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Post by suregold on Sept 1, 2023 10:22:04 GMT
Goldfinger:
What other companies are you looking at here in the junior mining sector? What has your attention?
Bob Moriarty:
Everything has my attention because it’s so absurdly cheap. Now when you talk about really wonderful opportunities to invest, you’ve got Snowline, you’ve got New Found Gold. I mean, New Found Gold (NYSE:NFG) keeps coming out with intercept after intercept of high grade, big dimension intercepts of gold.
Who knows? Are they talking 30 million ounces? Are they talking 50 million ounces? I don’t know. But I know that New Found gold has done one of the best jobs coming from scratch exploration to raising money to drilling to reporting. I’m just really impressed with the team’s newfound gold. Now Snowline has really excellent results, but one of the things nobody talks about is that it’s in the middle of nowhere in the east Yukon. So it’s going to cost a lot of money to get to Snowline. But they’ve got some absolutely fabulous intercepts as well.
But you’ve got dozens and dozens of companies that are selling at giveaway prices and I think that anyone that invests now is going to do very well. Not just in the long term, but in the medium term.
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Post by suregold on Sept 1, 2023 10:30:02 GMT
Goldfinger:
Final question: how much value do you give to insider buying? Like, for example, in New Found Gold? You have Eric Sprott buying pretty regularly and continuing to accumulate that stock. Does that make you very bullish, or is it something that you don’t really pay attention to?
Bob Moriarty:
Their assay results are so outstanding, that they’re the best I have ever seen. No one I know is smart enough to even guess at how much gold New Found Gold has. But there’s a reason Eric Sprott is a billionaire. Eric Sprott made $2 billion when his company bought the Fosterville Mine. He made $2 billion on that trade (Crocodile Gold later became Newmarket Gold and then Kirkland Lake Gold, Agnico Eagle now operates the Fosterville Gold Mine)
New Found Gold (AMEX – Daily)
Goldfinger:
So he’s betting big again on this one. I think his position is almost $200 million worth. He’s definitely over 10%, right?
Bob Moriarty:
Yeah, but $200 million is nothing for Eric Sprott.
Goldfinger:
Well, I think it’s something to everybody, right? That’s a lot of money.
Bob Moriarty:
Well, yeah, but the only thing is he doesn’t want to go over 20%, right?
Goldfinger:
Yes, he won’t go above 19.9%. I agree with you and Mr. Sprott and I bought my first New Found Gold shares last week. I can envision a scenario playing out similar to Great Bear at the end of 2021. There aren’t many gold projects with grades like Queensway, and with such a consistent hit rate.
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Post by likeike on Sept 1, 2023 14:46:25 GMT
Producing The Best Drill Results I’ve Ever Seen
by Ceo Technician | posted in: Bob Moriarty, Charts | 0
In this month’s conversation with 321gold founder Bob Moriarty we discuss the negative investor sentiment in the junior mining and commodities sectors. Bob also believes that investor sentiment on the US stock market has reached frothy levels, and the broader stock market is set up for a crash as soon as September. We then delve into Eloro Resources’ MRE announcement and discuss why the market reaction was so negative. We conclude by discussing a company that Bob says has been generating the best gold drill results he’s ever seen in his life. Without further ado, Energy & Gold’s August 2023 conversation with Bob Moriarty…
Goldfinger:
I think the first order of business is to talk about the overall market environment and the end of August. In fact, I think you probably read the blog I wrote yesterday called “The State of the Junior Mining Sector: 2018 Redux”. And the point I made was, gold is holding above $1900. In fact, it’s actually above $1970 this morning, and companies are putting out good exploration news on a pretty regular basis across the sector. Yet the junior mining sector has had horrendous sentiment for the last couple of months. This is some of the worst sentiment I’ve ever seen. A lot of companies are cutting back and not attending conferences, they are preferring to wait and see how things play out after Labor Day.
What’s your take on this current market environment?
Bob Moriarty:
Well, strangely enough, what we should have done is you put out that piece under your name and my name, but I didn’t have to contribute anything because you pretty much nailed it. As you know I’m a contrarian. And believe me, when everybody hates commodities, when everybody hates junior mining companies, the sentiment is horrible and people don’t want to advertise and they don’t want to spend money on conferences, that’s the opportunity of a lifetime. We’ve discussed this literally for months, I believe the general stock market is on the edge of a cliff, and I’ve said so publicly, and we’ll know in the next month.
Goldfinger:
So the general market is on the edge of a cliff. What could push it over the cliff?
Bob Moriarty:
The internals of the market are horrible. And there are so many things going on, like the Chinese property fund (Evergrande Group) that’s failing, and high interest rates, and the Fed saying they’re going to continue to raise interest rates, commercial real estate and homeowners are waking up for the first time in 20 years to how important the cost of interest is on a 20 or 30 year mortgage. So there are so many internals that are collapsing that I personally just can’t see any alternative other than a massive crash.
Goldfinger:
One of the ideas that I’ve read recently that could play out is the situation where the labor market is starting to finally show some cracks. We’re starting to see employers pulling job openings and employees not being as choosy in terms of taking jobs and asking for wage increases. So we’re starting to see some cracks in the labor market. But the economy overall seems relatively strong. I mean, it’s held up so far. This idea of a 70s U-turn in inflation where the Fed pauses for six months or so and inflation comes back and it creates an even bigger mess.
If inflation goes from 3% back to 5% or even higher, and the Fed has to do a lot more tightening. A scenario like that is going to be way more painful than the first set of rate hikes that got us up to 5.5%. What are your thoughts on this idea of a 70s repeat?
Bob Moriarty:
Well, strange enough, because I lived through the 70s and I watched it play out, I’m convinced there’s an 80% or 90% chance of that happening. Did you happen to see what the latest contracts for UPS drivers total?
Goldfinger:
No, I didn’t see that.
Bob Moriarty:
A UPS driver without a college education can make about $170,000, $100,000 in wages and $70,000 in benefits. And there are airlines that are negotiating a 40% increase in wages over four years. I don’t believe for a minute that inflation is dead.
We’ve just got so many bad things coming. I have to say, I’m convinced we’re going to have a crash. And strange enough, you can go back to 2001. I’ve made a lot of accurate predictions and we’ll just have to see if I’m correct this time. But I absolutely believe the next move in the major stock market is down. But I will give credit to gold. Gold and silver have done very well and I think they’re headed higher. And one day soon somebody’s going to wake up to the opportunity in commodities and resource stocks.
Goldfinger:
Yeah, I mean, this is a very strange environment with gold actually really trading well. And if we keep it simple, gold is in an uptrend. Gold is above its 200 day moving average. Yes, it’s down from its May high, but it’s still close to $2,000 an ounce. And yet the daily sentiment index for gold was as recently as last week down to about 20. Have you ever seen anything like this where the gold price is actually trading pretty well, but the sentiment is so negative on it?
Bob Moriarty:
No, I haven’t. The Dailly Sentiment Index for gold actually got down to a low of twelve a couple of weeks ago, but the price wasn’t bad at all. But I am a believer in sentiment. Sentiment says gold and silver are going higher.
Gold (Daily – One Year)
Goldfinger:
Yeah, it’s true. And there’s a lot of reasons why gold shouldn’t be going higher, including positive real interest rates. But something seems to be driving it and holding it up. Do you think that part of the explanation could be central bank buying and China really loading up here?
Bob Moriarty:
That’s certainly true. Now, you know, 95% of what I pay attention to is sentiment, but obviously there are other factors. And I think central banks realize the trouble the west is in financially. This just isn’t the dollar. I mean, Europe is collapsing. There have been 500,000 bankruptcies in Germany alone. And it all goes back to the sanctions a year and a half ago, which were economic suicide.
Goldfinger:
It’s interesting that we had all those sanctions and natural gas soared and the cost of heating a home in Europe soared. But we had a mild winter, and the natural gas price has cratered since. Do you see that as being a problem again this winter, or does Europe have this situation all figured out now?
