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Bob Moriarty | Harvest Time Approaches for Low Hanging Fruit

Bob Moriarty
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Sep 20, 2021

We are in the liquidity crisis that happens at the end of all roaring bull markets when the piper shows up at the door and demands to be paid. It’s something that both Bob Hoye and I have been predicting for months. Perhaps it will be laid at the feet of Evergrande but it really doesn’t matter. It was fated to happen and someone will always be blamed. The general stock market is about to start the biggest financial crash in history.

Think of the resource market in 2008 that topped in March and kept diving lower and lower into October and beyond. I did some research into the DSI of gold and silver back then. Gold hit a low of 11 and silver a DSI of 5 on September 11th of 2008. Remarkably gold and silver both hit 10 on September 16th of 2021. That should be a tradable low. And Monday September 20th is a full moon and that tends to mark both tops and bottoms. Look for an immediate but short-term bounce.

That is one of those good news-bad news deals though. We were undergoing a liquidity event in 2008 just as we are now. Everything was getting sold because they could sell it. That’s true today. What resource investors have to understand is that this is 100% temporary. Yes, shares are getting creamed but it will end and when the DOW and S&P are much lower, gold and resource stocks are going a lot higher. But gold and silver went sideways from September of 2008 for another four months. That could happen again.

So instead of whining about how low your stocks are, you need to be trimming the dead beats and putting in stink bids for the low hanging fruit. What you do over the next four months is literally going to make you rich or keep you poor. If you think this is a disaster, you are going to end up poor. If you understand what an incredible opportunity it is, you are going to be rich in a year. Bob Hoye says the time to buy gold shares will be November but I see a lot of low hanging fruit right now.

I have written a book a year for pretty much the last five or six years. They are especially valuable today because they will show you how to avoid being part of the crowd that always gets slaughtered.

If you have not read, Nobody Knows Anything or Basic Investing in Resource Stocks you are being either penny wise and pound foolish or just plain stupid. I tell people how to make money. There isn’t any magic to it. You have to make yourself learn to buy low and sell high. Right now the mass of investors is in a panic and trying to figure out how to sell so they can catch the bottom. This is the bottom, you need to be buying, not selling and I tell you how. You can read both books for under $10. If I was a total idiot doing nothing more that putting words on a page it would still be worth spending $10 in the hope that something I say makes sense.

Frankly in 2008 there were hundreds of interesting crapshoots in the resource market. But they were just crapshoots and most of them died on the vine, as they should have. The quality of stocks today is ten times higher. I am going to cover some of my favorites but there are dozens of quality companies out there with real stories selling for pennies. Unlike any other time frame for investing that I am familiar with, you have to take a global point of view. We are in the end phase that happens after every roaring stupid bull market where people pay silly prices for NFTs of farts. We are going to transition from paper assets to real assets.

But it’s a liquidity crisis and values of what has been booming are going to plummet overnight. You have to buy what will be valuable, not what the crowd has been chasing. Gold and silver are about to have their day. While the $305 billion collapse of Evergrande will be blamed at first, we are going to learn just how many companies have been swimming naked as the tide goes out.

Figure out the companies you would like to own. Put in really stupid stink bids that you know can never be filled. They will be.

For certain, one of the greatest stories of this particular resource cycle is that of Eloro Resources (ELO-V) my last piece on them was six weeks ago. Eighteen months ago the shares were selling for $.175. They hit a high of $5.89 in February of this year and have since corrected to $3.29. That’s a 44% correction that is perfectly normal.

What I am going to say right now is not based on any inside information but rather is based on my visits to hundreds of projects. Actually both Tom Larsen and Quinton Hennigh are far more conservative than I am on Bolivia. They are also dead wrong. The Iska Iska polymetallic deposit is going to be one of the biggest silver deposits in the world. It almost certainly will be the biggest tin project. I have been telling both of them for months that this is far bigger than they think.

Both started out by thinking they would like to see a four hundred or five hundred million tonne project. And they are missing the forest because of all the trees in the way. It’s a caldera. That’s the heat source. The whole damned thing is mineralized. It will be two to three billion tonnes at least of $100 rock. So think $200 billion or $300 billion worth of metal in the ground. And I’m being conservative. That ought to be worth something.

Eloro has been crippled by how long it has taken assay labs to get results to them. By all rights, they have the money to support ten drills turning and that is what should happen but they are 3,000 assays behind because of Covid. When you drill you have to know what you are hitting to know which direction to move. In normal times Eloro would already have a billion dollar market cap. As it stands they are only worth $203 million today in spite of having $21 million in the bank.

There is a second way to own Eloro and that is through Cartier Iron (CFE-C). They own 2.12 million shares of Eloro worth an interesting $6.6 million as of last Friday. For the longest time that was pretty much their entire market value but they do have an interesting gold project in Newfoundland. There is a 10,000-meter drill program in progress on the Big Easy project now but obviously assays are the same problem as everywhere else in Canada.

I wrote a piece earlier in the year talking about both companies, Eloro and Cartier. It is probably worth reading. While the Big Easy drill program is a crapshoot, the 2.12 million-share position in Eloro is like having money in the bank.

Eskay Mining (ESK-V) is another home run out of the park that is still way below the radarscope for most investors. At their peril. Granted, it does have a market cap of $344 million today with enough cash to go into next year before having to do a raise. Like Eloro it is one of the most incredible stories of this cycle. Two years ago the shares were $.075. They hit a high of $3.15 in early February of 2021 when assays showed a major VMS discovery. But two years ago Eskay seemed like a ten year long wet dream of Mac Balkam. He carried the company on his back, convinced he had a deposit similar to that of the original Eskay Creek Mine.

He’s wrong of course. What Eskay Mining has is far bigger than the original Eskay Creek deposit. We have to have a lot more assay information before we know about the grade. The Eskay Creek mine was exceptional and the assay labs in Canada are quoting sixteen weeks for assays today thanks to the idiots in government and their panic over a bad flu season.

The original Eskay Creek Mine was a hit or miss affair with the discovery only taking place on the 109th hole. Mac brought in Quinton Hennigh as an advisor over 2 years ago and he put together a team headed by Dr. John DeDecker with help of some serious VMS people from the Colorado School of Mines. They have done things right this time and done a lot of serious technical work that seems to be showing a whole slew of VMS deposits larger than the original Eskay Creek.

All deposits share certain similarities with others of the same breed. Porphyries tend to be very big and low grade. VMS deposits were originally on the sea floor as black smokers. They tend to occur in clusters. Mac knew this and believed it for years but never had the technical team that could put it all together. Now they have.

The company is well financed into next year so all the assays will be in before they need to tap the market again. If investors will go to the Eskay website there are so many pictures and so much information that if they said more they would be violating 43-101 rules. You can look at VMS material and know what you have. They have more than two major discoveries. My biggest question is who will be the most valuable in two years time, New Found Gold or Eskay? Both are going to be worth multiples of a billion dollars.

New Found Gold (NFG-V) is about as simple a story as you will ever find. They have tonnes of high grade gold in Newfoundland with some of the highest-grade intercepts in the last twenty years. Their initial hole was a discovery hole with a 19.2-meter hole showing 92.9 grams of gold per tonne. The shares shot from $1.85 a year ago to an amazing $13.50 in June before beginning a perfectly normal fifty percent correction.

