economy reaches new extremes.

The S&P 500 has gone up parabolically marking its greatest 10 year rally in history yet the Federal Reserve has cut interest rates 3 times and is intervening in the markets helping banks with liquidity.  IPO's are going straight down being completely overvalued.

Look at Uber and WeWork and all the insider selling in major tech stocks. The real estate market is completely unaffordable and there are already spikes in foreclosures despite record low mortgage rates.  Despite the stock market reaching nosebleed levels the global growth story reflected by the copper market shows a global economy thats anemic.

Gold is the ultimate hedge against economic downturns and recessions as its regarded as a safe store of wealth.  That is why we witnessed a record inflow of funds into passive gold etf's and gold mining stock ETF's this past summer.

It hasn't trickled down to the juniors except for a select few which coincidentally we own and follow right here on Goldstocktrades.com.  Mark my words and listen to much smarter guys than me like Rick Rule and John Hathaway who tells us the opportunity in junior gold mining is one that comes around once a century!

If you have been following the space many of the stories featured here even during the bear market has had incredible success.  We have seen great wealth with stocks featured here companies like Integra which got an investment today from Coeur, Great Bear backed by Rob McEwen and John Robins, Kirkland Lake which was once Newmarket Gold led by Ryan King and Doug Forster, K92 run by Ian Stalker and Bryan Sluschark,...the list goes on and on...

We have been so blessed to find the winners and one thing I've learned is if you can catch the big fish once you can do it again.  Times may be tough now but that means the good times are on its way.  Please remember sometimes you got to go fishing a bunch of times and catch nothing for that one trip you get the big score.  Same thing in mining for those few winners I spent a lot of time casting bait and getting stripped by the sharks especially during a bear market.

Gold prices have risen from a low of $1175 back in 2018 to recent highs of $1550.  Don't just buy the ETF's do your homework and find the next big success stories trading at a junior valuation that could make it one day and get uplisted to the ETF.

Some technical analysts such as JC Parets says Gold could be putting in a historic bottom similar to the late 90's.  This comes at a time when the Canadian markets are being hammered by Cannabis stocks such as Canopy Growth and Aurora hitting new lows on Bank downgrades during the tax loss selling season.

Attention must be paid to the rising protests and the overturning of left wing governments throughout Central and South America.  Notice the news this week of the successful coup in Bolivia.  Is Venezula next week or Ecuador?

Sadly, dozens of miners were slaughtered by violent thug Islamic terrorists in Burkina Faso in Africa which is becoming a no go zone for miners.  Banro in DRC had security issues this week.  I hope this doesn't spread to other jurisdictions like Mali where we closely watch B2 Gold at Fekola where they are expanding the mine.  I pray for the loved ones and the families of those miners this weekend.

Significant news in junior mining that should be watched this week!  Billionaire Eric Sprott loves silver stocks and just funded two junior silver stocks I like a lot Aftermath Silver and Metallic Minerals.  Its hard to find great silver stocks just starting but developing what could be tomorrow's next big silver discoveries.

In addition to Eric Sprott news, major producer Coeur is leading an investment into Integra Resources run by George Salamis who we have known for many years and is a great mining leader! Recent PEA on Idaho Project in early September and recent appointment of COO plus new endorsement by Coeur means this project is looking strong to be restarted.

I've been highlighting a tiny junior Mineral Mountain run by a prestigious mining family in the Black Hills of South Dakota that is drilling a huge hole right near the old Homestake Mine which produced over 40 million ounces of high grade gold and made investors so much money that lasted generations...heard of the Hearst family?  This mine made them rich and these guys nearby are hitting core that looks really good and quite similar.  Now don't get too excited you have to wait until assays are published to jump to conclusions, but if these boys hit it could be big.  "Phase 1 drilling showed target could host a major ore-bearing structure on the scale of the Homestake 9-Ledge that produced 9.5 million ounces of gold."  See the news and photos here and please do your due diligence...don't ignore it because if they hit it could make these other discoveries look miniscule.

I'm excited for Jeff Wilson at Precipitate Gold $PRG.V who just closed an important financing to drill right next to Barrick's world class Pueblo Viejo mine in Dominican Republic.  A lot of investors know Jeff in the mining industry and have been watching and waiting for this drill program to start.  They have eight fully permitted targets which should start getting drilled soon.  I highly suggest you look at the technical team here which includes well known guys as Adrian Fleming, Quinton Hennigh and Alistair Waddell.

Remember the best time to start acquiring juniors is during tax loss selling.  Find some juniors beaten down for no good reason that have been publishing great drill results such as Sun Metals and Triumph Gold.  These are some of the best drill results globally over the past few years and especially in Canada but for some reason has been sold by some institutions possibly facing redemptions.  

Have a good weekend and remember junior mining investors...

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit.  I may have received or intend to receive compensation for digital marketing services from these companies.  The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.  

