Fundamentals in Supply and Demand Will Bolster Market for Rare Earth Elements

Source: Peter Epstein for Streetwise Reports 09/20/2019 In this interview with Craig Taylor, CEO of Defense Metals Corp., Peter Epstein of Epstein Research delves into the complexities and potential of rare earth metals markets, and discusses the company’s REE projects. Rare earth elements (REEs) have been in the geopolitical spotlight for much of the year. Many, myself included, are surprised that the combination of severe trade tensions between the U.S. and China, strong growth in wind farm installations (wind farms use lots of REE magnets) and emerging growth in electric vehicles over the next decade has not driven REE prices higher. However, if one scans the green energy/tech/battery metals landscape, one might notice something strange. Not only have REE prices not moved higher, vanadium, cobalt and lithium prices have all fallen precipitously over the past 15–18 months. My point is that commodity prices can and sometimes do remain weaker for much longer than people imagine possible. However, when the prices of these critical metals rebound, they can move really fast. Three times over the past 15 years the uranium price has increased by hundreds of percentage points within a 12-month period. Cobalt, lithium and vanadium had spectacular runs from 2015 to 2017, only to fall out of bed in 2018 and 2019. In many ways, rare earth metals are even more crucial to modern society than the green energy/tech/battery metals. Most important, they’re used heavily in every First World country’s military programs. I won’t list all of the offensive and … Continue reading

Explorer Extends Copper-Gold Mineralization to Depth at Flagship B.C. Project

Source: Streetwise Reports 09/19/2019 The key points regarding recent drill results and next steps are presented in a Haywood report. In a Sept. 4 research note, Haywood analyst Mick Carew reported that GT Gold Corp.’s (GTT:TSX.V) recent drill results from the Saddle North discovery at its Tatogga project in British Columbia are “positive overall.” “The results complement earlier results from Saddle North and demonstrate continuity within both high-grade core and lower-grade, near-surface mineralization,” he added. Carew reviewed the new drill results, which are from the completed first phase, consisting of 10,000 meters (10,000m), of the Saddle North program. Assay highlights included 1,206 meters (1,206m) grading 0.57 grams per ton (0.57 g/t) gold, 0.26% copper, 0.96 g/t silver from 18m downhole, including 51m grading 4.05 g/t gold, 0.3% copper and 3.06 g/t silver. Mineralization extended downplunge and along strike. Specifically, hole TTD126 extended copper-gold mineralization at depth to about 1,400–1,500m downplunge. At that depth, the higher-grade core spans about 250–300m in width by about 250–300m in strike length. Hole TTD125 suggested the potential for near-surface, open-pit mining as it showed lower-grade, near-surface copper-gold mineralization. It extended this shallow zone 200m to the northwest. Carew pointed out, however, that the bulk of the Saddle North deposit would likely require underground mining if an economic resource were defined, and such an approach can be capital intensive. Carew noted the next steps for GT Gold and Saddle North. The company is now in the drill program’s second phase, which will consist of a total … Continue reading

Miner Aims to Bring Nevada's Highest-Grade Silver Mine Back into Production

Source: Bill Powers for Streetwise Reports 09/19/2019 Bill Powers of Mining Stock Education interviewed Greg Crowe, president and CEO of Silver One Resources, at the recent Beaver Creek Precious Metals Summit, and got an overview of the company’s two Nevada silver projects and their potential upside for investors. Bill Powers: For about three years you’ve been the CEO of Silver One Resources Inc. (SVE:TSX.V; BRK1:FSE; SLVRF:OTC). You’re focused in Nevada. I didn’t really pay attention to this until you alerted me to the fact that Nevada is not the Gold State, it’s actually the Silver State. Talk to us a little about how Nevada is a good silver mining state. Greg Crowe: Well, essentially, it’s a silver mining state because California stole the name the Golden State. But I must admit that in the early days, back in the mid-1800s, silver was the dominant mineral being mined in Nevada. And one of the reasons that Nevada entered the Union was because silver was used to pay down the Civil War debt. And it became known as the Silver State, [with] lots of silver production, big mines like Comstock. The one that we are about to finish acquiring, called Candelaria, which was the richest producing silver mine in Nevada. That changed in the 1980s actually, which was interesting, with the discovery of gold and Barrick Gold Corp.’s (ABX:TSX; GOLD:NYSE) big discovery up in northern Nevada. And since then everybody’s been looking for gold, gold, gold. But we like silver. And we … Continue reading

Gold Leads, Will the Rest Follow?

