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MILES FRANKLIN News

From The Desk Of David Schectman
If one offered investors a fat tail put option that never decays or expires, costs about -1% pa to carry, has no counter party risk & no chance of ever becoming worthless, there would be a line out the door. But when one explains that this option is physical gold… no interest. – JSMineset
For a decade our stock market has gone up and up. All corrections were short-lived and a move to higher levels was always in the cards. In contrast, gold/silver have retreated from their 2011 all-time highs for 7 plus years … either retreating, going sideways, or failing to recover to any meaningful areas and holding them. In general exiting positions in our stock market to enter the precious metals arena has not paid off … with a few exceptions, of course. The point is that should our stock market go into an extended bear market, it is likely to send a wave of investors from the US into the dormant precious metals.
It is not Einstein insight. Should our stock market correct sharply and in a sustained manner, unlike these past many years, it will put a great deal of pressure on the Fed to rethink their interest rate posture. Should they backtrack, especially under pressure from President Trump, the dollar is likely to take a big hit, which will create a hefty tailwind for the precious metals prices. – Bill Murphy
David’s Commentary:
I’ve been around the block a few times. At my age, I have been through the cycles two or three times. It is a fact that history repeats itself, more or less, but checking on stories at Zero Hedge several times a day and reading the newspaper and tuning in on the TV I feel as though it’s been at least 10 years since things were this ominous.
Here are just a few of the headlines On Zero Hedge today: 2020 Presidential Election Will Be The Most Violent In American History; Why Is Every Asset Down in 2018; Nasdaq Plunges Into Red For 2018 – Worst Year In A Decade; Bear Markets Everywhere.` Over Half The World Is Now Down 20% Or More; Chinese Military Official – We Should Attack US Navy Vessels That Violate Chinese Waters; World Markets “In World Of Pain” As Nothing Can Stop Relentless Stock Selling; How To Avoid A New Are In Europe; Russian Stealth Jets To Be Armed With New Hypersonic Missiles; EU ARMY? France Riot Control Vehicles Bearing EU Flag Stoke Fear, Confusion; Japan GDP Tumbles After Biggest CapEx Collapse Since Financial Crisis…. That’s just from one day and it’s that way every day.
Ed Steer’s featured articles today included the following headlines: Dow 10,000 (Bill Bonner); U.S. Consumer Credit Hits All Time High as Credit Card Usage Soars; Credit “Death Spiral” Accelerates as Loan ETF Sees Record Outflow, Primary Market Freezes; Macron’s Defeat in Paris Sounds Alarm for Europe.
I can only imagine what “Ranting Andy Hoffman” would be writing on these pages in his “Horrible Headlines.” I’ve just highlighted a few.
There is an old adage: “Where there’s smoke, there’s fire.” President Trump and Wall Street keep telling us things are great and good times lie ahead. My pessimistic nature tells me, “I don’t think so.”
There is another trend that has been gaining strength in the last couple of years. My head is spinning from all of the offers to get rich I receive in my Email box every day. Every day I receive several recommendations of a stock to buy or a financial strategy that will make me rich. Twenty years ago, I used to try some of the strategies and recommendations.
After losing money on most of them, I no longer pay any attention to any of the recommendations. Sure, one or two may be a worthwhile tips, but most won’t and there is no way to separate the bad advice from the good. Even my daughter told me that she is not buying any stocks now (she is a traditional investor with a financial advisor managing her assets). I suggested that she use a stop-loss strategy on all of her stocks now. I hope she takes my advice.
I want to warn all of our readers that it’s risky to place orders on the Internet.
We don’t take orders from the Internet. Sure, it’s convenient to be able to buy your metals that way, but…. Today we were informed that one of the industries well-known firms, a firm that doesn’t have brokers and does all their business over the Internet, sent out an alert to all of their clients, warning them that they have been hacked. As they pointed out, “nearly all companies in America and around the world are under constant cyberattack and security incidents occur all too often.” They were hacked by a foreign-based entity who demanded an extortion payment, or they would release certain customer information obtained from their system. They determined that their clients name, email address, location and encrypted password were all compromised. Additionally, they learned that the attacker has emailed some customers with attempts to extort them directly through false threats to “wipe out your balance”. The best-case scenario here is that no harm will come to their clients, but they will have to change passwords and closely monitor their accounts. Since we are not on the Internet, we are not vulnerable to this kind of hacking.
How about some uplifting news? Of course, this is just one man’s opinion (guess), I’ll take it.
E.B. Tucker Director, Metalla Royalty & Streaming
2019 will see the start of a new bull cycle for gold and push the metal up to $1,500 an ounce, said E.B. Tucker, director of Metalla Royalty & Streaming.
“To make big money in this market, you have to see the cycles. Nothing changes. We’ve had three big cycles in gold since 2000 and we’re about to have another one,” Tucker told Kitco News.
Tucker said that the next cycle peak could reach $1,900 an ounce, but that won’t happen next year.
“We’re … (read more)
JPMorgan is at it again. Their greed has no limits.
BANK OF FRANCE AND JP MORGAN START GOLD MANIPULATIONTRADING
Macron is now also trying to edge in on the gold trading market for France. This has been the prerogative of London since 1750, but now JP Morgan (who else) has joined up with Banque de France to offer gold swaps, leases and gold deposits for central banks.  Obviously, the purpose is to attack the UK further in relation to Brexit. If they succeed, there will be yet another country that will manipulate the gold market with Morgan’s help. So, more paper gold and more manipulation of the gold market until the whole artificial gold edifice collapses whilst the physical remains as the only money which has ever survived.
“Plus ça change, plus c’est la même chose”!
(The more things change, the more they stay the same.) -Egon von Greyerz
The 200-day moving average for gold sits at 1260.93. Keep an eye on that number. It changes daily, but it is a slow-moving average.
The 200-day number for silver is not on our radar – yet. It sits at 15.56
Here are some interesting comments from Ed Steer…
Nothing has changed out there. The main-stream media is still screaming that all is well, but that is far from the case everywhere one cares to look. The Potemkin village that they’ve been propping up, painting and pointing to for at least the last decade, is coming ever closer to collapsing. Yes, the various and sundry central banks and Plunge Protection Teams have been working overtime to keep up the facade, but it’s equally obvious that more and more people now see it for what it really is.
As I’ve said before — and I’ll repeat myself again here, if the powers-that-be weren’t propping up everything that wanted to crash and burn…equities, bonds and currencies…then the world’s economic, financial monetary systems would be a smoldering ruin by the close of trading next Friday, if not before. And the longer they try to stave off the inevitable, the worse the carnage will be when it finally does happen — and it will happen. It’s just a matter of when — and the day of reckoning gets closer with each passing day.
Now I, along with a lot of others, have been saying the same thing for several years now, but that changes nothing. All it proves is that these powers-that-be have been able to keep the old apple cart up and going around the track for a lot longer than any of us thought possible. The melt-down in all things paper is still coming, regardless.
I still haven’t sold a single share of any precious metal stock that I own, or one ounce of my precious metal holdings — and added to several of my stock positions earlier this year. All of them are now down from when I purchased them, but that doesn’t change my resolve one bit.
Here, once again, is the list of precious metal stocks that I own shares in.
As I’ve pointed out on numerous occasions over the last couple of weeks, including today’s missive, that there’s a buyer for every precious metal stock being sold at these price levels — and it’s a given that they’re now held by the strongest of hands. They won’t be selling them until they make big profits — and probably obscene profits in the process.
Then there’s the last FOMC meeting of the year coming up on December 18 and 19. If the markets melt down before then, or on whatever news comes out of that meeting — and they’re showing all the signs that they just might. Then the rest of December could prove to be historic in every sense of the world.
And finally — and as I mentioned further up in today’s column, unless it gets pushed back — and Ted said that it just might, the DoJ sentencing date for that JPMorgan trader that pleaded guilty to spoofing the precious metal market, is on December 19th as well.
You couldn’t make this stuff up if you tried.
Gold to increase by 22% in 2019. I believe that is a conservative estimate. Check out the indicator below….
Casey Daily Dispatch
The Best Indicator of a Coming Gold Rally
The No. 1 indicator of a coming rally in the gold market is the gold-silver ratio. It measures the number of silver ounces it would take to buy one ounce of gold.
The average reading for the gold-silver ratio back to 2002 is 64. Today, it sits at 85, a record high. Notice in the chart below the extreme highs in this ratio in 2003, 2009, and 2016… all of which signaled a major rally in gold and gold stocks within months.
From 2004-2006, gold rose 85% after this ratio hit 80. From 2008-2011, gold rallied 171%. And in 2016, it rose another 28%.
Gold stocks – as measured by the Philadelphia Stock Exchange Gold and Silver Index (XAU) – did even better… From 2004-2006, gold stocks rose 116%. They rose 256% from 2008-2011. And they jumped another 191% in 2016.
Greg Hunter
In September, money manager Michael Pento warned, “The massive bubble blown by global central banks is unraveling now.” Look at the upheaval in markets and he was clearly correct. Now, Pento sees, “Deflation, say it again, deflation . . . . We are heading for a deflationary/ inflationary depression. That’s what we have been modeled for. That’s why we went short in September. . . . We covered the short just before Thanksgiving, and we went short again last Monday just before the crash.”
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About Miles Franklin
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.
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Precious Metals

MINERA ALAMOS Announces $2 Million of Early Funding Under Its Royalty Facility with Osisko Gold Royalties for the La Fortuna Gold Project, Durango, Mexico

Toronto, Ontario and Vancouver, British Columbia–(Newsfile Corp. – December 12, 2018) – Minera Alamos Inc. (TSXV: MAI) (“Minera Alamos” or the “Company”) is pleased to announce it has obtained $2 million of early funding in connection with its previously announced royalty agreement (the “Royalty Option Agreement”) through the execution of a secured senior convertible loan agreement (the “Loan” or “Loan Agreement”) with Osisko Gold Royalties Ltd (TSX: OR) (“Osisko”). The Loan may be converted into a 1% NSR on the La Fortuna gold project pursuant to the Royalty Option Agreemententered into with Osisko in May 2017, as detailed below.

Further to the Company’s news release dated November 21st, 2018 (“Minera Alamos Receives Positive Notice Regarding Permit Applications for La Fortuna Gold Project in Durango, Mexico“), the majority of the new funds are destined for a change of land use payment requested by the Mexican authorities (Secretaria de Medio Ambiente y Recursos Naturales – “SEMARNAT”) in conjunction with the La Fortuna gold project permit applications. Following the completion of the change of land use payment, SEMARNAT will then be in a position to issue the formal approval documentation for the La Fortuna project.

“As stated previously, the receipt of formal permit notifications for the La Fortuna gold project represents a major milestone for the Company. We are appreciative of the support provided by Osisko Gold Royalties allowing for us to meet the permitting payment deadlines,” stated Minera Alamos CEO Darren Koningen. “We can now look forward to 2019 and the beginning of site preparation work leading to a construction decision later in the year.”

“We are pleased to provide continuing support to the efforts of the Minera Alamos team as they successfully advance the La Fortuna gold project through permitting and toward a production decision,” stated Sean Roosen, Chairman and Chief Executive Officer of Osisko Gold Royalties. “The progress that Minera Alamos has made this year is a testimony to their ability to advance their development portfolio and we look forward to working with them as they transition to a gold producer.”

