Categories
Precious Metals

NOVO Provides Pilbara Exploration Program Update

VANCOUVER, British Columbia, Dec. 13, 2018 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to provide an update of exploration activities and short-term objectives at several of its Pilbara gold projects.

Egina:

  • Novo’s preliminary bulk sampling program at Egina is nearing completion. An approximately 170 tonne bulk sample was recently excavated (Figure 1) and is being processed utilizing the Company’s IGR3000 gravity gold plant. Initial results are expected by the end of the month.
  • Sampling and processing protocols developed during this preliminary bulk sampling phase will enable Novo to undertake systematic bulk sampling across other parts of the expansive gravel terrace at Egina beginning after the wet season ends in March.
  • In addition to the 170 tonne bulk sample, three smaller samples weighing approximately 20 tonnes each were collected for detailed metallurgical test work including mechanical sorting tests similar to those recently undertaken on bulk samples from Comet Well (please refer to the Company’s news release dated November 19, 2018). Metallurgical test work will be geared toward developing a processing scheme suited for Egina gravels.
  • Novo anticipates trial bulk sampling and processing of a few tens of thousands of tonnes at Egina in 2019.

Karratha:

  • Assays of concentrates from recent mechanical sorting tests are expected back by the end of December. Analyses of waste material from these tests are anticipated to return the first quarter of 2019 at which time the effectiveness of mechanical sorting and its potential commercial application can be more fully assessed.
  • Novo anticipates generating a mineralization report for the Karratha gold project for submission to the Western Australian Department of Mine, Industry Regulation and Safety during the first quarter of 2019. This report forms the basis for seeking grant of a mining lease at Karratha. Novo is also working towards a native title agreement with the Ngarluma people, another key step in the process of obtaining a mining lease.

Beatons Creek:

  • A suite of 58 bulk samples, each weighing approximately two tonnes, was collected from gold-bearing conglomerates across the Beatons Creek project during 2018. Analyses from these samples are expected to return by February 2019.
  • In addition to bulk sampling, Novo undertook infill and step-out diamond drilling to enable geological remodeling and expansion of the Beatons Creek deposit.
  • Novo anticipates utilizing forthcoming data from bulk sampling and diamond drilling to develop a new resource model for Beatons Creek during the first quarter of 2019. The recently updated Beatons Creek resource (please refer to the Company’s news releases dated October 10 and November 21, 2018) includes measured and indicated resources of 345 thousand oz Au (4.594 million tonnes at 2.3 grams per tonne Au) and an inferred resource of 322 thousand oz Au (3.790 million tonnes at 2.6 grams per tonne Au).  Reference should be made to the technical report entitled NI 43-101 Technical Report Resource Update, Beatons Creek Gold Project, Pilbara Region, Australia, with an effective date of August 10, 2018 and an issue date of November 20, 2018, prepared for Novo by Leonel Lopez (AIPG- Geol. Eng. QP, SME-RM) of Tetra Tech, Golden, Colorado (the “2018 Technical Report”).  The 2018 Technical Report is available under Novo’s profile on the SEDAR website (www.sedar.com).

Talga Talga:

  • Talga Talga is one of Novo’s East Pilbara assets and is located approximately 110 km north of Beatons Creek. Gold occurs in lode quartz veins hosted by metamorphosed volcanic and sedimentary rocks of the Warrawoona Supergroup, the same rocks that host Calidus Resources Ltd.’s Warrawoona gold project approximately 35 km south of Talga Talga.
  • Recent spot rock chip sampling of veins has returned highly encouraging assay results including grades of 81.4 g/t, 46.9 g/t, 35.1 g/t and 30.0 g/t gold (these grades are not necessarily representative of mineralization at Talga Talga). Of a total of 149 samples, 68 returned grades greater than 0.5 g/t gold and 33 returned grades greater than 5.0 g/t gold.
  • These rock chip results combined with detailed mapping define a corridor of mineralized structures approximately three kilometers long (Figure 2 and Figure 3).
  • An updated geological interpretation will drive further exploration in 2019 anticipated to include a component of diamond drill testing.

Spot rock chip samples from Talga Talga were submitted to Genalysis Laboratory in Perth, Australia.  Given the occurrence of coarse gold on the property, analyses were performed on 1 kg pulverized charges subjected to LeachWell™ technique. Following LeachWell™ analysis, tailings from each sample were rinsed and dried. A 50 gram split was subjected to fire assay with OES-finish. Grades reported in this news release are a mathematical combination of LeachWell™ analyses and residual gold in tails as determined by fire assay. There were no limitations to the verification process and all relevant data was verified.

Dr. Quinton Hennigh, P. Geo., the Company’s, President and Chairman and a qualified person as defined by National Instrument 43-101, has approved and verified 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 – Excavation of a 170 tonne bulk sample of gold-bearing lag gravels at Egina. Sand and soil is first stripped off the targeted gravel layer. Yellow material at the base of the bench is weathered sedimentary rock belonging to the Mallina Formation comprising basement in this region. The targeted gravel horizon rests on top of the Mallina Formation and beneath the white line.)

(Figure 2 – Geologic map of the Talga Talga project. Spot rock chip sampling has defined a three kilometer long corridor of mineralized structures extending from McPhee’s Reward in the southwest to NW Australian in the northeast.)

(Figure 3 – Oblique view looking southwest along a three kilometer corridor of mineralized structures extending from NW Australian to McPhee’s Reward. Inset photographs show examples of gold-bearing quartz veins. Dips are generally 35-40 degrees northwest.)

PDFs accompanying this announcement are available at:

http://resource.globenewswire.com/Resource/Download/1a96bcc0-389f-4eda-8a67-421e08cb51e0

http://resource.globenewswire.com/Resource/Download/d6da8e48-7426-4f44-86d4-d195d846d971

http://resource.globenewswire.com/Resource/Download/550a7e5a-b50d-41af-9dcb-c6f56b8f402b

Categories
Precious Metals

RISE GOLD Intersects 149 gpt Gold Over 6.8 meters at Idaho-Maryland

  • 1st drill hole in 52 Vein area assays 149.3 gpt gold over 6.8 m
  • Confirms the 52 Vein area as a significant exploration target
  • Drilling of the Idaho #1 Vein target currently in-progress

Vancouver, British Columbia–(Newsfile Corp. – December 13, 2018) –  Rise Gold Corp. (CSE: RISE)(OTCQB: RYES) (the “Company“) is pleased to announce additional assay results from on-going diamond core drilling at the Idaho-Maryland (“I-M”) Gold Project.

