Metallic Minerals Catches the Silver Ring

Source: Bob Moriarty for Streetwise Reports   12/14/2017

Silver is cheap right now, says Bob Moriarty of 321 Gold, who profiles a company in the Yukon that he says is delivering world-class exploration results.

In the old west, when the sole lawyer in a small town needed more business, he would bring in another attorney. Two legal beagles in a small town are enough to stir up sufficient business for each.

Actually, mining sort of works the same way. You have to have several mining companies in the same district to beat the drums so investors know there is a story.

Silver investors are a strange breed. After being told for years that we are somehow going to run out of silver any day now by silver PermaBulls, they manage to catch every top in the metal. In April of 2011, they were willing to pay a 25% premium for Eric Sprott’s Silver ETF. They did manage to nail the top once more. But there are actually few real silver companies or districts.

One of the most prolific silver areas in history was the Keno Hill silver district in the Yukon. It’s been around for over 100 years. Over 200 million ounces of silver came out of the region at an average grade of 1374 grams per ton. That’s over 44 ounces a ton or $660 rock.

After shutting down in 1989 due to prevailing low silver prices, the district began to reawaken in 2006 when Alexco Resource purchased the United Keno Hill Mines properties. Alexco is moving toward production with about 80 million ounces of silver in a 43-101. But Keno Hill has pretty much remained off the minds of investors primarily due to a lack of other competing silver companies.

Greg Johnson, CEO and Chairman of Metallic Minerals Corp. (MMG:TSX.V), was an important part of NovaGold who helped take the company from $0.09 a share in 2001 to nearly $20 a share a few years later. NovaGold helped found Alexco and Greg was part of the process. If I was to ask around as to who knows more about Keno Hill than anyone in the world, I think the answer would be Greg Johnson.

Greg Johnson took over a moribund Yukon junior named Monster Mining in 2016, changed the name to Metallic Minerals and hit the ground running. In 2016 he was behind the raise of over $4 million and in January of 2017 doubled the land position of the company within the Keno Hill region.

Within the Metallic Minerals properties, eight of the previously known structural corridors cross the property. Metallic isn’t prospecting for silver, they already know where the shear zones are. They are drilling deeper under known zones of mineralization. When Alexco came into the district, they plucked the low hanging fruit in the west half of the district and that makes a lot of sense. But the eastern half was fragmented private land. While it took a lot more money and work, that is what Greg Johnson has assembled.

This is not an issue of some junior having wild expectations of what they might find after tens of millions of dollars spent on exploration. It’s not going to be a mine; it already was a dozen or so mines at absurdly high grades.

But you can’t buy anything without knowing the name. Metallic is starting promotion but most of all; they are delivering world-class results from an aggressive sampling and drill program. In May of 2017 the company announced a $1.5 million exploration program. In August of 2017 they started drilling. By October assays came back from the surface sampling with silver values up to 988 g/t and gold values of 24 g/t. At the Bounty/Buccaneer property surface samples released in early December showed values as high as 12,078 g/t Ag.

Assays from the 14 holes 1,320-meter drill program are now drifting in. A press release from December 13, 2017 shows the results from the first seven of the holes including one hole with 1.6 meters of 1,405 g/t Ag with 26% lead and 3.7% zinc. That’s the equivalent of 2,851-g/t silver.

I hate buying stuff when it’s expensive. That’s just of true of clothes and cars as of junior mining shares, gold or silver. I wrote a whole best selling book I called Nobody Knows Anything trying to convince people to buy cheap and sell dear. It works for me and I know it will work for you.

Silver was expensive in April of 2011 and I said so. Silver is cheap today and I saw a bottom coming soon and said so. Right now it takes about 79 ounces of silver to buy one ounce of gold. Relative to just about everything, silver is cheap. I just bought some this week at $16.00.

Silver is cheap and the few true silver mining juniors are at giveaway prices. I was a buyer of Metallic Minerals in the open market months ago about 10% cheaper than it is today. I knew once investors saw the bonanza silver grades coming out the company would become one of the leading go-to silver companies.

