Friday, March 24, 2017

Juniors to Recover as Gold Moves Ahead

Source: Adrian Day for The Gold Report   03/23/2017

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Fund manager Adrian Day discusses several mining and energy companies in his portfolio that he believes should appreciate now that the recently released Canadian budget does not include a tax rate increase.

Many Canadian juniors had seen significant deterioration in prices in the last few weeks, even as gold and large mining companies rallied. This decline in juniors particularly affected stocks that had seen large capital appreciation in the recent past. This was the result of Canadian investors selling shares to lock in capital gains tax rates ahead of a widely anticipated increase in the tax rate. But in the budget just released, the government said there would be no rate increase. We expect, therefore, that there will be some buying back of shares sold in coming days and an overall firming in the Canadian junior market. Below are three stocks (LRA, AXY, MD), among others, that could benefit from such buying.

Strong assets, waiting for partners, court
Lara Exploration Ltd. (LRA:TSX.V, 1.01) continues to deal properties, acquiring new properties that is options out to others, but has hurdles on its two main assets. The Maravaia copper-gold deposit (part of the Curionopolis project in northern Brazil) is behind schedule. However, Tessarema is working towards commercial production at the mine, which is the hurdle is must meet to earn 100% of the project. At that point, Tessarema must pay Lara another US$750,000, which also retains a 2% royalty.

Meanwhile, Codelco (Lara's joint venture partner) and Vale continue their court case over the Liberdade Copper project, also in Brazil. We remain optimistic on a resolution—if not the timing thereof—that would revolve to the benefit of Lara. Codelco has the right to earn into 75% of the project, but the value of Lara's remaining 25% would exceed the current market cap. The company, with about CA$3.5 million in the bank, has sufficient cash for its programs.

Lara is a strong buy here for patient investors with a certain tolerance for risk.

Company continues to grow towards long-term goal
Alterra Power Corp. (AXY:TSX, 4.77) continues to make progress towards its goal of being a dividend-paying, diversified green-energy company. Last year was, in the words of founder and chairman Ross Beaty, a transition year. Power production is up 20%, with a new hydro project in British Columbia starting production, a new solar farm acquired, and the first full year from the Shannon wind farm. The company now has eight operating plants, in three countries, and has growth projects that could conservatively double production "in the next few years." A modest dividend was introduced last year (yield of just over 1%), but the goal is to increase the dividend significantly once the company reaches a critical mass. Alterra is a buy for long-term investors.

There's been no news from Reservoir Capital Corp. (REO:TSX.V, 0.03 x 0.04)—the last substantive press release announcing an interim CEO, was in August—but we expect some development in coming months. Because of the extreme low price we would not sell, but are not buying until the future course becomes clearer.

Another partner resumes activity
Midland Exploration Inc. (MD:TSX.V, 1.06) , no sooner than my last article with a recommendation on the stock was published, announced that partner Agnico Eagle would resume drilling on the Maritime-Cadillac property, contiguous to Agnico's Lapa gold mine property. Though not unexpected, this is yet another drill program with a quality partner. Midland expects over 25,000 meters of drilling this year (not feet, as stated in last article). Buy Midland at this level.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is "Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks."

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Midland Exploration, Lara Exploration and Alterra Power. 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. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Midland Exploration, Lara Exploration, Reservoir Capital and Alterra Power. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.
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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

( Companies Mentioned: AXY:TSX, LRA:TSX.V, MD:TSX.V, REO:TSX.V, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17352

Thursday, March 23, 2017

Iskut Could Be as Important to Seabridge as KSM

( Companies Mentioned: SEA:TSX; SA:NYSE.MKT, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17351

NexGen's Mineral Resource for Arrow Highlights 'Once-in-a-Career Type of Asset'

( Companies Mentioned: NXE:TSX; NXGEF:OTCQX, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17350

As Uranium Price Turns, Insiders Stock Up on Energy Fuels

( Companies Mentioned: EFR:TSX; UUUU:NYSE.MKT, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17348

Dataram Set to Transform Itself with Acquisition of U.S. Gold Corp.

