The stock price of Barrack Gold Corporation, a global leader in the gold mining industry, has been impacted by many variables. Investors and market analysts attempting to manage the volatility and possibilities within the gold industry must have a thorough understanding of these variables. This article examines the main variables influencing Barrack Gold's stock price and offers insights into how these variables combine to influence the market performance of the firm.
The price of gold has the biggest direct impact on the price of Barrack Gold's shares. Barrack's earnings are directly correlated with changes in the price of gold because it is a gold mining corporation. Barrack's profitability usually rises with an increase in gold prices, which might raise the price of its shares. On the other hand, if gold prices drop, the company's earnings and stock value can also drop.
The strength of the currency, particularly the US dollar, inflation rates, and geopolitical stability are some of the variables that influence gold prices. For example, gold is frequently used as a hedge against economic instability and inflation. Gold prices often increase during periods of high inflation or ambiguous economic situations, which benefits Barrack's stock price.
The way that Barrack Gold operates significantly influences the price of its shares. This covers the output levels, cost control, and general efficiency of the business. Investors carefully examine Barrack's yearly and quarterly production reports to see if the business keeps costs under control and achieves its production goals.
Operational difficulties, such as lower-than-expected gold output or increased production costs, may adversely impact the stock price. Conversely, strong production rates, enhanced mining technology, and effective cost-reduction plans may boost profitability and propel stock price increases.
The price of Barrack Gold's shares is significantly impacted by both geopolitical events and the status of the economy. Gold production regions may experience political upheaval or trade disputes, which might disrupt supply chains and impact gold prices. Conflicts in major gold-producing regions, such as Africa or Latin America, for instance, can interrupt supplies, which would affect global pricing and, consequently, the value of Barrack's shares.
A role is also played by economic issues, such as changes in monetary policy and interest rates. Gold prices may be impacted by the monetary policies of central banks, notably by adjustments to interest rates. The opportunity cost of holding gold is frequently reduced by lower interest rates, which might raise the metal's price and help Barrack's stock.
Regulations and environmental concerns abound in the mining industry. Modifications to tax laws, environmental restrictions, and mining regulations may impact Barrack Gold's operations and financial performance. For instance, more stringent environmental laws may raise the cost of compliance, which would affect business profits and stock value.
Moreover, Barrack's capacity to control its environmental effect and follow legal criteria is essential to preserving investor trust. Businesses that have a proven track record of upholding regulations and practicing environmental stewardship are frequently better equipped to handle these difficulties.
Regulations and environmental concerns abound in the mining industry. Modifications to tax laws, environmental restrictions, and mining regulations may impact Barrack Gold's operations and financial performance. For instance, more stringent environmental laws may raise the cost of compliance, which would affect business profits and stock value.
Moreover, Barrack's capacity to control its environmental effect and follow legal criteria is essential to preserving investor trust. Businesses that have a proven track record of upholding regulations and practicing environmental stewardship are frequently better equipped to handle these difficulties.
The way that investors and the market feel about Barrack Gold influences the company's stock price. News about the gold sector, economic projections, and general market movements can all have an impact on investor attitudes toward gold mining equities. While negative sentiment can have the opposite impact, positive sentiment has the potential to increase demand for Barrack's stock and raise its price.
Investment ratings and analyst recommendations also influence investor impression. Financial experts' positive evaluations and projections have the potential to raise investor confidence and purchasing activity, while their negative recommendations may increase selling pressure.
Barrack Gold is a multinational mining company that generates income in several different currencies. Changes in exchange rates may affect the organization's financial performance and stock price. Due to a stronger US currency, manufacturing gold in other currencies may become more expensive, which might lower profitability. On the other hand, a declining value of the US dollar might help Barrack by boosting earnings from overseas operations.
Investors should consider currency concerns when assessing Barrack Gold's stock price. The firm's capacity to control currency exposure and lessen the effects of exchange rate volatility can impact its financial performance and stock price.
The dynamics of gold supply and demand impact Barrack Gold's stock price as well. Gold prices and, by extension, Barrack's stock price are subject to fluctuations due to swings in investment demand and variations in the demand for gold from sectors such as electronics and jewelry.
Gold availability and pricing may be influenced by a number of supply-side variables, including new mining finds, the output levels of other gold miners, and technical developments in the mining industry. Barrack's stock price stability depends on its capacity to adjust to these changes and efficiently manage its output.
A wide range of intricately intertwined factors affect Barrack Gold's stock price, including changes in the price of gold, operational effectiveness, geopolitical and economic situations, company-specific advancements, environmental and regulatory concerns, market sentiment, currency risks, and supply and demand dynamics. Comprehending these factors facilitates investors in making well-informed choices and managing the fluctuations linked to gold mining company investments.
By monitoring these variables and evaluating how they can affect Barrack Gold's financial results, investors can learn a great deal about the company's stock price patterns and make more informed investing decisions. Like any investment, the key to effectively navigating the volatile world of gold mining stocks is staying educated and doing extensive research.
Junior mining companies play a pivotal role in the exploration and development of mineral resources, contributing to the growth and dynamism of the mining industry. These companies, often characterized by their smaller market capitalization and a focus on exploration, carry both unique opportunities and risks. In this article, we will delve into the operations of junior mining companies Canada, exploring the key factors that shape their endeavors and the considerations for investors navigating this dynamic sector.
At the heart of junior mining companies lies the pursuit of untapped mineral resources. Unlike their larger counterparts, juniors are primarily engaged in exploration activities, seeking to identify new deposits of precious metals, base metals, rare earth elements, and other commodities. Exploration involves geological surveys, sampling, and drilling to assess the potential economic viability of a site.
Capital Intensity: Exploration is a capital-intensive process, and Junior Mining Companies Canada often need help in securing the necessary funding. They may rely on a combination of equity financing, debt, and strategic partnerships to fund their exploration programs.
Market Volatility: Junior mining stocks are known for their inherent volatility. Share prices can experience significant fluctuations based on exploration results, commodity prices, and broader market conditions.
Regulatory Hurdles: Navigating regulatory frameworks, obtaining permits, and adhering to environmental and social standards are crucial aspects of a Junior Mining Companies Canada's operations. Regulatory compliance adds complexity and can impact project timelines.
Upon the discovery of a promising mineral deposit, Junior Mining Companies Canada transition from exploration to project development. This phase involves conducting feasibility studies to assess the economic viability of extracting and processing the mineral resources. Factors such as ore grade, metallurgy, infrastructure, and projected operating costs are meticulously analyzed.
Project Financing: Developing a mine requires substantial capital investment. Junior Mining Companies Canada must secure financing to construct the necessary infrastructure, purchase equipment, and cover operating expenses during the development phase.
Technical Challenges: Extracting minerals from the earth involves complex technical processes. Junior miners face challenges related to engineering, metallurgy, and the optimization of extraction methods.
Market Conditions: The economic viability of a mining project is heavily influenced by commodity prices. Junior mining companies must carefully assess market conditions and commodity trends to make informed decisions about project development.
Upon successful project development, junior mining companies move into the production phase. This stage involves extracting and processing minerals on a commercial scale. Operational efficiency, cost management, and adherence to safety and environmental standards become paramount.
Operational Costs: Managing operational costs is critical to the financial success of a mining operation. Fluctuations in energy prices, labor costs, and unforeseen technical challenges can impact the company's bottom line.
Market Fluctuations: The profitability of a mining operation is closely tied to commodity prices. Junior mining companies may implement hedging strategies or flexible production plans to navigate market volatility.
Junior mining companies often leverage technological advancements to enhance exploration and production processes. Innovations such as remote sensing, drone technology, and advanced geological modeling tools contribute to more efficient and cost-effective operations. Embracing these technologies can give junior miners a competitive edge in their exploration and extraction efforts.
