Hour 1 – A Focus on US Market Health, New Fed Nominees, and Base Metal Investments
- Segment 1 – Jesse Felder kicks off the show by sharing why his main focus is the US markets and volatility. He weighs sentiment, fundamentals, and technical factors in this segment.
- Segment 2 – Chris Temple joins me for a look at the two Federal Reserve nominees Christopher Waller and Judy Shelton. There are some interesting comments about the type of policy the Fed could shift towards.
- Segment 3 – Dave Erfle and I shift focus to the resource sector. We discuss where Dave sees value in metals stocks as the gold stocks continue to lag.
- Segment 4 – Adventus Mining has been quietly de-risking an interesting base metals asset in Ecuador. With a busy 2020 ahead, including a large exploration drill program, Christian Kargl-Simard President and CEO of Adventus shares all the details you need to know for this year.
Exclusive Company Interviews This Week
Thanks Cory and Big Al for another great week of daily editorials and company interviews, and for another great weekend show!
This 7 minute interview with Guggenheim’s Minerd was a pretty good synopsis of the bubble economy that the fed has blown from commercial real estate, to the tech bubble, to the home bubble, to the inflated assets through QE and low rates that we find ourselves at the end of currently.
At the very end (last 30 seconds) the interviewers pin him down to what defensive strategy investors can take and where he is putting his money, and his #1 choice = SILVER. They challenge him about why not Gold, and he points out how much more catching up Silver has to do to break above it’s 2016 high, where Gold already has broken above it and is ratcheting higher. Agreed.
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Why Guggenheim’s Minerd Sees the Market as a ‘Ponzi Scheme’
Bloomberg Market & Finance – Jan 22, 2020 #VIDEO
Scott Minerd, Guggenheim Partners co-founder and Guggenheim Global chief investment officer, discusses his concerns about rallying asset prices. He talks with Bloomberg’s Tom Keene and Jonathan Ferro at the World Economic Forum’s annual meeting in Davos, Switzerland on “Bloomberg Surveillance.”
This interview takes a little while to get going, but wow once Ron get’s going he covers a lot of ground – the cheerleading of the general stock markets as if it will be blue skies forever from the media & Trump, to the massive amount of liquidity pumped into the markets and how they should be affecting the Precious Metals markets, but how the only market really seeing the resulting effect is the Palladium markets due to the lack of futures activity, and then he gets into some bizarre anomalies pricing action in the Palladium markets, but he covers Rare Art, the Dollar, and the crude Oil markets. Worth the watch!
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Keeping it Real When Everything Isn’t | Rob Kirby
FinanceAndLiberty – Jan 24, 2020 #VIDEO
Palladium tops $2,500 an ounce in biggest one-day surge since 2008
Bloomberg News | January 17, 2020
“While palladium’s rally has been driven by supply deficits and surging demand, the increases have exceeded market forecasts, said Rene Hochreiter, an analyst at Noah Capital Markets Ltd. who expects prices could retreat to average $2,250 an ounce for the rest of the year.”
https://www.mining.com/web/palladium-tops-2500-an-ounce-in-biggest-one-day-surge-since-2008/
Palladium Surges Again But The Focus Will Soon Shift To Platinum
Tim Treadgold – Forbes – Jan 19, 2020
More Precious Than gold: Why The Metal Palladium Is Soaring
20 January 2020 – BBC
“It has jumped by more than 25% in the last two weeks alone, and almost doubled in value over the last year.”
“At about $2,500 (£1,922) an ounce of palladium is more expensive than gold, and the pressures forcing its price up are unlikely to ease anytime soon.”
Why Palladium Is Suddenly a More Precious Metal: QuickTake
By: Eddie van der Walt and Ranjeetha Pakiam – January 20, 2020
“Palladium’s status as a byproduct to platinum or nickel mining means producers aren’t quick to respond to price changes. In fact, output is projected to fall short of demand for a ninth straight year in 2020. That’s helped drive prices to successive records.”
Palladium’s Fading Stockpiles Draw Warning of Prolonged Deficit
By Elena Mazneva and Ranjeetha Pakiam – January 22, 2020
“As palladium’s record-breaking rally makes guessing the size of stockpiles more important than ever, one thing at least is clear — they’re getting a lot smaller.”
“Palladium outperformed all major commodities in recent years as carmakers boosted usage in autocatalysts to meet stricter emissions rules. The speed at which prices surged to records this year prompted the market’s trade association to warn that low stockpiles and the unlikelihood of a quick supply response means that the tightness will probably last a while yet.”
(PGE) (PGEZF) Group Ten Metals sees positive drill results from their Stillwater West Project
Proactive – Jan 19, 2020 #VIDEO #Palladium #Platinum #Copper #Nickel
6 month performance chart of a dirty dozen of the key Palladium & Platinum stocks:
Sibanye, Anglo American Platinum, Platinum Group Metals, Group Ten Metals, New Age Metals, Palladium One, Canadian Platinum, Generation Mining, Grid Metals, Transition Metals, Jubilee Platinum, Sylvania Platinum
Same dozen PGM stocks, but with a 3 month performance chart:
Platinum Breaks $1000, What’s Next?
