Explorer Confirms Presence of High-Grade Gold at Peru Site

Source: Streetwise Reports 09/20/2018 Surface gold mineralization expands to 800-by-500-meter area. Palamina Corp.’s (PA:TSX.V; PLMNF:OTC.MKTS) recent field campaign at its Coasa Gold Project in southeastern Peru continues to confirm the presence of high-grade gold at surface in the Veta Zone where continuous channel sampling returned 1.8 meters of 19.6 g/t gold and 0.9 meters of 103 g/t gold. “The recently discovered zone of surface gold mineralization has now expanded to cover an 80- by-500-meter area and further selective rock-chip sampling in the Veta Zone returned up to 620 g/t (19.9 oz/t) gold,” stated the company. “A total of 176 geochemical samples were collected at the Veta Anomaly during the August field campaign; 155 as continuous channel samples varying from 0.9 to 4.5 metres true width across mineralized structures hosted by intermittent in-situ outcrops located on scree-covered slopes throughout the Veta discovery zone.” Overall, 64% of channel and rock-chip sampling results turned up anomalous gold grades (>0.1 g/t gold), 15% resulted in gold contents >1 g/t gold and 3% >10 g/t gold (or 8.5% >2 g/t gold). Four visible native gold-hosting structures have now been discovered. “The footprint of the Veta gold discovery zone at Coasa continues to expand. Channel sampling has confirmed significant gold mineralization within the slate and siltstone host rocks and returned up to 1.8 metres of 19.6 gpt gold. The heli-borne geophysical survey underway is over 50% complete and will serve to better understand the prospective structures at Coasa,” stated Andrew Thomson, president and CEO of Palamina. … Continue reading

Top Pick Oil & Gas Company Eyes Near-Term Divesting of Assets

Source: Streetwise Reports 09/20/2018 A Raymond James report explored what this firm’s monetization strategy might look like, and what it might generate in terms of revenue. In a Sept. 13 research note, Raymond James analyst John Freeman reported the key takeaway from a “few days on the road” with the management team of WPX Energy Inc. (WPX:NYSE), a Top Pick, is “midstream monetizations are likely to happen sooner than we anticipated.” Freeman relayed the assets that comprise the company’s estimated $1.8 billion portfolio, the order in which WPX would likely sell them and their estimated value. First, WPX could divest its 20% interest in Whitewater Midstream, the company that owns the roughly 135-mile, 1.4 billion cubic feet per day capacity Agua Blanca natural gas pipeline. The sale of WPX’s stake, which could happen this year, could generate $140–150 million ($140–150M), Raymond James estimates. Next could be the sale of WPX’s 25% interest in the 400-mile Oryx II, a 650 thousand barrel per day (650 Mbpd) crude oil pipeline system in the Delaware Basin, slated to be fully operational by year-end. Subsequently, the company could market it and possibly divest it by mid-2019. Raymond James values WPX’s owned portion at $525M. Another potential monetization is sale of WPX’s 50% interest in Catalyst Midstream, a joint venture with Howard Energy. Catalyst comprises a 50-mile, 125 Mbpd crude gathering system and two natural gas processing plants. WPX’s half is worth about $600M, according to Raymond James’ calculations. Finally, WPX’s other assets “offer long-term … Continue reading

Why the Next Market Crash Will Not Take Gold Down

Source: Rudi Fronk and Jim Anthony for Streetwise Reports 09/19/2018 Rudi Fronk and Jim Anthony, founders of Seabridge Gold, discuss what they believe will happen to gold if there is another financial crisis. The global financial crisis of 2008 was essentially caused by excessive leverage, a loss of confidence in real estate credit and a resulting sudden collapse of liquidity in the financial system. The central bank response was to lower interest rates and flood markets with liquidity. Since then, debt loads have increased more than 30% and the percentage of higher risk credit has also grown sharply. Many analysts believe that another crisis is possible due to a combination of enormous leverage and deteriorating credit standards. What will happen to gold if we have another financial crisis? Not surprisingly, many investors think the next crisis will look like the last…all asset classes will fall in price including gold (although gold will fall less than the others). Gold will then rocket higher as central banks confront the crisis. That’s what happened in 2008. We disagree. We see few if any parallels between today’s gold market and the gold market in 2008. We do not expect gold to correct in the early stages of a new financial crisis; we see an almost immediate positive impact on the gold price from a crisis and central bank policy responses. The 2008 Gold Market Gold hit a new all-time high of $1030 in March, 2008, the culmination of a seven-year bull market. It is … Continue reading

