Tag Archives: The Gold Report – Streetwise Exclusive Articles Full Text

Gold: Add a Zero to Your Net Worth

Source: Tom Beck for Streetwise Reports   07/23/2017

Tom Beck, founder of Portfolio Wealth Global, explains why he believes market forces are aligning for a powerful gold trend.

Not since launching Portfolio Wealth Global in June of 2016 have I been sincerely bullish on precious metals.

Gold Could Go Higher

Gold is an important commodity. No other metal is suited to be money quite as flawlessly as gold. Many societies have tried and failed to use other systems, but gold has never wavered or disappointed.

It does, however, go through cycles, based on how much yield cash savings are generating and how stable the monetary banking structure seems to be.

Trump’s elections, surprisingly, boosted confidence for businesses, and the Federal Reserve’s constant teasing regarding rate hikes had calmed investors into believing that things are normal, but the Fed’s reluctance to carry out their multiple rate hike policy has now revealed their real outlook for the economy to us all.

This has caused the start to a short squeeze!

Gold Short Squeeze

In case you’re unaware of what this means, it simply suggests that all the institutions naive enough to bet against gold are going to sell their bets while the gold price rises at the same time.

If you’ve ever wondered what getting hit by a train head-on feels like, call one of these investors today and ask them how their week was.

But I don’t want us to just see our gold bullion position worth more, since I don’t intend on selling my insurance. Instead, I want us to get maximum leverage from this moment because you never know how long it will last.

That’s why I’ve been in Vancouver, British Columbia, for the past few days meeting with the top echelon of the mining scene—especially the gold rock stars.

Since the start of the year, the five-year Treasury yield has risen about 150%. This would put tremendous pressure on the price of gold, under normal circumstances—higher yields raise the opportunity cost of buying gold—but over this same period, the USD has weakened and is now officially in a bear market.

Because gold is priced in dollars, this has been supportive for prices. Year-to-date, gold is up more than 8%.

Crosscurrents Impacting Gold

But, what is truly playing out like in the textbook is that no one is bullish.

This is precisely when you want to be bullish because of this strategy.

If there are any more rate hikes in 2017, the next one won’t be until December. It should be smooth sailing for gold over the next three to four months!

Gold currently has a net long position of only 37,776 contracts. For gold to be trading over $1,250 per ounce with such a small net long position is extremely bullish. At the very beginning of 2017, gold had a slightly larger net long position of 38,923 contracts, but gold was trading for only $1,137 per ounce.

The bottom line is this: The trend is powerful, and you should be ALL IN!

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

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

Disclosures:
1) Statements and opinions expressed are the opinions of Tom Beck and not of Streetwise Reports or its officers. Tom Beck is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Tom Beck 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 provided by Portfolio Wealth Global

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17579

GOLD: It’s Time!

Source: Lior Gantz for Streetwise Reports   07/23/2017

Lior Gantz, founder of Wealth Research Group, believes that fundamentals for precious metals have been confirmed and expects a major rally.

I hate false breakouts. They disgust me, and the entire community despises them!

That’s why for the entire duration of the past week, we’ve been checking and confirming this rally from every angle, and I can tell you that the mother of all short squeezes is upon us.

Gold Short Squeeze

My contacts in Asia (India and China), a fund manager in Russia’s gold inner circle, and the people I’ve been using for years in the European capitals of “old money” (Brussels, London, Vienna, and Monaco) have all vetted this short squeeze and indicated that the paradigm has shifted, pursuing the last Federal Reserve minutes and Yellen’s congressional testimony.

I even called in to some of the larger Swiss bullion dealers, as a would-be customer with a large order, and they informed me that if I want physical shipment, “I should experience severe delays.” One dealer said they had been emptying parts of the vaults they hadn’t used in 14 months!

It’s time to position using your best strategy.

For the majority of the past year since our September 2016 flash alert, “Overbought conditions in gold sector signal the top is probably here,” we’ve implored and suggested to take profits on 2016’s thick gains from your winners.

