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Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?

Over the past year I have studied the content of my blog and would like to report which are my top articles and videos in terms of unique page views in 2015.

Clearly, my top content in terms of interest from readers in 2015 was the lithium sector where we are continuing to see demand outstrip supply.  It was one of the only commodities rising in price while the sector was wiped out by a strong dollar.  The August correction in the stock market brought back retail interest over the summer.  I expect as tax loss selling ends today to begin to see a rally in the new year.  This rally is called the January Effect where beaten down sectors bounce as fund managers look to re-position in the new year.

Top 5 Articles in 2015

1)My article from June entitled, “Where Is Tesla Going To Get The Lithium and Graphite for The “Gigafactory”? got the highest amount of pageviews in 2015. In the article I poised the question, “So where does the real opportunity lie?  The real question is where will the raw material needed for these Tesla batteries come from?” I highlighted Western Lithium (WLC.TO or WLCDF) in that article and eventually featured two new lithium stocks Pure Energy (PE.V) and Dajin (DJI.V) over the summer of 2015 which made great progress.

2)The earlier March 2015 article entitled, “Battery Market Is Powering Up Demand For This Lithium Asset In Nevada” received the second highest amount of views.  In the article I wrote, “The Wall St. Journal said a source believes that Tesla may choose Reno, Nevada to build a $5 billion battery plant producing half a million electric cars annually.  Japanese partners may also be considered.”

3)In April I wrote an article entitled, “Six Junior Gold Miners Ready To Outperform”.   I highlighted a few gold companies that I believed were on the verge of bottoming.  As we are well aware gold continued to languish and disappoint for most of 2015, however  these situations should continued to be watched in 2016.

4) In August we had a correction in the stock market which brought some attention back to the junior gold miners (GDXJ) as The Fed pushed off raising interest rates.  I wrote an article entitled, “Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?”  In the article I wrote, “The areas that may provide the greatest protection are the ones that have already been beaten down and trading near liquidation values.  The mining and metals sector may be one of the most undervalued sectors of all time and may see limited downside.  Unlimited debt can only boost an economy for so long.  Eventually, these bubbles burst as we may be currently witnessing as the Dow showed its biggest one day decline ever.”

5)In early 2015 I wrote an article entitled, “Junior Gold Miners Breaking Out Higher Despite Gold Correction” and highlighted Integra Gold (ICG.V or ICGQF) which was one of the better performing gold stocks in 2015 as they eventually received a major investment from NYSE Producer Eldorado Gold (EGO).

Top 7 Videos in 2015

1) Integra Gold (ICG.V or ICGQF) is Rapidly Developing Quebec’s Top Gold Project

2)Pershing Gold (PGLC): Cash Rich, Permitted and Shovel Ready Gold Project in Nevada

3)Niocorp Leads Mining Sector in 2014 with Major Increase in Size and Grade of Resource

4)Red Eagle (RD.V or RDEMF): One of the Highest Economic Undeveloped Gold Mines in The World

5)Fission Team Leading The Entire Uranium Mining Sector Throughout Downturn (FCU.TO/FUU.V)

6)Western Lithium (WLC.TO or WLCDF) Could Be Major U.S. Supplier of Lithium

7)Carlisle Gold (CGJ.TO or CGJCF) Owns One Of the Highest Grade-Open Pit Gold Mines in Canada

During this past month of December I would like to highlight a few video interviews that have some of the highest traffic with my readers which I believe happens to be some of the smartest mining investors in the business.

Top December Video Views During Tax Loss Selling Season

1)Don’t Ignore This High Grade-Low Capex Advanced Gold Deposit in Ontario

2)Nevada Explorer Hits Gold On First Drill Hole in Northern Nevada

3)This Junior Can Still Make Huge Profits Even At These Low Copper Prices

Disclosure: I own shares, warrants and/or options.  All these companies were prior and/or current website sponsors. Please be aware that mineral exploration is very risky.  Make sure to read the risk factors on public filings.  Do your own due diligence as I have a conflict of interest as I would benefit if share price goes higher.  This is not investment advice.

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Friday, January 1st, 2016 Invest, News, Trade Comments Off on Lithium Continued To Excite Investors in 2015, Will Stock Market Crash Bring Back Interest to Junior Mining?

What’s Driving Uranium’s Outperformance Over Oil in Fourth Quarter?

Look at uranium versus oil over the fourth quarter.  Uranium is making higher lows on strong volume while oil continues to decline.  It is clear that uranium is showing great relative strength technically, but what could be some of the positive fundamentals driving this outperformance.


