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BOB MORIARTY | Is Novo about to snatch defeat from the jaws of victory?

Post author By admin
Post date November 19, 2018

Is Novo about to snatch defeat from the jaws of victory?

Bob Moriarty
Archives
Nov 19, 2018

“It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena; whose face is marred by the dust and sweat and blood; who strives valiantly; who errs and comes short again and again, because there is no effort without error or shortcoming; who knows the great enthusiasms, the great devotions and spends himself in a worthy cause; who at the best, knows in the end the triumph of high achievement, and who, at worst, if he fails, at least fails while daring greatly; so that his place shall never be with those cold and timid souls who know neither victory or defeat.” Teddy Roosevelt

Novo Resource shares hit a high of $8.83 in October of 2017, up from $.75 a share on April 1, 2017 and have since declined to a recent low of $1.89. Disappointed shareholders who managed to buy at high prices are now screaming in anger looking to burn someone at the stake. Anyone would do.
After all, when share prices go up, it is always because of the brilliance of the investor and when share prices go down, it must be because of incompetence of management.
I’m writing this piece for the attention of existing Novo shareholders so I will skip a lot of the background information I usually insert to fill in the blanks. I am assuming present stockowners are familiar with the Karratha gold rush and the general Pilbara gold story that Novo has been part of for nine years.
I want to cover all of the major problems that have come to light and to try to explain why they happened and how they have been addressed.
The first giant problem literally goes back to the two high-grade gold samples announced on August 8^th, 2017 that lit the fuse for the explosion in the price of Novo that took the value for shares to a record level in less than two months.
As discussed in Novo’s news release dated July 12, 2017, this sample originates from the uppermost horizon of an 11-meter thick sequence of mineralized conglomerate beds.
Results from this testwork are encouraging at several levels.

The Steinert XSS T sorting machine proved highly efficient at sorting out coarse gold-bearing rock particles. Although the Sorted Concentrate represents only 2% of the overall sample weight, it contains about 82.6% of gold. Because this machine proved practical and efficient, Novo sees it as a means of assisting determination of grade of this very unusual mineralization. Given this machine can operate at about 48 tonnes per hour, Novo also considers it potentially viable for future processing applications.
Although the vast majority of gold resides in the coarse fraction, a significant fine-grained gold component is evident. Although more work is needed to further quantify this fine-grained gold component and its distribution, it may prove meaningful when it comes time to demonstrate continuity and grade of this very unusual deposit.
Novo considers the calculated head grade of subsamples #1 and #2, 87.76 and 46.14 gpt Au respectively, very encouraging. The weighted average grade of these two subsamples, 67.08 gpt Au, which equates to 2.16 oz per tonne.

By accident that press release made a whole series of assumptions many of which proved dead wrong over time. There was one sample taken from Purdy’s Reward that was split and sent to the lab for assay. One half of the split was 87.76 g/t gold, the other 46.14 g/t gold. Call them 3 ounce and 1.5-ounce gold for simplicity.
The release says the samples came from the uppermost horizon of an eleven-meter sequence of mineralized conglomerate and that there was a significant fine grain component of the gold.
When the local small-scale miners were using metal detectors to find gold, they would scrape off an area of conglomerate until they started getting results. Then they would pry out each nugget by use of hand tools.
Whoever took the samples probably did the same thing and used a metal detector to find a sweet spot to take the samples. While the press release says “mineralized conglomerate was collected from a 2×2 meter exposure of bedrock at the bottom of a half-meter deep trench.” That does not mean the sample was 2x2x.5. The samples were only about 270 kilos each so the original sample had to be more like .7 meters by .7 meters by 40 cm.
Because those samples were almost certainly by accident cherry picked they do demonstrate something vital. Many investors believed they were representative of the entire conglomerate sequence and obviously high grade. Even I believed the grade was representative and now we know it clearly was not. And while everyone wanted to believe the gold was at the top or throughout the conglomerate sequence, we now understand that it is at the very bottom of the gravel reef.
On October 3, 2017, I said, “Where is the richest gold? Right! It’s at the very bottom of the gravel right on and in the bedrock.”
While the release was wrong, dead wrong, about where the gold was, the sample did show that if you could locate the 40-50 cm pay zone near the bottom of the conglomerate, you would find the richest gold. Keep that in mind because while Quinton Hennigh managed to solve a puzzle that no one else had in 130 years of small-scale mining not all the issues have been sorted just yet.
Another assumption that was made that proved to be a giant problem had to do with the issue of the small gold component. While it does exist in the samples taken from Purdy’s and Comet Well, it all seems to be associated with the nuggets. What it means is that when you have small gold, you can drill and get representative samples. The gold in the Carlin Trend is microscopic but easy to measure. As I have maintained all along, you cannot measure the nuggety gold, you can only mine it. And since the small gold all seems related to the nuggets, you can’t test this system by drilling.
The Steinert sorting machine seemed to work at first. Novo took the two samples and ran them through the machine. The sorted concentrate took the volume of the material down by 98% and captured 82.6% of the gold. That was a giant success and created a basis for profitably mining the deposit. If the machine was used correctly.
Someone made the decision to crush subsequent samples to 2 mm size and fed the material through the machine. The rock size was far too small and the fine rocks literally blanked out the ability of the machine to X-Ray. So instead of reducing the material by 98% it didn’t reduce it by much at all. The first machine belonged to another company and the tests after that were run through another machine. Everyone assumed the machine wasn’t calibrated correctly and that’s why it didn’t work but in fact months later someone realized the machine isn’t designed to work with small material.
It wasn’t the machine settings that were wrong; it was the crush size of the rock. Naturally by then all of the samples taken had been crushed to 2 mm making the samples worthless. It was 100% human error, it was corrected and Novo now knows better. It also happens anytime you start thinking outside the box.
But Novo had to determine not only the grade of the gold but where it was located in the sequence so they brought in the water well drill. It was a disaster because they needed to know exactly where in the conglomerate layers the gold was and the machine chewed everything up. They tried it, it didn’t work and they went to bulk samples.
SGS proved to be another problem area. There was miscommunication on both sides with lots of blame to assign if that is what rings your bell. It has been sorted and SGS now has the ability to process the bulk samples the way Novo needs them done. I would say the relationship was at times flawed but it has been repaired.
I just got back from a weeklong trip to Karratha and Egina. While I am a shareholder and no more happy than any other shareholder at the decline in share price, what I saw and what I learned totally changed my outlook.
Exploration is not mining. It is expense, not profit. Mining is mining. With a now massive 12,400 square kilometers land position Novo is poised to have one of the world’s largest gold deposits. I won’t even come up with a number, anything you say would be absurd but they have a giant land position containing a lot of gold. They added over 1,000 square km around Egina and that was really interesting.
In 130 years since the discovery of gold in the Pilbara, it never occurred to anyone that the whole place is mineralized. While Quinton focused on picking up as much of the conglomerate formations as possible, believing that the basal cover had preserved what had been nothing more that a giant placer deposit now morphed into hard rock, much of the conglomerate has eroded away. So where did that gold go?

Eroded conglomerate sequence

Around Egina has a lot of it. And we panned tailings left over from the miner who has been working one of the two mining leases granted and permitted. We found a lot of small gold. Since it came from somewhere it infers that the surrounding conglomerate rocks could be drilled with conventional drilling. You wouldn’t be able to measure the nuggets but you could measure the small gold component.

Aerial of existing mining

Egina Mining

Bob panning Egina gold

Panned gold from Egina

Small gold component from Egina

And in a giant leap forward for the company, Novo tested a sorting machine from Tomralate last week. Initial tests show a reduction of mass of 99%. It appears to work with both the hard rock from Karratha and the alluvial material similar to around Egina. The machines have a high capacity potential of up to 1000 tons per hour.
Let me explain why that is so important, in fact, game changing for the entire mining business not just for Novo.
The best information we have so far is that there is a 40 cm reef of nuggety gold located near or on the contact with the lower unit and the grade of that reef is about 25 g/t.
40 cm would be similar in nature to a high-grade narrow vein system. Those aren’t popular with mining companies. Mining companies want bulk processing. But if you could take 4 meters of material now averaging 2.5 g/t gold you would have a simple solution to mining. But every ton of rock processed through a plant costs the same no matter what the grade. So plant engineers prefer 25 g/t gold to 2.5 g/t gold, all else being equal.
If Novo can reduce the bulk of the material by 99% they turn 4 meters of 2.5-g/t material into 250 g/t gold material with only 1% of the volume. That’s direct shipping ore and reduces the very real risk of gold flying away into the pockets of those who spot it.
To crack the code of the Karratha and Egina gold mystery requires two things. 1. You have to think far enough outside the box to come up with a viable concept and 2. You have to think outside the box far enough to come up with a way to mine and mill the gold at a profit while maintaining security.
In 130 years since the discovery of gold in the Pilbara conglomerates and also in alluvial material only one person has managed to do that. That would be Quinton Hennigh. He will go down in history as the John Mackay of the Comstock Lode and the Cecil Rhodes who managed to consolidate the Kimberly diamond pipe small claims into one and formed De Beers to control both the supply and the price of diamonds.
As someone has repeated again and again, this is not a conventional deposit and cannot be approached in a conventional manner. If it were conventional it would have been mined as one of the two biggest gold discoveries in history similar in both grade and tonnage to the Witwatersrand in South Africa. However it has taken 130 years for someone to put it together.
George Mehri of Kairos took Quinton and I to see their ground just south of Egina where he is heading the exploration program last week. We saw a 40×50 meter patch of ground that he went over with a metal detector and found over 10 ounces of gold right at surface. No one has any idea of what that means or where the gold came from or why it’s there. We are all just scratching our heads.

