A Zinc Discovery Plus Two Buy Recommendations Equal a Solid Week for One Miner

Source: Streetwise Reports   07/27/2017

With multiple mines at different stages, and results exceeding expectations, this miner is in the sights of analysts.

Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) announced the latest results from its Health Steele project in Canada. According to the July 25 press release, the company “drill tested the E-zone at Heath Steele, an advanced-stage, near-surface target with a historic, non-National Instrument 43-101-compliant resource.”

· Highlights include: 30.7 metres at 7.56% Zn, 2.34% Pb, 0.29% Cu, 72.00 g/t Ag and 0.48 g/t Au;

· including: 10.0 metres at 15.32% Zn, 4.50% Pb, 0.07% Cu, 90.45 g/t Ag and 0.22 g/t Au; and

· 22.3 metres at 7.86% Zn, 2.63% Pb, 0.32% Cu, 82.46 g/t Ag and 0.82 g/t Au

The Heath Steel project was acquired as part of a “definitive agreement” between Glencore International Plc (GLEN:LSE) and Trevali. Heath has a long history of extractions between 1957 and 1999, which include zinc, lead, copper, silver and gold.

Trevali also recently announced preliminary Q2/17 production results, including results from the Rosh Pinah mine in Namibia and Perkoa mine in Burkina Faso that are being acquired from Glencore.

In a July 24 report, analyst Jacques Wortman with Eight Capital commented that Trevali had a “mixed quarter, but generally better than expected.” He highlights Trevali’s “Q2 production results of 18.88 mm payable Zn-eq lbs, approximately 2% higher than our estimate of 116.88mm payable lbs. Two of the four mines (Perkoa, Santander) exceeded expectations by a good margin.” He pointed out, however, that Santander had exceeded Q2 results after “guidance for zinc production was adjusted lower as heavy rainfall encountered in Q2 necessitated mine rescheduling.” Regarding Santander, Wortman stated, “We are not overly concerned regarding TV lowering Santander’s zinc production guidance for this year, as it represents a partial deferral of mining in the higher grade Magistral North and Oyon zones to later this year and into 2018.” Perkoa, Wortman noted, had its “best operating quarter to date.”

Wortman concluded with a Buy recommendation and a target price of $1.85, stating, “Our target price is based on an equal-weighting between our net asset value (NAV, 8% discount rate) and a 5.0x target multiple to our 2018 EBITDA estimate. Our 5.0x target multiple reflects the discount that zinc stocks typically trade at relative to copper stocks (6.0x – 7.0x target multiples).”

Pierre Vaillencourt with Haywood Securities, in a July 21 report, rated Trevali a Buy, highlighting that although the Santander mine was behind in zinc production, due to heavy rains, Trevali “is on target to reach its objectives for the year.” He concluded that with the Perkoa and Rosh Pina mines, recently purchased from Glencore, Trevali is the “largest pure-play zinc producer in the world” and Haywood’s target price of $2.00 is based on “a multiple of 4.3xEV/2018E Operating Cash Flow, and is supported by a NAV of C$1.08.”

Trevali is currently trading at around $1.32 per share.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Trevali Mining Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: TV:TSX; TV:BVL; TREVF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17590

Dr Copper Leads the Metals Charge

Source: Clive Maund for Streetwise Reports   07/27/2017

Technical analyst Clive Maund charts copper and finds it has broken strongly higher, a move that he says has profound implications for precious and base metals.

Over the past couple of days copper has broken strongly higher, and while copper itself may be of little interest to most of us, the implications of this development are profound for the base and Precious Metals sectors. Copper is an important lead indicator, which is why it earned the moniker “Dr Copper,” and since it now looks like it is starting a major bull market, this is a sign that a major bull market is about to begin across the entire metals sector, which as you know is what we are looking for in gold and silver. Silver in particular is gruesomely undervalued and has huge upside potential from here.

On its 8-month chart we can see the impressive breakout move in copper
of the past couple of days. Everything about this chart is bullish, with the advance being supported by strong volume and positively aligned moving averages.

On the 10-year chart we can see that this move in copper marks its
breakout from a large Head-and-Shoulders bottom. Volume and volume
indicators have been very positive indeed (including On-balance Volume
which is not shown) as this pattern has approached and achieved
completion. There is a band of significant resistance not far above in
the $2.90 – $3.10 zone and the really big upside action can be expected to take place once the price has succeeded in overcoming this
resistance.

Copper closed at $2.87 on the CME (Chicago Mercantile Exchange) on 26th July 17.

