Stocks Disconnect from Economy, Gold Responds

Source: Adrian Day for Streetwise Reports 07/21/2020 Given the current uncertainties and recent market moves, money manager Adrian Day offers some thoughts on the macroeconomic environment. Global stock markets zooming ahead amid historic unemployment and economic contraction is surreal. Half of the U.S. has been locked down, with economies virtually shut, a second virus wave appears underway and yet the stock market is almost back to February’s all-time highs. And this is not only in the U.S.; stock markets have rallied strongly around the world. We know that central bank money creation is the primary cause, but this dichotomy cannot continue indefinitely, at least without a meaningful correction. Meanwhile, gold—for sounder reasons than stocks—has outperformed and, notwithstanding anticipated volatility, will, we think, continue to do so. The economic outlook is uncertain The keyword for the economic outlook is uncertainty. The economy cannot resume the level of January after months of closures, not in anything like the near term. Some sectors will do well, but others will be very slow to recover—office space, for example, or malls. Many small businesses, such as restaurants, will try to do the job with fewer people. Real unemployment is probably higher than the headline numbers suggest, as furloughed workers are counted as “employed.” And it will get worse as restrictions from layoffs in the government payroll protection loans end. There’s uncertainty about a second wave of the virus and potentially resumed restrictions on businesses. Already, over half of the U.S. population is seeing announced reopenings … Continue reading

Blackrock Hits Bigly Silver in Nevada

Source: Bob Moriarty for Streetwise Reports 07/21/2020 Bob Moriarty discusses the company’s off-the-charts drill results at its Nevada silver project. Blackrock Gold Corp. (BRC:TSX.V; BKRRF:OTCMKTS) announced the first drill results from their latest program at their 100% controlled Tonopah West silver project in Nevada. Hole TW20-001 showed two massive silver intercepts. The highest grade was the 2,198 g/t Ag over 3.04 meters. Another layer that was the actual target of the drill hole reported 29 meters of 965 g/t Ag where it intersected the Victor silver vein. No wonder the shares were up 102% on the day. The company has about 20 million warrants outstanding with an average exercise price of $0.25 and some warrants can be forced so the company can count on having another $5 million brought it. It might be time to change the name of the company from Blackrock Gold to Blackrock Silver because they just brought the Tonopah silver district back to life in a bigly way. Blackrock is an advertiser. I have participated in several private placements so naturally I am biased. Their website is pretty good and presentation excellent. Blackrock Gold Corp BRC-V $0.87 (Jul 20, 2020) BKRRF-OTCBB 69.4 million shares Blackrock Gold website Bob Moriarty President: 321gold Archives 321gold Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current … Continue reading

Genesis Metals Builds High-Grade Ounces at Chevrier

Source: James Kwantes for Streetwise Reports 07/21/2020 James Kwantes of Resource Opportunities profiles a company with a project in Quebec’s Abitibi Greenstone Belt. Genesis Metals Corp. (GIS:TSX.V; GGISF:OTC) is building ounces and grade at its Chevrier project in Quebec’s Abitibi Greenstone Belt, as Phase 1 drill results outline growing zones of higher-grade material within the existing Main Zone deposit. The drill results are changing the profile of the deposit, which hosts current indicated mineral resources of 395,000 ounces (8.5 Mt averaging 1.45 g/t gold; cutoffs 0.5 g/t open pit and 0.95 g/t underground) and inferred mineral resources of 254,000 ounces (5.9 Mt averaging 1.33 g/t gold; cutoffs 0.5 g/t open pit and 0.95 g/t underground). The latest drill intercepts are well above those average grades, with highlights including: GM20-63: 9.71 g/t Au over 3.65 meters (within 76 meters of 1.93 g/t) GM20-64: 9.73 g/t Au over 4.5 meters (within 84 meters of 1.65 g/t) GM20-64: 9.64 g/t Au over 2.3 meters GM20-64: 14.4 g/t Au over 2.2 meters GM20-65: 5.57 g/t Au over 3.2 meters Those intercepts were part of the second and final batch of assays from the 2,500-meter drill program at Chevrier that focused on southwest and northeast portions of the Main Zone. Most of the current resource estimate is contained within the Main Zone, with the East Zone hosting a small Inferred resource. Genesis used a new 3D model to better understand distribution and controls on high-grade gold mineralization. Genesis CEO David Terry and his team are … Continue reading

