Weekend Show – Sat 1 Apr, 2017

Opportunities in the resource space and turnaround sectors

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March is now behind us without any major fireworks. There was some big news out of the mining sector with Goldcorp and Barrick teaming up in Chile to build a couple mines as well as the take over of Exeter Resource Corp. We cover this in segment 6 but also had Byron King on the show to provide his thoughts (click here to listen to Byron’s interview). We also look at a couple sectors that are turning around with Dan Lyons and John Kaiser shares his insights on where the money is flowing with regards to resource stocks.

We hope you all enjoy this week’s show. Please check out the companies we feature on the website. I have worked hard to find stories that I think have some legs and management teams who know what they are doing.

I always love to hear from all of you. Email me with ideas on companies and future topics for the KE Report at Fleck[at]kereport.com.


  • Segment 1 & 2: The first two segments I am joined by John Kaiser, founder of Kaiser Research. We discuss the changes in investors’ sentiment towards exploration companies and certain districts that have been re-thought.
  • Segment 3: Fund manager Dana Lyons shares his thoughts on the sectors that have been beat up and are showing signs of turning.
  • Segment 4: President of the Mises Institute Jeff Deist looks at the slow global economy and how central bankers lead us here.
  • Segment 5: Starting out our section of Company updates I introduce Eastmain Resources. I spent some quality time with the President and CEO Claude Lemasson at PDAC and the Company is now on my radar.
  • Segment 6: Exeter Resource was bought by Goldcorp this week. President and CEO Wendell Zerb explains the details of the deal.
  • Segment 7: Falco Resources expanded its Board and Executive team earlier this week. CFO Vincent Metcalfe explains how the appointments further move the Horne 5 deposit towards production.
  • Segment 8: Axel Merk wraps up our show with comments on the news stories that have been moving the markets and what he sees on tap.

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Axel MerkCory FleckDana LyonsJeff DeistJohn KaiserVincent Metcalfe
Wendell Zerb
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  1. On April 1, 2017 at 3:34 am,
    Nick says:

    Nice show guys…I especially liked segments 1-3.

    • On April 1, 2017 at 5:39 pm,
      Excelsior says:

      Agreed. John Kaiser had some good thoughts on how Jr companies are moving ahead with with exploration to reinterpret older deposits or explore around old deposit where old miners may have left some serious deposits undiscovered.

      Cory – I’m glad you had Eastmain on. They are one that has definitely been on my radar and I’ve followed Gwen Preston & the Norther Miner’s coverage over the last year or so as well. I also believe their proximity to and JV with Goldcorp is significant.

      • On April 1, 2017 at 5:42 pm,
        Excelsior says:

        Here was the article from Gwen Preston (to give credit where credit is due) that really piqued my interest regarding Eastmain resources:

        Resource Maven: Drilling in context, The Eastmain question
        Posted By SmallCapPower – April 5, 2016


        • On April 1, 2017 at 5:45 pm,
          Excelsior says:

          Here was Gwen’s presentation from the Metals Investor Forum a few months back where she covers her top stock picks, and there is a section on Eastmain Resources:


          • On April 1, 2017 at 5:49 pm,
            Excelsior says:

            Here is Eastmain’s Video presentation from the: METALS INVESTOR FORUM
            MIF January 2017: Eastmain Resources Inc – Corporate Presentation:


          • On April 1, 2017 at 6:34 pm,
            rand says:

            Eastmain has caused me no end of long-term frustration. Lots of money spent over the years, poking holes for many many years. Some good results, but they never really seemed to get a full handle on the geology. I wish them well. Maybe new mgmt and board members will offer a fresh perspective.

          • On April 1, 2017 at 7:29 pm,
            Excelsior says:

            Rand – I could definitely see that perspective on a longer term, as I was uninterested in their story until April of last year when the new team took over.

            This is an example where the project had merit, but the prior team made bad decisions in a bear market, and tanked the share price. However, the new team was brought in as the bull market is still in it’s early day consolidation phase.

            As we move later into exploration season in 2017, their drilling programs and economic studies are going to provide important news flow and milestones that will drive the share price higher. They have real work being done on their 3 projects again = refreshing.

