Defiance Silver Ready for Higher Prices

Source: Bob Moriarty for Streetwise Reports   09/20/2020

Bob Moriarty profiles the silver-copper explorer and discusses the project he describes as a “hidden gem.”

I wrote about Defiance Silver Corp. (DEF:TSX.V; DNCVF:OTCBB) (DEF-V, DNCVF-OTCBB) back in July. Their shares were $0.35 back then and have almost doubled since. Investors it seems to me are way too bullish. While I would like to see a deeper correction in gold and silver, Defiance is prepared for higher prices. I think they are as perfectly positioned as any company in the space. Because of leverage.

Many years ago Rob McEwen ran Goldcorp. When he went to gold shows, he always pointed out that Goldcorp had the lowest cost of production of gold in the industry. I think he used the figure of $85 an ounce when gold was in the $260–$300 range. So he was saying Goldcorp could produce at $85 an ounce so no matter how low gold went, they would be the last company standing.

At the time some of the top investors in the financial industry were predicting much lower prices for gold. Investors should remember that at market lows everyone is predicting cheaper prices and at market tops are suggesting much higher prices. Robert Prechter, famous for his best selling book on the Elliott Wave even called for $200 gold.

I was chatting with McEwen sometime around 2002 or so at one of the shows. I pointed out that he was sending a mixed message. On the one hand he was predicting much higher gold but on the other hand he was bragging about being the last mining company in the industry if gold actually did drop to $200 an ounce.

It seemed obvious to me that if there was only one profitable gold mining company that the industry would have died and been buried and I said so. Rob looked at me and gave me one of those deer in the headlight looks. Truly that hadn’t occurred to him.

“Rob, if you believe gold is going much higher, you don’t want to only own a company that can produce at a profit at $85 an ounce, you want to be buying up cheap projects that require $400 or $500 an ounce to make money. That way you get leverage and when gold goes up as we know it will, those go from dead in the water to being wildly profitable.” I said.

If you want to make a lot of money investing and you believe as I do that the Fed has destroyed the dollar and hyperinflation is around the corner, you want to be in the highest leverage projects you can find. Because they might not work at $1250 gold and $2.50 copper but at $2500 gold and $4 copper you would own, well, let’s call it a gold mine.

Defiance Silver just completed a $10 million private placement. They are well cashed up to move both of their key projects forward. In May Defiance got the vendor to agree to move out the final property payment on the San Acacio silver project to September of 2023. DEF will be paying a total of about $4.7 million US to own 100% of San Acacio subject to a 2.5% NSR.

By and large investors are or should be familiar with the San Acacio silver deposit. It has been the focus of Defiance for years. The company begins at 5,000-meter drill program at San Acacio in the middle of October

But the real hidden secret is in the Tepal copper/gold deposit located in Michoacán state. It’s about 170 km south of Guadalajara. Don’t worry much about the location. I don’t know where those are either other than they are in Mexico. Defiance owns 100% of the Tepal property. They picked it up in 2009. They released an updated 43-101 resource in 2017 showing a gold resource of just under 2 million ounces and a copper resource of about 935 million pounds. The copper alone gives five pounds of copper at $3 a pound per share of Defiance.

A PEA also done in 2017 called for an NPV after tax of $169 million US based on $1250 US gold and $2.50 US for copper. But every $250 increase in the price of gold adds about $100 million US to the NPV. That brings the NPV a lot closer to $500 million US.

The biggest issue at Tepal is grade. The 43-101 shows an M&I gold grade of 0.3 g/t and 0.2% copper. Those are not high grades. But as prices for the metals go up, the economic grade goes down. Defiance has been working on Tepal for over a decade but it’s been on the back burner. With higher prices for the metals in sight, Defiance will pour more effort and resources into moving Tepal forward. The project is in a perfect position to offer investors nice leverage to the price of both gold and copper.

Defiance is an advertiser. I own shares, I participated in the last PP and that makes me biased. Do your own due diligence, please.

Defiance Silver Corp
DEF-V $0.61 (Sep 18, 2020)
DNCVF-OTCBB 185 million shares
Defiance Silver website

Bob Moriarty
President: 321gold
Archives
321gold

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Defiance Silver. Defiance Silver is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Source: Bob Moriarty for Streetwise Reports   09/20/2020

Bob Moriarty profiles the silver-copper explorer and discusses the project he describes as a "hidden gem."

I wrote about Defiance Silver Corp. (DEF:TSX.V; DNCVF:OTCBB) (DEF-V, DNCVF-OTCBB) back in July. Their shares were $0.35 back then and have almost doubled since. Investors it seems to me are way too bullish. While I would like to see a deeper correction in gold and silver, Defiance is prepared for higher prices. I think they are as perfectly positioned as any company in the space. Because of leverage.

Many years ago Rob McEwen ran Goldcorp. When he went to gold shows, he always pointed out that Goldcorp had the lowest cost of production of gold in the industry. I think he used the figure of $85 an ounce when gold was in the $260–$300 range. So he was saying Goldcorp could produce at $85 an ounce so no matter how low gold went, they would be the last company standing.

At the time some of the top investors in the financial industry were predicting much lower prices for gold. Investors should remember that at market lows everyone is predicting cheaper prices and at market tops are suggesting much higher prices. Robert Prechter, famous for his best selling book on the Elliott Wave even called for $200 gold.

I was chatting with McEwen sometime around 2002 or so at one of the shows. I pointed out that he was sending a mixed message. On the one hand he was predicting much higher gold but on the other hand he was bragging about being the last mining company in the industry if gold actually did drop to $200 an ounce.

It seemed obvious to me that if there was only one profitable gold mining company that the industry would have died and been buried and I said so. Rob looked at me and gave me one of those deer in the headlight looks. Truly that hadn't occurred to him.

"Rob, if you believe gold is going much higher, you don't want to only own a company that can produce at a profit at $85 an ounce, you want to be buying up cheap projects that require $400 or $500 an ounce to make money. That way you get leverage and when gold goes up as we know it will, those go from dead in the water to being wildly profitable." I said.

If you want to make a lot of money investing and you believe as I do that the Fed has destroyed the dollar and hyperinflation is around the corner, you want to be in the highest leverage projects you can find. Because they might not work at $1250 gold and $2.50 copper but at $2500 gold and $4 copper you would own, well, let's call it a gold mine.

Defiance Silver just completed a $10 million private placement. They are well cashed up to move both of their key projects forward. In May Defiance got the vendor to agree to move out the final property payment on the San Acacio silver project to September of 2023. DEF will be paying a total of about $4.7 million US to own 100% of San Acacio subject to a 2.5% NSR.

By and large investors are or should be familiar with the San Acacio silver deposit. It has been the focus of Defiance for years. The company begins at 5,000-meter drill program at San Acacio in the middle of October

But the real hidden secret is in the Tepal copper/gold deposit located in Michoacán state. It's about 170 km south of Guadalajara. Don't worry much about the location. I don't know where those are either other than they are in Mexico. Defiance owns 100% of the Tepal property. They picked it up in 2009. They released an updated 43-101 resource in 2017 showing a gold resource of just under 2 million ounces and a copper resource of about 935 million pounds. The copper alone gives five pounds of copper at $3 a pound per share of Defiance.

A PEA also done in 2017 called for an NPV after tax of $169 million US based on $1250 US gold and $2.50 US for copper. But every $250 increase in the price of gold adds about $100 million US to the NPV. That brings the NPV a lot closer to $500 million US.

The biggest issue at Tepal is grade. The 43-101 shows an M&I gold grade of 0.3 g/t and 0.2% copper. Those are not high grades. But as prices for the metals go up, the economic grade goes down. Defiance has been working on Tepal for over a decade but it's been on the back burner. With higher prices for the metals in sight, Defiance will pour more effort and resources into moving Tepal forward. The project is in a perfect position to offer investors nice leverage to the price of both gold and copper.

Defiance is an advertiser. I own shares, I participated in the last PP and that makes me biased. Do your own due diligence, please.

Defiance Silver Corp
DEF-V $0.61 (Sep 18, 2020)
DNCVF-OTCBB 185 million shares
Defiance Silver website

Bob Moriarty
President: 321gold
Archives
321gold

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Defiance Silver. Defiance Silver is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

GSP Resources Begins Drill Program

Source: Bob Moriarty for Streetwise Reports   09/14/2020

Bob Moriarty of 321gold explains why he is confident the company will hit copper with its new drill program.GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB) put ou…

Source: Bob Moriarty for Streetwise Reports   09/14/2020

Bob Moriarty of 321gold explains why he is confident the company will hit copper with its new drill program.

GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB) put out a press release on the 8th of September that was at the very least poorly worded and confusing. They announced the start of a drill program at their Alwin copper mine adjacent to Teck's Highland Valley Mine. When I read the press release I got into contact with the company to clarify what I thought they were doing.

In the press release GSPR stated, "The Phase 1 program will consist of a minimum of 1,000 meters of diamond drilling. . . " And I get about as excited at a press release talking about a 1000 meter drill program as do my readers. That is to say not at all. But management did clarify the release. The 1000 meters is just the start of Phase 1 and there will be a Phase 2 based on the results of the first program. The entire drill program is financed with money in the bank and they have $500,000 in cash beyond that. There will be more drilling.

With copper breaking out above the $3 level after a 50% advance in six months from the March 19th low at $2.08 investors should be looking for low priced lottery tickets on copper. GSPR has a tiny 16 million shares and at today's price has a total market cap of about $5 million USD.

GSPR is going to drill a lot more than 1000 meters in this year. They will hit copper. The copper/silver/gold structure mined at the Highland Valley Mine runs right into the Alwin property. They are a natural buyout candidate for Teck.

Copper has had a great run since March, it is probably due a correction but GSP Resources is a cheap lottery ticket on both copper and the stupidity of the Federal Reserve in destroying the U.S. dollar.

GSP Resources is an advertiser. I have bought shares in the latest PP and naturally that makes me biased. Please take responsibility for your own due diligence.

GSP Resource
GSPR-V $0.46 Sept 11, 2020
GSRCF OTCBB 16.1 million shares
GSP Resources website

Bob Moriarty
President: 321gold
Archives
321gold

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: GSP Resource Corp. GSP Resource Corp. is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: GSPR:TSX.V; GSRCF:OTCBB, )

A-Mark Precious Metals Shares Rise on Record Yearly Earnings, Issues Special Dividend

Source: Streetwise Reports   09/11/2020

A-Mark Precious Metals shares traded 22% higher after the firm announced FY/20 financial results that included a 96% YoY increase in Q4/20 revenue and a special dividend of $1….

Source: Streetwise Reports   09/11/2020

A-Mark Precious Metals shares traded 22% higher after the firm announced FY/20 financial results that included a 96% YoY increase in Q4/20 revenue and a special dividend of $1.50 per share.

Full-service precious metals trading company A-Mark Precious Metals Inc. (AMRK:NASDAQ) yesterday announced financial results for the fiscal fourth quarter and full year ended June 30, 2020.

The company reported that in Q4/20 total revenues increased 96% to $1.67 billion, compared to $850.2 million in Q4/19. A-Mark Precious Metals indicated that the year-over-year increase was primarily attributed to an increase in the total amount of gold and silver ounces sold and higher gold and silver market selling prices.

The firm stated that gross profit increased 335% to $28.0 million in Q4/20, compared to $6.5 million in Q4/19 and noted that the increase was from higher gross profits from its Wholesale Trading & Ancillary Services and Direct Sales segments.

For Q4/20, the company posted net income of $17.8 million or $2.49 per diluted share, which it commented was a significant improvement from the net loss of $823,000 or $0.12 loss per diluted share that it reported in Q4/19.

A-Mark reported that gold ounces sold in Q4/20 increased 91% to 669 Koz, up from 350 Koz in Q4/19, and 508 Koz in Q3/20. In addition, silver ounces sold in Q4/20 increased 136% to 29.6 Moz, up from 12.5 Moz in Q4/19, and 25.7 Moz in Q3/20.

The company that reported that FY/20 total revenues increased by 14% to $5.46 billion, compared to $4.78 billion for FY/19. The firm stated that the increase was largely due to an increase in volume of gold and silver ounces sold and higher price for gold and silver.

A-Mark indicated that gross profit for FY/20 increased 110% to $67.0 million, up from $32.0 million for FY/19 and that the increase was mostly due to higher gross profits achieved by its Wholesale Trading & Ancillary Services and Direct Sales segments.

The firm posted net income of $30.5 million or $4.31 per diluted share for FY/20, which it stated was a significant improvement versus net income of $2.2 million or $0.31 per diluted share for FY/19.

The company's CEO Greg Roberts commented, "The fourth quarter was a period characterized by sustained and heightened demand and related product volumes. This consistency helped to drive sequential improvements in our key financial metrics, including a 25% increase in gross profit to $28.0 million as well as a 58% increase in net income to $17.8 million or $2.49 per diluted share compared with our third quarter. The record financial results we realized for both Q4 and fiscal 2020 resulted in Return on Equity of 17.6% for the quarter and 30.2% for the fiscal year and demonstrate the attractiveness of our business model, which is designed to generate continuing revenue streams in normal market conditions and outsized profitability during volatile market periods."

"The strategic investments we've made over the last several years to expand capacity and operational capabilities have ideally positioned A-Mark to continue capitalizing on the current market conditions while increasing our market share and driving growth over the long term...We believe our strong competitive position, robust platform, expanding customer base and diversified business model will help drive growth and profitability in the years ahead," Roberts added.

The company mentioned that its Board of Directors has approved a special $1.50 per common share dividend that will be paid on or around September 25, 2020, to shareholders of record as of September 21, 2020.

A-Mark Precious Metals is a full-service precious metals trading company headquartered in El Segundo, Calif. The firm conducts operation as an active gold, silver, platinum and palladium bullion and related products wholesaler. The company noted that it has "its global customer base includes sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, and e-commerce and other retail customers." The firm's business is divided into three main segments: Direct Sales, Secured Lending and Wholesale Trading & Ancillary Services.

The firm noted that it is a U.S. Mint-authorized purchaser of gold, silver and platinum coins and therefore it is licensed to purchase bullion products directly from the U.S. Mint for sale to customers. A-Mark advised that it also has similar agreements with other sovereign mints in Australia, Austria, Canada, China, Mexico, South Africa and the U.K.

A-Mark Precious Metals started the day with a market capitalization of around $183.2 million with approximately 7.031 million shares outstanding. AMRK shares opened 15% higher today at $30.01 (+$3.95, +15.16%) over yesterday's $26.06 closing price and reached a new 52-week high price this morning of $32.56. The stock has traded today between $29.50 and $32.56 per share and is currently trading at $32.30 (+$6.25, +23.96%).

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Disclosure:
1) Stephen Hytha 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: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: AMRK:NASDAQ, )

Skyharbour Resources: Athabasca Uranium Story Ready to Run?

Source: Peter Epstein for Streetwise Reports   09/10/2020

Jordan Trimble, CEO of Skyharbour Resources, sits down with Peter Epstein of Epstein Research to discuss the uranium market and recent developments at his company.

The gold price is 30% higher in the past year, silver is +130% in the last five months. Some are wondering what the next bull market move in metals and mining will be. I think there’s a good chance it will be uranium. An increase in the spot price from today’s $31/lb to $40/lb would make a world of difference for sector sentiment. Earlier this year, the price hit a 4.5-year high of $34.2/lb.

All eyes are on Cameco and Kazatomprom as they buy uranium in the spot market to help meet their customer requirements. The more they buy, and the longer they’re active in the market, the more likely we will see a spike in the price. Uranium prices can move very fast. In a six-week stretch from mid-March to late April the price soared 42% from $24.00 to $34.05/lb.

Yet, that was merely a bounce off of oversold levels. A 30% increase from today’s $31/lb would get the price to $40/lb, still on the low side over the past 15 years. Now, instead of me reporting facts and figures from the World Nuclear Association website, I turn to Jordan Trimble, CEO of Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB), to get his up-to-the-minute views. He expertly reads between the lines so that we don’t have to….

Peter Epstein: Uranium fundamentals were great two years ago…. they were extraordinary a year ago…. and even more compelling now. Yet, the uranium spot price sits at US$31/lb. How soon before we see prices above US$40?

Jordan Trimble: The uranium price is moving in the right direction; the spot price has increased from the mid $20s to the low $30s/lb U3O8. Summer is seasonally slow, but I believe we’re now witnessing the early days of a new bull market. First, we saw a major supply side response play out due to historically low prices. Then, the pandemic caused further significant supply curtailments.

Primary producers shut down or cut back production including Cameco with Cigar Lake shut for five months (and McArthur River is still on care and maintenance). Several producers in Africa have slowed or closed.

Kazatomprom in Kazakhstan, which accounts for up to 40% of global production, said output would be down 16% in 2020. In order to meet contractual requirements with utilities, producers need to acquire millions of pounds of uranium in the spot market this year.

A major supply deficit is forming to the tune of 50–60 million pounds of U3O8 in a market of 180 million pounds. This could be exacerbated if Kazakhstan is unable to ramp ISR production up as quickly as it would like. Shifting to demand, the story has been improving; demand exceeds pre-Fukushima levels and has outstripped primary supply over the past few years. Finite inventories and other secondary supplies are being depleted to make up the difference.

Furthermore, well over 50% of all utility contracts require renewal by 2027. Utilities typically renew contracts 18–24 months before they expire. Several utilities have recently come to market with RFPs, but producers are unwilling to lock in long-term contracts at current levels.

Nuclear reactor demand for uranium is sticky and has been largely insulated from the pandemic versus other sources of power generation. It’s still the only source of reliable, baseload, emissions-free electricity.

