Blue Sky Uranium Advances Amarillo in Argentina

Source: Peter Epstein for Streetwise Reports 06/18/2019 A uranium exploration company with a project in Argentina is profiled in this guest post from The Northern Miner. The following is a guest post from The Northern Miner, one of the best known mining newspapers in North America. The feature company is Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTC). This article by Trish Saywell nicely articulates why the company could be a big winner if long-term uranium prices, currently around US$32/lb, climb to US$40/lb or more in the next two to three years. That’s not a big move in the grand scheme of things. At US$40/lb, Blue Sky’s main project has an after-tax IRR of 20%. But, if uranium prices spike higher, as they frequently have in the past, we could certainly see US$50, US$60, US$70, US$80lb. And, if Blue Sky could double or triple the size of its uranium and vanadium deposit, it could be sitting on a truly world-class project. Please see disclosures at the bottom of the page. – Peter Epstein Blue Sky Uranium Advances Amarillo in Argentina Argentina has three nuclear reactors and plans for more, yet the country has no domestic uranium production. Blue Sky Uranium (TSXV: BSK; US-OTC: BKUCF) hopes to fill that void. “They import uranium from Kazakhstan and Canada, so having a domestic source would be a preference, and they’re potentially our first customer,” Nikolaos Cacos, the company’s president and CEO, tells The Northern Miner. The country exports small nuclear reactors, too, which are built … Continue reading

Exceptional Times for Gold Warrant Special Update

Source: Clive Maund for Streetwise Reports 06/17/2019 Technical analyst Clive Maund charts gold and explains why he believes this is a good time to build positions. With things shaping up so well for gold, we can certainly take any short-term correction in our stride, and more than that, we can seize upon it as an opportunity to build positions further across the sector, whether by means of ETFs, stocks or options, and of course, gold itself. Several factors suggest that a modest short-term correction is likely before the major breakout occurs. Gold is overbought after its recent run-up and is rounding over beneath the major resistance approaching $1400, as we can see on its latest 6-month chart below. Thus, the appearance of a short-term bearish “shooting star” candlestick on its chart on Friday coupled with its latest COTs showing Commercial short and Large Spec long positions hitting rather extreme levels suggests that it is likely to react back over the next week or two to allow things to cool for a bit before the major breakout occurs. The current COT structure IS NOT regarded as bearish overall, because we would expect speculators to pile in at the start of a big move—positions can be expected to get much more extreme once the big breakout occurs, flying off the charts and staying high as the first major upleg of the new bull market unfolds. Click on chart to pop-up a larger, clearer version. Fundamentally, the compelling reasons for a major gold … Continue reading

The Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not?

Source: Michael Ballanger for Streetwise Reports 06/17/2019 With the precious metals markets range-bound and driven by forces beyond his control, sector expert Michael Ballanger turns his contrarian eye to the past. With gold enjoying its best week of the year, with the Daily Sentiment Index charging northward, with the Relative Strength Index (RSI) pressing 72 for the GLD, with the RSI for GDX pushing 75, and finally, with the newsletter community all falling on top of themselves with self-laudatory backslaps, I think it is time to adopt the contrarian view and step back. It was less than five weeks ago, with gold and the miners all coming off sharply oversold conditions (RSI in the mid-high 30s), that I wrote that “carpe diem” in reference to ownership of GLD calls and my two favorite leveraged miners, NUGT and JNUG. Sure enough, JNUG has moved from $6.50 to $9.50 and NUGT from $14.50 to $22.10, while the GLD July $120 calls rocketed from $2.20 to $7.60. (Note: I did not get “top tick” for any of them, but did bank yet another decent 40% return on the miners, and a double and a half on the GLD calls). The point is that while I would love for gold to break out of this bullion bank headlock at the $1,350–$1,375 band of resistance, history has proven it to be a formidable obstacle and one that you absolutely must face. Here are a few charts illustrating my point: First, the GLD, hated by many, … Continue reading

