DNI Delivers Profitable Graphite

Source: Bob Moriarty for The Gold Report   04/13/2017

For Bob Moriarty of 321 Gold, the boom in demand for lithium ion batteries also means a boom in demand for graphite, and he is placing his bets on a junior he believes has nothing but blue sky ahead.

A lithium ion battery is no more lithium than 6 k gold is really gold. Regulations require gold be the major component of jewelry to be called gold. 6 k gold is really copper and silver, not gold. Same same with batteries, a lithium battery increases the demand for graphite a lot more than it does for lithium. What is called a lithium ion battery contains 10–20 times more graphite than lithium. So a boom in lithium battery requirement is really a boom in graphite demand.

Maybe we should start calling them graphite batteries with a little bit of lithium?

But both the demand and price of graphite have shot up in recent years with the increase in demand for battery storage. A couple of years ago there were probably seventy-five Canadian juniors all claiming to be the next big thing in graphite. Alas, cold hard economics stopped most of them in their tracks. Canada has some great hard rock graphite projects but they all require a lot of money to get into production. With China being the world’s biggest supplier of graphite, they are quite willing to dump graphite at a moment’s notice. Those who fund mining projects want stable prices more than high prices.

Recently I got an interesting email from the president of a budding graphite company. He sent some facts on the company and his presentation. When I opened the file and read it, my eyes bugged out and I swore. It was a weekend; there was nowhere to buy shares and I was forced to wait for markets to open on Monday. I cursed for two days. To say the story was compelling was an understatement. The company is DNI Metals Inc. (DNI:TSX.V; DG7:FSE) and Dan Weir runs it.

Unlike other graphite juniors, DNI is vertically integrated. Dan approached the largest graphite producer in the world outside China and set up an arrangement to sell their graphite. So before they produce a gram of graphite themselves, DNI is wholesaling graphite from the company in Brazil. The Brazilians have no particular interest in expanding their operation so Dan looked around for similar material to mine and sell under similar conditions.

Most graphite deposits in Canada are hard rock mines. The Brazilian mine is in weathered saprolite material. Rather than drilling and blasting, the material can be worked with bulldozers and excavators at the surface. It’s far cheaper to mine and mill than hard rock graphite.

Then Dan and his team searched the world for a similar deposit in terms of geology. What they found in Madagascar was a similar deposit but of even higher quality flake graphite. Their Vohitsara project purchased by DNI in mid-2015 is fully permitted, 62-67% large flake, high-grade 3-30% and only 50 km from a port on paved roads.

It will probably take $10-$15 million to put the project into production and $1.5 million to finish a 43-101 resource and do a PEA. In late March DNI announced a definitive agreement with an Australian company where DNI would option 50% of the Vohitsara project to Cougar Metals NL (CGM:ASX). There are some stiff terms to the DA.

Cougar must complete a 43-101 by June 30, 2017 and a PEA by October 31, 2017 to earn their interest. The agreement requires Cougar to complete at least 60 drill holes to a maximum depth of 50 meters and do 1,000 meters of trenching. That requirement is similar to work Cougar did for another company in Brazil in 2016.

Graphite prices in Madagascar range from $500 a ton for fines to $2,500 a ton for super jumbo 30-mesh material. I would guess production costs to be $300 to $500 a ton leaving some nice margins for the large flake material.

DNI is pretty much a trifecta or perfect storm of a graphite company with a lot of blue sky. The company is developing a customer base now as they wholesale graphite at a profit. They have a strong and experienced partner in Cougar Metals with some tight time lines to move their Madagascar project forward and they have one of the world’s best graphite projects in a mining friendly country.

On April 5, DNI announced a financing of $2.5 million. The price tumbled in response offering investors a short time window to pick up cheap shares. I did and I am. The company will use the money to pick up other similar projects in Madagascar and for corporate purposes. I intend to participate in the PP at $.065 as well.

I love the story. While lithium gets the spotlight, actually graphite offers more profit opportunity as far as I can tell. Most lithium is produced from brine and it’s cheap to produce and permit. Hard rock graphite projects are more expensive and take a lot longer. A window exists today for those who are forward thinking and I include Dan Weir in that category.

DNI is going to be an advertiser on 321gold. I own a bunch of shares now and will be buying more. It’s an interesting story and their website does a good job of telling the tale. Please take some responsibility and do your own due diligence.

