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KRO Weekly Summary: June 23 to June 29, 2019


KRO Weekly Summary: June 23 to June 29, 2019
The KRO Summary lists all Trackers and Blogs published during the designated weekly or monthly period so that so readers can easily catch up on what they may have missed. We no longer notify KRO members by email about new material except in special circumstances. When a Tracker is posted at KRO we notify members through the KaiserResearchOnline Slack Workspace. If you are an active KRO member and not registered on Slack, please let us know and we will send the invite. We will email the link to the KRO Summary to all KRO members when it is published. We will also Tweet the link so that Twitter followers can catch up at their leisure. The title links to the Tracker or Blog, the charts in the Discovery Watch Blog link to the YuoTube audio segment for that company, and the Tracker charts link to the free Corporate Profile. On occasion we may include commentary on the state of the market.
Despite gold's recent rally the first half of 2019 finished with a whimper for the KRO 2019 Favorites whose index was dragged down by Pacton Gold Inc (-46.2%), Westhaven Ventures Inc (-45.2%), Scandium International Mining Corp (-38.1%), Wolfden Resources Corp (-35.4%) and Midas Gold Corp (-34.4%), while Sun Metals Corp (+66.7%), Royal Nickel Corp (+29.2%), Osisko Metals Inc (+15.4%) and Orezone Gold Corp (+12.3%) held up the fort with the best performances. Pacton Gold, a cheap proxy for Novo's fortunes in the Pilbara conglomerate gold play is suffering from the market's realization that 2019 will be a base building year while Novo works to get a permit for a 100,000 tonne bulk sample and demonstrate that the marine terraces in the Egina region can deliver easy gold this summer. For now a Pacton turnaround hinges on its properties in the Red Lake district where Great Bear's Dixie project is keeping alive hopes that Red Lake scale zones exist outside of Goldcorp's holdings. Westhaven dashed high expectations when it released drill results in early January for the Shovelnose gold-silver discovery that showed the zone cut off to the south which a spring drill program failed to overcome. Westhaven can still redeem itself with a big summer drill program that will seek to find the continuation of Zone 1 south of the fault that moved the zone skywards rather than sideways. Scandium Intl launched the year with a massive face plant when it disclosed that its Nyngan mining lease was being canceled because the NSW permitting department lost an objection letter which a surface rights owner submitted in 2016 as part of an extortion ploy to jack up the price to buy him out. SCY has filed a new mining lease application covering only the ground where it already owns surface rights and on which all infrastructure was planned. A new mining lease is expected shortly which should remove the pall from the market and enable SCY to get back to developing its scandium offtake market. Wolfden did not suffer any setbacks other than Bay Street wanting to finance the next stage at Pickett Mountain in Maine very cheaply, instead of which Wolfden brought Kinross on board as a strategic investor. While last year's drilling was geared mainly to confirming what the company already knew, this summer's program has a discovery exploration component that could surprise on the upside. Midas Gold started the year high after a mass market newsletter featured it as a teaser in a year end campaign, from which it sank as the regulators found new ways to extend the Stibnite approval process, and the Nez Perce, seeking some avenue of payback for being badly screwed by the US government during the late 19th century, started making noises about wanting Midas to clean up all the downstream pollution caused by past operators, not just the upstream mess which the Stibnite Mine intends to remediate. Midas, which also has an important antimony credit, failed to track gold's recent rally because it chose to do a $20 million financing at $0.60 just before gold broke through $1,350. Midas Gold, however, is the best optionality play on gold developing a sustained rally toward $2,000. Although nothing changed since the start of the year other than Sun Metals absorbing Lorraine Copper to create a clean 100% ownership of Stardust, the stock has performed very well on expectations that followup drilling which started in early June will show that there is size to the high grade #421 copper-gold-silver zone. The stock, however, will have to buck market anxiety during July while we wait for confirmation that Sun Metals has figured out the geometry of the zone and that it has lots of room to grow. Renaissance Gold has not delivered any discovery news except an indication that Anglo Gold will likely pay $3 million next year to vest 100% in the Silicon project, but it has multiple Nevada plays under option to others who could deliver a discovery. Royal Nickel has been volatile while it secured additional processing capacity for its Beta Hunt Mine and the market became impatient for more "specimen stone" discoveries. The rest of 2019 will be a contest between Novo at Egina and Royal Nickel at Beta Hunt to see who can deliver the most "nuggets". Osisko Metals had to deal with institutional liquidation and weaker zinc prices arising from fears that Trump's trade war would create a global downturn. The overhang has been digested and Osisko will start an important drill program this summer to test for possible high grade zinc-lead zones overlooked by Cominco when it grid drilled Pine Point. The key will be a combination of LIDAR identifying topographical depressions and gravity highlighting greater density, a technology combination not available to Cominco before it gave up. Orezone updated its feasibility study in late June for the Bombore gold project in Burkina Faso which incorporated a circuit to process the sulphides. H2 2019 will be the financing cycle which doubles as marketing for a potential buyout by a producer, though if gold breaks out the stock may quickly become too expensive for a buyout. The rest of the favorites were modestly up or down. H2 will be very important for Midland Exploration Inc and its Mythril copper play in the James Bay region where a clear-cut discovery hole is still missing, for Nevada Exploration Inc whose efforts to find ore grade gold within its rapidly growing blind Lower Plate hosted Carlin system continue to frustrate drill hole watchers and which is screaming for a strategic investor to take note and act, and for Verde Agritech Inc which is now set up to deliver Super GreenSand to Brazilian farmers at maximum capacity as the planting season gets underway. The second half is not as critical for the other Favorites, but they all have the capacity to shine, especially if a gold bull cycle gets underway and pulls audiences back to the resource juniors whether or not their focus is gold.
Jun 24, 2019 - Blog - KRO Weekly Summary: June 16 to June 22, 2019
Jun 25, 2019 - Tracker - Tracker: Spec Value Rating for Golden Predator Mining Corp (GPY-V)
Golden Predator Mining Corp has a bottom-fish spec value rating despite a weak balance sheet because it is run by Shiva, that Hindu god of creation and destruction otherwise known as Bill Sheriff, who is due for a creative spell as a gold bull market cycle gets underway, helped by his wife, Janet Lee-Sheriff, who as CEO stickhandles the First Nations social license needed to mine in the Yukon. Golden Predator has two key projects, the 100% owned Brewery Creek gold deposit Ron Netolitzky's team p...
Jun 26, 2019 - Blog - KMW Blog June 26, 2019: Discovery Watch June 26, 2019 with Jim Goddard and John Kaiser
Novo Resources Corp (NVO-V) Golden Predator Mining Corp (GPY-V) Rugby Mining Ltd (RUG-V)
Jun 28, 2019 - Tracker - Tracker: Spec Value Rating for Verde Agritech Plc (NPK-T)
Verde Agritech Inc is a Good Spec Value rated Favorite because the junior controls a multi-billion tonne resource of a potassium silicate in Brazil which it is turning into an alternative to conventional potassium chloride for the Brazilian agricultural sector under the brand name Super GreenSand. The greenish rock, called "verdete slate" in Brazil and glauconite in technical circles, runs 9%-11% K2O compared to the 20%-30% K2O that the sylvite from evaporite beds in Saskatchewan runs. Sylvite i...
 
 

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