Precious Metals Explorer ‘Could Receive Interest from Senior and Mid-Tier Gold Producers’

Source: Streetwise Reports   09/21/2017

Eight Capital reports that a steady schedule will have this explorer reporting assays every month through the end of the 2017 and possibly longer.

In a Sept. 20 research report, Eight Capital analyst Craig Stanley discussed GFG Resources Inc.’s (GFG:TSX.V; GFGSF:OTCQB) initial assay results from its 100%-owned Wyoming gold project Rattlesnake Hills. “Assays from the initial eight drill holes that tested brownfield targets intersected broad zones of low-grade mineralization. The assays are geologically interesting and generally above a likely cut-off grade of a potential heap leach operation,” Stanley highlighted.

Stanley listed the results reported by GFG Resources:

  • RSC-184 was drilled in the flank of Antelope Basin and hit 73.2m of 0.43g/t Au at 82.3m down-hole depth in Precambrian schist that extend nearly 200 meters east of the quartz monzodiorite dike that hosts mineralization at Antelope Basin.
  • RSC-188 was drilled on the west side of the North Stock intrusion, 70m from the nearest historic hole, and hit 114m of 0.45 g/t Au at 74.07m down-hole depth
  • RSR-001 (15.2m of 0.55 g/t Au at 196.6m down-hole depth) and RSR -003 (7.6m of 0.37 g/t Au at 117.35m down-hole depth) tested the middle ground area between Antelope Basin and North Stock.
  • RSR-006 tested the northwestern extension of the mineralization at North Stock and hit 15.2m of 0.29 g/t Au at 21.34m down-hole depth.
  • RSR-007 tested a strong IP anomaly 350 meters southwest of North Stock and hit 10.7m of 0.51 g/t Au at 128.02m down-hole depth.
  • BJR-001and BJR-005 tested the western portion of the large (400m by 750m) gold -silver soil geochemistry anomaly at Blackjack and hit 18.3m of 0.79 g/t Au + 36.86 g/t Ag at 120.4m down-hole depth.

In terms of next steps, Stanley noted that “GFG has completed 50% of its 2017 drill program with 14 holes pending assay results” and explained that GFG Resources will begin drilling the remaining 15 greenfield holes in October. He stated that “the drill program is expected to finish in early November, with assays being reported on a monthly basis for the remainder of the year and potentially into 2018.”

“We believe GFG could receive interest from senior and mid-tier gold producers. We note that in 2011, Agnico-Eagle (not covered) signed a $76 million joint venture agreement to earn a 70% interest in the Rattlesnake Hills Gold Project, which is less than half GFG’s current market cap,” Stanly concluded.

Eight Capital has a Buy rating and target price of $1.60 per share for GFG Resources. The company is currently trading at $0.64 per share.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. 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: GFG Resources. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. 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 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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: GFG:TSX.V; GFGSF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17718

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Canadian Gold Explorer Expected to Garner Interest as ‘M&A Target’

Source: Streetwise Reports   09/21/2017

With a 100%-owned project spitting our results like a winning slot machine, several industry analysts took notice.

Victoria Gold Corp. (VIT:TSX.V) announced multiple results from its 100%-owned Dublin Gulch gold property in the Yukon with back to back news releases on Sept. 18 and Sept. 19.

In the Sept. 19 press release, Victoria Gold announced the first assays received from the “2017 Bluto target surface trench exploration program. TR17-16 was the first major trench constructed at the Bluto target this season and was concentrated on a trail built with heavy equipment to access a water source that would be utilized in the planned 2017 Bluto diamond drilling exploration program.”

“The fact that a high-grade gold vein was discovered early in this campaign demonstrates that our Potato Hills Trend mineralization model is working and we look forward to the first ever drill results from this highly prospective area,” noted John McConnell, president and CEO of Victoria Gold.

Following the press release, Chris Thompson, an analyst with Raymond James, reported on Sept. 19 that “VIT’s continued exploration success demonstrates potential upside for Eagle, providing possible satellite deposits which could extend the planned mine life beyond the current 10 years.” He pointed out that “recent drilling and trenching along the Potato Hills trend have identified several new targets including Spinach (~500 m north of Olive-Shamrock), Popeye (~1 km west of Olive-Shamrock), and Bluto (6 km east of Eagle).”