Emerging economies such as India and China can no longer rely on dirty fossil fuels.  Recent news out of Paris on Climate Change could be putting pressure on long term energy planners looking to decrease their carbon output by securing long term off-take supply contracts with uranium miners (URA).
Notice recent news that came out of the beaten down uranium sector.  After the Fission Uranium (FCU.TO or FCUUF) merger with Denison (DNN) fell apart, Fission announced a signedbinding letter of intent to sell $82 million or 19.9% of the company at a huge premium to the market to CGN Mining.  CGN is listed on the Hong Kong Exchange and the controlling shareholder is China Uranium Development Company, a division of China General Nuclear Power.
Earlier this year in April I wrote in this article that “China may be on the hunt for acquisitions to secure long term uranium supply in addition to the Indians.  It will be hard to find as many of the marginal producers have already shuttered mines and the low uranium spot price has made it challenging to finance development projects…Focus on Fission Uranium (FCU.TO or FCUUF) which is continuing to grow and expand the Patterson Lake Discovery, a once in a generation high grade discovery which has already over 110+ million pounds of uranium.  As soon as it breaks out and continues its upward trend I expect either Cameco, Rio or the Chinese look to chase it.”
Dev Randhawa, Chairman and CEO, of Fission Uranium, commented on the recent deal with CGN Mining,
“This is an historic moment for Canada’s uranium industry. It is the first time a Chinese company has invested directly in a Canadian uranium company. We are thrilled that CGN Mining has chosen to invest in Fission, PLS and the Triple R deposit. CGN Mining’s understanding of the uranium business is superb and we are excited at the opportunity to work with them. CGN Mining’s knowledge and expertise will be invaluable as we progress PLS and add to shareholder value.”
Mr. Xing Jianhua, Chief Financial Officer of CGN Mining, said,
“CGN Mining and Fission Uranium have worked hard together to forge this partnership. Both companies have a strong drive to cooperate and achieve the synergy which will result in sustained, mutual benefit.”
See the full news release on the Fission Deal by clicking here…

This investment by the Chinese into the Athabasca Basin could jump start funding and investment interest for other explorers in the Athabasca Basin.  This includes Fission 3 (FUU.V or FISOF) who is managed by the same team that discovered Fission’s PLS Discovery.  Fission 3 just announced that they added nine new properties and now have 26 projects in the Athabasca Basin.

Ross McElroy, President, COO, and Chief Geologist for Fission, commented in the recent news release,
“Following extensive evaluation and highly targeted staking, Fission 3.0 has further enhanced its already-strong exploration portfolio in the Athabasca Basin region. Our award-winning technical team is also making good progress with early-stage exploration work on a number of the company’s high-priority projects as we explore for near-surface uranium mineralization in the world’s leading high-grade uranium district.”

Its important to pay attention to what may be one of their top targets Clearwater West which is Joint Ventured with Canex Energy (CSC.V).  The property lies adjacent and to the south of PLS Discovery.


Canex recently drilled three holes and confirmed “geological features which makes the area highly prospective for hosting high-grade uranium mineralization.”
In conclusion, I expect investment interest in nuclear to recover quickly as emerging economies look to secure offtake agreements and take equity positions in Canadian junior miners.  Remember the Fukushima incident in March of 2011 could have been one of the biggest black swans in TSX Venture history.  However, news out of Fission may mark a bottom in the junior uranium sector and possibly the TSX Venture hovering around historic lows around the 500 mark.
Disclosure: I own Fission, Fission 3 and Canex.  Fission 3 and Canex are website sponsors. Please be aware that mineral exploration is very risky.  Make sure to read the risk factors on public filings.  Do your own due diligence as I have a conflict of interest as I would benefit if share price goes higher.  This is not investment advice.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Wednesday, December 23rd, 2015 Invest, News, Trade Comments Off on What’s Driving Uranium’s Outperformance Over Oil in Fourth Quarter?

Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?

Back in June, Gold Stock Trades founder Jeb Handwerger, in an interview with The Gold Report aptly titled “Fed Interest Rate Increase Could Be Best Thing to Happen to Gold,” said he believed that the Fed raising interest rates would be positive for gold: “Money printing and easy credit has fueled the stock market rally and beaten down commodities. Investors flocked to dividend-paying stocks, and became speculative in tech, which has led to huge overvaluations similar to the late 1990s dot-com debacle. . .

Rising interest rates may be the catalyst that causes investors to flee the general stock market, which has proven attractive in a low rate environment. Higher interest rates concurrent with a pickup in inflation could result in a rush to a safe haven in commodities and wealth from the earth—natural resources and precious metals, which is historically a hedge against a pickup in inflation.”

Predicting is a risky sport and predicting markets an extreme one. But understanding can be much more lucrative. After years of speculation about the negative impact a Federal Reserve rate increase could have on gold, a number of our experts took a contrarian view and based on an understanding that the hike was already priced into the gold price, they explained that it would actually benefit the gold price because it would remove the overhanging doubt. And that is exactly what happened. Within hours of the unanimous announcement on Wednesday that the Fed’s benchmark short-term borrowing rate would go up a quarter point, gold was up $14/oz.