The exploration drill program at the Idaho-Maryland continues to be successful and recent drilling tested several new targets which produced the highest-grade gold intercept to-date.

Very high-grade gold mineralization was encountered in the first hole to test the 52 Vein area. The 52 Vein area lies above the Idaho #1 Vein target and most drill holes are expected to pierce the 52 Vein target en route to the Idaho #1 Vein target.

Drill hole I-18-10 intersected a quartz shear vein and a wide zone of extensional veining. This intersection is interpreted to be a continuation of the 52 Vein where historic mining and exploration were conducted prior to mine shut-down in the 1950’s.

The mineralization in the I-18-10 intercept consists of a quartz shear vein and zones of extensional quartz veins in the hanging wall and footwall of the vein.

  • Hanging wall stringers of the 52 Vein assayed 1.8 gpt gold over 7.6 m.
  • The 52 shear vein assayed 3.2 gpt gold over 6.4 m.
  • An extensional vein in the footwall with visible gold assayed 97.3 gpt gold over 0.5 m.
  • A series of stringers in the footwall of the 52 Vein assayed 149.3 gpt gold over 6.8 m including an extensional vein in the footwall which contained visible gold and assayed 2,190 gpt gold over 0.5 m.

The mineralization encountered in the I-18-10 intercept is similar to mineralization annotated on historic mining maps and detailed in reports produced at the time. The historic operator conducted mining and exploration in the 52-Vein area in both the regular shear veins and zones of extensional veining in both the hanging wall and footwall of the 52 Vein.

The 52 Vein area is a significant exploration target. Historic exploration drifting and mining in 52 Vein mineralization to the east of the I-18-10 intercept and historic drill holes and mining to the north outline a lateral area to be explored of approximately 365 m x 495 m. Further drilling is required to determine the extent and nature of mineralization in the 52 Vein exploration target area. The casing for drill hole I-18-10 was left in-place and further testing in the area of the high-grade intercept can be done efficiently using branch holes in the future.

A summary of drill hole assay results from recent exploration diamond drilling are presented in Table 1 and illustrated in Figure 1. Collar orientation data for the drill holes are detailed in Table 2. A detailed summary of the 52 Vein area is outlined in Section 9.1.2 of the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available on the Company website and at www.sedar.com.

Additional drawings showing the 52 Vein drill hole intercepts can be downloaded from the following link.

https://riseg.sharefile.com/d-s32dcc87347e42ffb

TABLE 1 – New Drill Hole Intercept Highlights

Hole From (m) To (m) Gold (gpt) Intercept Length (m) Estimated True Width (m) * Vein
B-18-06 682.8 688.6 2.6 5.8 4.1 B10
B-18-06 766.5 775.5 4.9 9.0 8.2 B41
B-18-07 733.3 736.4 3.0 3.0 2.4 B6
B-18-07 746.5 750.1 4.0 3.7 2.8 B10 HW
B-18-07 757.0 760.8 1.9 6.8 5.4 B10 FW
Z-18-08 No significant mineralization
Z-18-09 309.7 316.4 3.3 6.7 ? Zebra
I-18-10 171.1 174.6 4.7 3.5 ? Zebra
I-18-10 958.0 965.6 1.8 7.6 ? 52 HW “Stringers”
I-18-10 965.6 972.0 3.2 6.4 ? 52 Shear Vein
I-18-10 978.0 978.5 97.3 0.5 ? 52 FW “Stringer”
I-18-10 987.8 994.6 149.3 6.8 ? 52 FW“Stringers”
Including 993.4 993.9 2190 0.5 ?

* Estimated true widths for the B6, B10, & B41 Veins are based on modeling from previous drill intercepts and historic mining. The Company is not able to reliably estimate true widths for the 52 Vein mineralization and for the Zebra Zone until further drilling is completed.

TABLE 2 – Drill hole Orientations at Collar

Hole Depth (m) Azimuth
(degrees)
Inclination
(degrees)
B-18-06 981 40 -73
B-18-07 807 331 -60
Z-18-08 318 90 -64
Z-18-09 321 80 -64
I-18-10 1025 314 -61

FIGURE 1 – 52 Vein Intercept – Plan View

Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/b97b804ae379f85f7ada785b259987fc
Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/b97b804ae379f85f7ada785b259987fc

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2255/41641_cfb76bf154553b33_002full.jpg

FIGURE 2 – 52 Vein Intercept – Section View

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To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2255/41641_cfb76bf154553b33_003full.jpg

52 Vein Area

In October 1940, the historic operator completed the deepening of the 30 Winze from the I2000 level to the I2700 level and commenced drifting on the Idaho #2 Vein to the south west. Drifting through mineralization continued beyond the expected limit of the Idaho #2 Vein into the Brunswick “Porphyrite” Block and at the forced wartime shut down in 1942 the company had completed over 400 meters of exploration drifting in continuous mineralization on an apparent new vein structure. The mineralization discovered was unusual as it had never been encountered in this area before and had an unusually flat dip in comparison to the other veins of the mine. The historic operator remarked that the discovery constituted a “wholly new development in the geology of the mine”[1].

After the mine reopened following WWII, the historic operator continued exploration in the area with significant additional mineralization discovered in 1948 showing widths up to 9 meters and assays up to 55 gpt gold. By 1951, the 52 Vein had become one of the most important areas in the mine. Abundant “specimen ore” was reported in addition to the regular gold content of quartz vein mineralization. Reports in 1951 indicate over 1400 oz of gold in “specimen ore” alone was removed from the mine in less than 2 months. Data from train car sampling is available from 1950 – 1952 which show an average diluted mine grade of ~10.6 gpt gold from mining in the 52 Vein area[2][3][4].

The 52 Vein area presented logistical difficulties due to the lack of infrastructure in the area. Moving rock to surface required a 450 m tram along I2700 level to 30 Winze, hoisting via 30 Winze from I2700 to I2000 level, a 1200 m tram on I2000 level to the Idaho shaft, and then hoisting of the ore to surface through the inclined Idaho shaft[5]. The difficulty in moving rock impeded the development of the area and was not resolved until 1954 when a connection was made to the New Brunswick Shaft on B3280 level[6].

