TORONTO , Jan. 10, 2019 /CNW/ – Excellon Resources Inc. (TSX:EXN; OTC:EXLLF) (“Excellon” or the “Company”) is pleased to announce results from underground exploration at the Platosa Mine in Durango, Mexico .
Highlights
Further definition and expansion of the high-grade 623 Manto, with diamond drilling results including:
“Our underground drilling over the past two years has improved the definition and quality of tonnes within the resource,” stated Ben Pullinger , Senior Vice President Geology. “Today’s results further that success and represent potential additions to Platosa resources.”
Exploration Results
The following table shows highlighted intervals from the current definition and infill program being conducted from underground at Platosa:
Hole ID
Interval(1)
Interval(2)
Au
Ag
Pb
Zn
AgEq (3)
Area
From
To
metres
g/t
g/t
%
%
g/t
EX18UG437
51.1
57.8
6.6
0.1
704
5.8
10.1
1,450
623
including
52.8
55.4
2.7
0.1
1,669
13.2
24.4
3,434
EX18UG438
54.5
59.4
4.9
–
2,802
12.1
5.4
3,574
623
including
54.9
57.8
2.8
–
4,789
20.4
9.0
6,087
EX18UG443
99.5
103.2
3.7
–
775
7.3
6.4
1,395
NE-1S
EX18UG445
83.1
87.3
4.2
–
150
0.1
2.0
254
Pierna
including
84.5
84.8
0.3
–
1,410
0.4
0.6
1,459
(1)
From-to intervals are measured from the drill collar, with drill holes marked UG or PH drilled from underground stations.
(2)
All intervals are reported as core length.
(3)
AgEq in drill results assumes $17.00 Ag, $1.03 Pb and $1.23 Zn with 100% metallurgical recovery.
Results from this release incorporate drilling from the Martillo and 822-2 underground drill stations which were developed to expand and define mineralization at the Rodilla, NE-1S and 623 Mantos. Drill results in this release were not included in the Company’s updated Mineral Resource Estimate as of March 31, 2018 and represents potential for additions to existing resources.
Platosa drill core samples are prepared and assayed by SGS Minerals Services in Durango, Mexico . The lab is accredited to ISO/IEC 17025. The Company has a comprehensive QA/QC program, supervised by an independent Qualified Person.
Isometric View of Results Looking Southwest
View photos
Isometric View of Results Looking Southwest (CNW Group/Excellon Resources Inc.)
Surface Exploration Update
Surface drilling continues with a drill rig testing targets that host the Platosa deposit within the north-south trending Platosa corridor, with assays pending. The Company continues to test priority targets within this corridor while defining new targets at Jaboncillo , PDN, Saltillera North and South and San Gilberto through ongoing fieldwork. A 3D induced polarization program was completed at Jaboncillo and PDN in late 2018 in preparation for drilling programs on both targets in the coming months.
Qualified Person
Mr. Ben Pullinger , P. Geo, Senior Vice-President Geology, has acted as the Qualified Person, as defined in NI 43-101, with respect to the disclosure of the scientific and technical information relating to exploration results contained in this press release.
About Excellon
Excellon’s 100%-owned Platosa Mine has been Mexico’s highest-grade silver mine since production commenced in 2005. The Company is focused on optimizing Platosa’s cost and production profile, discovering further high-grade silver and carbonate replacement deposit (CRD) mineralization on the 21,000 hectare Platosa Project and epithermal silver mineralization on the 100%-owned 45,000 hectare Evolución Property, and capitalizing on current market conditions by acquiring undervalued projects in the Americas.
Additional details on the La Platosa Mine and the rest of Excellon’s exploration properties are available at www.excellonresources.com.
Forward-Looking Statements
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties, and particularly the September 7, 2018 NI 43-101 technical report prepared by SRK Consulting ( Canada ) Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
VANCOUVER, British Columbia, Jan. 09, 2019 (GLOBE NEWSWIRE) — Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V: RRI) (RVSDF) (R99.F) is pleased to provide a brief outlook for the coming year. Riverside is pleased to enter 2019 with a stable of high-quality gold, silver and copper exploration assets in Mexico. Riverside continues to have a tight share structure (less than 45M shares outstanding); increasing the potential for strong share price appreciation on new exploration successes. The list below outlines some of the key catalysts and opportunities the Company is currently forwarding:
Riverside has exciting drill targets that are permitted and ready for testing at multiple 100% owned projects in Mexico (including high-grade gold at Cecilia and high-grade silver at the Peñoles Project)
The Company has been advancing potential joint venture partnerships and is optimistic new deals can be secured to advance multiple projects simultaneously
Riverside expects to expand outside of Mexico during 2019, as the Company continues to grow and diversify the generative portfolio
Actively engaged in strategic alliance discussions with major companies, with aim of leveraging past investments and regional knowledge in Mexico
Partner-funded exploration expected to commence at the La Silla Project in 2019 (Sinaloa Resources)
New go-public transaction expected during Q1-Q2 from Croesus Gold Corp., (Riverside currently owns >5,000,000 Croesus common shares and holds a 2% NSR on the Sugarloaf Peak Project)
Listen to Riverside’s President & CEO, John-Mark Staude speak on the Company’s growth plans for 2019. Riverside’s President and CEO, John-Mark Staude, stated:“Riverside is in a good position heading into 2019, we are focused to leverage off of last year’s work to improve the Company’s portfolio and are working up partnerships and catalysts for a positive year ahead. We have drill targets ready to go along with shares in other juniors and remain focused on delivering new accretive transactions for the Company. We are confident 2019 will be a strong rebound year for the company with momentum building during the first quarter.”