$2 MILLION SENIOR SECURED LOAN

Under the terms of the Loan Agreement, Osisko has provided Minera Alamos with a $2 million (the “Principal Amount”) loan. The Loan has a maturity date of 18 months from the date of issue and interest shall be payable on the Principal Amount at a rate per annum that is equal to LIBOR plus 8.5%, compounded monthly. Accrued interest shall be payable at maturity. At Osisko’s election, the Principal Amount may be converted in to a 1% NSR on the La Fortuna gold project pursuant to the Royalty Option Agreement (see press release dated May 30th2017). In addition, at the sole discretion of Osisko, the maturity date of the Loan could be advanced earlier than 18 months subject to providing 60 days notice to Minera Alamos. While the Loan is outstanding, it is secured by substantially all of the assets of Minera Alamos.

The Company has also issued 200,000 common share purchase warrants (the “Warrants”) to Osisko. Each Warrant entitles Osisko to acquire one common share at a price of $0.30 during the term of Loan.

The loan will be used for the change of land use payment required as part of the recent notice received by the Company regarding the Company’s ETJ-MAI permit applications for the proposed La Fortuna gold project and for other Project development purposes such as site preparation work in advance of the arrival of the Company’s previously acquired 2,000 tpd mill.

The entering into the Loan Agreement, the Amendment of the Royalty Option Agreement, the issue of the Warrants, the granting of the Security and the other transactions contemplated by the Loan Agreement, are considered to be a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as a result of Osisko owning 46,080,000 (~15.3%) of the common shares of the Company. Notwithstanding the foregoing, the transactions are exempt from the requirement to obtain a formal valuation pursuant to section 5.5(b) of MI 61-101, as the common shares of Minera Alamos are not listed on any of the specified markets and exempt from the requirement to obtain minority approval pursuant to 5.5(a) of MI 61-101, as at the time the transactions were agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for the transactions, insofar as it involves interested parties, exceeded 25 per cent of the Company’s market capitalization. The material change report to be issued in connection herewith is being filed less than 21 days in advance of the closing of the Loan as the Company requires the consideration it will receive in connection with the Loan immediately to make certain property payments.

ROYALTY OPTION AGREEMENT AND INVESTMENT AGREEMENT

Further to a Strategic Partnership entered into between Minera Alamos and Osisko in May 2017, Osisko was provided certain rights that included:

  • Royalty Option: Osisko was granted an option to purchase up to a 4.0% NSR royalty on the La Fortuna Property (“La Fortuna“) for total consideration of $9 million.
  • Royalty/Stream Right: As long as Osisko holds common shares equal to at least 10% of the issued and outstanding common shares of Minera Alamos, on a non-diluted basis (as determined in accordance with the terms of the Investment Agreement), Osisko will have a participation right on any and all royalties, streams, or similar interests granted on properties belonging to Minera Alamos.
  • Additional Rights: Osisko has (i) the right to participate in half of any buybacks of existing La Fortuna royalties, and (ii) the right to acquire (at fair market value) a 2.0% NSR on any property acquired within a 250 km radius of La Fortuna.

As part of the early funding arrangement, the Royalty Option Agreement was amended to provide the earlier conversion of the loan into a 1% NSR royalty that provides the Company increased flexibility. In addition, amendments were made to provide for liquidated damages and pursuant to the Investment Agreement to remove the 10% shareholding requirement in relation to the rights granted to Osisko under the Royalty Option Agreement as noted above.

For Further Information Please Contact:

Minera Alamos Inc.

Doug Ramshaw, President

Tel: 604-600-4423

Email: dramshaw@mineraalamos.com

Website: www.mineraalamos.com

About Minera Alamos

Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of high-quality Mexican assets, including the La Fortuna open-pit gold project in Durango with positive PEA completed, the Santana open-pit heap-leach development project in Sonora with test mining and processing completed and the Guadalupe de Los Reyes open-pit gold-silver project in Sinaloa with mine planning in progress. The Company is awaiting the pending approval of permit applications related to the commercial production of gold at both the Santana and Fortuna projects.

The Company’s strategy is to develop low capex assets while expanding the project resources and pursue complementary strategic acquisitions.

Mr. Darren Koningen, P. Eng., Minera Alamos’ CEO, is the Qualified Person responsible for the technical content of this press release under National Instrument 43-101. Mr. Koningen has supervised the preparation of, and approved the scientific and technical disclosures in this news release.

Caution Regarding Forward-Looking Statements

This news release may contain forward-looking information and Minera Alamos cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Minera Alamos included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Minera Alamos and Minera Alamos provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Minera Alamos’ future plans with respect to the Projects, objectives or goals, to the effect that Minera Alamos or management expects a stated condition or result to occur and the expected timing for release of a resource and reserve estimate on the Projects. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Minera Alamos’ mineral properties, the ability to complete a preliminary economic assessment which supports the technical and economic viability of mineral production could differ materially from those currently anticipated in such statements for many reasons. Minera Alamos’ financial condition and prospects could differ materially from those currently anticipated in such statements for many reasons such as: an inability to finance and/or complete an updated resource and reserve estimate and a preliminary economic assessment which supports the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Minera Alamos’ activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Minera Alamos’ forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Minera Alamos’ forward-looking statements. Minera Alamos does not undertake to update any forward-looking statement that may be made from time to time by Minera Alamos or on its behalf, except in accordance with applicable securities laws.

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 RELEASE.

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Base Metals Energy Exclusive Interviews Precious Metals

BOB MORIARTY’s Outlook On 2019

In a wide-ranging conversation, Bob Moriarty of 321 Gold discusses with Maurice Jackson of Proven and Probable geopolitics, economics, Bitcoin, precious metals and more.

VIDEO

AUDIO

TRANSCRIPT

Bob Moriarty’s Outlook on 2019 
Contributed Opinion

Source: Maurice Jackson for Streetwise Reports  (12/11/18)

Bob MoriartyMaurice Jackson

In a wide-ranging conversation, Bob Moriarty of 321 Gold discusses with Maurice Jackson of Proven and Probable geopolitics, economics, Bitcoin, precious metals and more.