Accurate resource estimation is crucial for the success of a mining project. Junior Mining Companies Canada engage in detailed geological studies to estimate the size and quality of the mineral deposit. Independent experts may validate these estimates, and companies must adhere to industry standards for reporting mineral reserves.
Junior mining companies operate in diverse social and environmental contexts. Successful projects require effective community engagement, addressing concerns, and contributing positively to local economies. Adhering to social responsibility standards not only ensures ethical practices but also mitigates potential operational risks stemming from community opposition or environmental issues.
Understanding the distinct phases of a mining project's lifecycle is essential for investors. From exploration to closure, each phase presents unique challenges and milestones. Junior mining companies must have a well-defined strategy for each stage, demonstrating their ability to navigate the complexities inherent in the full lifecycle of mining operations.
Junior Mining Companies Canada often employ various financing strategies to fund their operations. These may include private placements, streaming agreements, joint ventures, and strategic partnerships. Investors should assess a company's ability to secure financing, the terms of such arrangements, and the potential impact on shareholder value.
Securing access to markets for the mined commodities is crucial for a junior mining company's success. Offtake agreements, which involve pre-selling a portion of the production to buyers, provide revenue certainty and can aid in project financing. Investors should evaluate the terms of these agreements and assess the company's ability to market and sell its products competitively.
Junior mining companies operating in multiple jurisdictions may be exposed to currency risks. Fluctuations in exchange rates can impact project economics, especially if production costs are in one currency and revenues are generated in another. Robust risk management strategies, including currency hedging, are vital to mitigate these risks.
The scalability of a mining project is a key consideration for junior mining companies. Investors should assess whether a company's project has the potential for expansion and increased production over time. Scalable projects provide the opportunity for long-term growth and increased returns for investors.
Environmental permitting is a critical aspect of mining operations. Junior mining companies must navigate complex regulatory processes to obtain the necessary permits for exploration, development, and production. Compliance with environmental standards is not only a legal requirement but also crucial for maintaining a positive reputation.
The mining industry is inherently linked to global economic trends. Factors such as economic growth, inflation, and global demand for commodities influence market conditions. Investors should consider macroeconomic indicators when evaluating the potential success of junior mining companies, as these factors can impact commodity prices and project economics.
Analyzing the operations of junior mining companies Canada requires a nuanced understanding of the industry's unique challenges and opportunities. Investors considering involvement in this sector should carefully assess the geological potential, management expertise, and financial health of these companies. While the junior mining space carries inherent risks, successful exploration and development projects can yield significant returns, making it an intriguing arena for those willing to navigate the complexities of the mining industry.
I’ve been reading bits of articles lately about a coming shortage of cobalt. Now I don’t really know a whole lot about cobalt other than it’s mined so I decided to to do a bit of investigating. There are a few things that I found out about doing some quick research and one is that cobalt mining shouldn’t be protested about by enviromentalists. Another important issue that I’ve discovered is that the price of cobalt has been going up steady. In fact while most metals have been floundering for the past several years, cobalt has risen steady and for almost six months now the price has not seen any kind of decrease. Prices today are right around $60,000 USD per tonne and there is little sign that prices will retreat.
Pretty much the bulk of cobalt that is used in the world today comes from the Democratic Republic of Congo in Africa. They produce about 60,000 metric tons a year on average. This is followed by China with about 7700 MT and then Canada which produces about 7300 MT. For the longest time the world produced a sufficient amount of cobalt to keep the needs of all the industries that used it but in the last few years the demand for cobalt has increased exponentially.
Cobalt is known as a supper alloy and is used in manufacturing things like jet engines components, and other high wear moving parts. As it is added to different steels and alloys to allow for extra strengthing it is used in almost every industry possible. Aside from industrial uses cobalt is also used in the medical fields as there is a very important radioactive isotope that is used in medicine. It’s not too radioactive and doesn’t hurt the patient, but it can be used as a tracer element to find things like cancer. Almost everything made today that has a super alloy involved will have some percentage of cobalt.
So what has happened in the last year or so that has created such a drastic increase in the price of cobalt? The number one reason is the electric car. Cars like Tesla that use high grade lithium batteries also use a lot of cobalt. Infact there is more cobalt in a lithium battery than there is lithium and with all the millions of devices that are being bought up everyday, so goes the increase in good ole cobalt. Here’s where you can thank the ole tree huggers and greenies.
Now the big question is how do you as an individual profit from this? Unless your into buying and selling bulk loads of cobalt, the next best thing is to either find a cobalt miner or a cobalt junior explorer and juniors explorers are where it going to be for the next while. Finding the next big deposit to sell to some big miner. Of course once any commodity gets hot and in demand, so to does the amount of juniors who start to focus on that commodity and cobalt is no different. Some of the companies that are exploring for cobalt are Cruz Cobalt CUZ, Fortune Minerals FT, Cobalt Power CPO, and Clean Energy CLE. All of these players are on the hunt for cobalt.
Cruz Cobalt has nine cobalt projects located throughout North America, comprising four in Ontario, three in British Columbia, one in Idaho and one in Montana. Cruz’s four separate Ontario cobalt prospects are all located in the vicinity of the town of Cobalt, making Cruz one of the largest landholders in this emerging cobalt district.
Fortune Minerals is focused on developing the Nico cobalt-gold-bismuth-copper project in the NWT and a related refinery the company plans to construct in Saskatchewan.
Clean Commodities has the Juliet lithium project, located adjacent to Critical Element Corp.’s Rose lithium project in Quebec, Canada which of course is in a cobalt area
Cobalt Power has about 21,000 acres of properties. It’s main project is the Smith Cobalt project along the Ontario Quebec border. Also the company just started a second drilling campaign on september 13 0217 and will comprise a minimum of 2,000 metres 10 to 15 drill holes. Something to look forward too
Of course there are other companies that are out on the hunt for cobalt but hopefully this small group will give you a start for doing any kind of due diligence and also put some of these juniors on your watch list.
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Is the World Running Out of Gold?
How much gold would you have if you had all the gold that's ever been mined? Not much. With all the gold ever mined you'd be able to make a cube of solid gold with 60-foot sides. There just isn't that much gold in the world, and it's getting harder and harder to find it. In fact, our love of electronic / digital devices maybe part of the problem.
In a report from the Wall Street Journal, it was stated that the world is not far away from exhausting the world's gold supply if gold mining continues at the current pace. How could we be running out of gold? It's simple. As gold boomed in the 90s and 00s, the easy-to-access deposits were sapped of their supplies. Now, the gold being discovered is way deeper into
the Earth, which means that discovering it takes a lot more work before it can be extracted.The BBC stated, all the gold mined since the beginning of time has been recycled: A piece of gold mined by the Romans may have been melted down into a gold bar in the 1800s, say, and may have eventually made its way into a consumer product like a gold watch.
Those devices, computers and electronics that require only minute amounts of gold to function are changing that gold reuse pattern for the first time in history. Because so little gold is used in this technology, it is not cost effective to recycle it. So, while gold, like air, has remained a static resource on Earth, that's no longer true. Our gold resources will continue to deplete, one iPhone at a time, one tablet at a time.
Large mining companies are not in the exploraton business. They are producers and not explorers. Junior mining companies on the other hand are the boots on the ground out exploring ever nook and cranny on the planet looking for the next big find and finding that next junior to invest in to take advantage of this depletion scenario is not always so easy. Open-pit or underground gold mines can command high premium prices when bought out buy a senior or major mining company, but it's hard to find those buy out opportunities.
