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Gold Is where You Find It


It's been said time and time again, that the best place to find a mine is where there already is a mine. These days with newer technology exploring old mines for new ore is a great way to eleminate a lot of risk and conserve a lot of money. With juniors all over today trying to just stay afloat, raising extra capital is probably one of the hardest parts of the job.

So when it comes to looking for juniors with a good upside potential we like to look at ones that have properties that are located in old mine areas that have a rich history and most of all has some of the infastructure already in place. Old hard rock mines with a good history sometime just need a new set of eye balls looking over the data and modeling. Throw in newer technology and you end up with small miners like the one in this article.

Before I get started I would like to point out the map in the picture above. See the May Mac mine? It's the one with the red star and it owned by Golden Dawn Minerals. Golden Dawn Minerals GOM is a small junior company that has the old May Mac Mine in the Greenwood mining district of British Columbia. The original May Mac showing, discovered and staked in 1894, was developed by several shafts and three adit tunnels. Some 32 tonnes (metric) (35 tons) of mineral were shipped over the subsequent nine years, grading 319 grams per tonne (g/t) gold (9.3 ounces per ton [oz/ton]). By 1904, a new parallel vein, termed the Upper Skomac, was discovered, developed by a new adit tunnel (Adit #4) and mined, sporadically yielding 670 tonnes (790 tons) over the ensuing 33 years, grading in the range of 3,000 g/t (100 oz/ton) silver.

Between 1961 and 1965, a fifth adit tunnel (Adit #5) was developed on the Upper Skomac vein, from which some 553 tonnes (609 tons) of mineral were extracted, averaging 1.37 g/t (0.04 oz/ton) gold, and 185 g/t (5.41 oz/ton) silver, plus 2.1% lead and 1% zinc. During the same period, a diamond drill hole apparently intersected a new vein, with an intersected width of six feet, grading 21.5 g/t (0.62 oz/ton) gold, 14,400 g/t (420 oz/ton) silver, 19.9% lead and 2.1% copper. Then in 1972, Robert Mine Ltd. acquired the property and between 1974 and 1976, developed another tunnel (Adit #6) on the Upper Skomac vein. Four mineral shoots were encountered and mined above the Adit #6, producing 950 tonnes (1,050 tons) of mineral averaging 3.66 g/t (0.107 oz/ton) gold, 593 g/t (17.3 oz/ton) silver, 3.2% lead, 2.0% zinc and 0.25% copper. The following year, another adit tunnel (Adit #7) was collared and driven for some 215 m (700 ft). According to verbal communication with the operator who owned the mine at that time, a vein was encountered some 60 m (200 ft) in the tunnel from the portal, which averaged in the range of 15 g/t (0.43 oz/ton) gold over a length of 15 m (50 ft) and an average width of 60 cm (2 ft).

An 80 tonne per day flotation mill (90 tons/day) was installed in 1982. In 1983, some 1,570 tons of low grade ore were milled, yielding 100 tonnes (110 tons) of bulk concentrate averaging 15.5 g/t (0.43 oz/ton) gold, 2,194 g/t (64 oz/ton) silver, plus lead and zinc. The mine has been inactive since that time. The May Mac Mine, mill and tailings pond are all currently permitted.

Golden Dawn has around 36 million shares O/S plus around 19 million warrants. Management & directors own about 12%. A quick look at the chart above will tell you things have been getting a bit active and with a good turn in gold prices, this could be an exciting play. his is also a play that is not at 52 week lows like so many other juniors we see out there.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Back From The Bush. New Fall Session


August was a month of mining and being out in the bush so no updates were done during that time. During the month of August this year it looks like very little on a positive side took place in the junior mining sector. Mostly larger names that took a hit back during the summer that are now trending back up.

As a pro mining person I like to follow and write about mining plays as much as possible. However I do stray off once in a while when something catches my attention. Because I watch for new issues and IPO's as much as possible, I noticed a few month back a small Venture company that had just been listed. Although not a mining company, they are involved in gold and in a big way also. The company I am talking about is Bit Gold XAU. Bit Gold is not a goldminer but it is a gold company that is firm in it's beliefs about gold as money. It is a company that could be classed like a tech company or something like a cross between bit coin and a gold vendor.