Clive Maund has been president of http://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.

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Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Clive Maund.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17587

Exploration Expands Gold Resources in the Yukon

Source: Streetwise Reports   07/27/2017

A trio of analysts sees exploration upside at this company’s fully permitted and shovel-ready project in the Yukon.

Victoria Gold Corp. (VIT:TSX.V) released on July 24 additional drill results from its 2017 Dublin Gulch exploration program. The results are from 17 holes in the Eagle West zone, and the company noted that “the results continue to demonstrate gold mineralization proximal to the Eagle Gold Deposit. . .mineralization at Eagle West is geologically similar to Eagle and represents a potential satellite deposit accretive to the main Eagle deposit.”

Victoria’s President and CEO John McConnell stated, “the Eagle West drilling this season clearly demonstrates that additional, near-Eagle gold mineralization exists at Dublin Gulch and underscores Victoria’s ability to continue to build out new gold resources within the shadows of the Eagle Gold Mine infrastructure,” adding, “exploration at Eagle West is notable not only for a positive application of the mineralization model but also for its potential to be utilized as overliner material for the Eagle Gold Mine heap leach facility replacing barren rock that was assumed for the 2016 feasibility study. This mineralized overliner is expected to have a meaningfully positive impact on early stage cashflows.”

Analyst Ryan Walker of Echelon Wealth Partners, in a July 24 report, stated that the most recent results “are similar to those in the initial batch,” adding, “he near-surface results continue to suggest the potential for relatively quick mine-life additions, while also demonstrating the substantial exploration potential remaining along the 18km-long Potato Hills Trend at Dublin Gulch.”

Walker concluded that “our positive bias towards VIT shares reflects the project’s strategic size, fully permitted and shovel-ready status, district-scale land package with substantial exploration potential near excellent infrastructure, and situation in Canada.”

Echelon has a Speculative Buy rating on Victoria Gold and a target price of $0.90 per share. The company is currently trading at around $0.51.

Derek Macpherson of Red Cloud Klondike Strike Inc., in a July 24 comment, noted that “the Eagle West Zone is adjacent to the Eagle Gold Mine, and results continue to highlight the potential to add near mine resources.” He observed that the “ongoing 2017 Dublin Gulch exploration program uses the Potato Hills Trend mineralization concept, which is proving to be an effective tool to identify targets. The concept led to the company also identifying a higher-grade zone on the northern contact margin of the intrusive at Eagle West,” adding, “the company continues to drill, focusing on the Eagle Extension Zone adjacent to the western pit wall of the Eagle Gold Mine.”

Macpherson concluded that “we expect continued exploration success to be a positive catalyst for the stock and should help demonstrate the exploration upside that exists.”

Analyst Heiko Ihle visited Victoria’s project earlier this month and stated in a July 24 report that “we view Victoria Gold’s (VIT; not rated) Eagle Gold Project as a low cost, lower-risk project that should provide leverage to the price of gold. We were impressed with the projects low AISC, along with the fact that all necessary permits are already in hand.”

Ihle also noted that “we think that Victoria is an attractive proposition for investors looking for leveraged exposure to the price of gold. Further, we believe the company has a lower risk profile than other projects within the Yukon, given that the project is fully permitted, has quality infrastructure in place, and is nearing construction.”

“We expect Victoria to attract the attention of major producers once the project is fully de-risked from a financing perspective,” Ihle concluded.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Victoria Gold Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: VIT:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17586

Search for Gold Focused on Wyoming Hills

Source: Streetwise Reports   07/27/2017

Aggressive exploration at a gold project in Wyoming has caught the eye of one analyst who recently visited the site.

GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) announced at the end of June an aggressive 2017 exploration program at the company’s 100% owned Rattlesnake Hills gold project in central Wyoming. The program is scheduled to run from July through November. According to the company, “the fully funded, U.S.$4.0 million exploration program will consist of approximately 50 holes or 15,000 metres of drilling focused on four brownfield targets and six greenfield targets, additional soil and rock sampling and metallurgical testwork.”

Analyst Craig Stanley of Eight Capital recently visited the site and wrote on July 24, “Overall we were impressed with the team’s professionalism and experience, the project’s location and accessibility, and came away with a greater appreciation of the geology, notably the various structural orientations that prepared the rocks to host gold mineralization.”

He noted that three rigs are on site, “with the first batch of assays expected as early as August,” and a “maiden resource estimate is scheduled for H1/18 and will be based on nearly 100,000 metres of drilling, 20,000 metres of which were drilled by GFG.”