New Found Gold raised a bunch of money and started drilling a 200,000-meter drill program on their Queensway project in Newfoundland. The company has nine drill rigs turning and will be adding an additional rig shortly. If you do not understand the story you have not been paying attention to the resource market. Here is the last piece I did on the company.

The Swan Zone at the Fosterville gold mine in Australia helped to take Kirkland Lake Gold from a $2 billion dollar market cap at the time of the merger in 2017 to a high of $18 billion. The Swan Zone was deep, expensive to mine and only had just over three million ounces of gold. The Keats/Lotto Zones at Queensway are much closer to the surface, similar grades to that of Fosterville and a lot more gold than the Swan Zone. If you don’t own any shares of NFG you are going to be at the airport when your ship sails in.

With all these stocks that are now the low hanging fruit, you need to be looking for those who have been hammered the most. An almost identical story to that of New Found Gold and on the same mineralized trend is that of Labrador Gold (LAB-V). Lab Gold is in the midst of drilling a 10,000 meter drill program at their 100% owned Kingsway project immediately northeast of New Found Gold. Lab Gold has four drill rigs turning and is generating the same sort of high-grade intercepts as that of New Found Gold.

Labrador Gold was as low as $.30 in March of this year before assay results started flowing showing that they are on the same structure as New Found Gold. The shares shot higher with each release until they hit a high of $1.85 in June.

I started selling some of my shares that I bought in the last year and some I had bought years ago for about a dime. If you are trying to prove just how smart you are, go ahead and marry good stocks with high potential. You can watch them go up and down like a bride’s nighty and you don’t make anything. If on the other hand you buy stocks to make money, you have to learn how to trade them in and out. You will have that opportunity every year. LAB has had a five hundred percent range in the last six months. If you can’t make a profit on a stock with that sort of range, you are going about it in the wrong way.

Trade the damn stocks like baseball cards. They are like lottery tickets. To profit you have to buy low and sell high, unlike the weak hands that want to buy high and sell low.

I make the perfectly valid point in my books that if nothing else has changed on a stock that you have fallen in love with except the price, when it tumbles, instead of seeing it as a problem, treat it as an opportunity and buy more. Lab Gold is a screaming good deal after a 60% drop in three months.

Sokoman Resources (SIC-V) is located in Newfoundland but west of where Lab Gold and New Found Gold are drilling. They had really great drill results for years but weren’t doing a great job of telling their story and as a result got little respect from the market. They talked to me in March. I was as direct with them as I am with everyone else I deal with. If you don’t tell your story, you don’t have a story.

I wrote the company up and all I did was put the information out that was already available. There was no magic to my piece other than I did a better job of telling the story. The stock shot higher and touched $.78 in June before starting a similar correction of 60% as did Lab Gold. So officially as far as I am concerned, nothing has changed except the price and it is cheap today.

There are some times when buying a stock has the potential for getting you into serious legal problems. Such is the case of White Rock Minerals (WRM-AX, WRMCF-OTCBB). If White Rock got any cheaper and you bought shares, the Bobbies would be at your door shortly thereafter for stealing. No shit. This is the most absurdly under priced stock I have ever owned.

White Rock is an Australian listed company with OTCBB listed shares for American and Canadian investors. It has a pair of world class potential projects in Alaska including a VMS project with a $3.5 billion dollar rock in the ground 43-101 and a couple of interesting gold projects worth drilling the crap out of. Alas they signed up a drill contractor who thought he was a hooker and he screwed them royally.

You have a short 100-120 day work period in Alaska. Winter ends late and starts early. If you don’t have drills and crews in place by late June you are screwed for the year. The drill contractor brought the drills but only half the men he promised. While that’s a common story in the north this year, it has cost White Rock tens of millions of dollars in lost market cap. They aren’t producing much in the way of drill core to be sampled. In addition the assay labs are 4-6 months backed up so they may as well be tossing a dart at a dartboard to know where to drill. Since Alaska has been the primary focus, investors are throwing in the towel at exactly the time they should be throwing money at White Rock.

In addition, WRM merged with AuStar Gold in August this year to acquire the Woods Point Gold project in Victoria in Australia with 670 square kilometers of exploration potential. The project is near the Fosterville Mine owned and operated by Kirkland Lake Gold. It includes the former Morningstar Gold mine showing past production of over 800,000 ounces of gold at 26 grams gold per tonne. Currently White Rock has one drill turning underground. The core from the drilling shows visual gold. Australia has the same problem with assays as the US and Canada so results will trickle in over the next few months.

White Rock did come up with incredible drill results already from the Red Mountain silver/zinc/lead VMS in Alaska. On the 16th they released the first assay for this year showing 0.2m @ 11.9% Zinc (Zn), 2.8% lead (Pb), 0.9% Copper (Cu), 63g/t silver (Ag), and 0.2g/t gold (Au), from 184.8m down hole. This polymetallic suite of metals can also be summarized as a 17.5% Zinc equivalent grade. That’s not a wide intercept but it does indicate the strike extends further than they realized. Remember this project already has $3.5 billion worth of high grade gold in the ground.

White Rock has another Australian asset in the Mt Carrington gold and silver project with 352,000 ounces of gold and 23.2 million ounces of silver in a JORC resource. That should be worth something.

WRM has been crippled this year by a lack of obvious progress in Alaska. I’m not concerned, the gold and silver are still there regardless of the lack of progress on the assay side. The current drilling at Morningstar could cause an overnight rerating of the shares. As of right now White Rock has a market cap of about $39 million Aussie with somewhere around $12 million in cash. I was adding to my already very large position a week or so ago at $.24 USD and thought I was robbing a bank. It’s $.19 USD now some 20% cheaper in a week.

I’m not going to spend a lot of time talking about Novo Resources (NVO-V). I wrote a book nine months ago just before they poured the first gold bar at Nullagine. What Became of the Crow? has been very well received with some of the highest ratings I have ever seen on any book. In the book I talk about a flight I made delivering a Rockwell 685 aircraft to Lang Hancock in 1976. I had Hancock’s son in law with me on the flight and I had to put up with 85 hours of him talking about how the Pilbara had the world’s highest grade banded iron formation consisting of 30% of the entire world’s reserve of iron.

Quinton Hennigh came up with a theory that says gold precipitated out of salt water in exactly the same way as iron did around 2.8 billion years ago when single cell creatures began to produce oxygen and that changed the chemistry of the water. His work in the Pilbara over the past dozen years has pretty much proven his theory. If iron and gold each precipitated out of salt water about the same time under the same conditions, if you have the world’s biggest iron deposit in the Pilbara (and they do) by necessity you have to have the world’s biggest gold deposit.

Novo is producing gold today. With a market cap down to right at $500 million CAD it is cheaper with less risk than it has been for years.

The biggest problem in Australia right now is the price of iron and it has blown the entire economy up. It’s about to get way worse. Iron hit an all time high price of about $215 USD in May of this year. That has caused chaos for everyone doing exploration work or mining anything other than iron in the country. The iron companies were throwing money at everyone with two basic attributes. As long as they were warm and had a heartbeat they could earn upwards of $25,000 a month. And everyone thought that was just wonderful.

Did I fail to mention we are in a liquidity event? Since May the price of iron has fallen off a cliff. Last Friday the price dropped under $100 a tonne. UBS predicts $89 a tonne average for next year. A lot of those warm bodies counting on paying off the mortgage this year and still having some spare change for a celebration Barbie are in for a rude awakening.