Source: Matt Geiger for Streetwise Reports 09/19/2019 Fund manager Matt Geiger provides his overview of the resource market and shares some principles he is using to invest in today’s market. The natural resource landscape has shifted dramatically since the end of 2018. At the time, we were still nursing our wounds from an unexpectedly vicious 2018 and hoping to avoid a repeat performance in 2019. I did speculate that “we may have already exited the bear market as of late December 2018. The nickel price is up roughly 25% YTD, the gold price is up roughly 10% since early December, the TSXV is up 15% since mid-December, and the MJG partnership itself was up 20.5% in January alone.” In hindsight, it looks like we did indeed exit the bear market as of late December 2018. The nickel price is now up 54% YTD. The price of gold is now up 25% since earlier December. The MJG partnership was up 42% in the first half of the year. The major diversified miners have hit 52-week highs within the past 60 days. The major precious metal royalty names have hit either multi-year or all-time highs recently. The same applies to the GDX and GDXJ. These are the types of moves you’d expect to see in a mining bull market. While other metals such as nickel and iron ore have also seen sharp price increases this year, the stars of the show have been gold and its sister metal silver. In June, the … Continue reading

Explorer Eagerly Awaits Results of Summer Drill Program in Prolific Quebec Mining Area

Source: Streetwise Reports 09/17/2019 Property receives first drilling in more than a decade. Black Tusk Resources Inc.’s (TUSK:CSE; BTKRF:OTC) 100%-owned Golden Valley property is located in the highly prolific Abitibi Greenstone Belt in northwest Quebec. The belt has produced more than 100 mines and 170 million ounces of gold since the early 1900s. Golden Valley is in a world-class mining area, located about 26 kilometers from the Casa Berardi Mine, operated by Hecla Mining Company, that has produced more than 1.9 million ounces of gold since 1988. Black Tusk is drilling to verify and expand upon the more than 4,000 meters of drilling conducted historically on the property. One highlight hole drilled by Noranda Inc., LAB87-B2, returned: 0.91 gram per tonne (g/t) gold over 13.3 meters (51.3 meters to 64.6 meters), including 1.82 g/t gold over 4.5 meters from 57 meters to 61.5 meters, including: 1.4 g/t gold from 57 meters to 58.5 meters; 2.15 g/t gold from 58.5 meters to 60 meters; 1.90 g/t gold from 60 meters to 61.5 meters. Another hole, LAB109-03-01, drilled by Noranda in 2004, returned: 1.40 g/t gold from 51.3 meters to 52 meters; 0.51 g/t gold from 107.3 meters to 108.2 meters in iron formation within basalt; 1.25 g/t gold from 109.5 meters to 112.1 meters, including: 0.99 g/t gold from 109.5 meters to 110.2 meters in iron formation within basalt; 2.49 g/t gold from 110.2 meters to 111.1 meters in iron formation within basalt; 0.32 g/t gold from 111.1 meters to 112.1 … Continue reading

Rating, Target Upgraded on Gold Mining Major Undergoing a Turnaround

Source: Streetwise Reports 09/17/2019 The reasons to be optimistic about this company are covered in a BMO Capital Markets report. In a Sept. 11 research note, analyst Andrew Kaip reported that his firm BMO Capital Markets upgraded its rating to Outperform and raised its target price to $50 per share from $40 on Newmont Goldcorp Corp. (NEM:NYSE). Driving those positive changes are BMO’s improved outlook for the mining company and the precious metals over the next roughly three years. “Newmont Goldcorp is in the early stages of a turnaround, and we see the risk-reward as compelling, supported by a valuation discount we expect to begin to narrow as the company executes against its strategy,” Kaip added. The U.S.-based miner’s stock is currently trading at about $39.84 per share. Also, Kaip presented the primary reasons why the market is likely to rerate Newmont Goldcorp. One, its management team targets stable production, of 6,000,000–7,000,000 ounces, over the next several years, supplemented by its production of byproducts. Whereas the company could divest of assets during that period, BMO expects they would only be noncore ones. Two, Newmont Goldcorp “established an exemplary track record of consistency and has delivered over $2 billion in improvements since 2013 through its Full Potential program,” Kaip pointed out. “Investors are beginning to warm up to the turnaround and Full Potential efforts, with 40% of the $365 million to be realized this year, 80% next year and 100% in 2021.” Three, the mining company has a deep pipeline of … Continue reading

Rating, Target Upgraded on Gold Mining Major Undergoing a Turnaround

Source: Streetwise Reports 09/17/2019 The reasons to be optimistic about this company are covered in a BMO Capital Markets report. In a Sept. 11 research note, analyst Andrew Kaip reported that his firm BMO Capital Markets upgraded its rating to Outperform and raised its target price to $50 per share from $40 on Newmont Goldcorp Corp. (NEM:NYSE). Driving those positive changes are BMO’s improved outlook for the mining company and the precious metals over the next roughly three years. “Newmont Goldcorp is in the early stages of a turnaround, and we see the risk-reward as compelling, supported by a valuation discount we expect to begin to narrow as the company executes against its strategy,” Kaip added. The U.S.-based miner’s stock is currently trading at about $39.84 per share. Also, Kaip presented the primary reasons why the market is likely to rerate Newmont Goldcorp. One, its management team targets stable production, of 6,000,000–7,000,000 ounces, over the next several years, supplemented by its production of byproducts. Whereas the company could divest of assets during that period, BMO expects they would only be noncore ones. Two, Newmont Goldcorp “established an exemplary track record of consistency and has delivered over $2 billion in improvements since 2013 through its Full Potential program,” Kaip pointed out. “Investors are beginning to warm up to the turnaround and Full Potential efforts, with 40% of the $365 million to be realized this year, 80% next year and 100% in 2021.” Three, the mining company has a deep pipeline of … Continue reading

