Exploration and Royalties Make Good Resource Companies

Source: Adrian Day for Streetwise Reports 06/21/2018 Sector expert Adrian Day looked at two ‘favorite’ junior explorers he considers ‘good buys at current levels.’ Lara Exploration Ltd. (LRA:TSX.V) (0.59) released some very strong results from channel sampling at a new polymetallic property in Peru. The Puituco Project returned 4.6% zinc, 4.9% lead and 27 grams per ton over 42.6 meters. These results make it more likely that Lara can execute a good earn-in agreement, more likely with a major company. Acquired at auction in late 2017, Puituco is surrounded by BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) property, while South32 Ltd. (S32:ASX; a major base metals company itself spun off from BHP) is nearby. One of the two would be an obvious candidate for any agreement; South32 has been very active in acquisitions and joint ventures. Lara is particularly active in Brazil and Peru, though most of the recent news is from the former. In Peru, however, it now has 15 properties, including epithermal gold and polymetallic projects. Two projects advance, one to production Earlier, Lara announced additional drill results from its Planalto copper project in northern Brazil, which included another long intercept (211 meters) of copper mineralization, and the company said it was “very encouraged” by presence of massive chalcopryrite. It holds this property 100%, and decided to test drill before seeking a partner. Lara also announced receipt of a mining license for its Maravaia copper project near Curionopolis in northern Brazil. The property has been optioned to a private Vancouver-based … Continue reading

Gold's Relative Strength Index Indicating a Bottom Is Here

Source: Michael J. Ballanger for Streetwise Reports 06/21/2018 Precious metals expert Michael Ballanger explains why he believes gold is bottoming. Today’s missive is going to be brief as there are no need for words when you have the chart below indicating every major low in gold was accompanied by an RSI reading below 30. GLD (the physical gold ETF) is sporting a 27.46 RSI this morning and while we have seen readings lower than this at other bottoming periods, it is time to open a 25% position in the GLD July $120 calls at $1.40, where I was filled shortly after the New York opening. I am now attempting to add a second 25% tranche at $1.50 with the current market $1.54. Silver is also finding support in the $16.20-16.30 range where I successfully built a position back in March when I was able to accumulate a large position in the SLV June $15 calls in the $0.50 range. Within days, silver screamed back above $17 and the SLV was in the mid $16s where profits were taken. We are once again close to the accumulation zone for silver but based upon RSI, gold is the buy. 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 … Continue reading

Developing a High-Grade Gold and Silver Deposit in Mexico

Source: Streetwise Reports 06/21/2018 John-Mark Staude, CEO of Riverside Resources, speaks with Maurice Jackson of Proven and Probable about his company’s exploration in northern Mexico. Maurice Jackson: Today we will provide an update on Riverside Resources Inc. (RRI:TSX.V), Where Knowledge is Golden, trading on the TSXV, symbol RRI, and on the OTC, symbol RVSDF. Joining us for conversation is Dr. John-Mark Staude, the president, CEO and director or Riverside Resources. John-Mark, Riverside Resources has some very intriguing news report out of Sinaloa, Mexico, on the 100%-owned La Silla Gold Project in Mexico. Where is La Silla located and historically is this an area known for producing gold mines? John-Mark Staude: It’s in a great part of western Mexico. It’s in the state of Sinaloa just to the east of Mazatlan. So from Mazatlan, it’s only about an hour and a half on a paved road right to this project. The reason there’s a paved road there is it’s a mining district. Just to the east of us is Taylotita and San Dimas, which has produced over eight million ounces of gold. It’s produced nearly a billion ounces of silver. These are mega districts in Mexico. Riverside is so excited to have gotten in to La Silla, which is a project that Yamana had worked on previously, acquired it from Meridian, and for us to be able to capture such a great asset, put it together, and now begin to do the exploration. Drill targeting is awesome. It’s a very mega … Continue reading

ZincX Beats Arizona Mining

Source: Bob Moriarty for Streetwise Reports 06/21/2018 Bob Moriarty of 321 Gold calculates what South32’s acquisition offer for Arizona Mining means to the value of another company with a similar resource. On June 17th, 2018 an Australian company named South32 Ltd. (S32:ASX) agreed to buy the remaining 83% of shares in Arizona Mining Inc. (AZ:TSX) in a deal that values all of Arizona Mining at $2.1 billion Canadian pesos. The fully funded price is an all cash offer. When they read about the proposed takeover, the management of ZincX Resources Corp. (ZNX:TSX.V) all smiled. Now they know what an all cash offer would look like for their similar lead/zinc/silver project. Most times it becomes difficult to measure one company against another since there are so many variables. In a comparison of ZincX to Arizona Mining, it’s actually fairly easy because their published 43-101 resources are so similar in nature. In the indicated 43-101 resource for Cardiac Creek of ZincX published in November of 2017, ZincX showed 22.7 million tons with a metal in the ground value of $295.15 per ton for a total of about $6.7 billion USD. The same table for the 43-101 resource in the inferred category for the Cardiac Creek deposit shows just over 7.5 million tons with a metal in the ground value of $246.87 and a total of about $1.86 billion USD. For Arizona Mining in the M&I category their most current 43-101 from January of this year shows 100,958,000 tons with a metal in … Continue reading