Labor has been a giant problem for every non-iron company in Australia. Novo has lost a lot of good people who ran over to the iron companies for higher wages. In addition, the iron companies raided every government agency to hire anyone who could spell ionr correctly. So permitting has slowed to a snail’s pace and labor turnover is literally out of control.

The liquidity event is not over, it has just begun and will be getting far worse sooner than anyone but Bob Hoye and me realize. But I suppose I should mention you now have a clue.

Lion One (LIO-V) in Fiji is well cashed up with $57 million in the bank, is permitted to begin construction of a mill and they have their own assay lab so they are not being held hostage by the failure of worldwide assay labs. But they were trying to run the project out of Perth since Australia has turned back into a prison colony. Prisoners don’t do a great job of running mining projects with the sole exception of they do a great job of busting up big rocks into small rocks.

Lion One has been trying to get two highly experienced exploration guys into Fiji for six months. I’ve flown through Fiji dozens of times. The people are industrious, hard working and intelligent. But they are not experienced in drilling and exploration without professional help and supervision. That exists now.

The guys got into the country a month ago and finished quarantine. Lion One now has six drills turning and I expect the shares to get back to all time highs in the next six months regardless of the giant crash we are in. They have millions of ounces of gold with a market cap of $172 million with $57 million in cash. I think Lion One is still my biggest position and I was buying shares at over $2. The shares are down 65% from their high but that isn’t going to last for long.

I-80 Gold (IAU-V) only went public in April at $2.36. It rocketed higher to $3.54 about ten days ago before dropping back to the current $2.52. The company has a $587 million market cap with a 770,000 ounces of high-grade gold deposit in the Granite Creek underground mine. IAU management is highly experienced in Nevada and is doing deals with other mining companies to combine resources.

Granite Creek has an average of +11 g/t gold but the material is refractory. I-80 plans on trucking the material over to an autoclave they control at Lone Tree.

In all categories and deposits, I-80 controls over 14 million ounces of gold. An almost $600 million market cap may seem expensive but that’s about $40 a resource ounce. It should probably be $120-$200 an ounce at the stage they are.

This year I-80 plans a 20,000-meter drill program at Granite Creek. The first assays came out three weeks ago and they were what the company hoped they would find, 51.1 meters of 6.8 g/t gold. Because the company has so many irons in the fire I highly suggest investors take a look at the company presentation because it is complicated to explain.

On occasion I do look at other companies that just resource companies. Someone came to me in the middle of the summer and wanted me to look at a young company that wants to use new technology to improve battery charging performance and behavior. I did and wrote about it. The company is called Neo Battery Materials (NBM-V). It went from about $.20 to $1.31 in a month. It continues to have extraordinary liquidity.

This is going to get a little technical.

It has been well known for years that to improve battery charging time and performance the battery manufacturers should use some form of silicon in the anodes. But the metal expands under charging and is not flexible. So companies are trying various forms of silicon nano particles or micro particles. The micro particles are eight to ten percent of the cost of the nano particles. NBM is achieving exceptional performance improvements through the use of micro particles while keeping their cost of production low. Such anodes stand to drive down battery costs on a dollar per kilowatt-hour basis that in turn will drive the cost of mass-market electrical vehicles lower.

The company is sending out samples on a daily basis of their proprietary silicon anodes to battery producers, the developers of solid-state batteries and automotive manufacturers. Since their initial tests are proving so productive NBM is planning upgrading a pilot plant to a semi-commercial facility with production of 120 tons of anodes per year that would supply anodes for up to forty thousand vehicles per year.

The next leg up in the lithium battery market will be the production of solid-state batteries. NBM has already achieved exceptional performance using a sulphides-based all solid-state electrolyte. This would also solve the flammability issues of current batteries in the market place.

NBM has some of the most experienced battery scientists in the world working with them with five patents already in hand. Similar companies in the silicon anode market place have market caps far higher than NBM’s $65 million. If you like the EV market, NBM offers attractive potential for price appreciation.

Goliath Resources (GOT-V) is another great stock that has gotten absolutely hammered in the last six weeks with the stock dropping from an all time high of $1.62 in August to $.76 on Friday for a 55% decline. I think that 100% of the issue is the criminal delay in assay results.

Company management has been posting a number of news releases giving the length of the intercept in terms of quartz-sulfide veining. And while in that neck of the woods that “should” be an accurate measure of grade potential $5 bucks and some quartz-sulfide veining “should” get you a small cup of coffee at Starbucks.

The Surebet Zone is in the Golden Triangle and actual assay results so far indicate a high degree of correlation between the sulfide veins and the actual gold and silver numbers. This is all part of a fully funded 6,000 meter drill program. In a liquidity crisis investors want, indeed, demand hard numbers. The price of the shares is back to where it was in May taking virtually all the risk out of buying the shares. And who knows, maybe assays will come in some day.

The next company, Solis (SLMN-V) is going to be a simple story to tell and for investors to understand. The company has an option on a copper project in Chile with a historic 10 million tonne resource of near surface high-grade copper/silver. At today’s prices that is worth $94.13 a tonne in USD or just short of a billion dollars.

(Click on image to enlarge)

The option calls for Solis to pay $5 million to the vendor over a four-year period and to invest $5 million in exploration over the same four years. That will get them 100% ownership subject to a 2% NSR. But Solis is not interested in a $940 million copper/silver project in Chile where the government just turned really stupid.

Solis believes the near surface mineralization comes from porphyry located about 300 meters down. Initial plans call for a 2,500 meter drill program on one of five different targets over a ten square km package identified with technical studies.

One of two things happens. They either hit what they are aiming for or they don’t. Should they hit the shares go to $500 million and current shareholders get rich. The market cap of the company today is $8.44 million. If you need me to work out the potential for you, you really should be investing in something safe like Evergrande or Tether.

Golden Lake (GLM-C) is another dead easy to understand company. The company has a $10 million market cap and is in the midst of a 6,000 meter drill program on their Jewel Ridge gold project in Nevada on the Eureka trend. Results to date show economic value of gold near surface.

Investors are not big fans of stocks found on the C-Exchange in a declining market but when the bull shows up again they get real popular. With a $10 million market cap and options on two highly potential projects, it’s a cheap lottery ticket.

Provenance Gold (PAU-V) is another story that is so cheap it screams, “Buy me. Buy me.” The market cap is a tiny $10 million; they have only 61 million shares outstanding. The company is operating in northern Nevada near the Idaho border. That’s interesting to me because company President Rauno Perttu (try bending your tongue around that Finnish origin name) believes the project is an analog of the Black Pine project just north of the border.

I have been to Black Pine twice and frankly I think the way they read the project is 100% correct. Given that Black Pine has a 2 million ounce gold resource starting at surface, a $10 million dollar company with a similar project is damned cheap. Liberty Gold has a market cap 26 times larger than Provenance.

Their primary project today is the White Rock oxide gold project. The project manager is Steve Craig and I have known him for years. He is one of the top geos in Nevada. Between Steve and Rauno, you have a first class management team. White Rock is one of those projects that everyone knows about but no one has ever gotten a real handle on. PAU management believes the project holds a near surface 3.2 by 1.6 oxide gold target. In the past operators were attempting to find the feeder structures.

