Archive for Commodities & Metals – Page 2

‘Potential Low-Cost Uranium, Vanadium Producer’ Warrants a Look

The Energy Report

Source: Streetwise Reports   07/11/2018

An RB Milestone Group report discussed the rationale for investing in this firm.

In a June 20 research note, RB Milestone Group made four key points about Western Uranium Corp. (WUC:CSE; WSTRF:OTCQX), a Colorado-based company that is exploring its uranium and vanadium assets in Colorado and Utah.

1. The company could achieve significant cost savings and efficiencies by capitalizing on its ablation mining technology (AMT), the rights to which it acquired in 2015. By using AMT to process uranium and vanadium ore, Western Uranium could decrease its costs, generate less waste and produce high-grade products. “AMT is capable of reducing ore quantity by up to 90%, thereby reducing downstream transportation and processing costs by approximately 90%,” RB Milestone explained. “This technology also increases the recoverable resources by making lower cutoff grades economic.” The company is currently awaiting regulatory approval of this patented technology.

2. The company has a resource base that consists of an estimated 70 million pounds of uranium and 35 million pounds of vanadium, the latter with grades between 1.4 and 2%. The resources and grades at specific assets are as follows:

  • Sunday mine complex: more than 2.9 million pounds U3O8, grade 0.25–0.36%
  • San Rafael project: more than 3 million pounds U3O8, grade 0.25–0.33%
  • Sage mine: 581,905 pounds U3O8, grade 0.15–0.23%
  • Hansen/Taylor project: 65.38 million pounds U3O8, grade 0.058–0.062%.

Western Uranium has an agreement in place to supply uranium to a utility firm in the United States. Also, in June 2018, the company entered a joint venture agreement with Battery Mineral Resource Nevada to develop vanadium at the Sage mine.

3. The company has a “strong and qualified management team,” according to RB Milestone. To name a few members, George Glasier, the founder, president and CEO, has worked in the uranium industry for more than 40 years and has ample experience in project development and sales and marketing.

Robert Klein, the chief financial officer and previously the company’s vice president, has expertise in financial operations, including reporting, public stock listing and corporate transacting.

Michael Rutter, the vice president of operations, has 20-plus years of experience in developing and running mines.

4. The company could benefit from the “expected” increase in the uranium price, currently US$21.50, RB Milestone noted. The factors that should boost the uranium price include increased uranium demand stemming from the growing need for nuclear energy, production cuts by major uranium producers, decreasing uranium stockpiles, and the addition of nuclear reactors around the world. As of Feb. 1, 2018, 57 nuclear reactors were being built, 158 were proposed and 351 were planned for construction.

Western Uranium is trading today at around CA$0.77 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. 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 Western Uranium. 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 Western Uranium, a company mentioned in this article.

Disclosures from RB Milestone Group, Western Uranium Corp., June 20, 2018

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. RBMG has received a cash fee equal to sixty-five thousand USD from WU in exchange for RBMG consulting services. In this case, consulting services consist of corporate strategy formation, business development, market intelligence and research. These services include the preparation of this report and RBMG helping WU communicate its corporate characteristics to applicable investment and media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of WU at any time. In the past, RBMG’s principal (“Principal”), through a separate investment fund that was controlled by Principal (“Fund”), purchased 194,444 common shares plus 97,222 warrants to purchase 97,222 common shares of WU from WU. The common shares and warrants came with six-month trade restrictions. Currently, Principal, through Fund, indirectly owns shares and warrants of WU. Principal will directly or indirectly buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of WU at its lawful discretion and this can happen at any time.

( Companies Mentioned: WUC:CSE; WSTRF:OTCQX,
)

Precious Metals Firm Launches Exploration Program in British Columbia

By The Gold Report

Source: Streetwise Reports   07/11/2018

A Haywood Securities report shared what is new with this Canadian company.

In a June 4 Junion Exploration Report, analyst Mick Carew indicated that Haywood Securities Inc. added Juggernaut Exploration Ltd. (JUGR:TSX.V) to its Watch List, which means, for one, it is expected to announce news during Q3/18.

As for the latest developments, Juggernaut just began a CA$3.5 million 2018 exploration program at its 100%-controlled Midas and Empire projects located south of British Columbia’s Golden Triangle. Geochemistry, mapping and sampling will be done, followed by drilling of several targets to help the company prioritize them for additional work.

Subsequent to that, the explorer will drill the northwest trending King Solomon gold zone at Midas, which is “of particular interest” and where a 2.1 by 1.6 kilometer area of volcanogenic massive sulphide polymetallic and gold mineralization has been identified, Carew wrote.

The Empire property spans 16,400 hectares and “comprises several targets,” Carew described. Area infrastructure includes logging tracks for access, power that is 8 kilometers away, roads and rail. Highlight assays from rock chip and channel sampling in 2017 at the Rockstar zone included 6.02 meters (6.02m) grading 1.53 grams per ton (1.53 g/t) gold, 1.38% copper, 0.23% zinc and 0.13% lead. One rock chip sample returned 21.7 g/t gold, 0.94% copper, 3.42% zinc and 11.55% lead.

The Midas property, which covers 16,653 hectares, has nearby infrastructure and “is defined by an 18 by 10 kilometer alteration zone of oxidation and quartz-sericite-pyrite alteration,” Carew indicated. Rock chip and channel sampling elicited high-grade gold mineralization, including 4.34m grading 10.28 g/t gold.

Both Midas and Empire are under option agreements with the DSM Syndicate in which Juggernaut has a 20% interest. Per the agreements, Juggernaut must pay, through cash, shares and warrants, CA$13.35 million per project over five years.

The company also just closed a private placement of CA$2.74 million, which boosted its cash balance to CA$3.5 million. The company has no debt.

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 Juggernaut Exploration, a company mentioned in this article.

Disclosures from Haywood Securities, Junior Exploration Report, June 4, 2018

Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.

Haywood Securities, Inc., and Haywood Securities (USA) Inc. do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts.

Analyst Certification: We, Mick Carew, Geordie Mark, Pierre Vaillancourt, and Kerry Smith, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

The following Important Disclosures apply for Juggernaut Exploration:

▪ Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel have been reimbursed by the issuer.

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

( Companies Mentioned: JUGR:TSX.V,
)

After Blockbuster Maiden Lithium Resource, How Will PEA Look?

The Energy Report

Source: Peter Epstein for Streetwise Reports   07/11/2018

Peter Epstein of Epstein Research speaks with the CEO of a lithium explorer that plans to release a PEA on its Nevada project soon.

The following interview of CEO Bill Willoughby, Phd, PE of Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) was conducted by phone and email over about a one week period ended July 11th. I’ve written several articles about this Epstein Research website sponsor—so far management has delivered on promises. In June, the company delivered a maiden lithium resource estimate of 3.3 Million tonnes (Mt) Lithium Carbonate Equivalent (LCE) in the NI 43-101 Indicated category, plus 2.9 Mt LCE Inferred.

