From the Allan Barry Reports
Brought to you by Advance Gold (AAX.V)
In plenty of the recent reports, I’ve explained several aspects of why I’m so bullish on gold. Including expressing my belief that we are in the early stages of a multiple year bull market for gold like the 2001-2011 bull run. I’ve also picked a group of companies that I think will outperform gold.
Prior to 2012, the Canadian business television station BNN had a keen interest in reporting on mining. Including down to the exploration companies, the coverage was very good. During 2007-2012, I was fortunate to be a guest on many shows, it helped open a bunch of doors, and grow a significant audience of investors that follow my reporting on junior exploration.
After the gold bull market slowed down, they changed their production team and ownership. After 2012, the coverage for exploration has dwindled down. It leaves a void for content to investors interested in the space. Especially at the new developers and exploration end of the business.
The small end of the mining business is crucial. Majors aren’t very good at finding new mines, they are focused on mining. What they mine, they need to replace, that is done through exploration. But, we have had long periods of serious underinvestment in exploration over the past couple decades. The rate and size of new big gold discoveries has slowed down and dramatically smaller in the past two decades.
The mining sector is in drastic need of new discoveries, with robust economics that make the exploration sector crucial in mining. Sadly, the media coverage of the sector is lacking.
I try to do the best I can, to produce good content in written reports and video shows. I am a one man band, so, I can only do so much. Although, I have opened up my website sponsorship program and consulting services for business again. My goal is to hire some people and crank out more top quality content on the exploration sector.
One of my favourite shows when I was interviewed on BNN was the call in shows. People would phone to ask questions on stocks they followed. It was very rapid fire, the production people would tell me a symbol in my earpiece, I would give the sign if I knew of the company.
Then the caller would come on and ask their question. I have a fairly good memory for details on a large amount of companies I follow and especially on my picks. It was very fast and I really liked it.
I also love the question and answer period when I’ve done public speaking engagements at past mining conferences. So with these things in mind, I have a new format for this report.
I’m going to talk about a group of companies that are on my watchlist, and also about why they aren’t picks. I will also give the 30-second overview on the current picks as well, and I have couple moves on current picks that will be going back to the watchlist.
Okay, let’s roll with the watchlist and current pick 30-second elevator pitch, if you will. Companies are in alphabetical order. It will be sort of like one of those word association things with the therapist. The junior mining stock therapist...
I know the leader of the company, Mark Kolebaba, we have crossed paths for many years, going back to diamond exploration days. He is a very talented explorationist. But, he has been chasing something for several years in Washington state. There are mills near that could process the material and need feed. Problem is, the truth machine isn’t cooperating, and now they have over 140 million shares out. They have a lot of shares out and a healthy overhang of folks looking for an exit. Plus, they have tested a lot of targets, and only returned sniffs of potential. Maybe they have one last chance for a hail mary pass of drilling. If that doesn’t deliver, they are a roll back candidate, they might be, even if they do hit. The project is broken and so is the share structure.
Advance Gold Corp. (AAX.V)
I’m the President/CEO of Advance Gold, this is my baby, I’m using my years of experience to build Advance Gold. I use all the lessons, the bad ones to avoid and the good ones to emulate from my decades in exploration. Project quality and a tight share structure drive my efforts. On a small budget, we have found a cluster of epithermal veins, in a region of Mexico, world renowned for mining these kinds of veins. 30% of gold and silver come from epithermal vein systems, 10% of the world’s silver, historically and to this day comes from Zacatecas, Mexico mining epithermal vein systems. It looks like we have hit the top of a large system with a cluster of veins, next we need to go deeper to target the boiling zone. I hope to have drilling developments to talk about soon. In my personal opinion, I believe that Advance has one of the best potential to valuation setups in the exploration space.
