All posts by Bianka Weaver

About Bianka Weaver

There are a lot of ways to invest your hard-earned money that are very successful and could turn reasonable amount of profit over time. One of them is investing through gold, silver and other precious metals. Over the years, these precious metals has grown their value, which makes it one of the best options for long term investment.

Jack Chan’s Weekly Precious Metals Sector Update

Source: Jack Chan for The Gold Reportc   05/27/2017

Technical analyst Jack Chan charts the latest moves in the gold and silver markets, noting COT data supports higher silver prices.

Our proprietary cycle indicator is down.

chanhui1526
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.

chan2526
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.

chanhui3526
The consolidation continues.

chansilver526
Silver is on a long-term buy signal.

chanslv526
SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.

I chansilver3526
COT data is supportive for overall higher prices.

Summary
The precious metals sector is on a major buy signal. The cycle is down, barely. The multimonth consolidation continues.

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/pub/na/17469

What Is Chen Buying? Gold, Cobalt, Phosphate and Biotech. . .

Source: Chen Lin for Streetwise Reports   05/25/2017

With the market in flux, Chen Lin of the popular newsletter What Is Chen Buying?, What Is Chen Selling? is hedging his bets with investments in a variety of companies in different sectors.

The market is taking one step back and two steps forward. The momentum is still carrying the market higher, though the internals started to show signs of weakness. The gold market is, in general, moving opposite to the market. If the market continues to rally, gold will come off. I believe gold will likely be range-bound in the near term, until the traditional gold run in the fall. There may be swing trading opportunities while we are waiting.

I have been focusing on companies with strong balance sheets and good margins, like OceanaGold Corp. (OGC:TSX; OGC:ASX). Recently it bounced every time it got close to $CA4/share. The grand opening of Haile mine is schedule in mid-June.

I have been hearing from investors, who have been chattering that the recent high-end real estate markets from New York to San Francisco have weakened significantly, likely due to the tight currency control in China. A lot of Chinese buyers were not able to get renminbi (RMB) out of China to complete their purchases. I also heard a cash crunch appeared in a few Chinese companies. LeTV is laying off 85% of its U.S. workforce this week, for example. LeTV has its own problems and can’t be used to generalize about other Chinese companies. But these are warning signs and I always pay attention to those. Moody downgraded China this week to A1 as well.

I would like to call attention to a few juniors. Scientific Metals Corp. (STM:TSX.V) changed its name to US Cobalt (USCO.TSX), make it a new play in the hot cobalt market. Cobalt stocks showed signs of recovery recently. The other two, eCobalt Solutions Inc. (ECS:TSX) and Clean TeQ Holdings Limited (CLQ:ASX), advanced recently.

Camino Minerals Corp. (COR:TSX.V) started to drill the big targets. The company raised money recently. Per my understanding, management is very excited about the upcoming drill program. The stock retracted about 50%; it now has built a good base and is ready to move up.

There are two new names that I had positions in, or having been buying lately. Both have limited liquidity so use caution if you decided to buy. Arianne Phosphate Inc. (DAN:TSX.V; DRRSF:OTCBB; JE9N:FSE) is a phosphate play in Quebec. I got the tips from my partner Jay Taylor last week. The company has a 21% IRR and its project has a 26-year mine life and is fully permitted. Recently, shipments of phosphate from Morocco were seized by the international court. This could create a catalyst, forcing majors to invest in phosphate projects in the safe geopolitical region. DAN is on top of the list.

I had a discussion with Prize Mining Corp. (PRZ:TSX-V) CEO Feisal Somji yesterday. If you recall, Mr. Somji built and sold Rio Alto during the recent downturn of the market. PRZ is his new baby, and it is a new kid in town for junior investors. PRZ has consolidated the district of Daylight in British Columbia for the first time. The company is going to drill the high-grade targets this summer. According to the historical mining results, the chance of high-grade discoveries (30-100 grams/ton gold over multiple meters) is high. Going forward, Mr. Somji plans to do “bulk sampling” of the high-grade material starting in 2018, and send the samples to the Kinross mill nearby, which is running out of ore. This way he will be able to generate good cash flow to support building a mine there.

