Source: Maurice Jackson for Streetwise Reports 09/05/2020
In conversation with Maurice Jackson of Proven and Probable, Tim Johnson, the CEO of Granite Creek Copper, explains what’s behind the company’s increased valuation, and looks ahead to additional growth opportunities.
Maurice Jackson: Joining us for a conversation is Tim Johnson of Granite Creek Copper Ltd. (GCX:TSX.V).
Always a pleasure to speak with you, sir. Before we get in today’s conversation, I would be remiss if I didn’t highlight, underscore and foot stomp the success of Granite Creek Copper share price. You are up 600% since March 23, and we haven’t even discussed today’s press release, which may further increase the shareholder value. Why has the market been so upbeat about Granite Creek Copper, sir?
Tim Johnson: I think a lot of it has to do with recent action in the metal prices. We, in the copper space, have been waiting quite a while for the move that copper’s made in the past few weeks. That’s helped us. And our position, where we are on the planet, we are in one of the best jurisdictions for mineral development in the world. The Yukon is a great place to operate. And I think those things combined and the fact that we’re doing something, we’ve got people on the ground, all those things have helped us move our share price to where it is today.
Maurice Jackson: Mr. Johnson, I referenced that GCX is looking to further increase your shareholder value. And this time it’s through a strategic acquisition with one of your neighbors, Copper North Mining Corp., to increase your footprint in the highly prolific Minto Copper District, where you have your flagship Stu Copper Project. What can you share with us?
Tim Johnson: We’ve just announced an offer to acquire all the issued and outstanding shares of Copper North. We already owned 30% of those shares, which we acquired in December last year. This is a further acquisition. GCX sees this as a very interesting strategic move, as a consolidation of the second largest land position within the highly prospective Minto Copper Belt. There will only be two of us in the belt. There’ll be us, and the Minto Mine just to the north of us, about 30 kilometers away. We’re quite excited about that.
What this allows us to do is to combine a preliminary economic assessment-stage project, and the Carmacks Project owned by Copper North, with our highly prospective ground on the Stu Project. The combined land package is going to be about 176 square kilometers, good road access, good access to infrastructure like power. So we’re pretty excited about snapping the two projects together.
Maurice Jackson: Expand on that for us—on some of the common synergies that you will share with the Carmacks deposit there. You talked about infrastructure.
Tim Johnson: Right now, to access our Stu Project, you’d go through the Carmacks Project right through …read more
Source: Streetwise Reports 09/04/2020
Paradigm Capital calls Vox Royalty “the highest acquisitive story in the industry.”
In a Sept. 2 research note, analyst David Davidson reported that Paradigm Capital initiated coverage on Vox Royalty Corp. (VOX:TSX.V), calling it “the highest acquisitive story in the industry” and “a high-growth, precious metal-focused stream and royalty company with a portfolio of over 40 transactions spanning seven jurisdictions.”
Paradigm likes the Vox story for its “significant growth opportunity,” Davidson noted. The Toronto-headquartered company owns an exclusive database containing 7,000-plus potential transactions, which often leads to it being the sole bidder for assets. “The company has secured an industry leading 17 transactions for 38 royalties since January 2019 and now holds a collection of 43 royalties and streams,” the analyst wrote. Many of its acquisitions have been on projects nearing production.
Further potential upside for Vox comes from the exploration-stage properties on which it holds a royalty. Currently, more than 100,000 meters are being drilled over some of those, which should result in resource expansion and new discoveries.
“VOX’s acquisitions are underpinned by a strong technical focus which considers mineral endowment, historical exploration, prospectivity and metallurgy,” Davidson highlighted.
“These factors, coupled with non-technical inputs, such as tenure security, operator quality, country risk and fiscal terms, enable the company to quickly identify and prioritize the best risk-adjusted royalty investment opportunities.”
Davidson noted that Vox also is attractive because of its primary focus on precious metals and politically safe jurisdictions, including North America, Australia, Brazil and Peru.
