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

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

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

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

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

A Core Holding Keeps Getting Better

Fund manager Adrian Day reviews one of his favorite resource companies and updates a few others. Altius Minerals Corp. (ALS:TSX.V, 13.07) is one of our “core” resource companies. It has tremendous expertise in grass roots exploration and has leveraged that skill into a portfolio of royalties. CEO Brian Dalton has also demonstrated—more than most in this sector—the patience and discipline needed to take advantage of the inevitable cycles. Altius has used the downturn of the last few years to accumulate a large package—over 2 million hectares in nine different locations—of prospective ground. Now with the resource sector coming back, they are seeing it as a time to harvest. Some of this is traditional joint ventures, and some the sponsorship of new public vehicles in which Altius has specialized. New zinc company Last month, Altius announced the IPO of Adventus Zinc Corp. (ADZN:TSX.V), with exploration land in Eastern Canada and Ireland, and $10 million from the offering. In addition to a 27% share interest, Altius maintains a royalty of the land. Altius has employed this strategy before, with varying degrees of success. Even with Alderon, where the collapse in the iron-ore price stymied the plans for bringing the Kami project into production, Altius has more than regained its original investment, and still holds shares and a royalty. We expect to see more such transactions in the period ahead, with perhaps a copper company (to include many properties in Chile) the next. Starting to work joint venture properties recently acquired In addition … Continue reading

Warren Buffett's Biggest Loss

Tom Beck of Portfolio Wealth Global shares his strategy for investing in commodities. For close to five years, investors, experts and analysts have been predicting that commodities, as a group, are going nowhere. Still, millions of respected, intelligent investors seek to invest in minerals and resources because of one important reason: one solid position can fund a decade worth of retirement. Warren Buffett, whom I personally regard as the absolute best investor the world has ever known, was even duped into buying oil stocks because he fell into the “Peak Oil” theory, which was popular prior to the invention of “fracking.” This reminds me of the famous 1890 London Futurist experiment, where the most highly regarded scientists of Oxford were asked to envision London 40 years into the future, and the prediction was sealed until 1930, when it was finally opened and read. Their theory was that London would be impossible to live in because of horse manure and diseases caused by sanitation. They couldn’t possibly forecast that within the decade after their brainstorming, the automobile would be invented. Today, London is the most expensive and sought-after location of the ultra-rich, as well as a tourist hub. The bottom line is that commodities are unpredictable, and they often move inversely to fundamentals, research and common sense. Even worse, when they do change from bust to boom and vice versa, the discipline it takes to notice the trend change and the precision involved with investing and timing it is sheer luck. … Continue reading

Gold for Protection; This Metal for Wealth

Inflation has been rising at a rapid rate since the election. Not only is the CPI up, but the Dow Jones just experienced its fastest 1,000-point move in history. With the bull market in its ninth year, Lior Gantz of Wealth Research Group believes this is the time for investors to become very selective, and he points to one commodity that is experiencing very tight supply right now. China’s infrastructure plan dwarfs America’s and the big players are betting on Asia. This bull market is now entering its 9th year, which makes it the 2nd longest in history. In my personal 2017 portfolio and game plan, I stress the need to make sure that you’re defending gains and becoming very selective when it comes to new investments in the broad indices. Every savvy investor must own a combination of Safe Havens. Zero-percent interest rates have played a major role in making the S&P 500 the most expensive it has been since the Dotcom bubble, and retirees have few options to earn High yields—there are very few Wealth Stocks at bargain prices left. Now, with inflation rising and Trump’s trillion-dollar infrastructure plan on the table, the big banks are finally bullish on commodities after 6–7 years of bearish outlook. In 2016, I’ve studied close to 758 resource stocks, and less than 1% of them have the characteristics of greatness. The resource market is predictable—it booms and busts. Since the U.S., China, and Europe were in a recession or a severe slowdown … Continue reading

Jack Chan's Weekly Gold and Silver Update

Technical analyst Jack Chan charts the latest moves in the gold and silver sectors. Our proprietary cycle indicator is down. The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders. Silver is on a long-term buy signal. SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders. SummaryThe gold sector is on major buy signal. The cycle is down. A correction is in progress. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) … Continue reading

Gold Stocks for All Risk Appetites

Money manager Adrian Day reviews recent developments at a handful of gold companies, both juniors and seniors. Franco-Nevada Corp. (FNV:TSX; FNV:NYSE,NY 62.58), already one of most diversified of royalty companies, is expecting further commodity diversification ahead, with CEO David Harquail saying the company will do more deals in non-precious metals, particularly oil and gas. The company’s mandate allows for up to 20% of the portfolio outside precious metals—currently it’s at 94% precious metals—and Harquail said he would like to get to that level soon. Franco currently has availability liquidity (cash and credit lines) over $1 billion. The reason for the diversification is that the gold industry is essentially “ex-growth,” according to Harquail, who says companies are investing in new projects to maintain production, but “none of these projects are really great.” Company can take its time Harquail also noted that Franco does not need to be in a rush to invest. It has growth built in for the next five years from royalties on advanced-stage projects, while it could maintain its dividend for the next 32 years even if it did nothing else. Franco is also appealing more and more as an investment to long-term conservative institutions, including generalist funds who want a small exposure to gold and resources without the extreme volatility from mining companies. Franco remains a foundational investment for us. If you don’t own it, it’s a good buy here. Some debt and greater risk, but higher potential? Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX, NASDAQ 63.03) also has … Continue reading