Gold Miner Notes Extension of Brucejack-Style Mineralization

Source: Streetwise Reports 06/20/2018 Drilling was completed on two holes at a site in British Columbia’s Golden Triangle. Pretium Resources Inc. (PVG:TSX; PVG:NYSE) recently reported the results of underground exploration drilling east from the Valley of the Kings. Two holes over 1,500 meters in depth intersected Brucejack-style mineralization. Proximity to porphyry-style mineralization at depth was suggested by anomalous copper and molybdenum mineralization. The drilling was conducted to test mineralization continuity between the Valley of the Kings and the Flow Dome. B The presence of Brucejack-style mineralization was confirmed from the eastern boundary of the Valley of the Kings to below the Flow Dome Zone. Drilling in 2015 intersected high-grade gold in this patch of land 1,000 meters east of the Brucejack Mine. Veining, mineralization, and Brucejack-style alteration were intersected by oriented core drilling within the length of both drill holes. The drilling was also conducted to test the porphyry potential. Hole VU-820 intersected: 1.71 grams of gold per tonne over 90.21 meters, including 5.12 grams of gold per tonne over 1.00 meter, 6.43 over 4.00 meters, 58.70 over 1.00 meter, and 6.06 over 1.00 meters; 46.00 grams of gold per tonne over 1.00 meter; Hole VU-911 intersected: 157.00 grams of gold per tonne over 0.50 meters, visible gold was observed; 142.00 grams of gold per tonne over 1.50 meters; 76.30 grams of gold per tonne over 0.50 meters, visible gold was observed; 33.60 grams of gold per tonne over 0.50 meters, visible gold was observed. In drill hole VU-911, the … Continue reading

Is It Time to Get Into Uranium?

Source: Maurice Jackson for Streetwise Reports 06/20/2018 Maurice Jackson of Proven and Probable explores the prospects for investment in uranium with Mickey Fulp, the Mercenary Geologist. Maurice Jackson: Joining us for a conversation is Mickey Fulp, the Mercenary Geologist, as we will discuss Is it time to get into Uranium. Mickey, we have some interesting developments going on in uranium. You’re one of the most trusted names on the subject. I know a number of our speculators want to hear more about uranium. Beginning domestically, what do you see happening in the U.S. under the Trump administration that may impact uranium? Mickey Fulp: Well, there’s a couple of things the Trump administration has done that are positive for uranium. First off would be the recent National Security Council resolution that would require utilities to buy their electricity from U.S. nuclear power plants and coal plants. This is an effort, once again, to put people back to work in the extractive industries, namely uranium, nuclear power plants, coal mining and coal fire power plants. In addition, not all of it has to do with Trump, but it’s a movement that includes the Congress and some uranium companies, etc. The U.S. Department of Energy (DOE) under Secretary Rick Perry, who was the governor of Texas, a significant uranium producing state in the past, restricted the DOE sales and barters of U.S. stockpiles of U308. This year they’ve cut those back. During the Obama administration, five to seven million pounds a year were … Continue reading

Lithium Explorer Files Resource Estimate Report for Large Nevada Project

Source: Streetwise Reports 06/20/2018 An independent resource estimate report has been completed and filed on SEDAR; a PEA is expected within a few months for a project that has the potential to be a major supplier of lithium products. Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) recently announced it has filed a National Instrument (NI) 43-101 Technical Report on SEDAR with the title “Resource Estimate Clayton Valley Lithium Project.” Clayton Valley is the company’s 100%-owned lithium project in Nevada, and the report describes the independent resource estimate conducted there by Global Resource Engineering (GRE), a Colorado-based firm. Included within the document is a recommendation for a Preliminary Economic Assessment (PEA), which GRE expects to complete in the next couple of months. Some key report findings are: The mineral resources are reported using a cut-off grade of 300 ppm Li and constrained to pit shell reflecting a $15/tonne operating cost, $10,000/tonne of LCE price and 80% net recovery to LCE. Total Indicated Mineral Resource of 697 million tonnes at an average grade of 886 ppm Li, or 3.287 million tonnes of lithium carbonate equivalent (LCE). Total Inferred Mineral Resource of 643 million tonnes at an average grade of 852 ppm Li, or 2.916 million tonnes of LCE. Minor changes in the resource model occurred following the May 1, 2018 press release due to adjustments in model boundaries. The proportion of indicated to inferred tonnes increased somewhat while the net lithium tonnes in the model decreased slightly. A database of 23 drill holes … Continue reading

