The Perfect Gold Stock for Revivalists

Source: Clive Maund for Streetwise Reports 12/15/2017 Technical analyst Clive Maund charts a young gold company that he believes “is going places.”Revival Gold Inc. (RVG:TSX.V) is a young gold stock that looks like it’s going places. After starting trading in March it immediately went into a steady uptrend that later accelerated into a peak in August–September, after which it ran off sideways into a rectangular trading range that has continued up to the present, as we can see on its 1-year chart below. This trading range looks like a consolidation pattern not a top, and if so we can expect the price to break above the resistance at the top of it in due course and enter another uptrend. With the gentle downtrend of the past few weeks having brought it down towards the lower boundary of the trading range, it looks like a buy here, and a stop may be placed beneath the support at the lower boundary of the range, in case it does the unexpected and breaks lower. Note that although Revival is a stock traded on the Canadian Venture Exchange and the U.S. OTC market, its chart is not available in Stockcharts, hence this Stockwatch chart. Conclusion: Revival Gold is an immediate buy, and a suggested point for a stop is C$0.595. Revival trades in light but reasonable volumes on the US OTC market. Revival Gold website Revival Gold Inc, RVG.V, RVLGF on OTC, closed at C$0.73 on 14th December 17. Want to read more Gold … Continue reading

New Uranium Assays Improve 'Resource Confidence'

Source: Streetwise Reports 12/14/2017 David Talbot, an analyst with Eight Capital, outlined recent drill results from this energy company’s flagship asset. In an Dec. 11 research note, Talbot wrote that NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT) had announced the findings from 21 holes of summer infill drilling at Arrow and among them were “the best assay results to date from the A3 shear.” A highlight hole, AR-17-147c3, showed 3.7% over 60 meters (60m), including 6.51% over 33m and 17.68% over 6m between depths of 597m and 657.5m. Generally, the A3 shear results “fall within,” “confirm” and expand “slightly” the high-grade resource area, noted Talbot. “While somewhat expected, these results should help increase resource confidence from Inferred to Indicated upon the next resource estimate.” Drilling was successful, too, in filling some of the mineralization gaps to the southwest and northeast, Talbot said. “Mineralization isn’t quite as strong in these areas, but zones remain relatively wide, suggesting ample hydrothermal fluid flow,” he added. Further, the A3 shear remains open at depth. Modest resource increases like these only minimally affect NexGen’s stock, Talbot pointed out, because the Arrow deposit has a “+300 million pound U3O8 deposit already defined.” What has impacted the company’s share price, asserted Talbot, is the recent upswing in the uranium price on the news that Kazakhstan will cut production by 20% between 2018 and 2020. The boosted uranium price, in turn, has caused the stocks of uranium firms like NexGen, “larger market cap names with longer time horizons,” to increase. … Continue reading

Precious Metals Explorer to Acquire 'District-Scale Gold Properties'

Source: Streetwise Reports 12/14/2017 Craig Stanley, an analyst with Eight Capital, took a look at the terms and potential of this mining company’s prospective transactions in Ontario. A Dec. 12 Eight Capital research note indicated that GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) entered into agreements to acquire three mining projects, for a total of 560 kilometers squared (560 km2) of mineral rights west of Timmins, Ontario, which analyst Craig Stanley described as “one of the most gold-endowed regions on the planet.” The assets are Rapier Gold’s (RPR:TSX.V) Pen, Probe Metals Inc.’s (PRB:TSX.V) West Porcupine and Osisko Mining’s (OSK:TSX) Swayze. Stanley concluded that “once the acquisitions close, GFG Resources will hold nearly 700 km2 of highly prospective, district-scale gold properties in tier one mining jurisdictions (Wyoming and Ontario).” He added that despite the projects being early stage, they are “positive for the company as they offer prospective, easily accessible ground that can be explored year-round.” As for the acquisition of Rapier Gold and its 19,000-hectare Pen project, the price is 15 million (15M) shares, or CA$0.08 per Rapier share based on GFG’s price at market close on Dec. 7, 2017, Stanley noted. Thirty-four holes totaling 8,330 meters (8,330m) have been drilled at Pen, none deeper than 310m. Regarding the West Porcupine deal, the price is 6.5M shares, or an implied ~$3.5M, reported Stanley. Twelve holes have been drilled on the property, which consists of two blocks that span about 245 km2 and flank Pen on the east and west. In terms of … Continue reading