“Royalty companies that exhibit these positive attributes tend to trade at premiums to peers,” Davidson pointed out.
A third positive key attribute of Vox is its valuation, added the analyst. For example, Paradigm values Vox’s Koolyanobbing iron ore royalty at $7 million, its Segilola gold royalty at $5.7 million and its Ashburton gold royalty at $3.1 million. Based on its discounted cash flow valuation, Paradigm assigned Vox a CA$3.75 per share price target, which compares to its current share price of about CA$3.12. Paradigm rates Vox a Buy.
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Vox Royalty Corp.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Vox Royalty. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above …read more
Source: Michael Ballanger for Streetwise Reports 09/04/2020
Sector expert Michael Ballanger provides a Special Situations report on junior explorers and developers he expects will experience exponential growth in this precious metals bull market.
It was in the last week of November 2015 that I witnessed a never-before-beheld event in the quantitative world of gold and silver analysis: Commercial traders were actually “long” gold futures for the first time since 2001, after being net short for nearly a decade and a half. With the price down from the August 2011 intraday peak of US$1,923.70/ounce, a new bull market in gold and silver was born and while it had been a fitful ride up until a few short months ago, we are now fully ensconced in the biggest bull market in the history of the modern markets, fueled largely by profligate fiscal and monetary policies the world over.
To recap the events of the last eight months, the gold market actually got its cue not from the sovereign and central bank responses to the pandemic, but rather the policy “pivot” seen in August 2019, when the U.S. Fed launched a series of massive REPO actions designed to add liquidity to treasury markets.
The big advance in September 2019 kicked off the move, which, while temporarily delayed by the COVID crash in March, has now blossomed into new highs in gold bullion. Yet, multiyear highs in silver, and the gold and silver miners have yet to materialize. Herein lies the base case I am making for ownership of the junior developers and the micro-cap explorers; the developers with defined resources (“ounces in the ground”) have only recently begun to outperform their intermediate and senior brethren (GDX/GDXJ).
After forty-odd years of combing list after list of junior mining investment candidates, I have learned through multitudinous scar tissue that the first criterion upon which to rely is management. Whether it was Paul Penna (Agnico Eagle Mines Ltd. [AEM:TSX; AEM:NYSE]) in the 1980s, Robert Freidland (Voisey’s Bay) in the 1990s, Ross Beatty (Pan American Silver Corp. [PAAS:TSX; PAAS:NASDAQ]) in the 2000s or Michael Williams (Aftermath Silver Ltd. [AAG:TSX.V]) in 2020, the driver of the junior mining “bus” remains the key determinant in one’s odds of making good money.
It is the operator that drives value, and while there are two dominant female deities (Mother Nature and Lady Luck) that ultimately tilt the scales, they rarely even glance at questionable projects run by shady promoters. The best way of assessing any opportunity is to see who is promoting it, because the operator knows what will fly and what will be stuck on the ground. The most thorough due diligence conducted is usually that which was done by management long before you or I have heard about it. For this reason, the operator rules the roost.
There are two distinctly different categories of junior company to look at and each …read more
Source: Streetwise Reports 09/03/2020
An investment thesis for Vox Royalty is presented in a Red Cloud Securities report.
In a Sept. 2 research note, analyst Derek Macpherson reported that Red Cloud Securities initiated coverage on Vox Royalty Corp. (VOX:TSX.V) with a Buy rating and a CA$4.75 per share target price. The company is currently trading at around CA$3.06 per share.
“Vox is set to outperform other new entrants to the royalty space as it grows organically via previously acquired assets and inorganically through its innovative and lower cost approach,” the analyst commented.
By employing a unique approach to identifying and selecting target acquisitions, the Canadian company is “disrupting the royalty space,” Macpherson indicated. Vox’s use of digital claim maps and its proprietary database of more than 7,000 existing royalties, which are tied to established mining claims and resources, affords it the advantage of often being the only bidder for a single royalty, the analyst commented.
