Thursday 24th January 2019

Resource Clips


All posts by Greg Klein - Resource Clips

Getting Frank

January 23rd, 2019

Frank Holmes discusses tips, disruptors, M&A, what drives HIVE, and more

by Greg Klein

Frank Holmes discusses tips, cryptos, disruptors, peak gold, M&A and more

With over 7,000 attendees, VRIC 2019’s numbers and enthusiasm suggested a buoyant market mood.

 

Definitely one of the busiest people at this year’s Vancouver Resource Investment Conference, Frank Holmes kicked off the event with a keynote speech to a capacity crowd, one of a number of times he took the stage during the two-day event. Even so, the CEO and chief investment officer of U.S. Global Investors found time to sit down with Resource Clips and discuss some wide-ranging issues.

A new feature at this year’s VRIC was the Top Picks Competition, which pitted three companies he chose against three selected by Marin Katusa. The fast pace had the rivals briefly introduce each of his three picks, followed by a company rep giving a concise six-minute presentation. The packed audience rated each company from one to 10. While waiting for results to appear on the big screen, Katusa said, “Man, I’ll be depressed if I lose to Frank.”

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

The mainstay of this year’s VRIC, Holmes
tackled issues ranging from peak gold to data mining.

But the chart showed no definite winner, at least not to those who struggle with mental math. Katusa pronounced the results a tie but Holmes confidently told Resource Clips: “I won.”

As for the format, “that model of 20 seconds per slide, capped at 20 slides, 6.4 minutes, that model is working in 900 cities,” he explained, adding that it began in 2003 with the Tokyo-based Klein-Dytham architectural firm. “The PechaKucha model will drive more interest to a company’s booth than anything else.”

But isn’t there an inherent danger that stock tips from influential people can affect share prices more than company performance does?

“I’ve invested in all six of those companies so I’m not getting up there with anyone I haven’t vetted.”

Are they long-term holds? “They have been.”

Katusa stuck with miners but Holmes’ list included two disruptors—a soon-to-be-listed company that creates gold and platinum jewelry as tradable investments, and another company that applies machine learning to mineral exploration as well as combining quantitative and fundamental analyses of mining investment.

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Investors heard first-hand pitches from company reps.

Disruption seems to increasingly command Holmes’ attention, but not at the expense of good old-fashioned gold. He sees peak gold as one application for AI and machine learning.

“There are fundamental supply-demand issues, there has to be a new way to replace it. The world’s GDP per capita for China, India and America is so strong and when you look at China and India, their GDP per capita is highly correlated to gold demand for love.

“When I first got in the business there was a four-year cycle from exploration to discovery to production. Now it’s a minimum eight to 12 years. We have declining reserves and each year the mines are getting deeper and deeper, the grades are getting lower and lower, and there’s also a falloff in exploration success. The timeline for getting projects on stream is getting longer and longer. We do have peak supply.”

With the Newmont-Goldcorp buyout following closely on the Barrick-Rangold merger, M&A has returned to prominence. When asked whether the activity could have a trickle-down effect on junior explorers, the Toronto native brought up a nationalist perspective.

A locally headquartered major means “a junior explorer or mid-cap developer can knock on their door, pitch them a story and maybe they’re your partner. But now you’d have to go to Denver, and the process of what they look at is very different from what Canadians look at. So I think there’s a vacuum being created and it’s not helping the Canadian mining industry.”

Additionally, “I think Canada will be hurt because the geological brain trust that was with Barrick in Toronto will go to Europe or South Africa. With Newmont, the brain trust will go to Denver.”

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Attendees gleaned intel from speakers, exhibitors and each other.

He suggested gold might attract more M&A than other metals because it’s “more bullish.” Elsewhere in metals, he expects to see further shareholder activism as seen by Waterton Global Resource Management with Hudbay Minerals and Paulson & Co with Detour Gold. “I’m surprised there isn’t more in the mid-cap space,” he noted.

He considers the activism constructive—“anything that keeps people accountable.” As chairperson of cryptocurrency miner HIVE Blockchain Technologies, however, he has to account for a share price that’s plunged about 78% over the last year.

