This month's featured junior miner is a company called All American Gold. The company is a junior miner that is exploring for gold in the state of Nevada in the United States of America. All American Gold stock trades on the NASDAQ (OTCBB) and their ticker symbol is AAGC. The company has just under 100 million shares O/S. The companies head office is based in Indianapolis, Indiana.
At present All American Gold has three properties that it is actively working on in Nevada. These properties are the Belleville, Goldfield West and the Iowa Canyon.
The Belleville property is located near recent and historic producing mines including the Candelaria Silver Mine, which is ten miles to the east, and the Marietta Mine, six miles to the west. The Candelaria Silver Mine has produced more than $30 million in mineral resources. A 43-101 technical report has been completed for the Belleville property and has been reviewed by the company's technical team. All American Gold holds a 70% interest in the Belleville property. Scheduled to begin in the fall of 2011, the company plans to test the geophysical anomaly with angled reverse circulation (RC) drilling from two drill sites in the fall of 2011. A total of 1,500 to 2,000 feet of drilling is planned.
The Goldfield West is an advanced exploration property with defined targets including a defined resource comprised of 105 unpatented mining claims covering a total of 850 hectares, or 2100 acres. This property is adjacent to International Minerals Goldfield properties, which contain a reported 1.2 million ounces of gold resources. The Goldfield district is famous for multi-ounce, bonanza gold ores and has recorded historic production in excess of 4 million ounces of gold at an average grade of > 17 g/t Au.
Further continuation of exploration is scheduled for September 12th 2011. Drilling will target major structures which may host high-grade quartz-sulfide-gold veins similar to those in the main Goldfield district. A total of 1,550 to 2,000 meters of RC drilling is planned at six drill sites located in both the northern and southern parts of the property. Historic work conducted by Bear Creek, Placer Amex, U.S. Borax, Northing Mining and Bonaventure Enterprises has led to the completion of 138 drill holes in this area. Targets helped define at least 220,000 ounces, or more than $300 million in resources.
All American Gold holds a 35% interest in the Goldfield West property and retains the right to acquire a further 10% interest in the property.
The third property is the Iowa Canyon property which is located in Lander County, Nevada. Approximately 30 miles southeast of the Cortez Hills deposit. The Property is also located within 20 miles of the Cove-McCoy mine. Gold is hosted in a variety of rock types. Gold and silver mineralization is found in upper and lower plate rocks. Historic drilling by several companies, including Hemlo Gold and Brancote, identified gold and silver jasperoids within upper and lower plate sediments, as well as gold and molybdenum-rich porphyry dikes. Sampling conducted by these groups, as well as Rio Algom, assayed up to 5.6 grams per ton gold and 600 grams per ton silver from goassanous zones within upper plate siliceous rocks. Additionally, a single drill hole on the western side of the property contains up to 800 parts per million (ppm) molybdenum and 0.2 grams per ton gold over ten foot widths.
If you would like to know more about All American Gold or follow their activities, then visit their website and join their email list for up to the minute news releases. You can also follow along with us over at Junior Mining Stock Talk as we will be following this featured junior miner also.
You can also read even more about this junior here, and be sure to enter a chance to win a gold bar.
For the first featured junior miner of 2011, we would like to introduce a junior miner that is actively working in the Princeton area of British Columbia. The company we have as a featured miner is Supreme Resources Ltd. The company is listed on the Venture Exchange with the stock ticker being SPR and also on the OTC under the ticker SPRWF.
Supreme is a junior explorer who is exploring two flagship properties in the Copper Mountain Mining camp in the Princeton area of B.C. While there is a lot of information that can be found about this company on the companies website and also on SEDAR, we would like to point out some of the highlights of what makes this junior miner stand out from it's peers.
Junior explorer, drilled and exploring two flagship properties in the Copper Mountain Mining Camp Princeton, BC.
TAS projects are located in very close proximity and the same geological trend with Copper Mountain Mining Corporation's (CUM.T ) 500 MT ( 3 billion lbs copper, 8 million ounce silver, 1/2 million ounces gold) open pit copper mine which is going into production June 2011, Princeton, BC
The TAS Property in the Copper Mountain area returned pre-drilling trench samples of up to 0.8 % copper, 11 g/t silver in October 2010
Completed Drilling The Verde & TAS Projects
Drill Core Assay results pending
Ample Gold-Max Gold Project returned samples > 2 ounces gold
Supreme's 2008 Ample Gold-Max drilling results included intersections grading 11.76g/t gold over 8.2m (26.9 feet), 4.5g/t gold over 7.2m (23.6 feet), 9.5g/t gold over 1.5m (4.9 feet) and 3.9g/t gold over 5.0m (16. feet)
This month at Junior Miners we have a small miner with a huge opportunity for those who are looking to invest in a real gold mining operation. Not only is this company the feature for the month but this small company is Junior Miners sponsor for the year.
Chazel Capital, Inc. is a privately held "Acquisition, Mining, and Exploitation Company" that acquires, develops and invests in quality precious metals mining operations throughout the free world. In its quest to fund investments into new mining ventures, Chazel Capital's latest venture is a 50% Joint Venture ownership stake in the "OFIR Mine". The "OFIR Mine" is held by Rocmec Mining Inc. a Canadian based public company that trades its shares on the Frankfurt D5O and the TSX Ventures Exchange under the Symbol RMI. Romec Mining is also the inventor and 100% exclusive owner of a new and revolutionary "Green" mining process known as "Thermal Fragmentation". A capital outlay of more than $8 million dollars was spent to validate Rocmec's "Thermal Fragmentation" patent. Not only is Rocmec's new mining process safer than traditional mining methods, it significantly reduces the negative environmental impacts typically associated with old school mining techniques and has been approved for use in the USA, Canada, Morocco, South Africa, Mexico, Russia, Australia, Tanzania, Peru (China and Brazil are pending).
With understanding of America's dwindling fiat currency and failing World currencies, Chazel Capital has decided to give the opportunity for a small percentage of savvy foresight investors to become wealthy by investing into an industry that historically has prospered in an inflationary environment. By using a Private Equity approach, Chazel Capital intends to finance the mandated property improvements, acquire necessary mining equipment, and double the current capacity of the onsite "CIP Milling Plant" at the "OFIR Mine" site from 50 tons per day to 100 tons per day capability. Once these objectives have been met and Romec's Patented "Thermal Fragmentation" technology is in place, Romec has projected that the "OFIR Mine" could conservatively produce 700-800 ounces of gold per month.
If you would like to be considered for this private equity offering and Chazel Capital's future exclusive gold mine profit sharing operations, click on the following link below and enter the reference code for this press release along with your info to be contacted with the details of this investment opportunity and how to secure your position today.
For the first month of 2009 we are featuring not only a mining and exploration company, but also one that has plans of becoming a gold royalty company. That company is Tanzanian Royalty ExplorationTNX-T.
Tanzanian Royalty Exploration (T.TNX, AMEX.TRE) is a unique, publicly-traded financial gold company whose business strategy is to acquire royalty interests in gold production from its core assets in the Lake Victoria greenstone belt (LVGB) of Tanzania where a reported 40 million ounces of gold have been discovered since the mid-1990's.
Tanzanian Royalty ranks among the largest landholders in the LVGB - one of the most prolific goldfields in the world. Established producers in this belt rank within the lowest percentile globally in terms of cash production costs.
Our royalty strategy offers investors significant, low-risk leverage to gold prices, limited shareholder dilution, and the potential to have their shares valued at a premium in the marketplace.
You can read this and a whole lot more on their web site by clicking right here
Our July Feature was a junior miner from Australia. Windy Knob Resources . Windy Knob Resources is a junior exploration company listed on the ASX Exchange (ASX: WKR). The Company is focused on exploring and developing 4 project in Western Australia. These are the Windy Knob project, the Tuckanarra, the Honeymoon Well and the Black Tank Well project. The company was founded by 4 founding directors in October 2006. A new junior with big plans for the future.
Our feature junior miner for June 2008 was Golden Goliath Resources Ltd. (GNG: TSX-V). The Company is focused on exploring and developing the gold and silver potential of an historic mining camp located in the world famous Sierra Madre Occidental Mountains of northwestern Mexico. Unlike most juniors, which have an option to earn an interest in a single property or a few scattered properties in various areas or countries, Golden Goliath controls an entire old mining camp, or district, that covers an area of 15 by 25 kilometres, with numerous past producing gold and silver mines dating back to the time of the Spaniards. Golden Goliath's Uruachic claims are owned 100% by the Company and are fully paid for with no property option or purchase payments to make.
Our feature junior miner for May 2008 is Eagle Plains Resources Ltd. Eagle Plains Resources Ltd. (EPL: TSX-V) is a junior exploration company exploring for minerals in Western Canada. Its primary objective is to enhance shareholder value through the acquisition and development of early-stage exploration projects.
The company currently controls over 35 gold, silver, uranium, copper, molybdenum, zinc and rare earth mineral projects, two of which contain NI 43-101 compliant Inferred Resources.
Although Eagle Plains is a grass root exploration company, they 2 inferred resource properties, one being a molybedenum deposit at the Sphinx property in south east British Columbia and the other a silver / zinc / lead deposit at the Blende property in the central Yukon. Our other mineral exploration properties include opportunities for gold, uranium, silver, copper, molybdenum, zinc, lead, rare earth minerals including gallium and industrial minerals including sodalite and nephaline syenite.
For all those investors who wish to keep their investments in safe countries like Canada, Eagle Plains has a lot to offer.
For more information contact: Mike Labach
Investor Relations Manager
Phone 1-866-HUNT ORE / 1-866-486-8673.
Our feature junior miner for was April 2008 is Coro Mining Corp.. This is a junior miner built by proven mine-finders and developers. Coro Mining Corp. is on track to become a mid-tier copper producer. The company targets open pit, heap-leachable copper projects in Latin America with low capital costs. Presently, Coro is developing two advanced copper leach and flotation projects in Chile and Argentina. Exploration properties are located in Chile and Mexico. Their ultimate objective is to develop a new mine every two-to-three years, and we're building a pipeline of projects to meet this goal.
Coro has assembled a board of directors and management team of proven mine-finders and developers with world-wide experience. This group has been selected particularly for its knowledge of, and association with, Latin American mining.
For the month of March 2008 we had Barker Minerals BML. With a head office based in Prince George, BC
Canada this small company has various gold, VMS and PGE properties that are located along the southern extension of the historic Cariboo Gold District in East-Central British Columbia, Canada, which has yielded 3.7 million ounces of gold to date. As you will see by the highlights below this small junior has a huge upside and is one that any investor will want to have on their "stocks to watch" list.
