Juniors to Recover as Gold Moves Ahead

Source: Adrian Day for The Gold Report 03/23/2017 View Original Article Fund manager Adrian Day discusses several mining and energy companies in his portfolio that he believes should appreciate now that the recently released Canadian budget does not include a tax rate increase. Many Canadian juniors had seen significant deterioration in prices in the last few weeks, even as gold and large mining companies rallied. This decline in juniors particularly affected stocks that had seen large capital appreciation in the recent past. This was the result of Canadian investors selling shares to lock in capital gains tax rates ahead of a widely anticipated increase in the tax rate. But in the budget just released, the government said there would be no rate increase. We expect, therefore, that there will be some buying back of shares sold in coming days and an overall firming in the Canadian junior market. Below are three stocks (LRA, AXY, MD), among others, that could benefit from such buying. Strong assets, waiting for partners, court Lara Exploration Ltd. (LRA:TSX.V, 1.01) continues to deal properties, acquiring new properties that is options out to others, but has hurdles on its two main assets. The Maravaia copper-gold deposit (part of the Curionopolis project in northern Brazil) is behind schedule. However, Tessarema is working towards commercial production at the mine, which is the hurdle is must meet to earn 100% of the project. At that point, Tessarema must pay Lara another US$750,000, which also retains a 2% royalty. Meanwhile, Codelco … Continue reading

Iskut Could Be as Important to Seabridge as KSM

Source: The Gold Report 03/23/2017 View Original Article Seabridge’s Iskut project has the potential to be another success story like its flagship, 100%-owned KSM project. When Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) closed the sale of its Castle-Blackrock claim block interest in Nevada to Columbus Gold in February, Seabridge Chairman and CEO Rudi Fronk noted that “the sale is part of a continuing program of divesting non-core assets in order to focus resources on core holdings, including the KSM and Iskut projects and the Snowstorm project.” Iskut was acquired when Seabridge purchased SnipGold Corp. in June, 2016. According to Seabridge, the “2016 multi-pronged exploration program at Iskut achieved its primary objective: to identify a prospective new porphyry copper-gold system with a potentially intact epithermal precious metals zone at its top, for drill testing in 2017.” One of the untested targets Seabridge will be focusing on, Quartz Rise, “has all the all the hallmarks of a porphyry lithocap, a geological feature found at the top of major porphyry systems throughout the world,” according to the company. To understand the potential of Quartz Rise, Paradigm Capital Analyst Don MacLean Sr, in a Mar. 16 research report, quoted Dr. Jeffrey Hedenquist, considered to be the world’s leading epithermal and lithocap expert, as saying during a technical discussion with Seabridge, “All lithocaps have feeder structures, but not all feeders have lithocaps,” something that MacLean found to be “a positive endorsement for the epithermal potential below Quartz Rise.” MacLean goes on to highlight that although “it … Continue reading

Dataram Set to Transform Itself with Acquisition of U.S. Gold Corp.

Source: The Gold Report 03/23/2017 View Original Article Dataram’s plans to acquire U.S. Gold Corp. to diversify its business would give it access to potentially high-growth mining projects in Nevada and Wyoming. Dataram Corp. (DRAM:NASDAQ), which has been in the IT memory business, intends to acquire U.S. Gold Corp. as part of its strategy for business diversification and growth through acquisition. The company stated in its March 9 news release that the “natural resources segment represented a market opportunity that would diversify the Company’s business model and thereby potentially mitigate risk associated with focusing on one industry.” U.S. Gold Corp. is advancing the Keystone project on the Cortez Trend in Nevada and the Copper King project in Wyoming. Last year exploration geologist Dave Mathewson joined U.S. Gold as vice president and head of exploration. Mathewson is credited with discovering the Tess, Northwest Rain, Saddle and South Emigrant deposits when he was head of Newmont Mining’s Nevada exploration team. His work also led to the consolidation of the Railroad-Pinion district and the North Bullion and Bald Mountain discoveries when he was at Gold Standard Ventures. Dave Moylan, Dataram’s chairman and CEO, said of Mathewson, “Dave is a strong addition to the U.S. Gold team and brings more than 35 years of exploration experience in Nevada. He is a well-known and respected exploration geologist who is credited with many discoveries, and one of a handful of world-class geologists that historically finds new gold deposits.” Dataram has called a special meeting of shareholders … Continue reading

NexGen's Mineral Resource for Arrow Highlights 'Once-in-a-Career Type of Asset'

