Source: Bob Moriarty for Streetwise Reports 06/28/2020
Bob Moriarty of 321gold explains why he is investing in this company with a project in Bolivia.
I expect to get very boring over the next few months. While I have been warning for years of a massive financial collapse coming to the world few people actually get it. We are in a depression. There is $250 trillion worth of debt in the world that will never be paid. It is going to grow far worse than it is today. What the Fed and Central Banks around the world have done is feeding fuel to the fire. The banking system is going to collapse through a series of cascading defaults making their way through the system.
The multi-month lockdown has done more psychological damage to the inmates than the damage from the virus. Some 40 million Americans who have lost their jobs combined with the lockdown has brought riots and civil disorder to hundreds of cities in the US. When you add to those two factors the issue of simple envy, you have the ingredients for massive civil disorder.
Most people would casually ignore envy as a factor in revolution and riots but that may be a mistake. In a famous and oft-duplicated experiment scientists showed how envy caused even monkeys to literally “go off.” I’m not a fan of 45-minute videos and it confuses me as to why those sending them out believe that everyone has hours a day to watch long videos. But in this short and sweet two-minute clip, you will see exactly why Americans are angry at the giant divide between the 1% with their ever growing wealth and the 99% who haven’t had a real increase in wages in 40 years.
We have civil disorder. We have no real leadership from the fools running either political party and things are going to get a whole lot worse. The 30-somethings have opened hundreds of thousands of brokerage accounts and are pouring money into such brilliant day trading investments as Hertz as it goes into bankruptcy under the theory that the Fed will bail out even the most poorly run companies in the US. That’s probably going to turn into a very bad bet. When I was young we believed that Robin Hood stole from the rich and gave to the poor. Today Robinhood steals from the poor and gives to the rich. No doubt that will end badly.
One day soon the mob of feckless young idiots with more dollars than cents will discover the wonderful world of junior mining stocks. When that shift takes place we shall see a boom as the world has never seen before. Some of the dumbest investments in mining stocks will go up fifty-fold. So I am going to write about a lot of juniors who are beginning to realize it’s time for them to start beating the drums and telling their incredible stories.
Many years ago I went to Bolivia and looked at a couple of silver projects in the Potosi Silver District. I have not been to the Iska Iska mine of newly formed Eloro Resources Ltd. (ELO:TSX.V; ELRRF-OTCBB) but I’ve been within spitting distance. I know the area.
Eloro President Tom Larsen is smart enough to associate with some of the top people in mining; Bill Pearson formerly of the Jacobina Mine in Brazil found their Bolivian project for them. Iska Iska is in the heart of the Potosi Silver District that produced over 60% of the silver during the 17th century. Eloro has an option of the project that required them to provide 250,000 shares to the vendor and another 250,000 shares over time. The financial payment for 100% of the project is $10 million CAD within four years.
The company has taken underground channel samples that are simply absurd, measuring Silver 35.5 – 694 g/t, Gold 0.31 – 28.6 g/t Au, Zinc 1.05 – 16.95% Zn and Lead 0.41 – 16.95% Pb. If you took the worst of each of those samples for each element it would be $67 a ton rock. In Bolivia that is economic.
Just last week the company announced they were in preparation for a 2,500 meter underground drill program as soon as the country lifts the virus restrictions. On the very positive side, Doctor Bill Pearson is their senior Technical Advisor. Quinton Hennigh has been added as an additional Technical Advisor and the company is well cashed up having just completed a $1.5 million private placement.
While Iska Iska is their primary focus for just now, Eloro has another project in Peru in the Western Cordillera Polymetallic Province nested in the middle of half a dozen gold producing mines including the La Arena gold mine I went to see a dozen of years ago. Most interesting to me at the time was the fact that of the 3–4 mines within a 30 km circle, all of them have identical ore and their costs were virtually the same for each mine.
Eloro owns 82% of the La Victoria gold project. While La Victoria has world class potential for now 80% of Eloro’s focus is on their Iska Iska silver mine.
With Drs. Bill Pearson and Quinton Hennigh doing the technical planning and me telling the story, how can you go wrong? Even Eric Sprott is an investor but he invests in everything associated with silver.
I wasn’t quick enough to participate in their recently closed private placement but I was smart enough to go out into the open market and buy some shares. As such and given that they are advertisers, obviously I am biased. Do your own due diligence.
Eloro Resources Ltd.
ELO-V $0.80 (Jun 26, 2020)
ELRRF-OTCBB 46.9 million shares
Eloro Resources website.
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 events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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( Companies Mentioned: ELO:TSX.V; ELRRF-OTCBB,