He explained that he is maintaining a Buy rating and that the $1.00 target price “is derived by applying a 1.0x multiple to our fully funded NAV. We feel our target is justified given Eagle’s safe jurisdiction and fully permitted status.”

Raymond James has an Outperform rating on Victoria Gold and a target price of $1.00 per share. The company’s shares are currently trading at $0.48.

Echelon Wealth Partners analyst Ryan Walker stated in a Sept. 19 report that “Victoria Gold reported a trench assay from the new Bluto Target, along the Potato Hills Trend model that the Company is using successfully to guide exploration at its 100% owned Dublin Gulch project in the Yukon.” He pointed out that Victoria Gold is currently testing another 22 trenches with assay results pending on 10 of the holes.

Walker highlighted that “results nearer to Eagle in the Olive-Shamrock area are demonstrating the potential for relatively quick mine-life additions, while strong results from Spinach and Bluto confirm the substantial exploration potential remaining along the 18km-long Potato Hills Trend at Dublin Gulch, something we highlighted in our original investment thesis.”

“Our positive bias towards VIT shares reflects the project’s strategically large resource, fully permitted and shovel ready status, district-scale land package with substantial exploration potential near excellent infrastructure, and situation in Canada,” Walker concluded.

Echelon maintains a Speculative Buy rating om Victoria Gold with a target price of $0.90 per share.

Victoria Gold’s Sept. 18 press release detailed the results of the “the first eleven (11) exploration drill holes at the Spinach target, a previously untested area north of the Olive-Shamrock Deposit.” The announcement highlights the details of the drill results and notes that “2017 exploration at the Spinach target included soils geochemistry surveys, geologic mapping, trenches and diamond drilling focused on assessing the gold mineralization potential of the northern contact margin of the Dublin Gulch intrusive stock.”

In a Sept. 18 report, Echelon Wealth Partners analyst Ryan Walker stated that “drilling at Spinach tested an area of approximately 400m by 400m. For comparison, the Eagle Gold deposit, which is now under construction, contains Proven and Probable reserves of 2.7 Moz Au grading 0.67g/t Au, part of a wider resource containing 4.0 Moz Au grading 0.65g/t Au in Measured and Indicated resources, and a further 0.5 Moz Au grading 0.61 g/t Au in Inferred resources.”

Gary Sidhu, an analyst with PI Financial, stated in a Sept. 18 report that “drilling at the Spinach zone this year totaled 6,265 metres (22 holes) targeting a coincident gold/arsenic soil geochemical anomaly.” He highlighted that “mineralization intersected here is distinct from both the Olive-Shamrock deposit and Eagle deposit however, [and] continues along the same Potato Hills Mineralization trend.”

Sidhu noted that the distinct mineralization discovered is a good sign for future exploration and “results indicate exploration methods (mapping, soil geochemistry, and trenching) have been successful in identifying mineralized zones.”

“Victoria controls what we consider to be a strategic asset: a sizeable gold development project (~200koz/y), which can be developed for a reasonable initial capital expenditure . . .we expect Victoria will garner interest from a variety of gold producers as an M&A target.”

PI Financial maintains a Buy rating and a target price of $1.10 per share on Victoria Gold.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. 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: Victoria Gold Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. 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 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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: VIT:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17717

Zinc Company ‘Smoothly’ Integrates Mine Acquisitions

Source: Streetwise Reports   09/21/2017

An analyst with Haywood Securities explained the potential of this base metals miner’s new African assets.

“The recent acquisitions will help to position Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) as an intermediate producer with a strong base to build from,” concluded Pierre Vaillancourt, analyst with Haywood Securities, in a Sept. 14 research report following a visit to the Rosh Pinah mine in Namibia and a meeting with management from the Perkoa mine in Burkina Faso. “Trevali, in our view, is better positioned as a smaller producer to add value to the mines.”

Vaillancourt added that efforts to improve production at both mines are “in progress.”

At Rosh Pinah, upgrades are being implemented, “which should be complete by year-end and are expected to increase throughput and lower costs,” indicated Vaillancourt. “Most notably, changes to the flotation plant are expected to lead to recovery and concentrate grade increases.”