Options & Bonus Shares Granted: On January 8, 2019 the Company granted 785,000 incentive stock options (the “Options”) to certain Directors, Officers and Consultants of the Company. The Options are exercisable at $0.17 per share for a period of 5 years from the date of grant. Options granted to individuals in their capacity as a Director vest in 3 equal instalments over 18 months and Options granted to Officers and Consultants vest in 4 equal instalments over 12 months. The Company also granted 265,000 bonus shares to certain Directors, Officers and Consultants of the Company. The Options & bonus shares were granted pursuant to the Company’s shareholder-approved stock option and bonus share plan and are subject to the policies of the TSX Venture Exchange and any applicable regulatory hold periods.
About Riverside Resources Inc.: Riverside is an exploration company driven by value generation and discovery. The company has a strong portfolio of gold-silver and copper assets in Mexico and a tight share structure with less than 45M shares outstanding. Riverside has extensive experience and knowledge operating in Mexico and has leveraged its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has additional properties available for option, with more information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC. “John-Mark Staude” Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude President, CEO Riverside Resources Inc. info@rivres.com Phone: (778) 327-6671 Fax: (778) 327-6675 Web: www.rivres.com
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
A New Year is upon us and gold is shining bright. The precious metal is holding onto recent gains after closing out 2018 near a six-month high. Spot gold managed to post its best monthly gain in almost two years in December and outperformed the broader market. Volatility in global equity markets, the outlook for the Federal Reserve and a weakening dollar, pushed gold out of the doldrums for the year. Gold may have posted its first annual pullback since 2015, but recorded a gain of 7.2% in Q3 2018 and an advance of 4.6% in December. In fact, the precious metal had its best December performance in a decade. Considering that gold hit a 20-month low in August of last year, the pace of recovery is worth noting. Also daily trading volume for the metal was high in terms of OTC transactions rising by 2% YOY. 2019 kicked off with concerns about the slowing global economic growth and the trajectory of the Federal Reserve’s monetary policy. Ongoing uncertainty over U.S.-China trade negotiations, the partial U.S. government shutdown and Brexit, boosted demand for safe havens. Ahead of the positive U.S. Employment Report for December, gold futures managed to top the $1,300 an ounce mark. Prices retreated below the psychological level in the aftermath of a robust jobs report as Fed Reserve Chairman Jerome Powell emphasized the central bank’s sensitivity to downside risks and expressed his confidence in the U.S. economy. While risk appetite rose amid the rhetorical shift, it may be too soon to breathe a sigh of relief. YELLOW METAL GOING HIGHER DESPITE HEADWINDS Jim Rickards joined me at the NASDAQ MarketSite at the end of last year to talk about the outlook for 2019. He expects the headwinds for gold will turn into tailwinds and that the outlook for prices remains positive. Given the slow and gradual recovery for spot gold, Rickards mentioned that he gets asked often about the leisurely pace of the advance. Interview segment with Jim Rickards taped on December 2018: CLICK HERE. The fundamentals that are monitored closely in correlation to gold include USD price action, the interest rate outlook and inflation. The Federal Reserve may be nearing the end of its three-year rate hiking cycle sooner rather than later. With potential upside for gold prices, be on the lookout for a possible breakout amid volatile trading conditions. BULLISH SIGNS FOR GOLD? As the first full trading week of 2019 got underway data from the People’s Bank of China showed that the nation increased its gold reserves last month for first time since October 2016. While this is a notable move, other countries around the globe added to their gold holdings for the first time in several years. Hungary and Poland added to their gold holdings following similar diversification and repatriation moves by other central banks. It is no secret that gold is viewed as a safe haven asset that provides protection from USD fluctuations so it should come as no surprise that central bank reserve holdings of gold climbed last year. The official numbers on central bank net purchases of gold showed that the net buying of reserves pushed overall sector activity higher. According to the latest World Gold Council report, gold-backed ETFs rose in December and posted the third consecutive month of positive flows. European funds propelled the growth with Germany leading with inflows of $2.6 billion. Meanwhile North American funds led the outflows during the first three quarters of the year but reversed course in the fourth quarter and managed to make up most of the losses from 2018. The WGC’s monthly gold ETF/ETP report also reflected strength of inflows with total gold-backed ETF holdings settling above $100 billion for the first time since 2012. The organization’s data on daily gold trading volume saw an increase of 2% year-on-year, coming in at an average of $100- to $125 billion a day in 2018. Meanwhile, palladium continues to trek higher and set new record levels in 2019. In our most recent interview, Rickards commented on the “other precious metal,” especially in light of the fact that palladium is at a premium to gold prices. There has been a bright spotlight on palladium as prices surpassed gold amid increased demand for its use in catalytic converters for vehicles. GETTING READY FOR THE NEXT RECESSION: RISKS ON THE HORIZON Does a depression sound worse than a recession? Rickards offers an explanation as to why we have been in a depression for over a decade. There are some that may say recession worries are overblown at this point in time, so make sure to listen to Rickards’ account of economic growth and argument for which type of trough in economic activity is most worrisome. Have you ever paused to consider the best methods of wealth storage and wealth preservation that are not digital? It may be far-fetched to believe that a cyberattack on the major banks could trigger a major financial crisis. Disruptions to financial systems and services or a temporary halt to critical infrastructure are threats that already cost nations over $1 trillion in damage. Perhaps it may be safer to go the non-digital route and diversify in other ways – or at least consider as an alternative. Cybersecurity programs and war game simulations can help set standards for major institutions and bring awareness to vulnerabilities and response protocols for potential risks. The road ahead for investing may seem murky enough. Cybersecurity will continue to play a big part in the risk management structure of financial firms but also of institutions across the public and private sector. Preparation and strategy will further inform industry and investors alike. The consequences of a cyberattack can be catastrophic but the digital economy has become a reality for business models that span the globe. Rickards emphasizes that he has never recommended “sell everything, buy gold.” Instead he says that land, physical gold (in storage) and natural resources are non-digital assets that can be owned as part of an individual’s investment portfolio. Read in browser »
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”. The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Forward-Looking Statement This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested. Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested. Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
TORONTO , Jan. 8, 2019 /CNW/ – Uranium Participation Corporation (“UPC”) (TSX:U) reports its estimated net asset value at December 31, 2018 was CAD$691.5 million or CAD$5.01 per share. As at December 31, 2018 , UPC’s uranium investment portfolio consisted of the following: View PDF Version.