Bob Moriarty:
Well, I think the leadership in Europe overall is so poor, they’re totally clueless. The sanctions were stupid. There was no purpose to them whatsoever. They hurt Europe without hurting Russia. They hurt the United States as well. I mean, the IMF just came out with a report on the total. Let me think about how they put it. The total decrease in economic capacity for the United States and Europe. And it was down, like, $6.9 trillion, and it was actually up for Russia. The sanctions were stupid. It was part of this plan by the United States. Like, we control everything. We make all the decisions. And I think one of the things we need to talk about is BRICS. I think the meeting that just concluded was one of the most significant economic events in 500 years.
Goldfinger:
So tell us about the meeting in South Africa. What happened? And is there going to be a new BRICS currency coming about?
Bob Moriarty:
Well, that’s a really good question, and someone slipped in a mickey and said they were going to go to a gold currency and announce it at the show. But the problem with it is India’s dead set against, and I was fairly certain in advance they would not be announcing a currency. What was significant was they had five members, they’re adding six more, and they’ve got 30 people who have applied. When you look at the numbers, the people in bricks now control, or will control, 80% of the oil market in the world and about over 55% of the world’s economy. The United States and Europe is ignoring BRICS, and I think they’re ignoring it to their peril.
So while BRICS has not announced a currency, I think down the road, when things come unglued, people are going to realize the only solution is to go back to a gold based currency, because it works. Now, India has just announced that they’re going to be trading for oil with rupees. And that’s just not going to last very long. I mean, rupees? They print rupees on used toilet paper.
Goldfinger:
They could have a common currency for trading purposes, to settle trade between countries, right?
Bob Moriarty:
Well, the problem with that is, yes, they could. However, everyone is trying to defend what they perceive as their self interest. So I don’t think they will come up with a common currency. There is no simple common currency. However, what any country could do immediately is announce their time, their currency, to gold. If they did that, they would be the richest country in the world.
Goldfinger:
And how could that happen? I mean, tying it to gold, that means they would have to continue to hoard gold as the supply of the currency expands over time, right?
Bob Moriarty:
No, not at all. That’s a mistake that everybody makes. You don’t need a single ounce of gold to have a gold based currency. The only thing that gold does for currency is give discipline. Now, if you had discipline, which governments never do, you wouldn’t need the gold. Okay? So inevitably, yes, you need gold. But the question is, how much discipline is there? Now, we had discipline in 1944 because literally, we controlled, I think, 80% of the gold reserves in the world. But through Korea and Vietnam, we squandered all our gold, which is really stupid. And France realized, hey, wait a minute, the US. Is running out of gold. So literally, France started to run on gold, which started the gold going up from 35 to 42 and then being totally uncontrolled.
However, if you go back to the French revolution, starting in 1789, when Napoleon took over 1796 and the currency was totally out of control, he said, it’s bullshit. Okay? And he went back to gold and silver. Any country in the world could go back to gold or silver right now, and everyone would want to trade with them. But you don’t need gold. You need discipline.
Goldfinger:
Discipline, that’s something in short supply these days, especially when it comes to government spending.
Bob Moriarty:
Nah, nah. It’s always been in short supply.
Goldfinger:
Let’s turn to junior mining. So one of the companies that we have talked about many times is Eloro Resources (TSX:ELO). Eloro put out a maiden resource for their flagship project, Iska Iska. Now, the resource size is very impressive. We’re talking about over a billion pounds silver equivalent, 670,000,000 tonnes in total. However, this is a unique maiden resource estimate. I haven’t seen one like this too often. Usually the average resource grade would be in grams/tonne (for gold and silver) or a percentage for base metals, this sort of presentation of net smelter values is more common in a PEA or feasibility study. Did you have a chance to look at the news this morning?
Bob Moriarty:
Yeah, I sure did. It’s interesting, and I’m glad that you brought it up. What’s happening is the typical buy the rumor, sell the news. But when it sinks into investors that a 670,000,000 ton resource is a big deal, and 1.15 billion oz of silver equivalent is a big deal. However, the resource is five months late, and people got pissed off, and they’re taking the opportunity to turn it into a liquidity event. They’re taking the opportunity to sell. And I feel bad for Eloro, but they did it to themselves.
Goldfinger:
They did it to themselves because they gave guidance to a date and then had to extend that date six months.
Bob Moriarty:
Correct.
ELO.TO (Daily)
Goldfinger:
Now, in terms of the numbers in this resource, it’s kind of hard to understand because previously the drill intercepts were presented in silver equivalent values, and this is not in silver equivalent values. This is breaking down the different metals in terms of grade and then putting it into a Net Smelter Return value (NSR), which is something that most investors aren’t used to. The NSR values represent the net revenue that the owner of a mining property receives from the sale of the mine’s metal products less transportation and refining costs. Now, the open pit inferred resource at Iska Iska is a net smelter return value of $20.32 a ton. That seems like it’s much different than the $90/tonne rock that we were looking at previously. Investors have responded by selling their shares and asking questions later. Obviously, metal recoveries and transportation costs play a role, but it still seems very low. Why is this number so much smaller?
Bob Moriarty:
That’s a good question. And I not only don’t have a good answer, I don’t even have a bad answer.
Goldfinger:
It’s a very large deposit with a low strip ratio, but it’s hard to figure out exactly what the economics of this are going to look like. Eloro says it will begin making preparations for a PEA (preliminary economic assessment) and that will include infill drilling, as well as additional exploration drilling to test this large intrusive body at depth that extends to the south of the Santa Barbara Area towards Porco and Mina Casiterita. Do you think that is going to be something that the company is going to focus on?
Bob Moriarty:
It’s going to be icing on the cake. One of the things that investors are simply not aware of and it’s because there are so few projects that have these kind of numbers. When you get into 500, 600, 800 million tons, the cost of mining goes down a lot. Another important thing to note is the strip ratio for the open pit is 1:1, that makes the economics much better than a mine with a 4:1 or 5:1 strip ratio.
I’m well aware of what the cost of mining is at St. Cristobal and it’s under $4/ton. So you can have $10 a ton ore and it’s economic. Now their cut off grade is $6 a ton. So really people are underestimating it. I don’t think the values reflect what they really have. I think it’s much higher than that.
But this is the kind of thing that there will be three or four companies in the world that could take on a project like this and they’re going to look at it and they’re going to be quite impressed. From a major’s point of view, this is a hell of a MRE.
Goldfinger:
What other companies are you looking at here in the junior mining sector? What has your attention?
Bob Moriarty:
Everything has my attention because it’s so absurdly cheap. Now when you talk about really wonderful opportunities to invest, you’ve got Snowline, you’ve got New Found Gold. I mean, New Found Gold (NYSE:NFG) keeps coming out with intercept after intercept of high grade, big dimension intercepts of gold.
Who knows? Are they talking 30 million ounces? Are they talking 50 million ounces? I don’t know. But I know that New Found gold has done one of the best jobs coming from scratch exploration to raising money to drilling to reporting. I’m just really impressed with the team’s newfound gold. Now Snowline has really excellent results, but one of the things nobody talks about is that it’s in the middle of nowhere in the east Yukon. So it’s going to cost a lot of money to get to Snowline. But they’ve got some absolutely fabulous intercepts as well.
But you’ve got dozens and dozens of companies that are selling at giveaway prices and I think that anyone that invests now is going to do very well. Not just in the long term, but in the medium term.
Goldfinger:
One of the points I made in my post yesterday is that it’s a stock pickers market, that there’s going to be winners and there’s going to be losers. And a lot of it’s going to have to do with how well companies are able to finance and then obviously the quality of their results. So are you saying that this is more of you can buy almost anything here and it will move up.
Bob Moriarty:
You could go into a room with a three inch dartboard and you could stand 15 feet away from it and pick up a dart and get ready to throw it and then turn off the light and still hit it. If a company is in business three months from now, it’s going to be a good investment.
Goldfinger:
Have you followed the Aston Bay thing at all? The storm copper deposit in Nunavut. Have you followed that one?