2019
Maurice Jackson: Joining us for conversation is Bob Moriarty, the founder of 321 Gold and 321 Energy.com, and also the author of two of my personal favorite books, “The Art of Peace,” and “Nobody Knows Anything.” Mr. Moriarty, welcome to the show, sir.
Bob Moriarty: It’s very good to talk to you today, and it’s very funny because those are two of my favorite books, too.
Maurice: Sir, it’s always an honor to have you on our show. I would like to begin our discussion on your outlook for 2019. What are some topics of interest that we should focus on beginning with the political and economic landscape of the United States?
Bob: You’ve got to separate those, and we can do that, from an economic point of view. The trade war is a total disaster. It can only do damage. It already has done substantial damage. I think the everything bubble has popped, and we could see some real fireworks in 2019! The stock market has either topped or will top soon. Gold and silver appear to be bottoming. Platinum is the lowest relative to gold it has ever been. So, I’m literally buying platinum and I’m buying silver right now. I think that we may have a few more weeks of tax loss silly selling in the gold shares. But, I think that resources look good for next year, and everything else looks bad.
Politically, there’s just no predicting what Trump will do. Every day I get up, I look, I shudder. I’m not sure Trump knows what he’s doing. But, you and I were talking off mic, and one of the things that I said was, everybody needs to own some gold, they need to have some liquid cash, and they need to have a passport. The world is very precarious. Certainly you can see from the riots in France how swiftly things can go bad, and that all has to do with government spending money it doesn’t have and increasing taxes to pay for it.
Now, the problem is, governments across the globe have spent so much money that they can never tax the people enough, and the people are getting very tired of the cost of living go up and taxes going up, and they know the government is at fault, and they’re going to start hanging politicians here, very soon, and 2019 could be a lot worse than 2008 ever dreamed of.
Maurice: Speaking of that, let’s shift the focus here a little bit and talk about it on a global context here. Regarding geopolitics and the world economy, you somewhat reference it here, but what has you concerned the most?
Bob: Trump.
Maurice: Which will suffice in and of itself.
Bob: Trump is not dealing with a full deck, now to the extent that I’m glad he was elected president, because Hillary Clinton was far worse. But, Donald Trump is not dealing with a full deck. We have a coup d’état in progress. It’s been going on for several years where the FBI, and the DOJ, and the CIA, and the NSA are all trying to over throw Trump, and that’s a very bad thing. That’s not a good thing. It’s a bad thing. Have you ever been in a riot?
Maurice: No, sir, I have not.
Bob: Well, for 20 years, I flew small airplanes all over the world, and there were a couple of times that I got caught up in riots because things just started getting crazy. I was in Pakistan, and the locals decided they would start breaking up all the places that sold liquor, and when a mob forms, you see people at that very worst. When the banks close, when people can no longer cash checks, when their plastic money doesn’t work, Americans are three meals away from chaos, and it’s going to be bad, and I’m serious as a heart attack. Everybody should have a plan for getting out of dodge.
Maurice: And again, that plan is for our audience, a passport, physical precious metals, and some cash. And with regards to cash, would it be in a particular currency?
Bob: Whatever the local currency is. If you’re Canadian, you need Canadian dollars, and if you’re American, you need American dollars. Here’s the flaw. If the banks close, and the U.S. dollar goes to zero, you still need dollars because that’s what people are used to doing trade in. I’m not saying you need dollars because dollars are going to be more valuable. You need dollars because that’s how you conduct trade. I’m quite serious everybody needs a plan B. When everything goes to shit, I’m going to get out of dodge.
Maurice: Moving on to resource companies. Who has your attention now and going forward into 2019?
Bob: Miramont Resources Corp. (MONT:CSE; MRRMF:OTC) is absolutely one. They’ve just received a drill permit. It’s a Quinton Hennigh company. They have two world-class projects in Peru. They will start drilling in January. I expect to start seeing results in February or March. I think they will be world-class results. I think the market will recognize it. The company has gone from 13 cents, 10 days ago, to 26 cents (CAD) now, and that gives a market cap of about CA$13 million. Could they be CA$150 million in six months or a year? Absolutely. They’ve got plenty of money. They’ve got CA$6 million in the bank, so there’s no risk whatsoever with them going out, doing a big financing; and I expect to see solid, good results in the next two to three months.
The second company would be Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB). Same story there. You and I were at Irving. We looked at CA$25,000/ton rock. We looked at the sinter. They will start drilling the sinter in January, and you can expect to see results six weeks, two months later. And, when you drill through $25,000 rock, you get a meter or two, and you’re going to have a stock that’s explosive. Irving was $1.10 a share two weeks ago, and it’s $1.80 right now, and it’s still cheap.
Maurice: How about Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). That’s one of our favorites as well.
Bob: Who?
Maurice: Novo Resources.
Bob: I’ve never heard of them. I’m going to be a little bit cagey here. I mean, that’s a terrible thing for me to say. Novo is, literally, having their AGM as you’re doing this recording, and I don’t want to say anything about Novo, until I hear the results of the AGM. But, I was there a month ago, Nova has an extraordinary future ahead of them, good management, tons of money in the bank. Quinton Hennigh is an absolute genius. Everybody hates the stock now, and how many times do I need to say, “You need to buy things when everybody hates them, and you need to sell them when everybody loves them.” And, you got all these people at the chat boards whining and crying, “Oh my God, Novo’s at a new low,” and I’m thinking, “Why did they not see that as an opportunity?”
Platinum hit $790 an ounce today. Why would you whine about that? That’s an opportunity. My God, it hasn’t been $790 an ounce in many, many years. It is so cheap. Buy stuff when it’s cheap, sell it when it’s expensive. It is not complicated.
Maurice: You’ll learn that in a book written by Bob Moriarty entitled “Nobody Knows Anything.” Bob, we’ll get to that in just a second. Before we leave here, full disclosure, Miramont Resources, Irving Resources, and Novo Resources, all three are sponsors of both 321 Gold and Proven and Probable, and by the way, unbeknownst to you, Bob, I will be interviewing Bill Pincus, CEO for Miramont Resources, this coming Friday.
Bob: Good. That’s going to be a must listen to. I talked to him a few days ago. I was nibbling at the shares at 13 and 14 cents, and, obviously, word was getting out because the stock, literally, has doubled in 10 days. They have a brilliant future ahead of them. Peru can be a difficult country to deal with. Bill Pincus has it totally under control. They should have been drilling six months ago, and they didn’t, and it’s no big deal, and they will be drilling shortly.
Maurice: Moving on to physical precious metals. You wrote a piece, recently, which is a must read, entitled “These 113 Analyst Believe Gold Will Go Parabolic to Three Thousand or More.” What compelled you to write this piece, and why now?
Bob: Well, here’s what’s very funny. I didn’t write the piece. The piece came out in 2011, okay. Now, I had been contacted in 2011, and the woman who wrote the piece wanted to know my prediction for gold, and I said, “Well, I’ll be happy to give you a prediction for gold.” “Tell me what the dollars going to be.” And she said, “Well, I have no idea what it’s going to be.” And I said, “Well, how can I tell you what gold’s going to be if you can’t tell me what the dollar’s going to be, because gold is the inverse of the dollar now.” We forget this, and we shouldn’t because it’s so basic. Anytime you’re talking about the price of any commodity, you’re talking about the commodity, and you’re talking about the currency it’s quoted in. Now, the funny thing is, gold had been up 12 years in a row, and everybody in the industry wanted to come out with an outrageous price.
Do you happen to know what the price of copper is today?
Maurice: $2.85 per pound.
Bob: From a mathematical point of view, if you wanted to predict the price of copper six months from now, from a mathematical point of view, what price should you predict? Because everything has to do with probability and permutations. If you know the price of copper, it’s $2.85 today, and you want to predict the price from six months from now, mathematically speaking, ignore your opinion, what price should you predict? $2.85.
Maurice: And that being because?
Bob: Everything goes up. We know that. And, everything goes down. And that fact of the matter is, all prices wobble up and down, and we forget that because we think, “I really like gold. I really like silver. I really like platinum. Therefore, it should go up every single day.” Well, markets don’t work that way. “Well, if it doesn’t go up every single day, it’s proof somebody’s manipulating it.” Well, actually, everything’s manipulated, so it’s not proof of anything.
What we forget that all of this variation in price has nothing to do with the commodity, and everything to do with the value of the dollar.When you include inflation, the value of the dollar changes every single day. Between noon today and noon tomorrow, the value of the U.S. dollar will change 10,000 times. Now, that’s actually insane from an economist point of view. If you’re a Martian and you came to earth and you found out the currency changed its value 10,000 times in a day, the Martian would say, “You know, you guys are all nuts down here,” and he would be correct.
But, in 2011 everybody watched gold go up 12 years in a row, so they thought, “well, mathematically, if it’s gone up 12 years in a row, that means it’s going to go up another 12 years in a row.” And they forgot things go up and things go down. It’s very funny because you look at those predictions seven years later, and we’ve got $1,200 and something gold, and you realize that people were being silly in their predictions. There are no experts, and there are no gurus, period.
Maurice: But, Bob, there is a way to navigate and make the value proposition, actually, work better for you, and I want to ask you this here. So, regarding physical precious metals, can you share with us, and you already have, but tell us why? What are you buying right now? You’re not buying gold.
Bob: No, as a matter of fact I sold gold here recently. This goes back to my basic thesis, and it’s the heart of the book, and it’s very important to understand. You buy things when they’re cheap and you sell them when they’re expensive. The ratio of silver and gold has varied from about 16:1, to 101:1 over the last hundred years. For 50 of those years, the price of gold was fixed. And for 50 of those years, the price gold and silver was variable. So, that should give you a good idea of the range. Now, the average over the last 100 years been 54:1; silver has gotten very cheap, else it has, literally in the last week where it was 86:1, and you go back to 2011, it got down to about 32:1 where silver was very expensive.
Everybody makes investing way too complicated because the first mistake they make is they listen to people who feed their fantasies. Okay. Would you vote for an honest politician?
Maurice: My answer is, I would.
Bob: If you voted for an honest politician, how many votes would he get in total?
Maurice: It sounds like probably would just be myself.
Bob: That’s correct, one vote. Politicians, television preachers and most financial analyst make their money, get their power, by feeding people’s fantasies. They tell people what they want to hear, and you’re always comfortable. If you got a certain belief set, if you believe that Catholics are horrible people, you want to go into a Baptist Church and listen to them talk about Catholics. If you think Muslims are horrible people, you want to go into a Catholic church and hear them talk about Muslims. We have prejudices. We have biases, and we listen to those people who feed those biases. I listen to TV preachers, and I’m sitting here thinking, how the hell could anybody listen to that unadulterated horse shit and send their money to these fools. But, the fools are the people in the audience throwing hundred dollar bills at people for telling what they want to hear.
And when you look at the state of politics in the United States, my God, it’s embarrassing. I mean, I can tell you because I spend a lot of time outside the United States, the rest of the world’s looking at the American political system saying, “You know, those people have gone off the deep end. They’re all crazy,” and they would be right.
Maurice: You know, what’s very important for our audience to understand here, is again, you didn’t say that silver is going to a certain numerical value. You just looked at the ratios between that and gold. Completely different perspective. I can share prior to me entering the public domain, I would listen to someone that would feed my paradigm, but silver is being manipulated, at the time, this is me 10 years ago entering the precious metals industry, and that silver’s going to hit this parabolic number of $150 to $200 any day now because of the Federal Reserve. And, that was my reasoning for purchasing physical silver, and then, I had the opportunity to be introduced to the likes of your work, and I shifted that paradigm, and took a more responsible approach, and I appreciate you so much sharing that. It’s a lesson that we all can learn from, and again, to learn more about lessons like that, the book that you’re referring to is “Nobody Know Anything.”
Bob: But, it’s as simple as you should buy what’s cheap, and you should sell what’s dear. Right now, silver’s cheap, gold’s expensive. Now, I’m not predicting $50,0000 silver. I’m not predicting $200 gold. I’m not predicting anything. I’m taking facts. The ratio has been 16:1, to 101:1, over 100 years. That should be the parameters. The average has been 54:1. Silver has spent less than 1% of the time over the last 100 years above 86:1. All investing is based on mathematics at its heart. A mathematical point of view, the chances that you’re profiting by buying silver and selling gold is 99%, and those are good odds.
Now, do I give a damn if silver goes down tomorrow? No. Okay. Same thing with platinum. My God, platinum’s the cheapest relative to gold it’s ever been in history. Yesterday, it was $460 an ounce cheaper than gold, yet for most of history since it was discovered in the 18th century, platinum’s had a premium to gold. So, buy platinum and sit.
Maurice: That’s exactly what we’re doing. We’re purchasing, very aggressively, both of those metals. May I ask you this as well? When you’re looking at buying your silver, are you looking at 100 ounce bars? Do you like government minted coins? Do you like rounds, junk silver? Tell us what you’re buying.
Bob: It’s funny you say that. I am cheap. Okay. Silver is silver is silver, and somebody contacted me and he had a good deal on 100 ounce bars. So, I bought 100 ounce bars. But, I would buy whatever is cheap. It’s all the same silver.
Maurice: Much agreed. I know some people have a certain perspective on getting government minted coins versus rounds, which are private minted coins, and I didn’t know if you had a particular interest in either one of those two.
Bob: It’s probably a good idea to have a variation. You can buy a tank of gas with a one ounce silver coin, but you can’t buy a tank of gas with a 100 ounce silver bar.
Maurice: True indeed. Bob, let’s shift our focus a little bit on something you and I both like to discuss as well, and let’s compare precious metals now with a different type of coin, bitcoin.
Bob: No. No. No. No. No. You mispronounced that word.
Maurice: I certainly did. Please share with the audience. What is the appropriate name for this.
Bob: Bitcon.
Maurice: And how rare is Bitcon, by the way.
Bob: How rare is salt water in the ocean.
Maurice: Well, I would say there’s a number of variations. Could you share with us, how many variations are there of Bitcon?
Bob: 2,513, roughly.
Maurice: And, isn’t that part of one of the big marketing aspects of Bitcon is that it’s supposed to be rare?
Bob: That’s not rare. You can’t have 2,513 variations and be considered rare.
Maurice: A year ago we had you on our show, and I believe at that time, we were looking at a $13,000 to $14,000 in U.S. currency on Bitcon, and today, we’re looking at $3,400. Is that correct? And, your analysis at that time, it was going to go its intrinsic value of zero. So, it appears to be heading that direction.
Bob: Allow me to ask you a question, because actually, we’re lower than $3,400 right now. If people would take the knowledge that they have, and their common sense, and some logic, they wouldn’t need to listen to experts. They wouldn’t need to listen to gurus. What is the value of a 99 cent stuffed toy?
Maurice: At the current market price, then it would be 99 cents.
Bob: Okay. What is the value of a Beanie Baby?
Maurice: Assuming that is the same toy that you’re referring to, then I would say 99 cents.
Bob: Everything, eventually, returns to its real value. Beanie Babies were going for thousands of dollars because, supposedly, they were rare, and it was this everybody wanted to jump in and everybody wanted to collect, and they thought they were valuable because they were rare. They were 99 cent stuffed toys.
Bob’s Wife: And we collected them.
Bob: That’s my wife and Mr. Brown.
Bob’s Wife: We got to them.
Maurice: And, introducing into the conversation, Bob, who do you have there with you?
Bob: Oh, that’s my wife, Mr. Brown, her pet stuffed sheep.
Maurice: And, Mr. Brown, is he valued at 99 cents as well?
Bob: No. He’s valued a lot higher than that. If my wife had the choice to get rid of me or get rid of Mr. Brown, it’s like no choice at all. Let’s go back to Bitcon and Beanie Babies. Which of those have value?
Maurice: Assuming for a child, they have some type of intrinsic value, but to someone purchasing it, I guess the current market price.
Bob: Well, no. Current market price could be absolutely incorrect.
Maurice: That’s correct because the value at one time was significantly higher.
Bob: Correct.
Maurice: Bob, you make a good point there.
Bob: The strange thing is, when Beanie Babies were selling for thousands of dollars, it was because they were mispriced because everybody was chasing the fear of missing out. You’ve must have Beanie Babies was the narrative at the time. The key here is, at the very worst, Beanie Babies still are 79 cent, or 89 cent, or 99 cent toys. So, let’s take that over to Bitcon and the 2,513 variations. What real value did they have? What intrinsic value is there there?
Maurice: I don’t see one.
Bob: Well, yeah. I see one. I know exactly what the real value is.
Maurice: And what is that?
Bob: You can too if you think about it.
Maurice: Alright, please share with us, sir.
Bob: Zero.
Maurice: That was my point.
Bob: You said you didn’t see it.
Maurice: My apologies, I was inferring, zero.
Bob: I went through and I re-read some of what I was saying last December. I did conducted a number of interviews because I was totally convinced Bitcon was at the top. I sought every measure that you would use to call the top of a bubble in December, but there were only 1,300 or 1,400 variations of Bitcon a year ago. That’s almost doubled, yet the price of Bitcon has gone from $20,000 to $3,400. Bitcon gone down over 80%, but is there anything preventing it from going to zero? Actually, the only thing preventing it is the number of fools in the world who still believe there is some value there.
There is no value there. There is nothing now. There was nothing a year ago, and there’s going to be nothing 10 years from now. Bitcon doesn’t have the value of a Beanie Baby, and this electronic Beanie Baby made of bits and bytes of no particular value, and the mere fact that it’s the biggest bubble in world history, okay, should tell you something. But, over $700 billion disappeared into Bitcon heaven.
Maurice: It’s important to note, as you were speaking here, I’m thinking, Bitcon, and a con artist tries to emulate and fool. When I look at every image I ever see of Bitcon, they make it look like a gold coin.
Bob: They make it look like a coin and the funny thing is, there weren’t any coins. There wasn’t anything.
Maurice: Absolutely. And, then they also use mining terms, like you’re mining bitcoin. That’s what imposter does. An imposter, as we’re referencing it appropriately here, Bitcon, the name fits very well.
Bob: But, here’s what really funny. There were two arguments. One is, that it’s some kind of electronic money, which it’s not. And the other is that it’s rare, and it’s certainly not rare, not with 2,513 variations of it. People are starting to wake up. But, it has been fraud from the get go. It was a bubble. The current bubble right now is marijuana. And, I’ll go you one better, and you’re going to have to guess at the answer here. What’s going to be the big bubble in 2019, or 2020, and 2021?
Maurice: Big bubble. You’re putting me on the spot here.
Bob: Damn straight I am.
Maurice: Let me ask you this then. Are we referring to a natural resource here, by chance?
Bob: Yep.
Maurice: For some reason, my initial instinct is saying lithium.
Bob: It’s already been on the bubble.
Maurice: Alright. If not lithium…
Bob: This new bubble is absolutely the equivalent of Bitcon and marijuana. We’re going to have a bubble that’s just going to go sky high. Everybody’s going to jump into, everybody’s going to think it’s the greatest thing in the world, and everybody’s going to buy it, and they’re going to drive the price up right to the root. What is it?
Maurice: Then, if it’s not lithium, then how about vanadium?
Bob: How about gold?
Maurice: Gold. Interesting. I was thinking more of on the base metals side here. Okay.
Bob: Here’s what’s crazy. Can you name a commodity that is incapable of going in a bubble?
Maurice: No, sir.
Bob: We’ve had stock market bubbles. We’ve had real estate market bubbles. We’ve had Bitcon bubbles. We’ve had marijuana bubbles. We had a silver bubble in 1980. Gold is going to have a bubble. Period. But, the purpose for me writing the book “Nobody Knows Anything” was to allow people to learn that they’re capable of thinking for themselves. There is going to come a time when gold’s expensive, silver’s expensive, platinum’s expensive, palladium’s expensive, rhodium’s expensive, and what do you do when they all get expensive?
Maurice: You should sell.
Bob: You better sell.
Maurice: Bob, as always, thank you for sharing your insights. Last question. What did I forget to ask?
Bob: You forgot to ask me about the book, “How to Invest In Natural Resource Companies.”
Maurice: Absolutely. What can you share with us?
Bob: What book?
Wife: What book?
Maurice: The book on “How to Invest In Natural Resource Companies.”
Bob: I think that’s a great idea. I think somebody really needs to dig in, get to work and start writing the book.
Maurice: Can you give us an update on that person who might be writing that book?
Bob: You’re coming in really broken. I’m having a hard time hearing you.
Maurice: Bob, you’ve got fill us in here. You’ve shared with us over a year ago that you’ll be writing a book, and a number of speculators have been waiting.
Bob: I can see your lips move, but I can’t hear anything you’re saying.
Maurice: For audience members, he’s pulling my leg here, and pulling your leg as well.
Bob: I have all the intentions in the world. I’ve started the book. I will do it.
Maurice: And you want to leave it at that? How about for 2019? Is that on the outlook there? Is that something on the horizon that. . .
Bob: Yeah. Yeah. 2019’s good. It give me a lot of time to come up with new excuses.
Maurice: Okay. Well, before we leave here, I reference Bob Moriarty’s two books, “The Art of Peace,” and “Nobody Knows Anything.” You can order your copy under our education tab. Proven and Probable does not receive any financial for selling or advertising. But, we see these books as a must have for your library. We’ve benefited financially from applying the axioms in the book. Bob, for someone listening who wants to get more information on your work, please share the websites.
Bob: 321 Gold, and 321 Energy. They’re free sites, and they are valuable.
Maurice: And, if you’re looking to sell or buy physical precious metals, we welcome a conversation. Please email me at maurice@milesfranklin.com or call me directly at 919-274-5680. And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. If you would like to have a discussion regarding precious metals, please contact us at maurice@milesfranklin.com.
Bob Moriarty of 321 Gold, and 321Energy.com, thank you for joining us today on Proven and Probable.
Speaker 4: Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com. The information presented on Proven and Probable is provided for educational and informational purposes only without any expressed or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information is not intended to be and does not constitute financial, investment, or trading advice, or any other advice. You should not make any financial, investment, or trading decision based on any of the information presented without first undertaking independent due diligence and consultation with a professional broker of competent financial advisor.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Disclosure: 

