Archive for Commodities & Metals

Full Stream Ahead with Small-Cap Royalty Company

By The Gold Report

Source: Peter Epstein for Streetwise Reports   07/18/2018

Brett Heath, CEO of Metalla Royalty & Streaming, speaks with Peter Epstein of Epstein Research about the company’s rapid growth and its most recent acquisition.

The following interview of Brett Heath, CEO of Metalla Royalty & Streaming Ltd. (MTA:TSX.V; EXCFF:OTCQB) was conducted by phone and email over a one week period ended July 18th. Metalla is a small-cap precious metals royalty/streaming company. The investment thesis, in my opinion, is that someday it will be acquired by a larger player in the sector.

In the meantime, it trades at roughly one-third the valuation of peer industry giants. Brett and his accomplished team are growing the company rapidly via prudent transactions that diversify risk and appear to have highly attractive return profiles. Corporate presentation is available here.

I’ve written a few articles on Metalla Royalty & Streaming and I’m happy to report that management has delivered on its promises. It was up-listed to tier 1 on the TSX.V, instituted and has already increased a monthly cash dividend, made accretive deals and has several more in the works, including Valgold Resources. Metalla has secured several new team members and closed a blockbuster transaction with prominent mid-tier miner Coeur Mining.

Without further preamble, here’s my exclusive interview with President and CEO Brett Heath.

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Brett, when we first met, you had a couple of early stage royalties and a C$10 million market cap. Now you have a growing portfolio of producing, development and exploration royalties/streams and a C$60 million market cap. How were you able to do this?

As far as mining investments go, it’s hard to beat the stability of precious metals royalties. Just look at companies like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) or Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX). They have significantly outperformed traditional mining companies and the underlying gold price over the last decade.

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That success created an opportunity that Metalla, just 1/200th the average market cap of those three, has been able to capitalize on. Our size allows us to look at hundreds of royalty and streaming deals that aren’t big enough to move the needle of larger companies.

Our third-party acquisition strategy has allowed us to pick up royalties on projects operated by multi-billion-dollar companies like Goldcorp, Pan American Silver, Tahoe Resources, Agnico Eagle, TOHO Zinc and Osisko Mining (not to be confused with Osisko Gold Royalties). These strong operators will drive big premiums for Metalla shareholders as we continue to add more royalties and streams to the portfolio.

How important is your team? You say that you benefit from smaller, more attractive transactions, but the Majors have deep pockets and access to top-notch financial advisors and mining experts.

Our team is critical. Every deal is different. Each requires specific expertise once you get down into the details. That’s why we have a strong, full-time team and we also retain consulting experts to help us solve unique problems in the deal process. This means we have access to the same caliber of legal, technical and financial (tax/accounting, etc.) people as our much larger peers, but without the bloated payroll.

Among our officers and directors we have decades of experience in all facets of the mining industry. We also have an expansive network to tap when we need a technical geologist, engineer or metallurgist to perform specific jurisdictional and mining due diligence.

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On our board is Frank Hanagarne, Sr. VP and COO Coeur Mining. Coeur Mining (NYSE:CDE) has an EV of C$2.3 billion and vast experience with operating mines in North Americas. As you can imagine, having the COO of a successful mid-tier precious metals company on our board is extremely useful. Frank was also an executive at Newmont during the formation of Franco-Nevada, so in addition to having a strong technical background, he has in-depth knowledge and understanding of the royalty and streaming space.

We also have E.B. Tucker and Lawrence Roulston, two well-known mining industry analysts/financiers/investors with admirable track records and amazing industry contacts.

We recently appointed Alex Molyneux to our board. He has a tremendous amount of direct deal-making experience and was the head of Metals and Mining Investment Banking, Asia Pacific for Citigroup in Hong Kong. Alex lives in Taiwan and has a remarkable network of contacts, especially across Asia, that should help propel Metalla forward.

Drew Clark is our VP of Corporate Development, he previously worked for Premier Royalty, which was taken over by Sandstorm Gold.

Your most recently announced deal is the outright acquisition of Valgold Resources (expected to close within a month). Please tell readers about this deal.

Valgold Resources (TSX-V:VAL) is an excellent example of our business model at work. It’s an all-share transaction, so we’re not laying out any cash. Metalla’s share price has outperformed our peer group, so we don’t mind issuing a relatively modest number of new shares to lock down a highly attractive gold royalty on a potentially world-class project in the tier-1 mining jurisdiction of Ontario, Canada.

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The Garrison Gold project is operated by Osisko Mining, a proven mine builder. Garrison is an essential project for them. We think uncapped upside on our 2% NSR is very exciting and could produce a long-term return that’s much higher than the base case scenario.

Metalla recently provided attributable silver equivalent guidance for the fiscal year ending May 31, 2019. Can you walk us through your thinking?

We expect sales to be roughly 500,000 to 600,000 silver equivalent ounces (attributable to Metalla). That compares to about 520,000 ounces in the year ended May 31, 2018. Keep in mind, that’s what we expect from our existing portfolio, it does not include potential acquisitions.

We continue to work on a number of new deals, some of which on assets very close to, or actually in production. In our guidance we indicated annual revenue could be C$9–C$12 million. That’s based on 500–600k attributable ounces of silver, an exchange rate of C$1.25/US$1.00 and an average silver price of US$16.50/oz.

Based on our FY 2019 guidance, and assuming that the Valgold transaction closes, we’re trading at an Enterprise Value (market cap + debt – cash) to Revenue ratio (EV/Rev) of about 6–8 times. The EV/Rev ratio averages about 18 times for our larger competitors. So, Franco-Nevada, Wheaton Precious Metals, Royal Gold and Sandstorm (on average) trade at nearly three times our valuation. That means there’s lots of room for share price appreciation in our opinion.

Okay, thanks for that, I was going to ask you about Metalla’s valuation vs. peers. . .

Yes, we trade cheap vs. larger peers. To be fair, they are more established and deserve to trade at a premium, but our shareholders believe the valuation gap will shrink as we continue to add more royalties and streams. We’ve closed eight transactions since we first met less than two years ago. If we keep that pace, shareholders won’t have to wait long.