Not Every Investment Works Out

Source: Adrian Day for Streetwise Reports 09/19/2018 There’s a point when it comes time to exit, says money manager Adrian Day, who discusses a long-time holding that he is selling. It’s time to pull the plug on Miranda Gold Corp. (MAD:TSX.V) and salvage what we can. The company has announced an equity placement, accompanied by a share rollback. This follows another placement in March when it issued about 27.5 million shares, representing approximately 45% dilution. Now it plans to raise another C$1.5 million, representing a further 28% dilution. This continues a pattern of ongoing, massive dilution that has helped drive the stock price down. In 2012, Miranda had 53.6 million shares outstanding. Now, six years later, it has 132 million with another 60 million planned (see below), meaning if this placement completes as announced, the share count will have exploded over 250% in six years. And it’s not certain that the company will be able to complete the placement as announced. Messed up financing We won’t go into the painful details of the saga of the earlier raise. Suffice it to say that when the company announced it had closed on its C$1.5 million raise, trumpeting the participation of board members and management, it failed to announce that the board had voted itself and management bonuses in order to participate in the placement. So the company did not actually raise anywhere close to C$1.5 million, and thus needs to return to the market just six months later. It now looks … Continue reading

Trade War vs. Commodities

Source: Lobo Tiggre for Streetwise Reports 09/19/2018 Lobo Tiggre of the Independent Speculator discusses the trade war and its impact on commodities, and what that all means for resource investors. There is a widespread notion among investors, analysts and pundits that the escalating trade conflict between the U.S. and its trading partners is bad for the global economy. This is no stretch. The leap from there to it being bad for commodities is understandable, but less certain. Still, people who should know, like those running the world’s largest mining company, are saying it’s so. Is it any wonder, then, that we’ve seen the rally in commodities that started in 2016 start to peter out? The chart sure looks like a wave cresting—but how do we know it’s the trade conflict that’s causing it? In truth, we don’t. But the recent downturn includes commodities facing structural supply deficits, like copper and nickel. That clearly isn’t being driven by fundamentals. This leaves “investor sentiment” as the likely cause—and that’s often driven by perception more than reality. Have a look at this chart, which zooms in on the GSCI Commodities Index since the start of the current trade conflict. There’s no smoking gun on this chart. In fact, commodities rose after the U.S. fired the first salvos in the conflict. On the other hand, the blows kept coming, and their cumulative impact does seem to be weighing on commodities prices. This much is largely understood. What seems to get left out of this … Continue reading

Idaho Cobalt Project Advancing 'On Time and On Budget'

Source: Streetwise Reports 09/18/2018 The project is the only near-term, environmentally permitted primary cobalt project in the U.S. The Canadian company eCobalt Solutions Inc. (ECS:TSX; ECSIF:OTCQX; ECO:FSE) reported that construction continues to advance on time and on budget at its Idaho Cobalt Project, located near the town of Salmon, in the heart of the historic Idaho Cobalt Belt. The ICP remains the sole, near-term, environmentally permitted primary cobalt deposit in the United States. eCobalt noted the following developments: Water Treatment Plant (WTP) building completed and the placement of large components and mechanical assembly to commence September 18 Lining of the Tailings Waste Storage Facility (TWSF) and ponds advancing with expected completion in September for ponds and October for TWSF, including gravel topping Pumpback system pipelines installation now 65% complete Bulk fuel storage and distribution system complete Construction of surface mobile equipment maintenance facility initiated on September 6 Construction of the mill building foundation commenced on September 10 “Our main priority is finalizing all environmental systems at site in preparation for underground mine development in early 2019,” stated Paul Farquharson, president & CEO of eCobalt. “This includes getting the Water Treatment Plant in place, the liner installed on the Tailings Waste Storage Facility and Water Management Ponds, and electrifying the pump back wells. These activities are part of the use of proceeds from the February, 2018 public offering and are expected to be completed in the fourth quarter of this year. I am pleased to report that we are advancing on … Continue reading

More 'Impressive' Gold Assays Come from Miner's Quebec Project

Source: Streetwise Reports 09/18/2018 An Echelon Wealth Partners report reviewed the recent findings and their significance. In a Sept. 11 research note, analyst Ryan Walker with Echelon Wealth Partners reported that Wesdome Gold Mines Ltd.’s (WDO:TSX) most recently announced drill results from Kiena showed down-plunge extension of the high-grade Deep A zone and up-plunge potential. “We view today’s drill results as particularly positive,” he added. “In all, we contend the results tend to suggest an increase in the likelihood of a positive restart decision at Kiena.” Assay results from the 14 holes are “impressive,” indicated Walker. Highlights include: Hole 6321: 177.3 grams per ton (177.3 g/t) gold (Au) over 5.1 meters (5.1m) true width (6.5 g/t) Hole 6338: 163.8 g/t Au over 2.6m true width (13.1 g/t) Hole 6339: 53.6 g/t Au over 5.3m true width (18.38 g/t cut) Hole 6333: 37.3 g/t Au over 5.8m true width (6.8 g/t). Walker explained that the results affirmed continuity of the Deep A zone mineralization and demonstrated a 50m extension down plunge to the southeast. Mineralization remains open there and in some areas down dip. The company also identified a moderate, approximately 45-degree vertical plunge to the southeast. When considered with historical drill results, it suggests another extension, of 250m. “Such up-plunge extension is particularly important in that it could potentially add significant resources while at the same time, bring the zone closer (300m higher in mine elevation) to existing mine development,” Walker pointed out. Wesdome plans to drill more there. Looking … Continue reading