        • On April 2, 2017 at 9:22 am,
          Excelsior says:

          Catalyst-clip: (ER) (EANRF) Eastmain at PDAC 2017
          Mining Clips – posted March 24, 2017


  2. On April 1, 2017 at 3:52 am,
    Archdeacon (!) Andrew says:

    Ditto and thanks for an update re Exeter.

  3. On April 1, 2017 at 6:15 am,
    CFS says:

    Seg. 3.
    No one has a crystal ball, but Dana Lyons at least understands history and has learnt from it.

  4. On April 1, 2017 at 6:16 am,
    Bonzo Barzini says:

    Let’s invite Alf Field on the next weekend show.

    • On April 1, 2017 at 2:53 pm,
      Cory says:

      Hey Bonzo, I don’t know Alf but I’ll reach out and see when he has time to chat.

  5. On April 1, 2017 at 6:29 am,
    Matthew says:
    • On April 1, 2017 at 6:31 am,
      Matthew says:

      …but, in the short term, it is probably about to chop sideways for a few days:


    • On April 1, 2017 at 6:41 am,
      Matthew says:
    • On April 1, 2017 at 6:45 am,
      CFS says:

      Through my tinted glasses, Silver ALWAYS looks good!
      (At least, for the last couple of decades.)

      • On April 1, 2017 at 8:14 am,
        Matthew says:

        If you take a long term approach and price it in fiat currencies, it does look good most of the time.

        The monthly chart looks superb:


        • On April 1, 2017 at 7:31 pm,
          Excelsior says:

          Hi Ho Silver…… Away !!!

          • On April 1, 2017 at 7:34 pm,
            Excelsior says:

            CFS – we haven’t discussed Mandalay Resources in a while, but I am shocked at its current low valuation (considering their production profile on their 3 projects) and that they pay a dividend. It really fell out of bed, and seems a bit overdone really.

            I’ve been quietly nibbling at a position again in Mandalay and see it getting rerated if the metals have a big run later this year and moving into next year. Until then, the dividend will throw off a little cheddar while we wait. 🙂

    • On April 1, 2017 at 2:35 pm,
      GH says:

      I’ll throw one more into the mix. $18.50 is a key battleground. Looks to me like it could be broken soon.


      • On April 1, 2017 at 7:36 pm,
        Excelsior says:

        It would be great to see Silver punch up through that trend line that has been resistance for so long. It may not be in the next few months, but later this year I believe there is a good chance Silver will get on its bike and ride….

        • On April 2, 2017 at 7:11 am,
          GH says:

          Yep. I thought that Goldfinger comment that you posted nailed it. My best guess would be a few months of frustrating sideways volatility that will make a lot of people bearish in spite of the bullish bigger picture. And then another big up move.

          In the specific case of silver, even if it breaks out of the down channel in the chart I posted, and it seems like there’s a good chance it will, it’s not unlikely that it would come back down to backtest it before making all us silver bugs happy. I added some arrows to the chart.

  6. On April 1, 2017 at 6:43 am,
    CFS says:

    Historically, resource stocks have often gone up as interest rates rise.
    The market is now giving better than 50% odds for a rate hike in June.
    (I only anticipate two interest rate hikes this year – June and December)

    It seems to me that no one is thinking correctly about oil.
    Here, I see two relevant factors:
    1. the turmoil in Libya is cutting oil exports.
    2. Saudi Aramco goes public in 2018, so it would make sense for Saudi to raise oil prices as much as they can.
    Increasing oil prices will impede profitability of mining stocks.

  7. On April 1, 2017 at 6:54 am,
    Excelsior says:

    Risk is How Much Time You Need
    Mar 30, 2017 by Morgan Housel


  8. On April 1, 2017 at 7:08 am,
    John Chew says:

    Bring back Bo Polny of $2,000 gold fame. I still have my 2014 $2,000 strike price options taped to the wall.

    Any hope for a pay-off?


  9. On April 1, 2017 at 8:30 am,
    David says:

    TLTFF end of quarter and no update.

