{"id":1198325,"date":"2020-07-28T07:00:00","date_gmt":"2020-07-28T12:00:00","guid":{"rendered":"https:\/\/oilandgas-investments.com\/?p=32657"},"modified":"2020-07-28T07:00:00","modified_gmt":"2020-07-28T12:00:00","slug":"drive-for-show-and-putt-for-dough-brownfield-is-the-better-bet","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1198325","title":{"rendered":"Drive For Show And Putt For Dough \u2014  Brownfield Is The Better Bet"},"content":{"rendered":"<h2 style=\"text-align: center;\"><strong><span style=\"color: #800000;\">Drive For Show And Putt For Dough<\/span><\/strong><br \/><strong><span style=\"color: #800000;\">Brownfield Is The Better Bet\u00a0\u2014<\/span><\/strong><\/h2>\n<div>Most of the stories I\u2019ve been giving you lately are the junior gold exploration stocks with strong potential for a new discovery.<\/div>\n<div>\u00a0<\/div>\n<div>Watching a junior explorer make a new discovery is like watching a golfer crack a 300 yard drive off the tee.\u00a0It is so much fun.<\/div>\n<div>\u00a0<\/div>\n<div>Over the years, however, my brain has become more closely linked to my bank account.<\/div>\n<div>\u00a0<\/div>\n<div>And my brain knows that there is a better way to invest in the gold sector.<\/div>\n<div>\u00a0<\/div>\n<div>There is no question the lowest risk, highest reward place to invest money in the gold mining space is with a good team taking a\u00a0<span style=\"color: #800000;\">brownfield<\/span>\u00a0play into production.<\/div>\n<div>\u00a0<\/div>\n<div>With the right brownfield asset, you create hundreds of millions in market cap with a low risk, two-foot, tap in putt.\u00a0<\/div>\n<div>\u00a0<\/div>\n<div><span style=\"color: #800000;\">Brownfield<\/span> by definition means lots of infrastructure and permits in place with tens of thousands of meters of drilling.\u00a0Greenfield is high risk exploration, brownfields is low risk development.<\/div>\n<div>\u00a0<\/div>\n<div><em>Greenfield is Driving For Show, Brownfield is Putting For Dough.<\/em><\/div>\n<div>\u00a0<\/div>\n<div>And the brownfield play I\u2019ll show you tomorrow\u2014a former gold-silver producer in the Americas&#8211;is a like a two-foot tap-in putt for what\u00a0<strong>could be\u00a0<\/strong>close to a $1 billion payday\u2014or almost 10X the current market cap of this company.<\/div>\n<div>\u00a0<\/div>\n<div>Brownfield\u00a0development is about developing the sure thing.\u00a0This is where you manufacture money, not hit and hope. With brownfield development you know all of the variables that you are working with.<\/div>\n<div>\u00a0<\/div>\n<div>At these gold prices&#8211;$1900\/oz and counting!&#8211;brownfield development projects are capable of minting money and doing it very quickly.<\/div>\n<div>\u00a0<\/div>\n<div>I believe this company is the best brownfield development story in the market today. It\u2019s a former producer in the Americas. The US$200 million in infrastructure is still there\u20143000 ton per day mill, power, camp, lab etc.\u2014complemented by another estimated US$50 million of drilling.<\/div>\n<div>\u00a0<\/div>\n<div>Oh yeah, water and mining permits and over 200,000 oz of gold in waste dumps ready to go is there too.<\/div>\n<div>\u00a0<\/div>\n<div>In 2017, a multi-billion dollar global engineering company verified a 5.5 million ounce equivalent resource in the ground.<\/div>\n<div>\u00a0<\/div>\n<div>Now, that is NOT 43-101 compliant, but the 1700 drill holes totalling 120,000 metres of drilling by a major gives me a HIGH degree of confidence in this number.<\/p>\n<\/div>\n<div><a href=\"https:\/\/oilandgas-investments.com\/?attachment_id=32660\" rel=\"attachment wp-att-32660\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-32660\" src=\"http:\/\/oilandgas-investments.com\/wp-content\/uploads\/2020\/07\/NOM-global-historic-resource.jpg\" alt=\"\" width=\"1016\" height=\"357\" srcset=\"http:\/\/oilandgas-investments.com\/wp-content\/uploads\/2020\/07\/NOM-global-historic-resource.jpg 1016w, http:\/\/oilandgas-investments.com\/wp-content\/uploads\/2020\/07\/NOM-global-historic-resource-300x105.jpg 300w, http:\/\/oilandgas-investments.com\/wp-content\/uploads\/2020\/07\/NOM-global-historic-resource-768x270.jpg 768w, http:\/\/oilandgas-investments.com\/wp-content\/uploads\/2020\/07\/NOM-global-historic-resource-696x245.jpg 696w\" sizes=\"(max-width: 1016px) 100vw, 1016px\" \/><\/a><\/p>\n<\/div>\n<div>\n<div>\n<div>\u00a0The current table of resources is not intended to be declared in a public instrument such as a NI43-101 report.