Since that time, we’ve been cautious, restrained, almost bearish at times, only pounding the table on the most obvious opportunities to scoop up the Rolls Royces of this sector for Mitsubishi prices, but now isn’t such a case.

You see, for 11 months, the market has been consolidating, building up bearish sentiment, shaking out all the thousands of so-called gold investors with a “dabbling in the sector” approach, and even the institutional money has been duped into shorting gold in bulk option contracts right as the market turns.

Net Long vs. Gold Price

They are all about to feel what it’s like to have a herd of elephants run over them!

Gold net long positions hitting an extreme low and the last two times this happened, we saw a 10% move, which would bring about $1,400 in a matter of months.

We’re not holding back anymore and we’re not delicately picking up surgical positions any longer. It isn’t a casual event this time around—it’s time to reap rewards!

Understand that what was missing up until now is a confirmation of fundamentals for precious metals. The threat of multiple rate hikes, coupled with low inflation data, was killing the catalysts for gold. That threat has disappeared from the landscape, so get strapped, as the coming months could be a defining moment for our portfolios.

Get busy researching ways to take advantage of this rare period.

Gold Could Go Higher

At Wealth Research Group, we are going to be publishing exclusive reports on precisely how we are positioning now.

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

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

Disclosures:
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz 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 provided by Wealth Research Group

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17578

Silver Green Alert: One of the Best Buying Opportunities for Years

Source: Clive Maund for Streetwise Reports   07/23/2017

Precious metals are on the threshold of a barn-burner rally, says technical analyst Clive Maund.

There will be no equivocating, fence sitting or any kind of hedging or expression of doubt in what is written in this update. Let me be absolutely clear—we are now at the threshold of a barnburner rally in the Precious Metals sector, and silver is set to scream higher driven by a massive short covering panic, because short positions in it have ballooned in recent weeks to levels way above what we saw in December 2015, when silver hit its final bear market bottom, before the big sector rally during the 1st half of 2016.

We have been on to this for some time, hence the rash of articles over the past couple of weeks on the site recommending various good-looking gold and silver stocks, and we will look at more this weekend. This is truly a massive opportunity, but these low prices are not going to be around for much longer. So, if you want to fully partake of this rally and buy at the current crazy cheap prices, and haven’t done so yet, you had better pull your finger out and get on with it, because this market is not going to wait on your convenience.

Don’t be fooled into thinking that because silver has rallied towards still bearishly aligned moving averages over the past week or so that it must drop back towards its lows again. That huge candle early this month on big volume which we can see on the 6-month chart below was a final capitulation reversal candle—a bottom. While the price has since been edging higher, the COT has continued to improve to the point that it is even more extremely bullish, so we can expect this so far hesitant rally to gain serious traction soon. Even if we do see a dip, which is considered highly unlikely, it would simply make the picture even more positive, although it is now scarcely possible that it can look much more positive than it is already.

6-month Silver Chart

Silver COT Report

The latest silver COT chart shows that Commercial short and Large Spec long positions have fallen even further over the past week, despite the price having risen somewhat. These are now at even lower levels than we saw at the December 2015 bottom. Gold’s are about the same as last week and very bullish too, and for good measure we are just entering the most bullish time of year for the Precious Metals.

So there it is—a massive opportunity staring you in the face, of the sort we haven’t seen since late 2015, and before that for many years. Look out for more stock write-ups over the weekend. Remember that most stocks in the sector are like sheep—they all move together, that’s why when we buy them, we storm in and buy across the board if we see a major opportunity present itself, as it’s doing right now, since there’s no point in chasing them higher if we don’t have to.

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.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17577

Gold in Japan, a Nation Unexplored for Many Years

Source: Bob Moriarty for Streetwise Reports   07/20/2017

Bob Moriarty of 321 Gold profiles a company that may have an inside edge in gold mining in Japan.

