Nevada and Canada Miner Reports Q2 Production Up 94%

Source: Streetwise Reports 07/20/2017 Preliminary Q2 operating results show production up 94% and sales up 107%, a record for this company’s Nevada and Canadian mines, news that was noted by a trio of industry analysts. Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) released its second quarter operating results on July 18, reporting record production and sales. The company noted that it produced 66,629 gold equivalent ounces, a 94% increase from the first quarter, and sold 69,522 ounces, a 107% increase from Q1. Mr. Paul Huet, Klondex’s president and CEO stated, “As expected, the operating results for the second quarter were the best in the company’s history. We processed all of the ore that was stockpiled at the Midas mill at the end of the first quarter plus we continued to execute our mine plans, mining an additional 53,248 gold equivalent ounces in the second quarter.” Analyst Heiko Ihle of Rodman & Renshaw noted in a July 19 company update that the large quarterly increase was “mainly due to a significant increase of production from Fire Creek, which we attribute primarily from the processing of stockpiled ore. . .the company plans on processing Hollister ore through the Midas mill in 2H17, and therefore remains on track to meet 2017 guidance. We highlight that our model estimates 2017 production to reach 219,000 gold equivalent ounces, in-line with management’s 2017 production guidance.” Ihle also stated that at Fire Creek, production “totaled 45,773 gold equivalent ounces, a 138% increase over 1Q17 production. We note that 1Q17 … Continue reading

Gold in Japan, a Nation Unexplored for Many Years

Source: Bob Moriarty for Streetwise Reports 07/20/2017 Bob Moriarty of 321 Gold profiles a company that may have an inside edge in gold mining in Japan. Even though Japan, being on the Ring of Fire, has a long history of high-grade gold mines, the industry has been mostly quiet since the middle of World War II when gold mining in the country stopped. The highest-grade operating gold mine in the world today is located in Japan with a head grade of over 40 g/t gold. That’s the Hishikari Gold Mine located in Kagoshima. I recently traveled to northern Japan to visit some gold projects owned by Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB). Akiko Levinson runs the company; Quinton Hennigh is a director and technical advisor. Doctor Kuang Ine Lu is the onsite exploration and technical expert. Akiko Levinson and Quinton Hennigh first got together at Gold Canyon Resources, which Akiko had been running for many years after the death of her husband who was the president and founder. Until Quinton Hennigh stepped in to advise Gold Canyon, the company didn’t make much progress. Quinton and his team spent eighteen months going over the technical data and rethinking the geological model. In the end the Levinson and Hennigh team took the Springpole gold deposit to about five million ounces of gold. In late 2015 First Mining Finance took over Gold Canyon with the shares eventually reaching a high of $1.31 apiece. When First Mining took over Gold Canyon they let Akiko spin … Continue reading

Explorer on Target to Issue Upgraded Resource by Early Fall

Source: Streetwise Reports 07/20/2017 Southern Silver Exploration’s core drill program at Cerro Las Minitas in Durango, Mexico, is coming to an end and the company sees the potential for a substantial resource upgrade, say Robert Macdonald, Southern Silver’s VP for Exploration, and Jay Oness, VP for Investor Relations. In this interview with Streetwise Reports, they also discuss the recently acquired additional claims, the Oro project in New Mexico and the JV with Electrum. The Gold Report: Thank you for joining us today. Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) is nearing the end of its 2016-2017 core drill program at Cerro Las Minitas in Mexico. What has the drilling revealed? Robert Macdonald: We are currently drilling two holes and will probably drill one or two more before the end of the program. The total meterage will be over 12,000 meters (12,000m) for the entire program that started late last fall. The focus of the program has been to test deeper targets that occurred beneath the currently known deposits, the Blind and the El Sol zones. The current program was successful in delineating a significant mineralized zone beneath those deposits. This target now has an approximate strike length of 650m and a width of up to 350m. This is a significant addition to what we identified previously and will contribute to increasing the mineral resource, which we anticipate updating in early fall 2017. The other significant aspect to the results that we have had to date has been some very encouraging … Continue reading

