Toronto Stock Exchange – Technical Break Out
Last Thursday we got our answer that risk on is back on, at least
temporarily. All indications are that risk assets are going to start to
move up after an extremely sharp consolidation this spring. It has
been a very long 18 months since the TSX topped out with Fukushima and
we are still in a bear market on the TSX, but at least timing,
valuation, and technical setup are coming together to show a rally in
some extremely oversold stocks which represent some of the best deals
since 2008/2009 in the materials sector. It feels like we are somewhere
in the middle of a similar type consolidation without the drastic move
to the downside that followed the summer of 2008. Although in 2008,
also an election year the rally failed in September and the market
headed towards an ultimate bottom in 2009.
One very BIG difference between this year and last is sentiment.
Despite all of the bearish economic commentary, the absence of Chicken
Little himself from the crowd shows that there is much less risk to the
downside than in 2008.
Even though there was very little volume associated with this breakout,
I am a believer in price action much more than volume and after a very
sharp correction for many Canadian listed companies in May and June, all
signs are pointing to a late summer / early fall rally for the oversold
Toronto and Venture Stock Exchanges. I would be less enthusiastic
about American stocks considering you are dependent on momentum to make
money whereas a TSX company represents good value and much less ‘risk’
considering many companies are still trading close to their 52 week lows
while many US stocks are trading at their 52 week highs.
TSX Lags… but shows the best value
The last 10 weeks the TSX has been in a bottoming process. Any attempt
at a rally was snuffed out at clear resistance around the 11,900 and
could not break out. In spite all this gloom and doom the $SPX is near
record highs and does not look to be slowing down.
So with all this gloom and doom sentiment, why are American markets breaking out and why is the TSX lagging?
2 years ago the TSX had a 1,000 point premium to the DOW. That premium
has turned into a 1,000 point deficit as the Canadian markets lag. As
far as I am concerned… record low prices, means record low gains.
3 factors have come together to make the TSX a bargain making it is
debatable if stocks will get much cheaper. Certainly if you have a
medium term outlook, the world should return to growth by the second
half of 2013; especially if the stimulus that is planned around the
globe is implemented.
1)
American economy shows its resilience. Over the
last 2 years the American markets have performed much stronger than many
expected. American economy is characterized by low unemployment when
considering most other countries. Yes people 8% unemployment is low and
there is not much difference between 7% and 8%. If the US thinks 8% is
high, they should really try Spanish unemployment rates. The housing
market has bottomed and is another area that could help propel the
consumer/retail economy with increasing equity in many consumer
household balances.
2)
Chinese economy slowing faster than expected. The
world’s great new economic engine is not as strong as everyone
thought. Chinese growth is slowing faster than expected as their
internal economy has not developed enough that it can assume the slack
in European trade. If China is slowing, don’t expect that premium to
comeback until global and developing market growth comes back. Chinese
is really the engine that drives the Canadian stock market. Don’t be
illusioned by anything else. Yes the USA drives the Canadian economy,
but when it comes to the capital markets, the engine that drives the TSX
and TSXV is clearly the Big Red Machine. Contagion from deleveraging
and the Euro debt crisis has hit China very hard. So while the Canadian
economy putts along at a decent pace because US growth has not slowed,
Chinese slowing growth is clearly seen in our struggling capital
markets.
3)
The European Debt Crisis. Every time this slow
moving train wreck looks like it is about to derail risk appetite
completely disappears and everyone buys US treasuries. In reality
nothing can be more risky than buying government debt and buying a stock
that owns a large gold deposit is not at all risky. Why would you
say? Those ounces in the ground have value. The gold won’t ever
disappear and eventually if the world wants to continue to mine gold;
that deposit will be on the production list eventually. The government
can do whatever they want and nothing will ever change the gold in the
ground. On the other hand, all it takes is one swipe of the pen to take
away your entire government debt investment portfolio away. Obviously
these are two extreme viewpoints but hopefully it highlight’s the worlds
skewed view of risk. One day this cycle won’t happen like this and
investors will flee to other assets if US debt gets out of control, but
until then; it is the status quo. Any time risk enters the horizon, the
companies that get hit the most are the companies that I write about.
So ya it sucks and the last 18 months the companies that have
performed well have been few and far between. The good thing is that
when times get good again. There is no category that performs better.
This won’t always be the case as the commodities cycle will eventually
run its course eventually, but until 2030 or so when the Chinese economy
overtakes the USA economy as the largest economy in the world… there is
still a lot of growth left in China with at least one more leg up to
go.