Even though Japan, being on the Ring of Fire, has a long history of high-grade gold mines, the industry has been mostly quiet since the middle of World War II when gold mining in the country stopped.

The highest-grade operating gold mine in the world today is located in Japan with a head grade of over 40 g/t gold. That’s the Hishikari Gold Mine located in Kagoshima.

I recently traveled to northern Japan to visit some gold projects owned by Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB). Akiko Levinson runs the company; Quinton Hennigh is a director and technical advisor. Doctor Kuang Ine Lu is the onsite exploration and technical expert.

Akiko Levinson and Quinton Hennigh first got together at Gold Canyon Resources, which Akiko had been running for many years after the death of her husband who was the president and founder. Until Quinton Hennigh stepped in to advise Gold Canyon, the company didn’t make much progress.

Quinton and his team spent eighteen months going over the technical data and rethinking the geological model. In the end the Levinson and Hennigh team took the Springpole gold deposit to about five million ounces of gold. In late 2015 First Mining Finance took over Gold Canyon with the shares eventually reaching a high of $1.31 apiece.

When First Mining took over Gold Canyon they let Akiko spin off the non-core properties into a new company named Irving Resources. This is where it gets interesting and where the opportunity lies. For each 100 shares an investor held in Gold Canyon, they received 3.33 shares in Irving. As a result, there were thousands of shareholders holding tiny positions. Now they were all held at a profit, after all, they were given the shares.

Over the past fifteen months, those tiny share positions have been sold into the market. After all, the investors got the shares for free and could either sell them or buy more shares. This has created an incredible opportunity for patient investors. Seven months ago, in mid-December of 2016 Irving posted a press release saying they had taken grab samples that assayed as high as 480 g/t Au and 9660 g/t Ag. For those who can’t do math in their head, that rock is worth over $24,000 a ton.

Fourteen of the samples graded over 10-g/t gold and thirteen samples graded over 200-g/t silver. If those were significant intervals of drill core, the stock would have doubled over night. The stock didn’t do anything, proving that no one reads press releases. I did an interview in late December and that finally moved the shares off top dead center. They did double overnight.

Since January of this year, the share price has drifted lower and people who put in stink bids, such as me, have been able to make a decent position in an incredibly illiquid company. 88% of the shares are closely held by the strongest of strong shareholders in a dozen hands.

On the tour we went to where the original samples were taken. From the press release I was given the impression that Irving had taken over a couple of the old gold mines in Hokkaido and there would be a lot of exploration required.

On the Omui project, Irving did a deal on an existing 2.98 square km mining license with the long-term license holder. They also filed thirty-nine prospecting applications covering about 132 square km. We traveled to see the small mining license where the owner had dug a small trench to show us the high-grade veins. That pretty much blew me away. I had gotten the impression Irvine needed a lot of time and money spent on preliminary ground exploration.

Wrong. The high-grade vein was covered with six inches of dirt. The material was identical to pictures Quinton sent me when he put out the press release in December of the $24,000 rock. And fifteen feet away, there was another identical high-grade vein. Apparently when the mine was in production they had so much material to mine, they just didn’t bother with a lot of the veins.

It’s going to take time and patience to put together all the permits for Japan. After all, there is no infrastructure in place; it’s been seventy-four years since serous gold mining took place in the country notwithstanding Hishikari. The bureaucrats to sign the approvals for exploration and mining literally have to be trained.

But once the permits are in place, Irving is prepared to go right to mining. Japanese are very sensitive about the use of cyanide and it probably would be impossible to get a permit for the use of cyanide. Irving plans on doing exactly what Hishikari does, they will ship the silica rich ore directly to a smelter. They can get $80 a ton for the flux and would be paid 95% of spot on the gold and silver. That doesn’t sound like much but when ore is used as flux there is essentially a 100% recovery. No matter how good the ore or how good the mill design, 95% recovery is always exceptional.

