Category Archives: Precious Metals Investing

A Diamond Play with Development, Discovery Potential

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

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

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

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

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

DIAMOND POWER PLAYER

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

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

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Eira Thomas remains involved in the Canadian diamond world.

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

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

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

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

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

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

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

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

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

EXPLORATION DEFICIT

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

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

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

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Argyle diamond mine, Australia

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

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

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

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

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

RISK AND OPPORTUNITY

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

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

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

A FANCY EDGE

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

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

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

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

COLORED CARATS

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

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

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

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

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

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

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

DISCOVERY POTENTIAL

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

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

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

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

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

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

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

Disclosure:
1) James Kwantes owns shares of North Arrow Minerals. North Arrow is one of three company sponsors of Resource Opportunities, helping keep subscription prices low for the subscriber-supported newsletter. North Arrow Minerals is a high-risk junior exploration company. This article is for informational purposes only and all investors need to do their own research and due diligence.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldcorp, a company mentioned in this article.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The model and partnership are simple as HIVE Technologies:

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

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

/Gantz4_091817.png

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

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

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

/Gantz5_091817.png

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

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

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

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

Disclosures:
1) Lior Gantz: I, or members of my immediate household or family, own shares of the following companies or cryptocurrencies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: None.
HIVE Technologies has a marketing agreement with Wealth Research Group. My company has a financial relationship with the following companies referred to in this article: HIVE Technologies. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts and images courtesy of the author.

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

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

Jack Chan’s Weekly Precious Metals Update

Source: The Gold Report   09/17/2017

Technical analyst Jack Chan charts the latest moves in the gold and silver markets./chancover_091717.png

Our proprietary cycle indicator is up.

Chan1_091717.png

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.

/chan2_091717.png

Gold sector is on a short-term buy signal.

Short-term signals can last for days and weeks, and are more suitable for traders.

/chan3_091717.png

Speculation favors overall higher gold prices.

chan4_091717.png

$HUI pulled back from resistance this week.

/chan5_091717.png

Silver is on a long-term buy signal.

/chan6_091717.png

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

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Speculation favors overall higher silver prices.

Summary

Precious metals sector is on major buy signal.

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/pub/na/17708

Global Equity Markets: Welfare Checks for the Middle Class

Source: Streetwise Reports   09/14/2017

Precious metals expert Michael Ballanger discusses equity markets and their relationship to gold.

When I was first hired by the Canadian
Securities Industry in the spring of 1977, something like 4% of all North
American households were holding common stock in public companies either
directly or indirectly through pension funds or profit-sharing plans. There was
a very small section in most newspapers that published data for the Toronto
Stock Exchange (and an even smaller section for the Vancouver and Alberta
exchanges) and rarely, if ever, did one overhear conversations about stocks on
either the subway or commuter trains. In fact, when I began to "cold call"
people to solicit their business that summer, the only thing known to the
average adult was Canada Savings Bonds whereas the notion of placing
hard-earned savings into a "high-risk venture" like stocks was almost
unheard of. Well, here we are some 40 years later and after three market
crashes and several trillion dollars of credit creation and money-printing, the
pendulum has swung to the sanguine figure of 47%. Nearly half of all American
citizens in one form or the other are stockholders thanks largely to the spectacular
marketing efforts of Wall Street, Bay Street and the City of London.
Furthermore, I can’t go to a function these days where the topic of stocks
and/or housing isn’t mentioned.

Closely related to this concept of "public
ownership of common stock" is a secondary concept made popular by former
Treasury Secretary Larry Summers known as "Behavioral Economics,"
whereby influences other than demand and supply affect consumer behavior. Also
associated with this is a phenomenon known as the "Wealth Effect,"
where rising or falling stock prices can positively or negatively impact
spending patterns throughout the economy. The creation of "The Working
Group on Capital Markets" after the Crash of 1987 put a safety net beneath
stock ownership after it was determined by the Washington elitists that
crashing stocks were decidedly "un-American" and when coupled with
the decisively dour "negative wealth effect," the entire concept of
free market capitalism being allowed to "cleanse itself" via the
unimpeded marketplace was thrown to the proverbial wolves.

The participation by government into public
markets accelerated into the 1990s and was evident during the Asian crisis and
the LTCM event in the latter part of the decade, but the price managers really
stepped it up after the DotCom meltdown in 2001 and, of course, after 9/11. To
say that markets were "saved" through government intervention in the
period leading up to 2008 would be somewhat disingenouous when compared to the
outright bailouts handed to the U.S. banking system in 2008. And, like the gift
that keeps on giving, the behavior of the S&P 500 since the March 5, 2009,
lows under 700 has been nothing short of miraculous.