January 24, 2020
“The reality is that we are seeing a similar price rally in Rhodium and Platinum as we saw in 2004~2008 – just prior to the Global Credit Crisis. Take a look at the composite chart below.”
“There are few interesting components of these charts that show how precious metals reacted throughout the 1997~2000 rally and the 2005~2008 rally – both of these events set up a bubble burst reversion event.”
https://smallcappower.com/expert-articles/platinum-price-surge/
5 Junior Palladium Stocks That Could Continue to Surge
SmallCapPower – January 22, 2020
Platinum Group Metals Ltd. (TSX:PTM)
Palladium One Mining Inc. (TSXV:PDM)
Group Ten Metals Inc. (TSXV:PGE)
New Age Metals Inc. (TSXV:NAM)
Grid Metals Corp. (TSXV:GRDM)
https://smallcappower.com/analyst-articles/junior-palladium-stocks-soaring/
50-year chart shows how cheap gold price still is relative to stocks
Frik Els | January 23, 2020
https://www.mining.com/this-50-year-chart-shows-just-how-cheap-gold-now-is-relative-to-stocks-39584/
First Gold Pour Due at Relief Canyon Next Week
(USAS) (USA) Americas Gold and Silver expects to make the first gold pour from its Relief Canyon project in Nevada, US, next week
Mining Magazine • 21 January 2020
“Commercial production is expected to be reached in the June quarter with 2020 output estimated to be 60,000oz growing to 90,000oz in 2021, bringing its total production to 100,000-120,000oz”
(KNT) (KNTNF) K92 Mining Inc. Provides Operations and Stage 2 Expansion Update
by @nasdaq on 21 Jan 2020
https://ceo.ca/@nasdaq/k92-mining-inc-provides-operations-and-stage-2-expansion
Quinton Hennigh, Technical Advisor for (LIO) (LOMLF) Lion One Metals at the Metals
Metals Investor Forum – Jan 17, 2020 #VIDEO
https://www.youtube.com/watch?v=MkeH1utfHPA&list=PLyDPcTo-mBNrUCaclCc7frTs3gcRHc8xx&index=32
(MKO) (MAKOF) Mako Mining – Drilling at Las Conchitas Extends Near Surface, High-Grade Gold Mineralization, Highlighted by Intercepts of 56.8 g/t Gold Over 1.4 Meters and 44.6 g/t Gold Over 0.7 Meter at the Mango Zone
6 Jan 2020
https://ceo.ca/@newswire/drilling-at-las-conchitas-extends-near-surface-high-grade-56c14
Greg McCoach – Majors are Going to Fight for the Best Gold Juniors in this Bull Market
by @PalisadeRadio on 24 Jan 2020 #AudioInterview
Northstar @Northst18363337 on Twitter:
“Gold and silver have broken out sooner than I expected (assuming we don’t plunge before the close). It’ll be interesting to see what happens after FOMC next week #Gold #Silver”
[CHART]
https://twitter.com/Northst18363337/status/1220778180807622656
Gold Climbs As Concerns Over Coronavirus Grow
January 24, 2020 – Gary Wagner #VIDEO #TechnicalAnalysis #Chart
“However, Jeff deGraaf, Chairman of Renaissance Macro research tempered that statement when he said, “we’ve seen outbreak panics in the past and the resulting fear-based moves in the market have been buying opportunities.”
“Regardless where this current rally concludes, the recent rally has been impressive and substantial as it traded from $1536 to current pricing. While our technical studies indicate that there is further potential for higher pricing in the short term as high as $1594, it also indicates that this is to be followed by a final corrective wave which will take pricing to $1537 or lower.”
“The upside to this projection is once the correction has completed gold pricing will return to an extended upside rally which most certainly will challenge the recent high of $1613.”
https://thegoldforecast.com/video/gold-climbs-concerns-over-coronavirus-grow
Ira Epstein’s Metals #Video (1/24/2020)
Technical Analysis, Gold, Silver, Copper, Platinum, Palladium, Dollar, Charts
Gold (XAUUSD) Price May Increase Further to Break up Resistance Level of $1,591
Azeez M. Mustapha – January 25, 2020
Gold eyes $1,600 as Fed meeting, new Virus threat in focus next week
Anna Golubova – Friday January 24, 2020
“The yellow metal battled against risk-on sentiment this week but managed to hold above $1,550 an ounce level and even rise about 0.8% on the week. February Comex gold futures were last trading at $1,572.40, up 0.45% on the day.”
“Next week, analysts are keeping a close eye on the Federal Reserve interest rate decision on Wednesday, the spread of the new coronavirus, and the possibility of any new geopolitical tensions.”