Biotechs are doing very well lately, “melting up” with the general market. I picked up some Sarepta Therapeutics Inc. (SRPT:NASDAQ) yesterday when it is touching the 50 DMA. I hope to flip it when it rises to higher range 35-40 area. If it can’t hold 30 I may stop out.

Chen Lin manages a family fund and writes about it in the popular stock newsletter What Is Chen Buying? What Is Chen Selling?, published and distributed by Taylor Hard Money Advisors, Inc. While a doctoral candidate in aeronautical engineering at Princeton, Lin found his investment strategies were so profitable that he put his Ph.D. on the back burner. He employs a value-oriented approach and often demonstrates excellent market timing due to his exceptional technical analysis.

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) Chen Lin: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: OceanaGold Corp., Sarepta Therapeutics Inc., Prize Mining Corp., Arianne Phosphate Inc., Camino Minerals Corp., Scientific Metals Corp. (US Cobalt), eCobalt Solutions Inc., Clean TeQ Holdings Limited. 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. I determined which companies would be included in this article based on my research and understanding of the sector.
2) Sarepta Therapeutics Inc. 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) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their 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 shares of Scientific Metals (US Cobalt) and Prize Mining, companies mentioned in this article.

( Companies Mentioned: DAN:TSX.V; DRRSF:OTCBB; JE9N:FSE,
COR:TSX.V,
CLQ:ASX,
ECS,
OGC:TSX; OGC:ASX,
PRZ:TSX-V,
SRPT:NASDAQ,
STM:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17467

The Zinc Race Is Heating Up and One Company Just Made a Big Move Forward

Source: The Gold Report   05/25/2017

Trevali Mining added new weapons to its zinc arsenal by acquiring interest in Glencore’s African zinc mines.

In a May 18 press release Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) reported that shareholders voted in favor of the company entering into an agreement to acquire interest in multiple Glencore International Plc (GLEN:LSE) zinc mines. The agreement included “an 80.08-percent interest in the Rosh Pinah mine in Namibia, a 90-percent interest in the Perkoa mine in Burkina Faso, an effective 39.24-percent interest in the Gergarub project in Namibia, an option to acquire a 100-percent interest in the Heath Steele property in Canada, and certain related exploration properties and assets.”

Stefan Ioannou with Cormark Securities stated in a May 19 report that the US$400M Glencore “acquisition will boost Trevali’s attributable annualized zinc production profile by 150% with quality assets, to +385 MMlb.” Ioannou also pointed out that once the acquisition is finalized, “Trevali will be the eighth-largest zinc producer globally and the most leveraged producer with respect to zinc exposure.”

Ioannou concluded that “with zinc production from four mines expected to ramp up to +450 per annum by 2020, we believe the company is poised to become a (the) marquee mid-tier, pure-play zinc producer in a market facing a significant near- to medium-term supply issue. Hence, we would not be [surprised] to see the company garner a premium market valuation on the back of higher zinc pricing/improving sentiment.”

Ioanou has rated Trevali a top pick with a target price of $1.85 per share.

In a May 17 report, Paradigm Capital’s James Woolley stated, “Trevali’s growth story is coming together at a most advantageous time in the market as increasing supply drive zinc prices higher. Trevali’s two existing mines are now operating well and generating positive free cash flow, while the recently announced acquisition agreement to purchase two additional mines from Glencore will more than double the production base and elevate Trevali to be the ‘go-to’ name for investors seeking zinc exposure.”

Calling the Glencore transaction “transformative,” Woolley concluded that it “will catapult Trevali to be the largest pure-play zinc producer globally, cementing it as the best means for investors to gain exposure to the zinc market. We maintain our C$2.00 target price (based on a 1.25x NAV multiple) and Buy recommendation.”