George’s nugget patch

What people need to think about is that there is a lot of gold in Karratha and Egina and within the Pilbara. Much of it we have no clue as to how it got there or even why it’s there. This project is a work in progress and many questions may never be answered. But there is a lot of gold there and Quinton is figuring out how to extract it at a profit.
The chorus of observers screeching for the blood of the combatants has gotten shrill. But while picking nits they are ignoring what is right in front of them. Let’s look at the minimum value of just Beaton’s Creek. Novo has defined about 700,000 economic ounces of oxide gold near surface. It wouldn’t take much of a leap to figure out there is an easy million ounces there. But let’s stay with the 700,000 ounces we can measure. At a market cap of $283 million USD today, that would be a value of $400 an ounce. Deals are done all the time for more than that.
In other words, Beaton’s Creek all by itself is a floor under the value of Novo shares.
But let’s look at potential upside. Pretend this is a conventional deposit with easy to drill and measure gold.
Novo has drilled 210 core holes at Purdy’s and Comet Well. They were short holes. All of the 210 holes intersected conglomerate. What would be the value of Novo shares if every one of those 210 holes assayed 2.5 g/t gold over four meters? It would be recognized as one of the great gold finds of history and the value would be in the billions because the market would recognize there are another ten thousand square km with exactly the same potential.
But it’s the same grade and quantity of gold no matter if you can easily measure it or not.
Mackay and Rhodes thought outside the box. You may safely assume a lot of people were green with jealousy and sought to undermine them at every turn. Not because of their failures which were legion but because of their successes.
Novo shareholders are being called on to vote in the AGM scheduled for the 5^th of December. It’s the standard stuff with nothing exciting except the possible reelection of the six directors.
There are six directors at present, Quinton Hennigh, Chairman, Rob Humphryson, CEO, Michael Barrett, Akiko Levinson, Greg Gibson and Eric Sprott. The first four are friendly to Quinton Hennigh and Greg Gibson works for Eric Sprott.
At present Eric Sprott controls about 28% of the vote directly and through Kirkland Lake.
I want to make one thing perfectly clear. Eric Sprott is a businessman who makes money or loses money by investing his money in companies. He is totally a good guy and I have never heard anything bad about him. I have zero conflict with him on any basis, other than me trying to figure out just how gold was suppressed from $252 to $1923.
What I’m about to write is not based on inside information or anything I’ve heard or even anything I suspect. It is only what I fear.
Eric Sprott has to belong to the herd of shareholders who are pissed. On the chat boards it’s clear that Rob and Quinton are blithering idiots. Drawing and quartering are too good for them because they made the shares go down all by themselves.
Give me a break. We are in a bear phase of the gold market and everything is down.
If you like to use the Sprott PSLV as a contrary indicator for the market, recently it hit an all time low with a discount over 5%. I used the same indicator to say we were at a top in April of 2011 where I correctly called the top in silver to the day. Now it’s saying we are very near or just past a bottom.
I managed to pick up a little silver at $14.02 and I really wish someone would suppress it down just a little more so I can load up the boat.
This is an unconventional deposit. It has to be approached in an unconventional way. Quinton is trying to herd cats, juggle eggs and tap dance all at the same time. I’m not convinced that throwing rocks at him is really going to help things.
Eric Sprott has all the right in the world to vote his 28% of shares in Novo any way he wishes. But what I fear is that he might want to treat this as a conventional deposit and all he needs to do is tinker a little bit in his best interest and make things right.
This is not a conventional deposit. For all the screw-ups and miscommunication, Quinton and his brilliant crew have made amazing progress. Egina is a game changer beyond belief. I won’t even suggest what I think the grades are going to be but he has two of the smartest and most experienced alluvial experts in the world testing the resource today and designing a processing plant that could be actually mining in the Australian fall, our spring. We will be seeing grades before the end of the year and once I have numbers I can take to the bank, I will comment on what they mean.
Nobody knows this but Quinton and me but when we went to Perth and then into the field in June of 2009 before Novo was even born, Quinton had three kids in college and didn’t have a pot to piss in. He paid his airfare but I contributed to the expenses in both New Zealand and the Pilbara basin work. I know this project, the problems and the potential better than anyone outside the company.
By reasonable terms Quinton is rich today from his investments in both Novo and Irving Resources. Normally when Eric Sprott wants changes in a company everyone is quaking in their boots in fear of losing that paycheck.
Quinton doesn’t need the paycheck and at some point he will conclude he doesn’t need the aggravation. If he leaves, Rob Humphryson leaves. And if for any reason Rob Humphryson leaves, Quinton leaves. And if they both leave, Eric Sprott will learn the meaning of Jingle mail because when the last person leaves the office after shutting off the lights, they will mail him the keys to the door so he can run Novo any way he wants. People work for Novo because they love working with Quinton and know the challenge of developing another Witwatersrand deposit.
I’d just hate to see that happen. There are lots of people in the industry and on the chat boards that all believe they are smarter than Quinton Hennigh but I can assure you it just isn’t so.
What I fear is that Eric Sprott will crap in his own lunch bucket by voting his shares to WITHOLD the three Quinton friendly. Then there are two people voting the way Eric wants and one voting the way Quinton wants.
While Eric Sprott owns and controls 28% of the shares, he does not own and control 72% of the shares. If he takes total control of the board he is going to do what is in what he sees as his best interests. Quinton on the other hand is responsible for acting in what he sees as the best interests of 100% of the Novo shareholders. And as bright as Eric Sprott and his people are, Quinton unlocked a mystery that was 130 years old that no one else figured out.
For the next year or so he alone can run the ship. When I was in the service, we had a saying, “no matter how big or how small a ship is, there is only room for one captain.” Before taking action I suggest Eric ponder the ramifications of whatever he does.
So when I get my proxy form, I am going to vote for all of the current members of the Board except for Greg Gibson. I have nothing against Greg but I think that Eric Sprott needs to understand that there are a lot of shareholders who don’t think they are smarter than Rob Humphryson and Quinton Hennigh and they would like them to stick around as the fat lady warms up in the wings.
I don’t think for a minute my vote will change anything but if a lot of other shareholders vote as I do, it will send a clear message to Eric about what people think of the value of Quinton and his team.
For all the people who believe Quinton and team have fucked up, you haven’t seen anything yet. Bring in a bunch of conventional mining guys. Once they figure out where the light switch is in the office it will take them 18 months just to determine where the projects stand today. It will be the biggest Chinese fire drill you have ever seen with conventional thinking on an unconventional deposit. I’ll be quite content to dump my shares at a nice profit and sit on the sidelines throwing rocks at every error they make.
It might be a good idea for Eric to think about the difference between being involved and being committed. It’s a lot like the difference between ham and eggs. The chicken, she’s involved but the pig, he’s committed.
If Eric takes control of the board, he will set the 2^nd Pilbara gold rush back five years. All the good will Quinton has built within the Australian mining community and with the native corporations will evaporate before the light has left the room after the switch is turned off.
I like Eric a lot and I’d hate to see him tinker with something actually working quite well. Anyone not making mistakes is not making enough decisions. It’s only a sin when you keep making the same mistake again and again. Quinton doesn’t do that.
Novo Resources
NVO-V $2.28 (Nov 16, 2018)
NSRPF $1.73 OTCQX 162.3 million shares
Novo Resources website
###
Bob Moriarty
President: 321gold
Archives
321gold Ltd

Precious Metals

JUNIOR MINING | Novo Receives Positive Initial Results From Mechanical Sorting Trials

Post author By admin
Post date November 19, 2018

VANCOUVER, British Columbia, Nov. 19, 2018 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to discuss positive initial results from mechanical rock sorting tests being undertaken by TOMRA Sorting Pty. Ltd., Castle Hill, New South Wales (“TOMRA”). TOMRA is the foremost mechanical rock sorting company in the mining industry.

TOMRA Mechanical Sorting Test Highlights:

Four, +5 tonne bulk samples from Comet Well, three from the Upper Cannonball Conglomerate and one from the Lower Cannonball Conglomerate, have undergone successful sorting (Figure 1; https://youtu.be/ljMtA1cKNts)

Each sample was crushed and screened yielding sub-fractions of 63-100 mm, 25-63 mm, 10-25 mm and less than 10 mm. Testing was undertaken on each size fraction except for the sub-10 mm size fraction. Mechanical sorting employed a combination of X-Ray transmission (“XRT”) and electromagnetic induction (“EM”). XRT identifies rocks containing particles of high atomic mass such as gold and EM identifies rocks that become electrically charged due to the presence of metallic particles in a manner similar to the operation of a metal detector.
Sorting of material between 10-63 mm resulted in a remarkably low mass pull of approximately 0.3% (Figure 2). Visual and X-Ray examination of concentrate indicates gold nuggets are present (Figure 3). This data, although preliminary, suggests there is good potential for employment of mechanical sorting to upgrade gold content for analytical purposes and possibly commercial applications. Novo thinks mechanical sorting could become an important component of future advancement of the Karratha and Egina gold projects.
With this tranche of mechanical sorting tests now complete, assays will be performed on all fractions of concentrates and rejects to ascertain overall efficiency of sorting. Full results of this study are expected early next year.
Rocks larger that 63 mm were found to be too thick for X-Rays to adequately penetrate making particulate gold obscured from detection. Therefore, crushing of large rock pieces to less than 63 mm is required for effective mechanical sorting. The sub-10 mm fraction comprises approximately 35% of the overall mass of each sample. TOMRA believes there is opportunity to further screen material down to approximately 6 mm before employing mechanical sorting, thus maximizing the overall percentage of material that can be sorted.