From a recent press release, the company sums it up this way: "The BitGold platform (Web and now mobile) is advancing the digital payments revolution by helping people securely acquire, store and spend fully allocated gold with unprecedented simplicity. Accounts are free and can be opened in minutes. BitGold provides users with a secure vault account to purchase and hold gold in the vault of their choice using a variety of electronic payment methods, the ability to make and receive instant gold payments, and a prepaid card for spending gold at traditional points of sale.

Every gram owned is the property of the owner and can be fully redeemable as physical one-kilogram bullion bars, or 10-gram GoldCubes. In addition, users can send and receive gold as payment to and from any BitGold user or seller for free. BitGold also makes it possible for users to send gold as payment to any non-BitGold users with an e-mail or a mobile phone, and now even easier using existing contacts right from the mobile app."

The companies theory is to get back to using gold as money instead of fiat currency like we use today. Through it's network system a person can buy gold and then use that gold to make purchases. Your gold is held in vaults throughout the world but you can access your gold via a computer online.

The company went public this year on May 13. On May 22 the company bought out Gold Money for 52 million dollars. Gold Money was a leading company that sold gold bullion online.

The interesting part of this companies concept is that with all the talk of negative interest rates in the world today, one has to just take a look at the chart graph below to see how gold has increased in value over the years. As a person in Canada I see that my money could be turned into gold and if I did not need the money / gold, it could in actuality appreciate in value at almost 10% per year. I notice that US dollars could be translated into a 12% return. With regular cash in the bank it is very hard to get even 0.5% return on a savings account these days.

Most finance types today will recommend at least 10% of your money to be invested in metals and gold is most likely the best metal you can invest in even if you are just buying small amounts.

Bit Gold has 43 million shares O/S and has traded between $2.35 low and $8.00 high.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Back To 2002 Levels

July 19.15

No one needs to be reminded of the carnage that is going on with mining stocks. We are usually used to the so called summer doldrums where trading is light and stocks have a tendancy to slide or languish. But this year things have seemed to come unraveled at the seams. Just one look at the chart below and you can see that the XAU is back down to 2002 levels. Gold as the time of this writing is down $27.00 to $1107. Monday morning is going to look pretty ugly.

For some reason or multiple reasons all the negative news we hear about has had no positive effect on the gold price whatsoever. Has gold and silver lost their safe haven status? If so what has become the safe haven for cash? Most equities are over bought and in a bubble. Realestate is in a bubble. Bonds are in a bubble. Is hanging onto cash the best? If so one needs to remember that cash get no interest and looses ground in value with inflation. For now though I'm still betting on gold and gold stocks. Crazy as it seems.

With all these small juniors trading for pennies though, it does offer big bargains for the miners who have the cash and don't wish to sit on that cash. Last week Lake Shore Gold LSG bought out Temex Resources. Lake Shore proposes to acquire all of the outstanding common shares in Temex by way of a court-approved plan of arrangement where each Temex shareholder would receive 0.105 of a common share in Lake Shore for every common Temex share held.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


A Junior About To Become A Mid Tier Producer


Most junior mining companies are doing the best they can just to stay alive these day. A lot of them have little in the way of valued or proved up properties while others have found properties of merrit and are well on their way to become mid tier producers. Today we are going to take a quick look at one of those such companies. Sabina Gold & Silver SBB is a junior that owns a huge gold find in the high arctic of Canada. The 100%-owned Back River Gold Project, a series of gold deposits in banded iron formation, is located in southwestern Nunavut, Canada, approximately 520 km northeast of Yellowknife, NWT; 50 km southeast of Xstrata Zinc Canada's Hackett River Silver-Zinc Project; and 75 km southwest of Bathurst Inlet.