While we were at the Omui projects Irving management learned that the owner had brought in an excavator years before and done a serious trench across hundreds of meters of the forest service road. The Forest Service had a fit and demanded he fill it back in at once. He did but he took pictures and made up a map of the multiple veins he found. Later in the evening we looked over the documents and it was pretty obvious that if you could learn how to fall off a bike, you could spot drill holes at Omui. The property has multiple high-grade veins that come near surface and are close together.

When the permits arrive, Irving will drill and the results will be spectacular. However with a mining license already in hand, they will be shipping ore right away. If you can bring in a D-11 or big excavator and immediately start producing revenue, you don’t need to wait for a 43-101, you can get right to it.

The company is more than well cashed up with $6.5 million Canadian in the bank and about 14 million warrants, all in the money. That would bring in another $5.6 million. If they can’t get into production and develop a resource for $12 million, they are in the wrong business.

This company is the perfect team. In Japan they have the foremost geologist in the country working for them. The president of the company, Akiko Levinson, is Japanese. Their lead advisor, Quinton Hennigh is, in my mind, the best geologist in the world. He has a history of creating wealth for shareholders working with Akiko. They have money; they have a mining license on a known high-grade gold and silver property.

And according to Quinton, on one of their other nearby projects, they have a sinter that shows gold, covering something interesting. He’s dying to start punching some holes in that sinter. In Nevada some of the highest-grade gold mines are epithermal vein systems covered by a sinter.

One day soon the weak hands selling their shares cheap are going to dry up and over night with no news, the stock is going to double. When their permits come in and they start shipping flux, it’s going to double again.

Irving is not an advertiser. I do own shares so I am biased as I can be. I don’t share in your profits so I can’t share in your losses. Only you can be responsible for your own investment decisions.

Irving Resources
IRV-C $0.70 (July 20, 2017)
IRVRF OTCBB 31.9 million shares
Irving Resources website

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

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

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Irving Resources. Irving Resources is not an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: IRV:CSE; IRVRF:OTCBB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17574

Nevada and Canada Miner Reports Q2 Production Up 94%

Source: Streetwise Reports   07/20/2017

Preliminary Q2 operating results show production up 94% and sales up 107%, a record for this company’s Nevada and Canadian mines, news that was noted by a trio of industry analysts.

Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) released its second quarter operating results on July 18, reporting record production and sales. The company noted that it produced 66,629 gold equivalent ounces, a 94% increase from the first quarter, and sold 69,522 ounces, a 107% increase from Q1.

Mr. Paul Huet, Klondex’s president and CEO stated, “As expected, the operating results for the second quarter were the best in the company’s history. We processed all of the ore that was stockpiled at the Midas mill at the end of the first quarter plus we continued to execute our mine plans, mining an additional 53,248 gold equivalent ounces in the second quarter.”

Analyst Heiko Ihle of Rodman & Renshaw noted in a July 19 company update that the large quarterly increase was “mainly due to a significant increase of production from Fire Creek, which we attribute primarily from the processing of stockpiled ore. . .the company plans on processing Hollister ore through the Midas mill in 2H17, and therefore remains on track to meet 2017 guidance. We highlight that our model estimates 2017 production to reach 219,000 gold equivalent ounces, in-line with management’s 2017 production guidance.”

Ihle also stated that at Fire Creek, production “totaled 45,773 gold equivalent ounces, a 138% increase over 1Q17 production. We note that 1Q17 production at Fire Creek was negatively impacted by heavy snowfall that limited the amount of mined ore the firm was able to transport to its Midas mill.”

Rodman & Renshaw’s report reiterated the firm’s $6.25 per share target price. Klondex is currently trading at around $4.31.

Analyst Josh Wolfson of Eight Capital wrote in a July 19 report that “production results represent a material improvement from 1Q, and exceeded our expectations.” He noted that “corporate production nearly doubles QoQ, aided by Fire Creek stockpile processing,” which was 9% over Eight Capital’s estimate. “Overall, production results represent a material improvement and near doubling from 1Q realized production of just 34.5 koz, which was largely impacted by ore transportation logistics issues due to weather at Fire Creek, as well as by equipment issues at True North,” the report noted.

