Brent Cook of Exploration Insights newsletter was on the popular BNN show Market Call this morning discussing junior mining stocks. Mr. Cook believes the junior mining sector is nearing a bottom and bouncing along the bottom currently.
Here are my quick notes from the show and Mr. Cook’s comments on companies mentioned.
Top picks – Pilot Gold (PLG:TSX), Mirasol Resources (MRZ:TSXV), and Reservoir Minerals (RMC:TSXV)
- Pilot Gold – Mr. Cook likes the management. Nothing immediate happing here no need to chase but can accumulate over the summer. Brent was just in Turkey like the way country is developing its mining code. Technically competent and has about $15 million in the treasury. Brent likes the potential of the TV Tower project in Turkey.
- Reservoir Minerals – Great group. Has $30 million in cash will last 5 years at current burn rate. Has a project JV’d with Freeport in Serbia. Freeport currently doing deep drilling with 4 rigs on site.
- Mirasol Resources – Has about $21 million in the bank from previous sale of project. Steve Nano is one of the top. Project in Chile being drilled by JV partner Yamana. Yamana is spending $2 million drilling project this year.
Other companies mentioned.
- Integra Gold (ICG:TSXV) – Does not own. Just recently sat down with the Integra team in Vancouver concerned about how well the veins hold together to be mined. The PEA and resource they have “needs to be completely redone it just doesn’t hold up.”
- Trevali Mining (TV:TSX) – A problem with mining companies that go into production shareholders diluted as companies raise cash to build mine(s). A great call on zinc a lot of the analysts in Canada like it for that reason.
- Mag Silver (MAG:TSX) – Does not own any more used to and made good money on it in the letter. Probably the best silver deposit held by a silver junior (maybe Tahoe). Fresnillo is going ahead and building production in 2018? Worth holding on to. Top silver name would be Fortuna Silver (FVI:TSX).
- Lake Shore Gold (LSG:TSX) – They have made another discovery at the 144 zone. Three companies Lake Shore, Kirkland Lake, and Claude have done really well in Canada. Does not own but has certainly done well. Nothing wrong with it. Brent prefers more early stage equities.
- Miranda Gold (MAD:TSXV) – Partner is developing a project in Alaska of which they will get some revenue off. Project generator focused on Colombia. Probably a good time to be in Colombia as no one is focused on it .Small company with market cap of only $6 million.
- Nevada Zinc (NZN:TSXV) – Nice intercepts but all oxide. Zinc oxides are very difficult to treat and recover. Needs to do metallurgical studies to determine if recoverable.
- NexGen Energy (NXE:TSXV) – Brent is holding Fission (FCU:TSXV) deposit is open-pit able and made new discovery on land. NexGen has made a fantastic discovery but it is deep probably not open-pit able. Fission something someone would probably buy not so sure on NexGen. Does not own NexGen currently.
- Skeena Resources (SKE:TSXV) – Wish he knew more about it. Does not know enough about it to make a fair comment. High praise for Ron Netolitzky though.
- Midas Gold (MAX:TSX) – Probably the best developed gold project in the United States beside projects owned by the majors. Large project.. high capex with a long permitting timeline. Great leverage to the price of gold.
Past picks RoxGold , Synodon, and Mirasol Resources.
RoxGold (ROG:TSX) – Sold in October 2014 sold due to political problems in Burkina Faso. Company has done well fully funded good project.
Synodon (SYD:TSXV) – Out of this one as well. Sold as cash flow did not develop as hoped. Needs to finance. Long term looks like good company. Measures gas leaks on producing pipelines.
Mirasol Resources (MRZ:TSV) – Mentioned as top pick.
Columbus Gold (CGT:TSXV) – Brent just flew in last night from looking at the French Guinea project. Government has mapped out where you can mine. Large deposit of 4 million ounces. Has Nordgold has a partner which has to produce a feasibility study to earn 50%. A PEA should be out shortly. Nevada projects Brent has looked at on paper.
B2Gold (BTO:TSX) Owns B2Gold. One of the few mid tier gold producers with two high tier mining assets coming online. One of the better mid tier companies out there. Technically a very solid group.
Novo Resources (NVO:TSXV) – On to a Witwatersrand basin type deposit in Australia. High praise for Quinton Hennigh . Brent owns it but it is not in letter due to relationship with Quinton.
Eurasian Minerals (EMX:TSXV) – Owns Eurasian and has for quite a long time. One of the better project generators. Owns a piece of a big copper deposit in Russia. Russia not very popular. Would be a big key if they could sell this asset.
Belo Sun (BSX:TSX) – Large deposit in Brazil that has had the feasibility study redone for smaller operation. Something a major could buy needs to get final construction permit. Agnico-Eagle is getting 8 million ounces pretty cheap if the permits come in and the gold price rises. Agnico holds about 17% of Belo Sun.
Kaminak Gold (KAM:TSXV) – Kaminak is owned and in the letter. One of the few good projects out there that offers a relatively low capex to build. Originally had concerns about project being that far North but went through with technical guy and believes it can be done.
Denison Mines (DML:TSX) – Brent owns Denison as a spin out of Fission. One of the best positioned companied in Athabasca Basin.Well positioned for a takeover. Long term fundamentals in uranium are strong.
This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.