CEO Chat lived up to its slogan – “the investment conference in your pocket” – last night as newsletter writers Brent Cook, Eric Coffin and Gwen Preston shared their thoughts on junior mining projects and companies that are in the news. Geologist Rob McLeod and engineer Tim Oliver also weighed in.
Junior resource plays that came up included Gold Standard Ventures (which recently announced two intercepts in Nevada that moved the stock 30%), Integra Gold (resource estimate update on Triangle Zone) and NexGen Energy (drilling the Arrow project in sw Athabasca Basin towards a maiden resource estimate).
Exploration Insights editor Brent Cook sounded a note of optimism for the sector and said the mid-tier golds might be the first to move: “I think we are bouncing on bottom but close to end. I really feel the time to buy is getting close, or now. And as Eric knows, I have been rather negative for 4 years now.”
Here are some of the highlights, but there was plenty more good analysis and information – go check it out starting at about the 17:05 mark, Nov. 12.
Gold Standard Ventures (GSV-V)
Gold Standard’s latest intercepts, including 157 metres of 1.51 g/t gold on Tuesday, got the market’s attention and drove the share price higher. The latest holes were north of the Dark Star gold deposit in Nevada’s Carlin Trend, close to Newmont’s Emigrant mine.
Geologist Rob McLeod, a Gold Standard director, outlined the bullish case for the Nevada gold explorer and developer.
“The discovery of this great host unit was essentially blind, with previous holes intersecting leakage in not-as-good hosts (conglomerates) etc. Carlin-style mineralization likes particular geologic units like limestones,” said McLeod, CEO of IDM Mining. “$GSV has the second largest land package in Carlin trend, after Newmont. Northern Nevada is the richest area on the planet for gold mineralization, period. Advanced, near surface oxide, heap leach, as well as higher-grade potential in areas such as north bullion (assays for three holes pending).”
McLeod and Eric Coffin emphasized that more drilling will be needed to further define the structure, and Cook sounded a note of caution based on the lack of information on historic holes on the property.
“How can you possibly invest in a 124mil company if you don’t know what the hell the other holes hit?” Cook stated. “Until I know what those historic holes did etc.I can’t possibly recommend buying this. And IMO, those holes should have been on the map in the NR.”
CEO Chat regular @90bigpicture cut to the chase: “on the investment side, C$127MM market cap, C$17MM of cash per latest presentation, the question comes down to two things…can that C$17MM generate enough value through the drill bit to trigger a Cayden like takeover scenario of C$250-300MM (I’m being conservative as I don’t think the days of Long Canyon take outs are coming back). What sort of zone size and grade is needed to get the attention of someone like Newmont?”
Integra Gold (ICG-V)
Integra has fans of its creative Gold Rush Challenge as well as critics who wonder about the continuity of its high-grade veins at the Lamaque project near Val d’Or, Quebec.
Brent Cook said he needed to do more work on Integra: “I need to go thru the sections in detail on the steep C veins. That is the big question and will take some real deep digging. Good team and smart.”
Eric Coffin: “As @Rob said (and Brent has said) some of the skepticism on $ICG was the flat veins. If the steeper structures have “dots that connect” that will help a lot but you can’t tell from a news release. Sections from the report will be needed. Nice to see the increase in resource in the steep veins that may be mineable – less sure the flat ones will be so that was good to see.”
Integra’s open-data Gold Rush Challenge also earned kudos from newsletter writers and chat participants. The company is offering up $1 million in prizes to those who can find the best prospect for the next big gold discovery at Sigma/Lamaque. More than 700 people from over 65 countries have signed up to receive access to the data since the contest began.
McLeod: “Like the original Red Lake Challenge, it’s the ideal data set…older mining camp, thousands of drillholes and data points, variety of mineralization styles and structural controls. Lots of room for creative geology. And the winners will likely get a massive career boost like Mark O’Dea and David Stein got as runners up.”
NexGen Energy (NXE-V)
In response to a question, Brent Cook expressed some skepticism about the southwest Athabasca Basin play that is a popular pick among many in CEO Chat (including me). He said he “doesn’t see” a 200-million-pound resource at the Arrow project, but didn’t want to make a prediction. “tough to call as not the best sections etc and really this takes some real geo-stats. But 200mil is monster and I think unlikely.”
He compared the 400M-lb figure thrown out by @low-ball to the “90 million oz at Barkerville.”
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I own shares in NexGen Energy. This is not investment advice and all investors need to do their own due diligence. The “experts” can be wrong, too – especially in this sector.