Dataram's plans to acquire U.S. Gold Corp. to diversify its business would give it access to potentially high-growth mining projects in Nevada and Wyoming.

Dataram Corp. (DRAM:NASDAQ), which has been in the IT memory business, intends to acquire U.S. Gold Corp. as part of its strategy for business diversification and growth through acquisition. The company stated in its March 9 news release that the "natural resources segment represented a market opportunity that would diversify the Company's business model and thereby potentially mitigate risk associated with focusing on one industry."

U.S. Gold Corp. is advancing the Keystone project on the Cortez Trend in Nevada and the Copper King project in Wyoming. Last year exploration geologist Dave Mathewson joined U.S. Gold as vice president and head of exploration. Mathewson is credited with discovering the Tess, Northwest Rain, Saddle and South Emigrant deposits when he was head of Newmont Mining's Nevada exploration team. His work also led to the consolidation of the Railroad-Pinion district and the North Bullion and Bald Mountain discoveries when he was at Gold Standard Ventures.

Dave Moylan, Dataram's chairman and CEO, said of Mathewson, "Dave is a strong addition to the U.S. Gold team and brings more than 35 years of exploration experience in Nevada. He is a well-known and respected exploration geologist who is credited with many discoveries, and one of a handful of world-class geologists that historically finds new gold deposits."

Dataram has called a special meeting of shareholders on March 30 to vote on the acquisition. The company also noted that Dataram to approve the merger and implement a reverse split of common stock. Dataram also noted that the "Board will also declare a special dividend for the shareholders of record as of no less than five (5) business days prior to closing. This means the Company shareholders of this record date will receive a special dividend from the net proceeds should the Board elect to divest the memory business within eighteen (18) months of the Closing Date of the U.S. Gold acquisition. While there is no current plan to divest, should this become a future consideration, the intent is to ensure the benefit is received by, and only by, the pre-close shareholders."

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) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

( Companies Mentioned: DRAM:NASDAQ, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17349

Fission Uranium's Exploratory Drilling Hits Success Right Out of the Gate

With uranium up 40% off last year's lows, a glimmer of optimism is returning to the uranium market, says Fission Uranium's President, COO and Chief Geologist Ross McElroy. In this interview with The Energy Report, McElroy discusses the company's latest drill results, its winter drilling plans and why he believes Fission could be on the cusp of a major discovery.

The Energy Report: Uranium hit lows this summer before recovering somewhat, although the uranium price is still well below the highs of several years ago. Would you discuss the fundamentals for uranium and your predictions for the price over the next several years?

Ross McElroy: We saw the spot price of uranium hit a multiyear low of about $18 per pound ($18/lb) in late November/early December 2016. But we've also seen, in the short period from the beginning of December up until currently in March, the spot price recover to close to $25/lb. That represents a price increase of about 40% over just a few months. Of course, $25/lb is still a very low price.

At the low end, the major low-cost producers, primarily the Kazakhstan producers and Cameco Corp. (CCO:TSX; CCJ:NYSE), one of the world's largest uranium producers, sent signals to the market—by reducing low-cost production and shutting in higher-cost production—that they're not selling uranium any cheaper than that. Those are among the lowest-cost producers worldwide. It has gotten to a point where even they can't make any money. There's no profit margin left, even for those with the lowest cost production.

I think that we've seen a bottom in the price of uranium. When we look at the costs of production around the world to bring on new mines or even get the majority of the ones that are already operational to be profitable, we're going to have to see uranium prices increase substantially closer to $50–60/lb. And to bring on any meaningful new production, prices need to be closer to $60–70/lb. So even from where uranium is at right now, a huge improvement in price is needed to go forward.

We know the demand is there. The reactor build-out worldwide continues to increase. The most significant, of course, is the acceleration of the build-out of reactors in China. China currently gets about 2% of its energy needs by nuclear power. Its goal is to raise that level to around the 15 to 20% range. That means China is going to have to build out another 150 to 200 or so reactors. That's an incredible growth story just on its own. But it's not the only country that's on that trajectory. India also has significant growth plans and even the Middle East is increasing its use of nuclear power.