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Cypress has the third largest lithium resource in North America, but the lithium is hosted in clay, and no clay-hosted lithium projects have reached commercial production. However, that’s very likely to change as Bacanora Minerals’ (BFS-stage) Sonora, Mexico, clay project is expected to start production in about two years and unconventional/clay projects owned by Global Geoscience and Lithium Americas, (both at PFS stage, both in Nevada), could commence production within three to four years.

Cypress is just weeks away from reporting key metrics of a PEA. Lithium Americas recently delivered key PFS metrics on its Thacker Pass clay project, including an after-tax NPV(8%) of ~C$3.4 billion and IRR of 29.3%. That’s based on a two-stage production ramp up reaching 60,000 tonnes per year LCE in 2026.

Cypress is contemplating less than 60,000 tonnes/year in its upcoming PEA, but if it can demonstrate attractive op-ex with relatively moderate cap-ex needs, a NPV well into the hundreds of millions of Canadian dollars seems likely. Compare that to Cypress Development’s market cap of ~C$22 million.

Without further preamble, here’s the exclusive interview with CEO Bill Willoughby.

There’s been a lot of good news at Cypress Development Corp., a maiden lithium resource estimate and rapid progress on a PEA (expected in next several weeks). Let’s start with the maiden resource; what are the key takeaways?

We have a very significant resource. It’s been a little over a year since Cypress started drilling and we have an NI 43-101 compliant Indicated resource of 697 Mt at 886 ppm lithium. This alone equates to 3.3 Mt Lithium Carbonate Equivalent (LCE). And, we have another 2.9 Mt LCE in the Inferred category, making our overall project (we believe) the third largest lithium resource in North America.

Most drill holes ended in mineralization, so additional drilling could grow the resource, and well placed holes could increase overall grade and improve the proportion of Indicated vs. Inferred tonnes.

The technical report shows what we’re calling a “preliminary pit,” where our consultants at GRE outlined nearly 200 Mt of clay around some of the higher-grade holes. So, it looks like there will be room in the PEA to optimize grade by selective mining.

In the chart below, a cut-off of 900 ppm Li generates an average Li grade of 1,126 ppm and ~36 years of production at 20,000 tonnes/yr. from the Indicated category only (i.e., not including Inferred). This gives us substantial tonnage as a starting point for our PEA.

http://EpsteinResearch.com/wp-content/uploads/2019/06/Screen-Shot-2018-07-11-at-6.51.36-AM.png

A resource estimate by itself is not an economic study, but it does contain an economic basis in the form of a third-party (GRE) selected cut-off grade. The economic premise for our project depends upon metallurgy, and specifically that the lithium is in an acid-leachable clay. So far, we’ve done metallurgical bench tests on material from three drill holes, two of which are within the preliminary pit shell.

Tests show that lithium can be leached rapidly with relatively low acid consumption. If this were not the case, it’s doubtful we would be moving ahead at the pace we are.

While it’s exciting that a PEA is expected within weeks, what’s the rush to get it out? Aren’t there a number of open questions on metallurgy and the process flow sheet that need to be answered?

We see a good project and the steps ahead include more drilling and environmental studies. While we don’t need these steps to complete the PEA, we need the PEA to define the scope of the project so that we can keep it moving in these other areas.

http://EpsteinResearch.com/wp-content/uploads/2019/06/Screen-Shot-2018-07-11-at-6.04.12-AM.png

As for metallurgy, we already have enough information in hand for the PEA. We know our flow sheet, which includes agitated tank leaching using sulfuric acid. We know our options on how to treat leach solutions and arrive at an end product, whether lithium carbonate or hydroxide. We know we have more work to do and questions to answer.

Cypress is sitting on a “clay-hosted lithium” project. There’s no meaningful lithium production anywhere in the world from clay. Why have clay-hosted projects been so difficult?

The process we are planning—agitated tank leaching—is quite conventional. We’re talking about lithium, which doesn’t have a long history in mining. The world’s very first lithium brine operation started just 50 years ago, and that was next to us in Clayton Valley, Nevada, at Albemarle Corp.’s Silver Peak.

It’s very true that clay-hosted deposits have been very difficult to exploit. The deposit you’re probably thinking about is Kings Valley, in northern Nevada. That deposit is very good grade but contains the clay mineral hectorite, which requires heating to high temperatures to leach the lithium. Until the recent rise in prices, the economics for a hectorite project weren’t there.

Lithium Americas, owner of Kings Valley, just in the last year announced a very large resource at Thacker Pass that is not hectorite and is acid leachable. A company working west of Silver Peak, Global Geoscience, is also pursuing acid leachable lithium at its unconventional deposit, Rhyolite Ridge.

http://EpsteinResearch.com/wp-content/uploads/2019/06/Screen-Shot-2018-07-11-at-6.08.44-AM.png

As far as processing goes, the idea of acid leaching clay is quite common. For Clayton Valley we are looking at a standard crusher followed by agitated leaching, purification and recovery of lithium from the leachate. The flow sheet is what you might see on the hydro-metallurgical end of hard rock lithium projects, quite similar in concept to agitated leaching of gold or copper oxide resources.

How is Cypress’ clay project different?

You touched upon our extremely low strip ratio. The clays are soft and won’t require drilling/blasting, so mining costs should be “dirt cheap,” excuse the pun. As mentioned, the lithium appears to leach quickly with low acid consumption at relatively mild temperatures. This suggests a plant that could potentially have high throughput and low operating costs.

When you talk about a hard rock operation, you have drilling and blasting and overburden removal involved. You’ve got to crush and grind to the appropriate size faction, then do gravity and flotation to make a spodumene concentrate, followed by pyrometallurgy and leaching. If you look at our flow sheet, we’re virtually just scooping the material out, putting it in the mill, then jumping straight into the hydro-met section. So you can see there’s a whole series of events that we’re bypassing.

What’s the current status of metallurgical testing, what further testing needs to be done for the PEA?

We have the information for the PEA as far as testing goes. We are, however, still doing work to improve our knowledge and obtain information for what will come after the PEA. As mentioned, we have five clay units defined in the resource estimate. So far, we have worked in the labs with two composite samples from three holes.

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In the next stage of testing, which we are working on now, we will look for differences between the clay units and by location across the property. We are also looking into ways to purify leach solutions and recover lithium to end product.

Are there noteworthy read-throughs from Lithium Americas’ press release describing its Prefeasibility Study on the Thacker Pass clay project (in Nevada)?

Overall, there are similarities that feed the tendency to compare our projects. Thacker Pass is located in northern Nevada in the McDermitt Caldera. Historically, the deposits there have been known for difficult metallurgy due to the presence of the clay mineral hectorite. With Thacker Pass, Lithium Americas has identified a new resource area that is acid leachable. The grades are higher, averaging around 3,000 ppm lithium, and the PFS shows positive economics, producing 30,000 to 60,000 tpy of lithium carbonate.

