Gearing Up for a Busy Summer in the Golden Triangle

Source: Thibaut Lepouttre for Streetwise Reports   05/22/2018

Calling it “one of the hottest exploration regions in Canada,” Thibaut Lepouttre of Caesars Report describes how one company is preparing for the short summer exploration season.

One of the hottest Canadian exploration regions in Canada in the past few years has been the Golden Triangle in British Columbia. Unfortunately the exploration season is pretty short, as companies have just a few months to get in and drill holes before the weather changes. This means exploration companies need to be able to hit the ground running to maximize their efforts. One of those companies is Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS), which is getting ready to drill its flagship Forrest Kerr Gold project again.

The Flagship Forrest Kerr Property

Aben Resources acquired the 23,000-hectare Forrest Kerr project in British Columbia’s Golden Triangle region in 2016. This region was just heating up again after remaining dormant for a few decades. The development of the Valley of the Kings and Red Chris Mines (owned by respectively Pretium Resources Inc. [PVG:TSX; PVG:NYSE] and Imperial Metals Corp. [III:TSX]), as well as new infrastructure development by the government, has led to an increased level of exploration activity in the region.

The Golden Triangle has been the hot spot of gold exploration and production throughout the past few decades. Placer gold was initially discovered along the Stikine and Anuk Rivers in mid-1800s, and the exact point where both rivers combined was the scene of a new gold rush. These small-scale placer gold operations continued for several decades until a first mine was developed right after the First World War.

But the most famous mines in the Golden Triangle district were undoubtedly the Snip Mine (1.1 million ounces recovered at an average grade of 27.5 g/t gold) and the Eskay Creek Mine (producing 3 million ounces of gold and 160 million ounces of silver). A very prospective region, indeed.

Aben seems to have negotiated a good deal considering the company has to issue just 7 million shares and complete CA$3 million in exploration expenditures by June 2020. That gave Aben a four-year period (from 2016-2020) to test the merits of the project while incurring the expenses needed to reach full ownership of the project. It’s very likely Aben will be completing its exploration expenses by the end of this year, which would secure its 100% ownership two years ahead of schedule.

Looking at the historical data provided by the previous owners of the project, it’s understandable that Aben’s technical team was charmed by the property. Kiska Metals Corp. (KSK:TSX.V)(one of the previous operators) drilled a very short but ultra-high-grade interval of 0.45 meters containing 359.7 g/t gold and 1.95 meters containing 101 g/t gold. You obviously cannot expect these high-grade results to pop up everywhere on the property, but these intervals, combined with in excess of 20,000 samples, were a good enough reason for Aben to get back in the field for its 2016 and 2017 exploration programs.

After analyzing all the data gathered from the 2016 exploration season, Aben immediately designed a nine-hole drill program, completing 2,445 meters of diamond drilling in the summer of 2017. The first three holes were drilled at the Carcass Creek Zone and didn’t immediately yield the expected/desired results as only short intervals of low-grade mineralization were encountered. Before the company could target the expected structure from a different angle, the drill program at Carcass was suspended for safety reasons, and the next six holes were drilled at the more important Boundary Zone.

This zone was Aben’s high-priority drill target after analyzing the 2016 assay results and fortunately these six holes did provide the desired results. A first batch of three holes was drilled from the same drill pad at different angles (45, 60 and 75 degrees), and encountered 10 meters at 6.7 g/t gold, 6.36 g/t silver and 0.9% copper (with a higher grade interval of 3 meters at 18.9 g/t gold, 16.6 g/t silver and 2.2% copper) in the first hole, followed by 12 meters of 10.9 g/t gold, 14.6 g/t silver and 1.5% copper in the second hole (drilled at a 60-degree angle). And the final hole of that series of three (drilled at a 75-degree angle) encountered 14 meters at 2.91 g/t gold, 5.2 g/t silver and 0.6% copper.

These are excellent high-grade results, indicating a narrow high-grade zone within a very broad mineralized zone, which Aben Resources will undoubtedly want to follow up on. It’s still very early days at the Boundary Zone, but Aben now has a pretty good idea of how to make its 2018 drill program as efficient as possible.