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources are sponsors of 321 Gold and/or 321 Energy.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Irving Resources and Novo Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
4) 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.
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The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Categories
Base Metals Exclusive Interviews Precious Metals

JAYANT BHANDARI | Trump: Why I am Increasingly a Fan, and about Resource Stocks

Trump: Why I am Increasingly a Fan

ValOro Resources (VRO), etc.

As time has gone by I have grown increasing respectful of Trump. Not only he is doing what he said he would, but he is also among those rare people who understand the problems that the West faces. Trump is having to deal with the massive problems that the earlier—short-terministic, populist and vision-less—regimes left behind. But people’s failure to put issues into perspective means that it is Trump who gets the blame. That is why I don’t like democracy, for most people use soundbite-level, isolated information—mostly rationalizations—to reach conclusions. Or more accurately they look for justifications for their emotions.
Despite all its flaws, the USA is still among the best places in the world.
As a child, I often dreamt of emigrating to America. America’s military-industrial complex rightly has a bad name. But, alas, if I had a switch to get rid of it, I would not use it. Without US interference, the world would be an extremely unstable place. For example, had the USA not interfered, Saudi Arabia, Iran, Iraq, Brazil, Libya, etc. would have all had nuclear weapons. Perhaps humanity would have seized to exist. Without US interference, the Third World tyrannies, tribal-warfare and massacres would have been much worse, which would have rightly kept their population-number under control, but also refugees would have flooded the West:

On investments…
Linked is a recent discussion with Cory Fleck on how I go about investing in the mining sector. In the same talk I mention a few stocks.
Here are some more that I like:

  • Novo Resources (NVO; C$1.95): At the current price, the market likely gives NVO value only for its cash and Beatons Creek project. The upside from conglomerate deposits is available mostly for free.
  • Altus Strategies (ALTS; C$0.045): I spent the last month in the UK, including visiting with ALTS management and some of its key shareholders. I am concerned about their G&A expenses, which have been too high for my comfort. But for now, the market capitalization is comparable to the share ownership that ALTS will eventually have of Canyon Resources, an ASX-listed company.
  • De Grey Mining (DEG; A$0.12): The situation here is similar to that of NVO, although I don’t know their management much. Their current market capitalization likely gives zero value to the conglomerate areas.
  • Amarillo Gold (AGC; C$0.20): AGC over the last few months has cleaned up their balance sheet by getting rid of the debt they had, sold a royalty to Royal Gold for a very good price, and have done a lot of work on the project. They currently have six drill-rigs at the project, drilling 15,000 meters. They expect new resources by the end of January 2019. Feasibility and basic engineering are expected in August 2019. The market is rightly worried about the country risk. And my superficial look at the latest financials tells me that their G&A expenses have gone up significantly. I hope they will be able to control it going forward.
  • ValOro Resources (VRO: C$0.11): VRO is being acquired. There is a nice arbitrage upside.
  • FPX Nickel (FPX; C$0.08): I am invested in this company not only because of the value I see, which might improve significantly when they have optimized the metallurgy, but also because their CEO, Martin Turenne, is one of the smartest young people I have known in the industry. He understands the macro issues driving the market and is a delight to discuss those issues with, which when the time comes, will enable him to look for the right majors to do off-take agreements with or to sell the project to.

On other matters…
Videos of last year’s Capitalism & Morality are now available. They are linked here.
The next Capitalism & Morality will be held on 3rd August 2019. Please register using the Paypal button on this page, if you haven’t already done so. One-third of the seats are already gone, and being a capitalist I do increase the ticket price—very substantially—as we get closer to the event.
Warm regards,

Jayant Bhandari

Associate: Rajni Bala

Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.

Categories
Precious Metals

ANACONDA MINING files updated technical report for the Goldboro Gold Project

TORONTO , Dec. 10, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (ANX.TO) (ANXGF) is pleased to announce the filing of the updated technical report prepared in accordance with National Instrument 43-101 regarding an update to the Mineral Resource Estimate (“Mineral Resource”) for its 100%-owned Goldboro Gold Project (“Goldboro”, or the “Project”) in Nova Scotia, Canada .

The technical report is available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.anacondamining.com.

“The filing of the technical report represents the culmination of significant milestones to date in the development of the Goldboro Gold Project. Just over a year and a half ago, we acquired the project at a compelling valuation and in a short period of time, we have produced a positive preliminary economic assessment, registered the project for environmental permitting, initiated a 10,000-tonne bulk sample, and drilled a further 12,000 metres which increased the deposit to over 600,000 ounces of Measured and Indicated Resources and over 450,000 ounces of Inferred Resources. We look forward to further progress in 2019 as we begin a feasibility study and continue to advance all required permits with the aim of beginning construction in 2020.”

~ Dustin Angelo , President and CEO

The technical report, entitled “Anaconda Mining Inc., Goldboro Project Mineral Resource Update and Preliminary Economic Assessment” and which is dated October 25, 2018 , was authored by independent qualified persons Joanne Robinson , P.Eng., Garth Liukko , P.Eng., and Sebastian Bertelegni , P.Eng., all of WSP Canada Inc., J. Dean Thibault , P.Eng., of Thibault & Associates Inc., and non-independent qualified person Gordana Slepcev, P.Eng., of Anaconda.

Highlights of the Goldboro Gold Project Mineral Resource Update* (effective July 19, 2018 ):

Category**

Tonnes

(‘000)

Grade

(g/t Au)

Ounces

(Rounded)

% Change in Grade
from Dec 2017***

% Change in Ounces
from Dec 2017***

Measured

1,611.8

4.23

219,300

+ 42%

+ 447%

Indicated

2,166.2

5.50

383,400

+ 18%

(21%)

Measured and Indicated

3,778.0

4.96

602,700

+11%

+15%

Inferred

2,126.4

6.63

453,200

+ 56%

+ 30%

* See Mineral Resource Estimate Notes below.
** Combined Open Pit and Underground Mineral Resources. Open Pit Mineral Resource based on a 0.50 g/t Au cut-off grade; Underground Mineral Resource based on 2.00 g/t Au cut-off grade.
*** Refer to the Company’s current technical report or technical report entitled “Goldboro Project Preliminary Economic Assessment” dated March 2, 2018 for further details (the “Previous Report“).