DNI Metals
DNI-C $.055 (April 13, 2017)
DMNKF-OTCBB 40.5 million shares
DNI Metals website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: DNI Metals. DNI Metals intends to become an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) 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: CGM:ASX,
DNI:TSX.V; DG7:FSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17393

One Hour Alone with Rick Rule and It Finally Dawned on Me

Source: Daniel Ameduri for The Gold Report   04/11/2017

Daniel Ameduri, cofounder of Future Money Trends, shares the insights into gold investing he gained from a conversation with veteran investor and money manager Rick Rule.

Since 2007, I have been actively involved in the resource sector. This year will mark a full decade, and I’ve been able to make a small fortune for myself, close friends and family.

Between 2008 and 2011, I was invested in the bull market that saw companies go from virtually non-existent to CAD$400M in market cap, and between 2011 and 2015, I experienced the brutal bear market, which saw these same companies and their CEOs go from lavish vacations and $4 million homes to the bankruptcy courts.

This is a highly cyclical business, and what most investors (who don’t take the time to research) miserably fail to understand is that the gold and silver stocks are not long-term investments at all—they are leveraged wealth vehicles to trade the underlying commodity. When done right, these speculations of boom and bust cycles create fortunes.

I was shocked to learn that the shares of the miners themselves are not the best investment—not during the bear market, and not during the bull market, either.

It was Rick Rule, the 40-year veteran and hundred-millionaire investor and money manager that some of the richest people in mining have called “the most street smart analyst in resources,” who laid out these cycles for me and explained exactly how to thrive by anticipating them.

Gold and Real Interest Rates

It was Rick who had explained to me that for thousands of years, gold had kept its purchasing power, and, therefore, it wasn’t an investment vehicle at all. It was a means of storing and retaining wealth that one gained in his ventures, job and businesses.

There have always been, though, gold rushes, or periods of time when the companies mining the ore were swimming in profits, and there are other times when mountains of high-grade ore were left in the ground because mismanaged companies ran out of money.

The huge difference is today’s monetary system does not judge gold bullion as money. In the eyes of the masses, it’s not even a competing currency—it’s just a relic of the past.

This creates gold and silver bull and bear markets, a phenomenon that has never been seen before, since currencies never floated in price vs. the precious metals.

Bull and Bear Markets

“If you want to measure your gold holdings to something, compare it to fiat currencies,” Mr. Rule told me, “and not to cash-producing assets, because gold is money.”

That sounded familiar, since Warren Buffett says exactly the same thing.

The difference is that Buffett doesn’t even put his savings in gold, a strategy Ray Dalio has called “foolish, at best.”

“Daniel, don’t try to make a fortune owning precious metals in physical form,” Rule looked straight at me and said, “Instead, speculate in the shares, and do it by sticking with what works and with the people who make it work.”

GoldMining Inc.

“When one compares the performance of the shares to bullion during times of rising valuations, one undoubtedly sees that gold optionality is one of the best business models. It’s how Ross Beaty and others made a name for themselves and created fortunes.”

Since that meeting in 2011, I became obsessed with finding the ultimate gold optionality play to ride the next big bull market. My team and I have discovered a few core optionality plays, including one that Rick is a large shareholder of through his KCR Fund.

Right now, gold is breaking out big, and I want to make sure you fully capture the value of the “gold optionality” business model, so I’ve laid it out in an exclusive report HERE!

Daniel Ameduri is the editor of the Wealth Research Group and the cofounder of Future Money Trends Letter, FMT Advisory and Crush The Street. After warning family and friends in 2007 about the coming market and mortgage collapse, Ameduri started his own YouTube channel, VisionVictory, which has received 10 million video views. On March 18, 2008, Ameduri called for Dow 8,000, the collapse of Lehman Brothers, AIG, and Washington Mutual. During the mortgage crisis, he helped people buy Put Options on Countrywide Mortgage; these Puts saw a gain of 1,400%.

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) Daniel Ameduri: I, or members of my immediate household or family, own shares of the following companies 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. My company has a financial relationship with the following companies referred to in this article: GoldMining Inc. has a marketing agreement with Gold Standard Media. 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 courtesy of the author.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17387

Charts Spelling ‘Big Trouble’ for Silver

Source: Clive Maund for The Gold Report   04/11/2017

Silver’s latest charts show that it is set up for a potentially severe decline, says technical analyst Clive Maund.

Silver’s latest charts show that it is set up for a potentially severe decline, a situation that is aggravated by its latest COTs and Hedgers charts showing record extreme readings, which mean BIG TROUBLE for silver. Now, you might think, like so many traders did on Friday morning, that with Cruise Missiles flying around the Mideast, the outlook for the Precious Metals couldn’t be better, but the charts are saying that this is an opportunity—on the short side—dressed up in a crisis that will soon ease.