(in thousands of Canadian dollars, except quantity amounts)
Quantity
Fair Value
Investments in Uranium:
Uranium oxide in concentrates (“U3O8“)
14,159,354 lbs
$
550,511
Uranium hexafluoride (“UF6“)
1,117,230 KgU
$
134,123
$
684,634
U3O8 fair value1 per pound:
– In Canadian dollars1
$
38.88
– In United States dollars
$
28.50
UF6 fair value1 per KgU:
– In Canadian dollars1
$
120.05
– In United States dollars
$
88.00
1
Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada’s month-end daily exchange rate of $1.3642.
On the last trading day of December 2018 , the common shares of UPC closed on the TSX at a value of CAD$4.48 , which represents a 10.58% discount to the net asset value of CAD$5.01 per share.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates (“U3O8“) and uranium hexafluoride (“UF6“) (collectively “uranium”), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on UPC’s website at www.uraniumparticipation.com.
Caution Regarding Forward-Looking Information
This press release contains certain forward-looking statements and forward-looking information that are based on UPC’s current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “plan”, “should”, “believe” or “continue” or the negative thereof or variations thereon or similar terminology and include statements with respect to UPC’s investment objectives.
By their very nature, forward-looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of UPC, may cause actual results to differ materially from the expectations expressed in the forward-looking statement. These factors include, but are not limited to, changes in commodity prices and foreign exchange as well as the risk that UPC will not obtain the anticipated benefits of its agreements with third parties. For a description of the principal risks of UPC, see “Risk Factors” in UPC’s Annual Information Form dated May 14, 2018 for the year ended February 28, 2018 , a copy of which is available at www.sedar.com.
These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward-looking statements. Except where required under applicable securities legislation, UPC does not undertake to update any forward-looking information statement.
Excellon Resources Inc. (CNW Group/Excellon Resources Inc.)
Excellon Resources Inc. (TSX:EXN and OTC:EXLLF) (“Excellon” or the “Company”) is pleased to announce the appointment of Marcello Locatelli as Vice President Special Projects. Mr. Locatelli will be responsible for further optimization at the Company’s operations and project evaluation.
“An essential part of our strategy is building a team that can discover, develop and operate mining assets so that we can fully realize on the next bull market in metals,” stated Brendan Cahill , President and CEO. “Just as great mining assets have been increasingly rare in recent years, the demographic gap in mining portends the same for the industry’s most important asset – people. Marcello’s global experience optimizing and evaluating projects will play an important role in improving our existing operations and growing our business for the long term.”
Mr. Locatelli is a professional engineer with over 15 years of experience successfully managing and engineering various commodity studies and projects of all sizes. Most recently, Mr. Locatelli was a Director of Inteloc Inc., an engineering firm providing project management, evaluation and control services using leading technologies. Having worked on many projects across the globe, his experience extends from conceptual design through to commissioning, with a specific focus on project engineering, procurement, construction management, economic evaluations and social and environmental permitting. Mr. Locatelli has held lead engineer and project manager positions with Ausenco, Halyard Inc. and DRA Americas Inc., assisting in special projects related to bulk sampling, processing plant design and project development. He holds a Bachelor of Engineering (Mechanical) degree from the University of Johannesburg .
About Excellon
Excellon’s 100%-owned Platosa Mine has been Mexico’s highest-grade silver mine since production commenced in 2005. The Company is focused on optimizing Platosa’s cost and production profile, discovering further high-grade silver and carbonate replacement deposit (CRD) mineralization on the 21,000 hectare Platosa Project and epithermal silver mineralization on the 100%-owned 45,000 hectare Evolución Property, and capitalizing on current market conditions by acquiring undervalued projects in the Americas.
Additional details on the Platosa Mine and the rest of Excellon’s exploration properties are available at www.excellonresources.com.
