Operations at the El Cubo underground mine in Guanajuato, Mexico, have been suspended and all staff will be laid off as the mine, plant and tailings facilities are placed on care and maintenance. NYSE- and TSX-listed Endeavour Silver announced the decision on Thursday, stating that the mine’s reserves and resources had been exhausted.
GSP Resource Corp. [GSPR-TSXV] shares rallied strongly Monday November 18 after the company released an exploration update from its Olivine Mountain Project in southwestern British Columbia. It said mineralized rock has been intersected in two drill holes in an area where previous sampling has confirmed the presence of copper, silver and other metals.
GSP has an option to acquire a 100% interest in and title to the Olivine Mountain Property, which is located in the Similkameen Mining Division, about 25 km northwest of Princeton.
In a press release on November 12, 2019, GSP said it was planning a 1,000-metre inaugural drilling program to test five separate massive copper/nickel sulphide targets across the 3,021-hectare property.
The company said drill crews were targeting the western flank of the project near the Asp 14 showing and targets that were identified during the previous field season which featured a VLF-EM airborne survey, a soil geochemical survey of the entire property, plus mapping and sampling.
The company has said selected samples from the Asp 14 showing assayed 3.51% copper and 11 ppm silver over a sample width of 3.4 metres. One sample confirmed the presence of significant amounts of copper, gold, palladium and anomalous contents of platinum, nickel and cobalt.
Referring to the local geology, the company has said the claims are underlain by rocks of the Alaskan-type Tulameen Mafic/Ultramafic Complex. It said the Tulameen ultramafic complex is one of the only locales in southern B.C. that offers the potential for the discovery of a commercially viable nickel deposit such as those discovered at Voisey’s Bay, Labrador or Norilsk, Russia.
In a progress report released on Monday, GSP said it had anticipated drilling one 100-metre hole in the vicinity of the Asp 14 showing. However, it said drilling at this location was expanded to include a second 100-metre hole.
Drill core from the two holes has been logged and split, and samples are currently being shipped to the laboratory for assaying. It also said the drill rig has now been moved approximately 1.5 km southwest where it is currently testing four separate targets with four 200-metre vertical holes.
“The current program is now expected to total six holes, up from five previously,” GSP said in the progress update.
Meanwhile, it said two completed holes have intersected mineralized rock that was observed as a partially altered fine-med grained gabbro of the Tulameen maif/ultramafic complex. “Zones of pyrite, chalcopyrite, and malachite mineralization ranging from disseminated to semi massive have been identified within an approximately 20-metre thick siliceous shear zone,” the company said.
Investors applauded the results, sending GSP shares up 28.3% or $0.075 to 34 cents on volume of 753,684 shares traded. The shares are currently trading in a 52-week range of 12.5 cents and 44 cents.
“We are pleased to have intersected mineralization on the first of two holes of the drill campaign in the area of the Asp 14 showing,’’ said GSP President and CEO Simon Dyakowski. “Assay results of the mineralization in this area will be key in determining follow-on work in subsequent phases of exploration,” he said.
Dyakowski went on to say that weather conditions continue to be conducive to drilling, and as a result, crews have been able to modestly expand Phase 1 drilling with the additional drill hole at Asp 14.
GSP shares were listed on the TSX Venture Exchange in November, 2019, that was after the company completed an initial public offering comprised of 2.5 million shares, priced at 20 cents a share, and 1.0 million flow-through common shares priced at 25 cents each.
Under a February 23, 2018 agreement, GSP has an option to acquire a 100% interest in the Olivine Property from privately-owned Platinum Belt Resources Inc.
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.
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...
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Filo Mining Corp. [FIL-TSXV, NASDAQ First North] said the most extensive exploration program in the company’s history is now under way at its 100%-owned Filo del Sol Project, which straddles the border of Region III, Chile and San Juan Province, Argentina.
The company said three diamond drills are on site with a fourth scheduled to arrive this week. “I’m excited to report that we are off to an early start and drilling is under way at Filo del Sol,” said Filo CEO Adam Lundin. “We will soon have four rigs turning; and with a plan to drill over 10,000 metres, this season, this is the most extensive exploration in the company’s history,” he said.
Filo shares advanced on the news, rising 0.45% or $0.01 to $2.21, and now trade in a 52-week range of $2.01 and $3.25.