<\/div>\n<div>\u00a0<\/div>\n<p>To me, that resource alone is worth at least 3x times the current share price, just to value the gold in the ground at US$44\/oz that is the average peer valuation (as per Haywood Securities most recent comp sheet).<\/div>\n<div>\u00a0<\/div>\n<div><em>For me&#8211;that takes all of the risk out of the story.<\/em><\/div>\n<div>\u00a0<\/div>\n<h2 style=\"text-align: center;\"><strong><span style=\"color: #800000;\">THE ASSET IS THE STEAK<\/span><\/strong><\/h2>\n<h2 style=\"text-align: center;\"><strong><span style=\"color: #800000;\">THE EXPLORATION POTENTIAL IS THE SIZZLE<\/span><\/strong><\/h2>\n<div>\u00a0<\/div>\n<div>I\u2019ve spoken to both the lead geologist on the project now, and to the man who put this asset into production originally.\u00a0It is a project that he worked on decades ago when gold was a fraction of the $1,900 per ounce price we currently have.<\/div>\n<div>\u00a0<\/div>\n<div>He told me that decades ago, drilling mostly stopped at 70 meters&#8211;where they could mine profitably at $400 per ounce gold at that time.\u00a0<\/div>\n<div>\u00a0<\/div>\n<div>But they know the gold runs much deeper\u2026\u2026.down to 200 meters.\u00a0There are potentially millions of more ounces\u2014<em><strong>in and around the same open pits!!!<\/strong><\/em><\/div>\n<div>\u00a0<\/div>\n<div>At $1,900 per ounce gold there is so much more that can be profitably mined.\u00a0This project is\u2026potentially now\u2026I\u2019m not allowed to say FOR SURE\u2026exponentially bigger than anyone believes.<\/div>\n<div>\u00a0<\/div>\n<div>This is what I do.\u00a0I find the undiscovered gold plays that the top management teams have been working on and bring them to you first.<\/div>\n<div>\u00a0<\/div>\n<div>Today the shares of this company trade at a deep discount to what the resource is worth today (vs its peers)\u2026but at just a tiny fraction of what the exploration potential here is.<\/div>\n<div>\u00a0<\/div>\n<div>This isn\u2019t rocket science\u2026in this red hot gold market there have been plenty of arm\u2019s length acquisitions of gold resource that have established the going rate.<\/div>\n<div>\u00a0<\/div>\n<div>What I\u2019m seeing is that gold resource in the ground is worth an average of US$44 per ounce and for the Americas, it\u2019s commonly more\u2014like, up to $145\/oz.<\/div>\n<div>\u00a0<\/div>\n<div>At $44\/oz AuEq, just the 5.5 million ounces (remember that\u2019s not officially 43-101 compliant!) that have already been confirmed are worth US$242 million.\u00a0This company has ONE THIRD that market cap.<\/div>\n<div>\u00a0<\/div>\n<div>That leaves huge upside if they:<\/div>\n<div>\u00a0<\/div>\n<div>A) find more gold or<\/div>\n<div>B) the Market wisely chooses to up-value these ounces as they are in the Americas, in the same pit that was produced before, and see that infrastructure is still in working order. (The previous owner started the mill every quarter to keep it warm!!)<\/div>\n<div>\u00a0<\/div>\n<div>This is a low risk development play with an already huge resource\u2014with the crazy upside of a resource that could be 2-4x that with the (much) higher gold price now.\u00a0In the Americas.<\/div>\n<div>\u00a0<\/div>\n<div>What we are looking at here is a tap-in putt.\u00a0A two-footer straight up the hill.<\/div>\n<div>\u00a0<\/div>\n<div>The kicker for me is that the man behind this company has a documented track record of quickly monetizing undervalued assets like this:<\/div>\n<div>\u00a0<\/div>\n<div>1 \u2013 Taking his former mining company from a $1 million market cap to a $520 million sale to a larger miner<\/div>\n<div>2 \u2013 Sold another mining company for $350 million<\/div>\n<div>3 \u2013 Taking yet another stock from a $1 million starting valuation to $800 million within two years and eventually a market valuation of $13 billion<\/div>\n<div>That is why this gold stock is 5.5 million ounce brownfield development tap-in gift to you.<\/div>\n<div>\u00a0<\/div>\n<div>Meanwhile the upside is every bit the equivalent of a big time exploration punt.\u00a0<\/div>\n<div>\u00a0<\/div>\n<h2 style=\"text-align: center;\"><strong><span style=\"color: #800000;\">There Are Few Big Projects In Safe Jurisdictions<\/span><\/strong><\/h2>\n<div>\u00a0<\/div>\n<div>At current gold prices many of these projects come back to life and create big time cash flow.<\/div>\n<div>\u00a0<\/div>\n<div>And this already successful team will do it virtually risk free.