Month: May 2020

Bloomberg/Jack Farchy, Nishant Kumar and Ranjeetha Pakiam/5-17-2020

“Money printing by central banks and vast state stimulus packages are rekindling interest in one of the oldest stores of wealth.”

USAGOLD note:   Bloomberg gives this article prominence on its entry page this morning. Though the focus is on inflation, hedge fund luminaries are likely worried about more than just runaway inflation amidst the market and economic turmoil in which we now find ourselves. Disinflation, deflation, stagflation and hyperinflation are all being prominently bandied about as possible endgame scenarios. Gold’s enduring strength is its versatility as a portfolio hedge. It has proven itself to be a worthy safeguard against each of those outcomes at one time or another in the course of modern economic history.

Saxo Bank/Ole Hanson/5-15-2020

“Also supporting metals in general are reports from Chinese research houses that commodity traders are hoarding tangible assets. Metal companies got cheap Covid-19 loans from banks and they seem to have piled that money into commodities, betting on a price recovery that is more profitable than their production activities.”

USAGOLD note:  Insights on Friday’s jump in precious metals prices …… We thought the observations posted above an interesting addition to the information pool. i.e., something to file for future reference.

Credit Bubble Bulletin/Doug Noland/5-16-2020

“Bubbles can have profound geopolitical impacts as well. The inflation of Bubbles and corresponding booming economies promote the view of an expanding global economic “pie”. The inflating Bubble phase is associated with cooperation, integration and solidarity. The backdrop shifts late in the Bubble phase, as inequities and maladjustment become more discernible. Bursting Bubbles mark a radical redrawing of the geopolitical landscape. The insecurities and animosities associated with a shrinking economic pie see a rise of nationalism and “strongman” leadership. The backdrop drifts toward fragmentation, disintegration and conflict.”

USAGOLD note:  Noland reminds us that deflating credit bubbles not only wreak havoc in financial markets and the general economy, they also do a fair amount of damage to the geopolitical architecture – as we are beginning to see in the U.S.-China relationship.

Source: Bob Moriarty for Streetwise Reports   05/16/2020

Bob Moriarty of 321gold discusses this company that is exploring a rare earth element project in Canada.

I have been remiss in not doing much in the way of writing about resource opportunities for a couple of reasons. Obviously the Corona virus issue has been at the forefront of most people’s attention. But also I was saying for years that a depression was coming and wise people would prepare in advance.

About the virus. Every day it looks more and more like some sort of scam by Bill Gates, the Deep State and Dr. Fauci representing the interests of big Pharma. Obviously the Chinese were lying about how many people died in China. They sought to understate the number killed. But the US is just as much a liar, in the opposite direction.

I make the point in my books that perfectly ordinary people can figure out what is really going on simply by asking the right questions. As of this morning as I write the Johns Hopkins graphic shows that according to their official numbers, the US represents 31.7% of all the cases in the world. Now since the US only has about 4% of the world’s population, it would be quite impossible for us to have eight times as many infected as the rest of the world per capita.

Looking into it deeper, we find that in Colorado officials reported that a man who died with a blood alcohol content of .55% was killed by the virus. Given than the legal limit is .08% he would have died of alcohol poisoning once he passed .30%. He drank enough to keep a boatload of sailors soused for an entire weekend. If anything, that much booze would have killed every virus of any kind within a four-mile radius.

San Diego reported that 194 of their people died of the virus. It took an honest official to reveal that only 6 of those 194 actually died of the virus. The rest tested positive but died of strokes, heart attacks and other events. Even the CDC admits that their results for those having the virus at death are five times higher than actually being killed by the virus. Donald Trump wants to be the biggest and the best at everything. How the CDC reports deaths and the virus certainly qualifies.

Meanwhile in Texas medical authorities said that a 22-week preemie died of the virus but failed to mention that babies born at 22 weeks never survive. That baby did not die from the virus.

Bill Gates and big Pharma want to tag and bag you with a vaccine that may or may not even work but will put billions of dollars into someone’s pockets. Hopefully his. During the Swine Flu fiasco, the vaccine killed more people than the flu did. There are reports out today that if you have been vaccinated against the ordinary flu you have a 36% higher chance of catching the Corona Virus. Even the CDC admits lying about deaths from the flu to encourage vaccinations.

It’s a stretch to imagine how a worldwide panic over a flu would have any sort of a positive impact on any junior resource stock but actually there is a company that may have just hit the jackpot as a result.

As a direct result of the Chinese literally shutting down their entire economy for a couple of months in response to the Corona Virus, the single source supply chains for nearly everything China produces were utterly broken. For some commodities such as rare earths required for specialty metals and military purposes, it was a giant wake up call.