Top 20 of 2020
Juniors Mining Companies to Watch (Insidexploration)
Nice list of juniors with lots of information
Part1: https://insidexploration.com/top-20-of-2020-part-1-of-2-junior-mining-companies-to-add-to-your-watchlist/
Part2: https://insidexploration.com/top-20-of-2020-part-2-of-2-junior-mining-companies-to-add-to-your-watchlist/
Five Copper Price Trends To Watch in 2020
Mining.com – January 22, 2020
1. Copper prices – fundamentals vs sentiment
2. Policies and politics that will drive copper demand
3: The global scrap dynamics will shift – response to changes in Chinese scrap policies on imports
4: Mine supply looks set to return to growth
5: Lower TC/RCs could push some smelters below breakeven
https://www.mining.com/five-biggest-trends-to-watch-in-the-global-copper-market-in-2020-report/
(SMTS) (SMT) Sierra Metals Reports Strong 2019 Production Results and Announces 2020 Guidance
January 23, 2020
2019 Consolidated Production Highlights
Silver production of 3.4 million ounces; a 24% increase from 2018
Copper production of 39.9 million pounds; a 17% increase from 2018
Zinc production of 81.1 million pounds; a 6% increase from 2018
Lead production of 35.5 million pounds; a 28% increase from 2018
Gold production of 11,632 ounces; a 50% increase from 2018
Total of 2.7 million tonnes processed; a 15% increase from 2018
Brien Lundin talks to Fred Davidson, CEO of (IPT) (ISVLF) IMPACT Silver Corp.
Jan 17-18, 2020 – Metals Investor Forum #VIDEO
https://www.youtube.com/watch?v=As2fK2oXlso&feature=youtu.be
$DSV $AYYBF Discovery Metals is well financed and drilling impressive numbers at Cordero Project
Proactive – Jan 20, 2020 #VIDEO #Silver #Developer
(MMG) (MMNGF) Metallic Minerals Corp finding success in some very strong mining jurisdictions
Proactive – Jan 19, 2020 #VIDEO #Silver #Explorer
(NUAG) (NUPMF) New Pacific Metals hits impressive drill results from Silversands stepout Snake
Proactive – Jan 13, 2020 #VIDEO #Silver #Explorer
Top 20 of 2020
Junior Miners to Watch
Nice list with lots of information
Mike’s a sharp guy for sure and is active over at ceo.ca as @mikeymike426:
I own some of those he mentioned like Balmoral, Northern Shield, Pure Gold Mining, and Minera Alamos, and used to have positions in RNC Minerals and Nighthawk, and have considered a position in Wallbridge and Canada Cobalt Works.
(BAR) (BALMF) Resources Named to 2020 OTCQX Best 50
by @nasdaq on 23 Jan 2020
https://ceo.ca/@nasdaq/balmoral-resources-named-to-2020-otcqx-best-50
Canada Focused, District Scale Opportunities – Balmoral Resources Ltd. (BAR) (BALMF)
Cambridge House International – Jan 23, 2020 #VIDEO
“Darin Wagner is the President, CEO & Director of Balmoral Resources Ltd. (BAR.TO). Balmoral is a multi-award winning Canadian-focused exploration company actively exploring a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt. ”
Ex, I like Nighthawk at these levels.
Thanks for the heads up Doc. It’s on my shortlist for Gold Explorers, but I need a few of the ones I hold to surge before I rotate into any more. I had it for a short time, but really need to revisit what they’ve been up to last year.
(NHK) (MIMZD) Nighthawk Gold expecting busy 2020 with work planned on Colomac Gold project
Proactive – Jan 19, 2020 #VIDEO #Gold #Explorer
Newrange is intersting. It is just beside the former Borealis project from Gryphon that got screwed by Waterton. Here is a nice article about it
The founder of Great Panther is also on board at Newrange
I’ve seen folks like the Bergdex promoting New Range, and Mike did up above so I’ll need to do more homewwork. Thanks.
As for Great Panther, they had a series of issues the last few years, so I’ve steered clear, but need to see how they are doing after taking over Beadell a year or so ago.
Have seen the Great Panther issues too. I think this was after Archer gave up the CEO role?
Archer gave up the CEO role at Great Panther in August 2017, came on board as director at Newrange in March 2018 and became the CEO in January 2019
Some of their issues in 2014-2016 where they got ransacked and hit on by cartel members, a few poor mining operational mistakes, and missing guidance repeatedly were also under Archer’s lead, so I sold my stake back then to find better operators. I wasn’t impressed by his leadership, or the new leadership at Great Panther thus far, where they had more issues with local pushback, mining strategy not going as planned, and a slow start to their plan for the Beadell projects they acquired a year or so back.
