Developing a High-Grade Gold and Silver Deposit in Mexico

Source: Streetwise Reports   06/21/2018

John-Mark Staude, CEO of Riverside Resources, speaks with Maurice Jackson of Proven and Probable about his company’s exploration in northern Mexico.

Maurice Jackson: Today we will provide an update on Riverside Resources Inc. (RRI:TSX.V), Where Knowledge is Golden, trading on the TSXV, symbol RRI, and on the OTC, symbol RVSDF. Joining us for conversation is Dr. John-Mark Staude, the president, CEO and director or Riverside Resources.

John-Mark, Riverside Resources has some very intriguing news report out of Sinaloa, Mexico, on the 100%-owned La Silla Gold Project in Mexico. Where is La Silla located and historically is this an area known for producing gold mines?

John-Mark Staude: It’s in a great part of western Mexico. It’s in the state of Sinaloa just to the east of Mazatlan. So from Mazatlan, it’s only about an hour and a half on a paved road right to this project. The reason there’s a paved road there is it’s a mining district. Just to the east of us is Taylotita and San Dimas, which has produced over eight million ounces of gold. It’s produced nearly a billion ounces of silver. These are mega districts in Mexico. Riverside is so excited to have gotten in to La Silla, which is a project that Yamana had worked on previously, acquired it from Meridian, and for us to be able to capture such a great asset, put it together, and now begin to do the exploration. Drill targeting is awesome. It’s a very mega mining district area of Mexico.

Maurice: You know, John-Mark, Riverside raised some very impressive assay results. Take us here to table 1 and walk us through them, please.

John-Mark S.: Table 1 is exciting because it has gold, silver, and the interval. You can see the gold values go two, three, five, but particularly nine grams. Then we have even 19 gram gold, high grade gold, and on silver 100 and up to 200 gram silver. So very nice values. These values can also be shown on the map view.

Maurice: John-Mark, walk us through Figure 1 of the La Silla.

John-Mark S.: Here on the map, the La Silla, we have the scale bar on the left of the assay values, and we have the lithologies on there. What you’re looking at is an east-west vein. This east-west vein is Cireulos vein, is one of four major veins in the La Silla district. We’re so excited to be having multiple locations with high grade values. There’s a sample with nine grams gold. There are samples with one, two, three, all the way to 2.5. These long veins over two kilometers, east-west, are really the type of veins that have been developed in the Taylotita mine, San Dimas mine, other mines in this region of Mexico. The green is the volcanic andesites. On the pink is actually the dacites, so the volcanic top boundary is the right place to be. These are fault structures. Good feeder structures, and this there is a cross section line from A to A Prime.

Maurice: John-Mark, what are we looking at here on Figure 2?

John-Mark S.: This is actually the cross section from the south A to the north A Prime. It’s looking at the fault contact with andesite and dacite. With large amounts of gold mineralization. We have 9 grams hauled on the surface, we have a parallel vein. We have a wide zone here, up to 30, 40, even 50 meter wide potential zones of mineralization. We’re very excited by having these vein zones through here, with the main feeder. And then dacite and lithic tests and faults.

These type of cross sections are key for us to be able to figure out where we want to drill. So we see very easily, standing right at the surface, and drilling right into mineralization, a really great drill target at the La Silla project by Riverside.

Maurice: What will be the next step you look to accomplish at La Silla, based on these results?

John-Mark S.: Based on these good results, we can see continuous more sampling, and immediately going to drill permitting. Being able to find 9 gram gold on the surface, 200 gram silver, having these type of assay values, shows us we have good potential for finding something at depth. So the next stage will be drill permitting, and we’ll have that ready for our partner. These are the type of projects that a prospect generator would like to partner, for owning catalysts for a big discovery.

Maurice: Switching gears, for our audience. In April, I was in attendance on a site visit in Sonora state, Mexico, at the Cecilia Gold Project. John-Mark, the value proposition before us here can be astounding. Let me repeat that with an underscore, really astounding. Can you remind the audience of some of the assay results that we have there and the value proposition we have before us?

John-Mark S.: So first off, it’s a big hill with no people around it. So you have great access, really big scale, and that’s key. The grades of up to two ounces, one ounces of gold, having over an ounce of gold in surface on veins is amazing, and right now we’re in the field following that up with more sampling, and going ahead and targeting and figuring out the drill permitting. Getting the drills just right to be able to target these.

Second thing is, we have five other domes at this property. So, it’s not just the one hill, but it makes Cecilia an amazing project with amazing upside, and multiple shots at discovery for Riverside shareholders.

