• Urban Mining Twins Update

    Urban Mining Twins Update

    Source: Clive Maund for Streetwise Reports 04/23/2018 Technical analyst Clive Maund discusses two companies that have developed a process to extract minerals from E-waste.On 15th March it was decided it was best to step aside from Enviroleach Technologies Inc. (ETI:CSE) and Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB), because it looked like the correction that was already well underway by then would continue and result in us being able to buy them back at a better price. This has since proved to be the case, although we are "slow off the mark" with Enviroleach, which could have been bought back late in March at a very good price just above C$1.00. Nevertheless they are looking very good again now, for the reasons we will briefly look at. There is no reason to talk about the positive fundamentals of these stocks because they were discussed earlier. Starting with Enviroleach, an 11-month chart enables us to view the entire price track from last May–June, and to delineate its strong uptrend, which is believed to remain in force for good reason—because the volume pattern continues to be strongly bullish, which is why the Accum-Distrib line continues to make new highs. This is very bullish and points to a new upleg dead ahead, and in fact it has already started, even though the price has yet to break out of the corrective downtrend channel—it started right after what is believed to be the low for the correction late in March. Other bullish factors to observe are momentum (MACD) turning higher and the bullishly aligned moving averages. The 6-month chart for Enviroleach enables us to see recent action in more detail, and in particular that Friday's candlestick, because of its position, looks like a bull hammer, especially as most of the volume was upside volume, which is why the Accum line advanced further. This chart also makes direct comparison with the Mineworx chart lower down the page more easy, because it is for the same timeframe. On the 6-month chart for Mineworx we see that we have a somewhat better entry point to buy back than with Enviroleach, because it is still not far above the low of its corrective downtrend. This is a good point to pick it up again, because it is just above a zone of support which itself is just above its rising 200-day moving average. Momentum (MACD) has just turned higher indicating that a new uptrend should now start, and we have a bullish volume pattern with recent light volume indicating that the correction is done and a strong Accum line making new highs, suggesting that another upleg is in the works. Conclusion: it's a good time to buy back both Enviroleach and Mineworx in the reasonable expectation of a new upleg getting underway soon, which should be sizeable and result in good gains. Enviroleach Technologies website. Enviroleach Technologies Inc, ETI. CSX, ...read more
  • Is a New Gold Rush On in Brazil?

    Is a New Gold Rush On in Brazil?

    Source: Streetwise Reports 04/23/2018 With a project located on the site of a massive gold rush, this explorer is attempting to find the hard-rock source of the region's placer gold, and an updated resource is expected any day.The land that Cabral Gold Inc.'s (CBR:TSX.V; CBGZF:OCT) Cuiu Cuiu gold project sits on was once the territory of garimperos, migrating miners who came during the massive Brazilian gold rush of 1978-1995 and panned for gold. It's believed that the garimperos mined some 2 million ounces of placer gold in the area which would make it the largest placer camp in the entire region. The hard-rock source of all that gold has never been identified, but Cabral Gold Inc. is focused on fixing that. Last month, Cabral came one step closer with the announcement on March 21 that it has identified several new high-grade targets on the Cuiu Cuiu property in northern Brazil. The company explained that the "initial 2018 campaign of work involves trenching, mapping, auger sampling, soil sampling, and rock sampling in areas of recent and abandoned artisanal workings." Cabral highlighted the following results: Select results from reconnaissance rock sampling on new targets include: 264.0 g/t gold from the Germano target. 80.1 g/t gold from the Vila Rica target 17.7 g/t gold from the Belisca Lua target Initial channel sampling returned: 0.5m @ 43.3g/t gold at the Vila Rica target 5m @ 3.16g/t gold at the Jerimum de Cima target The only area of that five that has seen historical drilling is the Jerimum de Cima target. Cabral noted that among the 13 holes drilled there included results of 39m @ 5.13g/t gold and 18m @ 1.17g/t gold. Back in 2011, a previous operator of the project identified an Indicated resource of 0.1 million ounces gold and an Inferred resource of 1.2 million ounces. Cabral noted that it is updating that resource estimate to include drilling performed after 2011 and expects to release it soon. The company expects to begin drilling in June. The region has grabbed the attention of other miners. Cuiu Cuiu is near Eldorado's Tocantinzinho's project, which has Measured and Indicated resources of 2.1 million ounces. Neighboring Mato Grosso state has seen a staking rush recently, with Anglo American and Nexa Resources acquiring more than 3 million hectares of land in September and Altamira Gold announcing the additional acquisition of 52,000 hectares. According to Altamira Gold, "the catalyst for this staking rush is a rumored porphyry copper discovery in the eastern part of the Juruena Belt." Cabral has caught the attention of industry observers. Brien Lundin, in the April issue of Gold Newsletter, finds that Cabral has a "near-ideal combination of near-term and long-term price catalysts." On the new resource estimate that is expected shortly, Lundin states, "Just how much this new estimate will grow the resource is unknown, but the underlying data suggest it will be substantial. If so, the estimate's release could be a short-term catalyst for ...read more
  • Diamond Stock Set to Put in a Sparkling Performance