Amex Exploration (AMX.V)
Date started coverage: Jan. 27/2019
Closing price on date coverage started: $0.58
Today’s closing price: $1.04
Amex has delivered as a stock pick and with the truth machine. They have an exciting high-grade gold discovery in Quebec. I love Quebec projects, over the years, Virginia and Osisko treated my readers well as picks. It is one of the best jurisdictions in the world. What drew me to Amex is the bonanza grade gold results from drilling on their high-grade zone. On the high-grade zone, they drilled five holes, hitting bonanza grades from top to bottom. It is a vertical zone and they have drilled for a vertical extent of over a couple hundred metres. In addition, they have a 25-metre step out hole in the lab that was reported to contain visible gold. The known zone is open along strike, this step out hole could open things up big time, and they have the depth potential open as well. They have around a $50 million valuation. Considering what they have found so far and the potential of what they are looking for, the valuation is a bargain.
Aurania Resources (ARU.V)
This is Keith Barron’s company, he is the chairman and CEO. He is a well-known name in exploration as he is a co-founder of Aurelian Resources, that found the Fruta del Norte project, where they made a big high-grade gold discovery, and were taken over. Fruta del Norte is now being built by Lundin Gold. Keith Barron is looking for something at his Lost Cities project. I saw the promotional stuff on this project that made me think I was watching one of those old movies, with a legend of a big gold mine, and a riddle for directions on an X marked map. So far, the search for the X has been confined to surface samples and no drilling. Like in hockey, you can’t score if you don’t shoot, in exploration, you can’t hit if you don’t drill. They don’t have a lot of stock out, but, a pretty rich valuation around $100 million for a surface sampling company. I’ll get more interested if they get drilling and find something with the truth machine.
Aston Bay (BAY.V)
Aston Bay has been exploring in the Arctic for a sediment hosted deposit like the ones that make up massive deposits in Africa. It is a big story, adding to the promotion is they have Dave Boughton involved who helped find big deposits of this style in Africa, when he worked with Robert Friedland. For the past couple summer drill campaigns, the promotion gets worked up. In spring of 2018, I even literally heard the this could go from 10 cents to 10 bucks stock pitch. I looked closer at the geology maps, drilling and sampling, plus geophysics. I publicly stated that they were wildcat drilling geophysical anomalies. Their results proved that conclusion, with sniffs at best. Nothing that smelled like a big massive deposit like in Africa is up in the Arctic. It ain’t cheap to drill up there, and now they are getting diluted, with over 100 million shares out and the stock trading at all time lows. Now they need to go back to square one in the Arctic at their Aston Bay project. They have moved into Virginia now and hooked up with Don Taylor. Some of you might remember the name Don Taylor, or his company Arizona Mining. Before Arizona Mining made their big discovery, John Kaiser was on a couple interviews at Allan Barry Reports and presented the entire exploration story. They proved up the potential and were taken over for an impressive success for investors. Now in addition to expensive exploration in the Arctic, they can do more exploration for less money in Virginia for base and precious metals. They have a strong overhang on the stock, which puts them in a tough position, they need a lot more money to drill in Arctic and Virginia, plus, the share structure is broken. I’m an innocent bystander until I see something from the truth machine from these guys.
Equinox Gold Mines (EQX.V)
Date started coverage: Oct. 28/2018
Closing price on date coverage started: $1.00
Second picked date: Dec. 17/2018
Second pick closing price: $0.95
Today's closing price: $1.12
Equinox is an easy story to tell, it is a Ross Beaty company, he has mentioned that this is his swan song in the industry. He feels a big bull market for gold is coming, he has put together a portfolio of mines to take advantage of the coming golden bull market. He has put a lot of his own money into buying the stock and has more he is prepared to invest. They aren’t messing around, they are buying mines and development projects that will turn them into a middle tier producer quickly. He has been a serial value creator for his shareholders and I think he will do it again. I see Equinoz as a core holding for investors that want exposure to gold mining stocks. I will close on highlighting the fact that at its current stock price, investors are able to get in right around the same share price as Ross Beaty. That often turns out to be a good wager.