Mineralization in the 52 Vein area consists of gently dipping shear veins with substantial extensional veining or “stringer” mineralization in the footwall and hanging wall of the veins. Stoping of the shear veins was undertaken by the historic operators with overlapping stopes and slashing of the adjacent stringer mineralization. The shear veins generally ranged in width from 2 – 3 m but mining widths exceeded 12 m in some areas where adjacent “stringer” mineralization was present. Much drifting was done in the stringer mineralization located in the footwall of the 52 Vein and in the final year of the mine’s operation the 17 cross-cut was driven 110 meters into the footwall of the 52 Vein where it was reported to be well mineralized1.

Drill hole I-18-10 intersected multiple mineralized horizons believed to correlate with the historic 52 Vein area. The intercept shows extensional veins persisting into the footwall of the 52 Vein for a significant distance with some of these veins showing visible gold.

Two historic exploration diamond drill holes are located north of the I-18-10 intercept and assayed up to 16.5 gpt gold over 9.1 m. The historic drill holes were drilled at a poor orientation to the mineralization as they were drilled sub-horizontally into the flat-lying to gently dipping structure. These historic drill holes likely did not pierce the entire 52 Vein mineralized horizon[7].

Historic exploration drifting and mining in 52 Vein mineralization to the east and historic drill holes and mining to the north outline a potential exploration area of approximately 365 m x 495 m. The 52 Vein area has exploration potential in both the shear veins and in areas where extensional veins are sufficiently concentrated to allow bulk mining. Further drilling is required to determine the extent and nature of mineralization in the 52 Vein exploration target area. Many of the drill holes that are planned for testing of the Idaho #1 Vein will also pierce the 52 Vein target area.

Zebra Zone Drilling

Two drill holes, Z-18-08 and Z-18-09, targeted the Zebra Zone target. The Zebra Zone is a unique area of the Brunswick Mine where gold and quartz veins are hosted in a large block of calcareous meta-sediments, historically referred to as “black slates”. Drill hole I-18-10 intersected “Zebra” style mineralization in similar meta-sedimentary rocks. Further drilling is required in this area to determine the orientation of the mineralization and properly test the target. Drill hole Z-18-09 intersected 3.3 gpt gold over 6.7 m and drill hole I-18-10 intersected 4.7 gpt gold over 3.5 m in “Zebra” type host rocks.

Brunswick Zone Drilling

Drill holes B-18-06 and B-18-07 successfully expanded several previously intersected Brunswick veins at depth. (See Rise Gold news releases dated August 7th, July 23rd, June 28th, and January 3rd, 2018)

Drill hole B-18-06 intersected the B41 Vein below the B2300 level, with an intercept of 4.9 gpt gold over 9.0 m and B-18-07 extended the B10 Veins below the B1880 level.

The B41 Vein is believed to be a significant target at the Brunswick Mine due to is exceptional width and increasing grade with proximity to the 6-3 Fault.

The Company’s exploration program is currently focussed on the Idaho #1 Vein target and further drilling of the Brunswick veins will be done in the future.

Drawings showing the Brunswick drill hole intercepts can be downloaded from the following link.

https://riseg.sharefile.com/d-sb5ba2faabf345869

Quality Control and Assay Methods

Richard Lippoth, M.Sc, CPG, the qualified person for the exploration drill results disclosure contained in this news release, has studied the drill core discussed in this news release and has reviewed the analytical and quality control results. Mr. Lippoth has reviewed and approved the scientific and technical contents of this news release.

Benjamin Mossman, P.Eng, CEO of Rise Gold, is the qualified person for the historic production disclosure contained in this news release. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available on www.sedar.com.

Rise has implemented a quality control program for its drill program to ensure best practice in the sampling and analysis of the drill core. This includes the insertion of blind blanks, duplicates and certified standards. HQ- and NQ-sized drill core is saw cut with half of the drill core sampled at intervals based on geological criteria including lithology, visual mineralization, and alteration. The remaining half of the core is stored on-site at the Company’s warehouse in Grass Valley, California. Drill core samples are transported in sealed bags to ALS Minerals analytical assay lab in Reno, Nevada.

All gold assays were obtained using a method of screen fire assaying. This procedure involves screening a large pulverized sample of up to 1 kg at 100 microns. Any +100 micron material remaining on the screen is retained and analyzed in its entirety by fire assay with gravimetric finish and reported as the Au (+) fraction result. The -100 micron fraction is homogenized and two sub-samples of 30-50 grams are analyzed by fire assay with AAS finish. If the grade of the material exceeds 10 gpt the sample is re-assayed using a gravimetric finish. The average of the two results is taken and reported as the Au (-) fraction result. All three values are used in calculating the combined gold content of the plus and minus fractions.

Detailed production information from the internal records of the Idaho Maryland Mine are available for the period from 1926-1955. In general, the Idaho Maryland Mines Co. appears to have been a well-run company with excellent record keeping. The qualified person believes this information is reliable but some of the source documents used by the authors of these documents are not available for reconciliation.

About Rise Gold Corp.

Rise Gold is an exploration-stage mining company. The Company’s principal asset is the historic past-producing Idaho-Maryland Gold Mine located in Nevada County, California, USA. The Idaho-Maryland Gold Mine is a past producing gold mine with total past production of 2,414,000 oz of gold at an average mill head grade of 17 gpt gold from 1866-1955. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available on www.sedar.com. Rise Gold is incorporated in Nevada, USA and maintains its head office in Vancouver, British Columbia, Canada.

On behalf of the Board of Directors:

Benjamin Mossman

President, CEO and Director

Rise Gold Corp.

For further information, please contact:

RISE GOLD CORP.

Suite 650, 669 Howe Street

Vancouver, BC V6C 0B4

T: 604.260.4577

info@risegoldcorp.com

www.risegoldcorp.com

The CSE has not reviewed, approved or disapproved the contents of this news release.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, meeting expenditure and financing requirements, compliance with environmental regulations, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law.