Bob Moriarty:
Just barely, because it’s too popular. I’m not a group follower. And everybody jumped on that story and the stock ran from $.04 to $.34 in two weeks. And I never like those really popular stories.
Goldfinger:
Okay. And then Mr. Trump was arrested last week and got a mugshot taken of him. And he became even more popular as a result of the mug shot, Trump raised even more money for his 2024 presidential campaign. Are we going to have another Trump presidency?
Bob Moriarty:
The real question, I think, should be, is there going to be an election in 2024? There is serious, credible evidence with documentation that the Biden family has taken $50 million in bribes, and it’s not news. Okay. Now, we know the FBI had Hunter Biden laptop prior to the 2020 election. We know that they knew it was real. We know that the person who not Secretary of State National Security Advisor Jake Sullivan, was the guy who prompted 51 intelligence professionals to call it Russian disinformation. We know the whole Russian collusion thing about Trump was a lie, and the FBI knew it and the DOJ knew it. We’re going to have either civil war or revolution. The essence of the charges against 19 people in Georgia was they believed it was a stolen election.
And of course, the only reason they believed it was a stolen election was because, of course, it was a stolen election and the epicenter was in Georgia. So I think this proves two things. It proves, one, that there’s a God, and it proves two, she has a sense of humor because every time those idiot Democrats turn around and indict Trump on more stupid charges, he gets more popular. After Democrats figured it out, they’d say, we need to leave this guy alone. He can do enough damage to himself.
Goldfinger:
It’s like his legend is growing the more times they bring him into court. I am not a Trump fan at all, but at this point a part of me is rooting for him because he’s the underdog.
Bob Moriarty:
Exactly. That’s like the sanctions, if the sanctions don’t work, then stop. Okay? If indicting Trump doesn’t do anything for you, then stop doing it.
Goldfinger:
Is there any precedent for a president having pending criminal charges? I think this is going to be really interesting because it’s unlikely these cases are going to be resolved by next November. So there’s a possibility of a sitting president having felony charges pending against him.
Bob Moriarty:
Now, are you talking about Biden or Trump?
Goldfinger:
Well, I don’t think Biden’s going to get reelected, so I’m talking about Trump.
Bob Moriarty:
Let me tell you something. If Biden isn’t in jail a year from now, there’s something wrong with our legal system.
Goldfinger:
That’s only a year from now. The legal system doesn’t move that fast, Bob.
Bob Moriarty:
Well, it could if it wanted to. It certainly moved that fast when they wanted to make Trump look like an idiot. We’re in an area we’ve never been before. The corruption is total and absolute. Some of this stuff are you familiar with the nuances of appointing a special counsel?
Goldfinger:
No.
Bob Moriarty:
According to the DOJ regulations, you appoint a special counsel and he has to be one from outside the DOJ and two, more or less honest. Okay, so they appointed somebody from inside the DOJ who had already been covering up for Hunter Biden for five years. Okay? And to say David Weiss is honest. He’s not honest. He’s a crook. Okay. There was so much evidence against Hunter Biden. Somebody did a count and it was somewhere 288 Felonies or 588 Felonies. I mean, the guy smoking crack and taking pictures of it and hiring hookers, and he’s being guarded by the Secret Service at the same time. Now, was it some kind of mystery to the FBI and to the DOJ that he was dirty? Had they not figured that out? He left a crack pipe in a rental car.
Goldfinger:
Ok, but these are relatively petty charges. I mean, you know how many people are smoking crack in this country every day, right? So he’s taking pictures of himself smoking crack. So what?
Bob Moriarty:
$50 million in bribes is relatively minor?
Goldfinger:
At this point it’s an accusation that is not proven, they need to go into the banks and find the paper trail.
Bob Moriarty:
They have already done that. The committee that’s investigating Biden, a woman came out who’s on the committee and she said, look, I cannot give you the specific details of the reports that were filed with the treasury, but it appears that the total amount of bribes to the Bidens was $50 million. And that included evidence. 17 phone calls from the head of Burisma to Hunter Biden and Joe Biden. Joe Biden was on two of the phone calls, and the FBI had phone calls for years, and he was an informant for the FBI. I mean, what do these guys need to realize? It was a crime. I mean, the only thing you can say about Biden is that as far as taking bribes, compared to the Clintons, he’s a piker.
Goldfinger:
All right. Let’s return to the stock market, you’re forecasting a market crash in September. So is this going to be a market crash where gold and silver hold up, or is this going to be a market crash where gold and silver gets sold off, too?
Bob Moriarty:
What scares me and this is the bad news, what scares me is that in a general market crash, a major market crash, everything gets taken down. The number one gaining stock in the 30s during the Depression was homestake. But even Homestake Mining got taken down in October of 1929. So what I fear is gold and silver being taken down, and what I hope is they don’t.
Goldfinger:
Yeah. Because it’s interesting to hear you say you can buy any junior now, but there’s going to be a market crash, because my experience is the juniors are going to get flattened like a pancake in a market crash.
Bob Moriarty:
They already have been.
Goldfinger:
Yeah, but it can get worse. I remember October 2008.
Bob Moriarty:
That’s true. That’s a really good point. I am not uncomfortable, I don’t care if the stock price goes down. I look at it as such a tremendous opportunity. I don’t give a damn what the total value of my shares is tomorrow or next week or next month. I believe they will be much a higher a year from now.
Goldfinger:
Final question: how much value do you give to insider buying? Like, for example, in New Found Gold? You have Eric Sprott buying pretty regularly and continuing to accumulate that stock. Does that make you very bullish, or is it something that you don’t really pay attention to?
Bob Moriarty:
Their assay results are so outstanding, that they’re the best I have ever seen. No one I know is smart enough to even guess at how much gold New Found Gold has. But there’s a reason Eric Sprott is a billionaire. Eric Sprott made $2 billion when his company bought the Fosterville Mine. He made $2 billion on that trade (Crocodile Gold later became Newmarket Gold and then Kirkland Lake Gold, Agnico Eagle now operates the Fosterville Gold Mine)
New Found Gold (AMEX – Daily)
Goldfinger:
So he’s betting big again on this one. I think his position is almost $200 million worth. He’s definitely over 10%, right?
Bob Moriarty:
Yeah, but $200 million is nothing for Eric Sprott.
Goldfinger:
Well, I think it’s something to everybody, right? That’s a lot of money.
Bob Moriarty:
Well, yeah, but the only thing is he doesn’t want to go over 20%, right?
Goldfinger:
Yes, he won’t go above 19.9%. I agree with you and Mr. Sprott and I bought my first New Found Gold shares last week. I can envision a scenario playing out similar to Great Bear at the end of 2021. There aren’t many gold projects with grades like Queensway, and with such a consistent hit rate.
I think that’s a perfect spot to wrap up, Bob. Thanks again for your time and insights, I look forward to a market crash in the next two months (laughs).
Disclosure: Eloro Resources and New Found Gold are advertisers on 321gold.com so naturally Mr. Moriarty is biased. Eloro Resources is a sponsor of Goldfinger Capital. Please do your own due diligence.
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Post by likeike on Sept 1, 2023 16:19:56 GMT
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Post by likeike on Sept 4, 2023 16:20:21 GMT
Bob Moriarty:
Their assay results are so outstanding, that they’re the best I have ever seen. No one I know is smart enough to even guess at how much gold New Found Gold has. But there’s a reason Eric Sprott is a billionaire. Eric Sprott made $2 billion when his company bought the Fosterville Mine. He made $2 billion on that trade (Crocodile Gold later became Newmarket Gold and then Kirkland Lake Gold, Agnico Eagle now operates the Fosterville Gold Mine)
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Post by likeike on Oct 4, 2023 12:59:50 GMT
WHAT’S THAT TEASED “LARGEST GOLD FIND IN THE LAST 30 YEARS?”
Luke Burgess teases "The #1 Gold Stock of the Decade" in pitch for Junior Mining Trader... so what is it? Thinkolator answers coming...
