Monday, May 21, 2018

Drill Results May Double Size of Gold-Bearing Structure on Canadian Project

Source: Streetwise Reports   05/20/2018

Wrapping up its winter drill program, holes on this company's property in the Northwest Territories included discovery of visible gold.

In a May 8 press release, TerraX Minerals Inc. (TXR:TSX.V) announced that additional drilling on the Crestaurum zone in its Yellowknife City gold project had intersected mineralization that may have doubled the known size of the gold-bearing structure, and included visible gold.

Assays from 11 drill holes included four in the "high-grade Crestaurum gold bearing structure to test whether gold mineralization continued to depth."Two of those holes showed visible gold, and all "intersected significant gold."

The assays showed the following:

  • 8.84 g/t Au over 2.49 m and 5.38 g/t Au over 0.63 m in hole TCR18-076
  • 3.08 g/t Au over 2.80m, and 5.57 g/t Au over 2.06 m, in hole TCR18-078
  • 13.30 g/t Au over 1.24 m, and 4.41 g/t Au over 0.80 m, in hole TCR18-079
  • 3.86 g/t Au over 0.56 m in hole TCR18-077

TerraX also completed additional exploration work at its Sam Otto west zone, drilling five holes that all intersected "gold mineralized structure with best results of 3.00 g/t Au over 2.69 m in hole TSO18-038, 1.06 g/t Au over 4.00 m in hole TSO18-041, and 1.32 g/t Au over 2.70 m in hole TSO18-036," according to the release. The company asserted these results "makes this a good target for continued exploration."

Reflecting on results from the Crestaurum zone, TerraX CEO Joe Campbell said, "This small program of four holes successfully demonstrated that the Crestaurum zone continues at depth on multiple surfaces, potentially doubling the size of the zone. The 300 meter vertical depth tested with these holes is still considered very shallow for Archean lode gold deposits and mineralization remains open for further expansion, both along strike and at depth."

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new interviews and articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: TerraX. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: TXR:TSX.V, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/20/drill-results-may-double-size-of-gold-bearing-structure-on-canadian-project.html

Sunday, May 20, 2018

Natural Gas Seasonal Cycles Show Upside Potential

Source: Chris Vermeulen for Streetwise Reports   05/19/2018

A traditional seasonal pattern in natural gas has set up, and may result in a tremendous trading opportunity, writes Chris Vermeulen of Technical Traders.

Recently, we have alerted our members to this play, which is already up over 16%. Additionally, our advanced price modeling systems and Adaptive Dynamic Learning Cycles have recently triggered another buy entry trade (see the chart) with oversold pullbacks.

This seasonality table refers to particular time frames when commodities are subjected to and influenced by recurring tendencies that produce patterns each year.

chart

Our research team has been following the energy sector quite intensely, with oil and natural gas making an impressive move. Our belief is that natural gas will continue to climb higher, moving well above the $3.00 level before the end of this month, as well as potentially pushing well above the $3.20 level on continued price advances in energy. With global concern globally driving energy supply fear and pushing energy prices higher. This seasonal pattern indicates the potential for some strong upside price moves. Smart traders are already positioned for this move, yet there is still quite a bit of opportunity for current entry point.

chart

Any upside price move from current levels to above $3.00 would reflect an additional 4–6% price gain, and any advance above $3.20 would reflect a 11% price advance. Additionally, our predictive price modeling systems and cycle modeling systems are showing this has the potential for quite a bit more, but we can estimate the $3.00–3.20 level is a sufficient upside target for this initial move.

If you would like help finding trade triggers like this and help knowing what to expect each day in the markets, please visit www.TheTechnicalTraders.com to learn how we can help you take advantage of the opportunities that are presented each week in the markets.

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: "7 Steps to Win With Logic." His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility. He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Vermeulen also contributes market insight to several financial hubs like StreetWiseReports.com.

Disclosure:
1) Statements and opinions expressed are the opinions of Chris Vermeulen and not of Streetwise Reports or its officers. Chris Vermeulen is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by the author.

Technical Traders Disclaimer: This material should not be considered investment advice. Technical Traders Ltd. and its staff are not registered investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy sell or hold said security at any time.



