THH: Musings on some exploration stories
Just some quick thoughts on some things I am watching currently…
Goliath Resources
With the comments “abundant visual gold up to 1%” it should be pretty obvious that there is an OK chance that the market will look at Goliath differently after said assays are in. If this was the heydays of 2016 I reckon Goliath would already be trading at $200-$300 M. Not riskless but the other zones should already be backing up the current valuation so I see the Risk/Reward as very favorable going into assay risk.
Condor Resources
Maybe one of the best undrilled gold/silver targets that I am aware of is Pucamayo. Well, a lot of people have been waiting years to see this finally get drilled and according to the “rumour mill” it might actually happen in the not too distant future. I own a lot of shares for better or for worse (TBD). Thankfully the company has several more projects as backup so the case would not be dead and buried forever even if Pucamayo surprises everyone by not being as good as it looks.
Inflection Resources
A pre-discovery play that is so exciting it hard to sit still. I own quite a bit of shares for the simple reason that I think they will hit something given that they will be drilling 35,000 meters spread over #100 holes. They are looking for giant copper/gold porphyries so if they hit something it could be a very very big deal even though they might end up keeping 25%. But with that said 25% of something worth a billion is a lot for a $17 M Market Cap junior.
Headwater Gold
Headwater is drilling away at four projects located in the US. At Spring Peak, which is a discovery already, it seems they hit epithermal veins in all holes so far. The three other projects, including the 100% owned Katey project, appears to have seen successful drilling as well given that the majority of holes hit mineralization. At $20 M Market Cap I sure believe that the risks are to the upside. I own quite a bit of shares.
Onyx Gold and Rackla Gold
Two companies in Yukon/NWT looking for Snowline type deposits. I own some shares or Rackla already but I am watching to see if either or both are lucky enough to make a discovery on the first try up there. I would prefer to see >100 m of > 0.6 gpt to start getting excited. I they hit anything close to some of the Snowline holes then I would get very excited for obvious reasons.
Juggernaut Exploration
Visuals from especially Midas look encouraging. I have a position already and think there is an OK chance they actually have hit something substantial but I won’t be “plowing” in more before assays would indicate there might be a significant new discovery in hand (or two).
Tectonic Metals
They have a short drilling period so the odds of them de-risking the blue sky potential in a major way is obviously lower than if they had the hole field season to drill. With that said this will be the first modern drilling and if they show that the huge anomaly is legit on the first tries (major step outs and/or deeper drilling with good grammeters) then the game is on. I own quite a few shares and warrants already.
Eskay Mining
We know Eskay has hit VMS mineralization at four new different targets. Just to be able to confirm VMS systems at all four is of course great in itself but the odds of hitting what the market would see as “discovery holes” is hard to say. Well I should say in THIS market. If the sector sentiment was good then just confirming four new targets to host VMS mineralization might have been enough to give the stock a bump. But alas, this is currently the worst sector sentiment I have seen since at least 2015. Anyway, things can change quickly if the company is lucky enough to have a few good hits right off the bat.
Brixton Metals
Still waiting for more holes out of Camp Creek and all holes out of the Trapper Gold target. And then there is How Heaven which I think Ivanhoe Electric has two rigs working on right now. A lot of projects and I think the MCAP is not reflecting that.
Sendero Resources
A private junior explorer that should be publicly listed any day now. I participated in a placement some months back. The proposition is pretty straight forward as this junior has ground near Filo Mining and the other Lundin companies that appear to be finding copper giants every other week down in South America. This is a swing for the fences case. Odds of finding something world class is always low, but if they do, then I would not rule out a >30 bagger one day. Definition of High Risk/High Reward but I hear the technical team is very impressive and insiders own a lot of shares.
Altamira Gold
I like Altamira a lot. The company has a small resource and probable growth at Maria Bonita. Then add the >3 porphyry targets that looks pretty much drill ready. I would expect the company to raise money in the not too distant future, in order to do the actual drilling required, and I am currently trying to save up money for that.