Maurice: We often overlook the intangibles that make an issuer successful. So I want to diverge here slightly. Give us some background on John-Mark Staude and your team there. How long have you been in Mexico?

John-Mark S.: Riverside is a team. Myself, I was lucky enough to go to Mexico as a younger person, over 29 years ago, and have been involved in doing geology and exploration, including working at the Mulatos project. I did my doctorate there. We have a great team of people; Ron Burk has been involved in many discoveries, Pedro Herrera is our Mexico manager. We’ve been working together, on and off together, for over 20 years. Riverside’s been going for 11 years, and we’ve been able to progress, and find partnerships. Owning multiple assets, royalties on all of these projects, makes Riverside really poised for great success in the future, too.

Maurice: Looking at Riverside’s portfolio, the predominant position of it is in Mexico. Tell us why.

John-Mark S.: The key thing is, you can do things quickly. You can develop things into production. Secondly is, there are lots of transactions. People know having projects in Mexico, you can turn them into mines, they create value, you can consolidate. I think the third thing is it is part of North America, close to the United States. Easily accessible for capital for people to float, so it’s a great place to work. We work in the northern parts, right up along the Arizona, New Mexico borders. Great place to be able to develop discoveries into mines. It’s a great mining country, Mexico.

Maurice: I have to tell you, I was thoroughly impressed in how fluent you are in Spanish. You could have conducted today’s questions in Spanish for the entire interview. But also, unbeknownst to me as well, you are a subject matter expert on geology and mining in Mexico. You know we drove around about, what 10 hours round trip and we didn’t use the same highway on our return, and you intimately knew every crack and crevasse, outcrop, fault, and mine that was in production that we passed. Tell us more about your team in Mexico. Is this an all Mexican staff, is that correct?

John-Mark S.: It is. We’ve worked with some of the best people from the best universities in Mexico, and we’re delighted. There are a lot of great geologists in Mexico, we’re honored to have many of them working with Riverside. Secondly, they’ve been on the roads. We’ve been traveling these roads, leading tours, been out in the fields. We know these properties, and we also know the local people. We try to work with them by using all Mexican staff. We try to be one, with the people, for the people, to make a difference for Mexico. I think it’s great for Riverside shareholders to realize, we can operate all in Spanish. Operating there, taking our capital and turning it into great appreciation of value. Riverside’s about value, and working with the local Mexican people is a wonderful way to develop value.

Maurice: With any industry, it’s very relationship based, and you hit the nail right there on the head. The intangibles that your team bring, they’re local, they know the people, the people know them, it’s a great relationship. I was there, I saw it firsthand. This is just a phenomenal team that you have there with Riverside Resources. Now I want to make sure that the audience clearly understands, those intangibles do not show up on the balance sheet. You have to be there to realize it.

Allow me to congratulate Riverside Resources on once again being hand selected by Rick Rule to be an attendee at the Sprott Natural Resource Symposium, which will be held the 17th through the 20th July, in Vancouver, British Columbia. Truly speaks volumes and merit, when the most recognized name in the natural resource base has full confidence in Riverside Resources, and realizes the value proposition as a shareholder.

John-Mark S.: We’re really lucky to have them as shareholders. I’m a big shareholder, and we’re fully committed to making a difference and being a part of the Sprott Conference. Being able to do an event the day before the Sprott Conference, so we can take some of the invitees and attendees up to visit and get an overview of some of British Columbia’s beauty as part of our outreach, and what we really appreciate is at the Sprott Conference, be able to meet with shareholders. For those shareholders who can’t attend the Sprott Conference, we’re always available to contact us, and reach out and talk to us. We’re lucky to have them. Rick Rule, Sprott, and all the shareholders really take that seriously, and work hard to make sure we deliver value.

Maurice: For someone listening that wants to get more information on Riverside Resources, please share the contact details.

John-Mark S.: Please give us a call at 778-327-6671, or go to our website, rivres.com. We’d love to speak to people, and we always try to be available.

Maurice Jackson: And last but not least, please visit our website http://www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.

Dr. John-Mark Staude of Riverside Resources. Thank you for joining us today on Proven and Probable.

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

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

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

Graphics provided by the author

( Companies Mentioned: RRI:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/21/developing-a-high-grade-gold-and-silver-deposit-in-mexico.html

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ZincX Beats Arizona Mining

Source: Bob Moriarty for Streetwise Reports   06/21/2018

Bob Moriarty of 321 Gold calculates what South32’s acquisition offer for Arizona Mining means to the value of another company with a similar resource.