However, there are significant differences, most notably in mining cost and acid consumption, that could offset the difference in grade. We might be able to say more when our PEA is done.

What have been the biggest positive or negative surprises with regard to the metallurgy?

The most positive finding, of course, is that we have acid leachable clay. We are able to leach a high percentage of the lithium in a short period of time, in mild leach conditions and with low acid consumption. To be clear, we still have room for improvement, and we have found a few steps in the leaching and treatment of the solutions that are encouraging, possibly unique or proprietary to our deposit.

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What’s the latest on how much water might be needed, can water be recycled, can the company obtain water rights in Clayton Valley?

We have estimated what we need for water, which will be in the PEA, and have identified options regarding how to get it. Water is a concern, but until we have the PEA in hand and additional funds to pursue our options, we aren’t actively looking to acquire water rights at this time. Instead, we’re identifying ways to minimize use, including reclaiming process water and opting for dry-stack tailings as opposed to a tailings pond.

Given talk about the Trump Administration’s proposed fast-tracking of natural resource projects (for select minerals/metals deemed to be of high strategic importance), is there any evidence of this with regard to the BLM and Cypress’ Nevada project?

That’s a good question. We haven’t progressed that far into permitting yet, but we have heard that other natural resource companies are seeing some changes. We’re hopeful that when people see our PEA and the scale of our project, they will put it together with the importance of lithium as an energy metal and our project being a significant potential source of domestic supply.

Nevada is a world-class location due to its infrastructure, rule of law, skilled mining labor force and mining equipment/services availability. The newly enacted tax law, a federal tax rate of just 21%, with no federal or state royalties, is a big deal. In Chile the only producers in the country—SQM and Albemarle—are paying a sliding scale royalty on lithium sales currently equal to about 20%.

Thank you so much, Bill, for your time and detailed answers to my questions. The world awaits your PEA.

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 information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Cypress Development Corp., including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Cypress Development Corp. are highly 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 will consult with their own licensed / registered financial advisors before making investment decisions.

At the time this interview was posted, Peter Epstein owned shares and/or stock options in Cypress Development Corp. and the Company was an advertiser on [ER]. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is 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 or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert 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: Cypress Development Corp. 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.

Charts and graphics provided by author.

( Companies Mentioned: CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE,
)

Bonanza Gold Hit in Nevada

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   07/11/2018

Bob Moriarty of 321 Gold provides an update on an explorer that has been finding success at the drill bit.

I wrote about Viva Gold Corp. (VAU:TSX.V; VAUCF:OTCBB) in mid-May. I said the company was an easy triple from the $0.32 the company was selling for. The shares blasted higher to $0.33 up until they released results from the first four holes in their current 28-hole program.

In one of the more interesting days for a stock, on July 9th the shares advanced from $0.33 to $0.40 for a 20% increase. 19,000 shares traded in total. That’s $7600 Canadian. It’s like a very weird good news/bad news joke. The stock’s up 20% but only three people bought any. However it should give investors a sense of what will happen when the market gets it. I did mention in the May piece, “Visibility is a real problem.”

This company might as well be invisible. Part was due to them not having a U.S. symbol but they have fixed that last week. Now the shares are open to U.S. investors.

This is one of the most incredible stories I have ever heard that obviously no one else heard. Their property is called the Tonopah Gold Project in the Walker Lane District in Southern Nevada. They bought it out of bankruptcy for $25,000 after Midway Gold went teats up. It came with 641 drill holes and 93,903 meters of drilling and a 414,000 gold ounce 43-101 resource. The open pit would have a tiny 2:1 strip ratio. Viva intends to publish a PEA in the 2nd half of 2018.

If you are serious enough to work out the numbers, it makes gold worth about $10 an ounce in one of the best jurisdictions in the world. The company only paid $0.065 an ounce for gold in the ground. And obviously nobody buys a serious gold project for under $0.07 an ounce of gold.

There was this slight kicker and the reason the bankruptcy court couldn’t give the project away. There was the tiny matter of a 7% NSR. Over the years it grew and grew and you can’t mine gold anywhere in the world with taxes and a 7% NSR. So Viva management went to the NSR holders and held out an empty hand and said, “This is how much money you have made from your 7% NSR in the last twenty years.”

Then they held out their other empty hand and said, “This is how much you are going to make out of your 7% NSR in the next century.” The royalty holders got it and came down to a reasonable and proper 2% NSR, which means Viva can mine and actually have a chance of making money.

So Viva raised some money for a serious drill program and began to drill their approved 28 holes. On the 9th of July they released the first results from four holes including 1.5 meters of 138 g/t gold. That certainly qualifies as a bonanza intercept. That was within a 9.1-meter intercept of 25.4 g/t Au. Holy Smokes. And the market didn’t wake up long enough to even yawn. Another of the four holes showed 9.1 meters at 4.5 g/t gold.

Viva is a young company without any baggage but also with no visibility. The website was pretty much a disaster until I asked them to make some major changes. But when you drill 138 g/t intercepts, you should get some respect.

Viva has completed and sent to the lab samples from an additional seven holes. Expect results in about a month and there probably will be two press releases. After those results come back the company will spot the additional 17 holes.

Buying Viva at today’s price and paying $10 an ounce for gold in the ground is like stealing candy from a baby. There are no issues other than visibility. The website is much better now. The company can be bought by American investors and there will be more exciting results coming.

I liked the story enough to buy shares in the open market. It was really lonely out there but that’s not going to last for long. The stock would be still cheap at $1 a share. The company has 3.1 million warrants outstanding at $0.35 a share and management expects holders would be willing to exercise and that would pay for the next bit of the exploration program.

For months I have called for a low in the June/July timeframe. It’s here and I expect the summer rally to heat up soon taking Viva with it.

Viva is an advertiser. I own shares. Do your own due diligence.

Viva Gold Corp.
VAU-V $0.38 (Jul 11, 2018)
VAUCF-OTCBB 17.6 million shares
Viva Gold website.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Viva Gold. Viva Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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Doug Casey Talks Cryptocurrencies, Precious Metals and Novels

By The Gold Report

Source: Maurice Jackson for Streetwise Reports   07/11/2018

Doug Casey, chairman of Casey Research, speaks with Maurice Jackson of Proven and Probable about his investment philosophy, the state of the markets and where he is investing today.

Maurice Jackson: Today, we have a very special guest joining us to discuss the natural resource space and your portfolio, the legendary investor, philosopher, bestselling author and serially successful Doug Casey.

Doug CaseyMaurice JacksonA number of speculators are confused and frustrated with the current state of the natural resource space. I hear comments that it just seems to be dragging along. In my experience, strong hands love the current value propositions and the weak hands fold.

Our listeners are seeking your wisdom on how to cultivate the mental fortitude that you’ve had to make you so successful over the years. Take us through for a moment your thought process when sentiment is low. What does Doug Casey, one of the most serially successful speculators, do?