At Perkoa, due to a change in mining contractor earlier in 2017, “the mine has improved production results,” Vaillancourt noted. “It has higher stope flexibility, has successfully implemented cement rock fill and mining of secondary stopes and has higher equipment performance and capacity on site, which led to record production for August, 2017.” To reduce costs, the “decision on a heavy fuel plant for Perkoa” should be made in October.

In terms of reserves at both operations long term, the “outlook is attractive,” the analyst wrote, and drill programs at both properties continue. 

At Rosh Pinah, there are the life-of-mine reserve of “7.6 years based on 5 Mt at 8.8% Zn” along with Measured and Indicated resources of 6.5 Mt at 8.2% Zn and a conceptual resource of 13 Mt at 10% Zn,” Vaillancourt detailed.

At Perkoa, he added, which “is wide open,” the high-grade deposit is open to depth” and “45 targets along the Perkoa mine horizon” have been identified.

Haywood Securities has a Buy rating and CA$2 per share price target on Trevali, whose stock is currently trading at CA$1.42 per share.

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Disclosure:
1) Doresa Banning 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 sponsors of Streetwise Reports: Trevali Mining Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. 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 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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: TV:TSX; TV:BVL; TREVF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17716

Site Visit Leads to Rating, Price Target Upgrades on Gold/Silver Miner

Source: Streetwise Reports   09/21/2017

A PI Financial analyst reported how a recent visit to the Nevada operations of this precious metals company changed his outlook on it.

In a Sept. 19 report, Philip Ker, an analyst with PI Financial, wrote that the visit to Klondex Mines Ltd.’s (KDX:TSX; KLDX:NYSE.MKT) Hollister and Fire Creek left a good impression and provided a “vision of [the] future” for the company in Nevada.

Regarding Hollister specifically, Ker noted that “it demonstrated considerable upside with an expected increase in head grades, declining costs as a result of successful long-hole stoping and exploration potential at Hatter Graben.” He added, “Positive takeaways have led us to have a more favorable long-term view of Hollister and resulted in improved valuation metrics for the company.”

As for Fire Creek and Midas, Klondex “continue[s] to expand the resource footprints at those operations,” the analyst noted. Specifically at Fire Creek, “it appeared a considerable updip extension of the Karen vein was discovered ~300 feet above the existing resource,” though assays remain pending. Expansion of known mineralized zones, “along with other efforts across Fire Creek and Midas continue to demonstrate further mine life extension.”

As a result, PI Financial revised it model on Klondex to “incorporate upside from Hatter Graben and reducing costs at Hollister,” explained Ker, noting that a key catalyst for the company will be demonstrating exploration success at Hatter Graben. ”We are increasing our rating to Buy from Neutral and our target price to $4.85 per share from $4.15 per share.” This compares to CA$4.38, where Klondex’s stock is currently trading.

In the near term, however, it will be “a challenge” for the miner to meet its stated consolidated 2017 guidance of 213–230 Koz of gold equivalent due to “an unplanned delay in processing Hollister ore,” Ker said. “Operations elsewhere will need to pick up the slack.”

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Disclosure:
1) Doresa Banning 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 sponsors of Streetwise Reports: Klondex Mines Ltd. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. 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 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.

Additional disclosures about the sources cited in this article

( Companies Mentioned: KDX:TSX; KLDX:NYSE.MKT,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17715

Follow the Money

Source: Rudi Fronk and Jim Anthony for Streetwise Reports   09/19/2017

Rudi Fronk and Jim Anthony, founders of Seabridge Gold, discuss why the stock market’s been up and why it likely won’t last.

During the last week, the major market indices rallied again. There was no news to account for it. But there was a reason.

The U.S. Treasury has been up against its debt ceiling since March 15 when the ceiling was re-imposed. Since then, there has been no net new issuance from the Treasury. The Treasury has run down its cash balances and borrowed internally from its own resources, which are not subject to the ceiling. This period has been very helpful to the financial markets. With the federal government not selling any net new supply of securities—just rolling the maturing stuff over—the markets have been flush with cash that would otherwise have been absorbed by the government.

This hit of extra liquidity is about to disappear and then some. President Trump has made a three-month debt ceiling deal with the Democrats which means that the Treasury can resume borrowing without restrictions through December. This increase in the debt ceiling is needed to reliquify the federal government (which is down to $38 billion in cash) and repay the internal funds the Treasury raided since the debt ceiling was imposed back in March.