Provenance theory holds that instead of trying to find the structures with blind drilling, they should simply drill serious stepout holes to define ounces. Last week they announced results from an 800-meter stepout hole showing 117 meters of gold mineralization starting from surface. The hole intercepted 85 meters of 0.369 g/t gold. Within that hole were higher-grade intervals of 0.778 g/t Au from 38 meters to 46 meters. In Nevada oxide gold of those grades is all economic. I believe those assays tend to prove their theory and there will be a lot more similar holes. That is exactly what Liberty Gold was finding at Black Pine.

This is one of the few stocks that has actually acted well over the past couple of months. It is so cheap that I took out a lottery ticket on it and bought some shares. If you buy stocks when they are cheap and sell them when they are dear, you can make a lot of money. It’s not rocket science.

The next six weeks is going to be incredibly dangerous and many people will be wiped out. I own most of these stocks and all of them are advertisers but the combination of a tiny DSI for gold and silver and a full moon on September 20th makes now an interesting time.

As always, I don’t share in your profit or your losses so you need to do your own due diligence. I am biased so take some responsibility for your own actions.

Eloro Resources Ltd
ELO-V $3.29 (Sep 17, 2021)
ELRRF-OTCQX 61.85 million shares
Eloro website

Cartier Iron Corp
CFE-C $.12 (Sep 17, 2021)
CRTIF-OTCBB 140 million shares
Cartier Iron website

Eskay Mining Corp
ESK-V $2.12 (Sep 17, 2021)
ESKYF OTCQB 160 million shares
Eskay Mining website

New Found Gold Corp
NFG-V $7.15 (Sep 17, 2021)
NFGFF-OTCBB 157.4 million shares
New Found Gold website

Labrador Gold Corp
LAB-V $.78 (Sep 17, 2021)
NKOSF-OTCQX 152.9 million shares
Labrador Gold website

Sokoman Minerals Corp
SIC-V $.35 (Sep 17, 2021)
SICNF OTCBB 200 million shares
Sokoman Minerals website

White Rock Minerals Ltd
WRM-AX $.275 Aussie (Sep 17, 2021)
WRMCF-OTCBB 142 million shares
White Rock Minerals website

Novo Resources Corp
NVO-T $2.04 (Sep 17, 2021)
NSRPF-OTCBB 245 million shares
Novo Resources website

Lion One Metals
LIO-V $1.12 (Sep 17, 2021)
LOMLF OTCQX 117.5 million shares
Lion One website

I-80 Gold Corporation
IAU-V $2.52 (Sep 17, 2021)
IAUCF-OTCQX 185 million shares
I-80 Gold website

NEO Battery Materials Ltd
NBM-V $.745 (Sep 17, 2021)
NBMFF OTCBB 87.4 million shares
NEO Battery Materials website

Goliath Resources Limited
GOT-V $.76 (Sep 17, 2021)
GOTRF OTCQB 55.1 million shares
Goliath Resources website

Solis Minerals
SLMN-V $.25 (Sep 17, 2021)
WMRSF OTCBB 87.4 million shares
Solis Minerals website

Golden Lake Exploration Inc
GLM-C $.17 (Sep 17, 2021)
GOLXF OTCBB 59.7 million shares
Golden Lake website

Provenance Gold Corp
PAU-C $.155 (Sep 17, 2021)
PVGDF OTCBB 61 million shares
Provenance Gold website

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Bob Moriarty
President: 321gold
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321gold Ltd

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Dow 1929 Vs. Dow 2021?

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Dow 1929 Vs. Dow 2021?
Bob Moriarty
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Sep 11, 2021

The DOW JONES Index peaked on September 3, 1929 at 381.17. It ran lower into October 24th, 1929 when the market plunged 11% on the open from the preceding day. We call that Black Thursday even though the market closed only slightly lower.

The crash continued Monday October 26th when the Dow tumbled 13% and another 12% on Black Tuesday October 27th. The Great Depression had begun. The crash didn’t stop until July 8th, 1932 with the Dow down to 41.22, an incredible 89.2% drop.

I think it is going to happen again.

Soon.

Very, very soon.

For months I have been suggesting that I believe the bubble is going to burst and we would have tops in the Indexes from mid-August into September before declining into a crash in late October.

So far, so good. The S&P peaked at 4545.85 on September 2nd. The DJI topped on August 16th at 35631.19. The Nasdaq high point was on September 7th at 15,403.44.

Most investors today have never been through a real market crash and have no idea of what is coming. You cannot have the extremes that we have today without a full reset back to the norm. Since the market is more out of balance than it was in 1929 and 2000 I would not be surprised to see a market crash of similar dimensions, that is to say a 89-92% decline.

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Bob Moriarty
President: 321gold
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321gold Ltd

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The Covid Shot Wins a Gold Star For Attendance

Bob Moriarty
Archives
Sep 13, 2021

Never before in our nation’s history have we been ruled by such a collection of so many massive fools and swindlers. In 2020 we had the most fraudulent election in the US yet the MSM and most observers just nodded their heads. I am not a pro-Trumper so this isn’t a Rah Rah Trump rant. But guys, unless you can neither see nor think, it was a stolen election. I am very much a fan of fair elections. For sure we did not have that in 2020.

Just recently we got to see the long-term effects of handing children gold stars for showing up for class in the debacle surrounding the fall of Kabul. For now we can safely ignore the wisdom or lack thereof in conducting a war in the “Graveyard of Empires” and focus on the utter lack of planning on how to escape the Briar Patch we insisted on jumping into.

When you fail to reward success, when every child receives a gold star just for showing up, you make everyone equal as a failure. But we have important positions where we need people comfortable with success and winning. War, certainly, is one unless you have a country that fights wars just to fight wars as the US has turned into.

The only reasonable reasons to ever go to war are to defend your country and to achieve peace. You fight for peace, not for more and continuous war.

So we have legions of pompous over decorated clowns in uniform who know what it is like for a man to walk in high heels because that is a new element in training so men can understand what it is to be a woman. Why would I want to know what it feels like to wear high heels? Women wear them under the theory that appearing taller makes them more sexually attractive and isn’t that what it is all about?

I don’t think anyone finds men wearing high heels attractive. Actually it makes them look like idiots. Women volunteer to suffer the physical effects of wearing high heels. Men do not. It is a required part of officer training today. What a wonderful idea.

General Mark Milley is the ultimate recipient of gold stars no doubt going back to when he was in 1st grade. He showed up for everything and was taught we are all equal. Which is stupid. We are not created equal, we may have equal rights but some are tall, some are short, some bright, some stupid but none equal.

So we have populated our entire “leadership” class with overeducated and over decorated fools who never won a third grade hop scotch game much less anything of significance. Why don’t we question why we haven’t won a war since WW II? We didn’t even win that, the Russians did. Yet we continue to pour gold and the blood of our children into fighting minor countries who are and never were a threat to the US. And we lose every time.

If you have a few minutes to spare look at the obscene hardware decorating our top military officer. Is it any question as to why we get our butts kicked by squads of goat herders actually willing to defend their country, unlike Americans today? Why bother planning on how to exit a stupid war?

Milley looks like a cross between a North Korean border guard and a Pomeranian bellhop. On his chest he has twenty-two medals for attendance and nine bits of silver washed tin showing that he turned up for class. But he’s never won a battle, much less a war.

So it is with the Covid “vaccine.”

We have known for over a year how to prevent the bad flu that we now call Covid. And we have known for over a year how to treat it without people dying of kidney failure because they were treated with a drug owned by Fauci and Gates called Remdesivir that even the WHO admits is ineffective. “The panel made a conditional recommendation against the use of remdesivir in hospitalized patients with COVID-19, regardless of disease severity.”