See the full article on the Fed Rate Hike and Gold from Streetwise Reports entitled “Gold Rises on Fed Interest Rate Hike, as Contrarians Predicted” by clicking here…

Looking at the chart above notice that even though gold (GLD) has hit new lows, the junior gold miners (GDXJ) are finding support and the Momentum indicators are positive.  That may indicate a rebound or at least a relief rally may soon be underway in the junior miners possible following tax loss selling.  December tax loss selling is always challenging in the junior markets during good times, how much more so in these historically tough times.  The good news is that January is usually rally time for the junior miners as investors re-position for 2016 in beaten down names.  I expect that the first three months of 2016 could be exciting for some of the highest quality names with top assets, treasury and management.

Check out some of these exciting junior gold miners which I own and are current website sponsors.

1)Junior Gold Miner Hits High Grade Gold on Cortez Trend Next To Barrick

 

2)Junior Gold Miner Hits Gold on First Drill Hole in Northern Nevada

 

3)Top High Grade-Low Capex Gold Asset in Ontario at Feasibility Stage

Please do your own due diligence as this is not investment advice and am biased as I would benefit if they move higher in price.

 

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

 

Wednesday, December 23rd, 2015 Invest, News, Trade Comments Off on Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?

Western Lithium (WLC.TO or WLCDF) Could Supply Shortfall with Two Of The Top Lithium Assets

Investors from all over the world are clamoring for lithium stocks as it is one of the few commodities going up in price dramatically while other commodities are hitting new lows.

New investors interested in lithium are signing up for my free newsletter as I wrote to my subscribers about the coming lithium boom years ago as I was one of the long term supporters of Western Lithium (WLC.TO or WLCDF)  long before it became the top performer on the OTCQX® in 2014.

I have continued to hold shares for a long time because I believed that their Kings Valley project could one day be a productive asset, however, since they made some major institutional financings and merged with Lithium Americas they have come way back down in price to become once again what I consider deeply discounted.  The stock may have gotten ahead of itself when it ran from $.15 all the way to a $1.

Over the summer during these huge financings combined with the merger process, I diversified into Pure Energy (PE.V) and Dajin Resources (DJI.V) which had phenomenal moves while Western Lithium declined.   I think that some of the long term Nevada investors were concerned about Western Lithium going into Argentina as that jurisdiction has recently been volatile from the previous administration and were concerned about recent share dilution to institutions.

However, that may have turned this week with the recent election of what appears to be an ousting of the previous Kirchner regime.  This could boost foreign investment in Argentina especially in their high quality lithium brines which Western Lithium acquired right at what could be a major turning point for Argentina and what could be a lithium parabolic move as demand is outpacing supply.

Western Lithium is now a much stronger company with the merger despite being down more than 50% from its highs for the following reasons.  They have the top two advanced and lowest cost lithium projects.  Western Lithium is partnered with Korean Giant Posco on the Argentinian Project.  Posco is carrying costs of Argentinian project until initial production in 2017.

Then comes Kings Valley in Nevada into production in 2019.  It may be one the lowest cost and most advanced lithium deposits in North America.  Its at the Feasibility Stage with a current demo plant in Germany where they are working on advanced engineering and have produced a 99.8% high quality lithium carbonate.  In 2016, Western Lithium hopes to finalize the design and the electrolysis circuit where lithium carbonate is transformed to lithium hydroxide.

Lithium is booming yet our blue chip Western Lithium is more than 50% cheaper than the approximately $8 million CAD bought deal financing it did with Dundee and Haywood back in June 2015.  The terms of that financing was $.70 CAD per unit with a $.90 CAD two year 1/2 warrant.  Its even significantly cheaper than the $5 million at $.54264 private placement with Bangchak Petroleum.  I believe that attempts will be made over the next two years to hopefully exercise those warrants in the money as it moves closer to commercial production in Argentina.  It is nice as a shareholder to have POSCO putting up the money.

A more fair value could be possibly the $.90 CAD range where the warrants are priced that should come into the money over the next two years or at least the $.70 unit price of the recent financing.  This could be a double or triple from these levels.  Of course this is dependent if the lithium sector continues to gain momentum with increased retail interest as I hope for.

Young investors are flocking to this sector as they follow stocks like Tesla, Google, Apple and Amazon who all need large amounts of lithium over the next decade for their devices.  As Tesla advances their gigafactory and as more battery plants are built worldwide more recognition will come to companies leading the way such as Western Lithium who has around $7.5 million in the bank the last I looked.

The lithium revival could boost investment interest once again in the Canadian Markets where there are juniors finding the next decade’s supply of lithium hydroxide.  The large producers will be forced to acquire these situations as their assets are getting older and more expensive for nice valuations.

