Titans in Mining: An Interview with Rick Rule, Part I

Source: The Critical Investor for Streetwise Reports 01/16/2020 The Critical Investor sits down with Rick Rule, CEO of Sprott U.S. Holdings, for a wide-ranging discussion of his more than four-decade-long involvement in the resource sector. Several months ago I thought of something different. Wouldn’t it be nice to interview the real movers and shakers in the mining industry? I decided to start with Rick Rule who is present at almost every conference I go to myself, and easily approachable. Mines & Money London 2019 was to be the stage for this interview, and quickly arranged as well. A quick bio: Rick Rule began his career in the securities business in 1974 and has been principally involved in natural resource security investments ever since. He is a leading resource investor specializing in mining, energy, water utilities, forest products and agriculture, and has originated and participated in hundreds of debt and equity transactions with private, pre-public and public companies. Mr. Rule is also the founder of Global Resource Investments, president and CEO of Sprott U.S. Holdings, Inc. and a member of the Sprott Inc. Board of Directors. He has financed many success stories and projects of other titans like Ross Beaty, Robert Friedland, Frank Giustra, and Adolf and Lukas Lundin. Without further ado, here is the first part of the interview, conducted in London. As it turned out, several more sessions by phone were necessary to provide Rick with enough time to thoroughly answer all questions, and this provided enough material for … Continue reading

Explorer's Upcoming Resource Estimate Update Should 'Show Growth'

Source: Streetwise Reports 01/16/2020 The potential of this company’s asset is discussed in an Echelon Wealth Partners report. In a Jan. 10 research note, Echelon Wealth Partners analyst Gabriel Gonzalez purported that Revival Gold Inc.’s (RVG:TSX.V) updated Beartrack and Arnett Creek resource estimate, expected between mid and late Q1/20, should show growth and that “potential for much more” exists. Echelon expects the updated gold resource to be between 2.7 and 2.8 million ounces (Moz). This compares to the current resource of 2.36 Moz, composed of 1.99 Moz at Beartrack and 380,000 ounces (380 Koz) at Arnett Creek. The new estimate will include results from 15,000 meters of drilling done in 2018 and 2019 and “may also benefit from improved metallurgical recovery factors as well as an updated gold price,” Gonzalez wrote. The analyst noted that next step for Beartrack and Arnett Creek after the resource estimate update is a preliminary economic assessment (PEA), which will evaluate the possibility of a “heap-leach production restart scenario with Beartrack’s current 330 Koz (Indicated plus Inferred) heap-leach resource.” Gonzalez added, “We believe such economics could be fairly attractive relative to a comparable greenfield project, given the existing gold adsorption recovery production plant at Beartrack and commensurate upfront capital savings.” Also, Gonzalez pointed out that between Arnett Creek and Beartrack, Revival could grow the total resource further, perhaps even beyond 3 Moz. For one, based on 2019 geophysics and sampling results from Arnett Creek, there are prospective areas there that need to be drill tested. … Continue reading

Miner Is 'Set Up for a Strong 2020'

Source: Streetwise Reports 01/16/2020 The numbers from the company’s three operations are reviewed in a CIBC report. In a Jan. 12 research note, CIBC analyst Cosmos Chiu reported that Dundee Precious Metals Inc. (DPM:TSX) posted a solid Q4/19 and its production for 2019 fell well within the guidance range. “Overall, the results confirm that the company is set up for a strong 2020 as Chelopech’s high-margin production is complemented by Ada Tepe’s first full year of operation.” Chiu reviewed Dundee’s Q4/19 and 2019 numbers, which were in line with CIBC’s estimates, and performance of each asset. During the quarter, Dundee produced 69,500 ounces (69.5 Koz) of gold and 10 million pounds (10 Mlb) of copper, which took the year’s total for each to 231 Koz and 37 Mlb, respectively. These quantities fell in the higher end of full-year 2019 guidance, which was 200–247 Koz for gold and 33–39 Mlb for copper. As for Dundee’s Chelopech operation in Bulgaria, it “continued its solid year,” Chiu noted. Total production was 173 Koz of gold, versus guidance of 155–187 Koz. Copper production fell within the top end of guidance. During Q4/19, gold production was 43 Koz compared to CIBC’s estimate of 42 Koz, and production was 10 Mlb, the same as CIBC’s estimate. Dundee attributed Chelopech’s production levels, Chiu relayed, to having mined in higher-grade gold areas of the deposit and having recovered more gold in the pyrite concentrate. This year, Dundee will continue to drill at Chelopech “as it looks to extend … Continue reading