Source: The Energy Report 03/23/2017 View Original Article NexGen’s latest mineral resource estimate for the Rook I property has caught the attention of industry analysts. Earlier this month, NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released an updated mineral resource estimate for the 100%-owned Rook I property in Canada’s uranium-rich Athabasca Basin. The estimate includes Indicated resources of 179.5 million pounds (179.5 Mlb) of U3O8 in 1.18 million tonnes (1.18 Mt) grading 6.88% U3O8, including the high-grade A2 core of 164.9 Mlb of U3O8 in 0.40 Mt grading 18.84% U3O8. The Inferred resource estimate is 122.1 Mlb in 4.25 Mt grading 1.30% U3O8. The company noted that the 2016 drilling has “converted 89% of the March 2016 Arrow Deposit Maiden Inferred Mineral Resource into the updated Indicated Mineral Resource category. This level of conversion is truly unprecedented, which continues to confirm the strong continuity of grade and thickness seen across the Arrow deposit converted.” Paradigm Capital analyst David Davidson noted in a March 7 research report that “NexGen’s discovery of the Arrow uranium deposit represents one of the larger and highest-grade discoveries in the Athabasca basin in decades. After only three years of drilling, the company released an updated NI-43-101 indicated & inferred resource of 5.5 Mt grading 2.5% U3O8 for a contained 302Mlb of U3O8. Additional drilling in all likelihood will expand the resource, which should allow for a potential development scenario.” Looking ahead, Davidson added, “NXE is well into its planned 35,000m 2017 winter drill campaign and we remain convinced … Continue reading

Fission Uranium's Exploratory Drilling Hits Success Right Out of the Gate

Source: Ross McElroy for The Energy Report 03/23/2017 View Original Article With uranium up 40% off last year’s lows, a glimmer of optimism is returning to the uranium market, says Fission Uranium’s President, COO and Chief Geologist Ross McElroy. In this interview with The Energy Report, McElroy discusses the company’s latest drill results, its winter drilling plans and why he believes Fission could be on the cusp of a major discovery. The Energy Report: Uranium hit lows this summer before recovering somewhat, although the uranium price is still well below the highs of several years ago. Would you discuss the fundamentals for uranium and your predictions for the price over the next several years? Ross McElroy: We saw the spot price of uranium hit a multiyear low of about $18 per pound ($18/lb) in late November/early December 2016. But we’ve also seen, in the short period from the beginning of December up until currently in March, the spot price recover to close to $25/lb. That represents a price increase of about 40% over just a few months. Of course, $25/lb is still a very low price. At the low end, the major low-cost producers, primarily the Kazakhstan producers and Cameco Corp. (CCO:TSX; CCJ:NYSE), one of the world’s largest uranium producers, sent signals to the market—by reducing low-cost production and shutting in higher-cost production—that they’re not selling uranium any cheaper than that. Those are among the lowest-cost producers worldwide. It has gotten to a point where even they can’t make any … Continue reading

As Uranium Price Turns, Insiders Stock Up on Energy Fuels

Source: The Energy Report 03/23/2017 View Original Article Analysts watching the uranium market agree that as prices for U3O8 turn around, Energy Fuels’ U.S.-based assets, including its conventional and in-situ recovery operations at the Canyon Mine and Nichols Ranch, respectively, make it a good bet for investors. The company’s management team and directors must agree because they have upped their share ownership. In a letter to shareholders that Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) released on March 16, President and CEO Stephen Antony cited trends he believes bode well for uranium producers like Energy Fuels, including production cutbacks by major producers including Cameco in 2016 and Kazakhstan’s state-owned Kazatomprom in early 2017. “I would contend that when the World’s largest and lowest-cost uranium producers are feeling the pain of today’s prices, you know this current market pricing is categorically unsustainable,” Antony wrote. Other signs that uranium prices will soon turn around include increased demand for U3O8 as new reactors come on-line, the demand for clean energy sources, and the American desire for energy independence. Antony concluded his letter by noting that he and other members of the company’s management team and board of directors had recently purchased additional shares of Energy Fuels stock. “We believe in this company, we believe in a uranium price recovery,” he wrote. Though Rob Chang of Cantor Fitzgerald acknowledges the challenges Energy Fuels has faced in coping with depressed uranium prices, he states in a March 10 research report that “we continue to view Energy Fuels … Continue reading