100% ownership in a claim group which consists of 4,401 claim units (approximately 320,000 acres).
19 projects providing many opportunities short and long term for a significant discovery of a variety of deposit types
Approximately 51,000,000 shares outstanding.
Management, directors and employees control approximately 35% of outstanding shares, with friends and relatives the percentage is significantly higher (as high as 75% - 85% due to most financings completed with private investors close to the company)
Potential for a lot of news releases going forward into 2008.
Have received expressions of interest from several potential joint venture partners.
For the month of February 2008 we have a special junior miner to be featured. The company is Cadiscor Resources Inc. CAO. With a head office based in Boucherville, Quebec this small company has various gold properties in Quebec. As you will see by the highlights below this small junior has a huge upside and is one that any investor will want to have on their "stocks to watch" list.
400 000 Gold Oz. May 2007 report: NI 43-101 in all categories (indicated, inferred and measured)
Option for the Sleeping Giant Mine and Mill from Iamgold.
Only 33.6 million shares outstanding.
Way undervalued especially with gold over $900.
For more information visit www.cadiscor.com or call 866-774-7722 and ask for Alain Beland.
For the final month of the year of 2007, December we are featuring a snall diversified junior. Manicouagan Minerals. (TSXV:MAM) is a well financed Canadian based exploration company with a diversified portfolio of four 100% owned base metal and PGE's and silver projects located in Saskatchewan and Quebec. These properties and projects include:
The Brabant Lake zinc-copper property, located in central northern Saskatchewan, is Manicouagan's most advanced project. The property hosts a deposit that was drill tested by Phelps Dodge Canada in 1994. The deposit is found in two zones; the Upper Zone and the Lower Zone. Past drilling focused on the Upper Zone however, Lower Zone grades are typically twice that of the Upper Zone making the Lower Zone a priority exploration target. Diamond drilling by Manicouagan initiated in late 2006 confirmed higher-grade portions of the deposit, and results from the first 20 holes from the Lower Zone have returned an average grade of 9.40% Zinc over 6.43 metres.
The Company announced outstanding channel sampling results from work completed in 2006 on the Bob Showing at its' Mouchalagane property, located in northern Quebec.
Highest values assayed 3.21% nickel, 2.33% copper with 25.9 g/t palladium and 3.7 g/t platinum over 0.5 meters.
Best widths assayed 1.10% nickel, 0.65% copper with 10.0 g/t palladium and 0.96 g/t platinum over 2.9 meters.
We look forward to more great news and results from this small junior miner.
First Narrows Resources Corp.
First Narrows Resources Corp. is a Canadian based mineral exploration and development company whose shares trade publicly on the TSX Venture Exchange under the symbol "(TSX-V:UNO)."
Management's corporate strategy is to build shareholder value by finding, acquiring and developing exploration properties with overlooked and undervalued mineral assets; with the ultimate goal of 100% owned production.
Guiding the Company is an experienced team of career resource industry executives accomplished in all facets of exploration, development and mining.
The Company has assembled a diversified portfolio of gold, base metal, and strategic metal properties. The properties range from early stage exploration projects to advanced stage exploration/development projects.
First Narrows' current focus is the development of the Chester Copper-Polymetallic Feeder Deposit Project (New Brunswick, Canada), and the exploration/development of the Susana D'Oro Gold-Copper Epithermal Vein Project (Sonora, Mexico).
Silver Fields Resources
Because of the Silver Summit in Idaho in September, Juniorminers felt that the featured company should be a silver company.
Silver Fields Resources. Listed on the venture exchange (TSX-V:SF) is an exploration company focusing on exploring for precious metals on mineral properties acquired in North and Central America.
The company's primary focus is Silver with current projects located in British Columbia, Idaho, Montana, and Zacatecas Mexico. Managementss decision to concentrate on Silver exploration was predicated on expected growth in demand for the metal, from emerging markets in China and India. This growth is expected to be reflected in an upward pressure on the Company's stock price and therefore should result in enhanced shareholder value.
The Company has also retained a 50% interest in the Teihsum River Project in the Nanaimo Mining Division located in Northern Vancouver Island, British Columbia. The other 50% is under option to Grande Portage Resources Limited, a company currently undertaking a large exploration program on the adjoining Merry Widow property.
All properties have been selected on the basis of promising stratigraphy and structure, documented alteration, and proximity to historical mineralized occurrences.
Juniorminers featured company for August is Recorp Ventures Ltd. Redcorp is a Canadian mineral exploration company that is moving rapidly to become a mid-tier base and precious metals producer. Their main properties include the Tulsequah project in northwestern BC, and the Lagoa Salgada and Vila de Rei concessions in Portugal. With the recent completion of a detailed Feasibility Study, the Tulsequah Chief deposit has proven to be a viable, high grade mine development for zinc, copper, lead, gold and silver.
Based in Vancouver, British Columbia, Redcorp was incorporated in 2000 and is listed on the TSX exchange (TSX: RDV). As a result of a corporate re- organization completed by Redfern Resources Ltd. in July 2000, Redfern became a wholly owned subsidiary of Redcorp and Redcorp continued as the parent and listed company on the Toronto Stock Exchange.
Junior Mining In 2015
A lot of commentaries are saying this (2015) is the year for a junior mining come back in the markets. Gold, silver and the other metals all finished lower than they were a year ago. Some say that oil will be a drag on commodities also. Only tme will really tell the real facts.
Some additions to the website. I've added an online store and one of the reasons was i have gotten emails in the past asking where one can buy fluxes, crucibles, molds and that sort of things. These are items that you can't just get anywhere. I know I've tried looking around and ended up doing an internet search. I found that there is a few sellers of these items that sell through Amazon, so if you are interested in these types of items be sure to take a look.
Listings of mining claims has been a bit slow this year. A lot of people have decided to hold onto properties with a wait an see attitude as to where the gold price is going to go. From what I hear a lot feel that they will not get the value they think their claims are worth. Having said that, there was a fair amount of property that did sell in the last few months.
Also I get emails commenting on the mining stock talk page. Some readers have sent requests of miners they feel should be getting additional exposure. I thank you for your comments but feel that the new strategy will be to just do small write ups on various juniors that are active on projects no matter where they are located. This will give readers and investors a chance to hear about some miners that are not in the more active circles. Investment websites tend to promote and talk about the miers who are getting a lot of attention and seem to ignore the ones that are under the radar so to speak.
With that I wish all a the best in the new year
Canadian Tax Loss Time
In December we sometimes see a lot of stocks selling off to take advantage of a tax loss. Looking back on charts from last year there was some great deals to be had with some of the major held miners. Not sure if we will see the same type of sell off this year or not but there is always hope for those who wish to wait.
After the metals sold off at the begining of the month some stocks are making huge gains. Stocks like ANV, IMG, K, LSG, YRI just to name a few have seen gains of up to 50% since their lows just a few weeks back. Will this trend continue depends on where the metals trade from here.
This weekend is thanksgiving in Canada. Junior miners would like to say thanks to all readers of the site and subscribers of the newsletter. We wish everyone a wonderful weekend.
Supposedly gold and silver along with the rest of the metals have done their final bottom, that according to Bo Polny who is a cycle analyst guy. Metal prices should be onward and upward from now on in. Let's hope he is right.
Just updated a Mining Stock Talk article with a quick look at Fortune Minerals. Also be sure to read up on our featured miner, Carmax Mining as news could very well be out as early as next week. This news will be the assays from drilling this summer on it's 100% owned Eaglehead property which is located in the Golden Triangle of British Columbia.
Featured Junior Miner - Carmax Mining
At present we are featuring Carmax Mining. Carmax is working in the Golden Triangle of British Columbia on a copper-moly-gold project. You can read up on this company and it's project right here.
With gold silver being dumped on in the last few weeks, many people are wondering if the price will go even lower. Silver was back into the $17 dollar area. Graphite stocks however are rallying. This is because Tesla the electric car maker is planning on building a gigafactory and will need tons of graphite to make graphene for batteries for these cars. You can research out list of graphite stocks right here.
Mining Stock Talk Updates
Be sure to visit the stock talk page. During the last few weeks we have complied some information on some very interesting mining companies. Companies like Chieftain Metals, North American Palladium, and Gold Strike.
Gold Stike has become one of the Ventures hottest trading mining stock in the past few weeks. The company is working on it's Plateau South claims. Initial drilling on the VG zone in 2013 intersected a blind, gold-mineralized shoot 3.25 metres below surface, with visible gold in three of eight drill holes, and a best intersection grading 7.60 grams per tonne gold over 9.03 metres, including 14.58 grams per tonne over 4.0 metres, and the zone remains open. Grab and channel samples assayed up to 15.45 ounces per ton have been obtained along the 25 kilometre Yellow Giant Trend that includes the VG, Goldbank and Goldstack zones. With pending news of possible financing for the developement of their Yukon gold property, this is one hot trading stock.
Some Late Summer Reviews
Over the summer there has been some additional information added to the website. There are new stories posted in the old mines and camps section along with some reviews of a few junior miners in the junior mining stock talk where we have looked at a few mining and exploration companies. Also there has been numerous ads posted to the classified section. Lots of new claims and mining equipment. Some forecasters are stating close to $2000 gold next season and if you are one of the people who think the same, now would be a good time to start taking a look for next years mining season.
A quick review of North American Nickel, the company that is featured here. News is hopefully coming this month from the drill program in Greenland. The company has 2 drills running this year. The stock has performed quite well also. From a 22 cent low in December the stock has hit 65 cents and is currently in the mid 50 cent range. Good news could very easily push the stock past a dollar.
Junior Miners Best Bets
Nickel is one of the bright spots in the metals this year. It is the only metal aside from palladium that is really amounting to any gains. The price of nickel for the past 6 months has risen from $6 lb. to $9 lb. That is a 50% gain where as gold, silver and the rest have seen their prices chop sideways or in some cases fall.
Not many junior miners have seen their stock price gain either. While many are on the brink of going bankrupt or trying to reinvent themselves as marijauna growers, North American Nickel and it's managment team is bucking the trend and doing what it does best and that is exploring and finding deposits. As you can see in the charts above since the lows of tax loss time in December, the stock has gained a full 100% and with a big drill season just around the corner starting June 14, the stock price will really have nowhere to go but up. Not a lot of free floating stock either. Almost everyday there are more bids than asks. Somedays it's like 6:1 on the buy side.
North American Nickel is Junior Miners featured miner. If you are looking for a good solid mining play that has the goods in the ground and is being backed with big money, be sure to take a look at North Ameican Nickel. This junior and it's Greenland play could very well be the next Voisey's Bay.
