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Walker River Resources (WRR.V)
They say a good place to look for a new gold mine is where there is an old gold mine. Doing that in Nevada makes things even more exciting as it is well known for huge gold mines.
The newest member of our website sponsorship program, Walker River Resources (WRR.V) is following that game plan, and hitting high-grade gold at their Lapon Canyon gold project in western Nevada.
In the stock chart below, you will see that Walker River was just another sleepy junior trading at under a dime on little volume. Then in late January, 2019, things changed, it started moving up on much higher volume.
What caused that jump in action was the announcement on January 30,2019, that they had hit 1.5 metres of 198 g/t gold. Their timing was excellent, gold had been improving for a few months, and select gold stocks had been gaining strength.
Even a little new money coming into the gold space can make stocks move like this because there just aren’t a lot of gold exploration stocks to choose from. So, when Walker River delivered high-grade gold over nice widths, the market changed very quickly.
This brings up a good point about what is coming as gold improves in price. I think we are in the early days of a gold bull market that can last for several years. In a bull market, lots of investor money will be looking for homes. When they come knocking, they will find that there aren’t very many to choose from.
The pickings are slim at the start of a new gold bull market, and will stay that way well into the bull market.
Walker River’s stock chart is instructive for another reason, concerning the entire junior gold sector. Since the gold market topped out in 2011, most of the time good news was looked at as a liquidity event for long suffering shareholders of juniors. As you can see in the chart, Walker River delivered with the truth machine, drilling into sweet hits of gold, and the market rewarded them with a much higher stock valuation and higher trading volume.
In the title, I indicated that Walker River is a classic Nevada gold story. The Lapon Canyon project has a history of small scale mining, many decades ago. The old miners back then, did very hard work, basically using rudimentary mining methods.
They weren’t up in those mountains, for their health. Their efforts are good indicators of where to look for more gold. Back then, they needed grades of over one ounce per tonne to make money. Their scraping around at the surface shows were they mined to get those kinds of gold grades.
Even though I say scraping, it wasn’t a small operation, although it was as far as modern mining methods. Above is a Google Earth image of a portion of Walker River’s project area. At the end of a couple of those switchbacks in the mine hauling road are where the historical adits are located.
Building roads and mining by hand is very hard work. Michel David, the president/CEO of Walker River did an excellent video presentation. In it, he talks about the history of the project. Please watch as it will help you understand how the history is leading Walker River in their current drilling.
Not long after they announced their first set of drill results I made them a pick. When I get enthusiastic about a pick, and management is willing, I like to do interviews with key people running the companies.
One of the key steps that I do is to call companies up that I’m following to ask due diligence questions. Many times after getting off the phone with them, I would think I sure would love it if my readers could have listened in on the call.
Youtube makes that possible and I did a couple interviews with Michel David, having a chat about their drilling results. In the first video, I wanted to go over the big picture and their early drill results.
In the second video, they had more drill results so we sat down for a second interview.
Between the video that Michel David did of the history of the Lapon Canyon, and the recent interviews he and I did together, you can get a very good understanding of the project and their results. As well as a broad outlook for the next drilling program.
Currently, they are up the mountain building drill pads. In the past drilling, it was confined to drilling from those haul roads. Those roads were built for hauling stuff in for the old miners, to then build adits into the mountain, for mining what they could see at surface.
They weren’t built to make the drilling most effective at targeting the high-grade gold mineralization. They are building a group of pads that will give them better angles to drill to hit gold.
There you have it folks, the beginning of a Nevada Gold story that has been decades in the making. Next up, drill drill drill. I’m hoping for drilling to start up again sometime in the next 6 weeks or so. I think from the drill pads, and what they have learned from the old miners, and the recent drilling has them well positioned for drilling success.
They had some in the money warrants exercised that brought in around $1 million recently. This will give them plenty of money for drilling, and they plan on going at it hard with the truth machine.
No matter whether I’m looking at a pick, or a sponsor, I look at them all with the same filter. Mainly looking for a good potential to valuation setup. With Walker River they are in Nevada, a home of many big gold mines, and they have found an impressive new gold discovery.
Their potential is clear, yet, they still have a very modest valuation. I think as they get closer to drilling, the valuation will firm up. Then it will all be about what they drill into with the truth machine.
Another factor to consider is that they are in Nevada, gold companies that have success tend to have a significant premium, the Nevada Premium. Walker River is going to be drilling soon, and I think they have found something that could see them reach the goal of a Nevada Premium.
I’ve been a shareholder for a couple months, my average price is a little over 11 cents.
As is standard practice with members of the website sponsorship program, Walker River has paid an annual amount of $12k CAD, that has been paid up front at the beginning of the yearly program. Which has just begun in the last week.
Sponsors have no say in what I write, or when, they have no editing privileges. I cover them like any company that is a pick in my reports. They do receive extra coverage.
Such as this welcome message that is a longer form report than my usual reports. After that, it is just like other companies I follow, I report on them when the results and work warrant it.
Another added benefit for sponsors, is they get their name at the top of my reports and emails, as the reports are brought to readers by the sponsors.
I’m an independent reporter in the exploration sector, a sector that needs much more coverage. I very much appreciate Walker River and my other sponsors that make the reporting I do possible.
There is one more added benefit for sponsors, I follow them the closest. I try to know all the companies I follow very well, the sponsors I want to know them inside out and spend more time researching their efforts.
That is something that all investors in any company can benefit from and I highly encourage readers to know what they invest in inside out. I hope you have enjoyed this report, and I highly encourage anybody interested in learning more about Walker River to check out the videos above.
Be my guest to share this report on your social media and email to friends that follow the gold explorers. Your efforts to promote my work is greatly appreciated, especially concerning sponsors, my new sponsor is definitely a great one for folks interested in exploration for gold to check out.
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.