The Treasury needs to borrow a substantial amount of money. There hasn’t been a material increase in the Treasury’s borrowing schedule yet, but it is coming. The Treasury Borrowing Advisory Committee (TBAC), a group of senior Wall Street executives, has advised the Treasury to issue $501 billion in net new supply in the fourth quarter, virtually all in November and December, and the Treasury almost always follows the TBAC script. That’s an outrageous amount of money.

The cash the Treasury needs is not sitting somewhere in primary dealer bank accounts; it’s invested in the financial markets. Securities will have to be sold to accommodate this new issuance.

This is not new. A borrowing spike happens every time we have an increase in the debt ceiling as the chart below demonstrates. Note that this chart reflects an estimate of net new issuance needed to return to last year’s cash on hand and was produced before TBAC had issued its recommendations. TBAC is proposing to move more slowly. Nonetheless, past funding spikes are clearly demarcated and the next one is going to be big

US Gross National Debt

While Treasury supply will increase, the trend of demand for Treasuries has been going the other way. Bid coverage at auctions has been declining in recent months and the largest banks have been reducing their inventories of Treasury securities. Falling demand in the face of increasing supply is a recipe for a bear market in bonds. Bond yields will rise and that will put pressure on stocks as well.

The Federal Reserve has given the market extraordinary support over the past eight years by financing most new Treasury supply. Even after it stopped outright Quantitative Easing in November of 2014, the Fed continued to buy $25–$45 billion per month in maturing Mortgage Backed Securities from the primary dealers. That cashed up the dealers and helped finance their purchases of new Treasuries.

But now, the Fed intends to join the Treasury as a net seller of Treasuries (and MBS) as it starts to reduce its balance sheet this fall. Once the Fed stops buying that paper, the dealers will have a lot less cash and that means a lot more selling.

Gold is traditionally a hedge against financial market risks. We may soon have the opportunity to test that hypothesis yet again. The key is to follow the money.

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. 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.

Want to read more Gold Report articles like this? Sign up at www.streetwisereports.com/get-news 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.

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 LLC for this article. Streetwise Reports was not paid by the authors to publish or syndicate this article.
2) Seabridge Gold is a billboard sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) 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.

Chart provided by the authors.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17712

A Diamond Play with Development, Discovery Potential

Source: James Kwantes for Streetwise Reports   09/19/2017

With a diamond supply deficit looming, James Kwantes, editor of Resource Opportunities. profiles a cashed-up junior company at the forefront of Canadian diamond exploration.

The November 1991 discovery of diamonds in the Northwest Territories by prospectors Chuck Fipke and Stu Blusson put Canada on the global diamond map. It also triggered one of the largest staking rushes in the world, as hundreds of companies hurried north to find treasure.

A few years later, many had retreated to warmer climes. One company that remained in the hunt was Gren Thomas’s Aber Resources, with a large land package staked by Thomas and partners at Lac de Gras near the Fipke find. In the spring of 1994, an Aber exploration crew led by Thomas’s geologist daughter, Eira Thomas, raced the spring melt to drill through the ice in search of kimberlite—the rock that sometimes hosts valuable diamonds.

It was a long shot. Since the Fipke-Blusson discovery, the great Canadian diamond hunt had virtually ground to a halt—despite the millions of dollars spent in search of the glittery stones. But the drill core from Aber’s final spring hole had a two-carat diamond embedded in it. The Diavik discovery meant it was game on for Aber—and Canada’s nascent diamond industry.

DIAMOND POWER PLAYER

A quarter century after that fateful hole was punched through melting ice, Canada punches above its weight in the world of diamonds. Measured by value, the country is the third largest producer of diamonds by value globally. And the valuable diamonds that continue to be unearthed at the Diavik mine discovered by Aber are a big reason why.

The discovery unleashed a wave of shareholder value. The shares of Aber and its successor companies went from pennies to more than $50 as the quality of the diamonds and the asset became known. Aber is now known as Dominion Diamond Corp. (DDC:TSX; DDC:NYSE) and is Canada’s premier diamond company. Dominion operates the Ekati mine and owns 40% of Diavik. The Diavik mine is expected to produce about 7.4 million carats this year, making it among the world’s largest diamond operations.

/kwantes1_091817.jpg
Eira Thomas remains involved in the Canadian diamond world.