    Diamond Stock Set to Put in a Sparkling Performance

    Source: Clive Maund for Streetwise Reports 04/23/2018 Technical analyst Clive Maund charts a diamond company that he rates a strong speculative buy.If you are a speculator or trader who doesn't like to wait weeks or months for an investment to pay off and wants to see results within days or even hours, this one is for you. Lithoquest Diamonds Inc. (LDI:TSX.V) blasted higher around the start of the month with a gap move on massive volume, due to news of a discovery, as we can see on its latest 6-month chart below, and after continuing higher for a few days to become extremely overbought short-term, the usual reaction set in, which brought it back towards what is now strong support in the C$0.44–C$0.47 zone. This reaction has the classic signature of a countertrend reaction in a fast moving market, as it has been accompanied by a rapid die back in volume and a convergence of the price oscillations into an increasingly tight range—in other words it is a fine example of a bull Flag or Pennant within a powerful uptrend, which means it should lead to another sharp upleg very soon. Another bullish indication on this 6-month chart is that both of its volume indicators have remained elevated as the correction has occurred. The 3-month chart enables us to see what is going on in a little more detail, and gives us an opportunity to append the RSI and MACD indicators to the chart. The former has already almost completely neutralized and while the latter, the MACD, has a long way to go before it has, its histogram has already corrected all the way back to the zero line and in a fast moving situation like this, that is enough to create the conditions for another upleg. This bull market in Lithoquest began with a large gap on massive volume, and the rule is that the bigger the gap and the higher the volume, the more bullish it is. It is most unusual for a move like that to lead to a "flash in the pan" advance—normally it leads to a bull market that lasts for many months and sometimes years. This is another big reason why it is likely to advance from here. Lithoquest is rated an immediate strong speculative buy, and risk may be limited by placing a stop below the apex of the outer Pennant—outer because a breakdown from the inner one would not spoil the pattern, and we can see that there is strong support at and above C$0.50. Lithoquest trades in hopelessly light volumes on the U.S. OTC market where for this reason it should be avoided. There are 45.9 million shares in issue. Many years ago the Diamond Marketing Board or whatever they called themselves did an excellent job of connecting diamonds with the proposal of marriage, so that young men intent on this ...read more
  • Whither Silver from Here?

    Whither Silver from Here?