    • On April 1, 2017 at 9:30 am,
      CFS says:

      I would like the Doc (Postma) to comment on cannabis oil in regard to cancer, if he has knowledge in that area.

      • On April 1, 2017 at 1:00 pm,
        David says:

        Interesting thought.

      • On April 1, 2017 at 2:22 pm,
        GH says:

        Paste these into notepad and replace xxxxx with http:// and at least some of these are good leads:
















        • On April 1, 2017 at 2:25 pm,
          GH says:

          It is said that one can’t get high juicing cannabis, but apparently that isn’t always true:


          This guy’s channel is fantastic for organic gardeners, by the way.

          • On April 1, 2017 at 7:46 pm,
            Excelsior says:

            GH – If you juice cannabis from the flowering bud, then you can have a mild high, but it would take much larger amounts. Most edible forms are decarboxylated (by adding heat) into resin, butter, tincture, or tea. It is the heat that releases the most profound effects, which is why it is so often smoked or vaporized.

            If people just want some of the isolated health properties then getting the extracted CBD oil is the way to go, but it should be noted there are about 60-70 cannabinoids in most strains, and just isolating 1 can raise other questions of what effect that 1 chemical is when divorced from mother nature’s perfect combination in the plant. There are vape pens with extracted whole plant resins and oils that are much more complete in their compounds, but it would also extract the more psychedelic aspects of the THC in concert with the other medicinal cannabinoids.

            I find that eating the sister plant, hemp, in raw seed form is a great source of antioxidants, health oils, and has a range of health benefits as well. A great snack for posting on the KER.

        • On April 1, 2017 at 2:31 pm,
          GH says:

          Oops, missed these very good ones from biochemist Dr. Chris Shade:



  10. On April 1, 2017 at 9:10 am,
    Markedtofuture says:

    Is .0006th Of An Oz Of Gold Significant Enough To Call The Bottom?


    .0006th of an ounce of gold = 80 cents, at $1250 the oz. How can 80 cents be significant relative to gold at that price? It is a tiny gap in price that was never filled.

    The probability of December 2015 being the end of the downside correction since the 2011 highs grows with each passing week/month. As our regular readers know, our focus is solely on developing market activity as determined by price and volume over time. We pay attention to what the market is saying about its participants and not what others are saying about the market.


  11. On April 1, 2017 at 9:14 am,
    ANON says:
    • On April 1, 2017 at 4:04 pm,
      Excelsior says:

      Thanks Anon – That was a good article. I own Canada Zinc Metals and Tinka, and have considered Zazu and Darnley Bay. There are number of other good Zinc explorers like Vendetta & Callinex, or the developers like Heron & Pasinex not included, but still a nice overview.

      2017 is going to be a great year…. I Zinc…

      • On April 1, 2017 at 4:05 pm,
        Excelsior says:

        I am a little surprised they didn’t bring up Trevali which is the go to Jr Zinc Producer for most people.

        • On April 1, 2017 at 4:07 pm,
          Excelsior says:

          They didn’t bring up Arizona mining, or Thuderstruck, and in addition – regarding Zinc miners, there are about a dozen more Aussie Zinc companies that rarely get any mention, but are making good progress.

      • On April 1, 2017 at 5:53 pm,
        Excelsior says:

        Here is a great little Zinc explorer (Vendetta Mining) (VTT) (VDTAF) that I’ve been building a position in and am very excited about their 2017 exploration campaign.

        METALS INVESTOR FORUM – Video Corporate Presentation
        MIF January 2017: Vendetta Mining Corp


        • On April 1, 2017 at 5:59 pm,
          Excelsior says:

          Here is the most recent Corporate Slide Deck Presentation for Vendetta Mining:


        • On April 1, 2017 at 11:18 pm,
          ANON says:

          Vendetta has no money and is being pumped by Eric Coffin

          • On April 2, 2017 at 2:05 am,
            Excelsior says:

            Vendetta has many warrants in the money that are continuing to fund operations as outlined page 6 of their presentation (I’ll attach a quick link to that page below) and but yes, like most Jr Mining companies they’ll still need to raise capital down the road.