I’ve heard a more positive buzz on Newrange, so I’ll need to look again, but there have always been other projects or depressed company valuations in other Gold explorers & developers that looked more interesting to me in the past. Thanks for bringing it up though and it is worth another look at what they have going on for 2020.
I think the area has some potential, but would need a big player to consolidate it. McEwen Mining or Equinox?
Thomas – I believe this comment above was directed at the thread below regarding HighGold’s several Timmins gold projects, and I agree it will likely take a larger producer to take those into production. They may sell one to one company and the other 2 to a different company.
All I’m hoping for with (HIGH) is that they do more drilling, metalurical work, and prove out some attractive economic deposits up there with some economic studies in 1-2 years. If they do that in the Timmins area, there are plenty of potential suitors for those projects as that is a very prolific mining area, and it’s crazy these projects didn’t get explored with modern techniques when their is high grade gold veins up at surface.
HighGold Mining – Exploration and Development project – GOLDEN MILE
Greenfields exploration project available for option in the world class Timmins gold camp
HighGold Mining – Exploration and Development project – GOLDEN PERIMETER
Greenfields exploration project available for option in the world class Timmins gold camp.
Comment was actually for Newrange. Don‘t know why you can not reply to each comment. Know the Newrange area from some other plays. Gryphon had a mine running just beside. If somebody consolidates the area there could be a long life mine. McEwen is in Nevada and Equinox is probably even closer just on the boarder from Calofornia.
Ah – so that was for the Newrange thread. I gotch.
Yeah, as for commenting here on the KER it is a bit awkward, where each comment will cascade lower until it gets 4 indentations in, and then it stacks up underneath that.
However, if there already is a cascaded comment thread under a particular comment, then hitting reply will still indent the next comment, but under the initial indented thread(s) up above, and further down the page.
It’s a bit clunky, but we’re used to searching down for comments that got responded to in the wrong sequence and that go rogue. (lol) 😮
BTW – Thomas – to your point, I could see (MUX) being interested in New Range, especially since they gave up on the plan to acquire (GBR) Great Bear Resources, and sold a lot of their stake in it recently. Rob will be on the prowl for another Jr to acquire in due time, and they do have Gold Bar up and running now in Nevada.
For that matter, I could see Coeur or Alio being interested in it as well.
Couer has 2 producing mines in that area, but they still haven’t done much with Sterling (that they picked off of Northern Empire), so their hands may be full at present.
Alio, could sell their Mexican development projects, and then use some of those funds to assist with taking over Newrange Gold. Now if ALO did something like that, it would interest me and keep me from selling down the road.
Anyway, NRG looks pretty interesting, and for the open pit / heap leach mines, their grades would work very well in Nevada.
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(NRG) (NRGOF) Newrange Gold Corp – Corporate Presentation:
“Where Exploration Intersects Discovery” – January 2020
https://www.newrangegold.com/site/assets/files/3784/nrg_corporate_presentation_january_2020.pdf
Newrange alone would be to small. MUX would need to get the Borealis property too. I think Gryphton had already 1million oz and an operating mine. There is also a property from Hecla close by https://www.hecla-mining.com/aurora/
Nice. Yeah, Hecla could be another one.
Really, when talking the Walker Lane trend in Nevada, there are likely dozens of companies that would like more exposure there, so Newrange Gold is definitely in the right jurisdiction.
Further down that Walker Trend in Nevada (closer to West Kirkland, Sterling, and Corvus), I’m still waiting on Scorpio Gold (SGN) (SRCRF) to get some traction, later this year. It’s just a tiny little developer (and prior producer) that I expect may become more valuable as they continue exploring and get back into production, into a rising gold price.
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(SGN) (SRCRF) Scorpio Gold Corp – Corporate Presentation – Dec 2019
https://scorpiogold.com/site/assets/files/5652/corporatepresentation.pdf
Right by both Scorpio Gold and Corvus, on the Walker Trend in Nevada is the Gold developer (WKM) West Kirkland Mining. They are working on bringing their Hasbrouck / Three Hills deposits into production in the not so distant future.
I have a small stake in them as well, and have noticed a bit more movement lately, and they just completed a PP capital raise last week for $1 Million.
http://wkmining.com/_resources/presentations/WKM-Corporate-Presentation.pdf
Don‘t forget USA. They operate Relief Canyon now. I think two of the Rye Patch properties (Alio) are actually closer to Relief Canyon than to Florida Canyon.
WKM West Kirkland likely need to roll their share count back 10:1 to get it from 400+ M down to 40+ M.
Thomas – You’re exactly right. (USAS) Americas Silver just announced first gold pour at Relief Canyon this week, and I posted the news somewhere up above on this blog, but yeah, they are definitely in the Nevada neighborhood. Great point!
If you look at the map on this page, you can see the arrow showing Florida Canyon directly to the north, and Coeur’s Rochester directly to the East.