Filo Mining is a member of the Lundin Group of companies. The Filo del Sol Project is a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry gold system.
It is located in the Andes Mountains, 140 km southeast of the Chilean city of Copiapo and was recently the subject of a Pre-Feasibility Study that is based on proven and probable reserves of 259.1 million tonnes, grading 0.39% copper, 0.33 g/t gold, 15.1 g/t silver, or 2.2 billion pounds of copper, 2.7 million ounces of gold and 126 million ounce of silver.
The Pre-Feasibility Study envisages annual production of approximately 67,000 tonnes of copper (including copper as a precipitate), 159,000 ounces of gold and 8.6 million ounces of silver at a cost of US$1.23 per pound of copper equivalent.
The pre-production capital cost is estimated at $1.27 billion. Over a 14-year mine life (including pre-stripping) the operation is expected to produce almost 1.75 billion pounds of copper as cathode, and 1.92 million ounces of gold and 104 million ounces of silver as doré over a 13-year leach feed schedule.
Additional copper is also expected to be recovered as high-grade copper precipitate.
The Pre-Feasibility Study contemplates that Filo del Sol would be mined using conventional open pit methods. It is forecast that ore would be trucked from the open pit to a conventional two-stage crusher, designed to process 60,000 tonnes per day of ore, followed by hydrometallurgical processing to produce copper cathodes and gold-silver doré.
That material would be transported by truck to Puerto Caldera, which is located approximately 245 km by road from the plant site.
In the May 28, 2019 press release, Filo CEO Adam Lundin said results from the 2018/2019 exploration program provided a step change in the company’s understanding of the Filo del Sol mineral system and continued to demonstrate that the ultimate size of the deposit could be well beyond Filo’s current mineral resources estimate.
Previous drilling also extended the depth of mineralization 530 metres deeper than previously known. Exploration crews also outlined continuous mineralization over a 3-km north-south distance, leaving a deposit that is open in both directions beyond this.
On Thursday November 14, the company said three holes are under way in the Filo Deep area testing for extensions of both the high-grade gold mineralization encountered last season, and for copper-gold mineralization underlying drill holes FSDH028 and FSDH030, both of which ended in strong mineralization.
The fourth rig will begin drilling at the newly discovered Tamberias West Zone, where surface mapping and trenching during the past season encountered steam-heated alteration to that which outcrops above the Filo del Sol deposit.
Reinterpretation of the fault systems as part of the regional geology mapping effort last season has resulted in the identification of a northeasterly structure (Portozuelo fault) that may control the geometry of the deposit. This puts the steam-heated alteration in context as the possible southwestern continuation of the Filo del Sol deposit and makes it a high priority drill target, the company said.
Assay results from the current drill program will be released early in the New Year.
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Last week did some serious damage to the gold and silver markets
Doc joins me on this Veterans Day and Remembrance Day to share his thoughts on where gold and silver could go after the selloff last week. The close on Friday has Doc looking at some lower levels in the short term. We also touch on the overall strength of the US markets.
I had the opportunity to visit for several hours with E.B. earlier this year. He is very passionate about his opinions and views on the markets, most of which I agree. E.B. Tucker is also a paid subscriber to my services at http://CommonStockWarrants.com. Perhaps you should also consider a subscription as well because I have many professional investors who want to know which stock warrants are currently trading along with the complete details.
I sat down for half a dozen media interviews earlier this year where I called for $1,500 per ounce of gold in 2019.
In several cases, the hosts nagged me about my prediction, asking if I would stick with it. I did. In August, it hit my target.
Now, the price has retreated a bit since, but gold’s still flirting with $1,500 per ounce, as I write.
Here’s why I’m writing you today: I believe $1,500 is only the beginning for gold.
I expect gold to take out its previous high of $1,900. That’s a 27% gain from here. And I expect that to happen in 2020.
In fact, as I told Kitco News recently, from there I see it hitting $2,200 – about a 47% rise from its current price of $1,492 per ounce.
Today, I’ll share why… and how you can start taking advantage…
A Major Gold Rally Is Underway
All of the serious money I’ve made investing came through positioning for a big move and sitting tight. Trading is tough. In and out all the time can work over a short period. But the big gains come from sitting tight and letting the bull market run.
After hitting an all-time high in 2011, the price of gold fell 45% to a low of $1,052 in late 2015.