On June 17th, 2018 an Australian company named South32 Ltd. (S32:ASX) agreed to buy the remaining 83% of shares in Arizona Mining Inc. (AZ:TSX) in a deal that values all of Arizona Mining at $2.1 billion Canadian pesos. The fully funded price is an all cash offer.

When they read about the proposed takeover, the management of ZincX Resources Corp. (ZNX:TSX.V) all smiled. Now they know what an all cash offer would look like for their similar lead/zinc/silver project.

Most times it becomes difficult to measure one company against another since there are so many variables. In a comparison of ZincX to Arizona Mining, it’s actually fairly easy because their published 43-101 resources are so similar in nature.

Rock value

In the indicated 43-101 resource for Cardiac Creek of ZincX published in November of 2017, ZincX showed 22.7 million tons with a metal in the ground value of $295.15 per ton for a total of about $6.7 billion USD.

Rock value

The same table for the 43-101 resource in the inferred category for the Cardiac Creek deposit shows just over 7.5 million tons with a metal in the ground value of $246.87 and a total of about $1.86 billion USD.

Rock value

For Arizona Mining in the M&I category their most current 43-101 from January of this year shows 100,958,000 tons with a metal in the ground value of $257.65.

Rock value

In the inferred category the same 43-101 reported 43,069,000 tons with an in the ground value of $284.65 per ton.

Those numbers were easy to compare because they are measuring similar type metal deposits. The Indicated resource for ZincX is about 20% higher than the M&I resource for Arizona Mining. The Inferred 43-101 resource for Cardiac Creek of ZincX is about 20% lower than the Inferred numbers for the Taylor Deposit of Arizona Mining.

If you work out the numbers roughly given that we are working with tons and the USD values, for the Taylor Deposit of Arizona Mining we get a total in the ground value of just over $38 billion. Of course that isn’t their only project, they also post numbers for what they call the Central Deposit but here you have a problem of mixing apples and oranges. With almost 70 million tons of rock, the Central Deposit has great value but it’s really a manganese deposit with some zinc and silver added in. In any case, I worked up rough numbers and figured that the Central Deposit has an additional $30 billion worth of rock in the ground.

So for Arizona Mining we have a total of about $68 billion USD in an in the ground rough value and a total purchase price by South32 of $2.1 billion Canadian. Which is about $1.575 billion USD. So South32 is paying 2.31% of the rough metal in the ground value for Arizona Mining.

As I write, ZincX shares are selling for $0.35 CAD. That gives the company a market cap right now of $58.2 million CAD or $43.9 million USD. If South32 paid the right price for Arizona Mining (and it’s all in cash) and they paid 2.31% of the metal in the ground value, it’s a simple math problem to say that ZincX with a similar silver/lead/zinc project should be worth 2.31% of $8.56 billion USD or $197 million USD or $262 million CAD.

That makes ZincX very cheap. Cardiac Creek is 100% owned. Arizona Mining uses a figure of 3% for an average NSR. ZincX has no NSR. There are a whole bunch of differences between the two companies all of which are more favorable to ZincX.

ZincX just released a PEA on June 20th giving very interesting numbers. Shares in ZincX are up almost 50% in a week since the South32/Arizona Mining announcement. I think they are going to go a lot higher. I’m not the only person doing the math.

ZincX is an advertiser and naturally I am biased. Do your own due diligence. I have bought shares in the open market.

ZincX Resources
ZNX-V $0.35 (Jun 20, 2018)
CZXMF-OTCBB 167.2 million shares
ZincX Resources 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: ZincX Resources. ZincX Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by the author.

( Companies Mentioned: AZ:TSX,
S32:ASX,
ZNX:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/21/zincx-beats-arizona-mining.html

Exploration and Royalties Make Good Resource Companies

Source: Adrian Day for Streetwise Reports   06/21/2018

Sector expert Adrian Day looked at two ‘favorite’ junior explorers he considers ‘good buys at current levels.’

Lara Exploration Ltd. (LRA:TSX.V) (0.59) released some very strong results from channel sampling at a new polymetallic property in Peru. The Puituco Project returned 4.6% zinc, 4.9% lead and 27 grams per ton over 42.6 meters. These results make it more likely that Lara can execute a good earn-in agreement, more likely with a major company. Acquired at auction in late 2017, Puituco is surrounded by BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) property, while South32 Ltd. (S32:ASX; a major base metals company itself spun off from BHP) is nearby. One of the two would be an obvious candidate for any agreement; South32 has been very active in acquisitions and joint ventures.

Lara is particularly active in Brazil and Peru, though most of the recent news is from the former. In Peru, however, it now has 15 properties, including epithermal gold and polymetallic projects.

