Earlier this year, I launched a new website sponsorship program, I’m happy to announce Sirios Resources Inc. (SOI.V) has joined the program.
One of the themes that I’ve been talking a lot about since we ended the bear market in gold in mid-December 2015 and started a new gold bull market, was that I expected fewer companies would participate. My logic is that the bear market was painful, in the new gold bull market investors won’t be as quick to buy just any stock with gold in its name. As new money starts flowing back into gold stocks, investors will find there aren’t a huge amount of companies with exceptional projects regardless of whether looking at explorers, developers or miners.
When looking at a company I want to cover in the report or to invite to become a member of my website sponsorship program, I’m looking for the same attributes. I look for companies with gold projects in a mining-friendly jurisdiction, where there is well-known geology and lots of potential. After that I want to see a good team running the company, but the most important thing is the drilling. They have to deliver with the truth machine, if the drill rig is singing I’m listening.
Sirios Resources delivered exceptional drill results from drill hole #52 at their Cheechoo gold project in Quebec, in late March. On the day they reported these results, I had my friend Andre Gaumond from Osisko Gold Royalties on for a show. I wish I could say I was smart enough to invite the guy who found the Eleanore Mine in Quebec on a show, the day an exploration company had announced remarkable drill results on a project next door to the Eleanore Mine. I’m not. But, he was aware of the assay results and enthusiastic on the project which was part of the reason I was comfortable enough to take a flyer on the company and start coverage.
I’m really lucky, as are my viewers, that I’m able to get some of the sharpest people in the mining industry on my shows. Another regular guest is John Kaiser, he has been on several shows and has been absolutely on fire with his picks. In fact, he talked about one of his picks Sirios Resources on shows prior to the drilling results. He walked the audience and me through the entire exploration theory and helped us get a clear picture on what they were exploring for.
Within a few days after they announced drill hole #52 had hit 20.3 metres of 12.08 g/t gold at their Cheechoo project, I took a flyer on Sirios and started coverage on Apr.7/2016. I invite people like Andre Gaumond and John Kaiser on for a reason, so my audience and I can learn from them. We learned a lot, and other people I respect, like regular guest Eric Coffin and Gwen Preston have all jumped on the Sirios bandwagon.
It is important to stress this is an early stage exploration project, much more work is needed. Hole #52 is the kind of hole that catches a lot of smart people’s attention. They have a group of holes still pending and I’m expecting they will be able to help us get a clearer picture on what the recent program that included drill #52 has encountered and guide the next phase of drilling.
Since releasing hole #52, they have received a much better valuation and were able to complete a financing that put them in a great position to move the project ahead with aggressive exploration. Another impressive aspect of the private placement was who participated. In addition to a bunch of the Quebec-based mining investment funds, they also had Osisko and Goldcorp take large positions.
Now that they are well funded, and have impressed the folks next door that own the Eleanore mine and the company the guy who found Eleanore helps run is also in. I’m most excited about what they can learn from drill hole #52 and the other holes from that drill program so they can put together a comprehensive exploration game plan for the next phase of drilling that is just around the corner.
The Business Part
My reports are made possible through website sponsorships and consulting work. I’ve been changing my reporting lately, I used to cover many companies at a time. In the new gold bull market that has just started, I expect fewer companies will participate than during the last gold bull market. In this kind of a scenario, investors will need to be solid stock pickers, and understand the stocks they own, my website sponsorship is a great service for sponsors and my audience.
This is why I not only want to cover fewer companies, the ones I cover, I will be covering them more extensively. In order for me to cover companies more extensively takes more time and is costlier to produce. This is why I put together the new website sponsorship program, with the sponsorships I cover the costs of the added coverage for them and to produce my other reports for my readers and viewers at no cost.
As more companies learn what the program delivers in coverage and reach, more will come as they learn how I use digital tools to promote my work and highlight my sponsors in the reports. I’m pleased that Sirios Resources has given me the chance to showcase them and my website sponsorship program.
The website sponsorship program is $12,000.00 per year, and I will be using part of the proceeds to purchase shares in Sirios upon receipt of payment.
I’m not the only commentator that has website sponsors. What makes mine different, is that website sponsors don’t get to review or edit my written or video reports, they see the reports when everybody else does. This way, you will know that it is my opinion of what is happening, I read their news and present my views when there is significant news out. I think this takes confidence from the sponsor company in my reporting and their project.
I would like to thank the management of Sirios Resources for joining my website sponsorship program. Sponsors and consulting clients make my work possible. On behalf of my audience, thank you.
Quebec is one of the best mining-friendly jurisdictions in the world, the James Bay Lowlands is one of the best parts of the province for exploration and mining, Eleanore is in the James Bay Lowlands and is one of the best gold mines found in Canada during the past couple decades. Sirios has a great exploration project, right next door to the Eleanore mine and has all the usual suspects in Quebec putting their money into the company.
Since launching my reports in 2005, I’ve picked a lot of companies, but only two of those were in Quebec. They were Osisko and Virginia, I was in early, stuck with them as they moved forward as Osisko transitioned from an explorer to a producer, then taken over and re-emerging as a Royalty company who then merged with Virginia Gold.
Quebec has treated me and my audience extremely well, and I’m really happy to add Sirios to my adventures into Quebec. I’m looking forward to learning more from the pending drill holes and seeing the updated exploration drill plan based on drill hole #52 and the others, then get cranking with the truth machine. I’m confident we are looking at a Quebec gold project that is not easy to find and one we will watch emerge as an important gold discovery.
Next up for coverage, Sirios will be attending the Metals Investor Forum this weekend in Vancouver, I will also be attending. It is going to be a great opportunity to get together with Dominique Doucet, CEO of Sirios, to do our first interview show.
All the best,
Allan Barry Laboucan
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.