By Travis Johnson, Stock Gumshoe, May 5, 2021
Irregulars Quick Take
Paid members get a quick summary of the stocks teased and our thoughts here. Join as a Stock Gumshoe Irregular today (already a member? Log in)
Fashions come and go in a flash in the investment world, but even when gold is a little beaten up, as it arguably has been in recent months as the gold price has come down by 15% or so from the highs of last August, there’s always at least a little simmering level of interest in junior gold miners. After all, the romantic notion that you can turn a barren patch of dirt into nice, shiny gold is endlessly appealing.
I know, I know, it’s a little less appealing now that the “get rich quick” dreams of the tech and crypto worlds have eclipsed the now-quaint notion of the dancing prospector. The idea of discovering a potential precious metals deposit and spending ten years building a mine to turn dirt and rock into gold is not as sexy right now as magically turning a digital work of art or sports video highlight reel into a million-dollar NFT, or turning a joke cryptocurrency experiment like Dogecoin into a $75 billion tulip bulb mania. But still, there’s something primal about turning a few acres of wilderness into a gold mine and reaping the rewards.
So in response to some reader questions, we’re taking a quick break from the hotsy-totsy tech teasers to look at a junior mining tease… it’s one that has circulated for a couple months, but is really going “hot and heavy” and generating more reader questions recently. Ready?
The pitch comes in from Luke Burgess for his Junior Mining Trader, which is a newish service from the Outsider Club folks, though it sort of slots in to the spot that was held by Nick Hodge and Gerardo Del Real with their Junior Mining Monthly, before they left and started up a new publisher and launched a new mining newsletter. Burgess has certainly been around for a while, he was penning teaser pitches for “#1 Gold Stock” ideas a decade ago, too, and was pitching stocks for other newsletters going back at least to 2007 (which is, I should note, the year the world began as far as Stock Gumshoe is concerned).
The service is apparently trading-focused, with stock ideas Burgess apparently plans to hold for a few days or a few months… and, as is typical, the more active trading newsletters want somewhat smaller audiences — you can’t tell 10,000 people to buy a junior gold stock all at once and expect them to get in anywhere near your recommended price, and one way they get that (and some huge profit margins for themselves) is by charging a premium price — so Junior Mining Trader is being sold for $1,999/yr — though to their credit, they do say they’ll give you a refund in the first 90 days, most higher-end newsletters don’t offer that.
OK, with that out of the way… what’s the stock? Let’s go through the clues…
First, the headline teaser info:
“We’re about to make a fortune off this gold discovery of the decade.
“This is one of the RICHEST gold discoveries of the last 50 years!
“The little firm that owns it is backed by TWO of mining’s most legendary billionaire investors.
“They could be sitting on the richest undeveloped gold mine in the whole world… worth BILLIONS of dollars.
“This gold stock could potentially shoot up 3,725% or higher.”
OK, so that’s actually probably enough in the way of clues… but we’ll just make sure with a few checks of some other tidbits in the pitch…
“Drilling samples indicate that this could be among the richest, highest-grade gold finds in all of the world, one that could be worth billions of dollars.
“It’s completely untapped.
“It’s 100% owned by a company that just recently went public.
“It’s armed with management that would be a ‘dream team’ for any mining company.
“And shares are trading for around $4 right now.”
And who are those “legends” who have backed this stock to date?
“One of them is a self-made MULTIBILLIONAIRE who made his fortune in gold. He runs an $11 billion global asset management firm focused on precious metals….
“The other investing legend is hailed as ‘the most esteemed gold executive in Vancouver…
“In fact, he’s damn near a billionaire himself.
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“He turned a tiny $50 million mining startup into one of the largest gold-producing companies on the planet, worth over $10 BILLION.”
That’s almost certainly Eric Sprott and Rob McEwen, which further narrows things down. Any clues about the discovery that’s leading to this “#1 Gold Stock?” We do get this…
“Consider one of the most significant gold discoveries of the past 10 years…
“It was made deep down underneath the fields of southern Australia.
“This discovery is dubbed the “Swan Zone.” And it’s the mother lode in every sense of the word.
“We’re talking a multimillion-ounce cache of the richest gold the world has ever laid eyes on.
“It’s currently the highest-grade gold mine in the world, operated by a mining firm called Kirkland Lake Gold.
“It’s already produced over 2 million ounces of ultra-rich gold… worth over $4 BILLION and growing…..
“The same geologist that was involved in the discovery of the “Swan Zone” that led to Kirkland Lake’s multibillion-dollar fortune also reviewed THIS company’s drilling results…
“And after seeing them, he swiftly declared that this newly listed company has discovered, ‘a potential second Swan Zone, the only one in the northern hemisphere.'”
And yes, this discovery is nearby and in a generally mining friendly jurisdiction in Newfoundland, Canada…
“The Central Newfoundland gold belt has many similarities to the Bendigo goldfield in Australia, which has produced over 22 million ounces of gold…
“And is also home to Kirkland Lake’s $4 billion gold mine.
“This small company is the largest mineral claimholder in the entire province of Newfoundland… with over 373,000 acres.”
So is that finally enough for our confirmation? Indeed, this has been one of the hot stories of the junior mining space for the past six months or so, as they keep drilling up super-high-grade samples from their discovery zones… and, yes, as mining luminaries Eric Sprott and Rob McEwen have added to their holdings in private placements in recent months. Burgess is teasing New Found Gold (NFG.V in Toronto, NFGFF OTC in the US).
And this is pretty much an all-star operation in the junior mining world, though that and their high-grade discoveries also mean that it’s already got a billion-dollar valuation, so “junior” does not mean it’s tiny. Not only are Eric Sprott and Rob McEwen on board, but the largest position in New Found Gold, about 30%, is held by the startup “merchant bank of gold” that is being launched by a lot of other big-name investors, Palisades Gold (they also intended to go public last year, which didn’t happen, but I assume it won’t be long — that bank includes well-known investors and entrepreneurs from the mining space like Keith Neumeyer, as well as newsletter guys like Doug Casey and Marin Katusa, all of whom are also magnets for attention).
So there’s already a lot of attention on this name, and we should always be cautious when there’s this much high-powered mining world attention pointed at one company, particularly when it’s still just a discovery-stage company and they’re still a long way from having even a resource estimate for their properties, let along reserves or any kind or preliminary economic assessment of the potential mine they might want to build… but still, those early discoveries do sound pretty amazing. They make clear comparisons to Kirkland Lake in a video on the website, which sounds compelling, and this is how they sum up the current situation for investors:
“New Found is advancing its 100% owned high-grade 1,500km2 Queensway gold project, located on the Trans-Canada highway 15km west of Gander, Newfoundland. A 200,000m drill campaign is underway utilizing eight drills, focused on a 7.8km corridor along the Appleton fault and a 12.4km corridor along the JBP fault. On the Appleton fault, following up on the initial discovery hole that returned 19m of 92.9 g/t Au at the Keats Zone, a wide zone of high-grade gold mineralization has now been drill-defined starting at bedrock surface and extending 350m down plunge and open, with step-out drilling continuing. At the Lotto Zone 2km north of Keats, from the initial discovery hole of 41.2 g/t Au over 4.75m and 25.4 g/t Au over 5.15m, follow up drilling is indicating continuity to depth with recent deeper results including 225g/t Au over 2.5m.
“Multiple other high-grade targets are now being pursued over 7.8km along the Appleton Fault Zone and 12.4km along the JBP Fault Zone. Work is also underway to define additional drill targets on +100km of prospective strike along the Appleton and JBP fault structures on the southern portion of the Queensway property. With approximately $75 million in working capital New Found is well funded to pursue its exploration programs.”
