Minimize

Welcome!

A couple mining stocks and a comment on long-term bond yields

Big Al
August 12, 2016

Rick is with us this morning with a technical look at the following companies.

  • Mexus Gold – MXSG,
  • Monster Mining Corp – MMNGF & TSX.V:MAN

We also discuss the continued fall of long-term treasury yields. The 10 year is now sub 1.5% and looks to be continuing downward. Rick has been a bond bull for the past couple years and he has some lower targets that may surprise.

Click download link to listen on this device: Download Show

Discussion
18 Comments
    DFS
    Aug 12, 2016 12:43 AM

    Good job Rick kept his possibilities for Monster under ten cents, because there is a huge overhang of warrants out there for 3 years at 10 cents.
    I know little about this company, but it looks to me as one hyped up play for suckers at the moment. I hope ii’m wrong, because I don’t to see people lose money.
    The other thing I would always advise speculators to do is to check what insiders are doing.
    I don’t know who Stephen Pearce is, but as an insider, he does not mind profiting from his involvement in the company.
    You can look up for yourselves his behavior.

    Aug 12, 2016 12:30 AM

    Very good to hear Rick review both Mexus and Monster. That is great that Paul wrote in for a stock review. Rick’s a darn good analyst so I’d want his review as well.

    Got have a nice position in Mexus, and part of it is for fundamental reasons just as much as technical ones. I am excited about their ramp up back into production.

    As for Monster, I sold most yesterday, and the remaining position today, concerned it had got a bit overdone. It sounds like Rick is in agreement that it may pull back before going higher, or it needs a very healthy move to keep going. Again, for fundamental reasons mentioned earlier this week, I think Monster has an ideal land package for high grade discovery or a takeover. I’ll likely get back in at a lower entry price.

      Aug 12, 2016 12:57 AM

      I realize this is a fundamental data point, but this is what is driving the share price movement:
      ________________________________________________________________________

      Mexus’ joint venture partner (MarMar) performs first blasts at Santa Elena mine
      08/08/2016
      CARSON CITY, Nevada August 8th, 2016

      Mexus Gold US (OTCQB:MXSG)announced that a series of blasts were completed at the Santa Elena mine with successful fragmentation. The initial blasts resulted in 60,000 tons of ore with grades ranging from 1 to 3 grams per ton. Marco Martinez, President of MarMar holdings, stated that this material is now ready to be moved to the heap leach pad. In addition, Mr. Martinez stated that the geomembrane heap leach pad is nearly complete with the anchoring of the liner remaining. The electro winning gold recovery equipment is currently being assembled in Monterrey, Mexico. The equipment should be ready by the time the first 1 meter lift is completed on the heap leach pad.

      Added Mexus CEO Paul Thompson “With our JV partner MarMar we continue to move closer and closer to production and reaching our ultimate goal of becoming a major gold producer!”

      http://www.mexusgoldus.com/news.php

        Aug 15, 2016 15:00 PM

        Mexus Gold US (MXSG)
        $0.0784 up $ 0.0124 (18.79% gain)

        Mexus completes installation of liner on heap leach pad
        08/15/2016

        CARSON CITY, Nev., August 15st, 2016 (GLOBE NEWSWIRE) — Mexus Gold US (OTCQB:MXSG) is pleased to announce that the liner installation on its heap leach pad is now complete. The next step in the process is to place the filtration material on the pad. Mexus expects this step to be completed by the 19that which time ore can begin to be placed on the pad.

        http://www.mexusgoldus.com/news.php

      Aug 12, 2016 12:13 PM

      I took the “Monster” proceeds and stored them in a little more (ASM) Avino Silver & Gold, and a little more (BXTMF) Brixton Metals. I feel safer with it in those two for upside appreciation in the near to mid term….. [providing the metals stay relatively strong].

      Now that Avino is moving ahead with their new tailings pond, they can start to put the plan together to mine and process the ore in the old tailings pond, just adding more value to the mix.

      __________________________________________________________________________

      Avino Commences Construction of New Tailings Storage Facility
      August 10, 2016

      “A new tailings storage facility is necessary to allow the existing TSF to be decommissioned, which will enable Avino to begin assessing the upper sulphide bench as well as the lower oxide bench in areas that are currently being used to store tailings from our active operations.”