Americas Gold & Silver could definitely be a real potential suitor for Alio as well. It seems like I considered that when they first announced their takeover of Pershing Gold, but it had escaped me until you triggered that thought. Obviously their hands are full right now, but USAS is also active in Silver mining down in Mexico so it makes as much sense for them to takeover ALO down the road as it does for CDE.
Thanks Thomas!
Shoot… I forgot the link which has the map on it. Here it is:
Here’s that Map again but a larger zoom in:
https://www.americas-gold.com/site/assets/files/5091/relief_canyon_map.jpg
Here the map that I had in mind. You can see that Wilco and Lincoln Hill are closer to Relief Canyon than to Alios current operation Florida Canyon. Don‘t know why Alio hides this information
https://www.google.com/search?q=rye+patch+gold+projects&rlz=1C9BKJA_enDE669DE669&oq=rye+patch+gold+projects&aqs=chrome..69i57.26450j0j7&hl=de&sourceid=chrome-mobile&ie=UTF-8#imgrc=uQj1os_MgXMDFM:
That is the one
https://www.streetwisereports.com/images/RyePatch630.jpg
Found it on a old post from you -:)
http://www.kereport.com/2017/05/17/ryepatch-gold-strengthens-cash-position/
That is the one
https://www.streetwisereports.com/images/RyePatch630.jpg
Had a look on the Coeur site. Seem that Alio already sold some of the crowns from Rye Patch already
Yeah, I was a shareholder in Rye Patch, and was excited about the potential of Wilco and Lincoln Hill and thought Alio got that this is where the future feed to Florida Canyon was going to come from, but then they unloaded those to Coeur for a song & dance as CDE laughed all the way to their Rochester mill.
I was pissed when Alio did that, but now that I’m a shareholder of Coeur again, I guess it is good for their future.
In addition, I have a large position in my portfolio for USAS Americas Gold and Silver, so I don’t care which of them buys out Alio (which I also hold) as either USAS or CDE are both competent operators. If Alio get’s bought out in a year, I’ll still make money, but I envisioned Ana Paula taking them to the next level. It appears they will stay a single asset producer for the foreseeable future.
Here’s a 21st Jr Miner to Watch… HighGold Mining (HIGH) (HGGOF)
Darwin Green, President & CEO of HighGold Mining – Corporate Presentation
Metals Investor Forum on Jan 17-18, 2020 #VIDEO
https://www.youtube.com/watch?v=zT42QXfDLtI&feature=youtu.be
Eric Coffin talks to Darwin Green, President & CEO of (HIGH) (HGGOF)
Metals Investor Forum on Jan 17-18, 2020 #VIDEO
https://www.youtube.com/watch?v=hBmNPUXTJTA&feature=youtu.be
Joe Mazumdar talks to Darwin Green, CEO of HighGold Mining (HIGH) (HGGOF)
Metals Investor Forum on Jan 17-18, 2020 #VIDEO
https://www.youtube.com/watch?v=VVt0Y9Q_52U&feature=youtu.be
HighGold is something to look into. Seems that they are up to something big. That reminds me about Pebble. Do they not have environmental issues like Pebble has? The other issue is that they can only drill a few months of the year?
Good question, and that was the first issue I thought of when they were in Alaska, due to the challenges that Pebble had with Northern Dynasty, and that Constantine Metals (CEM) also had — Both regarding local pushback due to Salmon spawning areas. Luckily HighGold Mining doesn’t seem to have the same haunting Salmon issues. 🙂
Yes, the drilling is more limited in Alaska, so they do that in the summer months, but in the spring they are going to drill their Timmins Gold projects which also look very prospective and were tied up in Constantine for years, not getting any work or value associated with them, so it will be exciting to see what work they do on those 3 properties this year as well.
I like their 2 pronged approach so they can basically work almost all year between the 2 camps.
A high-grade gold and base metal play with Tier-1 potential – (HIGH) HighGold Resources
January 26, 2020 – Highballer’s Weekly Report
“Last summer, in a move to unlock value, Constantine spun out all of its gold assets, including the Johnson Tract property, into a new vehicle called Highgold (HIGH.V).”
“The word ‘high’ is in the name for good reason. High-grade gold and base metal values are what this story is all about.”
https://mailchi.mp/be838259a6ae/highballers-weekly-report?e=f510a3acd7
Hi Ex, last week you posted a link to an article entitled ” Titans In Mining: An Interview with Rick Rule”. What I enjoyed most was how Mr. Rule picks the brains of the superstars like Ross Beatty to determine how they think, and what makes them a successful businessman according to their strengths and weaknesses. He uses those skills to determine who the new superstars in mining will be by asking them a few select questions and checking with others who know them. Mining like everything else depends on the quality of the people employed in a project. Graphs and fundamentals are important but people with the right skill sets is paramount. Just a reminder! DT
Completely agree – most mining companies still not have great management
DT – Absolutely, and I agree with the point you made about the importance of people, and how it is valuable when Rick Rule picks the brain of his network, like Ross Beaty.