Bill Gates and Fauci have a dog in the fight. They don’t want cheap and convenient, indeed long-term tested drugs to treat what is really nothing more than a bad flu that you don’t want to catch. Gates brags on video about making twenty times his investment in “vaccines.” So when Orange Man suggested that a magic potion to cure Covid would be available before the end of 2020, Fauci and the MSM immediately jumped on his case with a full court press. How absurd of the president to make such a silly prediction. So the election came and went and on December 11th the first “vaccine” was released.

There is a bit of a problem calling the jab a “vaccine”. Until 2015 to be called a vaccine, it required a killed or weakened infectious organism to ‘PREVENT” the disease. That morphed into “The act of introducing a vaccine into the body to produce “IMMUNITY” to a specific disease. By September of 2021 after billions of doses of the Covid jab the powers that be realized that in fact the shot didn’t prevent the disease and didn’t provide immunity to the disease. Actually the shot made Covid a lot more contagious. The majority of new cases were from those “vaccinated” so now the definition of a “vaccine” effective September of 2021 says, “The act of introducing a vaccine into the body to produce “PROTECTION” from a specific disease. We have gone from prevention to immunity to protection in short order. No doubt soon the definition will say “any drug designed to make more money for Fauci and Bill Gates because they are so concerned with our health.”

When you award medals for attendance you get generals like Milley who couldn’t fight his way out of a wet paper bag. When you hand out high office to the most mediocre based on paper qualification without any sign of real leadership you get a totally useless Secretary of Defense appointed because of his color not any real talent. You get a giggling Vice President appointed because she is part black and female. You get a PINO who can’t remember his own name or what day it is.

The Covid “vaccine” got a gold star for attendance. It doesn’t actually prevent Covid; actually it makes those who have taken the jab super spreaders of a far more contagious variety of the virus. We are in the midst of an explosion of new cases of Covid crowding out hospitals. Fauci and the MSM want to blame those who have chosen to not take the shot. But if they haven’t changed anything, how can they cause new cases? No one seems to have thought that through. It’s those who took the jab that made the difference.

Indeed, it is common and accurate knowledge that the flu, any flu, is worse in winter and least in summer. Here we are in the late summer and Covid cases are exploding. It hasn’t occurred to anyone that a chart of new cases and a chart of the number of people taking the shot are identical. Cases are skyrocketing because people take a shot that makes them more susceptible to the disease, not less. Now the definition of “vaccine” means the protection of Fauci and Gates from not having enough money yet.

Here is how the Covid shot has earned gold stars for attendance.

  1. The shots have killed tens of thousands of people and caused severe side effects in millions. That’s certainly worth a star.
  2. The shots have forced the virus into changing to protect itself in exactly the same manner as does over prescribing antibiotics makes germs mutate in a deadly way. Another gold star.
  3. It contains no weakened form of the virus so it doesn’t prevent the disease. One more star.
  4. It doesn’t bother providing immunity to the virus. Another star.
  5. It not only doesn’t provide protection to those who took it, it almost guarantees they will catch it again.
  6. It’s a free lottery ticket to ADE. You will love getting ADE. That’s another star.
  7. Those who actually got Covid prior to the “vaccine” picked up a natural immunity to the virus and many of the later variations after mutation. Take the jab and your natural immunity to the virus plummets. In Israel those who took the shot were thirteen times more likely to catch the virus again. Some protection. Such a deal. Another star.
  8. A Navy doctor with access to the military records of Covid deaths and adverse effects from the jab concluded that taking the series of shots increased the probability of mortality by fifty to sixty fold for those in the military. Young men and women in the military are at near zero risk from Covid but at substantial risk from the “vaccines.” That ought to be worth fifty to sixty gold stars for the “vaccine” showing up.
  9. The “vaccine” is the only medical treatment in history where its utter failure is blamed on those who didn’t take it.

Making everyone equal does not mean everyone is going to succeed in life. Actually it means everyone is going to fail together because they no longer understand what succeeding actually means.

Many governments around the world are trying to force people into taking the experimental gene therapy because they fully understand exactly what I am saying in this article. They need to have everyone to have the experimental medical treatment because when mass dying begins people are going to be very angry with those who caused it. Blame the non-jabbed means an attempt to deflect responsibility in exactly the same manner that Biden, Harris, Milley, Austin and the entire chain of command over the botched war and withdrawal in Afghanistan refuse to accept any responsibility.

But we will hold them responsible and many of the experts are going to find their heads stuck on pikes. People around the world are angry and demand someone be accountable for this disaster that is entirely man made.

###

Bob Moriarty
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A Sole Marine Stood Up to Defend America. He stands alone

Bob Moriarty
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Sep 6, 2021
In response to the clusterfuck going on in Afghanistan recently a US Marine Lieutenant Colonel posted a video asking why no one had been held responsible for the biggest military failure in American history surrounding the poorly planned and executed withdrawal. He demanded accountability. So his superiors fired him. He has since resigned leaving a multi-million dollar retirement on the table. Wouldn’t it be wonderful if we had more than one guy in the military demanding accountability?

I was in the service, the Marines, for almost six years. I served from July of 1968 until March of 1970 in Vietnam. I’m reminded today of a mission flown by a Huey Gunship squadron out of the Hue Phu Bai air field in March of 1970. The CIA had these Marine gunships escort some troop choppers into Laos where they inserted a small recon team made up of SOG people. The intent was to determine what the NVA troops were up to as they strolled down the Ho Chi Minh trail.
One of the gunships took heavy fire and crashed in flames. A roommate of one of the two pilots kept flying out to the site in the hopes of finding survivors. Nearly a week after the crash he was flying over the scene and someone almost naked, just wearing green skivvies shorts ran out of the trees and waved his hands back and forth. The chopper pilot flew over the man and recognized his roommate and friend.

The lieutenant flew back to the Marine base and reported what he found. He wanted to launch an immediate rescue mission. The request literally went to the top of the CIA and the decision was made to leave the survivor alone in the jungle to die. After all, lives of Marine chopper pilots were pretty cheap to the CIA. And while boots are taught in Boot Camp that the Marines never leave their dead behind, in this case it didn’t mean anything because after all, the pilot wasn’t dead yet.

The Marine pilot who found his friend out in the jungle hit the roof. He grabbed a crew chief and the first fully armed Huey he could put his hands on. He took off and immediately called the tower and told them he was going to blow the headquarters building up with all his rockets and then strafe any survivors unless a rescue mission was launched. The Group Commander, a bird Colonel realized the Lieutenants had a lot of experience shooting up the jungle so blowing up a nice command post was not a problem.

The mission was launched. They rescued the downed pilot and returned him to the base. For keeping his mouth shut he continued to be promoted until his retirement. The lieutenant who threatened the base headquarters was never again promoted and he left the service. But there was at least one brave Marine who would stand up and demand accountability and forced people into doing what they should have done in the first place.