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In the meantime, we pay a cash dividend. The current yield is 2.4%. That’s higher than all the precious metals royalty/streaming peers. And, we pay that dividend monthly. We want our shareholders to feel like “Gold Landlords” receiving tangible cash every month.

Please tell us more about your dividend policy, shouldn’t a fast growing company retain its cash flow to plow back into growth?

Generally, yes, which is why we don’t pay out all of our profits in the form of dividends. However, dividends are a critical part of total investment returns. Our shareholders funded the business, and they deserve a portion of the profits we generate. We expect to continue growing our dividend (but not all at once) until it reaches a payout ratio of roughly 50% of free cash flow. As a reference point, our payout ratio will be about 30% of free cash flow after ValGold closes.

One more important point to consider is that a cash dividend creates a unique check on management’s behavior. Our board feels strongly that companies not paying dividends tend to be less successful asset buyers over time.

This philosophy seems to be popular so far. Our stock price is holding up nicely in what’s been a tough year for gold and silver so far.

Thanks Brett, that was very helpful. Good luck with your upcoming acquisitions. I look forward to my monthly dividend checks. For more on Metalla Royalty & Streaming (TSX-V: MTA) / (OTCQB: MTAFF) please check out the corporate presentation.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis, and he is a Chartered Financial Analyst (CFA). He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

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Disclosures: The content of this interview is for illustrative and information purposes only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research, [ER] including but not limited to, commentary, opinions, views, assumptions, reported facts, estimates, calculations, etc. is to be considered implicit or explicit, investment advice. Further, nothing contained herein is a recommendation or solicitation to buy or sell any security. Mr. Epstein and [ER] are not responsible for investment actions taken by the reader. Mr. Epstein and [ER] have never been, and are not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they do not perform market making activities. Mr. Epstein and [ER] are not directly employed by any company, group, organization, party or person. Shares of Metalla Royalty are speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they consult with their own licensed or registered financial advisors before making investment decisions.

At the time this article was posted, Peter Epstein owned shares in Metalla Royalty and the Company was an advertiser on [ER]. By virtue of ownership of the Company’s shares and it being an advertiser on [ER], Peter Epstein is biased in his views on the Company. Readers understand and agree that they must conduct their own research, above and beyond reading this article. While the author believes he’s diligent in screening out companies that are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. Mr. Epstein & [ER] are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article. Mr. Epstein & [ER] are not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Mr. Epstein and [ER] are not experts in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: Wheaton Precious Metals. 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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Metalla Royalty, Wheaton Precious Metals and Franco-Nevada, companies mentioned in this article.

Charts and graphics provided by author.

( Companies Mentioned: MTA:TSX.V; EXCFF:OTCQB,
)

Pass the Moonshine

By The Gold Report

Source: Michael J. Ballanger for Streetwise Reports   07/18/2018

Precious metals expert Michael Ballanger discusses down periods in the gold and silver markets that presaged large gains.

There was a time not very long ago when hard work, honest execution, determination and honor contributed to financial security. In special cases, extraordinary application of those four practices resulted in financial windfall, as in the case of the visionary entrepreneurs from Benjamin Franklin to James Watt to Henry Ford to Bill Gates and Steve Jobs.

In the 1980–2000 era, enormous fortunes were also created by those men and women daring enough to use funds from private investors to allow them to carry out and complete geological theories resulting in massive discoveries, be it in oil and gas or minerals. The early investors in many of Murray Pezim’s (a Toronto-born butcher turned Vancouver mining promoter) deals lost heavily but those that stayed with him were made ridiculously wealthy with the Hemlo and Eskay Creek gold discoveries of the 1980s. Robert Friedland’s Galactic Resources filed for bankruptcy in 1992 but investors loyal to Friedland in 1994 wound up owning Diamondfields and by 1997, it was taken out by Inco for $4.3 billion after the Voisey’s Bay nickel discovery.

Now, the biggest discovery I was ever involved with as a corporate finance executive was the Mountain Province discovery of 1995 where 3.76 ct/t was considered “$1,000 (per tonne) rock!” and I was rewarded by a jump from $0.39 (where we funded it) to the ultimate peak $9.75/share. Today, with zinc at $1.36/lb. after literally decades in the $0.50s and $0.60s, the value-per-tonne of a 10% grade intercept is noteworthy and similarly, with gold at $1,260/ounce versus $300–400/ounce where it resided for most of the 1990s, a 6 g/t intercept is a big deal because most of the deposits are lucky to carry sufficient scale and continuity in order to qualify as economic.

However, today, unlike the 1980–2000 period, massive intercepts are treated as “leper colony” events and are a clarion call to “SELL! SELL! SELL!” because there is absolutely no marginal buyer cognizant of the long-term accretive powers of a major discovery (which add more reserves to inventory) that will go to his/her board of directors with a scrap of Bloomberg Terminal ticker tape pitching it on the basis of being “good for our company.”

To wit, look at the past thirty days where these results were reported:

June 27th: Fremont Gold Ltd. (FRE:TSX.V) Gold Drills 25.9m @ 4.66 g/t Au at Gold Bar Project, Nevada

Stock spikes to $0.22 in March on speculation and to $0.18 the day of the announcement; four trading days later the stock trades down to $0.12.

June 26th: Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) drills 10.4 meters grading 44.0% zinc in new discovery of exceptional zinc grade at Ayawilca

Stock trades 2.7 million shares immediately after the announcement and then sells back down to within pennies of its recently completed $0.485/unit private placement.

June 28th: American Pacific Mining Corp. (USGD:CSE;USGDF:OTCPK) Drills 16 g/t Gold over 1.5 Meters at Tuscarora

Stock opens immediately after the NR at $0.215 then sells down to $0.18 and closes $0.19 on 670,250 volume.

This latter company is included because it is a company actively covered by Bob Moriarty of 321gold.com and it really shows you just how rotten sentiment is when even one of his sponsors can’t catch a bid.

Conditions such as these are symptomatic of market bottoms where gargantuan amounts of fear have replaced smidgeons of greed in setting the tone for reactions to positive exploration news. This condition is diametrically opposite to what we encounter in the overall stock market where negative news are greeted with a persistent “Buy the dip” mentality, the product of incessant, predictable interventions by government-policy-directed trading desks of the major banks. Retail investors have been trained in a Pavlovian sequence of behavior modification resulting in well engrained neural responses to stocks and gold fed and fueled by the MSM and championed by the bank-sponsored cable networks led by CNBC.