Everyone should have their own “Mastermind Group” like was proposed in the book “Think and Grow Rich” by Napoleon Hill.
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CHAPTER 10 – POWER OF THE MASTER MIND THE DRIVING FORCE p. 251
The “Master Mind” may be defined as: “Coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose.”
“No individual may have great power without availing himself of the “Master Mind.” In a preceding chapter, instructions were given for the creation of PLANS for the purpose of translating DESIRE into its monetary equivalent. If you carry out these instructions with PERSISTENCE and intelligence, and use discrimination in the selection of your “Master Mind” group, your objective will have been half-way reached, even before you begin to recognize it.”
“So you may better understand the “intangible” potentialities of power available to you, through a properly chosen “Master Mind” group, we will here explain the two characteristics of the Master Mind principle, one of which is economic in nature, and the other psychic. The economic feature is obvious. Economic advantages may be created by any person who surrounds himself with the advice, counsel, and personal cooperation of a group of men who are willing to lend him wholehearted aid, in a spirit of PERFECT HARMONY. This form of cooperative alliance has been the basis of nearly every great fortune. Your understanding of this great truth may definitely determine your financial status.”
“The psychic phase of the Master Mind principle is much more abstract, much more difficult to comprehend, because it has reference to the spiritual forces with which the human race, as a whole, is not well acquainted. You may catch a significant suggestion from this statement: “No two minds ever come together without, thereby, creating a third, invisible, intangible force which may be likened to a third mind.”
The old adage that “You are the average of the people you hang around” is quite appropriate.
Resource Estimation in 5 Steps – Same Valuation Approach as Eric Sprott Resource Investing Savant
by @AndrewNelson on 26 Jan 2020
“Today we’re going to talk about a very subjective topic, and that’s resource estimation. Some professionals spend their whole careers dedicated to mastering the art and it is a very important tool for speculating in junior mining stocks. In this video we’re going to talk about an approach that you can use at home to quickly estimate a resource that is also used by billionaire resource investor Eric Sprott.”
What to Watch as Precious Metals Head Into a Volatile Week – Eric Sprott
Weekly Wrap-Up (January 24, 2020) #AudioInterview
Eric Sprott returns from vacation to catch up on all the latest gold and silver news with host Craig Hemke. In this edition of the Weekly Wrap-Up, you’ll hear:
– The story you should be watching right now
– Why palladium could be instructive for the other metals
– Plus: Eric’s thoughts on the shares
Here is a solid management team with Gary Cope at the helm = The Belcara Group.
Gary delivered last time when he sold Orko Silver to Coeur for a win, and I believe he may do it again with some of these current companies. I’m invested in Dolly Varden and Orex with him looking forward to a good year in 2020 in both.
Their companies are Dolly Varden (DV), Orex Minerals (REX), Silver Viper (VIPR), and Barsele (BME).
Orex Minerals has 3 Mexican Silver/Gold projects and 1 Canadian Gold/Copper project. Sandra Escobar in Mexico is a Silver – Gold – Base Metals ….. JV with Pan American Silver $PAAS a major silver producer. Coneto Project is a Gold – Silver ….. JV with Fresnillo $FRES.L another major producer. San Luis Del Cordero is the 3rd Mexican project Silver-Copper-Zinc …. JV with Exploraciones del Antiplano (don’t know as much about this company). As for the Jumping Josephine project in Canada Gold – Copper – they are the primary owners, but likely looking for a JV partner.
> Here is the Orex Minerals #CorporatePresentation:
Dolly Varden (DV) DOLLF) is in need of an updated Corporate Presentation, but I’m still very encouraged by the work they’ve done thus far at their Dolly Varden Project and Torbit Mine.
> New Discoveries in a Historic Mining Camp: The Dolly Varden Silver Project in the
Golden Triangle of Northwestern BC:
https://www.dollyvardensilver.com/site/assets/files/1668/2019-08-08-_dv_presentation_-_final.pdf
Cory just did an interview with Steve Cope on Silver Viper 2 weeks back that is worth a listen for VIPR. It would be nice to get Gary Cope on down the road and get an overview of all 3 Silver projects – Dolly Varden, Orex Minerals, and Silver Viper.
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SILVER VIPER MINERALS – RECENT HIGH GRADE RESULTS EXPANDING ON THE NEW EL RUBI DISCOVERY ZONE
“Silver Viper Minerals (TSX.V:VIPR) released 3 drill results this week from the La Virgina Project focused on the new El Rubi discovery. These holes are follow ups on the discovery hole drilled last year. All 3 holes intersected high grade silver and gold results.”
“Steve Cope, President and CEO of Silver Viper joins me to outline the drill results and what they mean in terms of growing the discovery. He recaps the history of the overall La Virgina Project and the 50,000 meters that have been drilled on other areas of the project. We also discuss the plans for the ongoing drill program with a focus on growing and releasing a maiden resource.”