Lastly, demand is expected to increase on the back of new reactor construction. There are 56 reactors under construction, and that doesn’t even consider the advent of SMRs (Small Modular Reactors).

Since 2003 we have experienced eight periods in which the spot price spiked over a short period of time. The average price increase was +58% over an average of 6.6 months. Worth noting is that spot and term prices are still below the average all-in cost of production and well below the incentive price needed to bring meaningful new production online.

Peter Epstein: It seems that the topic of restarts of Japanese reactors has faded and all eyes are on Cameco and Kazakhstan’s Kazatomprom. Are these two companies the main story?

Jordan Trimble: Japan’s role in nuclear energy should not be dismissed; there’s still the potential for a positive catalyst from additional Japanese restarts. However, this narrative has rightfully diminished in importance with only nine of Japan’s reactors back online. Additional restarts pale in comparison to new demand coming from China, India and other parts of the developing world.

Cameco and Kazatomprom are the two largest uranium producers in the world. With meaningful production at both further reduced from the second half of March through August, both companies have been drawing down inventory. Both are purchasing material on the spot market to meet contractual supply requirements.

While Cameco plans a restart at Cigar Lake in September, the same cannot be said for Kazatomprom. The virus has hit Kazakhstan hard, lockdowns have impeded their wellhead drilling and operations. It could take a while to ramp production back up to pre-pandemic levels.

Peter Epstein: Skyharbour’s crown jewel is its 100%-owned, 35,705-hectare, Moore project. What’s the status of Moore?

Jordan Trimble: We announced plans for a fully funded and permitted summer/fall drill program on our high-grade Moore Uranium project (see news release dated July 29th). Targets include both unconformity and basement-hosted mineralization along the Maverick structural corridor.

The project is 15 km east of Denison’s Wheeler River project and 39 km south of Cameco’s MacArthur River mine. Denison is our largest shareholder and an important partner.

We plan to expand high-grade mineralization recently discovered at the Maverick East Zone and to test the Viper target area along strike about 1.5 km to the northeast with a focus on basement-hosted mineralization.

Only 2.5 km of the total 4.7-km-long Maverick structural corridor has been systematically drill-tested, leaving robust discovery potential along strike both at the unconformity and at depth in the underlying basement rocks.

Peter Epstein: In recent interviews you’ve said your team believes Skyharbour is close to finding very high-grade feeder zones (like 10%+ U3O8 over 10+ meters). What makes you think you’re close?

Jordan Trimble: We believe we’re on the verge of discovering larger zones of higher-grade uranium in the basement rocks of the Moore project. We have already intersected grades up to 21% U3O8 in sandstone right above the unconformity. We know this mineralization comes from a source.

That source is likely a feeder zone in the underlying basement rocks. A great deal of time has been spent refining drill targets. We have a new geological model that will increase the chances that we find what we’re looking for.

Peter Epstein: Azincourt Energy will soon finish earning a 70% interest in the East Preston project. Please give us the latest snapshot.

Jordan Trimble: As part of our prospect generator business, Azincourt completed its winter drill program and reported results on June 8th. They completed 2,431 meters in nine holes with promising basement lithologies and graphitic structures intersected along with associated, anomalous uranium, REE mineralization and favorable alteration.

On July 24th, Azincourt announced its upcoming geophysical target generation program. So, additional news is forthcoming. To complete the 70% earn-in, they issued 2.5 million shares to Skyharbour and has to make a $200,000 cash payment.

Peter Epstein: Vertically integrated French uranium miner Orano (formerly Areva) is earning a 70% position in your Preston project. Where does Orano stand in this regard?

Jordan Trimble: Orano recently completed an exploration program on the Preston project consisting of DC resistivity ground geophysics in order to prioritize areas to be drill-tested. Previous drilling intersected numerous and extensive, well developed and commonly graphitic ductile shear zones that were clearly reactivated over time.

Of note is that Preston Lake has seen little drilling to date. Our partner Orano is France’s largest uranium mining and nuclear fuel cycle company. They have been exploring and mining uranium in Athabasca for years. In order to complete the 70% earn-in, they need to spend $8 million in exploration and cash payments.

Peter Epstein: Skyharbour has been trying to farm out three projects. Can you comment on Falcon Point, Mann Lake and Yurchison?

Jordan Trimble: As an explorer that also utilizes the project generator model, Skyharbour has teamed up with industry leading companies like Orano to increase the chances and lower the cost of new discoveries. This allows us to focus on our Moore project, while ensuring steady news flow/catalysts from secondary projects.

It brings in additional cash without us having to dilute shareholders as much. It allows us to leverage peer technical and geological teams. We’re actively looking for partners at three 100%-owned projects; Falcon Point, Mann Lake and Yurchison. All three have promising geology and are drill ready.

Peter Epstein: A common refrain from uranium investors is that yes, Athabasca has monster grades, but it takes 10+ years to develop a resource into a mine. What do you say to that?

Jordan Trimble: Look, we’re in the business of finding deposits and ultimately selling them to larger companies to develop. So, our value proposition and wealth creation opportunity is at the front end of this. New discoveries and resource delineation don’t take 10+ years.

However, it’s worth noting that there are mining methods, including ISR & SABRE (borehole mining) being proposed for high-grade Athabasca deposits. These methods could significantly reduce time to production and permitting hurdles. Companies with deposits amenable to these techniques stand to benefit immensely.

Peter Epstein: Thank you, Jordan, very insightful as always. I look forward to updates on Skyharbour’s projects and expect to see the uranium price start to climb again soon.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this interview is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Skyharbour Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Skyharbour Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this interview was posted, Peter Epstein owned no shares in Skyharbour Resources, and Skyharbour was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: Skyharbour Resources. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Azincourt Energy. Please click here for more information.
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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources and Azincourt Energy, companies mentioned in this article.

Source: Peter Epstein for Streetwise Reports   09/10/2020

Jordan Trimble, CEO of Skyharbour Resources, sits down with Peter Epstein of Epstein Research to discuss the uranium market and recent developments at his company.

The gold price is 30% higher in the past year, silver is +130% in the last five months. Some are wondering what the next bull market move in metals and mining will be. I think there's a good chance it will be uranium. An increase in the spot price from today's $31/lb to $40/lb would make a world of difference for sector sentiment. Earlier this year, the price hit a 4.5-year high of $34.2/lb.

All eyes are on Cameco and Kazatomprom as they buy uranium in the spot market to help meet their customer requirements. The more they buy, and the longer they're active in the market, the more likely we will see a spike in the price. Uranium prices can move very fast. In a six-week stretch from mid-March to late April the price soared 42% from $24.00 to $34.05/lb.

Yet, that was merely a bounce off of oversold levels. A 30% increase from today's $31/lb would get the price to $40/lb, still on the low side over the past 15 years. Now, instead of me reporting facts and figures from the World Nuclear Association website, I turn to Jordan Trimble, CEO of Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB), to get his up-to-the-minute views. He expertly reads between the lines so that we don't have to….

Peter Epstein: Uranium fundamentals were great two years ago…. they were extraordinary a year ago…. and even more compelling now. Yet, the uranium spot price sits at US$31/lb. How soon before we see prices above US$40?

Jordan Trimble: The uranium price is moving in the right direction; the spot price has increased from the mid $20s to the low $30s/lb U3O8. Summer is seasonally slow, but I believe we're now witnessing the early days of a new bull market. First, we saw a major supply side response play out due to historically low prices. Then, the pandemic caused further significant supply curtailments.

Primary producers shut down or cut back production including Cameco with Cigar Lake shut for five months (and McArthur River is still on care and maintenance). Several producers in Africa have slowed or closed.

Kazatomprom in Kazakhstan, which accounts for up to 40% of global production, said output would be down 16% in 2020. In order to meet contractual requirements with utilities, producers need to acquire millions of pounds of uranium in the spot market this year.

A major supply deficit is forming to the tune of 50–60 million pounds of U3O8 in a market of 180 million pounds. This could be exacerbated if Kazakhstan is unable to ramp ISR production up as quickly as it would like. Shifting to demand, the story has been improving; demand exceeds pre-Fukushima levels and has outstripped primary supply over the past few years. Finite inventories and other secondary supplies are being depleted to make up the difference.

Furthermore, well over 50% of all utility contracts require renewal by 2027. Utilities typically renew contracts 18–24 months before they expire. Several utilities have recently come to market with RFPs, but producers are unwilling to lock in long-term contracts at current levels.

Nuclear reactor demand for uranium is sticky and has been largely insulated from the pandemic versus other sources of power generation. It's still the only source of reliable, baseload, emissions-free electricity.

Lastly, demand is expected to increase on the back of new reactor construction. There are 56 reactors under construction, and that doesn't even consider the advent of SMRs (Small Modular Reactors).

Since 2003 we have experienced eight periods in which the spot price spiked over a short period of time. The average price increase was +58% over an average of 6.6 months. Worth noting is that spot and term prices are still below the average all-in cost of production and well below the incentive price needed to bring meaningful new production online.

Peter Epstein: It seems that the topic of restarts of Japanese reactors has faded and all eyes are on Cameco and Kazakhstan's Kazatomprom. Are these two companies the main story?

Jordan Trimble: Japan's role in nuclear energy should not be dismissed; there's still the potential for a positive catalyst from additional Japanese restarts. However, this narrative has rightfully diminished in importance with only nine of Japan's reactors back online. Additional restarts pale in comparison to new demand coming from China, India and other parts of the developing world.

Cameco and Kazatomprom are the two largest uranium producers in the world. With meaningful production at both further reduced from the second half of March through August, both companies have been drawing down inventory. Both are purchasing material on the spot market to meet contractual supply requirements.

While Cameco plans a restart at Cigar Lake in September, the same cannot be said for Kazatomprom. The virus has hit Kazakhstan hard, lockdowns have impeded their wellhead drilling and operations. It could take a while to ramp production back up to pre-pandemic levels.

Peter Epstein: Skyharbour's crown jewel is its 100%-owned, 35,705-hectare, Moore project. What's the status of Moore?

Jordan Trimble: We announced plans for a fully funded and permitted summer/fall drill program on our high-grade Moore Uranium project (see news release dated July 29th). Targets include both unconformity and basement-hosted mineralization along the Maverick structural corridor.

The project is 15 km east of Denison's Wheeler River project and 39 km south of Cameco's MacArthur River mine. Denison is our largest shareholder and an important partner.

We plan to expand high-grade mineralization recently discovered at the Maverick East Zone and to test the Viper target area along strike about 1.5 km to the northeast with a focus on basement-hosted mineralization.

Only 2.5 km of the total 4.7-km-long Maverick structural corridor has been systematically drill-tested, leaving robust discovery potential along strike both at the unconformity and at depth in the underlying basement rocks.

Peter Epstein: In recent interviews you've said your team believes Skyharbour is close to finding very high-grade feeder zones (like 10%+ U3O8 over 10+ meters). What makes you think you're close?

Jordan Trimble: We believe we're on the verge of discovering larger zones of higher-grade uranium in the basement rocks of the Moore project. We have already intersected grades up to 21% U3O8 in sandstone right above the unconformity. We know this mineralization comes from a source.

That source is likely a feeder zone in the underlying basement rocks. A great deal of time has been spent refining drill targets. We have a new geological model that will increase the chances that we find what we're looking for.

Peter Epstein: Azincourt Energy will soon finish earning a 70% interest in the East Preston project. Please give us the latest snapshot.

Jordan Trimble: As part of our prospect generator business, Azincourt completed its winter drill program and reported results on June 8th. They completed 2,431 meters in nine holes with promising basement lithologies and graphitic structures intersected along with associated, anomalous uranium, REE mineralization and favorable alteration.

On July 24th, Azincourt announced its upcoming geophysical target generation program. So, additional news is forthcoming. To complete the 70% earn-in, they issued 2.5 million shares to Skyharbour and has to make a $200,000 cash payment.

Peter Epstein: Vertically integrated French uranium miner Orano (formerly Areva) is earning a 70% position in your Preston project. Where does Orano stand in this regard?

Jordan Trimble: Orano recently completed an exploration program on the Preston project consisting of DC resistivity ground geophysics in order to prioritize areas to be drill-tested. Previous drilling intersected numerous and extensive, well developed and commonly graphitic ductile shear zones that were clearly reactivated over time.

Of note is that Preston Lake has seen little drilling to date. Our partner Orano is France's largest uranium mining and nuclear fuel cycle company. They have been exploring and mining uranium in Athabasca for years. In order to complete the 70% earn-in, they need to spend $8 million in exploration and cash payments.

Peter Epstein: Skyharbour has been trying to farm out three projects. Can you comment on Falcon Point, Mann Lake and Yurchison?

Jordan Trimble: As an explorer that also utilizes the project generator model, Skyharbour has teamed up with industry leading companies like Orano to increase the chances and lower the cost of new discoveries. This allows us to focus on our Moore project, while ensuring steady news flow/catalysts from secondary projects.

It brings in additional cash without us having to dilute shareholders as much. It allows us to leverage peer technical and geological teams. We're actively looking for partners at three 100%-owned projects; Falcon Point, Mann Lake and Yurchison. All three have promising geology and are drill ready.

Peter Epstein: A common refrain from uranium investors is that yes, Athabasca has monster grades, but it takes 10+ years to develop a resource into a mine. What do you say to that?

Jordan Trimble: Look, we're in the business of finding deposits and ultimately selling them to larger companies to develop. So, our value proposition and wealth creation opportunity is at the front end of this. New discoveries and resource delineation don't take 10+ years.

However, it's worth noting that there are mining methods, including ISR & SABRE (borehole mining) being proposed for high-grade Athabasca deposits. These methods could significantly reduce time to production and permitting hurdles. Companies with deposits amenable to these techniques stand to benefit immensely.

Peter Epstein: Thank you, Jordan, very insightful as always. I look forward to updates on Skyharbour's projects and expect to see the uranium price start to climb again soon.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this interview is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Skyharbour Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Skyharbour Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this interview was posted, Peter Epstein owned no shares in Skyharbour Resources, and Skyharbour was an advertiser on [ER].

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: Skyharbour Resources. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Azincourt Energy. Please click here for more information.
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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources and Azincourt Energy, companies mentioned in this article.

Sassy Resources Expands More Creek Corridor, Discovers New Surface High-Grade Gold-Silver Zone

Source: Peter Epstein for Streetwise Reports   09/09/2020

Peter Epstein of Epstein Research discusses an explorer that he believes offers high-grade precious/base metal discovery potential.

Sassy Resources Corp. (SASY:CSE) is a largely unknown spinout from Crystal Lake Mining (now called Enduro Metals). Sassy controls 100% of a promising gold-silver play in the Eskay Camp, at the heart of B.C.’s Golden Triangle (GT). The Foremore project covers 14,585 contiguous hectares (ha) containing high-grade precious metal targets plus showings of zinc, lead and copper.

Sassy has an Enterprise Value (EV) {market cap + (0) debt – (~$2 million) cash} of ~$20 million. The capital structure is tight with only 29.1 million shares outstanding. {Please see my prior article here for further details about Sassy’s free float}. Sassy is the 16th largest pre-production junior in the GT.

Sassy’s high-grade Foremore compares in size to well-known GT projects

Compare Sassy’s 14,585 ha footprint to other high-profile GT projects like Skeena Resources’ Eskay Creek @ 6,151 ha, and Ascot’s Premier (8,133 ha) + Red Mountain (17,125 ha). Tudor Gold owns 60% of the (17,913 ha) Treaty Creek project, and Benchmark Minerals has the (14,000 ha) Lawyers project.

Readers, consider that early next year Skeena (on its 6,151 ha Eskay Creek alone) expects to report an upsized resource of >5 million ounces of gold equivalent, at >5 g/t gold equivalent. Sassy’s footprint is both sizable and centrally located.

Exploration on and around the Foremore property dates back >30 years. It includes prospecting, mapping, sampling, airborne and ground geophysical surveys, and 71 drill holes (+11 new holes last month, and a 2,000 meter program starting soon). Nearly $15 million has been invested, $20 million+ in today’s dollars.

Nearby projects include Newmont’s/Teck Resources’ Galore Creek to the northwest, Teck’s/Copper Fox’s Schaft Creek to the north, Enduro Metals’ Newmont Lake to the southwest, and Skeena and Eskay Mining projects to the south.

Australian major Newcrest Mining is in the GT through its 70% ownership of the Red Chris Mine. Billion dollar companies Pretium Resources, Seabridge Gold and Hochschild Mining are active there as well.

Newmont and Teck are building the Galore Creek road passing directly through Sassy’s property, allowing for easier, less-expensive, year-round access to the Foremore site.

Teck is also a partner in nearby Schaft Creek. This bodes well for further investments by both companies into regional infrastructure and mining services, for the benefit of all parties, including Sassy Resources.

Best historical intercepts from a total of 71 holes:

Phase I was recently completed, followed by borehole electromagnetic surveys at each drilling location (BRT and Toe Showings) within each zone along the 5-km-long historic More Creek Corridor. Drilling intersected additional mineralization at shallow depths, extending the base/precious metals-rich BRT zone (gold, silver and base metals) by 115 meters along strike. A new style of mineralization was also discovered.

The company’s technical team is pleased to have confirmed the conductivity of BRT-style mineralization through the use of Borehole EM (BHEM) surveys. The More Creek Corridor mineralization was previously thought to be non-conductive, but early success with BHEM at BRT bodes well for its use in ground and airborne EM surveys for future exploration initiatives across the entire project.

Preliminary assays were received for the first three holes of Phase I. The reason the results are not out is that a number of extra steps are being taken to confirm the accuracy of the preliminary assays before announcing the final assays on the three holes.