Action in silver on Friday was very bearish as we can see on its 6-month chart below—it tried to break higher in the morning but the breakout attempt failed and it dropped back, zig-zagging around and leaving behind a high volume “Spinning Top” candlestick on its chart, so that it looks like it is about to break down from a Double Top with its highs of late February.

6-month Silver Chart

The 1-year chart shows silver perched on the edge of a cliff, at the top of a big expanding downtrend channel with no relief in sight until it reaches the support level shown, and COTs and Hedgers charts show that it could drop much further—to the lower boundary of this expanding channel.

1-Year Silver Chart

The risk of silver tipping into a potentially severe decline from here is amplified by its latest COT chart readings, which show that Commercial short and Large Spec long positions have risen to at least one-year extremes. This is viewed as meaning BIG TROUBLE for silver.

Silver COT

The gravity of the situation facing silver is made even more clear by the latest Hedgers’ chart, which shows that Hedgers’ positions are at all-time bearish extremes. This chart makes it extremely unlikely that silver will or can advance from here—more likely is a severe decline back towards the lower boundary of the expanding channel shown on silver’s 1-year chart above. Needless to say, the grim outlook for silver set out here also has bearish implications for gold, where the COT and Hedgers’ charts are nowhere near as decisive.

Silver Hedgers PositionChart courtesy of sentimentrader.com

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 recent articles 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.

Charts courtesy of Clive Maund

Published on Clive Maund’s members-only website March 8.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17386

Trevali Mining Making All the Right Moves

Source: The Gold Report   04/11/2017

Trevali keeps its eye on being THE “pure play” solution as it moves toward closing the agreement with Glencore International to acquire the Rosh Pinah and Perkoa zinc mines.

The mine purchase from Glencore, which was highlighted in The Gold Report’s March 16 article, moved closer to the July 31 closing date with Trevali Mining Corp.’s (TV:TSX; TV:BVL; TREVF:OTCQX) March 29 announcement of its “C$264,546,000 bought deal financing and amendment to agreement to purchase the producing Rosh Pinah and Perkoa Zinc Mines.” With this latest announcement, Trevali Mining is moving closer to its goal of being a “multi-asset, low cost global zinc producer,” as Dr. Mark Cruise, Trevali’s CEO and president, stated in the company’s March 13 press release.

According to Trevali, “The net proceeds of the Offering will be used to fund a portion of the cash consideration payable to certain subsidiaries of Glencore PLC whereby Trevali will acquire a portfolio of zinc assets from Glencore…” The companies also amended that agreement to adjust the “breakdown of the Cash Consideration and Share Consideration to be paid to Glencore on closing of the Transaction to allow a greater portion of the Consideration to be paid in Common Shares.”

Industry analysts have viewed the acquisition favorably. In a March 30 report, Paradigm Capital analyst Jeff Woolley updated its valuation of Trevali “to reflect our pro-forma view of the company. On a pro-forma basis, we estimate Trevali to be trading at a discount to our peer group of junior and intermediate base metal producers. Trevali remains the best means for investors to gain exposure to the zinc market, in our opinion, and is well positioned for a share price re-rating.”

On the heels of Paradigm Capital’s positive update, on March 31, GMP analyst Ian Parkinson updated that firm’s model to include the purchase agreement with Glencore. Parkinson stated, “The addition of two producing zinc mines will help TV more than double its annual zinc production and make TV the eighth largest zinc producer globally. TV expects annual zinc production to increase by approx. 160%.” He concluded that “investors who are looking for exposure to zinc consider buying shares of Trevali.”

Completing a hat trick of positive reviews, Cormark Securities analyst Stefan Ioannou highlights that acquisitions are only half of Trevali’s success story. In the April 10 report he states, “Exploration drilling at Santander (Peru) and Caribou (New Brunswick) continues to return high grade intersections in proximity to existing underground infrastructure—setting the stage for extended mine life.” He continues by pointing out that the “zinc market outlook is underpinned by a number of recent key mine shutdowns (+10% of supply) and a lack of new significant advanced-stage projects positioned to replace them. As a result, zinc inventories are dwindling. Markets are cyclical—longer-term supply response is inevitable. Hence, timing is key—an attribute many developers don’t have.”

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

Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are 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/17385

Trump’s Missile Strike on Syria and Gold

Source: Clive Maund for The Gold Report   04/11/2017

Technical analyst Clive Maund charts gold’s movements following the U.S. missile attack on a Syrian airbase.

In Britain in the old days there was a saying, which was “Buy on a strike.” It had nothing to do with economics and everything to do with psychology. When a general strike by workers was declared, stock prices would have fallen up to the point at which the strike started, when the economic outlook would have been at its worst, but well before the strike ended they would actually start rising again, as investors perceived an eventual resolution of the problems. Thus, savvy investors who bought when things looked at their worst would have made the best of the situation.

