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Massive scale "Drill/ exploration plays" - Some look cheap now

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Massive scale "Drill/ exploration plays" - Some look cheap now

Tax-related selling is driving mining and exploration stocks lower.

There now seem to be many bargains in the market now

Here's GDX - the etf for Gold Miners

GDX : ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $21.69 /52wk range: $18.58 to 25.71 /

GDXJ : .. All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $30.43 /52wk range: $27.37 to 43.01 /

GDX could be On or Near key support - just under $21.50 watch that 610d MA (a fibonacci number that often "works")

Seasonally speaking. We have seen important lows in December the last two years

Exploration stocks are cheap too - they tend to trade with a strong correlation to Gold mining stocks - unless they are rising fast on

good drill results, or are sliding because they need to raise money when demand for their shares is weak.

Global X Gold Explorers ETF : "Relatively cheap" now maybe?
Ratio: GOES -to.GDX
GOEX -vs.GDX ... update: GOEX: $20.59 vs.18.23-30.23 / GDX: $21.69 vs.$18.58 to 25.71 / R-94.9

Some Exploration companies hold massive amounts of exploration ground, and have very promising targets.

If they implement a drilling program, and get good results, the deposit can grow and grow as positive drill results come in.


Here's a Copper exploration company which made a huge return as it made a series of positive drill results

SOLG.L / SolGold (ex.Solomon Gold) .... : 2-yrs : 12-mos: // 12 mos Range 21.19 to 46.81 /



Low-Jun.2016: GBP 2.88 / High: GBP 46.81 -- Low to High was 16.2 Times ! in just 11 months.

During the same timeframe, GDX went from $25.96 to $22.94, that's a slide of -11.6%.


Date----- : F/X : SOLG : xUSD : usdS : Solg/G : GOEX : -GDX : G/GDX
06/10/16 : GBP 02.88 : $1.426 : $4.11 : R0.11 : $36.63 : $25.96 : R1.41
05/26/17 : GBP 46.50 : $1.280 : 59.52 : R2.73 : $21.83 : $22.94 : R.952
Change- : R : x16.15 :-10.24%: x14.5 : x24.82 : -40.4%: -11.6% : -32.5%


GOEX Component stocks

Top 10 Holdings: As of 12/6/17

Pct Name------- Market Price ($) Shares: MktVal($): Sym: shsOS : MktCap :
7.56 KIRKLAND LAKE GOLD 13.70 239,438 3,280,409 : KL- : 207.6 : $2,844 M :
5.48 ALAMOS GOLD INC 6.13 387,645 2,374,576 : AGI. : 389.1 : $2,385 M :
4.49 B2GOLD CORP 2.63 739,764 1,947,052 : BTG : 979.3 : $2,575 M :
4.47 PRETIUM RESOURCES 10.39 186,526 1,937,439 : PVG : 182.0 : $1,891 M :
4.32 CENTAMIN PLC 1.79 1,047,548 1,871,798 : celtf : 1.15B : $2,069 M :
4.22 INDEPENDENCE GROUP 3.08 595,300 1,830,693 : iiddy : 293.4 : $0,904 M :
4.14 REGIS RESOURCES LTD 2.98 603,539 1,796,601 : rgrnf: 504.0 : $1,502 M :
4.03 TAHOE RESOURCES INC 4.38 398,864 1,746,553 : Taho: 312.8 : $1,370 M :
3.82 ST BARBARA LTD 2.49 664,285 1,655,404 : stbmf: 515.4 : $1,283 M :
3.77 NEW GOLD INC 3.07 532,737 1,635,852 : NGD : 578.0 : $1,774 M :

Note that nearly all of the Top 10 Components have MarketCaps of $1-3 BILLION!

Companies that big will not be easy to push higher.

If you want to make 5-bagger, or 10-bagger or greater returns, you should be looking for promising

companies with a Market Cap of $25 Million or less



Link to here: https://tinyurl.com/Redstar-RGC

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Redstar / RGC.v controls big ground, which contains 3-4 large deposits with good grades.

One of them was in production from 1876-1922, and still has gold underground.

(They may add up to 1 million ounces, but the drill results are dated, and so cannot be reported)


Sym. : Company-------- : C$Price /-CAD = -US$- : shsOS : Mkt.Cap
RGC.v: Redstar Gold : $0.085 /$1.283: $0.066 : 298.6 : $19.78 M

Some deposits of their deposits are about 10g/t average - and there is real potential for growing the size of them.

One of the very best targets, XX, has not yet been tested except by a single drillhole (by prior management), which was not ideally sited.

They will be seeking more geological information before drilling this exciting target.

Redstar Gold / RGC.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.085 /52wk range: 0.065 to 0.16 /



What confirms Redstar's potential?

The first big clues is the bluechip shareholder base:

  • ~60% controlled by the some of the top gold funds and investors in the world including:
    • Mount Everest Finance (LONDON),
    • Eric Sprott (CANADA),
    • US Global (USA),
    • Gold2000 (SWITZERLAND),
    • Geologic Resource Partners (USA),
    • Odey Asset Mgmt (LONDON),
    • Gabelli Gold (USA).