August Approaches: Accumulation, Conversation and the Promise of Silver

Source: Michael Ballanger for Streetwise Reports 07/20/2020 In this week’s advisory, sector expert Michael Ballanger reviews the most recent market news, celebrates old-school communication techniques and offers strategies for investing in the dog days of summer. As the month of July moves into its final ten-day stretch, I see NASDAQ records falling left and right as the drivers of fear that dominated in March are now “yesterday’s news.” Rising second waves of infection and death have been shunted aside in favor of a reborn optimism surrounding “vaccines” and “V-shaped data” and “added stimulus” and just about anything imaginable that can drive money into stocks. However, the truth remains that this four-month rally in stocks and gold and bonds is the direct result of counterfeit cash finding its way into the hands of the desperately unemployed and will only end when the liquidity punch bowl is taken away. As an aside, for the past thirty-three years, since 1987, I have always used August as an accumulation month, after learning of this technique from the finest mining broker I have ever known, the late George Milton, a huge stock salesman (in all ways) out of Edmonton who made more money for his clients than any advisor around at the time. He would call his clients in May and ask them what plans they had for the summer and then proceed to give them firm instructions to not (as in never) try to call him before Aug. 1. Then, during the first week … Continue reading

Quinton Hennigh Advises NuLegacy

Source: Bob Moriarty for Streetwise Reports 07/20/2020 Bob Moriarty of 321gold discusses the upside he sees to this company with a gold project in Nevada’s “Elephant Country.” I do hope my readers by now understand that we have entered the Greatest Depression. In fourteen weeks some 51.3 million Americans filed for unemployment. Many will not be returning to their original job as it no longer exists as airlines, major chains, restaurants and cruise ships entered bankruptcy. This is not the beginning of the end of the depression; indeed it is hardly the end of the beginning. As a result of the Federal Reserve and an out of control Congress hurling money at the problem eventually Americans will wake up to the fact that the US is functionally bankrupt as both the bond market and the dollar evaporate into hyperinflation. As the debt snowball careens down the mountain gathering speed as it declines as 40% of Americans fail to pay their rent or mortgages the end result will be the banks closing. We will have a debt jubilee since there is no other possible solution. It would be a very good time to own all resources along with gold and silver. In May of 2020 CEO Albert Matter of NuLegacy Gold Corporation (NUG:TSX.V; NULGF:OTCQB) announced the appointment of Quinton Hennigh as a technical advisor to the company. To most people, that would seem a minor matter. Every company has technical advisors. But not every company has Quinton Hennigh as an advisor. … Continue reading

Avrupa Minerals Secures Exploitation Permit for Alvalade

Source: The Critical Investor for Streetwise Reports 07/17/2020 The Critical Investor examines the latest news from this junior with a flagship copper-zinc project in Portugal, which also includes finalizing a joint venture with MATSA and preparing for the season’s drill program. As gold stocks are getting all the attention at the moment, with gold firmly in an upward trend, it seems, one could almost forget the existence of base metal juniors. This is not entirely justified in my opinion as, for example, copper (Cu) has recovered completely from its March lows, as can be seen in this chart per pound Cu by Macrotrends: A tiny junior whose faith is closely intertwined with copper pricing is Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE)8, as its flagship Alvalade brownfield copper-zinc project in Portugal is likely to contain significant amounts of the red metal. The other metal, zinc, has recovered as well, and more, but follows a different pattern—as can be seen in this Kitco chart—as it isn’t so directly connected to, for example, Chinese demand fundamentals. Despite the hype around precious metals, Avrupa managed to land a joint venture (JV) with MATSA (Minas de Aguas Teñidas, S.A., which is owned equally by Trafigura and Mubadala, two giants in the mining investment space) last year. Despite COVID-19, both Avrupa and MATSA worked diligently and quietly on permitting, and managed to recently receive the new Alvalade Experimental Exploitation License (EEL) from the Portuguese Mining Bureau. Despite the relatively limited delay of about three months due … Continue reading

Fremont Awaiting Drill Results at Griffon Gold Mine

Source: Bob Moriarty for Streetwise Reports 07/17/2020 Bob Moriarty of 321gold discusses a junior that is exploring a past-producing gold mine in Nevada. Alta Gold went bankrupt in April of 1999 due to low gold prices. They had an existing gold producing mine near Ely in Nevada they called the Griffon Mine. Nevada Sunrise picked up the project almost twenty years ago but didn’t move it forward. Nevada Sunrise was bought out by Pilot Gold. Pilot changed their name to Liberty Gold. Liberty entered into an option agreement with Fremont Gold on Griffon in December of 2019. The agreement calls for Fremont to pay $325,000 over four years and to issue 9.9% of their shares to Liberty in exchange for a 100% ownership in Griffon. Fremont Gold Ltd. (FRE:TSX.V;FRERF:OTCQB;FR2:FSE) began a ten-hole drill program at Griffon in late June. They have completed three holes and those were sent off for a rush assay. Jamie Robinson, the former VP Exploration for Alta who discovered the Hammer Ridge deposit at Griffon, has been a technical advisor to Fremont for the drill program. If anyone knows where the gold is at Griffon, it should be him. In May the company staked an additional 90 claims at Griffon to double the project area. That’s about 15 square kilometers. The drill results will be out soon, a week to ten days. At $0.15 the company has a market cap of about $12 million with around $1 million in the bank. That seems fairly priced to … Continue reading