This year major gold producer Endeavor Gold bought out 100 % of the junior developer Avnil Resources for their gold mine in Mali for $122M, which was at a 48% premium, the reason Endeavor bought this junior was to further strengthen its high-quality project pipeline. Strengthening the pipeline is a real concern for all major gold producers because as they mine and extract gold from their existing gold mines they are constantly depleting their reserves of gold and need to replenish them for future growth, revenue and production.
When it comes to discovering new gold deposits, the low-hanging fruit has likely already been picked. Gone are the days when someone could stumble upon an exposed hunk of gold at the bottom of a riverbed, as James Marshall did in 1848, setting off the California Gold Rush. Every year, the pursuit of gold becomes increasingly more challenging not to mention more expensive requiring ever more sophisticated tools and technology, including 3D seismic imaging, direction drilling and airborne gravimetry.
Major gold producers are increasingly buying out junior gold miners that have a gold deposit of merit. Both Guyana Goldstrike and
Nexus Gold Corp. are on the verge of the the next big find. Guyana Goldstrike has it's 880,000 ounce Marudi Mountain project in Guyana and Nexus Gold has a drilling campain in Burkino Faso.Guyana Goldstrike's Marudi Gold project could be the next buy out target for a major or senior producer. In Guyana, Cambior which has the operating Omai Gold mine, there is also senior gold producer Guyana Goldfields with their Aurora mine. Guyana Goldfields has over $75M in cash and could be watching the development of Guyana Goldstrike's Marudi Gold project.
Nexus Gold's Bouboulou property borders Roxgold's property. Endeavor Mining is active in Burkina Faso and is watching drill results very close of any juniors in the area. Winter drilling returned 26.69 g/t gold over 4.85 metres (including 8.50 g/t gold over 0.62 metre, and 120.00 g/t gold over 1.03 metres). Hole NGL-17-DD-006 returned 4.00 g/t gold over 6.20 metres (including 20.50 g/t gold over 1.00 metre). NGL-17-DD-009 returned 2.61 g/t gold over 4.00 metres (including 5.92 g/t gold over 1.00 metre), and NGL-17-DD-003 returned 1.80 g/t gold over 5.10 metres (including 6.14 g/t gold over 1.10 metres).
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Gold Mining Alaska
Alaska. It's a vast state with few people and lots of wild remote wilderness. It's known as the last frontier. A land rich in resources of both oil and minerals both precious and base. Its an explorers and prospectors paradise where dreams are made and many even come true. And when it comes to gold, Alaska really is that pot at the end of the rainbow. Absolute fortunes have been made in the goldfields of Alaska and there are still many more fortunes to be found in Alaska.
Gold was first found in the Kenia River back in 1848 by Russian explorers. Mining never took off until around 1870 when gold was found around the area of Juneau. Soon after that discovery gold was found in both the Fairbanks area and of course there was the world famous Nome gold rush. Today Alaska has the second most amount of active mines in the USA, second only to Nevada. It is estimated that there is close to 200 active mining operations in the state. Most of these operations are smaller placer operations along with other seasonal hard rock shows. There are however some very large mines run by major mining companies. Some of these mines are massive with ore reserves that are almost mind boggling.
Greens Creek is one of the largest and lowest-cost primary silver mines in the world and is owned by Hecla Mining HL. Last year, Greens Creek produced 8.5 million ounces of silver at a cash cost per silver ounce of $3.91 and 60,566 ounces of gold. The mine holds current proven and probable silver reserves of 88.7 million ounces, 677,000 ounces of proven and probable gold reserves, as well as 218,400 tons of lead and 582,640 tons of zinc in proven and probable reserves.
Fort Knox owned by Kinross Gold K
is located in the Fairbanks mining district. This mine produces close to 400,000 ounces of gold annually. Proven and probalble reserves total around 2.4 million ounces gold. The mine and mill hammer out close to 40,000 tons of material per day.Pogo Mine owned by the Sumitomo Metal Mining and Sumitomo Corporation has been in operation for 10 years and has produced over 3 million ounces of gold. The mine boasts five known deposits: Liese Zone, North Zone, East Deep, South Pogo and 4021. Extensive exploration efforts are underway to identify additional ore reserves as the magnitude of these deposits is not clearly defined. Pogo is an underground mine with more than 90 miles of underground roads winding to depths more than 1,000 feet below the surface. The quartz veins of the deposit yield an average of 1/2 troy ounce of gold per ton of rock, which makes Pogo a high-grade gold mine.
Kensington Mine is an underground mine located on the Alaska panhandle and is owned by Coeur Mining CDE
. This mine is a smaller mine and has only been in operation since 2010. Production from the mine averages 125,000 ounces gold per year. Proven and probable reserves is about 560,000 ounces gold but ongoing work may add to this reserve.Red Dog Mine owned by Teck TCK is not a gold mine but it is world's largest producer of zinc and has the world's largest zinc reserves. The mine accounts for 10% of the world's zinc production and accounted for 55% of the mineral value produced in Alaska in 2008. The mine produces 515,200 metric tons of zinc, 122,600 metric tons of lead, and 283 metric tons (9,100,000 ozt) of silver, for a total metal value of over one billion dollars in 2008 alone.
How To Invest & Play Alaska Junior Miners.
If you don't want to invest or play the large cap stocks that are in Alaska, there are some juniors that are well worth putting on a watch list. Today there is even more on going work in the exploration and prospecting field in all areas of Alaska such as the Livengood Project in the Fairbanks region owned by International Tower Hill Mines ITH.
Further north in the state, the Upper Kobuk Mineral Projects run by Nova Copper NCQ is showing off some great finds on the copper front where one hole delivered 178 meters averaging 3.89% copper in a mineral resource with an approximate 6% copper-equivalent grade, and is one the largest and highest-grade known VMS deposit of its kind in the world.
On the Aleutian Islands of Alaska, Redstar Gold RGC is exploring what Dr. Jeffrey Hedenquist, who is recognized as one of the world's most renowned experts on epithermal deposits describes Redstar's Unga property as district scale. The company has a summer program on at this time as well as site tours by various major mining companies.
Not far from Haines Alaska, Constantine Metal Resources CEM has a joint venture with Dowa Metals & Mining Co., Ltd. of Japan who has the option to earn a 49% interest in the companies Palmer VMS project. Dowa metals will make aggregate expenditures of US$22,000,000 over a four year period. This project is already a NI 43-101 resource. The 2016 exploration drill program will test several targets located within a 3 km radius of the RW and South Wall Resource an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver.
About 60 miles from Fairbanks you'll find Free Gold Ventures FVL where they are working on their Golden Summit property and newly aquired Shorty Creek copper gold, and copper moly porphyry project. Highlights include 220 feet grading 1.22 g/t Au starting from surface.
There are some very large projects awaiting approvals from various state organizations and departments. Northern Dynasty Metals NDM is one of those companies wanting to develope it's Pebble Project which is a copper, gold, molybdenum and silver deposit located in the Bristol Bay area of Alaska. This deposit is one of the greatest stores of mineral wealth ever discovered. The current resource estimate includes 6.44 billion tonnes in the measured and indicated categories containing 57 billion lb copper, 70 million oz gold, 3.4 billion lb molybdenum and 344 million oz silver; and 4.46 billion tonnes in the inferred category, containing 24.5 billion lb copper, 37 million oz gold, 2.2 billion lb molybdenum and 170 million oz silver. Quantities of palladium and rhenium also occur in the deposit.
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What's With All The Negative Gold & Mining Headlines
Quite a few years ago I started to notice that most of the gold news headlines seemd to be anti-gold. It doesn't seem to matter which news site you go to there is always a negative / sarcatic / skewed type of headline regarding gold. Some of the authors of the articles seem to be very anti-gold also. Today I noticed an article on the net that seems really skewed. The headline reads: Consolidation Would Be 'Healthy' For Gold, Provide 'More Attractive' Prices.