I have a bit of a love/hate type relationship with Garibaldi. I hated it a couple years ago, when it got pumped up to a crazy valuation, on the hope it would be the next Voisey’s Bay sized base metal discovery. They got sniffs with the truth machine that had very high-grade nickel results. Those results didn’t meet the hyped hope, and the stock has come down a long way. Then, in late 2018, I turned from a vocal bear, to a bull on the project. Prior to drilling in the summer and into the winter of 2018 my hope was based on they were going to find size to go with the high-grade results. There has been very little on news from the long ago completed drilling, and when the assay results are slow, it doesn’t mean good news. It looks like the market is concerned the results might be similar to 2017 drilling, and hasn’t delivered the thick intersections of massive sulphides that can turn on the hope again for the next Voisey’s Bay. I still think they can, but, the long delays in getting the lab results from 2018 drilling, is indicating this will be a 2019 exploration season play. When the 2018 results finally come out, watch the market closely, it might offer a chance to get a lottery ticket for 2019 drilling on the cheap.
Gold Standard Ventures (GSV.T)
Back in 2016, these guys had a tremendous year, they started the year at around 50 cents, then hit an all-time high topping at over 4 bucks. They are a perfect example of what can happen if a company catches the market’s imagination with a Nevada gold discovery. Since then, the truth machine has not really caught the markets imagination in the same way. Yet, they still command a healthy valuation of over $400 million. Sure, they have interesting projects, but, that valuation, and the share dilution is way too troublesome for me. I will continue to be a watcher of this one, because the ticket price on this wager is too expensive.
Great Bear Resources (GBR.V)
Date started coverage: Dec. 17/2018
Closing price on date coverage started: $2.01
Second pick date: Jan. 21/2019
Second pick date close: 2.59
Today's closing price: $3.78
A gold discovery between 5-10 million ounces, is what everybody is looking for in gold exploration. Many say they are looking for something this big, but, struggle to have the drilling agree with them. Great Bear is sporting a $200 million valuation for a couple reasons. The bonanza grades from drilling, recently included 1600 g/t gold over 0.70 of a metre, that is 50 ounce rock. They have also recently produced a 3D geological model for their Dixie Lake project near Red Lake. It looks like they have a classic Red Lake target, a key structural story similar to the Red Lake mine. I worked with Bob Singh, the leader of their exploration team for many years. He is a talented explorationist and is also equally as talented with geological software. They did a webinar, in it, Bob provides an explanation of what they have found, the size potential based on structural story, and how the current drilling is leading them along strike and at depth. It helps one get an idea of how big the system could be, considering it is wide open along strike and at depth. The market is suggesting they are shooting for something in the 5-10 million ounce range, it is a high-grade to bonanza grade gold system, it can realistically be a big high-grade gold discovery with the potential for high margin ounces in a mining operation. I think they are a strong candidate to be bought out within a year at a significantly higher valuation. Big, high-grade, high margin gold discoveries don’t come along very often, especially just off the main road going into Red Lake.
IDM Mining (IDM.V)
IDM Mining is in the late stages of being acquired, I can’t call it a takeover, it can more easily be described as a takeunder. The stock is being swapped into Ascot Resources shares, with IDM at close to an all-time low share price. The bottom line reason IDM was in the position for a takeunder, is they have a small project, and they had to dilute themselves to the tune of over a half billion shares to show it is a small project. This is a tragic example of the importance to not look for something small, and also to not dilute to the point of a severely broken share structure.
Juggernaut Exploration (JUGR.V)
During the first half of 2018, the stock traded sideways, around the 20 cent mark. Then the promotion started around surface sample results that hyped the stock up to 60 cents. Betting on surface sample results is always a tricky endeavor, made even more tricky when the valuation is hyped up. In the time it took for it to get hyped up, it deflated just as quickly. Now it is back to below 10 cents a share. This is a good lesson to learn about being careful when it comes to surface sample stories. They did get some sniffs in the drilling, so, I will be watching how they do in their next season of drilling.