I remember years ago just before the price of gold started it's bull run back in 2001, a gentleman made the comment that when you see people leaning over the side of the ship heaving thier guts out, you know the end is near. But he went on to say that once you see the rest of people jumping over board then you know it is the end. Today was one of those days as a lot of longs most likly sold out of their gold stocks and for some, their physical gold.
There have been many commentators stating that there would be at least one more wash out before the middle of 2014 and right around the sell in May and go away time of year. Today looked a lot like one of those days with gold getting slammed down close to $30. A quick view of the chart below tells the story.
Surpisingly the other metals held their ground with paladium and platinum showing no change at all. Silver was off 40 cents. All the base metals were off a bit except for nickel. Nickel is just under $9 a pound right now and that is good news for holder of North American Nickel who are seeing their stock holding strong in the 40 cent range. News should be out very shortly about their PP and talk is that the 2 drills will be turning by the middle of June over in Greenland.
Dawson City Yukon Gold Show
The Dawson City Gold Show was held over the May long weekend. There was a few displays that were from various vendors and two junior mining companies. Kaminak Resources had a booth displaying information about their Coffee Gold Project and Victoria Gold also had a display showing off their Dublin Gulch area project. There was also the regular government agencies such as YESAB and the different Yukon mining associations presented as well. There was also key note speakers throughout the day.
Early morning street view of Dawson City. Sat. May 17
Not many new claims or properties have been listed in the last few. It's that time of year that most miners in Canada are getting ready for a season of work. There are however still some very good deals out there for those looking at getting into the mining game.
In junior mining news, North American Nickel is going to be starting drilling in Greenland any day now. This year they will have two drills turning. Exciting thing about this play this year is going to see just how big this nickel deposit really is. They already know to a huge degree just how rich it is so finding out just how large it is is going to make this summer a season of excitment. I've posted various times about this play because this could very well be another Voisey's Bay.
Junior Miners Is 7 Years old
Time flies when your having fun. This year May marks 7 years of being online. Lots of changes have taken place with the junior mining sector in the 7 years since the site went live. We watched the metals climb to all time highs and then slips back to where they are today.
Over that time there has been litterly thousands of companies added to the directory. Hundreds of classified ads placed. Thousands of visitors come and go throught the site each month. The subscribers of the newsletter continue to add up also.
A few more claims have been added to the classified section. Some of the listed ended up being under offer after just a few days of being listed which tells me that there is good interest in good value ground. If you are interested getting into the mining game be sure to check out and see what is for sale.
Remember next week, May 16-17 is the Dawson City Yukon Gold show. This is one place and one show that everyone who is interested in placer gold mining should attend at least once in their life. I will be there and plan to take as many photos as possible and will have them posted in the new photo album sometime after the show. Be sure to sign up for the free newsletter on the top right hand side of this page as I will be sending out a news letter after the gold show. This will make for a good reminder so you don't miss out on any of the sites in Dawson and other related news.
Photo Album Added
Everyone loves pictures. Right after I posted some pictures that were sent to me, I starting getting emails from readers who seem they can't get enough of pictures of mining operations. So I have decided to start an online photo album. At the moment I only have the pictures from mining shows in New Zealand that were sent to me, however I do plan on taking photos this up and coming mining season from areas around Atlin and the Yukon. If you have pictures of your mining operation that you would like to show off to others, feel free to email some in. For those who wish to email photos to me please resize images to 800 pixel wide before sending.
Up In Smoke
Back in the late 1990's after the Bre-X scandal, a lot of junior's were finding themselves with super low gold and silver prices and investors kind of turned off with metals. Some of these juniors proceeded to re-invent themselves into the tech and dot com boom that going on at the time. It seemed at the time that getting into whatever investors were chasing was the only way to survive. Today with a stagnant metals market and investors chasing everything but metal plays, a lot of these juniors are getting into legalized grow ops of pot. Some of these companies have seen there stock prices become 10 baggers overnight. Stocks sitting at 1 cent are seeing 25 cents, 50 cents and higher. LW Capital did a 1:5 rollback and then did an IPO and re-named itself Tweed (TSX-V: TWD) and then saw it's stock shot from 2 cents to almost 5 bucks in a matter of days. How long any of this will last and how many of these juniors will survive as pot growers is anyones guess. If your thinking of dabbling in these pot stocks I would stick with any juniors that are still hooked into the metals and mining and are just doing the pot thing as a way of diverification.
Quite a few new listings of mining claims this past while. Be sure to check out the classified ads to find out what has come up for sale. Some very value priced claims in the Dawson area. One property listed today has been in the same hands since 1974 and has ground values as high as $400 per yard.
Next month in May, there is two (2) gold shows. The Quesnel Gold Show in Quesnel BC is on May 3-4. Alex Debogorski, the Ice Road Trucker star will be there.
Then on the May long weekend Friday the 16th and Saturday the 17th, Dawson City Yukon is holding it's 28th annual gold show. With all the reality TV shows on Yukon Gold and Gold Rush there will be a lot of excitment going on.
Uranium Stocks Gone Wild
Lots of activity in the uranium sector these days. Junior miners like Fission Uranium, NexGen and Denison are all trading like crazy. Fission is up 40% this year alone and NexGen is up over 100%. In general there is re-newed interest going on in the mining and exploration sector in general and that interest is reflected in the HUI. Most gold stocks have leveled out since the run up seen at the beginning of the year.
A few more claims have been added to the classified ads. This week we listed a rhodonite mine on Salt Spring Island BC. This would be a good hobby mine for any placer miner who wishes to spend winters in a warmer climate any one who wish to get involved in the semi precious stone market. Rhodonite is a popular mineral among rock collectors. When it forms large crystals or has a deep red color it is extremely sought after by collectors and can command very high prices.
Also we have a featured sponsor this month. Byzantium International Ltd. which is a precious metals buyer and refiner would like to showcase their company. Not only a buyer but Byzantium also stores and vaults precious metals and other valueables. You can follow up on this company HERE.
Bentonite Mine In Kazahkstan
Bentonite is widely used in drilling, farming, as sealant, as food additive for livestock, cement, adhesives, ceramic bodies, winemaking, paper manufacturing, cat litters production, production of copper concentrate and many other areas.
We sell the rights for pit development of bentonite clay field till 2025 (time duration can be extended). The mine is located in Eastern Kazakhstan (ex-USSR country).
See full page ad with photos of this property and equipment HERE
New Age Drilling and Mining has opened up new ground on a Beringia ground creek, which is a rare find anymore in the Yukon. We own 15 claims on Frisco Creek with options on another 30 up the creek. The ground has proven very positive and we continue to work up the creek, opening up ground for the future. This a a full scale mining operation with a complete line of modern up todate equipment.
See full page ad with photos of this property and equipment HERE
There is a new list of graphite miners added to the site. You can view this list here. There has been a lot of interest in the junior miners looking for graphite since the huge run up in Zenyatta. Everyone is wanting to try to find the next ZEN so I hope this short list will help out somewhat with your investing decisions.
Stand And Deliver?
Lots of talk on the net about the Comex. Seems that there might not be enough gold stashed away for those who would like to take delivery of their metals. Some articles are quoting that as high as 50 requests per ounce.
There has always been speculation that the Comex has loaned out more gold than they had because of course nobody really takes delivery. They just roll over their contracts. So over time there is the chance (wink wink) that the Comex might have loaned out than they had and now that some people are nervous about the finanical situation that is going on in the world with bail ins and bail outs and everything else going belly up, some of these people want their gold for insurance just in case things get a bit out of hand.
After all there is a lot of people really starting to wonder if there is any gold at all? Maybe it has been sold off to other Central Banks or other countries, never to be seen again. Like how would you feel if you have a futures contract for 100 ounces of gold and then requested to have that gold delivered to you only to find out that it could take up to 100 days or maybe longer. And no, you do not want cash or credit or any other IOU. You bought a contract for gold and GOLD is what you want and you want it delivered now. And if that didn't happen, you would probably be a bit more that just upset.
May 7 Marks Six Years Online
It was six years ago today that juniorminers.com went live online. Over that time the site has grown from a few simple pages to hundreds of pages that feature everything from company listings to classified ads and a whole lot of other stuff in between. The website has seen traffic increase from just a few hits a day to over a thousand hits a day. Over that time the website has also grown a list of subscribers that get the monthly news letter. Thanks to all the regular visitors and to all the sponsors and advertisers who use the website. It's been a great six years and I plan on being here in another six years offering junior mining news and classifed mining ads.
World Class Nickel Play
No use talking about the gold and silver take down here. There is lots of news about that elsewhere. For all those who follow junior mining stocks I would like to just make a quick update and reminder about North American Nickel, TSX:V-NAN.
North American Nickle has been working in Greenland for the past few years and have drilled some really exceptional grades. A lot of the cores are high grade. The company has announced that they are going back for another summer work session and will be doing more drilling. Field work will begin in May and drilling is scheduled to begin in June. A minimum of 3,000 meters of drilling is planned. Unlike so many juniors out there, NAN is well funded to carry out this work program. Greenland offers a stable investment enviroment and when you really come to think about it, Greenland is the last frontier in mineral exploration in the world. Let's face it, everywhere has been pretty much picked over.
Now for some real interesting news. The stock price has been stuck around 13-14 cents for quite a while and the company wanted to raise some funds for future work. So they raised the 7.5 million dollars worth of funds through a PP at 17 cents a share. That alone tells me that private investors see some pretty big value in this play.
People always asked when the best time to buy a stock is. some will tell you to buy when everyone else is selling, but the best time to buy is when you are thinking about selling. Read the rest of the latest new release right here.
What's Up With Gold?
Or should that read what's down with gold. Tons of different theories on the drop. Some say the big wigs are shorting the paper markets to buy the physical market. Others say it's the fed not wanting gold to out shine the green back. Still others claim that the gold run is over like the two analysts for Goldman claimed last week. Who knows for sure. All I do know is that everything balances out in the end and gold will ride out this storm and be back running. Is it a good time to buy? They say the best time to buy is when everyone is selling and a better time to buy is when YOU are thinking of selling.
Funny thing is, today I checked out Scotia Mocatta's eStore and checked out the prices for 1 ounce gold Maple Leafs. While the spot price read $1343 per ounce, their prices were still almost $200 per ounce higher. Last check in the evening here the price reads $1,498.65 for a difference of about $155 mark up per ounce. No deal there that's for sure but it go to show that physical metals are still fetching a premium and that is also the reason for the 3-4 week wait time. Something to think about while you're waiting for this episode to turn around.
