Mickey Fulp: Why There Are Very Few Real Silver Companies

Source: Maurice Jackson for Streetwise Reports 11/13/2019 Mickey Fulp, the Mercenary Geologist, sits down with Maurice Jackson of Proven and Probable to discuss silver and its position among the metals, as well as some of his favorite copper, gold and uranium companies. Maurice Jackson: Joining us for a conversation is the Mercenary Geologist, Mickey Fulp. Thank you for joining us. Two years ago, Mickey, we discussed the value propositions in tax-loss selling. Last year we did one on peak gold. I like to have your thoughts today regarding the value proposition of silver bullion, silver junior mining companies, and then those that extract silver, and if those aren’t the ones that we should be focusing our efforts on, then let’s find out what you are focusing your efforts on. So first let’s discuss silver bullion. There’s a number of speculators in the space that they’re always optimistic about the value proposition, currently the silver ratio is, what, in the 80s, mid-80s? Mickey Fulp: 84 as of Friday. Maurice Jackson: What are your thoughts on that? Does that surprise you? Should it be lower? Should it be higher or is it in the right place? Mickey Fulp: Well, it is what it is. It’s what the market says it is. So it’s not my point to judge if it should be higher or lower. This is what the market says it is. I can go on historical precedent and good reasoning and say since January of 1970 to the present month, … Continue reading

Gold and Silver: Capitulation Time

Source: Michael Ballanger for Streetwise Reports 11/12/2019 With gold and silver prices having tumbled, sector expert Michael Ballanger outlines how he will weather the storm. “People everywhere are being fed propaganda, lies and false stimuli of all kinds, but deep in their hearts, deep in their instincts, they know something is wrong.”—G. Edward Griffin, author of The Creature from Jekyll Island My usual weekend missive was mildly delayed for a very good reason; I spent most of Friday evening and Saturday morning formulating this wonderfully verbose theory on why the Fed’s sudden shift from “quantitative tightening” to “massive stimulus” had such a negative effect on yields, with an associated and very sharp spillover into my beloved precious metals. Having read it over several dozen times, I then began mulling over the various charts that I post from time to time and quickly decided to “bin it,” because my readers no longer wish to hear about the COT report or the “cartel” or the “egregious open interest” or “fraudulent bullion banks.” I can’t state this forcefully enough: We have all seen this before way too many times. It gave me great delight to hammer the delete button while firing a shot glass at the quote screen. Gold, silver and the related junior and silver miners are now in full retreat and in danger of moving from “most-favoured” status to “get-me-the-hell-out” status (and I am being generous, because it looks like we may have already entered capitulation mode). So I scrapped the … Continue reading

Providence Sits on 6 High-Grade Gold Mines from Yesteryear

Source: Bob Moriarty for Streetwise Reports 11/12/2019 Bob Moriarty of 321gold profiles a company with historical gold mines in California. A friend approached me a couple of years back about putting some money into a private placement for a young exploration company, Providence Gold Mines Inc. (PHD:TSX.V; PRRVF:OTCBB), that had an option on a number of old gold mines in the California mother lode country. I did and have waited patiently (well, not really patiently) for some time to do a piece about the company and what they have. But there was nothing that would move the price of the shares off TDC until recently. They have a great story but lacked a hook that would grab the attention of potential investors. Basically the company picked up an option on half a dozen high grade gold mines that shut down in 1916 after production of over 225,000 ounces of gold. The terms call for $1 million CAD spent on exploration in the first two years, an additional $750,000 CAD in the third year to earn 50%. Providence can buy the remaining 50% for $5 million US and there is a 2.5% royalty that can be bought down to 1% for $1 million US. The six mines were typical high-grade mother lode deposits. Production of 225,000 ounces in total would make them some of the biggest mines in California 100 years ago. Historical records suggest some areas of one of the mines were a high as 15 ounces to the ton. … Continue reading