It’s now also cheaper to get an exploration program going in the Golden Triangle. The recent completion of major infrastructure works at and around the Golden Triangle have renewed the interest of exploration companies in this area as it’s now easier to explore, and a discovered deposit now actually has a chance of becoming a mine without needing Snip-like grades. The Forrest Kerr property is definitely blessed with excellent access to infrastructure: a hydro dam has been built on the southern part of the property boundaries, and this resulted in the construction of access roads and, more importantly, a 287-kilovolt power line.

That’s an important step forward. It doesn’t increase the odds of finding a deposit (as you’ll still need to apply “pure” geology), but it definitely makes it easier and cheaper to explore.

Share Structure

Although Aben Resources just raised CA$2.3M at CA$0.125 per share, it has done a great job keeping its share count under control. The company currently has just 78.1 million shares outstanding, and that’s after issuing 6.3 million shares at CA$0.125/share in a hard-dollar financing, and 8.55 million flow-through shares at CA$0.18. Both tranches were accompanied by a three-year warrant with a strike price of CA$0.25 per warrant.

As Aben Resources still had some cash on its balance sheet, this recent raise increased the cash position to approximately CA$3.5 million. This means Aben is in great shape for the 2017 exploration season.

On top of that, it looks like Aben will be able to add more cash to its balance sheet over the next few months, as two series of warrants are currently in the money. With an exercise price of CA$0.10, 4.4M warrants will expire in November, while an additional 3.87 million warrants priced at CA$0.15 will expire on Dec. 29. As Aben’s share price is trading firmly above the exercise prices of the warrants, we would expect some warrant holders have already started to exercise them.

Conclusion

Exploration isn’t an exact science, and all companies like Aben can do is increase their odds by identifying the projects (and the targets on those projects) with a good probability of hitting something. And we think that’s exactly what Aben Resources did in 2017 before the drill season in the Golden Triangle abruptly ended.

With CA$3.5 million in cash and an improved understanding of the gold mineralization in British Columbia’s Golden Triangle compared to last year, Aben Resources seems to be ready to hit the ground running to follow up on the interesting drill results encountered at the Boundary zone in 2017.

Aben will be one of the first companies starting its field work in the Golden Triangle this year, so we would expect the company to be in the pole position to announce assay results throughout the summer. And having the first mover advantage could be important in this market, as it could allow the “early movers”to retain the attention of the market.

Thibaut Lepouttre is the editor of the 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, own shares of the following companies mentioned in this article: a long position in Aben Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with Aben Resources. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Aben Resources and Pretium Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aben Resources. Please click here for more information.
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 Aben Resources, a company mentioned in this article.

Charts and images provided by the author.

( Companies Mentioned: ABN:TSX.V; ABNAF:OTC.MKTS,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/22/gearing-up-for-a-busy-summer-in-the-golden-triangle.html

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Jack Chan’s Weekly Precious Metals Update

Source: Jack Chan for Streetwise Reports   05/21/2018

Technical analyst Jack Chan updates his gold and silver charts.


Our proprietary cycle indicator is up.


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


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


Speculation is in bull market values.


A massive multiyear bottoming pattern is in progress.


Silver is on a long-term buy signal.


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


Speculation is at a multiyear low and yet prices are holding firm.

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

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

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

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/21/jack-chans-weekly-precious-metals-update-28.html

Golden Triangle Stock Review

Source: Clive Maund for Streetwise Reports   05/21/2018

Technical analyst Clive Maund takes a look at miners working in British Columbia’s Golden Triangle.

We have looked at three exploration stocks working in British Columbia’s Golden Triangle in recent months. Two of them are at about the same price as when we bought them, while the third is up significantly, and all three are expected to advance in coming months as the drilling season unfolds. They should go up even if gold doesn’t go up, although it is expected to.