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) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsor 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/17466

An Action-Packed Exploration Year for These Three Companies

Source: Thibaut Lepouttre for The Gold Report   05/25/2017

As the first half of 2017 comes to a close, Thibaut Lepouttre, editor of Caesars Report, takes a close look at three companies with hot prospects for a productive second half.

As we prepare to wrap up the first semester of the year, it’s always interesting to have a look at some companies owning projects that might very well become the next “hot story.”

In Mexico, Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) continues to advance its Cerro Las Minitas property in Durango State. As a brief reminder, this project already hosts almost 114 million silver-equivalent ounces in just 10 million tonnes of rock at an average grade of in excess of 10 ounces silver-equivalent per tonne.

As Cerro Las Minitas (CLM) is a polymetallic deposit, the silver grade is actually just a minor part of the total equivalent grade, as CLM truly is a zinc-lead project with a nice silver credit. Some investors might see this as a negative, but it actually is a great way to gain exposure to a wide variety of metals, as CLM contains silver, gold, lead, zinc and copper.

The most intriguing part of the project very likely is the fact there still is plenty of potential to increase the resource estimate after having discovered no less than three new polymetallic zones on the property, while the Mina La Bocona target is showing very impressive gold results.

Of all the prospective zones, the underground Blind Shoulder target is by far the most exciting prospect.

Last year, Southern Silver identified a “zone of interest” under the currently known resource estimate. Named Blind Shoulder, this zone seemed to be pretty large, as the surface area of the mineralization seemed to be 600 meters by 400 meters. Southern Silver decided to target this area with a 10,000-meter drill program, of which approximately 4,300 meters have already been completed.

thibaut15-25

This first part of the drill program has already been successful in confirming the mineralization over a 350-meter by 300-meter zone, with intervals of 10 meters (true width) containing 186 G/t Ag eq and 9 meters of almost 20 ounces of silver (not equivalent!) per tonne of rock in the most recent exploration update.

Indeed, impressive drill results, and the exceptionally high silver grade is very intriguing. This silver-rich zone will also be the main focus of the next few drill holes, and Southern Silver is currently raising CA$5M at $0.40/share to top up its treasury and fund its 40% share of the exploration expenses. Electrum, Southern Silver’s largest shareholder with a 36% stake, has confirmed it will participate pro-rata, and will maintain its equity interest at 36%.

The majority of the funds will be spent on additional drilling, but we would expect Southern Silver to do some more metallurgical test work as well, in an attempt to boost the recovery rates.

According to the company’s met work, which was completed in 2015, 82% of the silver, 12% of the zinc and 86% of the lead were recovered in a rough lead concentrate, which was “upgradeable” to a concentrate with a lead content of 71.1%, which is absolutely great.

However, some more work might be needed on the zinc concentrate. While an initial recovery rate of 79% is fine, it resulted in a zinc concentrate with an average zinc grade of just 39.5%, which is way below the minimum requirement of zinc smelters. Southern Silver’s preliminary test work was able to upgrade the concentrate to a 49.7% zinc grade (which does meet the smelter requirements) at a total recovery rate of 73-75%. As those 2015 tests were just the very first steps, I’m convinced the recovery rates will improve, boosting the economics.

The next catalyst for Southern Silver will be the completion of an updated resource estimate, which will be released in the third quarter of this year.

This should result in a meaningful increase of the total resource at Cerro Las Minitas, and I wouldn’t be surprised to see Southern Silver increase its exploration target to 20 million tonnes containing 80-120 g/t silver and 4-8% zinc-lead.

Elsewhere in the lead-zinc space, Vendetta Mining Corp. (VTT.V) is planning to release a resource update on its Pegmont lead-zinc project in Australia within the next few weeks. The company has made tremendous progress in the past 18 months as it has now successfully applied the Broken Hill geological model on the deposit. Rather than having just one lead-dominant lens, Pegmont now seems to be a multilens project with a zinc grade that should be increasing from now on.