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/19/natural-gas-seasonal-cycles-show-upside-potential.html

Friday, May 18, 2018

Junior Explorer Advances Mexican Mine Project

Source: Maurice Jackson for Streetwise Reports   05/18/2018

The president of this junior miner discusses the promise of an orogenic heap-leach project on its property in Sonora with Maurice Jackson of Proven and Probable.

Maurice Jackson: We are discussing a company that has established itself as a premier project generator, Millrock Resources Inc. (MRO:TSX.V). Joining us today is Gregory Beischer, the president, CEO and director of Millrock. Mr. Beischer, welcome.

In our last interview, we discussed Millrock Resources' La Navidad Gold Project. You were addressing the initial drill results there. Today, Millrock has informed the market that a second round of drilling has commenced at the La Navidad Gold Project. Gregory, before we get into the press release, where is the La Navidad Gold Project located?

Gregory Beischer: It's in Sonora State. That's northwestern portion of Mexico, just south of the state of Arizona and north of the city of Hermosillo. It's just a really great mining state, mining community. People there are very welcoming. They understand and make a lot of money from mining. We feel very welcome there.

Maurice Jackson: What are some of the strategic advantages of being there?

Gregory Beischer: Well, there's a lot of support industry surrounding the active mines and the numerous exploration companies. The people there know what they're doing. There's good technical talent. Just overall, a vibrant mining community.

Maurice Jackson: Taking us now onto the La Navidad Gold Project, describe the metallurgy for us.

Gregory Beischer: What we're looking for in this area is what geologists call an orogenic gold deposit. These are large volume, typically low-grade deposits where a large volume of rock with a little bit of gold can be processed at very low cost methods by run-of-mine, heap-leach processing. It costs very little to process the ore. That allows mining companies to produce gold from low grade but large volumes. That's what we seek. We've got some pretty darn good signs of such a deposit on the La Navidad Project. As we last discussed, Millrock had announced results from a drilling program that we conducted last November and December. We talked about those in March. Since February, our team has been running flat out. We have done a great deal of soil sampling, digging, trenches with excavators and bulldozers so that we can expose the bedrock, its surface and collect rock samples.

We've done a variety of geophysical surveys to help us image what's beneath the surface. We were focusing, primarily, on the Cobre and Crossover prospect acres, which are to the northwest of the original drilling that we have done last December at the Anchor prospect. The Cobre and Crossover are quite large, with strong gold and soil anomaly. There's size potential indicated. We found altered rocks over widely distributed area. The trench results were pretty good. We've got the grades that we're seeking for an orogenic heap-leach-type gold project.

We're starting by reentering one of the holes—in fact, hole number 10—from the original program to deepen it. We had cut the hole off because it was becoming late in the season, almost Christmas and the budget was tight. We'd cut the hole off at 250 meters, but in fact, we knew the rock were still quite altered and sure enough, there was gold in it right at the bottom of the hole. That's how we'll start this program, deepen hole 10 at the Anchor prospect and then it's on to Cobre and Crossover to test some of the great targets that are being developed there since the start of February.

Maurice Jackson: Switching gears, the Sprott Natural Resource Symposium is fast approaching, Millrock Resources, once again, has been hand selected by Rick Rule to be an attendee. What an accomplishment.

Gregory Beischer: Thanks. It's great to be going back to that conference in Vancouver. It feels a little surprising that almost a whole year has gone by since you and I met there. It really is an honor. The 50 or 60 companies that are invited to present are hand selected by Sprott Global Resources and the team of brokers and analysts that work there. We're very pleased to be counted amongst that upper tier of early stage explorers and developers.

Maurice Jackson: As a reminder, you may get tickets for the Sprott Natural Resource Symposium, which will be conducted in Vancouver July 17-20. Gregory, we've discussed the La Navidad Gold Project. Talk to us about other projects in the Millrock Resources portfolio.