Now I am not a believer that China or Russia for that matter are enemies of the United States. I believe that the MIC needs monsters to slay to justify the US taxpayers funding half the military expenses in the entire world. But having China as a sole source for anything is stupid and beyond stupid for metals so critical to the functioning of our economy as Rare Earths.

I’ve done articles in the past on Defense Metals. The share price is up 50% in the last six months and still cheap. They have made wonderful progress and Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) just announced on the 13^th a major addition to their 43-101 resources at Wicheeda in central British Columbia. The resource showed a 49% increase in tonnage and a 30% increase in average grade. It was economic before and I showed the numbers in the December piece. It is much more economic today.

The US realizes that a safe and secure supply of Rare Earths from outside China is mandatory. The Federal Government has already defined Rare Earths as critical resources. A bill in Congress today calls for changing the tax deductions for mining companies in the US of Rare Earths and creates a $50 million fund to help junior companies out. That’s just in the US but one day soon they will figure out that the US just doesn’t have much in the way of REE but Canada has a bunch.

We are in a depression. I’ve said it was coming for years. As long ago as a year ago I was saying it would start in October. It actually began a month early and became obvious to everyone in March. But the vast majority of people think it is somehow connected with the Corona Virus. It is not. It was coming any way with or without a bad flu season. The Corona Virus just made everything speed up. Now the majority of investors think that as soon as the quarantine ends, the economy recovers. That’s not going to happen any time in the next fifteen years. It is the greatest depression in history because we have the greatest debt load in all of recorded history.

We will have the most massive wealth transfer that has ever taken place from those unprepared to those who are prepared. My readers are prepared and will see rewards such as they have never dreamed possible. We are going to have deflation and hyperinflation at the same time. When the government gets tired of being stupid, we will declare a debt jubilee and go back to honest money. Eighteen months later the economy will recover.

Defense Metals is an advertiser. I have bought shares in the open market and in various private placements. That makes me biased so I request readers do their own due diligence.

Defense Metals Corp
DEFN-V $0.18 (May 15, 2020)
DFMTF – OTCQB 39.7 million shares
Defense Metals website

Bob Moriarty
President: 321gold
Archives
321gold

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

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Defense Metals. Defense Metals 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.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Defense Metals. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals, a company mentioned in this article.

( Companies Mentioned: DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE,
)

Source: Peter Epstein for Streetwise Reports   05/15/2020

Peter Epstein of Epstein Research explains why he is watching this explorer.

Given the widespread COVID-19 induced downturn, I struggled with the outlook for copper. I feared that like stock markets in March, the copper price might collapse. That didn’t happen. Either due to producer discipline or governments halting operations, a fair amount of world supply has been curtailed indefinitely.

It may turn out that COVID-19 has as big an impact on supply as it does on demand. Copper is trading at US$2.35/lb, ~14% below its average price in 2019. So, not the end of the world.

I came to terms with Dr. Copper by learning that massive, multi-year, global stimulus packages are in the works. In total, probably US$10 or US$20 trillion over the next few years. Much of it will go to copper-intensive infrastructure projects. Furthermore, growing end market demand from the electrification of transportation remains in place.

But enough about copper, today’s gold price is a BIGGER story, currently at US$1,740/oz, 25% above its average price in 2019. New discoveries that contain meaningful gold values will be handsomely rewarded.

In particular, discoveries in globally significant jurisdictions, made by world-class teams, on projects with tremendous blue-sky potential could generate substantial share price gains. With this in mind, I circle back to a small copper & gold story that has all the ingredients for an exciting discovery.

Could Kincora Copper Ltd. (KCC:TSX.V) be the comeback resource junior of the year? After a disappointing drill program in Mongolia, management switched gears, jumping on a compelling opportunity in Australia, just before new discoveries were made all around them. The company is currently drilling its Trundle project in New South Wales (NSW).

It’s worth noting that Trundle is the only brownfield project in the area controlled by a listed junior. Kincora’s enterprise value {market cap (C$12 million) + debt (zero) – cash (C$3 million) = C$9 million/US$6.4 million.

Trundle is in an exploration hotspot—the Macquarie Arc (MA) of the Lachlan Fold Belt (LFB). The MA hosts major porphyry deposits, including Newcrest Mining’s company-maker, underpinning it becoming Australia’s largest gold miner, Cadia {913k ounces gold (2019) at AISC of US$ 132/oz net of credits}; Evolution Mining’s flagship Cowal project {251.5k ounces gold (2019) at AISC of ~US$ 675/oz}; China Molybdenum’s (CMOC) copper-gold Northparkes {~240k Au Eq ounces/year}; and Alkane Resources’ Boda {discovery hole: 502 m at 0.48 g/t Au + 0.2% Cu}.