As I was sitting in my den last evening
sipping a fine Italian Pinot Grigio, it occurred to me that the term "moral
hazard" has become particularly relevant in the period of time that has
passed SINCE the "Great Financial Crisis" because, as the chart below
reveals, EVERY SINGLE DOWNTURN in stocks has been rejected by way of mysterious
(or not-so-mysterious) interventions usually in the wee hours of North American
mornings when human traders are unable (or unwilling) to react. Through the
Larry Summers-Robert Rubin initiation of consumer behavior "shaping"
by way of incessant interventions, the ever-evolving and emerging wave of
millennial traders or GEN-X portfolio managers have all been re-programmed and
are now accustomed to a "risk-free return," formerly the domain of
government bonds but now the sole realm of stocks.

Because of this Orwellian institutionalized
mechanism, stocks have replaced bonds and represent a gift to the middle
classes. With 47% of households now in possession of stocks, the government
need only ensure that prices continue to rise, thus eliminating the need to
buttress social security or take action to force corporations to bolster
underfunded pension liability. Ma and Pa Jones need only to put their life
savings into a basket of common stocks and wait until either the Bank of Japan
or the Swiss National Bank swoop in to insure positive returns.

This is a form of social welfare of the
highest order and since it has been a highly successful strategy for the
average investor since March of 2009, that is eight and one-half years of
brainwashing, the nature of which can now NEVER be reversed. You see, IF the
order goes out to discontinue interventions, stocks will drop from the weight
of overvaluation, over-ownership, and outright gravity as markets have had
3,100 days without a correction of 20% or more. With only two corrections (17%
in 2011 and 17% in 2015-16) having been witnessed in the time since The Great
Financial Bailout, the psyche of investors is so engrained with the certainty
of stock profits that the negative wealth effect triggered by a reversal of
fortune would (and will) have enormous impact on consumer behavior and economic
performance.

For those investment gurus like Ray Dalio and
Jeff Gundlach who are calling for a stock market decline, there are millions of
investors that are of a differing opinion. As Kyle Bass said the other day when
queried about his short position on the Chinese currency, "the toughest
part is knowing you are going to be right but just not YET." The stock
markets around the world are being propped up every hour of every day to
promulgate the notion that "Stocks for the Long-Term" is a
government-sponsored life plan and infinitely preferable to old-age pensions or
Social Security. Of course, we know this to be false (just like the Chinese "$2
billion in equity collateralizing $40 billion in debt") and we just KNOW
it has to end but the big question is "when" with failure to
determine that evoking a particularly acidic financial outcome.

I am a silver bull and a Bitcoin bear and
tweeted that out a couple of weeks ago as a possible paired trade for the
especially brave and needlessly wealthy, but while it was more in jest than it
was in earnest, it actually was the near-top in Bitcoin and would have been a
superb trade if taken. ("The sheer majesty of the "Short Bitcoin/Long
Dec silver futures" is at once both mind-boggling and dangerousÑas are ALL
great trades.") The bigger point is that the cryptocurrency madness has
now been summarily slogged by Chinese regulators causing a fairly steep drop,
but more importantly, JPM’s resident banker-of-last-resort Jamie Diamond called
it a "fraud." If Kyle Bass or Ray Dalio or Jeff Gundlach trashed
Bitcoin, I would yawn but Jamie Dimon is to world finance what Al Capone was to
bootleg liquorÑthey both ran their industries and no one messed with them while
they were on top. I don’t ever want to be holding the other side of a Jamie
Dimon trade because he doesn’t lose. Oh sure, the London Whale trade cost them
$2 billion but that is a mere pimple on an elephant as compared to the stakes
back in 2008 when bad trades several multiples of the Whale were "eaten"
by the U.S. Fed. The significance of the Bitcoin selloff is that cryptocurrency
competition has dulled demand for the REAL safe havens such as gold and silver,
and if you remove that by way of a concerted, coordinated attack (not unlike
the gold/silver raids of April 2014), the demand for non-fiat havens creates
default buying for precious metals.