            As for them being pumped by Eric Coffin, that gives me a great deal of confidence that they’ll keep getting more attention by the marketplace, and if you look at where their deposit stacks up to other Zinc projects, you’ll see why.


          • On April 2, 2017 at 2:17 am,
            Excelsior says:

            I’d also note that they have 2 key Stratetic Investors that support their expansion:

            1) Resource Capital Fund – 28% stake. If you are not familiar with them:


            2) Solitario Exploration and Royalty – 9.9%

            They are one of the more interesting Project Generators & Royalty companies that will provide a $3 million advanced royalty payment on the exercise of this option & a $2.25 million in cash payment advances for completion of the exploration program over 4 years (that they are still right in the middle), for a 1.5% Net Smelter Royalty or a $1.05 per ton Run of Mine royalty. That’s a total of $5,250,00in option payments and advanced royalty payments.

            So, their funding options don’t concern me in the slightest 😉

          • On April 2, 2017 at 2:30 am,
            Excelsior says:

            To your point though, I would expect a capital raise soon to further drilling campaigns, permitting, and development for the balance of 2017 and moving into 2018.

            I follow most of the Zinc sector and both Tinka and Vendetta have some of the most torque to the upside as it relates to the Zinc Explorers. Vendetta’s resource is much more impressive (if you add both the Lead & Zinc resources together) than Darnley bay, Constantine , Foran, Aquilla, Tinka, Callinex, or InZinc mining.

            They are also in play with exploration being done – unlike Zazu Metals.

            Lastly they don’t have the metallurgy issues with the manganese and other smelter penalties that Arizona Mining and some of the other deposits being touted have. Metallurgy is just as important as deposit size and grade, and their recent release (see above) on their metallurgical work is very encouraging and they’ll have a clean concentrate desired by both smelters near them in Australia.

            Canada Zinc Metals and Heron are the only 2 Zinc companies I like more than Vendetta and Tinka, because they are much further along, but being development stage companies they haven’t had the run up in share prices that the more leveraged Explorers have had.


    • On April 2, 2017 at 2:39 am,
      Excelsior says:

      Canada Zinc Metals – Corporate Presentation
      Swiss Mining Institute (22/03/17) : Peeyush Varshney – Canada Zinc Metals CORP.

      (I believe Teck or Korean Zinc may take this company over, and if you look at their land package in relation to those 2). Lundin Mining is also very interested and earning into their project.


      • On April 2, 2017 at 2:52 am,
        Excelsior says:

        Here is a Map of the Kechika Regional Project (with Teck and Korean Zinc as their neighbors): #AcquisitionTarget


        • On April 2, 2017 at 2:54 am,
          Excelsior says:

          Canada Zinc Metals:

          Akie (100% owned)

          “The Akie claim block consists of 46 contiguous mineral claims that cover 116 square kilometres and hosts the National Instrument 43-101 (NI 43-101) compliant Cardiac Creek deposit. The Akie zinc-lead-silver property is situated within the southernmost part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead silver and stratiform barite deposits. The property is road accessible via a series of all-weather gravel logging roads. The Cirque deposit, owned under a 50-50 Joint Venture between Teck Resources and Korea Zinc, is located approximately 22 km to the northwest of the Akie property and is also road accessible. The Cirque and Cardiac Creek deposits share many similarities: size, age, SEDEX origin, mineralization within the same stratigraphic units, and considerable exploration potential.”

          Here are some more great maps for reference and due diligence:


    • On April 2, 2017 at 4:24 am,
      Excelsior says:

      The Simpsons – A World Without Zinc


  12. On April 1, 2017 at 9:59 am,
    Markedtofuture says:

    Stateside Report Podcast – April 1, 2017

    In this weeks episode of the Stateside Report Podcast we take a look back at the week and quarter in gold, silver, the base metals and the stocks then we talk about the press releases this past week from Canadian junior exploration companies including: East Africa Metals EAM, Pure Gold Mining PGM, Grande Portage Resources GPG, Arizona Silver Exploration AZS, Exeter Resources XRC, Engold Mines EGM, Camino Minerals COR, Iamgold IMG, Harvest Gold HVG, Alexandria Minerals AZX, Bell Copper BCU, Black Iron BKI, West African Resources WAF, Durango Resources DGO, Enforcer Gold VEIN, Crystal Lake Mining CLM, and Golden Arrow Resources GRG. We talk gold, silver, copper, lead, zinc, uranium, nickel and iron ore.