Metallic Minerals has what any company needs to succeed. They are in a known world-class silver district. They have experienced and seasoned management. They have money in the bank for future work and with any luck will soon have a tailwind in the price of silver. Read their presentation, it’s excellent.

Metallic Minerals is an advertiser. I own shares purchased in the open marker months ago. Naturally I am biased, I have known Greg Johnson for 16 years now. You make the money off your investments when you are wise and you lose the money when you are unwise so please do your own due diligence.

Metallic Minerals Corp.
MMG-V $0.30 (Dec. 14, 2017)
MMNGF OTCQX 48.6 million shares
Metallic Minerals website

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: Metallic Minerals Corp. Metallic Minerals Corp. has indicated that it intends to be 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: NovaGold. 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.

( Companies Mentioned: MMG:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/14/metallic-minerals-catches-the-silver-ring.html

Advertisements

Precious Metals Explorer to Acquire ‘District-Scale Gold Properties’

Source: Streetwise Reports   12/14/2017

Craig Stanley, an analyst with Eight Capital, took a look at the terms and potential of this mining company’s prospective transactions in Ontario.

A Dec. 12 Eight Capital research note indicated that GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) entered into agreements to acquire three mining projects, for a total of 560 kilometers squared (560 km2) of mineral rights west of Timmins, Ontario, which analyst Craig Stanley described as “one of the most gold-endowed regions on the planet.” The assets are Rapier Gold’s (RPR:TSX.V) Pen, Probe Metals Inc.’s (PRB:TSX.V) West Porcupine and Osisko Mining’s (OSK:TSX) Swayze.

Stanley concluded that “once the acquisitions close, GFG Resources will hold nearly 700 km2 of highly prospective, district-scale gold properties in tier one mining jurisdictions (Wyoming and Ontario).” He added that despite the projects being early stage, they are “positive for the company as they offer prospective, easily accessible ground that can be explored year-round.”

As for the acquisition of Rapier Gold and its 19,000-hectare Pen project, the price is 15 million (15M) shares, or CA$0.08 per Rapier share based on GFG’s price at market close on Dec. 7, 2017, Stanley noted. Thirty-four holes totaling 8,330 meters (8,330m) have been drilled at Pen, none deeper than 310m.

Regarding the West Porcupine deal, the price is 6.5M shares, or an implied ~$3.5M, reported Stanley. Twelve holes have been drilled on the property, which consists of two blocks that span about 245 km2 and flank Pen on the east and west.

In terms of Swayze, the transaction cost is 1.1M shares, or an implied ~$600,000, Stanley wrote. No drilling has been done at Swayze, but induced polarization and magnetic surveys have. The project is 40 km east of Goldcorp Inc.’s (G:TSX; GG:NYSE) Borden project.

The research note also relayed that GFG Resources announced a nonbrokered private placement to raise up to $7M. It consists of “$2M in flow-through common shares at $0.55/share and $5M at $0.50/unit (one common share and one-half of a warrant with each whole warrant exercisable at $0.75 for 24 months),” Stanley explained.

With respect to upcoming catalysts, results from 23 holes drilled at the Rattlesnake project are expected and, subsequently in H1/18, an initial resource estimate. GFG Resources hopes to commence drilling on the newly acquired properties as early as Q2/18. “Management has budgeted $2.5M for Rattlesnake Hills and $2M for the Ontario projects in 2018,” the analyst added.

Eight Capital has a target price for GFG Resources of CA$1.60. The stock is currently trading at around CA$0.50.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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/interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources Inc., 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/article/2017/12/14/precious-metals-explorer-to-acquire-district-scale-gold-properties.html

Junior Miner Looking Good for Commercial Production in 2018, Analysts Say

Source: Streetwise Reports   12/12/2017

A flagship Nevada project is showing results and the company anticipates commencing commercial production in the first quarter of 2018.