So, with a lot of the moving parts in the
markets soon to be in motion, the tried-and-true position is to stay with the
gold-silver-seasonality trade at least into early November, and hopefully the
forces out there that are jockeying for investment attention will turn the
artillery back to gold and silver now that the RSI and MACD/Histograms have
retrenched. The chart below was sent out on September 5 with gold at $1,350 and
silver at $17.95. Another few days of sideways to down action and RSI should be
sub-50 where I believe we will have an attractive entry point. In fact, the SIL
October $35 calls where half were sold at a double ($2.00) that week are now $0.70Ð0.90
with my replacement bid at $0.75.

Lastly, Stakeholder Gold Corp. (SRC:TSX.V; SKHRF:US) (CA$0.48/U.S.$0.39)
(for whom I consult) has advanced 66% in the past two days and is STILL only
capped at a modest U.S.$5.3 million for a large land position in the Yukon with
its Ballarat property and the second largest land package in the Elko County,
Nevada, area play dominated by Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT). The Seabridge
Snowstorm property was purchased from NY-based hedge fund legend John Paulson
for stock and future cash payments totaling U.S.$15 million. The news release
today gives SRC a strategic 3,800 contiguous acres tied onto the south and
southeast boundaries of the 5,200-acre SEA property. Called the Goldstorm
Project, drills will begin turning in an area located between SEA and the
legendary Midas Mine located approximately seven miles to the southeast and
owned and operated by Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT).

As you can observe from the map inserted
below, this is an area representing the convergence of three clearly defined
gold-bearing trends: The Getchell (60 Moz.), the Nevada Rift (51 Moz) and the
Carlin (220 Moz). It is a largely underexplored part of northern Nevada but I
suspect that next spring we will see a great deal of activity from SEA and
others, including Stakeholder. For the speculators out there, a modest drill
program will be fired up in October to test the Prochnau and Clayton Vein zones,
so there is going to be some excitement. I am a shareholder and have been
behind this company with financing and strategic planning since 2011 and am
hopeful that we will finally be rewarded for our patience and our patronage. At
the current valuation level and with only 20.8 million shares outstanding,
there appears to be some room for the market cap to grow with a pretty
attractive risk-to-reward ratio in effect.

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.

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Disclosure:
1) Michael Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: A family member owns Stakeholder Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: I am currently a consultant to Stakeholder Gold by way of Bonaventure Explorations Limited. My company has a financial relationship with the following companies mentioned in this article: Bonaventure Explorations is 50% owned by me. It has in the past been paid consulting fees by Stakeholder Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Seabridge Gold and Klondex Mines. 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 securities of Stakeholder Gold, a company mentioned in this article.

All charts courtesy of Michael Ballanger.

( Companies Mentioned: SRC:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17706

‘Premium Zinc Asset’ Comes Along Once in a Blue Moon

Source: Streetwise Reports   09/14/2017

With a new name, new management and renewed vigor, a company is advancing its wholly owned zinc project in California.

The price of zinc has been on a tear over the last year with its price rising from around $1.00/lb to as high as $1.45, before falling back slightly to $1.39. A decrease in supply is widely credited as being a major factor in the price rise; in 2015 Australia’s massive Century zinc mine closed, followed by Ireland’s Lisheen zinc mine in 2016.

Blue Moon Zinc Corp. (MOON:TSX.V) is one of the companies focusing on filling the supply gap. The company’s advanced-stage Blue Moon project in California, which produced zinc during World War II, saw exploration during the 1980s and into the early 2000s.

CEO Patrick McGrath started as a shareholder in Blue Moon and originally intended for it to be just an investment. But as the company’s share price went south even as the price of zinc increased, McGrath led a management and board shake-up that saw him installed as CEO in May.

Under new management, Blue Moon has not been sitting still; the company just released an operational update. CEO Patrick McGrath stated, “The culmination of our historical data review continues to reinforce our opinion that the Blue Moon zinc project is a premium zinc asset. We’ve set out several short-term objectives to highlight the project’s robustness.”

Blue Moon reported that since May, “management and technical advisors have assembled and reviewed the extensive database prepared by past operators, including Imperial Metals and Boliden (formerly Westmin). The historical database includes extensive plans to put the Blue Moon project into production, including several scoping and optimization studies.”

The NI-43-101-compliant resource assessment from 2008 estimated “2.62 million tons with a grade of 6.01% zinc for approximately 315 million pounds of zinc in the Indicated category and 2.68 million tons with a grade of 5.98% zinc for approximately 320 million pounds of zinc in the Inferred category plus significant values of copper, silver and gold,” according to the company. “The resource is open at depth and along strike and historical metallurgical testing indicates favourable recoveries.”

