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Base Metals Energy

Denison announces decision to advance Wheeler River Project following positive PFS results

Denison Mines Corp. (CNW Group/Denison Mines Corp.)

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Denison Mines Corp. (CNW Group/Denison Mines Corp.)

TORONTO , Dec. 18, 2018 /CNW/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE American) is pleased to report that the Company’s Board of Directors and the Wheeler River Joint Venture (“WRJV”) have approved the advancement of the Wheeler River project, following a detailed assessment of the strong economic results produced by the recently filed Pre-Feasibility Study (“PFS”) prepared for the project in accordance with NI 43-101 (see news release dated October 30, 2018 ). In support of the decision to advance the Wheeler River project, the WRJV has approved a $10.3 million budget for 2019 (100% basis), which is highlighted by plans to initiate the Environmental Assessment (“EA”) process as well as engineering studies and related programs required to advance the high-grade Phoenix deposit as an in-situ recovery (“ISR”) mining operation. Denison’s share of the 2019 budget for Wheeler River is $9.3 million , which reflects Denison’s 90% ownership interest in the project (see news release dated October 29, 2018 ). View PDF version.

Highlights from Wheeler River 2019 Budget

  • Initiation of Environmental Assessment process:  The submission of a Project Description (“PD”), to Federal and Provincial Regulatory Authorities is planned for early 2019, which is expected to initiate a multi-year EA, consultation, and permitting processes for the project.
  • Commencement of ISR wellfield tests: Field tests involving the drilling of ISR wells into the Phoenix deposit will be designed to assess permeability throughout the deposit by completing pump and other hydraulic tests within the orezone. The drilling of ISR wells will also allow for the collection of additional groundwater and ore samples, as well as provide assistance in refining the estimated cost of wellfield development.
  • Initiation of metallurgical ISR pilot plant testing:  Extensive laboratory studies replicating the ISR flowsheet are planned to test and optimize the mineral processing aspects of the Phoenix operation. Studies are expected to include the assessment of lixiviant chemistry and performance under a variety of permeability and grade conditions.
  • Discovery focused exploration program: Following years of delineation drilling for the Phoenix and Gryphon deposits, planned exploration activities in 2019 are designed to evaluate high priority regional target areas by focusing on initial testing of targets at the sub- Athabasca unconformity – which could lead to the discovery of further uranium deposits that may be amenable to ISR mining.

David Cates , President and CEO of Denison, commented “With the potential for a Phoenix ISR operation to have the industry’s lowest operating cost per pound of U3O8, as outlined in the Wheeler River PFS, the Board of Directors unanimously approved the advancement of the project and the 2019 budget.  The initiation of the EA process, as well as engineering and field studies designed to ultimately support a feasibility study, illustrates the Company’s commitment to achieving the project development timeline outlined in the PFS and claiming the ‘pole-position’ amongst undeveloped uranium projects in the Athabasca Basin region.  With plans for 2019 including a discovery-oriented exploration program and various engineering programs designed to de-risk the mine plan for the Phoenix ISR operation, we have the potential for several meaningful catalysts to emerge during the year.”

A location map of the Wheeler River project is provided in Figure 1, showing existing and proposed infrastructure. Figure 2 shows the location of the high priority regional target areas planned for exploration drill testing in 2019.

Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (CNW Group/Denison Mines Corp.)

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Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (CNW Group/Denison Mines Corp.)

Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (Full Resolution)

Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (CNW Group/Denison Mines Corp.)

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Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (CNW Group/Denison Mines Corp.)

Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (Full Resolution)

Wheeler River PFS: Phoenix ISR Highlights

The PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits.  The high-grade Phoenix deposit is designed as an ISR mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River.  Based on the PFS plan, first production from Phoenix is expected in 2024, with the development of the Gryphon deposit to follow with first production from Gryphon projected for 2030. The Phoenix operation is estimated to have a base case pre-tax Net Present Value (“NPV”) of $930.4 million (at 8% discount rate) representing the large majority of the project’s overall estimated pre-tax NPV(8%) of $1.31 billion – which includes the self-funding development of the Gryphon operation from cash-flows generated by the Phoenix operation.

The novel use of the ISR mining method at Phoenix pairs the world’s lowest cost uranium mining method with the world’s highest grade undeveloped uranium deposit ( Phoenix ) – in what could prove to be one of the world’s (1) lowest cost and (2) most environmentally friendly and responsible uranium mining operations.

  • Industry leading operating costs and comparatively low initial capex with ISR for Phoenix

Mine life

10 years (6.0 million lbs U3O8 per year on average)

Probable reserves(1)

59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)

Average cash operating costs

$4.33 (US$3.33) per lb U3O8

Initial capital costs

$322.5 million (100%)

Base case pre-tax IRR(2)

43.3%

Base case pre-tax NPV8%(2)

$930.4 million (100%)

Base case price assumption

UxC spot price(3) (from ~US$29 to US$45/lb U3O8)

Operating profit margin(4)

89.0% at US$29/lb U3O8

All-in cost(5)

$11.57 (US$8.90) per lb U3O8

(1)

For further details on mineral reserves refer to the NI 43-101 Technical Report on Wheeler River titled “Pre-feasibility Study for the
Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 available on Denison’s website or 
on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml

(2)

NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;

(3)

Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated
in constant (not-inflated) dollars;

(4)

Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue.  Operating costs
exclude all royalties, surcharges and income taxes;

(5)

All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated
number of pounds U3O8 to be produced

  • Environmental advantages of ISR mining at Phoenix  – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the lixiviant used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with federal and provincial representatives and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.

Initiation of Environmental Assessment process

The PFS process identified the EA as a key element of the project’s critical path.  The PFS estimated a 3-4 year timeline to receive approvals under the existing regulations of the Canadian Environmental Assessment Act (“CEAA 2012”), allowing for construction to commence in 2022 with first production planned by 2024.

After careful consideration of the risks and opportunities associated with permitting and concurrent advancement of project engineering activities, the Company has decided to submit a PD and initiate the EA process in early 2019 for the Phoenix ISR operation, and to bring the Gryphon operation forward, at a later date, as required to achieve the PFS plan of Gryphon first production by 2030.  This is expected to simplify the EA and permitting process for the Phoenix operation and reduce the capital required to advance the project to a definitive development decision.

EA related expenditures planned for 2019 are estimated to be $2.5 million (100% basis) and, in addition to advancing the actual EA process, will include the continuation and expansion of the collection of certain baseline environmental data and the continuation of stakeholder consultation efforts.

Commencement of ISR wellfield tests

Additional field and laboratory work is needed to increase confidence and reduce risk in the ISR application at Phoenix . While preliminary field data supports the use of ISR, the ability to move fluids through the ore zone is an important technical risk that requires additional evaluation ahead of the initiation of a formal Feasibility Study (“FS”).

ISR field testing planned for 2019 is expected to include the installation of approximately 15 to 20 ISR wells into the Phoenix orebody, which is expected to provide a representative test of the various ore domains associated with Phoenix and the expected conditions in actual ISR operations. The field test is expected to have the following key objectives:

  • Confirm the ability to pump fluids through the various domains of the orebody and quantify volumes, pressures and other conditions required within the ore zones and surrounding host rock;
  • Confirm the ability, costs and schedule to drill larger diameter (8 inch) boreholes and set impermeable casings within the ground surrounding Phoenix ;
  • Confirm baseline water conditions in, and surrounding, the deposit for the design of water treatment during operations, closure plans and the completion of expected environmental assessments;
  • Obtain additional representative ore samples from core drilling to facilitate extensive ISR metallurgical testing; and
  • Obtain surface geotechnical data of soils for foundation designs.

Expenditures related to the field testing planned for 2019 are estimated to be $2.4 million (100% basis).