“While we believe ramp-up uncertainties remain at True North and Hollister, in our view 2Q results position the company favourably to achieve corporate full year production guidance,” Wolfson stated.

Eight Capital’s target price for Klondex is $5.25 per share.

PI Financial analyst Philip Ker, in a July 19 report, stated that “Klondex Mines provided a solid production beat for Q2/17 realizing 66,629 oz AuEq versus our target of 62,425 oz AuEq.”

“In our view, achieving guidance is hinged on Klondex’s two development assets Hollister and True North—both of which have achieved little to no production YTD. Hollister is in ramp-up mode with stockpiled ore. Both operations are anticipating increased tonnage output and head grades in the coming quarters in order to support their current guidance levels. Given the early stage of these operations, the ramp-up is a challenge but Klondex should still be able to adequately meet consolidated guidance of 210,000—225,000 oz AuEq.”

PI Financial maintains a target price of $5.05 for Klondex.

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, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Klondex Mines Ltd. 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: KDX:TSX; KLDX:NYSE.MKT,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17573

Acquisition of Canadian Gold Company Contributes to Pressure on Stock

Source: Streetwise Reports   07/20/2017

In resuming coverage of Eldorado Gold following the acquisition of Integra Gold and its Lamaque property, BMO Capital Markets analyst Andrew Kaip looked at the impact of the move, as well as at other factors pressuring Eldorado stock.

In a BMO Capital Markets July 10 research report on Eldorado Gold Corp. (ELD:TSX; EGO:NYSE), analyst Andrew Kaip wrote, “While we view the Integra acquisition as neutral, based on the benefit of future tax synergies and/or demonstrated resource growth, we expect it will take time for ELD to overcome the perception that it overpaid for Integra,” adding that “benefits of the acquisition also include a step towards diversifying growth away from Greece. We now expect Canada to contribute ~30% of growth over the next 5 years, compared with Greece at ~60%.”

After acquiring Integra on May 15, “shares of ELD have declined 33% versus a 7% decline in the GDX and a flat gold price,” Kaip stated. “We typically expect shares of the acquirer to come under pressure as investors arbitrage the deal. However, shares of ELD have continued to underperform relative to peers owing to a number of external events that have placed selling pressure on shares of ELD.”

Those external events included “index deletions, Greek arbitration and more recently the production revisions at Kisladag,” the report notes, adding the company “would not meet its original 2017 guidance at Kisladag at 230-245koz, due to higher-than-expected cyanide requirements in the heap leach. Revised guidance was established at 180-210koz in 2017, and the company expects to recover gold ounces in 2018 that were deferred from 2017.”

Despite the downturn in the stock, “in our view, the move to purchase Integra looks to be well timed, as it begins the process of diversifying jurisdictional risk away from Greece to lower-risk operating countries,” Kaip stated.

BMO’s investment thesis notes that “While ELD represents a compelling opportunity on valuation relative to peers, the company’s capital-intensive and execution-exposed development strategy combined with residual concerns over Greek exposure are likely to leave investors on the sidelines until the company succeeds on delivering on growth.”

BMO has a Market Perform rating on Eldorado and a target price of $4.00 per share. The stock is currently trading around $3.13.

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) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) 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: ELD:TSX; EGO:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17572

Explorer on Target to Issue Upgraded Resource by Early Fall

Source: Streetwise Reports   07/20/2017

Southern Silver Exploration’s core drill program at Cerro Las Minitas in Durango, Mexico, is coming to an end and the company sees the potential for a substantial resource upgrade, say Robert Macdonald, Southern Silver’s VP for Exploration, and Jay Oness, VP for Investor Relations. In this interview with Streetwise Reports, they also discuss the recently acquired additional claims, the Oro project in New Mexico and the JV with Electrum.