While it’s true that when people sign up for the service they have certain legal obligations to their superiors, their superiors have unwritten but just as meaningful obligations to the troops under them.
Today the PINO, the President In Name Only, cannot speak a paragraph without reading from a card in front of him. He came into office fully senile and everyone simply ignores it. Years ago he was confusing his granddaughter with his dead son. I suspect that the plan was for him to hold the position for a few months only to be replaced by his Vice President, Kamala Harris. She is the closest thing to a hooker that has ever held such high office. She climbed the ladder of political success one rung at a time, on her knees. Her sole talent seems to be a propensity to giggle at inappropriate moments.
It’s what happens at end of empire when people take office as a result of the most corrupt election in US history. I’m not supposed to mention that, of course. Arizona held a full audit of the vote. The Democrats were so concerned about the integrity of the election in Arizona that they fought the recount at every step of the way. We don’t have the full results yet but the recount has pointed out that there were 74,000 more ballots by mail counted than were mailed out. In an election where about 7,000 total votes made the difference between winning and losing it seems to me that 74,000 mystery ballots pretty much proves fraud on someone’s part.

There are people today who believe the US had a moral obligation to invade a country that was no threat to them and kill as many people as possible in the name of making sure Lockheed Martin and Northrop Grumman could continue to increase their dividends and share price. There was the additional advantage to the US generals that there were always directorships in the massive companies supplying military equipment opening up. A nice fat paycheck comes their way after their retirement for selling crap to the same guys they used to command while on active duty.

I should point out here that a clump of goat herders just kicked the butts of “THE MOST POWERFUL AND WELL EQUIPPED MILITARY IN WORLD HISTORY.” With units no bigger than an average girl scout troop and armed with little more than AK-47 rifles and RPGs they whipped the US with all their space age toys and F-35s.
It would almost be tacky of me to point out that I was an F-4B pilot in actual combat. The F-35 procurement program is not only the most expensive weapons program in history, it is also the biggest piece of shit airplane the US has ever built. No one supporting the program ever flew a single mission in combat.

There are people who approved of the war. That would include the Neocons who never saw a useless war they didn’t think just spiffy. You can toss in the NYT, Washington Post and Wall Street Journal. The WP even had the gall to print a series of articles about Afghanistan in 2019 where they showed that the Pentagon and politicians in Washington DC had been lying all along about progress in the war. They, of course, were prime supporters of the war back in 2001.

A lot of people always against the US involvement in Afghanistan would be those who had read history books. While a reputation of being “The Graveyard of Empires” has an interesting ring to it, none of our generals had read it before. And after all while a single defeat in a meaningless and useless war in far off areas doesn’t directly lead to the collapse of an empire it does give a powerful hint about the future.
No one ever won any war. All that happens is that one side loses more than the other. But when an empire begins to engage in military adventurism, the end is nigh. It was true of Alexander the Great, the British, the USSR and now the US.

Lt Colonel Stuart Scheller wasn’t directly being critical of the US involvement in the war. He was responding to the utter chaos of the last month or so in the US withdrawal. The war was begun in 2001 by a president who was a drunk, a draft dodger and a crack head until his forties. Naturally he thought of himself as a latter day Alexander the Great. Crack heads tend to think that way.

People still argue about who really ran the White House. From the actions of Vice President Dick Cheney on 911, it would appear Cheney was really the brains in the White House. He was another draft dodger. Indeed I can’t find a record of a single person in the Bush administration who ever spent even a day in combat. Bush is a contemporary of mine, he being six weeks older. While I was flying fighter missions over North Vietnam he was down in Mexico snorting coke.

Then we had the Obama administration. The Military Industrial Complex was firmly in control of his administration. We continued to pour hundreds of billions of dollars into the cesspool we call the Afghan War. I’ve read figures that said that the cost of keeping one American soldier in the country for one year was a cool $1 million. Fuel had to be ferried in from Pakistan and would cost $75 to $100 a gallon. Wars aren’t cheap, you know. Not a single US General stood up and demanded accountability. Hell, they didn’t even point out it was an expensive and meaningless war against people who were no threat to the US. Not a single one.

In turn Trump continued the war for the longest time. The number of dead Americans was up to over 4,000 but no one was really counting. Granted, Trump, another draft dodger, did come to the understanding that when you have been in a war for nearly twenty years, you lost. The cost climbed to over $2.3 trillion. Trump wanted the US out of the country. The US sat down with representatives of the Taliban in something called the Doha Agreement. Trump wanted all Americans out of the country by May 1, 2021 but the CIA and warmongers at the Pentagon dragged their heels.

PINO Biden takes office in January of 2021 with the intention of removing all US forces by September 11, 2021. By the 8th of July 2021 his so-called administration changed the date to August 31st.

The Secretary of Defense, the Chairman of the Joint Chiefs, all of the chain of command in the military down to the lowest E-1 knew for eighteen months that the US forces were going to be pulled out of Afghanistan. After twenty years of losing a war to goat herders, was anyone really so stupid as to not understand the Taliban were going to march right back into Kabul and begin their Reign of Terror?

Lt Colonel Stuart Scheller believes those responsible for planning and executing the withdrawal of US forces should be held responsible for the biggest military disaster in American history. The US left Americans behind who couldn’t get to the airport. We utterly failed to even consult with our allies who contributed both gold and the blood of their children to what was a fool’s game from the very beginning. We totally deserted those in Afghanistan who worked with American forces. We spent over $85 billion on the worthless Afghan Army and delivered billions worth of munitions to the Taliban. It is far worse than a failure. It was a mistake.

We just proved the mighty US, the Exceptional Nation, is nothing more than a paper tiger led by a gang of fools and incompetents.
Lt Colonel Scheller hasn’t gone far enough even though he just threw away seventeen years of his life for nothing in return. It is not sufficient to bemoan a total failure of leadership in Washington up and down the chain of command with regards to the disaster in Afghanistan.

While crocodile tears are being poured in gallons from the MSM about the poor Afghans trapped in the Taliban Reign of Terror, we have our own Reign of Terror in America led by Bill Gates, Tony Fauci, and the legions of liars at the CDC, FDA, NIH and MSM.

There has been an effective coup d’état on the part of the WEF and the elites on we, the peasants, since the fall of 2019. Bill Gates held a planning secession called Event 201 at exactly the same moment the first delivery of the gain of function virus was made in Wuhan. Pure chance no doubt just as it was pure chance that the French outlawed over the counter sales of HCQ on January 1, 2020 just when it would have been most useful.

Afghanistan is a direct analog of the Covid Cult. In Asia we attacked a country that had not attacked us on the basis that they gave shelter to someone who might have participated in an attack on the US. The Taliban had the audacity to ask for proof of the involvement of OBL. Naturally the US promised to deliver. And never did. Later we learned that the attack on Afghanistan was planned years in advance and had far more to do with an intended pipeline. In other words, from the very beginning of the conflict everything the world was told was a bold faced lie.

In March of 2020 we were told that 50 million people would die from one of the deadliest medical disasters in all of recorded history. If we would agree to a two-week lockdown we could “flatten the curve” and the virus would be under control until a “vaccine” could be produced. It was all a lie. Even today the inflated number of total deaths is only 4.5 million and it includes gunshots, premature birth, suicides, car accidents, strokes, heart attacks, cancer and any other potential cause of death. Even the CDC admits only 6% of deaths came “from” Covid as opposed to “with” Covid. It was a massive propaganda campaign of “fear porn” over what is and was no more than a bad flu that you don’t want to catch.

The PCR test was being misused according to the inventor and Nobel Prize winner Kary Mullis who outright calls Fauci a fraud. Of course Fauci is a fraud and has never told the truth to the American people from the beginning. He is the head of the NIH that funneled $3.7 million to the Wuhan Lab for gain of function research and another $39 million of DOD funds. It was his position that while there was some risk to the gain of function research, it was worth it.