It also “has allowed Vox to acquire new royalties from nontraditional vendors at a significant discount to peers,” wrote Macpherson, at “an average acquisition multiple of 0.28x net asset value (NAV) versus peer typical royalty acquisitions at 0.66x NAV.”
Today, the Toronto-based company has 47 royalties in its portfolio, five of which it purchased after its May 2020 initial public offering.
“As Vox executes on its strategy and continues to demonstrate its ability to acquire royalties at a discount to peers, we believe it should eventually garner a premium multiple to junior royalty peers,” Macpherson commented.
The analyst pointed out that early-stage royalty companies like Vox tend to outperform their larger peers, due to the cash flow growth and improved share price that generally come from every purchase. On top of that, Vox has the added benefit of growth born out of its exclusive acquisitions database. As such, Red Cloud expects that Vox will continue to add royalties at a faster pace than its peers and at much better values.
Also for Vox, growth is already built into the royalties it owns but it is not fully baked into its valuation, Macpherson noted. The company currently has three producing royalties. Two more are coming online in 2021, resulting in roughly 56% year-over-year growth, according to Red Cloud’s projections. With nine royalties expected to be producing in 2025, revenue growth for Vox between 2021 and 2025 is an estimated 673%.
Macpherson noted upcoming potential catalysts for the royalty and streaming company include initial guidance expected in Q3/20, Q3/20 financial results anticipated in Q4/2020 and additional royalty acquisitions.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members …read more
Source: Streetwise Reports 09/03/2020
Grande Portage Resources, recipient of a $3 million investment by Eric Sprott, is in the midst of a 6,000-meter summer drill program at its Herbert Gold Project.
Grande Portage Resources Ltd. (GPG:TSX.V; GPTRF:OTCQB; GPB:FSE) is focused on expanding its Herbert Gold Project in southeastern Alaska, located not far from the capital city of Juneau. The property sits in the 160-km-long Juneau gold belt and is flanked by some productive neighbors. The A-J Gold Mine in Juneau operated from 1917 to 1944 and was one of the world’s largest gold mines at the time. The Kensington Mine, to the north, is operated by Coeur Mining, and produced nearly 128,000 ounces of gold in 2019.
The Herbert Gold Project has an Indicated resource from 2019 of 606,500 ounces of gold at an average grade of 10.03 grams per tonne (g/t) and an Inferred resource of 251,700 ounces of gold at an average grade of 14.15 g/t.
The company’s goal is to expand that resource. To that end, Grande Portage raised CA$3.15 million through a fully subscribed private placement that closed in July. Veteran investor Eric Sprott purchased 10 million common shares and 5 million warrants, giving him 12.8% ownership on a non-diluted basis.
Cash in hand, Grande Portage has literally doubled its efforts for this summer’s drill program by adding a second diamond drill rig and plans to drill until early October.
The days are long in the Alaska summer, and Grande Portage is making the most of it. “We drill from early summer to early fall, where we can get a lot of our drilling pattern in over four to five months,” Grande Portage President Ian Klassen told Streetwise Reports. “Then we spend the rest of the year doing assessments and recording what we’ve achieved there.”
The Herbert project contains a series of at least five parallel gold-hosting mesothermal veins, with some high-grade numbers already in hand. Past drilling intersected values as high as 59.91 g/t gold over 8.08 meters and 37.07 g/t gold over 15.7 meters.
Geologist Dave Webb likens the structure to sandwiching a piece of glass between two pieces of clay and then squishing the clay. “The clay will spread out and flow around, but the glass will tend to crack in a very predictable, parallel system. And that’s what we have with the quartz diorite being that rigid block of rock that is cracking, so you end up with veins that are like vertical blinds. They’re very predictable, spaced about every 200 meters apart, and they seem to have the same size and dimension and, to date, gold.”
The veins outcrop at surface because the soft, altered rock around them tends to weather away, Webb said. “It was quite outstanding when the LiDAR survey was completed, these vein structures just jump off the map. They’re gold highways really.”