Gregory Beischer: We sure have a lot going on, Maurice. As you know, we were quite aggressive over the last few years buying up projects, taking claims and developing new projects. That's all coming forward now. Things are clearly on the uptick. The major midtier companies must have bigger budgets because there's lots of them looking at our projects and talking to us about making exploration agreements. I'm pretty sure we're going to have more of those soon, so we'll become even more active. We have also been very active on the El Picacho project, a very similar style gold project in Sonora xtate, also being funded by Centerra Gold Inc. (CG:TSX; CADGF:OTCPK) as they earn their way into an interest in that project. Our geologic teams have been coming up with some high-quality targets at that project as well. I would think that we'd be drilling that by this fall.

In the meantime, our partner in Alaska, PolarX Resources Ltd. (PXX:ASX), a junior Australian company, has raised cash to advance exploration. We're mounting quite a good program there in June, at least a couple of million dollars of drilling to further expand at the Alaska Range project on the Zackly high-grade copper-gold deposit that we delineated on behalf of PolarX last year. We hope to expand that deposit significantly this year. We started drilling as of yesterday. Again, Navidad and there would be two programs running concurrently. I suspect in June and we'll then probably start drilling at El Picacho in September. A drill turning on one project or the other probably for the remainder of the year for Millrock. As you know, every one of those holes is a chance for us to reward our shareholders with a discovery.

Maurice Jackson: That's really exciting news. A lot of moving pieces there. Last question, what did I forget to ask?

Gregory Beischer: Well, Maurice, as a shareholder, you might ask why is Millrock's share price $0.22-0.23? It's a tough one to answer. We've seen our share price be depressed. It's across the board in junior explorers. I know a lot of them were having difficulty raising cash at this time. It's still a pretty tough market out there. It just doesn't seem like investors are totally engaged and interested. I think, maybe, part of it is gold price. We've seen over the last couple days, again, a pullback. It just seems in our sector, gold price really controls and dictates the amount of investor interest in junior stocks, junior explorers like ours. We're hopeful for the gold price to go back up. I personally think that all the fundamentals are very strong for that.

Zinc and copper are strong. We have projects with those commodities, but it just seems that the gold price dictates the amount of investor interest. I think when that comes, then you'll certainly see the share prices, generally, across the board, increase, and hopefully, Millrock's will too. But in the meantime, with all the drill projects we've got lined up for the remainder of the year, if we make a discovery, I know our share price will increase.

Maurice Jackson: Gregory, if someone listening wants to get more information regarding Millrock Resources, please share the contact details.

Gregory Beischer: They could call Melanie Henderson, at our investor relations office in Vancouver. The number is on the website, which of course you can find by checking for millrockresources.com.

Maurice Jackson: Last but not the least, please visit our website, www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com. Gregory Beischer of Millrock Resources, thank you for joining us today on Proven and Probable.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Gregory Beischer: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Millrock Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Millrock Resources.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Millrock Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Millrock Resources is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Millrock Resources, a company mentioned in this article.

Images provided by the author.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

( Companies Mentioned: MRO:TSX.V, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/18/junior-explorer-advances-mexican-mine-project.html

Viva Gold Steals Gold Project

Source: Bob Moriarty for Streetwise Reports   05/18/2018

Bob Moriarty of 321 Gold explains why he believes a gold explorer got a great deal on a Nevada project.

That may sound a little cruel of me but when a company plucks a company out of bankruptcy court with a 424,000 ounce gold resource for a nickel an ounce, what the hell am I supposed to call it? But it gets worse.

Midway Gold had gold projects in Nevada and was going into production when a whole bunch of things went south at the same time. The company went into bankruptcy in June of 2015, just six months before a major low in the price of gold. All their projects got dumped onto a judge's desk at a time you couldn't pay people to take gold properties in Nevada off your hands.

Viva Gold Corp. (VAU:TSX.V) walks into the courtroom and buys what they now call the Tonopah Gold project out of hock for $25,000. It came with an M&I resource within the pit of 424,000 ounces after 641 drill holes and 87,700 meters of drilling. It also came with the biggest ball and chain around its neck in Nevada history.

So they stole the project for $.05 per ounce of gold. But getting the project and the attached ball and chain out of the courthouse required one of the 200,000 ton dump trucks with the tires as big as ten elephants standing on top of each other in the form of a 7% NSR. That's why the judge couldn't give the project away.