TSX technical buy… Global stimulus on the horizon
With a clear break in downtrend including a break through resistance at
12,000 and the 200MA it looks like a very solid buy signal for
materials. At least for a late summer early fall run. If you take into
account the US elections you should see a selloff in US stocks before
the fall and then an end of year rally well into 2013. That is my
prediction anyway. If stimulus goes ahead… 2013 will be a banner year.
The catalyst that seems to be technically moving the TSX into a
rally mode seems to be strong sentiment that the entire globe is ready
to monetize and stimulate and avoid a 2008/2009 type stock market crash
again. If we are about to enter another round of global
stimulus then you could see some sector rotation into materials / hard
asset type stocks. At current prices, value screams at you to
buy. Seasonality is screaming hey fool… BUY. Even the bears have one
toe in this market.
Global stimulus plans includes the Chinese, the Brazilians, the Americans and the even the Europeans err I mean the Germans.
The rumors are that even though the Germans will be dragged into the
pot of stimulus kicking and screaming in protest, but yes they will
eventually buy Spanish bonds. It certainly won’t spur European growth,
but at least we may be able to avoid the headlines from Europe and stem
the dramatic drop in trade between China and Europe. As predicted, the
Germans save the day… but wouldn’t you when you can borrow at 0% and
then slap that money down and make 6% on the spread?
I know I would.
Stimulus in 2013... It is going to happen soon and 2013 is only a mere 4 months away!!!
-
The USA needs to stimulate real estate to firm up the bottom
-
The Brazilians have 4 years of spending ahead for the World Cup and the Olympics
-
The Chinese need to dramatically increase the internal monetary supply in their economy
-
The Europeans… well you know, they have to save Europe… and their 3 month vacations too!!!
The global economy is on the verge of another round of stimulus which
will be implemented sometime over the next 6 to 12 months. It seems
that Jackson Hole this year might be a much bigger event than last year
which was a non-event with traders running the market on false rumors
about QE3. This year the market, especially gold is much more wary
about Jackson Hole, but this year of all years you might see some major
policy decisions at least debated earnestly and outlined casually. Many
people are not expecting much, but if we get the right policies
discussed and some mutual agreement among Central bankers, then Jackson
could be a major catalyst to the markets. Note I say
‘could be’,
but without some sort of solution in Europe, it is clear the China will
continue to slow and we will continue to slide into a global
recession.
Thoughts on Gold
I really believe that gold is on the verge of a $100 rally,
but this time no one wants to commit until after Jackson Hole.
At current prices gold is really easy to trade; $1620 was denoting a
very bullish signal to at least make a $20 move to $1640. At time of
publishing this move in gold happened this morning so now $1640 is the
major mark to watch for momo and continuation. $1640 is ultimate
resistance for a momentum move to $1700 or so. If you get a daily close
above $1640 you can enter this market hand over fist for a very good
move. If $1640 fails, depending on the macro/news factors not
supporting the run gold could be a short term short or another buy at
lower levels. The sentiment again is that the globe is getting nearer
to a stimulus event and even if short term headlines push gold lower
there is underlying sentiment that will keep a floor under gold and move
it up as we get ever so closer to a global stimulus event.
Unless Harry Dent’s world becomes a reality over the next 6 to 9 months; I am a believer that the gold price has bottomed.
For most gold stocks they will continue to shine… they bottomed in June
and it looks like continuation in this sector. Some companies
companies like Calvista CVZ-TO have already doubled and a better
relative buy is a company like Tembo Gold TEM-V which has just started
to move off its bottom at $0.50. With a $2 plus high in the spring; TEM
will have a much easier time breaking the $1 barrier and turning it
into support. TEM in my opinion looks like a much better buy if you are
looking at early international exploration with the right address.
Considering there was a lot of hype about Tembo’s Gold Project in
Tanzania and the share price was trading above $2 in the spring, TEM-V
represents a well-financed oversold dog that still has a long way to run
to get back to relative value. They news flow out of Tembo has also
been very encouraging this spring / summer with consistent hits like I
predicted when I initially wrote them up, but nothing that traders will
speculate and drive a stock up 10 fold for.
Barkerville Issues Amateur NI43-101 Resource Report
Last Monday evening right in the final hour Barkerville released the
43-101 resource report supporting their announcement on June 28
th.
