Prime Mining Wants to Produce in 2022

Source: Bob Moriarty for Streetwise Reports 02/03/2020 Bob Moriarty of 321gold discusses the path he would like the company to take as it plans to bring a historical gold and silver mine into production. Prime Mining Corp. (PRYM:TSX.V) has picked up an existing gold mine in Sinaloa, Mexico with a production history going to the 18th Century. Guadalupe de los Reyes is estimated to have produced 500,000 to 600,000 ounces of gold and 40 million ounces of silver. Prime is buying the project for $6 million and a 1% NSR. The 6300 square km property comes with a 43-101 resource of 535,000 ounces of gold and over 10 million ounces of silver. To date only 40% of the project has been explored. When I talked to management at Prime they told me of their plans for going into production on a small scale within two years at a low capital expense. I’m hoping they change their minds. Their plan calls for a low cost heap leach with production of somewhere in the 60,000 to 70,000 ounce per year range. The project was bought from Vista Gold who spent in excess of $20 million on exploration. It lies in a nest of half a dozen other similar mines in the area including Minera Alamos, First Majestic, McEwen Mining and Chesapeake. Mining companies love heap leach systems because they are cheap to set up and mine. While the recovery leaves something to be desired, the low capex can turn a low-grade mine, … Continue reading

Getchell Wins the Nevada Lotto

Source: Bob Moriarty for Streetwise Reports 01/31/2020 Bob Moriarty of 321gold discusses a junior explorer that has taken on two major gold properties in Nevada. In every precious metals cycle there comes a time where a company has good assets but for one reason or another has failed to garner traction and has to pretty much give away projects. That point came for Canarc (CCM-V) last year. They pretty much gave away a high-grade gold project with over a million ounces of gold in a current 43-101 to a junior that was little more than a shell at the time. In October Canarc announced a binding agreement with Getchell Gold Corp. (GTCH:CSE) for an option on two major gold properties in Nevada. The Fondaway Canyon project is the subject of a 2017 43-101 report by Canarc showing a indicated resource of 6.18 g/t gold for 409,000 ounces as well as an inferred resource of 660,000 ounces at 6.4 g/t Au. Getchell Gold is paying $4 million in cash and shares over a four year period to get 100% ownership with a small, 2% NSR over the two projects. The 2nd project is called the Dixie Comstock project and shows signs of having some mining activity but there are no reports of production. There was a minor historic resource from a prior owner of the property dating back to 1991 of 146,000 ounces. There is a $1.45 million work commitment over the same four year period. The company has just completed … Continue reading

Target Price Raised on Red Lake Gold Explorer

Source: Streetwise Reports 01/31/2020 An operations update on one of the company’s projects is provided in an Echelon Wealth Partners report. In a Jan. 28 research note, analyst Ryan Walker reported that Echelon Wealth Partners raised its target price on Pure Gold Mining Inc. (PGM:TSX.V; PUR:LSE) to CA$1.35 per share from CA$1 after updating gold price and forex assumptions in its model on the company. The company’s shares are currently trading at around CA$0.82 per share. Walker discussed Pure Gold’s latest news, which were announcements regarding new drill results and underground development, both at its Red Lake mine in Ontario. Drill results from infill and stepout drilling near the development and ore zones expected to provide initial mill feed in 2020 were “positive” and indicated “strong mine continuity and the potential for mining stope expansion,” Walker noted. Because holes PG19-714, PG19-716, PG19-717 and PG19-722 were stepouts of 4–18 meters from existing mining shapes, they represent potential new zones of mineralization for integration into the mine plan in the near term. As for specific assays, hole PG19-714 returned 2 meters (2m) of 6.1 grams per ton (6.1 g/t) gold, 1m at 7 g/t gold and 1.5m at 5.6 g/t gold. Hole PG19-716 demonstrated 1m of 10.6 g/t gold. Hole PG19-717 showed 2m at 8.9 g/t gold and 0.9m of 8.2 g/t gold. Hole PG19-722 intersected 1m of 13.2 g/t gold. Other new drill results could be added to the mine plan, Ryan stated. They include those from PG19-719, which yielded 79.4 … Continue reading