Initiation of metallurgical ISR pilot plant testing 

The PFS results are based on metallurgical test work which was focused on proving the applicability of ISR mining (via column test) and leachability (via conventional leach tests) for the development of the Phoenix operation.  As the project advances through the EA process and towards the initiation of a FS, additional metallurgical test work is required to both test and optimize the metallurgical processing elements of the Phoenix operation.  A customized laboratory test program is expected to be developed to properly achieve the desired metallurgical test objectives – which are likely to include the following:

  • Assess the performance of different lixiviants in a variety of permeability and grade conditions;
  • Evaluate the potential for build-up of contaminants in the lixiviant;
  • Evaluate opportunities to recover rare earth metals as a by-product;
  • Increase confidence in the concentration of the lixiviant for the process plant design; and
  • Improve confidence in ground restoration abilities and cost estimates.

A laboratory scale pilot plant is planned to run over a one-year period, starting during the second half of 2019, with approximately $0.5 million (100% basis) budgeted for the setup and initial operation of the pilot plant in 2019.

Other project development activities

A further approximately $1.7 million (100% basis) is budgeted for project development / evaluation related activities in 2019, including the completion of certain third-party review studies, additional engineering trade-off studies related to the proposed Gryphon operation, program management costs, and operator fees to the WRJV.

The 2019 program is part of a multi-year project development plan that calls for the completion of a FS by the end of 2020 and receipt of final environmental and permitting approvals in 2021 or 2022 – which is expected to position Denison to make a definitive development decision on the project.  Future activities in 2020 and beyond may include:

  • Drilling of pilot / test freeze holes to increase confidence in costs associated with establishing the freeze wall surrounding the Phoenix deposit;
  • Completion of condemnation drilling and mineral resource updates at Phoenix to ensure potentially economic mineral resources are encapsulated within the freeze wall perimeter; and
  • Initiation of a formal FS in accordance with NI 43-101.

Discovery focused exploration program

The 2019 budget also calls for a $3.2 million (100% basis) discovery focused exploration program at Wheeler River. The program consists exclusively of diamond drilling, including approximately 13,500 metres in 23 planned drill holes.

Following the completion of the PFS and given the highly encouraging results from the proposed Phoenix ISR operation, the exploration drilling program will be focused on initial testing of targets at the sub- Athabasca unconformity, with the potential to discover additional ISR amenable uranium deposits.  Potential for basement hosted uranium mineralization will not be ignored where opportunities also exist to evaluate prospective basement targets.

High priority regional target areas planned for testing in 2019 include K West, M Zone, K South, Gryphon South, Q South (East), and O Zone, each of which is shown in Figure 2.

About Wheeler River

Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of 132.1 million pounds U3O8 at an average grade of 3.3% U3O8, plus combined Inferred Mineral Resources of 3.0 million pounds U3O8 at an average grade of 1.7% U3O8. The project is host to the high-grade Phoenix and Gryphon uranium deposits (discovered by Denison in 2008 and 2014, respectively), and is a joint venture between Denison (90% and operator) and JCU ( Canada ) Exploration Company Limited (10%). 

A PFS was completed, considering the potential economic merit of co-developing the high-grade Phoenix and Gryphon deposits, the results of which were announced on September 24, 2018 . Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax NPV of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million . The PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture (“WRJV”) are subject to different tax and other obligations.

Further details regarding the Wheeler River project, including additional scientific and technical information relevant to the PFS, as well as after-tax results attributable to Denison’s ownership interest, are described in greater detail in the NI 43-101 Technical Report for the Wheeler River project titled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada ” dated October 30, 2018 with an effective date of September 24 , 2018.  A copy of this report is available on Denison’s website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml

Qualified Persons

The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo , P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.

The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran , MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.

For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison in its exploration activities, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.

About Denison

Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada . In addition to its 90% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.92% interest in the J Zone and Huskie deposits on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.

Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and / 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”. In particular, this press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future. 

Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the Athabasca Basin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at www.sedar.com and its Form 40-F available at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being exhaustive.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources and Probable Mineral Reserves: This news release may use the terms ‘measured’, ‘indicated’ and ‘inferred’ mineral resources. United States investors are advised that while such terms have been prepared in accordance with the definition standards on mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 Mineral Disclosure Standards (“NI 43-101”) and are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (“SEC”) does not recognize them. ‘Inferred mineral resources’ have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.  The estimates of mineral reserves in this press release have been prepared in accordance with 43-101. The definition of probable mineral reserves used in NI 43-101 differs from the definition used by the SEC in the SEC’s Industry Guide 7.  Under the requirements of the SEC, mineralization may not be classified as a “reserve” unless the determination has been made, pursuant to a “final” or “bankable” feasibility study that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.  Accordingly, Denison’s probable mineral reserves disclosure may not be comparable to information from U.S. companies subject to the reporting and disclosure requirements of the SEC

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Categories
Energy Oil & Gas

JERICHO OIL Announces Reaffirmation of Borrowing Base and Restructuring of Hedging Program

TULSA, Okla., Dec. 17, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) is pleased to announce that the lender under its USD$30 million Senior Secured Revolving Credit Facility (the “Facility”), East West Bancorp, has reaffirmed its borrowing base at $7.5mm following the Company’s regularly scheduled semi-annual redetermination process.  There were no other material changes to the terms of the Facility resulting from this borrowing base redetermination.
The Company also reports that it has opportunistically restructured its commodity hedge positions to eliminate upside caps on its realized price for crude oil, in addition to raising the floor which protects the Company’s realized price to the downside.
Brian Williamson, CEO of Jericho Oil, stated, “We are encouraged by the outcome of our recent redetermination process, which we believe to reflect the quality of our Mid-Continent position and the economics associated with our continued investment,” adding, “we appreciate the support of our lending bank and their commitment to partner with us as we continue to add to our proved reserves base and execute on our growth strategy throughout 2019.”
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

Categories
Base Metals Energy Precious Metals

GROUP TEN METALS Announces Discovery of Hybrid Zone as One of 14 Multi-Kilometer-Scale PGE-Ni-Cu Target Areas Identified at Stillwater West

VANCOUVER, British Columbia, Dec. 17, 2018 (GLOBE NEWSWIRE) — Group Ten Metals Inc. (TSX.V: PGE; OTC: PGEZF, FSE: 5D32) (the “Company” or “Group Ten”) provides an update on the Company’s flagship Stillwater West PGE-Ni-Cu project (“Stillwater West” or the “Project”) in the Stillwater district of Montana, USA, including a summary of 2018 field work which resulted in the recognition of the new Hybrid Zone PGE-Ni-Cu-Cr target that is one of 14 multi-kilometer priority target areas identified by field and data analysis activities to date.

Dr. Craig Bow, Chief Geologist, stated, “We are excited about the discovery of a fundamentally new type of platinum and palladium mineralization within the Stillwater Complex. Termed “Hybrid Zone” due to the complex mixtures of rock types and textures, this zone within the Chrome Mountain target area is characterized by broad intervals (10 to 150 meters) of highly anomalous PGE levels associated with chromite and base metal sulfide often in pegmatoidal Ultramafic Series lithologies. To date, mineralization has seen scout drilling only and remains open in all directions, emphasizing the underexplored nature of the ultramafic portion of the Stillwater Complex. We are committed to further exploration of this iconic mining district and believe in its potential to host significant new deposits.”

Including the new Hybrid Zone in the Chrome Mountain target area, Group Ten has identified a total of 14 multi-kilometer-scale target areas along the approximate 25-km strike length of the property (see Figure 1). These 3- to 8-km-long target areas have been defined by major high-level electro-magnetic conductors with broad coincident soil geochemical anomalies, and are further divided into eight ‘Platreef-style’ bulk tonnage PGE-Ni-Cu sulphide target areas (blue ellipses) and six ‘Reef-type’ higher-grade PGE target areas (red ellipses) including the Picket Pin PGE reef deposit.

The eight ‘Platreef-style’ bulk tonnage PGE-Ni-Cu target areas occur within the ultramafic and basal part of the Stillwater Complex and are highlighted by strong electro-magnetic conductive signatures that are characteristic of large bodies of massive to extensively disseminated sulphides. These geophysical targets have overlapping highly elevated palladium, platinum, gold, nickel, copper, and chromium values in soils and rock sampling. Individual target areas have from a few drill holes to as many as 30 wide-spaced holes that have intercepted significant levels of platinum, palladium and gold along with nickel, copper, cobalt, rhodium, vanadium and chromium.