Stanley also stated that the Rattlesnake Hills project “hosts widespread gold mineralization in a 100% controlled, district-scale land position with excellent infrastructure in a mining-friendly jurisdiction. As such, we believe GFG could receive interest from senior and mid-tier gold producers,” adding that in 2011, “Agnico-Eagle signed a $76 million joint venture agreement to earn a 70% interest in the Rattlesnake Hills Gold Project, which is less than half GFG’s current market cap.”

Rattlesnake Hills, Stanley commented, “has numerous geological similarities to the Cripple Creek gold system in Colorado, which has produced over 20 million ounces of gold.”

Stanley also called attention to GFG’s “proven management,” noting that GFG is led by Brian Skanderbeg, “a professional geologist and former President and Chief Executive Officer of Claude Resources Inc., a TSX-listed gold exploration and mining company that was acquired by Silver Standard Resources in May 2016 for $337 million.” He also noted that GFG’s VP Exploration, Timothy Brown, “worked for 21 years at Cripple Creek, including nine years as Exploration Manager during which over six million ounces of gold were added to the resource. Three geologists that worked with Mr. Brown at Cripple Creek have also joined the GFG team.”

Eight Capital has a Buy rating on GFG and target price of CA$1.60 per share. Shares are currently trading at around $0.53.

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) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family 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: GFG Resources Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources, a company mentioned in this article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: GFG:TSX.V; GFGSF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17585

Don’t Go Swimming with the Sharks

Source: Bob Moriarty for Streetwise Reports   07/26/2017

Bob Moriarty, president of 321 Gold, warns investors to never put in market orders when buying or selling junior mining shares.

You should never, never ever, put in a market order when buying or selling junior mining shares. The liquidity is so low that it is the financial equivalent of putting a sign around your neck saying, “I’m stupid. Steal from me.”

I wrote Nobody Knows Anything a year ago to try to educate investors on the basics of investing they need to know. Some of the most valuable advice is what not to do.

When I had someone design a cover for the book, the first cover I selected an investor standing in a boat trying to reel in dollars while the boat floats in a sea of sharks. It makes a great analogy. Everyone you deal with is trying to take your money. The biggest sharks of all are the brokers. They will steal from you in a moment if you allow it.

Nobody Knows Anything

The same stock gave two different perfect examples of what can happen with market orders in just the last six weeks. The stock is Irving Resources. The U.S. symbol is IRVRF and for American buyers not trading the Canadian symbol through Penntrade, everyone else is pretty much forced to buy in the U.S. using the U.S. symbol.

It vital that investors understand that on Canadian listed shares with companies domiciled in Canada; the Canadian symbol is the real stock. But when Americans cannot trade the Canadian symbol through their brokers, U.S. brokerage houses will have set up an OTCBB symbol. It is a derivative; it is not the real deal.

So when trading Canadian shares, every investor should track the stock on Stockhouse or Stockwatch in Canadian dollars. Those are the real prices. The U.S. symbol will more or less track the Canadian shares but with a currency conversion. But the U.S. symbol will always have less liquidity.

On June 13th I began to get a flurry of emails, all in a panic, wanting to know what happened to Irving. Had they gone belly up? I went to Stockwatch and looked at my screen. It showed the stock trading in a range of $0.64 to $0.66 with just over 22,000 shares traded. The stock closed up a cent on the day. Mentally I was scratching my head. Why were people contacting me in a panic? I asked one of the writers why he believed there was a problem. I didn’t see any problem.

He wrote back that the shares had crashed to $0.09 a share. Naturally he was fearful. I scratched my head again before pulling up the U.S. symbol for Irving and the answer was as distinct as a pimple on the tip of your nose. The IRVRF symbol traded 10,109 shares on June 13th in four trades. Three trades were between $0.46 and $0.49, but the first trade of the day was at $0.09.

Someone put in an order to sell 5,000 shares at the market to insure he would get an execution. And he did. From a close of $0.48 the day before, the shares went to $0.09. I don’t have any clue as to who the hopeless seller was but finding the culprit who stole $1,950 US from the investor was easy. All you had to do is go down to the slimiest gin joint around Wall Street and look for the broker with the giant grin buying free drinks for everyone.

