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Fed Refuses To Raise Rates on Slowing Economy Boosting Gold and Junior Miners

For smart investors watching the gold-Dow ratio rather than mainstream media headlines, this is an exciting time to be a precious metals investor. The world seems to be conspiring to push the price of gold higher, with continued zero interest rates, Chinese stock market volatility and more unrest in the Middle East. In this interview with The Gold Report, Gold Stock Trades Editor Jeb Handwerger lays out his short list of junior mining companies that have been actively adding value, and that will be in demand when all eyes are on the sector.

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The Gold Report: In your last interview with The Gold Report, you said that a Federal Reserve interest rate hike would be the best thing for gold. As we now know, the board decided to keep rates at almost zero. How does that impact your projections for precious metals?

Jeb Handwerger: It was almost a done deal that the Fed was going to raise interest rates in September, but then the Chinese market began to crash and just the threat of raising interest rates caused a price decline in the S&P 500, the likes of which we haven’t seen in a long time. It was a record drop, breaking a major four-year uptrend and forming a technical bearish pattern. The Fed announced on Sept. 17, when it was expected to raise interest rates for the first time since 2006, that it is uncertain about the economy, that the equity markets are too volatile, and that there are too many dangers of another recession. Now the Fed is doing whatever it can to prevent a recession.

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The global stock markets are beginning to roll over, something I predicted in that same interview, due to fear of a rate increase before the end of 2015. The reality is we have a slowing global economy with the threat of higher interest rates, and that sparked a rally in the precious metals. The gold-Dow ratio is now beginning to turn in favor of precious metals, which are once again seen as a safe haven to preserve capital and protect against markets that are completely overinflated and experiencing record volatility. That is why I have always advocated for a diversified portfolio, including precious metals commodities and high-quality junior mining equities. I would not be surprised to see gold at $1,600/ounce ($1,600/oz) and the S&P500 at around 1,600 before the end of the first half of 2016.

The bottoming process for the juniors could be taking place now, after a seven-year decline. All of these factors make this a phenomenal time to find assets not correlated to the stock market, the bond market and the U.S. dollar. The best assets inversely correlated to those things are precious metals commodities and junior miners.

Now, the junior miners are even cheaper than they were in the late 1990s, when gold was below $275/oz. This could be a once-in-a-lifetime value proposition that may not last much longer. The safest havens during these periods of deleveraging are assets trading near their intrinsic values or at liquidation levels, which we’ve seen. Many of these miners are trading even below their cash values.

Integra Gold Corp. would be an attractive takeover target; it’s only a matter of time before a major wants to add this high-grade asset to its portfolio.”

The U.S. stock market and the U.S. Treasury markets went straight up for more than four years, boosted artificially by record low rates. They could be due for a possible 30–50% decline. The recent decline was just about 10%. Any rally may be short-lived until the markets return to realistic levels. As soon as that uptrend in equities is broken, we will see a massive rotation into the inversely correlated sectors, which include precious metals commodities and the gold juniors.

TGR: You’re not the only one saying this. J.P. Morgan just called a bottom for gold. Are you watching the same indicators as the big investment banks?

JH: I’m not a fan of big-house reports. I usually look at them as a contrary indicator, but this could mean that the upturn has just become undeniable.

The key indicator I watch is the gold-Dow ratio. That is evidence that the trend may be changing. Investors need to look at the relationship between stocks and gold. When that ratio breaks down, it’s better to be in precious metals.

I also look at the cycles. The decline really began in 2007. This is one of the longer declines, even factoring the bounce after the credit crisis between 2009 and 2011. Over this seven-year period, a drastic reduction in mineral exploration and development due to capital chasing social media and biotech stocks has caused a major shortage of mineral supplies. The recent volatility and increase in the Chicago Board Options Exchange Index (VIX) will send investors back to the junior miners as a way to diversify out of overvalued stocks and bonds. That is why a portfolio of choice junior mining investments is more valuable than a statement might show today.

TGR: What kind of junior mining company can do well in this upward-turning environment you’re describing?

Pershing Gold Corp. is positioned for outperformance in the coming new bull market.”

JH: I look for companies actively drilling. I don’t waste my time with companies that don’t really have a game plan for building fundamentals and creating value for shareholders. You have to know the management team, and it has to have clear, set goals with news flow and guidelines.

TGR: What are some top stocks you’re watching that fit those criteria?

JH: Integra Gold Corp. (ICG:TSX.V; ICGQF:OTCQX) recently announced a major $14 million ($14M) investment from Eldorado Gold Corp. (ELD:TSX; EGO:NYSE). Integra is getting impressive, high-grade results from its current drill program. It is getting validation from a major mining company and major investors during a bear market. That’s exciting.

TGR: Could Integra be a takeout target?

JH: The validation from Eldorado, plus the increased funds to advance this project and continue making discoveries, makes me think Integra would be an attractive takeover target. As this company develops, it’s only a matter of time before a major wants to add this high-grade asset to its portfolio to get rid of some of the crap causing problems to the bottom line. We’re already seeing a number of major mining companies doing that. They’re getting rid of their uneconomic projects in risky jurisdictions and they’re looking for lower capital expenditure, high-grade, extremely economic, robust projects like Integra and Pershing Gold Corp. (PGLC:NASDAQ).

TGR: What makes Pershing attractive to a major?

JH: Pershing is continuing to drill at a record pace. It has a huge, strong treasury. It is fast-tracking a great project that is continuing to build value in Nevada. This is an exciting time because this state has been ignored due to the strength of the dollar. Most investors like the Canadian assets because they can get better margins if their costs are in Canadian dollars and their sales are in U.S. dollars. People thought the dollar was going to go higher if the Fed raised interest rates. Now that the dollar is beginning to turn over, that might reignite interest in Nevada gold mining.

Pershing Gold has a fully permitted mine and mill at Relief Canyon. It is getting exceptional results with four drills currently on the property. It has a great shareholder base. The largest shareholder is the billionaire Dr. Phillip Frost. Pershing has a strong treasury, and has newly uplisted to the NASDAQ with a share rollback. It has a clean balance sheet and an excellent share structure. It is positioned for outperformance in the coming new bull market.

Red Eagle Mining Corp. is in construction of an extremely high-grade, underground and robust economic mine.”