“All of us are down, but it’s only because of the Bitcoin and Ethereum prices,” he said. “With gold stocks, most of them rise or fall as gold rises or falls that day. They correlate. What HIVE has done is become a proxy [for buying cryptos]. So HIVE has become incredibly liquid and moves every day with the price action of Bitcoin and Ethereum. Bitcoin and Ethereum have a volatility such that if gold’s daily volatility is 1%, their daily volatility is 6% to 8%. So that’s what drives HIVE. If Bitcoin goes this quarter to $10,000, we’ll go to a dollar. And if Bitcoin falls, we’ll go down with it. We’re at the mercy of where the cryptocurrencies are going. But the positive part for an investor or trader is that you can call up during market hours and use that as a proxy.”

One indication of continuing crypto enthusiasm, he added, was a very strong turnout at the previous week’s North American Bitcoin Conference in Miami, despite a hefty admission fee.

As for VRIC, he likes the event for “energy—it’s the vibe, what people are talking about. Are they skewing to optimism, or to doubt and fear and pessimism? I get the energy and vibrations here, and whether there’s an appetite for risk. This is all venture capital. Most of these companies are speculation. As I said at the opening, I’m so happy people came here and didn’t go to the casino or buy a lottery ticket to speculate.”

Watch for videos of VRIC presentations to be posted in the coming weeks by Cambridge House International.

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Moderated by Daniela Cambone, the Ultimate Gold Panel
included Holmes, Peter Hug, Roy Sebag and Peter Schiff.

 

Frank Holmes discusses tips, disruptors, M&A, what drives HIVE, and more

Although soliciting was strictly prohibited,
a hint of hustle might have been evident.

January 23rd, 2019

Toyota-Panasonic deal offers EV fast track for auto, battery majors Benchmark Mineral Intelligence
Here’s why the price of palladium just zoomed past gold Stockhouse
Recovering yuan spreads ripples in minerals markets Fastmarkets IM
John Mauldin’s 2019 economic outlook Equities.com
Wyoming legislators want state to de-risk investments by holding gold and silver GoldSeek
Aerial drones in mineral exploration Geology for Investors

92 Resources plans 2019 advancement of Canadian energy metals projects

January 22nd, 2019

by Greg Klein | January 22, 2019

With a portfolio that features lithium projects in Quebec along with vanadium and frac sand properties in British Columbia, 92 Resources TSXV:NTY now has its new year agenda in preparation. Taking precedence will be the FCI claims, a recent acquisition that enhances the company’s adjacent Corvette lithium project in Quebec’s James Bay region.

92 Resources plans 2019 advancement of Canadian energy metals projects

High-grade channel sampling has brought
Corvette’s CV1 pegmatite to the drill-ready stage.

Under a 75% earn-in, 92 has a year one spending commitment of $250,000 on FCI. The company has been reviewing historic data while working with operator Osisko Mining TSX:OSK to plan a surface program for the spring and summer. Following that will be a new field campaign at Corvette to precede the first-ever drill program on the two bordering properties.

Encouraging developments from Corvette last year include channel sampling on the CV1 pegmatite that revealed lithium grading as high as 2.28% Li2O over 6 metres and 1.54% over 8 metres, along with tantalum results. The team discovered two more spodumene-bearing pegmatites that suggest a potentially large mineralizing system along strike and at depth, 92 reported. A substantial staking expansion to Corvette along with the FCI earn-in covers about 15 kilometres of potential strike.

Looking at other possible sources of Quebec lithium, 92 also has field programs planned for the Pontax, Eastman and Lac du Beryl properties. Pontax grab samples have graded up to 0.94% Li2O and 520 ppm Ta2O5.

Additionally, the 2019 agenda calls for surface sampling on the Silver Sands vanadium prospect acquired in B.C. last November. The property features regionally mapped rock units that potentially host vanadium-bearing horizons.

Last year 92 filed a 43-101 technical report for its Golden frac sand project in southern B.C., adjacent to Northern Silica’s high-grade Moberly silica mine.

In the Northwest Territories, 92 holds an interest in the Hidden Lake lithium project, the subject of a maiden drill program last year by Far Resources CSE:FAT. The latter company has completed 60% of a 90% earn-in from 92.