In all of recorded mining history there isn't a company mining hard rock that could break even with a 7% NSR. It's what's known as a "Deal Breaker." Or better put, "Ball Buster."

This is where it gets really funny. The Viva management group bought a pig in a poke and they knew it. But they also knew that if they could get the owners of the NSR to get reasonable, they had an excellent chance of having the deal of the year. So they go to the guys holding the NSR and said, "Look guys, JC himself couldn't mine this at a profit with a 7% NSR so either get reasonable or consider turning it into the world's biggest tumble weed farm."

The NSR holders thought about it. Tumbleweed futures are at all time low prices so they said, "OK." And they gave Viva a 2% NSR on the Tonopah Gold project. In Tex/Mex that's called, "El Goodo Dealo." But it gets even worse.

Viva Gold is a new company and management hasn't yet taken the opportunity to totally blow out the share structure. So while they bought ounces of gold for $.05, the company has a market cap of $4.6 million CAD or about $3.6 million USD so investors can buy ounces of gold in Nevada for $8.50 USD.

You may safely assume I like the story a lot. Or better said, I love the story. Management saw an opportunity to pick up a nice project for peanut shells. They turned a lump of coal into a blue diamond by getting the NSR dropped out of orbit and have a really tight share structure. What's not to like?

Actually the visibility. Visibility is a real problem.

No one has ever heard of the story and you have to make an appointment six months in advance to give the shares away. What they really need to do is get a US OTCBB symbol so Americans can buy the shares. They also need to find a newsletter writer with some credibility to write up the story so people can understand it.

They have an asset in the Tonopah Gold Project with a quality resource that can be advanced easily. It's a typical Walker Lane gold project. For those interested it is a near surface low-sulfidation epithermal gold system with near vertical quartz-adularia gold veins.

The project is very similar to that of Hasbrouck owned by West Kirkland located a few miles south of the Tonopah project of Viva Gold. West Kirkland has a market cap of about $18 million but about 30% more ounces.

Viva Gold recently completed a private placement to raise just over $1 million. There are 4.2 million warrants at $.35 that would raise another $1.45 million so the company is well cashed up for now.

Viva just announced a 28-hole RC drill program has been approved by the BLM. The company wants to confirm extensions to the known bonanza grade gold bearing veins. It's a 4200-meter program with both in-fill and step-out drilling. The company is aiming to expand the known resource to above 1 million ounces of gold. Viva will complete a PEA in H2 of 2018.

Saying that Viva Gold is cheap is pretty easy. Management has done a wonderful job of picking up a quality asset just in time to ride the gold wave higher. They have cash, management, and are located in the most mining friendly state in the US.

I bought shares in the open market, I was too late to the party to get in on the placement. Viva Gold is an advertiser so naturally I am biased. Do your own due diligence.

Viva is an easy triple even without the price of gold going higher. With higher gold Viva has 500% potential.

Viva Gold Corp
VAU-V $0.32 (May 18, 2018)
14.5 million shares
Viva Gold website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 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.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Viva Gold. Viva Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: VAU:TSX.V, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/18/viva-gold-steals-gold-project.html

Looking for a Turn in Gold

Source: Rudi Fronk and Jim Anthony for Streetwise Reports   05/18/2018

Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, reflect on market factors that are driving current fluctuations in the gold price.

For nearly four months now, gold has been pressured lower by a rising dollar; the inverse correlation has been almost exact. Gold has dropped 5.2% from its January 25, 2018 close of $1,362 to its May 16 close of $1,291.50. Meanwhile, the US dollar index has risen 5.4% from this year’s low close of 88.50 on February 15, 2018, to its close on May 16 at 93.26. In the past few days, shorts have jumped in to press their luck, judging from the increase in CME open interest while the price is falling.

There are growing signs that the correction in gold is over. We will look at the COTs after tomorrow's close, when we expect the latest data will show a big drop in the net speculative long position typical of a bottom. But there are other indicators perhaps even more relevant that are visible now.