In my wildest imagination, never would have thought anyone could
release such a crappy report even to my amateur eye. Normally a
resource calculation is supported by pages and pages of statistical
charts plotting samples. If you want to see a very detailed and well
thought out report I encourage you to take a look at Guyana Goldfields
43-101 and feasibility study released on April 9
th. There is
no comparison and when going from one to the other you can tell that
the one report by P George had about 10 hours of thought put into it.
All the data that was not in BGM’s report was needed because it
supports several critical assumptions an estimator has to make regarding
the estimate. If these assumptions are off dealing with cut-off, high
grade intervals, waste rock, strip ratio, costs and so on... then the
estimate can be so far off it cannot be trusted. The best example is
the Barkerville report itself. By changing the variables slightly, the
resource drops from the original indicated amount of 10.6M ounces at
>5g/t au to 4.25M ounces at 2.33 g/t au. Hello?!?!?!
If that indicated number stand, it is still $120 per tonne rock on
average, but a far cry from the $250/tonne rock that Barkerville was
proclaiming and extremely hard to come up with any type of mine plan
with that type of variability
. The conclusion that I made is that you cannot trust any of George’s assumptions. I
really hope Barkerville sues P George’s ass off because it is obvious
from the absolute incompetent report laid out to the public last week
that P. George has rammed straight up Barkerville’s you know what and
giving it to Frank C hard. What is unfortunate is that someone at BGM
should have checked George’s work before making the statement they did
that fateful June 28
th.
MY BIG QUESTION IS WHY THE HELL TO YOU JUMP UP AND DOWN SHOUTING OUT
NUMBERS OFF AN INCOMPLETE REPORT? Would you not have the report in hand
before making such statements? I don’t get this part. I don’t see an
orebody modeled, no dip, no strike, no 3D program plotting values.
Seriously… this is no joke… give me AMINE and I would have put together a
more credible report than P. George. I am not kidding.
Here are some of the issues I have with the report. I am not a techie
so I can’t argue things from a geological or reporting perspective, but
what I can do is point out a cause and effect relationship of the things
that P George did and how it would affect the resource calculation.
1) There was only one extremely simple table trying to define economic
grade vs. POG that has nothing to do with any specific mine and is a
crude estimation. It made no sense. To define an economic grade you
need to look at the micro. The individual deposits and calculation of
costs for mining and processing etc. before you can establish a cut-off
grade. None of this was done. At best, the 43-101 was incomplete and
that is being very generous to Peter George.
2) Not capping argument has no merit especially considering he had no
data supporting his argument other than a one paragraph and one chart
that did not even plot in a straight line like P George argued. Data
that supports the need for capping is the simple argument that the
inferred grade on the high grade bench 3950 is almost double that of the
indicated at over 1 oz per ton vs just over half an ounce per tonne
indicated. Simple stats like that show that with more drilling the
grade comes down because of the nugget effect. Even the capped grade
for inferred is 8.43 g/t vs. 6.13 g/t. I don’t care what P. George
argues; just how the estimates reads off his own report, it is clear to
me that there is significant nugget effect in the deposit.
3) No cut-off grade applied. If you applied a cut-off and took out all
the 0 grade samples which is almost half the samples, the grade would
increase significantly and the tonnage would decrease. What I find very
peculiar is that what he did would skew the stats to make an open pit
look much more favorable than it would be normally significantly
decreasing the waste rock and strip ratios of the individual benches.
If calculated right you would find that a 300 meter open pit is not
feasible on Cow Mountain. The author’s argument is based on the fact
that you have to move the same volume of rock in an open pit regardless
if there is a cut-off. Wrong. Yes you have to move the same volume of
rock for sure, but the estimate needs to deal with how much ore is
economic among all that rock. Sure you are going to have two piles of
rock, waste and ore that goes to the mill that will add up to what is
mined. But determining what is economic and what will go to waste will
greatly increase or decrease the economics of the project. Seriously…
without knowing how much rock I have to put through the mill and at what
grade and how much rock goes to waste, I cannot produce a cash flow
statement. These are simple basics that one cannot ignore. I may not
know much about geologic reporting or stats or really anything to do
with reporting a gold resource. What I do know is that I don’t have
enough information to produce a cash flow statement. Considering that
half the samples had a zero value, things like a higher gold price would
have no effect on the including more tonnage by lowering the cut-off so
what it does do is make an open pit look more ideal than usually it is
because P George is directly manipulating one the biggest factors in
cost of mining. The strip ratio. Did I mention after all that
manipulation of the strip ratios, P George did not provide even 1 strip
ratio?