The Gold Report: Thank you for joining us today. Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) is nearing the end of its 2016-2017 core drill program at Cerro Las Minitas in Mexico. What has the drilling revealed?

Robert Macdonald: We are currently drilling two holes and will probably drill one or two more before the end of the program. The total meterage will be over 12,000 meters (12,000m) for the entire program that started late last fall. The focus of the program has been to test deeper targets that occurred beneath the currently known deposits, the Blind and the El Sol zones.

The current program was successful in delineating a significant mineralized zone beneath those deposits. This target now has an approximate strike length of 650m and a width of up to 350m. This is a significant addition to what we identified previously and will contribute to increasing the mineral resource, which we anticipate updating in early fall 2017.

The other significant aspect to the results that we have had to date has been some very encouraging grades and thicknesses. We previously announced 14m thick intervals of 288 grams per tonne (288 g/t) silver, 2% copper and 2% combined lead-zinc. We have other significant results coming from there, including 9m 600 g/t silver and 25% combined lead-zinc.

So, not only are we seeing some good thicknesses, we’re also seeing very extensive mineralized zones overall and some higher grades than what we had seen earlier in the program. It’s all very encouraging.

TGR: When do you anticipate getting the last results from this program?

RM: We expect to finish the program around the end of July. About three weeks after that should be the publication of the final results. And then, in relatively short order after that, we’d like to have an updated resource calculation. We have been feeding the data to the resource modeler, the same person who did the maiden resource back in March 2016. We’re trying to stay up to date on it, so hopefully it’ll be a relatively quick turnaround when we get the final results.

TGR: You recently acquired additional strategic mineral claims adjacent to the Cerro Las Minitas claims package. Can you tell us about these claims and what drilling you have planned for them?

RM: These are the Biznagas and Los Lenchos claims, which are contiguous to the southern and western boundaries of the Cerro Las Minitas claim block. This was an area that we were directed to by two very prominent prospect generators, Bud Hillemeyer and Perry Durning of La Cuesta International Inc., who have had tremendous success in Mexico over the last two or three decades. These were the explorers who identified Hecla Mining Co.’s (HL:NYSE) San Sebastian mine, which is located on the eastern boundary of our claims. They also identified Argonaut Gold Inc.’s (AR:TSX) San Agustin deposit, located 25–30 kilometers (25–30 km) to the northwest of our property. They identified other major deposits throughout Mexico, including Silver Standard Resources Inc.’s (SSO:TSX; SSRI:NASDAQ) Pitarrilla deposit and the Camino Rojo deposit. These two individuals have been the premier mine finders in Mexico over the last several decades.

We were on a recent property tour with Bud and Perry in January. They relayed that they had previously collected some anomalous samples to the south of our property and asked if we would be interested in seeing the data and working out an agreement with them. So, we did that.

The data show some anomalous silver arsenic and antimony values, which are fairly classic pathfinders for epithermal deposits. We went in and did more due diligence sampling. We confirmed some of those early results and staked the ground, approximately 100 square kilometers (100 sq km). We’ve started sampling it more intensely, mainly float sampling and grab samples on surface. We’ve now collected over 700 samples.

We have results from around 400 samples so far and have about 300 sample results pending and have identified some fairly significant anomalies over a 5 km-long trend. We’re seeing clusters of anomalous silver and gold mineralization, as well as the previously mentioned pathfinders of arsenic, antimony and mercury. These are important, as they are indicators of a vigorous epithermal-style mineralization active throughout this area. This might be similar to the aforementioned San Sebastian style of deposit, which is located to the east, or maybe more significantly, the Avino Silver & Gold Mines Ltd. (ASM:TSX.V; ASM:NYSE.MKT; GV6:FSE) gold-silver deposit, which is located around 15 km to the northwest of the Biznagas and Los Lenchos claims.