As discussed sometime last week, the Oxygen Captial Group, with Mark O’Dea is another solid management team:
They currently are over Pure Gold Mining (PGM), Discovery Metals (DSV), Sun Metals (SUNM), and Liberty Gold (LGD).
I’m invested with them in Pure Gold for their Gold development project in Red Lake and Discovery Metals huge Silver development project in Mexico.
(PGM) (LRTNF) Pure Gold Mining – The Pure Gold Red Lake Mine
“Main Street. Transformative Growth. The future of Red Lake gold production.”
(DSV) (AYYBF) Discovery Metals Corp – Corporate Presentation:
“Mexico’s leading silver-focused explorer / developer” – January 2020
https://www.dsvmetals.com/site/assets/files/5120/2020-01-22-cp-dsv.pdf
Speaking of Ross Beaty…
>> Ross Beaty: I’ve Never Seen Better Macro Fundamentals for Gold
Investing News Network – Jan 22, 2020 #VIDEO
“Ross Beaty, chairman of Pan American Silver and Equinox Gold, says that the upcoming Equinox Gold and Leagold Mining merger may not be the last for the up-and-coming Americas-focused gold company. ”
https://www.youtube.com/watch?v=17mI7jscf9E&feature=emb_logo
Please tell them to buy Alio and Argonaut-:-)
haha! I’d be fine with either Alio or Argonaut getting taken out, as I own them both, but would like to see Argonaut stand alone for a few more years and get Magino and Cerro Del Gallo built and into production first, as those will be transformative assets for (AR). Then after their value more properly reflects these projects, THEN one of the big boys can take them out. 😉
As for Alio, I haven’t agreed with some of their decisions to divest the future growth pipeline of exploration development projects that they picked up from Rye Patch when they acquired Florida Canyon, but they are in a similar situation in that once they get their larger development project, Ana Paula, in Mexico into production, it would be a game changer for them as well.
I saw your comments last week that at one point Leagold was considered a potential suitor for Ana Paula from Alio, and that Equinox could be interested in the Nevada Florida Canyon project. It seems like a good fit for them down the road.
However, I wouldn’t rule out Coeur (CDE) either, as they are right next to Florida Canyon at their operating Rochester mine, and were in a courtroom tug-o-war with Rye Patch for 2 years over some of the property they had staked. I could see CDE making a move on ALO and having Gold in Nevada and Silver in Mexico as fitting perfectly into their business model as well.
Thomas – I just went over to the Alio website, and downloaded their new slide-deck, and it shows both Ana Paula and San Francisco as “Non-Core” assets. (WTF??).
It says on page 9, that they will not be doing any more spending on these projects in 2020, and that they are “High quality assets that do not fit with near-term corporate objectives.”
https://www.aliogold.com/_resources/presentations/corporate-presentation.pdf
This leads me to believe they will divest them for a cash offer, so it is possible that a big boy Producer will pick them up as bolt-on projects down in Mexico. Honestly, if Alio’s only plan is just to milk Florida Canyon (after already divesting all the old Rye Patch assets that could have fed that mine), then I’ll likely sell out of Alio during the first major run higher, as my interest was in seeing them develop their Mexican assets. That was their big upside, but they are clearly not equipped to develop them on their own or with their current financial picture.
Kind of bummer, because since Alio is so cash-starved they’ll likely sell Ana Paula and San Francisco far below what they will be worth in this next metals cycle with all the ounces indicated and inferred in the ground. Whoever buys those is the company that is going to get the good deal. Regardless, when they sell those off and get the cash injection, it will help Alio in the short term to further drive Florida Canyon deeper, and if they bump up during that period, I’m selling out during that liquidity event.
I went over to (AR) Argonaut Gold’s site and just downloaded their new #CorporatePresentation and remain very impressed for their transformation strategy that they’ve outlined for their existing mines, and their 3 development projects.
I particularly like the analogs they drew between their Magino development project and the Island Gold project that Alamos acquired from Richmont, and Wesdome’s Eagle River project — (on page 11).
Magino could really become the company maker for Argonaut, but their other 2 mines (El Castillo and La Colorada) are chugging right along, and Cerro Del Gallo still looks like a nice secondary development project. I see Argonaut as morphing into a premier Mid-Tier Producer over the next 2 years.
Than Equinox and Coeur should join forces to take them out together and split it, Ana Paul to Equinox and the rest to Coeur.
They very well may split up Alio one day, as it looks like ALO is intent to sell Ana Paula and San Francisco, so Equinox or even First Majestic could grab those in Mexico, while Coeur takes over the remaining Alio assets at Florida Canyon afterwards, to supplement their Rochester operations in Nevada.
Unfortunately it reminds me too much of the final death throws of Primero, where they divested Black Fox to McEwen, and divested Cerro Del Gallo to Argonaut, before finally getting acquired for their flagship San Dimas by First Majestic.