“Mechanical rock sorting tests with TOMRA have yielded very encouraging results,” commented Rob Humphryson, CEO and director of Novo Resources Corp. “Although full assays are needed from all respective concentrate and reject fractions, the very low mass pull achieved by the TOMRA mechanical sorter bodes well for efficient concentration of gold. The highly nuggety mineralization at Karratha has proven to be a challenge with respect to assaying, but it may prove to be a benefit with respect to metallurgical recovery of gold. We see additional value being created by the use of mechanical sorting at Karratha, Egina and perhaps other Novo gold projects in the Pilbara.”

Dr. Quinton Hennigh, P. Geo., the Company’s President and Chairman and a qualified person as defined by National Instrument 43-101, has approved the geological content of this news release.

About Novo Resources Corp.

Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”
Quinton Hennigh
President and Chairman

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking information
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities and the expected timing of the receipt of results. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the performance of services by third parties.

(Figure 1 – TOMRA mechanical ore sorter at TOMRA Sorting Pty. Ltd.’s Castle Hill, New South Wales testing laboratory. This sorter employs XRT to identify rocks containing particles of high atomic mass such as gold and electromagnetic induction EM to identify rocks with a propensity to become electrically charged due, occasionally, to the presence of metallic particles.)

(Figure 2 – Left, looking down on the conveyor discharge from the TOMRA ore sorter. The conveyor on the left is reject material and that on the right carries a very small fraction of concentrate. Right, discharge bins, concentrate in the foreground and reject in the background.)

(Figure 3 – Left, pieces of concentrate with exposed gold nuggets. Right, X-Ray image of concentrate with red arrows pointing to dense particles of matter, black, embedded in rock.)

https://youtu.be/ljMtA1cKNts

(Video 1 – Video of the sorting chamber within the TOMRA mechanical sorter. Comet Well material is being sorted. XRT and EM scanners examine rock before it enters the chamber on the right. A computer tracks each rock particle, and those deemed to be of interest are jetted by air into the shoot on the left hand side.)

PDFs accompanying this announcement are available at:

http://resource.globenewswire.com/Resource/Download/95350226-871d-467f-9d4a-61c4462b9463

http://resource.globenewswire.com/Resource/Download/b1a4f499-7f41-4f6d-ae58-3ece51962061

http://resource.globenewswire.com/Resource/Download/1c229494-55f7-4b6e-bacf-a349b52afa1b

Precious Metals

PRECIOUS METALS | It Can Be Unsettling If You Are Heavily Invested In Gold And Silver

Post author By admin
Post date November 19, 2018

November 16, 201816

The Miles Franklin Newsletter

If your having trouble viewing this – Click Here

David’s Commentary:

These days, it can be unsettling if you are heavily invested in gold and silver. The market givith and the market takith away. This is not an accident. It’s all just a game for profit by the traders and hedge funds, with a little help on the side from JPMorgan.

Logically, as a long-time observer of the performance of gold and silver, it appears to me that there is an “agenda” – entities who do not allow the prices to rise too much, or too fast. The plan seems to be to “control” the price action and not allow enough upward movement to initiate enthusiasm. It works. In the last few days, we have received calls from some of our long-term clients asking us why the price of gold has collapsed again, and in some cases, just after they made a recent large purchase. Yes, the price did pull back, but it did not collapse. In fact it’s quite the opposite.

Notice the chart to the right, for the last couple of months, gold has traded in a narrow range from around $1,190 to $1,236. Gold is forming a base. It is encouraging that gold just bounced off of support at $1,200 and is hovering at $1,222.70 as I am writing this. Gold is comfortably back above its key 50-day moving average ($1,213.51).

The recent engineered pull back, last week, did not last long. It was not based on anything meaningful, just short-term profit oriented trading.

Silver doesn’t seem to want to trade below $14. Silver is now $14.32, and is almost back to its key 50-da moving average ($14.44). It is trending back up. The logical explanation is that by controlling the price of silver, which is easier than trying to control the price of gold, it makes it harder for gold to take off.

Gold gets the headlines.

Silver is the little sister and is not nearly as important – to the big investors. The physical gold and silver market in the U.S. is so small that it has almost no affect on the price at all. In a bull market when the demand for physical metals is stronger, it will add demand “at the margin.” Just keep in mind that the price is set in the paper market on the COMEX.

So what will it take for gold and silver to break free and make me and our clients happy?” The two most important events that will lead to much higher prices are: (1) When the stock market corrects down, and (2) when the dollar falls (below 90 on the USDX). At the moment, neither is happening. The stock market is meandering around 25,000, going no-where, and the dollar has been the beneficiary of a weak British Pound and a weak Euro. The dollar is “going up” only because the other major currencies used to compile the USDX are performing poorly. I like to say, “It’s the prettiest girl in a group of unattractive girls.”

I’m still hopeful that by the end of the year, gold and silver will be priced much higher than they are today. And I expect the rise to continue throughout the first half of 2019. I just finished reading a report that predicts the Stock Market Will Rally, Bear Market Coming Mid-2019. That falls under the category of (1) above.

Last night I watched a movie in which a “hit” was paid for in Nazi gold. It wasn’t that long ago when gold was the most prized and valued liquid asset on the planet. Gold has always been a valued asset during times of war. If you pay attention, you can probably hear the war drums beating softly in the distance now. Apart from everything else, gold should be getting a lot of attention right now, with the unthinkable increase in money, debt and credit that are enveloping the planet.

Getting back to my view that a collapse in the dollar is one of the (two) keys to a bull market in gold – Bill Holter brought this to our attention. Check it out..

Larry Fink, world’s largest asset manager…doesn’t sound as crazy coming from a mainstream guy does it?

World’s Largest Asset Manager Warns: The Dollar’s Days As Global Reserve Currency Are Numbered

November 7, 2018

Have BlackRock CEO Larry Fink and Russian President Vladimir Putin been comparing notes?

In comments that sound eerily similar to a warning issued by Putin, who warned during a speech last month that the US risked undermining the dollar’s reserve currency status with its sanctions regime, the CEO of the world’s largest asset-management firm said Tuesday during a panel discussion at the New Economic Forum in Singapore that the US dollar’s status as the world’s dominant currency wouldn’t last forever.

And instead of citing external factors like China’s expanding economic clout and influence, or an insurgent Russia, Fink pointed to the widening US budget deficit as the biggest risk to the dollar’s status as the global hegemon. And while it might not happen tomorrow, or next year, over time, as US interest rates rise and the federal government strains under its tremendous debt burden, the creditors who were once eager to buy up Treasury bonds will gradually disappear.

“We’re going to move there over time” Fink said.

The more you know about gold’s role as money the brighter its prospects become.

Zero Hedge

The End Of The ‘Nanny State’ & What Happens To ‘Prices’ When Gold Is Money

Authored by Alasdair Macleod via GoldMoney.com,

We are getting ahead of ourselves here. Gold does not circulate as money – yet. It might never do so. Perhaps the end of government currency, fiat money imposed on us by government laws, may never be replaced by what for millennia has been the people’s money, gold. Do we even wish it? Given what we have to do to get there, probably not.

It is hard to think of a life without Nanny State giving us her money-tokens to buy our sweets, telling us what to eat and what medicine to take. But Nanny State is getting long in the tooth. When she was younger, she was less controlling. Her constant refusal to allow us, the ordinary people, to do what we want is an increasing source of friction.

Growing numbers of us can see Nanny State should pack her bags. But Nanny State’s favorites are frightened at the prospect of no nanny. Those of us who want a life without Nanny State can’t agree what it should be, and don’t know what happens when she goes.

Click to Read More…

Regarding the following excellent article, I should point out that our precious metals storage program with Brinks in Canada is every bit as safe as storage in Switzerland – and more convenient too, especially if you decide to take delivery of your metal.

Egon von Greyerz

Gold Confiscation and Manipulation

Owning gold is life insurance and wealth preservation. Anyone who has lived through hyperinflationary periods in the Weimar Republic, Zimbabwe, Argentina or Venezuela understands the importance of gold. But it is not enough just to own gold or silver. It is also extremely important how you hold it and where you hold it. We have just seen another example how governments unilaterally “confiscate” gold.

VENEZUELA CAN’T GET THEIR GOLD BACK

The Venezuelan government gold held at the Bank of England (BoE) is just the latest example of the importance of choosing the right jurisdiction and the right vaults. Venezuela is holding 14 tonnes of gold with the BoE in London, worth $545 million. This is a relatively small amount when it comes to sovereign gold. Still, Venezuela has for some time asked to get it back but the BoE has come up with all kinds of excuses like it is hard to get insurance for such a big amount and this has allegedly delayed the release of the gold by several weeks. This is of course a ridiculous excuse.

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Precious Metals

JUNIOR MINING | Aben Extends Mineralized Envelope around High-Grade Gold Discoveries at North Boundary on the Forrest Kerr Project in BC’s Golden Triangle

Post author By admin
Post date November 19, 2018

VANCOUVER, British Columbia, Nov. 19, 2018 (GLOBE NEWSWIRE) — Aben Resources Ltd. (TSX-V: ABN) (OTCQB: ABNAF) (Frankfurt: E2L2) (the “Company”) reports further results from the recently completed drill program at the Forrest Kerr Project. Drilling has extended the mineralized envelope surrounding the 2017 and 2018 high-grade gold discoveries at North Boundary. This round of focused drilling tested for the depth and lateral extension of known mineralized shear and vein sets located in the North Boundary Zone. Broad horizons of low to moderate grade gold mineralization were encountered in several of the 15 drill holes (FK18-22 à36) reported herein, while all drill holes encountered discrete polymetallic vein hosted mineralization with gold values ranging from trace amounts to 13 grams per tonne (g/t) over 1 meter.