Doug Casey: The first thing I try to do is watch my own psychology. None of us are immune from emotion. When I find that I’m getting enthusiastic and bullish about anything, I try to stop myself, and look at the other side of the coin.

We were speaking momentarily before we started this interview. You mentioned that at the upcoming Sprott Conference, there were 700 or 750 people registered last year. This year, it sounded like there’s only about two-thirds of that number. I find this very indicative.

Prices of these resource stocks are currently quite low. People are not talking about the commodities in general, or metals in particular. The way I see it is that the world situation is more explosive than ever. I’ve got to say that I’m a bull.

Maurice Jackson: Please provide us with a macro view of the current state of the natural resource space.

Doug Casey: The last time commodities peaked was way back in 2011. That’s seven years. It’s been, in effect, a seven-year bear market. There’ve been some bounces and some false starts along the way, but all this while, the general price level has been getting higher. Inflation is there, but the prices of all commodities have been going down in dollar terms, and the dollars themselves are worth less.

The longer this goes, the more bullish I have to become. I don’t know if the markets are going to turn around next week, next month, but I can’t believe that it’s going to go on yet another year. This is a time to prudently, and of course using the word “prudent” in the same sentence as speculation on natural resources is almost contradictory, but still I’ll say it, this is a time to try to accumulate really sound companies with good management, good properties, good financing, and so forth.

I expect, whether it’s next year, or two years, or three years from now, we’ll be in the middle of a raging bull market for these things, at which point I hope I can overcome my personal emotions and instead of buying more, sell what I have. But in order to do that, you need to buy at low points, and that was a low point.

Maurice Jackson: Is there a catalyst that you have your eye on that will spark the natural resource space?

Doug Casey: This is a dangerous time in the markets, as far as I’m concerned. You’ve got to remember the analogy that I like to use for the current economic climate. We entered a gigantic financial hurricane in 2007 and we went through the leading edge of that hurricane in 2008, and 2009, and part of 2010. Now, since then, it’s a very big hurricane, it’s got a very big eye in the storm, but I expect we’re approaching the trailing edge of the hurricane now, and it’s going to be much worse, and much different, and much longer lasting than what happened in 2008 and 2009.

Why do I say that? Because the governments of the world, not just the U.S. government, but all of the world’s governments working in concert, in fact, papered over the problems that came to the fore in 2008. They poured oil on the water, in effect, by creating trillions and trillions of currency units. That has put the general stock market in a bubble. It’s put the bond markets in a hyper-bubble with zero or even negative interest rates some places in the world. It’s bulled up the real estate market, especially in major cities.

Now, when we go back into the trailing edge of the storm, what’s it going to be like? They’ve already reduced interest rates as far as they can go, so they’ve shot that arrow from their quiver. They’ve created trillions and trillions of currency units all over the world. Are they going to do more of that? I guess so. All of these governments are looking for inflation, as if inflation was a good thing.

I think we’re headed for something of catastrophic proportions. The longer that we go on here in the eye of the storm, the more I liked it, because I like good times more than bad times, but I’m convinced bad times are coming.

Maurice Jackson: I’d like to hear what you’re doing to prepare for the bad times, but I have a two-fold question here first. How much of an effect is the trade war having on the space and how is the natural resource space impacted in the long term when First World nations participate in a trade war?

Doug Casey: First of all, the trade war, of course, is something that has been set off by Mr. Trump. I think I ought to make a brief comment on Trump. In general, I support him. Why? Because he’s not a card-carrying member of the Deep State, number one. Number two, he’s never been in politics before. That’s good. He’s been in business his whole life. He tends to think like a business guy, not like a political guy.

I support Trump for those reasons. I support him for the fact that he’s not Hillary and he’s not a Democrat, because the Democratic Party at this point has just jumped the shark. It’s turned into a cesspool of every bad economic and political idea that you can imagine. In fact, Trump is rolling back a lot of regulations. It’s quite amazing. These are all good things.

But, and here’s the big but, he doesn’t have a philosophical core. In other words, he’s somebody that has never, I don’t think, has ever studied economics or history, so he basically does what seems like a good idea at the time instead of acting according to any principles. I hope his playing chicken with the Chinese and the Europeans doesn’t turn into a trade war because the way the human race increases its standard of living and its net wealth is by trading with people that do one thing better, trade with people that do other things better. It’s a question of marginal utility. He’s really playing with fire.

The answer to the question is if it turns into a trade war, and the Chinese are very proud, and Trump doesn’t want to feel like he’s ever going to lose anything, this could be a genuine catastrophe because of the very fragile state of the world economy. That’s my answer.

I’m on tenterhooks because it’s completely unpredictable what these political types are going to do. The people who are in governments in China, the U.S., and Europe, all over the world, they’re not the best and brightest. It’s the opposite. They’re power-seekers. They’re busybodies. They’re people who actually think they have a right to control other people. I find it very scary. They’re capable of anything.

Maurice Jackson: It seems to me that Mr. Trump could benefit from one of the presentations that you conducted at Jayant Bhandari’s Capitalism and Morality conference and/or he should read a book called “Economics in One Lesson,” by Henry Hazlitt. You had referenced us going through the storm, the eye at the moment. What are you doing to prepare yourself should the events come to fruition?

Doug Casey: I got involved in the cryptocurrencies about a year ago, actually, which was late in the game. It took me a while to understand the value proposition of bitcoin and many clones, but they were very, very good to me in the last half of last year until I sold almost all my position in December. I didn’t buy at the bottom, but I got lucky in top of the market.

I’m still involved in them for a number of reasons. I’m optimistic about the future of them. There are 2,000 of them right now. They’re like junior mining stocks. Most of them are either frauds or losers.

But I think the area is going to do well, especially as these cryptocurrencies spread to the Third World, countries in Africa, South America and Asia, where the currencies are only good within that country. I think that increasingly, and we’re talking about two-thirds of humanity here, can only save in their worthless local currencies, kwachas, or pulas, things of that nature. More of these people are going to get involved in bitcoin and its clones in the future because they’re transferrable internationally. You don’t have to use one of these bankrupt banks in any of these countries.

I actually like the cryptocurrencies. I’m doing that, to answer your question. I continue to buy gold coins. Not so much silver. I own a lot of silver, but it’s very bulky, believe it or not, so I continue to buy gold coins.

Incidentally, I buy the small gold coins, things like British sovereigns, or Swiss and German 10 and 20 mark pieces from the 19th century. The reason I do that is all of these governments’ customs services are on the lookout for things that look like one-ounce gold coins, personal experience traveling in Africa and South America. But the small coins look like small change: nickels and dimes. Who cares? I’m just buying the small coins.

Those things, I’m buying, speculating in junior mining companies, which are very cheap right now. It’s number three. Number four, as big as your economic risks are today, I think your political risks are even bigger; I continue to diversify my assets internationally. Those are the four things that I’m doing.