Broad high-grade gold/silver Westmore target rises to top of must-drill list

While exciting, Phase I was just the first of two high-grade project areas Sassy is laser-focused on. The bigger prize could very well be 3 km southwest—the Westmore “WM” target—to be drilled for the first time (ever), testing the continuity of the quartz vein-hosted high-grade, gold-silver mineralization to depth.

Until recently, much of WM (distinct from the More Creek Corridor), was covered by ice and snow year-round. As a result, there’s been a dearth of exploration. However, the maiden surface program last year, (done when Sassy was a private company), returned 15.3 to 125.5 g/t gold, plus 203 g/t to 1,900 g/t silver in the best six chip and grab samples. At spot prices, the 125.5 g/t gold + 1,900 g/t silver sample = ~152 g/t gold equivalent.

New surface discovery, including visible gold, at Westmore….

In recent weeks, further work at WM demonstrated that vein density increases significantly in a south/south-easterly direction up to 400 meters from the initial surface discovery. Mineralization remains open to the north, south and east, and visible gold has increasingly been observed (assays pending on nearly 400 surface samples).

The primary area of interest covers a minimum of 2 x 2 km. To say that management, the board, advisors and technical team are anxious to start drilling at WM would be a gross understatement! In fact, the Phase II campaign of 2,000 meters is now 100% directed at WM…. Just 1 of 12 known groups of precious and base metal showings within the Foremore project area.

Mr. Mark Scott, Sassy Resources president and CEO, commented,

“We are very pleased with how quickly this new surface discovery is building out and ticking all the boxes at this early stage. We look forward to drill-testing the Westmore target later this month.”

Mr. Ian Fraser, VP Exploration added,

“The distribution of veins, up to two meters wide, is impressive, along with the extent of galena. The system has an order and coherency to it at surface which will allow for an effective drill strategy right off the bat. We’re a year into this, and Westmore keeps looking better. This has the earmarks of a potential new Eskay Camp gold-silver drilling discovery.”

Conclusion

Sassy Resources (CSE: SASY) is poised to move forward on a new high-grade, gold-silver target in the heart of the Eskay Camp, in the middle of B.C.’s GT. Management had planned to drill several of 12 high-grade showings. However, recent surface work convinced management to focus entirely on a promising 2 x 2 km area at Westmore.

This is a company with high-grade precious/base metal discovery potential, near-term Phase I drill results, in a world-class jurisdiction, in the midst of a bull market. And, readers are reminded that Sassy has a very tight capital structure, just 29.1 million shares outstanding.

I’m tracking 529 gold-heavy Canadian and U.S.-listed juniors with market caps between $3 million and $999 million. Including Sassy, 36 have substantially all, or at least their most important assets, in the GT. The average gain of the top 20 GT juniors is +516% (from 52-week lows). The top 5 are up an average of +950%, the top 10, +785%. Wow.

Compare that to Sassy at $0.75/share, up +150% from its last capital raise done at $0.30. Subject to some good luck with the drill bit (based on strong data and expert drill targeting) this story has legs.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Sassy Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Sassy Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Sassy Resources was an advertiser on [ER] and Peter Epstein owned zero shares, options and warrants in the Company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: Pretium Resources and Seabridge Gold. Click here for important disclosures about sponsor fees. Please click here for more information. 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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sassy Resources, a company mentioned in this article.

Source: Peter Epstein for Streetwise Reports   09/09/2020

Peter Epstein of Epstein Research discusses an explorer that he believes offers high-grade precious/base metal discovery potential.

Sassy Resources Corp. (SASY:CSE) is a largely unknown spinout from Crystal Lake Mining (now called Enduro Metals). Sassy controls 100% of a promising gold-silver play in the Eskay Camp, at the heart of B.C.'s Golden Triangle (GT). The Foremore project covers 14,585 contiguous hectares (ha) containing high-grade precious metal targets plus showings of zinc, lead and copper.

Sassy has an Enterprise Value (EV) {market cap + (0) debt – (~$2 million) cash} of ~$20 million. The capital structure is tight with only 29.1 million shares outstanding. {Please see my prior article here for further details about Sassy's free float}. Sassy is the 16th largest pre-production junior in the GT.

Sassy's high-grade Foremore compares in size to well-known GT projects

Compare Sassy's 14,585 ha footprint to other high-profile GT projects like Skeena Resources' Eskay Creek @ 6,151 ha, and Ascot's Premier (8,133 ha) + Red Mountain (17,125 ha). Tudor Gold owns 60% of the (17,913 ha) Treaty Creek project, and Benchmark Minerals has the (14,000 ha) Lawyers project.

Readers, consider that early next year Skeena (on its 6,151 ha Eskay Creek alone) expects to report an upsized resource of >5 million ounces of gold equivalent, at >5 g/t gold equivalent. Sassy's footprint is both sizable and centrally located.

Exploration on and around the Foremore property dates back >30 years. It includes prospecting, mapping, sampling, airborne and ground geophysical surveys, and 71 drill holes (+11 new holes last month, and a 2,000 meter program starting soon). Nearly $15 million has been invested, $20 million+ in today's dollars.

Nearby projects include Newmont's/Teck Resources' Galore Creek to the northwest, Teck's/Copper Fox's Schaft Creek to the north, Enduro Metals' Newmont Lake to the southwest, and Skeena and Eskay Mining projects to the south.

Australian major Newcrest Mining is in the GT through its 70% ownership of the Red Chris Mine. Billion dollar companies Pretium Resources, Seabridge Gold and Hochschild Mining are active there as well.

Newmont and Teck are building the Galore Creek road passing directly through Sassy's property, allowing for easier, less-expensive, year-round access to the Foremore site.

Teck is also a partner in nearby Schaft Creek. This bodes well for further investments by both companies into regional infrastructure and mining services, for the benefit of all parties, including Sassy Resources.

Best historical intercepts from a total of 71 holes:

Phase I was recently completed, followed by borehole electromagnetic surveys at each drilling location (BRT and Toe Showings) within each zone along the 5-km-long historic More Creek Corridor. Drilling intersected additional mineralization at shallow depths, extending the base/precious metals-rich BRT zone (gold, silver and base metals) by 115 meters along strike. A new style of mineralization was also discovered.

The company's technical team is pleased to have confirmed the conductivity of BRT-style mineralization through the use of Borehole EM (BHEM) surveys. The More Creek Corridor mineralization was previously thought to be non-conductive, but early success with BHEM at BRT bodes well for its use in ground and airborne EM surveys for future exploration initiatives across the entire project.

Preliminary assays were received for the first three holes of Phase I. The reason the results are not out is that a number of extra steps are being taken to confirm the accuracy of the preliminary assays before announcing the final assays on the three holes.

Broad high-grade gold/silver Westmore target rises to top of must-drill list

While exciting, Phase I was just the first of two high-grade project areas Sassy is laser-focused on. The bigger prize could very well be 3 km southwest—the Westmore "WM" target—to be drilled for the first time (ever), testing the continuity of the quartz vein-hosted high-grade, gold-silver mineralization to depth.

Until recently, much of WM (distinct from the More Creek Corridor), was covered by ice and snow year-round. As a result, there's been a dearth of exploration. However, the maiden surface program last year, (done when Sassy was a private company), returned 15.3 to 125.5 g/t gold, plus 203 g/t to 1,900 g/t silver in the best six chip and grab samples. At spot prices, the 125.5 g/t gold + 1,900 g/t silver sample = ~152 g/t gold equivalent.

New surface discovery, including visible gold, at Westmore….

In recent weeks, further work at WM demonstrated that vein density increases significantly in a south/south-easterly direction up to 400 meters from the initial surface discovery. Mineralization remains open to the north, south and east, and visible gold has increasingly been observed (assays pending on nearly 400 surface samples).

The primary area of interest covers a minimum of 2 x 2 km. To say that management, the board, advisors and technical team are anxious to start drilling at WM would be a gross understatement! In fact, the Phase II campaign of 2,000 meters is now 100% directed at WM…. Just 1 of 12 known groups of precious and base metal showings within the Foremore project area.

Mr. Mark Scott, Sassy Resources president and CEO, commented,

"We are very pleased with how quickly this new surface discovery is building out and ticking all the boxes at this early stage. We look forward to drill-testing the Westmore target later this month."

Mr. Ian Fraser, VP Exploration added,

"The distribution of veins, up to two meters wide, is impressive, along with the extent of galena. The system has an order and coherency to it at surface which will allow for an effective drill strategy right off the bat. We're a year into this, and Westmore keeps looking better. This has the earmarks of a potential new Eskay Camp gold-silver drilling discovery."

Conclusion

Sassy Resources (CSE: SASY) is poised to move forward on a new high-grade, gold-silver target in the heart of the Eskay Camp, in the middle of B.C.'s GT. Management had planned to drill several of 12 high-grade showings. However, recent surface work convinced management to focus entirely on a promising 2 x 2 km area at Westmore.

This is a company with high-grade precious/base metal discovery potential, near-term Phase I drill results, in a world-class jurisdiction, in the midst of a bull market. And, readers are reminded that Sassy has a very tight capital structure, just 29.1 million shares outstanding.

I'm tracking 529 gold-heavy Canadian and U.S.-listed juniors with market caps between $3 million and $999 million. Including Sassy, 36 have substantially all, or at least their most important assets, in the GT. The average gain of the top 20 GT juniors is +516% (from 52-week lows). The top 5 are up an average of +950%, the top 10, +785%. Wow.

Compare that to Sassy at $0.75/share, up +150% from its last capital raise done at $0.30. Subject to some good luck with the drill bit (based on strong data and expert drill targeting) this story has legs.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

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Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Sassy Resources, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Sassy Resources are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Sassy Resources was an advertiser on [ER] and Peter Epstein owned zero shares, options and warrants in the Company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

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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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sassy Resources, a company mentioned in this article.

Basel III and Gold, Silver and Platinum

Source: Maurice Jackson for Streetwise Reports   09/08/2020

Maurice Jackson of Proven and Probable talks with Andy Schectman of Miles Franklin Precious Metals Investments about macroeconomic policy and its effect on …

Source: Maurice Jackson for Streetwise Reports   09/08/2020

Maurice Jackson of Proven and Probable talks with Andy Schectman of Miles Franklin Precious Metals Investments about macroeconomic policy and its effect on precious metals prices.

Maurice Jackson: Joining us for a conversation is Andy Schectman, the president of Miles Franklin Precious Metals Investments.

Let's begin today's discussion with gold, which has recently surpassed its all-time high since we last spoke, but this is no surprise. You forewarned us this would come to pass in our discussion back in December 2019, regarding the Bank of International Settlements and Basel III and its impact on gold. For those that missed that conversation, can you please shed some light on the importance of Basel III?

Andy Schectman: Readers should note, Basil III is the most significant event of my career. And really if people were to take a broad look at this and understand what it means, quite frankly, I don't think you need to know anything else. Everything else that we see is just noise. Since 1944, there's only been one tier 1 asset, and that has been United States Treasuries or fully funded dollar deposits. Gold was considered a tier 3 asset where only 50% of its value was allowed to be calculated on a balance sheet. Therefore, there would be four reasons that central banks would be de-incentivized to own gold. It wouldn't pay interest, costs money to store, it was unpredictable in its movements, but the tier 3 status meant that a 50% denigration on the balance sheet would limit a central bank's ability to sell bonds or transact international business. So really, the only purest form of collateral, and by the way, if your readers were to Google tier 1 asset, it's listed as a riskless asset.

So the Bank of International Settlements, which is the central bankers' central bank in Basel, Switzerland, reclassified gold in April of 2019, as the only other tier 1 asset in the world next to U.S. dollars in Treasuries. So since 1944, there's only been the dollar and the treasury bill that would give a tier 1 status for a central bank and or commercial bank collateral. Now, with gold brought up to that table, it's important to note that the central banks of the world front-ran this decision. In 2018, they bought more gold cumulatively as a group than they did in the 60 years previously. And in 2019, those numbers were up 90% and continue unabated higher now. And so you're seeing the most sophisticated, well-funded, well-informed traders on the globe accumulate what they call a riskless asset and have been front-running that decision, of course, now for over three years.

I think it's only a matter of time before gold goes higher than anyone thinks possible. And they'll continue to let it move up at this methodical pace with volatility inside of it, to keep people from really making a committed move to it. And before long they'll look at it and say, "Geez, we missed the boat. We waited too long." And I don't think that's the case right now, but I think that will begin to be conventional wisdom for most people, they will have thought that they missed the boat. I think it's going multiples higher.

Maurice Jackson: Speaking of central banks, let's take the conversation now home to the United States. What are your thoughts on the Federal Reserve's unprecedented fiscal policy, and what type of impact is this going to have on precious metals short term? And then the bigger picture long term?

Andy Schectman: Well, you're going to see inflation, and what they're trying to do is stave off global deflation, the deflating of all of the assets and the bad loans, and deflation is bearing down on the globe, and the Fed is doing all it can to fight it with the printing press, and the inflationary forces will have ramifications. When we talk about inflation in 2008, with all the money thrown at the system, it went to the Wall Street banks, and that that money was holed up in financial assets. And so stocks, bonds, and to a maybe a slightly lesser degree, real estate, but financial assets were inflated, and they were able to reflate the bubble of those assets.

This time around, however, you've seen trillions of dollars being poured into the real economy through the PPP and the CARES Act and the $1,200 checks to people, and all of this stuff that has impacted M1 and M2, the money supply, you will see, beginning to see, I think, the inflationary effects of the Fed pumping money into the system, not just to the banks, continuing to inflate financial assets, ala the Dow Jones at an all-time high, etc., with 50 million people unemployed, completely detached from reality.

But you're also going to begin to see, I think, real price inflation in the real economy, because on top of all the money that's been thrown into the M1 and M2, which is inflationary already, remember, Maurice, it took 300 years to create $800 billion in wealth in this country. And in 10 months, the Fed's created, what, $7, $8, $9 trillion, a good portion of which has already been sent directly to people in the form of subsidy checks. And now you have a situation where even people who have ridden this bull market back up, this illusionary recovery, created courtesy of the Federal Reserve's policies, I think they're beginning to sense that, Jesus, this just doesn't make sense that the market continues to roar higher, defy gravity, in an environment where so much of the economy has shut down, may never come back. A lot of it won't. And I think people are realizing that.

But here's where it gets crazy. When these people pull out of the equity market of the stocks and the bonds, where do they go? That money is going to buy things in the economy, anything, tangibles, real estate, precious metals, art, jewelry, you name it, as inflation begins to rear its head and money comes out of the equity markets. I think you'll see massive price inflation. So this is just the very beginning, but what the Fed has done, in my opinion, has sowed the seeds for perhaps a hyper stagflation type of scenario, where you have an environment of little or no economic growth and higher taxes, coupled with much higher prices.

Any way you look at it, I'm looking for inflation with an economy that is severely wounded, may not come back for a very long time. And that is, in essence, the printing press meets the Great Depression, and if I had to guess an outcome a couple of years from now before things get better, that's the environment we see, much higher prices and an economy that struggles to get going again.

Maurice Jackson: Speaking of higher prices, the old saying is: "Buy low and sell high." So one may conclude that it's not a good time to be buying gold right now since it is at or near an all-time high. Well, not so fast. Andy, what is the Dow gold ratio telling investors?

Andy Schectman: Well, we're right at the higher end of the Dow gold ratio. Typically, when the ratio is 5 or lower, meaning 5 ounces of gold by the Dow, you want to sell gold and buy the Dow. Currently, it takes 15 ounces of gold to buy the Dow, investors should be looking to sell the Dow and buy gold. But not only is the Dow horrifically overvalued in and of itself, one could argue that at this rate, selling the Dow and buying gold would be a very prudent decision based on the ratios.

Maurice Jackson: If you use those ratios in that perspective of 5 if you took the price of gold right now, and you multiplied it times five, the result is 9,700, and the Dow is close to 29,000. We have discussed perception in deception, and you see it in the numbers, but you have to know what numbers to look at. And that's what we're here to provide you, guidance, and not to be deceived by the nefarious tools of the Federal Reserve, because that is deception, and we want to make sure that you make the right decisions. Now, if we've convinced you that gold is on sale, let's move on to silver. What is the gold-silver ratio telling investors right now?

Andy Schectman: The same thing really, in that we are not at its upper, upper end like we saw in March of 110 or 120:1, which was the biggest discrepancy in human history. But even still at 70:1, people should be much more heavily in the silver than in gold. And when I talk about people playing these ratios, the gold-silver ratio, if someone were to be much more heavily invested in silver, to me, it is a temporary investment until the ratio normalizes. And when you talk to guys like Keith Neumeyer who I know you know, he'll tell you that what's coming out of the ground is 6:1 currently. And when you take a look at silver and the fact that it is a depleting asset, one that has such massive amount of uses in industry, when you see a company like JP Morgan amass a billion ounces of it, while holding down the paper price, there are all sorts of signs in the road pointing to that this is very relevant and very important, and some pretty sophisticated people have been holding down the price to corner the physical market.

I think that silver is still one of, if not the best investments on the planet, but I would tell you that when that ratio does normalize, in 2011, we saw a 35:1 ratio or thereabouts after it being 85:1 the year before. So if someone were to put $25,000 into silver today at 70:1, if we were to see it do what it did in 2011 and get to 35:1, the idea would then be to sell gold or silver rather and buy gold. And that money that would've gone into gold today, but instead went into silver, would be worth twice as much then when that ratio normalizes.