Forward-Looking Statements The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties, and particularly the September 7, 2018 NI 43-101 technical report prepared by SRK Consulting ( Canada ) Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
From the Offices of Richard Matthews: Please click the on the 3 blue tabs for an introduction to the value proposition of Nevada Copper (TSX: NCU | OTC: NEVDF) team
As we kick off into 2019, work at our Pumpkin Hollow project continues to move forward on target to enter production in Q4 of this year. For any mine construction, getting done to spec and on schedule requires experience, focus and energy – qualities that our team has in abundance.
To help you, our shareholders, get to know our senior team members a little better, we’re running a series of short podcasts.
Further information call:
Rich Matthews VP Marketing and Investor Relations Nevada Copper Corp rmatthews@nevadacopper.com 1 (877) 648-8266 – Work | (604) 355-7179 – Mobile www.nevadacopper.com
Traders often look at the financial markets as a science of valuing risk. With those who are able to spot the mispricings often coming out ahead in the end. Over and over. Much like a poker player who expects to win in the long run when he knows the conditions of the game are in his favor.
In today’s financial markets, there exists a great mispricing of risk. Sitting there for anyone who chooses to notice. In fact, perhaps the best part is that it’s rather simple, and you don’t even need to take my word for it to see it for yourself.
Because the current mispricing of U.S. dollar cash risk is one of the more glaring financial market anomalies I’ve seen in my lifetime. Or even read about historically.
While many market analysts will readily talk about the risks of precious metals, or a stock or bond, very few ever mention the actual risk of holding cash in a bank. The theoretically safe and secure option that investors and savers can count on during times of market chaos.
However we live in 2019 where the financial system has veered drastically from the free market ideals we were lead to believe were in place all along. In fact on a recent trip back east to the New York area for the holidays, I talked with several traders I used to work with. And we were all stunned at how distorted the markets have become in the past decade. And right now if you hold cash in a bank, you’re taking on far more risk than you probably realize.
In Europe and Japan, their central bankers flat-out admit that they’re offering a negative real rate of return. And with a more accurate barometer of the rate of inflation than what’s produced by the BLS, real interest rates in the U.S. have already been negative for quite some time.
Which means that if you put money in a bank and take it out a year later, your best case is that you only lost a little bit. Because if you put $100 in the bank and received a negative 1% rate of return, you would be getting the equivalent of $99 back next year.
Of course if the rest of the world begins to price in that the Fed’s monetary base has quadrupled since 2008, and now the Fed is already beginning to back away from further interest rate increases, value of the dollar is likely to decrease even further.
Additionally, many of the banks you could conceivably put those dollars in are on shaky financial footing. Deutsche Bank continues to struggle, and the central bankers have yet to offer any insight as to what happens should DB default on its massive derivatives book.
If rates continue to rise, that puts further pressure on the real estate sector. As well as the government debt markets. And remember that the banks own much of this debt. Just as they did back in 2008 when the Fed came in to print away the losses because nobody else in the market wanted to buy it with their own money. So if rates rise, the bank that’s holding your money is going to be in even further financial distress while you’re counting on them to return your capital.
Of course the alternative is that rates do not rise, because the Fed sees what’s happening and reverts back to lowering interest rates. Which means printing more money. Which means the supply of dollars is increasing, and the value is going down. Whereas with gold and silver, you have the opportunity to own assets that cannot be printed and have served as money for thousands of years more than the U.S. dollar has.
Which is not to say to take every dollar you have and buy gold and silver. Obviously there are risks to any decision that you make in life. Although if I was faced with the choice of holding $10,000 in cash versus $10,000 of gold or silver for the next 10 years, to me, picking the metals is an easy choice. If you have any questions about this, as always you’re welcome to email me here.
The potential downside is that the banks could continue to distort the markets and push the precious metals prices even lower. But that scheme has always felt as if it’s on borrowed time, and compared to the risks of holding cash in the bank, trading dollars for gold and silver remains a great way of selling risk that’s overpriced in exchange for buying low.
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
For your protection, we are licensed, regulated, bonded and background checked per Minnesota State law.
VANCOUVER , Jan. 7, 2019 /CNW/ – Mirasol Resources Ltd. (TSX-V: MRZ, OTCPK: MRZLF) (the “Company” or “Mirasol”) is pleased to provide an exploration update for the Company’s Gorbea property package in Chile , that is subject to a recently announced non-binding Heads of Agreement for an Option to Farm-in with Newcrest International Pty Limited, a wholly owned subsidiary of Newcrest Mining Limited (ASX: NCM; “NCM” – see news release December 10, 2018 ). Gorbea comprises a claims package totaling 26,684 ha (266.84 sq. km) including the Atlas and Titan Au+Ag+Cu projects, within the highly prospective Mio-Pliocene mineral belt of northern Chile (Figure 1).
Subject to completion of ongoing due diligence, NCM has committed US$4 million in exploration expenditures, including a minimum of 3,000 m of drilling over the first 18 months of the Option Period.
Mirasol and NCM are advancing the drill permitting process and upgrading the exploration camp ahead of a planned Q1 2019 restart of exploration program that will initially focus on Atlas, including detailed remapping mapping, alteration vectoring studies and 60 line-km of CSAMT geophysics, and diamond core drilling.
At Atlas, significant progress in geological understanding has been derived from Mirasol’s initial interpretation US$8 million of exploration data generated under a recently terminated Joint Venture on the Gorbea package (see news release April 13, 2018 ).