    Source: Michael Ballanger for Streetwise Reports 04/22/2018 Precious metals expert Michael Ballanger describes why he thinks the upcoming week will be "favorable" for silver investors.First, this has been a spectacular month for me in that I was fortunate enough to have parlayed the profits from the UVXY trade successfully, having bought a whackload of call options in the Physical Silver ETF (SLV:US) and a 300-lot of the Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) May $5 calls. As I wrote earlier in the week, I think we are seeing the biggest dislocation between any two assets in decades with the current ratio of gold to silver. For gold to be threatening a multiyear breakout of the $1,375 resistance while silver atrophies in the mid-$16s was , at least to me, absurd. And absurd it was, as the GTSR (gold to silver ratio) hit 86 late last week and now resides at slightly above 78. I placed a rather large bet on silver outperforming gold on Tuesday, with the ratio at 82.3:1, so at 78.06 to close out the week and the SLV calls up 80% with RSI still only 63.25, it feels like we are going to ring the register shortly despite the modest setback today. As bullish as I might like to think that silver is, I have been forced to look the creature called "greed" straight in the eye and deal with him. Painfully, embarrassingly, over the years, I have learned that it is exactly at the point where the PMs appear to be ready to "explode" that I have committed the greatest of human errors by letting hope override common sense. When hope overrides common sense, you are immersed in "hopium," the most insidious of all narcotics found in bloodstreams of failed traders. You will recall when I analyzed the gold sector at the end of January and warned that the Commercials were going to "allow" the gold price to briefly "break out," only to entrap the Large Specs and then disembowel them. That is exactly what they did. At that time I was long NUGT and JNUG and a boatload of calls, and I was looking to make a huge score with NUGT moving to the 2016 highs around $50. Well, the COT structure was suspect and there was just too much chirping from the gold newsletter writers about the "200-dma" (all in CAPS and with numerous exclamation marks), and sure enough, I sold my calls when the NUGT first popped through the 200-dma around $32. It was a decent "pass" but by no means a "life-changer," and I was thoroughly ready to do an on-purpose alcohol overdose to end all pain when the NUGT proceeded to $37 and the calls I just sold for a double became a quadruple. The angst in late January was unbearable because I made the "call" in December and was ...read more
  • Cobalt and Nickel: Two Essential Elements for EVs

    Cobalt and Nickel: Two Essential Elements for EVs

    Source: Maurice Jackson for Streetwise Reports 04/20/2018 As electric vehicles grab a larger share of the automotive market, the sourcing of raw materials becomes increasingly important. Sam Broom of Sprott Global Resource Investments, in this conversation with Maurice Jackson of Proven and Probable, discusses the supply and demand equations for two essential elements in EV batteries, nickel and cobalt.Maurice Jackson: Welcome to Proven and Probable, where we focus on metals, mining, and more. We are speaking with Sam Broom, an investment executive at Sprott Global Resource Investments. Today, we will discuss nickel and cobalt propositions for his portfolio. Sam, you've truly carved out a niche for yourself in the nickel and cobalt space. Many speculators don't hear much about these metals and the value propositions that they may present. Let's begin with nickel. At the 10,000-foot level, share with us the supply and demand fundamentals for nickel. Sam Broom: Nickel is actually quite an interesting market. It was a darling back in the early to mid-, even to late 2000s, up until about 2007–2008, where the price rose dramatically. A lot of people and a lot of speculators made a lot of money in the nickel market in the 2000s. What happened was the Chinese came up with a new way of producing largely stainless steel, which was the main use for nickel. Formerly, Chinese companies used refined nickel to produce stainless steel. Nickel is a fairly rare metal. There's not a lot of high-quality deposits out there, but the Chinese figured out a way to turn ferronickel, which was basically an iron-rich nickel dirt, a withered rock. You could now use that as a replacement for refined nickel in creating stainless steel. That truly was almost like a shale oil moment for the nickel market, and drastically changed the cost structure of the industry. It also coincided with the global financial crisis in 2008, and then nickel promptly fell off a cliff. It was trending at about $54,000–55,000 a ton. It was as low as almost $7,000 a ton about a year ago. So that's we're talking an 80% decline over the last 10 years, in terms of the nickel price. What resulted was all of a sudden you hit this flood of nickel, or iron-rich nickel, nickel pig iron, or ferronickel, that flooded into the market from places like Indonesia and the Philippines. It basically destroyed the price of nickel. If you look at a long-term chart of nickel, the refined nickel stores on the LME, you'll see exactly what happened. Basically, supply went through the roof, and then we saw this huge accumulation of nickel. The nickel market was in a huge surplus for years and years. To this very day, there are still huge amounts of nickel on the LME, compared to historical norms. That's why a lot of people still steer clear of the market. One key thing to ...read more
  • Company Combines Prospect Generation with Royalties