Lucara Diamond Corp. (LUC.T)
Lucara is a diamond mining company, with a mine in Botswana that has recovered the second largest diamond since the famous Cullinan diamond, found in the 1880s. They changed their processing a few years ago due to the work of John Armstrong. He is a brilliant guy when it comes to diamond exploration and proved himself adept when he determined they were losing diamonds and likely crushing the biggest ones. They fixed their processing, and are now finding the big ones in their run of mine material. The stock has not really been rewarded much, it is now trading near lows it hasn’t seen since 2015. It is trading like they could have issues. Eira Thomas, who some call the Queen of Diamonds, due to her success as part of the Aber Diamond team that found Canada’s second diamond mine at the Diavik project. Eira Thomas joining stabilized the stock for a few months, but, it has since rolled over and plunged down to multiple year lows. Another issue is the company has a lot of stock out, and it looks like the share structure is broken. This points out that, even a really good diamond mine struggles with a broken share structure.
MAX Resource (MXR.V)
This one has really come to life on the stock promotion, it is focused on this could be the next Novo which wants to be the next Witwatersrand gold district. All of them have conglomerate gold stories. The Witwatersrand basin made south African gold mining a world powerhouse, starting in the 1800s. Novo came along a 100 or more years later, with a slick video promotion and some early assays that suggested they might have Wits 2.wow in west Australia. These promotional efforts got them over a $1 billion valuation. Since the highs, the grades in the samples they have selectively reported have been reluctant to meet the hype. Now, MAX Resources wants to be the next Novo conglomerate stock promotion. The plot thickens as MAX’s conglomerate project is in Medellin, Colombia, a place well known for something white not gold. I’ll be watching this one from afar.
Minaurum Resources (MGG.V)
Date started coverage: Oct. 28/2018
Closing price on date coverage started: $0.465
Second date picked: Dec. 17/2018
Second date picked closing price: $0.45
Closing price on end date of coverage (Feb.19/2019): $0.47
Minaurum has very good ground in Mexico, and a serious minefinder in Peter Megaw on the team, he has had big success in Mexico including making the discovery in Mexico, of MAG Silver’s Juanicipio project. Minaurum is also cashed up to do a lot of exploration, with approximately $10 million in the treasury. Since I started coverage the stock has gone sideways despite having a very strong story. One of the culprits is likely their loose share structure. They have over 300 million shares out, that is a lot of stock to move. It will take a really big find, and a lot of work. Maybe they have it at their Alamos project, but, another thing that worries me is the time it will take them to decide which of the veins in the cluster of epithermal veins they will roll up their sleeves to drill off. With the amount of stock out, and the current valuation, I feel like I can become a spectator and wait for more information. I am officially dropping them as a pick and putting them on the watch list.
Newrange Gold (NRG.V)
Date started coverage: Jan. 28/2019
Closing price on date coverage started: $0.195
Today's closing price: $0.21
Newrange is in Nevada, which is one reason I started coverage, the other is the potential that they were losing gold with reverse circulation (RC) drilling that got a lot better with core. Whether that was in the lower grade or the higher grade. This was what they saw with one twinned hole, drilled using core beside an RC hole. They have more twinned holes to announce, I’m eagerly awaiting word on the pending results. If it is anything like the first hole, I would imagine they will be switching drill rigs and will start pounding out more drill holes with core. That will garner a lot of attention and makes them another candidate to attract a Nevada Premium.