We only have to go out 10 to 15 years to see electricity demand growing by 150%, with nuclear being a significant part. It's my expectation that, within the next two years or so, we'll see substantial increases in the price of uranium, perhaps getting closer to $40–50/lb as discussed. That's how I see the near-term horizon.

TER: At the end of February, Fission Uranium Corp. (FCU:TSX; FCUUF:OTCQX; 2FU:FSE) released drill results that discovered a new area of mineralization as well as an extension of both ends of its mineralized trend. Just a few weeks later you hit wide mineralization in the same area and you have the start of a new, high-grade zone. Can you tell us more about these results?

RM: We were very pleased with our first results from our latest batch of drilling. When we stepped out around 600 meters (600m) along the same mineralized trend that already hosts our Triple R uranium deposit, which is the world's most significant high-grade shallow deposit, we encountered significant anomalous radioactivity with counts up to 3,200 counts per second. In the world of measuring radioactivity—which ultimately translates to uranium—that's significantly anomalous. We felt that we were close to high-grade mineralization, stepping out on our exploratory plan along the Patterson Lake South (PLS) corridor trend. We know that that trend should continue for significant distance both to the east and the west. It's a great big, long conductive trend that already hosts two world-class uranium deposits (Fission's Triple R and NexGen's Arrow) and indications of others (Cameco's Spitfire zone). And as we stepped out 600m to the west of our R840W zone, we were seeing signs of a new area of potential for us.

A good part of the thrust of our winter program is to make a new discovery. We're looking for the next Triple R deposit. We followed up that big stepout hole with another seven holes, five of which intersected anomalous radioactivity over a 180m strike length. Included in this was hole PLS17-539, which is approximately 510m west of our large, high-grade and shallow zone called R840W. We hit 31m of continuous mineralization, including high-grade radioactivity. This is a great result for us because we have a strong track record of really growing these new zones and you just have to look at the Triple R, which is composed of two zones, and the additional zones on either side of our deposit that we have not yet added to our resource estimate.

Thanks to this new zone our mineralized strike length is now 3.14km—the largest in the Athabasca Basin region. Growing the zone is going to be our clear focus going forward, but we have no intention of stopping there. PLS is a remarkable project and we have a number of other exploration hot spots that we are pursuing.

TER: You mentioned that the Triple R is the world's highest-grade shallow deposit. How important is it that the deposit is shallow? What does that mean for your costs?

RM: The Triple R deposit is not the biggest deposit in the world; it's also not the highest grade, although it ranks up there with some of the biggest highest-grade deposits, which is really what the Athabasca Basin is famous for. What really sets Triple R apart from everything else is its shallow nature. The top of our deposit starts at around 50m below surface, and we've been able to delineate that to about 300m depth. So it's very shallow.

What shallow means is that this is open pittable. And there are no other open-pit potential deposits of this size and grade anywhere in the world. All the other high-grade deposits in the Athabasca Basin region are deeper. And deep deposits can often represent much more of a challenge to develop. For one thing, deep underground mining is generally more expensive to mine. Deep underground uranium mines take a great deal of specialty engineering in order to mine the ore.

An open pit is a much simpler type of mine plan. That's what really makes this deposit unique. We can put an open pit in the ground and access the ore more quickly because it's near surface. A rule of thumb in mining is, with all things being equal, the shallower the deposits are, the more economically viable they tend to be because they're less expensive and less technically challenging to get out of the ground. That's what really sets our deposit apart from everything else.

TER: Fission announced that it is increasing its winter drill program, adding 29 holes. What do you hope to accomplish this winter?

RM: The increase in the drill program was primarily so that we could add a much larger exploration component to the drilling. We have a two-pronged approach this winter.

Part of what we're doing is growing the newly discovered high-grade pods on the west and east sides of the Triple R deposit. Those two pods, known as 840W and 1620E, are not yet part of a resource estimate. We believe that with enough holes to delineate them, we can potentially bring them into a resource estimate and thus grow the Triple R deposit by pounds.