In a Dec. 11 press release, Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) summarized the Florida Canyon mine’s production results for the month of November:

  • Placed 8,059 ounces of gold on the pad (23 percent above plan);
  • Produced 3,491 ounces of gold and 1,825 ounces of silver, 20 percent higher than October;
  • Mined 730,900 tons of ore (21 percent above plan);
  • Crushed 728,900 tons of ore (21 percent above plan);
  • Maintained a grade of 0.011 opt of gold including over liner material; and
  • Achieved a low strip ratio of 0.45 for the month (74 percent below plan).

“Production reaching 3,500 ounces represents a key milestone in the continuing upward production trend. At this point mining operations now begin to contribute positive cash flows to the Company,” stated William Howald, the company’s president and CEO. “Three of the four new 785 haulage trucks are working with the fourth to be operational in early December. Over liner material has been laid over an extent that maximizes leach cell size and allows for a primary leach cycle of 45 days before stacking the second lift. Overliner will be completed in late December. The positive trend is continuing in Q4.”

“The October and now November production results confirm the Florida Canyon mine is ramping up to commercial production in Q1 2018,” he added.

George Topping, analyst with iA Securities, stated in a Dec. 11 report that “three new haulage trucks have been added, with a fourth expected this month. Additionally, the overliner placement is expected to be completed shortly. Both of these events should increase efficiencies at the mine, allowing more ore to be stacked on the pad and uninterrupted leaching.”

“Rye Patch has a low EV (US$15/oz.) for a mine that just started production, and with a 200Koz p.a. capacity at the plant, at our increasing gold prices, Rye Patch should be a highly profitable mine once through the build-up period, with significant growth potential through bootstrapping Lincoln Hill and Wilco,” Topping concluded. Topping rates Rye Patch as a Buy with a target price of CA$0.70.

In a Nov. 29 report, Macquarie analyst Michael Gray highlighted that he sees “potential multi-million ounce potential, including high grade feeder structures at FCM, with over a fairly sizeable target footprint and potential +200m thicknesses as observed from the latest drill results and also previous drilling.” He points out that the Florida Canyon mine is “turning the corner in terms of several leading indicators (mining & crushing rates, head grade, fresh plastic pad availability).”

Gray concluded by reiterating Macquarie’s Outperform rating and C$0.50 target price on Rye Patch, noting “The sulphide drill results enhance the catalyst complexion; however, we remain focused on the ramp-up execution at Florida Canyon.”

Rye Patch shares are currently trading at around CA$0.23.

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) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. 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 sponsors of Streetwise Reports: Rye Patch Gold. 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: RPM:TSX.V; RPMGF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/12/junior-miner-looking-good-for-commercial-production-in-2018-analysts-say.html

Keith Barron Wants to Mine U3O8 ‘Cheep’

Source: Bob Moriarty for Streetwise Reports   12/11/2017

More mining companies should follow the example of the garimpeiro miners of Brazil who mine until they fail to make a profit, says Bob Moriarty of 321 Gold, who discusses one gold and one uranium company that may be changing the paradigm.

The garimpeiro miners in Brazil can’t spell either. All they know how to do is to mine at a profit. Unlike professionally run mining companies, they mine until they fail to make a profit. Then they stop. All garimpeiros mine at a profit. It’s a lesson the professionals should learn.

Over the past 16 years of traveling and looking at mining projects, I invented my own definition of mining. I like it; it’s simple and covers everything you need to know:

Mining is the art and science of extracting minerals from the ground at a profit.

What I have observed in visiting hundreds of properties is that (1) the level of formal education is far higher than in any other field I am familiar and (2) most geos think that mining is the art and science of spending money. Rarely does the word profit get mentioned or exist and finally (3) most of the people in the mining business should have taken a semester off during their studies to work at a 7-11. It would do wonders for their overall education if they actually understood how to sell a quart of milk at a profit.

If the garimpeiro miners from Brazil or any other third world country were working at Purdy’s Reward in Western Australia run by Artemis Resources Ltd. (ARV:ASX) and Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX), there would be a bunch of big holes in the ground.

You see, the vast majority of the “experts” and highly educated professionals in the mining business believe you must measure gold before you mine it. Sometimes this leads to some giant gaffs such as that from Strathcona Mineral Services when they said of the Blackjack project owned by Pretium Resources Inc. (PVG:TSX; PVG:NYSE)There are no valid gold mineral resources for the [Valley of the Kings] zone, and without mineral resources there can be no mineral reserves, and without mineral reserves there can be no basis for a feasibility study.”