Goldboro Preliminary Economic Assessment

Anaconda is also pleased to report updated after-tax economics with respect to the Preliminary Economic Assessment study (“PEA”) on Goldboro . The change in after-tax economics reflects the confirmation with the Nova Scotia Department of Natural Resources of the application of a mineral royalty tax of a 1% net smelter return on gold production, which supersedes the higher mineral tax applied in the Previous Report. All dollar amounts are expressed in Canadian dollars unless otherwise noted.

  • With the update to the mineral royalty tax and a gold price of $1,550 per ounce ( ~US$1,200 1 per ounce), after-tax NPV (5%) improved to $88 million with an after-tax IRR of 29.3%, resulting in an after-tax payback period of 3.3 years;
  • At a $1,600 gold price per ounce ( ~US$1,230 1 per ounce), the NPV (5%) increases to $99 million and an after-tax IRR of 32.0% and a payback period of 3.1 years;
  • The Project has pre-production capital expenditures of $47 million to establish the proposed initial open pit operations prior to underground development and production;
  • Life of mine (“LOM”) of 8.8 years with gold production of 375,900 ounces and LOM average operating cash cost2 of $654 per ounce ( ~US$505 1 per ounce) and all-in sustaining cash cost2 of $797 per ounce ( ~US$615 1 per ounce).

1 Assumes a 0.77 USD : CAD exchange rate.
2 See Non-IFRS Measures below.

The updated PEA only reflects the change in the mineral royalty tax and does not incorporate increases to the Mineral Resource as at July 19, 2018 . The updated Mineral Resource does not affect the validity or currency of the PEA, which continues to use the Mineral Resource as reported in the Previous Report. With the increase in Mineral Resources announced today, Anaconda believes there is the potential for increased Project mine life and higher potential gold production due to the increase in grade, which will be assessed in future studies.

The PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Thus, there is no certainty that the results stated in the PEA will be realized. Actual results may vary, perhaps materially. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

 Mineral Resource Estimate Notes

  1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards (2014). Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
  2. Open pit Mineral Resources are reported at a cut-off grade of 0.5 g/t gold that is based on a gold price of CAD$1,550 /oz. and a gold processing recovery factor of 95%.
  3. Underground Mineral Resource is reported at a cut-off grade of 2.0 g/t gold that is based on a gold price of CAD$1,550 /oz. and a gold processing recovery factor of 95%.
  4. Appropriate mining costs, processing costs, metal recoveries, and inter ramp pit slope angles were used by WSP to generate the pit shell.
  5. Appropriate mining costs, processing costs, metal recoveries and stope dimensions were used by WSP to generate the potential underground resource.
  6. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  7. Tonnage and grade measurements are in metric units. Contained gold ounces are in troy ounces.
  8. Contributing assay composites were capped at 80/g/t Au.
  9. A density factor of 2.7g/cm3 was applied to all blocks.

Qualified Persons

Gordana Slepcev, P. Eng., Chief Operating Officer, Anaconda, is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

A version of this news release will be available in French on Anaconda’s website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA MINING INC.

Anaconda Mining is a TSX-listed gold mining, development, and exploration company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia . The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland , comprised of the Stog’er Tight open pit mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and 7-million tonne capacity tailings facility, and approximately 9,150 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Gold Project in Nova Scotia , a high-grade Mineral Resource, subject of a 2018 a preliminary economic assessment which demonstrates a strong project economics.

The Company also has a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick .

NON-IFRS MEASURES

Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Operating Cash Costs per Ounce of Gold – Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation and rehabilitation costs.

All-In Sustaining Costs per Ounce of Gold – Anaconda has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013 . The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.

The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price, operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant and the Company uses the average foreign exchange rate for the period.

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, disclosure regarding the economics and project parameters presented in the PEA, including, without limitation, IRR, all-in sustaining costs, NPV and other costs and economic information, possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future development and exploration activities on the Company’s projects; success of development and exploration activities; permitting time lines and requirements; time lines for further studies; planned exploration and development of properties and the results thereof; and planned expenditures and budgets and the execution thereof. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda’s annual information form for the fiscal year ended December 31, 2017 , available on www.sedar.com

Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

SOURCE Anaconda Mining Inc.

View original content: http://www.newswire.ca/en/releases/archive/December2018/10/c5373.html

Categories
Base Metals Precious Metals Project Generators

MIRASOL RESOURCES | Mirasol Signs a Heads of Agreement with Newcrest Mining for the Gorbea Gold Projects in Chile and Announces Termination of the Zeus Agreement

VANCOUVER , Dec. 10, 2018 /CNW/ – Mirasol Resources Ltd. (TSX-V: MRZ, OTCPK: MRZLF) (the “Company” or “Mirasol“) is pleased to report that it has entered into  a non-binding heads of agreement (the “HoA“) with Newcrest International Pty Limited, a wholly owned subsidiary of Newcrest Mining Limited (“NCM“), for an Option to Farm-in on the Gorbea High-Sulfidation Epithermal (HSE) gold projects (the “Project“) in Chile , and is terminating the previously announced (news release February 26, 2018 ) NCM option agreement on the Zeus Project (Figure 1).

The Gorbea HoA is subject to NCM completing its due diligence review of the claims and the parties executing a formal option agreement (the “Agreement“) on or before January 15, 2019 or such later date as may be agreed. The key terms of the Agreement having been settled, the parties will execute the final Agreement once due diligence has been completed. Mirasol has granted an exclusivity period to NCM to complete these conditions.

The Gorbea Project comprises a package of projects totaling 26,684 ha, including the Atlas Au+Ag and the Titan Au (Cu) projects, located in the Mio-Pliocene age mineral belt of northern Chile.  The Gorbea properties were subject to a previous joint venture that was terminated in April 2018 , after the partner had incurred exploration expenditures in excess of US$ 8 million. The exploration identified a significant body of HSE gold mineralization at the Atlas project, which returned a drill intercept of 114 m grading 1.07 g/t Au, including 36 m grading 2.49 g/t Au (news release September 11, 2017 ). Mirasol is undertaking an integrated analysis of the extensive Atlas database and will provide a technical update on the project in the near term.

Option to Farm-in Agreement:

Under the terms of the HoA, NCM will have the right to acquire, in multiple stages, up to 75% of the Gorbea Project by completing a series of exploration and development milestones and making staged option payments to Mirasol. NCM has committed to spend a minimum of US$4 million and complete a minimum of 3,000 m of drilling over an initial 18-month period, subject to drill permitting timelines. NCM has assembled a Chilean based exploration team with significant HSE exploration experience and will operate the Gorbea exploration program.

Stephen Nano , CEO of Mirasol, stated that “we are pleased to again be partnering with the Newcrest team to explore some of our prospective Mio-Pliocene belt projects for district scale gold deposits.  Newcrest has allocated a combined US$7.3 million in separate agreements, for the exploration of Mirasol’s Gorbea and Altazor projects over the next 12 to 18 months.  We are working with Newcrest to advance the permitting process for the Atlas project in the Gorbea package, with the objective of drilling during the southern hemisphere summer.”

Terms:

Option phase:

  • A US$100,000 cash payment upon signing the Agreement;
  • NCM has a minimum commitment to spend US$4 million and drill minimum of 3000m in the first 18-month exploration program;
  • NCM will operate the project and will receive a 5% management fee; and
  • At the end of the option phase, NCM will have the right to exercise the farm-in phase of the Agreement.

Farm-in phase:

  • Stage 1: If NCM elects to exercise the option to farm-in, NCM will make a cash payment to Mirasol of US$500,000 , and will have the right to earn 51% of the Project over a 4.5-year period (total 6 years) by spending an additional US$15 million (total US$19 million ), which includes a minimum drilling commitment of 6,000 m on the Project to be completed within the first 2 years;
  • Stage 2: If NCM elects to proceed to Stage 2 of the farm-in, it will make a cash payment to Mirasol of US$650,000 and have the right to earn 65% of the Project over an additional 1-year period (total 7 years), by funding the delivery of a positive preliminary economic assessment, in accordance with NI 43-101 on a resource of not less than 1,000,000 ounces of gold at a cut-off grade of 0.30 grams per tonne (g/t);
  • Stage 3: If NCM elects to proceed to Stage 3 of the farm-in, it will have the right to earn 75% of the Project over an additional 2-year period (total 9 years) by funding the lesser of either: (i) additional expenditures after the completion of Stage 2 of US$100 million ; or (ii) the delivery of a positive bankable1 Feasibility Study, in accordance with NI 43-101;
  • Stage 4: After completion of Stage 3, Mirasol can elect to: (i) contribute its proportionate share (25%) of further development expenditures, (ii) exercise a one-time equity conversion option to convert up to 10% of its equity into a NSR royalty at a rate of 2.5% equity per 0.5% NSR royalty (max 2% NSR royalty) and then contribute funding to advance the Company’s remaining project equity interest; or (iii) dilute. The rate of dilution royalty for Mirasol (up to 2% and triggered upon dilution of its interest to 10%) will be adjusted based on the percentage royalty acquired as part of the equity conversion option. NCM will hold a 0.5% NSR buyback right at fair market value exercisable on the conversion royalty or the dilution royalty.

After NCM has met the minimum commitment in the Option phase, NCM may terminate at any time without liability. In the event that NCM should complete Stage 1, but elect not to proceed to Stage 2, then NCM’s 51% interest shall be adjusted to a 49% interest. In the event that NCM completes Stage 2, but elects not to proceed to Stage 3, then NCM’s 65% interest shall be adjusted to a 60% interest and the parties may agree to halt further exploration or continue and contribute in proportion to their interests or be diluted.

The HoA also contains other customary terms including extension rights to increase the duration of each stage 1, 2 or 3 for cash payments to Mirasol and pre-emptive rights provisions should either party elect to sell its interest in the Project.

Early Termination of the Zeus Agreement:

The companies have also agreed to the early termination of the Zeus Option to Farm-in Agreement that was previously announced on February 26, 2018 . Under the terms of the Zeus agreement, NCM had a minimum spend commitment of US$1.5 million in the first 18-month exploration program. The balance of the minimum commitment expenditures for Zeus that have not yet been incurred, will be applied towards the $4 million initial commitment for the Gorbea Project. NCM has also agreed to a US$200,000 early termination payment to Mirasol. Upon termination, NCM will have no retained rights in the Zeus project.

Mirasol wishes to thank NCM for its investment that has advanced exploration of the Zeus project.  Mirasol will report the exploration results from last season’s Zeus exploration program shortly. Mirasol has initiated the business development process to identify a new joint venture partner to continue exploration at the Zeus project during the 2019 southern hemisphere summer season. Mirasol maintains the view that Zeus is a prospective, underexplored, Au+Ag project located in prospective geological setting, 43km East of the Goldfields Salares Norte HSE project2 (of 3.7 Moz Au at 4.89 g/t Au and 49.5 Moz Ag contained within 23.3 Mt) in the Mio-Pliocene belt of Northern Chile .

About Newcrest Mining Limited

Newcrest is one of the world’s largest gold mining companies, operating five mines in Australia , the Asia – Pacific and Africa regions.  Newcrest has extensive experience developing and operating successful underground and open pit mines in culturally and geographically diverse environments. Newcrest seeks to identify and secure large mineral districts, or provinces, in order to establish long term mining operations.

About Mirasol Resources Ltd

Mirasol is a leading project generation company focused upon the discovery, and development of economic precious metal and copper deposits via a hybrid Joint Venture and self funded drilling business model.  Strategic Joint Ventures with major precious metal producers have enabled Mirasol to maintain a tight share structure while advancing its priority projects that are focused in high-potential regions of Chile and Argentina.  Mirasol employs an integrated generative and on-ground exploration approach, combining leading-edge technologies and with experienced exploration geoscientists to maximize the potential for discovery.  Mirasol is in a strong financial position and has a significant portfolio of exploration projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age Au+Ag district of Santa Cruz Province Argentina .