The higher-grade ‘Reef-type’ PGE target areas at Stillwater West, occur both above and below Sibanye-Stillwater’s J-M Reef deposit, which hosts a Measured and Indicated resource of 31 million ounces at a grade of 17.0 grams per tonne (g/t) Pt+Pd, plus an additional 49 million ounces at 16.6 g/t Pt+Pd in Inferred resources1, plus past production of 10 million ounces at similar grades2 from three active mines. Less work has been completed on these Reef-type targets by Group Ten to date however surface sampling and drilling has reported significant mineralization that will be assessed in future work.

2018 Exploration Programs

The 2018 exploration program, the Company’s first at Stillwater West, confirmed the potential of the Project to host multiple large-scale, disseminated, polymetallic bulk tonnage deposits across the 25-km length of the claim blocks. Work was focused on exploration of the lower Stillwater Complex where the Company sees the potential for much larger mineralized systems than has been previously recognized in the district based on geological similarities with the northern limb of South Africa’s Bushveld Complex, a region which hosts Anglo American’s world-leading Mogalakwena PGE-Ni-Cu Mine, and Ivanhoe’s Platreef PGE-Ni-Cu project, which is currently under construction.

Work was conducted in the following key areas at Stillwater West in 2018:

  • Significant mineralized intervals from over 11,000 meters of core inventory were re-logged for assay and the application of new geologic models from the Platreef. Re-logging is now complete, with assays pending;
  • Surface prospecting and rock sampling of mineralized outcrops along approximately 20 km of the 25-km strike of the project was completed. Assay results are expected shortly;
  • Detailed surface mapping of the Basal and Ultramafic Series covering an approximate 7 km2 area was completed to augment the historical database and better define the stratigraphy of this underexplored portion of the Stillwater Complex;
  • Physical rock property measurements were completed on representative core and grab samples including magnetic susceptibility, conductivity/resistivity, IP (Induced Polarization) chargeability, and density. Rock property analysis is expected to be instrumental in developing new geologic and 3-D models for the different types of mineralization at Stillwater West;
  • Entry of all core data into the first property-wide 3D geologic database for modeling and target refinement. This effort is ongoing, with results expected in 2019;
  • Development of a predictive geologic model to drive future exploration efforts and follow-up drilling (ongoing); and prioritization of all targets along the 25-km-long strike length of the Project (now underway).

Next Steps

Results of the 2018 field program will be released in the coming weeks, with results of the greater modeling and mapping efforts expected to be on-going through Q1 of 2019. Group Ten will attend both the Vancouver Resource Investment Conference and AME Round Up trade shows in January, including core display at the latter.

About Stillwater West

The Stillwater West PGE-Ni-Cu project positions Group Ten as the second largest landholder in the Stillwater Complex, adjoining and adjacent to Sibanye-Stillwater’s world-leading Stillwater, East Boulder, and Blitz platinum group elements (PGE) mines in south central Montana, USA. With more than 41 million ounces of past production2and current M&I resources1, plus another 49 million ounces of Inferred resources1, the Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex, while the lower part of the Stillwater Complex also shows the potential for much larger scale disseminated and high-sulphide PGE-nickel-copper type deposits, possibly similar to Platreef in the Bushveld Complex3. Group Ten’s Stillwater West property covers the lower part of the Stillwater Complex along with the Picket Pin PGE Reef-type deposit in the upper portion, and includes extensive historic data, including soil and rock geochemistry, geophysical surveys, geologic mapping, and historic drilling.
Note 1: Report on Montana Platinum Group Metal Mineral Assets of Sibanye-Stillwater, November 2017, Measured and Indicated Resources of 57.2 million tonnes grading 17.0 g/t Pt+Pd containing 31.3 million ounces and 92.5 million tonnes grading 16.6 g/t containing 49.4 million ounces.
Note 2: Public production records from Stillwater Mining Company from 1992 to present.
Note 3: Magmatic Ore Deposits in Layered Intrusions—Descriptive Model for Reef-Type PGE and Contact-Type Cu-Ni-PGE Deposits, Michael Zientek, USGS Open-File Report 2012–1010.

About Group Ten Metals Inc.

Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA.  Group Ten also holds the highly prospective Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory, and the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario.

About the Metallic Group of Companies

The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of platinum & palladium, silver and copper. Member companies include Group Ten Metals (PGE.V) in the Stillwater PGM-Ni-Cu district of Montana, Metallic Minerals (MMG.V) in the Yukon’s Keno Hill silver district, and Granite Creek Copper (GCX-H.V) in the Yukon’s Carmacks copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development, including strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers and are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven historic mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/62600ad4-0f29-4832-9016-13f5b7e830c1

FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director

Email: info@grouptenmetals.com Phone: (604) 357 4790
Web: http://grouptenmetals.com Toll Free: (888) 432 0075

Quality Control and Quality Assurance

Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.

Forward-Looking Statements

Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

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.

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RON PAUL On The Coming Crisis: “Could be Worse Than 1929”

Ron Paul On The Coming Crisis: “Could Be Worse Than 1929”

Dec 16, 2018 09:00 am
By Albert Lu

What started as a strong week for U.S. equities ended with losses, as disappointing economic data from China and Europe pushed global equities down on Friday.
The Dow Jones Industrial Average closed down by nearly 500 points on Friday.
Numbers reflecting China’s industrial output and retail sales growth missed expectations. The news sent Asian equities tumbling overnight.
PMI data out of Europe also disappointed. The IHS Markit Flash Eurozone PMI index fell to its lowest level in four years.
The news helped push European stocks, measured by the Stoxx 600, lower by 0.3%.
The move down in U.S. stocks erased gains for the week with small cap stocks among the hardest hit. Small caps, as measured by the Russell 2000 Index, have lost roughly 17% over the last 3 months. Meanwhile, the large cap S&P 500 index lost 9% over the same period.
STOCK UP ON LIQUIDITY: CREDIT DEFAULT CYCLE COMING
The recent volatility has driven some investors to seek shelter in instruments with higher liquidity. In particular, Pimco Chief Investment Officer Dan Ivascyn told Bloomberg Radio that investors should consider stocking up on lower-risk, liquid assets to defend against rising volatility and widening credit spreads.
“The credit markets, particularly the non-financial segments of the corporate credit markets, are where we see the most long-term risks.”
Ivascyn cites the tremendous amount of issuance over the last decade and a steady deterioration in underwriting standards as key concerns.
“If I was allowed one piece of research, and one piece only, a pretty good piece of research would be to look at issuance versus history. I think when you look at leveraged loans — you look at other segments of the corporate credit universe — issuance is very, very high.”
In addition to leveraged loans, Ivascyn drew attention to the prevalence of CLOs, collateralized loan obligations.
“Looking at total outstandings in the CLO market … total issuance today is pretty darn close to max outstanding [of] ABS CDOs prior to the financial crisis.”
While Ivascyn stops short of equating the magnitude of today’s CLO risk to that experienced prior to 2008, he suspects the situation has created substantial risk for down-side overshooting of fundamentals.
“Many of the participants in these markets have never gone through a default cycle. So, we’re cautious.”
In addition to raising liquidity, Ivascyn recommends investors save cash for opportunities ahead.
“You want to be nimble. You want to be flexible. You want to be liquid … That involves a lot of patience.”
BANK STOCKS UNDERPERFORM
Small cap stocks are not the only victims of recent volatility. Bank stocks, particularly regional bank stocks, have also suffered. The KBW Regional Banking Index is down nearly 17% this year, which indicates to some that investors fear a recession is near.
Morgan Stanley Analyst Ken Zerbe wrote recently, “We cannot ignore the growing risk of a bear credit market next year preceding a recession as well as the negative impact of weaker economic growth [on credit quality and as a driver of slower loan growth].”
“The carefree days of rising rates and pristine credit quality could be coming to an end.”
DEPRESSION COMING WITHIN THE NEXT 12 MONTHS
Former Congressman and presidential candidate Ron Paul pulled no punches in his recent interview on CNBC Futures Now. Paul made a strong case for the onset of depression-like conditions soon.
“I think it’s a very vulnerable position because when markets are destined to make big corrections … they don’t do it from the top, they do it from 10-15% down. So, we’re at that position.”
Citing economic problems ranging from artificially low interest rates and ballooning central bank balance sheets to trade tariffs, the former congressman stressed that understanding the conditions that caused the bubble is more important than identifying the pin that will eventually pop it.
“The precipitating factor will be that black swan — it’s coming. The situation is ready for it. It’s very precarious — the debt is too much, all the malinvestment is there.”
“You need a precipitating factor like Lehman Brothers …. But it might not be just an ordinary old-fashioned bank run … It could be international, it could be related to this tariff war we have going on.”
When asked if there was anything President Trump and Federal Reserve Chairman Powell could do to avoid the day of reckoning, his answer was clear.
“No … They actually believe they can find the neutral rate of interest. It’s a total fallacy. Nobody knows what that is … I’m predicting that they can’t solve this problem that is coming because interest rates are too low and they don’t have any room … they will go back to QE and they’ll pass out the money.”
How bad will it be?
“There’s no sign that it’s going to be mild … I think that it could be worse than 1929.”
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Deal Or No Deal — 4 Signs Of Economic Trouble Ahead
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Jim Rogers: Write It Down — Commodities Are Going To Do Better Than Stocks