Oops.

It’s four years later. Pretium has put the mine into production. They are producing a lot of gold. In short Pretium was right and while technically correct, Strathcona was both highly professional and had their head up their ass.

Novo and Artemis in Aussieland demonstrate the fundamental issue perfectly. Their solution or lack of a solution will dictate the future of what might be one of the richest gold fields in history.

Novo released assay results from their first trench sample in early August. We have no idea if this is the highest-grade sample that will ever be released or the lowest. We just don’t know. There have been no other results released yet. None will be released before January of 2018.

Here’s the rub. The sample showed a grade of gold of just over 67 g/t. It was nearly pure and I’m going to pretend it has a specific gravity of gold, 19.3. Most of it was in nuggets and that’s a problem. As Pretium discovered, the more nugget effect, the harder it is to measure in any professional way.

If you can visualize a cubic meter of rock, it contains about 2.5 tons. If you have 67-g/t material, therefore you have about 167.5 grams of gold. If it were in one cubic nugget, it would be about 15 mm or about 0.6 of an inch. That’s small enough to hide in your ear if you don’t mind your ear lobes dragging the ground.

So if you have a cube of pure gold weighing 167.5 grams buried somewhere in a cubic meter of rock, just how do you measure it in a professional and duplicable way?

You can’t. It’s just not possible. So if you are a professional, you pack up your gear and go on to some other bullshit project that you can measure in a professional way.

Now on the other hand, if you are in the business of mining for a profit, you just smash the rock up and figure out an effective way to mill it. When you run out of ore, you stop. If you really must know what the grade is, ask the accountant. He is in charge of keeping all those numbers.

Keith Barron just released an excellent article talking about the Purdy’s Reward project. Like David Lenigas, Chairman of Artemis, before him, Keith gets it. The issue shouldn’t be how do you measure the gold, the issue should be, how do you make a profit? Barron and Lenigas agree, the road to riches is to mine and mill the material and extract the gold, at a profit.

Keith and I talk a lot. I encouraged him to visit the project. Before his trip, he was the king of skeptics. I maintained that it was quite real, quite different and well worth his time to visit. He did and for most of his article, the skeptical in Keith came out just as it should and as it did with Brent Cook. But the visit did convince him that Novo/Artemis have 8 km of high-grade gold marked by the paw prints of the guys with the metal detectors. If you can’t measure it, you can mine it. And in an act of brilliance, Lenigas had applied for and just received permission for a 20,000-ton bulk sample.

Keith Barron also happens to be a founder and director of a uranium company named U3O8 Corp. (UWE:TSX; UWEFF:OTCQX). And he puts his money where his mouth is. He owns a placer mining operation in Montana with the largest sapphire mine in the U.S. so he knows what he is talking about. U3O8 has deposits of uranium and vanadium in both Colombia and Argentina.

U3O8’s Laguna Salada project in Argentina contains just over ten million pounds of U3O8 and an additional eighty-four million pounds of vanadium. Recent shut downs of production capacity by two major uranium companies has lit a fire under the price of uranium shares with U3O8 going from $0.25 to $0.58 in the last five weeks.

After a lot of thinking, Keith realized that the figure generated in the PEA for the Laguna Salada property of $126 million for capex was absurd. The minerals are attached to gravel in a basin. There is about three meters of non-mineralized gravel overburden covering about a meter of mineralized gravel. Keith did some testing and found that if the gravel were turned in a trommel it would loosen the fine material on the exterior of the gravel. That fine material, about 8% of the total mass, contains 88% of the mineralization.

Moving gravel is pretty cheap. And Keith uses a trommel with his sapphire operation in Montana. It came to him that he could run a very simple and cheap test to determine just how viable a low cost fast production plan would work. He believes in it to the point that he has loaned a million dollars to U3O8 to do testing.