Junior Exploration Companies on Adrian Day's Buy List

Source: Adrian Day for Streetwise Reports 01/29/2020 Fund manager Adrian Day writes about junior exploration companies in his portfolio that he is recommending for purchase. Evrim Resources Corp. (EVM:TSX.V, Toronto, 0.315) is coming closer to generating long-term revenue. The Ermitano project it discovered and sold to First Majestic keeping a royalty is on track for a Q1 2021 production start-up. The property is adjacent to First Majestic’s Santa Elena mine, which is running low on ore. FM has been aggressive in exploring Ermitano, and now ramp construction has commenced. For the initial couple of years, some 40% of the Santa Elena mill feed will come from the higher-grade Ermitano, moving up over time. The current resource is 57.8 million ounces of silver, with a PEA expected this quarter. Analysts of First Majestic are looking at up to nine-year mine life. Undervalued on hard assets alone Evrim has cash of C$10 million (US$7.7 million), while the Ermitano royalty has an NPV of around US$16 million (on reasonably conservative assumptions). With a market cap of C$26 million, it is clearly valued close to the value of these two hard assets alone, with the rest of the company—the joint ventures and alliances, and other properties—essentially free. In calculating the value of the royalty, we assumed a static gold price. Given the royalty revenue is off the top, any increase in the gold price will have a meaningful impact on the value of that asset. Importantly, a royalty such as this one could be … Continue reading

Bob Moriarty on Geopolitics and Precious Metals Investing

Source: Maurice Jackson for Streetwise Reports 01/28/2020 Bob Moriarty of 321gold sits down with Maurice Jackson of Proven and Probable to discuss geopolitics, precious metal prices and precious metal stocks. Maurice Jackson: Joining us for our conversation is Bob Moriarty, a world-renowned bestselling author and founder of the websites 321gold and 321energy.com. For audience members, today we will hear from one of the most respected minds on the subject of geopolitics and investing, as we will discuss the impeachment trial of President Trump, bursting bubbles, and some very, very unique buying opportunities for your portfolio. Bob, the impeachment trial of President Trump is dominating the news as the world is glued to their television sets with popcorn and soda in their hand, asking whatever happened to the United States of America? How does Bob Moriarty view the impeachment trial of President Trump? Is it warranted? Bob Moriarty: There was a book was written in the 18th century and called Decline and Fall of the Roman Empire by Gibbon, and I think there were six volumes to the set. If you want to understand what the United States is going through today, you need to read Decline and Fall of the Roman Empire. We are experiencing the end of empire. There were two recent events, one being the murder of General Soleimani and the other the impeachment. We’re going to look back on this and a few years from now and say, “Were these people totally insane?” Now would you agree … Continue reading

More Details on Private Placements

Source: Maurice Jackson for Streetwise Reports 01/27/2020 In part three of the series, “All About Private Placements,” Maurice Jackson of Proven and Probable talks with Tekoa Da Silva, a financial adviser with Sprott USA, about details of private placements, including removing restrictive legends, exercising warrants, timing of private placement tranches, and understanding corporate share structures. Maurice Jackson: Thank you for joining us for the third part of a special four-part series entitled All About Private Placements. Joining us for conversation is Tekoa Da Silva. He’s an accomplished licensed financial adviser for Sprott USA, the premier name in the natural resource space. Full disclosure, the following is not a Sprott USA endorsed product and it is for educational purposes only. Tekoa, we concluded the second part of this series with the question regarding legend removals. Now what if I have an online discount broker? Can I go to them and have my legend removed? Tekoa Da Silva: Looking at it from a North American context, a person may have a brokerage account with Charles Schwab, Fidelity, TD Ameritrade. The best place to get the answer that question is by calling them and asking the adviser that the person works with. And the answer that they get will probably result in you having to speak to three or four people at that firm to get a precise answer and it may be an imprecise answer at that. My impression is that many of the broker dealers, certainly in the U.S., are continuing … Continue reading

An Exploration Company Where the Geologist Is the Largest Shareholder and Banking on His Own Success

Source: Streetwise Reports 01/27/2020 The chief geologist believes the deposits are part of a large, emerging trend. Megastar Development Corp. (MDV:TSX.V; MSTXF:OTC; M5QN:FSE), a small-cap exploration company focused on the emerging Oaxaca Gold-Silver Belt in Mexico, has conducted fieldwork over two months that has revealed multiple targets for further exploration. The fieldwork is being overseen by David Jones, chief geologist and a director of Megastar, who over his 40-year career has had a number of high-profile discoveries and expansions under his belt. Those in Mexico include the 1995 discovery of the Los Filos deposit in what is now known as the Guerrero Gold Belt (GGB), leading the successful Teck bid for the Morelos Reserve in the GGB (now Torex Gold), principal geological consultant in the fundraising and start-up of Torex Gold, the targeting of Gold Resource Corporation’s recent Switchback mine discovery, and participation as a director in the successful sale of Cayden Resources to Agnico Eagle. Jones was one of the early geologists to recognize the larger potential of the Guerrero Gold Belt, which over the past 25 years of his involvement has grown from less than 2 million ounces of gold to more than 30 million ounces. “The reason I tend to have more success than failure is that I focus on thinking about why mineralization is where it is and where I might find more, especially if there are no obvious indicators in the area. Los Filos was a blind discovery; there was nothing at the surface, and … Continue reading