Acquisition of Canadian Gold Company Contributes to Pressure on Stock

Source: Streetwise Reports 07/20/2017 In resuming coverage of Eldorado Gold following the acquisition of Integra Gold and its Lamaque property, BMO Capital Markets analyst Andrew Kaip looked at the impact of the move, as well as at other factors pressuring Eldorado stock. In a BMO Capital Markets July 10 research report on Eldorado Gold Corp. (ELD:TSX; EGO:NYSE), analyst Andrew Kaip wrote, “While we view the Integra acquisition as neutral, based on the benefit of future tax synergies and/or demonstrated resource growth, we expect it will take time for ELD to overcome the perception that it overpaid for Integra,” adding that “benefits of the acquisition also include a step towards diversifying growth away from Greece. We now expect Canada to contribute ~30% of growth over the next 5 years, compared with Greece at ~60%.” After acquiring Integra on May 15, “shares of ELD have declined 33% versus a 7% decline in the GDX and a flat gold price,” Kaip stated. “We typically expect shares of the acquirer to come under pressure as investors arbitrage the deal. However, shares of ELD have continued to underperform relative to peers owing to a number of external events that have placed selling pressure on shares of ELD.” Those external events included “index deletions, Greek arbitration and more recently the production revisions at Kisladag,” the report notes, adding the company “would not meet its original 2017 guidance at Kisladag at 230-245koz, due to higher-than-expected cyanide requirements in the heap leach. Revised guidance was established at 180-210koz … Continue reading

Molori Energy Ready to Explode Higher

Source: Bob Moriarty for Streetwise Reports 07/19/2017 A novel use of fracking could ramp up production in the conventional North Texas oil wells that Molori Energy holds in a JV with Ponderosa Energy, says Bob Moriarty of 321 Energy. Energy resource companies are uniquely different than gold and silver resource companies. With energy companies, you either hit and produce oil and gas or you go out of business. With junior resource companies in the gold and silver space, you never want to try to go into production. After all, that’s where you fail. You can never fail as long as you keep drilling. With gold and silver juniors, they want to drill until their projects resemble Swiss cheese, not produce. After all, you might eventually hit something if investors will keep throwing money at you. All the while, management can continue to collect those fat paychecks and issue themselves more options every time their stock hits a new low. With energy you either produce or die. And a lot of time you die even if you do produce. They all die for exactly the same reason. Oil and gas prices go up and down faster than the blink of an eye. Oil first hit $118 in May of 1980 only to plunge to a low of $17 by November of 1998 before soaring to $156 in June of 2008 only to tumble to $48 by January of 2009, a mere seven months later. Oil then rocketed higher to a high … Continue reading

US Uranium Company Advances Its Assets

Source: Heiko Ihle of Rodman & Renshaw 07/18/2017 With core drilling and underground development nearly complete at its Canyon Mine and progress noted in other aspects of this company’s business, Rodman & Renshaw analyst Heiko Ihle provided an update to investors. Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) “continues to advance its pipeline of assets while maintaining production optionality,” Heiko Ihle wrote in a July 10 research report. Obtaining “a key license amendment for its expansion at Nichols Ranch” is among the milestones the company has achieved in recent months, stated Ihle. With the license, granted by the U.S. Nuclear Regulatory Commission in spring, “Energy Fuels has now received all of the necessary permits, licenses, and approvals needed to extend the Nichols Ranch ISR Project to the Jane Dough wellfields.” In addition, Ihle commented on the company’s uranium production levels, which he expects to improve in the second quarter of 2017. In the first quarter, “uranium production totaled 92,000 pounds. . .while 60,000 pounds of uranium were sold pursuant to a long-term contract at an average realized price of $58.28 per pound.” Finally, with regard to the company’s Canyon Mine, Ihle noted that underground development and core drilling was “substantially completed” in March, “resulting in significant capital development at the mine.” Ihle also cited the Energy Fuels’ report of “positive exploration results from the Canyon Mine, which included drill holes that had strong uranium and copper intercepts. . .we would not be surprised to see significant expansion of resources within the Canyon … Continue reading

Auryn Begins World-Class Exploration on Seven Properties

Source: Bob Moriarty for Streetwise Reports 07/17/2017 Bob Moriarty of 321Gold explores the prospects of a company he believes is run by a “dream team” that has assembled a stable of world-class projects. Over the past eighteen years, since the low of gold at $252 in August of 1999, management teams in the junior resource industry have had all the opportunity in the world to prove their competence. Or lack thereof. For the first time in history, probably driven by demand for everything from China, every commodity was in shortage and exploded higher. I’ve never heard of that before. Companies with good technical teams and smart management all hit home runs in the past fifteen years. But, as in baseball, there were a few home runs and a lot more strikeouts or whiffed catches. Keegan Resources in Ghana proved to be a home run, going from $0.49 to $9+ with 10 million ounces of gold. The same management and technical team went from success in Africa to advancing a major gold district in Mexico when you couldn’t give gold away from 2011 until 2015. When I went to see them four years ago the stock was $0.67 and the company got no attention. My only disagreement with them was that they were underestimating the size of the project. In my eyes it was a lot bigger than they thought. Now they agree I got it right. That brilliant technical and management team sold the company a year later in the … Continue reading