The latest New Found Gold investor presentation is available here if you want some more detail about the deposit and the capital structure of the company… but it’s really those g/t numbers that boggle the mind a little bit — 19 meters of 92.9 g/t means that a drill sample 60 feet long measured out at an average of 92.9 grams per tonne of rock. And just yesterday they announced another 17.7 meters at 124 g/t. We don’t know how far those high-grade intercepts go just yet, and I’m no geologist, but those are blockbuster numbers — when you talk about operating mines and mine-wide numbers (not just one highlight drill intercept), the highest-grade gold mines top out somewhere near 40 grams/tonne, and that’s effectively like finding one high-grade seam that you chase with an underground mine… even the mines that have 10-20 g/t numbers are considered exceptionally high-grade. The big open-pit mines that process far more rock, but are much cheaper to build and are more efficient and lower-cost, are often down at the 2-3 g/t level.
And it might be a huge project one day, they’ve got ten drills running to try to quickly identify more and more areas of the deposit, and the area is massive and follows 20 kilometers of the fault structures that apparently created these high-grade gold zones. I don’t see anything to not like about it, other than the fact that they are very promotional — but that’s probably the cantankerous New Englander in me…. being promotional is one of the core competencies of a successful mining company, and rabid-self promotion is generally required, along with a side order of almost obscene optimism, in order to get these giant projects funded and built over a decade or more.
So what’s it worth? Man, I have no idea. Eric Sprott a month ago invested C$15 million at C$5.25, so that’s one valuation touchstone for you. The company notes that there have been some historic resources claimed on various parts of the property, but that they don’t have any resources or reserves that meet the current rules for claiming such things, so we’re still dealing with a very high-grade discovery, with some initial drilling that indicates it probably extends over a large period, but no real numbers that put an obvious future value on the project. And we won’t see those for years.
Discovery is fun, and companies often post extraordinary stock market gains when they make big discoveries and follow them up with lots of press releases indicating that the potential resources is growing larger and larger. That’s how the stock is at a roughly $1 billion valuation right now. And Kirkland Lake is an interesting comparison, because they bought what became the Fosterville mine for roughly a billion dollars at a pretty hot moment for gold in late 2016, so if you want to exaggerate a little you can sey they bet roughly half the company on that project (the deal included other properties too, so that’s not fair), and Kirkland has since roughly quadrupled in value… though that’s mostly because of the Macassa Mine in Canada and Detour Lake, Fosterville and their other Australian operations are a relatively small part of the overall value at Kirkland Lake. At that time, we should note, Fosterville had not yet discovered its massive high-grade zones that were deeper in the ground, but it did at least have a few hundred thousand ounces in reserves, and therefore was years further along in exploration and de-risking than is New Found Gold’s project today.
How much are you willing to pay for a gold discovery of indeterminate size? If you want to buy a piece today, you’ll have to pay about 50% more than Eric Sprott did a month ago, it’s currently trading around C$7.65. I’m often tempted by these kinds of glitzy presentations… but when I slow down and think rationally I know that I shouldn’t be too excited about buying into a large discovery project at this early stage, partly because I know I’m not particularly talented at identifying gold exploration stocks that will have enduring value (I don’t like buying biotech stocks very often, either, for similar reasons — I know the person I’m buying from is almost certain to be more of an expert on the sector than I am), but the temptation is there… it certainly has more impressive drilling results than I remember ever seeing, and it has some luminaries attached, so we can pretty much guarantee that it will continue to get a lot of attention from gold enthusiasts and speculators. Especially if gold prices rise as they continue to release impressive-sounding drill intercepts.
So with that, dear friends, I’ll pass it back to you to share your thoughts — it is, after all, your money at stake. Willing to bet that this discovery will become a multi-billion dollar mine someday? Think the stock will keep trading up on the news in the short term? Wish you could follow Eric Sprott around for an afternoon just to collect the gold flakes that must fall out of his pockets when he reaches for his keys? Let us know with a comment below…
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Post by likeike on Jan 24, 2024 16:04:44 GMT
Moriarty also highlighted
streetwise book logo Streetwise Company Fact Sheet
2024/1/24 8:01:41
(NFG:TSX.V - NFGC:NYSE.American)
New Found Gold Corp.
$4.15-0.09(-2.12%)41.0k
Frequency:DAILY
Combination chart with 2 data series.
QuoteMedia Interactive chart.
The chart has 1 X axis displaying Time. Range: 2023-10-23 15:54:12 to 2024-01-25 11:03:48.
The chart has 2 Y axes displaying Price and Volume.
Clive Maund — CliveMaund.com
Bob Moriarty — 321 Gold
Ron Struthers — Struthers Resource Stock Report
Streetwise Reports Articles
01/23/2024 - View Article
Analysts, Newsletter Writers & MoreNew Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American) as a top pick based on the company's exploration results.
streetwise book logoStreetwise Ownership Overview*
New Found Gold Corp.
(NFG:TSX.V; NFGC:NYSE.American)
Retail: 48.65%
Institutions: 46.41%
Management and Insiders: 3.92%
Strategic Investors: 1.02%
48.6%46.4%3.9%
*Share Structure as of 1/22/2024
Source: Thomson Reuters
In Moriarty's words, "The technical term for it is they have a lot of gold." In his opinion, the company's stock is undervalued and should improve as the company continues to deliver consistently excellent exploration results.
Moriarty said, "I think New Found Gold is like putting money into a savings account." In a ringing endorsement for the company, Moriarty stated, "I think if I was to only own one gold stock for the long term, it would be New Found Gold."
On January 10, 2024, the company released drill results from the Honeypot Zone on its Queensway project. According to New Found Gold, the drilling produced excellent results, including 101.72 g/t gold across 1.80m.
Bob Moriarty covered New Found Gold on September 11, 2023, and called it "the best story in the last 20 years." Moriarty highlighted the company's drilling on the Appleton Fault Zone, which still contains unexplored mineralization, and called it a "100% grassroots discovery" that has earned recognition through its excellent discoveries.
According to the company's investor presentation, there are a number of catalysts, including a 3D seismic survey that the company is currently conducting. The company reports that it will begin testing drill targets after the seismic survey is completed.
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3.92% of the company. According to Reuters, Chairman and CEO Collin Kettell owns 2.76% of the company with 5.16 million shares, and President Denis Laviolette owns 1.16% of the company with 2.18 million shares.
As for strategic investors, Eric Sprott owns 1.02% of the company with 1.90 million shares.
Reuters reports that institutional investors own approximately 46.41% of the company, as Palisades Goldcorp, Ltd. owns 25.03% of the company with 46.77 million shares, Sprott Mining Inc. owns 13.00% of the company with 24.30 million shares, 2176423 Ontario, Ltd., owns 5.56% of the company with 10.39 million shares, Van Eck Associates Corporation owns 2.39% of the company with 4.46 million shares, VanEck Asset Management B.V. owns 0.21% of the company with 0.40 million shares, Integrated Advisors Network L.L.C. owns 0.15% of the company with 0.29 million shares, and Citadel Advisors L.L.C. owns 0.07% of the company with 0.13 million shares.
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Post by suregold on Apr 5, 2024 11:07:07 GMT
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Post by likeike on Apr 5, 2024 14:05:13 GMT
Great find suregold ....saying 5 to 50 mill oz of gold ......no one can guess how much they have...brilliant young guys....It will get mined....
carnage in juniors is so bad that everything will go up....no one is taking this serious...
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Post by likeike on Apr 5, 2024 16:52:12 GMT
@realitycheck Let’s play devils advocate and ask ourselves why $NFG it’s not moving when many many sketchy and pure promotional plays with clearly no future are…. What’s holding these shares back ? Is it the markets lack of faith on management and the project ? Is it the nearly $1B market cap ? Is it the pure size of the discovery and cost to put it into production ? Is it lack of fund/major sponsorship ? Is it the VSE listing ? Is the market skeptical of announced results ? Is there a warrant overhang ? Are short sellers involved who have made money on every failed rally ? Did the initial run up to $13+ nearly 3 years ago spooks investors ? …. Enquiring minds want to know what if any games are being played. Have your say ….😀 1 30 minutes ago @ikebalinski www.youtube.com/watch?v=EEu0xLyQyjs+listen to BM at 31 min mark ...it is the fact that no one knows how much gold we have and it ranges to him on this video we have 5 to 50 mill oz Au and nobody will until we mine ..at Fosterville they had there guesses and it only overshot on grade and amount ...if we are Fosterville on steroids BM is just lowballing |
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Post by suregold on Apr 5, 2024 17:32:47 GMT
Interesting today is that the majors are all jumping on gold rise. I follow about 30 juniors and only NFG in that group is up at all and we are flying with a million shares traded. Let us hope we are finally on verge of the big breakout.