When you first look at that headline the first thing I ask myself is "Where the hell has this author been for the past 5 years?" Here, lets pull up a chart for the past 5 or so years and see if there was any time during those years that someone could have bought gold at a more ATTRACTIVE price.
Now when you look at that chart do you see at any time during the last 3 years that the gold price was not ATTRACTIVE? I do, I see lots of opportunity to buy gold at so called ATTRACTIVE prices. What this article and headline tells me is that there are some who are anti gold and try to bash gold steady in the news. Whether they be shorts or have some other agenda they now see that they maybe missed the boat on getting into gold. It was suppose to stay down, they thought but instead the price is climbing. I could have bought back last year when the price was $1090 but I didn't. They think for some reason that if they scare the masses into selling positions they can either cover a short position of get themselves into a long postion for a few dollars cheaper. Look, you missed the boat. You missed the bottom. Get over it. Isn't there something more serious in life to write about than gold dropping a few bucks.
The other part of the story is the "HEALTHY" part. I wonder what this author would say if home prices fell 10 - 20 percent. I would write an article saying that a falling housing market is good. Give others a chance to buy into the housing market and even though it puts a whole pile of people underwater with their mortages. Or how about, your dollars in your bank account just lost 30% of their value. I would say thats good. Give's others a chance to buy more dollars at your expense and allows you to spend more for your basics. Or maybe if Google or Facebook lost a whack of value. Gives other a chance to buy in.
Face it, everyone on this planet has had a chance to buy gold and silver for that matter for ATTRACTIVE and cheap prices during the past 3-4 years. It's not like no one knew because there has been tons of negative news in your face almost everyday regarding gold and silver. If you missed any of that negative news or news headlines you must have been living somewhere other than earth. For those who are not from earth and have not read any news headlines, I took the liberty and started a page years ago copying a bunch of news headlines on gold and have them on a page here.
Here's the point I am trying to make. I'm a gold bug and I like gold and I like mining. Minerals and resources have feed my family and as the webmaster of this website and this website being mining and metals related, it is in my best interest to be positive about gold and the future price of gold. It is also in my best interest to be positive for all the metals and the miners who mine the metals I use everyday in my life. The precious metals that go into my laptop and smart phone, I owe that to a miner. The wiring in my house, the car I drive, the truck that bring the groceries to the store, I owe to the miners and drillers.
So if you want to be negative and if you think negative sells, go ahead and keep on doing what your doing. All you negative right wing type bashing is not going to change the long term picture because the picture all us gold bugs see from now on in is just nothing but blue skies, sun shine, rainbows and lollipops. And we'll see all you negative, sad and gloomy authors at $3,000 gold and beyond - 🙂
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The Suppression Of Gold Prices
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Gold Exploration In Saskatchewan When people think of Saskatchewan Canada, they tend to think of just flat land, grain farms and pasture land.(Like the image below). And on the surface that is what you see. But it's what below that surface that surprises a lot of people.
Saskatchewan has a lot of mining activity going back well over 100 years. The province is a world leading producer in uranium and potash and other resources including gold. In fact in 2019 there was 112,137 ounces that were produced at the Seabee gold mine, the fourth-straight record year for production in Saskatchewan.
While potash deposits are found in the lower regions of the province, the bulk of the uranium is mined in the northern regions of the province. The gold that is found and mined is also found in the northern part of the province in the Precambrian Shield, which contains geology similar to the gold mining regions of Ontario and Quebec. It is in this region just south of the NWT border that Fortune Bay TSX-V:FOR is exploring. Fortune Bay is actually working around the same area called the Goldfields Project. This project hosts the old Box Deposit which was a mine owned by Cominco back in the 1930's and has over 1 Moz of open-pit gold reserves (historical) at 1.4 g/t. Another deposit close by called the Athona is 0.29 Moz @ 1.3 g/t Au. Combined between both the Box and Athona deposits there is measured and indicated resource of 1.03 Million oz @ 1.5 g/t Au (20.9 Mt).
Aside from the known deposits there is also opportunities to explore areas close by. Some of the results from areas near by include the Frontier Lake historical grades that range up to 8.16 g/t and 28.18 g/t (narrow vein-style in historical adit)
At an area known as Golden Pond near surface drill grades include 5.07 g/t over 15 meter and 16.53 g/t over 13.6 meter. and in the Triangle area returned grab sample result of 177.5 g/t Au.Fortune Bay also has a project in Mexico that it owns 100%. This project is known as the Ixhuatan Project, located in Chiapas State, Mexico, is an advanced gold project with exploration and development upside. The project consists of the 4,176 hectare Rio Negro concession which is valid until May 10, 2051 and is located immediately southwest of the Santa Fe mine and is about 120 kilometres south of Villahermosa, Tabasco State.
This property has a Measured and indicated mineral resources of 1.04 million ounces of gold (17.6 million tonnes at 1.8 g/t Au), and 4.4 million ounces of silver (17.6 million tonnes at 7.8 g/t Ag). To date, over 89,000 meters of drilling has been completed in 342 drill holes by Linear Gold Corp. (2004 to 2007) and Kinross Gold Corp. (2007-2009).
Fortune Bay has a small float with only 38 million share fully diluted. Management and board hold approx. 18% of the stock.
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Additional Disclaimer: The author of this article does not own any shares in this company at the time of this writing.
The Patience Of Gold Bugs
Gold and silver have been quite active these past few months with gold hitting prices around $1800 USD. With the pandemic, the money printing, talk of recession/depression etc. there has been a renewed optimism in the precious metals and we are now seeing the results in share prices of the mining companies, especially the juniors that have good quality projects on the go.
The saying, "patience is a virtue" comes from the poem called Piers Plowman, created sometime between 1360 - 1387. The original author of the quote is William Langland. For all of us old gold bugs who have been long on mining stocks and metals since the 2011 highs we know and understand patience and now these last few months are kind of like glory days, whereas we are finally being rewarded for our patience.
As you can see from the chart above the GDXJ - junior miners index is now at YTD weekly highs for this year and believe it or not, we've got some analysts out there who are saying these mining stocks are topping out. Taking a look back 10 years and you can see this market has another 200-300% to run before it gets back to it's old 2011 high and besides, who says it can't break out past that old high as you can see by the chart below that goes back to 2010.
The junior market is just getting noticed in reality. The market is starting to see interest from various funds and investment houses as well as mergers and buyouts taking place. Major miners with lower cost gold production are seeing better cash flow and are ready to to add more reserves to their holdings and are on the hunt for those juniors with good numbers in the ground. Going by the above chart, the junior mining market is just getting started the way I see it. 2020 and beyond should be good years for all us old gold bugs. Yes .... patience is a virtue! There's really nowhere to go from here, but up.
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Real News About Fake Gold.
Seems we live in a totally fake world now. Ever since Trump's tag line, "fake news," everything is turning up fake. I have always known about fake statistics, fake information, fake people and yes even fake bullion, but when a story about fake gold came out about a one ounce ingot that supposedly came from the Royal Canadian Mint as being fake, that was enough to raise an eyebrow.
Turns out that a jeweler in Toronto bought a one ounce gold wafer from the Royal Bank in Toronto that was supposedly purchased from the Royal Canadian Mint. The jeweler takes the one ounce wafer, cuts open the plastic packaging that the wafer is sealed in and proceeds to run the wafer through a rolling mill. Problem is the wafer won't roll out. Because gold is soft an malliable it rolls out very nice. I know this for a fact because my wife is a silversmith and she has a rolling mill in her studio that she uses and both gold and silver will roll out and flatten with no problems. However, this guy was having having problems as his gold would not roll so becoming curious he decides to bend it and at that point it snaps. After seeing a so called gold wafer snap, he knew that what he had was not gold but just to be sure he does and acid test on the so called gold wafer only to find out that indeed it was fake gold.