The team behind the Diavik discovery has also created a fair amount of shareholder value in the years since, led by Eira Thomas. She has co-founded two diamond players, Stornoway Diamond Corp. (SWY:TSX) and Lucara Diamond Corp. (LUC:TSX.V), and remains a director of the latter Lundin Group company. Her most recent gig, as CEO of Yukon-focused Kaminak Gold, ended rather well—producer Goldcorp Inc. (G:TSX; GG:NYSE) bought the company for $520 million last year.

Thomas is also an advisor to North Arrow Minerals Inc. (NAR:TSX.V), a cashed-up junior company at the forefront of Canadian diamond exploration. Aber’s Gren Thomas is North Arrow’s chairman and the CEO is Ken Armstrong, a former Aber and Rio Tinto geologist. North Arrow recently completed a mini-bulk sample and 11 drill holes at its advanced-stage Naujaat project in Nunavut, which hosts a population of valuable fancy orangey-yellow diamonds.

North Arrow Minerals has submitted 2,440 meters of kimberlite core for microdiamond analysis, as well as a 234 wet tonne mini-bulk sample. The mini-bulk sample should enable the company to get a better handle on overall diamond values and help define the population of more valuable colored diamonds.

The work program was funded by a $5-million financing of 25-cent units, with each unit consisting of one share and a full three-year warrant exercisable at 40 cents. Vancouver mining entrepreneur Ross Beaty and the Electrum Strategic Opportunities Fund, backed by billionaire Thomas Kaplan, each subscribed for $2 million.

/kwantes2_091817.png
A cut and polished fancy orangey-yellow diamond from North Arrow’s Naujaat deposit.

In a space with few new discoveries or development projects, Canada is home to two of the world’s new diamond mines. Stornoway’s Renard mine in Quebec and Gahcho Kue, a De Beers-Mountain Province joint venture in the Northwest Territories, have both recently begun commercial production.

Globally, the diamond industry has faced headwinds, including India’s demonetization and choppy rough stone prices. But diamonds remain a key money maker for some of the world’s largest mining companies, including Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) (60% owner of Diavik) and Anglo American Platinum Ltd. (AMS:JSE), which owns 85% of De Beers.

In a Bloomberg interview late last year, incoming Rio boss Jean-Sebastien Jacques identified diamonds as a “priority area”—”I would love to have more diamonds, to be very explicit.” The company recently backed up those words by signing a three-year, $18.5-million option on Shore Gold’s Star-Orion South diamond project in northern Saskatchewan.

And Anglo’s De Beers division remains a reliable profit generator. In 2016, rough diamond sales surged for both Anglo American (up 36%) and Russian producer Alrosa (up 26%), according to The Diamond Loupe. The Washington Group’s successful takeover bid for Dominion Diamond Corp. reflects the demand for well-run diamond mines, which are powerful profit machines.

EXPLORATION DEFICIT

On the exploration front, the picture is less promising. Budgets dried up during the mining slump that began in 2011, and little grassroots exploration work is being done. It’s particularly problematic for supply because diamond mines take longer to discover, evaluate and build. The new Canadian mines will help fill the gap, but it won’t be enough. Economic diamond discoveries have simply not kept pace with mine depletion, globally.

“There is definitely a lack of new projects, at least new projects that are close to infrastructure,” said Paul Zimnisky, an independent New York-based diamond analyst. “There really is not much at all in the global diamond production pipeline.”

Economic, world-class diamond projects are few and far between, and most exploration companies looking for them have failed, Zimnisky explained. That has resulted in wariness and declining interest among investors: “In general, shareholders have not done well in diamonds.”

/kwantes3_091817.png
Argyle diamond mine, Australia

The looming supply deficit is particularly acute for rare colored diamonds, which fetch higher prices. Australia’s Ellendale mine produced an estimated 50% of the world’s fancy yellow diamonds in the years before it closed in 2015. The Argyle mine, also in Australia, is one of the world’s biggest mines and a source of valuable colored diamonds, including extremely rare pinks. It, too, is slated to close in the coming years, after decades of production.