New High-Grade Mineralization Discovered at Mexico Project

Source: Streetwise Reports 09/18/2018 The company unveiled additional results from sampling historical core drill holes. Goldplay Exploration Ltd. (GPLY:TSX.V; GLYZF:OTCQB) announced additional results from sampling of the historical core drill holes, completed in 2010, from the company’s San Marcial Project in Mexico. Goldplay “confirmed upside potential for resource expansion with advancement of the sampling program, new 3D geological modelling and discovery of new precious and base metals mineralization at San Marcial,” the company reported. “The new results expand known mineralization 200 meters down dip beyond the historic NI 43-101 resource area and also delineate a new discovery subparallel to the main mineralized zone, increasing twice the footprint of mineralization.” “The San Marcial exploration program continues to deliver near surface, wide and high-grade intersections supporting not only open pit, but also underground, potential,” said Goldplay President and CEO Marcio Fonseca commented. “We have now received information confirming continuity of a mineralized system for more than 200 meters down dip, beyond the extent of the historic resource, as well as the discovery of a sub-parallel mineralized system that has the potential to expand the resource, generating new Ag-Au drilling targets. We are currently advancing surface exploration of other untested targets along the 3.5 km mineralized trend (and beyond the 500-meter-long mineralized trend of the historic resource). The discovery of Ag-Au and Au-only mineralization, represented mainly by a stockwork system hosted in silicified volcanic, has doubled the footprint of precious and base metal mineralization, creating a near surface additional open pit target zone … Continue reading

The Beginning of the End of the Dollar

Source: Rick Mills for Streetwise Reports 09/18/2018 Rick Mills of Ahead of the Herd provides a history of the dollar from its birth as a reserve currency to the pressures it now faces. Donald Trump will go down in history for many things, including a Justice Department investigation into U.S.-Russian collusion in the 2016 election, a guilty verdict for his former campaign chair, Paul Manafort, and a guilty plea by his personal lawyer, Michael Cohen, in relation to hush-money payments to women in violation of campaign finance laws. Then there was the Access Hollywood tape, the ban on Muslims, the implicit condoning of neo-Nazis, the plans to build a border wall to keep out illegal Mexicans, the separation of immigrant children from their parents (though some say that law was drafted under Obama), and Trump’s ban on global abortion funding to please the pro-life portion of his base. Could Trump’s legacy though be something few had ever predicted: The beginning of the end of the dollar? On the economic front though, it appears that Trump is doing all the right things. The Dow was at its highest-ever level of 26,616.71 in January, just over a year after Trump took office. The U.S. dollar is strong, unemployment is at its lowest level in 20 years, the stock market is booming, and the Fed thinks things are going so well that it is ready to pass more interest rate hikes. Why has the U.S. dollar done well? Mostly because of high demand … Continue reading

The Beginning of the End of the Dollar

Source: Rick Mills for Streetwise Reports 09/18/2018 Rick Mills of Ahead of the Herd provides a history of the dollar from its birth as a reserve currency to the pressures it now faces. Donald Trump will go down in history for many things, including a Justice Department investigation into U.S.-Russian collusion in the 2016 election, a guilty verdict for his former campaign chair, Paul Manafort, and a guilty plea by his personal lawyer, Michael Cohen, in relation to hush-money payments to women in violation of campaign finance laws. Then there was the Access Hollywood tape, the ban on Muslims, the implicit condoning of neo-Nazis, the plans to build a border wall to keep out illegal Mexicans, the separation of immigrant children from their parents (though some say that law was drafted under Obama), and Trump’s ban on global abortion funding to please the pro-life portion of his base. Could Trump’s legacy though be something few had ever predicted: The beginning of the end of the dollar? On the economic front though, it appears that Trump is doing all the right things. The Dow was at its highest-ever level of 26,616.71 in January, just over a year after Trump took office. The U.S. dollar is strong, unemployment is at its lowest level in 20 years, the stock market is booming, and the Fed thinks things are going so well that it is ready to pass more interest rate hikes. Why has the U.S. dollar done well? Mostly because of high demand … Continue reading