Exposed quartz on the Goat Vein
This summer’s program will drill up …read more
Source: Peter Krauth for Streetwise Reports 09/02/2020
Peter Krauth discusses the Fed’s inflation target and what that means for gold.
Make no mistake, higher gold prices are coming.
By pulling yet another arrow from its quiver, the Fed’s just helped move us closer that target.
The Fed wants inflation, so it’s going to get it. Problem is, we the people, will have to live with it.
Fed Chair Jerome Powell told us last week they will let inflation run higher than “normal” to make up for stubbornly “below average” inflation for some time.
It’s one more reason investors need to ensure they have exposure to real assets that provide protection from inflation.
Of course there’s raw land and real estate, collectibles and fine art. But these are typically illiquid, out of reach, or fully valued in many places the world over.
Meanwhile, precious metals are arguably much closer to inflation-adjusted all-time lows, as I’ll show you.
And that makes gold a must-own asset for years to come.
Overshooting Inflation, And Then Some
When Jerome Powell recently gave his Jackson Hole speech, he confirmed the trial balloon he’s been floating for some time.
Until now the Fed’s target was 2% inflation. If it went above, they’d cool it off by raising rates. But official rates have been so low for so long, and still that target has remained elusive.
To dial things up a notch, Powell has said the Fed will let inflation run above 2% for some time in order to make up for extended periods below that level. That’s the often mentioned “symmetrical” 2% target.
As a result, rates will stay near zero for some time yet to help achieve those results. With a pound of flesh ripped out of the economy from pandemic shutdowns, unemployment has reached historic highs. So the Fed needs to “do something.”
And we’re well on our way…
Already this past June alone, the U.S. printed more money than in the first 203 years of its history. Over $10 trillion in stimulus has been approved.
You can bet more is on the way. And that’s just in the U.S.
In the immediate wake of Powell’s announcement, bonds sold off, but gold and silver were only initially weaker. By the next day, gold and silver had pushed higher.
The dollar was unable to rally despite U.S. Treasuries markedly selling off.
But the biggest takeaway is clearly how gold and silver held up strongly even as bond yields rose.
It’s a massive signal for a weaker dollar over the longer term.
Gold’s Real Value
The U.S. Dollar Index broke down below its long-term support back in July.
That’s a strong bullish signal that the dollar will continue to weaken over the long term.
However, the very near-term picture is different.
As we can see, despite the downward leg since late July, both the RSI and MACD momentum indicators show positive divergence as they’ve been rising. That suggests a potential relief rally in the dollar over the next …read more
Source: Streetwise Reports 09/02/2020
Golden Sky Minerals is advancing its properties in the Yukon in an area that has seen larger miners move in.
Mining in Canada’s Yukon Territory goes all the way back to the 1897 Klondike Gold Rush, so the region has a long history in mining and exploration.
Today, mining is an important part of the Yukon’s economy as it experiences a modern-day gold rush, Golden Sky Minerals Corp. (AUEN:TSX.V; LCKYF:OTC) CEO John Newell told Streetwise Reports. “For years, smaller companies, placer miners ‘working the creeks,’ dredging barges ‘working the rivers,’ prospectors and mining entrepreneurs have walked and staked the ground throughout the Yukon. But now, the majors are discovering what the juniors have long known: This region is largely underexplored, has exceptional geology, and has strong potential for district-size mining operations that can replace the declining reserve profiles that the majors are experiencing.”
Along with mineral potential, “mining companies continue to invest in the Yukon because of the clarity provided at all levels of government, programs, and partnerships with First Nations,” Newell said.
The area is part of the Tintina Gold Belt, a 1,200 km long and 200 km wide arc that extends from the south corner of Alaska into the northern part of British Columbia. “Its central section spanning the Yukon Territory including where it crosses the un-glaciated Dawson Range is underexplored,” Newell explained. “The Tintina Gold Belt production mines and significant exploration and mine development projects demonstrate the geologic potential in the Dawson Range.”