But I might say a fifth thing, which is continuing to look for entrepreneurial activities, goods and services that I can supply to the market that people will be willing to pay for because those things are of more benefit to them than their currency. I think that probably sums it up.

Maurice Jackson: Well, it’s a very interesting perspective there. I personally like divisibility myself, so I was surprised to hear you reference that. I think a lot of people get amazed at these 100-ounce bars. I always say to them, “Your best bet is divisibility.” My personal preference as well is 1/10 of an ounce versus an ounce. I’ll do that all day long.

But let me ask you this in reference to precious metals before we leave that. We all have our favorites. Can you tell us what your thoughts are on gold, silver, platinum and palladium, respectively?

Doug Casey: Four different elements and four different investment propositions. I continue to favor gold because it’s a very high unit value. It’s widely recognized. You know, out of all the metals, there’s 92 elements on the periodic table, most of them are metals. In their pure form, refined, they are only two metals that don’t look silverish. In other words, all the metals, iridium, rhodium, platinum, palladium, silver, iron, all of them, when they’re refined and are pure, they all look kind of silvery. They’re hard to tell apart. There are only two that standout. One is copper, which has a copper color, and gold, which is gold in color.

I’m a big fan of gold. I continue to buy it. Silver, I think, however, is the cheapest of the metals that you can speculate in, and the most volatile because it’s a small market. It’s worth maybe 10% of what gold is. As a speculation, I really like silver.

Platinum and palladium, this is a bet on technology, number one, and a bet on where they’re mined, number two. Because unlike gold, most of the gold that’s ever been mined is still in existence. It’s historic. It’s money. It’s an asset. But like silver, platinum and palladium are mined and they’re used, so there’s not a huge inventory overhang.

The question is the supply of those metals comes mostly from Russia and South Africa, but South Africa is a time bomb waiting to go off. That can present a lot of problems on the supply side. On the demand size, yes, they’re high-tech metals, and new uses will continue to be found for them on the one hand. But on the other hand, they’re mainly used as catalysts in the automotive industry today. The world is definitely going to go to electric cars where they’re not going to be needed.

Back in the 1960s, platinum traded for $30 an ounce or less. It wasn’t price-controlled the way gold was for the government. I don’t want to stick my nose in that game with platinum and palladium. There are bull arguments. There are bear arguments. But as a speculator, I don’t like to do things unless I can see that the odds are tilted heavily in my favor. It’s a 50/50 bet with those two metals from my point of view, so I’ll pass.

Maurice Jackson: If I were your son, which would you encourage me to do first: buy some precious metals or buy some mining companies?

Doug Casey: The first thing you’ve got to do is build capital. You’ve got to have an asset base. The first thing is to have the metals themselves. After you get a foundation of capital, at that point, you can start speculating in the mining companies because it’s the most volatile market in the world. Most of these companies dry up and blow away. That’s why people like Warren Buffett never touched them because they’re just way too risky and way too volatile to use as an asset.

Now is an excellent time because the markets are quiet. The metals are low. Now is a good time to build a position in them, physical cash position. It’s an excellent time to start building positions in well-managed, well-capitalized junior mining stocks. This market will turn. They’re going to run. When they do, it could be absolutely explosive.

Maurice Jackson: You know, I asked that question because I hear this frequently, and I’m pretty sure you’ve heard this throughout the years, someone gets excited about the space and they want to get into the mining companies. Then when they get this multi-bagger, that’s when they’ll decide to go ahead and get the metals. I always share with them, from my perspective, I’ve studied your work, I’ve studied others who are serially successful, they do the opposite and you just conveyed that. They get the metals first and then they go into the mining companies. Thank you for conveying that.

You’re still an active buyer in precious metals after all these years and you have a big position. Why?

Doug Casey: Because gold, and to a lesser extent silver because it’s an industrial metal as well as a monetary metal, gold is the only financial asset that’s not simultaneously someone else’s liability. Very important. Most people, their wealth is based on paper and that’s very risky in today’s world.

But there’s another reason I’ve got to draw to your attention. It’s that China is on its way up. The Chinese economy is already the size of the U.S. economy and it’s growing much faster. Not that there aren’t lots of problems in China. There really are, but still, looking at it over the long run, if we look a generation ahead, China is going to be triple the size of the U.S. economy. That’s going to change a lot of things.

What they are going to try to do, what they’re trying to do, is to have the Chinese yuan replace the U.S. dollar as the world’s currency. It’s going to take a while for that to happen, but in order to speed it up, I believe what they’re going to do is they’re going to back the yuan with gold. In other words, the yuan is going to become like the U.S. dollar was before 1933, or at least before 1971. When that happens, they’re going to find a lot of people buying gold.

Maurice Jackson: Conversely, when that does occur, would it not also then send a lot of those Federal Reserve notes back to the U.S.?

Doug Casey: Over the last generation, the major export of the U.S. has been dollars. We ship out dollars. The nice foreigners ship us in return Mercedes, and Sonys, and cocaine, and everything else. At this point, there are tens of trillions of U.S. dollars floating around outside the U.S. In fact, the U.S. dollar is the defacto currency of dozens of countries around the world.

The problem is this. When confidence in the U.S. dollar is lost, those dollars are going to start heading back to the U.S. In other words, other foreigners won’t want to take them, but Americans have to take them. They’ll come back to the U.S. in exchange for titles to American companies, titles to American land, and everything else. It’s quite possible for that reason.

We’ve had an artificially high standard of living in the U.S. because of the export of dollars for the last generation or more, but that could go in reverse. We could have a vastly lower standard of living for the next generation.

Maurice Jackson: If a lot of our listeners aren’t aware, the effects could be duplicitous because you could really just see the prices, not the value, but the prices of things exponentially just grow because all these new currency units are here and competing for your purchasing power. Now, as a reminder, we are licensed to buy and sell precious metals through Miles Franklin Precious Metals Investments, so if you have any inquiries, please feel free to contact us.

Of the four metals, which do you see ready for a breakout? It doesn’t have to be immediately, but of the four, which one do you see?

Doug Casey: Silver is the cheapest and the most volatile of these four metals. For capital gains, I’d go for silver, but silver is only worth, what, $16 an ounce, in that area. It has pretty low unit value. It’s rather inconvenient because it takes many, many, many pounds to be worth much money. Now still, as a speculation, I think it’s the place to be.

Maurice Jackson: Doug, I’m not alone in conveying this, but I believe you have a crystal ball in which you can see into the future. If anyone doubts me, I would encourage you to read Mr. Casey’s book entitled “Crisis Investing,” written in 1979. Now, can you share with us, using this crystal ball, what has your interest at the moment in the natural resource space that speculators are not paying enough attention to that may become the next big thing?

Doug Casey: What is the next big thing? I’ve got to draw your attention, Maurice, one of my other books, “Crisis Investing for the Rest of the 90’s,” is actually a much better book, and more recent, and more sophisticated. Don’t be afraid to look that one up, too.