The same thing works in reverse when gold and silver look like they are going to rise due to a ramp up in geopolitical tensions. Thus, on Friday, we had any number of market commentators and “green” investors declaring a breakout by gold and silver due to the apparently increased danger of conflict between Russia and the U.S. after Trump lobbed about 50 cruise missiles at a Syrian airbase. Trump had three main reasons for initiating this strike. One is that he appears to have been genuinely outraged at the chemical attack having seen film of the victims of it, and wanted to hit back at those he saw as the perpetrators. The second is that it couldn’t do any harm to his flagging ratings in the polls, and was likely to boost them, and the third was that loosing off 50 Tomahawks at $1–$2 million a pop is a good way of replenishing order books, and doubtless won him some powerful friends at Raytheon.

Since the cruise missile attack on the Syrian airbase may be a “one-off” and tensions are likely to ease going forward, any positive impact on gold and silver prices is likely to fade fast, and in fact it already started to before trading was done Friday, as we will now see on the charts. So it could be said that what we talking about here is a “sell on a strike” situation, selling the precious metals sector on a missile strike rather than buying the broad market on a labor strike as in Britain in the distant past.

On gold’s 6-month chart we can see that it did actually break out in the early trade yesterday, above a line of resistance and its 200-day moving average, but it couldn’t hold it—the breakout failed leaving behind a bearish “shooting star” candlestick on the chart, which occurred on the second highest volume this year.

6-month Gold Chart

On the 1-year chart it looks like gold is forming an intermediate top here, as it is rounding over beneath a resistance level, and close to its flat / falling 200-day moving average, with moving averages still in bearish alignment, and upside momentum weak.

Gold 1-Year Chart

The COT picture for gold has deteriorated too in recent weeks, with Commercial short and Large Spec long positions increasing, although they are still in middling ground, and thus do not give much guidance one way or the other, unlike silver’s, which are flat out bearish, and thus have negative implications for gold too.

Gold COT Report

A big reason Friday morning for excitement amongst goldbugs was gold stocks seemingly breaking out upside from their recent tight trading range, but as we can see on the latest 6-month chart for GDX (VanEck Vectors Gold Miners ETF), volume on this move was weak and it couldn’t hold it and the gains were completely lost by the end of the day. This action is regarded as bearish. After our successful foray into GLD Puts late in February, which we sold for a triple as gold turned up again, we will be looking at another such option trade on the site shortly.

GDX Chart

Not long ago it looked like a Head-and-Shoulders top might be completing in the dollar and the dip to the 99 area on the dollar index is what drove the modest rally in gold in late March, but it has since bounced back from this key support and it is now looking like the Head-and-Shoulders top may be aborting, an outcome suggested as likely by the now very bearish COT structure in silver. Looking at the latest 6-month chart for the dollar index, we see that key resistance levels for it to overcome in order to negate the H&S top are the red downtrend line, and then more importantly the quite strong zone of resistance in the 102 area. If it succeeds in breaking above these levels, it will have 110 in its sights.


US Dollar Index

The basic rationale of gold and silver bugs for their bullishness on the Precious Metals is that the overstretched fiat money system is set to collapse, and when this happens, gold and silver, as “real money,” will take center stage. While this may be true the trick is in the timing, because the Masters of this system, who are its principal beneficiaries, clearly will much prefer to continue living lives of opulence and privilege, rather than have their heads adorning the railings of public buildings, as could happen if the system implodes and the mob go on the rampage when their “bread and circuses” life comes to a sudden stop, and are thus strongly motivated to “keep the wheels spinning” for as long as possible, and that could be considerably longer than many think.

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 recent articles 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.

Charts courtesy of Clive Maund

Published on Clive Maund’s members-only website March 8.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17384

Rye Patch Restarts Florida Canyon Mine

Source: The Gold Report   04/11/2017

As iA Securities initiates coverage on Rye Patch, the miner receives state approval to start irrigation at the new pad at its Florida Canyon mine.

Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) announced on March 30 that the Bureau of Mining Regulation and Reclamation has approved the commencement of irrigation on the new South Heap Leach Pad of the Florida Canyon mine in Nevada.

According to the company, “mining, crushing and loading of the South Pad are ramping up and are nearing 70% of the forecast production rate coming into the end of the first quarter.” The first gold pour is expected this month and commercial production is expected to commence by mid-2017.”