Kincora controls a district-scale 1,732 sq km land position in a few key belts within the MA. Management’s first press release on its Australian activities was on November 21st. Since then, gold is up ~24% to over AUD$ 2,700/oz.—a record price. There’s also been significant drill program successes by peer LFB juniors {most notably, Alkane Resources, but also Sky Metals and Magmatic Resources}.

Alkane reported a blockbuster intercept at its Boda project; 96.8m @ 4 g/t Au + 1.52% Cu (~5.4 g/t Au Eq) from 768-meter depth. It also has a 30–35k ounce/year producing gold mine and a market cap of ~C$400million. Alkane has the financial ability to aggressively drill out the Boda deposit. A follow-up second phase drill program leading to a maiden resource would be great news for Alkane and neighboring peers including Kincora Copper.

Sky Metals, with a market cap of ~$110 million, has two tin-tungsten-silver projects and two gold projects in the LFB. Its gold discovery really got the share price moving. Sky has some good intercepts, but nothing like Alkane’s.

Magmatic Resources has a market cap of ~$50 million. It has land holdings in the LFB totaling 1,054 sq km vs. 1,732 sq km controlled by Kincora, and is a “nearlogy” exploration play to Alkane’s Boda, as Kincora is to CMOC’s Northparkes. Due in part to Alkane’s success, Magmatic had one of the largest percentage gains of any gold junior on the planet. From 2c to 46c over six months, and recently back to 31c.

Sky Metals and Magmatic Resources, with an average market cap of ~$75 million, are reasonable comps to Kincora’s $12 million pre-discovery valuation. All three are pre-maiden resource or confirmation of an economic discovery hole. Other exploration success stories in Australia, such as Greatland Gold, Legend Mining and Chalice Gold, also demonstrate the power of new discoveries. There’s plenty of run room if management hits pay dirt. A drilling update is expected within a week or so.

There are fewer than two dozen gold/copper (or copper/gold) juniors that have flagship projects in NSW. All but three are Australian-listed. Kincora Copper (TSX-V: KCC) is a good way for North American investors to gain exposure to the LFB.

Kincora has ~$3 million in cash, strong drill targets, (derived from robust prior exploration efforts, plus new studies) and a tremendous management/technical team plus advisors. In addition to the tireless efforts since 2012 of Kincora’s CEO Sam Spring {full bio here}, three additional world-class team members are actively involved, Independent Director & Chairman of the Technical Committee John Holliday, Senior VP Exploration Peter Leaman and Chairman Cameron McRae.

John Holliday has >30 years’ experience in exploration, mostly with BHP and Newcrest Mining, including as chief geoscientist and general manager. He has been working with Kincora since 2015. John has a successful track record in global gold-copper exploration, discovery and evaluation. He was a principal discoverer of the Tier-1 Cadia gold-copper porphyry and Marsden copper-gold porphyry in the LFB, and a geological advisor on the acquisition of many significant projects. {full bio here}

Peter Leaman has >40 years’ experience in exploration, mostly with BHP and PanAust Ltd., where he was regional exploration manager for SE Asia. He’s a hands on, target-orientated leader responsible for project generation and managing exploration programs, resulting in notable discoveries including the Tier 1 Reko Diq porphyry Cu/Au deposit, Crater Mountain epithermal Au/Ag and the Mt. Bini (Kodu) porphyry Cu/Au deposits in Papua New Guinea, among others. {full bio here}

Cameron McRae is a very seasoned mining executive. He had a 28-year career with Rio Tinto and in Mongolia was president of Oyu Tolgoi and Rio Tinto’s country director. McRae led the construction and start-up of the US$6 billin Oyu Tolgoi copper mine and was responsible for safety, strategy, operations and growth initiatives. He has led successful greenfield and brownfield projects, has deep commercial/M&A experience and has sat on numerous exploration and technical committees. {full bio here}

Truly a tremendous team with direct experience, in the right place, at the right time, especially for a company with such a modest enterprise value. As of April 22nd, phase 1 drilling at Trundle has commenced. This phase includes a six hole/~3,800-meter (~630 meters/hole) program, testing three large mineralized zones at greater depths.

The company expects this program to be “high impact, value-add drilling,” as Trundle has “excellent potential for new high-grade porphyry & skarn copper-gold discoveries.”

Regarding the drill program, John Holliday and Peter Leaman commented,

“Modern systematic exploration at Trundle has utilized industry leading IP surveys, including HPX’s proprietary Typhoon system, and magnetic modeling which has been insufficiently followed up by drilling. Existing significant drill intersections support vectoring to very compelling targets at existing mineralized systems within a brownfield environment to Northparkes, Australia’s second largest porphyry mine where five deposits are defined.”

Trundle is 30 km west of CMOC’s Northparkes copper-gold project, Australia’s second largest porphyry mine (behind Newcrest’s Cadia, also in the Macquarie Arc). CMOC acquired an 80% interest in Northparkes in 2013 for US$820 million and has since expanded production and extended the mine life.