What’s out there that people aren’t looking at today? I think the next 20 years could be breathtaking. I’m a fan of Ray Kurzweil’s thoughts on this. He wrote a book, which I recommend everybody read, called “The Singularity is Near.” Essentially, what he’s saying is that Moore’s Law, which basically posits the computer power doubles and costs halve every year to 18 months, it’s actually underway, not just with computers and artificial intelligence, but in robotics, in virtual reality, in genetic engineering, in space exploration. In other words, this is going to be the big thing over the next generation, over the next 20 years. It’s the advance of technology.

Now, I make the case that ever since biologically modern humans appeared on this planet roughly 200,000 years ago, technology has actually been advancing at the rate of Moore’s Law, but not at the current acceleration of Moore’s Law. In other words, when people first learned how to make fire, or use fire, say 200,000 years ago, maybe there were no further advances for another 50,000 years. Then they learned to make fire by rubbing sticks together. Then maybe it was another 50,000 years before they learned how to effectively knock flint, and then the bow and arrow, and then the this and that.

Technology has been accelerating from a very low pace, very slowly, for lots and lots of time. But since the end of the last ice age, 10,000 years ago, when agriculture developed, and cities started to develop, things moved faster and faster.

In other words, look at it this way. Suppose we’re standing in a huge sports stadium. At the bottom of the sports stadium, there’s a drop of water. At first, the drop of water doubles in size. There’s two drops and it takes an hour. Then to double again, it only takes a half an hour the next time. To double again, to get eight drops of water, it takes 15 minutes.

Still, as observers, we wouldn’t notice it was happening. It would have to double and double and double again. But at this point, the bottom of the stadium is covered with a sheen of water. If it doubles and doubles and doubles only three or four more times, we’re going to be washed away. That’s the way exponential growth works.

I think that we’re right at that stage right now. As serious as the problems of the world are, technology is going to overwhelm everything over the next 20 years. It’s the biggest black swan. Well, not really a black swan because a black swan is one that you don’t even know exists. But it’s the biggest thing that’s happening and it’s growing at an exponential rate right now. It’s going to change the whole character of the world.

Interestingly, this is happening at the same time as the world’s economic and financial foundations are withering away. Technology is expanding. I’m not exactly sure how it’s going to work out. Maybe science fiction is the best predictor. I’m not sure that’s a good answer to the question, but I’m just expecting gigantic change.

Maurice Jackson: Let’s switch gears here. In our last interview, we discussed the first book of the High Ground series entitled “Speculator,” and since, you’ve released this second book in the High Ground series entitled “Drug Lord.” It appears that the main character, Mr. Charles Knight, he’s back at it again. But before we discuss Drug Lord, for someone not familiar with “Speculator,” tell us about it.

Doug Casey: What my co-author, John Hunt, and I have tried to do is write a series of novels that reforms the unjustly besmirched reputations of highly politically incorrect occupations. It starts out with Charles, our hero, at age 23. He gets lucky with a mining stock, doesn’t have any money, has very little money, but he hits a long-ball home run, and decides to go off to Africa to investigate this company that’s made him all this money. He finds out it’s a fraud. He gets involved in a bush war in Africa and so forth.

It’s a hell of a good yarn about adventures in Africa. It’s quite an education in economics and in the mining business and politics and everything. That’s “Speculator,” the first in the series.

Last year, we released the second in the series, “Drug Lord,” where Charles, after running around the world with the money that he’s made from the first book, he becomes a drug lord, both legal and illegal drugs, FDA-regulated and DEA-regulated drugs. We explain the drug business, how you do it, how money is made, how money is moved, and so forth.

Now, of course, just like in the first book, the government steals most of the money he makes. Now he’s a little bit unhappy. The third book is called “Assassin.” It’s a study of the occupation of politician assassin. This is a hot potato, obviously, when you talk about a political assassination, but what we’re looking at is the morality of that, the techniques of it, and a revisionist history of famous political assassinations throughout history, and what Charles does with this information.

I’m just telling you what it’s about, but I’m not going to tell you what Charles does, but I think it’s going to be a blockbuster on its way to the fourth book in the series, which is more radical yet. I don’t even want to mention that. It’s going to scare too many people.

Maurice Jackson: What I want to share with you is please don’t share it with us because I’m looking forward to reading it because I’m just in Chapter Four of “Drug Lord.” For anyone that is involved in the natural resource space, “Speculator” is a must-read. We have it listed under our education tab on our website. When you just learn the nine P’s, you’ll discover how “Speculator” will assist you in your natural resource endeavors.

What I enjoy about reading your books is that you make a very clear distinction between the virtues of liberty and the vices of government. Again, it’s always fun to read your books, specifically in this High Ground series that you’re conducting here.

For our audience, if you’re seeking to purchase the High Ground series books, please visit highgroundseries.com.

Before we close, you are one of the featured speakers at the Sprott Natural Resource Symposium, which is being conducted the 17th through the 20th of July in Vancouver, British Columbia. What will you be discussing?

Doug Casey: Well, everything under the sun, quite frankly, because I’m giving a keynote speech, but in addition, I’m on a couple of panels. I want to be very wide ranging. At the same time, I want to be practical and give people some specific ideas about what they ought to do with their money.

These conferences, like this one we’re going to, Maurice, are very important. They give you an opportunity to hear lots of ideas in a short space of time, and talk to the managements of lots of companies, which is very important if you’re going to speculate in this area. I urge your listeners to show up and I look forward to greeting them personally; anybody that would like to meet me. I’ll certainly be there.

Maurice Jackson: I look forward to seeing you again. It’s always an honor, but one of the things, also, when you attend a conference such as the Sprott Natural Resource Symposium, is the intellectual capital that you also have from fellow investors and the networking you can do.

If I may just slightly digress here, two years ago, I met a gentleman at the Sprott Natural Resource Symposium in Vancouver. I read your book last year, “Speculator.” Lo and behold, I think in the interview, you gave a charge that stated basically, “If you want to become rich, you need to go to Africa.”

Well, lo and behold, I went to Africa twice last year, and the second trip I went there, there’s this gentleman who was with me in Vancouver that I met at the Sprott Natural Resource Symposium. Lo and behold, guess what. He also read “Speculator.” Here we were at a site visit. We were just discussing your book and we’re living, we’re actually being Mr. Charles Knight in some regards. It’s just an amazing experience, the networking that you can do, and the lifelong friends that you also have an opportunity to meet here at the Sprott Natural Resource Symposium.

Now, a day after the symposium, on the 21st of July, you’ll be speaking at Jayant Bhandari’s “Capitalism and Morality.” Can you share what the topic will be?