Two projects advance, one to production
Earlier, Lara announced additional drill results from its Planalto copper project in northern Brazil, which included another long intercept (211 meters) of copper mineralization, and the company said it was “very encouraged” by presence of massive chalcopryrite. It holds this property 100%, and decided to test drill before seeking a partner.

Lara also announced receipt of a mining license for its Maravaia copper project near Curionopolis in northern Brazil. The property has been optioned to a private Vancouver-based company, Tessarema, with Lara retaining a 5% carried interest and a 2% royalty. If Tessarema has not achieved commercial production by November, it must pay Lara an additional US$1 million.

Lots of activity with prospective big win in wings
Lara continues to await the decision on the legal case between Codelco (its partner) and Vale S.A. (VALE:NYSE) over the highly prospective Libertade property. A successful outcome here could be a company maker. Meanwhile, Lara has been very active in recent months, with several positive developments. The company has about $2 million cash and marketable securities, with several possible sources of revenue over the next or so, some more certain than others. But the company is not planning on raising additional funds at the current price level. With several highly prospective items on the boil, cash coming in, and only a CA$20 million market cap, Lara is a very strong buy here for an investor who can afford to be patient.

Well Positioned for the Commodity Bull Market

Altius Minerals Corp. (ALS:TSX.V) (12.95) reported modest increases in revenue, reflecting “slow and steady cyclical price rebounds as well as incremental volume increases,” according to CEO Brian Dalton.

Copper currently has the highest allocation of revenue, at 36%, with strong results from Yama’s Chapada Mine, where a new expansion has just been announced, foretelling a strong outlook. Thermal coal had a strong quarter, but the overall allocation to that commodity continues to decline, since Altius’ royalty is based on volume, while other royalties are based on price, and commodity prices generally improving, while potash—another big segment for Altius—has hit cyclical lows (according to Dalton).

Dalton commented that the mix of commodities “is not bad” relative to the size of the commodity markets overall, with a few major commodities, such as aluminum, difficult to purchase royalties on. But he emphasized that the company was more focused now on good quality assets than on tweaking the mix to ensure it precisely matches global markets.

Altius has also just launched a renewable energy business in joint venture with Great Bay Renewables, which lends the technical expertise in that sector.

Cash and assets to deal
Altius has $57 million in cash, with almost the same amount drawn on term debt and another $75 million drawn on the revolver (for a total of $128 million debt). It recently drew on its revolver for its recent potash acquisition, so total debt is higher than normal. Indeed, the company is in the process of renegotiating its debt. In addition, the company holds a portfolio of equities in mostly junior companies.

Down from $14.50 in April, with strong cash flows and a broad land portfolio, some joint ventured and more available for joint venture, Altius is also a good buy here.

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.”

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) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Lara Exploration and Altius Minerals. 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: Lara Exploration and Altius Minerals. 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 billboard sponsors of Streetwise Reports: None. 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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) 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 and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Lara Exploration and Altius Minerals, companies mentioned in this article.

( Companies Mentioned: ALS:TSX.V,
LRA:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/21/exploration-and-royalties-make-good-resource-companies.html

Gold’s Relative Strength Index Indicating a Bottom Is Here

Source: Michael J. Ballanger for Streetwise Reports   06/21/2018

Precious metals expert Michael Ballanger explains why he believes gold is bottoming.

Today’s missive is going to be brief as there are no need for words when you have the chart below indicating every major low in gold was accompanied by an RSI reading below 30. GLD (the physical gold ETF) is sporting a 27.46 RSI this morning and while we have seen readings lower than this at other bottoming periods, it is time to open a 25% position in the GLD July $120 calls at $1.40, where I was filled shortly after the New York opening. I am now attempting to add a second 25% tranche at $1.50 with the current market $1.54.

Silver is also finding support in the $16.20-16.30 range where I successfully built a position back in March when I was able to accumulate a large position in the SLV June $15 calls in the $0.50 range. Within days, silver screamed back above $17 and the SLV was in the mid $16s where profits were taken. We are once again close to the accumulation zone for silver but based upon RSI, gold is the buy.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report interviews 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 interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/21/golds-relative-strength-index-indicating-a-bottom-is-here.html

Royalty Company Acquires Silver Stream in Quebec

Source: Streetwise Reports   06/20/2018

A BMO Capital Markets report outlined the pending arrangement between the two entities.

In a June 18 research note, Andrew Kaip, an analyst with BMO Capital Markets, reported that Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) acquired a silver stream from Falco Resources on its Horne 5 project in Quebec for CA$180 million (CA$180M). “The silver stream has an internal rate of return of 14% at spot silver, which in our view is attractively priced relative to recent producing stream transactions in the range of 5–8%,” wrote Kaip.