________________________

[1] Idaho Maryland Mines Co. Geologist Monthly Status Reports (Internal Reports). (1940-1954)

[2] Grass Valley Union. New Vein at Idaho May Go 30 Feet Wide. (Dec 1948)

[3] Los Angeles Times. New Grass Valley Gold Find Shows Vast Promise. (May 1951)

[4] Idaho Maryland Mines Co. Weekly Muck Car Sampling (Internal Records). (Mar 1950 – Dec 1952)

[5] Idaho Maryland Mines Co. Mine Manager Monthly Summary Reports (Internal Reports). (1940-1953)

[6] Clark, Jack. Gold in Quartz: The Legendary Idaho Maryland Mine. (2005) [7] Kulla, Greg (AMEC). Technical Report on the Idaho-Maryland Project. (June 2017)

Categories
Precious Metals

ABEN Provides Final Results from 2018 Drill Program at the Forrest Kerr Gold Project in BC and Provides Update on the Justin Gold Project, Yukon

VANCOUVER, British Columbia, Dec. 13, 2018 (GLOBE NEWSWIRE) — Aben Resources Ltd. (TSX-V: ABN) (OTCQB: ABNAF) (Frankfurt: E2L2) (“Aben” or “the Company”) reports analytical results from the remaining holes of the 2018 drill program at the Company’s 100%-controlled 23,000-hectare Forrest Kerr Gold Project. This series of holes (FK18-37à45) focussed on areas immediately adjacent to known high-grade gold horizons and sought to test for an extension of the mineralized area identified at the North Boundary Zone. Results show broad horizons of low-grade gold mineralization punctuated by intermittent intercepts of moderate to high-grade gold-silver-copper-zinc values (see table summary below). Drilling to date has shown that mineralization extends several meters outboard of high-grade precious metal intercepts in subordinate shear structures and vein arrays within a main mineralized core that measures 100m x 200m and remains open at depth.

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

The greater mineralized area at the Boundary Zone measures 1.5 km x 4.0 km as defined by gold-silver-copper-zinc values in soil, rock and drill core. The area features extensive talus and vegetative cover which serve to conceal prospective precious metal bearing structures with coincident gold in soil and outcrop anomalies. Only a fraction of the prospective targets at the Boundary Zone have been drill-tested to date. Oriented core tooling was utilized for the final phase of the 2018 drill program 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 permitting delay by 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. The Company maintains a healthy treasury which will allow for an aggressive 2019 exploration program at Forrest Kerr without significant dilution.

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.

Assay Results for Holes FK18-37à45:

Hole ID From (m) To (m) Interval (m) Au (g/t) (average
over interval)
FK18-37 76.00 108.00 32.00 0.12
including 90.00 91.00 1.00 1.39
FK18-38 90.00 253.00 163.00 0.10
including 116.00 117.00 1.00 2.00
FK18-39 119.00 316.00 197.00 0.23
including 201.00 202.00 1.00 14.35
FK18-40 94.00 182.00 88.00 0.39
within 94.00 266.00 172.00 0.22
including 110.00 111.00 1.00 9.23
FK18-41 99.00 238.00 139.00 0.17
including 113.00 131.00 18.00 0.66
including 113.00 114.00 1.00 9.05
FK18-42 NSR
FK18-43 NSR
FK18-44 128.00 166.00 38.00 0.30
including 137.00 138.00 1.00 3.51
FK18-45 200.00 252.00 52.00 0.26
including 226.00 228.00 2.00 3.49

*Intervals are drilled intercepts and not true widths
NSR=no significant results

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

President and CEO Jim Pettit states, “This has been a significant season for us in the Golden Triangle.  We had success early and managed to raise funds and we managed to increase our 2018 drill program to almost 10,000 meters. Granted, we did this with the understanding we would have our Multi Year Area Based Permit in hand, but, because of the extreme fires this summer, that was not to be. We did, however, manage to get a lot of good work done this year and have a tremendous amount of data to analyze to help get ready for next year. As mentioned above, only a fraction of the prospective targets at the Boundary Zone have been drill-tested to date. We also look forward to trenching and channel sampling analytic results coming from the Justin Property in the Yukon any time now and an initial winter drilling program on the Chico Property in Saskatchewan possibly commencing the end of February”.

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

Aben Resources has now received all of the finalized analytical data from the field program completed in September 2018 on their 100% owned Justin Gold Property in the Yukon Territory.  The geologic team reported 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. The new mineralization style is interpreted to be orogenic-style quartz-gold veins that bear a strong resemblance to and share similar geologic setting with Golden Predator’s adjacent 3-Aces Property. Previous exploration at Justin has successfully discovered Intrusion related sheeted veins & vein breccias along with gold bearing skarn mineralization. The new discovery at Lost Ace highlights the existence of a multi-phase hydrothermal system with the potential for overprinting mineralizing systems.

Channel sampling at Lost Ace in 2017 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. Historic drill results from the POW Zone, located 1.5 km southeast of the Lost Ace discovery, indicate a potential for bulk tonnage gold with 46.6 meters grading 1.49 g/t gold in JN12011 and 60.0 meters grading 1.19 g/t gold in JN11009.

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 has approx. $5.6 million in its treasury and no debt.

ABEN RESOURCES LTD.

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

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

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

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.

Categories
Precious Metals

ALLEGIANT Completes North Brown Drilling Program, Nevada

VANCOUVER, British Columbia, Dec. 13, 2018 (GLOBE NEWSWIRE) — Allegiant Gold Ltd. (“ALLEGIANT”) (AUAU:TSX-V) (AUXXF:OTCQX) is pleased to report on the progress of its high-impact discovery drilling campaign.  A total of 6 projects located principally in the world-class gold mining jurisdiction of Nevada are slated for drilling over a 10-12 month period, to approximately June 2019.  Drilling commenced at the Red Hills project in August 2018 and drilling at a third project, North Brown, was recently completed.  Assay results for Hughes Canyon (the second property drilled) and North Brown are expected soon.  Drilling is scheduled to resume at a fourth project early in 2019.

ALLEGIANT completed 2,036 meters of rotary drilling in 11 holes at the North Brown gold project, located on the Battle Mountain Gold Trend in Nevada.  Rocks exposed at North Brown are Paleozoic carbonate and clastic rocks, largely of Devonian age intruded by variably altered Tertiary dikes.  Surface samples at North Brown ranged from nil to 9 g/t Au. Geochemistry and alteration is characteristic of Carlin-type gold mineralization in Nevada.  North Brown is a new prospecting discovery and has not been previously drilled by any companies.