More Gold In A Pound Of i-Phones Than Pound Of Ore
Came across a very interesting article today. There is a lot of people out there in the world today that are Anti-Mining. These are the people who of course want to ban mining in their back yard, my back yard and everyone else's back yard. Anyhow you got to read this article and when one of those Anti-Mining types start to beak off, ask them if they have a smart phone. If they do then show them this article call Mining Your iPhone.
With the sales of Smart phones expected to continue it's increase, it looks like I best keep mining so everyone else can keep talking.
Steve Forbes said it best, "Now any government can seize assets any time they need money."
He was referring to the deal Cyprus had to cut with the EU to prevent the collapse of its banks. The bank tax, as high as 40% on some assets, has set a precedent that, according to Forbes, has added another level of fear to an already fearful world market.
I wonder how many Cypriot people figured that gold or silver were old fashion or outdated and never bothered owning any. I wonder what they are thinking now? Having a little silver of gold in phyisical form is not only a good investment, it's also wise insurance. Just ask any Cypriot.
But if you don't want to buy a little gold you can still look into buying a gold mine. Check out our classified page that has all the mines for sale.
Lots Of Mining Claims Listed
And Some Are Selling Fast
Both January and February saw a lot of really good high quality mineral properties being listed in our classified section. There is a lot of interest in mining properties not ony for the mining aspect but also for speculation and investment purposes. One good excample is there was a single claim in the Keno area listed on Feb 8 and I got a call on Feb. 11th that there was a sale pending. 3 days to sell a gold claim. You can't say that about houses or most other realestate these days. Also the seller had tried different avenues in selling this property but found junior miners the utmost responsive in terms of enquiries. Just something to keep in mind if you have gold claims or other mining properties to sell. No commissions. Just flat rate listing fees!
Prospecting In 2013
If your Looking For Gold, Here Is A Handy Dandy Item
It's getting to be that time of year again and the next thing you know summer will be here and a lot of us will be heading for the hills, valleys and creeks in search of that all elusive gold. The one problem is that these days in order to find any gold or good tracer minerals, you have to get back way off the beaten path. That means where the road or trail ends and after a few hours of hiking, you can maybe find some areas that have not been overly explored. Anyone who has been prospecting at all knows that packing a lot of gear into the bush is a lot of work.
Having said that, there is a new small aluminum river sluice out for those fast samples wash ups. This handy little is sluice will fit in most packs, fit easily in a 5 gallon bucket, but also has a convenient carry handle. It's also extremely light weight, weighing in at just 3.25 lbs!
Clean-up is achieved by removing a single wing-nut and lifting out the riffle tray and ribbed carpet. The sluice also has a section of ribbed rubber matting at the top for a quick "sample" view of the material you are running. The nicest thing about this little sluice is the little price. Pre season special. Only $59.00.
Myself I have an older Keene river sluice that is around 3 feet long and is 10 inches wide. I think mine would weigh around 9-10 pounds due to the extra length and riffles. That extra weight can sure be a burden especially when it comes time to be walking back after a long day of prospecting. That's another reason why I like to use plastic gold pans.
The Gold Bull Run Is Done?? Don't Think So!
Breaking news. The gold bull run that has been going on since 2001 is done. At least that is what one of the economists / analysts at Goldman Sachs says.
Commodity analyst Damien Courvalin is out with a big call last week. You can read this for yourself right here.
Of course it was also Goldman Sachs that predicted gold prices would fall after 2011 to around $1335 a year or so ago. You can read that article here. That never happened so I am quite sure that the latest prediction is not going to happen. But then again, I am a gold bug and a gold miner and this is a gold mining website. Need I say more?
A Junior Miners Fiscal Cliff
What's with all the new catch phrases that are coming out these days. QE (quantative easing), Black Friday, Cyber Monday, Fiscal Cliff. We had junior miners thought the picture below would help to show readers our own version of a Fiscal Cliff.
With the price of gold holding well in the low to mid $1700 range isn't it time for you to be looking at getting your very own fiscal cliff? We have some excellent pieces of property listed in our classified ad section.
Central Iron Ore News
Central Iron Ore posted a news release today from their latest round of drilling in Australia. Excellent gold grades were encountered and results are in line with previous drilling projects. You can read the highlights on todays news letter that was sent out earlier.
Also there is a new miner minute video about North American Nickel, TSX-V: NAN. North American Nickel has finished their drilling project in Greenland and news is expected out in the very near future.
Also there is a few more listings in the classifieds. Be sure to check these out.
Best Prices For Silver
Just a quick note. After the shake up or shall I say, "shake down" in the gold markets on Friday, JM Bullion has a pretty good deal going on for 1 Gram Gold Bars. If you head over to the site, you will see a super good price on silver rounds also. At the time of this article being written, their prices on 1 oz. Silver Rounds are even priced better than what Kitco can offer. At the end of the day, gold is gold and silver is silver. No use paying any more than you need to. There is a lot of rumors milling around about a gold rally within the next few weeks. It may seem hard to believe after what has just happened but just when you least expect something to happen, that's usually when it does.
Something New At Junior Miners
What's new? Video casts is what's new. Junior Miners will now be doing video casts for junior companies as a way of show casing their projects, properties and anything else that is important. First up of course is our featured miner, Central Iron Ore.
Junior Miners Fall News Letter
We have a very interesting mine that just listed today. The Giant King Mine is now for sale. You can read up on this historic property right here.
Also I want to tell everyone that the fall news letter was sent out a few days ago. Some people have mentioned that they did not receive the news letter in their emails. If you have signed up and did not receive it, maybe check your junk folder in your email. Anyhow, I have posted online also and it can be read here or the red button on the top right hand side.
Meet Central Iron Ore
Junior Miners welcomes Central Iron Ore as our featured junior miner this month. Central Iron Ore is a iron ore and gold explorer from Australia. This is one company that has some very exciting prospects and you owe it to yourself to take read up on the miner.
Also the fall newsletter should be out (sometime) this week, so make sure you are on the list by signing up. The form is just an email address on the right hand side of the page.
Face Change. New Look.
For those returning visitors you will notice that the site has kind of a new look to it. We have changed out the old top images and added a new image on all the pages. We are also in the midst of cleaning up some old pages that are outdated with broken links and pointless information.
We have a new mine listing on our classifeds. The Yreka mine and deposit is up for sale on Vancouver Island. All the minfiles are included via links on the ad. Be sure to check it out.
Is Silver A Trade Or A Hold?
Silver prices have gained around $8 an ounce in the last 3 or so months. There are a lot of silver bugs and gurus out there who are predicting $50 silver, $75 and all the way up to $150 and more. I am not really one who knows how high silver will go but I can tell you one thing and that is I am very pleased to have a lot of my spare cash tied up in a silver trading account verses trying to pick a winning stock.
There are a lot of different ways to invest in silver and one is just by buying silver bullion and holding onto it for one of those rainy days. However due to it's extreme volatile nature, sometimes it's better to trade silver like a stock. Buy the weakness, sell the strength. That is where Bullion Vault comes in. I started back in 2007 when they first came online allowing you to trade gold by the gram. Then a few years later they started a silver trading platform and that is when I sold out my gold postion and rolled the proceeds into a silver account. It has proven to be a lot more profitable than trying to swing trade any mining stocks or trying to find that one mining play that will hit the big time.
Start trading some silver today. Open and fund an account and get one (1) FREE OUNCE of silver to get you started.
Almost $1800 Gold
Nice ramp up on the gold price lately. For a lot of miners out there this is of course good news. Gold was around the $1600 mark in early summer so a nice $200 rise is very welcome. It's too bad the stocks are not perfroming the same. Most junior miners are trading for pennies. If stock prices don't turn around, for some it could be game over in regards to getting additional financing in the future.
There were no new classifieds for the month of September but we have just listed a couple of crown grants that are located across the lake from BC Gold's Engineer mine in the Atlin area. Crown grants are rare as hens teeth and very seldom do you see them come up for sale.
We also are working on putting together our fall newsletter and in this edition we will give you some info and a few photos of our experience with the 50 ton shaker built by the boys at Gold Watch Project. To say the least, if you are tossing the idea of going placer mining and are on the hunt for a wash plant, take a hard look at these units.
Before I forget, there is a new ebook out called "Gold Rush" and it is about why you need to own some gold today. At $2.99 you have nothing to loose.
Mid Summer Message
Mining in the north of BC and Yukon is well underway and has been for a few months now. With gold prices holding firm in the mid $1600 range and silver finally poking it's nose at the $30 mark, the fall of the year should look OK for most.
I would like to draw your attention to the many new mining claims that have been listed for sale over the past few months. There is a large turn key operation in the Yukon for 1.18 million. Everything you need to get the gold is here. A lot of gold bugs and analysts are still predicting a gold price of $2000 plus for next year so if you are wanting to get invested in gold there is nothing better that owning the gold mine itself.
We ourselves are mining using a screen deck built by Gold Watch Project. We will be doing a write up in our newsletter about this shaker deck later in the season so be sure to sign up for our free newsletter. We will be giving everyone the pro's and con's of these plants.
To everyone else who is out exploring and prospecting, there is still about 2 months of fair weather left depending on how far north your are working of course.
It's sluicing time again in northern Canada and we are going to be gone placer mining for the next 3 months. We will still be around although not on a daily basis like we are the rest of the year. If you are interested in placing an ad you are still welcome to do so. It just may take a week or so before your shows up on our classified page.
Speaking of ads, there has been four (4) new mining properties listed for sale this month alone. With the price of gold steady like it is, now is a good time to get out there and see some of this ground that is being offered for sale. Like our motto here, "Don't Buy Gold. Buy A Gold Mine" goes, next year at this time you might just be kicking yourself for not acting this year.
In the meantime we wish for everyone to have a great summer. In your heading out camping and prospecting, be sure to bring home some nuggets.
Mining Claim Listings
Looking back a year, we had 5 mining properties listed during the month of May 2011. This May 2012 so far, we have had no mining claims listed for sale. After high gold prices for the past year and now with gold stabilized around the $1600 mark, we think a lot of claim owners are starting to take a different look at their properties and either mine them or option them on a percentage basis.
Money this year seems a bit tighter although there seems to be good cash available for good quality ground. If you are thinking about selling your ground, now is just a good as time as any to get your ground advertised. Even though the mining season in the north of Canada has started, there are those who would love to take a look and test this season and then have the winter to get geared up for next year.
5 Years Old
Junior Miners is 5 years old. We went live back on May 7, 2007. Since that time we have seen hundreds of thousands of visitors, almost 1700 junior mining companies listed and hundreds of mining claims advertised. Scads of mining claims have sold from this website. Lots of sellers have written back to us with compliments.