Historically an important agricultural hub, substantially increased mining activity in the region has led to favorable infrastructure improvements (power, roads, rail, etc.. This will likely continue as iron ore giant Fortescue Metals ($34 billion market cap) has secured property, including parcels adjacent to Kincora’s southern border of Trundle. Newmont, Gold Fields and Freeport-McMoRan are also exploring in the LFB.

The Trundle project hosts extensive evidence of porphyry and skarn-style copper-gold mineralization across 12.5 km strike length and shares some geological features with Northparkes and Cadia. Results of surface geological mapping, geochemistry, magnetic, gravity and IP coverage, coupled with structural and basement rock interpretations, have been promising.

Past drilling totaled 2,208 holes for 61,146 meters. Only limited modern exploration and very little deep drilling into basement rocks has been done. Importantly, over 92% of historical drilling has been to <50 meters in depth. Just 11 holes have been >300m (~0.5% of total holes drilled). Where the first hole is being drilled, the average drill hole depth is only 28 meters.

Shallow intercepts not followed up on include: [60m @ 0.54g/t Au from 1m], [56m @ 0.88g/t Au + 0.35% Cu from 34m, incl. 2m @ 20g/t Au + 7% Cu & 81g/t Ag from 64m depth], [39m @ 0.55 g/t Au + 0.14% Cu from surface], [35m @ 0.55 g/t Au + 0.25% Cu from 12m], [51m @ 0.58 g/t Au + 0.14% Cu from 33m], [58m @ 0.44 g/t Au + 0.17% Cu from 22m, including 4m @ 1.19g/t Au + 0.41% Cu from 28m]. Note: at spot Au prices, the avgerage grade of 0.6 g/t = nearly $50/tonne, which is good for these shallow depths. Additional high-grade hits, like the 2m @ 20g/t Au (with 7% Cu) would gain a lot of attention in the currently hot gold market.

Deeper core drilling has commenced at the Trundle Park zone on the southern end of the property. Management sees real potential for higher-grade porphyry and skarn copper-gold discoveries. Prior activities intersected, “high-grade localized zones, within a large lower-grade magnetite skarn, similar in style to the Big Cadia skarn, and peripheral to the Cadia porphyry copper-gold deposits.”

Kincora is drilling three fences to test known mineralized porphyry targets analogous to the five identified deposits at Northparkes. Existing intercepts support vectoring to compelling drill targets at the existing systems. No drilling has taken place at the project since 2015, while the Mordialloc target hasn’t seen drilling since 2008.

No drilling has yet tested below the zones, where geophysics and re-logging of historical data has indicated proximity to a porphyry source. Despite a lot of smoke, the potential source has yet to be found.

CEO Spring sums things up,

“With previous drill results, existing untested geophysical surveying and being in a brownfield environment, there’s a strong argument that we have comparable, if not a bit more, smoke at Trundle than Alkane had before its breakthrough drill results at Boda. Boda is the best greenfield discovery in the belt in over 20 years and, before the pull back in the market because of COVID-19, was the catalyst for approximately A$400 million being added to Alkane’s market cap in this rising gold price environment“.

While there are no guarantees when it comes to high-impact exploration of Tier 1 assets, Kincora Copper (TSX-V: KCC) has the foundation for success and a cheap valuation, providing investors an interesting risk-adjusted return opportunity.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. 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 article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Kincora Copper, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not 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 Kincora Copper 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 or registered financial advisors before making any investment decisions.

At the time this article was posted, Kincora Copper was an advertiser on [ER] and Peter Epstein owned shares in the Company.

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: None. 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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Newmont Goldcorp, a company mentioned in this article.

Graphics provided by the author.

( Companies Mentioned: KCC:TSX.V,
)

This is the third seal of revelation which is a rebalancing of the financial system as we know it. This specifically relates to gold, silver and paper… Bo Polny interviewed &lbrack;…&rbrack;

The post The Coming Gold Rush Will Be Epic appeared first on Silver Doctors.

An enemy is what funds America’s largest industry—military spending—and an enemy provides a national security focus which holds our tower of babel… by Paul Craig Roberts via PaulCraigRoberts.org China Paul &lbrack;…&rbrack;

The post The Enemy Of The United States Has Been Relocated From Russia To China appeared first on Silver Doctors.

Is the gold-stock upleg likely to continue powering higher despite the catastrophic economic damage from governmental lockdowns? by Adam Hamilton of Zeal LLC The major gold miners’ stocks have rallied &lbrack;…&rbrack;

The post Gold Miner Fundamentals: Latest Quarterly Results More Important Than Ever appeared first on Silver Doctors.