Stephen Nano , President and CEO of Mirasol, has approved the technical content of this news release. Mr Nano is a Chartered 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 release.

1

“Bankable” is defined as suitable to be submitted to a recognized financial institution as a basis for lending funds for the development of a mine

2

Gold Fields. (2017). Integrated Annual Report 2017.

SOURCE Mirasol Resources Ltd.

View original content: http://www.newswire.ca/en/releases/archive/December2018/10/c5011.html

Categories
Base Metals

FISSION 3.0 Targets Shallow, High-Grade Prospects with 18 Hole Program

TSX VENTURE SYMBOL: FUU 

Drilling to Commence on Wales Lake in December

KELOWNA, BC , Dec. 11, 2018 /CNW/ – FISSION 3.0 CORP. (“Fission 3” or “the Company“) is pleased to announce its Athabasca Basin winter exploration drilling program. This winter, the company plans to drill approximately 4,400 meters in 18 holes on 4 of its high-priority projects, prospective for hosting shallow, high-grade mineralization. The projects are located in 3 major regional districts of the Athabasca Basin: the emerging PLS area uranium camp in the southwest, the historic Key Lake area mining camp in the southeast and also the northern area of the Athabasca Basin. The program will shortly commence with two holes on the Wales Lake property located in the PLS area, where surveys have identified high-priority targets.

Fission 3.0 Corp. (CNW Group/Fission 3.0 Corp.)

View photos

 

Fission 3.0 Corp. (CNW Group/Fission 3.0 Corp.)

News Highlights

  • Multi-project winter drill program will focus on four key projects in the Athabasca Basin: Wales Lake, PLN, Key Lake and Cree Bay
  • Successful surveys and ground-prospecting have generated high-priority targets on each project
  • Within the Athabasca Basin region, the company’s properties are all located in areas that are prospective for near-surface uranium mineralization
  • Program will commence in December 2018 at Wales Lake in the PLS Area – a district proven to host major, high-grade uranium deposits
  • Winter drilling will include:

Ross McElroy , COO, and Chief Geologist for Fission, commented,

“Having recently completed an $8M financing, Fission 3 has both the funds and the backing to aggressively explore multiple properties. Our award-winning technical team has built an exceptional portfolio in the Athabasca Basin region that encompasses emerging and historic major uranium mining areas, with a particular focus on the potential to host shallow, high-grade mineralization. This winter will see an exciting start to a strategic and systematic campaign to discover new occurrences of high-grade uranium mineralization on Fission 3’s projects in the Basin.”

Fission 3’s Portfolio Strategy. Within the Athabasca Basin region, the company’s properties are all located in areas that are prospective for near-surface uranium mineralization in both basement and unconformity hosted models. The emphasis for land selection has been on identifying shallow-hosted mineralization potential in conjunction with underlying structural and alteration features associated with appropriate lithologic units, with a focus on being near historic mining districts (such as Beaverlodge / Uranium City in north-western Athabasca Basin region and Key Lake area in the eastern Athabasca Basin region) or emerging major mining districts (such as the south-western Athabasca Basin region). As such, property locations tend to be proximal to the Athabasca Basin margins. Most properties are drill-ready with airborne and some ground geophysics completed in order to quickly vector in to target selection.

Further Details on Projects and Drill Programs

PLS Area

Located in the southwest region of the Athabasca Basin, the PLS area has been the focus of 2 of the most significant recent discoveries of high-grade uranium deposits; Fission Uranium’s Triple R and NexGen Energy’s Arrow deposits. The area is considered the most important, emerging uranium mining district of the Athabasca Basin. Fission 3 has a portfolio of 3 properties covering 83,763 ha in the region surrounding these major deposits; the Patterson Lake North package, including Patterson Lake North “PLN” and Patterson Lake Northeast “PLN-NE” is located immediately to the north of Triple R, while Wales Lake and Clearwater West properties surround the area to the west and south of Triple R.

During the winter season, drilling will focus on PLN and Wales Lake. While the bulk of drilling will focus on high-priority targets at PLN, starting in January 2019 , for logistics and seasonal considerations, the drilling will start off with testing two holes in December on Wales Lake – Block C.

Wales Lake:  The 100% owned Wales Lake property comprises 30 claims in 3 non-contiguous blocks totaling ~35,440 hectares and is accessible by road with primary access from all-weather Highway 955.  Similar to Fission Uranium’s PLS property, Wales Lake occupies the same stratigraphic position within the Clearwater Domain and represents relatively shallow depth basement hosted target areas outside of the margin of the Athabasca Basin. From west to east the 3 blocks are referred to as A, B and C respectively.  Block A is the westernmost and is located ~30km west of Fission Uranium’s flagship high-grade Triple R uranium deposit. It comprises 2 claims in ~2,689 ha.  Block B is located a further ~6km to the east and comprises 4 claims in ~10,549 ha. Block C is the both the eastern-most and southern-most as well as the largest block and is located a further ~7km to the southwest. It comprises 24 claims in ~22,201 ha, and is located ~25km south of the Triple R deposit.

Wales Lake Drilling: The first 2 holes of a planned minimum of 4 holes – 1,000m program for Wales Lake – Block C will be drilled in December, with additional drilling planned for an upcoming summer program.  High-priority drill targets were developed using both airborne and ground geophysics surveys that were conducted by the Company.  A helicopter-borne airborne geophysical versatile time domain electromagnetic “VTEM” survey that was flown in 2017 over Block C identified numerous electromagnetic “EM” conductors in a structurally complex setting.  The survey showed multiple parallel and offset conductors in and along the edge of magnetic low corridors thought to represent either reactivated shear zones and/or pelitic lithologcial corridors, both known to be favorable to hosting uranium mineralization. Importantly a major structural flexure in the geology changes strike from NW-SE to NE-SW trend as is clearly seen in the magnetic survey.  This feature may represent a setting favorable for developing faulting and hydrothermal alteration, which are key components to developing high-grade uranium mineralization. The Triple R deposit, located ~30km to the north of this flexure represents a similar geological setting. A 21 line-km small moving loop ground EM survey was completed in November 2018.  The ground surveys consisted of collecting single lines of TDEM data over each of 12 airborne VTEM targets, to provide the detailed data required to prioritize drill targets.

PLN Package: The PLN package consists of a total of 36,537 ha in 37 mineral claims of which Fission 3 has a 90% interest in 27,408 ha (10 mineral claims) and a 100% interest in an additional recently staked 9,129 ha (27 mineral claims).  Azincourt Energy Corp. holds a 10% interest in 27,408 ha of the PLN property.

The property, just inside the Athabasca Basin, is prospective for high-grade uranium at shallow depth. The property is adjacent to, and part of the same structural corridor as Fission Uranium’s PLS project, host to the Athabasca’s most significant major, shallow-depth, high-grade uranium deposit.  Previous drill results show large scale potential. Drilling in 2014 identified a mineralized corridor associated with the A1 ~700m in strike length, where results returned significant mineralization and pathfinder elements (uranium, boron, copper, nickel and zinc) and included hole PLN14-019 which intercepted 0.5m at 0.047% U3Owithin 6.0m @ 0.012% U3O8.

PLN Drilling: A minimum 8-hole, 3,250m drill program has been approved by the PLN joint venture for 2019.  Five holes in 1,850m will be drilled during the winter program.  All five holes will test the A1 conductor stepping out 25m and 50m north along strike of prospective hole PLN14-019, targeting the same relative positioning of the mineralized pelite.

Key Lake Area

The Key Lake area is an important historic uranium mining district located in the southeast region of the Athabasca Basin. The Key Lake operations is owned by Cameco Corp. (83%) and Orano Canada Inc. (17%) and hosted the former Key Lake mine, which produced 208 million pounds of uranium between 1975 to 1997 and is home to one of the largest uranium mills in the world.  The key Lake mill processed ore from the McArthur River uranium deposit, until Cameco announced in 2018 that McArthur River mining would be suspended indefinitely due to sustained low uranium prices.  The area is considered highly prospective to discover significant new uranium occurrences. Fission’s  Key Lake Area Property portfolio consists of the Ford Lake, Gryphon West, Hobo Lake, Karpinka Lake and Morin Lake properties and totals 24,490 ha in 5 separate, non-contiguous properties. Locally the Key Lake area lies within the Key Lake Shear Zone (“KLSZ”), which is characterized as a broad northeast-southwest trending primarily metasedimentary corridor, and is expressed as a magnetic low in geophysical surveys. Within the KLSZ corridor numerous basement EM conductors are present.

Key Lake Drilling: Winter drilling on the Hobo Lake and Karpinka properties are planned for March. The current plan calls for 1,300m in 9 holes. Several holes will target major structural jogs in conjunction with moderate to high conductivity bright spots and historic gravity lows. These are features commonly associated with uranium mineralization. Other drill holes will test nearby elevated boron and associated potential alteration halo, as well as up-dip historical elevated uranium between graphitic gneiss and granitic contact near bedrock surfaces from historical drilling.

Cree Bay:  The Cree Bay property consists of 18 claims covering 14,080 ha located on the northern edge of the northern Athabasca Basin.  The town of Stoney Rapids is 20km to the north and the historic Nisto uranium mine is 13km to the northeast.  Previous work included a high resolution airborne magnetic and radiometric survey flown in 2015 and a ground DC resistivity survey in 2017.

Cree Bay Drilling:  The current plan calls for 750m in 2 holes. The Cree Bay property is on a nearby parallel trend with the Nisto Deposit where drilling by Forum Energy Metals Corp., (formerly Forum Uranium Corp.) encountered strong clay alteration and 50m faulted offset associated with a major structural lineament thought to trend down through the Cree Bay property.  A fence of two holes will be drilled on the same section targeting basement conductive features and resistivity low from DC resistivity survey conducted in 2017 on the northeastern resistivity grid.  The resistivity low could indicate clay alteration associated with reactivated faults, often the focus of uranium mineralization fluids.  A 9 line-km DC Resistivity ground geophysics survey will be conducted which will extend the existing northern resistivity grid to the southwest.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy , P.Geol. Chief Geologist and COO for Fission 3.0 Corp., a qualified person.

About Fission 3.0 Corp.

Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia . Common Shares are listed on the TSX Venture Exchange under the symbol “FUU.”

ON BEHALF OF THE BOARD                                  

“Ross McElroy”
                                                
Ross McElroy , COO         

Cautionary Statement: Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission 3.0 Corp. which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fission 3 Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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 release.

SOURCE Fission 3.0 Corp.

Categories
Base Metals Energy Exclusive Interviews

MIRAMONT RESOURCES | On the Search for a Major Copper Porphyry in Peru

Bill Pincus the President, Director, and CEO of Miramont Resources sits down with Maurice Jackson of Proven and Probable to discuss the latest exciting developments at the Cerro Hermoso and Lukkacha Projects. Specifically, we will highlight the recent press release the highly anticipated drilling permits for Cerro Hermoso.

VIDEO

AUDIO

TRANSCRIPT

On the Search for a Major Copper Porphyry in Peru 
Contributed Opinion

Source: Maurice Jackson for Streetwise Reports  (12/10/18)

Maurice JacksonBill Pincus, president and CEO of Miramont Resources, speaks with Maurice Jackson of Proven and Probable about his company’s latest exploration efforts in Peru.