While the Obama administration and the Federal Reserve experimented with radical money policies, gold stayed stuck. Notice in the chart above it didn’t do much after hitting its 2015 low.
What’s bad for gold is unbearable for gold miners. They commit to projects assuming they’ll sell produced gold for $1,500. Then it falls to less than $1,100. That means the project is bankrupt before it pours the first gold ounce.
That period is over.
I can give you a list of anecdotal evidence as proof. Several large mining firms combined this year in order to survive. These were not bidding war takeovers. CEOs got over their egos and merged to avoid losing their companies entirely.
Political dysfunction and ballooning deficits also set the stage for gold today. The three largest central banks in the developed world recently declared they’ll do anything to stimulate their economies. That’s central bank lingo for “create more money.”
But we need more than strong anecdotes to risk money on the gold sector.
From our view, that’s why the chart of gold is so important. It’s how I determined $1,500 was an important target for gold this year. If it hit that target, which it did, I felt it was a green light to invest more aggressively for higher prices.
The gold chart below goes back to 2014. Notice that after gold hit its low in late 2015 (circled in red), each rally that followed registered a higher low. The pullbacks of 2016 and 2018 (also circled in red) each hit low points higher than the last. To us, this meant it was a matter of time before gold exploded higher.
Breaking $1,500 was the first test. Now, I expect it to correct, which is market speak for rest and get ready for the next leg higher.
That next move for gold will catch mainstream asset managers off guard. As I said above, I expect it to eventually take out its 2011 high. That’s why the current pullback in gold is the perfect time to position for what may come next.
If you haven’t already, the first step is buying some physical gold. If you’re new to gold, start with common 1-ounce coins like the ones offered here by Gainesville Coins.
(I asked Gainesville Coins to create this page as a starting point for Casey Daily Dispatch subscribers who are new to physical gold. We do not receive any compensation from Gainesville Coins for bringing you this offer.)
After owning physical gold, you should consider speculating on select mining stocks, which can provide leverage to a rising gold price.
Let me explain…
Gold Mining Stocks… and the Power of Leverage
The word “leverage” usually means borrowing. That’s not the case at all in the gold market.
If you aren’t familiar with the concept of leverage in gold stocks, here’s a quick example of how powerful it can be…
Say the price of gold rises from $1,300 to $1,400. That’s roughly an 8% gain. If you own physical gold, you’re up 8%.
Now, say a mining company owns a million ounces of gold in the ground, and gold is trading at $1,300. The value of the gold in the ground isn’t simply $1.3 billion (1 million ounces x $1,300 per ounce). Instead, the gold in the ground is worth much less than that, because it will cost a lot of money to extract.
Say it costs the company $1,250 per ounce, all-in, to mine the gold. At a gold price of $1,300, the company has a potential profit of $50 on each ounce of gold.
However, if the price of gold rises only 8% to $1,400, the company’s profits per ounce increase by 200% ($1,400 – $1,250 = $150 profit per ounce). This small move in gold can cause the stock price to increase 40%, 50%, or more.
This is why a small increase in the price of gold can cause a gold stock to soar many times that amount.
It’s happened before…
Gold producers boomed during three separate cycles when gold surged: 1979-1980, the mid-1990s, and 2001-2006.
First up, the king of all gold bull markets: 1979-1980…
Gold more than tripled during this period. But gold stocks more than quadrupled.
Returns of Producers From 1979-1980
Company
Price on
12/29/1978
Sept. 1980 Peak
Return
Campbell Red Lake Mines
$28.25
$94.75
235.4%
Dome Mines
$78.25
$154.00
96.8%
Hecla Mining
$5.12
$53.00
935.2%
Homestake Mining
$30.00
$107.50
258.3%
Newmont Mining
$21.50
$60.62
182.0%
Dickinson Mines
$6.88
$27.50
299.7%
Giant Yellowknife Mines
$11.13
$39.00
250.4%
AVERAGE
322.5%
Gold
214.0%
This wasn’t the only time gold stocks ran further than gold itself…
There was another boom in the 1990s. The average gold producer went up more than 200%…
Cambior rose 124%. Kinross Gold returned more than 190%. And Manhattan Gold & Silver skyrocketed over 760%.
All while gold only rose 8%.
Then, another big boom hit from 2001-2006.
Gold returned 158%, while the average gold producer gained over 400%.