IRVRF June 13

Then on July 20th I wrote a piece that first went up on Streetwise about the same Irving Resources. I went to see them a couple of weeks back and was quite impressed. Strangely enough, in the piece I suggested the shares would double once the liquidity dried up. Little did I know that there had been a big seller in the market for days dropping a few hundred or thousand shares at a time. One of the original big shareholders was going through a divorce and needed to liquidate. The lack of liquidity was killing him until my piece came out and a lot of people felt the same way about the stock as I did.

So on the 21st of July the buyers came out in force and bought up over 700,000 shares in a stock that traded by appointment for many months. On Monday July 24th the buying continued. The shares closed up $0.15 from $0.70 on Friday, opened strong on Monday the 24th. By about 3:00 in the afternoon with the shares up another $0.20 on the day to $1.05 some investor decided that he really needed to own some Irving. So he put in a market order.

IRV July 24

Same broker, same story. The stock goes from about $1.05 to $1.54 in seconds and drops right back to close at $1.00 on the day, up another $0.15. So someone was nice enough to make me look as if I could forecast the future and it only took two days. The free float dried up and the stock doubled.

It was stealing on the part of some broker and if you think this is some free market where everyone plays fair and square let me assure you that it is not. If you want to live in a world with a totally free market, you need to move to Zimbabwe.

You are in shark-infested waters. Don’t swim with the sharks lest you get eaten. Sharks abound, they feed you manure and call it mushrooms. You can tell because they are always mumbling about how markets are manipulated when we all know that all markets are manipulated. They talk about “naked short selling” when we know that doesn’t even exist in commodities. They shriek about how Comex is about to default but it somehow never does.

They are sharks. They want your money.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 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.

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) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Irving Resources. Irving Resources is not 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 sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Irving Resources Inc., a company mentioned in this article.

( Companies Mentioned: IRV:CSE; IRVRF:OTCBB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17583

Canadian Explorer Advances Two Projects, Including ‘Intriguing’ Site in Yukon Territory

Source: Thibaut Lepouttre for Streetwise Reports   07/26/2017

With the summer exploration season well underway, Thibaut Lepouttre of Caesar’s Report takes a look at a Canadian explorer with a full exploration program this summer.

Now that the summer exploration season is in full swing, Comstock Metals Ltd. (CSL:TSX.V) is also getting ready to provide the market with new drill results. A summer drill campaign has started at the Preview SW project in Saskatchewan, while the Yukon-based QV Gold project will be drilled later this summer.

Comstock’s two main projects

A) Preview SW, Saskatchewan
Drilling has already started at Preview, and it shouldn’t be too difficult for Comstock Metals to add more ounces to the current 430,000-ounce (Indicated + Inferred) resource estimate.

The project is located in Saskatchewan, covers a total surface area of just over 850 hectares and is located approximately 250 kilometers north of Prince Albert and 40 kilometers northeast of La Ronge.

thibaut9_7-26

Although the previous operators and Comstock have discovered seven gold prospects on the property, the current resource estimate containing almost 430,000 ounces at an average grade of approximately 1.61 g/t is limited to just one part of the property, the Preview SW zone.

The gold deposit consists of several sub-parallel gold-bearing structures, which seem to trend toward the northeast. All these structures are very close to each other, and the width of the mineralized “corridor” remains limited to approximately 150 meters. While the argument could be made the relatively narrow width of this zone will result in a relatively high strip ratio, it doesn’t have to be a deal breaker. Comstock will, indeed, have to deal with lower-grade mineralization in between the structures, but as the average grade of the resource estimate is relatively high for an open pit project, it does look like the project could handle a higher strip ratio as the cost to remove waste is negligible.

As mentioned before, the Preview SW resource estimate was completed on just one of the gold occurrences, and six more (known) targets remain virtually untested. The company has completed a 1,770-meter winter drill program with a specific focus on the Preview North zone, and the assay results of the past winter drill program are very encouraging, with an impressive 105 meters containing 1.01 g/t gold at Preview North and 5 meters at 10.33 g/t gold.

Needless to say, this type of drill results definitely justified a summer drill program, which is currently in full swing with the first two holes completed by now.

B) QV Gold, Yukon Territory
Comstock Metals’ second project is the QV Gold Project in Canada’s Yukon Territory. What’s really intriguing here is the fact QV is located right across the river from the Golden Saddle project, which was sold by Underworld Resources to Kinross Gold Corp. (K:TSX; KGC:NYSE), only to see Kinross Gold sell the asset to White Gold (WGO.V) a little while ago.