  13. On April 1, 2017 at 12:38 pm,
    Jay says:

    Re: Eastmain Resources

    One other way to get some upside from it and also invest in another potential winner, IMO, is to look at Integra Gold, which owns 5% of Eastmain, has two Board seats and, if memory serves, has a property that abuts or is very near EMs property.

    May want to take a look at Integra on its own merits as well FWIW

    • On April 1, 2017 at 6:24 pm,
      Excelsior says:

      Great point Jay. Integra Gold helped partner with Eastmain and are breathing some life into that area. Both companies are going to be winners.

  14. On April 1, 2017 at 4:21 pm,
    Ozibatla says:

    CFS, regarding cannabis oil or hemp oil, I know of several people who have taken hemp oil tablets for cancer, arthritis, epilepsy and many other debilitating illnesses and the results have supposedly been staggering.

    One guy who had advanced cancer stunned his oncologist when he was given a clean bill of health. Another individual claims that hemp oil is the only effective treatment for her neuro muscular disorder which renders her in crippling pain without it.

    It is a really interesting topic and one I continue to study and research.

    • On April 1, 2017 at 4:47 pm,
      Excelsior says:

      I have a number of friends and acquaintances the oil, extract, and plant material has assisted. It has been an interesting new industry in Canada in particular. The US is much riskier as the new administration isn’t following the trend at the state level and seems more bent on halting the advance of this industry. It really should be a state decision and the Federal government should get out of the way on this , and many other social issues.

      • On April 1, 2017 at 7:04 pm,
        GH says:

        I just reviewed my list of pot stocks, and they all look like they will have ongoing weakness for now. Great news, because I think the sector has huge potential, so this is another chance to get in.

        I bought MJNA at the end of last July, it went up 50% and then returned to my purchase price and I sold at a slight gain. It then promptly went up 600%.

        Who knows about the political angle, but imo it’s an idea whose time has come, and they can only hold back the tide for a while. I think it would be very bad politics for Trump.

  15. On April 1, 2017 at 4:49 pm,
    Excelsior says:

    Precious Metals End March Near Key Resistance
    by @Goldfinger on April 1, 2017

    “Gold and silver rose for the third consecutive week last week despite considerable skepticism as to the health of the rally. The aspect of the recent rally in precious metals that has created the most concern among traders has been the significant underperformance in precious metals mining shares. This underperformance has created a great deal of concern and from my vantage point it’s fair to say that the consensus expectation among market participants is for some short term downside ahead in precious metals & mining shares. However, if we are to solely focus on the gold & silver charts the action is fairly straightforward with both gold & silver consolidating near important levels of resistance:”

    (Check out the article for more charts & technical analysis)


  16. On April 2, 2017 at 3:02 am,
    Excelsior says:

    Gold Price Remains Buoyant as Brexit Triggered
    HAYWOOD RESEARCH: The Weekly Dig – March 31, 2017
    by Mick Carew, PhD, and The Haywood Mining Team



  17. On April 2, 2017 at 4:27 am,
    Excelsior says:

    Bond Market Doom: Key Tactics
    Morris Hubbartt – posted Mar 31, 2017
    Super Force #PreciousMetals #Video #TechnicalAnalysis

    Here are today’s videos and #charts & TA videos:

     Big Picture Key Charts & Video Analysis


  18. On April 2, 2017 at 8:58 am,
    Excelsior says:

    I posted this from Gary Wagner on the Friday close, but am re-posting it because he does a great job recapping the first quarter of 2017 in commodities, equities and the US Dollar.


    Silver and Gold Among 1st Quarter Winners
    Gary Wagner – March 31, 2017 – Weekend Review #Technical Analysis #Video

    * Palladium and Silver Shine Brightest Amongst the Precious Metals

    “When we look at the commodity complex as a whole, there were only two commodities (lumber and lead) that outperformed palladium and silver. This places palladium and silver as top performers in the commodity complex. Gold closed near the top, in the eighth place, with platinum in 10th Place, according to MarketWatch.