The tests anticipate taking the top three meters of overburden off, mining the one meter of mineralized gravel, feeding it through a trommel to wash off and break the surface covering. The fine material will be processed with baking soda and washing soda to extract the U3O8 and Vanadium.

Thirty years ago geologists rarely had access to a computer of their own. The use of GPS for navigation was rare and cell phones were only a concept out of the Sunday funny papers. Geologists have far more access to technology today than ever in history. But in the transition, has the industry forgotten why they are in business in the first place?

There are probably 1000 “life style” companies in Vancouver and Toronto today who have no ability or intention to ever put anything into production. They exist to fleece shareholders in order to provide a nice life style for management. We all know that. We are in an industry that is probably 80% fraud at heart. And we wonder just why ordinary people don’t see any reason to invest in resource companies.

I’ve seen management groups piss away hundreds of millions of dollars, the hard-earned savings of people who actually work for a living, squandered chasing a wisp of the willow. After all, in exploration you can never fail. All you need is another few million to pour down a hole and you might somehow succeed. It’s only when you actually man up and go into production that you face the real challenge of either putting up or shutting up.

Artemis/Novo have a unique form of nuggety gold in Karratha that cannot be measured, only mined. U3O8 has an interesting and different form of mineralization in Argentina that can be mined in the professional manner for $126 million. Or simply mined for a fraction of that amount.

Keith Barron is in Argentina as I write. We chatted back and forth on Skype a couple of days ago before his journey. Given his recent advice to Novo and his intention to put his money where his mouth is with U3O8 I told him that he and Quinton Hennigh are about to stand the mining industry on its head with the greatest change in the last fifty years.

Imagine the concept of going into production for pennies in order to make a profit. What will they think of next?

U3O8 Corporation
UWE-T $.56 (Dec 11, 2017)
UWEFF OTCQX 19.7million shares
U3O8 Corp website

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: Novo Resources and U3O8. Novo Resources and U3O8 are advertisers 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: Pretium Resources. 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 article/interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.

( Companies Mentioned: ARV:ASX,
NVO:TSX.V; NSRPF:OTCQX,
PVG:TSX; PVG:NYSE,
UWE:TSX; UWEFF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/11/keith-barron-wants-to-mine-u3o8-cheep.html

Gold Major to Increase Dividend by 50% in 2018

Source: Streetwise Reports   12/11/2017

BMO Capital Markets reported on this miner’s outlook for 2018 and beyond.

A Dec. 6 BMO Capital research note indicated that Newmont Mining Corp. (NEM:NYSE) intends to increase its dividend by 50% in 2018. “The company is targeting a sustainable dividend through gold cycles and one that removes the gold price link,” noted analyst Andrew Kaip. The change still needs approval, but “the Board of Directors were at the investor day, and their presence suggests it is a fait accompli.”

Regarding the forward-looking numbers Newmont announced, Kaip wrote, “The top end of 2018 and 2019 production guidance [was] slightly below our expectations but in line longer term. All-in sustaining costs (AISCs) for the company were in line with our estimates, with a capital outlook that was better than expected.”

When comparing new to previous estimates, the financial forecast for Newmont Mining over the next several years is “improved,” Kaip concluded.

As for production, Newmont forecast 4.9–5.4 million ounces (4.9–5.4 Moz) for 2018 and 2019, which is up from its previously predicted 4.7–5.2 Moz. “Attributable production, below our estimate for 5.6 Moz, had slightly tempered expectations across the segments relative to our forecasts,” Kaip noted. Estimated production through 2022 is 4.6–5.1 Moz.

In terms of costs, Newmont guidance indicated “improved” AISCs of $965–1,025 per ounce ($965–1,025/oz) over its previous estimate of $950–1,050/oz, said Kaip. For 2019 and beyond, the company expects lower AISCs at $870–970/oz.

With respect to capital, the company reiterated expected total capital of $900–1,000 million ($900–1,000M) and sustaining capital of $600–700M. In 2019, total capital is anticipated to decrease to $730–830M, with sustaining capital remaining the same. Longer term, both types of capital are expected to decrease, total capital at $580–680M and sustaining capital at $550–650M.