PLS is a very large property that's just rife with exploration targets. This winter we are putting a greater emphasis on hunting for the next occurrence of high-grade mineralization that we hope is just around the corner. We already talked about the discovery 600m to the west; that's part of our push to have a greater emphasis on exploration. If we can make another discovery and find an entire new deposit either on trend or on a parallel trend, that will be a meaningful and material event for the company. The additional 29 holes are primarily a really hard look at exploration.

TER: When you expect to finish this drilling and get assay results?

RM: The winter drilling window in the Athabasca typically starts in January, and it's very much weather dependent. Once spring comes and the snow and ice start to melt, that usually signals that the program has to come to an end. We expect that the drilling will continue until mid-April. So we have about another month to go in the program.

Assays follow, typically for us, about six weeks after drilling. So there's usually a six-week lag time from drilling a hole to when we see the assays from the lab.

You will start seeing assay news flow probably in the next two weeks, and it should continue into late May.

TER: When do you expect to release a resource estimate and a prefeasibility study (PFS)?

RM: I mentioned the goal is basically to bring our newly discovered high-grade zones, the 840W and the 1620E, into the overall resource estimate. To do that, we still probably need another drill program. That'll be this summer's program, which would start in July and go until September. So I suspect we're looking at a resource estimate toward the late fall/early winter, so November/December of this calendar year. That's our goal.

A PFS might be the next step. We released a preliminary economic assessment (PEA) in 2015. The next step is possibly to move directly into a PFS. We could have that put together by, say, H1/18 if we so choose. That would mean we'll have to do a little more engineering work in the field, some geotechnical holes and a bit more metallurgical studies. Those are necessary components of the PFS.

We're already very advanced in other important areas. We know the resource itself is robust enough. As 75% of our resource is Indicated, our drilling is sufficient on the main zone to do an advanced PFS study. That resource data set is good. So we have to pin down a little more on the engineering side to advance to a PFS. Thus possibly in 2018 we could look for a PFS.

TER: Where do you see Fission going from here?

RM: On the PLS project, as I mentioned, there are a couple of prongs that we want to take. On the advanced project side, we want to develop the Triple R deposit, grow the resource by adding in the new zones and move the project forward through prefeasibility and eventually down the road into feasibility to a point where a production decision can be made. We think that this project has a great chance of being a producer. Our PEA study indicates that Triple R could potentially be a very low-cost producer.

On the blue-sky side, the whole western side of the Athabasca Basin is an underexplored area. Our property is a large package right in the heart of this prospective western Athabasca region. Because it's such a large land package that's virtually underexplored, we think there's a lot of potential to find other occurrences of high-grade deposits on the property.

Part of our approach will be to look for new occurrences and also to bring what we already know further up the food chain, closer to the eventual production decision. That's a multiyear approach for both aspects.

TER: If the price of uranium stays low, what would Fission's strategy be?

RM: We're very mindful of the uranium price. We saw the very low prices in 2016 at close to $18. When we weren't sure when the price was going to turn around, we started to pull in the reins, finding ways to reduce our general and administrative costs.

Fission is an exploration company, which means the majority of its spend is exploration. And for us, that's discretionary spending. It's not money that we have to spend to keep the property in good standing, and it's not like having an operating mine where there are costs associated with shutting in or just inactivity. For us, if we have a low uranium price market, we just reduce our costs. We don't have the requirement to spend that money to explore, but we have the option to do so.

Having said that, shareholders stand behind Fission because we are successful at what we do and we are an aggressive company, and we're very nimble with the sense of the market. If the uranium market looks like it's picking up, we increase our spending.

This winter's program is a real reflection of that. We were prepared to reduce spending on our exploration significantly this winter. And then once we had the budgets approved, the uranium market picked up, things were exciting and the share price increased. So we felt the opportunity was there to actually expand our program.

We're quite nimble. It's up to us to read the market and try to make those decisions. But it's a fairly easy and straightforward process for us to either turn down spending or dial it up accordingly. So if it's a low price market, we'll continue to watch our spend and make sure that we don't burn through the significant treasury that we have.

TER: Any parting thoughts for our readers?