Another Nevada company, Corvus Gold Inc. (KOR:TSX), just received a $2M investment from Resource Capital Fund VI L.P. in a tough market. That tells you something about the credibility of exploration at the North Bullfrog project, located an hour’s drive from Las Vegas. Management came out with a preliminary economic assessment showing impressive numbers, but it’s trading at an all-time low. Corvus has Tocqueville Gold Fund, AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and Van Eck Associates Corp. as major shareholders. That is a lot of institutional capital in this company, which is led by Jeff Pontius, who has decades and decades of exploration experience leading AngloGold Ashanti’s gold exploration team in North America.

Staying in Nevada, NuLegacy Gold Corporation (NUG:TSX.V; NULGF:OTCPK) has earned into the Iceberg project with Barrick Gold Corp. (ABX:TSX; ABX:NYSE). It is right next to Barrick’s Goldrush discovery. NuLegacy has hit some impressive holes over the past few months. Barrick will have to decide by the end of the year whether to take this forward or stay a minority partner. Barrick has had a lot of problems in other areas. Its best mines are in the Cortez Trend in Nevada, where NuLegacy is. I think the best move is to secure those assets before a midtier swoops down and picks up that position. That’s an exciting project that has seen some results in Nevada.

TGR: Is there another company that is well positioned?

JH: Red Eagle Mining Corp. (RD:TSX.V) owns the Santa Rosa deposit near Medellin; it is the first mine that’s been permitted in Colombia in over 20 years, a significant announcement. Red Eagle is in construction of an extremely high-grade, underground and robust economic mine that is coming into production over the next 12–18 months. That is an exciting project that should be on the radar of investors.

TGR: Is the market taking notice of that announcement?

JH: Red Eagle has outperformed the juniors. It’s still holding up there near its 52-week highs, but it hasn’t broken out. Nothing in the entire sector on the development side has been breaking out yet. But this is one to watch.

TGR: Can you leave us with one more name to put on our radar?

JH: Carlisle Goldfields Ltd. (CGJ:TSX; CGJCF:OTCQX) just announced an exciting discovery at the Lynn Lake gold camp in Manitoba. Carlisle is partnered with Alamos Gold Inc. (AGI:TSX) to develop a feasibility study. Alamos may consider Carlisle a takeout target, especially as the junior mining sector turns around. One of the things that I like about Carlisle is very few juniors have a major company like Alamos operating and funding exploration and development and drilling. It is kind of getting a ride on the development from Alamos, which took over AuRico Gold Inc. (AUQ:TSX; AUQ:NYSE). I expect to see more progress in the next few months.

TGR: Based on the macro-picture you have painted for us, how are you adjusting your portfolio for the rest of 2015? What is your strategy?

JH: I’m continuing to build positions in high-quality companies. I think now is an excellent time, especially when companies are offering three- to five-year warrants and financings. For accredited investors who haven’t yet had exposure to the junior mining sectors, that is an opportunity to diversify out of stocks and bonds and general equities.

We are already beginning to see the beginning of a bottoming process in the junior miners and a breakdown of the stocks. If you have a three- to five-year window, there could be an exceptional amount of wealth created.

TGR: Thank you for your time, Jeb.

 

Jeb Handwerger is an author, speaker and founder of Gold Stock Trades. He studied engineering and mathematics at University of Buffalo and earned a master’s degree at Nova Southeastern University. In 2014, Jeb was the first to highlight the top two performers of the Best OTCQX 50. Handwerger began investing in junior mining equities in the late 90s, avoiding the dot-com crash. In early 2009, at the depth of the credit crisis, Handwerger began the Gold Stock Trades website for investors to become more aware of exciting developments in the mining and natural resource sector. He has remained active in pursuing his professional career in TV, film and theater. He has performed in numerous award-winning Broadway/off-Broadway productions, several well recognized feature films and dozens of worldwide commercials. In addition to finance and acting, Handwerger is passionate about education, and taught business to lower socioeconomic students from seventh grade to adults in the Broward County Public School System.

DISCLOSURE:
1) JT Long conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report and The Life Sciences Report, and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of Streetwise Reports: Integra Gold Corp., Red Eagle Mining Corp., Pershing Gold Corp. The companies mentioned in this interview were not involved in any aspect of the interview preparation or post-interview editing so the expert could speak independently about the sector. Streetwise Reports does not accept stock in exchange for its services.
3) Jeb Handwerger: I own, or my family owns, shares of the following companies mentioned in this interview: Integra Gold Corp., Red Eagle Mining Corp., Pershing Gold Corp., Carlisle Goldfields Ltd., NuLegacy Gold Corporation and Corvus Gold Inc. The following companies mentioned in this interview are advertisers on my website: Integra Gold Corp., Red Eagle Mining Corp., Pershing Gold Corp., Carlisle Goldfields Ltd., NuLegacy Gold Corporation and Corvus Gold Inc. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I determined and had final say over which companies would be included in the interview based on my research, understanding of the sector and interview theme. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.
5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

Saturday, October 3rd, 2015 Invest, News, Trade Comments Off on Fed Refuses To Raise Rates on Slowing Economy Boosting Gold and Junior Miners

Jeb Handwerger: “Early innings of a great lithium-ion battery boom”

Don’t buy things that are trending on Twitter or the front page of USA Today, warns Gold Stock Trades publisher Jeb Handwerger.

Buy them when they are unloved and on the back page. In this interview with The Energy Report, he singles out the unloved companies that could become media darlings in the coming boom in energy metals, uranium and—eventually—oil sectors. And he stresses the importance of the single most important commodity in the investing space ever—time.

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The Energy Report: The recent announcement that Tesla Motors Inc. (TSLA:NASDAQ) has signed an agreement to purchase lithium from Pure Energy Minerals Ltd. (PE:TSX.V) has created quite a bit of buzz in the mining world. How is this different than previous agreements with Bacanora Minerals Ltd. (BCN:TSX.V) and Rare Earth Minerals Plc (REM:LSE)?

Jeb Handwerger: The most significant difference is that this is in Nevada, where the Tesla gigafactory is being built. The battery and carmaker will need large quantities of lithium at a cheap price, and sourcing it in its backyard will be a smart move for the supply chain.

Years ago, I predicted the growth of the lithium-ion battery market and the need for a secure domestic supply of the critical materials used to make them. This is just the beginning. We’re in the early stages of a revolution in powering transportation and homes. This really is disruptive technology. Annual growth in the battery space could be around 20%, which means that demand could double every five years. These batteries make smartphones, laptops, tablets, electric cars and even solar energy practical.

While the TSX Venture Exchange has been crushed in 2015, our positions in junior lithium mining companies have continued to outperform in dramatic ways. The news out of Tesla to secure supply from Pure Energy Minerals is a huge validation for the concept of lithium in Nevada.