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Base Metals Precious Metals Project Generators

MILLROCK RESOURCES Closes Tranche 2 of Private Placement

VANCOUVER, BRITISH COLUMBIA, December 14, 2018 – Millrock Resources Inc. (TSX-V: MRO) (“Millrock” or “the Company”) reports the non-brokered private placement announced on December 7, 2018 was oversubscribed and the Company raised a total of $1,044,500. A total of 3,445,000 units at a price of $0.10 per unit have been issued in Tranche 2 for gross proceeds of $344,500. Each unit consists of one common share of Millrock and one share purchase warrant (the “Unit Warrants”). Each Unit Warrant entitles the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:

  • During the first year from the closing date the Unit Warrants are exercisable at $0.14 per share;
  • Thereafter, during the second year from the closing date, $0.17 per share; and
  • Thereafter during the third year from the closing date, $0.20 per share.

Finder’s fees of $600 and 6,000 Finder’s Warrants are payable to Sprott Private Wealth LP., in connection with this portion of the financing.
The common shares issued under this financing and any common shares issued pursuant to exercise of Unit Warrants or Finder’s Warrants are subject to a hold period and may not be traded until April 15, 2019.
This financing is subject to receipt of TSX Venture Exchange acceptance.
Proceeds from the financing will be used for project generation and general corporate purposes. The financing is subject to final approval from the TSX Venture Exchange.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorers PolarX Limited. and Sojourn Exploration Inc.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
(604) 638-3164
(877) 217-8978 (toll-free)
Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

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TOM WHEELWRIGHT How to Find an Investment Path that is Right for You

I love when someone asks me, “I’ve been learning about investing in XYZ. How do I know if that is right for me?” It means they are thinking about their wealth strategy.

All too often I see people jumping into investments without a wealth strategy in place. It’s the wealth strategy that answers the question about whether an investment is right for you.

When it comes to building wealth, one size does not fit all.

Making your wealth strategy your own is essential to its success.

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Here are 3 areas that are most impacted by you in your wealth strategy:

#1 Where You Are Today

Where you are today is unique to you and directly impacts what you should do in your wealth strategy.

Where you are today includes:

  • Your income
  • Your expenses – including your taxes
  • Your assets
  • Your liabilities

It’s impossible to get to where you are going if you don’t know your starting point. And, how you get to where you are going is heavily influenced by your starting point – which is where you are today.

For example, someone whose main source of income is from a job needs a different path to achieve their wealth goals than someone whose main source of income is from a business.

Or, someone who has a large tax liability needs a different path to achieve their wealth goals than someone who currently has no tax liability.

Everyone can achieve their wealth goals – they just need different paths to get there. They need to customize their wealth strategy to their current situation.

#2 Where You Want to Be

Your wealth strategy is all about your wealth dream.

Your wealth dream is your picture of your ultimate lifestyle. Where do you live? How do you spend your time?

Now, we can all close our eyes for a few seconds and imagine the lifestyle of our dreams. But to truly define your wealth dream means being very detailed and specific – in other words, making it your own.

With your wealth dream, you can analyze an investment in a different way – what is that investment going to do to get you from where you are today to where you want to be.

The more detailed and specific your wealth dream is to you, the more likely it is to be reached. As your wealth dream gets clearer, so does the path to get there.

#3 Your Personal Role

To successfully navigate from where you are today to where you want to be, you must maximize your personal role in your wealth strategy.

Since our time is limited to just 24 hours a day, it is important to maximize the results of our personal efforts. To get the best results from our personal efforts, it is vital that we not only enjoy what we are doing but that it is something we are excited to do.

For example, say Person A invests in XYZ and loves it and Person B invests in the exact same thing and hates it.

Who do you think will be more successful?

What’s really happening here is Person A loves their role so it gives them energy while Person B doesn’t like their role so it drains their energy.

When your personal role in your wealth strategy is something you love to do, your success rate goes up – not just in terms of achieving your wealth goals, but also in terms of how quickly you achieve your wealth goals.

It’s Your Wealth Strategy

Nobody cares more about building your wealth than you. This is why making your wealth strategy your own is critical to its success.

We’ve updated our Terms of Use – click here to review them now.

Tom Wheelwright, CPA

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OPPORTUNITY TRAVEL Thinking Outside the Gift Box

December 14, 2018
From the desk of Barbara Perriello

A Gift to Treasure for a Lifetime
One of the most unique presents you can give

Dear Reader,
Finding someone… anyone… the perfect present is hard. I love picking out gifts for friends and family but I’m often left with a nagging feeling… did I choose the right thing?
Giving the gift of travel can make your holiday shopping easier and so much more meaningful…
And there’s a big, wide world out there… ready and waiting for you to share its beauty and wonder with that special someone.
My grandmother Bess loved discovering new places. She always told me to travel the world as much as possible and not wait until I was too old to enjoy it.
Her advice changed my life and laid out a path for my future.
When I was in high school and heading to Paris for the first time, she was right there at the airport for my send-off. I haven’t stopped traveling since!
Giving someone the gift of travel is one of the most wonderful things you can do. That gift will change their lives forever. And precious memories of their journey will always remind them of you.
Deciding how to gift someone with travel requires considerably more thought than buying a tie or a bathrobe. And the first thing you’ll need to do is consult with the recipient.
Yes, this spoils the surprise but ensures that your gift will be treasured.
Working with a travel professional can help you craft the trip of a lifetime… smooth your way through the details… and get the most out of your budget.
That’s where I come in.
Hi… my name is Barbara Perriello and I’m the Director of Opportunity Travel.
Many folks think of us as conference organizers or leading investment tours but in fact, we do quite a bit more than that. Since 1998, we’ve been creating customized luxury travel experiences for individuals and families.
With that in mind… I’d like to help you create that ideal gift of adventure. Let me begin with a few ideas to inspire you…
Make a dream come true

Cross one off their bucket list with an “off-the-map” adventure… like exploring the “coolest” continent on Earth – Antarctica! Tourism there is on the rise and unique experiences, like polar snorkeling with penguins and seals, watching a once-in-a-lifetime solar eclipse (December 4, 2021), running a marathon (sells out three years in advance), and many more thrilling adventures await the intrepid traveler.
Another ‘do before I die’ favorite is an all-star safari adventure that sets down in Africa’s unforgettable parks and reserves. Luxury-class travelers can expect to be pampered and cared for every step of the way, dining privately in wild locations, exploring private game reserves all while staying in elegant private lodges.
Think India – a land of remarkable diversity. Not the chaotic huge cities but instead the tropical, south-western coastline of Kerala. Gorgeous beaches… scenic backwaters… tea, coffee and spice plantations in the mountains… lush forests… national parks home to elephants, tigers and monkeys – all can be found in this laid-back atmosphere.

Who doesn’t love the Caribbean?