BMO Capital has an Outperform rating and a $45 per share target price on Newmont, whose stock is currently trading at around $36.20 per share.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard 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) 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: NEM:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/11/gold-major-to-increase-dividend-by-50-in-2018.html

Guyana Shield Is Host to Multiple Gold Deposits

Source: Streetwise Reports   12/12/2017

As two Guyana projects begin commercial gold production, a new mineral resource estimate is in the works for a third project.

The Republic of Guyana is an English-speaking, democratic, South American country tucked between Venezuela and Suriname. In 2016, Guyana produced 690,000 ounces of gold as two mines began commercial production: the Aurora deposit (Guyana Goldfields Inc. [GUY:TSX]) and the Karouni deposit (Troy Resources Ltd. [TRY:TSX; TRY:ASX]).

As Guyana opens its borders to international investment, Guyana Goldstrike Inc. (GYA: TSX.V; GYNAF:OTC; 1ZT:FSE) is updating its historical mineral resource estimate for Mazoa Hill Zone at the Marudi Gold Project.

Guyana Goldstrike announced on Nov. 21 that it has hired Global Mineral Resource Services to establish a new mineral resource estimate to be included in an NI 43-101 technical report. The company noted that there have already been 54 holes (9,666 meters) of diamond drilling completed on Mazoa Hill by previous owners, resulting in a historical mineral resource estimate.

Guyana Goldstrike stated that its immediate objective is to update the historical work with modern geological techniques, and to try to expand the resource through development of the current zones and through the discovery of new zones.

The entire Marudi Gold Project has three known gold-bearing areas: the alluvial areas, the saprorlite overburden, and the underlying hard rock. Project-wide, there has been 42,000 metres of diamond drilling (141 holes) resulting in a delineated historical mineral resource estimate, the company reported.

A 2016 NI 43-101 Technical Report on the Marudi Property states that “The central zone, which includes Mazoa Hill, Peace Creek and Marudi Mountain, is characterized by fine gold associated with massive iron formation.”

Metallurgical studies “conducted between 1982 and 1995 indicate the mineralized rock is responsive to conventional cyanidation and pre-concentration by flotation or gravity methods and potentially amenable to heap leaching,” the report noted.

“The project has a mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager,” the company stated in the Nov. 21 news release.

Guyana Goldstrike warns that the historical estimates and mineral reserves are not accordance with National Instrument 43-101. However, “the Company does consider these historical estimates to be relevant as they may indicate the presence of gold mineralization and favourable geology.”

On Nov. 16, Guyana Goldstrike announced that it had commenced phase 1 exploration activities at Marudi.

It noted that the phase 1 objectives included:

  • Up to 12,000 metres of trenching
  • Extensive rock and soil sampling
  • Expansion of surface mineralization in known zone
  • Detailed geological mapping (lithologic, alteration, and structural)
  • Discovery of new mineralization and evaluation
  • Drill-target selection and definition

“The Company’s exploration strategy is to upgrade and expand the Project’s two known mineralized zones and to continue to explore for new areas of mineralization,” stated Locke Goldsmith, MSc., Chief Geologist and Exploration Manager for Guyana Goldstrike. “Marudi is greatly under-explored and possesses tremendous potential for additional discoveries.”

Guyana Goldstrike's Marudi Gold Project

The current exploration focus represents less than 5% of the total land package. New areas of interest include: Kimberley Ridge, Marudi North (west and east extensions), Marudi Spur Ridge, Toucan North, Pancake Creek, Mariwa and Success Creek, the company stated.

According to a November 9 press release, “The proposed exploration program on the Property will be completed in multiple phases, as working capital and financing are made available to the Company. The Company may also elect to alter subsequent phases of the program, based on the results and success of earlier phases.”

“Political risk discount” refers to share price depreciation caused by the possibility of a local or national government shutting down a mining project.

The political discount in Guyana is rapidly shrinking. Guyana is open to foreign investment and ideas. For example, members of the Guyana Police Force are being trained by Canadian police to improve investigative protocols and techniques.