Explorer Eagerly Awaits Results of Summer Drill Program in Prolific Quebec Mining Area

Source: Streetwise Reports 09/17/2019 Property receives first drilling in more than a decade. Black Tusk Resources Inc.’s (TUSK:CSE; BTKRF:OTC) 100%-owned Golden Valley property is located in the highly prolific Abitibi Greenstone Belt in northwest Quebec. The belt has produced more than 100 mines and 170 million ounces of gold since the early 1900s. Golden Valley is in a world-class mining area, located about 26 kilometers from the Casa Berardi Mine, operated by Hecla Mining Company, that has produced more than 1.9 million ounces of gold since 1988. Black Tusk is drilling to verify and expand upon the more than 4,000 meters of drilling conducted historically on the property. One highlight hole drilled by Noranda Inc., LAB87-B2, returned: 0.91 gram per tonne (g/t) gold over 13.3 meters (51.3 meters to 64.6 meters), including 1.82 g/t gold over 4.5 meters from 57 meters to 61.5 meters, including: 1.4 g/t gold from 57 meters to 58.5 meters; 2.15 g/t gold from 58.5 meters to 60 meters; 1.90 g/t gold from 60 meters to 61.5 meters. Another hole, LAB109-03-01, drilled by Noranda in 2004, returned: 1.40 g/t gold from 51.3 meters to 52 meters; 0.51 g/t gold from 107.3 meters to 108.2 meters in iron formation within basalt; 1.25 g/t gold from 109.5 meters to 112.1 meters, including: 0.99 g/t gold from 109.5 meters to 110.2 meters in iron formation within basalt; 2.49 g/t gold from 110.2 meters to 111.1 meters in iron formation within basalt; 0.32 g/t gold from 111.1 meters to 112.1 … Continue reading

Idaho Gold Developer Demonstrates Post-Tax 53% IRR

Source: Bill Powers for Streetwise Reports 09/16/2019 Bill Powers of the Mining Stock Education podcast discusses the news flow from this junior explorer. At the 2019 Beaver Creek Precious Metals Summit last week in Beaver Creek, Colorado, I had the opportunity to meet one-on-one with numerous junior mining management teams. Due to a rising gold price environment, the expectation and general mood among the management teams was much more positive than the previous year. While there, I interviewed Craig Lindsay, president and CEO of Otis Gold Corp. (OOO:TSX; OGLDF:OTCMKTS), along with Alan Roberts, who serves as the company’s vice president of exploration. Craig summed up the sentiment at Beaver Creek as such: “This is my third year in a row of coming here and it’s great to see a bunch of new names in terms of investors—institutional investors and high net worth investors. There’s pretty much every major mining company here looking for projects. That tells me that we’re on the cusp of a pretty interesting move in the gold market. That alone is going to create some amazing opportunities for investors who want to get into this space, which has been downtrodden for a number of years.” Both Craig and Alan were not just generally encouraged with the current sector sentiment, but were also specifically enthused about Otis Gold’s prospect of continued success at their flagship Kilgore development project, located in Clark County, Idaho. Kilgore’s Impressive Preliminary Economic Assessment Otis Gold Corp. recently released a positive preliminary economic assessment … Continue reading

Global Insanity Prevails

Source: Michael Ballanger for Streetwise Reports 09/14/2019 Sector expert Michael Ballanger uses storytelling and personal experience to unpack the myths and machinations behind the precious metals and financial markets. “Destroyers seize gold and leave to its owners a counterfeit pile of paper.” —Ayn Rand Why don’t we start things off a tad differently this evening? Let me relate to you all a parable from the Book of Quantitative Easing where all is good and noble in the world of government oversight, the most widely used oxymoron in the history of mankind. Granny Smith, now in her late nineties, wakes up one morning and finds that her dear husband for nigh-on seventy years has gone on to meet his Maker. But alas, as distraught as one would expect her to be, she is covertly delighted because, well, old Egbert Smith was not exactly the man she married and being forced to change his diaper and his bedsheets each night had grown both tiresome and difficult. When the lawyer had finished probating the will after eight meetings that could have been just as effective with one, it was learned that Granny was in possession of a sizeable pool of capital, on the order of US$5,000,000. She immediately ordered a meeting with that nice young man from the bank that “smiles at me and always smells good” in an effort to determine what she should do with her money. You see, for the past fifty years, husband Egbert handled the family finances because, … Continue reading