Vivid blues and greens graced with sugar sand beaches… shimmering reefs and high mountain peaks… salsa, reggae and pirate hideouts. The Caribbean has it all and so much more. Accommodations range from high-rise hotels on the world’s top beaches to pampered luxury in secluded boutique villas… and everything in between. Everyone on your gift list dreams about these fabulous island destinations.

Experience the romance of the rails – from natural wonders to ancient kingdoms

South America’s first luxury sleeper train glides from Cusco, the capital of the Inca Empire, to Machu Picchu and across the lofty Andean plains to the white city of Arequipa. Richly appointed 1920s Pullman-style carriages capture the glamour of a bygone world with elegance and old-fashioned charm, and take in Peru’s spectacular highlights en route.
Or travel by train in exquisite style through the heart of Southeast Asia along the legendary Silk Road. From stunning architecture to wondrous landscapes, it’s a remarkable adventure through the ancient world, following in the footsteps of Alexander the Great and Marco Polo.

Show your spouse or parents how special they are

Treat them to a picture-perfect second honeymoon steeped in sumptuous luxury and balmy trade winds. Sail off to Tahiti, French Polynesia and the South Pacific… where palm-fringed islands, turquoise lagoons, snow-white beaches and verdant tropical foliage are just the beginning. Beneath the ocean’s surface is another world, equally rich, with myriad marine life and colorful coral reefs.
“Glamping” – short for glamorous camping – is a popular and growing travel trend in the U.S. and around the world. It pairs destinations with the intimacy of camping and five-star luxury – the ultimate realization of ‘disconnect to reconnect’.

Take luxury to another dimension

Immerse them in nature with eco-luxury in the treetops. A rejuvenating spa and wellness center await… situated in a lush tropical forest offering dramatic panoramas of the Pacific coastline and its own private beach cove. World-class surfing is at the doorstep… along with endless options for a tranquil, unplugged getaway.

Family vacations with real life experiences

What greater gift than opening up the world to your children? My three kids have been traveling with me since they were little more than babies. Their first trip outside the U.S. took us to Belize when they were ages three, five and seven. Next we went to Honduras, Portugal, Spain and Canada before my oldest hit ten. Today, as adults they have great memories and a broader, more realistic view of the world.
After a trip to Roatan where my son Nick played soccer with local kids, he returned home and immediately packed up all the old cleats in our garage for me to take on my next trip… because most of the kids there didn’t have shoes.
The lessons learned are priceless.

To give you an idea of just how special the gift of travel can be, listen to what some of our clients have told us…

We have to thank Barb Perriello for so many things! She makes traveling a pleasure with her professionalism mixed with her heart-and-soul love of what she does. She is so excited in sharing her vast knowledge and experience for making accommodations and details, and every aspect of a trip the very best possible memory for all! She has planned several trips for my husband and me, and also two family trips for us.
The trip to China with son, daughter-in-law, and four grandsons was absolutely perfect in every way, from flights, hotels and guide to activities that even teenage boys enjoyed! We actually made a lifetime friend of the contact in China. Wouldn’t think of using anyone other than Barb to plan a trip for me!  —J. Jackson

Marc Lichtenfeld, The Oxford Club’s Chief Income Strategist sent us this wonderful note following his family vacation in Italy…

Barb created the trip of a lifetime for my family and me. Our two weeks in Italy were fantastic. Barb was easy to work with, listening to what we wanted and made great suggestions. We wanted to take a trip that my kids would remember for the rest of their lives. Mission accomplished. Thanks for creating amazing memories, Barb!

Bill A. is a life-long world traveler with a keen appreciation for beautiful hotels and architecture, fine dining, great service… and those exceptional experiences that seasoned journeyers treasure.
He was looking for a unique experience with his son. Bill also wanted to include Buenos Aires (on his list of top five cities in the world) and their shared passion for horses and skiing… and in August to boot!

“Barbara Perriello has a way of arranging trips that make it personal and yet loads of fun and adventure. With her guidance, you get the best picture of where you’re visiting. We had the most wonderful trip. Her guides met us at every destination, and cared for us in every way. Our city hotels were the best and one in fact, was in my opinion the most beautiful in the world.
We visited a hacienda on the Pampas and it was such fun being real-life Argentine “gauchos” for a few days. We also went skiing at Ushaia in the Patagonia region, at the southernmost tip of South America… literally the “end of the world”.

It’s totally appropriate to gift yourself too!
From beginning to end, Opportunity Travel will work with you to create that perfect gift… or your own fantasy adventure.
Specially-trained guides, private transfers, fascinating tours and a comfortable bed at the end of the day are all part of our special brand of service.
Be Inspired! Change someone’s life this holiday season by giving them an opportunity to see the world…
And why not join them yourself?
Call us today and let us help you plan your travel gift… an experience that will last a lifetime.
Wishing you peace and joy this holiday season,
Cordially,

Barbara Perriello, Director
Opportunity Travel
P.S. Opportunity Travel has two exclusive tours coming up…
2019 Southeast Asia Tour 
Chiang Mai, Thailand – Penang, Malaysia
February 24 – March 3, 2019
You’re invited to join us in this exciting, welcoming part of the world. Over the course of eight fun-filled daysyou’ll get the chance to explore some of Southeast Asia’s most alluring attractions while enjoying exotic scenery, great food and luxurious, world-class accommodations. Together we’ll experience Chiang Mai, Thailand – “The Rose of the North” with its rich cultural history, incredible culinary scene, and gorgeous surrounding countryside. From there we’ll venture down to Penang, Malaysia – “The Jewel of the Orient” and explore its magical blend of tropical scenery, the awe-inspiring sights, dining on tasty and exotic local cuisine, and stay at one of Malaysia’s most luxurious beachfront resorts.
Get the details here.
Opportunity Travel’s South America Expedition 
Uruguay & Argentina – November 2019
One of our most popular tours! Come November 2019 and once again we’ll be heading south to Uruguay and Argentina where we’ll show you so much more than the wonders these countries are known for. We’d love to have you join us!
Tantalizing wines, fabulous farm to table dining and sensuous tango are just a small snippet of what we have in store. Add to that our unique brand of personal service, luxury hotels and “boots on the ground” experts. Find out for yourself why our past attendees return again and again.
P.P.S. Will you be joining us next July in Vancouver for the Sprott Natural Resource Symposium 2019? Let me help you plan a pre or post-conference tour… an unforgettable summer vacation in this world-class city and recreation area. Now’s the time to book Alaska cruises or a Canadian Rockies train trip to must-see destinations like Banff, Jasper National Park, and Lake Louise. These travel hot spots fill up quickly so it’s a good idea to make your reservations well in advance.
For more information about any of our events or expeditions, simply give us a call right now at 1-800-926-6575 or +561-243-6276, OR send us an email at info@opportunity-travel.com
Where We’re Headed Next


Why Retire in Panama?

Can you retire where you live now on $1,500 – $2,000 a month? You can easily do that in Panama, where most everything—from rent to health insurance and medical care—costs far less than you’re likely paying now. And you’ll love the climate. Discover how to live the retirement of your dreams in Panama.
Get more details here…


Join us in Bangkok from 21-23 February and put your overseas dream on the fast track. Give us two-and-a-half days…and we’ll give you everything you need to put yourself on the path to the good life. Reserve your place now and save $200.
Go here for the full details

Opportunity Travel’s
Southeast Asia Tour to Thailand & Malaysia
February 24-March 3, 2019

Post-Tour Following International Living’s
2019 Fast Track Your Retirement Overseas Conference
Bangkok, Thailand – February 21-23

Since we’ll be right here in beautiful Bangkok for the IL conference, we’ve designed an exclusive, fun-filled post conference tour that’s a first class, luxurious journey. You’ll get a chance to see firsthand why travelers and expats alike simply love everything about Thailand and Malaysia. Get full details about this exclusive expedition and guarantee yourself a spot – but you’ll have to act fast, only 20 spaces are available. Call me at 800 926 6575 or +561 243 6276, or email at info@opportunity-travel.com.