Kingfisher Metals
A $12.4 M Market Cap junior that is currently drilling a porphyry target. I only have a few shares if any in this company today but hey if they are lucky and find something big, well then. Watching until further notice.
Red Canyon
Red Canyon has yet to list and is currently a private company which was founded by the same group (Newquest Capital) that founded Headwater Gold and Inflection Resources. This one is focusing on mostly very large porphyry targets in North America. Headwater and Inflection both have major deals with major miners so these guys certainly knows how to pick good projects. Anyway, I am a big fan of Newquest and am interested in any company they create. Lastly, I think they expected to publicly list before this year is over.
… Anyway, those are some stories off the top of my head. If a few of these would work out, and be able to grow for a few years, then I’d be very pleased.
Pacific Ridge
Quite a few assays awaited still. Stay tuned.
Gold Line Resources
A Micro Cap company operating in Sweden. Taj Singh (ex Discovery Silver) just came on board as CEO. I am participating in the current placement. It is a very early stage explorer but I have a soft spot for gold in Sweden and from $5 M in MCAP there is obviously some upside potential in case they find something of significance.
Note: I am biased. I own shares of most companies and some are banner sponsors. This is not investment advice or buy/sell recommendations.
/THH
Thanks for the update on the companies. Yes the market is bad very bad but just think it will end one day and all the signs are pointing the change cannot be far away a world recession is on the cards the dollar is going to drop and gold will have it’s day in the sun that will last not just day’s but many months if not years.
Have you stopped watching Lion One Metals? Just curious; haven’t seen anything lately, except their own press releases. Thanks!! Darlene
It’s a bloodbath…..there are no “markets” any more…..just controlled wipeouts with computer algorithms……
RSI’s in the teens and twenties just don’t matter anymore.
It’s been this way since 2008 and it’s only gotten worse. Nothing like pissing away thousands and thousands of dollars
This cycle is deeper and more painful than usual. Share prices for exploration companies reflect sentiment/speculation. It takes the gold price, company news, good sentiment/speculation all working together for shares to take off. Lack of one usually whacks the prices down or keeps them going sideways instead of rising. When you get them to all align once in a while you get explosive moves in both directions. I believe we are getting close to one of those bottoms similar to 2015 to 2016 with so many good companies down so much that a 10x move for some would only get them back to where they were a year ago. And many down 50% or more while delivering good news after good news *cough* Goliath *cough*.
I know its hard, but now is not the time to sell. DSI for gold/precious metals is a single digit these days. Very close to bottoming. The action the last couple/few days looks a lot like capitulation IMO. Not that it can’t go lower first, but these are dumb moves in pricing for the news being delivered. $40 million US market cap for Goliath is just stupid. Cartier is stupid low for the hole that had assays announced earlier. Snowline is stupid low for the size of their deposit that is still growing. Elorro continuing to go down is stupid low.
The cure for low prices is low prices. I have seen my share of market lows/tops and this one will end as well. Another tell that we are closer to the end than the beginning is that most days volume is anemic to almost nonexistent in the explorers. $10,000 of shares being traded for the day is changing market caps by millions.
I owned Skeena Resources from prior to their acquiring the Eskay Creek property from Barrick. I think I bought at about $1.00 or just over. And then they start to go down over time drifting lower and lower as the news gets better and better as they acquire Eskay and I kept buying more as it kept going down. It kept on in this fashion until it was at $.14 or 16 and then it finally turned and didn’t really look back until it hit $2.25. This was before the reverse split to lower share count. Not much changed over the time from $.14 to $2.25. Any good news was just more of what had been coming out all the way down and all the way back up. The good news got over run from gold sentiment and gold price. Then it turned and it ran for over 1500% in the next 12-18 months when all the other explorers turned as well for great runs.
When the turn comes almost all explorers will go up nicely and those with real projects that are looking like a possible tier one project/property will likely lead the way. We are closer to the end than the beginning. I am hopeful we will finally get the dollar top and gold bottom in the next few weeks but mr market has a way of outlasting people’s patience or margin call. The last few days has felt like some people are capitulating. But obviously no guarantee that this doesn’t continue through the end of the year with tax loss selling.