Silver Wheaton may soon be named Wheaton Precious Metals

March 22, 2017 Cecilia Jamasmie   In late 2015, Silver Wheaton acquired a portion of future silver output from Glencore’s (LON:GLEN) Antamina copper mine in Peru for $900 million cash. (Image courtesy of Antamina) Canada’s Silver Wheaton (TSX, NYSE:SLW) plans changing its name to Wheaton Precious Metals Corp as half its revenue now comes from gold, the firm said Tuesday while delivering its fourth quarter results. The company’s bullion production has steadily increased since 2013, to the point that its revenue was evenly split between silver and gold in the second half of 2016.The Vancouver-based precious metals streaming company said its bullion production has steadily increased since 2013, to the point that its revenue was evenly split between silver and gold in the second half last year. Streaming, something that Silver Wheaton pioneered in 2014, means that a firm typically provides a chunk of cash upfront to mining companies to secure a “stream” of precious metals down the road. These sorts of deals have become increasingly popular of late, as miners have had great difficulty raising cash on stock and bond markets. Shareholders will be asked to support the name change at the firm’s annual meeting in May. If approved, the firm will also replace its TSX and NYSE ticker symbol from SLW to WPM. Silver Wheaton also reported fourth-quarter net income of $10.9 million, a significant recovery from the loss it registered in the same period a year earlier. Net income was of 2 cents per share, while earnings — adjusted for asset … Continue reading

A Corporate Debt Crisis Is Underway… And Nobody Cares

A Corporate Debt Crisis Is Underway… And Nobody Cares By Justin Spittler Investors no longer give a damn. That might sound harsh, but when things are this backwards, you have to tell it like it is. You see, I read something recently that disturbed me. I had to pinch myself to make sure I wasn’t dreaming. It was an article I recently stumbled upon in Bloomberg. In it, the author explained how U.S. companies are issuing debt at breakneck speed. You see, U.S. companies have already issued more than $360 billion worth of investment-grade bonds just this year. Corporate America is now on pace to issue the most investment-grade debt in the first quarter since 1999. I don’t have to remind you how that ended… But here’s the really crazy part… Investors are lining up around the block to buy these bonds. If you read yesterday’s Dispatch, you know where I’m going with this. In short, the bond market is unraveling. This isn’t some conspiracy theory. It’s a fact. And yet, investors are buying bonds by the fistful. These people don’t understand how much danger they’re in. Hell, they don’t even know what they’re buying anymore. I’ll explain why in a second. But first, let’s be clear about what “investment-grade” means. • Investment-grade bonds are bonds issued by companies with good credit… They’re the best corporate bonds money can buy. Investors like them because they’re supposedly “safe.” Conventional wisdom says you can own them and sleep well at night. At least, … Continue reading

Columbus Discovered a Gold Mine

Bob Moriarty of 321 Gold looks at the bankable feasibility study that just came out on Columbus Gold’s Montagne d’Or gold project in French Guiana and concludes that it’s going to be a mine. And Columbus Gold Corp. (CGT:TSX; CBGDF:OTCQX) proved that they discovered a gold mine with their press release of March 20th, 2017, covering the bankable feasibility study I said was coming by the end of March in the piece I wrote about them in January. Those numbers suggest the Montagne d’Or gold project in French Guiana is going to be a gold mine. And for an interesting snapshot of someone who is a believer in the mine take a gander at this short video. The fellow in the blue hat cutting the core is Emmanuel Macron, the current Minister of Economy and Industry for France. While Marine Le Pen is favored to score highest on the first round of the French election scheduled for April 23rd, Macron is favored by most to win the French presidency in the runoff between the top two candidates taking place on May 7th. Is that a big deal, the upcoming President of France giving his stamp of approval on a gold mine in French Guiana? Well, all I can say is that if you ever see Trump tweeting about exceptional drill results coming from a company in Nevada, sell everything you own and buy that company’s shares. I’ve been covering mining companies and projects for almost seventeen years now. One of … Continue reading

Buy Gold Stocks Patiently

Money manager Adrian Day discusses three stocks in his portfolio that he sees as buys. Midland Exploration Inc. (MD:TSX.V, 1.06 x 1.07) continues to explore aggressively on its joint-venture projects and (judiciously) on its own land. In all, for this year, the company plans 25,000 feet of drilling with a budget over $6 million. This includes a program just commenced on drilling close to Balmoral’s Bug Lake discovery with its partner Soquem, and a major program, to include drilling, on its 100%-owned La Peltrie, near the high-grade Lower Detour zone. Undertaking some low-cost but well-defined exploration work on its own properties can improve the chances of finding a partner and obtaining more favorable terms. Midland has also reactivated its base metals projects, given the renewed interested in such properties. Midland has strong partners and continues to attract new partnerships, including most recently a joint venture with Altius in the James Bay region. Midland continues to be well funded, with $14.5 million cash, which enables it to advance properties to a point where more attractive options are possible. Favorite exploration company, with management, money and properties Midland remains a favorite exploration company for the breadth of projects, strong partners, solid balance sheet and disciplined management. Warrants at $1.15 put a lid on the share price for now, absent a significant development or discovery. Midland, with its extensive, well-located property package and aggressive program, is in as good a position as any to achieve a discovery. If exercised, the warrants would bring … Continue reading