The upcoming resource update will very likely contain 7-8 million tonnes of rock at a lead-zinc grade of 8-9%, and should be seen as an interim update before this year’s 12,000-meter drill program designed to increase the tonnage before commissioning a preliminary economic assessment, which will be published by early 2018.

Farther north, Comstock Metals Ltd. (CSL:TSX.V) is gearing up for what could be a busy second half of the year. No resource update is expected in the second semester, but Comstock will very likely start another drill program on its Saskatchewan-based Preview SW gold project.

This project already has a compliant resource estimate containing in excess of 425,000 ounces of gold at an average grade of just over 1.6 g/t (which is really good for an open pit project as it is very shallow and located close to surface), but it looks like there’s much more to be found there.

The company’s winter drill program consisted of almost 1,800 meters in eight drill holes, of which the assay results of the first three holes have already been released. These holes were drilled at the Preview North zone, and with assay results of 5 meters at 10.3 g/t gold, 11 meters at 1.28 g/t gold and 18 meters at 1.03 g/t gold, it’s pretty clear the company is onto something here. What makes these drill results even more important is the fact the North zone is located almost 3 kilometers away from the Preview SW deposit, which hosts the 425,000 open-pittable ounces.

This is a great testament to the prospectivity of the land package, as no less than six known gold zones have been identified on Comstock’s property along the structural trend where the current resource is located. According to CEO David Terry, the company is designing a summer exploration program, and I expect to see an announcement on this summer program shortly.

thibaut25-25

Not only is Comstock planning an aggressive drill program, it might also have another look at the metallurgical test work for the Preview SW mineralization. Earlier met work confirmed an average gold recovery rate of 90-93%, which is excellent by any standard (keep in mind the average grade of the open pit is also high compared to similar projects). It’s worth figuring out if there’s any possibility to add a few percent points to the recovery rate. After all, a 1% increase in the recovery rate will result in the production of approximately 4,000 additional ounces with no increase in operating expenses. This would add US$5 million to the bottom line on a pre-tax basis.

Even though I particularly like the Preview SW project, we shouldn’t forget about the company’s asset in Canada’s Yukon Territory. Comstock’s QV project is located right across the Yukon River from Kinross Gold Corp.’s (K:TSX; KGC:NYSE) White Gold project, which was recently vended into White Gold Corp. to create a major Yukon-focused gold exploration company. This will ignite the area’s activity, and both Kinross and Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) are 19.9% shareholders in White Gold Corp. The area becomes very interesting in terms of consolidation with big players engaged.

The QV project hasn’t had the same amount of drilling as the Preview SW project in Saskatchewan, but previous drill programs revealing 90 meters at 2.34 g/t gold, 56 meters of 1.28 g/t gold and 82 meters containing 1.08 g/t gold confirm Comstock Metals is drilling in the right spot. One of the main priorities will be to follow up on the western and eastern part of the VG gold zone, which is just one of the four high-priority exploration targets. Comstock Metals has used RAB drilling as its preferred drill method to reduce its exploration expenses per drilled meter, but will have to switch to RC and diamond drilling if it wants to increase its in-pit Inferred resource estimate of 230,000 ounces gold at a grade of 1.65 g/t.

With in excess of 650,000 NI43-101-compliant ounces of gold Indicated and Inferred in the ground, and the potential to find a multiple of that, Comstock Metals should be trading much higher than the CA$10 million it’s trading at today.

Thibaut Lepouttre is the editor of Caesars Report, a newsletter and mining portal based in Belgium that covers several junior mining companies with a special focus on precious metals and base metals. Lepouttre has a Bachelor of Law degree and two economics masters degrees that have forged his analytical approach to the mining sector. Considered a number cruncher, Lepouttre focuses on the valuations of companies and is consistently on the lookout for the next undervalued mining company.