That’s very similar to the voice of Secretary of State Albright talking about the 500,000 children who died in Iraq as a result of US sanctions. “We think the price is worth it.” I wonder if Fauci would be so casual about the deaths of millions if the question were asked again.
The PCR test has been obviously flawed for eighteen months and anyone with eyes would have noticed. The cycle rate was set far too high to be accurate yet was the basis for shutting down the economy of the world. Elon Musk questioned the validity of the test so took exactly the same test four times on the same day and same conditions. Two tests proved that he had Covid. Two tests showed he didn’t have Covid. That’s a fifty percent error rate. Many real doctors have concluded the error rate is far higher.

Anyone who can both think and add would have questioned just how it would have been possible for the US with 5% of the world’s population to have 25% of the world’s cases and deaths. It is not possible unless we were really doing something different from the rest of the world.
Even the CDC now admits the PCR tests are meaningless and will no longer be allowed to be used after December 31st of this year. Well no shit, we shut down the world’s economy, bankrupted millions of people and killed an untold number of people as a result of a worthless lockdown based on bad data from the beginning.

Fauci and Bill Gates have a hidden vested interest in pimping the so-called “vaccine” that every day seems to have another headline about how it has killed tens of thousands of people and doesn’t actually protect those who took it. Also it probably puts them at greater risk from Covid and we have yet to determine the longer-term effects. Gates brags about his 20-fold return from his investment in “vaccines” even though his foundation has been thrown out of both India and Africa for the unknown at the time damages to those people used in the experimental “vaccine” trials.

Fauci, Gates, the CDC and the NIH own a piece of the pie for both Remdesivir and the various “vaccines”. That gives them a giant financial self interest in prescribing medicine that they know doesn’t work and a reason to put down any cheap and inexpensive alternatives. Indeed if Fauci actually admitted both HCQ and Ivermectin can cure Covid, the “vaccines” with their EUA would be forbidden. Fauci himself co-authored a paper in 2005 praising HCQ for its antiviral potential. But when Trump repeated the results obtained by a French doctor in mid-2020 Fauci immediately went on the attack and mocked the same sixty-five year old inexpensive alternative that he supported in 2005.
In May of 2020 the FDA issued an EUA for use of Remdesivir. Fauci pimped the far more expensive Remdesivir without disclosing his own personal financial interest. The drug had been through a trial for antiviral potential against Ebola in 2018 and the drug dropped from the trial due to the number of patients it killed through kidney failure. True to its nature, tens of thousands of the dead in both New York and New Jersey credited to Covid actually died of kidney failure due to poor medical treatment. Fauci doesn’t bother mentioning that. By November of 2020 the WHO recommended against the use of Remdesivir for Covid “ as there is currently no evidence that remdesivir improves survival.”

Later in 2020 it turned out that some doctors were treating patients successfully with a miracle drug named Ivermectin used in both human and animals for its anti-parasite values. Over 40 studies showed a decrease of up to 90% or more in fatalities by use of the cheap medicine. A two-day course in Mexico costs $120 pesos or $6 USD. So Fauci, the pimps in the media and even the FDA mocked use of the inexpensive alternative to “vaccines” that don’t work and have killed many thousands and injured millions more.

If the lies and deceit sound like an instant repeat of those told in the Afghan war it is because it is identical. The world has been lied to every step of the way. Covid is not and never was an accident. The NIH and Fauci financed the gain of function we now see. Fauci forced Remdesivir on the medical community despite knowing the high death rate from the drug. At least and at last the WHO has removed its recommendation for use of the drug. The WHO also no longer supports the idea of booster shots.

We were told we didn’t need masks. Then we were told we did need masks, then we were told we not only needed masks, we needed face shields. Then Fauci claimed two masks were better before retreating to only suggesting one. So if you “follow the science” what do you do?
Now we know by comparing countries that didn’t use masks to those that did, masks accomplish nothing.

We were told we needed to lockdown for fifteen days to “flatten the curve.” It accomplished nothing.

We then locked down for many months while the governors and mayors went on their vacations to exotic locals while we stayed trapped in our homes. Do as I say, not as I do, I suppose.
The lockdowns didn’t work. The demolishment of our economy took the lives of thousands of American through youth suicide, murders, and premature deaths due to a lack of prompt medical care even while hospitals sat idle, alcoholism and drug abuse. The list of “collateral damage” could go on for pages.

The WEF, the Military Industrial Complex, all of social media, the MSM, Bill Gates, Fauci, the NIH, CDC and FDA have been lying all along and they knew it. Just like the Afghan war.

Part of the problem is sheer greed on the part of Fauci, Gates and Big Pharma on a new massive historic scale but by refusing to even try cheap and effective solutions the entire medical community has by and large participated in mass murder.

The American experiment in freedom and democracy ends on September 15th, 2021. That fat fraud that claims to be Secretary of Defense has ordered the entire US military to be “vaccinated” by the middle of September. If the gutless and useless generals commanding our 2.2 men and women on active duty and in the reserves bend over and follow what is obviously an illegal order, the US is finished.
This is a coup and we will know on Sept 15th just who runs the country. It is time to man the barricades.

A former Navy surgeon did a short two-minute clip and pointed out that the young men and women who make up our military have a hundreds of percent higher risk of dying from the “vaccine” than from Covid. If those young people are jabbed, it will kill fifty to sixty times more of them than have died of Covid. All for Big Pharma, Bill Gates and Fauci.

Congress has authorized up to sixty general grade officers in the US Marine Corps. If every swinging dick wearing stars stood up and said, “not on my watch” and “I demand accountability” we could retake our country and end eighteen months of Covid Cult stupidity overnight.
Biden, Harris, Austin, Milley all need to go. We need to defend our borders and go back to the reasonable concept of one man, one vote. In the end this coup on behalf of the Elite and the WEF will fail. It’s merely a question of just how many people will die in this insane wet dream first.

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Bob Moriarty
President: 321gold
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Eloro Delivers Universe Class Results

Bob Moriarty
Archives
Jul 30, 2021

I wrote about Eloro about three weeks ago and pretty much covered the story. The Iska Iska project in Southern Bolivia will be a mine. It is far too big and far too rich not to be a mine under any commodity prices.

The company released drill results on July 28th that probably would not qualify as just world class but it would be more accurate to call it universe class results with 300.75 meters of 129.65 g/t Ag eq.

(Click on images to enlarge)

As I did in my last piece a few weeks ago on Eloro I’m going to cheat a little bit and convert the silver eq into grams of gold. The intercept had a value of about $106 USD per tonne and while 2 grams per tonne gold eq would be about $117, it’s close enough for government work to use 2 grams for ease of understanding.

If you cube the 300.75 meters and use a s/g of 2.7 you get just over 54 million tonnes. Factor in the 2.0 grams and the POG right now of $1831 you have a hole showing about 3.5 million ounces of gold and a total value of $6.4 billion. Since 2 grams of gold is worth about 10% more than the 129.65 grams of silver, reduce that to about $5.8 billion for one hole. In every other case I have used this technique of cubing a hole I say that of course that is the very maximum value you could get out of one cube of that grade. In the case of Iska Iska, it’s entirely possible, indeed probable that they will have cubes of that size and that grade.

Sorry folks but the market just doesn’t get it.