Right now, in my lithium portfolio I have three stocks where I hope for large gains as I believe we are still in the early stages of this lithium boom.  The most advanced is Western Lithium (WLC.TO or WLCDF), followed by Pure Energy (PE.V or HMGLF) who is working on its PEA in Clayton Valley and then Dajin Resources (DJI.V or DJIFF) who has some exciting earlier stage lithium opportunities in both Nevada and Argentina.  If this is the beginning of a boom and lithium prices continue higher these companies could see massive re-ratings as hedge funds and momentum players begin to enter this market.

Make sure to tune into the Western Lithium conference call with management this Monday December 21st at 11am EST.  There will be an update on the project and plans for 2016 which I believe could be quite exciting.  Remember Western Lithium controls the 3rd largest lithium brine resource in the world in Argentina and the largest domestic US lithium resource in Nevada at Kings Valley which is at the Feasibility Stage.  Demand for lithium is great and supply is limited.  Western Lithium could play a vital role to fill this supply shortfall which has been driving the price higher.
Dial in details are as follows:

Toll Free Dial-In:                                1-888-231-8191
International Dial-In:                          1-647-427-7450

In addition check out my recent interview with Dajin Resources (DJI.V or DJIFF) CEO Brian Findlay and my interview with Pure Energy Minerals (PE.V or HMGLF) CEO Robert Mintak by clicking here…

Disclosure: I am a shareholder of WLC, PE and DJI.  I bought all the shares of these stocks in the open market.  I recently bought shares in WLC this week and am currently on the bid of WLC in low $.30’s as of this writing.  They are all website advertisers and I am a shareholder so I have a conflict of interest and want the value of these companies to move higher.  Please do your own due diligence as this information is not for investment purposes and always consult with a registered financial advisor.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Saturday, December 19th, 2015 Invest, News, Trade Comments Off on Western Lithium (WLC.TO or WLCDF) Could Supply Shortfall with Two Of The Top Lithium Assets

US Dollar Double Top? Could US See Recession in 2016?

In May of 2011 I sent out this chart and published an article entitled, “The Euro-Dollar Dance Doesn’t Fool Gold And Silver Bulls”.

Currency Shares Euro Trust

I predicted that the Euro made a bearish technical reversal, while the US dollar was oversold and could bounce higher to resistance. The chart clearly shows the inverse relationship between the Euro and the Greenback which I called the Euro Dollar Jig.  When one moves up, the other moves down.

At the time the Euro ETF (FXE) was trading around $140 and the US dollar was hitting new lows, today 4 years later the currencies are in exact opposite positions.  The Euro is hitting new lows at $105 while the US dollar is testing highs not seen since the 2008 deleveraging.  I expressed concern back in 2011 that the US dollar could bounce to resistance.  I never expected the greenback to get this strong and overbought testing 2008 highs with all of the trillions of dollars printed.  I though precious metals would rise with the dollar as a safe haven.  Unfortunately, that did not occur.

I predicted back in 2011 that Europe would follow the US by printing and that further bailouts of weak Euro nations would cause a decline in the Euro.  As I expected back in 2011 capital flowed to the oversold US dollar.  Commodities and precious metals did not rally with the dollar as a safe haven and caused a major commodity de-leveraging weakening major mining financial institutions such as US Global Investors, Sprott, Pinetree, Dundee and many others.  In 2011, many funds began to raise cash and reduced their exposure to mining related equities.  This has been going on now for more than four years, turning into one of the worst bear mining markets in history.

This bear market is going on four years now as the US dollar bounces higher, while all other currencies including the Euro have been in free fall.  This may soon change as the moves in the S&P 500, US Treasuries and Dollar are way overextended.

Don’t be fooled, the US dollar is overbought and ready to turn over while the Euro and precious metals could finally see the bounce they have been waiting for over 4 years.  The exact opposite conditions of what we saw 4 years ago.

The cheap Euro with negative interest rates are boosting exports from Europe where manufacturing is hitting new highs, while the US who is expected to raise interest rates is showing signs of a potential recession in 2016.  US exports are slowing down.  Europe’s economy is speeding up and they are lowering rates, while the US is slowing down and they are going to raise the rates.  This could cause the US dollar to turn over while the Euro and emerging economy currencies bounce higher as they grow while the US slows down.

Back in 2011, I predicted the US attempt to democratize the Middle East would be a failure.  Now most of the Middle East is in turmoil and Islamic terrorism in Europe and the US is increasing.  The wars of the past decade in the Middle East have caused sovereign debt in Western nations to skyrocket.  Debt limits are pushed higher.  The credit ratings are poor in my opinion and should already have been downgraded by reputable agencies.

The investors who are short precious metals may soon need to cover as the Dollar reaches risky overbought territory and may soon make a double top.  The S&P 500 has doubled in the past four years and could see a major correction if we move back into recession.  The best protection right now is to stick to undervalued assets in energy and mining and to avoid the momentum trap in the over-inflated S&P 500, US Dollar and Treasury Bonds.

Remember we are in tax loss selling season which should hit the beaten down sectors the worst such as energy and junior mining stocks.  At this time, buyers who have cash can get exceptional deals if they place stink bid as some sellers just write off some of their investments.