We have featured quite a few junior mining companies over the years and we have also talked about a lot of juniors on our mining stock talk section. In the last year we have been expanding our section of Old Mines & Camps which feature short stories about lost gold mines and other lost hidden treasure from around the world.
We would like to say thank you to all our readers and mostly to all of our subscribers who receive our free monthly newsletter that helps keep them informed of new mining properties being listed and other junior mining news. We plan to be around in another 5 years when the juniors are all trading in the dollars, gold is well over $3000 and silver is sky high.
More Claims Added
This month we have seen a few more claims added to our classified ads. We have a claim on the Fraser river listed for sale. Fraser River claims are quite rare in the fact that most of the Fraser River area that has gold is on reservation land, too steep to access or a total lack of access.
There is also a claim in Arizona we just listed yesterday. If you have 2 million dollars you can have it all. Lots of gold here so check it out and if you are interested in land in the Carolina's, we have 22 acres there.
We always get people asking about cheap mining claims. Well we just listed a bunch of claims in Idaho with a real cheap starting price of only $2500. Mining doesn't get any cheaper than this. Great way to get started. Find an ounce and your have yourself a 100% ROI. Almost.
Cheap priced stock these days too. Most juniors are sitting on 52 week lows. Some are on multi-year lows. When will it turn around? I don't think anyone knows.
Gold and silver are still trading sideways. There seems to be no let up to the take downs. Once the price gets close to the $1700 mark the price gets slammed again. Endeavour Silver which is a silver mining company has decided to hold onto it's mined silver instead of holding cash. This is a move that if acted upon by other mining companies could help firm up the price of the metals.
Lots of small talk about graphite these days. You know how small talk can become big talk. There is an interesting article written by James West in our affiliated news letter about graphite. It's called the promoters dream. Two reasons why I am mentioning this here. One would be a graphite stock and the other is to let you know that we have a graphite property for sale in our classifieds. This is the first graphite property we have ever listed. We've listed almost every other kind of property in almost every country so far.
Mining Shows & Conventions
Lots of mining shows and conventions coming up this year. This year we have been received requests from various media outlets to help get the word out about these shows. First there is the Asia Mining Forum that is in May and then there is the Mining America Sumitt in June. There is also the Hard Assets conventions this year. Three of them in fact.
We have a few more listings for some mining claims for sale over the past month also. There is some real good looking Yukon properties that might be of interest to those who are real serious about placer mining. You can view more about these listings here.
Also we would like to tell you and the whole world that we now have our heavy equipment classified section up and running. There is already about 40 some pages of listed equipment for sale. Great place to buy or sell your used equipment.
And lastly we would also like to let everyone know that we are now affiliated with Iron Planet equipment auctions. If you are interested in online bidding of heavy equipment this just might interest you. What sets Iron Planet apart from some of the rest is that they send a sales rep to check out the equipment before it gets auctioned so you can bid with some confidence.
Yukon Peel Area Not Off Limits
The Yukon government has rejected the Peel Watershed Land Use Planning Commission's recommended plan for the Peel area. Although there are different groups opposing this idea the Yukon government says it won't ban mining or other resource development in the Peel watershed.
The Minister for Energy, Mines and Resources said the government favours managing the intensity of development in the area verses banning the developing idea altogether. This is good news for junior miners who were hoping to explore the area.
On the topic of the Yukon, we just saw a large Dawson area mining show that was listed with us in our classifieds sell. Mining claims in this area are a hot commodity these days. Actually good mining claims anywhere are a hot commodity. If you have claims, hardrock or placer, or mining equipment for sale, let us know because our classified ad page is getting about 50,000 hits a month now.
Junior Stocks On A Rebound
Some juniors have turned around and are rebounding quite nice. Yukon explorers like Atac have seen their stock value jump as much as 50% in the last few days. Seems to be a renewed interest in the miners. Maybe 2012 will be the year for the miners.
Speaking of the Yukon, we have a large and I mean very large placer mine for sale. It's on 40 mile and there are over 400 claims, about 20 miles worth of mining property. If you are at all interested you can read more in the classified section.
Also you might notice the banner up top, Mining Americas. This is the second annual convention. Be sure to check it out.
Our 2012 Prediction For Gold
Don't Buy Gold. Buy A Gold Mine!
In todays market enviroment, there is a lot of different ways to invest ones money. You can buy into funds of all sorts, stocks and bonds, realestate or commodities. There are thousands of ways out there to invest. Not all will give you a return on your investment. With uncertainty in world markets like we see in 2011 - 2012 there is probably more ways to loose money that make money.
As the editor of www.juniorminers.com, I have followed the junior mining market for almost 20 years. Over that time I have seen fortunes made and fortunes lost. Today with most junior mining or even mid cap mining stocks plundered to 52 week lows and heading lower it would seem like a good time to buy. Then again we read almost everyday the fact that hedge funds and naked shorters are on the war path of almost every mining stock it makes one wonder if even though the stock price is undervalued, does one buy the stock only to maybe see its value fall even more?
It's all about risk, they say. Whoever they is. Risk verses reward. The question is how much does one want to risk or better yet how much can one even afford to risk. In these time most can afford very little so buying into a lot of mining plays can be a dicey game of chance. One only has to look at the hot prospects of gold finds two years ago to out that they have also turned cool to cold today.
You can buy bullion as a way to invest. After all gold has returned about 15% per year since 2001. That is a whole lot more than any so called secure investments like a government saving bond or any government tresasury bill. The problem with buying bullion in these days is the premium that one must pay and also the availablity of the bullion itself. One does not have to look far to see that there is both a PHYSICAL gold and silver shortage. Wait times can range from a few weeks to months. Investing in precious metals is a great idea and I invest in both gold and silver myself and encourage others to buy as a safe haven or as some call it, insurance.
Mining claims. Our motto for the new year is: "Don't Buy Gold, Buy A Gold Mine". Today we are seeing a lot of investors and people who just want to cover their backsides a bit are looking more and are into researching, exploring for and outright buying of good mining properties. Whether they are staking those claims themselves or just looking at buying claims, we have seen a huge interest and demand for good mineable properties and it only make sense. For the price of three or four ounces of gold you can own an entire claim that has the potential to produce back to you, hundreds if not thousands of ounces of gold.
Although gold mining is a heavily risked game there is still money to be made by optioning the ground, proving the ground and then reselling or optioning the ground, or just mining it your self. A lot of present day successful miners got their start with a pan and a small hand sluice. A lot of them were mining gold this way when the price was a mere $300 or so. It takes a different type of person to take on the challenge of prospecting out a claim. It takes a lot of HARD work also but the rewards are there for those who dare.
I truly believe that we will see $3000 gold in the not too distant future. I have stood by my predictions of $3000 gold for about the last seven years. There are others who are predicting $5000 gold and higher but if you think of the average mans salary today, all you need is an ounce or two each month and you can make a living. No one told you that you would get rich or make a lot of money, just make a living. In todays world with so many people out of work period, making a living and getting by is not all that bad of an idea.
Seasons best and the best to all in 2012.
Junior Miners Is Four Years Old
Four years ago juniorminers.com was launched online. That may not seem like a long time but in internet years it is a very long time. It is kind of like measuring time in dog years. We have seen a lot of growth with the website over those four years. From one or two visits a day to over 500 and more visitors a day and from about 40 pages to well over 140 pages of information, talk and classified ads, we have seen a lot of growth. Speaking of ads we have we have just listed some real exciting properties in the Yukon again. These are placer claims on the famous Dominion Creek just a short 30 minute drive from Dawson City. Also if you are looking at getting into the placer gold mining game we just listed a real sweet trommel that is for sale. Be sure to check both these listings out.
At this time silver is back up to just under $39.00 and gold is back basing well in the $1500 range. This is all setting up for an exciting summer of mining and exploration.
Thanks to all those who stop around for a visit, those who have joined our newsletter and to all those who have used our advertising service. We plan on being here in another four years.
Don't Sell Your Gold. Mine IT!!
With gold and silver now at all time highs, there are a lot of people who are out there selling their gold to the "cash for gold" buyers that are popping up everywhere. That is one side of the story. On the other side we have those who are looking to get into the mining game and right now there is a lot of interest in mining claims. This past month we have seen some quite spectacular sales in the classified ad section here. Two groups of Yukon placer claims selling within weeks of getting listed.
Today we just listed another large block of claims in the Dawson area. This is the highest priced property we have listed here to date. Lots of claims, lots of gold. 4 million dollars. If you are interested in getting into mining in a big way, this could be that right opportunity that you have been waiting for.
Metals Still In An Uptrend
Both gold and silver have hit new new highs. Silver is not quite a high but a new 31 year high. Unfortunately though a lot of the junior miners are nowhere near their highs. It seems a lot are sitting on lows or close to it.
News from Japan about reactors brought down uranium stocks quite hard. Some have turned around and for those who climbed on board have made a tidy profit already. Speaking of uranium, we have just listed our first ever uranium property in our classified ads section. In fact we have a lot of listings this month so far. This month has seen a lot of properties listed. Some claims in Mt. Nansen that were listed in early March already have a sold sign on them. What does that tell you about good mining property??
New Highs In Metals
Precious metals have been on a real tear lately. We get the odd email asking us which sector we feel will have the highest go or most upside in the junior mining stocks. On a personal level we feel that silver as a metal in physical form and some of the pro silver juniors will do extremely well compared to say some gold or base metal players. A lot of these silver miners are really beat down or just plain undervalued.
We added a few silver miners this week to our list. These miners are listed on the ASX exchange in Australia. You can grab links etc. from this page
Also on the note of silver, we would like to let readers know that Bullion Vault now has live silver trading. We had been trading gold with them since 2008 and just rolled over our gold position into a silver account and (not to boast... but) have done quite well with it so far. For anyone interested in trying their hand at trading silver on the swings this is a great place to go as you can buy silver positions right down to the ounce. Also a great way just to accumulate silver.
We are also subscribed to the Midas Letter and you should to. Not only are they giving you great information on mining stocks but they they are giving you a chance to win $100,000 in gold bullion. Talk about putting your money where your mouth is. Last year they averaged over 200% on their stock picks. That's a whole lot better than the 1 -2 % you get at the bank these days.
News! Hot Off The Press!
Our featured junior miner today released news of a new vein from their Ample Gold Max project in BC. This new quartz vein is located in a previously unexplored area, and is located north of the Ample-Goldmax Main zone.
Continue here ....
New Listings In Our Classifieds
We have some new listings in our classified section. Properties in Yukon and also in Pearson County North Carolina. If you are thinking about getting into the mining game you couldn't ask for better timing or better properties. Click here to view these ads.