First, gold typically trades with commodities. This week, Brent crude hit another 52-week high while copper, palladium and silver all moved higher. Below, a daily chart of the Bloomberg Commodity Index ($BCOM, the black line) shows that it has been rising steadily since early April, breaking through its 50-day (50dma) and 20-day moving averages, while gold has been falling. This is an unusual divergence as the chart demonstrates: Upticks in $BCOM typically track with gold. It's interesting also to note that commodities are rising despite a stronger dollar. We think $BCOM is signaling inflation and these divergence will not last.

chart

The gold price has fallen to the point where the RSI is close to oversold territory. The CCI (Commodity Channel Index), a good coincident indicator, is signaling that a bottom may be at hand.

chart

Gold stocks typically lead gold on the way up and on the way down; they therefore tend to bottom first. One way to track this indicator is the ratio of GDX, the senior gold stock ETF, to GLD, the gold ETF. The GDX/GLD ratio has been rising since late March, outperforming gold itself and breaking above its 50dma. Gold has made several new lows since May 1, 2018, but GDX, so far, has not, another useful divergence.

chart

Lance Lewis of the Daily Market Summary has commented on another parameter that points to a turn in the gold price…gold's Daily Sentiment Indicator (DSI). The DSI is a poll of futures traders who are usually in tune with the market. When they are all on one side of the boat, as they have been recently, a turn is likely coming soon, and they are the first to trade it. Therefore, the DSI typically turns before the price does.

The DSI hit 10% on Tuesday of this week, which is lower than the DSI at the December low and matches the low back in July of last year. Wednesday, the DSI rose 3 points to 13% despite gold making a new low close for the correction, a divergence that has marked lows in the past. The HGNSI (Hulbert's survey of gold timers) also imploded 28.25 points to -2.17%, a new low for the move.

As Lewis points out, "There have been exactly three times since late 2016's cyclical bear market that the HGNSI was negative on the same day that the DSI was below 15%. . .Wednesday of this week, July 10, 2017, and December 11, 2017. Both of the 2017 dates marked GLD's low closes for those corrections."

Finally, as we noted at the beginning, the dollar has been the key factor driving the gold price. The dollar index has been rising but mostly against the euro, which accounts for 60% of the index. Meanwhile, as the index rises, its RSI has hit overbought levels usually associated with a turn, and the RSI so far has not made a new high this week along with the dollar. We think the dollar run higher may be nearing its end.

chart

This article is the collaboration of Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, and reflects the thinking that has helped make them successful gold investors. Rudi is the current Chairman and CEO of Seabridge and Jim is one of its largest shareholders. Disclaimer: The authors are not registered or accredited as investment advisors. Information contained herein has been obtained from sources believed reliable but is not necessarily complete and accuracy is not guaranteed. Any securities mentioned on this site are not to be construed as investment or trading recommendations specifically for you. You must consult your own advisor for investment or trading advice. This article is for informational purposes only.

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Disclosures:
1) Statements and opinions expressed are the opinions of Rudi Fronk and Jim Anthony and not of Streetwise Reports or its officers. The authors are wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the content preparation. The authors were not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the authors to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
2) Rudi Fronk and Jim Anthony: we, or members of our immediate household or family, own shares of the following companies mentioned in this article: Seabridge Gold. We personally are, or members of our immediate household or family are, paid by the following companies mentioned in this article: Seabridge Gold.
3) Seabridge Gold is a billboard sponsor of Streetwise Reports. Click here for important disclosures about sponsor fees.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/18/looking-for-a-turn-in-gold.html

Thursday, May 17, 2018

Gold Producer in Colombia Completes Acquisition of Explorer

Source: Streetwise Reports   05/17/2018

A gold producer acquires the remaining part of a gold exploration company, and drilling at its flagship mine indicates high-grade mineralization below the existing resource.

Red Eagle Mining Corp. (R:TSX; RDEMF:OTCQX; R:BVL) recently announced it has acquired the remaining outstanding shares of Red Eagle Exploration Ltd. (formerly known as CB Gold Inc.). Prior to the completion of the most recent transaction, Red Eagle Mining had owned 76.43% of the exploration company.