Malevolent Microbes

Source: Michael Ballanger for Streetwise Reports 01/27/2020 Sector expert Michael Ballanger examines the possible effects the emergence of the coronavirus in China may have on markets, and offers his observations on January’s market performances. There is a local casino just “up the road” from where we reside that we visit (once in a blue moon), small sums of pocketed cash in hand, to play a few favored slot machines to see if we can defy the house odds and come home winners. Called The Great Blue Heron Casino, we have nicknamed it “The Blue Goose,” in reference to how one usually feels upon departure. On occasion, we drive back “down the road” with smiling faces because we spat in faces of the Gambling Gods and actually came out ahead. However, the majority of the time, we limp home dejectedly, vowing never ever to return. Then, a month later, back “up the road” we go with yet another modest wad of the ultimate in “risk capital” to fire into the vice machines, forgetting all vows of abstinence and reformation. Now, being that it is the closest casino to the large Asian populations of the Greater Toronto Area, the Goose is frequented by busload after busload of (predominantly) gamblers of Chinese descent or origin, cash literally falling out of pockets, who dash immediately in the direction of the exclusive “high-roller” sections. I have observed from afar elderly Chinese women sitting at a slot machine for hours, reaching into well-guarded handbags for $100 … Continue reading

My Prediction for a Market Top in October Was Perhaps Left but Not Wrong

Source: Bob Moriarty for Streetwise Reports 01/26/2020 Bob Moriarty of 321gold reflects on how government actions in the financial and public health spheres will pop market bubbles. The “Everything Bubble” just burst. Here’s why. I was in Vietnam from July 1968 until March 1970. From November 1968 until July 1969 I was flying the O-1 Birddog as a forward air controller (FAC). Back then I used to believe all the bull our government puts out. Now, when Trump says the Iranians fired missiles at a US base in Iraq and none of our troops were injured, I know at once he was lying. And sure enough, two weeks later we find that 34 soldiers were injured. Governments lie about everything and as a result we are about to pay a terrible price. All of them lie. As a FAC I controlled hundreds of air strikes and artillery missions in the belief I was helping protect the lives of the Marines and soldiers below. Compared with weapons systems of today what we did was primitive. We had to have the fixed-wing ordinance-carrying aircraft find us. We had to identify them and they had to identify us. Then we had to talk them into where they were to attack. It was vital to use exactly the correct terminology. It was easy to confuse the high-speed fixed-wing aircraft if you didn’t use words as they should be used. Does the word “right” mean direction or does it mean “correct?” In the fog of … Continue reading

Experts See Opportunity in Ratios of Gold to Silver and Platinum

Source: Maurice Jackson for Streetwise Reports 01/23/2020 Andy Schectman of Miles Franklin Precious Metals Investments and Maurice Jackson of Proven and Probable discuss investment strategies centered on precious metals ratios. Maurice Jackson: Joining us for a conversation is Andy Schectman, the president of Miles Franklin Precious Metals Investments. Always a pleasure to have you on the program to discuss the value proposition before us in precious metals. Today we will identify three exciting value propositions for your precious metals portfolio that are currently selling at a deep, deep discount. Mr. Schectman, you have a proven pedigree of success in the precious metals space. I want to discuss a methodology that has made you and the clients of Miles Franklin very handsome returns over the years, and that is your use of ratios. Sir, please explain why it is paramount for precious metals investors to have a thorough understanding on precious metals ratios. Andy Schectman: When we last spoke I shared that legendary investor Rick Rule is fond of saying, “the deal’s in rhetoric,” and he deals in arithmetic. I like to look at the world the exact same way, from the standpoint of arithmetic, and at least in terms of any precious metals investor, ratios are very, very, very important in mathematics. They are another way of saying the law of averages. As we look at ratios that fall out of historical average, they represent opportunities—in fact, distinct opportunities. I guess the easy way of saying that is the farther … Continue reading