Update from the Allan Barry Reports
Brought to you by Advance Gold (AAX.V)
VR Resources (VRR.V)
VR Resources had news out earlier today, from one of their projects in Nevada. They reported very good surface sampling results, which usually don’t get me too excited as they can be challenging to reproduce when they get drilling. But, what peaked my interest, and why I want to add them to the radar screen is because they found evidence that they have an epithermal vein system. Of course, it is also in an important region of Nevada, if a company finds something in Nevada, with not too much stock out, it can do wonders for the stock price.
Before getting into the results and why I like the project, I wanted to mention the person running the company. For long term folks that have been watching my reports, you will remember Hathor Resources, which I picked very early, long before they were taken over. Michael Gunning was the top guy at Hathor during that period, so he has lead a past pick that later went on to being a takeover. We call those Hall of Fame picks, hopefully he is ready to do it again.
The veins found in epithermal systems come in clusters, and their sampling suggests they may be onto something exciting. The results from today come from their newly staked Clipper property, it is on trend and compliments their Danbo and Amsel properties. These three projects are located in the Walker Lane belt of west-central Nevada.
Their early exploration of the Clipper project was mapping and sampling. Which revealed gold-silver epithermal quartz veins coming to surface. They also found silicified zones as well. These are all pointing them toward a cluster of epithermal veins with indications they are close to the heat source. Basically these are very strong indicators that they will have success with their drilling to find mineralized epithermal veins.
Additionally, the mapping and sampling indicate that they have a series of parallel vein systems that cover 1.2-1.5 kilometres. These are sizable, which says a lot about the potential for size and that the entire system is intact. Often times in these kind of systems, a couple of veins that outcrop, can be a precursor of a lot bigger system at depth and the potential for blind veins that don’t outcrop to be found as well once drilling gets underway.
There is a good quote in the news release, that puts the results into good context. Commenting on the news today, VR's CEO Dr. Gunning stated: "While the Clipper property has stand-alone potential based on the number of gold-bearing veins and the overall dimensions of the quartz vein system, it also serves to confirm a district-scale ‘Big Ten’ strategy and exploration model going forward. Concurrent exploration at all three properties and throughout the trend will benefit from shared synergies and leveraged learning; overall, the Company will have the ability to evaluate and prioritize the most fertile parts of a structural corridor and mineral trend more than ten kilometres long of gold-bearing quartz veins. The size of the nearby Round Mountain epithermal gold system underscores the relevance of the potential of the Big Ten corridor, based on their similar ages, setting and chemistry."
This one is very early stage for me, pre-drilling is not what I’m really into, but, with the people involved, the quality of the project, its location, and the recent results, it is definitely one for folks to keep an eye on. Especially when they announce that they will be drilling, which is the key information I will be watching for to report on them next.
Past Picks Making News
Considering that I had a new pick for the radar screen, I also wanted to use this report to highlight some of the picks from past reports with news out since the weekend report out a few days ago.
Great Bear Resources (GBR.V)
Great Bear got its first brokerage house analyst coverage from Canaccord Genuity analyst Kevin MacKenzie. He rated Great Bear Resources a "speculative buy", with a target price of $4.75. He is the only brokerage house analyst to cover the company, I expect more to follow.
Advance Gold Corp. (AAX.V)
Advance Gold, where I’m the President/CEO, announced earlier today that we are doing a 5 million unit private placement to raise $325K. The units are priced at 6.5 cents and have a full two-year warrant at 8 cents. Part of the funds will be used for upcoming drilling and insiders will be participating.
Newrange Gold Corp. (NRG.V)
Newrange announced preliminary metallurgical tests today that came back with promising gold recovery results. Although this is good news, to me it is way too early in the projects development to be working on metallurgical tests. I call it a putting the cart before the horse kind of move, and it scares me that the company might also be in a hurry to do resource and economic estimates that tend to cap the upside potential. After all, I just picked them because they twinned a previous reverse circulation with a core hole that showed they were losing gold in the reverse circulation drilling and got much better results with core drilling. First things first, I would like to see them figure out if they will switch to core drilling, then I would like to see them get busy core drilling to drill it to sell it.
Amex Exploration (AMX.V)
On Monday, Amex reported very good drill results, with a high-grade interval of 214.71 g/t gold. This was from their Eastern Gold Zone at their Perron project in Quebec. They have only drilled 5 holes into this steeply dipping narrow vein, and the hole reported yesterday was the closest to surface. They have shown that from top to bottom on this vein they have bonanza grade gold. They have also stepped out 25 metres, along strike, and found visible gold in the hole, results from this step out hole are pending. The drilling of the high-grade zone is ongoing and we look forward to more results. Initially, the stock sold off slightly, it certainly had to be profit taking as these results give zero reason to sell and plenty of reasons to buy.
This week is Chinese New Year, which has a way of seeing gold soften with the Chinese out of the market for the entire week. Despite this, gold is being reluctant to give back any of the recent gains, even though USD has also firmed up slightly.
I’m really liking the way gold is trading over the past couple months. Plus, the cheap valuations in gold stocks. This combination is setting up a lot of explorers, smaller developers and middle tier miners for outstanding gains in 2019.
There you have it, a new pick for the radar screen, and some updates on picks from past reports that had news out in the past couple days.
All the best,
Allan Barry Laboucan
Allan Barry Reports
Advance Gold (AAX.V)
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.