Metallic Minerals Catches the Silver Ring

Source: Bob Moriarty for Streetwise Reports 12/14/2017 Silver is cheap right now, says Bob Moriarty of 321 Gold, who profiles a company in the Yukon that he says is delivering world-class exploration results. In the old west, when the sole lawyer in a small town needed more business, he would bring in another attorney. Two legal beagles in a small town are enough to stir up sufficient business for each. Actually, mining sort of works the same way. You have to have several mining companies in the same district to beat the drums so investors know there is a story. Silver investors are a strange breed. After being told for years that we are somehow going to run out of silver any day now by silver PermaBulls, they manage to catch every top in the metal. In April of 2011, they were willing to pay a 25% premium for Eric Sprott’s Silver ETF. They did manage to nail the top once more. But there are actually few real silver companies or districts. One of the most prolific silver areas in history was the Keno Hill silver district in the Yukon. It’s been around for over 100 years. Over 200 million ounces of silver came out of the region at an average grade of 1374 grams per ton. That’s over 44 ounces a ton or $660 rock. After shutting down in 1989 due to prevailing low silver prices, the district began to reawaken in 2006 when Alexco Resource purchased the United … Continue reading

Micro-Cap Oil & Gas Explorer's First Permian Basin Well Flowing 465 Barrels/Day

Source: Streetwise Reports 12/13/2017 Exploration is just beginning for this oil and gas E&P with large tracts of prime land in the Permian Basin in Texas. Torchlight Energy Resources Inc. (TRCH:NASDAQ), an oil and gas exploration and production (E&P) company with rights to property in the Midland Basin, the Delaware Basin and the Orogrande Basin, just released an update on its first horizontal well, reporting production of 465 barrels per day. The company has rights to 9,600 net acres in its 12,000-acre lease that comprise the Hazel Project, which is located in the Midland Basin in Texas, and is part of the Permian Basin. Torchlight’s Hazel Project E&P neighbors include EQT Corporation (EQT:NYSE), Pioneer Natural Resources Company (PXD:NYSE), Concho Resources Inc. (CXO:NYSE), Cimarex Energy Co. (XEC:NYSE) and Laredo Petroleum Inc. (LPI:NYSE), companies with multiple billion dollar market caps many times larger than Torchlight’s $81 million. Torchlight reported that its first horizontal well in the Hazel Project, the Flying B Ranch #3, has “attained a highest measured production rate of 465 BOPD and 248 MCFPD of gas as the well continues to clean up with 45% of load water recovered.” Torchlight also reported “continually improving oil cuts as high as 30% and over 12,000 barrels of oil produced thus far.” “The recent production rates are comparable to other Midland Basin Wolfcamp A wells with 5,000 foot Laterals and on par with Torchlight’s expectations for the well,” the company stated. “Torchlight, definitively, is now the single most attractive oil-focused junior E&P in … Continue reading

Guyana Shield Is Host to Multiple Gold Deposits

Source: Streetwise Reports 12/12/2017 As two Guyana projects begin commercial gold production, a new mineral resource estimate is in the works for a third project. The Republic of Guyana is an English-speaking, democratic, South American country tucked between Venezuela and Suriname. In 2016, Guyana produced 690,000 ounces of gold as two mines began commercial production: the Aurora deposit (Guyana Goldfields Inc. [GUY:TSX]) and the Karouni deposit (Troy Resources Ltd. [TRY:TSX; TRY:ASX]). As Guyana opens its borders to international investment, Guyana Goldstrike Inc. (GYA: TSX.V; GYNAF:OTC; 1ZT:FSE) is updating its historical mineral resource estimate for Mazoa Hill Zone at the Marudi Gold Project. Guyana Goldstrike announced on Nov. 21 that it has hired Global Mineral Resource Services to establish a new mineral resource estimate to be included in an NI 43-101 technical report. The company noted that there have already been 54 holes (9,666 meters) of diamond drilling completed on Mazoa Hill by previous owners, resulting in a historical mineral resource estimate. Guyana Goldstrike stated that its immediate objective is to update the historical work with modern geological techniques, and to try to expand the resource through development of the current zones and through the discovery of new zones. The entire Marudi Gold Project has three known gold-bearing areas: the alluvial areas, the saprorlite overburden, and the underlying hard rock. Project-wide, there has been 42,000 metres of diamond drilling (141 holes) resulting in a delineated historical mineral resource estimate, the company reported. A 2016 NI 43-101 Technical Report on the Marudi … Continue reading