Adding insult to injury, the new generation of investors led by the Generation X, Generation Y (echo-boomers) and Millennials, with the prior two setting the standard for and handing down the investing baton to the latter. Take the Generation Y group, born between 1970 and 1990. They are now considerably larger than their Gen X predecessors (the “baby-bust generation”) but they are now between 18 and 38 and represent the vast majority of new investors AND investment managers. Furthermore, they have grown up during a period of financial entitlement, where government bailouts protect stocks at the risk of immense moral hazard, the nature of which is being felt and witnessed by subdued attitudes toward risk and elevated expectations toward reward. They forge ahead as a thundering herd of demographic chaos, buying companies with zero earnings and enormous debt (Tesla?), gravitating toward the technology sector due to their considerable familiarity with its products, and pushing prices and valuations to the absolute extreme of any and all valuation metrics with full expectations of winning. And guess what? Since the 2007–2008 GFC, that strategy has been 100% effective because by aligning themselves as a voting bloc of investment consensus, they are able to control downside reactions and manage upside probes through Twitter and Facebook, text messaging and email. And, of course, with the full support of the U.S. Fed, the BoJ, the BoC and the ECB.

So in trying to come to grips with my dismally performing junior mining portfolio of explorers and developers, I have reached the stage where I am finally contemplating capitulation and surrender. I am a hair’s breadth away from throwing in the proverbial bloodstained towel and avoiding the gold and silver sectors in the interest of capital preservation and survival. Now, having said that, I would also remind you of a similar notion communicated (with high anxiety and largely incoherent phrasing) through this publication in the fall of 2015 with gold threatening to once again move below the $1,000/ounce level. What immediately followed was a rally off the lows and the 2015–2016 returns from bottom to top were as follows:

December 1, 2015 to Sept 1 2016
Senior gold miners: up 108.74%
TSX Venture exchange: up 51.68%
Silver: up 34.73%
Gold: up 23.79%
S&P 500 (stocks): up 5.88%

Needless to say, a rip-roaring advance by all measures…

In today’s missive, I began with how and why sentiment for junior exploration issues has become so jaded and I finish with an illustration of how sentiment for junior explorcos can be the ultimate buy signal when used as a contrarian indicator. In the summer of 1999 with gold at $250 and the TSX Venture under 1,000; in Oct 2008 with gold at $681 and the TSXV at 686; in 2015 with gold at $1,045 and the TSX.V at 479, sentiment was identical to where we are today. The chart posted above shows you EXACTLY what happened afterwards and for the next nine months after the lows of December 2015, gold and silver and gold and silver stocks (senior, juniors and explorcos) MASSIVELY outperformed the U.S. stock market.

Are we truly there now? Well, if the newly expanded capacity of my liquor cabinet and medicine chests are any type of indicator, then we are there, in spades. If my inability to locate my trusty Fido and my significant other since late June are any indication, then we here, at the bottom. Finally, if the number of trashed quote monitors, Larry Kudlow dartboards, and Jim Cramer voodoo dolls are any indication, welcome to the world of limitless opportunity and soon-to-become riches by investing in precious metals and their equity space counterparts.

Pass the moonshine…

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report interviews 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 interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Tinka Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: American Pacific Mining. Click here for important disclosures about sponsor fees. 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. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Pacific Mining, a company mentioned in this article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: USGD:CSE;USGDF:OTCPK,
FRE:TSX.V,
TK:TSX.V; TLD:FSE; TKRFF:OTCPK,
)

The Unstoppable Force in British Columbia

By The Gold Report

Source: Andrew O’Donnell for Streetwise Reports   07/18/2018

Andrew O’Donnell of Supercharged Stocks discusses a gold exploration company that should start receiving summer drill results shortly.

Juggernaut Exploration Ltd.’s (JUGR:TSX.V) stock has been getting a lot of attention from many industry heavyweights, newsletter writers and senior mining analysts who are considered experts in the mining sector. Quiet enthusiasm has been growing and this is being reflected in the price and volume of the stock traded. Subscribers who got in at around $0.20, when I started covering Juggernaut (February 28, 2018) are asking if it is time to add to their positions as drilling is about to commence. Now, I cannot answer that for each individual, but what I can say is this: I am not in this just to double my money. I am in this stock for a major discovery and right now Juggernaut is in a “data accumulation phase”: drilling and amassing information to further its conclusion that it is sitting on a world-class discovery. My fear is missing out on the potential upside when it starts releasing the data shortly.

Every other day there are new emails, inquiries and phone calls asking about this company from strangers, new subscribers and the new investors into this market. Their first question is always “What is going on?!” Followed quickly by the question: “Am I too late for Juggernaut?” The answer is no. We are standing in ahead of the curve on this and even at $0.60 you are well positioned. This is a stock for holding and waiting for the data. Sure, you could have made incredible short-term gains on this stock just because more and more people are coming into the opportunity, but the bigger question is why? Why would you risk the potential to capitalize on the opportunity that many feel is unfolding before us? The indicators are there that this could be the deposit that sparks a sector boom. I am in this one for the big gain, a ten-bagger (10 times return on investment). That speaks to my level of risk tolerance, as well as my understanding of the data. A lot of time, effort, research and data have been put into this region by many smart people. This sector, this region in morthwest British Columbia, the syndicates and this management in particular are going to deliver results.

I had mentioned that this was a hold stock for me, but that does not mean there is not a market to trade. In fact, it is quite the opposite. The volume, market and retail growth coupled with the two consecutive oversubscribed financings totaling $4,253,000 has now fully funded the highly anticipated and extensive inaugural drilling campaigns for both of Juggernaut’s 100%-controlled Empire and Midas properties. Juggernaut continues to receive strong support from senior miners, institutions and strategic accredited investors alike, making this a versatile stock for both short-term and long-term players. There are wonderful technical stock analysts out there who can give you the edge in trading this stock, but for me, I am a believer and I look forward to the release of data.