The company stressed that the "combination of Red Eagle Mining and XR will create a strong exploration, development and operating company with four 100% owned high grade gold and silver projects in Colombia."

Red Eagle Mining is producing gold at the Santa Rosa Gold Mine, while Red Eagle Exploration held three exploration properties: Vetas Gold, California Gold and Santa Ana Silver, all located in Colombia.

The agreement was initially announced last month. Thibaut Lepouttre, writing in Caesars Report, argues that the acquisition is good news for the company: "We expect Red Eagle Mining to be able to continue to ramp up the production rate from here on, and the incoming cash flow could then easily be used to fund the exploration activities on the very exciting properties of Red Eagle Exploration."

Three Major Exploration Projects Post Merger

CB Gold's original project, the Vetas Gold project, has played a big role in Red Eagle Exploration's adventures in Colombia. In a 162-hole, 71,000-meter drill program, the company encountered "177 intersections with an average gold grade of in excess of 5 g/t, and no less than 33 intervals with an average grade of in excess of 30 g/t."

Project Map

Red Eagle Exploration acquired the California Gold project in February 2017. The project includes at least 250 hectares of surface area with eight mining areas for exploitation.

Finally, there's the Santa Ana Silver project, which consists of almost 700 hectares of land. The project was acquired in August 2016 from Condor Precious Metals for CA$250,000 in cash, 8.1 million shares and a 2% NSR. Reports from mining logs 430 years ago indicate silver grades equivalent to almost 20,000 g/t silver. More recent samples from the previous owner's drilling showed 3 meters at 3.68 g/t gold and 1,495 g/t silver. The particular plan included just eight holes, but the findings were attention-getting.

A Long-Term Catalyst

Red Eagle Mining's news release in March revealed results from ongoing underground delineation drilling at the producing San Ramon Gold Mine, Santa Rosa Gold Project, Antioquia, Colombia, have indicated mineralization below the current resource.

The testing showed promising results for the Colombia mine:

"Results from 35 additional underground diamond drill holes have been received (SRDU-0196 to SRDU-0231). Most of this drilling is located below the mine workings along 300 metres of strike between sections 856,970 E and 857,200 E extending the vertical extent of known gold mineralization."

The company goes more in depth about its results about the great mineralization it found: "Mineralization is open to depth in an area with no previous drilling and outside of the mineral resource and mineral reserve. Results continue to return intercepts with grades significantly higher than the reserve grade of 5.2 g/t Au with highlights including intersections."

Red Eagle Mining CEO Ian Slater says the company expects to start mining the area in 2019. Slater also went on to say that the significance of the findings is that "the ore body continues at depth."

"We had issues in 2016 and 2017 with mine development at San Ramon, but everything has been resolved in 2018. We're excited to ramp up to 1,000 tonnes per day by July."

At the time of publication, the shares sit at CA$0.23.

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Disclosure:
1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Red Eagle Mining. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Red Eagle Mining, a company mentioned in this article.

Disclosure from Caesars Report, Red Eagle Mining, April 11, 2018
The author has a long position in Red Eagle Exploration. Please read the disclaimer.

( Companies Mentioned: R:TSX; RDEMF:OTCQX; R:BVL, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/17/gold-producer-in-colombia-completes-acquisition-of-explorer.html

The State of Mining in India

Source: Streetwise Reports   05/17/2018

Jayant Bhandari, host of the "Capitalism and Morality" seminar, discusses with Maurice Jackson of Proven and Probable the state of mining in India, as well as some mining companies that offer arbitrage opportunities.

Maurice Jackson: Joining us is Jayant Bhandari, the host of the highly acclaimed "Capitalism and Morality" seminar and a prominent, sought-out advisor to institutional investors. Today, we will discuss the mining industry in India and arbitrage opportunities.

Let's begin our discussion in India. There are some new reform laws taking place in the mining industry that could really have a significant impact on India. For those that may not be familiar with India and its natural resources, can you share what India produces and how it has been extracting those resources historically?