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

Source: Streetwise Reports 12/12/2017 A flagship Nevada project is showing results and the company anticipates commencing commercial production in the first quarter of 2018. In a Dec. 11 press release, Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) summarized the Florida Canyon mine’s production results for the month of November: Placed 8,059 ounces of gold on the pad (23 percent above plan); Produced 3,491 ounces of gold and 1,825 ounces of silver, 20 percent higher than October; Mined 730,900 tons of ore (21 percent above plan); Crushed 728,900 tons of ore (21 percent above plan); Maintained a grade of 0.011 opt of gold including over liner material; and Achieved a low strip ratio of 0.45 for the month (74 percent below plan). “Production reaching 3,500 ounces represents a key milestone in the continuing upward production trend. At this point mining operations now begin to contribute positive cash flows to the Company,” stated William Howald, the company’s president and CEO. “Three of the four new 785 haulage trucks are working with the fourth to be operational in early December. Over liner material has been laid over an extent that maximizes leach cell size and allows for a primary leach cycle of 45 days before stacking the second lift. Overliner will be completed in late December. The positive trend is continuing in Q4.” “The October and now November production results confirm the Florida Canyon mine is ramping up to commercial production in Q1 2018,” he added. George Topping, analyst with iA Securities, stated in … Continue reading

Jack Chan's Weekly Precious Metals Market Update

Source: Jack Chan for Streetwise Reports 12/11/2017 Technical analyst Jack Chan charts the latest movements in the gold and silver markets. 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. Open interests have dropped drastically from the current pullback, now reaching levels of previous bottoms. USD—a potential head-&-shoulder topping pattern is in progress. A breakdown on the dollar will be very supportive to the metals. 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. Speculation in silver is now at levels of previous bottoms. SummaryThe precious metals sector is on major buy signal. The cycle is down, as the multimonth consolidation continues. COT data is now supportive for a bottom in metal prices. We are holding gold-related ETFs for long-term gain. 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 … Continue reading

Cryptojunkies: Beware the Ides of December

Source: Michael J. Ballanger for Streetwise Reports 12/11/2017 As Bitcoin futures are set to begin trading next week, precious metals expert Michael Ballanger discusses movements in gold and cybercurrencies. It was two years ago this week that I proclaimed that we were witnessing the final lows in the 2011–2015 bear market in the precious metals as gold traded down to $1,045 amidst total capitulation by the Large Specs and after massive short-covering by the Commercial traders. The weekly COT for that week showed an aggregate short position of a miniscule 2,911 contracts down from the earlier highs of over 300,000 contracts. About six weeks later, despite the earlier bottom in gold, the HUI (NYSE Arca Gold BUGS Index) got mauled mercilessly and closed at 99.19 on January 19th 2016. What followed was the best rally in a decade as the HUI peaked the following August at 286.05. The 2.88 times move in the HUI was paltry compared to the moves in the leveraged ETFs NUGT (Direxion Daily Gold Miners Bull 3X ETF) and JNUG (Direxion Daily Junior Gold Miners Bull 3X ETF). The NUGT moved from $13.92 in January to $143.06 in August for an advance of 927%. Based on what I saw in the latest COT report, the set-up is in progress for a repeat performance. And it will be a BIG one. The recent Nov. 27 commentary was entitled “Bullion bank short-covering will become year-end profit-taking,” and that is EXACTLY what transpired this past week as the bullion … Continue reading

Keith Barron Wants to Mine U3O8 'Cheep'

Source: Bob Moriarty for Streetwise Reports 12/11/2017 More mining companies should follow the example of the garimpeiro miners of Brazil who mine until they fail to make a profit, says Bob Moriarty of 321 Gold, who discusses one gold and one uranium company that may be changing the paradigm. The garimpeiro miners in Brazil can’t spell either. All they know how to do is to mine at a profit. Unlike professionally run mining companies, they mine until they fail to make a profit. Then they stop. All garimpeiros mine at a profit. It’s a lesson the professionals should learn. Over the past 16 years of traveling and looking at mining projects, I invented my own definition of mining. I like it; it’s simple and covers everything you need to know: Mining is the art and science of extracting minerals from the ground at a profit. What I have observed in visiting hundreds of properties is that (1) the level of formal education is far higher than in any other field I am familiar and (2) most geos think that mining is the art and science of spending money. Rarely does the word profit get mentioned or exist and finally (3) most of the people in the mining business should have taken a semester off during their studies to work at a 7-11. It would do wonders for their overall education if they actually understood how to sell a quart of milk at a profit. If the garimpeiro miners from Brazil … Continue reading