“Annual growth in the battery space could be around 20%, which means that demand could double every five years.”

In July, Pure Energy released an Inferred resource estimate of 816,000 metric tons of lithium carbonate equivalent on the Clayton Valley lithium brine project near Albemarle Corp.’s (ALB:NYSE) Silver Peak producing mine in Nevada. Now that Tesla has validated the project—and the investors that believed in the company—the company will be able to go to institutions and raise capital. There is still a lot more work to be done on the development, but Pure Energy is working with POSCO (PKX:NYSE) and Tenova Bateman to refine the plan. Like the gigafactory, production is probably two or three years out, and by that time, Pure Energy will probably have been bought out by a major like Albemarle. Once management comes out with a preliminary economic assessment (PEA) and shows the economics, this will be an irresistible takeout target. There is still a lot of upside there.

We believe this is the early innings of a great game in this lithium-ion battery market. This offtake agreement could affect the entire lithium space and, hopefully, spread to other junior mining companies.

TER: What other lithium mining companies do you think should be getting more attention in the wake of that deal?

JH: We’ve also followed the earlier-stage Dajin Resources Corp. (DJI:TSX.V; DJIFF:OTCPK), which has the Alkali Lake property and Teels Marsh property in Nevada. Both are earlier stage, but in the same area as Pure Energy. Dajin also has the Salinas Grandes in Argentina, but Argentina goes up and down. Nevada is always good. It is supportive of mining and a rule of law. That’s the ideal place if you’re looking to invest in mining.

A couple of years ago, I highlighted Western Lithium USA Corp. (WLC:TSX; WLCDF:OTCQX), which had a phenomenal run in 2014, even before Tesla chose Nevada. This company was No. 1 on the OTCQX in 2014. It has the Kings Valley deposit in northern Nevada, with a plan for production of 26,000 tonnes per year of lithium carbonate. Management raised $5 million ($5M) from major institutions and just merged with Lithium Americas Corp. (LAC:TSX; LHMAF:OTCQX) to create a significant lithium company.

TER: Lithium is just one of the ingredients in making a battery. Graphite is another. What does this deal mean for the graphite space? Are you anticipating more offtake agreements on the graphite side as well?

JH: I am. I think it’s very important to have a secure supply of graphite since the market continues to be flooded by the Chinese. It’s a critical mineral for lithium-ion batteries. Right now, the prices are extremely cheap because most of it is controlled by the Chinese, and the global economy has slowed down. But in the next three to five years, I expect more demand from the graphite sector in North America.

The key to success will be processing the graphite to meet the needs of the battery manufacturers. That is why I like Great Lakes Graphite Inc. (GLK:TSX.V; GLKIF:OTCPK; 8GL:FSE), which is developing a processing facility in Ontario at the Matheson project. It has secured the facility to process and to micronize graphite for specific industrial applications.

“In the next three to five years, I expect more demand from the graphite sector in North America.”

I also like Graphite One Resources Inc. (GPH:TSX.V), which has a massive deposit of large-flake, high-grade graphite in Alaska. The company is in the midst of a $1.5M financing that will enable it to quantify the economics of the processing operating costs, and take it closer to a PEA. It’s a potential secure supply of large-flake, high-grade graphite located in the U.S. that would be a natural fit for Tesla’s gigafactory.

TER: You also follow the uranium market. Are you more optimistic about prices now that Japan has announced it is restarting nuclear reactors?

JH: There will be a rebound in the uranium market, possibly within weeks. The reactor restarts in Japan will be a major turnaround for the sector. Japan was a possible seller of uranium over the past few years. It is going to become a buyer once again. China will soon announce major plans to fight pollution and build out its infrastructure, which will include building major nuclear power plants at a record pace. India is also committed to nuclear. The uranium sector must not be ignored.

There is going to be huge growth in the Athabasca Basin, which has been highlighted recently by the consolidation of Denison Mines Corp.’s (DML:TSX; DNN:NYSE.MKT) high-grade Wheeler River project on the east side of the basin with the massive Patterson Lake South (PLS) discovery controlled by Fission Uranium Corp. (FCU:TSX). That merger is going to create a new Denison, which is a potential blue chip company. Denison has been around for a long time, but now it can boast the lowest cost uranium projects in the world. When uranium prices turn around, Denison, which is trading now at pennies, could be trading at dollars and maybe tens of dollars.

TER: What juniors in the Athabasca could benefit from the scenario you describe?

JH: I’m watching the Fission 3.0 Corp. (FUU:TSX.V; FSIOF:OTC) group closely. This management team is developing a basket of exploration projects in the basin. One of the projects, Clearwater, is partnered with a company called Canex Energy (CVE:CSC), which is right next to PLS, and it has a drill hole only 330 meters away that Fission drilled. It seems that the anomaly goes right onto Canex’s Clearwater property. That’s one project that I’m excited about.

TER: You highlighted the increasing M&A activity in uranium surrounding Fission and Denison. What other activity is going on in the uranium space?

JH: The trend of the industry is to look for low-cost production that can make money even during periods of low uranium prices. I recently bought Uranium Resources Inc. (URRE:NASDAQ) as I like its recently announced merger with Anatolia Energy Corp. (AEK:ASX), a near-term, lower cost, in-situ recovery deposit in Turkey. There are huge cost savings and synergies between Uranium Resources and Anatolia, which could lead to improving fundamentals post-merger. Turkey has a long history of mining with many major Western producers in the metals industry. The country has eight nuclear plants under construction, and Anatolia’s Temrezli is the only advanced uranium asset with a prefeasibility study showing uranium cash costs around $30/pound, putting the asset in the lowest cost quartile. Uranium Resources’ largest shareholder, the Resource Capital Fund, recently announced its public support for the merger. The cost savings, personnel and synergies of the merger are too great to ignore. I believe the combined entity could fast-track low-cost uranium production, as it will be listed on both the U.S. and Australian exchanges, providing excellent visibility, liquidity and access to mine finance institutions.

“The lithium-ion battery could change how we produce and store energy, just as the shale revolution changed the trajectory of the oil sector.”

I also bought Plateau Uranium Inc. (PLU:TSX.V) after its recent share consolidation and name change. The company is working on an updated PEA on its large resource at the Macusani Plateau in mining-friendly Peru. With less than 41 million shares outstanding, I believe Plateau is in a position to possibly make impressive gains as the uranium mining market recovers.

TER: Where does oil fit into your risk assessment for the future of energy investing?