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Post by likeike on Apr 9, 2024 0:50:30 GMT
Could Newfoundland Be The Next Abitibi
In this report I discuss New Found Gold, Dryden Gold, Exploits Discovery, McEwen Mining, Canadian Gold Corp., Sokoman Minerals and Galantas Gold.
ROCKS AND STOCKS NEWS
APR 09, 2024
The Abitibi Mining Camp in Canada, is one of the most prolific gold mining camps anywhere in the world. Mining began in this camp in 1901, and since then there have been 100 mines that have collectively produced around 170 million ounces of gold.
A key geological characteristic of the camp is that the mines are found within the Abitibi Greenstone Belt, which is estimated to be 2.6 to 2.8 billion years old. These are very old rocks that play a key role in orogenic gold systems.
Two examples of orogenic gold systems that made for spectacular mines are the Red Lake Mine in Ontario and the Fosterville Mine in Australia. These two mines were company makers for Goldcorp in Red Lake and Kirkland Lake Gold at Fosterville. There is much to learn from these mines that are important when looking at any orogenic gold system.
In Red Lake and at Fosterville they struggled for many years mining within the first few hundred metres below the surface. Then they went deep into their respective mines to find the bonanza-grade gold zones of their orogenic gold systems. Mining at depth were company makers for both Goldcorp and Kirkland Lake Gold.
In the early production in these two mines, they were focused on the top of the orogenic gold systems. Yes, there was high-grade to bonanza-grade gold near the surface, but the issue was continuity. In a gold system if the gold is sporadic with a little here and some over there, but with waste rock in between, you don’t get to just mine the gold you also have to go through the waste rock. When that happens, you have a struggling mine.
The game changers at Red Lake and Fosterville were when they went deeper into those orogenic gold systems to find the bonanza-grade gold portions of the systems. Why this happens is that as you get deeper, you get closer to the heat engine where the temperature and pressure is right to drive the gold upward. In orogenic gold systems, that heat engine can be very deep, thousands of metres.
When you get deeper into an orogenic gold system, a couple key things happen. At the top of the system, there is often fine grained gold and as you go deeper the gold gets more coarse. I remember years ago going to the PDAC and Goldcorp would bring samples of rock to display from deep in the system. It was amazing. It looked like it was half quartz and half gold.
Fine grained gold and coarse grained gold are both considered visible gold as you can see them. This is important to keep in mind when looking at an orogenic gold discovery because it helps you understand if they are high in the system or getting closer to the heat engine that caused the gold mineralization.
In orogenic systems at the top of the system, they can have very high-grade gold with no visible gold or in gold that is fine grained in little specks of gold. It’s when the gold gets coarse in an orogenic gold system that things get really exciting. Later in the report, I will show you an image of coarse grained gold.
If you want to get a little gold fever, do a Google image search for Goldcorp and Fosterville gold specimens. That coarse gold is what dreams and extremely profitable gold mines are made of.
Another important thing to think about when trying to understand an orogenic gold system is how the gold makes its way from the deep heat engine up to closer to the surface. Deep crustal faults, or as I prefer to call them cracks in the earth, are the path that gold makes its way from the heat engine up toward the surface.
When it gets close to the surface, secondary faults or cracks are very important. The gold can be in the deep crustal crack or in the secondary cracks. New Found Gold has done important seismic work that sort of gives you a CAT scan of the rocks going down very deep. When I talk about them later in the report, I will share images that will help you see the role crustal cracks and secondary cracks play in their orogenic gold system discoveries.
Understanding the basics of an orogenic gold system can give investors a checkbox of what goes into finding the bonanza-grade gold zones in an orogenic gold system. One is you need very old rocks. Another is that you need deep crustal faults cutting through the old rocks because they are the cracks in the earth that the gold bearing fluids use as a path of least resistance to make their way from very deep in the crust upward.
As those gold bearing fluids travel along the deep crustal cracks and get near to the surface, secondary cracks in the rocks become important as does folding in the rocks and dilations in the rocks.
These traps are important because it is where the rocks open up to create gold zones that can be mined. It is where the rocks are well prepared to allow the gold bearing fluids to pool up into zones that are spectacular to mine.
When Goldcorp and Kirkland Lake Gold were mining their respective bonanza-grade zones, they both had low costs of mining, extreme high-grade gold, with very high margins that generated remarkable free cash flow.
They dramatically outperformed their peers due to being low cost producers of extreme high-grade gold. This is something investors should pay attention to when looking at any gold miner. Low costs of production of gold that generates a lot of free cash flow is where investors can find outperformance. If the cost of production is low, and the grades are high, it leads to remarkable free cash flow, which is the ultimate test of a great mine.
The production in the near the surface portions of the Red Lake Mine and Fosterville are instructive in understanding why it takes more than just grade. They had high-grade near the surface, but the problem was that it was patchy.
If you have high-grade gold that is spread out with gaps of low-grade to no grade between the high-grade zones, you will have a struggling mine. Which emphasizes that you need grade and continuity. So the old saying in mining that grade is king should also include continuity. In reality, grade and continuity are truly king.
One of the first things that I try to determine when looking at an orogenic gold system discovery is whether or not the company is focused on the depth potential. It is easy for an exploration company to get enamored with the near the surface portion of an orogenic gold system.
They see high-grade gold that they can reach with relatively short drill holes. Drilling deep is not cheap and this becomes a bigger issue when going through a bear market in gold stocks like the one we have recently gone through.
I do believe that with gold making new record highs against every global currency, including the US dollar, that we are about to see a more bullish market for gold stocks. This will be a relief for the underfunded explorers.
Another issue for exploration of an orogenic gold system for investors to understand is that they are found in narrow, steeply dipping veins. They are small zones in the grand scheme of gold mining, but with the high-grade gold in those small zones when you find a mine they can be cash cows.
I get the issues for explorers of orogenic gold systems and completely understand why they can get focused on the near the surface gold mineralization. One is that they can hit high-grade gold near the surface with shallow drilling, which is much cheaper than chasing the depth potential.
Plus, they are trying to follow narrow, steeply dipping, high-grade veins that can go through twists and turns underground. Drill in slightly the wrong direction and you could easily miss the gold vein. It doesn’t mean it stopped, it does mean you may have only been a few metres beside it. Report a miss and investors punish the stock, even though they are most likely still in the ballgame of trying to find an important orogenic gold system.
That is one of the reasons exploration is such a tough game. You are dealing with Mother Nature, it takes time, money and patience to figure out any discovery. But, investors, especially in a bear market, have little patience and want perfection.
I do believe that we are at the cusp of a healthier market for gold exploration and that due to the prize of what can be found in the depth potential of an orogenic gold system, although challenging, is worth chasing. It should make it so that companies can get the money to do the right job and be given the time to find what they are looking for.
This is where I want to give some examples of orogenic gold discoveries that I follow closely. One in particular, New Found Gold, has recently released geophysical data that could help them unlock the depth potential at their Queensway project in Newfoundland.
The work they are doing is not just important to understanding their discoveries, but it is also helpful in understanding other important orogenic gold discoveries.
The image above comes from New Found Gold’s March 4, 2024 news release. An image tells a story and this one is very good at showing them the pathway to unlock the depth potential and possibly find a series of extreme high-grade gold zones. It is also helpful for investors when they are looking at other orogenic gold discoveries.