In this update we are going to review the technicals of these three stocks, and three new ones have been added. You will observe that since we are talking about the Golden Triangle here, this article started with three stocks, and has just been expanded to six stocks, which are, of course, multiples of the number of sides of a triangle.

The well-known Lawrence Roulston has got the fundamentals of the Golden Triangle well covered in his just published interview, Highly Anticipated Summer of Exploration in BC’s Golden Triangle, which it is worth reading carefully. I, therefore, do not need to discuss them, but would draw your attention to the key third paragraph in Roulston’s article, which, for convenience, is pasted in below, and also to the additional point he makes that the infrastructural situation in the Golden Triangle (roads, electricity, etc.) is vastly improved. From Roulston’s article:

“After decades of traveling around the world looking for big high-grade metal deposits, I found the best area was right here in my backyard—the northwest part of British Columbia (B.C.), an area called the Golden Triangle. It’s one of the most richly endowed mineral regions on the planet. The gold resources that have already been outlined in that region exceed the Carlin Trend, which is generally seen to be the biggest depository of gold on this side of the planet. And in addition to the gold, there’s an equivalent value of silver, copper and other base metals as well as exotic metals like scandium. So, this is a really exceptional depository of metals and there will be a lot more ounces and pounds found in that region over the next couple of years.”

Now we will proceed to review the three Golden Triangle stocks that we bought earlier. Note that clicking on the stock name will take you back to the latest/last report on it.

Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS); CA$0.21, $0.165

We start with Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTC.MKTS), which we bought at just the right time as its current uptrend started early in April, so even after the correction of recent days it is up 50%, as we can see on its latest 6-month chart below.

Despite the stock having become overbought some days back, we decided not to sell, but to ride out any minor correction, because it is still early in its drilling season speculative rally, which could see it attain its highs of last year by midsummer and possible exceed them, as we can see on its 3-year chart below.

Aben Resources website.

Auramex Resources Corp. (AUX:TSX.V); CA$0.065

On the 10-year chart for Auramex Resources Corp. (AUX:TSX.V) we can see that it is just started to emerge out of a giant saucer-base pattern, with its volume indicators positive.

On the 3-year chart we see that it is in a strong uptrend, and at a good entry point having just reacted back to support near to its rising 200-day moving average. Although it looks like it has risen a lot already on this chart, with the benefit of having looked at the 10-year, we know that it could rise much further yet and could well accelerate.

On the 6-month chart we see that we are at a good entry point right now.

Auramex Resource Corp website.

Golden Ridge Resources Ltd. (GLDN:TSX.V); CA$0.14

Next we look at Golden Ridge Resources Ltd. (GLDN:TSX.V), which is at about the same price as when we bought it back in the middle of March. As we can see on its latest 9-month chart it is still basing in a trading range, but as the drilling season gets underway it is likely to do what we expected of it, which is to break out of the trading range and advance, possibly steeply, again probably topping out in midsummer.

Golden Ridge Resources website.

Metallis Resources Inc. (MTS:TSX.V); CA$1.33, $1.03

Metallis Resources Inc. (MTS:TSX.V) staged a summer rally of almost mind-boggling proportions last year, as we see on its 1-year chart. This was followed by an inevitable fall reaction, which was actually rather modest and followed by the formation of a saucer-base pattern, that appears to be completing, as luck would have it, right at the start of a new drilling season. Could we see another big summer ramp? We could—why not? Although since it will begin from a much higher start point we won’t and can’t see the sort of percentage gains that occurred last year. Nevertheless they could be well worth going for, and after the dip of recent days it is rated a strong speculative buy here.

The 6-month chart shows recent action in more detail, and we can see more clearly the recent uptrend above the saucer boundary, with the bullishly aligned moving averages providing underlying support. Good entry point but a break below the saucer boundary would spoil the pattern. Dump it if it drops below CA$1.20. The stock should break out upside from the saucer imminently. Metallis trades in light but acceptable volumes on the U.S. OTC market.

Metallis Resources website.

