A great environment for gold stocks breaking out and thoughts on Irving’s drill results

April 23, 2020

Erik Wetterling joins me today to share his thoughts on the environment pushing gold stocks, especially the miners, into breakout territory. Newmont just increased its dividend by 78% but we are still not seeing a large amount of M&A.

Irving Resources also just released drill results from Omu Sinter. While the results were not outstanding Erik shares what caught his eye and what he is looking forward to for future news. Click here to read over the Irving news.

Click here to visit Erik’s website – The Hedgeless Horseman.

    Apr 23, 2020 23:18 AM

    Erik, I bought some LOMLF@ .87 on Tues and am waiting for them to announce a gold deposit of 25 million oz. What do you think that size deposit in Figi would be worth?
    I am sorry to hear that Oktoberfest has been cancelled. I know Al and Doc are very upset.

      Apr 23, 2020 23:02 PM

      Bonzo – 25 million isn’t out of the realm of possibility on large Alkaline systems. That would take a while to prove up a deposit that large but many of those systems go down 1000 KMs and they can be huge. Lion One Metals has the rights to the whole 7 km caldera now, where for years they only had a small piece of the property where they outlined their initial resource.

      >> Check out page 6 of the (LIO) (LOMLF) Lion One Metals Corporate Presentation for comparable type deposits.

      > Porgera Papau New Guinea, Barrick = 25 Million oz +
      > Lihir Papau New Guinea, Newcrest = 40 Million oz +
      > Vatukoula Fiji, Zhongrun = 11 Million oz+

      > Tuvatu Fiji, Lion One = 1 Million oz+ (yeah, I’d say they have a little ways to grow)

        Apr 23, 2020 23:13 PM

        Right now I’d settle for 15 million oz for Lion1 on Fiji.

          Apr 23, 2020 23:46 PM

          Nice! I’d settle for a 2-5 Million ounce discovery, would be ecstatic at a 15 million ounce discovery, and would over-joyed at 25 Million ounces.

            Apr 23, 2020 23:50 PM

            Let’s hope LOMLF will be the next Bre-X, only with the gold this time.

            Apr 24, 2020 24:54 AM

            I don’t like putting Bre-x in any sentence with Gold miners I believe have REAL potential. They were a farce from the get-go.

            Lion One has true potential to be a massive deposit, they’ve done well on the maiden resource, and Quinton has them drilling deeper, and now they have all the other even more prospective targets on the balance of land on the caldera.

      Apr 24, 2020 24:35 AM


      25Moz might take quite some time to announce hehe :P. I honestly have no idea. Once it reaches some threshold where it becomes obvious that this could be a tier 1, long lived asset, I think the $/oz will take a jump higher. I expect them to be bought out long before they would “even” have 10Moz in inferred.

      Best regards

    Apr 23, 2020 23:47 PM

    GFG Resources, TriStar Gold and Precipitate Gold Now in Bed with Majors

    Bob Moriarty – (4/23/20)

    “Newcrest backed out of a deal with GFG Resources Inc. (GFG)(GFGSF) on the Rattlesnake property in Wyoming recently. Rattlesnake is an alkaline system. Those tend to be both very big and very rich.”

    “But meanwhile on the strength of the PEN monster hit, Alamos Gold Inc. (AGI) has stepped up to the plate to inject enough money into a non-brokered PP to bring them up to 9.9%.”

    “TriStar Gold (TSG) is yet another junior that has a major betting on their success. In August of last year TriStar announced an $8 million deal with Royal Gold where Royal put in money in different tranches and got some warrants as well.”

    “Not to be outdone, Precipitate Gold just announced a funding deal with Barrick Gold. Barrick is willing to pay up to $10 million in exploration on Precipitate’s Pueblo Grande project and conduct a pre-feasibility study to earn 70% of the property. In addition Barrick will invest $1.39 million CAD into Precipitate shares at $0.11.”

      Apr 23, 2020 23:55 PM

      I only have had a small tracking position in (PRG) (PREIF) Precipitate Gold and planned to add more to it last week, but this Barrick news has me enthusiastic on their project and I was just writing last week about the smart exploration companies getting into JVs or strategic partnerships with the big boys as a means of survival and to move them faster to successful development and production.

      GFG was one I had owned for a small stint, then exited, then considered getting back in but wasn’t sure they had the goods. when Newcrest backed out I thought it was getting bleak, but as Bob M. mentioned it was smart that they had a Plan B to hit on and that they got Alamos on board. I’m keeping tabs on that one to see how PEN keeps unfolding, but nice to see some Jr/Sr collaborations in the space.

      Apr 23, 2020 23:10 PM

      It should also be pointed out that in Bob M’s piece up above he also features a classy cameo pic of Erik panning for gold and charming the ladies… 🙂

    Apr 23, 2020 23:48 PM

    Gold and Silver Relative Valuation

    Theodore Butler | April 23, 2020

    “One thing that makes the silver/gold price ratio so special is that it’s hard to come up with a measure of relative valuation between two highly comparable items that has a longer history. Quite literally, the silver/gold price ratio goes back to the dawn of civilization, some 5000 years ago. The great thing about relative price comparisons is that they eliminate all outside macroeconomic influences, like changes in currencies or rates of inflation. Both gold and silver, for instance, have witnessed the birth and death of every currency in history, as well as every economic boom and bust, great migration and pandemic ever recorded.”

    “Gold and silver have been imbedded in the very fabric of the human existence, serving as money and objects of value since history has been recorded, providing the motivation for wars, to the search for new lands, to even the betrayal of Jesus Christ (for 30 pieces of silver). For 97% to 98% of the past 5000 years, both gold and silver were valued for the same reasons, namely, as money or stores of value or as objects of value, including jewelry and adornment.”

    Apr 24, 2020 24:52 AM

    I’ll settle for 3 weeks in Daytona, Oceanfront May 23-Jun13, can’t wait.