The Fraser Institute’s 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin subgroup.

Guyana Goldstrike noted that a 2016 Independent Technical and Environmental Review of the Karouni project by Behre Dolbear Australia Pty Ltd. determined that “The Guiana Shield has over 100 million ounces of gold inventory and is world-recognized as a premier gold region.”

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) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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: Guyana Goldstrike. 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.

( Companies Mentioned: GYA: TSX.V; GYNAF:OTC; 1ZT:FSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/12/guyana-shield-is-host-to-multiple-gold-deposits.html

Cryptojunkies: Beware the Ides of December

Source: Michael J. Ballanger for Streetwise Reports   12/11/2017

As Bitcoin futures are set to begin trading next week, precious metals expert Michael Ballanger discusses movements in gold and cybercurrencies.

It was two years ago this week that I proclaimed that we were witnessing the final lows in the 2011–2015 bear market in the precious metals as gold traded down to $1,045 amidst total capitulation by the Large Specs and after massive short-covering by the Commercial traders. The weekly COT for that week showed an aggregate short position of a miniscule 2,911 contracts down from the earlier highs of over 300,000 contracts. About six weeks later, despite the earlier bottom in gold, the HUI (NYSE Arca Gold BUGS Index) got mauled mercilessly and closed at 99.19 on January 19th 2016. What followed was the best rally in a decade as the HUI peaked the following August at 286.05. The 2.88 times move in the HUI was paltry compared to the moves in the leveraged ETFs NUGT (Direxion Daily Gold Miners Bull 3X ETF) and JNUG (Direxion Daily Junior Gold Miners Bull 3X ETF). The NUGT moved from $13.92 in January to $143.06 in August for an advance of 927%. Based on what I saw in the latest COT report, the set-up is in progress for a repeat performance. And it will be a BIG one.

The recent Nov. 27 commentary was entitled “Bullion bank short-covering will become year-end profit-taking,” and that is EXACTLY what transpired this past week as the bullion bank traders (loosely termed “Commercials”) covered 22% of their shorts into the decline. To wit, since the COT week ends on a Tuesday, the Wednesday–Friday projectile emesis of unwanted longs was a perfect example of the longstanding opinion voiced by this author that in gold and silver, you BUY breakdowns and you SELL breakouts. Why do I violate the basic trading rules for technical analysis? It is because unlike most other markets, the precious metals markets are “rigged.” The bullion banks waited for the hedgies (Large Specs) to gather en masse on the long side of the trade before crushing price down through 50 and 200 DMAs, triggering a full-scale liquidation into the ever-greedy and welcoming arms of the bullion banks. It was a complete no-brainer as you can see below with the profit taken on a notional value of $7 billion allows for a very Merry Christmas indeed for the serial manipulators manning the desks of the most corrupted, compromised markets on earth. I figure they took $50 per ounce out last week on 5,665,100 “ounces” of fabricated, phony, counterfeit “gold” for a tidy year-end profit of $283,255,000, which has got to be the best (and easiest) job in all of finance. Backstopped by the CFTC and the central banks, this rigging exercise is surpassed in history by none except perhaps the masterful importing of bootleg liquor by Capone from the mighty Canadian Bronfman family back in the days of Prohibition. The only real difference is the utility of self-medication associated with booze versus the blatant robbery committed by the bullion banks.

Now, simply because the Commercials trimmed their shorts by 22%, it doesn’t mean that price is going to suddenly vault forward because back in late 2015, it took six weeks for them to cover 122,000 net shorts before arriving at that fateful $1,045 low, but the good news is that we are heading at least in the right direction. Accordingly, the proper action for me will be to add to positions—SLOWLY—with the JNUG and NUGT ETFs containing maximum leverage (and risk) in advance of the “turn.” For the retirement account, I will stick to physical silver (no leverage) and for the taxable accounts, I will move next week to accumulate an additional position to the tiny option purchases made the week of Nov. 27. Remember that we still have tax-loss selling to get through so the optimum acquisition period should be the last two weeks of December unless of course the big money decides to preempt the retail bargain hunters, which I view as a distinct possibility.