Nexgen Energy (NXE.T)
Back in late 2015, this Saskatchewan uranium explorer burst onto the scene when they drilled into high-grade uranium. Saskatchewan is the place to find high-grade big uranium mines. The stock traded around 60 cents for most of 2015, then starting in January, 2016, it really came to life. For 2016, they averaged around $2.00 and by January, 2017, they reached an all-time high of $4.45. It went pretty much vertical, from $1.50 in December, 2016, to by January, 2017 they hit the high. During the going vertical process, I had become a vocal bear on the stock. I actually like what they have found. But, the hype around the deal was crazy, rampant cheerleaders didn’t what to hear about the challenges with the uranium price, or that they would likely have to go the long route to build it into a mine. This was a serious risk, if nobody is in the buying mood, even with something great, you could face a lot of dilution along the development discount window. It ain’t cheap to prove up a uranium deposit, and it can take a decade to go through permitting a uranium mine. Many scoffed, they said the greatness of the discovery would force majors to buy them out. I heard about how much different a Tier 1 asset is. Here we are a couple years later, they are still working through the drilling and moving along the development discount window. Now they have 350 million shares out, and around an $800 million valuation, with the stock on half priced sale since the top. I still don’t see anybody stepping up to take them over anytime soon. Their stock structure looks like it wouldn’t handle a shakeout well. The further along the development discount road they go, the higher the costs go, which means even more stock dilution. A good example of what a broken share structure can do to a great project.
Novo Resources (NVO.V)
Novo is a broken stock promotion that got way out of hand based on a highly promotional video and some high-grade sampling that has never been repeated. It went from a Wits 2.wow story that it could have course high-grade gold for as far as the eye could see, and then some. It was going to be all over western Australia in the Pilbara region. Then they started testing it, then it rained and the lab got too wet, so they took all the wet samples, and only reported a small portion of them. The limited results have been nowhere near the early samples that were well selected for stock promotional purposes. Subsequently, they have proved hard to reproduce in the sampling since then. The limited samples that have been reported were low grade, much lower than the early well selected samples. I have a feeling the remaining results are worse than the low grades reported. The hype machine got the stock up to a valuation of over $1 billion. The arm waving that was so excited about the much talked about vastness, has been tempered. In 2017, the stock went from under a buck to nearly 9 bucks. All on the valuation based on a carefully selected sample, and a highly promotional video of jack hammering out chunks of gold on a livestream. The arm waving has calmed down a lot, as the results of further sampling has been producing “unrepresentative” samples that seem to show things are potentially uneconomic. No wonder they don’t report all the results, the balls might fall out of the air. They have been in a serious correction since they reached their peak, but, they still have over a $300 million valuation. I think the gold is not continuous and that it is still a grossly overvalued price for a ticket on this ride. Sure, they might be able to find pockets that can be mined. But, the valuation is pretty rich to me, considering all they have shown, and not shown. The way things are going they might become a modestly profitable surface miner, just seems way too much to pay for the potential of owning a really good surface miner.
Pure Gold Mining (PGM.V)
I almost picked them recently, after they had put out a resource estimate of a couple million ounces. I ran the quick numbers and it looked fairly valued. After they announced their feasibility study, that only included 1 million ounces, the stock got hammered. They showed that for a low capex of under $100 million, it could produce a healthy amount of gold per year, but, nowhere near what majors are interested in buying these days. They also put the we have to go through the development discount window sign up. Now they have to prove this up and build it. The stock is still down at the levels after the feasibility study. They have a lot of stock out, and when they get through the development discount period, they will have a lot more. I see no reasons to be in a hurry to own this one, happy to be a spectator.
Premier Gold Mines (PG.T)
Date started coverage: Dec. 27/2019
Closing price on date coverage started: $1.56
Today's closing price: $1.95
I was a big fan of Premier Gold as an exploration company, and even more impressed as they have transitioned into being a producer over the past few years. They have found their own, they have bought into others, and they buy in a disciplined fashion. Once they get into a project, they are able to bring success with the drill rig to enhance the potential of the mines. They have an enviable portfolio of projects, from exploration to mines, in Ontario, Nevada and Mexico, with major mining companies as partners. This is an old school mining company that is building itself from the drill hole up. I like their prospects for growth organically, and for the right price of acquisitions, either way they can add value with additional drilling. I see a long term bull market ahead for gold and Premier Gold is well positioned to be a star performer.