The latest news from Juggernaut has been exciting and the story is getting out; the right people are looking at the story. Recent financings have allowed the company to get strategic partners involved. Juggernaut’s recent financing was wildly successful (in an otherwise barren market) and included key industry players to get this story in front of the most sophisticated investors and institutions. With that in mind, Juggernaut is an incredible opportunity to invest risk capital, or better yet take it to your broker—and show them what is happening with this company.

So what has happened?

In the past few weeks, small victories built upon each other. This began with Jay Taylor, owner of Miningstocks.com and Taylor HardMoney Advisors. Jay is one of the most highly respected and stoic investors in this space. He said in his June 1, 2018, publication: “It is my view that Juggernaut is one of the most exciting high probability early exploration stories I have covered in this newsletter since its inception in 1981.”Coming from Jay Taylor, this is high praise indeed. Furthermore, Mr. Taylor finished off his statement about Juggernaut by concluding:

“Last but not least, the quality of management with its proven track record provides added confidence in the likelihood of success. All in all, this is a stock I felt compelled to own and to pass what I know along to you.”

Getting that type of endorsement from a man with his reputation certainly brought the right type of attention to the opportunity. Canada’s largest and most respected independent national brokerage firm, Haywood Securities, heeded the call and included Juggernaut in its highly respected publication “Haywood’s Junior Exploration Q2/18 Report.”

The news Juggernaut has created in this space is growing, but I want to reach out again and let people know about this opportunity. I want to inspire people to take action and enter into an undervalued sector that has massive historical data in a world-class region with global demand.

Let’s look at the fundamentals of this company and revisit my last analysis from late February 2018 when the stock was trading around $0.20.

The junior mining market is small. This is not a disparaging comment, but on the global financial scale, junior miners raise smaller amounts of funds to do the heavily lifting of finding, prepping and making projects feasible for producing companies. This historical curve is supported by evidence. Juggernaut could truly be only one drill hole away from a paradigm shift. As one P.Geo put it to me recently, “the opportunity in Juggernaut is geologically irrefutable, truly elephant targets in elephant country.” This is the type of opportunity we all are looking for to get in on, ahead of the curve. It could be any week that results start trickling in, or we start to hear some camp chatter about results. Take some profits out of the overplayed weed stocks, social media companies and cryptocurrencies and put some money in a sector that is incredibly undervalued. This sector is primed for some good results and when that happens this stock can take off.

The Opportunity

We cannot talk about Juggernaut without first touching on the technical team, which is led by a world-class project generator, Bill Chornobay. He is the one that had the vision to assemble the projects and utilize the same business model that he has had great success within the past. His track record includes discovering the Golden Mile in Ontario, which was rolled into Prodigy and bought out by Argonaut for about $320 million just a few short years ago. Bill originally staked the Coffee Creek assets in the Yukon, specifically the “Supremo Zone,” which became the base asset for Kaminak, which Goldcorp recently bought for about $520 million. More recently, Bill generated and discovered the Plateau South project, in the Yukon, which is owned by GoldStrike Resources. He recently inked a $53 million joint venture with Newmont Mining Corp. The depth of Bill’s exploration team is immense, and they clearly know how to find robust mineralization when they’re out in the field.

MIDAS PROPERTY

Midas is situated in a world-class geological setting within which Juggernaut discovered a 2.1 x 1.6 km gold in bedrock discovery that is 100% controlled. Midas is only 14 km to major power, CN rail, with direct road access, and is drill ready. This discovery was made as a result of rapid permanent snow-pack abatement in the region due to global warming. I was able to sit down with Dr. Ewan Webster and speak to him about what a “world-class geological setting” looks like, and I urge you to make sure you watch this video. Multiple high-grade gold mineralized chip, grab and channel samples have defined a 2.1 x 1.6 km zone of surface gold mineralization known as the King Solomon Zone, which remains open. Channel samples contain grades up to 10.28 grams per tonne gold over 4.34 meters. The extent of the gold mineralization indicates a large feeder source at depth.

King Solomon Gold Zone
Figure 1: King Solomon Gold Zone

The Midas property is within an 18 x 10 km alteration zone that was identified by the BCGS (British Columbia Geological Survey), which also stated this is one of the last large under-explored alteration systems in BC with very strong potential for both Eskay Creek-style VMS and structurally controlled gold mineralization. Widespread polymetallic and gold mineralization is seen on surface, coupled with an extensive gold in soil anomaly that measures 1100 by 800 meters, provides strong evidence of a large gold system that is drill ready.

Aerial view of King Solomon Gold Zone
Figure 2: Aerial View of King Solomon Gold Zone Looking NW

I liken this project to a modern-day gold rush. What the market has been waiting for is major news of a discovery and in a safe jurisdiction. On top of this, Juggernaut’s projects have road access and are positioned close to excellent infrastructure in Terrace, BC, including an ALS Chemex prep lab. According to Dan Stuart, president and CEO of Juggernaut: “I was able to arrive in Terrace and head over to Tim Horton’s for a coffee and within 20 minutes I was on the property with a still warm coffee in hand!” From double-double to being on the property in double-quick time—now that is truly close to infrastructure!

EMPIRE

The newly discovered 5.5 km long Inca Trend is located on the Empire property (Figure 3), which is only 8 km to major power, CN rail, and has road access. Like Midas, it is hosted in the same world-class geological terrane of northwestern British Columbia. This discovery was also made as a result of rapid glacial and snow-pack recession in the region. One of many discovered zones is RockStar; it measures 1000 x 550 meters with 450 meters of mineralized vertical relief, and remains open in all directions. Rockstar is located along the newly discovered 5.5 KM long Inca Trend that contains widespread polymetallic mineralization in bedrock and potassic and propylitic alteration, indicating a large porphyry feeder source at depth. Inca provides for multiple strong drill targets for the upcoming inaugural 2018 drill program.