Now may be the best time to sign up to my premium service as I have a pretty good ability at finding some of the best juniors in one of the worst markets.  I let my subscribers find out what I have bids on.

I have had some success in the junior lithium sector over the past few years while precious metals corrected.  Listen to my full  interview with Financial Sense Radio by clicking here…

or see preview below.

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Please see my disclaimer and full list of sponsor companies by clicking here…

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Friday, December 4th, 2015 Invest, News, Trade Comments Off on US Dollar Double Top? Could US See Recession in 2016?

Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market

There is a company gaining market share due to the recent acquisition of Motorola by Google.  In 2011, Google bought Motorola for its Android Operating System addressed for consumers in the use of smartphone and then sold off the rest of Motorola to other outfits.  This left a huge void in Motorola’s Business Unit which sold “connected-vehicle” devices to fleets across the transportation sector.  Its a big $7 billion market that this small company is looking to build its market share.

These devices Siyata Mobile (SIM.V) makes connect voice, data and fleet management tools.  After Google’s acquisition of Motorola this area of the business for commercial mobile operations was neglected yet demand of these products still remained.  That is where Siyata Mobile (SIM.V) came in to fill this huge void. They acquired a lot of R&D from Motorola.

Motorola used Israel for a lot of its research and development and Siyata brought on some of the scientists together to make the best possible connected device that is up to date and is cutting edge.  Siyata is doing that right now rapidly growing sales of these devices in Europe, Middle East and Australia over the past three year.

Sales are growing at 53% year over year and recently reported unaudited record sales of $7.2 million for the first three quarter.  This year looks good but 2016 could be great.  Siyata is now being sold in new jurisdictions and they are bursting into many new industries with their devices.  This should grow sales exponentially as they are now entering the massive North American Markets. Siyata Mobile (SIM.V) recently announced a significant partnership with Telus (TU) in Canada and I hope to hear soon that they enter the huge US market.

Marc Seelenfreund, CEO of Siyata commented, “These are exciting times as we continue to see strong demand for our products from recurring orders from existing customers, as well as introducing several new customers in new markets, such as our recently announced partnership with Telus in Canada. We have a great opportunity to grab market share in the lucrative commercial fleet market.”

Management believes they have a first to market competitive advantage with technology and regulatory approvals so that they could be the North American market leader over the next two years.   Its quite special to find top notch Israeli tech deals with an improving balance sheet at this low valuation under $18 million.

Earnings growth could be dramatic over the next five years.  The market for these connected devices could double over the next five years especially in North America where there are currently 10 million commercial vehicles on the road.

Siyata (SIM.V) has already proven that they can sell these devices and already sold over 100k units.  If a major company is shipping millions of dollars worth of goods across the country these devices can assume the identity of the vehicle.

New laws are being enacted to prevent distracted driving from commercial operators.  These devices can be programmed for time logging and text blocking technologies with push to talk technology that can be used in law enforcement, construction, mining, oil/gas etc like walkie -talkies.  Google and Apple are not focussed for commercial business but on retail consumers who don’t need these specialized solutions.

In the past, Motorola was the big supplier, however, most of their products are obsolete.  Siyata is hoping to take over that market and be the leading supplier especially in North America.

I recently purchased shares through a Private Placement priced at $.30 CAD that closed several weeks ago.  The last I looked it’s trading at still a significant discount to that financing so you can get in 10 cents cheaper than me and some of its large shareholders.  Look for downtrend to be broken to the upside as technicals should follow the improving fundamentals of the company.

The time may even be more propitious now to build a position as they just announced their Canadian wide launch with TELUS dealers.  TELUS has certified the use coast to coast on the 4G network.

Listen to my recent interview with Siyata Mobile (SIM.V) CEO Marc Seelenfreund by clicking here…

Marc is the founder of the company and a Tank Commander for the Israeli Defense Forces (IDF).  Around 60% of the 72.5 million shares are owned by the parent company and the Shamrock Israel Growth Fund.  The company has around $4 million CAD in cash and 8 million warrants at $.60 putting them in a strong financial position to grow.

Disclosure: I own Siyata Mobile (SIM.V) participating in the recent PP at $.30 CAD and I bought more at the end of October in the open market.  Siyata is a current website sponsor.  Conflicts of interest apply as I would benefit if the share price rises.  Please do your own due diligence.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Friday, November 20th, 2015 Invest, News, Trade Comments Off on Motorola’s Acquisition by Google Left a $7.2 Billion Void in Niche Market

Countdown on Barrick Decision with NuLegacy Gold (NUG.V)

Gold is testing July support and multi-year lows, however there are unique junior gold mining equities which continue to stand out.