This was an important transaction as it establishes White Gold as a dominant Yukon-focused exploration company, which really brought a lot of attention back to the region.

thibaut1_7-26

As the QV property is located really close to White Gold’s Golden Saddle property, it would make a lot of sense to assume all options and possibilities will be thoroughly investigated farther down the road.

Over the past year, Comstock Metals has made a lot of progress to advance the property. Although it hasn’t always been easy to raise money for exploration projects in the Yukon, Comstock was able to identify the VG zone and drill off an initial resource within a 350-square-meter area. The company also confirmed the rock type and style of mineralization at the VG zone is similar to what has been found at Golden Saddle.

Not only does the VG gold zone of the QV project already contain 230,000 ounces of gold, it also still remains open in all directions. This means it should also be relatively easy to add more ounces to the resource estimate, which was completed in 2014 (none of the 2014–2017 exploration results are included in the current resource).

thibaut2_7-26

Even though last year’s RAB drill program was relatively small, it was able to extend the VG zone by in excess of 50 meters toward the east after intersecting in excess of 18 meters containing in excess of 1.8 g/t gold, and 50 meters to the west with an intercept of 12.19 meters averaging 5.53 g/t gold (blue rectangle), but it also confirmed the mineralization continues approximately 200 meters toward the northeast of the Telegraph fault, the “yellow zone.”

None of these holes was drilled inside the current resource, so the path to define a million ounces at QV is not unrealistic, especially considering Comstock Metals is still working on three additional “high priority” exploration targets.

There’s very little doubt the current 230,000-ounce resource at QV is just the beginning, as last year’s exploration program successfully extended the known mineralization, while three other high-priority mineralized zones on the wider land package also have the potential to add several hundred thousand near-surface ounces to the mix. RAB drilling is ineligible for resource calculations, and that’s why Comstock is also planning to complete up to 2,000 meters in diamond drilling this year, which would indeed qualify to expand the resource base.

What’s next for Comstock?

Comstock Metals is blessed with two resource-stage projects, although it’s still valued as a greenfield exploration company with a market capitalization of just CA$10M (despite a cash position of approximately CA$3M). That cash position will obviously be used to complete the summer exploration programs, which will hopefully result in an increased gold resource on both projects.

While the Preview SW project hosts the largest resource, the market will very likely be more excited by the prospects of the QV project in the Yukon, as the entire region enjoys some “special attention” these days. Thanks to the renewed interest in the Yukon Territory, it will be very interesting to see the “end game” for the QV project. Unless you have in excess of 2 million ounces, it’s really difficult to develop a gold project in the Yukon Territory on a standalone basis. Goldcorp will be able to build the Coffee mine, but Kinross’ Golden Saddle project probably was (and is) too small to be viable on a standalone basis.

Comstock Metals isn’t a one-trick pony, and both assets have a good shot at reaching the critical mass needed to start thinking about developing the projects into mines. The company’s first priority will be to build ounces and cash position of approximately CA$3M; Comstock Metals is in a good shape to continue its exploration activities on both projects.

At its current market capitalization of CA$10M is trading at just US$11 per ounce of gold in the ground, and that’s indeed quite cheap considering the exploration potential on both projects.

It’s now up to David Terry and his team to advance both QV and Preview SW, and we expect to see a steady flow of assay results being released to the market from August on.

Thibaut Lepouttre is the editor of the Caesars Report, a newsletter and mining portal based in Belgium that covers several junior mining companies with a special focus on precious metals and base metals. Lepouttre has a Bachelor of Law degree and two economics masters degrees that have forged his analytical approach to the mining sector. Considered a number cruncher, Lepouttre focuses on the valuations of companies and is consistently on the lookout for the next undervalued mining company.

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Disclosure:
1) Thibaut Lepouttre: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: a long position in Comstock Metals. 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: Comstock Metals. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Comstock Metals, a company mentioned in this article.

( Companies Mentioned: CSL:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17582

Reconciling the US Dollar Outlook with the Super Bullish Gold and Silver COTs

Source: Clive Maund for Streetwise Reports   07/25/2017

Technical analyst Clive Maund charts the U.S. dollar and expects it to trade sideways for a while before continuing its downward trend.

Because the dollar has such an important bearing on everything, especially the Precious Metals, it is timely for us to take a close look at it here after its recent steep drop, for as some of you may have seen, a number of indicators pertaining to the dollar suggest that, possibly after some further downside it is likely to bounce, or at least take a rest in a sideways range for a while, before the decline perhaps resumes in earnest.