RM: We think that a turnaround in the uranium market has already occurred. We've seen the price of the commodity, at least on the short-term spot market, increase by about 40%.

Share prices of uranium companies are leveraged to the price of uranium. In that time frame, Fission is up around 60%. So we had a low that coincided with the low price of uranium. Our share price was $0.50. We're around $0.80 now. Our share price has increased at a rate greater than the increase in the price of uranium.

Good companies have leverage to increase in share value as the price of the commodity goes up. We believe that uranium is on an upward trajectory. But more importantly than anything is it will be a select number of companies that have really good, meaningful, low-cost assets such as our Triple R deposit that turn around to the greatest degree.

The market is changing. Investors should have another look at uranium. There are pretty compelling reasons why they would want to invest in the sector, and then they should look to Fission as being the cream of the crop of companies to pick.

TER: Thanks for your insights.

Ross McElroy, president, COO and chief geologist of Fission Uranium Corp. is a professional geologist with nearly 30 years of experience in the mining industry. He is the winner of the PDAC 2014 Bill Dennis award for exploration success and the Northern Miner "Mining Person of the Year 2013." He has comprehensive experience with working and managing many types of mineral projects from grassroots exploration to feasibility and production.

Want to read more Energy 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 Articles page.

Disclosure:
1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
2) Fission Uranium Corp. is a sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclaimers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Fission Uranium Corp. had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Ross McElroy and not of Streetwise Reports or its officers.
4) Ross McElroy: I was not paid by Streetwise Reports to participate in this interview. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview. I or my family own shares of the following companies mentioned in this interview: Fission Uranium Corp.
5) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
6) This interview 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.
7) 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

( Companies Mentioned: FCU:TSX; FCUUF:OTCQX; 2FU:FSE, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17346

Wednesday, March 22, 2017

Columbus Discovered a Gold Mine

Bob Moriarty of 321 Gold looks at the bankable feasibility study that just came out on Columbus Gold's Montagne d'Or gold project in French Guiana and concludes that it's going to be a mine.

And Columbus Gold Corp. (CGT:TSX; CBGDF:OTCQX) proved that they discovered a gold mine with their press release of March 20th, 2017, covering the bankable feasibility study I said was coming by the end of March in the piece I wrote about them in January. Those numbers suggest the Montagne d'Or gold project in French Guiana is going to be a gold mine. And for an interesting snapshot of someone who is a believer in the mine take a gander at this short video.

The fellow in the blue hat cutting the core is Emmanuel Macron, the current Minister of Economy and Industry for France. While Marine Le Pen is favored to score highest on the first round of the French election scheduled for April 23rd, Macron is favored by most to win the French presidency in the runoff between the top two candidates taking place on May 7th. Is that a big deal, the upcoming President of France giving his stamp of approval on a gold mine in French Guiana? Well, all I can say is that if you ever see Trump tweeting about exceptional drill results coming from a company in Nevada, sell everything you own and buy that company's shares.

I've been covering mining companies and projects for almost seventeen years now. One of the things I have realized and I wrote about it in my bestselling book, Nobody Knows Anything, is that everyone has a bias and everyone has an agenda. That's not me commenting in any negative way about humans in general even though the majority of them are brain dead. But everyone is biased. Everyone has an agenda.

You get an email from one of our heroic soldiers in Syria over there training terrorists. He wants to share a trunk load of slightly used U.S. $100 bills with you. Well, you are probably biased and think that U.S. solders training terrorists is just a wonderful idea, no doubt. You are biased. After all, the NYT and WP have been supporting our brave soldiers off protecting the freedom of Americans by killing rag heads since the Carter administration. While this soldier doesn't even know your name well enough to use it, he wants to share his fortune with you.

You need to ask yourself, "What's his agenda?" Because if you spent $4 like thousands of other of my readers have, you would understand everyone has an agenda including him.

Yes, he has an agenda and it is not to give you money, it is to take your money. If you pass the reverse IQ test and respond to him, he goes into great deal of detail about how the bills are only slightly tarnished and it's not 100% legal for him to send it to you but since he likes you a lot, he will. All you have to do is send him $100 as a sign of good faith.