Over 50 million ounces of gold have been discovered in this belt over the last 20 years, Newell said.
Yukon’s White Gold District
The sources of the Yukon’s White Gold District remained uncovered until the discovery of the Golden Saddle (Underworld, Kinross, now White Gold) and Coffee deposits (formerly Kaminak, now Newmont/Goldcorp) in the district. “Many geologists and experts believe there are many more sources,” Newell said. “While exploration for hard rock deposits has been limited in the past, this started to change in the past 10 years, when over 7 million ounces has been discovered in this area. Over time new technology, innovation, and more experience has continually enhanced companies’ abilities to discover new deposits, as well as expand on existing ones, which is encouraging senior miners to take a closer look and invest in the district.”
The Yukon territorial governments, along with the Canadian federal government, have committed CA$360 million to improve roads and infrastructure throughout the Yukon, including the White Gold District, which could drive down capex costs and improve project economics for companies in the area. “Major gold producers are moving heavily into the area. The region offers vast areas of underexplored prime terrane, geopolitical stability, infrastructure that is decent and improving, a mining friendly culture, and new large deposits are being found, examples being Goldcorp’s Coffee project, Victoria Gold’s Dublin Gulch, and ATAC’s Carlin style target,” Newell explained.
Golden Sky Minerals, …read more
Source: Michael Ballanger for Streetwise Reports 08/31/2020
Michael Ballanger interprets the motives of the Federal Reserve and their impacts on the “haves” and “have nots” in America and beyond.
This week, the financial community around the globe was handed a “new approach” by the Federal Reserve Board of the United States that essentially flipped the middle finger at savers, senior citizens on limited pensions and proponents of sound money principles. Before I expand upon this outrage, let me expound upon the background of the current Fed Chairman, Jerome Powell.
Judging from the accolades and fawning praise showered upon this man (as the S&P and NASDAQ hit record levels fueled exclusively by Fed stimuli), one might think that he hails from the academic world, a scholar with vast experience in macroeconomic theory, or at least extensive dealings in the retail banking sector. His grandfatherly deportment portrays great studiousness and wise counsel as he does his very damnedest to convey that image with perennial gray suits and trademark purple ties. If one could take this carefully crafted persona and make a snap favorable assessment of the man who controls the retirement lifestyles of millions of global citizens, one would be making a fatal error.
This man started out as a lawyer, and when practicing law became too mundane for him, he graduated to finance, where he toiled for the bulk of his career in financing, merchant banking, and mergers and acquisitions. According to Wikipedia, “in 1993, Powell began working as a managing director for Bankers Trust, but he quit in 1995 after the bank got into trouble when several customers suffered large losses due to derivatives.”
In other words, Jay Powell is well versed in the machinations of the capital markets of the 1990s era, when financial gunslingers roamed the hallowed halls of Wall Street lighting their $50 Cohibas with $100 bills.
I have never met the man, and from all reports I have read, he appears to be a “very nice man,” proving once and for all that his spin doctors have done a superlative job selling the Powell image to the world. The problem I have is the hypocrisy that oozes from every pore in the central banking body; that they can stand in front of the average (stupid) American and look straight into the cameras and say their mandate is “maximum full employment, stable prices, and moderate long-term interest rates” while exploding their balance sheet to unheard-of levels of excess and recklessness, representing an abomination of the highest order and magnitude.
What makes this even more outrageous is that the average citizen has nothing in terms of living standard to compare to the ever-growing divide between the haves and the have-nots. Here in the summer of 2020, investment bankers and hedge fund managers are enjoying the best run in earnings and performance ever while jobs are being axed and food banks tapped out. Riots in …read more
Source: Gwen Preston for Streetwise Reports 08/31/2020
Troilus, HighGold, and Revival Gold are drilling great discoveries and offer significant low-risk upside through splashy drill results, growing resources, and initial mine plans, writes Resource Maven Gwen Preston.