And so playing the ratio is really, really, really good, but when we look at the Dow and saying, at 15, you want to be in gold, and at five, you want to be in the Dow, well, here in at 70 or above, you want to be in silver, and 35 or below, maybe even 40, you want to be in gold. So we're closer to the be in the silver side of the equation, always mindful of that ratio and allowing us to double up the amount of gold we otherwise would be able to get. Or if someone were to trade 20 ounces of gold for silver at 70:1, when the ratio normalizes you go back and that 20 ounces turn into 40 ounces of gold.

Maurice Jackson: It's simple and it's brilliant. Bob Moriarty of 321gold has shared the benefits of applying the ratio with us many times. And I know that a number of your clients, as well as my clients, who are more heavily weighted towards gold, they've been taking advantage of the opportunity before us. Let's get into my favorite metal, platinum, which is currently trading at half the price of gold right now. What are your thoughts on platinum, sir?

Andy Schectman: Stupid and expensive. I wish it was easier to get, it's not very easy to get. The price is misleading, Maurice, because I mean, we can get it and we have had it, and we are lately having a hard time keeping it in stock, but the high premiums and the difficulty getting the product with any regularity speaks to me that the physical side is continuing to stay tight and maybe even get tighter. But if you are a ratio guy, the ratio between gold to platinum is every bit as out of whack, in fact, more so probably than the gold to silver ratio. The one thing against platinum is that it doesn't have the history as a monetary metal, the way that gold and silver do. It's more used or viewed as an industrial metal and mostly in catalytic converters for diesel automobiles.

But when something is so far away from historical price averages, the magnetism is pulling us back to the mean every day. So it's got to come back into line. Most of the last 100 years, platinum has been more expensive than gold, so I think it's as good of an investment as anything out there right next to silver. And the only reason I slightly have favored silver this whole way up, even though the ratio is every bit as good or better, is that I think silver always does first in these types of situations wear its industrial hat, but before it's all said and done is wearing its monetary hat as well. And people view silver as a substitute for gold, as a monetary metal, not just an industrial metal, whereas platinum is more as an industrial metal and an investment but not so much a monetary metal. But I do think it's a heck of a value, Maurice, and I'm continuing to buy it myself. To me, truthfully, it comes in third in my portfolio in terms of volume to gold and silver.

Maurice Jackson: I always share with my clients that I own a little bit of gold, a lot of silver, and a lot of platinum, but to me, the ultimate metal is gold. And the reason I'm buying silver and platinum is that I want to use those ratios as you've expanded upon and purchase more gold when the opportunity presents itself. So we've addressed gold as a great value proposition, but silver and platinum are even better value propositions right now. Let's switch topics here and let's address some questions that we received from prospective clients. And that is, I often hear, what is the minimum requirement to purchase from Miles Franklin?

Andy Schectman: No, there isn't a minimum order. We'd like to help anyone we can, so we don't have a minimum order, but I think you would at least have to spend a few hundred dollars to make it worthwhile when you factor in a $15 shipping charge on small orders. So no minimum, we work with everyone. And so whether it be a million dollars or $150, we'll work with the client.

Maurice Jackson: Absolutely. Every client is important to us. We do not look at you from a numerical standpoint. We understand that you're entrusting us with a big responsibility, and we wear that as a badge of honor. Here's the big one. Why aren't your prices listed?

Andy Schectman: I could list prices. I've chosen not to, Maurice, because the minute we took it off, the minute we said call for a price, all the fraud that we had fought for years stopped. And I know it frustrates a lot of people that our prices aren't listed, but we'll beat any price. Find a price, we'll match it, we'll beat it, we won't be undersold. And I know it takes another step, but we are old-school and analog in a digital world. And I think when you talk about privacy... precious metals, to me, deserve to be offline, and it's not a cop-out. I can turn our online store on again. But when I had it on, we fought fraud every single day, so much so that they found ways to try to hack our emails, try to do identity theft, tried to do mortgage fraud. The list goes on and on and on and on.

And every day we were dealing with, in many cases, state-sponsored Eastern European professional hackers, trying to find a way to disrupt our business and steal money from us or our clients. So I think it is every bit as important to the safety of our clients as it is to us. And for now, I guess I just choose to do things old-school, Maurice, and I know we'll lose some people who don't want to pick up the phone and call, but for those that do, I can assure you we'll make it worth your while. And if you find a nationally listed price better, let us know. We'll do our very best to beat it. In most cases, we can.

Maurice Jackson: Very responsible words there. I get that question asked to me several times, and also one last thing here. You talked about fraud. Somebody who's looking to set up an account with us, what's the best way for them to do that?

Andy Schectman: Just give us a call, get your questions answered. And literally, that's it. I mean, when it comes to placing an order after we've had a discussion, got all the questions answered, we need your name, address, phone number, email address, and how they want to pay. Regular check, ACH, or wire. Once all those boxes are checked, your order is placed, and if the funds need to clear, upon clearing, the client receives UPS-insured tracking numbers to follow it in, it's literally that simple. It's as easy of a transaction as there is any longer in the world of decreasing privacy and increasing complexity. This is one of the few simple, straightforward things that still is.

Maurice Jackson: As a reminder, if you're looking to set up an account with Miles Franklin, all you have to do is give me a call 855.505.1900. I'll get your information, find out what you're looking to purchase, and we'll find the best deal for you, but you would not set up your account online. We do that to protect your privacy. Last question regarding questions that we received from prospective clients. What about credit card payments? Why don't you accept those?

Andy Schectman: Same reason. Just a tremendous amount of identity theft and fraud. And to me, it's just not worth being on the wrong side of that, Maurice. And with a credit card, as an example, someone steals a credit card, does identity theft, they place an order for $5,000, we ship them the product, and then the charge is disputed due to identity theft. On a $5,000 order, we may make a hundred bucks, but the 90-day investigation pulls the $5,000 out of our account while the charge is investigated.

So have that happen five, six, seven times a month, 10 times a month, whatever, you end up making it not worth the while. I know there are a lot of companies out there that do it. I don't know what their level of fraud is. To me, it's just not worth it. You just open yourself up to identity theft, hacking, fraud, and experience demonstrated to me that the minute I shut that off, that side of things just disappeared.

Maurice Jackson: So to make my purchase, I can do it with a check, a wire, and ACH, is that correct?

Andy Schectman: Yes, sir.

Maurice Jackson: All right, sir. Last question for you here. Or actually, two. Let me ask you, my favorite one here is, what keeps you up at night that we don't know about?

Andy Schectman: I don't like the way the things are going in this country, and with the success that we've had as a company, we have had great success this year, working 15 hours a day, seven days a week, but there's nowhere to go and nothing to do. And kids going back to school, but doing so online, and the destruction of the economy right in front of us, and I just don't like the path we're heading down. I think this winter as we head towards the election is going to be incredibly bumpy. And I think it's going to come with some very scary things. I live in the epicenter of stupidity and insanity in Minneapolis, and it's been one thing to make it through what has been a really beautiful summer weather-wise, but I can't imagine what it's going to be like here in the northern states come wintertime, when the restaurants that are working 20% or 30% capacity, hanging on by a thread, are forced to shut down.

And all of the other establishments that are just hanging on in the winter, I think most of them will just go by the wayside. And I'm very concerned about what things look like over the next few months. And so I guess preparation is very important. People forget it's just a few months ago in March and April when people couldn't find bottled water and toilet paper anywhere. I think that that was the front edge of the storm. And I've been saying recently that I think we're in the eye of the hurricane right now, people have been lulled into a sense of complacency, but I think the trailing edge of the storm is coming. And don't forget that we had the repo market crisis last September before any of this happened. The banks have been hanging on by a thread for the past 10 months. Many of these banks have loans made to companies that are either bankrupt or close to being bankrupt.

And don't forget about real estate and commercial real estate and all of the things that are dependent upon loans and credit. These banks are in big trouble. I think we're in trouble as an economy, Maurice, and if anything keeps me up at night, it is that my success will come at the expense of everything around me that I love. Sitting at a bar, watching a Twins game, eating a hamburger and a beer. I can't tell you what I'd pay for that right now, but it's just, those are the kinds of things that mostly looking through my kids' eyes that keep me up at night above all else. And I'd like to be optimistic and hope things turn around for us sometime soon, but I guess I just can't logically get to that point yet. I think we're too far away from seeing anything like what was last year, we're a long ways away from that. And that keeps me up at night more than anything,

Maurice Jackson: I'm a vegetarian and you're referencing the hamburger, but I just find it disgusting that you would want to watch a Twins game. Last question, sir. And that is, what did I forget to ask?

Andy Schectman: You didn't forget to ask anything, Maurice, you asked the right questions. There are opportunities in ratios, and there's an opportunity in platinum, there's an opportunity in silver, there's opportunity to sell Dow and to get on the sidelines before things get crazy. You asked the right questions, you made the right statement.

Maurice Jackson: Well, thank you, sir, and it's a pleasure as always, but before we close, for someone listening that wants to contact you, please share the contact details.

Andy Schectman: I can be reached directly at andy@milesfranklin.com. That goes right to my cell phone. Please sign up for our newsletter, it's free, seven days a week, at milesfranklin.com. On the homepage, sign up for our newsletter, and it's a good way to stay in touch and in contact with what's going on. In the meantime, I wish you and all your listeners prosperity and health and safety and good fortune moving forward.

Maurice Jackson: And if you visit Proven and Probable, on the right-hand column, you will see a link for the Miles Franklin newsletter as well. I'm a licensed broker for Miles Franklin Precious Metals Investments where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories, and precious metals IRAs. Call me directly at (855) 505-1900 or you may email maurice@milesfranklin.com.

Mr. Schectman, it's been a real pleasure speaking with you today. Wishing you the absolute best, sir.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Eric Sprott-Funded Gold Explorer Pursues ‘Billion-Dollar Drill Hole’

Source: Bill Powers for Streetwise Reports   09/08/2020

Orefinders CEO Stephen Stewart tells Bill Powers of MiningStockEducation.com about his company’s plans for three discovery campaigns in historical and prolific mining districts in Ontario and Nevada.

Eric Sprott invested in Orefinders Resources Inc. (ORX:TSX.V) in February 2020 due to the discovery potential at its numerous projects in close proximity to Kirkland Lake Gold Inc.’s (KL:TSX; KL:NYSE) world-class Macassa Mine. Only after Sprott’s investment did the market begin to awaken to Orefinders’ compelling investment value proposition.

Over the last five years, Orefinders operated under the radar and quietly assembled a portfolio of assets in the Kirkland Lake area that CEO Stephen Stewart believes could one day deliver “that billion-dollar drill hole.”

Orefinders is a gold explorer with the third largest land package on the Ontario side of the prolific Cadillac Break in Canada, and is about to commence on six to nine months of nonstop drilling at its projects. In addition to the tremendous discovery potential, the company has an approximately one-million gold-ounce resource (historic and NI-43-101) at its three projects combined, as well as three control block positions in three prospective junior miners.

In this interview, CEO Stephen Stewart explains the inherent value within Orefinders as well as the blue-sky discovery potential.

Bill Powers: I’d like you to start off by sharing a little more about your background, your group’s background and your past success. I don’t think the market is aware fully of your past success, which you shared with me back in February when we were originally chatting about your company. Please share a little more about your background.

Stephen Stewart: Sure, happy to. So, I grew up in the mining industry. My father was a mining lawyer and I always worked side by side with hi and I still do. He’s still involved in all of our companies. In a sense, I grew up discussing and thinking about this industry at the breakfast table and the dinner table.

Formally speaking, my background is in finance. So I understand how money works and how things are valued. That’s really been my focus and I apply that toward the junior mining industry, which isn’t really high finance but, certainly in dollars and cents, matters.

And in terms of my past successes, our group, I guess, largely is known for being the assembler of what became the Cote Lake project. We drilled a discovery hole and we were significant shareholders in Trelawney when it was sold back in 2012 to IAMGOLD Corp. (IMG:TSX; IAG:NYSE)for over $600 million; almost $700 million. So, that was one of our big wins.

And we were also involved with the early days of what’s now called the Ring of Fire in northern Ontario, which is a phenomenal world-class deposit up there that sadly has fallen on hard times due to infrastructure and issues. . .[E]ver since 2015, we have been involved with Orefinders and other companies that are in its portfolio.

Bill: When a new speculator or investor is looking at a potential exploration and development company, one of the things, as you know, we need to look at is the management’s perspective. Can we trust them with our money? And one of the first things you look at to see is how do they compensate themselves. Share a little bit about your perspective on the whole idea of founder shares, options. How have you bought your shares? When do you plan to sell your shares?

Stephen: Okay, good question. Firstly, I pay myself $10,000 a month. Very simple. In terms of founders’ shares, there are zero founders’ shares that I have received from Orefinders, or actually from any of the companies I’m involved with, and I’m involved with a few. So I have bought, with cash, every single share that I own, vis-a-vis on market or in a private placement. And I typically participate in every single private placement I’m involved with—not everyone, but most. So I am directly aligned with shareholders, in that sense.

Bill: If someone sees you selling in the open market, what should they think?

Stephen: They should sell too. Frankly, unless we have a tremendous success and we are multi-dollar stock, I don’t believe that anybody sitting in my seat should be selling their shares while trying to convince the public that they should be buying those very same shares. That sends the wrong message. We are in this to make a discovery. We are in this to sell this company and make money, just like the rest of our shareholders.

And I’ll note that I do pay myself, of course, a salary. I think I earn every penny of it. But I will also note that in the last number of years, I put more money into this company than my salary by quite a distance, I would imagine. I own about 5 million shares Orefinders.

Bill: So you’re an investor even more so than an employee?

Stephen: Well, that’s the only way I’m going to make money. I mean, nobody got rich off a salary. I’m in this business to make substantial money. And I think with Orefinders, we’re in a good position to do that. So, $10,000 a month pays the rent, so to speak, but I’m here to make 10, 20, 50 times my money.

Bill: Stephen, when we spoke 18 months ago, I remember you sharing with me that your approach was to acquire assets. And at that time you weren’t particularly focused on drilling because you just didn’t feel like the market would reward that, and that, at that time, it wouldn’t be in the best interest of shareholders.

However, when we spoke in February this year, your mentality and your outlook seemed to change. Can you talk to us now about what you’ve done in the last few years with Orefinders to set yourself up for what you’re about to do right now?

Stephen: Sure. Well, you’re absolutely right. From 2015 to December 2019, Orefinders had a very clear philosophy, which we were very forthright with investors. And we said, “We refuse to drill, all else equal.” It just didn’t provide the appropriate return on investment, which we seek, which starts at 10 times your money.

And also, the cost of capital was too high, meaning we had to give away 25%, 30% of our company to do any drill program of significance. So our share price was too low. And if you met or exceeded expectations, it was often met with the liquidity event.

Now, if you made a world-class discovery, like a Hemlo or a Voisey’s Bay, that would have been superseded, but that’s not really an investment proposition that we were interested in. We’re most interested in mitigating the risk.

And so we saw the opportunity to take advantage of the market. The market was a down market, and we could buy other people’s projects that they were having a hard time raising money for.

And so, Orefinders really developed this portfolio, we now have six assets. We accumulated them in a down market and perhaps more importantly, we accumulated them largely out of distressed, or call it unique, situations. We bought problems that we believe we can sell.

And now, if people go to our [Dec. 30, 2019] news release, we announced before gold really started to move. We felt that the pivot was in place. And what I mean by that, it was time to go back to the drill bit. We feel, and felt, that investors are going to start to pay for quality results and discovery.

And so we’ve developed this portfolio, we bought it cheap, and now we’re cashing ourselves up. We’ve got $2 million in the treasury. We’ve got another probably $8 million in marketable securities. And we just announced a $2 million financing that’s closing in a few weeks; that’s going to give us a great position. And now it’s all about putting the money into the ground and looking for that billion-dollar drill hole that we seek.

Bill: Great. I want to talk about the fundamental value in your company. So if I do just some quick back-of-the-napkin math, your market cap, as we speak is about $20 million, and your enterprise value would be about $10 million. Is that correct?

Stephen: That’s fair to say with our cash. And if you strip out our cash and marketable securities, yes.

Bill: Okay. So with a $10 million enterprise value, let’s first talk about your projects, your three projects, Knight, McGarry and Mirado. Where’s the value currently, before you begin to drill these projects?

Stephen: Well, I guess you could say the value is retained in the ounces in the ground, and not all ounces are created equal, as we should know. However, each of those projects has 43-101 historical ounces in the neighborhood collectively, of about a million ounces. And you can attribute all sorts of different multiples on a per ounce basis.

But if you’re going to attribute a million dollars relative, or a million ounces relative to our market cap, that’s $10 an ounce, which is extremely low. So I think our enterprise value is quite attractive, at this point in time.

Bill: Then you also have three equity stakes in companies. Talk to us about this please.

Stephen: That’s correct, we own three positions—I would say control block positions—one in Mistango River Resources (MIS:CNS.X), which we acquired vis-a-vis a hostile proxy battle that ended last year. And we’ve got a very exciting project in Kirkland Lake that we’re going to be drilling extensively very soon; it’s right beside all of Orefinders assets as well, so that’s why we got attracted to that project. As well we have about an 9% position in a company called Power Ore (PORE:TSX.V). It owns a very sexy copper-gold, very large-scale mine that was operated by Falconbridge. They took out 1.5 billion pounds of copper; a million ounces of gold out of that. And we spun that off in 2018 because. . .we had a non-core asset that we weren’t getting any value for—it was not a gold asset—and then went on to create that company.

And then last we’ve got a 26% interest in a company called Pacific Precious. Pacific Precious is a private company, and its planned IPO [initial public offering] is later this year, in Q4. It’s led by a gentleman by the name of Ron Stewart. Ron is not related, we just happen to be from the same clan in Scotland, if you go back far enough, I suppose. But that focus is going to be in Nevada. It controls a project, right beside Barrick Gold Corp.’s (ABX:TSX; GOLD:NYSE) Goldrush, which is a monster deposit. And I think investors can anticipate that company to grow in terms of its portfolio in Nevada as well.