Outcomes include recognition of a large breccias complex at Atlas that is host to the better gold mineralization, a development of a new alteration vectoring model suggesting that a number of previous drill holes with anomalous Au+Ag assays may have been terminated early above the potentially better mineralized zone and recognition of new target areas where gold mineralization may occur closer to surface.
The scale of the Atlas Au+Ag system, combined with the relatively modest amount of exploration drilling to date ( 10,499 m in 26 holes) and the range of priority targets identified, highlights the project as a large, under-explored HSE system, requiring further drill testing for potential large tonnage bulk minable Au+Ag mineralization.
Atlas Prospect Update
Atlas is centered on the Dos Hermanas andesite to dacite composition, lava, pyroclastic and dome field that hosts the large-area, argillic to advanced argillic alteration and Au+Ag system which characterizes the prospect. A combination of assays from detailed stream sediment, soil and rock chip sampling outline a precious metal “footprint” for the Atlas system of approximately 14 sq. km.
A 53 sq. km conventional PDP electrical geophysical survey over the central part of the Atlas project outlined large resistivity anomalies along the NE oriented Cerro Chaco fault zone and a 4.5 km diameter resistivity feature, interpreted to delimit a large zone of stronger alteration and silicification (Figure 2). The circular resistivity feature contains the more significant bodies of breccia identified to date, that host the better intersections of Au+Ag mineralization encountered in drilling at Atlas. Only a small part of the circular resistivity feature has been drill tested at this time.
Recent radiometric age-dating of alunite alteration associated with Au+Ag mineralization at Atlas has returned a determination of 20.6 ma ±0.6 ma1. Previous reported age-dating of alunite from Mirasol’s adjacent Titan Au (Cu) project, returned an age date of 17.08 ma ±0.8 ma2. These ages correlate with Lower to Middle Miocene mineralization events recognized in the Maricunga Au+Ag+Cu Belt, located 150 km to the south, which has produced significant metallic deposits, including Pan Pacific Copper’s Caserones mine (4.6 Mt Cu3) and Kinross Gold Corporation’s La Coipa High Sulfidation Epithermal (HSE) Au+Ag district (5.5 Moz Au and 295 Moz Ag4; Figure 1).
Exploration at Atlas has shown Au+Ag mineralization is hosted by:
1)
Vuggy silica – alunite structures, such as the 900 m long Atlas Gold Zone (AGZ) where limited shallow drilling on the NW end of the structure returned an anomalous intersection of 24 m at 0.18 g/t Au and 13.1 g/t Ag (Table 1). The un-drilled areas of higher-grade rock chip sampling at the center and SE end of the AGZ trend returned assays of up to 8.86 g/t Au and 44.7 g/t Ag and 16.75 g/t Au and 43.9 g/t Ag, representing a target area for future drilling.
2)
Multiphase phreatomagmatic and hydrothermal breccia bodies, that are seen at various prospects across the Atlas project. Where mineralized, these breccias are altered to quartz-alunite ± jarosite ± dark hematite assemblage with vuggy silica textures. The Steam Heated Zone (SHZ) breccia body hosts the best drill intersections to-date, which reported 114.1 m at 1.07 g/t Au and 1.8 g/t Ag, including 36 m at 2.49 g/t Au and 3.1 g/t (Table 1). Brecciation is a key feature in many large HSE precious metal deposits, where the breccia bodies act as both a conduit for mineralizing fluids and a host rock for economic concentrations of mineralization. The presence of widespread strongly altered brecciation is considered one of the positive features of the Atlas project.
The SHZ Au+Ag mineralized breccia body has not been fully delineated by drilling. As currently defined by 0.1 Au g/t cutoff, the body has dimensions of 950 by 500 m , up to 120 m thick and is open to depth and laterally in all directions. The SHZ mineralization is located beneath a +230 m “barren” alteration cap. The presence of a barren alteration cap at Atlas is a characteristic in common with other recent HSE Au+Ag discoveries in the Mio-Pliocene belt, including the Salares Norte deposit (3.7 Moz Au and 49.5 Moz Ag 5) located 65 km to the south of Atlas, undergoing a feasibility study by Gold Fields Ltd6.
Relogging of Atlas core holes by Mirasol along a NW-SE oriented cross section through the SHZ body (Figure 3 and Figure 4) has led to the following understanding of the prospect:
1)
The SHZ mineralization may be located at progressively shallower depths to the NW, toward a 700 m long gap in drilling, located between the SHZ breccia zone and the AGZ. Drilling to test for shallower potential high-grade mineralization in this “gap” is a priority;
2)
The development of a more detailed alteration / mineralization model for the SHZ breccia mineralization. The model suggests that the better mineralized zone has a low-grade outer “jarosite alunite cap” that is recognized as either a jarosite-alunite matrix vuggy breccia or a cream-coloured, jarosite-bearing silica veinlets or breccia matrix. Au+Ag grade improves beneath the low grade “jarosite- alunite cap” and at depth into the mineralized body.
3)
Mineralization is deeply oxidized beyond the base of drilling to +370 m below surface. Au+Ag is associated with a multiphase breccia with vuggy quartz textures and coarse alunite ± jarosite and dark hematite interpreted to be after original sulfide.