    Company Combines Prospect Generation with Royalties

    Source: Maurice Jackson for Streetwise Reports 04/20/2018 EMX Royalty Corp.'s CEO David Cole sits down with Maurice Jackson of Proven and Probable to discuss his company's business model, which combines prospect generation with royalties.Maurice Jackson: Welcome to Proven and Probable, where we focus on metals, mining, and more. Today we will discuss a royalty generator, EMX Royalty Corp, trading on the TSX-V symbol EMX and on the New York Stock Exchange symbol EMX. Joining us today is David Cole, the president, CEO and director of EMX Royalty Corp. Maurice Jackson: Mr. Cole, please share who EMX Royalty Corp. is and what is the thesis you're attempting to prove? David Cole: EMX Royalty is a royalty company focused on building a global portfolio of gold and copper royalties in addition to other metals such as lead, zinc, cobalt and silver. Maurice Jackson: EMX Royalty employs what is known as the prospect-generator model. Would you explain what a prospect generator is? David Cole: I'm quite passionate about the prospect generation business model where we utilize our geological expertise and our business acumen to go forward and acquire prospective mineral rights utilizing technology as leverage. We build a portfolio of prospective mineral rights, we add value by doing good geology and advancing permitting, etc., and then we sell those assets to well-funded major companies and junior companies that we believe will do a good job on our projects. We maintain cash flow coming in from pre-production payments in addition to production royalties on that portfolio. It's a very powerful way to approach the exploration business giving the shareholders exposure to a substantial optionality across our portfolio. Maurice Jackson: One of the virtues I really like about the prospect generating model that you've been very successful with is that you de-risk or deleverage the portfolio by using capital from someone else. Expand on that just a little bit. David Cole: We add value to the early stages, which are intellectually taxing but not typically very expensive. We're able to sell these assets on with the geological models that we've developed on our mineral rights and get other people to spend the money to advance them or we have a tied interest in that optionality. We're exposed to the exploration upside in the discovery potential on these assets as are developed. All at the expense of the counterparty. Maurice Jackson: EMX has truly earned the distinction in the natural resource space as being the royalty generator by utilizing a three-point approach. Can you elaborate further on this process, which has been a proven formula for success? David Cole: I love this combined business model. Specifically, the bread and butter is the organic growth royalty portfolio through the prospect generation business model. But to augment that portfolio that we have grown organically over the course of the last 14 years, we also occasionally find royalties that are available for outright purchase and we've purchased some good royalties ...read more
  • 2018's 'Short' of the Year