Also we are updating our directory as some of the listings have outdated info so if you are a junior miner, maybe check the directory to see if your listing is up to date. We have had several companies contact us to update their info.
Lastly, if you have not signed up for our news letter, now would be a great time. It's free and we hope to have some good news worthy information to keep everyone up to date with what is happening in the junior mining world.
New Featured Junior Miner
We always thought that January / February, March were the months for gold. At least that is what I thought. If that is the case we sure are not seeing that this year. It may be the months for gold etc. but the prices seem to be really lacking direction. Let's hope this changes before months end. I did a short artcile on both the HUI and the GDXJ the other day as they had both fallen below the 100 MA.
We also have a new junior miner that is being featured with us and this company has an exciting play going on right now, right here is B.C. Not many shares OS and a low share price right now make this play well worth the look.
Read more here .....
Back To Work At Tulsequah?
Remember Tulsequah? That was the mine site in the north west corner of BC that Redfern Resources wanted to develope over the years. It was the mine that had so much controversy with the enviromentalists, the First Nations etc. The company went under during the 2008 credit crisis and the stock ended up being delisted. Anyhow it looks like the project is
going to get another look. Chieften Metals is the new company that is looking at doing some work there. Their ticker is CFB.
Heavy Metal vs. Precious Metal
We read a lot of articles each day from different writers about their views on the mining and metals industry. By watching the metals industry you can sometime sort of predict the way the market for mining stocks will trade. I say "sort of" because it seems I am either ahead of the herd and get impatient and sell out or I am completely out of the loop and the last to hear so it seems.
This weekend I was reading news items from Sprott investing who sees precious metals, most specific being silver, heading to maybe triple digits in the next few years. Here is one of the industies investment gurus talking about silver out shining everything. Of course there are a lot of others out there who will also agree and a lot of other will not agree. But being a silver buff myself I am thinking it best to agree.
So when it come to investing money in silver, which is the best route to go. Does one buy stocks, etf's, physical, certificates or ?? We of course here at junior miners would say that stocks is the best way to go. Find a junior miner that has good silver property in development, some cash, good management and one that trades moderately and purchase some shares. As the junior gains in being noticed by the investing public or drill results etc. hopefully the stock will rise in price over the long term.
Investing in ETF's can be OK as long as there is a certainty that all the shares are backed by silver and stored secure so as the bullion itself can not be loaned out.
Buying physical is a great way to own silver. Whether you buy from the mint or banks or even from some of the miners themselves such as First Majestic physical silver is a great way to own and hold silver.
If you are just inclinded to trade silver on swings by buying low and selling high because silver is quite volitile, you can do that also. We trade silver ourselves here through a company that is based in England. The company, Bullion Vault alows you to own silver and trade the silver in a pool with others. Once you build up your position you can purchase a kilo bar in your name. So in reality you can start out with say just a few ounce ounces of silver and sell the highs and then buy the lows to build up more ounces. We have been trading silver now for the better part of a year. We started out with a position in gold but when the volitility is not there it can be sometime harder to make any profits.
Be sure to head over to our Mining Stock Talk section where we update news a few time each week about the juniors. Also if you are interested in mining yourself or getting involved in mining we have had some very interesting properties getting listed on the site. Be sure to check that out also in our classified section.
It's a new year and we at junior miners would like to wish everyone a happy and of course a prosperous new year. That prosperity can come in various shapes and sizes and it is not always related to finacial prosperity. It can also be found in health and contentment.
This year saw a lot of juniors active in their projects all around the world. From BC our home place to Yukon and abroad to Tanzania, junior mining companies were out in full force looking for the next discovery. Canaco in Tanzania was one of the hotter plays this past year and saw it's stock price rise around the 1000% or so. We are following a few other small Tanzanian plays over in our new section of the site at the junior mining stock talk section. After selling our site penny mining stocks .com we decided to evolve a new section to carry news about the trading of these junior plays each week.
Lots of claims were listed here and sold this year. Some of these mining claims were priced well into the upper 100 thousand bracket so that shows that mining claims and the interest in the mining field is climbing. Site vistors reached over 13,000 in December. That is about double from normal traffic. We feel a lot of this is due to the amount of traffic coming to the new junior mining stock talk section that we mentioned in the previous sentence.
We are also subscribed to the Midas Letter and you should to. Not only are they giving you great information on mining stocks but they they are giving you a chance to win $100,000 in gold bullion. Talk about putting your money where your mouth is. Last year they averaged over 200% on their stock picks. That's a whole lot better than the 1 -2 % you get at the bank these days.
This month we saw gold hit a new all time high and then crash about 6% down. Silver about the same. While all this is happening the juniors seem to just sit on the sidelines going un-noticed. There are a few juniors who are active in trading, a few others merging like Silvermex and Western Coal, but for the most part the juniors are basically flat on the month.
some websites state that some bigger money is heavy on shorts on the junior sector, others say there is just no interest as the mid cap players are gettting the attention from the majors so that it where the money is going. Who really knows.
In other news, due to demand from some readers we have opened a new section that we use to have over on the penny mining site. The new area of the site is called "Junior Miner Stock Talk" and you can get there by this link or you will notice the new menu button at the very top of the menu. In this section we will be doing small write ups a few times a week about some of the smaller players that don't get to much attention otherwise. Good place to read up on brief bit of news that can carry some weight down the road on making decisions about trading.
When people think about junior miners and their home turf most will think about British Columbia. After all that is where the VSE better known as the Vancouver Stock Exchange was located years ago and that is where most of these small juniors were listed.
You had to be listed there first and had to get some good finds that let to bigger money before you could get noticed on the big boards of say the Toronto Stock exchange.
So you see BC was the place to start and BC was also the place to look for minerals. For a lot of people BC is and always will be the place to be. We even have mining claims ourselves that we tend to in BC.
So when it comes to finding mines and getting all the drilling and exploration done and the years of work put behind you, it is sort of sad that in BC you could loose the opportunity to mine the mine you found. That is what happened to this week to Taseko. Their Prosperity Mine did not get the go ahead due to federal departments. All that work and then this. Yes it is sad.
So who is going to find the next big mine? Well Terrane Minerals got the go ahead for their Mt. Milligan mine. There will be some jobs created and more money will flow into the area and that alone will keep some small prospectors pinned with hope that they to may one day find the next big find right here in BC
When someone thinks of gold mining and exploration they tend to think about places like Nevada, California, maybe Chile, Ontario or BC and those sort of places. Few if any think about Africa and Tanzania especially. Most people have never heard of the place. It's one of those "not in the news places".
Tanzania is however one of the larger deposited areas of the planet. Companies like Barick are mining in Tanzania and there is getting to be kind of rush on land there. While it is mostly larger cap companies that explore in Tanzania, there is getting to be a number of smaller cap penny miners that
are starting to explore areas of Tanzania.
While a lot of people who are into junior mining stocks know about Tanzanian Royalty (TSX-TNX) and it's presence in that country few are aware of the smaller ones. Companies like MDN Inc. (TSX-MDN)have also been in the country for some time. Now smaller ones like Currie Rose (TSXV-CUI) and Sidon International (TSXV-SD) are in the news with exploration projects..
These last two plays give the investor a chance at getting involved in a Tanzanian play for under 20 cents a share. Both are active at work in older proven areas and should have news coming out on an on going basis.
We get emails from time to time asking about the best way to buy gold is. Well aside from buying 1 ounce gold coins which is now getting quite expensive from banks or coin shops we have focused on a way to be able to buy gold buy the gram.
Now Kitco does run a gold pool where one can buy a gram or so and keep adding into the pot but we have for 2 years now been with a company out of the UK called Bullion Vault. Bullion Vault allow you to open an account and start buying gold on different exchanges and in different currencies. You don't have to buy and sell in US dollars. That is the difference and that difference alone can play big in profits if you work both the gold market and the currency markets.
Now if that starts to sound to complex, don't worry. Just be like us. Open and fund an account, get it verified and trade away. It's all quite simple. You get a bank draft from you local bank to fund your account. Once the funds are there they notify you and then you verify who you are and thats it. Start with a little or start with a lot. What you are buying and selling is grams of gold. It's a great way over time to add to your total sum of gold. When you want to sell you just sell and notify them and they transfer the money back to your account.
With gold being active and looking for a base around $1000 an ounce like it is now, this is a good time to get started. And for the fact that you can get a free gram of gold makes it all the better.
A lot of people write in asking about what the Silver Snowball program is that they see on this site. To make a long story short I'll write a bit here about it.
The Silver Snowball program was started a bit over 2 years ago by a fellow by the name of Ed Freeman. (He still runs the program himself) He wanted to make a way for the average person to be able to accumulate silver in the physical form. He also wanted to make it affordable and still be profitable. So what he did was set up a program like an MLM where you become a member and buy 1 coin per month. Then you tell others and once they join and buy a coin each month you get rewarded with bonus coins. Basically it is a 2 for 1 system. Each month your members buy you get a bonus. If you have 2 people you sponsor and each person buys 1 coin you get a bonus coin.
I of course have always like to add to my collection of silver so this became a disiplined way to accumulate silver. Each month I would buy my 1 once and after a while others joined and I was rewarded with free bonus silver.
Of course it seems that where you look these days in regards to the internet you see nothing but scams. Pay and get nothing seems to be the theme of the day. I get this all the time even from people wanting to place ads for their claims. Some are scared of paying out even $20 for an ad that they think will not get posted.
The point I wish to make is that as of last month it will have been 2 years and I am still in the program and I am still getting free bonus silver. Yes I have seen a lot of people join and a lot of people leave, but all in all most people do manage to get a few others to join and find out that they too are getting bonus silver each and every month.
So if you are interested in an MLM program or feel that you would would like to get a bit of silver on a monthly basis, then you are most welcome to join up with the rest of us.
This metal bull market we are in has been here since 2001. That is when gold made it's turn around from $260 an ounce and has climbed each year to where it is today. Lots of wealth has been created by some who have bought and sold mining shares over these years. Others are breaking even after the fallout of 2008, but all in all most investors are or at least should be on the plus side by now.
We see a lot of analysts each week or almost every day touting that gold will see $5000 plus an ounce and silver maybe $200 or even more. Well how then does the average investor or say just the average guy on the street get a piece of the pie. On way is by doing due diligence on mining companies and buying stocks. The other way of course is by just buying physical gold and silver bullion from coins shops or online. You may mot see the same explosive price gain with bullion as you will with some stock, but you will have the physical stuff in the palm of you hand. And as the old saying goes,"One in the hand is better than 2 in the bush."
