Risk Management Continues To Be Key For Metals Investors – And A Quick Comment On Taho and Pan American Silver

November 14, 2018

David Erfle, Founder of The Junior Miner Junky newsletter joins me to further discuss a theme we have been expressing for metals investors. This theme is risk management for a sector that continues to languish. The key charts to watch are silver, SIL, and the US dollar. With Silver approaching the lows of late 2015 and silver stocks leading the charge down it is very concerning for gold. Also with the US dollar breaking out the overall metals complex has a lot of bearish signs in the way. We also have a quick comment on the deal announced today between Taho and Pan American Silver.

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    Nov 14, 2018 14:57 AM

    Gold is moving up from both short and long term technical supports:

    Nov 14, 2018 14:36 AM


    Nov 14, 2018 14:51 PM

    Unfortunately the bearish sentiment remains and that rules supreme over the PMs at this stage.

    Nov 14, 2018 14:44 PM

    (GLDN) (GORIF) Golden Ridge Completes Option Agreement with (ABX) Barrick; Earns 100% Interest in The Hank Project

    by @nasdaq on November 14, 2018

    GOLDEN RIDGE RESOURCES LTD. (TSX-V: GLDN) is pleased to announce that it has completed its option agreement with Lac Properties Inc., a subsidiary of Barrick Gold Corporation, and now has earned a 100% interest in the Hank Project, located in BC’s Golden Triangle District.”

    “The Company is eagerly awaiting assays for the remaining holes from it’s 2018 drilling campaign at Hank and these results will be released immediately following receipt, review and QA/QC checks. ”

      Nov 14, 2018 14:05 PM

      Golden Ridge (GLDN) is an interesting spec drill play on an epithermal deposit in the Golden Triangle. The stock entered my radar when it did a round trip pop and drop, but had a nice percentage move.

      Unlike many one hit wonders, GLDN may really be on to something, and I’ve started to nibble at it here. Greg McCoach spoke highly of it at one of the MIF panels, and that also got my attention as he has a good eye for spotting interesting exploration stories.

      >> Interesting thoughts from a contributor @dmandman over at ceo relative to (GLDN) Golden Ridge story and their relationship with Barrick (ABX).


      @dmandman If you did want to look long term. The 150 days, after the Hurdle notice is given by GLDN to ABX, is in place for negotiating (period). During that time GLDN does ‘not’ have to accept anything less than a full carried interest to production by demanding a Preferred Capital Recovery Plan (Agreement). ABX has zero leverage over GLDN here as it is ABX that wants in. ABX cannot force GLDN into taking any equity dilution beyond the 49%. In fact it is the opposite. GLDN has the leverage to force ABX (if they want in) to carry them. If ABX says no, they walk away and GLDN get the Hank property and it’s deposits entirely for themselves. Further, GLDN do ‘not’ have to prove up the 3M oz Hurdle threshold. They can simply prove up 2.8M ozs and tell Barrick to take a hike if they want to. Which is maybe what I would do. Prove up 1-1.5M in both the Williams breccia open pit area and 1-1.5M in Boiling zone area, and harpoon Williams at depth with a half dozen holes to see what the grade is at depth and get a nice valuation from both without any back-in being forced on you. And if you decide you want to prove up more, make them carry you. Or staying under the 3M ounces and possibly showing a high grade core of Williams at depth as an alternate option. But either way GLDN has the trump cards here in both aspects.”

    Nov 14, 2018 14:15 PM

    Gold jumped 38% in six weeks versus oil after bottoming at the 50 year average of about 15 barrels per ounce. This gain will probably shrink in the days ahead but that won’t change the positive implications for the gold miners.

    Nov 14, 2018 14:26 PM

    HYG and JNK are heading for big declines…

    Nov 14, 2018 14:35 PM

    SLV turned up after reaching the Sept. 10 low…