The pricing used in 2008 for the resource was $0.75/lb zinc, $2/lb copper, $600/oz gold and $8.50/oz silver. The company is updating the resource to use more current pricing and expects to release it in Q4/17.

Blue Moon is also working on a maiden preliminary economic assessment for the Blue Moon project and expects to release it in Q1/18.

The company is also focusing on permitting. The project is located in Mariposa County, an area that was part of the California Gold Rush and one that still has active mines and exploration projects. Blue Moon recently announced that it has engaged Sespe Consulting, “an environmental engineering firm with a successful record of permitting mining projects in California, including a key role in the permitting of the Golden Queen Soledad Mountain mine in 2015.” Lutz Klingmann, former CEO of Golden Queen Mining who led that company’s Southern California Soledad Mountain project through permitting, financing and construction, is an advisor to Blue Moon.

And to solidify its new persona, in July, the company changed its name to Blue Moon Zinc Corp. from Savant Explorations Ltd. and began trading on the TSX Venture Exchange under the ticker MOON.

The company’s share price recently increased 75% from $0.04 to $0.07, before falling back slightly to $0.066.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. 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. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blue Moon Zinc Corp., a company mentioned in this article.

( Companies Mentioned: MOON:TSX.V; BMOOF:OTC,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17705

‘Good Things Come in Threes’: Three Buy Ratings on Three Mining Companies

Source: Streetwise Reports   09/14/2017

Gold may not be on the lips of most investors, but these three mining companies have analysts talking.

In the Sept. 6 edition of Resources Maven, Gwen Preston delved into Columbus Gold Corp. (CGT:TSX; CBGDF:OTCQX). The analyst explained that Columbus Gold is at a “crossroads” because of the “pending spinout of Allegiant Gold, which will contain all of Columbus’ Nevada assets. The concept is to put Columbus’ two halves in separate vehicles so that either can be dealt or advanced on its own.”

The second vehicle Preston is referring to is Columbus Gold’s 45%-owned joint venture, Montagne d’Or, in French Guiana. Preston pointed out that “the mainstay of [my] investment thesis was—and still is—that someone will want to own all of Montagne d’Or. That someone could be Nordgold, Columbus Gold’s partner that owns the remaining piece of Montagne d’Or, or it could be another gold miner, who would deal for one or both parts.”

Preston highlighted that “Columbus’ Nevada portfolio has some good projects and is powered through a partnership with some of the best Nevada explorers in the world. It deserves more than to be lost in a shuffle, or even overshadowed by another project like it has been for so long.” By dividing the two halves, Columbus makes sure that “its Nevada portfolio so that it does not get lost in any Montagne-focused shuffle. It also wants to remind the market that it is more than Montagne.”

She also said she likes Columbus management because it is “particularly good at looking ahead and ensuring that deals or structures will work well for shareholders in all kinds of might-happen situations. The decision to not assay these Bolo cores until after the spinout is one example. The entire equation underlying the joint venture with Nordgold for Montagne is another, in that Columbus was careful to ensure they could not get diluted down to a royalty.”

Preston concluded “that Buying now makes sense in that you get exposure to whatever happens with Montagne and shares in Allegiant.” Preston has a Buy rating on Columbus Gold.

Columbus is currently trading at $0.73.

Great Panther Silver Limited (GPR:TSX; GPL:NYSE.MKT) had a site recently visited by ROTH Capital Partners analyst Jake Sekelsky. In a Sept. 5 report, Sekelsky described a site visit to Great Panther’s Guanajuato Mine Complex. Sekelsky highlighted that the first thing he noticed was the relationship between Great Panther and the community due its operations being so close to the town. He explained that given “Great Panther has been operating in the area since 2005, we believe the firm has a strong presence in the local community as both an employer and proponent of preserving local mining history. We believe efforts such as this go a long way in maintaining Great Panther’s social operating license in Guanajuato.”

As the tour continued to the Cata Plant, Sekelsky noted that “the 1,200 tpd processing facility appeared to be in good working condition. He continued by pointing out the “various upgrades and refurbishments made to the plant since its purchase in 2005. Importantly, the flotation cells were replaced in 2012 and resulted in recoveries increasing from the mid-70% range to current levels of 87%-89%.”

“We walked away impressed with the company’s flagship operation. . .we are maintaining our Buy rating and $2.00 target. Accordingly, we have not made any changes to our model following the site visit. In our view, our estimates that were set forth in our initiation on August 10, 2017 were confirmed on this site visit,” Sekelsky concluded.