At the top of the image is the surface. Then below that in the background is the seismic data that shows sort of a CAT scan of the rocks. In red are three crustal faults, Appleton, Appleton Parallel and Keats-Baseline faults. In yellow are interpretations of a series of secondary faults. In light purple are high-grade gold veins they have drilled into.
One thing I would point out is that their drilling is limited to the first few hundred metres of the surface, but it looks like they haven’t even reached the exciting part of the system yet. In reality, I think that they have only scratched the surface.
Another thing that is readily apparent is that the network of faults is very complex, which is exactly what you want to see in an orogenic gold system. It doesn’t make it easy to drill them, but it is what you see in important orogenic gold systems.
When it comes to the gold veins, the first one that stands out to me is the Keats vein that is vertical for a good distance, and is lined up exactly with a yellow line. Then it takes a turn and follows the Keats-Baseline Fault, then changes direction again in two spots.
Just think about how challenging that is to drill. If you drill an angled hole and come in from the wrong direction, you could miss it entirely. Or come in from another direction and think it stops. They have done an impressive job hitting what they have before seeing the seismic data.
I can imagine they will want to drill below the vertical part that lines up with the yellow line. Plus, keep drilling deeper along the Keats-Baseline Fault. Another important target that stands out to me is right below the point where there are two veins that change direction coming off the Keats-Baseline Fault. Right below there is a yellow line that could be important for extending what is just above.
Another target that stands out to me is the vein right underneath the word Cokes. I’m not positive, but pretty sure there is a structure just beside it that is vertical and cuts through the Glenwood Shear. It looks like that vein stops, but it could be that there is a secondary fault there that is the source, not the red line that it seems to be following.
A deeper target that stands out to me is on the Keats-Baseline Fault where there are three yellow lines right below it. The intersection of where deep faults and secondary faults cross is a good area where the rock preparation is ideal for finding gold zones.
You can see a bunch of points where the secondary faults in yellow crosscut each other; those are also great places to drill for veins. The image above is just one slice looking at a small portion of their large land package. The next image is another slice.
In this image, the Monte Carlo veins are very interesting. It looks like there are three coming together into one that just stops. You have to remember that the gold mineralization starts very deep and comes up. That one vein has to go somewhere. There could easily be a vertical secondary fault right at the end that is the path to follow.
The Lotto vein is very exciting as well, it looks like two veins that come together into one. When they come together they seem to be following one secondary fault, then it drops straight down lining up with another secondary fault.
At the time they put this image out, they had only interpreted about half of it. They still have a lot more interpretation work to do, but it clearly shows they have pathways to follow the veins deeper into the orogenic gold system. When they do, I think the gold will get substantially more coarse.
The first two images are of the seismic data from just a few of the veins they have drilled into. The third image is a plan view showing all the veins they have drilled into.
The seismic survey covers their entire property. It is clear from all the drilling they have done that this is an extremely large system with potential to find multiple mines. That kind of a situation doesn’t come along very often, they were so early to realize the potential for orogenic gold systems here that they have a land package that would be enviable if in the Abitibi Camp.
I’ve heard some commentary arguing that they should move toward doing a resource estimate on what they have found so far. I don’t agree as resource estimates have a way of capping a project for investors, plus it puts them in the early part of the development discount window of the Lassonde Curve.
Even more surprising is that some think they should move toward mining the near surface deposits. This would be a very risky bet, in the recent past we have seen Novo Resources and Pure Gold rush their projects into production with disastrous outcomes. They could very easily fall into the problems that Goldcorp had in the early days of mining in Red Lake and at the Fosterville mine.
Now that they have the seismic data to help them target deeper to see if they have bonanza-grade gold mines like Goldcorp did and at the Fosterville mine they could be very close to absolutely hitting it out of the park with what could be the most important orogenic gold discovery ever found worldwide.
Dryden Gold has an intriguing orogenic gold exploration project near Dryden, Ontario which is not far from Red Lake, Ontario. At the PDAC, I met with Maura Kolb their President, she is a structural geologist, Anna Hickens a geochemist and their Chairman Trey Wasser. Then recently I had an interview with Maura Kolb and Trey Wasser. I learned some exciting stuff in those two meetings.
When I sat down to chat with Maura and Anna at the PDAC, I was really impressed with all the homework they had done at the Red Lake mine while working for Goldcorp and on their project near Dryden. They have an exceptional understanding of orogenic gold systems from working for Goldcorp. They also found a lot of gold for them using their respective knowledge of structures and geochemistry.
While I was interviewing Maura and Trey recently, something kept coming to the top of my mind. I knew the history of how deep Goldcorp had to go, 1000 metres and lower, to find the bonanza-grade portion of their orogenic gold system. But, on Dryden Gold’s ground, past drilling had hit bonanza-grade gold within the first 100 metres.
The coarse visible gold in that drill hole is spectacular, it reminds me of the samples Goldcorp used to bring to the PDAC for investors to see. It is certainly not little specks of visible gold that can often cause investors to get worked up.
The past drilling on the project hit that less than 100 metres from the surface, usually in an orogenic gold system you need to go much deeper to see that kind of coarse gold. So a natural question is why was it so close to the surface?
A possible answer is that erosion could have removed the top of the system and brought that coarse gold really close to the surface. There has to be an explanation, ultimately it will be answered with the drill rig. Figuring that out can be done with relatively shallow drill holes which will help them keep their drilling costs down.
I get the feeling that Maura and Anna have a lot of confidence they are sitting on an exciting orogenic gold system. Actions speak louder than words and they haven’t been taking incremental steps with the drill rig. They are taking 100s of metres step outs, in an orogenic gold system and hitting high-grade gold. That is no small feat as orogenic gold veins are narrow and steeply dipping.
Before making the step outs, they compiled all the data from the project, and then picked their drill locations and hit gold. What that tells me is that their assessment of where to drill is pretty bang on, and therefore the system is predictable. They seem to have a good handle on the road to follow to find gold. As they drill they further refine their target selection as they learn more.
Maura’s expertise in structural geology and Anna’s in geochemistry, combined with their experiences in Red Lake is a heck of a combination. Deep crustal faults and secondary faulting are the cracks that the gold mineralization needs to make its way closer to the surface. Geochemistry helps vector into where you are close to the mineralization from identifying certain important chemical signatures. Using the combination of structural and geochemical analysis helps vector into the guts of the system.
They started trading in early January of this year and actually were busy with drilling prior to going public and since. They have pending assay results and will be doing a lot of drilling this year.
I like the potential that they can drill several shallow holes to get a good understanding of the gold mineralization with plenty of targets to drill.
Exploits Discovery Corp. has the ground to the immediate north of New Found Gold. They benefit from the big seismic survey that New Found Gold did because they also extended the survey to include Exploits’ ground.
Recently Exploits completed a small drill program on their ground. If you look at the New Found Gold map you will see in the north part of their claims the Everest, Honeypot and Jackpot veins that go right to the claim boundary with Exploits’ claims.
Exploits was drilling on their side of the claims to see if the Honeypot and Jackpot veins extend onto their project. The drilling only got sniffs of gold mineralization that is probably because they only hit veinlets of quartz as can be seen in the image below.
My guess is they likely are above the more quartz dominant portion of the system. I would love to see them get a hole 50 to 150 metres below what is in the images above.
They recently received the seismic data and can now start getting interpretation of the data to generate drill targets. I hope they publish the data, I suspect there are some interesting structures immediately below what is in the core pictures.
For the past couple of years, McEwen Mining has been getting a lot of attention for the 47% interest in McEwen Copper, which owns the Los Azules copper project. Rightfully so, as Los Azules is an exceptional undeveloped copper mine. But, not as much attention for moving in the right direction to increase production and bring down costs of production. Additionally, they are getting exciting results with their exploration drilling on their gold mines.
Their drilling at the Stock project has caught my attention. They have hit high-grade over nice intersections in their step out drilling looking for new zones to mine in the future. They are even hitting high-grade gold in rocks that were previously not considered prospective for gold mineralization. Now they are planning to sample more of that rock as it has been reclassified as prospective rock.