Newmont shot up 270%. Gold Fields soared over 500%. And Goldcorp returned over 800%.
As you can see, an increase in the price of gold (even a small one) can lead to huge returns.
Now’s the Time to Take Advantage
You don’t want to be sitting on the sidelines while the motherlode of all gold rallies gains momentum…
Remember, before owning a gold stock, it’s wise to have some physical gold.
Then, you can speculate on higher gold prices by buying gold miners, which gives you the chance to multiply your money in a gold bull market.
You can look into an exchange-traded fund (ETF) like the VanEck Vectors Gold Miners ETF (GDX), which holds a basket of gold stocks.
But the best way to take advantage is by following our advice in my newsletter Strategic Investor. In our core portfolio we have a world-class gold miner that shot up 56% during gold’s move from May to September of this year. This is no penny stock. This multibillion-dollar miner turns a profit and pays a dividend.
The same goes for silver. Our top pick surged 83% over the same period. It too pays a dividend.
In short, now’s the time to strike before gold really takes off.
Just remember, gold stocks are extremely volatile. Like in any industry, the stocks of stronger companies will go up more than those of the weaker ones. As always, never bet more money than you can afford to lose.
It only takes a small stake in the right companies to make a fortune as gold prices rise.
Pan American Silver Corp. [PAAS-TSX, NASDAQ] on Thursday November 7 reported a profit of US$37.71 million or 18 cents per share in the third quarter of 2019, a result that reflects strong mine operating earnings, and an increase in investment income.
However, the company said net income in the quarter was reduced by a one-time, non-cash US$15.6 million adjustment for depletion and amortization related to the reclassification of its Timmins, Ontario operations.
Effective third quarter, 2019, the company said its Timmins West and Bell Creek (together Timmins) are no longer classified as held for sale, and net income generated by Timmins is now included in the company’s income statement in the normal course of business. Ore from both mines is processed at the Bell Creek mill.
“Our operations performed well in Q3, generating US$81.9 million in operating cash flow,” said Pan American President and CEO Michael Steinmann. “We are reducing our cost guidance for the second time this year, and we remain on track to achieve the production guidance for 2019, as revised on August 7, 2019,” he said.
Pan American recently acquired Tahoe Resources Inc. in a US$1 billion transaction that created the world’s second largest primary silver producer. The company owns and operates mines in Mexico, Peru, Canada, Argentina and Bolivia. It also owns the Escobal mine in Guatemala, which is not operating right now.
Strong free cash flow has allowed Pan American to repay US$20 million on its credit facility and advance the skarn discovery at the La Colorada mine in Zacatecas, Mexico, where the company said it encountered exceptional drill intercepts in the quarter.
Third quarter silver production of 6.7 million ounces and gold production of 150,200 ounces have put the company on track to achieve management’s guidance for 2019, which was revised on August 7, 2019. The company has guided the market to anticipate silver production this year of between 25.3 and 26.3 million ounces and gold production to between 550,000 and 600,000 ounces.
The adjustment reflected the postponement of commercial production from the COSE and Joaqun projects in Argentina by about three months, mine scheduling adjustments at Morococha in Peru and better than expected performance at Shahuindo, Peru during the first six months of 2019.
Pan American posted revenue of US$352.2 million in the third quarter of 2019, a number that excludes revenue associated with a build in metal inventory during the third quarter, estimated at US$17.8 million, which is expected to be released in the fourth quarter of 2019. All-in-sustaining costs came in at US$5.47 for silver and US$729 for gold respectively during the third quarter.
Pan American Silver shares advanced on the news, rising 1.9% or 42 cents to $22.57 on volume of over one million shares. The 52-week range is $13.83 and $25.99.
Trade Fears Disappointing and Precious Metals Falling Hard – Here Are The levels To Watch
Doc joins me today to share his thoughts on the levels to watch for gold, silver, and gold stocks. All are getting hit hard today on the back of more positive comments on the US/China trade front. We look into next year and some of the levels Doc thinks could be reached by year end or early next year.
What’s driving the aggressive move out of PMs and bonds
It’s a touch day for gold and silver investors as both metals are selling off along with other risk off assets. The potential of a Phase 1 Trade deal is being blamed however there is a bigger picture theme of money flowing into equity markets around the world. Ed Moya, Senior Market Analyst at OANDA joins me to share his thoughts on what is driving these big moves down today in safe assets.
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