Empire Property
Figure 3: Empire Property Highlighting the Inca Trend and Big One and Colossus EM anomalies

Inca Trend
Figure 4: Inca Trend Overview

The second drill-ready area to be targeted on Empire for 2018 is the Big One anomaly (Figure 5). It is located ~3.5 km north of the Inca Trend and is a large geophysically indicated, strongly conductive tabular body measuring 1000 X 800 meters that extends to a depth of 300 meters and remains open (See 3D Model Video). This subsurface conductive body is hosted in a layered sequence of volcanics and comes to within 30 meters of the surface. The tabular shape of the conductive body, the presence of sulphides including chalcopyrite on surface, and the presence of marine fossils in the area are all strong indicators of being in close proximity to what was a hydrothermal vent system, a black smoker. These results demonstrate Big One has strong potential to be an Eskay Creek-style VMS at depth.

Juggernaut has only begun to scratch the surface of these two properties and it is theorized we are seeing just the tip of the iceberg. This is no small play on words, the ice abetment is revealing potential that could be startling. The company could be just one drill hole away from a major new discovery in a world-class geologic setting, proven capable of hosting world-class deposits. This is a very rare opportunity to be in ahead of the curve.

As Dan Stuart explained in his interview with me at the recent Vancouver Resource Investment Conference, the “Rockstar Zone, for instance, is currently 1 kilometer by 530 meters and it remains open. 100% of the channel samples contained significant gold, copper, zinc, and lead mineralization. 92% of all the grab samples ran with gold, copper, zinc and lead.”

3-D Model of Big One anomaly
Figure 5: 3-D model of the Big One anomaly

Dr. Stefan Kruse. P.Geo, chief consulting geologist, stated, “We’re going to get in there as early as possible this year and run an IP survey to trace the extent of the surface mineralization to depth, prior to drilling, we are targeting elephants. The discovery of a new extensive zone of gold and copper rich massive sulphides at surface on Rockstar is very exciting and we look forward to outlining the full extent of this discovery both along strike and at depth. We have strongly recommended a comprehensive exploration and inaugural drill program in 2018 targeting this and the other exciting new discoveries made on both Midas and Empire.”

Another exploration geologist on the team recounted a memorable day on the Empire property: “It was a foggy morning and we were all standing on an extensive newly exposed mineralized outcrop which had not yet oxidized, and when the fog lifted and the sun shone through the ground literally started sparkling everywhere.” The geologists could not believe what they were witnessing a truly spectacular sight.

We cannot talk about Juggernaut without touching on the DSM Syndicate. Following the story of this team is exciting because you learn that the process of making these discoveries has many phases. Getting these grab samples is one of the first stages in ground truthing a generated target. This speed prospecting program covered over 1500 km of terrane and returned many multi-ounce gold samples that culminated in the staking of six new properties. Juggernaut owns 20% of this syndicate. This is a unique opportunity all on its own. To have a relationship with this syndicate as well as 20% stake in its finds tells me that JUGR might have a front row seat at the table with this group, or at least could provide for a stream of income and additional news flow if another qualified partner comes along and develops any of these syndicate properties.

There is a lot of media coming out in North America about this undervalued sector. It will not stay cheap for long and Juggernaut is moments away from drilling. If there was ever a time to get involved in an undervalued market with excellent management teams and potential then now is that time.

I firmly believe Juggernaut’s chart could be one of the most dramatic charts you are going to see in 2018. The company checks all the boxes in a sector prepared to boom, in a safe region that is known to host world class deposits. As the age-old adage in the exploration business goes, “we are one drill hole away from a major discovery.” Anyone can say that, but what matters is who is saying that and what do they have to back it up. Now you are all duly informed and are in the know ahead of the curve. This has nothing to do with the luck of the Irish as the O’Donnell clan elders preached the harder we work the luckier we get.

Further information can be sourced online at: JuggernautExploration.com

Do not miss out on getting In Ahead of the Curve. This is the time, this is the second pick and get ready to hear more about this amazing opportunity.

Don’t forget to follow us @SuperChargedStocks (Ahead of the Curve) for real-time news updates! And check out our website sections Camp Chatter, Drill Bits, Prospectors Corner and Made the Grade.

Andrew O’Donnell is president and CEO of Supercharged Stocks.com. He was born into a family that lived and breathed the financial industry. Many a family meal was spent discussing markets, wealth accumulation, estate planning, tax strategies and new products and services for companies and families. A graduate of Ridley College, O’Donnell obtained his Bachelor of Arts from the University of Western Ontario. He began his career in Calgary as an advisor with Standard Life but branched out to include stocks, bonds and derivatives products when he took his book to Merrill Lynch. The focus was on providing thoughtful planning, high performance and structured strategies. Throughout his career O’Donnell has worked at various levels of the financial service industry culminating as a Managing Director of an offshore “captive insurance company” in Barbados, which he created with Willis Canada for a land banking company. He has created structured products and is always looking for innovative, interesting market advantages.

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Disclosure:
1) Andrew O’Donnell: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Juggernaut Exploration. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Supercharged Stocks disclosures are listed below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Juggernaut Exploration, a company mentioned in this article.

Supercharged Stocks General Disclaimer: I am not a certified financial analyst, licensed broker, fund dealer, Exempt Market dealer nor hold a professional license to offer investment advice. We provide no legal opinion in regard to accounting, tax or law. Nothing in an article, report, commentary, interview, and other content constitutes or can be construed as investment advice or an offer or solicitation to buy or sell stock or commodity. These are all expressed opinions of the author. Information is obtained from research of public media, news, original source documents and content available on the company’s website, regulatory filings, various stock exchange websites, and stock information services, through discussions with company representatives, agents, other professionals and investors, and field visits. While the information is believed to be accurate and reliable, it is not guaranteed or implied to be so. The material on this site may contain technical or inaccuracies, omissions, or typographical errors, we assume no responsibility. SuperChargedStock.com does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this site. It is provided in good faith but without any legal responsibility or obligation to provide future updates. I accept no responsibility, or assume any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information. All information is subject to change without notice, may become outdated, and will not be updated. A report, commentary, this website, interview, and other content reflect my personal opinions and views and nothing more. All content of this website is subject to international copyright protection and no part or portion of this website, report, commentary, interview, and other content may be altered, reproduced, copied, emailed, faxed, or distributed in any form without the express written consent of Andrew O’Donnell.