On April 5 iA Securities initiated coverage on Rye Patch with a Buy recommendation. Analyst George Topping noted that the Florida Canyon project “has been redeveloped for commercial production, at a cost of US$29M, which began spraying in late March 2017. The property includes a 1.1 Moz Au M&I oxide resource that is expected to be expanded through additional exploration of the area. All infrastructure needed for the mine is on site, including power, water, transportation, and manpower.”

Topping recounted progress at the project, writing that the “majority of the tasks needed to restart the Florida Canyon Mine have been completed. The fleet has been refurbished, the first cell of the SHLP pad has been built, the 20K tpd crusher has been moved and upgraded, the pads have been loaded and stacked, and mining and leaching has commenced, with the first blast in November 2016.”

The analyst noted that the Florida Canyon project, based near Reno, Nevada, “would make a good ‘tuck in acquisition’ for Newmont, Kinross, and Barrick, among others. Alternatively, Nevada is host to multiple deposits that would allow Rye Patch to materially grow beyond the currently identified projects.”

Topping expects the project to grow: “With cash flow from the commencement of operations, we expect management to bootstrap the multiple satellite projects into a low cost, sizeable 140 Koz AuEq p.a. producer in the safe, mining friendly Nevada jurisdiction. The area is prospective for additional deposits that should allow further expansion. With cash flow, management will start exploring around its existing deposits, as well as regionally.”

“Rye Patch has a sizeable resource with a solid project pipeline led by experienced management in a mining friendly jurisdiction. Shareholders can find near-term value in the Florida Canyon project starting commercial production this month, and can expect extensive growth further down the line,” concluded Topping.

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

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( Companies Mentioned: RPM:TSX.V; RPMGF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17383

Leagold Mining: Woodyer & Giustra Are Building Endeavour Mining 2.0

Source: The Critical Investor for The Gold Report   04/09/2017

The Critical Investor profiles Leagold Mining, a company that just took over Goldcorp’s Los Filos mine in Mexico.

Sometimes it happens that an asset can benefit from a new set of eyes looking at it from a different perspective. That is exactly what seems to be happening at the Los Filos mine in Mexico. Goldcorp Inc. (G:TSX; GG:NYSE), the previous operator of this mine, decided to focus on other projects due to its new 20/20/20 strategy (in the next five years achievement of 20% growth in gold production, 20% growth in gold reserves and a 20% reduction in our all-in sustaining costs) put in place by new CEO Garofalo, and put the mine up for sale.

Several parties were interested, but Leagold Mining Corp. (LMC:TSX.V) made the winning bid. Leagold appeared to be a special purpose vehicle: created for the sole purpose to acquire this mine in Mexico’s Guerrero Gold Belt. but it is meant for much more. Looking at the company’s management team, built around well-known founders Neil Woodyer and Frank Giustra, the Los Filos mine is the very first step of Leagold Mining. This company is destined to achieve great accomplishments, and the current valuation of the company is definitely just the beginning.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in U.S. dollars, unless stated otherwise.

The company
Leagold just finalized the financing which was completed simultaneously with the acquisition of the Los Filos mine. As the company’s management team is one of the main parts of the investment thesis, I will discuss the executives later in this article.

Trading in Leagold is currently still halted (however, it will resume trading on Monday April 10) as the company has just completed the acquisition of the Los Filos project from Goldcorp. The company is also closing the concurrent financings to fund the purchase and to make sure it has additional working capital to ensure a smooth transition.

After all financings (two equity financings and one debt financing) will have been completed, Leagold will have 151 million shares outstanding, giving it a pro-forma market capitalization of approximately CA$415M, based on the CA$2.75 share price level the company is raising money at. As this acquisition will be a complete game-changer for Leagold, which was a shell until now, the average daily volume should increase pretty fast, making this one of the most liquid companies on the TSX Venture. It doesn’t happen every day to see a shell acquiring a producing asset with an average annual output of in excess of 200,000 ounces of gold, giving it instant cash flow to immediately pursue its growth plans, to advance toward a mid-tier producer.

To read the entire article, click here.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website http://www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

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The Critical Investor Disclaimer:
The author is not a registered investment advisor, and currently has a long position in this stock. All facts are to be checked by the reader. For more information go to leagold.comand read the company’s profile and official documents on sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long term commodity pricing/market sentiments, and often looking for long term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources which more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

Streetwise Reports Disclosure:
1) The Critical Investor: The author, or members of the immediate household or family, own shares of the following companies mentioned in this article: Leagold Mining. The author personally is, or members of the immediate household or family are, paid by the following companies mentioned in this article: None. The author’s company has a financial relationship with the following companies mentioned in this article: None.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

( Companies Mentioned: LMC:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17381