    2018's 'Short' of the Year

    Source: Michael J. Ballanger for Streetwise Reports 04/18/2018 Precious metals expert Michael Ballanger discusses the gold and silver ratio.There is a famous quote about short-selling that comes from Olde English business folklore that goes something like this: "He who sells what isn't his'n. Must deliver or goes to prison!" That old horse chestnut was used to frighten the Rothchildian short-sellers that used to hang out on the old New York "curb" back before governments and influence- peddling lobbyists conspired to change the rules. I used to love to find overvalued stocks or commodities and get our trading desk to call over to the loan post to see what it would cost to borrow a few thousand shares of some pumped up bowser of a stock and then attempt to catch it on an uptick in order to sell it. The entire concept was rather civilized because everyone would know that there was a highly visible bear out there trying to get short something and invariably, the principals like the CEO or CFO would find out and then the ancient game of cat-and-mouse would begin. It would begin with the phone calls from someone at the target company introducing themselves and asking you out for coffee or a beer if you were borrowing a puny 2,000 shares with the venue morphing decidedly if the number was north of 100,000 shares. (If it was a MILLION, it was a weekend in Vegas.) I would put on my most gracious persona as the rep from the overvalued company tried in vain to change my intention of hammering his pig of a stock into the ground, but what made it a study in human behavior was that the higher the gratuity, the more maniacally I wanted to sell the stock. Needless to say, short-selling is not the fun it used to be because everyone and their uncle are "hip" to the notion of shorting overvalued garbage thanks to terrific books and movies like "The Big Short" that really showed the world how extremely difficult it can be and how the market-makers can artificially create a squeeze on a short player by simply fiddling with the "marks" at the end of every month. I, for one, long for the old days of finding some piece of Vancouver garbage that had a $500,000 annual travel and entertainment budget and a $500 annual exploration budget and a property "next door to Friedland" (!) whose founders held all the one-cent stock that was coming out of escrow next week. Adding insult to injury and turning the ridiculous to the sublime, the CEO has just paid out an egregious amount of money and stock to the telephone room owners whose job it was to "pump up the volume." Alas, the Elon Musks of the world learned how to magnificently "manage" their stocks by way of social media and sweetheart deals with all ...read more
  • Gold Stock on Verge of Breakout from Long Downtrend

    Gold Stock on Verge of Breakout from Long Downtrend

    Source: Clive Maund for Streetwise Reports 04/18/2018 A gold company active in Fiji is on technical analyst Clive Maund's radar screen as a buy.Lion One Metals Limited (LIO:TSX.V; LOMLF:OTCQX) is looking more and more positive here. It will be assumed by many traders that, having arrived at the upper boundary of the downtrend shown on the 2-year chart below, it will turn tail and drop back again as it has done in the past, but this time it doesn't look like it will. If we look carefully we can see that it is holding its ground here, so far at least, in a tight range that has the characteristics of a bull Flag, and doing so for long enough that we are on the point of seeing a bullish moving average cross. If we now look at the suspected bull Flag in more detail on the 6-month chart, we see that volume has dwindled to a very low level, which at this juncture looks very bullish. Thus it looks likely that an upside breakout will occur soon. A key point to note is that if Lion One does now break out from its downtrend, traders will come down off the fence and pile in, and with volume now so light it won't require many of them to drive a significant advance. The conclusion is that Lion One looks is on the point of breakout here, so holders should of course stay long and it is again a buy at this price. Lion One Metals website Lion One Metals Ltd, LIO.V, LOMLF on OTC, closed at C$0.65, $0.51 on 16th April 18. Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts. Read what other experts are saying about: Lion One Metals Limited Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included ...read more
  • Some Good Buys with Resource and Asian Companies