Romios Gold Resources Inc. (RG:TSX.V; RMIOF:NASDAQ; D4R:FSE); CA$0.07, $0.058

On the 10-year chart for Romios Gold Resources Inc. (RG:TSX.V; RMIOF:NASDAQ; D4R:FSE) we can see that a fine large head-and-shoulders bottom is completing that corresponds to the one completing in gold itself, and this chart, with its positive volume indicators, adds weight to our contention that gold is building toward a major upside breakout. We should note, however, that Romios looks set to break out with or without gold’s help, with the chances of its doing so being increased by the fact that it is active in the Golden Triangle. This pattern looks mature and complete, so an upside breakout is considered likely to occur soon.

The 3-year chart for Romios enables us to view the right shoulder of its giant head-and-shoulders bottom pattern in much more detail. With it hauling itself up from the right shoulder low, and still some way below the “neckline” or upper boundary of the giant base pattern, we are believed to be at a good entry point here.

On the 6-month chart we can see that the recent dip on the back of sector weakness has resulted in its being oversold near to its rising 200-day moving average, so the chances are good that it will turn up again here, thus this looks like a good entry point. Romios trades in generally light volumes on the U.S. OTC market.

Romios Gold Resources website.

Shamrock Enterprises Inc. (SRS:CSE); CA$0.05

Shamrock Enterprises Inc. (SRS:CSE) is an extremely cheap Golden Triangle play that we scooped up at just $0.03 or a little above back in December, since which time it has basically done nothing, although its average price has since been higher, as we can see on its 6-month chart below. The news here is that they have beefed up their management and they are understood to also have a summer drilling program in place. There was a rather amusing episode last week where a broker accidentally bought 800,000 shares, probably by hitting the wrong button or inputting the wrong code, and then had to sell them again, hence the flurry of activity that is obviously meaningless.

The long-term 6-year chart for Shamrock looks very promising indeed, with a large head-and-shoulders bottom completing. There is a clear band of resistance at the upper boundary of this pattern, and should the price break above it, it will likely spike, and with the summer drilling season at hand, that could happen soon. So we stay long and it is a speculative buy on minor dips ahead of the breakout.

Shamrock Enterprises website

.

Clive Maund has been president of http://www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. 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. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Aben Resources and Shamrock. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has consulting relationships with Aben Resources and Golden Ridge. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) 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 Aben, Golden Ridge, Shamrock and Auramex, companies mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: ABN:TSX.V; ABNAF:OTC.MKTS,
AUX:TSX.V,
GLDN:TSX.V,
MTS:TSX.V,
RG:TSX.V; RMIOF:NASDAQ; D4R:FSE,
SRS:CSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/21/golden-triangle-stock-review.html

Gold, Silver & US Dollar Updates with Review of Latest COTS

Source: Clive Maund for Streetwise Reports   05/21/2018

Technical analyst Clive Maund looks at gold, silver and the dollar after reviewing the latest COT Charts.

Gold’s breach of nearby support last week freaked out some longs of a nervous disposition, but it did no technical damage of any significance, as we can see on our latest 3-year shown chart below on which we can observe that it is still above important supporting trendlines. This chart shows that last week’s drop was just a “storm in a teacup.” Recall that the pattern that has been forming since mid-2016, for nearly two years now, is the Right Shoulder of its giant Head-and-Shoulders bottom that may be viewed on the 8-year chart in the last Gold Market update.

Last week’s drop actually improved gold’s technical condition by flushing out more jittery Large Specs, as we can see on its latest COT chart. While there is room for further improvement, positions are now at levels that are moderate enough to permit a rally, which will happen if the dollar reverses here or soon.

Turning to the 3-year chart for silver, we see that its technical condition is becoming extraordinarily tight, with fluctuations narrowing into a very tight range. This is a situation that must lead soon to a big move, and for a variety of reasons, that move is expected to be to the upside. Recall that the pattern that has been forming since mid-2016, for nearly two years now, is the Right Shoulder of its giant downsloping Head-and-Shoulders bottom that may be viewed on the 8-year chart in the last Silver Market update.