Don't snicker. It's a scam. I know it's a scam because of the 86 times I paid up, not a single guy sent me my money.

It's a scam just like reading about how gold is manipulated and was the biggest financial fraud in world history. If you go down today and buy an American Eagle one-ounce coin for $1350, you have been stolen from because gold really should be $5000 an ounce. Now I can't quite figure out just who stole from you when you walked out of the coin store but I'm told someone stole from you because the gold really should be $5000 an ounce. All financial markets are manipulated. It's not a big deal.

If someone writes you from Nigeria and has this really great oil deal, send money, it's a scam. If someone tells you about gold manipulation and wants your money, it's a scam.

When someone does any sort of a mining deal each of the participants has an agenda. While it's not important for the agenda to be identical it is vital that the agendas at least overlap.

For example if you ever see any sort of deal that calls for a giant cash payment in advance for a piece of moose pasture, it's a scam. While the moose pasture may well contain the 85.3 mt of moose poop measuring 1.6 g/t ms, the agenda of the seller may well be to take the money up front and then queer the deal.

If you could really make money buying moose poop, the seller would take a NSR or payment down the road. But when the seller wants most of his money up front, his agenda is to take the buyer's money now and he will immediately do everything in his power to make sure the buyer doesn't get permitted or be allowed to go into production.

As projects advance, the interests of the parties involved should get closer and closer to alignment. Such is the case with Columbus Gold and their 55% partner in the Montagne d'Or gold project, Nordgold N.V. (NORD:LSE). One Russian shareholder owns Nordgold. The company runs nine gold mines. It may well be the agenda of Nordgold to put the project into production. It also may well be the agenda of Nordgold to simply sell out to a major and take the cash.

Columbus on the other hand is an exploration company. At some point they are going to want to cash out. Having the ability to outline nearly 4 million ounces of gold in French Guiana is not the same skill set as putting a big gold mine into production or to operate a big gold mine.

The feasibility study goes a long way to making the interests of Columbus Gold and Nordgold align in a good way. Nordgold has earned their 55.01% interest. The study reveals the project has an NPV of about $500 million CAD with a twelve-year mine life of almost 3 million ounces production. While the IRR of the project appears low at 18.7%, there is an additional 1 million ounces of gold in the inferred category within the existing pit that can be turned into reserves with more drilling.

This project was exceptional before the BFS. It's better now. The numbers are only going to improve. If I use a figure of 4 million ounces of gold and $100 an ounce USD, Columbus Gold should be worth about $1.50 to $1.75 a share for their 45% of the Paul Isnard project.

One of three things will happen.

  1. Nordgold buys out Columbus Gold's 45% interest and puts the project into production. If they do, it probably would be at $200 USD an ounce or better. While the Isnard project is the flagship project for Columbus Gold, it isn't their sole pony. Columbus also owns the 1 million ounce Eastside project in Nevada. Columbus now has a fall back project and that's a big deal for them. They are not a weak hand in any negotiation.
  1. Another major comes along and either buys out Columbus' interest in Paul Isnard or buys out both Nordgold and Columbus. That could be as high as $200 USD to $300 USD per reserve ounce. I expect the partners to be tightly focused on increasing reserve ounces ASAP now that they both are interested in the highest price possible for their interest.
  1. A bidding war starts and either Nordgold or a major or two majors get into competition for the project. Reserve ounces could go for $400 an ounce.

Announcing the BFS allowed all the weak hands a liquidity event so they could bail out. The shares dropped 12% on what should have been taken as brilliant results. In my book I keep trying to say, buy cheep, sell deer. Columbus Gold just got really cheep.

Columbus Gold is an advertiser. While I don't own shares, I am biased. Do your own due diligence.

Columbus Gold
CGT-T $0.87 (Mar 21, 2017)
CBGDF-OTCBB 152.7 million shares
Columbus 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.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. Columbus Gold Corp. 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 in the article are sponsors of Streetwise Reports: Columbus Gold Corp. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.
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( Companies Mentioned: CGT:TSX; CBGDF:OTCQX, NORD:LSE, )



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