Bill: Okay, so you’re raising $2 million. You’ll have about $4 million in the treasury. How are you going to spend that to advance these projects?

Stephen: We’re going to put as much of that into the ground as possible, as I said before, and as we said in December. We believe the time is now to put it into the ground and make a discovery. The accumulation of these assets was phase one. Now phase two is to drill.

And so, a couple of weeks ago, we put out a news release that we’re going to be drilling our Knight project, which is just 60 kilometers west of Kirkland Lake. We’ve got 5,000 meters planned. I think investors can expect us to probably double that when we close this financing. So that’ll be our first drill program. It’s got a very attractive discovery drill target on it. We’re going to put about 10% of those meters into [a] discovery target. It’s sort of binary. If we hit it, it’s going to be very interesting, potentially game-changing. If we miss it, it’s no big deal.

The vast majority of those meters are going to go toward our Tyranite project, which is an existing high-grade mine, more traditional style. It’s got very good historical intersects. Now we’re going deeper and we’re going laterally. So we’re going to be expanding those resources. So, that’s our first drill program on the Knight.

Then we’ll subsequently pull the drill over to our McGarry project, which is about 20 kilometers west of Kirkland Lake, and it’s beside the Kerr-Addison, which was a world-class, 12-million-ounce, high-grade producer. We have the same style of mineralization on there. Again, we’ll have a sort of a two-pronged drill program approach. One is some. . .lower-hanging fruit on known mineralization, which is right beside the Kerr-Addison. We’ll look to expand our existing resource there, which we have an eight-gram per ton resource there.

But also, [on] the McGarry, there’s about a kilometer and a half of strike length on the Cadillac Break, which is a world-class fault, where all this gold in Kirkland Lake came from. It’s really never been drilled. And so that’s going to be the discovery aspect, and investors can expect us to come out with probably a 7,000- or 8,000-meter drill program toward the end of this year on that one as well. So, details to come forth on the McGarry.

And our last project is called Mirado. We’ve got about 450,000 ounces in an open pit there. We view that as having multimillion-ounce potential, but it’s really just a function of drilling it out. Without getting too technical, it’s just step-out drilling, but there’s definitely potential to grow that.

And. . .I’ll note that on our McGarry, our Knight and our Mirado. . .we have direct exposure to in Mistango—[all are] very proximal. They’re all next-door neighbors. And that was by design, certainly not by accident.

I do believe that—and I’ve been vocal about this—mergers and acquisitions are inevitable in this industry, and Orefinders, Mistango and all of our properties have really put ourselves in front of what we see as a coming wave of mergers and acquisitions. Not that we’re waiting on being bought out, far from it. We’re going to go and drill our own properties and see what happens. But, we plan to make ourselves so attractive that the big guys, the guys that build mines and operate mines, just can’t resist.

Bill: Stephen, speculators that focus on Canadian mining stocks will understand the significance, geologically and location-wise, of your projects and why it’s so good. But perhaps [some] don’t pay as much attention to Canada, or maybe they’re newer to investing and speculating in mining stocks. You mentioned Kirkland Lake—can you elaborate a little more on the grade and the resource at Kirkland Lake and why where your projects are located is excellent?

Stephen: Sure. Well, Kirkland Lake can be defined as the third largest gold ore body in the history of the world. Not many people know that, but Kirkland Lake or Kirkland Lake Gold, the corporation, now mines the highest-grade mine in the world. It’s called the Macassa, and the Macassa, next year, is going to be pulling out 400,000 gold ounces at nearly 20 grams per ton, which is just phenomenal.

And they’ve just made a new discovery there called the South Mine Complex, which they think is going to be putting that mine in operation for the next 30, 40 years. I mean, so who said mining is not sustainable? And so that is, I guess, the big dog in Kirkland Lake town; the Kirkland Lake mine.

Now, just about 20 kilometers to the east of that is something called the Kerr-Addison, and I mentioned that before. We’re right beside that on the McGarry. That mine was also, in its day, world-class.

And these two mines really are the goalposts of the Cadillac Break on the Ontario side, which is by no exaggeration is a world-class fault system—which is just a crack in the earth where this hydrothermal fluid carrying the gold can seep into and deposit this gold over millions of years.

There is another orebody lurking in between those two world-class monsters. And we are the third largest landowner collectively in that region, between those two projects, aside from Kirkland Lake Gold, themselves multi-billion dollar company, as well as Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), the other major in the area. So those are the two big dogs and then it’s us. So we think we are phenomenally well positioned.

Bill: I also think it’s unique that at your McGarry project, you own a tailings facility right next to the Kerr-Addison. So as I was going through your presentation, the word that came to mind was “ransom.” It’s almost like you have a ransom on that project, don’t you?

Stephen: Well, I don’t know if I’d use that word, but certainly strategic would be the word that would come to mind. The Kerr-Addison itself right now, as I said, is shut down. It was a high-grade underground mine in 1996, but it has been reinterpreted into an open pit-type of a deposit. . .It’s a big deposit too. So that’s going to get a lot of attention. And, as you know. . .Orefinders owns the tailings facility on its McGarry project. That is not an insignificant fact.

So it is my belief that whoever buys the Kerr-Addison—and somebody is going to buy the Kerr-Addison, somebody large I think—they are going to require our property because they need to put that waste material somewhere. Now, again, that’s not our strategy, but that’s a nice card to have in our back pocket.

However, the McGarry, I think, offers the potential to discover its own Kerr-Addison 2.0 on it. And that’s ultimately why we’re there. We’re not there to be in a blocking position. We’re there to discover an ore body and sell it to the highest bidder. But if having the tailings facility is a plus, well, then we have that plus.

Bill: What about Mistango River Resources, one of your equity positions. Eric Sprott invested in this company as well. Talk to us about the prospectivity that the Orefinders investors would get through the stake in Mistango.

Stephen: Orefinders owns 20% of Mistango, and you’re right, Mr. Sprott came in. Actually, he came in on four separate occasions this year, two times into Orefinders and two times into Mistango.

And Mistango has $4 million in its treasury right now. It announced a $3 million financing, contemporaneously; it announced the same day as the Orefinders. It’s a broker deal done by Echelon, and we’ve got large institutional names coming in. And I certainly hope Mr. Sprott is going to come in again—we’ll make that announcement at close.

And it is going to be drilling. It is in the process of defining a very substantial drill program on its Eby-Baldwin project, which is directly beside the Macassa mine—which I told you about; that 400,000-ounce per year, 20-gram per ton gold deposit that Kirkland Lake Gold owns. The Eby-Baldwin, owned by Mistango 100%; it’s right there.

We believe it’s the same geologic setting, and it’s well financed to go and find a discovery on its own. What Mistango is seeking [are] a couple of intersections to prove that that Kirkland Lake orebody, which I mentioned—which has been mined for nearly 100 years, and is the third largest gold orebody in the world—we are trying to prove that it continues to go west onto our property.

And when I say continue, I mean, the Macassa is one of seven mines in history [that] have extracted from this ore body. We believe that Mistango has the eighth, and we will, come closing this financing, have $7 million worth of drilling to go out there and prove it. If we do, then, oh boy, is that 20% that Orefinders owns going to be worth an awful lot.

Bill: And Pacific Precious—if you could give us your commentary on the speculative upside.

Stephen: What’s going to happen there is that Orefinders owns 10 million shares. It’s going to dividend out at least 5 million of those directly to our shareholders as a part of the IPO process. So Orefinders shareholders can expect a zero cost-basis dividend coming to them by the end of the year.

It owns a project called the Golden Trend, which is again, contiguous. . .I guess we like contiguous projects. . .but this project is contiguous to Gold Rush, which is nearly a 15-million gold ounce, 10-gram per ton, monster deposit owned by Nevada Gold Mines, which is the joint venture between Barrick and Newmont Corp. (NEM:NYSE). This is a monster mine. We believe we are in the same geological context; this is in the Cortez Trend. It is really the Beverly Hills 90210 zip code to be in for gold mining.

So, that is a very prospective project that Pacific Precious is going to raise money for in the very near term, and put some holes in there and try to find a deposit. In addition to that, you can expect the leadership, led by Ron Stewart, to go out and acquire additional projects.

We love Nevada. Well, we love. . .First all, I love Ontario; I love Quebec. There’s no better place to do business. If we’re going to do business anywhere else, it would be in Nevada. And so that’s giving us, and Orefinders shareholders, direct exposure to Nevada.

Bill: With an enterprise value of about CAD$10 million, just with the funda

mental value within the company, I find that compelling before the speculative blue-sky potential. And then Stephen, just to recap here with your position in Pacific Precious, Mistango, and the three projects, how many projects will be drilled, let’s say, within the next six months, and potentially more value created?

Stephen: I think, once we close this financing, we’re going to be drilling in just a matter of days. I don’t anticipate we’ll stop drilling for the next six to nine months. That’s my plan.

So we’re going to start drilling on the Knight. We’re probably going to double that to 10,000 meters. We’re going to have at least 6,000 to 8,000 meters on McGarry. And then, last, we’re going to drill our Mirado project, which was our first project, but certainly doesn’t deserve to be mentioned last.

Those three projects are going to get an awful lot of attention. As I said off the top, we spent an awful lot of work putting together this portfolio, with the idea that when the time is right, we’re going to raise money and put it into the ground, and the time is now. And so our shareholders can expect us to do exactly what we said we’re going to do. And we’ll see if Mother Nature cooperates.

Bill Powers is the host of the Mining Stock Education podcast that interviews many of the top names in the natural resource sector and profiles quality mining investment opportunities. Powers is an avid resource investor with an entrepreneurial background in sales, management and small business development. His latest interviews can be found at MiningStockEducation.com.

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The content produced by Bill Powers and Mining Stock Education LLC is for informational purposes only and is not to be considered personal, legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, public filings, current events, press releases and interviews but is not infallible. It may contain errors and we offer no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com, our podcast or our videos. We usually hold equity positions in and are compensated by the companies we feature and are therefore biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

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( Companies Mentioned: MIS:CNSX,
TSXV:ORX ,
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Source: Bill Powers for Streetwise Reports   09/08/2020

Orefinders CEO Stephen Stewart tells Bill Powers of MiningStockEducation.com about his company's plans for three discovery campaigns in historical and prolific mining districts in Ontario and Nevada.

Eric Sprott invested in Orefinders Resources Inc. (ORX:TSX.V) in February 2020 due to the discovery potential at its numerous projects in close proximity to Kirkland Lake Gold Inc.'s (KL:TSX; KL:NYSE) world-class Macassa Mine. Only after Sprott's investment did the market begin to awaken to Orefinders' compelling investment value proposition.

Over the last five years, Orefinders operated under the radar and quietly assembled a portfolio of assets in the Kirkland Lake area that CEO Stephen Stewart believes could one day deliver "that billion-dollar drill hole."

Orefinders is a gold explorer with the third largest land package on the Ontario side of the prolific Cadillac Break in Canada, and is about to commence on six to nine months of nonstop drilling at its projects. In addition to the tremendous discovery potential, the company has an approximately one-million gold-ounce resource (historic and NI-43-101) at its three projects combined, as well as three control block positions in three prospective junior miners.

In this interview, CEO Stephen Stewart explains the inherent value within Orefinders as well as the blue-sky discovery potential.

Bill Powers: I'd like you to start off by sharing a little more about your background, your group's background and your past success. I don't think the market is aware fully of your past success, which you shared with me back in February when we were originally chatting about your company. Please share a little more about your background.

Stephen Stewart: Sure, happy to. So, I grew up in the mining industry. My father was a mining lawyer and I always worked side by side with hi and I still do. He's still involved in all of our companies. In a sense, I grew up discussing and thinking about this industry at the breakfast table and the dinner table.

Formally speaking, my background is in finance. So I understand how money works and how things are valued. That's really been my focus and I apply that toward the junior mining industry, which isn't really high finance but, certainly in dollars and cents, matters.

And in terms of my past successes, our group, I guess, largely is known for being the assembler of what became the Cote Lake project. We drilled a discovery hole and we were significant shareholders in Trelawney when it was sold back in 2012 to IAMGOLD Corp. (IMG:TSX; IAG:NYSE)for over $600 million; almost $700 million. So, that was one of our big wins.

And we were also involved with the early days of what's now called the Ring of Fire in northern Ontario, which is a phenomenal world-class deposit up there that sadly has fallen on hard times due to infrastructure and issues. . .[E]ver since 2015, we have been involved with Orefinders and other companies that are in its portfolio.

Bill: When a new speculator or investor is looking at a potential exploration and development company, one of the things, as you know, we need to look at is the management's perspective. Can we trust them with our money? And one of the first things you look at to see is how do they compensate themselves. Share a little bit about your perspective on the whole idea of founder shares, options. How have you bought your shares? When do you plan to sell your shares?

Stephen: Okay, good question. Firstly, I pay myself $10,000 a month. Very simple. In terms of founders' shares, there are zero founders' shares that I have received from Orefinders, or actually from any of the companies I'm involved with, and I'm involved with a few. So I have bought, with cash, every single share that I own, vis-a-vis on market or in a private placement. And I typically participate in every single private placement I'm involved with—not everyone, but most. So I am directly aligned with shareholders, in that sense.

Bill: If someone sees you selling in the open market, what should they think?

Stephen: They should sell too. Frankly, unless we have a tremendous success and we are multi-dollar stock, I don't believe that anybody sitting in my seat should be selling their shares while trying to convince the public that they should be buying those very same shares. That sends the wrong message. We are in this to make a discovery. We are in this to sell this company and make money, just like the rest of our shareholders.

And I'll note that I do pay myself, of course, a salary. I think I earn every penny of it. But I will also note that in the last number of years, I put more money into this company than my salary by quite a distance, I would imagine. I own about 5 million shares Orefinders.

Bill: So you're an investor even more so than an employee?

Stephen: Well, that's the only way I'm going to make money. I mean, nobody got rich off a salary. I'm in this business to make substantial money. And I think with Orefinders, we're in a good position to do that. So, $10,000 a month pays the rent, so to speak, but I'm here to make 10, 20, 50 times my money.

Bill: Stephen, when we spoke 18 months ago, I remember you sharing with me that your approach was to acquire assets. And at that time you weren't particularly focused on drilling because you just didn't feel like the market would reward that, and that, at that time, it wouldn't be in the best interest of shareholders.

However, when we spoke in February this year, your mentality and your outlook seemed to change. Can you talk to us now about what you've done in the last few years with Orefinders to set yourself up for what you're about to do right now?

Stephen: Sure. Well, you're absolutely right. From 2015 to December 2019, Orefinders had a very clear philosophy, which we were very forthright with investors. And we said, "We refuse to drill, all else equal." It just didn't provide the appropriate return on investment, which we seek, which starts at 10 times your money.

And also, the cost of capital was too high, meaning we had to give away 25%, 30% of our company to do any drill program of significance. So our share price was too low. And if you met or exceeded expectations, it was often met with the liquidity event.

Now, if you made a world-class discovery, like a Hemlo or a Voisey's Bay, that would have been superseded, but that's not really an investment proposition that we were interested in. We're most interested in mitigating the risk.

And so we saw the opportunity to take advantage of the market. The market was a down market, and we could buy other people's projects that they were having a hard time raising money for.

And so, Orefinders really developed this portfolio, we now have six assets. We accumulated them in a down market and perhaps more importantly, we accumulated them largely out of distressed, or call it unique, situations. We bought problems that we believe we can sell.

And now, if people go to our [Dec. 30, 2019] news release, we announced before gold really started to move. We felt that the pivot was in place. And what I mean by that, it was time to go back to the drill bit. We feel, and felt, that investors are going to start to pay for quality results and discovery.

And so we've developed this portfolio, we bought it cheap, and now we're cashing ourselves up. We've got $2 million in the treasury. We've got another probably $8 million in marketable securities. And we just announced a $2 million financing that's closing in a few weeks; that's going to give us a great position. And now it's all about putting the money into the ground and looking for that billion-dollar drill hole that we seek.

Bill: Great. I want to talk about the fundamental value in your company. So if I do just some quick back-of-the-napkin math, your market cap, as we speak is about $20 million, and your enterprise value would be about $10 million. Is that correct?

Stephen: That's fair to say with our cash. And if you strip out our cash and marketable securities, yes.

Bill: Okay. So with a $10 million enterprise value, let's first talk about your projects, your three projects, Knight, McGarry and Mirado. Where's the value currently, before you begin to drill these projects?

Stephen: Well, I guess you could say the value is retained in the ounces in the ground, and not all ounces are created equal, as we should know. However, each of those projects has 43-101 historical ounces in the neighborhood collectively, of about a million ounces. And you can attribute all sorts of different multiples on a per ounce basis.

But if you're going to attribute a million dollars relative, or a million ounces relative to our market cap, that's $10 an ounce, which is extremely low. So I think our enterprise value is quite attractive, at this point in time.

Bill: Then you also have three equity stakes in companies. Talk to us about this please.

Stephen: That's correct, we own three positions—I would say control block positions—one in Mistango River Resources (MIS:CNS.X), which we acquired vis-a-vis a hostile proxy battle that ended last year. And we've got a very exciting project in Kirkland Lake that we're going to be drilling extensively very soon; it's right beside all of Orefinders assets as well, so that's why we got attracted to that project. As well we have about an 9% position in a company called Power Ore (PORE:TSX.V). It owns a very sexy copper-gold, very large-scale mine that was operated by Falconbridge. They took out 1.5 billion pounds of copper; a million ounces of gold out of that. And we spun that off in 2018 because. . .we had a non-core asset that we weren't getting any value for—it was not a gold asset—and then went on to create that company.