We’re pretty excited about that and are continuing to develop those targets through conducting high-density grab sampling to vector in to where we need to be. The plan is to do a drill program this fall. It would probably be a reverse circulation drill program that would do the initial testing on some of these targets.

TGR: Let’s switch over to New Mexico and the Oro project. Southern Silver recently announced the start of airborne Z-TEM survey and surface work. Would you tell us about that?

RM: The Oro project is the second property within our portfolio; Cerro Las Minitas is the flagship and more advanced while Oro is at a much earlier stage. It appears to be a large, Laramide-aged porphyry copper-molybdenum system similar to some of the major deposit types that occur throughout New Mexico and Arizona.

What’s striking about this particular property is a very large zone of quartz, sericite and pyrite alteration that can be traced on surface for about 6 sq km. This is a tremendously large alteration footprint and much larger than the footprints of some of the major mines in Arizona. So, it attracts a lot of attention.

On the margins of that, we also have a gold target that we like, which we call the Stock Pond gold target. This is potentially the classic zonation that one sees in these large, very robust porphyry systems. And the analogy that we look at is the Barneys Canyon and Melco gold deposits and their relation to the Bingham Canyon porphyry copper deposit in Utah: A big porphyry center and about 3–4 km outboard, bulk-tonnage, oxide gold deposits.

That’s what we think we’re seeing here on the Oro property, a big porphyry center that has yet to be fully tested and drilled out, and outboard from that, a shallow, oxide gold target that occurs on the outer fringes of the mineralizing system.

So we have two targets there. At the porphyry target, we’ve completed data compilation by a Ph.D. porphyry specialist out of the University of British Columbia. He has identified two main target areas from the surface geochemistry and the alteration on the property. We’ve started a 300-line km Z-TEM program over the property, which is in process and nearing completion. The idea is to generate another targeting criterion, deep-seeing geophysics, that can help resolve some porphyry targets on the larger property package. This we think would make it more amenable to getting a major involved to explore the property and put in the big bucks that are generally required to drill a porphyry target.

In the meantime, we think that we can add value to the company by doing relatively inexpensive exploration on the Stock Pond gold target. Here, in the fall of 2016, we completed a nine-hole program, which identified a 40m interval of 0.4 g/t gold in drilling on the eastern margin of our drill pattern. This included a 9m interval of 0.75 g/t gold. This hole is open to the east, north and south.

We are now in the final stages of permitting an additional nine holes targeting a 500m by 800m area to the east of that mineralized hole with the intent of testing for a good oxide gold, bulk-mineable target on the project. It’s relatively low cost. We’re looking at a $300,000 to $400,000 total budget for both the geophysics and the drilling on the Stock Pond target. We think that we can upgrade the targeting and the property and add value to the company with those efforts.

TGR: When do you expect to do this second drill part?

RM: We would anticipate the start of drilling in mid-September.

TGR: Could you tell us a little bit about your joint venture arrangement with Electrum Global Holdings L.P.?

RM: We started down the path with Electrum in the beginning of 2015. We are very pleased with how we’ve been able to advance the project together.

In early 2015, we announced a deal where Electrum would earn 60% interest in the Cerro Las Minitas project by spending $5 million over a four-year period. It has also come in and took an equity interest in Southern Silver as well. So, it’s supporting us both with efforts on the property as well as corporately.

Electrum has been very aggressive in pursuing the property and very aggressive in deploying its investment into making the resource bigger. It had four years to spend $5 million and has done it in two and a half. When we started with Electrum, internally we felt we had maybe a 5–6-million-tonne (5–6 Mt) deposit drilled and ready to do a resource model. With Electrum’s initial investment in the project, we ended up doubling our projection to 10.8 Mt. In this last round of drilling, we think we’re going to significantly add to our existing resource with the latest results that we’ve released.

So we’ve been nothing but happy with how things have progressed with Electrum. It is an aggressive explorer and, like us, it wants to see how big this project can be before we start making any sort of development decisions or doing the predevelopment work that’s necessary to bring things to a production decision.