Forrest Kerr Drill Hole Plan View Map:
https://abenresources.com/site/assets/files/4855/abn_fk_north_boundary_inset_drilling.jpg

President and CEO, Jim Pettit states: “The 2018 season has been a geologic and technical success in terms of what we have accomplished this year. We started out with a 5000 meter drill program and expanded it to 10,000 meters after success with the drill. We raised $5.2 million and an additional $1.7 million from the exercise of warrants. Logistically, we adapted quickly and efficiently on the fly and actually substantially reduced our overall cost of drilling per meter. We have identified the Boundary Zone as a very large, robust environment for gold mineralization and discovery. We have 9 more holes to report on from this season and we look forward to compiling all the data available to us generated from this 2018 drilling program as well as new geochemical and geophysical analysis. It is also important to note we have the funds in the treasury for the 2019 exploration and drill program.”

Analytical results indicate that a coherent zone of vein-hosted mineralization extends up to 30 meters outward from the high-grade Au reported in holes FK18-4,5,6 & 10 (see News Releases Nov. 6, 2017 and Aug. 9, 2018). Results from this area include 0.8 g/t Au over 11 meters (m) in hole FK18-32, 0.7 g/t Au over 14 m in FK18-33, 1.2 g/t Au over 21 m in FK18-34, 0.8 g/t Au over 15 m in FK18-35 and 0.46 g/t Au over 17 m in FK18-36 (chart below). The mineralization defined by these holes extends for over 30 meters along strike and remains open in multiple directions.

View Forrest Kerr Drill Hole Cross Sections:
https://www.abenresources.com/projects/photo-gallery/

Drilling to date has shown that mineralization extends several meters outboard of the high-grade area within subordinate shear structures and vein arrays. Oriented core tooling was utilized for this phase of drilling in order to collect structural data that will help determine the orientation of both the main and subsidiary mineralized structures. The oriented core data, combined with the surface mapping data and a growing subsurface database at the Boundary Zone will assist greatly in planning future targeted drill programs.

Aben Resources completed 9900 meters of NQ drilling in 2018 on a low cost per meter basis. The number of available drill locations was constrained due to a delay in receiving an updated MX Permit from the British Columbia Provincial Government in response to extreme forest fire activity in the area. As a result the last phase of targeted drilling was completed from only 3 pad locations with fan arrays from each set-up. Subsequent to completion of the summer drill program Aben received the much anticipated 5 year Multi-Year Area Based (MYAB) permit, which will allow for more extensive drill programs going forward.

Mineralization at Boundary North is structurally controlled and hosted in a package of volcanic and volcaniclastic rocks from the Jurassic Hazelton Group. Several generations of quartz and quartz-carbonate veining are important hosts to mineralization, as are subordinate breccia zones with strong chlorite, hematite and carbonate alteration. The Boundary Zone lies between the Forrest Kerr Fault to the west, a major deep-seated crustal feature, and the unconformable contact between the Jurassic Hazelton Group and the Triassic Stuhini Group to the East. The rock reflects a prolonged history of strong hydrothermal activity combined with brittle deformation. The host package Hazelton is known to be a prolific host to several deposits throughout the region.

Golden Triangle, B.C., claims map:
https://www.abenresources.com/site/assets/files/4287/fk-003.jpg

Hole ID		From (m)	To (m)	Interval (m)	Au (g/t)	Ag (g/t)	Cu (ppm)
FK 18-32		43.0	54.0	11.0	0.8	3.4	1923

FK 18-33		48.0	62.0	14.0	0.7	1.1	615

FK 18-34		46.0	67.0	21.0	1.2	0.9	704
	incl	46.0	57.0	11.0	2.2	1.4	717

FK 18-35		38.0	53.0	15.0	0.8	0.6	375

FK 18-36		47.0	64.0	17.0	0.5	0.6	858

Analytical and QA/QC Description:

All 1 or 2 meter drill core samples were delivered to ALS Global prep facility in Terrace, British Columbia where they were crushed until 70% passed a 2mm sieve, then a 250g split was pulverized until better than 85% passed a 75 micron screen. Gold was tested via fire assay method Au-ICP21 with all ore-grade samples (>10 g/t) undergoing fire assay with gravimetric finish. ALS performed multi-element ICP-AES package ME-ICP41 in their Vancouver facility to test for 35 other elements. In addition to the quality assurance and quality control program performed by ALS, Aben personnel insert lab certified standards, field blanks and duplicates into the sample stream at the rate of one QA/QC sample in every 10 samples.

Update on the Justin Gold Project, Yukon Territory, Canada

Aben Resources is currently finalizing analytical results from field work completed in September 2018 on its 100% owned Justin Gold Property in the Yukon Territory. The geologic team reports visible gold in trenches and channel samples from quartz stockwork veining in bedrock at the Lost Ace Zone, a gold-bearing zone discovered in 2017. Channel sampling in 2017 at Lost Ace returned 1.44 g/t Au over 5m including 4.77 g/t Au over 1.0 m in addition to a bulk soil sample that contained 1135 visible gold grains, the majority of which were termed ‘pristine’ indicating a proximal bedrock source for the gold. Lost Ace is an exciting new prospect on the Justin Property as it is located within 2km of the main mineralized POW Zone and bears striking similarities to Golden Predators adjacent 3 Ace Property.

Cornell McDowell, P.Geo., V.P. of Exploration of Aben Resources, has reviewed and approved the technical aspects of this news release and is the Qualified Person as defined by National Instrument 43-101.

About Aben Resources:

Aben Resources is a Canadian gold exploration company developing projects in British Columbia’s Golden Triangle, the Yukon, and Saskatchewan.

For further information on Aben Resources Ltd. (ABN.V), visit our Company’s web site at www.abenresources.com.

ABEN RESOURCES LTD.

“Jim Pettit”
____________________________
JAMES G. PETTIT
President & CEO

For further information contact myself or:
Don Myers
Aben Resources Ltd.
Director, Corporate Communications
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@abenresources.com

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management 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. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

Precious Metals

JUNIOR MINING | Orezone Announces Updated Feasibility Study to Incorporate a Phase II High-Grade Sulphide Expansion

Post author By admin
Post date November 19, 2018

OTTAWA, Nov. 19, 2018 (GLOBE NEWSWIRE) — Orezone Gold Corporation (ORE.V) (“Orezone” or the “Company”) is pleased to provide the following key updates on its 90%-owned Bomboré Gold Project:

Work has commenced to update the 2018 Feasibility Study (“2018 FS”) to include a staged higher-grade sulphide expansion (“Phase II Sulphide Expansion”) to complement the oxide mine plan in the 2018 FS. The Phase II Sulphide Expansion is envisioned as a 3,000 to 3,500 tonne per day (“tpd”) sulphide circuit to process zones of higher-grade sulphide and lower transition oxide resources starting in Year 3 of commercial production. Capital for this expansion is expected to be funded by future operating cash flows.
Roscoe Postle Associates Inc. (“RPA”) will update the current January 5, 2017 mineral resource (“2017 Resource”) estimate to include the oxide material within the previously termed Restricted Zones and the free milling sulphide material at P17S in support of this Phase II Sulphide Expansion study.

This update to the 2018 FS will not impact the ongoing development and schedule of the Bomboré project as presented in the 2018 FS. As stated in the Company’s press release of November 8^th, 2018, the current project is being designed as a 5.2 Million tonne per annum (“Mtpa”) operation and is currently advancing through detailed engineering with first gold production scheduled to commence by October 2020.

Patrick Downey, President and CEO, stated that “We are very excited to commence an updated feasibility study to evaluate the potential upside of a sulphide circuit to meaningfully contribute to the project’s future gold production as part of a phased expansion to the 2018 FS oxide mine plan. Previously, the sulphides at Bomboré were viewed as a large low-grade deposit. However, a recent detailed review of the Measured and Indicated (“M&I”) sulphide resources by the Company and our consultants has identified continuous zones of significantly higher grade, near surface mineralization which warrants a more in-depth analysis. In addition to the higher grade sulphides at P17S, we have successfully identified four additional areas of thick and continuous higher-grade M&I sulphide resources located directly beneath current oxide reserves. Historical metallurgical test work together with pit geotechnical evaluations have been previously completed on these sulphides which will allow for rapid advancement of this update to the 2018 FS, which we are targeting for completion by the end of Q2 2019.”

Feasibility Update for Phase II Sulphide Expansion

Test work and previously released studies indicate that the sulphide process plant extension will consist of a crushing and grinding circuit that feeds into a leaching circuit that will be designed to provide the first the 24 hours of leaching. This partially-leached material will then be fed to the main oxide carbon in-leach circuit where overall leaching of the blended material will be completed, and the gold recovered to the oxide plant carbon elution circuit. Test work to date on sulphide material indicates recoveries ranging from 73% in the north (Maga and P8/P9) to over 90% in the south (Siga and P17S). The gold recovery, tailings and reagent systems of the oxide plant design in the 2018 FS will remain unchanged as will the main project infrastructure. The overall plant throughput is currently contemplated to remain at 5.2Mtpa with these higher-grade sulphides replacing lower-grade oxides. Over the past quarter, the Company, in conjunction with its consultants, has been reviewing the sulphide mineralization beneath the current oxide reserve pits in the 2018 FS. The 2017 Resource statement estimated that the sulphide zones contained 96M tonnes of M&I resources at a gold grade of 0.83 g/t (above a lower cut-off grade of 0.38 g/t), including 71M tonnes of M&I resources at a gold grade of 0.97 g/t over a higher cut-off grade of 0.5 g/t (refer to Appendix B for the pit design parameters used by RPA for the resource estimation).

From this review, the Company has outlined several higher-grade sulphide zones located within the Main M&I sulphide. Subsets of the 2017 RPA M&I resource estimates for these zones are included in table 1 below. For the initial review, these zones of higher-grade sulphides have been constrained to a maximum depth of 100 m but the mineralization remains open at depth.