North Arrow’s Naujaat could help fill the void. The project hosts a population of fancy orangey yellow diamonds that are more valuable because of their rarity. Naujaat is on tidewater, which dramatically reduces costs, and hosts a very large diamondiferous kimberlite, Q1-4, that outcrops on surface. The goal of the company’s program is to extend the Inferred resource to a depth of at least 300 meters below surface and better define the diamond population. The current resource at Naujaat is defined from surface to a depth of 205 meters. Three of the holes terminated in kimberlite, the deepest at a depth of 376 meters below surface.

“It’s the first drilling in more than 12 years,” observed North Arrow CEO Ken Armstrong. “The work will help us confirm and update the size of Q1-4 and improve our understanding of the deposit’s internal geology and diamond distribution.”

A new geological model of the largest kimberlite at Naujaat is expected next year, after further drilling in the spring, he said. The mini-bulk sample was shipped out on the annual sealift and is expected to arrive at the lab in Thunder Bay, Ontario, in early October.

In 2014 and 2015, North Arrow collected a small bulk sample at Naujaat (formerly known as Qilalugaq) with the goal of gauging diamond values. But the carat values on the small 384-carat package came in significantly below expectations. North Arrow shares were relegated to the market penalty box and the company has been largely under the radar since, despite important background work that set the stage for this year’s program.

RISK AND OPPORTUNITY

Contrarian investing and the ability to time cycles can lead to fortunes in the junior mining sector. Vancouver investor Ross Beaty has proven it, time and again. In the early 2000s, with copper trading for under US$1 a pound, his team assembled a portfolio of unwanted copper assets in a bear market. He developed and sold those projects during bull markets, turning $170 million in invested capital into shareholder returns of $1.87 billion. His latest win was a large bear-market investment in Kaminak Gold, later bought out by Goldcorp.

North Arrow Minerals is Beaty’s latest contrarian bet, participating in the financing with other investors including Electrum and company management and directors. In addition to the Naujaat program, exploration is also planned at North Arrow’s Mel, Loki and Pikoo projects.

North Arrow also has exposure to drilling through the LDG (Lac de Gras) joint venture with Dominion Diamond Corp. That project borders on the mineral leases where Diavik is located. Ekati is 40 kilometers to the northwest. Dominion plans to drill several targets there as part of a $2.8-million exploration program. North Arrow will have a 30% interest in the JV. In May, Dominion announced a “renewed strategic focus on exploration” and a $50-million, five-year exploration budget. Dominion’s new CEO, Patrick Evans, formerly ran Mountain Province Diamonds and has an exploration background.

A FANCY EDGE

North Arrow’s renewed focus on Naujaat comes after a polishing exercise yielded fancy yellow diamonds that turned some heads in the industry. Several were certified “fancy vivid” diamonds, a coveted designation in the colored diamond world. The quality of the polished stones suggests the fancy orangey yellow diamonds at Naujaat are considerably more valuable than the June 2015 valuation of the roughs indicated.

The primary conclusion of the diamond evaluators was that the 384-carat parcel of Naujaat diamonds was too small to properly evaluate. North Arrow’s 234 wet tonne sample should help remedy that. Lab results are expected in early 2018.

Another complicating factor at Naujaat is the presence of two distinct diamond populations of different ages, including a population of rare fancy yellow diamonds. It’s a consideration that was not factored into the prior carat valuation. It will be next time. Diamonds are a rarity play, and diamonds that occur less frequently—such as colored diamonds and large diamonds—are more valuable. Yellow diamonds made up only 9% of the 2015 Naujaat sample by stone count, but more than 21% by carat weight.

The drilling between 205 and 305 meters below surface confirmed or expanded previous interpretations of the overall kimberlite pipe geometry. The estimated surface area of the kimberlite at 305 meters below surface is at least 5 hectares, compared to 12 hectares at surface. The kimberlite body remains completely open at depth. This summer’s drilling should help North Arrow better evaluate the contours of the diamond deposit on the path to a future Preliminary Economic Assessment. The Q1-4 kimberlite has a horseshoe shape that makes it amenable to open-pit mining and a low strip ratio. A larger bulk sample is planned for 2018.

COLORED CARATS

Fancy yellow diamonds were thrust into the spotlight recently when Dominion unveiled the striking 30.54-carat Arctic Sun, a fancy vivid yellow diamond cut from a 65.93-carat stone unearthed at Ekati. Dominion also played up colored diamonds in its latest corporate presentation—specifically, the sweetener effect of high-value fancy yellow and orange diamonds at Misery.