One important reason that silver’s next big move is expected to be to the upside is its COT structure, which is still more bullish than gold’s, with relatively low Commercial short positions and extremely low Large Spec long positions. Although this COT has deteriorated somewhat over the past two weeks, it remains strongly bullish.

Even though gold and silver’s charts and COTs remain strongly bullish, as we have just seen, many are worried that the party will be ruined by a continuation of dollar strength, with it now being widely assumed that it will carry on ascending, so how does its latest chart look?

On the latest 5-month chart for the dollar index, we can start to see signs that its strong rally is running out of steam, with it starting to round over, having punched through its falling 200-day moving average, and one possibility, which is shown, is that it is at or very close to the high point of an intermediate Head-and-Shoulders top. This is an audacious call that could of course quickly be squelched by market action, but if should prove correct, then the precious metals sector should turn up here and gold and silver proceed to break out of their giant Head-and-Shoulders bottom patterns, as we have long been expecting, which will cause the PM sector to rocket higher.

With regards to possible reasons why the dollar might reverse here we have some interesting news out of Europe in “Brussels Rises In Revolt Against Washington,” that, tired of being dictated to by Washington, in addition to not obeying Washington’s commands that it pull out of the nuclear treaty, it is taking steps to circumvent the use of the dollar when buying oil from Iran.

Clive Maund has been president of http://www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/21/gold-silver-amp-us-dollar-updates-with-review-of-latest-cots.html

Drill Results May Double Size of Gold-Bearing Structure on Canadian Project

Source: Streetwise Reports   05/20/2018

Wrapping up its winter drill program, holes on this company’s property in the Northwest Territories included discovery of visible gold.

In a May 8 press release, TerraX Minerals Inc. (TXR:TSX.V) announced that additional drilling on the Crestaurum zone in its Yellowknife City gold project had intersected mineralization that may have doubled the known size of the gold-bearing structure, and included visible gold.

Assays from 11 drill holes included four in the “high-grade Crestaurum gold bearing structure to test whether gold mineralization continued to depth.”Two of those holes showed visible gold, and all “intersected significant gold.”

The assays showed the following:

  • 8.84 g/t Au over 2.49 m and 5.38 g/t Au over 0.63 m in hole TCR18-076
  • 3.08 g/t Au over 2.80m, and 5.57 g/t Au over 2.06 m, in hole TCR18-078
  • 13.30 g/t Au over 1.24 m, and 4.41 g/t Au over 0.80 m, in hole TCR18-079
  • 3.86 g/t Au over 0.56 m in hole TCR18-077

TerraX also completed additional exploration work at its Sam Otto west zone, drilling five holes that all intersected “gold mineralized structure with best results of 3.00 g/t Au over 2.69 m in hole TSO18-038, 1.06 g/t Au over 4.00 m in hole TSO18-041, and 1.32 g/t Au over 2.70 m in hole TSO18-036,” according to the release. The company asserted these results “makes this a good target for continued exploration.”

Reflecting on results from the Crestaurum zone, TerraX CEO Joe Campbell said, “This small program of four holes successfully demonstrated that the Crestaurum zone continues at depth on multiple surfaces, potentially doubling the size of the zone. The 300 meter vertical depth tested with these holes is still considered very shallow for Archean lode gold deposits and mineralization remains open for further expansion, both along strike and at depth.”

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

( Companies Mentioned: TXR:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/20/drill-results-may-double-size-of-gold-bearing-structure-on-canadian-project.html

Precious Metals Streaming Firm Seals Deal with New Mine Owner

Source: Streetwise Reports   05/19/2018

Andrew Kaip, an analyst with BMO Capital Markets, reviewed the arrangement between the two entities.

In a May 13, 2018 research note, analyst Andrew Kaip with BMO Capital Markets indicated Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) entered into a metals purchase agreement with First Majestic Silver Corp.’ (FR:TSX; AG:NYSE; FMV:FSE) regarding the San Dimas mine following the close of First Majestic’s acquisition of Primero.