And then last we've got a 26% interest in a company called Pacific Precious. Pacific Precious is a private company, and its planned IPO [initial public offering] is later this year, in Q4. It's led by a gentleman by the name of Ron Stewart. Ron is not related, we just happen to be from the same clan in Scotland, if you go back far enough, I suppose. But that focus is going to be in Nevada. It controls a project, right beside Barrick Gold Corp.'s (ABX:TSX; GOLD:NYSE) Goldrush, which is a monster deposit. And I think investors can anticipate that company to grow in terms of its portfolio in Nevada as well.

Bill: Okay, so you're raising $2 million. You'll have about $4 million in the treasury. How are you going to spend that to advance these projects?

Stephen: We're going to put as much of that into the ground as possible, as I said before, and as we said in December. We believe the time is now to put it into the ground and make a discovery. The accumulation of these assets was phase one. Now phase two is to drill.

And so, a couple of weeks ago, we put out a news release that we're going to be drilling our Knight project, which is just 60 kilometers west of Kirkland Lake. We've got 5,000 meters planned. I think investors can expect us to probably double that when we close this financing. So that'll be our first drill program. It's got a very attractive discovery drill target on it. We're going to put about 10% of those meters into [a] discovery target. It's sort of binary. If we hit it, it's going to be very interesting, potentially game-changing. If we miss it, it's no big deal.

The vast majority of those meters are going to go toward our Tyranite project, which is an existing high-grade mine, more traditional style. It's got very good historical intersects. Now we're going deeper and we're going laterally. So we're going to be expanding those resources. So, that's our first drill program on the Knight.

Then we'll subsequently pull the drill over to our McGarry project, which is about 20 kilometers west of Kirkland Lake, and it's beside the Kerr-Addison, which was a world-class, 12-million-ounce, high-grade producer. We have the same style of mineralization on there. Again, we'll have a sort of a two-pronged drill program approach. One is some. . .lower-hanging fruit on known mineralization, which is right beside the Kerr-Addison. We'll look to expand our existing resource there, which we have an eight-gram per ton resource there.

But also, [on] the McGarry, there's about a kilometer and a half of strike length on the Cadillac Break, which is a world-class fault, where all this gold in Kirkland Lake came from. It's really never been drilled. And so that's going to be the discovery aspect, and investors can expect us to come out with probably a 7,000- or 8,000-meter drill program toward the end of this year on that one as well. So, details to come forth on the McGarry.

And our last project is called Mirado. We've got about 450,000 ounces in an open pit there. We view that as having multimillion-ounce potential, but it's really just a function of drilling it out. Without getting too technical, it's just step-out drilling, but there's definitely potential to grow that.

And. . .I'll note that on our McGarry, our Knight and our Mirado. . .we have direct exposure to in Mistango—[all are] very proximal. They're all next-door neighbors. And that was by design, certainly not by accident.

I do believe that—and I've been vocal about this—mergers and acquisitions are inevitable in this industry, and Orefinders, Mistango and all of our properties have really put ourselves in front of what we see as a coming wave of mergers and acquisitions. Not that we're waiting on being bought out, far from it. We're going to go and drill our own properties and see what happens. But, we plan to make ourselves so attractive that the big guys, the guys that build mines and operate mines, just can't resist.

Bill: Stephen, speculators that focus on Canadian mining stocks will understand the significance, geologically and location-wise, of your projects and why it's so good. But perhaps [some] don't pay as much attention to Canada, or maybe they're newer to investing and speculating in mining stocks. You mentioned Kirkland Lake—can you elaborate a little more on the grade and the resource at Kirkland Lake and why where your projects are located is excellent?

Stephen: Sure. Well, Kirkland Lake can be defined as the third largest gold ore body in the history of the world. Not many people know that, but Kirkland Lake or Kirkland Lake Gold, the corporation, now mines the highest-grade mine in the world. It's called the Macassa, and the Macassa, next year, is going to be pulling out 400,000 gold ounces at nearly 20 grams per ton, which is just phenomenal.

And they've just made a new discovery there called the South Mine Complex, which they think is going to be putting that mine in operation for the next 30, 40 years. I mean, so who said mining is not sustainable? And so that is, I guess, the big dog in Kirkland Lake town; the Kirkland Lake mine.

Now, just about 20 kilometers to the east of that is something called the Kerr-Addison, and I mentioned that before. We're right beside that on the McGarry. That mine was also, in its day, world-class.

And these two mines really are the goalposts of the Cadillac Break on the Ontario side, which is by no exaggeration is a world-class fault system—which is just a crack in the earth where this hydrothermal fluid carrying the gold can seep into and deposit this gold over millions of years.

There is another orebody lurking in between those two world-class monsters. And we are the third largest landowner collectively in that region, between those two projects, aside from Kirkland Lake Gold, themselves multi-billion dollar company, as well as Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), the other major in the area. So those are the two big dogs and then it's us. So we think we are phenomenally well positioned.

Bill: I also think it's unique that at your McGarry project, you own a tailings facility right next to the Kerr-Addison. So as I was going through your presentation, the word that came to mind was "ransom." It's almost like you have a ransom on that project, don't you?

Stephen: Well, I don't know if I'd use that word, but certainly strategic would be the word that would come to mind. The Kerr-Addison itself right now, as I said, is shut down. It was a high-grade underground mine in 1996, but it has been reinterpreted into an open pit-type of a deposit. . .It's a big deposit too. So that's going to get a lot of attention. And, as you know. . .Orefinders owns the tailings facility on its McGarry project. That is not an insignificant fact.

So it is my belief that whoever buys the Kerr-Addison—and somebody is going to buy the Kerr-Addison, somebody large I think—they are going to require our property because they need to put that waste material somewhere. Now, again, that's not our strategy, but that's a nice card to have in our back pocket.

However, the McGarry, I think, offers the potential to discover its own Kerr-Addison 2.0 on it. And that's ultimately why we're there. We're not there to be in a blocking position. We're there to discover an ore body and sell it to the highest bidder. But if having the tailings facility is a plus, well, then we have that plus.

Bill: What about Mistango River Resources, one of your equity positions. Eric Sprott invested in this company as well. Talk to us about the prospectivity that the Orefinders investors would get through the stake in Mistango.

Stephen: Orefinders owns 20% of Mistango, and you're right, Mr. Sprott came in. Actually, he came in on four separate occasions this year, two times into Orefinders and two times into Mistango.

And Mistango has $4 million in its treasury right now. It announced a $3 million financing, contemporaneously; it announced the same day as the Orefinders. It's a broker deal done by Echelon, and we've got large institutional names coming in. And I certainly hope Mr. Sprott is going to come in again—we'll make that announcement at close.

And it is going to be drilling. It is in the process of defining a very substantial drill program on its Eby-Baldwin project, which is directly beside the Macassa mine—which I told you about; that 400,000-ounce per year, 20-gram per ton gold deposit that Kirkland Lake Gold owns. The Eby-Baldwin, owned by Mistango 100%; it's right there.

We believe it's the same geologic setting, and it's well financed to go and find a discovery on its own. What Mistango is seeking [are] a couple of intersections to prove that that Kirkland Lake orebody, which I mentioned—which has been mined for nearly 100 years, and is the third largest gold orebody in the world—we are trying to prove that it continues to go west onto our property.

And when I say continue, I mean, the Macassa is one of seven mines in history [that] have extracted from this ore body. We believe that Mistango has the eighth, and we will, come closing this financing, have $7 million worth of drilling to go out there and prove it. If we do, then, oh boy, is that 20% that Orefinders owns going to be worth an awful lot.

Bill: And Pacific Precious—if you could give us your commentary on the speculative upside.

Stephen: What's going to happen there is that Orefinders owns 10 million shares. It's going to dividend out at least 5 million of those directly to our shareholders as a part of the IPO process. So Orefinders shareholders can expect a zero cost-basis dividend coming to them by the end of the year.

It owns a project called the Golden Trend, which is again, contiguous. . .I guess we like contiguous projects. . .but this project is contiguous to Gold Rush, which is nearly a 15-million gold ounce, 10-gram per ton, monster deposit owned by Nevada Gold Mines, which is the joint venture between Barrick and Newmont Corp. (NEM:NYSE). This is a monster mine. We believe we are in the same geological context; this is in the Cortez Trend. It is really the Beverly Hills 90210 zip code to be in for gold mining.

So, that is a very prospective project that Pacific Precious is going to raise money for in the very near term, and put some holes in there and try to find a deposit. In addition to that, you can expect the leadership, led by Ron Stewart, to go out and acquire additional projects.

We love Nevada. Well, we love. . .First all, I love Ontario; I love Quebec. There's no better place to do business. If we're going to do business anywhere else, it would be in Nevada. And so that's giving us, and Orefinders shareholders, direct exposure to Nevada.

Bill: With an enterprise value of about CAD$10 million, just with the funda

mental value within the company, I find that compelling before the speculative blue-sky potential. And then Stephen, just to recap here with your position in Pacific Precious, Mistango, and the three projects, how many projects will be drilled, let's say, within the next six months, and potentially more value created?

Stephen: I think, once we close this financing, we're going to be drilling in just a matter of days. I don't anticipate we'll stop drilling for the next six to nine months. That's my plan.

So we're going to start drilling on the Knight. We're probably going to double that to 10,000 meters. We're going to have at least 6,000 to 8,000 meters on McGarry. And then, last, we're going to drill our Mirado project, which was our first project, but certainly doesn't deserve to be mentioned last.

Those three projects are going to get an awful lot of attention. As I said off the top, we spent an awful lot of work putting together this portfolio, with the idea that when the time is right, we're going to raise money and put it into the ground, and the time is now. And so our shareholders can expect us to do exactly what we said we're going to do. And we'll see if Mother Nature cooperates.

Bill Powers is the host of the Mining Stock Education podcast that interviews many of the top names in the natural resource sector and profiles quality mining investment opportunities. Powers is an avid resource investor with an entrepreneurial background in sales, management and small business development. His latest interviews can be found at MiningStockEducation.com.

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Junior Copper Miner Sees 600% Increase in Value Since March

Source: Maurice Jackson for Streetwise Reports   09/05/2020

In conversation with Maurice Jackson of Proven and Probable, Tim Johnson, the CEO of Granite Creek Copper, explains what’s behind the company’s increased valuation, and looks ahead to additional growth opportunities.

Maurice Jackson: Joining us for a conversation is Tim Johnson of Granite Creek Copper Ltd. (GCX:TSX.V).

Always a pleasure to speak with you, sir. Before we get in today’s conversation, I would be remiss if I didn’t highlight, underscore and foot stomp the success of Granite Creek Copper share price. You are up 600% since March 23, and we haven’t even discussed today’s press release, which may further increase the shareholder value. Why has the market been so upbeat about Granite Creek Copper, sir?

Tim Johnson: I think a lot of it has to do with recent action in the metal prices. We, in the copper space, have been waiting quite a while for the move that copper’s made in the past few weeks. That’s helped us. And our position, where we are on the planet, we are in one of the best jurisdictions for mineral development in the world. The Yukon is a great place to operate. And I think those things combined and the fact that we’re doing something, we’ve got people on the ground, all those things have helped us move our share price to where it is today.

Maurice Jackson: Mr. Johnson, I referenced that GCX is looking to further increase your shareholder value. And this time it’s through a strategic acquisition with one of your neighbors, Copper North Mining Corp., to increase your footprint in the highly prolific Minto Copper District, where you have your flagship Stu Copper Project. What can you share with us?

Tim Johnson: We’ve just announced an offer to acquire all the issued and outstanding shares of Copper North. We already owned 30% of those shares, which we acquired in December last year. This is a further acquisition. GCX sees this as a very interesting strategic move, as a consolidation of the second largest land position within the highly prospective Minto Copper Belt. There will only be two of us in the belt. There’ll be us, and the Minto Mine just to the north of us, about 30 kilometers away. We’re quite excited about that.

What this allows us to do is to combine a preliminary economic assessment-stage project, and the Carmacks Project owned by Copper North, with our highly prospective ground on the Stu Project. The combined land package is going to be about 176 square kilometers, good road access, good access to infrastructure like power. So we’re pretty excited about snapping the two projects together.

Maurice Jackson: Expand on that for us—on some of the common synergies that you will share with the Carmacks deposit there. You talked about infrastructure.

Tim Johnson: Right now, to access our Stu Project, you’d go through the Carmacks Project right through up to ours. That’s an advantage that we’ve already got, built out road access all the way through to most parts of our property. We share the geology for both projects. There’s high-grade pods of copper and some of them we suspect cross the current claim boundary. So exploration can open up now that these two properties are going to be put together. And we can determine if there are resources right there across the boundaries, and we don’t have to be shy about drilling right up to the claim boundary. We can just keep drilling right across it.

Maurice Jackson: How will this acquisition of Copper North enhance the economics of the Stu Copper Project?

Tim Johnson: Well, it’s great creating the potential for a significant contained copper project. Currently, the Carmacks deposit, on an oxide and sulfide combined basis, has somewhere around 500 million pounds of copper. We believe we have the ground on the Stu Project to significantly grow that resource. Our target is over 1 billion pounds. So what we want to do now is go back and see the areas that we can quickly drill off resources, to try to reach that target.

Maurice Jackson: As a shareholder, this is encouraging news. If we expand and include the narrative on the entire copper space, and when you include the strategic advantage that you have with oxide versus sulfide on the Stu, can you just expand on that for us?

Tim Johnson: Yeah. That’s an interesting point that you bring up. The Carmacks deposit, again, currently owned by Copper North and we’re acquiring it, has a preliminary economic assessment that contemplates a seven-year mine of oxide only. Now underlying that oxide resource there is significant potential for a large sulfide resource. And then on our Stu property, just across the claim boundary, we have both oxide and sulfide.

So when you start to put these together, you can see there are two very interesting development paths. You develop that oxide resource, and once you’ve gone down through that, and you’re into the sulfide resource, you either look at developing that, or you look at other players in the belt who have a sulfide mill just to the north of us. So it opens up a whole range of ways that we can develop those two resources. And we’re pretty excited about that.

Maurice Jackson: Does Granite Creek plan on conducting drilling this year?

Tim Johnson: We do. It is going to be a bit challenging. We’re getting late in the season. And with the ramp-up of exploration in the Yukon, crews are hard to find. We do have a drill potentially for mid- to late September, and we’re working on the logistics of getting all that together. Yes: if we can, if all the pieces fall in place, we do want to drill this fall yet.

Maurice Jackson: Oh, that’s exciting. All right, sir. What is the next unanswered question for Granite Creek Copper? When can we expect a response and what determines success?

Tim Johnson: Well, I’ll remind readers that we did do a program this summer, where we re-assayed a bunch of the historical core in the Stu Project from our A Zone. This was a program that had been drilled in 1980. There had been limited assays done on that core, and it wasn’t a full spectrum assay. They only assayed for the copper and the precious metals weren’t a complete assay. We expect results back from that very soon. Once we can collate those results, and get those out to the market, I think that’s going to be interesting, and that’s going to inform us on what we need to do to publish resources on our A Zone. And when then we combine those with the Carmacks Resources, we think is going to be a very compelling story.

Maurice Jackson: Last question, sir. What did I forget to ask?

Tim Johnson: Well, you touched on it, and that’s the macroeconomics of the copper space. We see a shortfall in the near term and probably for a significant number of years out. I think $3 copper is only the beginning.

As the world moves towards electrification, there’s no substitute for copper. Even if you look at the battery metal space, where everybody’s arguing about whether they should be more nickel or more cobalt or what the battery chemistry it is, for copper, it doesn’t matter. The more battery-operated cars there are in a world, the more copper we’re going to need. And the more energy storage there is in the world, the more copper we’re going to need. It’s going to be a really exciting space to be in.

I won’t predict the copper price, but I think it’s definitely moving up from here. Like I said, I think $3 is only a start.

Maurice Jackson: We’ve highlighted this in the past, but the world is going to consume more copper in the next 25 years than all of recorded history. And it’s prudent for investors to take this opportunity, to find companies that have a strong foothold in the copper space with proven management, and you have it right here in Granite Creek Copper and Tim Johnson. Mr. Johnson, before we close please share the website address Granite Creek Copper.

Tim Johnson: www.gcxcopper.com

Maurice Jackson: Mr. Johnson, it’s been a real pleasure speaking with you today, sir. Wishing you and Granite Creek Copper the absolute best, sir.

Proven and Probable: Where we deliver mining insights and bullion sales. I’m a licensed broker for Miles Franklin Precious Metals Investments, where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories and precious metals IRAs. Call me directly at (855) 505-1900 or you may e-mail maurice@milesfranklin.com.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Granite Creek Copper. 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: Granite Creek Copper is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Granite Creek Copper, a company mentioned in this article.

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( Companies Mentioned:
GCX:TSX.V,
)

Source: Maurice Jackson for Streetwise Reports   09/05/2020

In conversation with Maurice Jackson of Proven and Probable, Tim Johnson, the CEO of Granite Creek Copper, explains what's behind the company's increased valuation, and looks ahead to additional growth opportunities.

Maurice Jackson: Joining us for a conversation is Tim Johnson of Granite Creek Copper Ltd. (GCX:TSX.V).

Always a pleasure to speak with you, sir. Before we get in today's conversation, I would be remiss if I didn't highlight, underscore and foot stomp the success of Granite Creek Copper share price. You are up 600% since March 23, and we haven't even discussed today's press release, which may further increase the shareholder value. Why has the market been so upbeat about Granite Creek Copper, sir?