The Oxford Club’s 21st Annual Investment U Conference
March 28-31, 2019 – The Vinoy Renaissance Resort


Every spring, The Oxford Club hosts its biggest event of the year –the Annual Investment U Conference. For this signature event, we spare no expense to bring you the latest and greatest from the investing world as well as a real no-nonsense look into the markets.
Throughout this event, you’ll discover dozens of profitable ideas from our team of expert analysts, as well as investment insights from more than two dozen of the industry’s top economists and investment minds.
Join us as we celebrate more than two decades of success and tremendous profit opportunities brought to life through this premier event. Year-after-year – we’ve seen the ideas shared here soar to great heights and we are thrilled to see what’s in store next.
For more information on this event, and to reserve your spot today, click hereIf you have any questions about the event, please email us at voyagerclub@oxfordclub.com or call us at +443.708.9411.


Money Map Press presents…

The Black Diamond Conference
Delray Beach Marriott – April 4-6, 2019

Now Accepting Registrations – Act Now & Save

Our next Money Map Press event will take place at one of the most beautiful oceanfront hotels in Florida… the Delray Beach Marriot. Escape with us to Florida’s sun-drenched beaches and take in all that this hip and happening town has to offer.
Money Map’s gurus will share all the tools, techniques and strategies that made them fortunes… and they’ll show you how to attain “the good life” for yourself. Right now for a very limited time, you have the opportunity to experience this exclusive event at a discounted rate.
Go here for full details and registration


Sprott Natural Resource Symposium 2019
Fairmont Hotel Vancouver – July 30-August 2, 2019

Plan your 2019 vacation now – we’ll be happy to help you!
Get the lowest price possible for this popular, long-running conference that just keeps getting better year after year!
Join our chairman and personal host, Rick Rule in the heart of downtown Vancouver for this sell-out event. It’s not too soon to claim your Advance Pricing discount!
Click here for details. You really can’t beat this offer!
For more information about any of these events or expeditions, simply give us a call right now at 800 926 6575 or 561 243 6276, OR send us an email at info@opportunity-travel.com


Uruguay & Argentina – November 2019
Opportunity Travel’s South America Expedition
Call now to get your name on the list!

One of our most popular tours! Come November 2019 and once again we’ll be heading south to Uruguay and Argentina where we’ll show you so much more than the wonders these countries are known for. We’d love to have you join us!
Tantalizing wines, fabulous farm to table dining and sensuous tango are just a small snippet of what we have in store. Add to that our unique brand of personal service, luxury hotels and “boots on the ground” experts. Find out for yourself why our past attendees return again and again.
Call now to get your name on the list – 1-800-926-6575 or +561-243-6276OR send us an email at info@opportunity-travel.com


For more information about our tours or conferences, please contact, Barbara Perriello or Michelle Sedita at Opportunity Travel by email at info@opportunity-travel.com or by phone at +561.243.6276 or toll-free at +800.926.6575.

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RICK RULE Investing “Know-Who” with Ross Beaty, Part 2 NEW ARTICLE

Rick Rule Investing “Know-Who” with Ross Beaty, Part 2

Dec 13, 2018 08:51 pm
By Remy Blaire
 

Ross Beaty, Chairman of Equinox Gold

 
Gold is being watched like a hawk as volatility extends its topsy-turvy ride through the global equity markets. The price action for the precious metal has been lackluster despite the wild swings in the stock market. With gold slowly edging higher but not advancing at a rapid pace, the safe-haven metal appears range-bound for now.
The steady upward trend in equity prices came to a screeching halt in 2018 as asset prices stumbled and wavered throughout the quarters. Triple-digit moves to the upside and downside ceased to cause euphoria or illicit excessive hand wringing from investors.
The big question remains: has the next bull cycle for gold kicked off? If you ask Rick Rule, president & CEO of Sprott U.S. Holdings or established resource investor, Ross Beaty, they would emphasize the importance of recognizing the bottom of the market rather than fretting over the timing of the next bull cycle.
Rule and Beaty are natural resource investors with experience in bull and bear markets. In Part 1 of ‘Rick Rule Investing “Know-Who” with Ross Beaty,’ they discussed past successes and challenges. In Part 2 of Rule’s “Know Who” series, Beaty retraces his investments in companies within the resources sector and how he found his proverbial pot of gold.


Rick Rule: Over the course of 30 years, you’ve gone from a smart, young, naïve, wet-behind-the-ears geologist to a tier 1 promoter who has built several world class companies. You tried something unusual which was retirement. I’m going to suggest that you failed and that you just flat failed.
Ross Beaty: I didn’t try it very well.
Rick Rule: I remember you telling me that you were retiring and I was polite enough that I didn’t want to point out the error of your ways.
So let’s talk about what you’re doing now. To an outside observer it would appear that you have a particular fondness for gold. Is there something about gold as a commodity that intrigues you? Is there something about the structure of the gold mining industry that you think that you can improve on? Or is it not gold?
Ross Beaty: You’ll recall that in 2008, I took a break from the mining game and I tried my hand at building a clean energy company. I’m an environmentalist and I wanted to do something for the climate, the carbon in the atmosphere, and I decided I could build this clean energy company focused on geothermal. That didn’t work out so well, so I went into wind, hydro and solar and that has worked out pretty well. I ultimately built that company up to a point and I just sold it this year in February.

So that was quite a segue and a lot of hard work and I was toying with a few things. But really, back in around 2014 or so, I really fell in love with gold again. I fell in love with gold as an investment. So I said gold has come down from $1,900 bucks to — I forget what it was — almost $1,000 I think at that point, [a] big, big drop. And that’s not a drop that I felt was sustainable.

While that was happening, the debt pile was getting bigger and bigger, quantitative easing was going looney in the U.S.
Rick Rule: We’re talking about the government debt?

Ross Beaty: Government debt, personal debt, all kinds of debt. Debt was just being piled on. Zero interest was making people drunk and I felt that would be good for gold ultimately. At the same time, companies just sort of stopped looking for gold. There was a lot that had been discovered with the gold run in 1900. There were a lot of deposits that were outlined — a lot of distressed things were in a bear market in 2014. Quite significant bear market in 2015. And it was just a good buying opportunity.

I was an investor in those years because I was still doing my clean energy company. That was my main business. That was Alterra Power Corp. But as an investor, I had some capital and I bought a whole bunch of big lumpy positions in 10 or 12 companies — 5%, 10%, 20% stakes, 25% stakes. The bigger ones were like Dalradian Resources Inc. and Kaminak Gold Corporation, lots of different companies.
With our own group, we sold Lumina Copper Corp. in 2014 to First Quantum Minerals Ltd. for about a half a billion dollars. Well, I had this fabulous team of guys. I lost a couple. We lost our lawyer. We lost our kind-of-genius communicator, David Strang. He went off to try to run a fund. But we still had a core team and I wanted to keep them going. I didn’t want to be really directing traffic because I was working on my energy company.
So I helped them organize the acquisition of a couple of properties in Ecuador under the name Lumina Gold Corp. So we took the same kind of brand we had. It was a good brand. We met a lot of people. We started this junior based on a couple of deposits that we acquired in Ecuador. When everybody thought Ecuador was a pariah — we didn’t. We knew it was coming out of the period when the president didn’t like mining so he discouraged mining and everybody left. The fact is it’s a great gold and copper province. It had great opportunities.
We went down there and picked a bunch of properties, flung them into a brand new company called Lumina Gold. Spent years working away during the bear market of 2015. And in 2016, 2017, we built that up to the point that it’s kind of going to be like the Lumina Copper story I think — which is a strategy of buying something cheaply, at the bottom of the cycle. When the cycle turns, we do more exploration. We prove a large deposit and we ultimately sell. So all we missed so far is that gold prices are pretty crappy. It has not done very well.
Rick Rule: Past is prologue. The same thing happened in the silver business.

Ross Beaty: I’m just confident things are going to turn. And so when they turn, you want to be ready with a very well-positioned, very leveraged vehicle.

So now, we have a spin-off vehicle called Luminex. And the main Lumina Gold company has this fabulous gold-copper porphyry in Ecuador that I’m absolutely certain we’re going to be able to sell at a significantly higher price than its market cap is today.