( Companies Mentioned: JUGR:TSX.V,
)

The Silver and Platinum Express

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   07/19/2018

Bob Moriarty of 321 Gold discusses the relative prices of gold, silver and platinum and highlights two exploration companies, one with platinum and one with silver.

I’ve written about both Group Ten Metals (PGE-V) and Metallic Minerals (MMG-V) before. I’m going to group the two companies in one piece today for a number of reasons. The companies share management. One, Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTC), is a platinum/palladium company. The other, Metallic Minerals Corp. (MMG:TSX.V), is oriented toward silver in the Keno Hill silver district.

Inflation is directly responsible for the price increase of everything. That doesn’t mean that all commodities or financial instruments go up in unison, they don’t. But soybeans or silver are not inherently more valuable today than they were a hundred years ago. What has changed is the value of the dollar, not the commodity. Markets search constantly for the correct price. That is why prices go up and prices go down. The market never quite knows what is the right price for anything so it searches until buyers and sellers are satisfied with price and make a transaction.

Human behavior causes distortions in price between commodities. It’s like dancing. Sometimes you lead. Sometimes you follow. An astute investor can profit when the price of one commodity in comparison to another deviates from the mean. We can be assured that eventually price will regress to the mean. Understanding how deviation from the mean and the ultimate regression to the mean allows savvy punters to speculate on the price difference between two commodities without the need to place a bet on the direction of price for either. I explain all of this at length in Nobody Knows Anything.

Over the past one hundred years the ratio of silver to gold has varied from about 17-1 to just over 100-1. That means it took seventeen ounces of silver to equal one ounce of gold at the extreme. The average ratio has been about 53-1. Therefore without guessing what price will do, we know from factual history that when silver is below 53-1 gold is relatively cheap and above 53-1 silver is relatively cheap. As I write the ratio is about 80-1 which means silver is a lot cheaper than gold. So either silver goes up, or gold goes down or both at the same time and eventually we will regress to the mean of history.

Likewise, for 95% of the time since the discovery of platinum in 1748 the metal has had a premium to the price of gold due to it being a lot more rare than gold. Lately the prices of the two commodities have inverted and platinum sells at about a $420 discount to gold. That’s a record by the way.

Buying or selling anything when it is an extreme of emotion is the best way to profit. We can only guess from one day to the next what the correct price is for anything. But a study of the history of prices will immediately reflect when you are somewhere never gone before. In short at least compared to gold, both platinum and silver are cheap. If the level of debt in the world makes you think that maybe spending is not a surefire way to profit and debt is the same as slavery, it might be nice to own something that you can hold in your hand that has always had some value. Gold, silver and platinum make great insurance policies in times of financial chaos. Right now both silver and platinum are relatively better value than gold and those companies who are going to produce them should increase in value more than those of gold.

Group Ten Metals has put together a large land position in the Stillwater Complex in Montana adjacent to the 80 million ounce Pt/Pd resource belonging to the Sibanye-Stillwater Mine. The exploration on the Group Ten package is brownfields with management having a solid background and experience with PGMs and Ni projects including Stillwater, Wellgreen and Goldfields.

The 54 square km land package the company refers to as the Stillwater West project shows an 18 km long PGM soil anomaly also containing cobalt and gold. Just like the Stillwater Mine next door.

Stillwater West

Within the Stillwater West property are found 12 major geophysical anomalies from 3 to 6 km in length to overlie the soil anomalies. Group Ten has drill data from 215 holes with over 28,000 meters of drilling. They have 11,000 meters of drill core. The Phase 1 exploration program in progress consists of relogging and assaying the 11,000 meters of core and putting together all the data into a geological model. At the conclusion the Phase 2 portion will drill test the highest priority targets. A drill permit has been applied for and the company believes drilling will commence later this summer.

I should remind readers that 78% of platinum production comes from South Africa. Certain political parties in the country are calling for an open season on white farmers. When South Africa goes the way of Zimbabwe it will leave Russia as primary producer of the PGMs. There is, of course, a coup d’état in progress in the United States with various powerful three-letter agencies determined to overthrow the democratically elected president and to go to war with Russia. I happen to believe that is the worst of bad ideas but who am I?

Should South Africa go the auto-stupid route and the coup succeed, it might be nice to have another alternative source for PGMs.

Both companies are headed by Greg Johnson; he has used the same model as he used with Novagold going back to 2000 in Alaska. He targeted a mineral and then put together a package of land properties in the same region. He has done the same with both Group Ten and Metallic Minerals, where he assembled a known package of similar claims into one big program. He did it in Montana and also in the Yukon in the Keno Hill silver district.

Metallic is focused on high-grade silver in a known district with past production of over 300 million ounces. Their 166 square km land package adjoins Alexco. Given the past production of silver from near surface and recent discoveries, Metallic believes the district has billion-ounce silver potential. Over the past 18 months the company has expended their land position and started a serious exploration program.

The 2018 drill program at Keno has started with four core holes completed from the Gold Hill target and sent to the lab. Results should be announced within the next month. Metallic is currently drilling the Caribou target. Drill applications have been submitted for the Formo target and the company believes drilling will start later in the summer.

After some severe pain to the ever-hopeful speculators, the price for the precious metals is going to turn with a vengeance. Silver and platinum companies should do better in relative terms than just gold. I own shares in both Group Ten and Metallic. Both companies are advertisers and naturally I am biased.

Any company that Greg Johnson is associated with is going to be good at communication and these companies are no different. Interested readers should browse through their presentations to learn a lot about both the companies and their commodities. Group Ten Metals presentation here. Metallic Minerals presentation here.

Group Ten Metals
PGE-V $0.185 (Jul 19, 2018)
PGEZF OTCBB 42.8 million shares
Group Ten website.

Metallic Minerals Corp
MMG-V $0.28 (Jul 19, 2018)
MMNGF OTCQX 56.5 million shares
Metallic Minerals 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: Group Ten Metals and Metallic Metals. Group Ten Metals and Metallic Metals are advertisers 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 billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) 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: PGE:TSX.V; PGEZF:OTC,
MMG:TSX.V,
)

Gold Explorer’s Latest Drill Results Suggest Resource Expansion

By The Gold Report

Source: Streetwise Reports   07/17/2018

This Vancouver-based company hits high-grade oxide gold at Carlin Trend project in Nevada.

Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) reported new “exceptional” drill results that “confirm that the Dark Star deposit may be emerging as a major Carlin gold occurrence where a larger-than-expected Ridgeline fault system has played a significant role in concentrating higher grade gold,” according to the news release. Dark Star is located on Gold Standard’s Pinion-Railroad project in Nevada.

The company announced the results of 19 reverse circulation holes. Three of them, DR18-43, -44 and -45, showed thick, high-grade, oxide gold intercepts that are open at depth.

Specifically, DR18-43 intersected 213.4 meters (213.4m) of 2.39 grams per ton (2.39 g/t) gold (Au), including two higher-grade zones of 41.2m of 5.79 g/t Au and 10.7m of 7.75 g/t Au. The extension of this mineralization at both ends exceeded predictions.

DR18-44 hit multiple zones of oxide mineralization, including 62.5m of 1.22 g/t Au, along with 137.2m of 2.72 g/t Au, including 15.2m of 7.84 g/t Au and 30.5m of 4.68 g/t Au. These results also surpassed expectations with higher grades and thicknesses.

DR18-45 intersected 132.6m of 1.09 g/t Au, including two higher-grade zones of 12.2m of 2.3 g/t Au and 12.2m of 3.56 g/t Au.

Additionally, the northernmost hole, DR18-37, hit two near-surface zones of oxide mineralization, including 30.5m of 0.34 g/t Au and 62.5m of 0.35 g/t Au. These intercepts are of higher grade and thickness than anticipated. Mineralization remains open to the north.

Twelve drill holes in the northern part of Dark Star ended in gold mineralization below that in the resource model and, thus, potentially indicate the resource could be expanded.

“To date, drilling has not yet established a bottom to higher-grade gold zones located proximal to the Ridgeline fault where the gold system remains open to the north, west and at depth,” said Steven Koehler, manager of projects. “This openness represents exciting growth potential and these new opportunities will be a focus of drilling later this summer.”

Want to read more Gold Report interviews 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 interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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

( Companies Mentioned: GSV:TSX.V; GSV:NYSE,
)

Base Metals Miner Pursues Takeover of Midtier in Space

By The Gold Report

Source: Streetwise Reports   07/18/2018

An Eight Capital report described the acquisition proposal and what it means for the shareholders of the two involved entities.

In a July 17, 2018, research note, Eight Capital analyst Ralph Profiti reported that Lundin Mining Corp. (LUN:TSX) plans to initiate a formal bid around July 27, 2018, to acquire Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.MKT) for CA$1,436 million. This will be Lundin’s fifth purchase proposal, as Nevsun rejected the previous four, all submitted earlier this year.

Profiti explained that under the most recently proposed arrangement, Nevsun shareholders would receive CA$4.75 per share in cash from Lundin, an amount that represents a 12.8% premium to its closing price on July 16, 2018. Euro Sun Mining, present in previous proposals, is not involved this time.

For the prospective acquirer, “we believe this transaction still makes sense with Nevsun’s European assets providing a strong fit for Lundin and now includes a risk-adjusted bid on the Bisha asset,” Profiti noted. Specifically, Nevsun’s Timok project fits Lundin’s criteria in that it is “a potentially value-accretive, copper-focused development project in a favorable jurisdiction with optionality.”

Lundin should end Q3/18 with $1.5 billion in cash and $350 million in available credit, for total liquidity of $1.85 billion, Eight Capital estimates, using spot prices. If the takeover were to go through, Lundin’s liquidity afterward would be about $750 million.

With respect to the takeover target, Nevsun, it would not recoup its full value through the current proposal, Profiti indicated: “We believe that Lundin’s CA$4.75 per share offer is inadequate.” Eight Capital derives a higher value for Nevsun, of CA$5.50–6.50 per share. The investment firm, however, favorably views the all-cash structure because it lowers transaction risk to Nevsun shareholders.

At CA$4.75 per share, the deal would be 6.3% accretive to Lundin’s net asset value per share, Profiti explained. At CA$5.50, it would be 3.7% accretive.

On Lundin, whose stock is trading today at around CA$7.51 per share, Eight Capital has a Buy rating and a CA$12.50 per share target price.

On Nevsun, Eight Capital also has a Buy rating but a CA$6 per share price target. The current share price is about CA$4.74.

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

Disclosures from Eight Capital, Lundin Mining and Nevsun Resources, First Impressions, July 17, 2018

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Additional disclosures are available here.

( Companies Mentioned: LUN:TSX,
NSU:TSX; NSU:NYSE.MKT,
)

E-Waste Mining Joint Venture Reports Significant Achievements

By The Gold Report

Source: Streetwise Reports   07/18/2018

The Canada-based companies report the doubling of the fabrication facility in British Columbia.

Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB) and its joint venture partner Enviroleach Technologies Inc. (ETI:CSE) reported a number of significant recent achievements in their shared operations in July 17 press releases.

Mineworx reported the doubling of their current 7,050 sq. ft. fabrication facility in Coquitlam, British Columbia, to almost 14,000 sq ft; the leasing of an additional 13,674 sq ft facility in Vancouver (Surrey), BC; the commencement of a 20 ton per day E-Waste concentration plant to be assembled at their new Vancouver (Surrey) facility with EnviroLeach; and the appointment of a human resources, health and safety Manager.

“These combined facilities will quadruple the capacity of Company’s E-Waste fabrication and production capabilities to almost 28,000 square feet,” said Greg Pendura, CEO. “This expansion now enables Mineworx to move quickly upon the site acceptance of the Memphis, Tennessee E-Waste processing plant to immediately expedite our business model in this dynamic sector.”

Meanwhile, EnviroLeach announced new upgrades and enhancements to its process has yielded positive results in a series of bulk tests.

The modifications and enhancements to the EnviroLeach process, which included the addition of a proprietary three-stage concentration process and minor formula modifications, have delivered significant improvements in performance and recoveries, said the company’s press release.