Table 1: Subsets of RPA 2017 M&I Resource Estimate

Table 1 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/26e493cd-38b0-43ad-bf59-cd6299d920d8

Notes:

CIM (2014) definitions were followed for Mineral Resources.
Mineral Resources are estimated at variable cut-off grades depending on weathering layer and location. Elevated cut-off grades have been used to identify higher-grade mineralization within the Mineral Resources.
Mineral Resources are estimated using a long-term gold price of US$1,400/oz.
A minimum mining width of approximately 3 m was used.
Estimates for contained gold have been rounded to the nearest 100 oz.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability and have not had the considerations applied to them that allow conversion to Mineral Reserves. This work will be carried out during the Phase II Sulphide Expansion study.

A review of these zones by the Company’s consultants has indicated sufficient thickness and continuity to advance to detailed feasibility to evaluate the potential to convert these resources into reserves (see location of areas of interest, Appendix A). These zones will be included in the updated FS in combination with the lower transition oxides and P17S.

The Company has retained its previous consultants from the 2018 FS for this FS update. Lycopodium Minerals Canada Ltd. will act as lead study manager together with AMC Consultants, Knight Piésold Consulting and RPA. The FS update will be based on the construction of the sulphide circuit in Year 2 of commercial production to allow the Company to access up to two years of operating cash flow to self-fund the expansion.

Significant historical metallurgical, environmental and geotechnical test work has already been completed on the sulphide material from these zones and been included in previously filed NI 43-101 reports. Work includes:

Grind versus recovery test work;
Leach kinetics including optimal leach residence time;
Reagent consumptions;
Crushing and grinding Work Indices;
Abrasion Indices;
Waste rock acid rock drainage(ARD) characterization; and
Pit wall geotechnical drilling and analysis.

The Company will benefit from the extensive database of existing test work in reducing both the costs and schedule of this FS update.

In 2012, McClelland performed a feasibility-level test work program. The testwork included ore variability composite testing, comminution testing, CIL/CIP leaching, residue characterization, and waste rock testing. The sulphide composites were tested at two grind sizes (-75 and -53μm). The results, which are taken directly from Table 13.13 in the August 23^rd, 2018 NI 43-101 technical report are summarized in Appendix C.

A 2009 AMMTEC metallurgical program included in the August 23^rd, 2018 NI 43-101technical report in Tables 13.5 and 13.6 provide additional recovery data for the sulphide resources. The samples provided to AMMTEC were PQ and HQ drill cores taken from the fresh rock, transition, and oxide ore zones. Summary results from the AMMTEC program are presented in Appendix D.

Bomboré Resource Update by RPA

The resource estimate update will be performed by RPA who completed the 2017 Resource estimate. The new resource estimate will include oxide material from the previously excluded Restricted Zones based on all prior drilling up to February 2016. This material is located within the flood zones of seasonal river crossings (see Appendix A). Any material within the Restricted Zones that falls within an updated mine plan will be mined and subsequently backfilled with waste from the same area during each year’s dry season of November to April. Permitting of the Restricted Zones is advanced with submission of an Environmental and Social Impact Assessment report as the next steps.

The RPA resource update will also include the near surface P17S sulphide deposit. This deposit does not have significant oxide mineralization and therefore, is currently outside of the existing mining permit. A resource estimate for P17S was included in the 2017 Resource based on limited drilling to February 2016 which identified a M&I resource of 335,000 tonnes at a gold grade of 2.52 grams per tonne (“g/t”). This resource was to a depth of ~100 m and down dip extension of ~190 m from surface. Over the past two years, the Company has conducted successful follow-up drilling at P17S (see Company’s Press Release of July 16, 2018) which has materially increased the size of the deposit. The drilling continued to define the extensions of the deposit, which is hosted in a series of shallowly-plunging granodiorite thickened fold hinges, with the most recent drilling having intersected new fold hinges and defined the down-plunge extension of the original deposit over a distance of at least 500 m, to a vertical depth of about 200 m. All new drilling data available as of October 2018 will be incorporated within the new resource estimate by RPA.

Qualified Persons

Tim Miller, SME and COO, Pascal Marquis, Geo and SVP and Patrick Downey, P.Eng and CEO of Orezone, are Qualified Persons under National Instrument 43-101 and have reviewed and approved the information in this news release. Orezone has also prepared and filed a current technical report on the Bomboré Project titled “NI 43-101 Technical Report Feasibility Study of the Bomboré Gold Project Burkina Faso” with a date of 23 August 2018, and which is available at www.sedar.com and at www.orezone.com. The technical report includes relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource and reserve estimates at the Bomboré Project, as well as information regarding data verification, and other matters relevant to the scientific and technical disclosure contained in this news release. Readers should also refer to the annual information form of Orezone for the year ended December 31, 2017 and other continuous disclosure documents filed by Orezone since January 1, 2018 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.

About Orezone Gold Corporation

Orezone is a Canadian company with a successful gold discovery track record and recent mine development experience in Burkina Faso, West Africa. The Company owns a 90% interest in Bomboré, a fully permitted, low cost, development stage gold project in Burkina Faso, situated 85 km east of the capital city of Ouagadougou, adjacent to an international highway.

For further information please contact Orezone at +1 (613) 241-3699 or visit the Company’s website at www.orezone.com.

Orezone Gold Corporation

Patrick Downey
President and Chief Executive Officer
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663

FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and other similar words, or statements that certain events or conditions “may”, “will”, “could”, or “should” occur.

This news release includes certain forward-looking statements. These include statements regarding, among others, construction enhancement opportunities including expansion of plant processing capacity to 5.2Mtpa, successful permitting of the Restricted Zone oxides and P17S for inclusion into a new mine plan, the potential of processing higher grade sulphide material on a 3,000 to 3,500 tpd basis as supplemental plant feed into the 2018 FS oxide mine plan and the associated plant improvements required, the construction start-up of the sulphide plant extension in Year 2 of commercial production with commencement of gold production from the sulphide circuit starting in Year 3, the funding of the sulphide expansion from internal operating cash flow, and the completion of a feasibility update to the 2018 FS by the end of Q2 2019.

All such forward-looking statements are based on certain assumptions and analyses made by management and qualified persons in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management and the qualified persons believe are appropriate in the circumstances. Readers are cautioned that actual results may vary from those presented.

In addition, all forward-looking information and statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements including, but not limited to, use of assumptions that may not prove to be correct, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, the possibility of project cost overruns or unanticipated costs and expenses, accidents and equipment breakdowns, political risk, unanticipated changes in key management personnel and general economic, market or business conditions, the failure of exploration programs, including drilling programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the availability and costs of financing needed in the future, and other factors described in the Company’s most recent annual information form and management discussion and analysis filed on SEDAR on www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information or statements.

This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in the price of gold; (ii) results of drilling; (iii) results of metallurgical testing, process and other studies; (iv) changes to proposed mine plans; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses.

Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Appendix A: Map of Sulphide Areas Considered

Appendix A is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/8e8e6b95-cc74-4f84-bddd-50245ba8b99d

Appendix B: Whittle Parameters for 2017 Resource Pit Shells

Appendix A is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/68006ada-2b26-451b-a36b-f6948315999c

Appendix C: McClelland Grind and Cyanide Concentration Optimization Tests

Appendix C is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/31a4aa17-137a-4edd-8037-96fbe1457686

Appendix D: AMMTEC Leach Extraction Results

Appendix D is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/ba398b1c-0a9a-4f2a-b3a0-39f15023f052

Energy Exclusive Interviews Precious Metals

MICKEY FULP | Translating the Mindset of Peak Oil to Peak Gold

Post author By admin
Post date November 18, 2018

The Mercenary Geologist Mickey Fulp discusses with Maurice Jackson of Proven and Probable how peak oil could inform investment in gold miners.