White Gold Delivers, Investors Don't

Source: Bob Moriarty for Streetwise Reports 11/10/2019 Bob Moriarty of 321gold discusses the stock price of this explorer with a major gold resource in the Yukon. White Gold Corp. (WGO:TSX.V; WHGOF:OTCBB) is one of those companies with great partners, Kinross Gold as well as Agnico Eagle, over 1.7 million ounces in a gold resources in one of the best gold camps in Canada but can’t seem to get any respect. At the end of December of last year the shares traded as high as $1.69 but have tumbled lately to a new yearly low of $0.73. I’ve said this before and I’ll keep saying it until everyone gets it. The key to making a profit in investing is to buy when things are cheap and sell when they are dear. White Gold has gone from $0.54 in September of 2018 up to $2 a month later and has dribbled back down. Surely there was a lot of potential to trade those shares at a profit in there somewhere. In spite of the bundles of crisp $100 bills being tossed on a bonfire by the Fed since a Black Swan event in mid-September that no one can seem to figure out what caused, speculators in gold got carried away. The open interest hit a new record high and lately the price dropped a lot as gold is making a perfectly normal correction. Generally we have a low in mid-summer and at the end of the year at Tax Loss Silly Season … Continue reading

Alianza Minerals Hits High-Grade Silver at Haldane During First Stepout Drilling

Source: The Critical Investor for Streetwise Reports 11/08/2019 The Critical Investor does a deep dive into this explorer’s drill program at its Yukon silver project. All cashed up after raising C$1.1 million in an oversubscribed financing in July, Alianza Minerals Ltd. (ANZ:TSX.V) was ready for its 2019 Phase II drill program at its flagship Haldane silver project, after the Phase I drill target defining program was completed earlier this summer, and drilling began in late August. The main focus for management were the new stepout targets like the Bighorn and Ross anomalies, and the extension of Mount Haldane Veins System (MHVS) targets, to indicate size potential, and are presented in red below: A total of 963 meters was cored in four holes. It took quite a while, according to management the assay lab was relatively slow, an issue several explorers are dealing with this year. On October 22, 2019, the company reported drilling had confirmed the presence of new silver-bearing vein targets at the Bighorn Zone. The first two holes of the program tested the Ross and Bighorn targets. One hole was completed at each of the Ross and Bighorn anomalies, with two holes targeting the A and B veins of the Middlecoff Zone in the Mt. Haldane Vein System target area. Highlights of the first hole HLD19-15 at the Bighorn Anomaly include 125 g/t Ag and 4.4% Pb over 2.35m from 154.15m depth. In itself this is not an economic intercept, as it would be a gold equivalent of … Continue reading

Lion One Hits Bigly

Source: Bob Moriarty for Streetwise Reports 11/07/2019 Bob Moriarty of 321gold discusses the implications of the drill results the company released at its gold project in Fiji. When I found out Quinton Hennigh was going to be a geological advisor to Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) back in early 2019, I wrote about them. They just announced results that pretty much prove what I was trying to say. In technical terms, they hit Bigly. Lion One talked about what they were aiming for in the drill program in a press release issued over a month ago as they began the drill program. They seem to have hit exactly what they were aiming for but are criminally remiss in not posting the latest press release on their GD web site. I shall chastise them severely. 2019-11-07 08:49 ET – News Release Mr. Walter Berukoff reports LION ONE EXPANDS NAVILAWA ALKALINE GOLD SYSTEM Lion One Metals Ltd. has provided an update on recent exploration progress at its 100-per-cent-controlled Navilawa alkaline gold project in Fiji. Drilling Highlights: The first of a series of four deep diamond drill holes, TUDDH493 oriented eastward at an inclination of 55 degrees, is nearing its target depth of approximately 600 m after undercutting the entire Tuvatu lode network near the bottom of the current delineated resource. This hole targets a particular area where several high-grade structures appear to be converging. Multiple mineralized intercepts are apparent in core from TUDDH493, most notably: a 11.3 m interval of quartz … Continue reading

Base Metals Miner Posts 'Strong Operating Performance' in Q3/19

Source: Streetwise Reports 11/06/2019 The short-term outlook for the Canadian company is provided in a CIBC report. In an Oct. 25 research note, CIBC analyst Oscar Cabrera wrote that Lundin Mining Corp. (LUN:TSX) “continues to offer investors an attractive combination of a strong balance sheet, operating execution and financed brownfield growth.” This view comes after the metals producer posted “strong operating performance” in Q3/19, “supporting completion of expansion projects” and CIBC adjusted its model accordingly, Cabrera added. Upcoming near- and medium-term catalysts for Lundin Mining are development progress at Candelaria and Neves Corvo and expansion progress at Chapada via exploration. Lundin has a site visit scheduled at Chapada on Nov. 8, Cabrera reported. The analyst commented that how Lundin Mining next allocates capital, whether to continued growth or to shareholders, “will be important to rerate” the company’s shares. Further, expansion potential at Chapada should improve Lundin’s valuation that currently trails that of its peers. CIBC has an Outperformer rating and a CA$8 per share target price on Lundin, whose stock is currently trading at around CA$7.33 per share. 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 to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are … Continue reading