NuLegacy Gold (NUG.V or NULGF) has been hitting some impressive high grade gold on the Cortez Trend in Nevada this past year.  Nevada is one of the most profitable and lowest cost jurisdictions especially Barrick’s (ABX) mines on the Cortez Trend which I was blessed to visit last year.

With the depressed price of gold there are very few economic places to mine gold like Nevada.  The Cortez Trend is where Barrick produces its most profitable gold and its also where they are making their biggest discovery at Goldrush, which is adjacent to NuLegacy’s Iceberg Deposit.  In addition to massive discovery at Goldrush, one of their little JV partners NuLegacy Gold is finding high grade gold right next to Goldrush.  This could be Barrick’s next big gold discovery.

It is my belief Barrick needs to immediately sell off non core assets in outside riskier jurisdictions and build new high grade and low cost discoveries focused on Nevada.  NuLegacy could be Barrick’s next takeout target.

NuLegacy has discovered a potential Carlin Type deposit with a NI 43-101 compliant exploration target of 90-110 million tonnes of 0.9 to 1.0+ grams of gold per tonne and completed its 70% earn in with Barrick who has three major gold deposits on trend with Goldrush adjacent to this discovery.

NuLegacy management led former National Gold to a buy out for a premium by Alamos Gold (AGI).  I believe executives Albert Matter and James Anderson can capitalize on this deal now with NuLegacy and either joint venture or merge with a major producer as they are experience negotiators.  I would like to see Barrick do it but it could be a whole bunch of other companies such as Aginco, Yamana, Alamos or Eldorado.

The window for Barrick to elect to earn back in is closing and we should hear a decision in the coming weeks.  If they elect to earn in they will have to spend $15 million USD on the property over the next 5 years to earn 70% or they can elect to remain a minority 30% partner.  Both options are win-win for NuLegacy as they can either sell the 30% to a royalty company such as Royal Gold, Franco Nevada or Sandstorm or sell the 70% to a larger intermediate producer such as Yamana, Agnico or Alamos who want to establish a presence in the Cortez Trend.

I believe NuLegacy Gold (NUG.V) could see a major transaction over the coming weeks which could provide shareholders with potential gains.

See my recent interview with NuLegacy Gold (NUG.V or NULGF) CEO James Anderson by clicking here….

Disclosure: I own NuLegacy Gold and the company is a website sponsor.  Be aware of conflict of interests and do your own due diligence.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Saturday, November 14th, 2015 Invest, News, Trade Comments Off on Countdown on Barrick Decision with NuLegacy Gold (NUG.V)

Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World

I have been early in uranium stocks as I expected a bottom many months ago that has still not yet come to fruition.  It hasn’t been easy as the commodity markets continue to be under pressure from a strong US dollar.  However, I am still accumulating uranium equities with improving fundamentals despite the negative pessimism as I believe we are finally seeing the market conditions for a major bottom.  Investing in junior miners requires patience and fortitude.  I believe it is much better to be months early then minutes too late.

All we need is follow through from major private equity funds who may be waiting in the wings ready to pounce for the following reasons.  Japan has restarted two nuclear reactors.  This is a major turnaround from their prior path of abandoning nuclear following once in a millennium accident at Fukushima in 2011.  In addition to the 180 degree turn in Japan, China continues its record pace of building and starting nuclear power plants to move away from coal which is suffocating some of their major cities.  Even the United States has started operating its first new nuclear reactor in close to three decades.  All this positive news indicate demand is increasing.  Because of decade low uranium prices, supply has dwindled as it is unprofitable to mine unless you are lowest cost producer.  Rising demand with declining mine supply equals the potential for a price spike higher.

Due to this Post Fukushima Bear Market, investors can often find situations to get in cheaper than management.  That is exciting for investors looking for bargains in companies building the strength of their balance sheets, cutting costs and increasing nearer term cash flow despite the challenging commodity market.

For instance, one company in which I recently became a shareholder Uranium Resources (URRE) saw its CEO Chris Jones make a purchase in the market of 7400 shares at $2.42.  New investors to the sector can purchase shares at 1/3rd the price.  This is a bargain opportunity especially now as they have rolled back their shares and have announced the closing of a major merger with near term producer Anatolia Energy.

Uranium Resources is now on a quicker track for uranium production with the goal of commencing development in 2016.  Temrezli has a Pre-Feasibility which shows low cash costs and impressive cash flow even at today’s low uranium prices.

As you can see from the chart above the Temrezli Project has the potential to be lower cost than their US production by $10-$15 per pound.  It is important for uranium stocks to stay competitive with the highest quality projects which are lowest cost and nearer term producers.  Uranium Resources has experienced uranium in situ recovery operational experience as it operated US facilities for over 35 years.  The market cap is low under $50 million which is impressive as it owns of the top lower cost uranium assets in the world.

In prior bull markets, Uranium Resources reached a $300 million market cap before Fukushima and a $600 million market cap in the 2007 uranium price spike.  Now it is testing all time low valuations below a $50 million market cap despite significantly improving their nearer term cash flow prospects with the Temrezli transaction.