 

TSX Venture Testing All Time Lows: Time for Planting Not Selling

I started investing and studying the junior mining business when I was still in high school.  I graduated in the class of 1998.  I missed BreX and saw all the stocks trading at literally a fraction of what they were worth years before.  I saw a contrarian opportunity as my friends all were in the dot com bubble at that time.

Living in the suburbs of NYC in a little town of Rye, NY, not far from Wall St. I took an early interest in stocks and finance.  I started going to conferences in NYC at the Marriot Marquis where I met a lot of the legends of today when they were starting out and the sector was completely out of favor.

I went on to study engineering and mathematics but the majority of my time in college was spent investing and communicating with the junior miners.  Many of them went on to become majors in the next 10 year bull cycle.

It was during the Great Financial Crisis in 2008 that I thought of creating a blog and network focused on precious metals and junior mining.  I gave up my secure job to focus on the junior miners full time.

The whole stock market was in the middle of a crash and the gains made since the turn of the millennium were literally wiped out in a couple of weeks.  I saw a great opportunity to once again load up on top junior miners trading at literally pennies on the dollar.  I believed that the Federal Reserve Bank would intervene by devaluing the dollar.  I was right for a little while but then gold and silver peaked out in 2011 while the stock market continued on a record run up until this present day.

This divergence between stocks and commodities has continued now for 8 years wiping out gains made in the miners over the past 20 years.  For the past 8 years I have seen some of the top minds in our mining sector retire, die or move into more stable areas like government work.  The S&P500 has gone straight up while our mining sector has gone the other direction.

Now the TSX Venture is testing all time lows.  We are below the credit crisis 2008 bottom despite gold moving up to $1500 and new record highs in Canada.  Its been painful for those who have tried for so many years.  However, if you are new to this space you may be able to catch the next major upswing like I did 20 years ago.  Learn from my mistakes and when technical targets are hit make sure to sell and diversify.  Selling is much harder than buying for some like myself.

Even though we are probing 10 year lows on the TSX Venture there are some signs that a rally in the juniors could be coming.  Gold has broken out into new highs after basing for many years.  Billionaires like Eric Sprott are starting to buy up juniors.  Prices are so low that any new interest could see the index springboard which it has done in the past if you are old enough to remember.

Look at the chart above from OrenInc showing all the deals from May - August Eric Sprott financed.  Eric has gray hair and he does not have to take all this risk as a billionaire but does it because he really believes.  His actions give me hope to as someone who has taken a ride up and a ride down the elevator of the TSX Venture.

Gold has been correcting since September 1st when we sent a note out predicting a consolidation before next push through old time highs of $1900. I thought the pullback ended after Fed Cut but we may need to wait longer now as bullish sentiment was just a little too high. Gold appears to have again failed at 50 DMA which means we have to consolidate for longer. There was too much $10k gold talk on TV instead we may pullback to test support at $1400 before next move to $1700.

 

The S&P 500 continues to hit new highs and the US Dollar has continued to find supporters and in a strong uptrend.

Lithium stocks like Albemarle and the lithium etf $LIT looks like the 2 year downtrend could be concluding.  Albemarle was $140 and not its bouncing off lows.  Also Tesla appears to be rallying as electric vehicle makers are starting to finally see a pickup. 

This week my deepest condolences goes out to the family and loved ones of the 37 miners killed and 60 wounded at the attack on Semafo in Burkina Faso.  Life is so precious and we must all remember in the financial game that health and time with our loved one is so much greater than wealth or the current value of our portfolio.  We must not forget all the miners who have died throughout the years to help our quality of life and so that we can have the things we like.

There was some significant news that came out after the New Orleans Gold show where the top juniors were marketing including drill results from Nevada from Barrian and an impressive economic study for Skeena at Eskay Creek whose booths were packed at the show I attended.  Another junior from Nevada, Blackrock Gold was getting tons of attention in New Orleans as they got a famous miner as a Chairman Bill Howald from Placer Dome.  Alianza's booth at New Orleans was packed as investors wanted to see the rocks from the new discovery in Keno Hill.  Triumph Gold is hitting some of the best porphyry gold results in Yukon and they are partnered with Newmont Goldcorp.  Outcrop Gold is going to be drilling in a core area of the colonial era high-grade silver mines in Colombia where the Spanish had grades of 4,300 g Ag/t from the smelter returns.  So much more news and developments I am discovering...stay tuned!

The next big event is next week in Zurich.  I hope to see the juniors get some attention but tax loss selling season is near and there has been non stop selling on the Venture since the beginning of 2018.  The Venture could test last years lows or even worse see a final capitulation waterfall decline to break through 2015 lows.  We may need to see one final wash out before the TSX Venture can make a powerful comeback.

As I conclude, just remember the following... time is greater than money.  Enjoy this weekend with the people you love and remember the best things in life are free.  Remember we can get back money lost, but can't get back time. 

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit.  Barrian and Alianza are website sponsors so that means I have a conflict of interest to help boost awareness of story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.