Bravada Gold: Checking Wind Mountain Economics at $1,500 Gold

Source: Thibaut Lepouttre for Streetwise Reports 11/05/2019 With gold prices above $1,500/ounce, Thibaut Lepouttre of Caesars Report runs the numbers to see whether this mine might be worth taking another look at. Introduction When the gold price started its move during the summer, someone asked us, “Do you know any ‘old and forgotten’ projects that aren’t very appealing at $1,250 gold but have a lot of leverage on the gold price that would make it viable at $1,500 gold?” An interesting question. As a lot of projects get recycled during good years in the mining sector, you tend to see the same projects again and again and again. Sometimes the projects have a different name, sometimes the focus is on a different commodity, sometimes there is a new management team with a genuine desire to look at something with a different perspective. Quite often projects get recycled for a quick promotion tour and subsequent pump to offload paper into the hands of unsophisticated shareholders. But sometimes projects are just gathering dust on the shelves—forgotten by investors and placed on the backburner by management teams while waiting for better market conditions. One of those projects that is “okay but not appealing” at $1,250 gold is the Wind Mountain project in northwestern Nevada, owned by Bravada Gold Corp. (BVA:TSX.V). Revisiting the Wind Mountain project at $1,500 gold and $17 silver As the market still isn’t too keen on funding pure exploration stories, perhaps Bravada Gold could also revisit its Wind Mountain project, … Continue reading

Defense Metals Drills High Grade REOs

Source: Bob Moriarty for Streetwise Reports 11/05/2019 Bob Moriarty of 321gold dives into rare earth elements and one company exploring a high-potential property in British Columbia. I know of no sector in the resource space as hard to get a handle on as that of the Rare Earths or REOs, AKA REEs. In the last twenty years I have only come across one investor who actually understood which companies had red meat and which were pushing tofu. Since 321gold is a tofu free zone, I’ve been hesitant to even start writing about the sector. Months ago one of my advertisers, Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTC; 35D:FSEQB), approached me about writing a piece about them and their potential. More or less I agreed since I haven’t written anything about REEs for the longest time but I insisted they hand me something that would make it clear to my readers just what their potential was. To be clear, REE or REOs are not rare. There are seventeen elements called Rare Earths and while they are quite common, it is not common for them to be concentrated sufficiently to justify the expense of exploration and building a processing facility for mining them. Defense Metals has a project they call the Wicheeda property located in central British Columbia about eighty km north of Prince George. The property has excellent infrastructure, is on a primary forest service road connecting to a major highway and has experienced mining professionals located nearby. My primary problem was a … Continue reading

I'm Mad as Hell: Long Live Howard Beale

Source: Michael Ballanger for Streetwise Reports 11/04/2019 Sector expert dissects recent Fed and other government actions and discusses his recent precious metals trades. In the 1976 movie “Network,” British actor Peter Finch won an Academy Award for his stunning portrayal of news anchorman Howard Beale, whose on-air descent into insanity, prompted by the social and economic conditions of the times, is now legendary. The iconic scene where Beale, clad in a rumpled raincoat and with wet hair plastered to his head, goes on national TV and implores watchers to go to their windows and scream “I’m mad as hell and not going to take this anymore!” is one of the most awe-inspiring scenes in the history of filmmaking. Should you wish to watch the scene for yourselves, the link can be found here. You know, I must confess that there are days that are becoming all too frequent now, that I feel like a 2019 version of Howard Beale. I watched last Wednesday as Fed Chairman Jerome Powell stood in front of a room full of reporters and masterfully executed the Art of Obfuscation as he convinced the financial markets that $60 billion per month of paper money creation is a) not inflationary, b) not an emergency measure and c) in no way to be considered “quantitative easing” (QE). As if that alone was insufficient in sending me to the closest window, Friday at 8:30 EST, they trot out the BLS non-farm payroll numbers as an upside “beat” thanks largely … Continue reading