Royalty Company Acquires Silver Stream in Quebec

Source: Streetwise Reports 06/20/2018 A BMO Capital Markets report outlined the pending arrangement between the two entities. In a June 18 research note, Andrew Kaip, an analyst with BMO Capital Markets, reported that Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) acquired a silver stream from Falco Resources on its Horne 5 project in Quebec for CA$180 million (CA$180M). “The silver stream has an internal rate of return of 14% at spot silver, which in our view is attractively priced relative to recent producing stream transactions in the range of 5–8%,” wrote Kaip. Per the agreement, Osisko will pay CA$25M when the deal closes, followed by a series of amounts in stages as certain milestones are achieved. The company may increase the stream to 100% of Horne 5’s silver production with an optional CA$40M up front and a final CA$60M when Falco gets project financing. BMO estimated that via the stream, 1.6 million ounces of silver would be delivered to Osisko annually for 18-plus years starting in 2021. “Osisko will pay a delivery charge of 20% of spot silver to a maximum of US$6 per ounce from a 5 kilometer area of interest,” Kaip indicated. At that rate, the stream has an NPV5% of US$90M. The transaction going through is contingent upon whether or not Glencore wants to acquire the stream. Should it want to, it has 60 days to notify Falco of its intent. Along with the silver stream, Osisko bought a CA$7M secured debenture from Falco that “will be converted … Continue reading

US Oil & Gas Small Cap Has 'Potential for Significant Upside'

Source: Streetwise Reports 06/20/2018 ROTH Capital Partners initiated coverage and reviewed this energy company’s U.S. projects. In a June 18 research note, analyst John White reported that ROTH Capital Partners initiated coverage with a Buy rating on Torchlight Energy Resources Inc. (TRCH:NASDAQ), which “offers very significant upside.” ROTH’s price target of $1.75 per share compares to where the company is currently trading, at $1.37 per share. White noted that Torchlight has three oil and gas projects, one in the Orogrande Basin, Hazel in the Midland Basin and Winkler in the Delaware Basin. Due to the “scope of the Orogrande and results to date,” the company has shifted its primary focus to that West Texas asset from Hazel, indicated White. As for the Orogrande, Torchlight has about a 68% interest in 133,000 adjoining net acres of oil and gas leases, a “position comparable to many, much larger exploration and production companies,” described White. The company has drilled two wells and is working on another, all in the Pennsylvanian Formation. Results from the third well are expected “in the near term.” To fund exploration in the Orogrande initially, Torchlight plans to use the $6 million generated from a public offering earlier in the year. Additionally, management has indicated it is willing to divest of Hazel to yield further capital to support efforts at Orogrande. “The rationale for the divestiture hinges on liquidity and the potential capital needs at the Orogrande project,” the analyst wrote. About the Orogrande project, White concluded, “While we … Continue reading

Aben Looks for an Instant Replay of 2017 in the Golden Triangle

Source: Bob Moriarty for Streetwise Reports 06/19/2018 Bob Moriarty of 321 Gold discusses the drill program of an explorer in the Golden Triangle that had some high-grade holes last year. I will keep repeating the same message. We are in the timeframe of June/July for a tradable low in gold and silver. The DSI fell below 10 but the COTs do not yet reflect the extreme of emotion required for a vibrant bull move. For those readers not familiar with supply and demand as a factor in price, manipulation is the worse reason to invest in anything. If you believe that the only issue with why gold and silver sell for what they do is JP Morgan or the fictional “Bullion Banks” manipulating the price 24/7 you really owe it to yourself to consider investments more suitable to your investment style such as Beanie Babies or “Bitcon.” Bitcon topped in December and has fallen 70% since then. The “True Believers” are yet to realize that over $500 billion of their money went to cliptocurrency heaven never to return but in a year or two they will begin to understand what a bubble looks like when it blows up. Between those still tossing their pennies into the Bitcon fraud with 1,907 variations and the herd chasing the FANG stocks a lot of money that could have gone into the penny dreadfuls was off chasing a wisp of the will-o. Our beloved President Trump just started a trade war and unlike other … Continue reading