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) Thibaut Lepouttre: I, or members of my immediate household or family, hold long positions in the following companies mentioned in this article: Vendetta Mining and Comstock Metals. 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 business relationship with the following companies mentioned in this article: Vendetta Mining, Comstock Metals. 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: Southern Silver Exploration 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) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their 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 shares of Comstock Metals, a company mentioned in this article.

Images provided by Thibaut Lepouttre.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17465

Castle Silver Should be Called Castle Cobalt

Source: Bob Moriarty for The Gold Report   05/23/2017

With the price of cobalt increasing, Bob Moriarty of 321 Gold profiles Castle Silver, which has turned its focus to cobalt.

Lately I have read dozens of pieces speculating on the timing of a transition of automobiles from human-driven oil based combustion engine-powered to computer-controlled battery-powered machines. We know it will happen and the guesses as to timing are getting closer and closer. What should be obvious is that one of the most important technological advances in history is taking place right under our noses.

When the gasoline-powered automobiles first came out few could recognize the impact they would have on the world. While Ford and Lincoln and Rolls made money, buggy-whip manufacturers went out of business. It’s called creative destruction. Ross Perot used to say that every business should burn itself down once a year or so. There is some truth to that; every business needs to reinvent itself on a regular basis.

For now, lithium batteries seem to be the power source in the highest demand. That, too, shall change no doubt. The inputs to lithium batteries include naturally lithium, graphite and in most designs of batteries, cobalt.

Castle Silver Resources Inc. (CSR:TSX.V) is the spawn of a company that used to be known as Gold Bullion Development, now known as Granada Gold Mine. In 2010 Gold Bullion Development made a significant discovery at the Granada Mine and that project became their primary focus. They spun off the Castle Silver Mine and all their non-gold assets into a wholly owned sub in 2011. In 2012 they bought the Beaver and Violet silver/cobalt properties and put them into the subsidiary.

In 2015 Gold Bullion Development completed an RTO and took Castle Silver public by taking over a public vehicle. The company has about 39 million shares outstanding and 53 million on a fully diluted basis.

The Castle Silver mine began production in 1917 and produced 22 million ounces of silver and 300,000 pounds of cobalt until final production ceased in 1989 due to low prices for silver and cobalt. During most of that time, cobalt was regarded as a negative product and was only produced because they wanted the high-grade silver.

How thing change. In just over a year the price of cobalt moved from a record low price of $9.82 a pound in February of 2016 to a high of $25.40 a pound in April of 2017. It’s important to understand that while the price of cobalt, lithium and graphite have gone up, the overall cost of lithium batteries has declined due to manufacturing cost efficiencies. Reports show that electric vehicle batteries have declined by 80% in six years.

The best place to ever find a deposit is said to be in the shadow of an old head frame. With the Castle Silver Mine that seems to be true. While past mining focused on the production of silver, many of the adits contain visible cobalt veins and at least a bulk sample for testing purposes would be easy to mine and permit.

Cobalt is primarily produced as a by-product of nickel and copper production, some 94% of the total. So no one is going to expand their copper or nickel mine just to get more cobalt at any price. About 54% of today’s cobalt comes from the DRC with all the attendant legal and social issues. Battery manufacturers want legally sourced and socially responsible cobalt in today’s “Green” world.

Castle Silver intends to work on advancing a drill hole plan in mid-2017 and has planned a major drill program for the fall of 2017. In addition, Castle owns the Beaver silver/cobalt mine and the Violet silver/cobalt mine in the Cobalt Mining Camp of Ontario. The company plans on a program to test tailings and dumps from the Beaver and Violet Mines to determine potential recovery of material left from prior mining operations.

Castle Silver is not some one trick pony. They have an interesting process up their sleeve called Re-2OX. It’s a 100% owned hydro-metallurgical process developed in conjunction with the National Research Council (NRC) of Canada. It’s a way of treating various feeds chemically for high recovery and the output can be specific high-purity powders for client specific requirements such as lithium battery manufacturers.