Qualified Person
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is a Qualified Person as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.  Mr. Wallace has reviewed and approved the technical content of this press release.

ABOUT ALLEGIANT 
ALLEGIANT owns 100% of 14 highly-prospective drill-ready gold projects in the United States, 11 of which are located in the mining-friendly jurisdiction of Nevada.  Six of the projects are slated for near-term drilling and all offer excellent discovery opportunity.  ALLEGIANT’s flagship Eastside project hosts a large and expanding gold resource, is district scale, and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

Further information regarding ALLEGIANT can be found at www.allegiantgold.com.

ON BEHALF OF THE BOARD,

Robert F. Giustra
Chairman & CEO

For more information contact:

Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com

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.

Forward Looking Statements

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this and other press releases include but are not limited to statements and information regarding ALLEGIANT’s drilling and exploration plans and results for its properties, including anticipated timing thereof; and the Eastside project’s resource expansion.  Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled “Risk Factors” in ALLEGIANT’s Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available on SEDAR under ALLEGIANT’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. ALLEGIANT undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

Categories
Base Metals

SOJOURN EXPLORATION Geochemical samples confirm high tenor precious and base metal values in multiple zones

Todd Creek Project geochemical samples confirm high tenor precious and base metal values in multiple zones

Sojourn Exploration Inc. (TSX-V: SOJ, OTCPK: SJRNF) is pleased to report analytical results of geochemical sampling from its 36,000 hectare Todd Creek Project, located 30 km northeast of Stewart in B.C.’s Golden Triangle.
The Todd Creek project is situated approximately 40 km southeast of Seabridge Gold’s KSM project, one of North America’s largest porphyry copper-gold deposits, and Pretium Resources’ Brucejack high-grade gold mine. The Todd Creek north and western property boundaries adjoin mineral claims actively being explored by Pretium as described in their recent press release (Pretium news release Dec. 6, 2018). Pretium’s 2018 exploration activities included drilling at their Koopa and American Creek prospects which are prospective for Eskay Creek style precious metal enriched VMS mineralization and porphyry copper-gold mineralization, respectively, and are located proximal to the Todd Creek property.
The 2018 reconnaissance sampling program at Todd Creek was completed following the closure of the property purchase agreement to acquire Millrock Resources’ Golden Triangle assets (Sojourn news release September 14, 2018), making Sojourn one of the largest claim holders in this highly prospective copper-gold metallotect. Significant results of the program are summarized in Table 1. Highlights include:
• Fifty rock chip and grab samples collected over a 0.7 by 1.2 km area within the untested Yellow Bowl Zone at Todd Creek averaged 0.68% copper (Cu), including ten samples with over 1% Cu. The Yellow Bowl Zone contains widespread Cu-rich magmatic-hydrothermal breccias and has never been drilled. Three kilometres north of Yellow Bowl, well mineralized breccias at the Fall Creek Zone returned up to 37.7 g/t gold (Au) and 5.3% Cu. • At the VMS Zone, eight samples of mineralization ranging from gossanous altered volcanics to semimassive and massive sulfides averaged 0.213 g/t Au, 30.1 g/t silver (Ag), 0.53% Cu, 0.53% lead (Pb) and 2.54% zinc (Zn), including individual assays up to 1.98% Cu, 9.15% Zn, 0.392 g/t Au and 112 g/t Ag. Mineralization has been traced over a strike length of 900 metres and has never been drill tested. • Samples from the newly discovered Smokin Zone at Todd Creek returned anomalous values in Au (to 0.266 g/t Au), arsenic (to 1120 ppm) and antimony (to 51 ppm). Mineralization is hosted in rhyolite breccias within Upper Hazelton Group mudstones, a similar stratigraphic position to the high grade Eskay Creek Au-Ag volcanogenic massive sulfide deposit located approximately 60 km to the northwest.
Table 1. Todd Creek highlight rock chip and grab samples from 2018 program (YB – Yellow Bowl; FC – Fall Creek; SMK – Smokin, VMS – VMS Zone).

Todd Creek contains widespread volcanic and intrusion-hosted copper-gold vein and breccia mineralization west of the central Todd Creek Fault, as well as polymetallic (zinc-lead-copper-gold-silver) volcanogenic massive sulfide (VMS) mineralization east of this important structure. The Todd Creek Fault is a major north-south structure which separates interpreted lower Hazelton Group stratigraphy to the west from interpreted upper Hazelton Group stratigraphy to the east. Reconnaissance sampling at Todd Creek in 2018 resulted in two significant advances in geologic understanding reinforced with geochemical results:

  1. The Cu-Au mineralization west of the Todd Creek Fault extends approximately six kilometres from the South Zone, through Yellow Bowl, to the Fall Creek Zone. Strongly altered, Cu-Au bearing porphyritic intrusions at Yellow Bowl suggest the presence of a porphyry system which has not been drill tested.
  2. VMS-style mineralization east of the Todd Creek Fault has been recognized as a much larger prospective area with the discovery of the Smokin Zone, almost ten kilometres north of the outcropping massive sulfides of the VMS Zone. Several other unsampled gossans support the concept that the VMS Zone may represent a small part of a more extensive and under-explored corridor prospective for Eskay Creek style, precious metal enriched VMS mineralization.