The third way is by being really pro-active and ambitious and by that we mean going out and staking a claim or you own. Whether you stake your own or buy one you have the same chance as making it big like any other person out there. If the gold is there, the gold is ther. It's just up to you to go out and get it.
Gold mining or placer mining was a way of life for many families during the 1930's depression. With no jobs to be had many families headed out to sluice and pan the creeks to get their button a day. It doesn't take a lot of gold to make a days wages even mining buy hand. With prices of $1100 per ounce today that works out to about $40 a gram and a gram is pretty itty bitty. Besides, there is nothing like being outside in the fresh air with nature, panning, sluicing and camping.
For those who wish to mine bigger you can always stake or buy claims that are deeper ground. Either way we have claims from all over the North America listed for sale here. Why not check them out today and see if there is a claim in your future.
For placer miners the world over, "black sands" are a fact of life. Every miner has to deal with "black sand". After sluicing and cleaning up concentrates and getting all the gold out there is always that "fine and super fine gold" that just won't come out. Many methods have been tried over the years from vibrating tables, gold wheels, spirals, jigs and the list goes on and on. Also in a lot of cases most miners just get what they can and then just leave the rest.
This summer we were on a mining project testing ground for grades. After each cleanup we would weigh out the gold and calculate the weight verses the yardage and come up with a ground value. In each case there was this annoying black sand to deal with and in each case we just dumped it out. When the season had ended and we returned back home we had these sample of gold and we also had plastic tub with a 12 pound sample of this "black sand".
My uncle who is a prospector stopped in and we were showing him our gold finds. We also showed him the "black sand" we had got. He told us that there could very easily be a few ounces of gold in there. After giving us the name of an assayer friend of his we contacted this assayer and true enough there was gold in. Even though there was NO VISIBLE gold there was gold in what they call "matrix" gold. Gold that is encased in heavy metals. And when it was all over we found out that we had just shy of a 1/2 ounce of gold for a 12 pound sample. Put that into perspective and you have 80 ounces per ton. Depending on the gold price I'll let you do the math on that.
So Mr. Miner your lesson here is get your "black sands" assayed. You may be really surprised or even shocked as we were. While I am on this speel I would like to tell you we also sell a small ebook about making money from you "black sands".
What else is new here? We installed links to map viewers on our classified ads page. They are located on the left hand column marked in blue lettering. We felt this would be a handy feature to have as some sellers are now listing there claims with the tenure numbers. This way if you see an ad that has claims that interest you, just open the map viewer and input the tenure or claim numbers into it an the map will open to where the claims are located.
This month we have seen a lot of interest along with quite a few new listings of placer ground in the Yukon Territory Of Canada. The Yukon is probably still the best spot in the world for placer mining. Areas around Dawson have been mined for years. There was also a gold discovery north of Watson Lake about a month back. Things are really looking up for the part of the world and higher gold prices are making it happen. If you are at all interested in placer mining, be sure to check out the new listings in our classified section.
Also INO started to select one winner every Monday, Wednesday, and Friday starting on November 30th through December 25th. The winner will select their choice of prize and the remainder of the prizes will be available for the next winner picked.
You can read about the prizes up for grabs here. Some of these are really good if you are into stocks and trading.
How much do you think you could learn if you had a chance to sit down with over 15 of the most successful day, value, and long term investors of all time? Do you think you’d finally get that one piece of advice that takes your trading from OK to extraordinary? Today you have the chance to pick the brain of one man who has sat down with experts and got your top questions answered.
The key ingredient with ‘super-traders’ isn’t as complicated as you think, as most of them share the same traits and behavioral patterns, but it’s how they put them to work in the markets that sets them apart.
Gold is hitting an new high each day it seems which of course is good for all us gold buffs out there. Some of the plays we are watching close is Terrane MetalsTRX and their project in BC here. The stock today was over the $1.00 mark and trading volumes have been heavy.
Silver sure has lagged a lot and there is getting to be quite a number of articles talking about the gold/silver ratio. We love silver bother metal and the plays. Silver QuestSQI is a small player we are watching also.
Big News For Juniors Miners And Investors
We were reading this week that there is going to be a new Exchange Traded Fund (ETF) specifically for junior miners. It's called the junior gold miners etf and is marketed by Market Vector. The Van Eck gold miners ETF GDXJ. It will be comprise of a group of junior gold miners and other junior gold mining companies and explorers. So that is very good news for an over looked sector.
We were away this summer on an exploration trenching program in North West BC. We of course were on the hunt for gold. Placer gold to be exact. Mining and testing for placer gold is sort of the easy mans way to a "maybe" riches. I say easy because of the methods used. Easy work? No way. Tromping thru buck brush butt high with gum boots packing pumps and hoses, swatting blood sucking insects is far from easy. It is however an easy way to loose weight and stay in shape. If you don't mind total isolation, it could be a very good life though.
Lots happened this summer also. Gold rallied toward the end into the $1000 range and seems to hold. Silver also rallied well and copper as we had kind of thought all along came up in price also. If these prices hold throughout the year and over the winter maybe all of our summer work will pay off.
Be sure to check out our Adpost as there is new ads posted now of claims for sale. We also have some mining equipment listed and more should be on the way. Good to start shopping for equipment now than wait till the last minute. There is not much for placer equipment available right now at reasonable prices.
Also claims are selling for a pretty penny. I heard through the grapevine that 5 placer cells on a creek next to where we were testing sold for $78,000. No questions asked.
Small Scale Mining = Profitability
The following is written by David Duval. You can read more of his writings at JSMineset.com
With Commodity Prices Trending Upward, Near-Surface Mine Development and Royalty Model Become Options for Junior Explorers
By David Duval
The contemporary wisdom that "bigger is better" has taken a well-deserved beating since the credit crisis unfolded and destroyed some of the world's largest financial institutions in its wake.
With large-scale project financing options limited or non-existent because of the credit crisis, many of the smaller players in the global mining industry have been forced to review their growth strategies, a trend that could see historic mine development practices making a comeback and less mainstream business models adopted.
Perhaps not since the turn of the 19th century has the appeal of "small" become so attractive. Indeed, today's examples encompass a broad range of industries including power generation (wind turbines, small hydro, solar etc.) and small mining operations that provide feedstock to portable or centrally located process plants and refineries, a practice that is relatively common in Asia and Africa.
Not being major enterprises with large industrial footprints, long permitting periods, and high capital costs, these businesses can be developed incrementally from ongoing cash flows, substantially reducing the risk to investors. In the "good old days" this scale of development was the rule rather than the exception and most of the world's major gold camps were discovered and developed on this basis over a century ago.
In his book titled, History of Dakota Territory by George W. Kingsbury describes the development of the Homestake Mine in these words:
When the claim was purchased by the Homestake Mining Company the exploration consisted of small surface pits only and some mining men considered its value as doubtful although there were a number of favorable surface indications. The company immediately began the further exploitation of the property and two shafts equipped with hoisting engines were sunk and various drifts were soon under way.
By July, 1878, or the year after the purchase of the claim, the first mill of eighty stamps was constructed and in commission. With the first dropping of stamps it was proved that the mine was a producer and from that small beginning the mine has steadily expanded, breaking all records and setting a new pace in the world of gold mining. Although it is a very low ore, illimitable tonnage is at the disposal of the company and large mills, the most improved mining machinery and great mechanical power enable the mine to pay large dividends.
It's worth noting that Homestake was listed on the New York Stock Exchange in 1876 and its now dormant South Dakota mine produced approximately 40 million ounces of gold over a 120 year period before the mine's economic reserves were exhausted in late 2001.
Mimicking the discovery of other major gold finds at the time, Homestake began as a surface showing with gold values occurring in vein material that was easily distinguishable from adjoining wall rock. Pick and shovel mining provided a bulk sample for metallurgical test work and grade estimation.
First off, however, the miners recovered gold from alluvial gravels that were eroded from the hard rock vein material. Exploration shafts were then sunk to evaluate the vein material at depth, producing gold in the process to offset exploration costs.
In many parts of the world (including Africa and Latin America) artisanal miners have already gained access to sub-surface vein material by hand sinking small shafts and mining along the vein structures. In fact, you would be hard pressed to find a major mine in Africa that didn't have such workings within its property boundaries. These old workings facilitate target selection and the development of a resource base for production purposes.
Because of its high specific gravity (gold's relative weight to that of water) gold concentrates in stream beds within alluvial gravels and it can be extracted by mechanical methods that take advantage of the fact it is 19.3 times as heavy as water.
Gold occurs in many different geologic settings but two basic types of occurrences or deposits are recognized: primary and secondary. Both rely on similar chemical and physical processes to produce economic concentrations of gold ore.
The Homestake discovery didn't have the advantage of present day drilling technology to confirm the existence of an orebody whose life would extend for more than 100 years. Instead, the economic viability of the mine was established by mining and processing the easily extractable surface material with equipment that used gold's specific gravity to produce a saleable concentrate. In the late 1890s, cyanide was employed to recover fine gold from rocks and is still used under carefully controlled conditions.
Even today, gravity separation is the best proven and accepted technique of concentrating minerals due to its high efficiency and low cost. In addition to gold, gravity separation remains a primary means of concentrating iron, tungsten, tin and coal ores.
Process plants (mills) for gold need not be large and in fact they are often manufactured and assembled in large industrial centers where skilled trades people are readily available. By employing modular construction techniques, equipment can be brought into a mine site by truck, air transport and in the case of tidewater locations, by sea barge. The various modular sections are simply joined together like a kid's Lego set on the mine site. As the operation expands, new modules can be shipped to the site and added to the existing plant facility.
In order to reduce capital requirements, companies often employ contractors to mine their mineral deposits at a fixed price, locking in costs for the term of the contract. With contract mining, a company need not acquire in-house mining expertise or equipment that would only be utilized on a seasonal basis in any event. For smaller operations, contractors can provide services for a sufficient length of time to develop a stockpile for year round milling operations.
What's surprising about today is the reluctance of many companies to consider the small scale, staged development of mineral deposits which is much less risky from both a financial and technical standpoint. In gold's case, some of that reluctance no doubt relates to the belief by analysts that any company producing less than 100,000 ounces won't get adequate market recognition. But as we've seen during the global financial crisis, analysts sometimes make a habit of being just plain wrong.
Nonetheless, in an escalating commodity price environment, the appeal of these modest-sized operations is certain to increase, especially where possibilities exist for multi-sourced production that will boost consolidated output to even more attractive levels. This has been a feature of China's mining industry for generations and is certain to catch on in the West before too long.
Physical gold output even on a small scale basis provides price leverage to companies in the marketplace, especially for situations where the exploration potential leaves room for future production growth.