Now of course the jeweler takes that wafer back to where he purchaed and of course it the usual response you would get back from bank where as tehy would not take the so called bullion back. So the jeweler contact the nation news agency, CBC and only after they contact the bank about the situation does the bank refund the jeweler his money. Of course the bank contact the Royal Canadian Mint who examines the wafer and says the wafer is not from the mint even though bar was stamped with the Royal Canadian Mint's insignia, and the packaging it came in also had the mint's name.
So where did the fake gold wafer come from? Most likely overseas. Produced with tungsten and a thin coating of gold it was produced and sold through various buyers along the way until it appears in a bank vault. And this isn't an isolated incident. There are always stories about fake gold bars and coins being found. In this case the person who bought the gold was going to use the metal for jewellry and was not interested instoring it for safe keeping. This is what most gold is bought for. Safe keeping as an investment is a great idea but if the so called bullion you paid top dollar for is junk metal it is no longer an investment.
The real problem though is just how many other fake wafers and bars are out there and the owners don't even know. If there is one there will be more. You can count on that and that's the real sad part in this case. This all boils down to the fact of knowing what you are buying. Make sure you get certificates with your bullion and if you get bullion bars of silver, make sure they have stamped serial numbers along with records from the bank or wherever you purchased. Aside from that you can always do what a lot of the reader of junior miners here do and that is follow my motto, "Don't buy gold, buy a gold mine" instead. Having your own small mining claim where you can go out and sluice a bit of gold even during a summer break is a great way to get out in the fresh air, spend time with family or buddies and get some REAL gold that you know is not FAKE. Junior miners has listings of gold mining claims both hard rock and placer in locations all around the world and in prices that fit everyones budget.
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PS: Here is a link to the orginal story.
A Junior In The Red Lake Gold Camp
With gold prices climbing to new record highs in Canadian dollars, we are starting to see a lot more interest in exploration in Canada and especially in Ontario. After investors have watched how Great Bear Resources has gone from around 50 cents a couple years ago to 10 dollars today, investors are looking for the next junior in the area to climb on and if the junior has a depressed stock price, all the better. I can say personally that I had shares in Great Bear back when it was 50 cents. However I didn't hold onto those shares as I sold out somewhere under a dollar. They say hind sight is 20/20. If only I knew back then what I know now.
The last year or so I've focused most of my investing attention towards the Golden Triangle in BC as it's a bit closer to home and is a lot more familiar and in doing so I wasn't really aware of what was going on elsewhere in the country. Then a few days back I got an email from a gentleman who had some hard rock properties in the Red Lake area he was wanting to option and after posting those properties in our classified ads on the website it got me thinking about this area again and maybe try to find a junior or two to put on a watch list and follow along. There are actually quite a few juniors in this area and after a bit of searching I came across a junior that has multiple properties in the area along with a property that was in the close vicinity of Great Bear's Dixie project. The junior miner I came across is Falcon Gold. TSX-V: FG and we'll take a quick look at it.
As I mentioned Falcon Gold has multiple properties in Ontario as you can see by the image below. There is the Central Canada Gold & Polymetalic Project which covers more than 10 km of highly prospective Quetico Fault Zone and has a history of gold production. The Wabunk Bay Copper and Nickel is located within the Birch-Uchi-Confederation Lakes greenstone belt. This is the same mineral belt that host the Dixie deposit that Great Bear is working.
With the two additional properties, one property, the Burton Gold Property is optioned out to IamGold and the last property is the Bruce & Camping Lake property. This property is about 20 KM south of the Dixie property of Great Bear.
The company just issued news at the time of this writing. In the news release the company stated that they have completed three drill holes totalling 468 metres along the Central Canada mineralized zone. A summary of Falcon's examination is:
- CC20-01 intersected the gold-bearing zone from 33.46 to 79.83 metres (46.39 m width), which was designed to intersect the zone 20 metres west along strike of the historic producing shaft at the 100-foot (30 metres) production level.
- CC20-02 intersected the gold-bearing zone an additional 70 metres west along strike of the shaft from 26.9 to 62.23 metres (35.33 m width). Falcon's geologist identified several sections of greater than 2 per cent pyrite, arsenopyrite and lead telluride mineralization. This zone includes a 3.91-metre interval (31.61 to 35.52 m depth), which hosts significant visible gold mineralization associated with arsenopyrite and late-stage fractures within the felsic unit.
- CC20-03 intersected the gold-bearing zone 155 metres west along strike of the shaft from 26.8 to 59.83 metres (32.98 m width) and exhibits strong chlorite, fuchsite and ankerite alteration along with greater-than-2-per-cent arsenopyrite mineralization.
The company is currently preparing an additional six drill pads along strike of the mineralized zone to further test the extents of mineralization and that a total of 344 samples have been collected for gold assay from the drill core. Earlier in the week the company also issued news that they had acquired two additional patented claims blocks that lie along strike of Falcon's Central Canada claims. These claims cover 8,400 metres of strike length of mineralized magnetite-sulphide lenses varying from less than 10 to greater than 40 metres in width.
With an ongoing drilling program investors can expect a good amount of news releases in regards to assays over the next while. The company seems to have a lot of news going out lately keeping shareholders updated as to what the company is doing and that is a very good sign. I also see that the company is advertising on Stockhouse so they are getting the word out to potential investors. Being updated on regular basis is something investors look for in a company.
Falcon Gold has 60 million shares O/S and about 30 million warrants. Insiders own quite a bit of the stock. The CEO owns 18% of the stock alone and a quick check on Insider shows that insiders have been buying stock in the open market on a regular basis. It's not often you'll see management buying their own stock in the open market and that is something I also check on. That to me is always a good sign.
So if you're looking for junior in the red hot Red Lake area, this just might be a junior that could interest. If you are not interested in the stock remember there are some claim blocks for option in this area as well. You can view those by clicking this link. On an added note, I do own shares of Falcon Gold at this time but I am not in any way compensated for this article.
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Doubleview Gold Corp. Shareholder Writeup The article posted below was written and sent to me from a reader of the website. The writer of the article is a shareholder of Doubleview Gold and wishes to share his views on the company and it's projects, namely the Hat project in the Golden Triangle area of BC.
As shareholders of Doubleview Gold Corp we would like to share some info about a company
that we feel is a hidden gem and hasn't been discovered by the general market yet. Doubleview
Gold Corp is a Canadian resource exploration and development company located in Vancouver
British Columbia. It has 3 properties which are all located in BC. BC is a safe mining jurisdiction
and one that is in demand by Major Mining companies looking to replenish their depleting assets
(last year Rio Tinto announced it is looking for porphyry deposits in BC).Insider ownership.
CEO/President (Farshad Shirvani) owns over 23 million shares(he said his spouse is the 2nd largest
shareholder and the CEO has publicly said his close associates own approx 30% of the shares).