      “The assessment work is part of the recommendations contained in the “2013 Tetra Tech Preliminary Economic Assessment” intended to advance the Tailings Resource towards a production decision for an agglomerated heap leach Merrill-Crowe precipitation operation. The 2013 Preliminary Economic Assessment suggests that the operation could have an IRR and NPV of 54% and $38.6 million, respectively, using US$20.38 per ounce for silver and US$1,256 per ounce for gold; and could add an additional 1.4 million ounces of silver equivalent to Avino’s consolidated annual production for a period of 5 years.”

      http://www.avino.com/s/news.asp?ReportID=759868

      Aug 12, 2016 12:53 PM

      Very exciting, Excelsior. Can’t wait for production!

        Aug 12, 2016 12:10 PM

        Hey Ryan. I was hoping you’d see Rick cover Mexus today. Based on that latest press release from the 8th, it looks like things are getting closer and closer to production, and they’ll have larger heap leach pads than originally planned for so they can actually process more ore at once and improve the economics.

          Aug 12, 2016 12:02 PM

          Listen to these guys every day at work. Al’s got a great program, but do miss Gary’s Savages input. Mexus will be a high flyer, Excelsor. Bank on it. I’ve been told numerous times they are going large scale, but may take a little while to ramp up production and fine tune everything. Good long term play to ride through the bull market on. Definitely got a great JV partner that doesn’t waste time. Very undervalued, IMO. May take a dozen dore pours and a nice divided to finally get peoples attention, but it will happen. Cheers my friend!

            Aug 12, 2016 12:14 PM

            Nice. Those are the same kinds of expectations I have for Mexus as well, so I’m looking forward to see how MarMar moves things forward. So far…. I’m impressed.

    Aug 12, 2016 12:11 AM

    The amount of buy triggers south of $1308 would probably blow our collective minds right now! The Gold market market is showing everyone that the bluff the Fed has been feeding the world since 2008 is looking suspect to say the least. Gold seems to be sensing something large is about to occur in the next 90 days. Which of the 20+ darkly tinted swans circling might it be? EVERYONE is PRAYING for sub $1300 gold right now!!!!

      Tad
      Aug 12, 2016 12:35 AM

      +1

      Aug 12, 2016 12:47 PM

      Hey confused – Hope all is going well.

      So would you say you’re expecting a fair bit of buying demand to come in if Gold were it to correct down to previous resistance/now support of $1308? There is likely a fair bit of money waiting on the sidelines, that will jump at a meaningful correction. In a bull market often corrections are more shallow than people expect, but I was figuring that maybe $1280-$1290 could still be in the cards later in Autumn, just to create the next wave of buying demand.

      Are you expecting this correction imminently?

    Aug 12, 2016 12:18 PM

    Ex,
    I’m NOT a trader…..just a punter ;)……..it’s just a feeling based on a lot, watching golds amazing resiliency recently, and spending my holidays reading blogs and looking at mainstream tech analysts who are even starting to tell folks to invest in gold silver stocks and warning of impending corrections in the conventionals. My thesis is nothing more than “pipe-dream” analysis, but I think Jack-Hole meeting will repeat the same message they’ve been touting since 08. However, I believe the market will begin in earnest to dismantle the Feds 8 year long B.S-Bus. Like everyone on this site, I have been wrong before. It just seems we are due for some more game-changing events. I’m not sure what it will be, but think Bretxit was the start of it. That Forbes article that Chartster posted yesterday encapsulates a lot of my feelings about what is up….without the “math” of course…ha! Docs thoughts are also in line with my thinking here.

      Aug 12, 2016 12:34 PM

      Thanks for unpacking the idea a bit more. Yes, I think the market is finally giving up on the Fed having any credibility, and people are looking at the elevated markets, the near 0 yield on deposit products,and are considering stashing some wealth into safety trades like Gold/Silver, Bonds, the Yen, and looking at the low valuations in Emerging Markets as another potential area to diversify. Yes, I enjoy both Chartster and Docs point of view. Good stuff – much appreciated!

    Aug 12, 2016 12:06 PM

    I guess to sum up. Gold is going to go mainstream this fall.

      Aug 12, 2016 12:11 PM

      I’m glad we’re discussing it before that happens then. 🙂

    Aug 13, 2016 13:17 AM

    Mexus will be 0.50 – 1 dollar next year., For a 6 cent stock, that is not too bad. Very low cost, dividend likely in short time, other high grade projects and a partner who pays for it all. Gold at Surface and long Deep high grade veins. Not vein, veins! And next door is the La Herradura Mine, One of Mexico’s best ever. Problem is Mexus has better grades. 🙂

    Oops, the mining opportunity of a Lifetime.