Gold: Cheaper Than Buying Greek Villas in 2012

Source: Tom Beck for Streetwise Reports 07/16/2017 Tom Beck, founder of Portfolio Wealth Global, delves into the factors that drives gold investment demand. Gold prices peaked in 2011 at a price of $1,925 per ounce, and since then, it has plummeted. The bottom was set in 2015 when gold was hated and disregarded by investors—it was trading for $1,099. Portfolio Wealth Global has spent hundreds of hours speaking with world-class mining speculators, and what has become most clear to our members by now is that when this sector becomes ugly, distressed and disgusting, it also becomes awfully cheap and attractive—these attributes go hand-in-hand. That’s the gold playbook for massive profits. I personally own precious metals because it’s the sensible thing to do. I also own some cryptocurrencies, as a speculation into the future of payment systems. With the national debts of all modern nations, from Australia to Japan, the entire continent of Europe, Canada, and the granddaddy of all debtor nations, my native U.S. of A. ballooning into the tens of trillions, it’s not even an option to have only fiat digits in your asset portfolio—safe havens must also be accumulated. In 2008, when I started accumulating my “survival portfolio,” the clear-cut mentality of mining fortunes was revealed to me in the investment conference I attended. It was 2009, and Canadians were seeing a blood in the streets moment. This is not a sector in which you sit back and forget about your portfolio for a few years. Instead, it’s … Continue reading

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices

Source: Clive Maund for Streetwise Reports 07/15/2017 Technical analyst Clive Maund’s analysis of the charts is indicating that gold and silver are positioning for a big move upward. We’ve had to wait 18 months for an opportunity as big as the one we saw late in 2015 to appear again in the Precious Metals sector. “Wait a minute,” I hear you say, “prices were generally lower back then at that low than they are now, so how can it be as big an opportunity, as leverage is reduced?” Here are the reasons, one technical, the other fundamental. When prices rose out of the late 2015 low, which was the Head of the Head-and-Shoulders bottom shown to advantage on the 10-year chart for GDX (VanEck Vectors Gold Miners ETF) below, they were destined to retrace to mark out the Right Shoulder of the pattern, which is what now has most investors very negative towards the sector again. This time they don’t have to—they can now rise out of this trough and proceed to break out upside from the entire pattern to embark on a mighty bull market. The fundamental reason is this: most investors have been taken in by the specious central bank talk about “normalizing interest rates” and scaling back their bloated balance sheets, but they haven’t got a cat in hell’s chance of doing this. Why? Because debt (and associated derivatives) has expanded to such gargantuan levels that any attempt to bring it under control will send interest rates … Continue reading

Is this Gold-Silver Royalty Company Poised to Rally?

Source: Peter Epstein for Streetwise Reports 07/14/2017 Peter Epstein of Epstein Research explains why he believes the pieces are falling into place for this royalty and streaming company. I’ve written two articles [May 5] / [June 19] about an emerging precious metals Royalty/Streaming (R/S) company in the past two months. I figured that would have been enough until August, especially after the “flash crash” that sent silver briefly to US$ 15.21/oz. on July 7th. So why am I revisiting Metalla Royalty & Streaming Ltd. (MTS:CSA; NASDAQ:EXCFF) again so soon? First, I was reminded by several readers that an important catalyst for the company is its listing on the TSX Venture Exchange, within two months. I hereby restate that event as not just an important catalyst, but a near-term catalyst. While some might not think of two months as near-term, it is for those smart enough to buy shares BEFORE the up-listing. The average daily trading volume after the Coeur Mining deal was announced through the end of June has been ~120,000 shares. It would not take a hell of a lot of buying to return the share price to the $0.60’s {at $0.52 on July 10th}. Second, valuation as measured by a cash flow multiple is cheap compared to precious metal R/S peers. However, several peers are giants like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) and Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX), prompting some to question the wisdom in using majors as comps. Point taken. Metalla Royalty … Continue reading