4) I understand what George is trying to convey in his geological
potential argument. Certainly the best historic mine was operated on
Island Mountain for nearly 40 years. Hello? The gold is there and it
is pretty easy to see that there is a system extending onto all three
mountains. What is not clear is if it is continuous and unless you at
least put in a few widely spaced shallow holes along the trend to
confirm that there is indeed mineralization similar to Cow Mountain. It
is a bunch a crap. Island Mountain finished up in 1967 after 34 years
in operation mining over half an ounce of gold. If the Island Mountain
was at all continuous at that grade do you not think that mine would
still be going today? You are talking about half an ounce a tonne which
is on par with some of the highest grading mines in Canada like
Rubicon’s Phoenix and Pretvim’s Valley of the Kings.
So let’s make sense of what BGM does have with the information that we
do have, even though it is incomplete at best. Since the company wants
to promote the merits of an open pit, fine, let’s evaluate it as an open
pit. First things first, I do not even consider Cow Mountain as a 300
meter open pit. No one is fooling me there. If a 300 meter pit is
feasible after a re-calculation, I say prove it. So we will evaluate
the project at 91 meters, 182 meters and finally to include the 213
meter depth bench
. After bench 3950 which is 213 meter total depth
the grade drops significantly and the merits of an underground operation
might be considered at that point.
|
Bench |
Capped Indicated |
Grade g/t |
Capped Inferred |
Global Resource |
Pit Depth |
|
4550 |
113,400 |
|
31,500 |
|
|
|
4450 |
352,600 |
|
107,900 |
|
|
|
4350 |
730,900 |
|
126,900 |
|
|
|
Subtotal |
1,196,900 |
1.77 g/t au |
266,300 |
1,463,200 |
91 meters |
|
4250 |
530,900 |
|
250,900 |
|
|
|
4150 |
452,100 |
|
347,200 |
|
|
|
4050 |
693,900 |
|
293,600 |
|
|
|
Subtotal |
2,870,000 |
2.46 g/t au |
1,158,000 |
4,031,300 |
182 meters |
|
3950 |
894,900 |
|
837,000 |
|
|
|
Total |
3,768,200 |
3.33 g/t au |
1,995,000 |
5,763,200 |
213 meters |
213 Meter Open Pit… Much More Believable
As you can see even when you cut 400 feet off the open pit and use the
capped numbers, there is still a very large potential resource at Cow
Mountain in almost 6M ounces. It is a number that in my opinion is much
more realistic than P George’s 300 meter pit. Especially after 3950
the grade drops dramatically making a 213 meter open pit ideal from the
information that is provided. Certainly a 90 meter pit is feasible. If
you dig another 90 meters you scope in another 2.5M ounces at ~3 g/t
which is double the grade of the first 90 meters. You then have a final
30 meters grading >6 g/t to a 213 total pit depth at an average
grade of 3.33 g/t over those 213 meters. These are much more believable
numbers but still only manipulating what P. George has provided.
Which I might add you can put zero confidence in.
A 200 meter pit is feasible as long as the strip ratio is not much more
than 10:1. You might be able to get away with a higher strip ratio
because of the grade, but after 10:1… that is an awful lot of rock to
move and underground mining might be more appropriate. In SRK’
evaluation of Guyana Goldfield’s Aurora; a 20:1 strip was used as a
cut-off and the overall strip of the open pit was 9:1. In Barkerville’s
Cow Mountain, after 200 meters the grade diminishes and deepening a pit
beyond that would be highly unlikely from the numbers presented in the
43-101.
Barkerville Cow Mountain similar to Guyana’s Aurora
The best comparable that I have in my spreadsheet is another undervalued
company. Guyana Goldfields GUY-T which has 8.3M oz’s of gold at around
3.3 g/t au in a combined open pit underground mining situation. The
grade and size of the resource is similar and both potential mines will
have similar open pit/underground mining evaluations. Other than that
the similarities end with Barkerville’s resource being defined much more
along strike and not to depth like Guyana’s Aurora Project. With more
potential to scope in more open pit ounces and still un-explored depth
potential. It could also provide a better mining scenario than Guyana’s
Aurora. At any rate, technical reports and feasibility studies will
tell you that, unfortunately for Barkerville, after how many long years,
we are still in the dark. Sort of.