The recognition of a low-grade jarosite-alunite cap, immediately overlying the SHZ mineralization may be used to vector to zones of potentially better Au+Ag grade at the SHZ. This highlights that a number of drill holes in the SHZ and other breccia bodies (holes CLATDH0016, 21, 23 and 25) at Atlas appear to have been prematurely terminated in the low-grade cap, potentially not intercepting nor testing the underlying potentially better-grade mineralization. The presence of deep oxidation associated with hematite replacement of original sulfide mineralization has also been noted at the giant Veladero HSE gold mine (17.3 Moz Au and 195.5 Moz Ag 7) operated by Barrick Gold in the Mio-Pliocene belt of Argentina , where deep oxidization of the mineralization is attributed to a combination of late-stage heated ground water collapsing into the system at the later stages of the mineralizing system, as well as post mineral supergene processes. Oxidation of the mineralization can be an indication of positive metallurgical characteristics for gold recovery in HSE precious metal deposits.
Stephen Nano , President and CEO of Mirasol, has approved the technical content of this news release. Mr Nano is a Charter Professional geologist and Fellow of the Australasian Institute of Mining and Metallurgy (CP and FAusIMM) and is a Qualified Person under NI 43 -101.
Under the terms of the pervious Gorbea Joint Venture (terminated in April 2018 ), all exploration was managed by the then joint venture partner. Pre-joint venture exploration on the projects was managed by Stephen C. Nano , who is the Qualified Person under NI 43-101. Exploration data generated from the previous Gorbea Joint Venture program was reviewed and validated by Mirasol prior to release. The technical interpretations presented here are those of Mirasol Resources Ltd.
Mirasol applies industry standard exploration sampling methodologies and techniques. All geochemical rock and drill samples are collected under the supervision of the company’s geologists in accordance with industry practice. Geochemical assays are obtained and reported under a quality assurance and quality control (QA/QC) program. Samples are dispatched to an ISO 9001:2008 accredited laboratory in Chile for analysis. Assay results from surface rock, channel, trench, and drill core samples may be higher, lower or similar to results obtained from surface samples due to surficial oxidation and enrichment processes or due to natural geological grade variations in the primary mineralization.
Forward Looking Statements: The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Mirasol disclaims any obligations to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
1
Ar/Ar radiometric age date determination commissioned by Yamana Gold, performed at Sernageomin Geochronology Laboratories in Santiago, Chile.
2
Ar/Ar radiometric age date determination commissioned by Mirasol Resources, performed at Australian National University Argon Facility in Canberra, Australia
3
S&P Global Market Intelligence
4
S&P Global Market Intelligence
5
Gold Fields Mineral Resource and Mineral Reserve Supplement to the Integrated Annual Report,2017.
AuEq60 is the sum of the value of gold and silver in a given interval represented as a gold equivalent g/t value calculated via the formula: Au assay in g/t + (silver assay in g/t ÷ 60)
NOVO AND SUMITOMO CORPORATION EXTEND MEMORANDUM OF UNDERSTANDING TO ADVANCE NOVO’S AUSTRALIAN PROJECTS
VANCOUVER, BC, January 7, 2019 – Novo Resources Corp. (TSX-V: NVO; OTCQX: NSRPF) (“Novo” or the “Company”) is pleased to announce that the Company has extended and expanded its previously announced non-binding memorandum of understanding (the “MOU”) with Sumitomo Corporation of Tokyo, Japan (“Sumitomo”) (please refer to Novo’s news release of July 6, 2017) with the objectives of evaluating, advancing, and developing the Company’s Australian gold projects. The MOU reflects the following intentions of the parties:
Sumitomo will provide human resource assistance to assist Novo with the above objectives.
Sumitomo commits to make available up to 5,000,000,000 Japanese Yen in order to accomplish the above objectives, subject to mutual agreement on development plans for a project(s) and mutual agreement on a transaction structure(s).
Novo shall grant to Sumitomo the right to fund a project through an option to purchase an interest in a project based on a mutually agreed-upon valuation or through a subscription for Novo’s common shares at prevailing market prices subject to certain discounts (in accordance with the policies of the TSX Venture Exchange). Sumitomo will retain the sole and exclusive right to determine the final funding mechanism.
If Sumitomo agrees to commit funds to a project and Novo agrees to receive such funding, Novo shall seek approval from its board of directors to provide Sumitomo with a right of first refusal (the “ROFR”) over the project. If granted, the ROFR shall require Novo to provide notice to Sumitomo if an offer is provided to Novo by a third party regarding the project (a “Transaction”). Novo shall deliver to Sumitomo a written offer disclosing terms at the same price and otherwise on the same terms and conditions as set out in the third party offer, and Sumitomo will have a thirty (30) day period to elect to enter into the Transaction with Novo.
The term of this MOU will expire December 31, 2023.
“We are delighted to continue working with Sumitomo Corporation to advance Novo’s Australian projects,” commented Dr. Quinton Hennigh, Chairman, President, and director of Novo Resources Corp. “Sumitomo has a long history of working constructively with miningcompanies to evaluate, finance and develop mines. Novo is honoured to collaborate with Sumitomo, and we look forward to working with their highly skilled mining team as we explore opportunities to advance Novo’s Australian gold projects.” About Novo Resources Corp. Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com On Behalf of the Board of Directors, Novo Resources Corp. “Quinton Hennigh” Quinton Hennigh Chairman and President Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Forward-looking information Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to future transactions and the likelihood of receiving funding from Sumitomo. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the Company’s ability to successfully obtain funding from Sumitomo.