We’ll start by looking at a couple of these indicators. The latest U.S. Dollar Hedgers chart, which is a form of COT chart, is certainly starting to look bullish, and at the least unless and until these positions ease somewhat, further significant downside for the dollar look unlikely.

Meanwhile the latest Dollar Optix, or optimism chart, also shows that pessimism is getting overdone. This doesn’t necessarily mean that the dollar’s downtrend is done, however, as minor rallies can cause this to ease before it then plumbs new lows. These two indicators taken together suggest that a relief rally is likely in the dollar soon, perhaps after it drops a bit lower first, although they don’t mean that the rally will get very far.

Alright, so how does this square with our stated super bullish position on the Precious Metals, gold and silver? Well, it doesn’t, of course, since a dollar rally normally means that gold and silver will drop back. So what’s going on here? The latest COTs for gold and silver were super bullish, especially silver, which was even more bullish than late 2015, and the key point to make here is that they remain so, regardless of any other considerations or what is going on elsewhere. This being so it means one of two things—either the dollar and gold and silver are going to rally in unison, unlikely but possible, or after some kind of relief rally or consolidation pattern, the dollar’s decline will resume, perhaps with a vengeance, and as we will see it could possibly accelerate into a crash.

Turning now to the charts for the dollar itself, we start by looking at its latest 9-month chart. As we had already figured out a month or two ago, it is being forced lower at an accelerating pace by a parabolic downtrend. Now we are arriving at a critical juncture above key support with the key indicators above suggesting a bounce or a pause in the decline. However, should the parabola force a breakdown below the support, a really severe decline or crash will be in prospect.

On the 4-year chart we can see how the parabolic downtrend has forced the dollar down towards the key support approaching the lower boundary of a large bearish Broadening Formation. While several indicators are suggesting that it will take at least a breather here, if it does break down the consequences for the dollar are likely to be dire—and this could be the message of the super bullish gold and silver COTs.

It’s also useful to look at the 4-year chart for dollar proxy, the PowerShares US Dollar Index Bullish Fund, which looks about the same as the dollar index chart, except that we can also look at volume and volume indicators. The Accum-Distrib line in particular is extremely weak, and gives us an additional clue that the dollar may be in the early stages of a really serious decline. Gain, this could explain the strongly bullish gold and silver COTs.

Actually, it’s not hard to understand why the dollar could crash soon. Those in control of the U.S. have been struggling to maintain the U.S. dollar’s supremacy as the global reserve currency for years, which has involved the maintenance of a massive military machine spanning the world, with hundreds of overseas military bases designed to project power and impose dominance. Those who have dared to challenge the dollar’s hegemony, by attempting to trade in other currencies, like Gaddafi and Saddam Hussein, have been killed and their countries left in ruins. Now the rising Eastern powers like China are threatening the hegemony of the dollar, but they can’t be attacked because they have nukes and can strike back. Russia has nukes too and so can’t be attacked physically, except perhaps by means of a “1st strike” and its parallel drive to escape dollar hegemony is the reason that it has instead come under economic assault via an artificially low oil price and sanctions. The point to grasp in all this is that, to put it crudely, the U.S. has managed to “piss off” most of the world, with its heavy handed approach to maintaining dollar dominance using military force when it can get away with it, the only countries pleased with its efforts being Israel, sidekick countries like Poland and the UK, and client states like Saudi Arabia, who are in for a big shock when they discover, after Iran has been dealt with, that they are no longer important. The East is playing a carefully calculated game to rid itself of dollar dominance, and those of you who have read “The Art of War” will know that they are not to be underestimated—thus the continued U.S. threat of using brute force will be blunted and turned against them. What is likely to happen is that the East will gradually circumvent the dollar until the U.S. economy collapses, no longer able to afford the huge burdens of its massive debts, welfare state and the military drain. This makes the situation very dangerous, because the U.S. will be tempted to use force to maintain its dominance while it can still afford to.

Finally, we will take a quick look at the very long-term 20-year chart for the dollar index. This chart makes plain that if the dollar has peaked, and is soon to enter a severe decline, it won’t be the 1st time in the past two decades, as between 2002 and 2008 it suffered a massive drop—and that was long before it was threatened with being delisted as the global reserve currency. This chart also shows that it could drop a long, long way from the bearish looking Broadening Top that may now be approaching completion.

Conclusion: the latest extremely bullish COT charts are not negated by the dollar being oversold here and some of its indicators looking positive. The bigger picture is that the dollar may be headed for a breakdown and severe decline or even a crash.

Clive Maund has been president of http://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.

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Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Clive Maund.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17580