The benefits of these enhancements include improvements in the overall recoveries of precious and base metals to over 90%; the production of a refinery-grade, saleable concentrate; the reduction of formula/chemistry losses to in-leach contaminants; 50% improvement in process flow and feedstock throughput; advancements in the mechanical processes including grinding, pumping, filtration and agitation; improved leach kinetics and characteristics; increased process pulp density from 10% solids to 25%solids; extended reusability of the formula; improved gold electrowinning characteristics; improved base level economics; and reduced environmental footprint.

The company has hired Sarah Heath as the manager of human resources, health and safety to facilitate the expansion and transition into a fully operational organization.

“Sarah brings multiple years of experience in these functions and will assist with the progression of the Mineworx/EnviroLeach JV as it moves into commercial production,” said the Mineworx press release.

Mineworx has positioned itself for growth through partnerships with advanced mining and E-Waste opportunities utilizing its proprietary and patent pending extraction technologies, said the press release. “These innovations will increase and enhance business opportunities by deploying cost effective, environmentally friendly extractive metallurgy solutions.”

For its part, EnviroLeach said it has completed several lab to pilot scale and full-scale tests to confirm the results of its modifications on various low to mid-grade circuit boards with positive results overall recoveries of 91%.

“The results of the bulk testing indicate that the gold (Au) is almost evenly distributed between both the heavy (56%) and light fractions (44%) with all other metals predominantly reporting to the heavy (Concentrate) fraction,” said the press release.

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

( Companies Mentioned: MWX:TSX.V; MWXRF:OTCQB,
)

Gold Explorer Expands Land Position at Peru Project

By The Gold Report

Source: Streetwise Reports   07/17/2018

This company advances work toward making a significant gold discovery.

Palamina Corp. (PA:TSX.V; PLMNF:OTC.MKTS) has finished additional staking to boost its application and mining exploration rights to 18,900 hectares in the Bendi gold project in southern Peru. “Palamina continues to focus on acquiring and securing exploration mining rights to district-scale gold projects within the Puno Orogenic Gold Belt with a view to ‘shadow of headframe’ exploration where no headframe exists,” said President Andrew Thomson, adding that the ultimate goal is “making a major gold discovery.”

The company concentrated its efforts on the Mantos and Carol gold anomalies that are associated with district-scale structures and that it had identified via field work.

Mantos is 150 meters long by 50 meters wide and is open ended. It is associated with a “greater than 7 kilometer-long, thrust-related shear zone occurring subparallel to the Benditani mine structure,” the news release indicated. Chip samples from Mantos showed gold grades of 25.4 and 9.9 grams per ton. The primary target of mineralization at Mantos appears to host quartz veins and veinlets.

Carol is 2.5 kilometers long by up to 30 meters wide and also is open ended. It is located along a “greater than 15 kilometer-long, subparallel northwest striking structural corridor developed in the core of an anticline,” per the news release. Chip samples from Carol returned 4 meters grading 0.25 grams per ton gold.

To follow up, Palamina is conducting further geochemical rock channel sampling, results of which are anticipated around mid-August.

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

( Companies Mentioned: PA:TSX.V; PLMNF:OTC.MKTS,
)

Large Streaming Company Acquires Gold and Palladium Stream

By The Gold Report

Source: Streetwise Reports   07/17/2018

Company president sees this stream as a foundational asset.

Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) recently announced that its subsidiary, Wheaton Precious Metals International Ltd., has agreed to acquire an amount of gold and palladium equal to a fixed percentage of production from the Stillwater and East Boulder mines, from Sibanye Gold Ltd.

“What mainly attracted us to this opportunity was the quality and size of the J-M Reef deposit, coupled with the ongoing expansion at the Blitz Project. There are over 12 kilometres of undeveloped mineralization associated with the J-M Reef between the two currently producing mines. With a mine life extending well into the foreseeable future, we believe Stillwater will be one of Wheaton’s foundational assets for many years to come,” said Randy Smallwood, the president and CEO of Wheaton.

Upfront cash consideration of US$500 million will be paid upon closing of the precious metals stream by Wheaton International to Sibanye-Stillwater. Additionally, “Wheaton will make ongoing payments equal to 18% of the spot gold price and spot palladium price until the reduction of the advanced payment to nil, and 22% of the spot gold price and spot palladium price thereafter.”

For the life of the mine, Wheaton International will receive an amount of gold equal to 100% of the Stillwater gold production. In addition, “Wheaton International will initially receive an amount of palladium equal to 4.5% of Stillwater palladium production, decreasing to 2.25% and then 1% based on defined delivery thresholds, for the life of mine.”

Wheaton’s estimated Proven and Probable gold reserves increase by 410,000 ounces (410 Koz) and Inferred gold resources increase by 920 Koz following the acquisition completion. Production is forecast to average approximately 14.5 Koz of gold and 29 Koz of palladium per year, or approximately 37 Koz of gold equivalent per year, for the 10 years beginning in 2019.

The largest primary producer of platinum group metals outside of South Africa and the Russian Federation, Stillwater is located in Montana.

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

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

Oil & Gas Firm Buys Full Working Interest in Texas Wells, Gaining Flexibility

The Energy Report

Source: Streetwise Reports   07/17/2018

Management believes this transaction adds value for the company’s shareholders.

Amazing Energy Oil & Gas Co. (AMAZ:OTCQX) acquired the remaining working interest in its 23 wells in Section 91 for 3,617,556 shares of restricted common stock. CEO William McAndrew noted that “incremental additions to our ownership position continue to add value for Amazing shareholders.” The wells are located in the Permian Basin in Texas.

The strategic move affords Amazing “maximum flexibility in terms of developing the project,” McAndrew added. He noted that the most compelling areas in the play are the “average 30–50 feet of potential pay thickness” in the Queen Formation and three zones with potential in the Seven Rivers and Yates formations.

These now fully owned wells in Section 91 will undergo recompletion as part of Amazing’s ongoing “chemical squeeze and rework program.” This will take place after the late September completion of the 90-day initial test on the #31 well. Preliminary results showed a 60% daily production increase.

In other news, Amazing has eliminated all debt as of July 2018 except for what it owes to president/chairman Jed Miesner and his companies.

“Strengthening our balance sheet, corporate strategy and controls are the initiatives that remain vital to and will foster Amazing’s growth,” McAndrew said.

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

( Companies Mentioned: AMAZ:OTCQX,
)