Jayant Bhandari: India produces about 40,000 ounces of gold and should be able to produce a lot more ounces of gold in that country, but the problem is no one cares to explore for gold in that country. This is mostly because the land rights are not properly defined, and the bureaucratic procedure to get from reconnaissance permit to mining permit is virtually impossible. It takes a huge amount of time, and at every step in the process the bureaucrat has the right to take away the project from you. So you might invest hundreds of millions of dollars on these projects, but at the end of the day, the government might just take that project away from you. That is the very reason why the Indian mining industry is extremely backward.

Coal mining is a monopoly run by the government of India. Iron mining takes place in a very confined space in that country in which private operators operate iron mining as a part of the steel industry. In virtually every case, these companies are in bed with the government in a corrupt way, and they are in bed with the mafia. When you have corrupt regulations, you also empower mafia kind of organizations to come in and exist, who then exploit the local people.

So Indian mining industry is almost an impossible industry. You might be able to operate that as a mafia-run industry, but even then Indian companies prefer to own coal mines and iron mines in Brazil, Africa, Indonesia, Papua New Guinea or Australia. They prefer not to operate in India not only because of the cost, but also because the bureaucratic regulations are very difficult or impossible, plus land rights are very difficult obtain, and on top of that, costs of making mining happen in that country is extraordinarily high.

Maurice: For someone not familiar with India, are the mines there nationalized, and if so, what changes is India trying to implement to change this course?

Jayant: Coal India is a nationalized company. It is run by the government of India. It is listed on the stock exchange, but the majority of the shares are owned by the government, which means that the government runs the company based on what looks beneficial to the government.

The government of India has made many attempts to liberalize coal mining. The problem is that India has among the highest and the largest reserves of coal mining in the world. However, Indian coal-powered electricity generating stations must import a huge amount of coal from Brazil and Australia and Indonesia because Coal India is an extraordinarily corrupt organization, which means that it cannot supply the required coal to the electricity generating power stations, and when it does supply coal to the power stations, it is mixed with a huge amount of waste, which creates a massive amount of efficiency problems at the power stations.

This means that people and electric generating companies find it much easier to import coal from outside of India than buy it domestically. That is how difficult mining has been in India. Mostly because there's no rule of law in that country, and mostly because these bureaucrats who have zero experience of real life assume that they must be trusted by companies and citizens, and they reserve the right to steal your property when they wish to take it away for the so-called greater good of the society and that so-called greater good of the society always translates into more bribes and more corruption in that country.

Maurice: Sounds as if there's a number of inefficiencies within the industry. As a champion of liberty, I assume you're in favor of the privatization of the mining industry in India, but is there a catch on India's initiatives on this legislation?

Jayant: Nothing will change because of the new law. The government of India is trying to liberalize the coal production in that country, and again the reason is very simple. It will make some superficial changes as it has consistently made over the last 30 years, but nothing significant, nothing material will change to make it attractive for outsiders to invest in that country. In fact, not much will change for even Indian companies to invest a lot more money in that country. As I said earlier, even Indian companies prefer to invest their capital in Africa or Papua New Guinea or Indonesia, which are by themselves very difficult jurisdictions. But India is such a tough jurisdiction that no one really cares to invest in mining in that country.

Maurice: Jayant, if India is not a good place to put our capital, do you have any names and/or arbitrage opportunities that have your attention at the moment?

Jayant: Well, there's certainly one Indian company, a mining company, that I follow. I don't invest in that company. However, it is run by some good people. The name of the company is Australian/Indian Resources and its sister company is Deccan Gold Mines. Deccan Gold Mines is listed on the Bombay Stock Exchange. Again, it is run by people I like, but I don't necessarily think this will lead to a profitable investment.

However, I can talk with you about other investment opportunities that I see right now. One company is Nevsun Resources, a company that I have talked with you about in the past when it was trading for almost half as much as it is trading now. It is currently trading at $4.50 Canadian, and there is a hostile takeover offer, which is priced at $5.00 Canadian. So from a hostile takeover perspective, you already have about 10%–12% upside in owning Nevsun Resources, but also I think the offer will likely get increased significantly over a period of time. My guess is that with very limited downside risk by investing in Nevsun, I might position myself to make about 25%–50% upside in investing in Nevsun.