Christopher M. Jones, President and Chief Executive Officer of URI, said,The more we study Temrezli, the more confident we are that this is one of the best undeveloped in-situ recovery uranium projects in the world.”

Construction is planned on the Temrezli Project in 2016.  What does the new Uranium Resources (URRE) offer?  The merger could save up to $11 million in start up costs because Uranium Resources already owns a processing plant and has the experienced operational personnel in South Texas with years of experience producing uranium.  Now the newly merged company could provide near term cash flow in addition to a long term call option on the uranium price with Uranium Resources extensive portfolio in Texas and New Mexico. The merger could create a much better uranium company with one of lowest cost profiles listed on the US and Australian exchanges with both near term low cost production and long term leverage on uranium.  I believe the nuclear sector is bottoming and expect that through this completion of the merger, Uranium Resources could find the mine financing needed to advance Temrezli to production in Turkey.  There is the potential for a jump in valuation as they come closer to production.  Compared to their uranium peers they are significantly undervalued as the market has not yet come to realize the significance of this merger.  As you can see by the chart below Uranium Resources now has one of the largest resources in the sector yet they are trading at a significant discount.

Maybe there is concern about Turkey.  It should be realized Turkey has a long history of mining with many major current Western producers.  Turkey has 8 nuclear plants under construction and Temrezli is the only advanced uranium asset with a Pre Feasibility showing Uranium cash costs around $30 a pound putting the asset in the lowest quartile in costs.  Turkey has stated they want domestic production.  The share structure is tight following the merger with around 50+ million shares outstanding.

The cost savings, personnel and synergies of the merger are too great to ignore as I believe the newly merged entity could fast track low cost uranium production as it is now on both the US and Australian Exchanges providing excellent visibility, liquidity and access to mine finance institutions.

See my recent interview with Uranium Resources (URRE) CEO Chris Jones by clicking here…

Disclosure: I am a shareholder of URRE and Uranium Resources is a website sponsor.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

 

Tuesday, November 10th, 2015 Invest, News, Trade Comments Off on Uranium Resources (URRE) Acquires One of the Best Uranium Projects in The World

Junior Gold Miners (GDXJ) on Verge of Major Breakout From Base at $23

Junior gold miners may be on the verge of a major breakout past three month highs after The Federal Reserve continues to push back interest rate increases.  There is a stealth rally underway for junior miners as gold tests resistance after bouncing off its lows in late July.   Investors appear to be rotating from the Dow into precious metals as investors may be anticipating even greater easing efforts globally due to China’s recent weakness and Yuan devaluation.  This could continue to push precious metals, the large miners such as Barrick Gold (ABX) and mid-tiers such as Alamos Gold (AGI) higher.  The fear of rate increases that pushed precious metals down is decreasing.  The recent rally in precious metals and junior miners may be just beginning as I expect to see increased mergers and acquisitions off of these depressed low prices.

A company I have highlighted since the beginning of 2015 is Carlisle Goldfields (CGJ.TO or CGJCF) which traded as much as 40% higher on record volume as they released news that they are in “discussions concerning a potential commercial transaction.”  Carlisle is currently partnered with NYSE Producer Alamos Gold (AGI) on Lynn Lake up in Manitoba, Canada.  It is one of the top open pit gold projects in Canada.

See the recent news on the potential transaction by clicking here…

See my recent interview with Carlisle (CGJ.TO or CGJCF) CEO Abraham Drost by clicking here…

NuLegacy Gold (NUG.V or NULGF) was up 22% yesterday after they released news that they completed the 70% earn in with Barrick Gold (ABX).  The Iceberg Deposit is adjacent to three of Barrick’s huge gold deposits that are the most profitable and safest in the world.  NuLegacy spent $5 million USD to earn the 70% interest which is quite impressive in this tough market.  Barrick has 90 days to elect to earn back in by spending $15 million USD on the property over 5 years or remain a minority 30% partner.

See the full news release completing the earn in agreement by clicking here…

See my recent interview with NuLegacy Gold (NUG.V or NULGF) CEO James Anderson by clicking here…

Corvus Gold (KOR.TO or CORVF) has doubled since the beginning of October.  They released an impressive video of the project and a 3D video of the Yellowjacket Discovery.  See the new video highlighting the project by clicking here…

Corvus closed on a $2 million financing with no warrants with a deep pocketed major Private Equity Firm (Resource Capital Fund) in early September and then intersected a gold-silver system on the untested eastern side of North Bullfrog.  Jeff Pontius, Corvus Gold CEO stated, “The detection of gold and silver mineralization in the large East Bullfrog target area has the potential to be a game changer for the property as the area is nearly three times the size of the area hosting our current deposits…we believe that Corvus Gold is uniquely positioned in the junior sector to make a major value impact in the coming months.”