I could see the same thing playing out for Alio where Mexican assets get snapped up together or separately first, and then Coeur comes in for the kill on Florida Canyon. SMH.
For Ana Paul I see Leagold or Torex. They are both neighbors and large enough
Yeah, aside from LeaGold/Equinox – Torex would be an excellent suitor.
I wander if any of the larger Silver producers may also be interested in either or both Mexico projects?
Ex:
Referring to yesterdays comments about Project Generators and todays videos from the MIF,
I found the presentations by Strategic Metals interesting (SMD) and will be looking more into them. Thanks for your mention.
Yeah, SMD is an interesting one in the Prospect Generator space and I used to own it a few years back. They have strategic stakes in dozens of Jrs (like a small discovery ETF), and a few properties they are going to JV and keep partial ownership in, a few with NSRs, and then some properties they they are doing exploration work on which looks promising. Globex is a similar P.G. to them, as is Riverside Resources.
I’ve owned SMDZF for awhile. They had a nice run awhile back and look like they’re consolidating. They have cash in he bank and hold shares in other companies so they’re rather eclectic as opposed to other PGs. They also have some technologies outside the mining industry—own a cement process that has interest in it.
Gwen Preston talks to Richard Drechsler of Strategic Metals (SMD) (SMDZF)
Metals Investor Forum – Jan 17-18, 2020 #VIDEO
https://www.youtube.com/watch?v=hxYiZmtaXXw&list=PLyDPcTo-mBNrUCaclCc7frTs3gcRHc8xx&index=91
Silver’s price action verses Gold in the futures on Friday was looking like magneto check complete, cleared for take off.
Time to take another hard look at the beat down Silver Jr’s.
Gold looked strong versus silver on Thursday so it was great to see the gold-silver ratio drop on Friday. Let’s hope it was doing more than just filling that 1/21 gap.
https://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24SILVER&p=D&yr=1&mn=0&dy=0&id=p06640398573&a=715792181
Silver(SLV) does look like it is ready to go:
https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=9&dy=0&id=p02958286876&a=561694199
The silver miners (SILJ) came to life when they needed to:
https://stockcharts.com/h-sc/ui?s=SILJ&p=W&yr=3&mn=0&dy=0&id=p42221250594&a=715463204
Sven Henrich @NorthmanTrader on Twitter:
“Here’s Jerome Powell, keen on keeping Fed independence ahead of the Fed meeting this week, hanging out with his core constituency at the Jeff Bezos shindig. Also attending: Ivanka Trump, Jared Kushner, Bill Gates among others.”
https://twitter.com/NorthmanTrader/status/1221546722150711296
Gold up to $1580 and Silver up to $18.27 on Iraq missile tensions.
also, the Chinese virus and upcoming Fed meeting may be playing a part.
Not to mention, that the PMs have been technically pretty strong lately.
I choose door #3
The discount that gzz is trading vs rzz is getting ridiculous/annoying….I sold my rzz in the low teens and bought more gzz cuz of the discount then. Now rzz is almost $20 plus it pays a dividend
Agreed Wolfster. I’m not sure when the market is going to wake up to this, and in retrospect, it would have been better to go all in on RZZ until now, and the rotate to GZZ, but who would have guessed that Mr. Market could get the valuations so mismatched for such a period of time.
For those of you not aware of renewable plays xebec and greenlane, you may want to have a look at this sector. It’s the early stages of a multi billion industry that is growing nicely
Gary Savage called this move spot-on
Scorpio Gold Signs First Toll Milling Contract for Its Wholly Owned Goldwedge Mill in Manhattan Nevada
https://www.accesswire.com/574104/Scorpio-Gold-Signs-First-Toll-Milling-Contract-for-Its-Wholly-Owned-Goldwedge-Mill-in-Manhattan-Nevada
Nice to see them get a revenue generating process back in place at Goldwedge, while they’re waiting to get back into production at Mineral Ridge. I had just mentioned them up above in this blog during he discussion of Nevada and the Walker trend.
Again miners are subdued compared to price of Gold. I echo the words of Rick Ackerman,
“I love gold, but I hate it”
Don’t know how long this charade continues.
I still like XAU vs DIA:
https://stockcharts.com/h-sc/ui?s=%24XAU%3ADIA&p=W&yr=4&mn=5&dy=0&id=p34594076853&a=707626462
E.B. Tucker has it right.
https://www.youtube.com/watch?v=4GRdSoQDYjk&list=WL&index=7
Thanks, Guys.
Re: Segment 2:
Is it possible for the Fed to have a monetary policy independent of what the rest of the world is doing ?
i.e. Is it possible to have a gold standard, if the rest of the world is printing money ?
Would that not drive the Dollar up too much ?
Would not printing money not collapse the U.S. Economy ?