Doug Casey, Author of “Speculator” and “Drug Lord”
Advocates of sound money have dreamed of a gold-backed digital currency for many years. Now, with the advent of blockchain technology, the dream of a viable, gold-backed digital currency is finally coming true. And the potential is enormous. Dozens of gold-backed digital currencies are sprouting up. Peter Grosskopf, CEO of Sprott, called it “the most important thing to happen to the gold market in the last several decades.” He was referring to the marriage of gold with the blockchain. Shortly thereafter Sprott launched Vaultchain, a gold-backed crypto it developed with its partners. When Sprott makes a big move into the gold-backed crypto space it’s a definitive sign of where things are headed. That’s why I recently spoke with Doug Casey and Rick Rule, both of whom are excited about what the huge potential of a gold-backed crypto. It’s hard to think of two other people who have had more experience and success in the resource market — and gold in particular — than Doug and Rick. Here’s what they told me: Nick Giambruno: Rick, you’ve been in the resource market for decades. But recently we discussed how you’re looking very closely at gold-backed cryptocurrencies. It really seems to be this is where there is an intersection of the resource market and the technology of the blockchain and decentralized databases. So, what made you interested in gold-backed cryptos? Rick Rule: Well, first we believe that the potential audience for gold and cryptos is very similar. The people who believe that there should be mediums of exchange that aren’t government sponsored will adopt both to cryptos and gold. Second, we saw how the distributed ledger could make the inefficiencies of the gold trade go away to the benefit of all users. Third, we saw a circumstance where there was a proliferation of crypto products that were in and of themselves faith-based currencies, floating abstraction. Dogecoin is an example that started off as a joke, and then got a bid. We believe that using the distributed ledger technology to make gold trading more effective was something that the market wanted, and secondly a logical extension of the Sprott brand, which is in some investors’ minds synonymous with precious metals. We already manage well in excess of $4 billion in exchange traded precious metals on the New York Stock Exchange, and thought an extension of our brand to a crypto product was a logical thing to do. What was holding us back was the technological capability internally to cause that to occur, and when IEX (Investors Exchange) — the sort of flash boys guys — came into the equation and in fact approached us about being their partner in enabling distributed ledger and blockchain technologies in gold, that was just an offer too good to pass up. Nick Giambruno: Doug, you’ve talked a lot about sound money over the years, so how does a gold-backed crypto play into your notion of sound money and the characteristics of it? Doug Casey: Very well. One of the disadvantages of gold is that it’s hard to transport. While today it’s not illegal to cross borders with gold, in two separate countries on two separate continents when I was carrying about a dozen silver one-ounce coins and both times they stopped me at the x-ray machine and examined them. No problem because it was silver and they weren’t worth anything, but if they had been gold it would’ve been a problem. So it’s not illegal to transport gold, but it’s becoming inconvenient to do so. I think that a gold-backed crypto will kiss that and make it better. Nick Giambruno: Rick, you mentioned how the blockchain helps take away some of the inefficiencies of traditional gold warehousing companies. Can you elaborate on that? Rick Rule: Sure. If one of your readers wanted to go out and buy, say, ten ounces of physical gold, the spot price is the reference price. But the truth is at many bullion dealers they’ll pay a 3% or 3.5% markup. Should they change their mind two hours later and decide to sell it, they wouldn’t get spot on the sell side either. They’d get a 3% or 3.5% markdown, meaning that the simple act of buying and selling ten ounces of gold can cause the investor to experience 7% or 700 basis points of friction. On top of that, one often pays to store and insure that gold, and they also pay for shipping and receiving. If you eliminate the vast bulk of those transaction fees, you can see the incredible increase in economic efficiency for buying and selling gold through distributed ledger, through the blockchain. And that was really the most important thing that appealed to us. We just wanted to make the gold trade much more efficient for those investors who believed that gold was a savings product, that gold was money. Nick Giambruno: Doug, I personally believe there will never be a gold-backed crypto that can completely stand in for gold. There is simply no substitute for owning physical gold that you can readily hold in your hand. However, owning large amounts of physical gold presents its own challenges. It’s hard to store securely, move long distances, and break down into smaller amounts. A gold-backed crypto can help address these drawbacks. That said, any gold-backed crypto will have inevitably have some counterparty risk. Physical gold in your direct possession does not. Instead of being a substitute for owning physical gold in your own possession, I believe gold-backed cryptos are complimentary tool for individuals all around the world to access sound money. What’s your take? Doug Casey: I think it’s a great innovation. The reasons why cryptos are catching on in the developed world are pretty obvious. We don’t need to go about that here. I think the real future for cryptos, and this is especially true of gold-backed cryptos, is going to be in the Third World, because 75% of the people on the planet have to use toilet paper currencies — like the Zambian Kwacha, the Argentine peso, or the Venezuelan Bolivar — that have little value within their countries of issuance and no value at all outside of the borders. Especially since these people tend to understand gold, it’s tangible, it’s more understandable than just the idea of a cryptocurrency if they see it represents gold, I think this type of this is eventually going to catch fire in these Third World countries where they’ll be able to save and transfer wealth in something that’s of real value as opposed to just some locally issued government toilet paper. This is a wonderful innovation not just for us but for the little impoverished people out there in the world. Nick Giambruno: Exactly… why would anyone abandon their wealth to a constantly depreciating government fiat currency, sitting in an insolvent fractional reserve bank when you can easily save a gold-backed crypto? On that note, how does a gold-backed crypto help one with political