    Most importantly, when we compare the performance of gold and silver to that of U.S. equities, we see that they certainly had a great start this year. Although we do not know what the next quarter will bring, we can safely say that the precious metals are off to a great start. If they continue to gain value, precious metals traders can look for an outstanding performance that will create great opportunities.”


  19. On April 2, 2017 at 10:34 am,
    CFS says:

    SRSrocco Report on Haggmann


    • On April 2, 2017 at 12:10 pm,
      OOTB Jerry says:

      interesting how he equates oil and gold….”gold/silver is a store of economic energy”

      • On April 2, 2017 at 12:12 pm,
        OOTB Jerry says:

        stock , bonds and real estate …”energy I.O.U.”

  20. On April 3, 2017 at 4:15 am,
    Blue says:
    • On April 3, 2017 at 6:07 am,
      Excelsior says:

      Nice hits! Glad you did the dreaming for us Blue!

      • On April 3, 2017 at 6:57 am,
        Blue says:

        I really felt that this explorer would deliver in the short and long run with all the good fundamentals and the good news lately. It was a matter of time and you dont have to pick these kind of stocks at absolute bottom. Sometimes its better to buy them with some momentum like from 0,30 cad to 0.50 cad when all the good news was brought with the permitting, One good hole 400m awway from the last resource update, Brent Cook buying and the Ceo:s positive vibes in that Katusa interview and of course Zincs great start to a new bullmarket🔥🔥🔥🔥🔥

        • On April 3, 2017 at 8:00 am,
          Excelsior says:

          Nice. Yes, I agree that sometimes it is better to buy into a rising trend, but harder to do for contrarian value investors. Thank goodness I got in before things really took off for Tinka, but I’ll admit to trimming my position back some when it seemed to be getting frothy. On a morning like this I’m kicking myself for doing that, but still, it’s a nice exploration win to start the week.

          • On April 3, 2017 at 8:39 am,
            Blue says:

            Of course its good to trim as long as you have a core position. I did the opposite and “wrong” thing and bought more, hehe. Im so full of Tinka shares that I have made all mistakes a proper riskminded investor shouldnt do.

          • On April 3, 2017 at 8:42 am,
            Blue says:

            Of course its good to trim as long as you have a core position. I did the opposite and “wrong” thing and bought more, hehe. Im so full of Tinka shares that I have made all mistakes a proper risk aware investor shouldnt do.

          • On April 3, 2017 at 2:26 pm,
            Excelsior says:

            Well, moves like today can bail out any investor that just got positioned in Tinka at one point or another. I did notice that things faded mid-day (likely from investors trimming) but then escalated again into the close.

            Stellar action!

    • On April 3, 2017 at 8:45 am,
      GH says:

      Tinka has been rocking, but has only been stretched further above its 200 day exponential moving average than it is currently twice before, and both times it quickly pulled back.


      I don’t own Tinka, and never have, so this is just a disinterested comment from a technical analysis viewpoint.

      • On April 3, 2017 at 8:47 am,
        GH says:

        Oops, I should correct my ‘both times it quickly pulled back’ statement. In 2010 it fibrillated around that price level for months before eventually pulling back.

      • On April 3, 2017 at 9:23 am,
        Blue says:

        Thanks BH!

        Of course Tinka is overbought and needs to consolidate but when a stock is in a bull market and has a momentum going on caused by good fundamental news the stock has short pullbacks and a stairstepping pattern upwards. You have to buy the dips and be prepaired for surprises on the upside.

        • On April 3, 2017 at 9:24 am,
          Blue says:

          Meant GH, sorry!

        • On April 3, 2017 at 9:42 am,
          GH says:

          “You have to buy the dips and be prepaired for surprises on the upside.”

          I agree. My guess would be a pullback followed by further gains. But in a stock this volatile the pullbacks can be vicious.

          • On April 3, 2017 at 10:12 am,
            Blue says:

            Yes you’re right. A pullback would be healthy and its ok as long as you are in this stock at much lower prices than today.