The company is still very cheap compared to their peers. Over the next few months’ investors can expect a variety of news developments as progress is made. The company will be drilling, doing bulk samples and testing their cobalt feed with the Re-2OX process. With about 13 million warrants outstanding with prices between $0.10 and $0.20 the company should be able to self-finance from here. The $0.20 warrants can be accelerated should the price of the stock go over $0.30 for a ten-day consecutive period and that would bring in about $1.25 million in cash.

I am a big fan of solar and wind power and I think I see the massive changes coming. When I was contacted with the story of Castle Silver I went out and bought some shares in the open market and I have participated in the latest private placement. Naturally I am biased. Castle Silver is an advertiser.

The company is excellent at communication and any potential investor should peruse their company presentation. Do your own due diligence.

Castle Silver Resources
CSR-V $.24 (May 23, 2017)
TAKRF-OTCBB 38.9 million shares
Castle Silver 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.

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

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Castle Silver. Castle Silver 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 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.

( Companies Mentioned: CSR:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17462

Disputes, Higher Dividends and New Study: Mostly Good News 

Source: Adrian Day for The Gold Report   05/23/2017

Money manager Adrian Day reviews news from several companies, mostly positive developments, and notes that some stocks are good buys at current levels. 

Freeport-McMoRan Inc. (FCX:NYSE, 11.83) continues to struggle on various fronts in Indonesia. Just as it was ramping up to restart operations and resume exports under a temporary permit, the main union at its Grasberg mine went on strike. Separately, a little optimism has entered discussions with the government, reflected in its granting of the permit. The government wants Freeport to sell a majority stake in its Grasberg mine. It also wants to abrogate its long-term “contract of work” with Freeport, and the company is seeking legal and fiscal guarantees in exchange. Meanwhile, the government is sticking to its demand that Freeport build a second (unnecessary) local smelter.

Clearly, the stock is volatile and there is a risk while this dispute remains unresolved. Nonetheless, we think Freeport can be bought here (or sell under-the-market puts).

Gladstone raises payout
Gladstone Investment Corp. (GAIN:NASDAQ, 9.10, 8.4%) has increased its monthly dividend (from an annual 75 cents to 77 cents) and announced it would start paying supplemental distributions twice a year, with the first one, of 6 cents a share, in June. The expected extra distributions—subject to prevailing conditions—will be paid from undistributed capital gains. Thus, the company can avoid paying tax on the net gains in the portfolio, even though it will have to raise new equity (as it did earlier in the month) to make new investments. Net-net, though, at prevailing prices and rates, it’s a win for shareholders.

The net asset value (NAV) also increased again, from $8.82 per share to $9.95 on the quarter, meaning the stock is trading again at a discount rather than previous unusual premium. With the NAV increase, the regular dividend covered by NII, and the new bonus distributions, GAIN is a strong hold, and we will look for opportunities to buy more.

New acquisition won’t help in short term
Goldcorp Inc. (G:TSX; GG:NYSE, 14.05) has underperformed in recent months. Its quarterly results offered promise, beating expectations, on improved operations (including at the two major new mines, Cerro Negro and Eleonore); generally lower costs; and higher profits.

The major development however has been its pending entry into large but difficult undeveloped projects in the high Andes. In a series of somewhat complicated transactions, it is purchasing Exeter’s Caspiche and Kinross’ share of the Barrick-controlled, feasibility-level Cerro Casale, with both projects going into a single joint-venture with Barrick. Goldcorp is paying $260 million up front, with various deferred and contingency payments. No doubt the combination of the projects increases the potential to reduce cost, but these projects have been delineated and ready to proceed for years. Barrick paid $800 million for 50% of Cerro Casale in 2007, and another $474 million for another 25% in 2010, yet no progress has been made in developing the project nor any timeline announced.

In making the purchase, Goldcorp’s CEO David Garofalo admitted “it (would) be a long time before we put a shovel in the ground on these properties.” I question why they are getting into such a difficult project. We are holding, but not buying, GG.