According to the deal terms, Kaip reported, Wheaton “will receive 25% of gold production plus an amount of gold equal to 25% of silver production based on a fixed exchange ratio. It will make ongoing payments of the lesser of $600 per ounce (1% inflationary adjustment) and the market price.” Also, it will get 20.9 million First Majestic shares valued at $151 million. Kaip wrote, “We forecast an average of 34 thousand ounces of gold equivalent (34 Koz Au eq) over the next three years versus an average of 75 Koz Au eq over the previous three years.”

BMO viewed the deal as “slightly dilutive at 6%,” which was expected, Kaip noted. However, “given Wheaton’s carrying value of ~$133M at the end of Q1/18, the company is expected to record a gain on the transaction.”

As for First Majestic as a partner, it’s a solid one, wrote Kaip, one with a good track record of operating in Mexico and a strong balance sheet to invest in exploration and development and “to reinvigorate San Dimas.”

Further, the closing of the transaction should allow for the overhang on Primero to dissipate, “thereby setting the stage for investors to recalibrate expectations on San Dimas,” said Kaip.

In other news, Wheaton’s Q1/18 was as expected. Looking forward, the company anticipates deliveries of 355 thousand ounces of gold and 22.5 million ounces of silver this year. Additionally, Wheaton now has a court date, September 2019, for its pending tax dispute with the Canadian Revenue Agency.

Based on Wheaton’s Q1/18 results and its agreement with First Majestic, BMO raised its net asset value per share on the San Dimas stream to $12.35 from $12.09. On Wheaton, BMO reiterated its Outperform rating and US$28 per share target price. Wheaton’s stock is currently trading at around US$21.66 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 billboard sponsors of Streetwise Reports: Wheaton Precious Metals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

Disclosures from BMO Capital Markets, Wheaton Precious Metals, May 13, 2018

Analyst’s Certification: I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures:

Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Wheaton Precious Metals and First Majestic Silver within the past 12 months.

Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to First Majestic Silver within the past 12 months.

Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Wheaton Precious Metals and First Majestic Silver within the past 12 months.

Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from First Majestic Silver and Primero Mining.

Disclosure 6A: Wheaton Precious Metals and First Majestic Silver is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services Disclosure

6C: Primero Mining is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.

Disclosure 8A: BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of Wheaton Precious Metals.

Disclosure 8C: BMO Capital Markets or an affiliate has a financial interest in 0.5% or more in the issued share capital of Wheaton Precious Metals. Disclosure 9: BMO Capital Markets makes a market in Wheaton Precious Metals.

For Important Disclosures on the stocks discussed in this report, please click here.

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

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/19/precious-metals-streaming-firm-seals-deal-with-new-mine-owner.html

Gold Miner Firms Up Financial Agreements

Source: Streetwise Reports   05/17/2018

The news flow for this company includes initiation of a gold hedge program and filing paperwork with the TSX Venture Exchange for a new royalty agreement.

To offset the risks involved with fluctuating gold prices, Victoria Gold Corp. (VIT:TSX.V) recently announced it has entered into a “gold price protection program” for its Eagle Gold Project in Canada’s Yukon Territory.

The hedging program, entered into with Macquarie Bank Ltd. includes the following provisions:

  • 100,000 ounces of put options were purchased with a strike price of CA$1,500/oz,
  • 100,000 ounces of call options were sold with a strike price of CA$1,936/oz, and
  • the 100,000 ounces include 40,000 oz in 2020 and 60,000 oz in 2021.

The company also described the program as “unsecured and [a] zero-cost collar” in its May 14 press release.

In other recent news, Victoria Gold announced it had filed documentation with the TSX.V exchange with regard to its royalty agreement with Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) and a March 8 private placement. Under the terms of the royalty agreement, Victoria Gold “shall sell to Osisko a 5 percent net smelter return (NSR) royalty for proceeds of $98 million.” With regard to the private placement, 250 million shares were purchased at $0.50 per share, as were 25 million share purchase warrants with an exercise price of $0.625/share over five years.

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

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

( Companies Mentioned: VIT:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/05/17/gold-miner-firms-up-financial-agreements.html