JH: This recent crash of oil from $100+ per barrel ($100+/bbl) to low-$40s/bbl in such a quick span has been a major crash. This crash may have been artificially manipulated to move lower by the shorts who want to take away market share from the U.S. and Canada. We haven’t invested in oil in years, but these crashes create huge opportunities for longer-term investors. Oil is not going to stay at these depressed levels. The Federal Reserve didn’t raise interest rates because it knows the global economy is in bad shape, and that could be a good thing for oil as governments around the world start injecting liquidity into the system.

TER: How are you approaching oil mining companies as an investment?

JH: I look for companies that have a strong shareholder base, lots of cash, no debt and are looking to get back into the oil business. They will be able to pick up assets for pennies on the dollar. Lithium in Nevada is big now, but a couple of years ago, these companies were trading for literally pennies. Right now, the Athabasca Basin stocks are trading at pennies, but two years from now, it’s going to be the buzz. That’s the way these markets work.

TER: Give me an example on the oil side of a company that could take advantage of this opportunity.

JH: One that I like because it has no debt and lots of cash and recently made acquisitions is a small company called Jericho Oil Corp. (JCO:TSX.V). I’m hoping that it can announce even more acquisitions, because as time goes on, these companies get more and more distressed. So if you have cash, you can buy these projects that other people put millions of dollars’ worth of work into. You don’t even have to drill. You just get it pretty much given to you for a song. The balance sheet and management team are worth watching.

TER: What words of wisdom do you have for those who are curious about the energy metals or the energy space?

JH: Don’t get caught up buying when it’s all over Twitter and USA Today, and it’s overbought. Look for things with good fundamentals that are trading for pennies, and then patiently wait.

There’s a huge amount of growth in whole new industries that people don’t even realize. At the turn of the century, no one thought the internal combustion engine would ever replace the horse and buggy. But it changed the entire 20th century. The lithium-ion battery could change how we produce and store energy, just as the shale revolution changed the trajectory of the oil sector. The Athabasca Basin could one day become the Saudi Arabia of the 21st century. You have to think about the megatrends first and then invest accordingly. And be patient. As commodity investors, realize that cycles take time to develop. Nevertheless, it’s better to be early.

Time is critical. It’s the most valuable commodity of all, so don’t waste it. Live every day to the maximum, because every day is a blessing.

TER: Thank you for your thoughts.

Jeb Handwerger is an author, speaker and founder of Gold Stock Trades. He studied engineering and mathematics at University of Buffalo and earned a Master’s degree at Nova Southeastern University. After teaching technical analysis to professionals in South Florida for over seven years, Handwerger began a daily newsletter, which grew to include thousands of readers from over 40 nations. In 2014, Handwerger highlighted the two top stocks on the Best OTCQX 50.

DISCLOSURE:
1) JT Long conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report and The Life Sciences Report and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of Streetwise Reports: Fission Uranium Corp. The companies mentioned in this interview were not involved in any aspect of the interview preparation or post-interview editing so the expert could speak independently about the sector. Streetwise Reports does not accept stock in exchange for its services.
3) Jeb Handwerger: I own, or my family owns, shares of the following companies mentioned in this interview: Fission Uranium Corp., Great Lakes Graphite Inc., Graphite One Resources Inc., Western Lithium USA Corp., Fission 3.0 Corp., Canex Energy, Uranium Resources Inc., Plateau Uranium Inc., Energy Fuels Inc., Jericho Oil Corp., Denison Mines Corp., Dajin Resource Corp., Pure Energy Minerals Ltd. I personally am, or my family is, paid by the following companies mentioned in this interview: None. My company is paid by the following companies mentioned in this interview, as they are advertisers on my website: Great Lakes Graphite Inc., Graphite One Resources Inc., Fission 3.0 Corp., Jericho Oil Corp., Dajin Resources Corp., Pure Energy Minerals Ltd., Uranium Resources Inc., Plateau Uranium Inc. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I determined and had final say over which companies would be included in the interview based on my research, understanding of the sector and interview theme. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.
5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

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Friday, September 25th, 2015 Invest, News, Trade Comments Off on Jeb Handwerger: “Early innings of a great lithium-ion battery boom”

Once in a Lifetime Buying Opportunity in Junior Miners Might Not Last For Too Much Longer

As the summer comes to an end, investors return to their offices and trading volumes tend to pick up after Labor Day.  I expect that many are realizing the markets have considerably changed since May.  Global equity markets are all off led by the price decline in the S&P500 which has broken its four year uptrend forming a technically bearish death cross.  The name of the game right now is capital preservation and plunge protection. Look for rallies in equities to be short lived.

The Fed is expected to raise interest rates for the first time in many years on September 17th.  However, there is growing uncertainty that will not occur especially due to the recent equity market volatility.  Many other major economies such as China are announcing stimulus plans to prevent a recession.  As the global stock markets rolls over on fear of a US Rate increase, it could boost the value in the beaten down precious metals and commodities as they may be seen as a safe haven to protect against a plunge and preserve capital.

Here are ten reasons why I believe precious metals, commodities and especially junior miners may be the best place to be over the next 3-5 years.  The bottoming process for the juniors after a seven year decline may be ending in the next few months as they once again come back into favor for the following ten reasons.

1)Junior Miners are now even more cheaper than they were in the late nineties when gold was below $275 an ounce.  This might be a once in a lifetime buying opportunity that may not last for much longer.  The safest havens during periods of deleveraging are the assets already trading near liquidation levels.

2)The stock market and US treasury market is extremely overvalued and has been going straight up for more than four years boosted artificially by quantitative easing and government stimulus.  The odds for a bear market have been extreme for many months.  Do not be surprised of a 30-50% possible decline as the momentum traders are automatically stopped out.

3)Many of the momentum and high frequency traders left precious metals and chased stocks higher over the past few years since 2011.  That trend as evidenced by the Dow-Gold Ratio may be changing.  As soon as that upward trend in equities was broken we saw a massive shakeout.

4)The bear market in commodities really began during the US credit crisis and has lasted close to seven years.  This is one of the longer declines in terms of length duration.  Over the years there has been a drastic reduction in mineral exploration and development due to investors chasing the latest fads in social media and biotech.  This could create a major shortage of mineral supplies going forward over the next decade.

5)Precious metals and commodities provide diversification to stocks and bonds.  One must have a portfolio of hard asset investments but they must be chosen wisely.  One must be a good stock picker and investigate the management team that it has the best interest of shareholders in mind.