Looking at the gold distribution in their holes at Stock and the model of the gold mineralization in their steep plunge and shallow plunge zones, to me it looks to be screaming to be drilled deeper.
It reminds me of what Goldcorp did when they drilled deeper into their Red Lake mine. I would love to see them drill deeper because I think it could be a game changer.
Canadian Gold Corp. has the Tartan gold project in Manitoba and their major shareholder is Rob McEwen. Tartan had a couple years of mining, the price of gold went down and they struggled and had to shut it down. Only minimal drilling was done below the mine workings, but it showed that the high-grade orogenic gold system continued deeper.
In the image above, the historical mine workings are in gray. All the black dots represent the drill holes. I would point out that inside the mine workings are purple and red colours that represent the high-grade portion of the system.
You can see a line that represents the limits of the resource estimate in 2017. There were only a handful of historical holes below that line, one hit high-grade gold of 23.8 g/t over 12.6 metres. Since Canadian Gold Corp. got their hands on the project, they have drilled below that and hit 20.6 g/t gold over 5.7 metres.
They drilled another handful of holes lower in the system and collectively show that the gold system continues deeper. To go after the depth potential, they are using a mother hole and then wedging off that to keep the costs down as they don’t need to drill a thousand metre or more holes from the surface.
They have more holes pending and are drilling now, so they should have lots of news flow from drilling at Tartan.
Sokoman Minerals is in Newfoundland, west of New Found Gold. They were actually an earlier mover into gold exploration in Newfoundland. They also have an orogenic gold discovery that they have been drilling for several years.
Most of their drilling has been within a couple hundred metres of the surface. They have found a lot of high-grade gold, including plenty of holes with visible gold, but so far haven’t really tapped into the depth potential.
I’ve said in the past that if they figure this system out, they could be sitting on a heck of an orogenic gold discovery. My hope is that they consider doing a seismic survey on their project. I think it would light up a lot of targets deeper into the system. Especially, if they overlaid the extensive drill hole data onto a seismic survey map.
Dynasty Gold has an orogenic gold discovery with very high-grade gold right beside Dryden Gold. They have two key targets on their project, one is a near surface zone and the other is the depth potential.
They sort of vacillate between focusing on the near the surface zone and the depth potential. My hope is that they focus their near term drilling on the depth potential. The grades they have hit without seeing visible gold is very impressive. Which suggests to me that they are still very high in the orogenic gold system.
I’m looking forward to their upcoming drilling program. I will be watching closely for where they plan to drill and how deep they plan to drill.
Galantas Gold is in Ireland, I have only picked one other gold explorer in Ireland which was Dalradian. I started covering Dalradian early in their drilling when they were at around 25 cents and kept reporting on them until they were taken over. It was a very successful pick in my reports, so I have a soft spot in my heart for Ireland gold exploration.
Galantas has an orogenic gold system; they have hit several holes with high-grade gold. The key zones they have drilled are right beside a deep crustal crack that goes east to west. While the gold zones are north to south. As mentioned earlier in the report, the deep structures are important conduits for the gold mineralization to make its way from very deep in the crust up to near the surface where the secondary faults also play an important role.
They have found that situation at their project with the deep crack going one direction and the secondary cracks perpendicular. Another interesting thing about the project is they have seen a series of dilation zones in their drilling.
The dilation zones are important for two reasons. One is they form an opening in the rock where the gold mineralization can sort of pool up. Another important reason is that they are formed in a certain pattern that allows them to help target the deeper portion of the system. They seem to be associated with the deep crustal crack.
The project has mining permits and underground workings, so they tried to bring it back into production, but they ran into issues. Not with the mineralization, but with getting enough workers from Ireland to operate the mine. Which was mandatory for them to do, but there hasn’t been a lot of mining in Ireland, so they don’t have a big workforce of miners to tap into. To work around this problem, they have hired a contract miner from Ireland that has the people to mine the project.
My hope is that they focus most of their attention on exploration. Small contract mining is not going to get a lot of investor interest. Sure it will help pay the bills and cover some of the costs of deep drilling. If they go deeper into the system and tag high-grade gold, I think it will bring in a lot of investor interest and funding for drilling deeper into the system.
At the end of the day, I can see they have all the geological hallmarks to have an important orogenic gold exploration project. Plus, they have an underexplored high-grade gold-copper VMS project in Scotland to drill as well. The two projects give them exposure to two of my favourite metals, gold and copper.
In Closing
I’m a big fan of orogenic gold exploration and wanted to provide a report on a group of companies with this style of gold exploration that I follow closely.
All the best,
Allan Barry Laboucan
Disclosure
Dryden Gold is a sponsor of Rocks And Stocks News, and Allan Barry Laboucan is a shareholder. Exploits Discovery Corp. is a sponsor of Rocks And Stocks News. Sokoman Minerals is a sponsor of Rocks And Stocks News. Galantas Gold is a sponsor of Rocks And Stocks News, and Allan Barry Laboucan is a shareholder.
Rocks And Stocks News does not make buying or selling recommendations. The reports are for information purposes only. Sponsors pay a fee to Rocks And Stocks News for content creation. The business model of Rocks And Stocks News is to fund research and reporting on the sector, picks and sponsors through corporate sponsorship. We are thankful to sponsors for enabling commentary free of charge to readers and viewers of the reports. When reporting on sponsors it is on behalf of the sponsors discussed in the portion of the report mentioning the sponsor. Before making any investment decision it is important for you to speak with your financial advisors to consider your risk profile. It is also important to do your homework. To help in that process, Rocks And Stocks News means to be a gateway by doing reports and interviews of management of sponsors and picks. The reports and interviews should not be considered investment advice. Allan Barry Laboucan is the founder and owner of Rocks And Stocks News, he has worked in the mining sector since 1993 and has been reporting on the sector since 2005. He has worked with and been mentored by very talented geoscientists in geology, geochemistry and geophysics. He uses the skills he has picked up during his career to assess sponsors and picks in the reports. Whether a company is a pick or a sponsor they go through the same filter and are reported on when important news is made that Allan Barry Laboucan wants to discuss on the Rocks And Stocks News platform. He may own shares in sponsors and picks for investment purposes.
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Post by likeike on Apr 9, 2024 1:18:10 GMT
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Post by likeike on Apr 9, 2024 12:13:29 GMT
Sorry Bob says it best though
The other project is the greatest story I’ve seen in 25 years. A bunch of young guys decided they were going to go into the mining business. They had a geologist who said, “We should go up to Newfoundland. There’s an area I’d like to look at that’s like 6 miles from Gander.”
Now, I’ve flown through Gander probably 150 times. If I had any idea that they had gold coming to surface 6 miles away, I would have grabbed a pick, shovel, and gold pan and been digging for gold right next to the Trans-Canadian Highway.
I’ve been to so many projects that I can visit one and guess how much gold they’ve got. But with New Found, I can’t even tell you. They have somewhere between 5 million and 50 million ounces. They’ve got 5 million in a heartbeat but they keep drilling these incredible intercepts. It’s a Fosterville look-alike. And Fosterville was the highest-grade gold mine in the world for several years and took a company from $3 billion to 18 billion.
The only problem is that their drill results are so good and so exciting that nobody, including me, can even guess how much gold they’ve got. There will be a lot of gold, and somebody’s going to make a lot of money there. They’ve got a ridiculous market cap, like $800 million. That’s what you’d expect out of a million or million-and-a-half-ounce deposit.
New Found Gold and West Red Lake are excellent, but here’s what your listeners really need to know: The carnage in the junior market has been so bad that you could put a printout on the wall of every junior in Canada and you could put on a blindfold and turn the lights off and throw darts and you’re going to hit a home run.
Here is West Red Lake’s entry in the “Gold/Silver Explorers” section of our Portfolio.
Both New Found and West Red Lake jumped after Bob’s recommendation, so Monday morning might not be the ideal time for an “at the market” buy order. A good-until-canceled order at a slightly lower price might be a better approach to adding these shares.
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