See my recent interview with Corvus Gold (KOR.TO or CORVF) CEO Jeff Pontius by clicking here…

Disclosure: I own Carlisle, NuLegacy and Corvus. NuLegacy and Corvus are current website sponsors.  Carlisle was a past sponsor.  This is not financial advice and I do have a conflict of interest as I could benefit if the share price increases.  Junior Mining stocks are very risky.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

 

Thursday, October 15th, 2015 Invest, News, Trade Comments Off on Junior Gold Miners (GDXJ) on Verge of Major Breakout From Base at $23

Copper and Base Metals May Be on Verge Of Major Breakout After Glencore Cuts Production

For the past two weeks I have written to my premium subscribers to look at copper and the industrial metals as I saw deep pocketed private equity funds and billionaires such as Carl Icahn and KKR taking big bets on beaten down Dr. Copper hitting five year lows.  I knew that a bottom could be forming and that we could be near the final turn.  It was my first copper bet in many years.

Now it appears that the call of a bottom in copper and industrial metals could be confirmed by the recent news that Glencore is cutting global production of zinc.  Copper and nickel could be next.  The Commodity Giants such as Glencore are in great financial duress right now shutting down mines left and right that are losing money at these low commodity prices.  They recently shut down two African Mines.

Other industrial metals most notably copper are also rising as the recent downturn in prices has forced many of the high cost mines to shut down as well as the companies could not turn a profit.  The news out of Glencore over zinc is also shocking the copper market highlighting the painful effects of this commodity crash as even the giants have fallen.  There is a coming supply shortage coming to the commodity markets which could be unparalleled as the major miners have been absolutely devastated in this historic downturn.

1)Attention should be paid to Excelsior Mining (MIN.V or EXMGF) who just announced that they purchased out of receivership an adjacent Copper Mine to their Gunnison Project in Arizona and will be raising $12 million USD.  The Mine comes with a working solvent extraction plant which could process solutions from Gunnison saving time and money to get into production.  Commenting on the Johnson Camp Transaction, Stephen Twyerould, President and CEO of the Company, said, “This is expected to allow us to significantly reduce our upfront capital requirements and the time required for the start-up of the Gunnison Project.  The Company also intends to thoroughly examine the potential of Johnson Camp, especially since this is the first time in its 130 year history that the entire Johnson Camp district has been consolidated under one ownership.”

Excelsior’s Gunnison Project is possibly the lowest cost and most advanced project in the US in control of a junior miner at the Prefeasibility stage.  Because of the uniqueness of the project copper can be recovered through In-Situ Recovery (ISR).  I have learned about ISR from the uranium sector most notably from the low cost ISR producer Uranerz Energy which was acquired by Energy Fuels (UUUU) earlier this year.

See the full news release on Excelsior’s Johnson Camp acquisition and financing by clicking here….

See my recent interview with Excelsior Mining (MIN.V or EXMGF) CEO Stephen Twyerould by clicking here…

2)Keep a close eye on Uranium Resources (URRE) whose merger with Anatolia is deeply supported by both sides.  This new deal could make URRE a near term low cost producer with the Temrezli Project.  Cost savings were impressive and the company could be well positioned after the consolidation for the coming upturn in uranium prices.  Don’t forget URRE has many idled projects in the US which could also provide leverage to a rebound in uranium prices.  In the meantime, URRE will now have the Temrezli ISR Project which is at the Feasibility Stage and could be a profitable project even at these low uranium price levels.  Merger should close around November 9th.

See the news release showing overwhelming support from Anatolia and URRE shareholders by clicking here…

See my recent interview with Uranium Resources (URRE) CEO Chris Jones by clicking here…

3)An earlier stage nickel explorer in Voisey’s Bay Equitas Resources (EQT.V) continues to excite me and grab the attention of the junior mining investment community.  They recently acquired additional claims to the west of their Garland Property which the company is currently drilling.  VP Exploration of Equitas (EQT.V) Everett Makela recently stated in the press release, “I am pleased with the progress of the Phase 2 campaign to date..The three additional anomalies at O, P and Q increase our odds for success, and we are adjusting the program to accommodate exploration of these targets. Recent interpretation of the multi-km Southern Response Trend has led to a shift of exploration focus to this area. We will continue to provide updates on results as they become available”.  Mr. Makela worked with Inco and Vale on nickel exploration and is a specialist in target generation and managing exploration programs.

See the recent update on exploration at Garland by clicking here…

See my recent interview with Equitas (EQT.V) CEO Kyler Hardy by clicking here…

Disclosure: I own shares in MIN, URRE and EQT.  They are all website sponsors so I do have a conflict of interest as I would benefit if the share price increases.  This is not financial advice.  Please do your own due diligence as there are many risks.

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

 

 

Saturday, October 10th, 2015 Invest, News, Trade Comments Off on Copper and Base Metals May Be on Verge Of Major Breakout After Glencore Cuts Production

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