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The potential emergence of Canadian colored diamonds could help solidify Canada’s position on the world diamond stage, according to analyst Zimnisky. On the branding and marketing side, Canadian diamonds continue to have strong appeal because of their high quality and ethical sourcing.

And the two recent Canadian mine openings are a bright spot for the global industry, despite early growing pains at both Gahcho Kue (lower-than-expected values) and Renard (breakage), he pointed out.

“There is absolutely an opportunity to sell Canadian diamonds at a premium, especially in North America,” Zimnisky said. The United States remains the world’s largest diamond market, despite the growth in demand from China and India.

Important hurdles remain before any mine is built at Naujaat, but the strength of North Arrow’s management team bodes well for success, according to Zimnisky.

“North Arrow is looking for something world-class and it’s high-risk, high-reward,” said Zimnisky, who has seen the company’s cut and polished fancy yellow diamonds: “They’re beautiful.”

The appetite for fancy yellow and other colored diamonds remains strong, despite the closure or pending closure of two of the mines that produce many of them. Last year a De Beers store opened on Madison Avenue in New York, Zimnisky said, and the feature diamond on opening day was a diamond necklace with a very large fancy yellow stone of more than 100 carats.

DISCOVERY POTENTIAL

Further north of Naujaat on Nunavut’s Melville Peninsula is another North Arrow project with a good shot at a kimberlite discovery. At the Mel property, 210 kilometers north of Naujaat, North Arrow geologists have narrowed down and defined three kimberlite indicator mineral (KIM) trains through systematic soil sampling over several seasons. Last year’s till sampling defined where the KIM train is cut off, suggesting the bedrock kimberlite source is nearby.

The discovery of a new kimberlite field this season is possible, since kimberlites in the region outcrop at surface. “It’s a first look, but there’s potential for discovery without drilling,” says CEO Ken Armstrong.

As for the Lac de Gras joint venture, the US$1.1-billion hostile takeover bid for Dominion unveiled by the private Washington Corp. earlier this year may work in North Arrow’s favor. In addition to spurring a stock surge, the bid forced the diamond miner to crystallize its focus on creating shareholder value. And a key strategy for Dominion, with its two aging mines, is a renewed exploration push.

Finding new diamondiferous kimberlites in proximity to its existing operations would be a big boost for Dominion. One of its best shots is through the joint venture with North Arrow, which covers 147,200 hectares south of Ekati and Diavik. Dominion is spending $2.8 million on the project this season, including a planned drill program. North Arrow is well-positioned to capture the value of any Dominion kimberlite discoveries made.

North Arrow plans to conduct till sampling in the fall at Pikoo, its Saskatchewan diamond discovery, in advance of a potential early 2018 drill program.

James Kwantes is the editor of Resource Opportunities, a subscriber supported junior mining investment publication. Kwantes has two decades of journalism experience and was the mining reporter at Vancouver Sun, the city’s paper of record.

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) James Kwantes owns shares of North Arrow Minerals. North Arrow is one of three company sponsors of Resource Opportunities, helping keep subscription prices low for the subscriber-supported newsletter. North Arrow Minerals is a high-risk junior exploration company. This article is for informational purposes only and all investors need to do their own research and due diligence.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. 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) 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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldcorp, a company mentioned in this article.

( Companies Mentioned: AMS:JSE,
DDC:TSX; DDC:NYSE,
G:TSX; GG:NYSE,
NAR:TSX.V,
RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17710

Blockchain Tech: Don’t Say You Didn’t Know

Source: Lior Gantz for Streetwise Reports   09/18/2017

Lior Gantz, founder of Wealth Research Group, discusses blockchain technology and one company that is harnessing its power.

“You can’t stop things like the blockchain. It will be everywhere, and the world will have to readjust. World governments will have to readjust” – John McAfee, Founder of McAfee

As you’re aware by now, the world’s largest corporations and most governments are already testing the incredible potential of it.

  1. Australia, Japan, and Germany are all prototyping blockchains for their stock exchanges.
  2. NASDAQ is also running test trials, and the TMX is already using blockchain tech for oil and gas contract trading.
  3. The U.S. Department of Defense is now integrating blockchain tech for secure chat-based platforms—they hold it in high regard when it comes to security.
  4. The Ethereum Alliance is basically composed of Fortune 500 companies that are seed investors in the cryptocurrency that HIVE is going to mine soon.