Miramonte Cerro Hermoso

Miramonte Cerro Hermoso
Maurice Jackson: Joining us for a conversation is Bill Pincus, the president, director and CEO of Miramont Resources Corp. (MONT:CSE; MRRMF:OTCQB), which is developing new opportunities in world-class mining districts.
Bill, we have some great news to share with current and prospective shareholders, but before we begin, for first-time listeners, please share who is Miramont Resources, and what is the thesis you’re attempting to prove?
Bill Pincus: Miramont Resources is a junior exploration company. We have two copper gold projects in Peru. Both are relatively early-stage prospects. One (Cerro Hermoso) is ready to drill, and one is getting near ready to drill, so what we’re looking for, what our thesis is, we’re looking for large bulk tonnage that has the potential to be very significant type ore deposits.
Maurice Jackson: Bill, provide us with some historical context on the region in Peru where Miramont has its projects.
Lukkacha
Bill Pincus: We’re working in Southern Peru, which is known as one of the world’s great copper provinces. You have the giant mines of Toquepala, Cuajone, Cerro Verde, and Quellaveco is now being developed. These all produce hundreds of thousands of tons of copper metal annually. Our project, Lukkacha, is located right in this belt. We’re about 10 kilometers from one of the newer porphyry projects, by, I believe it’s Anglo American. But most importantly, we’re in one of the world’s great copper regions, so as an exploration company, we are the hunters, and if you’re going to hunt the elephants that we’re looking for, you want to be in the elephant country, and that’s exactly where we are.
Maurice Jackson: Walk us through both of your projects and the value propositions they present to the market, beginning with Cerro Hermoso.
Two prospects
Bill Pincus: Cerro Hermoso is our most advanced project. This is the one that we will begin drilling early next year. When we first started looking at it, we were looking at it because of some pretty significant gold values we were finding in rock chip and rock channel samples. But as the project has emerged over the past year, with our continued exploration, it’s really turned into a copper polymetallic project, copper-gold-silver, as well as some lead and zinc. But I think copper is the primary metal.
And it has the potential to be a very, very significant, large bulk tonnage deposit. That’s what we’re exploring for, and that’s what we hope to find. So, you know, we hope when we begin our first round of drilling, a discovery round of drilling, to identify significant subsurface mineralization.
Maurice Jackson: Tell us about your second project, Lukkacha.
Bill Pincus: Lukkacha, which is further to the southwest of Cerro Hermoso, is a classic copper porphyry system. We have now concluded a round of both reconnaissance mapping, followed up with detailed mapping, and what’s emerging is the classic picture of a copper porphyry system, in terms of the typical alteration patterns you would expect, the typical mineralization patterns you would expect, and the typical geologic patterns you would expect. So, we would like to do a little bit more work on this. We’ve done detailed geochemical sampling, detailed mapping, but we do want to take it to a round of geophysics.
We have drill targets emerging, but obviously, we want to refine that before we actually drill. So, if all goes according to plan, we think we’re looking at a completely new porphyry system, un-drilled, that is exhibiting many of the characteristics of similar systems nearby.
Maurice Jackson: On the 4th of December, Miramont received some great news for current and prospective shareholders. What can you share with us?
Bill Pincus: We got our drilling permit. This is for the Cerro Hermoso property. To be very honest with you, the process was just a tad longer than we had anticipated, and we had to jump through a few more hoops than we anticipated, but we did get our drilling permits. We’ve been in touch with the driller, and we should have a rig on site, ready to turn, in the second half of January, 2019.
Maurice Jackson: Mr. Pincus, I’m going to have a multilayered question here for you. What is the next unanswered question for Miramont Resources, when can we expect an answer, and what determines success?
Bill Pincus: Well, the next unanswered question is what do we find in the Cerro Hermoso drilling? We’ve done everything we possibly can, and we have great drill targets, but you know, the true test is what’s in the subsurface. So, that’s the next unanswered question. As I said, we should start drilling late January, so I would expect answers probably early March.
Maurice Jackson: And what will determine success, sir?
Bill Pincus: Well, success will be this is the first round of drilling in a project that’s never been drilled. You know, a great lengthy ore section would be huge success, but I think we have to get enough intercept and grade to make us firmly believe that our geologic model is correct, and that we can move forward and predict what will happen in the future from there.
Maurice Jackson: Switching gears, talk to us about the capital structure.
Bill Pincus: Miramont has 50 million shares outstanding. We have warrants priced at 45 cents that expire in Nov.19. We closed yesterday, at 26 cents Canadian. We have no debt, so I would call it a clean, simple capital structure. Most of the shares are fairly tightly held.
Maurice Jackson: What keeps you up at night that we don’t know about?
Bill Pincus: Unanswered questions. You know, this project, Cerro Hermoso, has been really a lot of fun for me, and it’s followed a pattern that I think is characteristic of excellent prospects, which is every time we go there, every time we take another look, every time we investigate something, we find something new that encourages us that there’s significant mineralization in the system. You know, we’ve done all that work. Now, we had to test that with a drill rig, and I guess that’s what keeps me up at night. What are we going to find with that drill rig?
Maurice Jackson: Last question. What did I forget to ask?
Bill Pincus: Well, I’m not sure. I can’t think of anything off the top of my head. I would say that if any readers have any questions, they can get onto our website, where they could book a phone call with either myself or our vice president, Tyson King, 604.398.4493, and we’ll be able to answer any follow-up questions they may have.
Maurice Jackson: And Bill, in regards to that, if investors do want to get more information about Miramont Resources, please do share the website address with us.
Bill Pincus: Quite simple, www.miramontresources.com.
Maurice Jackson: And as a reminder, Miramont Resources trades on the CSE symbol MONT, and on the OTCQB symbol MRRMF. Last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Bill Pincus of Miramont Resources, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Disclosure: 

1) Bill Pincus: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Miramont.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: No. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Miramont is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
4) 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.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) 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.
Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Categories
Exclusive Interviews Precious Metals

ANDY SCHECTMAN | Owning a Precious Metals IRA

Andy Schectman the President of Miles Franklin Precious Metals Investments sits down with Maurice Jackson of Proven and Probable to discuss the strategic advantages available to precious metals investors regarding tax loss selling, and the value proposition of owning precious metals IRA, which is redeemable in cash and or physical precious metals.

VIDEO

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TRANSCRIPT

Owning Precious Metals in an IRA

Original Source: https://www.streetwisereports.com/article/2018/12/10/owning-precious-metals-in-an-ira.html?utm_source=na_19081&utm_medium=recommended_article&utm_campaign=internal_recommended_article

Source: Maurice Jackson for Streetwise Reports  (12/10/18)

Maurice JacksonAndy Schectman of Miles Franklin Precious Metals Investments discusses with Maurice Jackson of Proven and Probable some benefits of holding precious metals in IRAs as well as some other tax advantages of precious metals.