The gold bull market has arrived. And strong gold markets give investors the opportunity to make great returns without taking on much risk. Here I’ll explain why—and outline three stocks I own that offer up exactly this opportunity.
Gold was already gaining before COVID, based on low real rates, economic uncertainty, high stock prices and geopolitical questions.
Then a global pandemic poured fuel on that smoldering fire.
COVID hammered interest rates, pushing real rates well into negative territory. It shuttered the global economy, creating deep uncertainty about growth going forward. Central banks around the world turned up their printing presses in support, handing cash directly to individuals while also buying oodles of debt, both government and corporate.
It has created an absolutely perfect storm for precious metals. The fact that gold marched up through US$2,000 an ounce in early August to reach a new all-time high like it was nothing is proof.
Two questions now matter:
How much higher will this market go?
What stocks are the best bets for those wanting to play this opportunity?
On the first question, I can’t quote a number but I can say that gold is going a lot higher. The forces that move gold are all aligned in its favor and none are likely to change any time soon. Can you imagine any central bank in the world raising interest rates? Do you see COVID easing soon and economic confidence around the corner? Do you think the risk that a richly valued stock market will correct is going to disappear? Do you see calm coming from the remainder of Trump’s term and the pending presidential election?
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Patterns from past bull markets also say we’ve got a lot of ground yet to gain. I love this chart from analyst Martin Roberge at Canaccord. It shows that every gold bull market goes through two stages, with a setback in between. We met the mark for Phase 2 just in April. On average, the second phase of a gold bull market generates 160% gains over 650 days. We’re some 120 days in and only about 45% up.
Source: Mid-Week Market Observations, Canaccord Genuity Capital Markets Research, 29 July 2020
I could spend the entire article going through the gold-bull evidence but I’d instead like to focus on the second question: what should investors who want to profit from this market buy?
It’s a tricky one because the best stock for me isn’t necessarily the best stock for someone else. I love explorers drilling for new discoveries but those stocks carry a lot of risk …read more
Source: Bob Moriarty for Streetwise Reports 08/30/2020
Bob Moriarty of 321gold explains why he has his eye on this company.
Benchmark Metals Inc. (BNCH:TSX.V; CYRTF:OTCQB) just completed a $48 million financing. It will fund an increase in their 2020 drill program from 50,000 meters to 100,000 meters. In addition the company plans a 200,000-meter drill program for 2021. Wow. I’d say they are getting serious. Investors noticed, running the shares up 400% in the past two months.
I was talking about Benchmark 18 months ago when the shares were puttering along at $0.185. The shares are up 700% since then. The company does an excellent job of communication and the 100,000 meters of new drilling on the +20 km Lawyers gold/silver trend will generate results on a constant basis.
Their latest news release reported a surface sample of 61.3 g/t gold and 3,890 g/t Ag. That is $7,300 rock. There is a lot more of it up there. Benchmark keeps reporting excellent results and will for the next 18 months.
Look for the market to actually value Benchmark for what they obviously have in hand.
I have bought shares in the open market and participated in private placements with Benchmark. They are an advertiser so naturally I am biased. I highly encourage potential investor go through their excellent presentation. Do your own due diligence.
Benchmark Metals Inc
BNCH-V $1.48 (Aug 28, 2020)
CYRTF-OTCQB 120.9 million shares
Benchmark Metals website
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Benchmark Metals. Benchmark Metals is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise …read more
Source: Bob Moriarty for Streetwise Reports 08/28/2020
Bob Moriarty of 321gold discusses corrections in the precious metals market and profiles an explorer that’s about to start a drill campaign.
If you read the writing of the vast majority of those talking about the resource sector there is one word you rarely chance across. You can hear all about manipulation just as if nothing else in the financial world is manipulated. Everything it seems is some sort of conspiracy because conspiracies are always popular even if you can’t prove or disprove them. That’s their charm. Price suppression is always a big hit. I was a giant fan of suppression all the way from gold at $252 to $1923 and silver from $4 to almost $50. You just have to wonder what prices might have been like if they hadn’t been suppressed all the way to the top.