Back River Gold Project consists of seven properties totaling approx. 120,000 acres that host known or observed gold mineralization in banded iron formations. Only two of these properties have been the focus of exploration and resource development to date. Each site has four minable deposits, with the majority of the mineral resources and mineral reserves located at the Goose site. The project is based on conventional open-pit and underground mining operations that feed a 6,000-tonne-per-day whole-ore leach process plant located at Goose, which could produce an average of approximately 346,000 ounces of gold per year as dore bullion over a 10-year mine life with the majority of reserves being mined by open pit. The current mineral estimate consists of a Measured Mineral Resource of 10.4 million tonnes grading 5.2 g/t for a contained 1,761,000 ounces Au, an Indicated Mineral Resource of 17.9 million tonnes grading 6.1 g/t for a contained 3,536,000 ounces Au and an Inferred Mineral Resource of 8.2 million tonnes grading 7.3 g/t for a contained 1,927,000 ounces Au.

In it's latest new release the company said the proposed gold mining project has the potential to produce billions of dollars worth of gold. An open pit gold mine could have a life span of 10 years. The company says it expects to recover 3.4 million ounces of gold in that time. Based on a gold price of $1,200 per ounce, those numbers could produce net revenues of over $4 billion during the life of the project.

The company has just around 200 million shares O/S with a 52 week high of 94 cents and a low of 28 cents.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


A Bottom Feeding Zinc Stock


There has been a lot of chatter lately about the copper and zinc prices. The price of zinc isn't too far off from it's 5 year high. There is some talk about shortages in warehouse stocks of both zinc and copper also. So one would think that the rise in the commodity price will one day have an effect on the stock price of zinc miners.

Today we're going to take a look at a zinc miner that already has a mine and is continuing to drill out more resources. Canadian Zinc CZN is a zinc player that owns the Prairie Creek mine. This is a mine that was in the news because of it's location. It is located in the Nahanni Nation park. The thing to remember though is that the mine was there before the area became a park so the mine got sort of grandfathered in and the park boundaies were moved around the mine.

In 2006 and 2007, the Company carried out major drilling and development programs at Prairie Creek including driving a new 600 metre underground decline which enabled a significant underground exploration and infill drilling program to occur. This $18.7 million investment over the two year drilling program confirmed a Measured & Indicated resource classification for a minimum 10 year mine life with the significant possibility of extending the life of the mine. Surface diamond drilling campaigns were initiated in 2010 and continue through 2013 with the purpose of expanding the known resource and confirming a further 1.5 kilometre extension of the Mineralized Quartz Vein structure along with further property exploration.

In March 2015, Canadian Zinc began an exploration diamond drill program from underground drill stations located at the end of of the 930 mL decline. The planned program will be completed on four, 50-metre sections and will comprise approximately 6,000 metres of diamond drill coring over 21 holes. The purpose of this drill program is to convert some of the inferred resources into indicated resources that will subsequently be incorporated into a new mine plan to support a longer mine life.

A 2012 Technical Report indicates that the Prairie Creek Property host Measured and Indicated Resources of 5.43 million tonnes grading 10.8% Zn, 10.2% Pb, 160 g/t Ag and 0.31% Cu, which includes a reserve of 5.22 million tonnes averaging 9.4% Zn, 9.5% Pb, 151 g/t Ag. In addition, the Report confirms a large Inferred Resource of 6.24 million tonnes grading 14.5% Zn, 11.5% Pb, 229 g/t Ag and 0.57% Cu and additional exploration potential.

The company has also acquired a very large land position in central Newfoundland, with several high potential, exploration and development base metal projects. The company share base has just shy of 250 million shares O/S. some of the main shareholders are Zhongrun International Mining and Sprott Asset Management along with insiders.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Not All Gold Stocks Are In The Dump - Pt.2


In a continuation of the last report about Eco Oro Minerals EOM I thought it maybe best to keep being on an upbeat tone here. After all no one has to tell you how bleak the mining sector is right now so any good news or bright spots will always make your day a bit more rosey.