Per the agreement, Osisko will pay CA$25M when the deal closes, followed by a series of amounts in stages as certain milestones are achieved. The company may increase the stream to 100% of Horne 5’s silver production with an optional CA$40M up front and a final CA$60M when Falco gets project financing.

BMO estimated that via the stream, 1.6 million ounces of silver would be delivered to Osisko annually for 18-plus years starting in 2021. “Osisko will pay a delivery charge of 20% of spot silver to a maximum of US$6 per ounce from a 5 kilometer area of interest,” Kaip indicated. At that rate, the stream has an NPV5% of US$90M.

The transaction going through is contingent upon whether or not Glencore wants to acquire the stream. Should it want to, it has 60 days to notify Falco of its intent.

Along with the silver stream, Osisko bought a CA$7M secured debenture from Falco that “will be converted into units of Falco (one share and a half warrant), contingent on approval of the conversion by disinterested shareholders,” Kaip explained.

Along with a “potential stream conversion at Falco,” Kaip noted that additional catalysts for Osisko include boosted metals deliveries from its Orion deal and further opportunities for streams, royalties and/or equity investments.

On Osisko, BMO has a Market Perform rating and a CA$15 per share target price. The latter reflects a greater than 20% return as the company is trading today at around CA$12.28 per share.

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

( Companies Mentioned: OR:TSX; OR:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/20/royalty-company-acquires-silver-stream-in-quebec.html

Gold Miner Notes Extension of Brucejack-Style Mineralization

Source: Streetwise Reports   06/20/2018

Drilling was completed on two holes at a site in British Columbia’s Golden Triangle.

Pretium Resources Inc. (PVG:TSX; PVG:NYSE) recently reported the results of underground exploration drilling east from the Valley of the Kings. Two holes over 1,500 meters in depth intersected Brucejack-style mineralization. Proximity to porphyry-style mineralization at depth was suggested by anomalous copper and molybdenum mineralization.

The drilling was conducted to test mineralization continuity between the Valley of the Kings and the Flow Dome. B

The presence of Brucejack-style mineralization was confirmed from the eastern boundary of the Valley of the Kings to below the Flow Dome Zone. Drilling in 2015 intersected high-grade gold in this patch of land 1,000 meters east of the Brucejack Mine. Veining, mineralization, and Brucejack-style alteration were intersected by oriented core drilling within the length of both drill holes. The drilling was also conducted to test the porphyry potential.

Hole VU-820 intersected:

  • 1.71 grams of gold per tonne over 90.21 meters, including 5.12 grams of gold per tonne over 1.00 meter, 6.43 over 4.00 meters, 58.70 over 1.00 meter, and 6.06 over 1.00 meters;
  • 46.00 grams of gold per tonne over 1.00 meter;

Hole VU-911 intersected:

  • 157.00 grams of gold per tonne over 0.50 meters, visible gold was observed;
  • 142.00 grams of gold per tonne over 1.50 meters;
  • 76.30 grams of gold per tonne over 0.50 meters, visible gold was observed;
  • 33.60 grams of gold per tonne over 0.50 meters, visible gold was observed.

In drill hole VU-911, the zone of anomalous mineralization extends at depths between 1,400 meters and 1,485 meters. In drill hole VU-820, it extends more widely at depths between 1260 meters to 1585 meters.

Pretium Resources is headquartered in Vancouver, Canada, and is ramping up production at the high-grade underground Brucejack mine in British Columbia.

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

( Companies Mentioned: PVG:TSX; PVG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/20/gold-miner-notes-extension-of-brucejack-style-mineralization.html

Jack Chan Unwraps Trend Reversal and Long Consolidation

Source: Streetwise Reports   06/19/2018

Technical analyst Jack Chan charts the latest moves—and an ‘agonizingly long consolidation’—in the gold and silver markets.


Our proprietary cycle indicator is up.


The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.


The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders.


Speculation is in bull market values.


Our ratio between gold and gold stocks has been effective in identifying the price action in both bull and bear markets.

– Since breaking down in 2011, the sector has been in a bear market with periods of consolidations before the trend resumed. Untrained eyes would jump at those consolidations as the beginning of a bull market.
– The trend reversed in early 2016 with a breakout, followed by an agonizingly long consolidation so far.


Silver is on a long-term buy signal.


SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.


Speculation spiked up this week along with OI; should see a pullback.

Summary
The precious metals sector is on a long-term buy signal. Short term is on mixed signals. The cycle is up. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

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) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
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.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/06/19/jack-chan-unwraps-trend-reversal-and-long-consolidation.html