Exploration Continues at Three Australia Gold Projects

Source: Maurice Jackson for Streetwise Reports 06/17/2019 Dr. Quinton Hennigh, chairman of Novo Resources, in conversation with Maurice Jackson of Proven and Probable, discusses his company’s current exploration efforts at three projects in Australia., Maurice Jackson: Joining us for conversation is Dr. Quinton Hennigh, the president and chairman of Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX), which is delivering a new paradigm in gold exploration and investing. Dr. Hennigh, welcome to the show. We have a number of topics to discuss today. Before we begin, Dr. Hennigh, who is Novo Resources and what is the opportunity you present to the market? Quinton Hennigh: Novo is Canada-listed but Australia-focused gold company. We’re exploring for gold deposits that are quite unusual. They’re conglomerate hosted deposits derived from in the Pilbara region in northwest Australia. This is a region we think is endowed with a very large quantity of gold, and we’re exploring some of these very unusual deposits. In the prospect we’ll be able to basically build a brand new, major gold camp in Australia. Maurice Jackson: Dr. Hennigh, let’s begin with the eastern portion of Novo Resources’ gold project portfolio, and go back to the first of April, and revisit some of the company’s continued successes since our last interview, beginning with an update on the resource at Beatons Creek gold project. What can you share with us? Quinton Hennigh: Beatons Creek was our flagship operation for many years. It’s in the East Pilbara. It’s in a town called Nullagine. We focused at … Continue reading

Analyst: U.S. Miner's 'Nevada Guidance Lowered, Longer-Term Outlook Unclear'

Source: Streetwise Reports 06/13/2019 The company’s cost cutting efforts are addressed in a CIBC report. In a June 6 research note, CIBC analyst Cosmos Chiu reported that Hecla Mining Co. (HL:NYSE) lowered 2019 guidance for its Nevada assets “but offered few insights into a longer-term solution for the operations.” The new Nevada numbers for the year are 60,000 ounces (60 Koz) of gold production at an all-in sustaining cost (AISC) of $1,750 per ounce (1,750/oz), down from 78 Koz. Chiu noted the revised numbers are better than CIBC’s expectation of 38 Koz ounces at an AISC of about $2,000/oz but they may be unachievable given that the company only produced 10 Koz in Q1/19 and is expected to yield about the same amount in Q2/19. Consequently, CIBC now models the Nevada operations bringing in 52 Koz total in 2019 at an AISC of about $1,850/oz. With respect to its Nevada operations, Chiu pointed out, Hecla plans to close Hollister and limit new development at Fire Creek to help reduce the companywide capital expense by $12 million to $138 million. “Mining in 2019 will focus on predeveloped ore at Fire Creek’s Spiral 2 and remnant stopes at Midas,” he added. Also regarding cost cutting but at the corporate level, Chiu indicated, Hecla expects to lower its 2019 exploration budget by $9 million and general and administrative expenses budget by $4 million. Looking forward, “a potential impairment of the Nevada operations will be assessed at the end of Q2/19, but Hecla does … Continue reading

MLP to Divest U.S. Gas Storage Assets, Focus on Refinery Services

Source: Streetwise Reports 06/13/2019 The benefits of the deal to the partnership are discussed in a Raymond James report. In a June 10 research note, Raymond James analyst Justin Jenkins reported that Martin Midstream Partners L.P. (MMLP:NASDAQ) agreed to sell Cardinal Gas Storage, its Arcadia, Cadeville, Monroe and Peryville assets, to the private company Hartree Cardinal Gas for $215 million in cash. The Cardinal assets comprise about 50 billion cubic feet of storage capacity in Mississippi and northern Louisiana. Closing of the transaction is expected at the end of Q2/19. Jenkins noted the divestiture should achieve two ends for Martin Midstream: stabilize its balance sheet and improve its equity performance. The master limited partnership’s reason for the assets sale was to delever its balance sheet and focus solely on its refinery services operations. Indeed, Jenkins wrote, the transaction should significantly reduce leverage, particularly because the assets are to be sold “at an attractive roughly 10.5x multiple,” generating more revenue than expected. In turn, the leverage reduction should boost the stock price, currently $6.63 per share, over time. This “should be welcome news to investors after the stock’s difficult run over the past few weeks (down 8.2% last week and 17.2% in the past month),” Jenkins commented. The next catalyst for the partnership, Jenkins noted, is stability of Q2/19 earnings. Raymond James has an Outperform rating on Martin Midstream. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services … Continue reading

Barksdale Capital Gains Stamp of Approval from Teck

Source: Bob Moriarty for Streetwise Reports 06/13/2019 Bob Moriarty of 321 Gold discusses a company with an Arizona copper project that has been getting a lot of attention. I first wrote about Barksdale Capital Corp. (BRO:TSX.V) in late February of this year. As the price of copper dropped so did the price of the shares. They were $0.55 then, have recovered a little and only $0.57 today even as the story is better understood. They made a giant step forward a few days ago when Teck stepped up to the plate and took a $1.5 million dollar placement into Barksdale. That will put them at 8% ownership in addition to a 15% ownership already by Osisko and having Eric Sprott as a major investor. I cannot stress enough what a simple decision this is to invest in what will be a major base metals deposit. It sits on the border with the $2.1 billion Taylor project owned by South32. But one of the world’s leading CRD experts, Peter Megaw, believes that Barksdale holds the heart of the system and the feeders to the Taylor project. I’ll be as direct as I can possibly be. If the Taylor project is worth $2.1 billion and Barksdale has the lion’s share of the system, Barksdale is worth a hell of a lot more than $21 million for their 67.5% of the sweet spot. Management thinks so, I think so, Osisko thinks so, Eric Sprott thinks so and now Teck thinks so. Just what … Continue reading