> Quick Facts: https://redstargold.com/investors/quick-facts/


Redstar Gold Corp. (TSXV: RGC) (OTCQB: RGCTF) is well-financed junior exploration company, with a very strong institutional shareholder base (~60%), no debt, and is focused on advancing its high-grade Unga Gold Project in Alaska. The 100% controlled Unga Gold Project is known as an intermediate sulfidation epithermal high grade gold project on a district scale, with the property encompassing approximately 240 km2 and containing multiple high grade gold zones drilled or identified at surface. The Unga Project also hosts Alaska’s first underground producing gold mine, has extensive infrastructure with daily flights from Anchorage and a deep-water port on neighbouring Popof Island, and a moderate climate noting it resides at the 55th degree latitude and next to the ocean.

In addition, Redstar owns approximately 18% of NV Gold Corp. (TSXV: NVX). Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada

> Presentation : https://redstargold.com/site/assets/files/2951/final_rgc_corporate_presentation_november_2017_final_co.pdf

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Another one I like which looks "cheap" now:

BAY.v / Aston Bay : Cu, Zinc, Can. : $ 9M : C$0.11


Sym. : Company-------- : C$Price /-CAD = -US$- : shsOS : Mkt.Cap

BAY.v Aston Bay------ : $0.130 /$1.283: $0.101 : 75.32 : $ 7.63 M


Aston Bay - / BAY.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.130 /52wk range: 0.100 to 0.29 /



Redstar Gold / RGC.v ... All-data : 5-yrs : 2-yrs : 6-mos / 10d : Last: $0.085 /52wk range: 0.065 to 0.16 /

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A technical Analysis Review of : Novo, Bonterra and Redstar and GDXJ.


A very powerful "Inverse Head and Shoulders" (may be forming on GDXJ) - That's Bullish


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  • 5 weeks later...

McEwen Mining - Top gold producer

Sabina Gold & Silver - Top mine developer

Marathon Gold - Top explorer


“McEwen Mining is cashed up with no debt and the firm is aiming to nearly double production by 2020. CEO Rob McEwen has aligned himself with shareholders by owning 24% of the company,” he explained. 


> http://www.kitco.com/news/2018-01-05/Everything-Gold-Will-Rise-in-2018-Except-Bitcoin-Expert.html

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  • 3 months later...

Bonterra Resources BTR Gladiator 2

Earlier today, Bonterra Resources (BTR.V) released the long-awaited results from its preliminary metallurgical test work on samples from its high grade Gladiator Gold Deposit in Québec.

Completing metallurgical studies are a very important milestone in the development process of a gold project. You can have as much gold as you want in a resource in the ground, but if you can’t get it out of the rock easily, it really is just a bunch of worthless rock. So….. one of the biggest de-risking mechanisms for any gold mining project, is being able to extract the gold easily from the rock through good metallurgical processing parameters, and to recover as much gold with as little effort, capital and ongoing operating costs as possible.  This sometimes can the key component in order to justify the economics of pushing a project towards a construction or production decision, to generate a profit.

To start off, the Gladiator deposit yielded up to 76.1% recovery in the gravity circuit, and on average for all grinding sizes (coarser to fine) yielded greater than 70% gravity recovery. This confirmed the presence of a significant amount of free gold in the mineralized system. And that’s exceptional when compared to its peers across Canada / USA, as most ‘competitors’ reported average gravity recovery rates of 15% to 40%.  Noting that all tested grinding sizes yield excellent gravity recoveries, it will allow for some flexibility when designing the crushing and grinding circuits. This could potentially save Bonterra an important part of its initial capex, but it coult also allow the company to reduce its operating expenses.

On average, greater than 70% of the gold reports to the gravity circuit at all grinding sizes, which potentially contributes to substantial capital reductions in the grinding circuits, potential lower reagent consumption, and highlights an opportunity for significant savings in the future processing parameters at Gladiator,”

Peter A. Ball, VP Operations.

To add to the excellent gravity recoveries, total recovery results were also well worth the wait as the combination of gravity and gravity-tail flotation tests resulted in a recovery rate of around 97%. The final icing on the cake, if even needed, the tests using gravity and gravity-cyanidation indicated the recovery rate could exceed 99%.

Not only are these amazing results (for both processing scenarios), there also is one important piece of information to harvest from these results. The difference between the recovery rates of the flotation circuit and the cyanide circuit is just 2%, which means Bonterra will have to do some trade-off studies to figure out if a cyanide leaching circuit would even make sense.

Potentially not requiring a cyanide leaching circuit minimizes the environmental footprint of any future mining operation and could also improve potential future process economics of the project.

Nav Dhaliwal, CEO

We don’t think Bonterra will put in the cyanide circuit as the NPV8% of a 150,000 oz/year production scenario wherein 2% more gold (3,000 oz/year) would be recovered would be just C$22M, based on a gold price of C$1700/oz. This means that if a cyanidation circuit would cost more than C$22M, Bonterra might be better off by just going for a flotation circuit as recovering less gold might actually result in a higher net present value. Of course, a final decision will only be made once Bonterra has all parameters as everything will depend on the total size of the resource and the expected average production rate (as well as the access to capital).

> https://www.caesarsreport.com/blog/excellent-recovery-results-confirm-gladiator-superiority/

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