Comex defaults gain mention now and again but are about as common in real life at the upcoming Gold Derivatives Time Bomb that is taking its own sweet time in appearing. It’s been twenty years now and if that is imminent, you couldn’t prove it by me.
You never ever hear the word correction. It’s as if all those guys writing about fiction have never read a non-fiction piece. Corrections are a part of investing. Investors get too bullish and things sell off. Investors turn bearish and the market goes higher. Nothing goes straight up or straight down no matter what the news of the world. So we have corrections. You just don’t get to read about them except on very few sites. I wonder why? It’s like correction is some sort of four-letter word.
Brigadier Gold Ltd. (BRG:TSX.V; BGADF:OTCBB) resumed trading after a one year trading halt in June and shot up to a high of $0.62 two weeks later in July. They did a private placement at $0.26 in late July to raise $3.5 million before doing a deal on the Picachos gold project in Sinaloa, Mexico, right in the heart of elephant country. The 3,954 ha property has over 160 ancient past producing mines on it. Brigadier has an option for 100% of the property in what is a little complicated mix of cash, shares and work commitment.
Basically BRG has $3.5 million in cash to spend on a property with a lot of potential. They start a 5,000 meter 40 hole drill program in September. If they hit, the stock goes up a lot. If they don’t hit, the stock goes down a lot and I write a follow up castigating management for screwing it up.
Brigadier got expensive in July, it has corrected by 50% and now is a lot cheaper. It’s a binary issue; they either belly up to the bar or pass out. I hope they hit, as my readers will like that a lot as will I.
Brigadier Gold is an advertiser and …read more
Source: Streetwise Reports 08/25/2020
Red Cloud raises its target price on Troilus Gold after the release of a new resource estimate.
In a July 29 research note, analyst Jacob Willoughby reported that Red Cloud increased its target price on Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) to CA$2 per share from CA$1.50 to reflect the updated Troilus project resource estimate. The company is currently trading at about CA$1.25 per share.
Willoughby discussed the updated resource estimate, which, he noted, “increased materially” from the last one in 2019. The new total Troilus resource is 8.11 million ounces of gold equivalent (8.11 Moz Au eq), which reflects 26% growth. The Indicated resource today amounts to 4.96 Moz Au eq, and the Inferred resource is 3.15 Moz Au eq.
Since 2016 when it acquired the Troilus project, Troilus Gold increased the total Indicated resources by about 142%, and the total Inferred resources by about 350%.
Contained ounces jumped up substantially since 2019, the date of the prior resource estimate update, due to the large, roughly 39% tonnage increase. Grades, on the other hand, decreased moderately, by about 9%.
Today, the open pit ounces comprise 80% of the overall resource whereas in 2019 they accounted for about 68%. “We view this positively as the previous grade in the underground resource was less than optimal,” wrote Willoughby.
The analyst highlighted that the Southwest zone contributed to the overall resources 583,000 Inferred ounces of Au eq, or 22.6 million tons, with an average grade of 0.8 grams per ton Au eq. “We still believe the company can grow the Southwest zone to a total of about 1 Moz Au eq,” Willoughby commented.
The new Troilus resource provides the basis for a preliminary economic assessment (PEA), for which Troilus Gold is continuing the necessary technical work. Release of the PEA is a near-term catalyst, as it is expected in Q3/20.
Exploration updates is another potential stock-moving event, as the company intends to drill 20,000 meters later this year. That campaign will include drilling the Southwest zone for ounces to add to the resource and finishing infill drilling around the main ore bodies in the Z87 and J zones.
“We expect ongoing exploration updates in a strengthening gold market to drive positive momentum and a rerating of the stock,” Willoughby wrote.
Red Cloud has a Buy rating on Troilus Gold.
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Troilus Gold Corp.
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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: …read more