Sometime over the next year or so, it’s going to be of much more value. Of course, if the gold price goes up in the meantime (but even if it doesn’t), I think it has fundamental value — that should give us a pretty darn good value — to one of the major companies that need these kind of things. It’s 8.8 million ounces today. It’s going to be way, way bigger (I think) by this time next year because we’re drilling an area that we think is very fertile so it’s going to be bigger. I can’t say how much. We already know [that] it’s economic, what we already have. It’s under preliminary economic assessment, that shows a net present value of … I can’t remember what it is. It almost doesn’t matter because I know if it’s going to get much bigger. It’s hundreds of millions.

And it’s the right kind of thing for major companies. It’s going to produce 400,000 or 500,000 ounces a year for 20 years. That’s exactly what they’re looking for. Those things are rare and we have one. We know it’s going to have value to somebody at some point.
So that’s our company. Meanwhile the spinoff vehicle, the Luminex Gold or Luminex Resources, I should say is a $40 million market cap. It has probably got 20 properties in it. It’s a prospect generator. We’ve already done one deal with First Quantum that will be exploring some properties with their money. We’re going to do with Anglo America and on other properties that they will be exploring with their money. We have a potential third deal in the works. We have a bunch of gold in the company as well. I’m very optimistic we’re going to be able to do this again and again.
Rick Rule: Ecuador-focused.
Ross Beaty: Ecuador-focused right now. But mostly, value-focused. We’re not particularly focused on a country deal. We’re looking for just — loading up with good value and waiting for the market to turn and in the meantime, adding value in a traditional way.
So we have that happening. And we have — so that’s all going on separately while — I ultimately was working on my energy company. And in 2017… late 2017, I got an offer I couldn’t turn down. Sold the energy company. That’s really when I decided to go into gold in a big way and kind of book-end my career with a return to the first gold company which I had in 2000, Equinox Resources, which I had from 1985 to 1994.
Rick Rule: So let’s talk about [your new company] Equinox Gold. Tell us what the value proposition is here. Tell us what you’re trying to accomplish. Equinox Gold now is — the idea here, as I understand it, is to build a large intermediate gold producer.

Ross Beaty: The right word is to build a large gold producer. Yeah, it’s about trying to build a Pan American Silver of gold. I really love gold. I think the timing is good to build a gold producer. Right now, the prospect for me is to use the lessons I’ve learned in the last thirty years of running public companies in the resource space, [that] would allow us to build a really big vehicle very quickly right now. The conditions are just right (for right now). There are a lot of good opportunities. They are distressed. It’s a buyer’s market right now and we’re buyers. We have access to capital that a lot of companies don’t have.

So really the philosophy of Equinox Gold is to build a really big producing gold company as quickly as we can and get just massive leverage to gold for the “happy time” when the gold market turns and it becomes a bull market again. With a rise in price that will float our ship and become an industry leader in terms of return to shareholders, in terms of income statement and ultimately dividends.
So what does intermediate mean? We’re going to be probably producing somewhere between 300,000 and 600,000 ounces in the next few years.
Rick Rule: Let’s talk briefly about the constituent parts beginning with that initial flagship asset, the Brazilian asset [with a] tarnished past. Tell us what you see in it and how you’ll take it from here to there.
Ross Beaty: The Brazilian asset is one of those opportunities that you could acquire … when they do have some tarnish … very cheaply, which is what we did. Putting this company together with one Brazilian asset, one California asset and some cash. That’s what the three-way merger that we did in December was when we started Equinox Gold. And the first thing we did is we financed and started construction on this one mine that was going to rebuild what was already a producing mine, and fix the mistakes that were made then.
We’re going to start that up early in 2019 and we think it’s going to be a very successful mine. We’ve corrected the mistakes and we’ve re-engineered the package. The royalty has been changed. It has got no significant — no historic debt in any way. We put some new debt on it but it should generate a pretty [good] return to us … it’s a good cornerstone asset in what I hope will be a multi-asset diversified gold-producing company with multiple mines.
Rick Rule: You now have, well, two California assets. But tell us about those two.
Ross Beaty: Sure. With the merger [in December last year] … we put together … the Brazilian asset, the Aurizona mine and then one in California called Castle Mountain that was in the hands of a company called New Castle. So we [now] own one hundred percent of Castle Mountain.
I liked Castle Mountain in that it has humongous gold resource. It’s about 6 million-ounce gold resources. It is an old producer. It produced for many years in the ‘90s. And I know it well, I visited them. The same partner who operated that mine is operating our gold mine in California, the American Girl Mine.
So we know the deposit type. We know the size. It’s gigantic. It has existing permits. Grandfathered permits for a rather small scale operation of around 50,000 ounces a year that we’re planning to start going in 2020, about a year and a quarter from now. A very small capital cost to get that going. That’s what we call phase 1. Rather low risk, good size, should generate some decent cash flow, very easy to finance.

But the real story there is the larger 200,000 ounces a year gold mine that is going to take some permitting work. And we’re very active on that. It has been in permitting now for several years. And that is an operation that we hope we will be able to finance and build in about three years. That’s what we’ll operate at Castle Mountain, around 200,000 ounces a year. The pre-feasibility study we finished this year in June had I think a 16-year mine life on that. Wide open so it has got lots and lots of room to growth.

Those things are rare deposits. Those long life, large producers that can operate with low cash [cost] in a safe jurisdiction once permitted in an area that I’ve worked for much of my career in California and it has been a successful place to work.
So with those two operations, 140,000 ounces from Brazil, a couple of hundred thousand ounces from the Castle Mountain deposit, what we wanted to do is to add another deposit to bulk the company up again while times are tough, things are cheap, and we ended up — we’ve been trying to buy a producing mine all year this year. We’ve offered on several projects. Didn’t get the deal. We weren’t prepared to pay a high price.
Finally, we were able to reach an agreement with New Gold Inc. to buy their interest, one hundred percent in the Mesquite Mine. And that deal closed at the end of October. And that gave us the third plank or the third leg of the stool, one Brazil, one Castle Mountain in California, and then just South of Castle Mountain, the big-producing Mesquite Mine that runs at about 140,000 ounces a year. We own a hundred percent of that. We got immediate cash flow. Great income statement. And then add Aurizona [next year], add Castle Mountain [in 2020].
So when I say we want to become an intermediate producer we already are there or we will be there in a few months when we get Aurizona going.
From that point, it’s really how much bigger can we get? I am going to give this company a hard bit of work for a few more years, really trying to make it into something big and important as a true legacy company.
At this moment, we have reserves of 5 or 6 million ounces, resources of 8 or 9 million ounces. We will have production of close to 300,000 ounces by the end of next year. That is a great start after one year to have that as kind of the first year result in this company.

And beyond this, all I can say is just watch us. We’re going to keep seeking good acquisitions. We may not do any if we can’t get the right price. We are not known as aggressive deal makers. We may be aggressive but we’re not drunken sailors. We treat the money like it’s actually our own. And in most cases, it is our own because we’re all investors in the company.

So, if we can find a creative deal, we’re going to keep adding. And ultimately, build something that we can all be really proud of as an industry leader in gold.
Rick Rule: Now, the money question, Ross. You always lead me to the right question so I lead you to the right conclusions. “Treat the money like it’s our own.” Lumina is completing a fairly good size financing which Sprott has had the pleasure of participating in a major way. As did you.
Perhaps you could talk about that fact that you eat your own cooking: a) because it tastes good of course, but b) because it’s the right thing to do.  How much money (roughly) do you have involved now?
Ross Beaty: In Equinox? Well, actually, I have a lot of money in both. Well, going back to the Lumina Copper companies, basically, I own 25% of all the companies and I invested in every single financing and I bought more stock and I only sold it once. I only sold when there was a happy ending.
Lumina Gold: I’m about 15% shareholder and I will continue to hold that in every financing we do and there will be one time I sell, when everybody sells, because I expect that will be sold in the not too distant future.
And moving on to Equinox, of course, I started Equinox with a cash shell called Anfield that I held about 30% or something like that. I had invested tens of millions already in that company. And then I added another — I think this year, I’ve invested 20 or 30, maybe 30 or 40 million. I mean fairly a big chunk of money.