Tim Johnson: I think a lot of it has to do with recent action in the metal prices. We, in the copper space, have been waiting quite a while for the move that copper's made in the past few weeks. That's helped us. And our position, where we are on the planet, we are in one of the best jurisdictions for mineral development in the world. The Yukon is a great place to operate. And I think those things combined and the fact that we're doing something, we've got people on the ground, all those things have helped us move our share price to where it is today.

Maurice Jackson: Mr. Johnson, I referenced that GCX is looking to further increase your shareholder value. And this time it's through a strategic acquisition with one of your neighbors, Copper North Mining Corp., to increase your footprint in the highly prolific Minto Copper District, where you have your flagship Stu Copper Project. What can you share with us?

Tim Johnson: We've just announced an offer to acquire all the issued and outstanding shares of Copper North. We already owned 30% of those shares, which we acquired in December last year. This is a further acquisition. GCX sees this as a very interesting strategic move, as a consolidation of the second largest land position within the highly prospective Minto Copper Belt. There will only be two of us in the belt. There'll be us, and the Minto Mine just to the north of us, about 30 kilometers away. We're quite excited about that.

What this allows us to do is to combine a preliminary economic assessment-stage project, and the Carmacks Project owned by Copper North, with our highly prospective ground on the Stu Project. The combined land package is going to be about 176 square kilometers, good road access, good access to infrastructure like power. So we're pretty excited about snapping the two projects together.

Maurice Jackson: Expand on that for us—on some of the common synergies that you will share with the Carmacks deposit there. You talked about infrastructure.

Tim Johnson: Right now, to access our Stu Project, you'd go through the Carmacks Project right through up to ours. That's an advantage that we've already got, built out road access all the way through to most parts of our property. We share the geology for both projects. There's high-grade pods of copper and some of them we suspect cross the current claim boundary. So exploration can open up now that these two properties are going to be put together. And we can determine if there are resources right there across the boundaries, and we don't have to be shy about drilling right up to the claim boundary. We can just keep drilling right across it.

Maurice Jackson: How will this acquisition of Copper North enhance the economics of the Stu Copper Project?

Tim Johnson: Well, it's great creating the potential for a significant contained copper project. Currently, the Carmacks deposit, on an oxide and sulfide combined basis, has somewhere around 500 million pounds of copper. We believe we have the ground on the Stu Project to significantly grow that resource. Our target is over 1 billion pounds. So what we want to do now is go back and see the areas that we can quickly drill off resources, to try to reach that target.

Maurice Jackson: As a shareholder, this is encouraging news. If we expand and include the narrative on the entire copper space, and when you include the strategic advantage that you have with oxide versus sulfide on the Stu, can you just expand on that for us?

Tim Johnson: Yeah. That's an interesting point that you bring up. The Carmacks deposit, again, currently owned by Copper North and we're acquiring it, has a preliminary economic assessment that contemplates a seven-year mine of oxide only. Now underlying that oxide resource there is significant potential for a large sulfide resource. And then on our Stu property, just across the claim boundary, we have both oxide and sulfide.

So when you start to put these together, you can see there are two very interesting development paths. You develop that oxide resource, and once you've gone down through that, and you're into the sulfide resource, you either look at developing that, or you look at other players in the belt who have a sulfide mill just to the north of us. So it opens up a whole range of ways that we can develop those two resources. And we're pretty excited about that.

Maurice Jackson: Does Granite Creek plan on conducting drilling this year?

Tim Johnson: We do. It is going to be a bit challenging. We're getting late in the season. And with the ramp-up of exploration in the Yukon, crews are hard to find. We do have a drill potentially for mid- to late September, and we're working on the logistics of getting all that together. Yes: if we can, if all the pieces fall in place, we do want to drill this fall yet.

Maurice Jackson: Oh, that's exciting. All right, sir. What is the next unanswered question for Granite Creek Copper? When can we expect a response and what determines success?

Tim Johnson: Well, I'll remind readers that we did do a program this summer, where we re-assayed a bunch of the historical core in the Stu Project from our A Zone. This was a program that had been drilled in 1980. There had been limited assays done on that core, and it wasn't a full spectrum assay. They only assayed for the copper and the precious metals weren't a complete assay. We expect results back from that very soon. Once we can collate those results, and get those out to the market, I think that's going to be interesting, and that's going to inform us on what we need to do to publish resources on our A Zone. And when then we combine those with the Carmacks Resources, we think is going to be a very compelling story.

Maurice Jackson: Last question, sir. What did I forget to ask?

Tim Johnson: Well, you touched on it, and that's the macroeconomics of the copper space. We see a shortfall in the near term and probably for a significant number of years out. I think $3 copper is only the beginning.

As the world moves towards electrification, there's no substitute for copper. Even if you look at the battery metal space, where everybody's arguing about whether they should be more nickel or more cobalt or what the battery chemistry it is, for copper, it doesn't matter. The more battery-operated cars there are in a world, the more copper we're going to need. And the more energy storage there is in the world, the more copper we're going to need. It's going to be a really exciting space to be in.

I won't predict the copper price, but I think it's definitely moving up from here. Like I said, I think $3 is only a start.

Maurice Jackson: We've highlighted this in the past, but the world is going to consume more copper in the next 25 years than all of recorded history. And it's prudent for investors to take this opportunity, to find companies that have a strong foothold in the copper space with proven management, and you have it right here in Granite Creek Copper and Tim Johnson. Mr. Johnson, before we close please share the website address Granite Creek Copper.

Tim Johnson: www.gcxcopper.com

Maurice Jackson: Mr. Johnson, it's been a real pleasure speaking with you today, sir. Wishing you and Granite Creek Copper the absolute best, sir.

Proven and Probable: Where we deliver mining insights and bullion sales. I’m a licensed broker for Miles Franklin Precious Metals Investments, where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories and precious metals IRAs. Call me directly at (855) 505-1900 or you may e-mail maurice@milesfranklin.com.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Granite Creek Copper. 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: Granite Creek Copper is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Granite Creek Copper. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Granite Creek Copper. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Granite Creek Copper, a company mentioned in this article.

Disclosures for Proven and Probable: Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

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( Companies Mentioned: GCX:TSX.V, )

Junior Precious Metals Opportunities for the Last Quarter of 2020

Source: Michael Ballanger for Streetwise Reports   09/04/2020

Sector expert Michael Ballanger provides a Special Situations report on junior explorers and developers he expects will experience exponential growth in this precious metals bull market.

It was in the last week of November 2015 that I witnessed a never-before-beheld event in the quantitative world of gold and silver analysis: Commercial traders were actually “long” gold futures for the first time since 2001, after being net short for nearly a decade and a half. With the price down from the August 2011 intraday peak of US$1,923.70/ounce, a new bull market in gold and silver was born and while it had been a fitful ride up until a few short months ago, we are now fully ensconced in the biggest bull market in the history of the modern markets, fueled largely by profligate fiscal and monetary policies the world over.

To recap the events of the last eight months, the gold market actually got its cue not from the sovereign and central bank responses to the pandemic, but rather the policy “pivot” seen in August 2019, when the U.S. Fed launched a series of massive REPO actions designed to add liquidity to treasury markets.

The big advance in September 2019 kicked off the move, which, while temporarily delayed by the COVID crash in March, has now blossomed into new highs in gold bullion. Yet, multiyear highs in silver, and the gold and silver miners have yet to materialize. Herein lies the base case I am making for ownership of the junior developers and the micro-cap explorers; the developers with defined resources (“ounces in the ground”) have only recently begun to outperform their intermediate and senior brethren (GDX/GDXJ).

After forty-odd years of combing list after list of junior mining investment candidates, I have learned through multitudinous scar tissue that the first criterion upon which to rely is management. Whether it was Paul Penna (Agnico Eagle Mines Ltd. [AEM:TSX; AEM:NYSE]) in the 1980s, Robert Freidland (Voisey’s Bay) in the 1990s, Ross Beatty (Pan American Silver Corp. [PAAS:TSX; PAAS:NASDAQ]) in the 2000s or Michael Williams (Aftermath Silver Ltd. [AAG:TSX.V]) in 2020, the driver of the junior mining “bus” remains the key determinant in one’s odds of making good money.

It is the operator that drives value, and while there are two dominant female deities (Mother Nature and Lady Luck) that ultimately tilt the scales, they rarely even glance at questionable projects run by shady promoters. The best way of assessing any opportunity is to see who is promoting it, because the operator knows what will fly and what will be stuck on the ground. The most thorough due diligence conducted is usually that which was done by management long before you or I have heard about it. For this reason, the operator rules the roost.

Categories

There are two distinctly different categories of junior company to look at and each carries a wide dispersion of risk. By way of the term “junior,” I am already taking on risk, but developmental risk is a far cry more manageable than exploration risk, so I have broken down this Special Situations report to separate developers and explorers. As you will read, developers can also be explorers, but the reverse is not true until the explorer has made its initial discovery.

The art form that is selecting which explorers to speculate upon is an entirely new enterprise but still rests on the geologist, or the team of same, directing the exploration efforts. As in the case of the operator, it is the track record of the geologist that provides the clue and since there have been few new large discoveries since we entered the new millennium, it is a daunting task in investment navigation.

“The List”

Developers

Getchell Gold Corp. (GTCH:CSE) (CA$0.475 / US$0.365/share)

The base case for Getchell lies in their 2019 acquisition of the Fondaway Canyon asset where prior work confirmed the presence of 1,069,000 ounces of gold, comprised of 409,000 indicated and 660,000 inferred. The compelling case for investment is valuation, as the value-per-ounce of Getchell’s market capitalization is vastly understated. Assuming that all options and warrants were to be exercised (injecting approximately USD$4.5 million in new working capital into the treasury), the fully diluted issued capital lies at 92,782,619 shares outstanding. Using the Aug. 31 closing price of US$0.365/share, Getchell is valued at US$33,865,655. Dividing that figure by the indicated and inferred resource of 1,069,000 ounces, one arrives at US$31.67 per ounce.

In 2017, with gold prices at around $1,250 per ounce, Cipher Research Report of Vancouver determined that an ounce “in the ground” was worth US$40, but recent comments by industry analysts have now declared a new valuation paradigm based upon the higher gold price. That valuation has a range of US$80/ounce to as high as US$250/ounce, with the differential being variable, like ease of extraction, jurisdictional risk and infrastructure.

Taking the lower end of the range at US$80, Getchell should be valued at US$85,520,000 or US$0.9218 per share, a 252% upside thrust from its recent price. One might argue that an open pit operation (“ease of extraction”) located in Nevada (“jurisdictional risk” zero), with roads, water, power and educated labor force (“infrastructure”) everywhere around them justifies a value-per-ounce closer to the higher end of the valuation range. At $250 per ounce, Getchell would be approaching US$3 per share.

That covers the minimum valuation projection for Getchell with no provision for a revised resource estimate nor exploration potential. The company is launching a 5,000-meter drill program into the Tenneco Drift, Pack Rat, Colorado and Pediment zones this month, into areas known to contain gold-bearing mineralization but never included in any resource calculations in the past. By example, drilling by Tenneco encountered up to 16-gram Au material over a half dozen holes and over decent widths, and while it was spectacular in grade, subsequent work programs excluded that zone. In the Pack Rat zone, 68 meters of 2.69 g/t Au (US$170/t rock) was reported but never included in any of the resource calculations. Needless to say, there exists significant potential for an increase in ounces through exploration.

Also noteworthy is the cut-off grade (COG) used to identify ore in the arrival at 1,069,000 ounces Au: a COG of 3.43 g/t Au was used back in 2017 (gold at $1,250), which most certainly would have excluded a substantial body of mineralization where grades were above 1 g/t but below 3.43 g/t. Most resource calculations in 2020 use a COG as low as 0.5 g/t Au, largely because the value of the ore is so much greater today at $2,000 Au than it was even three years ago.

It is my conservative estimate that after the discovery of new gold-bearing zones through exploration and the inclusion of known gold-bearing zones through the revised resource estimate (and lowered COG), Fondaway Canyon will boast a 2- to 3-million-ounce, NI-43-101-compliant resource. The lift in the stock price will come from a) rising gold prices, b) a revised value/ounce level, c) a larger resource from reranking (lower COG), and d) exploration success. The only one of the four valuation drivers that is speculative is d) exploration; the rest are predictable and quantifiable.

2020 target = US$0.92 / 2021 target = US$3.00

Mexican Gold Mining Corp. (MEX:TSX.V) (CA$0.14 / US$0.1296/share)

This is yet another developer located in a favorable jurisdiction (Mexico) with a resource of 862,000 ounces of gold comprised of 645,000 ounces Indicated and 217,000 ounces Inferred, with intention of delivering a preliminary economic analysis (PEA) for both the El Dorado and Santa Cruz properties. They also have two advanced exploration targets in Cinco Senores and Changarro, with work scheduled for H2/2020.

The common thread here is valuation, as with 173,717,391 shares outstanding (fully diluted) and a market cap of US$18.56 million, Mexican Gold carries a value-per-ounce of US$28.09. At US$80/ounce, the resource would be valued at US$68,960,000 or US$0.398, giving investors a 307% lift to arrive at fair value.

CEO Philip O’Neill is the operator and comes with a solid track record of accomplishment as well as a decent institutional following.

2020 target = US$0.25 / 2021 target = US$0.40 (subject to revision)

Vendetta Mining Corp. (VTT:TSX.V) (CA$0.08 / US$0.066/share)

This is a base metal play that a few years back was the darling of the zinc-lead cheerleaders—until the price of zinc does what it always does: crash. I wrote about the dangers of any market controlled by the Chinese and that is exactly what happened in 2018 after zinc topped in the US$1.60/lb. range.

The Pegmont lead-zinc deposit went through a successful PEA process in 2018 and if base metal prices can recover to 2018 levels in early 2021, VTT should be a good proxy for this space.

However, I believe that chairman Michael Williams (Aftermath Silver) will be in the hunt for another silver asset to fortify the Vendetta story and that is the rationale for ownership. You cannot get a better steward than Williams and looking no further than Aftermath is the key.

2020 target = US $0.20 / 2021 target = US$0.50

Explorers

Norseman Silver Ltd. (NOC:TSX.V) (CAD $0.28; U.S. quote symbol expected shortly; no chart available)

The company recently moved from Tier 3 to Tier 2 on the TSX Venture Exchange, having announced the option agreements to acquire two highly prospective silver assets, Cariboo and Silver Switchback, located in northern British Columbia, Canada. Located in the Stikine terrain, the Silver Switchback carries an outcrop containing over 4% copper and 138 g/t silver, which will be investigated during upcoming work programs. Acquisitions of silver-bearing development and exploration projects are the corporate mission statement for the company, as well as fortifying the board of directors with strong team members.

There are several corporate developments on the horizon that could vault NOC into the forefront as a nascent silver producer and when achieved, above average appreciation is expected.

2020 target = CA$0.50 / 2021 target: To be determined

Megastar Development Corp. (MDV:TSX.V; MSTXF:OTC; M5QN:FSE) (CA$0.155 / US$0.1296; no chart available)

I recently finished a conversation with an individual close to the ground on this one, and learned that the main driver behind this company is major shareholder and CEO/geologist David Jones.

I subsequently had a conversation with David and after my many years investing in Mexican mining deals dating back to 1991, I can tell you that this famous mine finder is at the front end of most conversations regarding recent Mexican gold/silver discoveries. His discoveries include the Switchback Mine (Gold Resource Corp. [GORO:NYSE.American]), Los Filos (Teck Resources Ltd. [TCK:TSX; TCK:NYSE]; 1995), El Limon-Guajes (1998), and Cayden (sold to AGE for US$205 million).

The two primary projects are Yautepec and Magdalena, both collapsed calderas (volcanoes), which will both see work in the next sixty days. David is extremely “high” on the early geochemistry for both properties, located adjacent to one another and within the Oaxaca Au-Ag Polymetallic Belt, situated in the eponymous southern state. The presence of plentiful pathfinder minerals is the key attraction and consistent with his other successes in the region.

He and his fellow insiders control a large portion of the issued capital (well over 20%) in MDV.

Corporate presentation

2020 target = CA$0.35/US$0.2683 / 2021 target: To be determined (subject to revision)

Other Candidates for Consideration

Goldcliff Resource Corp. (GCN:TSX.V; GCFFF:OTCBB) (CA$0.085 / US$0.069)
News pending on additional deals to fortify land package; excellent share structure; stand-up CEO and major shareholder (George Sanders)

Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) (CA$0.78 / US$0.5912)
This company remains my sole proxy for the long-awaited turnaround in the U.S. domestic uranium industry.

ArcWest Exploration Inc. (AWX:TSX.V) (CA$0.16 / US$0.1224)
A project generator with a big land package in B.C.’s Golden Triangle, the upcoming drill program on the Todd Creek Project could be a game-changer.

Conclusions

This is the “sneak peak” list available to everyone. The more detailed analysis of each of these names is for subscribers only. The GGM Advisory service will be following these and many other junior development and exploration stories in 2020 and beyond. While the service does not deal exclusively with juniors, the explosive nature of the precious metals markets looking out to 2021 will undoubtedly demand close attention to the micro-cap space because of the inherent leverage contained herein.

Please feel free to contact me at miningjunkie216@outlook.com for further information on the service and follow me on Twitter @MiningJunkie where I post from time to time.

Originally published Sept. 1, 2020.

Follow Michael Ballanger on Twitter @MiningJunkie.