The CEO has remortgaged his house multiple times (most recent one was for $500,000) to fund
the company. He truly believes in the company, has a lot of skin in the game and is extremely
dedicated to the success of this company. We don't think you will find a more dedicated junior
explorer CEO with more dedication and cares as much about the success of his company.The new recently added director (Hugh Maddin) bought into the last private placement for
$330,000 and it was priced at approx. 50% over the market price during the time period it was
announced. He bought into it before becoming a director and since mid April he's been slowly
accumulating on the open market.Although they have 3 properties, lets just focus on their flagship asset called the HAT Gold Copper
property. They've drilled 34 holes so far into this green field project (it had never been drilled before
Doubleview acquired it).For those that like to do math and do thorough due diligence- current drilled dimensions of the
Lisle Zone according to the company is 650m x 920m x depth (unknown yet as it's open at depth
and there are 2 anomalies that go beyond 1.25km). Using 400m which is ULTRA conservative the
tonnage is calculated to be approx 600 million tones (used a specific gravity of 3.0). Using an
excel spreadsheet the weighted average grade was calculated for all holes drilled. When
comparing Doubleview's current drilled tonnage and weighted average grade against some of
BC's porphyry deposits currently being mined (Gibralter, Mt Milligan, Red Chris, Copper
Mountain, Highland Valley, etc) Doubleview currently has more tonnage and better average
grades than some deposits in operation! Keep in mind that this is comparing fully defined
deposits which include their best grades and Doubleview has only drilled a small fraction of the
foot print and hasn't even explored the remainder of the property yet! What is extremely
promising is their 1st drill campaign with the deep IP in hand (late 2019) they drilled their
strongest mineralization so we're excited about the next drill campaign.Looking at the deep IP footprint (below) look at what the drilled Lisle Zone of 650m x 920m
represents (it's labelled on the IP pic below) on this enormous foot print (look at the dimensions
of the IP foot print 3.7km x 2.7km x depth of over 1.25km in 2 locations). The validity of an IP
always needs to be confirmed to ensure it's valid and Doubleview has tested that it's valid so this
should all be mineralized. If Doubleview has more tonnage so far and higher grades that some
deposits currently being mined then this indicates the likely hood the deposit will be wanted by
Major mining companies. As they continue to drill the tonnage will increase thus the amount of
gold, copper, silver, cobalt and palladium will increase. They have 2 bodies of water immediate
by the property (a stream that fills them) and it's not located in a rugged place so these should
not be show stoppers in building an open pit (unfortunately there are great deposits that will
never get mined because they're in bad locations and don't have the required necessities to
operate). Also note that prior to Hudbay Minerals signing a joint venture agreement with
Doubleview they would have done extensive due diligence before committing time and money
to the project.Major mining companies are on the hunt for large porphyry deposits and they need to replenish
their depleting assets. This IP foot print is said to be possibly the biggest in North America! Major
mining companies look for large scale projects that have very long mine life to make it worth
their while. Unfortunately for these Majors there are not many projects that fit the large
scale/long mine life criteria and luckily for Doubleview they have something that has one of the
largest IP footprints in North America so you can bet they're watching closely how this story unfolds. At what point will a Major make a move is anyone's guess but with every hole drilled
we think it's getting closer and closer.What is also important to note is the Deep IP study which was done by Hudbay Minerals was only
for the main focus area of the property (Lisle Zone and its surrounds). Following the deep IP,
word is they wanted to do the area north of the deep IP surveyed area because they suspected
they would find more there too. The footprint they discovered is possibly the biggest in North
America so add the fact there might be more mineralization is mind boggling! If you look at the
IP foot print the east and west show that there is more of it as it due to it being cut off and not
included in the expensive area survey (it is said that this cost Hudbay approx. $1.2 million to do).If you're asking about Hudbay and the reason it no longer has a joint venture on the property
with such scale and potential it has nothing to do with them not being impressed and walking
away. It was assumed that they unwilling had to cater to something else because they really
were impressed and excited about the project and was setting it up for years to come (upgraded
the camp, worked closely with locale First Nation tribe, was looking to hire people, etc). Their
prized deposit in Arizona is going into a big legal battle and all capital and efforts are focused on
this: See link azcentral.comRecent assays released 12 May 2020:
Doubleview Drills Strongest Mineralization Discovered so far at Hat Property including 258
meters of 0.31 g/t Gold and 0.47% Copper (1% Cu Eq) in an interval of 450 meters of 0.23 g/t
Gold and 0.35% Copper (0.7% Cu Eq). See News ReleaseIf anyone is interested in Doubleview Gold there is an excellent telegram group for shareholders
and we have the CEO in the group. He readily answers shareholder's questions if he can talk
about it so one doesn't have to all individually call the company to ask questions and we all
benefit from the answered questions others ask if he can legally answer it. If interested in joining
the group please let your point of contact know and we will give you the link to the private
chat. We share due diligence on Doubleview and discuss things related to it. We also have a ex
Freeport geologist/geotechnical engineer that worked at the Grasberg Mine that posts in the
group. He is a shareholder and has provided us with his comments about the potential of the
project and about IP foot print. He is extremely excited about the potential of the property and
its future. Grassberg is the largest gold mine and 2nd largest copper mine in the world.The company has stated they want to resume drilling ASAP. After the last assays on 12 May they
received a lot of interest from Major mining companies. The float (what's most likely going to be traded) is relatively low and most of the shares are in
strong hands that are all believers of a buyout so they're holding for it to happen. The CEO holds
almost 24 million shares, our telegram group hold collectively approx 15 million shares (not
including the CEO), Latimer (see below) has been accumulating since summer of 2017 and is
constantly on the bid and has been almost buying daily owns approx 10.7 million shares and the
CEO's spouse is the 2nd biggest shareholder (no idea how many shares). The CEO said that with
just a few phone calls he can account for over 50% of the shares so if a low ball offer occurs it can
easily be rejected if the major shareholders that are close to the CEO vote against the offer.To compare Doubleview's tonnage (approx. 600 million tons based on the drilled Lisle dimension
which is just a small fraction of the foot print and using just 400m depth which is way too
conservative but it's better to underestimate than overestimate).Based on the current tonnage (drilled Lisle Zone), the grades being similar to other BC porphyry
deposits in operation, the foot print being one of the biggest in North America (3.7 km x 2.7 km),
the potential of the property (the IP footprint was only done on a part of the property and there
could be more mineralization elsewhere), the low tradable float, the company's goal of
aggressively drilling it to take it to a buyout, the location (BC) and the increased interest by Major
mining companies we feel this is an extremely undervalued company (stock price as of 20 May is
.11) that holds multiple dollars of upside if it gets bought out. Please do your own due diligence.
Disclosure- This information was not sponsored in any way by Doubleview Gold Corp. This report
contains opinions of shareholders and as shareholders they're biased. This was created
anonymously by a shareholder to spread the untold story of Doubleview Gold Corp to their
investment contacts and was specifically made for the current shareholders in the Doubleview
Telegram chat group (created by shareholders) to use to send to their contacts to get them
acquainted with the company because they feel it's a great investment opportunity. As
shareholders we are biased and have done extensive due diligence. We believe Doubleview is a rare opportunity right now and the timing of this couldn't be better due to the resource bull
market!If interested please take a look at Doubleview and do your due diligence. If not interested in it
right now it's recommended you keep it on your watch list in case you change you mind after the
right news. Also, if interested in the Doubleview private telegram group just ask your point of
contact for the link. This is not investment advice and although a lot of facts were taken from
reliable sources nobody is responsible for any errors, typos or mistakes in this article. Invest at
your own risk and there are no guarantees that Doubleview Gold Corp will succeed. Please
consult investment advice through a certified financial planner.Additional Information
Tahltan Industry Review / Hudbay Minerals Information Here
Nice write up about the last assays in Resource World Magazine.
Link to the company presentation: Latest Presentation
Drill results: View Drill Results Here
Lawrence Roulston research report on Doubleview from 2017 (20 page report) Report Link Here
Link to join the Doubleview Gold shareholder Telegram chat group (CEO is part of the group) Joinchat
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How Does Donald Trump View Mining
It's a good thing elections only come around every four years. On one side of the equation you have people running for office who are out on a campaign trail telling every would be voter what they want to hear. On the other side of the spectrum are those who are the critics telling you why you should or should not vote for someone. Everyone has some kind of special interest and reasoning to vote for a particular candidate.