We’re the operator, too. So Electrum is very happy with the way that we’re advancing the project. I think it’s a win-win for everybody.

Electrum is seeing the value of its investment in the project go up. Since it came onboard, the company has gone from $0.05 up to as high as $0.60, $0.65. We’re now sitting in the $0.35–0.40 range. Electrum is not only seeing that we are creating value in the property, but also seeing its investment in the company get more and more valuable as we continue to advance the project.

TGR: You’re in the process of doing a brokered private placement. Would you tell us about that?

Jay Oness: Rob and I had arranged for a number of meetings prior to the Prospectors & Developers Association of Canada’s annual meeting this year with the intent of introducing the company to the institutional side of the equation. We recognize, with us being in the joint venture situation with Electrum, that as we go forward, we’re now going to be required to put up our share of the funding, which would be 40%. We then began to look for a strategic partner or partners to support us as we go down that path. We had excellent meetings. We had a number of institutions give us positive feedback with the result that there were a couple that were interested in discussing acting as a lead agent for a $5 million financing.

That resulted in us entering into an agency agreement with Gravitas Financial. Since we began undertaking this financing, we’ve been able to close 50% of it through our president’s list and through the participation of Electrum maintaining its percentage of ownership corporately. We’re now in the process of introducing the company through Gravitas and the syndication. It is a $5 million unit offering, at $0.40 per unit with a full warrant for three years at $0.55. There’s no acceleration or any onerous clauses to the warrant side of the equation.

We look at this as being an excellent opportunity. The company’s last financing back in March/April of 2016 was done at $0.10. Obviously, all of our shareholders and investors in that offering have been very pleased. We’ve had a number of them come back into our market. A number of them exercised in warrants. We’ve been able to demonstrate that through our efforts on the ground and the kind of results that we continue to show and through an aggressive investor relations program, which entails exposure globally actually, we’re able to maintain a retail element to the market. Even during the doldrums of summer right now, we’re able to still maintain our offering price of $0.40.

I think that this financing will put us in a position with an institution or institutions that at some point may take a larger interest in us. But at the same time, it’s going to be a necessity as we anticipate our share price will hopefully climb—and I believe it will with continued exploration success—to have these institutions continue to support us with what we anticipate to be a pretty aggressive exploration program leading into potential development studies and maybe a production decision sometime over the next two or three years.

TGR: Thanks for your insights.

Robert W.J. Macdonald is the vice president of exploration for Southern Silver Exploration. He is also the vice president of geological services for the Manex Resource Group of Companies, and in such capacity has been the Exploration Manager for several publicly listed companies including Homestake Resource Corporation (formerly Bravo Gold Corp.), Valterra Resource Corporation, Duncastle Gold Corp. and Fortune River Resource Corp. Macdonald has overseen the exploration of many projects throughout North America including the discovery and delineation of the high-grade 1.2 million ounce Homestake Ridge Au-Ag deposit in northern British Columbia and is currently advancing Southern Silver’s 10 million tonne Cerro Las Minitas Ag-Pb-Zn project, Durango State, Mexico. Macdonald graduated with a B.Sc. (Hons) from Memorial University of Newfoundland in 1990 and earned a MSc. from the University of British Columbia in 1999.

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Disclosure:
1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, securities of the following companies mentioned in this interview: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) Southern Silver Exploration Corp. is a sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclaimers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Southern Silver Exploration Corp. had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Robert MacDonald and Jay Oness and not of Streetwise Reports or its officers.
4) Robert MacDonald and Jay Oness: We were not paid by Streetwise Reports to participate in this interview. We had the opportunity to review the interview for accuracy as of the date of the interview and are responsible for the content of the interview. We own shares of the following companies mentioned in this interview: Southern Silver Exploration Corp.
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( Companies Mentioned: SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE,
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from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17571