6)Investors may be nervous of credit risk and want tangible assets in the form of precious metals and commodities.  The prices of hard assets unlike so many equities can’t disappear. Rising interest rates and a slowing economy could actually boost commodities as it did in the 1970′s.

7)The majority of investors are usually wrong and for the first time that I can ever remember there is a net short position on gold.  Just like a few months ago I said don’t be surprised to see huge moves to the downside on US bonds and equities, I also expect huge moves on the upside for gold.  It may be extreme but I feel the headlines could change from “Record Down Day for The Dow” to “Largest Percentage Daily Increase in Gold Price” as investors once again seek out safe havens.

8)Mining stocks are trading at historically discounted valuation and generational lows.  This could be one of the best contrarian opportunities of a lifetime especially for younger investors who have not yet positioned their portfolios to the sector.  Look at the recent moves by Soros, Icahn and Drunkenmiller to increase exposure to commodities.

9)Quantitative easing should continue across the Globe to prevent deflation.  It may not be successful.  The Banks can print but they can’t make more commodities out of thin air.

10)The commodities relationship to stocks and financial assets is negatively correlated meaning they can go up when other assets deflate.

Top Stocks To Watch

1) Since July 21, 2015 when we featured the article on Nevada lithium developers Western Lithium (WLC.TO), Pure Energy (PE.V or HMGLF) and Dajin (DJI.V or DJIFF) more attention has come into this sector as Tesla (TSLA) CEO Elon Musk hinted to the mainstream media that Tesla is carefully looking at lithium miners in Nevada.

I have been researching and buying lithium developers in Nevada for years.  Western Lithium was one of the top performers in 2014 on the entire OTCQX®, could Pure Energy and Dajin be the top performers in 2015?  Remember, the markets are volatile so don’t get greedy when making doubles or triples in this market to lock in partial profits to be redeployed on pullbacks.

2)Equitas Resources (EQT.V) is beginning drilling up on the Garland Property near Voisey’s Bay in Labrador and has almost doubled since I first highlighted it in late July.  Its closing in on a new 6 month high as investors are excited by the interest the company is generating for this drilling program.  Its trading excellent volume and getting a lot of financial interest which is rare for an early stage explorer.  See this latest interview with Equitas (EQT.V) CEO Kyler Hardy by clicking here…

3)Pershing Gold (PGLC) announced the completion of a NI43-101 technical report on their Relief Canyon Deposit with results through early 2015.  Since May of 2015 they have been drilling with four rigs on site and are planning to complete 100 drill holes.  This drilling could expand the deposit.  Its important to remember that they have some significant shareholder support led by billionaire Dr. Phil Frost.  Pershing recently uplisted to the NASDAQ Market. See my interview with Pershing Gold (PGLC) CEO Steve Alfers by clicking here…

4)Corvus Gold (KOR.TO or CORVF) recently announced that Resource Capital Fund (RCF) put in a $2 million CAD investment which will allow Corvus to increase exploration efforts at North Bullfrog in Nevada. RCF joins Toqueville, Anglogold and Van Eck as large shareholders.  This is a huge vote of confidence on the project in a challenging market which may testify to what I have believed for a long time that Corvus is onto what could be a whole new gold district in Nevada.  See my recent interview with Corvus Gold CEO Jeff Pontius by clicking here…

5)Carlisle Gold (CGJ.TO or CGJCF) has just announced that Alamos Gold (AGI) CFO Jamie Porter has joined the Board. Alamos acquired Aurico in a major deal and with it the joint venture with Carlisle.  This joint venture will work towards a feasibility study on the Lynn Lake Gold Camp which may be one of the highest grade and most advanced open pit projects in Manitoba.  I would not be surprised to see a takeout of Carlisle within the next 12 months.  See my interview with Carlisle Gold (CGJ.TO or CGJCF) CEO Abraham Drost by clicking here…

Disclosure: I own PE.V, DJI.V, EQT.V, KOR.TO and CGJ.TO.  They are all website sponsors.  Please be aware of my conflict of interest as I may benefit if the price of these equities rise.  Please do your own due diligence.

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Wednesday, September 9th, 2015 Invest, News, Trade Comments Off on Once in a Lifetime Buying Opportunity in Junior Miners Might Not Last For Too Much Longer

Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?

Current convulsions in the global markets is coming as no surprise to my readers.  I was greatly concerned of the overvaluations in the US equity markets (SPY) despite warning signs from the commodity prices that have hit record lows indicating not all is well with the world economy.  Gains in US equities (DIA) have been focused on only a handful of momentum growth stocks.  A lot of these momentum hedge funds get stopped out on any decline.  They may need to look for areas to protect profits from the past five year bull market.  The downside could be significant as there have not been any meaningful corrections in many years.  I would not be surprised of another 20-40% on the downside for the overvalued large caps.

Despite equity markets hitting new highs many of the sectors were already in decline.  This historic crash over the past week has been fueled by one of the most overbought markets that I can remember since the dot com bust.  After the dot com bust investors sought out value in the deeply discounted commodity sector and junior miners (GDXJ).  I expect history may not repeat but it should mimic.  After the dot com bust, junior mining was the place to be.

As the junior miners bottom I expect the upward volatility to be at least equal and opposite to the recent five year decline originating with the deleveraging of the credit crisis.  Stocks have been outperforming commodities over the past five years reaching divergences not seen since the dot com bubble.  Something was bound to turn and it may have been China’s entry into massive currency devaluation, which will handcuff the Fed from raising interest rates.

The US dollar (UUP) looks like it has broken down from a head and shoulders top.  Investors may begin factoring in QE4 the exact opposite of interest rate increases to protect from a massive deleveraging.  The sectors hardest hit will be the ones most overvalued with high PE’s, debt and no earning.

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.

Don’t be surprised to see some attempts to revive this market, however such volatility as we have witnessed usually takes a long time to digest.   For years now it looks as Central Banks solved the world’s problems, now we may see the reality that it was propped up by easy money.  These current currency wars could be followed by trade and commodity conflicts where governments look to take control of strategic assets.  Global markets are being rocked by currency devaluations which could lead to soaring interest rates and a US bond market (TLT) crash.

Capital preservation is critical in times like this and once again we look for the ultimate safe havens in metals and mining trading at record discount valuations.  Real assets backed by wealth in the earth may be the place to be as overbought markets fueled by easy money go bust.  Learn from the history of civilization where gold has always maintained its value as currencies crumble.  Be careful of gold backed etf’s such as GLD and SLV.  I believe in looking for the best junior mining assets controlled in safe jurisdictions by reliable management teams.  This is the area where we can once again see ten fold gains.