Pretium Resources (PVG.T)
Pretium has been an on-again, off-again, pick for me. They have not followed a conventional path from exploration to mining. By doing this, they have drawn the ire of mining professionals that don’t take too kindly to skipping steps that everybody else follows. Instead they found a high-grade gold discovery, in the Golden Triangle of British Columbia, obtained the funding to build a mine, and are a new high-grade gold producer. Along the way, they had been hammered by high profile vocal market commentators a few times. But, they keep getting up and moving forward. The recent bearish commentary has been about the hurdles they faced bringing their mine into production and the mining grades. The mining grades are lower grade than initially estimated from drilling. But, it is still high-grade with healthy margins. Any boost in the gold price and things get more exciting for Pretium. I like their prospects for growth, especially with gold prices getting stronger. For investors that want new producers of gold, there just aren’t a lot to choose from, Pretium’s growth prospects put them at the top of a small list.
Prize Mining Corp. (PRZ.V)
Prize is not such a prize, they are halted, under intense pressure due to decisions made that has foolishly diluted the shareholders. They did a multi-million financial raise, the trouble is, the people who put up the money are also in the stock marketing biz. They had a small condition. We give you millions in cheques, then you give us stock and we say we will provide you with marketing consulting, for the small fee of all the millions we gave in cheques. These expensive cheque swapping financings are all the rage in the crypto, blockchain, and weed space. To such a point that the securities commission has put their foots down. I’m not sure if or when this stock will trade, as the insiders have very little stock ownership, I would imagine all of the broken stock structure is now overhang. I guess the lessons from this one is to be careful out there folks, watch out for management that isn’t too concerned about diluting you.
RNC Minerals (RNX.T)
This company has a remarkable, high-grade discovery of rock just covered in gold. So far they stumbled across the discovery in their struggling underground mine, then opened up some little pockets of buried golden treasures. The little pocket thing is part of the problem, another is that they are almost in, the over 500 million shares out club. With so much stock out, it has a way of overhanging the good news. On the potential for news front, they think they have a geological model, that shows the pockets could repeat and they can target them. If they can prove up the model, depending on how many pockets there are and what it costs to get to them and mine them, maybe they can push through with the anchor of the big overhang. I’m for sure a spectator, no skin in this game. But, I sure do like seeing the pictures of the rocks loaded with gold.
Sabina Gold & Silver Corp. (SBB.T)
Over the years, I’ve picked Sabina at the lows a few times and also dropped coverage with good timing. Right now I have a negative outlook on them becoming a takeover target. I think they took that off the table when they brought in a big Chinese investor. The bulls on the stock, rebut with a yeah, they did that to make sure they get a fair price. I see it as a move that has locked them into a path that will have them go through the development discount window. They are already heavily diluted and the share structure will get looser as they go through the development discount window. I like the project, I think it will be a good mine of the future, that will create a lot of jobs in an area in need of jobs. Based on where they are in the development cycle, and their current valuation, I think there are way better bets available.
Serengeti Resources (SIR.V)
Serengeti is another on-again, off-again pick that I have followed for several years. They have big targets, a big financial backer, but, they are also hampered by the work and reporting seasons. Inevitably if you can time things well, it gives up a couple good trading opportunities for significant gains each year. During this last year, the drilling helped them move up to a higher level. I will still watch it for drops in price with good timing, for the most part, I will watch and hope they do well.