New study indicates robust project
Almaden Minerals Ltd. (AMM:TSX; AAU:NYSE, 1.31) announced, as expected, its prefeasibility study for its Ixtac deposit in Mexico. The initial capex is estimated to be higher than projected in December 2015’s preliminary economic assessment ($117 million up from $100 million). But otherwise, the new mine plan improves the economics considerably.

Payback of initial capital is shorter (2.2 years, down from 2.6 years), with a much higher after-tax internal rate of return of 41%, up from 30%. Average production for the first nine years will be about 88,000 ounces of gold, and nearly 5.5 million ounces of silver, for life-of-mine production of over 1 million ounces of gold and 70 million of silver (up from 714,000 and 49 million respectively).

The revised numbers still show a very low initial capex (Almaden has already purchased a used mill) and very robust project. The company is now developing the project with permitting underway, as well as continued drilling of portions of the deposit that remain open, and new targets, as it moves towards a full feasibility by Q1 2018.

Silver miner to buy?
We would not be surprised to see an offer for the company, perhaps once permitting is underway or the feasibility completed. With about equal contribution from gold and silver, the project is particularly attractive to silver mining companies, which are having difficulty finding primary silver deposits. (See below.) A new $15 million equity raise puts the company in a strong negotiating position. Almaden is a buy at the current level.

Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE, 21.34) is the new name for Silver Wheaton, a reflection of the fact that the majority of its revenues no longer come from silver. (Similarly, Silver Standard is changing its name to SSR Mining.)

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: Gladstone Investment. 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: Gladstone Investment, Wheaton Precious Metals, Almaden Minerals, Goldcorp, Freeport McMoRan. 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) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their 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 shares of Almaden Minerals, a company mentioned in this article.

( Companies Mentioned: AMM:TSX; AAU:NYSE,
FCX:NYSE,
GAIN: NASDAQ,
G:TSX; GG:NYSE,
WPM:TSX; WPM:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17460

In Times of Rate Hikes, Industrial Metals Rise Fastest

Source: Tom Beck for The Gold Report   05/22/2017

Tom Beck, senior editor of Portfolio Wealth Global, says in times of rate hikes, industrial metals rise fastest, and in today’s world, the type of metals in highest demand by China are going to rise the most.

For close to 35 years, we’ve seen a tremendous amount of changes in our world: mobile phones, now turning into smartphones, the Internet, which brought entire industries down and birthed new ones, a tech bubble, a real estate crash, QEs, wars, pandemics, regime changes and a million other variables.

There aren’t many constants in the world of investing, and certainly not many things that rise in value like clockwork. One thing has held true since 1984, and I’m betting it will continue creating millionaires and funding college tuitions for many students whose parents wisely went LONG this trade and never doubted themselves.

Gain

I’d like to make sure you know where Portfolio Wealth Global sees the most upside in this commodities cycle.

The Fed is in a tightening period. The reason is they are targeting 2% inflation—historically, low to moderate levels have resulted in the highest equity returns.

High inflation rates distort confidence, slow commerce, and shrink consumer spending. No one wants that.

In times of rate hikes, industrial metals rise fastest, and in today’s world, the type of metals in highest demand by China are going to rise the most.

Major Commodity Futures

Silver is one metal that’s poised to move up—and potentially even double.

Zinc is the only commodity in the world that is trading for less than half of what it did in 1980, and it always outperforms all others, especially when it’s experiencing supply shortages.

Zinc Balance

One mining mogul, Keith Neumeyer, has positioned his personal holdings and the companies he operates right at the center of these two minerals, and in 30 years of resource entrepreneurship, he has never failed.

He is a close contact of Portfolio Wealth Global, and beginning in 1984, he has been in a personal bull market—his net worth and the companies he has built and backed have been absolute market winners.

Tom Beck is senior editor of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he’s officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers’ net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he’s invested in over a dozen countries, including real estate.

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

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17459