The two precious metals junior we own, Stakeholder Gold Corp. (SRC:TSX.V) and Canuc Resources Corp. (CDA:TSX.V), are holding their own in a particularly difficult environment with both issues trading well-off their respective 52-week highs but still ahead for the year-to-date performance numbers. Mind you, when I look at the action in the metals whether they be in the mania-driven zinc space or the high-expectation copper space or the must-own-it lithium space, the precious metals explorcos were challenged all year long by competition from the hot sectors to the extent that when Fido hears a commentator use the words “Bitcoin” or “blockchain,” he lets out a bloodcurdling howl and makes a beeline for the attic (which is particularly curious given that we don’t even HAVE one).

Both SRC and CDA have completed small fundings in the interest of keeping the projects cooking and Stakeholder has actually begun to drill Goldstorm in the northern Carlin trend of Nevada this past week. CDA awaits results from a comprehensive sampling program designed to delineate the breccias where in two zones, Carranza and Cerro Colorado, 11-meter outcrops yielding 260-gram Ag (∞ 8 oz) are present. I am hopeful that exploration success in the early new year will be rewarded by investors because in the world in which I reside, nothing is more devastating than a negative market response to a positive exploration result.

The bottom line for many of us that have been accumulating physical precious metals is this: We correctly foresaw this coordinated global currency debasement at an alarmingly accelerated pace after every crisis since that DotCom meltdown in 2000. We enjoyed vindication from 2001 until 2013 with rising precious metal prices until the central banks decided to forever cripple investor sentiment for gold and silver by way of orchestrated carpet bombings carried out via the derivative markets (Crimex) with increased and predictable frequency after the bank bailouts in 2009. Like dutiful and obedient canines, we came back time after time to the “master” (gold ownership) only to be rebuked with physical, emotional and financial sadism. Always believing that 5,000 years of economic, political and financial history would once again reassert itself vaulting gold and silver to the forefront of investor urgency, we have been undermined with malicious fervor at every turn by the “moneychangers in the temple” that refuse to accept the fact that physical ownership as opposed to digital ownership is the only true “safe haven.”

As a result, here we are in the final month of 2017 with bubbles arising everywhere, be they cryptocurrencies or real estate or lithium deals where investors have indeed been trained in a manner not unlike my beloved Fido that flees from the room the minute my voice rises point-zero-three octaves to AVOID gold because it has been rendered “obsolete.” “You WILL avoid gold and you WILL love paper assets or suffer the consequences!” roar the price managers in Washington and London and Brussels and indeed that is what drove the younger and infinitely more pragmatic breed of investors to avoid fiat currencies in favor of the digitally generated stores of value.

This need for fiat sanctuary, insulated (or so they assume) from the devious tentacles of bankers and governments, will be tempered by the introduction of Bitcoin futures by the CME Group on Dec. 18. Just as precious metals futures are the tail by which governments and bankers wag the dog through unimpeded interventions, it is, in my opinion, the very tail by which the moneychangers are going to “reel in” cryptocurrencies. So, between now and the end of the month, the Commercials (bullion bank traders) will reduce their aggregate short position as gold’s major competition comes under the smothering blanket of intervention and manipulation.

As I wrote about in the commentary entitled “The True Meaning of Bitcoin’s Success” this is all about the arrival of the hyperinflationary melt-up characterized by various asset classes going into systemic price spikes. Stated another way, it is about the purchasing power of fiat currencies experiencing sudden and dramatic crashes. This recent narrative of a digital currency replacing gold as a store of value is as non-sensical as the idea that “dollars” whether from the U.S., Canada, or Zimbabwe will maintain their purchasing power over time. The bankers reeled in gold in 2013; they will reel in the Bitcoin as well. What both have in common is the medium of control.

Beware the Ides of December.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report interviews 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 interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Stakeholder Gold Corporation and Canuc Resources Corp. 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 referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard 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 Stakeholder Gold and Canuc Resources, companies mentioned in this article.

All charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: CDA:TSX.V,
SRC:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/11/cryptojunkies-beware-the-ides-of-december.html