Sokoman Minerals Corp. (SIC.V)
Date started coverage: Oct. 8/2019
Closing price on date coverage started: $0.20
Today's closing price: $0.13
Sokoman recently changed their name, use to be Sokoman Iron, Sokoman Minerals sounds better. These guys have an interesting high-grade gold discovery, it has made some nice moves. My trouble is, my timing hasn’t been good on this one, and when that happens, it usually means I should be a spectator. The high-grade gold they have hit seems to be under a lake, and soon, when the ice freezes enough, they will drill a bunch of holes from the ice to go after the high-grade gold. I have concerns about how big it can be. They drilled to the west of the lake, and didn’t get much. Same with the stuff up to the north. Now they are drilling just to the north of the lake, hopefully they hit there and don’t close it off, or they will be limiting how big it can get. In my books, they have one more shot, from the ice, if they can’t deliver from there, then it is done for me.
Viva Gold Corp. (VAU.V)
Date started coverage: Jan. 29/2019
Closing price on date coverage started: $0.37
Today's closing price: $0.325
Viva Gold has an interesting Nevada gold play, with near surface high-grade gold and broader zones of lower grade. Even the lower grade, looks pretty solid, starting at 10 metres below surface, they hit 100 metres of 1.33 g/t gold announced recently. To put that into context, the average grade of new discoveries industry wide are less than a gram. Plus, they have the high-grade kickers as well. Hasn’t done much since I make them a pick, but, I think with gold projects in Nevada, things can get very exciting and they still have a very modest valuation.
VR Resources (VRR.V)
Date started coverage: Feb.5/2019
Closing price on date coverage started: $0.18
Today's closing price: $0.175
VR Resources is a relatively new pick, only a couple weeks old, I picked it early due to their exploration project in Nevada. Next news I will be watching for is drilling.
Walker River Resources (WRR.V)
Date started coverage: Jan. 30/2019
Closing price on date coverage started: $0.11
Today's closing price: $0.225
Lately, I’ve been talking and writing a lot about Walker River Resources, due to the impressive high-grade gold results, from their project in Nevada. Earlier today, they announced 2 more holes with great looking high-grade gold in both. Over significant widths for the grades. I have tentatively scheduled an interview for tomorrow, with Michel David, CEO of Walker River. We will discuss the drill results announced today. I’ve been studying this project so much that I can visualize the size and grade potential clearly, I’m excited to get Michel on so he can further help explain how all these drill hits line up. I own shares in the company at an average price just over 11 cents, based on the results recently and today, I think WRR is still at a bargain valuation with multiple million ounce discovery potential.
Westhaven Ventures (WHN.V)
Date started coverage: Oct. 20/2018
Closing price on date coverage started: $0.73
Closing price on end date of coverage (Feb.19/2019): $0.93
Westhaven, has been picked a couple times in the report, and based on its current price has been a solid pick, but, I’m ready to drop them as a pick. I originally picked them because they hit an epithermal vein system, right beside infrastructure where they can drill year round. They tagged some really nice grades, and got the stock up to around $1.40. Then did some step outs along strike and have been cutting off some of the potential with the truth machine. I’ve been told that erosion is not a problem, but, I think they are also limited at depth. When they announced the disappointing results after the highs, it plunged back down to around 70 cents. I picked it again because they were doing an IP geophysical survey. My hope was that they would light up the known veins better and also help them spot new ones. They had a news release out in early January, to announce that the geophysical work had been completed. It is now almost 6 weeks, and no news on the results of the geophysics. My guess is that means they either didn’t help much, or they have shown they are at the limits of the discovery. They currently have a valuation of around $100 million, which is just too high for what they have delivered. I think they are making it smaller the more work they do, and for now, I am fine having them on the watch list and waiting to see more data.
There you have it, my elevator pitches for the list I watch and picks. Some of the elevator rides are a little longer than others.
The markets are really shifting, the last report I did some technical analysis on gold and picked $1350.00 USD for gold per ounce as the magic number. If we can breakout to the other side of that magic number...the sun will be shining on us and it will be smooth sailing with plenty of golden skies ahead.
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.