For those who are lazy and on welfare and if they can get off the couch, they will most likley vote for any socialist type of leader who will see to it that the checks keep rolling in and there is good social programs and free stuff in store.
Then there are those who are the NIMBY's who know what's best for everyone else will try to get you to vote for the greenie types of no progress and no development, anti-this and anti-that, unless it is in someone elses back yard of course. Then there are the rest of us. Those who understand life is not about free rides and handouts. Important things like the economy, jobs, security and some sort of prosperity and are not afraid to go and work for it.
So when we look at what's happening in the USA and we see Donald Trump out front and center we need to ask ourselves how would he as a president be in the eyes of the miners. What's Donalds stance on mining? Would he be an anti-mining type or pro-mining. After all nothing gets people more riled up than mining it seems even though they all love the hi tech benefits mining has to offer. So how would Donald Trump look at the mining industry?
Well I have been reading some interesting articles that would make me think that this is a pro mining guy. You see it his grand father Fredrick came over to America from Germany and then eventually made his way to the Klondike during the gold rush. Although there is nothing that states that he was a miner it is well known that Fredrick Trump became a hotelier and had a hotel in Bennet and also in Whitehorse Yukon. Some say his hotels were places of ill repute but there is little documentation of that. There is however articles that state that his hotels were some of the finest in the territory.
In Gwenda Blair's 2001 book The Trumps: Three Generations Of Builders And A Presidential Candidate, she described how Frederick Trump opened a series of restaurants and hotels during the Klondike Gold Rush in the 1890s. One of those hotels, The Arctic Restaurant and Hotel, was described as decadent and far superior to other restaurants in the area:
"In the larder was salmon and an extraordinary variety of meats, including duck, ptarmigan, grouse, goose, and swan, as well as caribou, moose, goat, sheep, rabbit, and squirrel. Incredibly, the New Arctic served fresh fruit: red currants, raspberries, strawberries, blueberries, blackberries, even cranberries. A small oasis of luxury, the Arctic's menu was a vast improvement over what the two restaurateurs had been able to offer on the trail."
Doesn't sound like the hotels of whiskey runners and ladies of the night to me.Fredrick Trump sold his hotels and went back to Seattle and started back in the hotel business there. It was said that he left the Yukon with around $500,000. That is a lot of money today and it was a heck of alot more back then.
So with all this information I would tend to think Donald Trump would always remember his roots. Big family business's seem to always remember how they got started and it was the Klondike Gold Rush that got the Trump hotel and resort empire started. Knowing this I would tend to think Donald Trump would be a pro mining guy too.
Speaking for myself as a person who lives in the Yukon area today, I know that the Trump's expertise in hotels could very well be used once again in this area, as the Yukon, especially Whitehorse, could sure use a NICE NEW HOTEL or two and they wouldn't even have to be world class. Just NEW!
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When No One will Lend You Money
Today we live in a world of easy credit. In fact the entire whole monetary system runs on credit. Easy money. Zero percent borrowing, (almost). You can get money for almost anything and you don't even need good credit either it seems. Borrow money for a million dollar shack, maybe a big fancy boat or how about new fifth wheel? Want to take a vacation? No problem, stick the cost on a credit card or line of credit. But if you want to start a business, expand a business or any other kind of worthy business venture, you might find out that there is no easy money for that.
You see it's all about so called risk. Banks and other financial institutions don't like risk. For some strange reason most lenders will not really consider loaning money for any kind of new business start up. I know this very well here in Canada especially if you want to go into mining. Even with close to 50% down in cash the banks would not loan out any kind of money. I could however borrow almost unlimited funds to buy a 5th wheel trailer and a new truck to tow it but I could not get the money needed for equipment to put a small mine into production. To the banks it was deemed to risky.
This is one of the reasons why small venture companies such as small junior mining companies go in search of a broker who will underwrite a loan for them and take their shares out into the public market. By selling stock in their company they can raise cash for expenses such a drilling and other exploration costs. This kind of financing has worked well for many years and there has been a lot of companies today that would not exist if it were not for the brokers and the public markets.
Today though times have changed and even brokers don't want to talk to you unless you're maybe trying to raise tens of millions of dollars. So what does a person do whether they want to start a small mining operation, expand an existing business or develop the next new gadget? Well depending on how much money you really need and if you can sell your story, the newest avenue to raising money is a new method called "Crowd Funding". It's new, it's hip, it's cool and it works.
So what is crowd funding? Crowdfunding is the practice of funding a project or venture by raising money from a large number of people. Crowdfunding is a form of crowdsourcing and of alternative way to finance your project. In 2015, it was estimated worldwide that over US$34 billion was raised this way. The first noteworthy instance of crowdfunding was in the music industry was in 1997, when fans underwrote an entire U.S. tour for the British rock band Marillion, raising US$60,000 in donations by means of a fan-based Internet campaign.
Modern crowdfunding generally operates with three separate participants:
- (1) The project inventor/ initiator/owner who proposes the idea and/or project to be funded
- (2) Individuals or groups who finance the idea/project
- (3) A moderating organization ( called a crowd funding company / platform) that brings all the parties together.
There are two primary types of crowdfunding:
- (1) Rewards crowdfunding: entrepreneurs presell a product or service to launch a business concept without incurring debt or sacrificing equity/shares.
- (2) Equity crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged
So you could say that crowdfunding is kind of like going to the public markets except there is really is no middle man taking his slice of the action. There is you, with your project/business and you need money. You sign up with a Crowdfunder on a online platform and post your business concept / plan telling everyone what you are going to do, how much money you need and if they like what they hear they give you money. You tell the public that you need "X" amount of dollars in "X" amount of time. If the so called "crowd" like what they hear and buys into your project, you get the cash and set off to do your business. All the money that the "crowd" funds you goes into an escrow account and is held there until the funding is complete. Of course you will need to pay them back, after all they the "crowd" are your financial backers. So you can either give them shares in your venture, or maybe give them a dividend or just repay them with a set percentage on an agreed time frame.
A quick google search will show that there are a lot of different crowd funding platforms on the internet. Some sites are set up for charity type works like raising money for sick kids or building play grounds, others are geared more for techy type stuff like software development and such. There is almost some kind of crowdfunding platform for almost everyone and every idea now. We know of a crowdfunding site that goes beyond the ordinary. This site is registered with the SEC and FINRA in the USA. This platform at this time only accepts USA registered applicant with USA registered companies doing business in the USA.
The platform also does due diligence on the applicant and also requires that all entrepreneurs who wish to raise funds register with them. There are fees that need to be made by the applicant also but all these requirements give investors an extra bit of piece of mind and confidence knowing that the applicant already has a business or at least the skills to run a business.
Another reason we like this platform is because let's say for for example, you have some mining property that is free and clear and you have spent considerable time and energy working on the said property/mine. Now let's say you have some data that shows good grades but you need cash to develope the property. With this platform you have that the chance at raising the amount of money you need to get that drill turning. You sign up and then explain that you need X amount of funds, what you need the funds for and how you are going to pay the lenders/crowd back and see what happens. All the funds that are contributed are locked in an escrow account. Once you reach your funding goal, you're off to the races. As an investor in the mine I have some degree of comfort knowing that there is already some mineable minerals there because data and other facts were presented by the applicant.
If you are a USA registered for profit business and are seeking an alternative method of raising dollars from a "crowdfunding platform" to create / market your new idea, expand, or operate your business without the use of a brokerage firm or banker, I can introduce you to a quality Crowdfunding platform.