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I was fortunate enough to learn about Bitcoin in the summer of 2012. To give an idea of how Bitcoin looked back then, examine the chart below:

/Gantz2_091817.png

This chart starts with the first trading session of Bitcoin for the price of $0.05 and ends with Sept. 11, 2017.

All in all, from $0.05, Bitcoin had reached over $4,700.

Mining is the backbone of cryptocurrencies because it is miners who allow transactions between the community participants to be validated.

As said, I learned about it in July of 2012, when it was $8.75. I bought it personally in November of 2012 and then more of it beginning January of 2013. I began exiting at $119, all the way to $420 in late 2015.

The newsletter I founded is Wealth Research Group, and in November of 2016 and February of 2017, when the price of Ethereum was $10.35 and $12.80, respectively, we alerted members of the free newsletter to consider owning this particular coin.

/Gantz3_091817.png

From $12.80 in February of this year, it reached roughly $400 by Sept. 1, and as of Sept. 11, 2017, it trades for $294, a 2,300% gain from our suggestion alert.

Today, I want to make sure you know about a company that starts trading on the Sept. 18, the date of this article’s release.

It’s the connecting bridge between the immense stock market investor pool and the tiny cryptocurrency sector.

My goal for months was to find a way for tech-reluctant investors to get involved because it is the future of financial services. This means those who do not wish to buy cryptocurrencies on their own, store them in a wallet and handle the technological aspect of it all can still get maximum exposure to blockchain technology.

As I see it, we are on the cusp of entering a phase similar to the 1990s, where ordinary investors made millions by investing early with companies that became the dominators of the Web, and a new wave of companies are about to reap the rewards from the explosion of blockchain technology.

The only company Wealth Research Group has been able to fully vet and conduct thorough due diligence on, which has no holes for us to poke at, is HIVE Blockchain Technologies Ltd. (HIVE:TSX.V; PRELF:OTC).

HIVE Blockchain Technologies is emulating Steve Jobs’ genius approach by opening up the cryptocurrency and blockchain world to the trillions of dollars in investor funds sitting on the sidelines because they don’t want to own unregulated, newly formed cryptocurrencies, but they understand the significant growth potential of blockchain technology itself.

Fiore Corporation wisely partnered with the largest cryptocurrency mining company in the world: Genesis Mining.

The model and partnership are simple as HIVE Technologies:

  1. Is acquiring one facility purchased from Genesis Mining, with the option to purchase more.
  2. Plans to generate profit from mining the most profitable coin using state-of-the-art computing power and algorithms.
  3. Next, it intends to allocate profits to cover all operational costs and grow the business rapidly by reinvesting it to consolidate competition and rule the blockchain industry.
  4. Lastly, it looks to hoard a strategic quantity of the mined coins for maximum leverage to rising prices.

The brains behind Genesis are three of Bitcoin’s earliest adopters.

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You might have seen Marco Streng on numerous interviews and lectures, as he is considered the smartest man in blockchain technology worldwide.

These three are the operational experts who will navigate the technological aspect of HIVE and propel the growth engine towards the ultimate use of shareholders’ funds.

Now, the management team has fund manager superstar Frank Holmes, who is a multimillionaire and one of the seed investors in Goldcorp, one of the world’s biggest gold miners, so he knows exactly how to build a business into a monster and over-deliver for shareholders.

/Gantz5_091817.png

In my numerous conversations and face-to-face meetings with Fiore Management and Frank Holmes, along with the company’s CEO, Harry Pokrandt, I have the impression that they know they’re onto something unique and their timing is perfect.

This is the only blockchain stock I plan to suggest—HIVE Blockchain Technologies (HIVE:TSX-V & PRELF:OTC).

Lior Gantz, the founder of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

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.

Disclosures:
1) Lior Gantz: I, or members of my immediate household or family, own shares of the following companies or cryptocurrencies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: None.
HIVE Technologies has a marketing agreement with Wealth Research Group. My company has a financial relationship with the following companies referred to in this article: HIVE Technologies. 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. Click here for important disclosures about sponsor fees. 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 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 and images courtesy of the author.

( Companies Mentioned: HIVE:TSX.V; PRELF:OTC,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17709