Yellow Bowl Corridor 
The Yellow Bowl Zone is central to a six-kilometre long corridor of strongly gossanous, altered and Cu-Au mineralized intermediate volcanic rocks, porphyritic intrusions and associated breccias. The Yellow Bowl Zone is located mid-way between the Au-enriched veins and breccias of the South Zone (historical 43-101 non-compliant resource of 207,000 tonnes grading 5.48 g/t Au, Hemlo Gold Mines Inc., 1988 Annual Report), and the multiple parallel zones of breccias and veins at the Fall Creek Zone. The untested Yellow Bowl Zone is located within a four-kilometre gap between historical drill holes in the Fall Creek and South Zones. The 2018 sampling program at Yellow Bowl, in conjunction with historical rock chip sampling, confirm Yellow Bowl represents a Cu enriched core zone, flanked by Au enriched mineralization at South Zone and Fall Creek. This core zone is interpreted as the upper levels of a significant porphyry Cu-Au system.
Fifty rock samples were collected across Yellow Bowl in 2018 and focused on recently deglaciated exposures of chalcopyrite-bearing hydrothermal breccias. The breccias have a strong east-west trend, and contain clasts of multi-brecciated quartz-chalcopyrite veins in a matrix of pyrite, chalcopyrite, and less common sulfosalts and sphalerite. These mineralized breccias are often spatially related to strongly altered porphyritic intrusions and associated hydrothermal-magmatic breccias.
The 2018 sampling data suggests a metal zonation exists between the central and southern parts of the Yellow Bowl Zone. Thirteen samples in the southern part of the zone contain higher average Cu grades (1.53%) along with anomalous Ag (average 23.1 g/t), Pb (0.05%) and Zn (0.14%), which is not seen elsewhere at Yellow Bowl. This is interpreted as a later phase of Ag-Pb-Zn enriched mineralization overprinting the southern part of the Cu-Au system. In the central part of the Yellow Bowl Zone, 34 samples averaged 0.38% Cu. However, Cu and Au values appear to increase with decreasing elevations, with 7 samples averaging 0.49% Cu and 0.19 g/t Au below 1500 metres. This includes a sample (L656607) assaying 1.26% Cu and 0.41 g/t Au in a strongly quartz-sericite-pyrite (QSP) altered intrusion.
Preliminary results from the 2018 IP geophysical survey indicate a significant chargeability anomaly underlies the Yellow Bowl Zone. Final interpretations will be released following receipt of the final report. The company aims to conduct a partner funded, first phase drill test of Yellow Bowl in 2019 for an underlying porphyry copper-gold system.
Due to time constraints, only limited sampling was carried out in the Fall Creek area (six samples) where historical trenching and shallow drilling by Noranda and others delineated multiple zones of brecciation and veining across 500 metres width and over strike lengths of up to 300 metres. Multiple drill intersections included 12.65 metres of 7.61 g/t Au and 1.58% Cu in NTC88-22 (Fall Creek A Zone). Two 2018 samples of breccia-hosted mineralization from the A Zone trench returned 37.7 g/t Au, 30.5 g/t Ag and 5.3% Cu (sample L656628) and 2.83 g/t Au, 9.8 g/t Ag and 2.42% Cu (sample L656627). High grade Cu-Au mineralization at South Zone and Fall Creek is hosted predominantly by variably hematite-altered andesitic volcanic rocks, within epithermal-like, banded, multi-phase brecciated quartz-jasperoidal silica-chalcopyrite veins.
VMS Corridor
Outcropping massive sulfides of the VMS Zone were discovered in 2008 below a receding glacier. However, the zone remains untested by drilling. Previous one to two metre channel samples of the zone returned grades up to 0.74% Cu, 1.35 g/t Au and 9.7% Zn. The 2018 samples successfully validated these tenors.
The VMS Zone is underlain by Hazelton Group mafic volcanic and volcaniclastic rocks. Pyrite-chalcopyrite-sphalerite-galena massive sulfide lenses within strong chlorite-sericite alteration selvages are hosted locally within lapilli tuff containing angular, massive sulfide clasts suggesting the possibility of multiple VMS horizons. The main massive sulfide lens ranges from 0.5 to 3.0 metres wide and is continuous for at least 60 metres along a northwest trend. Multiple lenses have been recognized and sampled and contain moderate to strong base metal values along an overall strike length of at least 900 metres. Sample S851010 was collected from a newly exposed zone of glacially polished outcrop and returned 0.17% Cu, 3.1% Zn, 0.95% Pb, 0.152 g/t Au and 27.6 g/t Ag.
Previous workers completed a property-wide VTEM airborne geophysical survey. The results of the survey indicate several linear conductors of 500 m strike-length are spatially related to the VMS Zone. These geophysical anomalies, including additional conductors identified to the south of VMS zone, have not been followed up.
The Smokin Zone is an extensive area of gossans identified in 2018 at the northern margin of an un-named glacier about 10 km north of the VMS Zone. Mapping of part of the gossanous area outlined a rhyolite breccia unit between a mudstone footwall and a coherent volcanic hanging wall in stratigraphy recognized as the upper Hazelton Group. Rhyolite clasts in the breccia are set in a matrix of very-fine sooty pyrite, arsenopyrite, chalcedonic quartz, open-space vugs and minor carbonaceous material (coal), suggesting a shallow subaqueous environment. A similar stratigraphic sequence sits immediately below the Eskay Creek VMS deposit.
Nineteen samples collected at Smokin Zone contained elevated gold pathfinders arsenic and antimony (averaging 156 ppm As and 17 ppm Sb), and locally anomalous gold and silver values, including sample L656630, which returned 0.266 g/t Au and 1.1 g/t Ag. The anomalism within this limited sampling data, as well as several newly exposed gossans and highly prospective stratigraphy east of the Todd Creek Fault, warrant an aggressive follow-up program in 2019.
Sojourn Exploration President Tyler Ruks comments: “Our 2018 Todd Creek reconnaissance program suggests that the Yellow Bowl zone, a gossan of significant size containing widespread, Cu-Au occurrences, represents the upper levels of an untested porphyry copper system. Yellow Bowl is flanked by distal, high grade gold-copper veins and breccias at South Zone and Fall Creek. Previously, the Yellow Bowl, South Zone and Fall Creek zones have been explored as distinct entities. The results of our 2018 program suggest that these zones are likely related and part of a large system, the core of which is completely untested by drilling. In addition, we have confirmed that the VMS Zone, located 5 kilometres southeast of Yellow Bowl and across the Todd Creek Fault, is hosted in interpreted Upper Hazelton Group stratigraphy, is far more extensive than previously thought and is virtually unexplored. Combined with the Smokin Zone, this large land position on the east side of the Todd Creek Fault represents a significant target for precious metal enriched, Eskay Creek style VMS mineralization. Lastly, the central Todd Creek Fault has been recognized as an important structure for further exploration. Our large land position includes 13 kilometres of this prospective lineament and we believe that there is significant potential for additional discoveries in its vicinity.”
Historical assays have not been verified by Sojourn but have been cited from sources believed to be reliable. Sojourn’s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Jeff Kyba, PGeo, Vice President Exploration, who serves as a Qualified Person under the definition of National Instrument 43-101. Sample preparation was carried out at ALS Globals’s Terrace prep lab, and analyses were completed at its North Vancouver analytical laboratory. Samples were analyzed for 35 elements including copper by aqua regia acid digestion and ICP-AES, while gold was analyzed by fire assay (30 gram nominal sample weight), aqua regia digestion and ICP-AES. Over-limit copper (>1%), lead, zinc and silver (>100 ppm) were re-analyzed by aqua-regia digestion and ICP-AES (OG-46). Reconnaissance scale rock sampling as reported here is intended to indicate a range of typical grades associated with the mineralization observed, and does not imply the grade of a larger rock volume.
For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695
Investors are cautioned that Sojourn Exploration Inc. has not verified the data from the KSM, Brucejack and Eskay Creek deposits. Further, the presence and style of mineralization on these properties is not necessarily indicative of similar mineralization on the Sojourn Exploration Inc. properties. This news release contains statements about Sojourn’s expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although Sojourn believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and Sojourn undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy or adequacy of this release.