Please send Junior Miners an email and we will have a Crowdfunding representative contact you to start the process with the Crowdfunder.
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Central Banks Print Money To Buy Gold Mining Shares
Quite a bit of chatter on a lot of different news and gold sites about how two Central banks, the Norwegian Central bank and the Swiss Central bank just printed billions of dollars and then turned around and bought gold mining shares right away. In a world where zero percent interest rates are becoming the norm, there is little else that can offer a decent return on your investment. Something us gold bugs have known all along I guess.
The Swiss Central bank went on to disclose which stocks they bought. You can see in the small chart below which ones they bought positions in. Of course since buying the stocks in these 20 or so mining companies, the companies have seen their share price rise between 400% and 600% and there is no doubt that a lot of investors kind of like this buying. Nothing wrong with seeing your favorite gold mining stock go up by 500% or so. Problem could be though that at some time in the future that same bank that bought say 20 million bucks of a certain stock decides it's time to get out and just decides to dump. That would be bring in a bunch of shorters and even naked shorters so you see there is a bit of a shady side to all this. There is also some conspiracy theories about just that kind of scenario as a way to flush out gold buffs who are long on gold stocks. After all once the selling starts it will have a ripple effect and take down a lot of the other mining stocks also and not just gold stocks.
So why would a bank which prints fiat currency take that money and buy gold ming shares? Well there is plenty of info out there already about how some of the other world central banks are buying stocks. Its been know for quite some time that Japan's Central bank is one of the largest holders of the top ten stocks in Japan. As mentioned earlier, when you end up having zero percent interest rates or even negative interest rates, you have to figure out how to make your money work for you and right now it seems that the stock market is the best place. Problem is that the stock market will end up un a bubble and one day could very easily collapse.
Don't you wish your favorite gold mining stocks was just like a Facebook or something? Talked about everyday on financial TV. Selling at 350 X earnings? Well all I can say is, in the meantime be cautious and look out for those under valued gems that still do exist.
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How To Profit On Cobalt I've been reading bits of articles lately about a coming shortage of cobalt. Now I don't really know a whole lot about cobalt other than it's mined so I decided to to do a bit of investigating. There are a few things that I found out about doing some quick research and one is that cobalt mining shouldn't be protested about by enviromentalists. Another important issue that I've discovered is that the price of cobalt has been going up steady. In fact while most metals have been floundering for the past several years, cobalt has risen steady and for almost six months now the price has not seen any kind of decrease. Prices today are right around $60,000 USD per tonne and there is little sign that prices will retreat.
Pretty much the bulk of cobalt that is used in the world today comes from the Democratic Republic of Congo in Africa. They produce about 60,000 metric tons a year on average. This is followed by China with about 7700 MT and then Canada which produces about 7300 MT. For the longest time the world produced a sufficient amount of cobalt to keep the needs of all the industries that used it but in the last few years the demand for cobalt has increased exponentially.
Cobalt is known as a supper alloy and is used in manufacturing things like jet engines components, and other high wear moving parts. As it is added to different steels and alloys to allow for extra strengthing it is used in almost every industry possible. Aside from industrial uses cobalt is also used in the medical fields as there is a very important radioactive isotope that is used in medicine. It's not too radioactive and doesn't hurt the patient, but it can be used as a tracer element to find things like cancer. Almost everything made today that has a super alloy involved will have some percentage of cobalt.
So what has happened in the last year or so that has created such a drastic increase in the price of cobalt? The number one reason is the electric car. Cars like Tesla that use high grade lithium batteries also use a lot of cobalt. Infact there is more cobalt in a lithium battery than there is lithium and with all the millions of devices that are being bought up everyday, so goes the increase in good ole cobalt. Here's where you can thank the ole tree huggers and greenies.
Now the big question is how do you as an individual profit from this? Unless your into buying and selling bulk loads of cobalt, the next best thing is to either find a cobalt miner or a cobalt junior explorer and juniors explorers are where it going to be for the next while. Finding the next big deposit to sell to some big miner.
Of course once any commodity gets hot and in demand, so to does the amount of juniors who start to focus on that commodity and cobalt is no different. Some of the companies that are exploring for cobalt are Cruz Cobalt CUZ, Fortune Minerals FT, Cobalt Power CPO, and Clean Energy CLE. All of these players are on the hunt for cobalt.
Cruz Cobalt has nine cobalt projects located throughout North America, comprising four in Ontario, three in British Columbia, one in Idaho and one in Montana. Cruz's four separate Ontario cobalt prospects are all located in the vicinity of the town of Cobalt, making Cruz one of the largest landholders in this emerging cobalt district.
Fortune Minerals is focused on developing the Nico cobalt-gold-bismuth-copper project in the NWT and a related refinery the company plans to construct in Saskatchewan.
Clean Commodities has the Juliet lithium project, located adjacent to Critical Element Corp.'s Rose lithium project in Quebec, Canada which of course is in a cobalt area.
Cobalt Power has about 21,000 acres of properties. It's main project is the Smith Cobalt project along the Ontario Quebec border. Also the company just started a second drilling campaign on september 13 0217 and will comprise a minimum of 2,000 metres 10 to 15 drill holes. Something to look forward too.
Of course there are other companies that are out on the hunt for cobalt but hopefully this small group will give you a start for doing any kind of due diligence and also put some of these juniors on your watch list.
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Can't Pick A Gold Stock? Check Out The GDXJ
With over 2000 junior mining companies with stock that are at rock bottom prices, it can be a real tough decision on what stock or stocks to invest in. There are a lot of technical as well as economic indicators that are pointing to another bull run in gold and silver very shortly. Some say we are already in a secondary bull market of metals and lots of investors are looking at getting in while the getting is good. So that begs the big question, which stocks should perform the best.
In my last short write up Six Hot Junior Mining Stocks For 2016 - John Kaiser I posted a quick video of John Kaiser of the Bottom Fishing Report. He had six of his top picks that he felt had what it takes to be a good stock pick. As he pointed the main factors in deciding are cash on hand, management and property there are also factors that come into play. For me jurisdiction plays an important roll. With so much uncertainty in world conditions both political and economic, I personally have a tendancy to stay with the "familiar factor". Place like Canada, USA, Australia would be my choice of jurisdiction. These places give you a sense of security as the governments are not known to be oppressive or radical and there is always a good sense of law and order. Investing in companies that operated in South America or Africa have the political issues always running in the back of your mind. Once you invest inthese places there always seems to be that realm of risk that you don't have in North America. In fact even investing in Europe has it's issues. We saw earlier this year how the so call deomcartic government of Greece came to odds with Eldorodo Gold.
This all brings me to the reason why when looking into individual mining stocks, one should always check out the GDXJ. The GDXJ is a gold miners ETF and has many different mining companies listed in it's holdings. In order to be listed in the GDXJ there are a lot of specifics the companies need to go through. This is no to say that any of them will not fail at obligations but at the time they are listed they met the criteria that was expected of them. This list of companies is a great place to start looking for a junior or mid tier miner to invest in.
Below is a short list of the top 10 stocks that are in the GDXJ. You can find the rest of the list on any gold ETF site.
- Oceanagold
- Northern Star Resources Ltd
- Osisko Gold Royalties Ltd
- Evolution Mining Ltd
- Centamin Egypt Ltd
- Pan American Silver
- Semafo
- Torex Gold Resources
- Alamos Gold
Alternatively you can just buy shares in the GDXJ itself. This way each share has a portion of all the mining companies that are listed within this ETF. For those who don't really want to pick and choose this is great way to take part in the next gold bull run as the GDXJ is at almost historic lows.
If you enjoyed this article, please feel free to share. When seeking out mining stocks alsways 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.
