Lately, I’ve been shifting things around with my picks, I dropped some picks from earlier in the year to make way for a group of new picks. There is more than just locking in profits on some very big gains in picks that I felt had made a large part of the run I expect from them. Another big reason is that I see we are now well into the early stages of a multiple year bull market for gold and other commodities.
Since the bull market for gold got underway early in 2016, I’ve seen a couple really important trends develop. Concerning the kind of deals money are flowing into and what that reveals about the key areas that need investment in the gold mining business.
The newest member that I’m pleased to announce today is Tarku Resources (TKU.V), which is a company I recently added to my radar screen picks. I discovered them through the Zombie Search and Rescue Mission shows that I do with John Kaiser. In them, we are trying to find companies that are being treated like they are junior mining zombie stocks when in reality they have the realistic potential to come back to life.
It takes more than just a really cheap valuation to turn any company around, in the junior mining space that is no different. Before going into the indicators that attracted me to Tarku, I want to go back to those trends in the gold mining sector.
One of the key trends giving me a ton of confidence this gold bull market can last for several years and rival the 2001-2011 gold bull market. I’m seeing a nice trend in the kind of stocks the new money flowing in is going to as gold has gained strength this year. The stocks have been high-quality which tells me that this time around investors are getting better at finding quality and we are seeing better asset allocation. It is focused on quality plays; it isn’t a bull market that is driving the prices of just about any stock with gold projects much higher.
The other key trend I’m seeing that is giving me confidence is with new investors and those already in the sector, they are much more aware of how weak the gold supply chain is. Especially in the exploration space. The reality is that the industry is in dire need of new gold discoveries to replace what is being mined every year. I’m seeing sort of a renaissance in gold exploration that is bringing an enthusiasm that I haven’t seen in many years.
My experience as a consultant to junior mining companies has always been focused on exploration. I’ve been a treasure hunter for nearly three decades. Working so closely with junior mining companies has opened several opportunities for me to learn from talented geoscientist. I’m an exploration guy to the core, so I’m really excited to see more focus on exploration.
Not only do I see exploration success in high demand in the gold mining space. It is also the segment of the gold mining sector with the poorest in-depth coverage. This high demand for success and lack of coverage fits right into my wheelhouse. Combined with stronger prices for gold, which is shaping up to have legs for years, and is giving me the confidence to focus more of my coverage on exploration that includes grassroots.
Tarku Resources has a very interesting grassroots gold exploration project that caught my attention. It is in Quebec, just off the new highway that is being built to open up the region of Quebec where the Stornoway diamond mine is located.
What makes their project interesting is that it is located beside a gold mine and it shares the same geological structure as the mine. Exploration is underway on this structure between the mine and Tarku’s claim boundary. The structure is pretty easy to see in the geophysics and Tarku’s geology team are planning a surface sampling project to test the exploration potential. In addition to this area at the northern end of their claims, they have other obvious geophysical anomalies that they will do surface sampling on as well.
In addition to looking for companies with quality projects. The valuation and people involved in trying to build a company have to be there for me to want to pick a stock for my reports or to invite a company to be a member of my website sponsorship program.
Tarku Resources has a small amount of stock out and a low stock price so their valuation is tiny which puts them very early in their growth curve. I like to get involved with these kinds of companies because the potential for growth is still ahead of them. These are also some of the reasons that Sylvain Laberge recently moved from being just a shareholder to become the president and CEO of Tarku.
I’m so happy they have decided to join my website sponsorship program because they are the kind I want to help gain a larger audience and grow into a bigger company. I also know my audience will be interested in following them along the way.
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 started in January 2016, 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.
In addition to covering 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 website sponsorship program in January 2016.
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 Tarku Resources has given me the chance to showcase them and my website sponsorship program. The website sponsorship program is $12,000.00 per year; I’ve received payment and will use part of the funds to purchase a position in the stock after this report is out to my subscribers.
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 projects.
I would like to thank the management of Tarku Resources for joining my website sponsorship program. Sponsors and consulting clients make my work possible. On behalf of my audience, thank you.
A few weeks ago, I had the chance to meet with Sylvain Laberge, he reached out to me because he wanted to tell me his plans to build Tarku into a bigger company. We had a nice chat, he also brought the geophysical maps with him and he showed me them and how close their project is to the road being built to open up the region near the Stornoway diamond mine.
It takes more than just being located near infrastructure to catch my attention. What got me most excited about the project is when I looked at the geophysical work, I started to explain to Sylvain what I saw. He told me the two key anomalies that I picked is where his geologists were in the process of planning a surface sampling project.
This is really early stage exploration, so to move the project forward they will need to find something in their sampling.
Sylvain Laberge is an entrepreneur that has been involved in the mining sector for several years, including working with Renmark Corporate Communications. They are a large investor relations firm with a strong roster of clients. His job was to market their client mining companies to investors, this is the same kind of stuff that I’ve done in the past, we speak the same language.
He gets that the company will want more than one project and they have a uranium project in Saskatchewan as well, not far from one of my other picks Uravan Minerals. Like any exploration company, they are always on the lookout for new projects. I have several contacts in Quebec and will see if I can open some doors for them to look at projects of merit.
Tarku Resources has a tiny market valuation, has recently brought in a new president and CEO, with an interesting gold project and a desire to grow into a bigger company.
I’m happy to be able to follow them closely and help them gain a new audience and I like the chances to watch them grow into a larger company that has exploration success.
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.