I’ve been very lucky I’ve done quite well in the business. I have a lot more capital than I ever had before. And I’m able to fund these companies to at least prorate the financing that I already hold. I hold about 12% of Equinox Gold. And I’ll keep funding at least that share.

But you’re right. [In] every single deal we do, I will be a cornerstone shareholder. In fact, we have a number of great cornerstone shareholders in Equinox Gold, and that makes it one of the strengths of the company. Richard Warke has come up with some massive successes — a brilliant, brilliant man, brilliant financier, and company builder. He is a major shareholder of Equinox. He participates. Sprott participates. You guys are big backers. We’re very proud of that.
Lukas Lundin is a shareholder. He is always supporting us. We’ve got some great, great shareholders. And that’s why in this $75 million deal we just did [to buy the Mesquite Mine], we were able to put in most of the money with friends and family of the company in a tough, tough market.
Rick Rule: Ross, I’d like to thank you for 40 years of friendship and profits. I have millions of reasons personally to wish you every success in Lumina and Equinox. Thank you for your time and attention.
Ross Beaty: Thanks, Rick. You’ve been a big part of the journey. It has been a great, great ride. Thank you for all of your friendship and support over the years. You’ve been in every single one of my deals. I’m very happy to say that and it has been a lot of fun.
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Precious Metals

MILES FRANKLIN Markets Pricing In More Dovish Federal Reserve

Chris Marcus-Contributing Writer For Miles Franklin
Markets Pricing In More Dovish Federal Reserve
Written by Chris Marcus of Miles Franklin
With the Federal Reserve set to hold its last policy meeting of the year next week, the speculation has been that it will slow down the pace of interest rate increases. With the financial markets now pricing in an even higher probability that the Fed might even pause at the December meeting.
“Investors currently see a 73.2% chance of a rate hike following the December Fed meeting, according to the CME. Just one week ago, the probability for a rate hike on December 19 was at 84.4%.”
While a hike next week is still more likely than not, it is interesting to see the change in pricing. With the markets also reflecting a less aggressive than previously expected pace for 2019.
Although consensus among economists remains in favor for a rate hike in December, some are beginning to lower estimates for 2019.
Goldman Sachs initially forecasted four rate hikes next year and still estimated that there is a 90% probability for a rate hike in this month, but now predicts a less than 50% chance of a rate increase in March.
So with increasing uncertainty surrounding the Fed’s glacial tightening path, what can we count on from the Fed next week?
In reality, whether the Fed hikes or pauses, it has to on some level be realizing the corner that it long ago backed itself into. And that there is no easy way out now.
At this point, the Fed can continue to raise rates and watch the stock, bond, and real estate markets continue to deteriorate. Or it can resort back to it’s long-held strategy of running the printing presses to once again try and cover up the malinvestment.
Giving the commentary out of the Fed over the past few weeks, it seems like it will choose the latter. Which is hardly surprising. And interesting in the sense that the markets are beginning to price it in.
That gold and silver have not moved substantially on this news is likely a reflection of the manipulation that has been documented in court, yet continues to occur. Which does not mean that it will go on forever. But rather for those looking to invest, the fact that more money printing is on the way, while that has yet to be reflected in the price of precious metals, just makes the idea of investing in gold and silver all the more appealing.
The last decade of the financial markets has created a challenging environment for investors. Where many correctly grasp what’s going on and place trades accordingly, only to not see the prices react.
Yet as the collapse of the subprime bubble demonstrated over a decade ago, while sometimes the markets can seem slow in reacting, when they do, they eventually account for all of these developments that have not been reflected in the price.
So if you’re watching the stock market volatility and thinking about selling before the bubble collapses further, and looking for an asset class that still allows you to buy at low levels, look no further than gold and silver.
P.S. If you have any questions about this article, what’s happening with the Fed, or the precious metals market, you’re welcome as always to email me here.
-To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).
-Or get Miles Franklin’s detailed report on why the price of silver is set to explode.
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Energy

DNI Update – Environmental Licenses, Resource Study and Financing

TORONTO, ON / ACCESSWIRE / December 14, 2018 / DNI Metals Inc. (CSE: DNI; OTC PINK: DMNKF) (“DNI” or the “Company”),

Environmental Licenses

DNI and the Office National pour l’Environnement Madagascar, (”ONE”), completed two days of technical reviews at Vohitsara and Marofody properties on December 6 and 7.

As per DNI’s press releases on November 8 and 20, 2018 the ONE must complete two site visits, a Technical review, and a Public consultation.

The ONE group comprised of a panel of four people, from the following government offices;

  1. ONE coordinator
  2. Ministry of Mines
  3. Ministry of Environment
  4. Bureau des Directions Régionales de la Population (DRPPSPF)

As part of the technical review, the ONE will send an official letter to DNI, asking for clarity on certain items. DNI will respond quickly and complete this process before year end or early in 2019.

The Public consultation will be a two-day process, and will include three local community meetings comprised of one district meeting, one Vohitsara community meeting, and one Marofody community meeting. These meetings will be scheduled for mid-January.

As part of the technical review, DNI and the ONE met with the Mayor of the district, and the presidents of Vohitsara and Marofody.

DNI has entered into property purchase negotiations with selected Vohitsara land stakeholders required for mine development. Ninety-Nine percent of the people in the area want to see DNI develop a mine.

Resource Estimate

DNI has engaged Micon to complete its maiden resource estimate for the Vohitsara Graphite property. A site visit is being scheduled for early January, with a resource estimate completed around the end of January to mid-February.

Financing

A non‑brokered private placement financing to secure up to $1,000,000 of financing for its projects and operations by placement of up 1,000 convertible debentures (”Convertible Debentures”) with a face value of $1,000 per Convertible Debenture pursuant to a subscription agreement (the “Subscription Agreement“)

Each Convertible Debenture shall have the following terms:

  1. Face value $1,000
  2. Coupon 12%
  3. Term 365 days
  4. Conversion price $.08 (each $1,000 face value debentures converts to 12,500 units (”Units”))
  5. Each Unit shall consist of one common share of the Company (a ”Common Share”) and a ½ warrant to purchase a common share of the Company (each full warrant, a ”Warrant”)
  6. If the debenture holder converts prior to maturity, the coupon payment will be forfeited.
  7. Upon Maturity, debenture holders have the following options:

Warrant Terms

Each Warrant entitles the bearer to purchase one common share of the Company ( a ”Warrant Common Share”) at an exercise price of C$.20 per share until July 27, 2022. If the closing market price of the common shares of the Company on the Canadian Securities Exchange is equal to or greater than, $0.30 per common share for a period of 30 consecutive trading days, or upon the public announcement of a decision by the Company’s board of directors to build a commercial processing plant capable of producing at least 10,000 metric tonnes per year of graphite, then the Company may accelerate the expiry date of the Warrants by delivering a notice (the “Acceleration Notice“) to the Warrant holder notifying such Warrant holder that the Warrants must be exercised within thirty (30) calendar days from the date of the Acceleration Notice, otherwise the Warrants will expire at 4:00 p.m. (Toronto time) on the thirtieth (30th) calendar day after the date of Acceleration Notice.

Annual Meeting

DNI has set its annual and special meeting date for December 20, 2018.

The Record date was November 19, 2018.

Resolutions will include:

  1. Election of Directors
  2. Appointment of Auditors
  3. Changing Financial Year End to December 31, to match the Malagasy and Mauritian subsidiary companies.
  4. Continuing DNI as a Canadian company under the Canada Business Corporations Act, from its current domicile as a Quebec company.

Debt Settlement

DNI has issued 1,400,000 shares to settle debts of $70,000

DNI – CSE

DMNKF – OTC

Issued: 122,098,403

For further information, contact:

DNI Metals Inc. – Dan Weir, CEO 416-595-1195

DanWeir@dnimetals.com

Also visit www.dnimetals.com

Forward-looking Statements

This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as ”may”, ”will”, ”could”, ”should”, ”would”, ”likely”, “possible”, ”expect”, ”intend”, ”estimate”, ”anticipate”, ”believe”, ”plan”, ”objective”, ”hope” and ”continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under ”Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: DNI Metals