\u00a0I can summarize the appeal of brownfield development in this gold market in four simple words\u2026.<\/div>\n<div>\u00a0<\/div>\n<div>THE ROCKS DON\u2019T CHANGE!!!<\/div>\n<div>\u00a0<\/div>\n<div>Most of the infrastructure spending has also been done.\u00a0Power lines, access to water, permits, roads, everything is already in place. Updating capex should be very little, and they turn on production and have a cash cow up and running incredibly quickly.<\/div>\n<div>\u00a0<\/div>\n<div>This mine operated when gold was just $400 per ounce.\u00a0It ran for four years and made some nice money.<\/div>\n<div>\u00a0<\/div>\n<div>But not all of the gold was mined.\u00a0That\u2019s a fact. In fact, it\u2019s likely that not even close to all the gold was mined.<\/div>\n<div>\u00a0<\/div>\n<div>Only three years ago one of the largest independent resource evaluators estimated there was at least 5.5 million ounces equivalent of non-43-101 compliant resource there.<\/div>\n<div>\u00a0<\/div>\n<div>Again\u2026.the rocks haven\u2019t changed.\u00a0But the economics of those rocks have changed because the price of gold has more than quadrupled since the first go round.<\/div>\n<div>\u00a0<\/div>\n<div>5.5 million ounces\u2026.with even more exploration potential remaining.<\/div>\n<div>There is huge demand for projects of this size.<\/div>\n<div>\u00a0<\/div>\n<h2 style=\"text-align: center;\"><strong><span style=\"color: #800000;\">DO NOT MISS MY E-MAIL TOMORROW!!!<\/span><\/strong><\/h2>\n<div>\u00a0<\/div>\n<div>As an e-mail subscriber of mine you know that together we have been on a tear in this red-hot gold market with junior exploration stories.<\/div>\n<div>\u00a0<\/div>\n<div>Tomorrow the brownfield gold stock that I\u2019m sending you is different.<\/div>\n<div>This one is a tap-in, a two-foot putt.<\/div>\n<div>\u00a0<\/div>\n<div>The company is already on the green and just needs to tap in that putt.<\/div>\n<div>The large but non-compliant gold is there.\u00a0Millions and millions of known ounces.<\/div>\n<div>\u00a0<\/div>\n<div>The infrastructure is there.\u00a0Very little spending is required to turn this into a cash cow.<\/div>\n<div>\u00a0<\/div>\n<div>Investors have an added bonus of HUGE exploration upside.\u00a0Nobody has ever drilled this project with current gold development economics in mind.<\/div>\n<div>Today was about getting you ready.\u00a0Tomorrow I give you all of the specifics:<\/div>\n<div>\u00a0<\/div>\n<div>1 \u2013 The name of this huge brownfield development project<\/div>\n<div>2 \u2013 An exact look at what I think this asset and stock are really worth<\/div>\n<div>3 \u2013 The team behind the project including the geologist who was here decades ago and the Chairman who is a serial builder and seller of companies<\/div>\n<div>4 \u2013 The most important part\u2026\u2026THE NAME AND TICKER of this (non-compliant!) 5.5 million ounce tap-in.<\/div>\n<div>\u00a0<\/div>\n<div>They don\u2019t come much bigger or easier than this brownfield opportunity.<\/div>\n<div>I love exploration stories but I know\u00a0<em>that this is the kind of stock that true investors want to own.<\/em><\/div>\n<div>\u00a0<\/div>\n<div>All the reward without all of the exploration risk.<\/div>\n<div>\u00a0<\/div>\n<div>Tomorrow.\u00a0First thing.\u00a0Watch your in-box!<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Drive For Show And Putt For DoughBrownfield Is The Better Bet&nbsp;&mdash; Most of the stories I&rsquo;ve been giving you lately are the junior gold exploration stocks with strong potential for a new discovery. &nbsp; Watching a junior explorer make a new discovery is like watching a golfer crack a 300 yard drive off the tee.&nbsp;It [&hellip;]<\/p>\n","protected":false},"author":117,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[528],"tags":[264],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198325"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/117"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1198325"}],"version-history":[{"count":4,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198325\/revisions"}],"predecessor-version":[{"id":1206676,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1198325\/revisions\/1206676"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1198325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1198325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1198325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}