Explorer With 'Highly Undervalued Stock' Increases Project Resource

Source: Streetwise Reports 01/14/2020 The report updates and the company being a takeout target are discussed in an iA Securities report. In a Jan. 7 research note, iA Securities analyst George Topping reported that Rubicon Minerals Corp. (RMX:TSX; RBYCF:OTCMKTS) updated the mineral resource at its Phoenix gold project in Red Lake, Ontario. Topping highlighted that the updated resource now contains 811,000 ounces (811 Koz) in the Measured and Indicated category, up 38% since the previous estimate of 589 Koz. The boost was driven primarily by M&I tonnage growing 34% to 3.9 million tons (3.9 Mt) from 2 Mt and Inferred ounces converted to M&I ounces. Gold grades mostly stayed the same at about 6.5 grams per ton. The Phoenix project’s total resource is now about 1.3 million ounces. Another resource update is expected in H2/20. The new resource, Topping indicated, “underpins the feasibility study,” also anticipated in H2/20. “With the updated ounces we expect the mine life and economics to improve substantially to our $2.50 per share target price,” he added. For one, the ramp-up is expected to exceed the level outlined in the preliminary economic assessment, and that would lower the all-in sustaining cost. Further, the current M&I resource supports production of about 90,000 ounces per year over an eight-year mine life, but exploration work should add years. Certainly, exploration upside exists at the property, Topping pointed out. His firm listed the Top 20 drill results from Rubicon’s regional drilling since 1998. They indicated that the “limited amount of … Continue reading

Group Ten Delivers World-Class Drill Results for PGM

Source: Bob Moriarty for Streetwise Reports 01/14/2020 Bob Moriarty of 321gold reports on the latest drill results from this company’s Montana project. The world is at an interesting junction. Awash in debt caused by promises that governments cannot possibly fulfill, civil disorder takes place in at least fourteen different countries. The U.S. political system has tied itself into partisan knots in an effort to replay the 2016 election with a President dodging and weaving getting thrown out of office on the basis he used the Presidency for political purposes to affect an election. Those intent on tossing Trump out of office are of course using their office for political purposes to affect an election. But truth stopped being part of the political process a long time ago. The U.S. Congressional-Military-Industrial-Complex (CMIC) managed to convince Trump to assassinate a high government official in a sovereign nation thereby setting an interesting precedent that almost certainly just painted a bulls eye on the butts of every U.S. high government official who would ever dream of setting foot in the Middle East. Does anyone in this administration even understand where the word “assassin” comes from? Iran invented the concept while many are hoping that one day Trump will cotton on to the interesting concept of telling the truth. We were told at first that the U.S./Israel tag team needed to whack Soleimani on the legal basis that there was some “imminent” threat to the U.S. Our beloved president would have a nose the size … Continue reading

Analyst: The Overall Gold Outlook Is 'Strongly Bullish'

Source: Clive Maund for Streetwise Reports 01/13/2020 Technical analyst Clive Maund examines the effects of recent geopolitical events on the precious metals markets. It has been a week of surprises since the last updates were posted. First, I had not expected Iran to retaliate following the murder of its top general by a U.S. drone—but it did, despite the risks, as it was politically necessary to assuage the extreme anger of its population who demanded revenge. The next surprise was that Israel and the U.S. did not use this retaliation as an excuse to bomb Iran back to the Stone Age, which is what they really want to do. As we know, the long-term goal of Israel and the U.S. is to subjugate Iran, and they will not stop until they attain this goal. And so it goes on. It appears that there was a bit of theater involved in Iran’s retaliation, as it clandestinely signaled its intentions which allowed U.S. forces to get out of harm’s way. Perhaps U.S. forces did not then launch a blitzkrieg out of consideration for this courtesy. Regardless of the muddled and unpredictable fundamental situation, which included the accidental downing of a passenger plane by Iranian defensive missile batteries, the charts allowed us to make a reasonably accurate prediction regarding what was likely to happen to the gold price. The call for a near-term top in the precious metals (PM) sector made on the site on Monday looked incorrect the following evening, when gold … Continue reading

Silver Update: Analyst Sees Short-Term Pullback Before Acceleration

Source: Clive Maund for Streetwise Reports 01/13/2020 Technical analyst Clive Maund charts silver’s progress in comparison to gold’s following recent world events. Silver’s recent rally looks diminutive and stunted compared to gold’s, but that’s normal at this early stage of a new bull market, when silver typically underperforms gold due to investors being risk-averse and silver being perceived as more risky and volatile than gold. Nevertheless, as we can see on its latest 6-month chart, silver did manage to break out of its reactive downtrend in force from early September. Last week, at the time Iran lobbed missiles at U.S. bases in Iraq, it had a go at breaking above its late September highs. But it was not up to the task and fell back, putting in a reversal candle on big volume, which suggests that it probably has further to fall short term—perhaps back to the upper boundary of the downtrend channel shown. But with the overall tenor of this chart positive, it should then turn higher again. Wheeling out the 10-year chart once more, which gives us the big picture, we see that, although so far looking much more restrained than gold, silver appears to be ascending away from the second low of a giant double-bottom pattern. The advance out of the lows of last summer was on good volume, which has driven both volume indicators quite strongly higher. This is bullish and marks a breakout drive out of the base pattern, with a completed breakout being signaled … Continue reading