There are two more arbitrage opportunities, Maurice. One is U.S. Cobalt, the ticker is USCO in the venture exchange, and it's trading at $0.95 Canadian. The arbitrage upside is more than 20% if you buy it at less than $0.95 Canadian. And there's another company called ValGold Resources, the ticker is VAL, and it's trading at $0.11. If you invest in it at $0.11, you position yourself to make about 20% arbitrage upside.

There are two more companies that I want to mention, Maurice. One is Amarillo Gold and the other is Treasury Metals. Both are trading at prices lower than pure gold companies. AGC, Amarillo Gold, is trading at $0.25 and Treasury Metals is trading at $0.41. At these two prices, I like both the companies.

Maurice: You wrote a piece recently regarding uranium. Give us your thesis on uranium, please.

Jayant: I don't like investing in uranium for two reasons. First, uranium companies mostly produce uranium at a loss today. When you make something at a loss, this means that for investors to invest in uranium companies means that they position themselves for a loss. Now, yes, uranium prices can go up in the future, but if I think uranium prices can go up in the future, I must invest in uranium as a commodity, and you can do so by buying uranium futures and one mechanism is via uranium participation corporation. That way you not only buy uranium, you protect your downside risk because you are not consuming your capital waiting for uranium prices to go up.

But I'm not very optimistic about the future of the uranium price, and the reason is that the capital required for generating electricity from uranium is very high and not many jurisdictions have the capital to provide for uranium, infrastructure to produce electricity using uranium, and also uranium electricity is now increasingly competing with electricity generated from solar, solar cells and from raw energy. So I am actually not very keen on investing in uranium mining.

Maurice: What can you share with us about "Capitalism and Morality," which is the preeminent name for reason, argumentation and liberty?

Jayant: Tickets are still available. We have sold about 60%-70% seats already. The next seminar will be held on the 21st of July 2018 in downtown Vancouver. People like Rick Rule, Doug Casey, Adrian Day will be speaking at the seminar. Dr. Ian Plimer will fly in from Australia to speak. So there are a lot of very good speakers at the seminar. It is a philosophy, libertarian seminar.

It will be held immediately after the end of Sprott Natural Resource Symposium, and it is held at the Simon Fraser University's downtown campus in Vancouver, Canada.

Maurice: Last question, what did I forget to ask?

Jayant: As I have talked with you, Maurice, in the past, people should be paying a lot more attention to what is happening in the third world countries. The third world countries are glorified, romanticized in the media and by the World Bank and IMF. The third world is in a very bad shape, and it will continue to get into a worse shape as time goes by. People in the third world countries should try to protect their wealth, and while they try to start protecting their wealth more aggressively, my guess is gold price will start outperforming. That is one of the reasons why I like to invest in gold.

Maurice: Jayant, if someone listening wants to get more information about your work, please share the contact details.

Jayant: The website of mine is JayantBhandari.com and on that website, I post everything that I speak about or write. Also, there's a tab called "Capitalism and Morality" on my website that takes you to all the past video recordings of the seminars I have ever run. It also gives you links for registration for the next seminar.

Maurice: For our listeners, there is a link as well on our website to register for "Capitalism and Morality." Please look on the right hand corner. Last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com

Jayant Bhandari, the host of "Capitalism and Morality," thank you for joining us today on Proven and Probable.

Jayant Bhandari has been an Asia-based institutional investor adviser for the last several years. Prior to that he worked for six years with U.S. Global Investors in the United States, a boutique natural resource investment firm, and for one year with Casey Research. Prior to his involvement in the investment industry he established and managed Indian subsidiary operations of two European companies. He received his Master of Business Administration from Manchester Business School (UK) and holds a Bachelor of Engineering from SGSITS (India). He frequently writes on cultural, political and social issues for several publications.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
1) Jayant Bhandari: I, or members of my immediate household or family, own shares of all the companies mentioned in his discussion on arbitrage. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Nevsun Resources and U.S. Cobalt, companies mentioned in this article.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS FORUM WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available on or through this forum AT YOUR OWN RISK.

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from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2018/05/17/the-state-of-mining-in-india.html