I have full confidence that Barkerville has the goods, but there is
really no idea to know how much gold Barkerville has and any report with
P. George name on it will not be accepted by anyone in the public as
credible. BGM I have full confidence will be bought out for much higher
price than it got suspended last week b/c the gold is there.
Undoubtedly the drill results do not lie. But in my opinion that 12M
ounce number is more likely half and the open pit depth is beyond what I
could ever imagine at Cow Mountain. There are certainly smarter men
out there than me when it comes to analyzing Barkerville’s amateur
resource report… but I am confident that they will be mining there for
quite some time. Eventually.
Another thing I am also confident on is that if Frank continues to run
the show, Barkerville is going to continue to spin its wheeIs. A
competent CEO would have evaluated the open pit potential of a 7km to
10km gold trend in an area that is extremely accessible in 18 to 24
months… not 20 years!!! I would have 6 RC rigs set up and have the top
200 meters on all three systems drilled out in 18 months. There you
go, another 12 to 18 months for a production decision and if a no go we
use the rigs and start a drilling company or at least muscle in on
another deal with our rigs. Seriously. It’s not that hard a job. How
Frank has managed to turn this into a 20 year affair…? That is only a
question a stock promoter can answer.
I am still long Barkerville Gold Mines in spite of the Larry, Moe and Curly show.
Who ever said gold investing was dull?
Bad Gold Company in the News
Canamex CSQ-V released assay results from follow up
holes and they failed to duplicate results released in mid-July. One
thing that holds true is that assays when delayed, results are usually
poor. My last letter I backtracked a bit on CSQ specifically because
the company stated in the initial press release that assays would be
released approximately a week per hole.
That made me nervous when results did not come out in the following two weeks. Considering
that we are 5 weeks away and we got 5 holes it is pretty much spot on
for timing and this company is typical of psychology that makes the
saying that late news is always bad news very true. If the next assay
is not great, the company will sit hoping that the next hole is good.
If that one isn’t good then the company will continue to sit. In CSQ’s
case, none of the following 5 holes were that good at all. Here is
another red flag. In the original press release the company stated that
the 6 holes were drilled 100 feet apart designed to test the heart of
the mineralization. In the news release updating the holes the company
does a complete 180 by stating that the following 5 holes were drilled
in another target and only kissed the zone and the holes were drilled
before the results of hole one came back. Sure. You can kiss this one
goodbye. Speculating in gold stocks is hard enough without companies
contradicting themselves in public within a month
.
http://www.marketwire.com/press-release/canamex-updates-bruner-gold-project-nye-county-nevada-tsx-venture-csq-1691193.htm
Nowhere like Columbia for high grade exploration… Except the Yukon
I am tired of talking about California and Vetas and pretty much
everything else in Columbia. Earlier this year an outspoken priest in
the Marmato region where Gran Columbia’s mine is planned was murdered.
Even if the company denies any wrong doing in the incident, it is
something that has really put a stain on the company for me. Bad Karma.
Columbia is great and a exploration spec portfolio would include both
GWY and CVZ and could be anchored with CNL and GCM at current prices.
I think it’s time the Yukon came back to life and with CSL and GSR
leading the way with high grade discoveries this year… the Yukon hasn’t
been this primed for a run since the original UW-V discovery at Golden
Saddle.
GoldStrike Resources assays 12.4 g/t au over 2.4 meters in trench at plateau
It seems like we have been waiting on GSR news forever, but it is the
Yukon and everything happens up there in slow motion. That is the one
problem with the Yukon. If miners are ever going to get serious about
the Yukon, someone better figure out how to work in the winter. That
being said, because of the remoteness of the place, it is one of the
last underexplored regions in the world. GSR in my opinion is the cream
of the crop in exploration. CSL is great and they have what looks like
a shared deposit with Kinross similar to ECC/KAM, but GSR is the cream
of the crop, and nothing will put cream in my pants more than a Carlin
Trend type discovery similar to Atac’s Rackla Trend. What the team is
doing at Plateau has got me very excited for end of summer exploration
results.
Especially after assaying 12.4 g/t over 2.4 meters in a trench.