Visionary Vicissitude

Source: Michael Ballanger for Streetwise Reports 01/13/2020 Sector expert Michael Ballanger offers his insights into the precious metals markets as 2020 begins. It was one of those days that all sexagenarians loathe; you have to go to the doctor, and whether it’s the GP (general practitioner) or the dentist or the proctologist, nothing reminds you more rapidly of your advancing age than going to the optometrist. Now, many of you would say that your annual prostate exam or a root canal or bloodwork would be the dreaded of all medical dreads, but for me, it is having the 50-something eye lady remind me that two years ago (when I last mustered up the courage to see her), my long vision was great and my reading vision required only 150-magnification “cheaters.” Smiling at me as if I just ran the New York Marathon, she then proceeds to tell me that I now require “progressive lenses” and 325-mag reading glasses. Staring at her with slack-jawed miasma, I tell her that I can “manage just fine” and that since I am constantly losing my Dollar Store reading glasses, I really don’t feel an overwhelming desire to walk around with $900 glasses that will make me feel “like a new and younger man!” I won’t feel very young if I find them in a snowbank after running over them with the Toro Supercharger that does zero-to-thirty in less than sixty seconds and blows snow fifty feet in the air. Then off I went to … Continue reading

Explorer Continues Defining 'World-Class Alkaline Gold System' in Fiji

Source: Streetwise Reports 01/09/2020 The work the company has conducted to date at the project and the implications are discussed in a Scarsdale Equities report. In a Jan. 3 research note, Scarsdale Equities analyst Mike Niehuser reported that “evidence continues to mount for an alkaline gold system” at Lion One Metals Ltd.’s (LIO:TSX.V; LOMLF:OTCQX) Tuvatu project in Fiji. Accordingly, Scarsdale increased its target price on the gold company to CA$2.25 per share and kept it Buy rated. In comparison, Lion One’s current share price is CA$1.64. The analyst reviewed the indicators that point to Lion One continuing to define a world-class alkaline gold system in Fiji’s Navilawa caldera. In the recent past, the gold company engaged Dr. Quinton Hennigh as a technical geological advisor, who indicated the Tuvatu gold deposit in the Navilawa caldera could be part of a larger, world-class alkaline gold system, like that of the Vatukoula gold mine. Hennigh initiated a program of conducting bulk leach extractable gold (BLEG) geochemical surveys to analyze stream sediments in the caldera. These showed the presence of surface gold mineralization throughout it. The most recent positive sign is the results Lion One reported from the first of its four deep hole drill program at Tuvatu. Hole TUDDH493 intersected gold mineralization about 70 meters below TUDDH-160 (the best drill hole to date under the Tuvatu gold deposit). Results for the second deep drill hole TUDDH494, which tested areas 70 meters below TUDDH493, are pending. “As alkaline gold systems may extend deeper, we … Continue reading

Brent Cook: Investors Should Get Boots on the Ground

Source: Maurice Jackson for Streetwise Reports 01/08/2020 In this interview with Maurice Jackson of Proven and Probable, Exploration Insights’ Brent Cook discusses the value of site visits to determining the potential of a prospect, and offers insights into various metals markets. Maurice Jackson: Joining us for conversation is Brent Cook. He’s the founder of the highly regarded Exploration Insights. Mr. Cook, you’re one of the most trusted, highly regarded names in the natural resource space, so it’s a real pleasure to be speaking with you today sir. Today we will address the positives and negatives for the mining sector in 2020. Sir, from a macro perspective, please share with us what is your view on the current state of the mining sector? Brent Cook: For my colleague Joe Mazumdar and me, the overriding issue that the mining sector faces is they’re just not finding enough economic metal deposits to replace what’s been mined. To put that into terms that might make sense, we are producing on a global scale, 90 million ounces a year, which is about what’s come out of the Carlin Trend in Nevada since 1980. We’re not finding 90 million ounces a year. Ditto for copper. We’re burning through one Bingham Canyon deposit just outside of Salt Lake a year. We’re not putting in production one of those a year. So that’s the real issue they face. It’s real positive for those of us in the exploration sector. Maurice Jackson: Speaking of positives, are there any catalysts … Continue reading