VIDEO

AUDIO

TRANSCRIPT

Original Source: https://www.streetwisereports.com/article/2018/11/18/translating-the-mindset-of-peak-oil-to-peak-gold.html
Maurice Jackson: Joining us for a conversation is the Mercenary Geologist, Mickey Fulp. Pleasure to speak with you.
Mickey Fulp: Thank you, sir.
Maurice Jackson: Mickey, one of the concerns that I think speculators are having in the natural resource space is this concept of peak gold. What can you share with us?
Mickey Fulp: Well, there’s this idea now of peak gold. And it’s really morphed out of the concept of peak oil, which was promulgated by a famous geologist/geophysicist in the late 1950s on the idea that U.S. oil production would peak in 1970 and never reach that level again. His premise was based on the natural depletion of giant oil fields discovered in the United States, and he was right. But people have sort of bastardized that concept now into gold.
They took the tack that the world was running out of oil when we had reached peak production, and we would never achieve this sort of oil production in the U.S., for example, ever again. Well, lo and behold, it took 47 years for us to recover. But now we’re producing more oil than we ever have. So this idea that the world is going to run out of a natural resource or reach peak production is fraught with difficulty.
We produce more oil in the world right now than we ever have. And next year, we’ll produce even more because demand continues to rise, at about 1.5% a year. So in the oil business, we’re now using 100 million barrels of oil a day. Five years ago, we were using about 92–93 million barrels a day. And where’s that production come? Well, it’s come from peak, or from shale oil, and technology catches up. If the demand is there, my opinion is that the supply will be found—70% of the oil in the world is still left in the ground. I’ve taken that concept and applied it to the gold business.
Maurice Jackson: And what do we see as far as peak gold?
Mickey Fulp: Well, starting in 1900, the world produced 393 tons of gold. That would be something on the order of 10 to 12 million ounces a year, more or less. Now we produce 3,150 tons per gold in 2017, an all-time high. That’s 98 million ounces per year. So more than an eight times increase. And that’s been driven in cycles of exploration, so things like economics, world economics, wars, prices of gold, all effect that production.
But the real key to increases in production, at least since gold was floated by Nixon in 1971, is the exploration cycle. Generally, what we’ve seen over the years is gold increasing, but kind of in a two steps forward, one step back way. It’s a somewhat jagged line, but with these long runs of increased production. And then we’ll have a war, we’ll have a depression, and gold protection with the war will go down; with the depression, it goes up.
And so we keep going and going and going. Since 2008, we’ve been on a steep curve of increasing gold production. The CEO of Goldcorp Inc. (G:TSX; GG:NYSE) came out in the early part of the year and said all the good gold deposits have been found. There’s no giant deposits that are going to be found anymore. And the world’s going to never produces much gold. Well, I think he’s talking his own book and if you look at Goldcorp, of course production over the last three years, it’s going down.
It’s gone down 25% from 2015 to 2017. You look at the other major miners, such as Barrick Gold Corp. (ABX:TSX; ABX:NYSE), which is down 40% off its peak around 2005. Newmont Mining Corp. (NEM:NYSE) is about the same amount off its peak production in 2006. So I would take the tack, that the major gold miners have reached peak production, peak gold. But that’s been filled.
Where’s all this additional production coming from? It’s coming from the new companies, the new mid-tiers that have been built since the year 2005. As a whole, you know, there’s about nine mid-tiers now. And then it’s also been filed by a number of small miners in all parts of the world. The majors are down something like, all told, 50% of their gold production since mid-2000s. Meanwhile, production is up about the same amount, it’s up 37% since 2008. It’s filled by new companies.
Maurice Jackson: So would you say then that the majors have a flawed business plan?
Mickey Fulp: Absolutely.
Maurice Jackson: And in what regard?
Mickey Fulp: The biggest flaw in the industry amongst the majors—and it applies to other companies too—is they’re focused on growth. And mining is not a growth industry. Mining is the value industry. So when prices were high, they lost a view of what they should be doing, which was producing high margin ounces. It’s about the margin, the cost of production, versus the amount you sell, and that’s your profitability. So they’ve had this grow, grow, grow mentality—what I would call a New York style of capitalism. It does not work in the mining industry. And it certainly has not worked for the major gold mining companies.
Maurice Jackson: So what do you share with your subscribers? Are you more focused on juniors or mid-tiers?
Mickey Fulp: Always juniors. I don’t want to own miners, to tell you the truth. I’ve focused on exploration companies. I wrote a piece a couple of months ago called Why I Don’t Want to Own Any Miners. Now I do own a few miners, but they’ve become miners from exploration companies that I own or they’ve been taken out by miners exploration. But the real value in these businesses is in the juniors. And my particular sweet spot would be the advanced explorers because I think that’s where you have the lowest risks for the potential highest rates
Maurice Jackson: Mickey, if someone wants to get more information regarding your work, please share the contact details.
Mickey Fulp: MercenaryGeologist.com. I run a free subscription service as you well know, Maurice. And to get my stock picks you need to be a free email subscriber. We have a very active Twitter feed, @mercenarygeo, 55,546 Twitter followers as of today, and we’re quite active in that venue.
Maurice Jackson: And also, please visit our website which is ProvenandProbable.com. Mickey Fulp, the Mercenary Geologist, thank you for joining us today on Proven and Probable.
Mickey Fulp: Thank you, Maurice.
Maurice Jackson: Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Disclosure:
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SPROTT’S THOUGHTS | Five Fast Lessons From New Orleans NEW ARTICLE

Post author By admin
Post date November 17, 2018

Five Fast Lessons From New Orleans

Nov 16, 2018 02:11 pm
By Albert Lu

Trader and TV personality Guy Adami speaks at the 2018 New Orleans Investment Conference, at the Hilton New Orleans Riverside, on Saturday, Nov. 5, 2018.

When Lloyd Blankfein asked Guy Adami to join J. Aron & Co. — the fixed-income, currency and commodity group at Goldman Sachs — the young trader asked for time to think about it. Blankfein’s response is something Adami remembers well: “Guy, you have all the time you need. I just need an answer before you leave this room today.”
“I was being tested,” Adami recalls. He took the job and never looked back. “I trusted my instincts … I think we’re all born with great instincts.”
The trader and TV personality has come a long way since then. His experience at Goldman Sachs eventually led him to CIBC World Markets and, from there, to CNBC where he landed a role as one of the original cast members of “Fast Money,” the trader-centric program now in its 12th year.
The move from commodity trader to TV personality was challenging. When pressed by his employer to choose between his day job and an unproven television gig, Adami once again went with his gut. “I was in my early 40s, three kids, mortgage, the whole rig, and I said, ‘I think you’re making a mistake, but if you’re asking me to choose, I choose CNBC — I quit.’”
The trader, who had been making a living trading commodities, made his biggest trade ever — he traded careers.
“Don’t allow people to define who you are” was the message he delivered to a packed room at the 44^th New Orleans Investment Conference earlier this month, where he and an impressive cast of industry experts gathered to tackle key challenges facing U.S. and global investors.
“Rich Dad Poor Dad” author, Robert Kiyosaki, urged attendees at his presentation to “learn from real teachers, those who do what they teach, not fake ones.”
Sounds like good advice, so, in case you missed the event, here are my five fast lessons.
1. DON’T IGNORE THE MATH — GOLD’S TIME WILL COME

Brien Lundin, president and CEO of Jefferson Financial, delivers the welcoming address at the 2018 New Orleans Investment Conference.

Government spending is out of control. Perhaps this is not news to you. However, upon closer inspection, the numbers are rather shocking.
In his opening address, conference host Brien Lundin outlined an inescapable web of government largesse and central bank meddling that, in his calculation, will surely send the gold price higher.
In particular, Lundin points to the gross federal debt: “It is too large right now to be managed by any other means other than some significant degree of depreciation of the dollar.”
“We can’t grow our way out of this debt. It’s crushing.”
According to Lundin, the federal debt is growing much more quickly than people realize in part due to off-budget spending. “[The] federal deficit for 2018 is projected to come in at only $793 billion. Yet, federal debt for fiscal 2018 [has] grown $1.2 trillion over the previous year because of $400 billion to $500 billion in off-budget spending.”
“If you and I decided to do off-budget accounting like this in our business, we’d go to jail.”
Extrapolating the current trendline, Lundin estimates the federal debt will reach $30 trillion by 2022 — his point being, the federal debt is already out of control.
But the situation is not without precedent.
“Back in ancient Greece there were probably Peter Schiffs and Rick Rules and James Grants walking around in their robes, saying, ‘Debt is out of control! Spending is out of control!’”
Yet time and time again, these warnings fall on deaf ears.
Lundin points out that, by the government’s own measure, the U.S. dollar has lost roughly 87% of its purchasing power since silver was removed from coinage in 1965.
“Over the wide sweep of history, when the dollar goes down, gold goes up.”
2. THE UBER BUBBLE — WE ARE LIVING IN THE BIGGEST BUBBLE EVER

Second Foundation Partners Co-Founder Ben Hunt speaks at the 2018 New Orleans Investment Conference.

This, according to Ben Hunt of Second Foundation Partners, is the bubble of everything. “As a country, you can’t be richer than your economy grows.”
Mike Larson of Weiss Ratings calls it “the Uber Bubble” and points out that, this time, the range of affected assets is much broader. As proof, he points to Leonardo da Vinci’s “Salvator Mundi,” which reportedly sold for approximately $450 million, and NFL franchises, which, he notes, are up 146% in the last quantitative easing period.
Not surprisingly, Peter Schiff, president of Euro Pacific Capital, agrees — and goes one step further. When asked about the new bearish tone on Wall Street, he responds, “I still think those warnings are too tepid; they’re just not nearly bearish enough.”
“They don’t appreciate the severity of what is about to happen. They look back at 2008 as some kind of reference point, like that’s as bad as it’s going to get.”
If you believe Schiff, things are about to get much worse.
“We have an abnormal amount of debt. Because [interest] rates were kept so low for so long, everybody borrowed more money. It can never be repaid. In fact, it can’t even be serviced if interest rates even approach normal.”
So, what will pop the Uber Bubble?
Hunt thinks surging inflation is a possibility. “It has to be something that undermines market global confidence and the ability of central bankers to bail us out … to rescue us.”

Mike Larson, senior analyst at Weiss Ratings, speaks at the 2018 New Orleans Investment Conference.

Larson suspects the correction is already underway. “We’ve gotten more defensive. I think the process of unwinding some of this is already beginning.”
“There are so many possible pins,” says Schiff. “When you’re in a bubble, it’s hard to see the pin.”
“There were a lot of pins that were pretty obvious in 2006 and 2007 … There are more pins now. It’s more obvious now that we’re heading for a train wreck.”
But while the panelists agreed on the problem, they diverged on what investors should do to protect themselves.
Larson gravitates to the liquidity of cash and the security of boring domestic stocks. “It’s important to be domestic rather than overseas. It’s important to be boring versus extravagant.”
Buy foreign equities and stay away from dollar-denominated bonds was Schiff’s conclusion. “The bond bubble, for my money, is a bigger bubble than the stock market. So, why would you want to take refuge from one bubble by participating in an even bigger bubble?”
Hunt disagrees. “We have to live in the real world. In the real world, we have stocks and bonds … we have government-rated instruments. Most of us can’t step back for five years waiting for the popping of ‘the big bubble.’ We have to play the game.”
3. HISTORY MATTERS — BUT FOCUS ON THE BIG PICTURE

James Grant, founder of Grant’s Interest Rate Observer, speaks at the 2018 New Orleans Investment Conference.