Here are some of my current holdings who are also featured companies which I believe are leading the pack.

1)Integra Gold is Rapidly Developing Quebec’s Top Gold Project

2)Carlisle Gold Owns One Of the Highest Grade-Open Pit Gold Mines in Canada

3)Red Eagle Mining Commencing Construction on High Grade Gold Deposit in Colombia

4)Corvus Gold Announces New PEA Incorporating High Grade Yellowjacket Discovery

5)Pershing Gold Uplisting To Nasdaq Could Open Doors for Project Financing

6)NuLegacy Gold Hitting High Grade Gold on Cortez Trend in Nevada

7)International Tower Hill Mines Optimizing World Class Gold Resource in Alaska

We may be entering a time period which once again favors gold and silver junior miners over large cap stocks.  These links above may be a good starting point to listen to these stories and begin further due diligence.

Disclosure: I own all these stocks and they are all website sponsors.  Please do your own due diligence.

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Wednesday, August 26th, 2015 Invest, News, Trade Comments Off on Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?

Jeb Handwerger, “Prices for rare earths could be making a comeback.”

Commodities have seen a broad decline, but prices for rare-earth elements are poised for a recovery.

That may come as a surprise following the bankruptcy filing by U.S. rare-earth miner and producer Molycorp Inc. earlier this year, and given the uncertainty surrounding metals demand and the economy in China, a country which controls nearly all of the world’s rare-earth market.

But “don’t ignore the rare-earth sector because of low rare-earth prices and the failure of the Western producers,” Jeb Handwerger.

“Eventually, the Chinese producers will be unable to supply the world with cheap rare earths,” he said. “Demand is rising rapidly, especially in military technologies, clean energy and smartphones/tablets” and supply risks remain.

See the full interview with Jeb Handwerger entitled, “Rare-earth elements are poised for a recovery” on Marketwatch.com.

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Thursday, August 20th, 2015 Invest, News, Trade Comments Off on Jeb Handwerger, “Prices for rare earths could be making a comeback.”

Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown

In 2014, my readers were blessed in seeing two of our junior mining equities soar higher than the entire small cap market.  Now in 2015 despite the worst bear market in junior gold mining history, once again we have seen the great out-performance of two of our select junior gold companies.  Its easy to pick outperforming junior miners in a bull market, its much more challenging to find the winners in a historic bear market when the category 5 hurricane winds are blowing against you trying to knock you down.  Be careful out there and stick with the stock pickers who can pick winners in a bad market. Take a look at these two junior gold miners on the TSX Venture able to post positive gains despite a record decline in the junior sector.

Observe Integra Gold (ICG.V or ICGQF) which I have been highlighting for over a year now as a potential takeout target.  Today Eldorado Gold (EGO) invested $14.6 million into Integra for a 15% interest at $.28.  This helps Integra in a few major ways.  The first most important thing is that is strengthens Integra’s treasury and balance sheet.  They will have $27 million in cash. Secondly, Integra will now be in a position to expand drilling and increase the size of the high grade Triangle Zone.    Finally, Integra will now have a major $4 billion market cap NYSE gold producer as a shareholder increasing the credibility and visibility of the project to larger institutional investors possibly in the US.

Eldorado must like the upside potential of this project which continues to hit high grade intersections.  I’m looking forward to the fall and winter for Integra as they are planning a 100k meter drilling campaign with ten drill rigs.  This is quite different than other juniors struggling to finance and might be one of the most aggressive exploration programs I can remember in a long time by a junior.

In addition, Eldorado will have one member on the Technical Committee.  If they go up to 19% ownership then they will get a Board seat.

Eldorado has operations all over the world but may be looking to derisk their assets by diversifying into the Val D’Or District in mining friendly Quebec.

See the full news release on Eldorado Gold’s (EGO) investment in Integra Gold (ICG.V or ICGQF) by clicking here…

See a recent interview with Integra Chairman George Salamis below.

Also notice the relative strength of Red Eagle (RD.V or RDEMF) which I have been a long term supporter.  They just announced the commencement of construction at the fully permitted and financed San Ramon Gold Mine.  Production is expected in the second half of 2016.  This management team led by Ian Slater and Bob Bell has done an unbelievable job in an incredibly hard gold market.  Key lesson for investors is to investigate management’s capability.  Between Ian Slater’s ability to finance the mine and Bob Bell’s mine building experience Red Eagle is positioned to be the largest producing gold producer in Colombia.  The project is high grade with low costs and technical risks.  The upside is large as well as they have a 100 sq. km land package which is largely unexplored territory.

See the full news release on Red Eagle’s (RD.V or RDEMF) commencement of construction at San Ramon by clicking here…

See a recent interview with Red Eagle (RD.V or RDEMF) CEO Ian Slater below.

Disclosure: I have a conflict of interest as I own Integra and Red Eagle and they are both website sponsors.  I personally benefit if the share price moves higher.  Please do your own due diligence and consult a financial advisor as junior mining stocks are extremely speculative and volatile.

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Wednesday, August 19th, 2015 Invest, News, Trade Comments Off on Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown

Lithium Ion Battery Growth Boosting These Junior Miners Seeing High Volume Breakouts

Lithium and graphite are two of the most important materials for lithium ion batteries which have seen a huge increase in consumption over the past decade.  Annual growth is around 20% which means demand doubles every five years at this point.  The main driver is the increase in use of smartphones, laptops and tablets in addition to the increasing popularity of Tesla’s electric cars.

While the TSX Venture has been crushed in 2015. Our positions in graphite and lithium continue to outperform as shown by the chart above.

Increasing volume and price rises have recently come into some of our featured companies…

1)News today out of Dajin Resources (DJI.V or DJIFF) from their Alkali Lake Property are results from a gravity survey which showed a deep closed basin of 4000 ft.  This means the property has the potential to be an additional source of lithium brine.  What is important about Alkali Lake is that it is just 12km from Albemarle (ALB) Lithium Mine…North America’s only producing brine based mine.

2)Dajin is trying to follow in the footsteps of  the more advanced Pure Energy Minerals (PE.V or HMGLF) which has seen a huge boost of interest after the NI 43-101 Inferred Resource.  Pure Energy and Dajin are located in the same prospective Clayton Valley area near Albemarle’s Silver Peak Lithium Mine.  This area should become the source of large amounts of cheap lithium to Tesla’s Gigafactory.  Pure Energy’s project has nice size of 816k metric tonnes of Lithium Carbonate Equivalent (LCE) in the inferred category.  I am now quite excited for Pure Energy to report on some of the economics of converting brine to lithium for batteries.  I know management is working with major technological partners such as Tenova Bateman and South Korea’s POSCO.