The Royalty Model
Less mainstream perhaps but even more attractive to the market are royalty companies who either purchase royalty interests (and gold production) in producing mines or seek to acquire royalty production through exploration successes.
Companies bringing new mines into production are sometimes willing to sell Net Smelter Royalty (NSR) interests in their operations to offset some of the capital costs. But these royalties are prohibitively expensive for junior companies with limited access to such capital.
This is not an issue for royalty companies that employ an exploration model, however. In these situations, companies with strategic land positions in established gold belts deal off their holdings to third parties in exchange for a royalty interest should the property achieve commercial production. In the interim period, the royalty partner agrees to make staged exploration expenditures and property rental payments (usually escalating) until commercial production is achieved.
The premise behind this royalty strategy is that companies can discover gold at a much lower cost by utilizing their exploration expertise and core assets as opposed to purchasing production on the open market. Clearly, it's a strategy whose time has come!
The following is written by Dan Duval and reprinted with permission.
Evaluating the merits and future prospects for a junior exploration company is a highly subjective process. Intangibles such as political risk, financial risk, market risk, commodity risk, technical risk and a host of other variables confront companies across the entire minerals industry spectrum. Nonetheless, no matter what the relative size of the company or the commodities segment it’s actively involved in, the best place to start your evaluation is with management.
This is especially true for junior gold explorers, the segment of the minerals industry that accounts for the largest proportion of global exploration expenditures and, predictably, the vast majority of new gold discoveries.
In reality, these are the “feeder companies” for the major gold producers whose primary focus is usually weighted to production (i.e. bread and butter issues) rather than exploration. In order to maintain the annual production rates that underpin their share price valuations, these majors need new sources of gold production and junior explorers are usually the ones that feed their insatiable appetites. Not surprisingly, when push comes to shove they are generally willing to pay a king’s ransom for undeveloped, economically viable gold resources in the ground.
Let’s have a broad look at several important criteria one should examine before determining a suitable investment in this often complex but infinitely exciting investment sector.
Management: Do the Litmus Test
It shouldn’t come as any surprise that good management can spell the difference between success and failure. So how does one determine if management is good or bad?
First and foremost past success is arguably among the best litmus tests for gauging management, although it’s certainly no guarantee. In this Internet age, regulatory filings and Google searches can often reveal a library of information on specific individuals and corporate entities.
A good CEO with a track record that includes at least one notable success generally has the ability to attract risk capital because people like to bet on a jockey that’s won a race already. In addition to having market recognition from past successes, they often tend to be magnets for high quality exploration projects.
Most investors in this market sector have observed seemingly well qualified management ruin good exploration companies because of bad technical judgements and even poorer market decisions. In the latter case, non-market oriented executives often forget that markets and exploration-related activities are closely aligned - if not joined at the hip. Those who manage one without paying attention to the other do so at their peril.
These days it’s quite uncommon for industry executives to have a personal investment in the companies whose future they control. Instead, they elect to take large salaries and award themselves cheap stock options which are typically re-priced lower when the company’s stock price reflects their lack of success.
Executives who are willing to risk their own money with ordinary shareholders have an added incentive to be successful. In old fashioned terms, it’s called “putting your money where your mouth is” - a lesson that unfortunately is largely ignored by most contemporary mining executives. Their shareholding need not necessarily be large but it should at least be meaningful.
It’s also wise to look for management with a broad knowledge of the minerals industry and capital markets, both of which are integral to running a successful company. These attributes need not be exclusive to the CEO but they should feature prominently within the corporate management team including the board of directors.
Senior executives don’t necessarily have to be geologists or engineers but they should at least have the ability to attract, manage and motivate a multi-disciplined group of industry professionals who share the corporation’s philosophy and objectives. Who can forget Paul Penna who brokered penny stocks in Toronto before he became the guiding force and chief executive behind one of the most successful mining companies in the world, Agnico-Eagle?
Personal integrity and the ability to communicate the company’s message to shareholders and the marketplace round out the critical attributes that one should look for in public company management.
In the minerals business, past performance is often a good indicator but not a guarantee of future success. Pick management with strong track records and preferably at least one notable success (i.e. mineral discovery). The ability of management to raise capital to fund the company’s activities on an ongoing basis is also critical as the price of any exploration company’s stock is results driven - and getting those results costs money.
Management integrity can be determined by examining the way a company conducts its business, especially in foreign jurisdictions. In the case of developing economies, this would include a strong commitment to the principles of sustainable development.
Also, one should keep in mind that a company can be a success in the marketplace without taking a project to commercial production. In fact, the majority of mineral explorers never achieve such a distinction, selling out instead to an operating company with production expertise, perhaps retaining a royalty in future production.
Project Selection: The Best Place to Find a Mine is Where There is One
There are many aspects to selecting a good minerals project. But smart companies attempt to reduce some of the geological risk by exploring areas with known mineral potential as well as active mining operations.
Most of the world’s gold production comes from greenstone belts, ancient volcanic and sedimentary rocks that feature prominently in the mining industries of Canada, Australia and South Africa. These belts typically host a broad range of metals including gold, silver, platinum, nickel, copper, lead, zinc and even diamonds.
When you examine the evolution of these belts from a precious metals standpoint, new discoveries are being made well over one hundred years after the initial discoveries. Emerging greenstone belts, including the Lake Victoria Greenstone Belt in Tanzania, are relatively early in their development and will likely account for increasing amounts of gold and base metals production in the years ahead. In these regions, the larger the land position you have the better!
Companies exploring such areas are generally good exploration bets because the infrastructure in these regions tends to be better and the local population generally has a cultural affinity towards mining.
Pick companies with large strategic landholdings and exploration projects in areas with proven geological potential, active mining operations (= good infrastructure), and a recent history of discovery and new mine development.
Project Development: Establishing the Big Picture
Exploration methodology has changed little in decades with the exception of data processing which today is understandably highly computerized. “Boots on the ground” remains the most effective method of discovering mineral deposits and that’s not likely to change any time soon - if ever.
Evaluating an exploration project is most meaningful at the drilling stage and this is when investors usually step into the marketplace. Market activity during this period is generally based on the timely release of exploration results. Understandably, diamond drilling or rotary drilling results are considered the “Gold Standard” during this phase of exploration because these results comprise most of the input data for resource calculations.
In Canada, geologists must adhere to the 43-101 standard when reporting resources for any commodity. This standard is a codified set of rules and guidelines for reporting and displaying information related to mineral properties; and it applies to any company listed on a Canadian exchange which is where the majority of the world’s junior explorers are trading.
Resource estimates are by far the most misunderstood feature of the 43-101 reporting standard. Investors like to apply values to resources that have not been proven economically viable which is a long, costly process. This is particularly true for “Inferred Resources” which have a great amount of uncertainty as to their existence, along with their economic viability. It cannot be assumed that all or any part of any Inferred Mineral Resource will ever be upgraded to a higher category.
For large exploration projects, most companies focus on developing the property-wide potential with widely-spaced drill holes. The reason for this is actually quite simple and practical. Drilling is expensive so rather than expend money tightening up drill hole spacing to produce a resource with no economic legitimacy, companies prefer to assess the global potential to ensure they end up testing the most attractive targets.
When assessing the potential of a mineral property, make sure your analysis falls within a big picture context. One thing to look for is a broad distribution of gold values on the property. You can find comprehensive information on exploration companies from publicly disseminated news releases and regulatory filings. The technical information in these filings has to be 43-101 compliant, providing a high measure of security to investors. Be careful not to apply economic viability to any resource category, especially inferred resources. Even resources that are included in a full fledged feasibility study are subject to various assumptions including future commodity prices.
Exploration Agreements: The Devil is in the Details
Minerals exploration is often conducted under joint venture agreements. In these situations a corporate entity has the right to earn a specific interest in an exploration project for a set expenditure over a specific period of time. In most cases, the expenditure commitment would include money for exploration and staged option payments to the property owner. Look closely at the JV agreement to determine what interest the optionee can earn (the larger the better) and the cost associated with earning that interest.
Junior partners involved in exploration joint ventures with major companies are at a distinct disadvantage. Make sure they have the internal ability or have sought professional help to ensure their joint venture agreements do not subject them to any derivative-related exposure or accounting related issues at production that will prevent them from achieving a timely return on their investment.
Exploration agreements are important and can make or break a company. Make sure you know exactly what interest the company will end up with after the earn-in period. Also, beware of excessive financial commitments (including non-exploration related option payments) that can put the company at risk during periods of market weakness. In the event commercial viability is established, ensure the production agreement with the major allows for a timely return on the junior partner’s investment.
Some companies opt for Net Smelter Royalty agreements (NSR) which limits the financial risk associated with funding exploration work themselves. The royalty model allows for industry partners to earn up to a 100% working interest in an exploration project for a firm exploration commitment and rental (option) payments over a specific time period. In this particular case the property vendor would receive a sliding scale royalty (based on the gold price) should the property achieve commercial production. Because achieving commercial production is the responsibility of the project operator, the royalty partner does not suffer any dilution of shareholder’s equity or development capital risk.
A net smelter royalty (NSR) is the amount actually paid to the mine or mill owner from the sale of ore, minerals and other materials or concentrates mined and removed from mineral properties. This type of royalty provides cash flow that is free of any operating or capital costs and environmental liabilities. A percentage of an NSR royalty on an ore body can effectively equate to a larger percentage of the economic value of the ore body.
Royalty companies have low overhead, are relatively easy to evaluate, and generally command a premium in the marketplace.
The royalty model is virtually risk free but realizing royalty income from an exploration property is dependent upon the project operator achieving commercial production. For exploration companies, holding a strategic land position in a developing gold camp is an essential requirement to attract royalty partners. Royalty exploration companies operate under the principle that you can find gold cheaper through exploration than you could by purchasing production through royalty agreements on the open market. Royalty companies are attractive because they typically command a premium in the marketplace.
Both gold and silver have gained quite nice so far this year. Silver is up 50% from it's rolling 52 week low and gold is up a tidy 10% in the last 30 days alone. With oil prices down, fuel costs may ease a bit and make it more bearable for some juniors to continue with their exploration programs this year.
Stocks that have done well since the start of the year. Nova GoldNG-T up almost 200%, SilvercorpSVM-T up around 100% and Silver WheatonSLW-T also about 100%. Tanzanian RoyaltyTNX-T has climbed about 30% and Eldorado GoldELD-T has climbed about 30% also. Most small base metal players along with precious metal plays have not really performed much at all although it seems that most have found their bottom so for those looking to maybe starting to look for bargains, the bargains are their. Biggest issues for most juniors now will be access to capital.
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