Gold and Silver
Maurice Jackson: Welcome to Proven and Probable. Joining us is Andy Schectman, the president of Miles Franklin Precious Metals Investments.
In our previous interview, we addressed the value propositions and opportunity of a lifetime available right now in silver and platinum. Today, we will address two very important topics regarding tax law selling in precious metals RAs.
Mr. Schectman, before we begin, for first time listeners, who is Miles Franklin, and what type of services do we provide?
Andy Schectman: Thanks, Maurice. I’m going to address that in one second, I just want to say for your listeners, they ought to go back and listen to that last interview. I wouldn’t say something as sincere as I believe it to be the opportunity of a generation in silver right now and a strong opportunity in platinum. I really do believe that. And I know we’re not going to talk about that today, so I would really hope that your listeners would go and take advantage of listening to that. It’s as sincere as I can be.
Miles Franklin, Maurice, is a precious metals company, been in business now for 29 years in the state of Minnesota. We’ve never had a customer complaint, ever. We’re one of only 27 or 28 companies ever approved by the United States Mint. We maintained an A+ rating with the Better Business Bureau. And we have a reputation in this industry that is synonymous with honesty and integrity. And that’s exactly why I work with you, Maurice. I have you on my website. You’re a man of honor and that’s what we ascribe to be.
But the state of Minnesota does not care about our intentions or what we ascribe to be or our reputation in this federally non-regulated industry. And for over two years now, Minnesota is the only state in America to regulate the precious metals industry with a large surety bond and background checks of all our employees every single year, including principals, and compliance and continuing education that no one else has to abide by, unless they either reside in Minnesota as a precious metals company, or sell gold into the state as a precious metals company.
And what it really means in a federally non-regulated industry, Maurice, is a reputation that’s as solid as it gets, and the state of Minnesota guaranteeing that should anything ever go wrong, there’s a large surety bond in place to take care of any discrepancies. So, not that that will ever happen, but certainly the state of Minnesota guarantees that it won’t. And a little insurance in a federally non-regulated industry is not a bad thing, in my opinion.
Maurice Jackson: Andy, I want to begin by thanking you for the compliment. The respect is mutual. A number of investors in the stock market understand the advantages of tax-loss selling when it comes to their stock portfolio. But I find that in many circumstances, precious metals investors are not aware that they may implement a similar strategy on their physical precious metals holdings. Can you share with us some of the options precious metals investors may use to their benefit?
Andy Schectman: Actually, yeah. I find that a lot of accountants don’t even know how this rule applies, the difference between a precious metals tax swap or tax loss versus a security’s tax loss opportunity. Let me explain. When you sell a security for a loss, you are not allowed to buy it or anything similar to it back for 31 days. Or if you do, it’s a violation of what’s called the 30-day wash rule. The intention of that is imagine you have a large capital gain. You sold an investment property or sold a stock at a huge gain, or cryptocurrency at a huge gain, and you have a stock that you really like at a loss. You’d like to book that loss, but you don’t want to relinquish custody of the stock. So, the idea would then be sell the stock at a loss to cover the gain, to offset it. And then just buy it right back for the typical commission in buying a security on something like Scottrade that might only be $9.
The bottom line is that the federal government says, “Well, you can sell a security to offset a capital gain, you can use a capital loss to offset a capital gain. But if you do that, you can’t buy that same stock back or anything similar to it for 31 days.” Okay, fine. That 31 day wash rule does not apply to precious metals. So, if we were talking about trading gold for gold or silver for silver to book a loss and buy it right back, that’s completely, totally legal, as long as custody changes place. So, in other words, if you had gold to sell and you wanted to book a loss at these low levels, and either apply it towards a capital gain today, Maurice, or government allows you to carry that forward either … I think it’s $3,000 a year off or regular income, or you can carry it forward indefinitely until you have a capital gain.
But if you do it for the exact same product, in fact, the exact same product that you sell, you just decided to buy it back immediately, you can do that as long as custody changes hands. You’d have to send it to us and then we send it back to you. Just normal business spreads apply. But then you can book that loss. But, looking at gold to silver right now, I guess we can touch on it for a second. Never been a better time to kill two birds with one stone, sell your gold at a loss, book that loss and convert it to silver at 86 to 1 ratio.
That ratio, Maurice, has only been seen or bettered once in the last 50 years in 1993. When you look at silver right now, I see a historical ratio of silver to gold of being 40 to 1 going back 100 years. Over the last 50 years, it’s a little higher at about 45 to 1. But anytime you can see 80 to 1 bettered at all, typically you see it revert pretty darn close back to the mean, sometimes even below it. Last time was 2011. We had an 80 to 1 ratio for 2010. And by 2011, we had $2,000 gold and $50 silver at a 40 to 1 ratio. You would have doubled the amount of gold when you swapped back in.
Huge opportunity now to trade gold to silver, book a loss, buy silver at a rate we haven’t seen but once in the last 50 years, with the intention, Maurice, of someday swapping back into gold and maybe doubling it or better when these ratios normalized. And if you read our newsletter today, there are a plethora of reasons why we expect silver to be among the very best performing assets on the planet going forward.
So the bottom line is that the precious metals tax swap or tax loss plan is actually far more encompassing and liberal than is the security’s tax swap that inhibits you from buying anything similar to it, whatever you sold, for over 31 days.
Maurice Jackson: And the key here, again, is that ownership has to convey.
Andy Schectman: Right. Let’s say someone had something in the storage facility, like one of our Brinks facilities or any facility—we have relationships with just about every major storage facility in North America. A client maybe has a couple thousand ounces of silver in a storage facility. They would sell it. It gets transferred to our parent account in that facility. And they’d buy it right back at normal spreads. Here’s a little cherry on the sundae. While we sell something and book a loss, we give that information to our accountant.
The accountant never says to you, “Maurice, what did you do with the proceeds of that sale?” Your answer should be, “None of your business.” If you’re a nice guy like you, you’d probably tell them what you did. But the point is, is that if you sold something at a loss and then bought it back, there is no obligation to report what you did with the proceeds of that sale. And if you’re using the proceeds of the sale to finance the repurchase, the difference may be one or two percent. You can send a check for two percent. But the point of it is, is that if someone sells $100,000 worth of metal and then immediately turns around and buys it back, and gets ninety, eight cents on the dollar for it. So it costs them two percent to do the swap, but they just saved 20, 30, 40, 50 percent on capital gains.
It’s a home run for the client, not only in the tax savings, but also in the fact that we live in a world of decreasing privacy. And the loss in privacy in and of itself in buying gold is writing out a check or sending a wire. That wouldn’t happen here, because the only amount of money that’s going to be exchanged is the two percent or the client could simply say, “Just keep it out of the gold or silver. Give me back my 98 percent and that’s fine.” That transaction now is, for all intents and purposes, paper trail free completely and totally legal.
So at some point, let’s say a client were to get audited for something unrelated and they see this transaction. Well, you have the receipts, you have the metal. You just didn’t write out a check to reacquire it, giving you a whole bunch of privacy to boot.
Maurice Jackson: This is some valuable information. Andy, I’d like to switch gears here and still stick with precious metals, if I may.
Miles Franklin offers physical precious metals, IRAs, which offer some unique features. But most important, these IRAs can be redeemed in physical precious metals. What type of clients have physical precious metal IRAs?
Andy Schectman: I don’t know that there’s a specific type. But for my money, the best person to own a precious metals IRA is someone who is at or nearing distribution phase. I’m sure you know, Maurice, on a traditional IRA, when we are 70 and a half years old, the federal government says we need to take what’s called a required minimum distribution. In other words, you cannot let it continue to grow without taking a minimum distribution from it when we turn 70 1/2 years old, or you start to receive a penalty if you don’t.
So you take a minimum distribution every year, once you turn 70 1/2. For me, because this investment or the IRA allows you to take what’s called an in-kind distribution, where you would say, “You know what? Just send me my gold eagles or my silver eagles,” or whatever it is that’s being stored for you. And the list is pretty lengthy as to what you can store in a precious metals IRA, just pretty much has to be either American made, or 24 karat in gold, or 0.9995 in silver, and LBMA approved or Nymex approved metal, and it can be stored in an IRA. So the neat thing about it is the distribution in kind. Instead of taking a check, you can take your metal back.
So, someone who wants to buy gold from me. Let’s say they’re 70 years old or 69 or 68, one way to make a big splash in the gold pool without writing out a big check is to transfer an IRA into a precious metals IRA, fund it with gold and silver, and then start taking distributions of it through your IRA distribution channels. So for me, because it’s a non-interest bearing investment, I think it is a perfectly suited for someone at or nearing the distribution phase.
Maurice Jackson: Now, do I have the option of owning gold, silver, platinum, and palladium in this physical precious metals IRA?
Andy Schectman: Yes, you do.
Maurice Jackson: Now, as the ratios change, may I sell within my holdings, exchanging one metal for another?
Andy Schectman: I love the way you’re thinking outside the box. It’s the best vehicle for doing it because there are no tax consequences. If anyone is holding gold right now and not at least contemplating trading it to silver, or owning palladium and not contemplating trading it to platinum, they’re making a mistake. These ratios, Maurice, are so far out of whack, it is akin to four feet of snow in Phoenix. And if it snowed four feet of snow in Phoenix this morning, I promise you no one in Phoenix was rushing out to buy snowmobiles. It’s an anomaly and that’s exactly same thing we’re seeing right now. So, yes, if you have it in an IRA, if you have gold in an IRA, it is an absolute perfect vehicle to trade the silver. You have it stored, the storage fees are static, and there are no tax consequences. It’s a great vehicle for doing it.
Maurice Jackson: What is the maximum contribution I may make annually?
Andy Schectman: Contributions cannot go higher, in both traditional and Roth IRAs, than $5,500 per year, $6,500 if you’re 50 or older. The perfect vehicle, Maurice, is a transfer or a rollover, a transfer being you transfer a portion of an existing IRA, or you rollover the entire thing into a new precious metals IRA. That’s the best way to get a larger amount of money into an IRA.
Maurice Jackson: And that alludes to my next question here. So, if you currently have a 401k, you can’t transfer that over right now. But if you’re no longer with that employer, can you take your 401k and transfer it over?
Andy Schectman: Absolutely. And if you are no longer working with an employer who offered a 401k, you’re crazy to not move it out of said 401k, because of the lack of flexibility that the 401ks offer. And the whole idea for being in a 401k, or the whole incentive, is to have it matched. The matching that the employers typically provide is incentive to keep it in. But leaving it in a 401k, which is just a couple of different choices within that platform, instead of having the ability to self-direct it, it would be a mistake. A 401k is a little bit different. You would turn it into a self-directed IRA, and then purchase the metal. But either a traditional IRA can be rolled over or transferred, or someone who had a 401k would transfer that to a self-directed IRA without any taxable issues, and then purchase metals that way.
Maurice Jackson: Lastly, what if I wanted to leave a lasting legacy with my children or grandchildren? May I open up a precious metals IRA for them?
Andy Schectman: You know, Maurice, I truly believe what has made me successful, among a few other lucky breaks, is being very objective. And the salesman in me wants to say, “Yeah, sure, absolutely. Great idea.” But I think in truth, if someone wanted to leave a lasting legacy for someone, a child or a grandchild, number one, someone who has many years, a life ahead of them, interest bearing is important. And if you could put it into something interest bearing, preferably compounding, that is the key to grow in wealth. But as far as precious metals, when I started in this industry, I was 19 years old. And my father and I started this company together. And he said to me when we started, “There’ll be one rule and one rule only.” And that is that I’ll buy something every two weeks or he’ll fire me. I’m the president of the company now and I own 51%, so he won’t fire me any longer. But I have honored my commitment to him for over almost three decades. And every two weeks, I have purchased precious metals, every two weeks for 29 years. I have not missed a two-week period.
To me, it is wealth. And the best way to accumulate wealth is to do it that way, privately, not in an IRA where it’s going to sit there for a long period of time because it’s a very different set of conditions to call precious metals in your possession that you and only you know about it versus having it in an IRA. And I don’t think I need to elaborate on that anymore. But I simply think that my grandchildren will greatly appreciate, hopefully someday, receiving gold and silver that was first passed on from my father, and to me and my sister, and from me to my three children, and hopefully from them to their children and etc.
And it’s done so in a manner that is very private. And I think, in a world of decreasing privacy, a little bit of extra privacy is a nice thing. And, you know, there are proper ways to pass money on in your estate. And if you can have a little bit of privacy to boot, that’s not a bad thing.
Maurice Jackson: Mr. Schectman, thank you for sharing your wisdom and insights. For someone that wants to get more information regarding today’s discussion, please share the website and phone number.
Andy Schectman: The website is milesfranklin.com. And my phone number directly is 1-800-255-1129. And my personal email is Andy@MilesFranklin.com.
Maurice Jackson: As a reminder for our audience, we are licensed brokers to buy and sell gold, silver, platinum, palladium, and rhodium, offshore storage accounts and precious metals IRAs. If you wish to have a conversation with me, please email Maurice@MilesFranklin.com or call 919-274-5680.
And last but not least, please visit our website ProvenandProbable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Andy Schectman of Miles Franklin Precious Metals Investments, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Disclosure: 

1) Andy Schectman is the owner of Miles Franklin Precious Metals Investments.
2) Maurice Jackson is a licensed representative of Miles Franklin Precious Metals Investments. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
4) 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.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) 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.
Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

 

Categories
Energy Oil & Gas

JERICHO OIL Announces 725 BOE per Day STACK Well Targeting Meramec Formation

TULSA, Okla., Dec. 10, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) announces through its Oklahoma STACK Joint Venture (“STACK JV”), that it has brought online a second high-rate single-mile lateral Meramec oil well within its contiguous Blaine County acreage position.

The Valkyrie 19-12-06 1H well is located within the STACK JV’s approximately 16,000 net acre position of the normally-pressured oil window of the STACK play.  The Valkyrie achieved a peak 24-hour rate of 725 oil-equivalent barrels (“BOE”) per day (55% oil).  The 30-day normalized rate (IP30) for this ~4,500 ft perforated lateral well was 625 BOE per day (52% oil).  Initial rates of productivity from the Valkyrie continue to strongly support the Company’s confidence in its multi-zone developments and the overall value of our coveted STACK acreage position.  The Valkyrie, in addition to the STACK JV’s previously announced Wardroom Meramec well, located 2 miles to the southeast, show consistent performance of the STACK resource, crucial to our Company’s long-term net asset value.
Jericho’s STACK JV owns a 24% working interest alongside Staghorn Petroleum II LLC (Staghorn) in the Valkyrie.
As a reminder, the Meramec and Osage formations, the principal targets of the STACK play, represent a combined oil-rich thick column of approximately 700 feet.  Our experience throughout 2018, by way of drilling and participating in both target-zone formation wells, has provided our STACK JV the proper catalysts of data to leverage into the Company’s 2019 development program.
Brian Williamson, CEO of Jericho Oil, stated, “Our focus in participating with best in class operators is working and we are extremely encouraged with the results of the Valkyrie and surrounding Meramec wells, proving the extent, both geographically and geologically, of the formation.  In addition to the Meramec, we continue to execute on successfully proving-up the large resource potential of the regionally deposited Osage formation.  Ultimately, 2018 has been an extremely productive year which has allowed our Company to have ever-increasing confidence in repeatable, multi-zone development of our STACK resource which, over time, should benefit our strong shareholder base.”
About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK Play of Oklahoma.  Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves.  Jericho has assembled an interest in 55,000 net acres across Oklahoma, including an interest in ~16,000 net acres in the STACK Play. Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec and Osage formations in the STACK.  The Jericho team applies advanced engineering analyses and enhanced geological techniques to under-developed resource areas.
Jericho, with operational headquarters in Tulsa, Oklahoma, trades publicly on the TSX Venture Exchange (JCO) and OTC Markets (JROOF). Jericho owns its net acre position in Oklahoma through, and participates in the STACK JV through, one or more wholly owned subsidiaries.
Cautionary Note Regarding Forward-Looking Statements: This news release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Jericho’s expectations include risks related to the exploration stage of Jericho’s project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
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.
CONTACT:
Adam Rabiner,
Director, Investor Relations
1.800.750.3520
investorrelations@jerichooil.com