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Categories
Precious Metals

MILES FRANKLIN News

From The Desk Of David Schectman
If one offered investors a fat tail put option that never decays or expires, costs about -1% pa to carry, has no counter party risk & no chance of ever becoming worthless, there would be a line out the door. But when one explains that this option is physical gold… no interest. – JSMineset
For a decade our stock market has gone up and up. All corrections were short-lived and a move to higher levels was always in the cards. In contrast, gold/silver have retreated from their 2011 all-time highs for 7 plus years … either retreating, going sideways, or failing to recover to any meaningful areas and holding them. In general exiting positions in our stock market to enter the precious metals arena has not paid off … with a few exceptions, of course. The point is that should our stock market go into an extended bear market, it is likely to send a wave of investors from the US into the dormant precious metals.
It is not Einstein insight. Should our stock market correct sharply and in a sustained manner, unlike these past many years, it will put a great deal of pressure on the Fed to rethink their interest rate posture. Should they backtrack, especially under pressure from President Trump, the dollar is likely to take a big hit, which will create a hefty tailwind for the precious metals prices. – Bill Murphy
David’s Commentary:
I’ve been around the block a few times. At my age, I have been through the cycles two or three times. It is a fact that history repeats itself, more or less, but checking on stories at Zero Hedge several times a day and reading the newspaper and tuning in on the TV I feel as though it’s been at least 10 years since things were this ominous.
Here are just a few of the headlines On Zero Hedge today: 2020 Presidential Election Will Be The Most Violent In American History; Why Is Every Asset Down in 2018; Nasdaq Plunges Into Red For 2018 – Worst Year In A Decade; Bear Markets Everywhere.` Over Half The World Is Now Down 20% Or More; Chinese Military Official – We Should Attack US Navy Vessels That Violate Chinese Waters; World Markets “In World Of Pain” As Nothing Can Stop Relentless Stock Selling; How To Avoid A New Are In Europe; Russian Stealth Jets To Be Armed With New Hypersonic Missiles; EU ARMY? France Riot Control Vehicles Bearing EU Flag Stoke Fear, Confusion; Japan GDP Tumbles After Biggest CapEx Collapse Since Financial Crisis…. That’s just from one day and it’s that way every day.
Ed Steer’s featured articles today included the following headlines: Dow 10,000 (Bill Bonner); U.S. Consumer Credit Hits All Time High as Credit Card Usage Soars; Credit “Death Spiral” Accelerates as Loan ETF Sees Record Outflow, Primary Market Freezes; Macron’s Defeat in Paris Sounds Alarm for Europe.
I can only imagine what “Ranting Andy Hoffman” would be writing on these pages in his “Horrible Headlines.” I’ve just highlighted a few.
There is an old adage: “Where there’s smoke, there’s fire.” President Trump and Wall Street keep telling us things are great and good times lie ahead. My pessimistic nature tells me, “I don’t think so.”
There is another trend that has been gaining strength in the last couple of years. My head is spinning from all of the offers to get rich I receive in my Email box every day. Every day I receive several recommendations of a stock to buy or a financial strategy that will make me rich. Twenty years ago, I used to try some of the strategies and recommendations.
After losing money on most of them, I no longer pay any attention to any of the recommendations. Sure, one or two may be a worthwhile tips, but most won’t and there is no way to separate the bad advice from the good. Even my daughter told me that she is not buying any stocks now (she is a traditional investor with a financial advisor managing her assets). I suggested that she use a stop-loss strategy on all of her stocks now. I hope she takes my advice.
I want to warn all of our readers that it’s risky to place orders on the Internet.
We don’t take orders from the Internet. Sure, it’s convenient to be able to buy your metals that way, but…. Today we were informed that one of the industries well-known firms, a firm that doesn’t have brokers and does all their business over the Internet, sent out an alert to all of their clients, warning them that they have been hacked. As they pointed out, “nearly all companies in America and around the world are under constant cyberattack and security incidents occur all too often.” They were hacked by a foreign-based entity who demanded an extortion payment, or they would release certain customer information obtained from their system. They determined that their clients name, email address, location and encrypted password were all compromised. Additionally, they learned that the attacker has emailed some customers with attempts to extort them directly through false threats to “wipe out your balance”. The best-case scenario here is that no harm will come to their clients, but they will have to change passwords and closely monitor their accounts. Since we are not on the Internet, we are not vulnerable to this kind of hacking.
How about some uplifting news? Of course, this is just one man’s opinion (guess), I’ll take it.
E.B. Tucker Director, Metalla Royalty & Streaming
2019 will see the start of a new bull cycle for gold and push the metal up to $1,500 an ounce, said E.B. Tucker, director of Metalla Royalty & Streaming.
“To make big money in this market, you have to see the cycles. Nothing changes. We’ve had three big cycles in gold since 2000 and we’re about to have another one,” Tucker told Kitco News.
Tucker said that the next cycle peak could reach $1,900 an ounce, but that won’t happen next year.
“We’re … (read more)
JPMorgan is at it again. Their greed has no limits.
BANK OF FRANCE AND JP MORGAN START GOLD MANIPULATIONTRADING
Macron is now also trying to edge in on the gold trading market for France. This has been the prerogative of London since 1750, but now JP Morgan (who else) has joined up with Banque de France to offer gold swaps, leases and gold deposits for central banks.  Obviously, the purpose is to attack the UK further in relation to Brexit. If they succeed, there will be yet another country that will manipulate the gold market with Morgan’s help. So, more paper gold and more manipulation of the gold market until the whole artificial gold edifice collapses whilst the physical remains as the only money which has ever survived.
“Plus ça change, plus c’est la même chose”!
(The more things change, the more they stay the same.) -Egon von Greyerz
The 200-day moving average for gold sits at 1260.93. Keep an eye on that number. It changes daily, but it is a slow-moving average.
The 200-day number for silver is not on our radar – yet. It sits at 15.56
Here are some interesting comments from Ed Steer…
Nothing has changed out there. The main-stream media is still screaming that all is well, but that is far from the case everywhere one cares to look. The Potemkin village that they’ve been propping up, painting and pointing to for at least the last decade, is coming ever closer to collapsing. Yes, the various and sundry central banks and Plunge Protection Teams have been working overtime to keep up the facade, but it’s equally obvious that more and more people now see it for what it really is.
As I’ve said before — and I’ll repeat myself again here, if the powers-that-be weren’t propping up everything that wanted to crash and burn…equities, bonds and currencies…then the world’s economic, financial monetary systems would be a smoldering ruin by the close of trading next Friday, if not before. And the longer they try to stave off the inevitable, the worse the carnage will be when it finally does happen — and it will happen. It’s just a matter of when — and the day of reckoning gets closer with each passing day.
Now I, along with a lot of others, have been saying the same thing for several years now, but that changes nothing. All it proves is that these powers-that-be have been able to keep the old apple cart up and going around the track for a lot longer than any of us thought possible. The melt-down in all things paper is still coming, regardless.
I still haven’t sold a single share of any precious metal stock that I own, or one ounce of my precious metal holdings — and added to several of my stock positions earlier this year. All of them are now down from when I purchased them, but that doesn’t change my resolve one bit.
Here, once again, is the list of precious metal stocks that I own shares in.
As I’ve pointed out on numerous occasions over the last couple of weeks, including today’s missive, that there’s a buyer for every precious metal stock being sold at these price levels — and it’s a given that they’re now held by the strongest of hands. They won’t be selling them until they make big profits — and probably obscene profits in the process.
Then there’s the last FOMC meeting of the year coming up on December 18 and 19. If the markets melt down before then, or on whatever news comes out of that meeting — and they’re showing all the signs that they just might. Then the rest of December could prove to be historic in every sense of the world.
And finally — and as I mentioned further up in today’s column, unless it gets pushed back — and Ted said that it just might, the DoJ sentencing date for that JPMorgan trader that pleaded guilty to spoofing the precious metal market, is on December 19th as well.
You couldn’t make this stuff up if you tried.
Gold to increase by 22% in 2019. I believe that is a conservative estimate. Check out the indicator below….
Casey Daily Dispatch
The Best Indicator of a Coming Gold Rally
The No. 1 indicator of a coming rally in the gold market is the gold-silver ratio. It measures the number of silver ounces it would take to buy one ounce of gold.
The average reading for the gold-silver ratio back to 2002 is 64. Today, it sits at 85, a record high. Notice in the chart below the extreme highs in this ratio in 2003, 2009, and 2016… all of which signaled a major rally in gold and gold stocks within months.
From 2004-2006, gold rose 85% after this ratio hit 80. From 2008-2011, gold rallied 171%. And in 2016, it rose another 28%.
Gold stocks – as measured by the Philadelphia Stock Exchange Gold and Silver Index (XAU) – did even better… From 2004-2006, gold stocks rose 116%. They rose 256% from 2008-2011. And they jumped another 191% in 2016.
Greg Hunter
In September, money manager Michael Pento warned, “The massive bubble blown by global central banks is unraveling now.” Look at the upheaval in markets and he was clearly correct. Now, Pento sees, “Deflation, say it again, deflation . . . . We are heading for a deflationary/ inflationary depression. That’s what we have been modeled for. That’s why we went short in September. . . . We covered the short just before Thanksgiving, and we went short again last Monday just before the crash.”
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About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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Categories
Precious Metals