Years ago I use to do a lot of swing trading and because I was familiar with mining stocks vs, tech stocks, I would always seem to gravitate towards mining stocks. There was an old saying that it was best to stick with what you know so for better of worse I would seem to follow those rules. One of the smaller stocks that I would trade because it was active and would trade a lot of stock was a small explorer/miner called Caledonia Mining CAL. The stock would trade always close to a million shares a day and it was priced around the 30 cent area if I am not mistaken. So the potential to make a few bucks over a few days trading was always there as it would run up a few cents and then fall back down. As time went on the company did a roll back of it's stock and then the trading sort of dried up. That however never stopped the company from doing what it does and mining gold is what it does best.

Caledonia has a portion of one gold mine and that gold mine is the Blanket Gold Mine in Zimbabwe Africa. The mine operates at a depth of approximately 750 meters below surface and produced approximately 45,500 ounces of gold in 2013. In November 2014, Caledonia announced a revised investment plan for the Blanket Mine in terms of which production is expected to increase to approximately 80,000 ounces of gold by 2021 following the investment of approximately US$70m, all of which is expected to be funded from internal cash generation and existing cash resources.

The Blanket Mine is located in the south-west of Zimbabwe approximately 15 km west of Gwanda, the provincial capital of Matabeleland South. Gwanda is 150 km south east of Bulawayo the country's second largest city and 196 km northwest of the Beit Bridge Border post with South Africa, and 560 km from Harare, Zimbabwe's capital city. Zimbabwe has a long history of mining and there are known occurrences of over 40 minerals in Zimbabwe, mainly gold, nickel and copper but also including coal, diamonds, PGE's and chromite.

Zimbabwe has been a gold producer for over 100 years. Gold production in Zimbabwe reached a peak of 29.7 tonnes in 1999, at which time it was ranked as the 16th largest gold producer in the world. Gold production fell to only 3.5 tonnes in 2008 and by the end of 2008 all the gold mines in Zimbabwe had been forced to close due to the failure of the Reserve Bank of Zimbabwe ("RBZ") to pay for gold which, under the prevailing regulations prior to February 2009, required all gold producers to sell gold to the RBZ. On January 28, 2014 Caledonia announced that as a result of new regulations introduced by the Zimbabwe Ministry of Finance, all gold produced in Zimbabwe must now be sold to Fidelity Printers and Refiners Limited ("Fidelity"), a company which is controlled by the Zimbabwean authorities and which is now responsible for the final refining and marketing of all gold produced in Zimbabwe. Accordingly, all of Blanket's production has subsequently been sold to Fidelity. Blanket receives 98.5% of the value of the gold within a maximum of 7 days of a sale to Fidelity. Blanket has received all payments due from Fidelity under these new arrangements in-full and on-time.

This year the company issued a press release stating: Caldonia has declared dividend No. 8, this being a dividend of 1.5 cents on each of the company's common shares. 1.5 cents is not a lot but for gold prices being what they are and how the market is today this is a postive note for sure.

Caldonia has about 52 million shares O/S with a 52 week high and low of $1.20 and .59 cents.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Not All Gold Stocks Are In The Dump


Today when you look at the stock charts of many gold miners today, they all look the same. Most are sold off, look almost forgotten, sitting on 52 week or in cases even, historic lows. That also goes true for a lot of the other mineral explorers, whether it be copper, zinc nickel etc. Aside from the uranium sector though, most likely 90% of the juniors are down. But when it comes to gold, there is one explorer that is out shining them all and that junior is the one we will look at today. The junior we are going to look at is Eco Oro Minerals EOM.

Eco Oro Minerals is a precious metals exploration and mining development company with a portfolio of projects in Colombia. Their main focus is on their wholly-owned, multi-million ounce Angostura gold-silver deposit, located in northeastern Colombia. The Angostura Project, is located in the Soto Norte region of the Department of Santander in north-eastern Colombia. According to the 2012 World Gold Deposit Ranking, conducted by Natural Resource Holdings, Ltd., Angostura is by grade among the top 50 undeveloped deposits of more than 1 million ounces in the world.