Great Panther’s shares are currently trading at $1.63.

Andrew Kaip, analyst for BMO Capital, highlighted Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) in a Sept. 5 report that focused on “the evolutionary trends and introduce cost reporting for the precious metal royalty/streaming sector. We ask the question, ‘Who has the better deck of cards?'”

Kaip pointed out that Wheaton Precious Metals’ strength is “cash generation and liquidity.” He noted that “following the old adage that ‘Cash is King,’ Wheaton Precious Metals is king, generating +40% of total cash flow among its peer group annually. . .barring any future equity raises, Wheaton Precious Metals has the most enviable liquidity positions to be able to transact on future opportunities.”

Kaip stated that “when evaluating royalties/streams, the quality of the asset, jurisdiction, and commitment from management become cornerstone attributes for consideration. For WPM, for example, +90% of its production come from assets in the lowest half of the cost curve, and the portfolio has almost 20 years of mine life based on reserves.”

Kaip concluded that “breaking it down to the individual company level, WPM is the standout in the generation of overall operating cash flow, bringing in about 40% or more in any given year. As we note from past commentary from the company, WPM is comfortable with its debt levels and drawing down on its revolver. . .should investors look to obtain higher leverage to the underlying commodity longer term, we see WPM as most leveraged to the price of gold. In terms of silver, both in the near term and longer term, we see WPM as the most sensitive to a change in the price of silver.”

Kaip has an Outperform rating on Wheaton Precious Metals with a target price of $20.96. Wheaton Precious Metals is currently trading at $19.82.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Columbus Gold, Great Panther Silver and Wheaton Precious Metals. 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.As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals Corp., a company mentioned in this article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: CGT:TSX; CBGDF:OTCQX,
GPR:TSX; GPL:NYSE.MKT,
WPM:TSX; WPM:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17703

Target Price Increased as Zinc Producer Closes Acquisition

Source: Streetwise Reports   09/14/2017

Raymond James raised its target price on this base metals mining company and analyzed what the new asset could offer in terms of production.

A Sept. 11 research report announced that following a site visit to Trevali Mining Corp.’s (TV:TSX; TV:BVL; TREVF:OTCQX) past-producing Rosh Pinah zinc mine in Namibia, Raymond James raised its “target price to CA$2/share from CA$1.80/share to reflect the longer mine life and higher throughput,” wrote analyst Brian MacArthur.

Today, the Rosh Pinah mine could run for about 7.5 years solely on “current reserves of about 5Mt grading 8.8% zinc, 1.45% lead and 20.7 g/t silver” or for roughly 15 years were Measured and Indicated (M&I) and Inferred resources to be incorporated as well, MacArthur explained.

However, he emphasized that “drilling has the potential to add more resources,” which “could increase the mine life and/or support higher production. . .future drilling is targeting higher grade zinc, and regionally we expect over 5 Mt could be added.”

The opportunity to add resources is ripest in the WF3 zone of Rosh Pinah, he purported, “which has M&I resources of about 6.5 Mt at 8.2% zinc” and “where mining is shifting.” MacArthur suggested that “the possibility exists to more than double that at higher grade through drilling expected to begin in 2018.”

As for increased throughput, the analyst said, “We believe the mine infrastructure over time could (subject to development) support up to 3 Ktpd (especially if more resources are found in WP3 as we expect).” In comparison, “production has recently been closer to 1.8 Ktpd” and “capacity of the plant is about 2 Ktpd.”

MacArthur suggested that increasing production at Rosh Pinah, however, requires “improving plant output,” which Trevali plans to address in two phases.

Underway is the phase 1 “flotation upgrade, which should increase concentrate grade and recoveries as well as reduce penalties, for about $8M,” detailed MacArthur. Phase 2, to come, is a “milling upgrade, which should allow throughout (even given harder ore) to exceed 2 Ktpd, for about another $7M.”

In recapping the possibility for Rosh Pinah, MacArthur noted, “Assuming [Trevali] is successful with the drilling and can convert potential [ounces] at WP3, we believe for another $10–15M, production could be increased to about 3 Ktpd.”

In its financial model, Raymond James revised its post-2019E production estimate for the mine “to 2.1 Ktpd but note the potential to go higher longer term,” wrote MacArthur.

The research firm has an Outperform rating and updated CA$2 per share price target on Trevali, whose stock is currently trading at around CA$1.40 per share.

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

Additional disclosures about the sources cited in this article

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

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17702