    Some Good Buys with Resource and Asian Companies

    Source: Adrian Day for Streetwise Reports 04/18/2018 Money manager Adrian Day reviews four companies that he sees as buys.Midland Exploration Inc. (MD:TSX.V, 0.84—0.89) has started a drill program on the Vortex Zone of the Casault project, a joint venture with Soquem, east of Detour Lake. Two rigs have been moved to the property, a reflection of the high hopes. The company continues to be active along the development continuum. Assays from its recent program at Le Peltrie, into which Niobay is earning by spending the exploration dollars, have been released. Midland has started initial exploration at two new 100%-owned projects in the Lower Detour and Casa Berardi fault zones. And it continues to add new projects, most recently a nickel-copper-cobalt property it acquired by staking. So, Midland continues to add new properties, add new partners, and explore and drill both its 100%-owned and joint-ventured properties. In all, over 20,000 meters of drilling is planned for this year, and that guarantees a good news flow. Most of its properties are optioned (to partners including Agnico, Osisko, Teck and IAMGOLD), but its strong balance sheet enables Midland to spend some money to add value to properties should it choose. Recent weakness in the stock—it traded as low as 82 cents on Thursday—for no obvious reason, is a great buying opportunity just as it starts to drill the prospective Vortex zone, with a series of drill programs behind it. Buy Midland. Strong results offset by ongoing dispute Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE, US$21.24) reported strong earnings, above consensus estimates, with growth at Penasquito offsetting modest declines elsewhere. Two relatively small royalties are expiring, but Penasquito should continue to grow with the new pyrite leach project due for completion by year-end. The company increased its long-term guidance for gold, though reduced its silver guidance (partly because of the restructuring of the San Dimas stream towards gold). Wheaton wrote down its holding in Pascua Lama, following operator Barrick's write down, but this had not been included in production guidance. In all, Wheaton has strong revenues and guidance, with strong mining partners, and optionality on several projects, most notably Pascua. The biggest weight on the company continues to be its dispute with the Canadian tax authorities over its offshore structure; the dispute is heading to court later this year. Wheaton continues to assert completely confidence in its position, and has not recorded any potential liability. Despite the rally from early February, from $19, the stock is trading at significant discounts to other royalties and streaming companies, mostly due to the tax dispute. Once that settles, the stock could rebound strongly, at least to the upper 20s. For the last year, the stock has traded between $19 and $22, with at least nine moves up and down, so we would look for a retreat towards the lower end of that range to buy. ...read more
  • Gold Explorer's Drilling 'Confirmed and Expanded Historical Results'

    Gold Explorer's Drilling 'Confirmed and Expanded Historical Results'

    Source: Streetwise Reports 04/17/2018 Mick Carew, an analyst with Haywood Securities, reviewed and analyzed the company's recent drill results from its Idaho project.In an April 11 research note, analyst Mick Carew with Haywood Securities reported that Liberty Gold Corp. (LGD:TSX) released final data from drilling done at its Black Pine project, which "successfully confirmed and expanded historical results adjacent to historic pits and in established target areas. The results also demonstrate exploration potential beneath the limit of shallow historical drilling." Carew reminded readers that Liberty began a 13-hole, 2,077 meters (2,077m) drill program last year to test five areas within a 12 square kilometer area that was targeted based on past findings. The new data were from 11 of 13 reverse circulation drill holes. Five holes were from near the North B extension pit, three were in the J anomaly, two were in the Hazel Pine target and one was as from near the South B extension pit. Two highlight holes, Carew indicated, are LBP004 and LBP011. LBP004 showed: 24.4m grading 0.96 grams per ton (0.96 g/ton) gold from a downhole depth of 10.7m, including 1.5m grading 6.18 g/ton gold 9.1m grading 1.03 g/ton gold from a downhole depth of 51.8m, including 6.1m grading 1.28 g/ton gold 15.2m grading 0.54 g/ton gold from a downhole depth of 111.3m LBP011 showed: 10.7m grading 2.37 g/ton gold from surface, including 9.1m grading 2.27 g/t gold 15.2m grading 0.65 g/ton gold from a downhole depth of 106.7m, including 4.6m grading 1.38 g/ton gold Liberty plans to commence a phase 2 drill program at Black Pine in mid-June, which will "follow up on results from the A basin area, the J anomaly and the B pit extension as well as test other high priority targets," Carew explained. The analyst noted that for comprehensive drill testing, the company needs a new plan of operations that will "open up access to the entire 12 square kilometer area," which is currently pending. Upcoming catalysts for Liberty are drill results from another of its projects, Goldstrike, which are expected throughout the year, and advancement of Goldstrike to a preliminary economic assessment decision, which is likely to happen in Q2/18. Haywood has a Buy rating and a CA$1 per share price target on Liberty Gold, whose stock is trading today at around CA$0.42 per share. Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.