The main Angostura deposit has four key satellite prospects: Mongora, La Plata, Armenia and Violetal. Including the Angostura Project, the Company has concessions, exploration licenses and exploitation permit areas covering an area of approximately 30,000 hectares. Only about 10% of the concessions, licenses and permit areas have been explored.

A National Instrument 43-101 compliant technical report dated March 23, 2012 indicates that Angostura has the potential to produce 222,000 to 303,000 gold equivalent ounces for 10 years at a rate of 6,000 tonnes per day. Just yesterday news was released and mentioned an updated NI 43-101. The updated NI 43-101 Mineral Resource Estimate - In recent months, following the announcement of the Santurban Paramo boundaries, the Company retained Micon International Ltd to prepare an updated mineral resource estimate. The updated mineral resource estimate will incorporate drilling (largely infill) not included in the 2012 PEA (approximately 40,000 meters of drilling in 96 holes) and will provide the basis for further engineering analysis. The updated mineral resource estimate is substantially advanced and is expected to be completed at the end of May 2015.

Also in the latest new release, the comany mentions it has retained NCL Ingeneria y Construccion SpA, Santiago, Chile to re-assess the underground mine capacity of the Angostura Project. The main objective of this study is to establish a production rate that is sustainable and contributes to a reduced Project footprint while maintaining optimum levels of potential precious metal production. NCL are considering various mine planning aspects such as:

  • Long term mining schedule
  • Applicable mining methods
  • Cut-off grade estimates
  • Productivity estimates
  • Order of magnitude of underground development requirements

The company stock trades on the TSX and at present there is 84 million shares outstanding. The stock has seen a 52 week low of 14 cents and a high of 95 cents. A quick look at the chart shows the MACD crossed over about a week ago. Firmer gold prices and more positive future news could keep this stock price well on an upward trend.

Some bonus added news today, Tanzanian Royalty Exploration TNX has started production at their Buckreef gold project in Tanzania. The first heap leach pad of 4 has been completed and is producing gold. Congratulations TNX!

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Lithium Mining


If you are like me and getting really fed up and disgruntled about the junior mining sector, your not alone. It seems almost every junior is either running out of money, their stock prices are in the toilet, investors just don't want to hear the word junior anymore and you've lost a whack of money in the market. Well that's what happening over in the metals side of things. Uranium stocks and diamond stocks are doing quite well and there seems to be some interest in them. Another sector that is getting some eyes is the the rare earths that are used in technology. One of those rare earths is lithium and today we are going to take a quick look at a company that is into the lithium scene.

Economic concentrations of lithium are found in brines, minerals and clays in various parts of the world. Brines and high-grade lithium ores are the present source for all commercial lithium production. The largest known deposits of lithium are in Bolivia and Chile. Lithium brines are found in saline desert basins sometimes known as salt lakes or salt flats. It is also found in hard rock minerals, such as spodumene in pegmatites. The lithium company we are going to look at is finding their lithium in significant concentrations in the mineral hectorite, a trioctahedral smectite. The company that is working on this deposit is Western Lithium WLC and their deposit is in the Humbolt County Nevada and their project is called the Kings Valley. Because of the large-scale mining in the Winnemucca area, local resources offer much of the infrastructure and support required by mining. The area is about 30 km north of the now depleted Sleeper gold mine and 100 km northwest of Twin Creeks, Turquoise Ridge, and Getchell gold mines. Several other gold and copper mines operate in the regional area providing an experienced work force and adequate support for mining operations.

Kings Valley has about 11 million tonnes lithium carbonate equivalent (1) (historical estimate based on exploration work by Chevron Resources during the 1970s and 1980s). The project is spread over five mineralized lenses (Stages I to V) that extend approximately 30 kilometers from the southern to the northern edges. As far as a develpoment plan the company would see their stage I reserve base supports annual production of 26,000 tonnes lithium carbonate, 90,000 tonnes of potassium sulfate and 100,000 tones of sodium sulfate. Once full lithium carbonate production of 26,000 tonnes per year is achieved, average annual cash flow is projected to be $124 million per year. Nominal production of by-product potassium sulfate and sodium sulfate of 90,000 and 100,000 tonnes per year, respectivelyA 20 year mine life, processing 25.5 million tonnes of ore at an average grade of 0.40% lithium using a 0.320% cut-off grade.