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

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

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

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

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

$2 MILLION SENIOR SECURED LOAN

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

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

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

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

ROYALTY OPTION AGREEMENT AND INVESTMENT AGREEMENT

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

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

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

For Further Information Please Contact:

Minera Alamos Inc.

Doug Ramshaw, President

Tel: 604-600-4423

Email: dramshaw@mineraalamos.com

Website: www.mineraalamos.com

About Minera Alamos

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

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

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

Caution Regarding Forward-Looking Statements

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

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Categories
Base Metals Energy Exclusive Interviews Precious Metals

BOB MORIARTY’s Outlook On 2019

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

VIDEO

AUDIO

TRANSCRIPT

Bob Moriarty’s Outlook on 2019 
Contributed Opinion

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

Bob MoriartyMaurice Jackson

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

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

Disclosure: 

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources are sponsors of 321 Gold and/or 321 Energy.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Irving Resources and Novo Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Categories
Base Metals Exclusive Interviews Precious Metals

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

Trump: Why I am Increasingly a Fan

ValOro Resources (VRO), etc.

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

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

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

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

Jayant Bhandari

Associate: Rajni Bala

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

Categories
Precious Metals

ANACONDA MINING files updated technical report for the Goldboro Gold Project

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

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

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

~ Dustin Angelo , President and CEO

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

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

Category**

Tonnes

(‘000)

Grade

(g/t Au)

Ounces

(Rounded)

% Change in Grade
from Dec 2017***

% Change in Ounces
from Dec 2017***

Measured

1,611.8

4.23

219,300

+ 42%

+ 447%

Indicated

2,166.2

5.50

383,400

+ 18%

(21%)

Measured and Indicated

3,778.0

4.96

602,700

+11%

+15%

Inferred

2,126.4

6.63

453,200

+ 56%

+ 30%

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

Goldboro Preliminary Economic Assessment

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

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

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

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

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

 Mineral Resource Estimate Notes

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

Qualified Persons

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

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

ABOUT ANACONDA MINING INC.

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

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

NON-IFRS MEASURES

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

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

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

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

FORWARD-LOOKING STATEMENTS

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

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

SOURCE Anaconda Mining Inc.

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