According to James Grant, founder of Grant’s Interest Rate Observer, money is not humanity’s best subject. And although our body of scientific knowledge grows with each passing year, when it comes to financial matters, he points out, we somehow keep stepping on the same rake — that inescapable pattern of financial boom and bust.
Thirty-seven years ago, when U.S. bond yields hit their peak, Grant could not imagine a situation where a speculative-grade corporate issuer such as Telecom Italia could borrow below 1%. Yet, that time has arrived. Perhaps we have not learned the business cycle lesson well enough, or at all.
The facts suggest we haven’t:

Today, $7 trillion worth of bonds are priced to yield less than 0% to maturity
Federal Reserve leverage (assets/equity) has grown from 24 (2007) to 107 (today)
Assets of the four major central banks have grown by 200% to $14.5 trillion over the past 10 years
Chinese bank assets as a fraction of world GDP have grown from 12% (2007) to 48% (today)
The ratio of BBB to speculative-grade debt has jumped from 1:1 (2007) to 2.5:1 (today)

The key, according to Grant, is to resist the temptation to extrapolate based solely on our recent experiences in asset prices. “I have come to believe, through observation and experience, that great highs and great bottoms — extremes in markets — are typically punctuated by levels of valuations that, in retrospect, quickly seem to be preposterous.”
Citing the peak in U.S. Treasury yields in 1981 and the trough in 2016, Grant suggests that the bond bull market has finally given way to a new trend.
“I invoke these facts to build — at least a working hypothesis, certainly not a forecast — a hypothesis that … a bond bear market, perhaps of generation length, began in 2016.”
4. IMPROVE YOUR ODDS — FOCUS ON “SERIALLY SUCCESSFUL EXPLORERS”

Rick Rule, president and CEO of Sprott U.S. Holdings Inc., speaks at the 2018 New Orleans Investment Conference.

In the broadest sense, mineral exploration is very seductive and very unprofitable, explained Rick Rule, the president and CEO of Sprott U.S. Holdings Inc.
“There are over 2,000 publicly listed junior mining companies in the world. If you merged every one of those into one company, the resultant company — we’ll call it Junior Explore Co. — in a good year would lose $2 billion, [and] in a bad year would lose $5 billion. So, what is the industry worth? Is it worth six times losses? Nine times losses? Fifteen times losses? What is the correct price-to-loss ratio?”
It’s true the numbers don’t lie. So where’s the seduction?
“Five percent of the listed issuers, that is 5% of 2,000 companies, generate so much wealth that they add legitimacy (and even luster) to a business that, in a good year, loses $2 billion.”
Hence, Rule believes the way to beat the poor odds is to seek out and align with “serially successful explorers.” In particular, he is partial to a subgroup of explorers known as prospect generators — those who focus on developing exploration theses as their primary value proposition.
“When you begin to think of exploration as a research and development business … like software or biotechnology … then you begin to understand the essence of exploration.”
Prospect generators focus on the intellectually intensive side of the mining business, as opposed to the capital-intensive side that most investors associate with the industry. By formulating solid exploration theses, and methods by which to test them, the teams create opportunities to bring in joint venture partners, who fund the exploration and advance projects. In this way, the owners of prospect generators dilute their interests only at the property level, not the strategic or intellectual level.
“I have invested [over the course of 35 years] in approximately 65 prospect generators … I’ve participated, now, in 24 economic discoveries and 22 takeovers.”
That’s an extraordinary record if you consider that, according to Rule, only 1 in 3,000 mineralized anomalies becomes an economical mine.
“If you look at a success rate of 22 out of 65, rather than 1 in 3,000, you understand the efficacious nature of this style of investment.”
5. THE GLOBAL SEARCH FOR OPPORTUNITY COMES FULL CIRCLE

Adrian Day Asset Management Founder Adrian Day, second from left, speaks during the Global Investing Panel in New Orleans.

On the global investing panel, CNBC personality Guy Adami found himself in unfamiliar territory as the most optimistic person on stage. Nevertheless, his concerns were apparent.
“There’s geopolitical risk right here at home,” he said, in concurrence with fellow panelist Doug Casey.
“Doug mentioned he’s a permabear. I think in this environment we find ourselves in … it actually might be the right view.”
In a wide-ranging discussion that spanned the demise of the Roman Empire to the current troubles of the European Union, the panelists explored the intimate relationship between crisis and opportunity.
“The U.S. dollar is a fiat currency, and every fiat currency in the history of mankind, starting with the Roman Empire, has ended in disaster,” Adami added.
“As you know, most opportunities come when there’s danger … I think the whole eurozone is going to break up between north and south,” said Adrian Day of Adrian Day Asset Management.
Regarding seeking opportunities abroad, Doug Casey remarked, “Before 1971 everything abroad was dirt cheap. Even backward countries are not values anymore.”
“I used to make a habit of visiting third world stock exchanges. One of the more interesting ones I visited was the Makati exchange in Manila … and there were only two guys standing around smoking cigarettes. That’s how active that exchange was in those days. There was real value in the Philippines in those days.”
But what about today?
According to Adami, “heightened volatility is coming,” and the recent market swings seem to validate his point.
“Recessions are necessary and will be 10 times worse if not allowed to naturally occur,” he said, before adding, “Central banks globally are in a race to torch their currencies … that can’t end well.”
So where is opportunity?
According to Casey, commodities are the place to look.
“The only thing in the world that’s really cheap today is commodities … In particular, if you don’t have a bunch of gold, make sure you do.”
“Gold is not a story until it’s a story,” admitted Adami, before adding, “Wow, I want to go get a Scotch now.”
I say, great instincts.
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TOM WHEELWRIGHT | This is What Happens When You Have the Right Tax Preparer

Post author By admin
Post date November 16, 2018

I’m often asked what questions someone should ask their tax preparer to make sure they’ve got the right tax preparer.

I think the questions a tax preparer asks are far more important.

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Here are 3 questions you definitely want your tax preparer to ask you.

#1: Can You Provide Additional Information to Support Your Numbers?

Your tax preparer should absolutely be questioning your numbers.

The term “GIGO” (Garbage-In-Garbage-Out) is (unfortunately) commonly used in the tax preparation industry. It refers to the following situation:

Numbers are provided to the tax preparer that are wrong, either knowingly or unknowingly
The tax preparer uses this information “as is” and does nothing to verify the numbers are correct
The end product – the tax return – is not accurate

It is not safe to assume that your tax preparer is verifying your numbers. This is why this question is so important.

Some numbers are provided via legal forms, such as W-2s, 1099s and 1098s. These forms provide a certain level of reliability that the amounts are accurate.

However, most business and investing activity is based on the accuracy of the recordkeeping so verifying the numbers is extremely important.

In order to verify your business numbers, your tax preparer needs additional information. This additional information is used to verify that the amounts reported in the recordkeeping match up and make sense.

This additional information may include settlement statements, bank statements, credit card statements, loan statements, purchase or sale documents, organizational documents, prior year tax returns and ownership documents.

While this process may not uncover all errors, it does provide a certain level of reliability and provides the tax preparer with a sense of how accurate the recordkeeping is.

If your tax preparer is not asking for this information, then odds are, your tax preparer is not verifying your numbers.

Schedule a Call

#2 Can You Provide Personal Books (Financials)?

Your tax preparer should be looking for deductions you may be missing.

An effective way to do that is to look at your books – both your business and personal books. While it is common practice for businesses to keep books, it isn’t common for individuals to keep personal books. Personal books report where your cash goes and that is key to identifying possible deductions.

If your tax preparer is not asking for your personal books or not recommending that you keep personal books, then odds are they are only using what you give them and there’s a good chance deductions are being missed on your tax return.

#3 What is Your Role in Your Business or Investing Activity?

While the first 2 questions gather the numbers to report, this question determines the best way to report them.

Taxpayers, particularly business owners and investors, usually have options when it comes to how income or deductions are reported. Understanding the taxpayer’s role in their business and investing is the key to determining where it can be reported most favorably.

Your role in your business or investing is a significant factor in determining the options available to you. When your tax preparer understands your role, then your options for reducing your taxes are much greater.

If you already have a trusted tax advisor…

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Exclusive Interviews Precious Metals

STEVE TODORUK | Get In Early With Discovery Plays

Post author By admin
Post date November 16, 2018

https://www.youtube.com/watch?v=xTDC3gTqMfE

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Investing in “discovery plays” may be a familiar concept for the seasoned natural resources investor. Within the junior mining exploration sector, the opportunity to invest in a discovery stock requires a fine balance of knowledge and the right timing, as well as experience. New discoveries face plenty of challenges so initial drill hole or surface trench results can be a key indicator as to the potential significance of a deposit.
Steve Todoruk is an investment executive as well as a geologist by training with Sprott Global. He has spent four decades in the mining industry gaining experience wearing different hats and has a track record of success identifying many of the significant discovery plays and getting his clients involved very early on around the time of their discovery announcement. Among Todoruk’s investments that have returned positive financial gains: Aurelian Resources, Virginia Gold, Hathor Explorations, Ventana Gold, Reservoir Minerals, Alpha Minerals, Kaminak Gold, Underworld Resources and Mariana Resources.
THE BIGGER THE REWARD FOR THE EARLY BIRD INVESTOR
Todoruk believes that the best time to invest in small exploration companies is when a new discovery announcement has been made. Considering that the discovery odds are stacked against the junior companies it is important for investors to be patient. Out of the one thousand-plus companies that hope to make a bona fide discovery, the mining industry might see three to five good discoveries in a given year.
If a junior company does manage to make a good discovery – then it is an opportune time for the investor to buy shares. Yet, Todoruk says the junior company still has a long way to go in its journey to success. It will have to continue drilling and grow its deposit which requires capital. This is a time-intensive process that usually takes two to three years of drilling. If the end result is positive, then a valuable asset has been created for the marketplace.
As with any asset, a junior mining company’s market capitalization will reflect the “constant revaluing and rerating” of the company. Toroduk says an investor can realize a significant financial reward if a big mining company takes over and acquires the junior miner acquiring their new deposit.
Even the best application of an investment strategy does not guarantee a positive outcome. Todoruk has witnessed his fair share of disappointments in the junior mining space including Colorado Resources after they drilled a potential discovery drill hole but follow-up drilling amounted to what is referred to as a “one hole wonder.” Geological knowledge about a discovery can help in determining whether it will be a success or not – but that is not always the case.
Todoruk also proffers that investing in the high-grade discoveries is not about banking on rising precious metals prices. He prefers to see metal grades that could be mined profitably at current metal prices and even better – at lower metal prices. If metal prices do rise from their current levels, Todoruk expects the key discovery plays to lead the charge in terms of share price.
Sprott Media’s Albert Lu sat down with Steve Todoruk to discuss the outlook for the juniors and how to spot a good discovery: click here.
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Base Metals Precious Metals Project Generators