So far they have uncovered a 12km long Gold Rush Zone on the Northern
Part of the Property while a 25km trend has been staked called the
Yellow Giant Trend that has had rock samples as high as 4.65 oz’s per
tonne. Expect some initial diamond drilling results sometime this
summer which could kick off a discovery at Goldstrike’s flagship Plateau
Property.
http://www.marketwire.com/press-release/goldstrike-cuts-1425-gpt-gold-over-24-metres-with-visible-gold-drilling-under-way-tsx-venture-gsr-1692254.htm
Underworld VP of exploration Rob Mcleod Joins Comstock’s Advisory Board
All you gotta do is follow your nose to sniff out the good ones. When
the original guy from the Golden Saddle discovery wants in on a
potential discovery like Comstock’s QV Property which is the better half
of a former UW property to begin with... then you know they could be on
to something very good. With one of the very best trenches in the
Yukon discovered to date… you have to speculate with the very best.
Just follow the people who did it before. Certainly this news confirms
that CSL is on to a legitimate gold discovery.
http://www.marketwire.com/press-release/comstock-metals-acquire-controlling-interest-walhalla-property-white-gold-district-yukon-tsx-venture-csl-1688173.htm
Northern Tiger Channel Samples 132.91 g/t over 6.9 meters
If you still got more of another hankering for Gold in the Yukon this
summer... Northern Tiger seems to be back in play again with another
high grade vein discovery with a highlight 132 grams per tonne over 6.9
meters along a 25 meter exposed vein. The problem that ended Northern
Tiger’s party last time is that none of the veins tested to date extend
to depth. Will it be any different this time? It’s one to watch as a
sleeper.
BRIXTON BRIXTON BRIXTON!!!
The company completes follow up drill program to the massive intercepts
announced last winter. The trade couldn’t be better to buy into before a
potential major news headline this September. Do not forget about BBB
the company drilled fan around the discovery hole which should mean that
company should hit some decent intervals and grades. Keep your
fingers crossed.
Selected Canadian High Grade Gold Deposits
|
Company |
Project |
Location |
M & I |
Grade |
Inferred |
Grade |
Total |
Market Cap |
|
|
|
|
|
|
|
|
|
|
|
Pretvim Resources PVG-T |
Valley of the Kings |
Stewart, BC |
4,900,000 |
17.3 g/t |
10,400,000 |
25.5 g/t |
15,300,000 |
$1.4B |
|
Barkerville Gold Mines BGM-V |
Cow Mountain |
Wells, BC |
4,251,000 |
2.33 g/t |
3,205,200 |
3.33 g/t |
7,456,200 |
$132M |
|
Sabina Gold & Silver SBB-T |
Black River |
Nunavut |
4,155,000 |
5.56 g/t |
1,683,000 |
5.61 g/t |
5,838,000 |
$464M |
|
Premier Gold Mines PG-T |
Hardrock |
Ontario |
2,491,000 |
3.73 g/t |
1,122,700 |
5.13 g/t |
3,614,500 |
$610M |
|
Rubicon Minerals RMX-T |
Phoenix |
Red Lake, Ontario |
477,000 |
14.5 g/t |
2,317,000 |
17.0 g/t |
2,794,000 |
$897M |
|
Mega Precious Metals MGP-V |
Monument Bay |
Manitoba |
1,046,010 |
2.5 g/t |
1,726,674 |
3.78 g/t |
2,772,684 |
$38M |
|
Eastmain Resources ER-T |
Clearwater |
Quebec |
632,000 |
5.86 g/t |
1,037,000 |
6.06 g/t |
1,669,000 |
$87M |
|
North Country Gold NCG-V |
Three Bluffs |
Nunavut |
678,000 |
4.9 g/t |
829,000 |
5.69 g/t |
1,507,000 |
$28M |
|
Eagle Hill Exploration Corp EAG-V |
Windfall Lake |
Quebec |
538,000 |
10.1 |
822,000 |
8.76 g/t |
1,360,000 |
$25M |
|
Maudore Minerals MAO-V |
Comtois |
Quebec |
- |
- |
1,200,000 |
4.6 g/t |
1,200,000 |
$71M |
Christopher Skidmore
Beat the Market Stock Picks
CSL’s
work program this summer has yielded a discovery that may be similar to
Kinross’ Golden Saddle. It is within a projected trend to the north of
golden saddle and it covers a large area similar in size to Golden
Saddle giving a very large exploration target, and potentially
multimillion ounce gold deposit with grade. Comstock Metals has already
defined gold mineralization over a strike length of approximately 400
meters at surface. With grades typically ranging between 1 g/t and 4
g/t Au over trenches widths between 45 and 95 meters wide… you know this
is going to be quite a significant discovery even before this virgin
property has been drilled. If it is anything like Golden Saddle, we
will get our 100 meter to 150 meters of continuous mineralization to
depth.