3)Great Lakes Graphite (GLK.V)  is recommissioning a Micronization Facility in Ontario and may have some near term opportunities to sell micronized graphite.  Graphite needs to be ground into a fine powder to a standard microscopic level for end users in many different industries from lubricants to batteries.  Great Lakes is already sourcing flake graphite material not from its own properties and is ready to start recommissioning the Matheson Micronization Facility as they have already closed on the major financing.  The plant is adjacent to a major highway and rail.  Now with the financing in place I hope to hear news that the plant could restart operations in the near term.  There are still many obstacles and risks in any startup, but it is quite positive that this little company has advanced this far building a technical and marketing team ready to supply a market growing in demand.  Great Lakes is different that the average graphite company in that they are focused on near term profitability and cash flow through graphite processing, which then can give it the financial strength to develop their own graphite deposits.

See my recent interview with Great Lakes CEO Paul Gorman by clicking here…

 

Disclosure: I own PE,DJI and GLK.  They are all website sponsors. Please do your own due diligence.

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Friday, August 14th, 2015 Invest, News, Trade Comments Off on Lithium Ion Battery Growth Boosting These Junior Miners Seeing High Volume Breakouts

Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?

The junior miners, commodity and precious metals sectors could be on the verge of a major bottom.  I know that is a contrarian opinion as the majority believes that the rally in precious metals, junior miners and commodities is just a short covering dead cat bounce.  However, the technicals are showing the signs of a major bottom reversal in the junior gold miners etf (GDXJ) as I indicated in this August 3rd article.

On Friday July 24th, the GDXJ made a bullish engulfing reversal on major volume.  Then eleven days later a major follow through occurred on high volume.  The news that drove interest was China devaluing its currency.  The mainstream media and majority of  pundits were claiming currency wars were over as precious metals were discarded.  I disagreed and maintained that we would see a bottom in our real assets.

Now this Yuan devaluation could start the next round of competitive currency devaluations and the beginning of inflation.  The Fed may be reluctant to raise interest rates as the strong US dollar curbs growth and makes it more challenging for the US Government to pay back its record amount of debt.  This may be the perfect storm for precious metals to once again take center stage and eventually breakthrough 2011 highs at $1900 USD.

Attention must also be paid to the uranium sector as Japan restarts nuclear reactors today.  For years, the majority of pundits said nuclear is dead as Japan will never turn back on the reactors.  I disagreed and knew that Japan can’t rely on imported fossil fuels if they want to compete in the global economy.  This should push higher uranium mining stocks (URA) and some of our favorite junior miners.

Lots of M&A activity is taking place.  Just look at Uranerz-Energy Fuels (UUUU) Merger, Denison (DNN) and Fission (FCUUF) arrangement and Uranium Resources (URRE) and Anatolia merger.  The sector shows signs of getting leaner, meaner and ready to make a major run.  Congrats to the patient long term investors who could see major gains over the next few years.

In my premium service I highlight some of these smaller stories with great potential.  I have been blessed in 2014 during the bear market to identify the two best performers on the OTCQX in 2014.

I believe some of these links to recent news items and CEO interviews in gold and uranium should grab some attention as sentiment recovers.

Here are links to some of my featured companies right now which I own and are current website sponsors.  I try to choose what I believe are the best situations for my subscribers.

Gold

1)Hitting high grade gold on Cortez Trend in Nevada next to Barrick’s Goldrush Discovery.

2)New Uplisting to Nasdaq, Increased Institutional Coverage and Great Results From Nevada.

3)New Preliminary Economic Assessment using conservative $900 an ounce shows robust economics.

4)New High Grade gold mine in Colombia commencing construction.

5)Junior holds one of the highest grade open pit gold mines in Canada.

6)Quebec’s top development gold project could soar in next bull cycle.

7)Huge Alaska Gold Deposit provides huge leverage to gold price. Management working on bringing costs down.

Here are some of our top Uranium links.

1)By far one of the best exploration team in the Uranium Sector with top track record.

2)First three holes of summer drill program return encouraging results in Athabasca Basin.

3)Denison and Fission executed definitive agreement for merger.

4)New Merger could produce near term, low cost uranium producer.

5)Updated Preliminary Economic Assessment coming out this Quarter on huge uranium resource in Peru.

Disclosure: I have a conflict of interest as I own these stocks and they are current website sponsors.  I would benefit if the stock price rises.

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Wednesday, August 12th, 2015 Invest, News, Trade Comments Off on Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?

Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again

(Originally published as a Premium Report from July 24, 2015)

This bear market has taken a toll on many of us who are long term believers in commodities and the junior mining sector.  There is extreme negativity and capitulation as prices reach historic lows.

Do not be misdirected and sell at the bottom irrationally.  This is not the time to walk away, panic and run for the hills thinking the world is ending.  The world continues to demand basic necessities such as shelter, bridges, tunnels and pipelines.

I remember when I started in this sector in the late 90’s tech stocks were worth hundreds of dollars a share and no one would touch gold and oil.  It is like that today as investors bid up tech stocks with no revenues to nosebleed levels, while the largest gold producers continue to nosedive.

The worse things were the better they will get.  This market has led to most companies going inactive.  This will dry up potential supply of metals planting the seeds of the next boom.  Silence and inactivity is death in the junior sector.  Continue to look for companies raising capital and beginning to drill.  A new discovery like the famous Voisey’s Bay discovery could transform our beaten down sector.

One story which could be exciting is Equitas Resources (EQT.V) who just raised over $500,000 to drill the Garland Property near Voisey’s Bay, one of the largest and highest grade nickel deposits in the world.  Nickel is ready to move higher as supply is limited coming from risky jurisdictions such as Indonesia, Russia and the Philippines.

The potential projects that can come online are very small.  Equitas believes they have identified nine nickel copper sulphide anomalies from a completed VTEM survey and could be ready to drill the property in the near term.  The property is located in the Voisey’s Bay area which is famous for the huge discovery made by Diamondfields back in the 90′s.  Because of the volatile resource markets much of that area has not been explored using modern methods.

The Equitas exploration team is led by Everatt Makela who has over 3 decades of exploration experience.  He came out of retirement after working with Inco and Vale because he is excited about the potential of the Voisey’s Bay area and the Garland property.