diversification? Is it a new tool in the toolkit? Doug Casey: I want to emphasize, especially for Americans, that it’s not just a question of what you have and what you’re doing in the market, but where you’re keeping these things. Everyone, not just Americans, should try to have half of their gold, cash, and investments outside of their countries of citizenship and/or residence. You don’t want all of your assets within easy reach of whatever government considers you its milk cow. Nick Giambruno: Rick, what features does a gold-backed crypto need to be credible… redemption, reputable partners, auditability? Rick Rule: In answer to your question, the answer is yes, all of that is important. The first thing is that there will be and there have been numerous crypto scams where the promoters of the crypto either caused or paid to cause rapid price escalation in a token that had no intrinsic value, and whose price ultimately fell to its intrinsic value, which is zero. It’s important that investments are made in the architecture of the distributed ledger product, and in the maintenance of the distributed ledger product. The distributed ledger does not — contrary to popular opinion — maintain itself. Bitcoin is an example. That whole process is sustained by miners who are rewarded with Bitcoin. In the absence of something like that a system crashes. I think it’s important that crypto gold be redeemable and be audited. In the case of Sprott I think one of the reasons why we were chosen as a partner is because we already manage well over $4 billion in exchange traded gold products, and we have 20 years of experience with people who want to trade their certificates for physical precious metals and get delivery. We do it every day. Doug will hate me for this, but our gold is stored at the Royal Canadian Mint. We joke that our security is provided by NATO. So I would suggest to you examine the architecture of the system, the reliability of the sponsors, and the redeemability and security of the gold behind gold-backed cryptos very carefully. One of the things that’s given me personally great comfort is that of the three-dozen some odd entrants to the market that we’re aware of, we are the ones that have had the broadest adaption from the gold mining community. If you look at our shareholders registered: Goldcorp, Wheaton Precious Metals, Iamgold, Agnico Eagle, we’ve done transactions already where Goldcorp transferred 3,000 ounces of gold to us in return for ledgers because it saved them hundreds of thousands of dollars in transaction fees already. Nick Giambruno: A gold-backed crypto necessarily must have one foot in the real world and one foot in the digital world. If it has a foot in the real world it’s going to be susceptible to governments coercing them somehow, unfortunately. There are plenty examples of crypto projects and precious metals initiatives thinking they could flout regulations, no matter how ridiculous they may be. What inevitably happens is they end up painting a big, red target on their backs. The government eventually shut them down. How could a gold-backed crypto today avoid a similar fate? Rick Rule: Well, when we began in conjunction with our partners developing our own product, we were very aggressive in communicating what we were doing and soliciting feedback from various regulators in both the United States and Canada. While in an ideal world that wouldn’t be a requirement, that’s not the world that Sprott as a regulated entity inhabits. The consequence of that is that we didn’t surprise the regulatory authorities with anything, and we didn’t make any claims whatsoever that we were exempt from regulations that would become proposed. With our product — because it isn’t a token, it’s really a deposit receipt or commodity receipt on the distributed ledger rather than a token — and because we were unsure of the way that the SEC would regulate the product, we decided to comply with know your customer regulations. I won’t bore your readers with the arcane details, but it’s important that people understand that this distributed ledger receipt represents actual gold stored by us at the Royal Canadian Mint. It’s redeemable for gold and it’s exchangeable. We have chosen internally to believe that gold-backed cryptos will ultimately attempt to be regulated by the CFTC or by the SEC or one of the banking regulators, and the consequence of that is that to participate in our offering you do need to open an account with a participating financial services firm. The lesson that we’ve learned managing institutional money, managing ETFs, is that if you are going to play in investment markets and financial services markets, and think you’re going to circumvent regulation, you’re mistaken. That may or may not sit well with all your readers, but it’s the truth nonetheless. Nick Giambruno: The value of Bitcoin and other cryptocurrencies can be wildly volatile. This is a problem for anyone looking to use cryptos in the regular course of business. Gold-backed cryptos, on other hand, should have relatively stable prices. They also can give people the ability to send and receive gold as easy as sending email. This should make them appealing to merchants, lenders, businesses, investors, escrow services and the like… anyone who wants to conduct business in gold — but also wants the convenience of cryptocurrencies. Businesses could use gold-backed cryptos to pay rent, salaries, or other ordinary expenses. The possibilities are enormous. I think that could open a huge new ecosystem. That’s why I think gold-backed cryptos could create a genuine revolution in finance and why I’m so excited about them in general. The demand for gold-backed cryptos — which is really the demand for sound and convenient money — is potentially enormous. It can be useful to anyone. Do you see this evolution in the gold-backed crypto space playing out? Rick Rule: I absolutely do. If you look at the trading volume and liquidity that gold enjoys today and you add that to that the incredible economic efficiency of the distributed ledger, the ultimate applications that you’re talking about as a transfer mechanism, as a store of wealth, as collateral, an entirely new ecosystem, really are limitless. Nick Giambruno: Doug and Rick, thank you for your time. If readers would like more information about Vaultchain they can send an email to TradeWind@sprottglobal.com. The post Gold-Backed Cryptos: Doug Casey and Rick Rule Talk Potential of Digital Currencyappeared first on Sprott Media. Read in browser »
Recent Articles:
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”. The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Forward-Looking Statement This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested. Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested. Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