Doug Casey: It’s a fantastic, one-day conference that Jayant puts on. It’s about capitalism and morality, exactly what it says it’s about. The people who attend it are fantastic. They are motivated. The speakers are all great. If you’re going to Sprott, which you should do, you should definitely stick around one more day and go to Jayant’s “Capitalism and Morality” seminar. I’m glad you mentioned that, Maurice.

Maurice Jackson: Your presentations are phenomenal. The difference there is, just for clarification for our audience, the Sprott Natural Resource Symposium is investor-based, and Jayant Bhandari’s “Capitalism and Morality” is philosophy-based. I find it intriguing that the serially successful members in the natural resource space tend to have the same philosophical and political views. I don’t know if that’s just coincidence, but is there something you can share regarding that by chance? Do you notice the correlation there usually?

Doug Casey: Not necessary as a correlation, but very helpful, because you’ve got a lot of successful speculators like George Soros, who are moral cripples, in my opinion. But look, it’s very helpful to have a philosophical basis for what you do.

It is very hard to become wealthy if you believe that money is evil, or the love of money is the root of all evil, which is actually what the Bible says. You’re fighting against yourself if you believe that. This seminar is to overturn a lot of the false psychological, philosophical and moral beliefs that people have that actually limit them from becoming wealthy. It clears your mind, in addition, so very important.

Maurice Jackson: Last question. What did I forget to ask?

Doug Casey: One more thing, glad you asked, is that my first book was called “The International Man,” subtitled, “The Guidebook to Making the Most of Your Personal Freedom and Financial Opportunity Around the World.” I’ve recently acquired that website from my publisher, Legacy. We’re totally expanding and improving it. I hope everybody who’s listening goes on their computer to internationalman.com and signs up.

Every day, I think we’re going to send something that’s really going to be interesting and potentially very profitable. We want to make it into one of the most noteworthy websites on the web, so go to internationalman.com and sign up.

If anybody wants to get in touch with me, they can do so via that internationalman.com.

Maurice Jackson: Last, but not lease, please visit our website, www.provenandprobable.com, where we interview the most respected names in the natural resource space. You may reach us at [email protected]

Legendary investor and author, Doug Casey, thank you for joining us today on Proven and Probable.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
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Copper Miner Makes Key Acquisition

By The Gold Report

Source: Streetwise Reports   07/10/2018

The Mocoa deposit in Colombia has been acquired by this copper miner.

Libero Copper Corp. (LBC:TSX.V:, LBCMF:OTCQB ) recently announced it has completed the transaction with B2Gold Corp. to acquire 100% of the Mocoa porphyry copper-molybdenum deposit in Colombia. Libero has issued 10,400,000 shares comprising a 19% stake in Libero Copper and a 2% royalty on the project.

B2Gold will have a right to participate in future equity financings to maintain its current stake.

Additionally, Libero has a right of first refusal on a sale of the royalty.

The Mocoa deposit inferred resource at a cut-off of 0.25% copper equivalent is 636 million tonnes of 0.45% copper equivalent, including 4.6 billion pounds of copper and 511 million pounds of molybdenum.

The Mocoa deposit takes its name from town of Mocoa, which is 10 km away and is near the Ecuador border. B2Gold has already conducted diamond drill programs there, 5,123 meters in nine holes in 2008 and 1,768 meters in three holes in 2012.

The Mocoa deposit lies in the Eastern Cordillera of Colombia, a 30-kilometer-wide tectonic belt. This area is also the site of Mirador (438 million tonnes measured and indicated at 0.61% copper and 235 million tonnes inferred at 0.52% copper), San Carlos (600 million tonnes inferred at 0.59% copper) and Panantza (463 million tonnes inferred at 0.66% copper).

Drill tests there have shown the copper concentrate had a grade of 24% copper with a recovery of 86% and the molybdenum concentrate had a grade of 55% molybdenum with a recovery of 83%.

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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: 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 Libero Copper, a company mentioned in this article.

( Companies Mentioned: LBC:TSX.V:, LBCMF:OTCQB ,
)

Gold Miner Reports Q2 Gold Production Results and Provides Guidance

By The Gold Report

Source: Streetwise Reports   07/10/2018

The company met production targets and achieved steady-state production at Brucejack.

Pretium Resources Inc. (PVG:TSX; PVG:NYSE) recently reported second quarter gold production results which are:

  • 111,340 ounces of gold produced
  • 14.9 grams per tonne gold mill feed grade
  • 97.7% gold recovery rate
  • 236,990 tonnes of ore milled
  • 2,604 tonnes per day ore milled

“With more than 187,000 ounces produced in the first half of 2018, we have delivered on our first half 2018 guidance of 150,000 to 200,000 ounces of gold. The successful integration of our grade control program into our mining process has resulted in increased grade to the mill with production exceeding grade control estimates for the quarter. Brucejack has now achieved steady-state production, and we expect to deliver 200,000 to 220,000 ounces of gold for the second half of 2018,” said Pretium President and CEO Joseph Ovsenek.

The company also provided guidance for the second half of 2018 for the Brucejack Mine. Gold production at this mine is expected in the range of 200,000 ounces to 220,000 ounces for the second half of 2018, for total 2018 gold production of 387,000 ounces to 407,000 ounces.

For the second half of 2018, all-in sustaining costs are expected to range from US$710 per ounce gold sold to US$770 per ounce gold sold. Bruckjack Mine production has now reached a steady state, so there will be an increased focus on operational efficiency to reduce costs, the company indicated.

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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: Pretium Resources. 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 Pretium Resources, a company mentioned in this article.

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

Gold Explorer-Developer, with Exploration Drilling on Deck, Chosen as a Top Pick

By The Gold Report

Source: Streetwise Reports   07/10/2018

An Echelon Wealth Partners report explained the rationale for elevating this firm’s status.

A July 9 research note indicated that Echelon Wealth Partners selected Revival Gold Inc. (RVG:TSX.V) as a Top Pick based on expectations for its 2018 drill program that aims to expand the resources at Beartrack in Idaho. The company plans to drill 8,000 meters along the Panther Creek Fault, which primarily hosts Beartrack’s mineralization and which is open along strike and at depth. Analyst Gabriel Gonzalez wrote, “We believe there is good potential for the company to add resources to the recently announced 1.98 million ounce (Indicated plus Inferred) resource estimate.”

Gonzalez listed the positive attributes of this gold exploration and development company. For one, Revival has strong assets, including Beartrack, which produced more than 600,000 ounces between 1995 and 2001, and Arnett Creek.

Revival has good optionality to an increasing gold price at Beartrack. Along with the existing 1.98 million ounces of mineral resources in a pit there, it has 488,000, or 25% more, ounces, contained in a 0.4 gram/ton cutoff pit shell. “The base case resource uses a 45-degree pit wall, which we believe through optimization could bring additional resource blocks into the pit design, particularly near surface and along strike to the north and just below the south pit,” explained Gonzalez.