Royalty Generator Adds Assets in Goodpaster District of Alaska

Source: Maurice Jackson for Streetwise Reports 06/11/2019 The president and CEO of this royalty company discusses what Maurice Jackson of Proven and Probable calls a “highly efficient, three-pronged business model.” Maurice J.: Joining us for conversation is David Cole, the president, CEO and director of EMX Royalty Corp. (EMX:TSX.V; EMX:NYSE.American), the royalty generator. Mr. Cole, we brought you on today to discuss EMX Royalty’s transactions and interest in the Goodpaster District of Alaska. But before we begin, Mr. Cole, please introduce us to, EMX Royalty, and the opportunity you present to the Market. David Cole: EMX Royalty Corp. is a company that acquires royalties on metal deposits, most specifically gold, and copper, and other metals of interest around the world. Royalties are fantastic financial instruments that expose the royalty holder to long-term upside of these assets. Maurice J.: Mr. Cole, the company is thriving, while much of the natural resource space, witnessing supply destruction and competition, is becoming capital constrained. Share with us how EMX Royalty employs a highly efficient, three-pronged business model. David Cole: We are really proud of our business model, and it’s worked very, very well. We generate royalties through the prospect generation business model, where we go out and acquire prospective mineral rights utilizing our economic [and] geologic skill sets, and we have done that to a great degree around the world. We’ve reviewed over 5 million acres of mineral rights in our history. We have over two million acres of mineral rights on the books. … Continue reading

Rockridge Punches 2.45% CuEq over 15.2m Near Surface

Source: Bob Moriarty for Streetwise Reports 06/11/2019 Bob Moriarty of 321 Gold explains why he’s excited about the drill results at this company’s copper mine. It’s no secret that copper is both in severe shortage with increasing demand at the same time production is declining. A new Canadian based junior exploration company has an interesting direction they are moving in. Rockridge Resources Ltd. (ROCK:TSX.V) wants to use modern advanced technology to test old mining camps in safe jurisdictions. Their latest drill results from their Knife Lake deposit in Saskatchewan seem to indicate they are on to something. Aided by Ron Netolitzky of the Canadian Mining Hall of Fame, the company made a decision to focus on known areas of mining that hadn’t been explored with modern techniques. The Fraser Institute ranks Saskatchewan as the #3 highest mining jurisdiction in the world. Rockridge is busy drilling their Knife Lake VMS deposit with a known but historic resource of 20 million tonnes of 0.6 copper and 0.1 g/t gold. Knife Lake is located in the Flin Flon mining camp, home to production of over 170 million tons of ore from 31 different VMS deposits since 1915. Rockridge is in the midst of a diamond core drill program of some eight to ten drill holes. This is the first drilling on the project since 2001. The program has two goals; one is to confirm past drill results and to expand the area of known mineralization. Early results have been excellent. On April 30th … Continue reading

Rockridge Resources Reports 7 Assays

Source: Peter Epstein for Streetwise Reports 06/11/2019 Peter Epstein of Epstein Research outlines the latest news from this explorer, including an intercept of 15m at 2.45% copper equivalent. Rockridge Resources Ltd. (ROCK:TSX.V) is an exploration company focused on acquiring, exploring and developing mineral resource properties in Canada. Its focus is copper and base metals—more specifically base, green energy and battery metals—of which copper is all three. It is focused in not just in any place, only top-tier mining jurisdictions such as Saskatchewan. And only in mining districts that have had significant past exploration, development or production. And only on projects in close proximity to key infrastructure. Rockridge’s management team, advisors and board expertly and methodically eliminate many of the risk factors, early on, that can kill projects. This is a tremendous team for a company with a market cap of just CA$5.6 million (CA$5.6M) / US$4.2M. New CEO Bolsters Already Strong Team Late last month, Rockridge appointed Grant Ewing, P.Geo, to be its new CEO. Jordan Trimble remains as president and a director. Grant has more than 25 years’ experience in the metals and mining space. His expertise covers the mine development cycle, from early stage exploration through to production. I spoke with Grant last week and was impressed with his very extensive knowledge of base metals and his understanding of the district that hosts the company’s Knife Lake project. Grant seems to be an ideal person to help advance the project and make new discoveries. Please see more about … Continue reading