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.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Aftermath Silver, Getchell Gold, Megastar Development, Goldcliff Resource Corp., Western Uranium & Vanadium Corp. Norseman Silver Ltd. My company charges or has charged in the past consulting fees to the following companies referred to in this article: Aftermath Silver, Getchell Gold, Norseman Silver, Megastar Development, Goldcliff Resource Corp., Western Uranium & Vanadium Corp. 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: Goldcliff Resource Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Megastar Development. Please click here for more information.
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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aftermath Silver, Megastar Development, Goldcliff Resource, Western Uranium and Vanadium, companies mentioned in this article.

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: AAG:TSX.V,
AWX:TSX.V,
GTCH:CSE,
GCN:TSX.V; GCFFF:OTCBB,
MDV:TSX.V; MSTXF:OTC; M5QN:FSE,
MEX:TSX.V,
NOC:TSX.V,
VTT:TSX.V,
WUC:CSE; WSTRF:OTCQX,
)

Source: Michael Ballanger for Streetwise Reports   09/04/2020

Sector expert Michael Ballanger provides a Special Situations report on junior explorers and developers he expects will experience exponential growth in this precious metals bull market.

It was in the last week of November 2015 that I witnessed a never-before-beheld event in the quantitative world of gold and silver analysis: Commercial traders were actually "long" gold futures for the first time since 2001, after being net short for nearly a decade and a half. With the price down from the August 2011 intraday peak of US$1,923.70/ounce, a new bull market in gold and silver was born and while it had been a fitful ride up until a few short months ago, we are now fully ensconced in the biggest bull market in the history of the modern markets, fueled largely by profligate fiscal and monetary policies the world over.

To recap the events of the last eight months, the gold market actually got its cue not from the sovereign and central bank responses to the pandemic, but rather the policy "pivot" seen in August 2019, when the U.S. Fed launched a series of massive REPO actions designed to add liquidity to treasury markets.

The big advance in September 2019 kicked off the move, which, while temporarily delayed by the COVID crash in March, has now blossomed into new highs in gold bullion. Yet, multiyear highs in silver, and the gold and silver miners have yet to materialize. Herein lies the base case I am making for ownership of the junior developers and the micro-cap explorers; the developers with defined resources ("ounces in the ground") have only recently begun to outperform their intermediate and senior brethren (GDX/GDXJ).

After forty-odd years of combing list after list of junior mining investment candidates, I have learned through multitudinous scar tissue that the first criterion upon which to rely is management. Whether it was Paul Penna (Agnico Eagle Mines Ltd. [AEM:TSX; AEM:NYSE]) in the 1980s, Robert Freidland (Voisey's Bay) in the 1990s, Ross Beatty (Pan American Silver Corp. [PAAS:TSX; PAAS:NASDAQ]) in the 2000s or Michael Williams (Aftermath Silver Ltd. [AAG:TSX.V]) in 2020, the driver of the junior mining "bus" remains the key determinant in one's odds of making good money.

It is the operator that drives value, and while there are two dominant female deities (Mother Nature and Lady Luck) that ultimately tilt the scales, they rarely even glance at questionable projects run by shady promoters. The best way of assessing any opportunity is to see who is promoting it, because the operator knows what will fly and what will be stuck on the ground. The most thorough due diligence conducted is usually that which was done by management long before you or I have heard about it. For this reason, the operator rules the roost.

Categories

There are two distinctly different categories of junior company to look at and each carries a wide dispersion of risk. By way of the term "junior," I am already taking on risk, but developmental risk is a far cry more manageable than exploration risk, so I have broken down this Special Situations report to separate developers and explorers. As you will read, developers can also be explorers, but the reverse is not true until the explorer has made its initial discovery.

The art form that is selecting which explorers to speculate upon is an entirely new enterprise but still rests on the geologist, or the team of same, directing the exploration efforts. As in the case of the operator, it is the track record of the geologist that provides the clue and since there have been few new large discoveries since we entered the new millennium, it is a daunting task in investment navigation.

"The List"

Developers

Getchell Gold Corp. (GTCH:CSE) (CA$0.475 / US$0.365/share)

The base case for Getchell lies in their 2019 acquisition of the Fondaway Canyon asset where prior work confirmed the presence of 1,069,000 ounces of gold, comprised of 409,000 indicated and 660,000 inferred. The compelling case for investment is valuation, as the value-per-ounce of Getchell's market capitalization is vastly understated. Assuming that all options and warrants were to be exercised (injecting approximately USD$4.5 million in new working capital into the treasury), the fully diluted issued capital lies at 92,782,619 shares outstanding. Using the Aug. 31 closing price of US$0.365/share, Getchell is valued at US$33,865,655. Dividing that figure by the indicated and inferred resource of 1,069,000 ounces, one arrives at US$31.67 per ounce.

In 2017, with gold prices at around $1,250 per ounce, Cipher Research Report of Vancouver determined that an ounce "in the ground" was worth US$40, but recent comments by industry analysts have now declared a new valuation paradigm based upon the higher gold price. That valuation has a range of US$80/ounce to as high as US$250/ounce, with the differential being variable, like ease of extraction, jurisdictional risk and infrastructure.

Taking the lower end of the range at US$80, Getchell should be valued at US$85,520,000 or US$0.9218 per share, a 252% upside thrust from its recent price. One might argue that an open pit operation ("ease of extraction") located in Nevada ("jurisdictional risk" zero), with roads, water, power and educated labor force ("infrastructure") everywhere around them justifies a value-per-ounce closer to the higher end of the valuation range. At $250 per ounce, Getchell would be approaching US$3 per share.

That covers the minimum valuation projection for Getchell with no provision for a revised resource estimate nor exploration potential. The company is launching a 5,000-meter drill program into the Tenneco Drift, Pack Rat, Colorado and Pediment zones this month, into areas known to contain gold-bearing mineralization but never included in any resource calculations in the past. By example, drilling by Tenneco encountered up to 16-gram Au material over a half dozen holes and over decent widths, and while it was spectacular in grade, subsequent work programs excluded that zone. In the Pack Rat zone, 68 meters of 2.69 g/t Au (US$170/t rock) was reported but never included in any of the resource calculations. Needless to say, there exists significant potential for an increase in ounces through exploration.

Also noteworthy is the cut-off grade (COG) used to identify ore in the arrival at 1,069,000 ounces Au: a COG of 3.43 g/t Au was used back in 2017 (gold at $1,250), which most certainly would have excluded a substantial body of mineralization where grades were above 1 g/t but below 3.43 g/t. Most resource calculations in 2020 use a COG as low as 0.5 g/t Au, largely because the value of the ore is so much greater today at $2,000 Au than it was even three years ago.

It is my conservative estimate that after the discovery of new gold-bearing zones through exploration and the inclusion of known gold-bearing zones through the revised resource estimate (and lowered COG), Fondaway Canyon will boast a 2- to 3-million-ounce, NI-43-101-compliant resource. The lift in the stock price will come from a) rising gold prices, b) a revised value/ounce level, c) a larger resource from reranking (lower COG), and d) exploration success. The only one of the four valuation drivers that is speculative is d) exploration; the rest are predictable and quantifiable.

2020 target = US$0.92 / 2021 target = US$3.00

Mexican Gold Mining Corp. (MEX:TSX.V) (CA$0.14 / US$0.1296/share)

This is yet another developer located in a favorable jurisdiction (Mexico) with a resource of 862,000 ounces of gold comprised of 645,000 ounces Indicated and 217,000 ounces Inferred, with intention of delivering a preliminary economic analysis (PEA) for both the El Dorado and Santa Cruz properties. They also have two advanced exploration targets in Cinco Senores and Changarro, with work scheduled for H2/2020.

The common thread here is valuation, as with 173,717,391 shares outstanding (fully diluted) and a market cap of US$18.56 million, Mexican Gold carries a value-per-ounce of US$28.09. At US$80/ounce, the resource would be valued at US$68,960,000 or US$0.398, giving investors a 307% lift to arrive at fair value.

CEO Philip O'Neill is the operator and comes with a solid track record of accomplishment as well as a decent institutional following.

2020 target = US$0.25 / 2021 target = US$0.40 (subject to revision)

Vendetta Mining Corp. (VTT:TSX.V) (CA$0.08 / US$0.066/share)

This is a base metal play that a few years back was the darling of the zinc-lead cheerleaders—until the price of zinc does what it always does: crash. I wrote about the dangers of any market controlled by the Chinese and that is exactly what happened in 2018 after zinc topped in the US$1.60/lb. range.

The Pegmont lead-zinc deposit went through a successful PEA process in 2018 and if base metal prices can recover to 2018 levels in early 2021, VTT should be a good proxy for this space.

However, I believe that chairman Michael Williams (Aftermath Silver) will be in the hunt for another silver asset to fortify the Vendetta story and that is the rationale for ownership. You cannot get a better steward than Williams and looking no further than Aftermath is the key.

2020 target = US $0.20 / 2021 target = US$0.50

Explorers

Norseman Silver Ltd. (NOC:TSX.V) (CAD $0.28; U.S. quote symbol expected shortly; no chart available)

The company recently moved from Tier 3 to Tier 2 on the TSX Venture Exchange, having announced the option agreements to acquire two highly prospective silver assets, Cariboo and Silver Switchback, located in northern British Columbia, Canada. Located in the Stikine terrain, the Silver Switchback carries an outcrop containing over 4% copper and 138 g/t silver, which will be investigated during upcoming work programs. Acquisitions of silver-bearing development and exploration projects are the corporate mission statement for the company, as well as fortifying the board of directors with strong team members.

There are several corporate developments on the horizon that could vault NOC into the forefront as a nascent silver producer and when achieved, above average appreciation is expected.

2020 target = CA$0.50 / 2021 target: To be determined

Megastar Development Corp. (MDV:TSX.V; MSTXF:OTC; M5QN:FSE) (CA$0.155 / US$0.1296; no chart available)

I recently finished a conversation with an individual close to the ground on this one, and learned that the main driver behind this company is major shareholder and CEO/geologist David Jones.

I subsequently had a conversation with David and after my many years investing in Mexican mining deals dating back to 1991, I can tell you that this famous mine finder is at the front end of most conversations regarding recent Mexican gold/silver discoveries. His discoveries include the Switchback Mine (Gold Resource Corp. [GORO:NYSE.American]), Los Filos (Teck Resources Ltd. [TCK:TSX; TCK:NYSE]; 1995), El Limon-Guajes (1998), and Cayden (sold to AGE for US$205 million).

The two primary projects are Yautepec and Magdalena, both collapsed calderas (volcanoes), which will both see work in the next sixty days. David is extremely "high" on the early geochemistry for both properties, located adjacent to one another and within the Oaxaca Au-Ag Polymetallic Belt, situated in the eponymous southern state. The presence of plentiful pathfinder minerals is the key attraction and consistent with his other successes in the region.

He and his fellow insiders control a large portion of the issued capital (well over 20%) in MDV.

Corporate presentation

2020 target = CA$0.35/US$0.2683 / 2021 target: To be determined (subject to revision)

Other Candidates for Consideration

• Goldcliff Resource Corp. (GCN:TSX.V; GCFFF:OTCBB) (CA$0.085 / US$0.069)
News pending on additional deals to fortify land package; excellent share structure; stand-up CEO and major shareholder (George Sanders)

• Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) (CA$0.78 / US$0.5912)
This company remains my sole proxy for the long-awaited turnaround in the U.S. domestic uranium industry.

• ArcWest Exploration Inc. (AWX:TSX.V) (CA$0.16 / US$0.1224)
A project generator with a big land package in B.C.'s Golden Triangle, the upcoming drill program on the Todd Creek Project could be a game-changer.

Conclusions

This is the "sneak peak" list available to everyone. The more detailed analysis of each of these names is for subscribers only. The GGM Advisory service will be following these and many other junior development and exploration stories in 2020 and beyond. While the service does not deal exclusively with juniors, the explosive nature of the precious metals markets looking out to 2021 will undoubtedly demand close attention to the micro-cap space because of the inherent leverage contained herein.

Please feel free to contact me at miningjunkie216@outlook.com for further information on the service and follow me on Twitter @MiningJunkie where I post from time to time.

Originally published Sept. 1, 2020.

Follow Michael Ballanger on Twitter @MiningJunkie.

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.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Aftermath Silver, Getchell Gold, Megastar Development, Goldcliff Resource Corp., Western Uranium & Vanadium Corp. Norseman Silver Ltd. My company charges or has charged in the past consulting fees to the following companies referred to in this article: Aftermath Silver, Getchell Gold, Norseman Silver, Megastar Development, Goldcliff Resource Corp., Western Uranium & Vanadium Corp. 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: Goldcliff Resource Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Megastar Development. Please click here for more information.
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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aftermath Silver, Megastar Development, Goldcliff Resource, Western Uranium and Vanadium, companies mentioned in this article.

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: AAG:TSX.V, AWX:TSX.V, GTCH:CSE, GCN:TSX.V; GCFFF:OTCBB, MDV:TSX.V; MSTXF:OTC; M5QN:FSE, MEX:TSX.V, NOC:TSX.V, VTT:TSX.V, WUC:CSE; WSTRF:OTCQX, )

Explorer ‘Continues to Expand Resources’ at Quebec Gold Project

Source: Streetwise Reports   08/25/2020

Red Cloud raises its target price on Troilus Gold after the release of a new resource estimate.

In a July 29 research note, analyst Jacob Willoughby reported that Red Cloud increased its target price on Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) to CA$2 per share from CA$1.50 to reflect the updated Troilus project resource estimate. The company is currently trading at about CA$1.25 per share.

Willoughby discussed the updated resource estimate, which, he noted, “increased materially” from the last one in 2019. The new total Troilus resource is 8.11 million ounces of gold equivalent (8.11 Moz Au eq), which reflects 26% growth. The Indicated resource today amounts to 4.96 Moz Au eq, and the Inferred resource is 3.15 Moz Au eq.

Since 2016 when it acquired the Troilus project, Troilus Gold increased the total Indicated resources by about 142%, and the total Inferred resources by about 350%.

Contained ounces jumped up substantially since 2019, the date of the prior resource estimate update, due to the large, roughly 39% tonnage increase. Grades, on the other hand, decreased moderately, by about 9%.

Today, the open pit ounces comprise 80% of the overall resource whereas in 2019 they accounted for about 68%. “We view this positively as the previous grade in the underground resource was less than optimal,” wrote Willoughby.

The analyst highlighted that the Southwest zone contributed to the overall resources 583,000 Inferred ounces of Au eq, or 22.6 million tons, with an average grade of 0.8 grams per ton Au eq. “We still believe the company can grow the Southwest zone to a total of about 1 Moz Au eq,” Willoughby commented.

The new Troilus resource provides the basis for a preliminary economic assessment (PEA), for which Troilus Gold is continuing the necessary technical work. Release of the PEA is a near-term catalyst, as it is expected in Q3/20.

Exploration updates is another potential stock-moving event, as the company intends to drill 20,000 meters later this year. That campaign will include drilling the Southwest zone for ounces to add to the resource and finishing infill drilling around the main ore bodies in the Z87 and J zones.

“We expect ongoing exploration updates in a strengthening gold market to drive positive momentum and a rerating of the stock,” Willoughby wrote.

Red Cloud has a Buy rating on Troilus Gold.

Read what other experts are saying about:

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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: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Red Cloud Securities, Troilus Gold Corp., Exploration Update, July 29, 2020

Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Company Specific Disclosure Details

3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: TLG:TSX; CHXMF:OTCQB,
)

Source: Streetwise Reports   08/25/2020

Red Cloud raises its target price on Troilus Gold after the release of a new resource estimate.

In a July 29 research note, analyst Jacob Willoughby reported that Red Cloud increased its target price on Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) to CA$2 per share from CA$1.50 to reflect the updated Troilus project resource estimate. The company is currently trading at about CA$1.25 per share.

Willoughby discussed the updated resource estimate, which, he noted, "increased materially" from the last one in 2019. The new total Troilus resource is 8.11 million ounces of gold equivalent (8.11 Moz Au eq), which reflects 26% growth. The Indicated resource today amounts to 4.96 Moz Au eq, and the Inferred resource is 3.15 Moz Au eq.

Since 2016 when it acquired the Troilus project, Troilus Gold increased the total Indicated resources by about 142%, and the total Inferred resources by about 350%.

Contained ounces jumped up substantially since 2019, the date of the prior resource estimate update, due to the large, roughly 39% tonnage increase. Grades, on the other hand, decreased moderately, by about 9%.

Today, the open pit ounces comprise 80% of the overall resource whereas in 2019 they accounted for about 68%. "We view this positively as the previous grade in the underground resource was less than optimal," wrote Willoughby.

The analyst highlighted that the Southwest zone contributed to the overall resources 583,000 Inferred ounces of Au eq, or 22.6 million tons, with an average grade of 0.8 grams per ton Au eq. "We still believe the company can grow the Southwest zone to a total of about 1 Moz Au eq," Willoughby commented.

The new Troilus resource provides the basis for a preliminary economic assessment (PEA), for which Troilus Gold is continuing the necessary technical work. Release of the PEA is a near-term catalyst, as it is expected in Q3/20.

Exploration updates is another potential stock-moving event, as the company intends to drill 20,000 meters later this year. That campaign will include drilling the Southwest zone for ounces to add to the resource and finishing infill drilling around the main ore bodies in the Z87 and J zones.

"We expect ongoing exploration updates in a strengthening gold market to drive positive momentum and a rerating of the stock," Willoughby wrote.

Red Cloud has a Buy rating on Troilus Gold.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

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: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Red Cloud Securities, Troilus Gold Corp., Exploration Update, July 29, 2020

Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Company Specific Disclosure Details
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: TLG:TSX; CHXMF:OTCQB, )