I took the highest gram meter intercept from New Found Gold, which is also a mine in the making, and did the same cube trick because I want potential investors to understand how important long intercepts are. New Found Gold had a world class intercept of 146.2 grams of gold over 25.6 meters for an incredible 3,742 gram meter. That is $8,600 rock. A cubic meter would be worth $23,220.

When you cube it and compare it to Eloro’s hole you get an amazing difference due to the giant length of the 300-meter Iska Iska hole. Eloro had a 54 million tonne hole, NFG had a 45,298 tonne hole. Iska Iska had about 3.15 million ounces compared to 213,000 ounces for NFG. Now I do not want to take anything away from New Found Gold. The company has put in an incredible discovery program and is one of the greatest gold discoveries in the last five years but Iska Iska has a $6 billion hole compared to a respectable $389 million hole for NFG.

As of the close on July 29th, ELO had a market cap of $257 million and they are holding $23 million in cash. The only thing holding them back from bringing in more drills and increasing the speed of exploration is the backlog of 26,000 samples due to Covid.

As an aside, Cartier Iron holds about 2.4 million shares of ELO worth right at $10 million. At a close of $.13 on July 29th, CFE has a market cap of only $11.7 million.

Eloro is an advertiser. I have participated in several private placements in the past and bought shares in the open market. I am naturally biased so do your own due diligence.

Eloro Resources Ltd
ELO-V $4.17 (Jul 29, 2021)
ELRRF-OTCQX 61.7 million shares
Eloro website

#

Bob Moriarty
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Underestimating Eloro

Bob Moriarty
Archives
Jul 12, 2021

We seem to be in the midst of a minor correction in gold stocks. Gold goes down a little and the gold stocks go down a lot more. It must make sense to someone but not to me. In any case, we are due our typical summer low soon as I talked about in an interview recently.

We are moving into the strongest period of the year for the general stock market in the next few weeks. I expect the S&P and NAZ to shoot higher on the DSI, now 84 and 85 into the peak followed by a decline into September/October and a major crash. By almost every measure, the overall stock market is at peak stupidity. Once it starts going downhill, nothing will stop it. A lot of paper resources are about to disappear permanently.

Eloro Resources (ELO-V) put out a brilliant press release last week that clearly no one understood. The stock dropped by 10% over the next few days and is down about 30% from its all time high in February.

That’s nuts. Eloro is quoting the intercepts in silver equivalent basis that creates part of the confusion. It’s actually a silver/zinc rich tin system. Drilling to date in 43 holes has all taken place over a 2km by 1.2km area but the system is obviously far larger. The Covid issue in Peru has led to 2,600 samples sitting gathering dust waiting to be tested in Lima. Eloro is told things are improving but instead of having three drill rigs turning, the company should have fifteen, it is that big.

Hole DSB-08 showed a massive 252.89 meters of 69.89 silver eq. I’m going to convert it to gold because people are a lot more comfortable thinking gold in grams than silver in grams. I’m going to show you two different ways of determining just how good a drill hole is compared to others.

I think most of my readers are familiar by now with the concept of gram/meters. Multiply grams in gold times intercept length in meters to get a number. For hole DSB-08 I’m going to use 1 g/t Au since that is almost exactly the ratio to silver right now. So hole DSB-08 would be an easy 253 gram/meters and anything over 100 g/m is a giant home run.

I use another way of measuring really deep holes because it shows investors just how important long intercepts are. I’m going to cube the hole that is 253 to the 3rd power. Then give it a SG of about 2.7, in grams we will use a factor of 1 for the assay in grams of gold and divide by 31.1 to get ounces and times the price of gold.

If instead of a simple drill hole of 252.89 meters we had a cube of 252.89 meters with the same grade, that single hole would have a value of $2,541,928,701 in USD. Of course we do not have a cube but it will show in relative terms just how valuable long intercepts are to a resource.

Now lets use hole DSB-10 with an incredible 29 different mineralization intercepts over the 1019 metres of the full hole. The best intercept was 56.12 meters of 114.96 grams silver eq. I’m going to use a figure of 1.64 g/t gold to reflect the intercept in gold rather than silver. That would give a gram/meter reading of just over 92 in gold terms. Not quite as barn burning as hole DSB-08 but considering it was one of 29 different intercepts of mineralization, hole 10 is a giant home run.

So again we cube 56.12, multiply by 1.64 since we have converted silver grams to gold grams, then 2.7 for SG, divide by 31.1 to get ounces and multiply by $1808 for the current POG. That makes the 56-meter hole in theory worth $27.7 million in USD if it were a cube.

On this intercept we are going to use the 74.39 meters cubed with a gold conversion from silver grams of 1.14 g/t Au, same SG of 2.7, divide by 31.1 and times POG of $1808. In gram meters, it is about 85 compared to 92 for the previous hole.

Here is where it gets really interesting and valuable to an investor. While the intercept is only about 18 meters longer, the grade is lower by about 35% but working out the theoretical cubic value of $64.6 million in USD. Investors tend to think that grade is key but in fact to a mining engineer, the length of an intercept is much more important. Two intercepts with similar gram meter measurements show one is more than twice as valuable as the other because of the length of the intercept.

With really giant mines, mining and milling costs drop a lot with tonnage. Tonnage is far more important than grade. $68 rock may not seem like much but at the end of the day when they start putting numbers on the back side of an envelope I suspect mining and milling will be in the $20-$25 range in USD. There will be a lot of economies of scale here. This is going to be a great mine.

I think Eloro should have said something about the total length of the 29 intercepts in the 1019-meter hole. It would be interesting to know if 30% of the hole was mineralized or 70%.

By using the two methods I have suggested, I think investors can come up with a reasonable idea of the value of drill intercepts. To a certain extent the company may have overplayed the hole 10 and created a buy the rumor, sell the news situation. However I happen to be the most bullish on this company’s potential. Every hole they have drilled has hit mineralization. Every single hole. And there are some real world class intercepts.

While Eloro has rocketed higher in the past year, I think the future is even brighter. I’ve pounded the table again and again with management. With a project of this size they need a lot more drilling going on. But when a company does exploration, they have to have the data from prior holes before knowing how to position their rigs. The 2,600 overdue assays are the only thing holding the stock price and exploration back. And someday the labs will catch up.

I happen to believe the company will end up with 1-2 billion tonnes of $100+ rock. Being far more professional, the company will never say that even if they do think it. By the end of the year when they come out with an initial 43-101 resource, the majors will be lined up with checks in their hands wanting to partner with Eloro.

The single most important purpose of any drill program is to fill or kill. Is this a mine or should we kill it? Eloro is way past that point. I think this is going to end up in the top five projects worldwide discovered in the last ten years. It is a giant project to anyone who can both see and think at the same time. That may be its saving grace. Certainly resource nationalism is a problem in Peru, Chile, Ecuador and even the Dominican Republic. But this is going to be so big and make such an important contribution to the government of Bolivia that I think they will keep their hands off.

Eloro has no problems other than 2600 assays gathering dust in Lima. They are well cashed up with $25 million in the bank. Run by a great team of the strongest geologists in South America on this sort of system and they continue to deliver excellent results under trying circumstances.

Eloro is an advertiser. I have a big position I have taken part in prior placements and bought a lot of shares in the open market. The success will continue. Someday investors will realize they have a tiger by the tail. Do your own due diligence.

Eloro Resources Ltd
ELO-V $4.00 (Jul 09, 2021) 
ELRRF-OTCQX 61.7 million shares
Eloro website

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Bob Moriarty
President: 321gold
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