Revival is led by an experienced team, including Hugh Agro as CEO and Steve Priesmeyer as vice president of exploration, and board of directors, including Diane Garrett, who sold Romarco Minerals for US$550 million, and Wayne Hubert, who sold Andean Resources for CA$3.5 billion.

With all of the above, in addition to Beartrack and Arnett Creek being in the stable jurisdiction of Idaho, Revival Gold is a potential takeout target. Gonzalez purported that senior gold producers “will soon have to replenish their project pipeline for higher-grade projects with strong production potential,” and Revival could benefit.

Gonzalez pointed out that Revival experienced recent positive market traction after completing confirmatory drilling at Beartrack in January 2018 and subsequently releasing the NI 43-101 resource estimate for the project. Since then, the stock closed at CA$0.94 per share two times. “We believe the company’s increasing market visibility and exploration catalysts will continue to bode well for the shares,” Gonzalez said.

Those near-term catalysts include 2018 drill results from Beartrack in H2/18, metallurgical test results from Beartrack in Q4/18 and start of drilling at Arnett Creek once permits are received, expected in H2/18.

Echelon has a Speculative Buy rating and a CA$1.70 per share price target on Revival Gold, whose stock is currently trading at around CA$0.87 per share.

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: Revival Gold. 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 Revival Gold, a company mentioned in this article.

Disclosures from Echelon Wealth Partners, Revival Gold Inc., July 9, 2018

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Garbriel Gonzalez, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Industry.

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No

Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes [12/6/18-14/6/18: Beartrack-Arnett Creek (Idaho) Deposit, Core Shack, Plant. Transport from Denver, and local incidentals paid by issuer.]

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

( Companies Mentioned: RVG:TSX.V,
)

Energy Infrastructure Company Closes ‘Transformational’ Acquisition

The Energy Report

Source: Streetwise Reports   07/10/2018

An iASecurities report discussed the benefits of the merger and next steps for the acquirer.

A July 9 iA Securities research note indicated that AltaGas Ltd. (ALA:TSX) closed its CA$9 billion deal with WGL Holdings and iASecurities raised its per share target price on Buy rated AltaGas to CA$30 from CA$29. The current share price is about CA$28.19. “This highly anticipated transaction is material as it essentially doubles the company’s enterprise value and provides investors with additional exposure to power, utilities and midstream assets in the United States,” wrote analyst Elias Foscolos.

Per the acquisition agreement, AltaGas issued CA$2.5 billion in equity, Foscolos explained. It did so through conversion of outstanding installment receipts into 80 million shares and through a bridge loan of CA$2.3 billion.

The company intends to reduce the bridge financing by issuing about CA$0.98 billion of hybrid/preferred securities and by divesting about CA$1.4 billion in assets. The sale of assets and the hybrid financing are the next catalysts for the company, the announcement of which “we believe equity investors will be eagerly anticipating,” Foscolos commented.

With the closing of the WGL transaction, AltaGas “is a transformed company,” Foscolos noted and explained why.

One, it becomes a more U.S.-focused, lower-risk company with an estimated 70%-plus of EBITDA to originate in the States. Only 10–15% of 2019 EBITDA will be exposed to short-term commodity prices. Medium- and long-term agreements will support about 80% of AltaGas’ 2019 EBITDA.

Two, the merger provides the company with a large project pipeline. By incorporating WGL’s midstream franchise in the Marcellus/Utica Basin, AltaGas will boost its CA$2 billion of internal growth capital projects to CA$5.8 billion.

Three, the transaction increases AltaGas’ common equity valuation by roughly CA$2.2 billion, thereby increasing its market cap, too.

Also noteworthy, Foscolos said, is that adjusted funds from operations are expected to grow by about 10% through 2020, which could support a larger dividend. In fact, AltaGas is targeting an 8–10% dividend increase.

Moving forward, AltaGas “still needs to execute on a number of fronts,” Foscolos indicated. It must integrate WGL into its company. It must divest of CA$1.4 billion of assets, which “could be more challenging.” If it cannot do this, it plans to make up any difference by issuing debt. Lastly, the company must close the CA$0.98 billion hybrid financing.

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: 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.

Disclosures from iA Securities, AtlasGas Ltd., Research Update, July 9, 2018

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

The Industrial Alliance Securities Inc. research analyst(s), who cover the issuer discussed, members of the research analyst’s household, research associate(s) or other individual(s) involved directly or indirectly in producing this report: a. have a long position in its common equity securites.

The analyst has visited the issuer’s operations. No payment or reimbursement was received from the issuer for the associated travel costs.

In the past 12 months, neither iA Securities, its officers or directors, nor any analyst involved in the preparation of this report have provided services to the issuer for remuneration other than normal course investment advisory or trade execution services.

( Companies Mentioned: ALA:TSX,
)

Gold Miner’s Latest Drill Results ‘Continue to Support Growth Plans’

By The Gold Report

Source: Streetwise Reports   07/10/2018

A CIBC report relayed the latest exploration findings at one of its Canadian mines.

In a July 6 research note, CIBC analyst Cosmos Chiu indicated that Kirkland Lake Gold Inc. (KL:TSX; KLGDF:OTCQX) reported results from underground drilling in the eastern extension of the South mine complex at Macassa, which “continue to support the company’s growth plans” there. CIBC increased its target price on the company to CA$31 per share from CA$26. In comparison, it is trading today at around CA$29.29 per share.

At Macassa, the company intends to finish building the #4 shaft and to reach annual gold production of more than 400,000 ounces. Chiu noted that “intersections reported today are in close proximity, or ~560 meters (~560m) south-southeast, of the new #4 shaft,” the first construction phase of which is scheduled for completion in early 2022.

Chiu relayed that drilling indicated additional resource expansion as all of the extensions but two were outside of the existing mineral resource area. The high-grade ones included 241 grams per ton (241 g/t) over 1.1m true width, 24.3 g/t over 1.4m true width and 54.2 g/t over 2.3m true width. Others, within the footwall veins, included 50.7 g/t over 0.8m and 16 g/t over 0.7m.

Drilling also identified a “‘high potential area’ within the eastern extension of the South mine complex of high grades and exceptional true widths,” Chiu said. It featured an approximately 73m strike length and 45m dip. Average grades there were greater than or equal to 30 g/t. True widths were greater than or equal to 30m.

Chiu added that Kirkland Lake, “one of our preferred gold producers,” is trading below its peers but warrants a premium to the group based on its “ability to deliver attractive returns to investors.” He reiterated CIBC’s Outperformer rating on the miner.

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.

Disclosures from CIBC, Kirkland Lake Gold Ltd., July 6, 2018

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers.
Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Kirkland Lake Gold Ltd.

· Kirkland Lake Gold Ltd. is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months..

· CIBC World Markets Inc. has received compensation for investment banking services from Kirkland Lake Gold Ltd. in the past 12 months.

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Kirkland Lake Gold Ltd. in the next 3 months.

( Companies Mentioned: KL:TSX; KLGDF:OTCQX,
)