The company has a NI 43-101 that was completed on May 09, 2014. This report is an update to the Western Lithium Kings Valley property. It addresses the Stage I and Stage II deposits as well as provides additional updates to the Project. The report on the Stage I deposit includes a Preliminary Feasibility Study (PFS) identifying the progression of WLC's exploration of the property along with advancements in the metallurgical process. The report on the Stage II deposit includes a mineral resource estimates for lithium (Li), along with potassium (K), fluorine (f), and sodium (Na).

The company has 120 million shares out and by looking at the chart is one of the few mining stocks that is seeing some postive action. There has also been a lot of new releases lately so the stock is seeing some good action. If your tired of the base and precious metals, lithium just might be something to look at.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


Diamonds In Canada's North


News came out just last week about the opening of the Tibbitt to Contwoyto winter road. This is the world famous winter road that Ice Road Truckers was first filmed on. Each winter thousands of trucks head up this winter road loaded with everything imagineable that a remote mine would need for the year. A year's worth of fuel, parts, and anything else related to maintaining to keep a full fledged mining operation going. The news article says that 9,500 truck loads of stuff will be trucked this year. DeBeers is also building the new Gahcho Kue diamond mine so there is added traffic this season. This new mine located at Kennady Lake, approximately 280 km northeast of Yellowknife and 80 km southeast of DeBeers Snap Lake Mine in the Northwest Territories. The Gahcho Kue mine is a joint venture between De Beers and Mountain Province Diamonds Inc.

Another company that we are going to look at that is active in diamond exploration in the north is Peregrine Diamonds Ltd. PGD. Peregrine Diamonds has five different project in the NWT and Nunavut. In Nunavut the company is exploring on the 860,000 hectare Chidliak Project on Baffin Island, Nunavut. Chidliak is located 120 km northeast of Iqaluit, capital of Nunavut.

At Chidliak, Peregrine has declared a maiden, independent, Canadian National Instrument NI 43-101 compliant Inferred Mineral Resource of 7.47 million carats in 2.9 million tonnes at a grade of 2.58 carats per tonne in the CH-6 kimberlite, to 250 metres depth. In addition, a tonnage estimate of 2.60 to 3.47 million tonnes, classified as a target for further exploration has been identified, to 380 metres depth at CH-6. Tonnage estimates have also been completed at the CH-7 and CH-44 kimberlites. The CH-7 kimberlite tonnage estimate is between 2.75 and 3.97 million tonnes from surface to a depth of 280 metres. The CH-44 tonnage estimate is between 1.16 and 2.05 million tonnes from surface to a depth of 230 metres. CH-6, CH-7 and CH-44 remain open at depth. Peregrine collected a bulk sample weighing 404.2 dry tonnes from the CH-6 kimberlite in 2013. The grade for the sample was 2.78 carats per tonne for commercial-size diamonds larger than the 0.85 mm sieve size and 2.58 carats per tonne for diamonds larger than the 1.18 mm sieve size.

On its Lac de Gras project in the Northwest Territories, Peregrine has established an independent, NI 43-101 qualified, Indicated Mineral Resource of 18.2 million carats in the DO-27 kimberlite. In addition to the Indicated Mineral Resource, 6.5-8.5 million tonnes of material grading in the range of 0.8-1.0 carats per tonne beneath the Indicated Mineral Resource that represents a target for further exploration has been identified.

Peregrine has a little over 200 million shares. With summer coming around soon and summer work continuing, there could be some exciting news coming from this company.

For the readers that come here often to find out about different juniors, you will otice a different style of chart. We will be using the new style of charts from now on to show the stock price and MACD better.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


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