China’s state owned Zijin Mining is a shareholder and is represented on the board along with the new addition of Salman Partners Senior Mining Analyst Ray Goldie.  Zijin is the leading gold producer and second largest copper producer in China.

Insiders control over 50% of the stock and the float is still relatively small under 60 million shares.  Look for a break of the recent four month downtrend at $.09.

The company should begin drilling soon which could cause some upward momentum.  Look for a bullish MACD crossover as their has been some nice accumulation over the past four months during a weak market.  Notice the strong support at 200 day moving average.

For more questions on Equitas (EQT.V) visit the website at http://www.equitasresources.com or contact:

Kyler Hardy
President and Director
khardy@equitasresources.com
m. 1.250.877.1394

Sean A. Kingsley
Manager, Corporate Communications   skingsley@equitasresources.com   o. 1.604.681.1568

Disclosure: I have a conflict of interest. I own shares and warrants as I recently participated in the latest PP.  Equitas is a website sponsor. I would benefit if the stock price rises. Please do your own due diligence as this is an early stage exploration stock which means there are many risks.  Please read about those risks in the company filings on Sedar.com.

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Tuesday, August 11th, 2015 Invest, News, Trade Comments Off on Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again

Ready For The New Bull Market in The Junior Mining Sector?

Right now, the investment community regards commodities and junior miners as the ignored red headed stepchild as they have  been in a downtrend for more than seven years.  The TSX Venture Exchange is hitting all time lows as this bear market becomes the most devastating in history.

Whenever you mention gold and silver stocks, investors relate to the wipe out in many stocks which includes not just the penny junior but the leaders like Barrick (ABX), Newmont (NEM), Yamana (AUY) and Goldcorp (GG).  Instead the talk on the street is the high flying tech sector such as Apple (AAPL), Facebook (FB) and Google (GOOG).  Its reaching bubble territory.  Apple alone is worth four times the entire mining sector put together.  The divergence between tech stocks and mining stocks has once again reached dot com proportions.  History may not repeat itself but it tends to be similar.

What we are seeing right now with a high priced tech sector and the extremely discounted miners is comparable to the major cycle low at the turn of the millennium.  Right before Y2K the dot com’s were reaching a bubble while the miners were completely ignored.  We then witnessed a major expansion in the mineral sector for seven years from 2000-2008 while equities underperformed followed by a seven year contraction from 2008-2015 where the tech stocks have outperformed the commodities from 2008-2015.

It is possible we are once again at or near the turning point or bottom in the junior mining sector and near a top in the tech sector.  Only a handful of the tech high flyers have pushed the equities higher.  Already the transports and utilities have been under-performing.  It may be wise to hedge gains made in the S&P500 and Nasdaq and increase accumulation of precious metals and the junior miners near historic lows.  Remember the greatest gains are made in the early stage of a bull market.  Early stages of bull markets come after the previous bear market capitulation.

July 24, 2015 may have marked an interim low on the GDXJ as it experienced a classic bullish engulfing reversal pattern on high volume following a major capitulation.   Since that low, support has come into the GDXJ. If its the beginning of the rally, follow through should occur by the end of this week ending August 7th.  I am still cautious until I see some additional buying as the precious metals rallies have been fake outs in the past.  In order to confirm the interim low I would like to see some increased buying before the end of this week.

Please stay tuned to my premium service which will be monitoring technical developments and which recently highlighted these three stocks last Tuesday that are bouncing higher on major volume.

1)I recently highlighted Pure Energy Minerals (PE.V or HMGLF) who just announced an NI 43-101 Inferred Resource on Clayton Valley of 816,000 Lithium Carbonate Equivalent.

Lithium is the one bright area of the resource space as the price has been rising and on Tesla (TSLA) building a gigafactory in Nevada.  Pure Energy has 8000 acres around the only producing lithium mine in North America.  Its a brine deposit which is the lowest cost type of lithium to process and its only three hour drive from the gigafactory.

Please see full press release on the new resource estimate by clicking on the following link.

Also check out the article entitled, “Buffett, Musk to spark a lithium boom” published in the USA Today.

2)I am a shareholder of Fission (FCUUF) and believe the merger with Denison (DNN) could benefit the entire Athabasca Basin.  M&A is the name of the game in uranium.  Notice the recent merger with Energy Fuels (UUUU) and Uranerz and the proposed merger of Fission with Denison and another merger of Uranium Resources (URRE) and Anatolia.  The combined larger entities could attract strategic/institutional investors which could open the capital markets to improved exploration and development budgets.  In this bear market companies need to consolidate in order to cut costs and attract major institutional interest.

Now Denison with Fission will have the best portfolio of high grade advanced uranium assets in the Basin plus free cash flow from Denison’s toll milling agreements and management fees with Uranium Participation Corp (URPTF).   Fission shareholder’s will have a major US listing on the NYSE MKT with Denison and a better chance of attracting more funds who have market cap and listing requirements.

See the news release of the definitive arrangement between Denison and Fission:

Despite all this merger chatter, Fission is hitting and growing PLS by leaps and bounds with just outstanding results.
See the news release which shows seven new high grade holes:

Also keep a close eye on Fission 3 (FISOF) and Canex (CSC.V) who have just begun drilling at Clearwater which is adjacent to PLS and is by far one of the most prospective targets of Fission 3′s immense portfolio in the Basin.  This is high risk but the gains can be huge as we witnessed with discoveries in the Basin in the past.  Fission’s famous award winning geologist Ross McElroy believes Clearwater may be one of the most prospective targets in Fission 3′s portfolio.

See the full news release from Fission 3 and Canex by clicking on the following link:

3)Pershing Gold (PGLC) recently rolled back its shares and uplisted to the Nasdaq.  Quite often after such moves some of the penny stock players sell their shares.  It appears there was a high volume reversal just a few days ago.  It may be coming off the bottom.  It has one of the most advanced mining projects with a permitted mill in Pershing County Nevada next to some of the big boys such as Coeur (CDE).  They have been hitting amazing high grades and the CEO is former Franco Nevada.  He has made major deals with the largest mining companies in the world in the past.
Listen to my last interview with Pershing’s CEO Steve Alfers by clicking on the following link:

Disclosure: I own Pure Energy, Fission, Fission 3, Canex, Uranium Resources and Pershing Gold. Pure Energy, Fission 3, Canex,, Uranium Resources and Pershing Gold are all website sponsors.

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

Tuesday, August 4th, 2015 Invest, News, Trade Comments Off on Ready For The New Bull Market in The Junior Mining Sector?

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