PROJECT GENERATOR | Riverside Develops Four New Target Zones at the Cecilia Gold Project, Sonora, Mexico

Post author By admin
Post date November 15, 2018

VANCOUVER, British Columbia, Nov. 15, 2018 (GLOBE NEWSWIRE) — Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V: RRI) (OTCQB: RVSDF) (R99.F), is pleased to receive new exploration results at its 100%-owned Cecilia Gold Project (the “Project”) in northeastern Sonora, Mexico. Recent rock sampling and mapping was conducted on the Cecilia 1 claim following-up on anomalous areas identified during the reconnaissance soil sampling survey which was conducted over the larger tenure acquired earlier this year. Initially, the exploration work focused on the Cerro Magallanes rhyolite dome complex where historical drilling, mining and other work delineated high-grade gold mineralization. The most recent work by Riverside has been at the Cecilia 1 claim which covers a large area (~50km²) of favorable geology that is bisected by several large regional structures that have been found to host gold mineralization.

Over the past several months Riverside has completed a reconnaissance soil sample survey over the northeastern portion of the claim and followed this up with a sampling and mapping survey that included a Terraspec assisted alteration survey, Innovex geochemical testing, and assaying of selected areas. The soil sampling survey documented several, large linear anomalies that have now been field checked with initial sampling and mapping work. The most recent work has focused on four (4) new areas in addition to the main Cerro Magallanes target area therefore expanding the overall value of the Cecilia Project.

Riverside’s President and CEO, John-Mark Staude, stated: “Riverside has continued working on the Cecilia Project following-up on its initial soil and channel sampling programs further refining the targets on the concession. The recent program has defined several epithermal targets that show significant strike length and need to be drilled. The Cecilia 1 concession expands Riverside’s exploration footprint over a much larger area (58 km²). The fieldwork to date demonstrates the robust nature of the Cecilia Project showing large mineralized structures over significant strike lengths.”

Casa de Piedra target:

The Casa de Piedra target is east of Cerro Magallanes on the recently added Riverside concession, Cecilia 1. The target zone comprises a 2 km long shear fault vein with abundant epithermal mineralization and textures. Casa de Piedra has not seen any exploration making it a high-profile drill target. This target was first identified through soil geochemistry in June 2018 where anomalous Pb, Cu, Te and Hg were noted. In the field the Casa de Piedra target is defined by a 30 m wide N-NE trending structural corridor of altered Cretaceous clastic sedimentary bedrock. Within the main mineralized structure, widespread sericitic, silica and kaolinitic alteration is common including buddingtonite alteration; buddingtonite being a clay often found in proximity to precious metal veins. The structural zone is infilled with quartz veining, quartz veinlets and stockwork and in some areas banded quartz, vuggy quartz and grey calcite. Textures in outcrop are dominated by intact-banded veins and silicified zones and only minor vein breccias. Transport of the clasts appears to be rotated but with minor displacement; anastomosing breccia veins are common in outcrop. Later carbonates are noted, and some carbonate appears to be leached from the matrix surrounding the quartz, leaving a stringy, net texture with residue of the Mn-oxides and crustiform quartz. This mineralized structure is cross-cut by northwest-trending rhyolitic dikes that do not appear to influence mineralization. Rock sampling (24) in this area returned one sample that assayed 0.9 g/t Au and also included other elements typical of the upper parts of hydrothermal veins. This shear vein is not unique, a second large vein system, Los Llanos described below.

Los Llanos target:

The Los Llanos target is located east of the Casa de Piedra vein shear structure east of the Cerro Magallanes peak. The Los Llanos target was first defined by reconnaissance and soil geochemistry where anomalous Pb, Cu and Zn were noted. In the field the Los Llanos target is defined by a 20-30 m wide structural corridor of altered sandstone presently mapped as being 1 km in strike length and trending northeast. Gold mineralization is found in narrow anastomosing veins sometimes as stockwork but primarily as a silicified zone marked by reddish-brown iron oxides. This corridor also hosts rhyolite dikes which are sometimes parallel to the mineralized zone but also cut the zone. To the best of our understanding no exploration work has been done in this area thus making it a newly discovered vein zone. Some evidence of placer mining was noted in the area suggesting gold may have come from this vein; further exploration work is warranted on the Llanos target.

Cruz Target:

The Cruz target lies within a large structural corridor northeast of Cerro Magallanes within horst and graben structural terrain. This large northwest trending regional structure extends tens of kilometers and comes across the northeast portion of the Project, is visible on satellite images, and forms a major structural topographic feature in northeastern Sonora. At the outcrop level, mineralization is noted in veins and stockwork alteration zones of up to 100 meters wide. These zones comprise anastomosing quartz veins with breccia that generally strike N-NE (020) and dip vertical to steeply to the west. Within this 100 m wide zone stockwork show syntaxial and druzzy textures. Gold mineralization is associated with pervasive, widespread sericitic and silica alteration; sulphides are rare but noted in this area. Where these veins cut conglomerate bedrock wide areas of silicified material is noted, two out of seven samples taken from this area returned gold grades of 1.6 g/t and 2.3 g/t Au. These veins continue through the conglomerate into the adjacent granitic bedrock. Geochemistry in this area shows high Pb, Zn and Cu indicating mineralization in the northern portion of the concession may be lower down in a epithermal system.

Cruz II Target:

The Cruz II Target is located in the eastern portion of the Cecilia 1 concession. This target is also a structural corridor of silicification and veining currently mapped at about 2 km in strike length. The structure/vein strikes N-NE (020-030) and cuts through several sedimentary geological units varying in width from several meters to 20 m. Mineralized areas include anastomosing, stockwork or parallel veins with breccias; breccia is sometimes rounded but often angular. Terraspec analysis of altered rock shows pervasive silica and sericite alteration with illite in some areas. In hand sample the alteration is dominated by silicification and Fe-oxides. Individual veinlets are up to 30 cm wide with 3 to 5 parallel veins within a larger 20 m corridor. Stockwork veining, where present, is typically orthogonal and made more obvious by the hematitzation of rare pyrite, sphalerite and galena. Two of eleven samples from Riversides first pass of this area returned gold values of 0.5 g/t Au. Rock geochemistry also shows elements typical of a low-sulphidation epithermal system.

Cerro Magallanes Targets:

The Cerro Magallanes targets encompasses the rhyolitic dome complex in the middle of the Project. Riverside has conducted channel sampling on four main areas. Channel sampling shows consistent gold from the top of Cerro Magallanes at the San Jose target northeast along the Agua Prieta-North Breccia target and then through the Central and East Target areas. Highlights from this previously reported work includes:

San Jose Target – 47m @ 1.12 g/t from underground workings
Agua Prieta – North Breccia – 10m @ 3.34 g/t from surface channel
Central Target – 14m @ 2.44 g/t from underground workings
East Target – 11.5m @ 1.57 g/t

These samples do not cover the entire target thicknesses and further excavations would be needed to extend continuity thus the widths are open and provide an indication of gold mineralization context. The new target areas on Cecilia 1 east and north of Cerro Magallanes provide the opportunity to discover bulk tonnage precious metal mineralization where vein systems of several kilometers in length have been defined.

The map below (see Figure 1) shows the named zones on the Cecilia Project that have been defined by Riversides recent fieldwork.

Figure 1: Shows geological mapping and gold values of the target areas and puts in context the new target areas locations in comparison to Cerro Magallanes.

Click here to view Figure 1

Figure 2: Shows a cross section of the Casa de Piedra and Los Llanos shear targets with the vertical dimension being extended to show some of the details for the drill targets.

Click here to view Figure 2

Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the Cecilia Project was reviewed and/or prepared under the supervision of Freeman Smith, P.Geo., a non-independent qualified person to Riverside Resources Inc. who is responsible for ensuring that the geologic information provided in this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Rock samples collected were taken to the Bureau Veritas Laboratories in Hermosillo, Mexico for fire assaying for gold. The rejects remained with Bureau Veritas in Mexico while the pulps were transported to Bureau Veritas’ laboratory in Vancouver, BC, Canada for 45 element ICP/ES-MS analysis. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Standard samples and blanks were randomly inserted into the sample stream prior to being sent to the laboratory.

About Riverside Resources Inc.:
Riverside is an exploration company driven by value generation and discovery. The company has $2,000,000 in cash, fewer than 45M shares issued and a strong portfolio of gold-silver and copper assets in North America. Riverside has extensive experience and knowledge operating in Mexico and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has additional properties available for option, with more information available on the Company’s website at www.rivres.com.

ON BEHALF OF RIVERSIDE RESOURCES INC.
“John-Mark Staude”
Dr. John-Mark Staude, President & CEO

For additional information contact:

John-Mark Staude
President, CEO
Riverside Resources Inc.
info@rivres.com
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.rivres.com

Raffi Elmajian
Corporate Communications
Riverside Resources Inc.
relmajian@rivres.com
Phone: (778) 327-6671
TF: (877) RIV-RES1
Web: www.rivres.com

Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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