Analyst Has Outperform Rating on Company with 'World Class Development Project Offering Exposure to Silver'

Source: Streetwise Reports 07/15/2020 This Raymond James report discusses why the firm believes MAG Silver “is one of the better options for investors looking for exposure to silver.” In a July 9 research report, analyst Brian MacArthur reported that Raymond James resumed coverage on MAG Silver Corp. (MAG:TSX; MAG:NYSE A) with an Outperform rating and a CA$22 per share target price. The company’s current stock price is CA$20.53 per share. “MAG is one of the better options for investors looking for exposure to silver given its 44% interest in the world-class Juanicipio joint venture, (JV), which is a district-scale, low cost, high-grade silver development project with a strong partner and meaningful exploration potential,” commented MacArthur. The analyst discussed aspects of the MAG Silver story. The JV’s Juanicipio project, according to MacArthur, is “competitively positioned against both silver producers and developers” given its size, high silver grade, low cost and significant byproduct credits. Underground mining is scheduled to commence there in H2/20, and mill startup is slated for mid-2021. MAG Silver’s joint venture partner and the project operator, Fresnillo, has an extensive history of mining in the region. Further, Juanicipio’s economics as outlined in the 2017 preliminary economic assessment (PEA) are “compelling” on their own, but “significant discoveries since then and some infrastructure changes have improved economics.” MacArthur noted the PEA forecasts that Juanicipio will generate a 44% after-tax internal rate of return and a US$1,138 million net present value at a 5% discount, assuming a silver price of US$17.90 per … Continue reading

Defiance Silver Testing High-Grade Silver

Source: Bob Moriarty for Streetwise Reports 07/15/2020 Bob Moriarty of 321gold profiles a company that is about to begin a drill program on its silver project in Mexico. No one else has said this and it’s either because they don’t see it or don’t understand it but when the Central Banks around the world declare war on their currencies, they are going to win that war. For all practical purposes, the Fed has issued a double your money back guarantee for all resource stocks. They are doing everything in their power to make resources stocks leave Tesla, Apple and Hertz shares in the dust. And it’s a little tiny room with a little tiny door and when everyone wants in at the same time, it’s going to get both interesting and profitable. Silver is absurdly priced today. The silver/gold ratio was 95-1 before the ratio went crazy in March. The 95-1 was the highest ratio since 1991 when it hit 100-1 for a short period. Silver relative to gold was absurdly cheap BEFORE the markets blew up. When the financial world cratered in March the silver gold ratio touched 133-1 intraday, which is the highest it has ever been in 5000 years of history. It has returned to reality and is back to 95-1. That is just stupid and it will go lower. I am not one of the silver nuts who believe the ratio will go to 17-1 or 10-1. The only way out of this financial hole the … Continue reading

Canadian Miner's Updated PFS Shows 'Robust Project Economics'

Source: Streetwise Reports 07/15/2020 The key numbers and the timeline for this Mexican asset of Endeavour Silver are addressed in this ROTH Capital Partners report. In a July 14 research note, ROTH Capital Partners analyst Joe Reagor reported that Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE) released a summary of the updated prefeasibility study of its Terronera silver-gold project and that it “shows robust economics’ and demonstrates improvement over the previous one from July 2018. Reagor relayed that the new report outlines a base case net present value of $137 million and an after-tax internal rate of return of 30% for this project in Jalisco, Mexico. Initial capex is an estimated $99 million. Next for Terronera is a feasibility study, which Endeavour Silver intends to pursue. Reagor pointed out that startup at the project may get pushed back by about a half-year, to H1/23 versus H2/22, when ROTH had expected it to happen. This is based on the assumption that the Vancouver-based company would need about a year to complete the feasibility study then another 18 months to get financing and develop the mine. Also, the analyst noted that COVID-19 and other factors may cause unexpected delays. “The company’s timeline justifies moving the startup to early 2023 in our model,” Reagor noted and added that ROTH will wait to update its model until Endeavour Silver files the full prefeasibility study. ROTH has a Buy rating and a US$3 per share price target on Endeavour Silver, the stock of which is trading … Continue reading