92 closed a private placement of $618,000 in late December.

Read more about 92 Resources.

January 22nd, 2019

Here’s why the price of palladium just zoomed past gold Stockhouse
Benchmark discusses the potential for exchange-traded lithium Benchmark Mineral Intelligence
Recovering yuan spreads ripples in minerals markets Fastmarkets IM
John Mauldin’s 2019 economic outlook Equities.com
Wyoming legislators want state to de-risk investments by holding gold and silver GoldSeek
Aerial drones in mineral exploration Geology for Investors

Ximen Mining and GGX Gold report more high-grade, near-surface gold-silver with tellurium from B.C.

January 21st, 2019

by Greg Klein | January 21, 2019

Ximen Mining and GGX Gold report more high-grade, near-surface gold and silver with tellurium from southern B.C.

Visible gold brings new potential to an historic British Columbia camp.

 

Heralding the results as once again “some of the highest-grade intersections ever drilled over the last 100 years in the Greenwood gold mining camp,” Ximen Mining TSXV:XIM CEO Chris Anderson welcomed the latest Gold Drop news from optionee GGX Gold TSXV:GGX. The property was one of the former gold and silver mining sites in the historic camp about 500 kilometres by highway east of Vancouver.

Following the previous week’s batch featuring 129 g/t gold and 1,154 g/t silver over 7.28 metres, these assays come from the final four holes of an 11-hole November campaign on the southern extension of Gold Drop’s COD vein. All holes were sunk within 25 metres of two 2018 holes and “suggest a continuous high-grade gold mineralized structure has been confirmed,” Ximen stated.

The standout of this batch was COD18-70, which showed:

  • 107.5 g/t gold and 880 g/t silver over 6.9 metres, starting at 22.57 metres in downhole depth
  • (including 541 g/t gold, 4,532 g/t silver and >500 g/t tellurium over 0.85 metres)
Ximen Mining and GGX Gold report more high-grade, near-surface gold and silver with tellurium from southern B.C.

Some other highlights featured:

COD18-68

  • 8.77 g/t gold, 85.4 g/t silver and 56.3 g/t tellurium over 2.76 metres, starting at 19.49 metres
  • (including 14.47 g/t gold, 131.8 g/t silver and 87.9 g/t tellurium over 1.39 metres)

COD18-69

  • 5.76 g/t gold, 67.9 g/t silver and 61.2 g/t tellurium over 7.46 metres, starting at 26.72 metres
  • (including 9.77 g/t gold, 95 g/t silver and 110 g/t tellurium over 0.8 metres)
  • (and including 70.9 g/t gold, 569 g/t silver and 278 g/t tellurium over 0.4 metres)

True widths were unavailable.

GGX acts as operator under an option to earn 100% of the project. Should GGX fulfill the 100%, Ximen may form a JV by reimbursing GGX 30% of its spending to that date. Ximen retains a 2.5% NSR.

Also in southern B.C., Ximen plans springtime underground drilling and remedial work for its flagship Brett project in the Okanagan region. Metallurgical tests on 1990s material stockpiled during early-stage mine development support an historic report of 4 g/t to 5 g/t gold, the company announced in November.

About a three and a half hour drive northeast of Vancouver, Ximen holds the Treasure Mountain property near Nicola Mining’s (TSXV:NIM) Treasure Mountain silver project, the location of underground mining in 2008 and 2013.

In late December Ximen closed a private placement of $540,000 and offered another private placement of $250,000.

January 21st, 2019

Benchmark discusses the potential for exchange-traded lithium Benchmark Mineral Intelligence
Recovering yuan spreads ripples in minerals markets Fastmarkets IM
John Mauldin’s 2019 economic outlook Equities.com
Wyoming legislators want state to de-risk investments by holding gold and silver GoldSeek
The Newmont-Goldcorp deal is positive news for gold mining Stockhouse
Aerial drones in mineral exploration Geology for Investors

January 20th, 2019

Recovering yuan spreads ripples in minerals markets Fastmarkets IM
John Mauldin’s 2019 economic outlook Equities.com
Wyoming legislators want state to de-risk investments by holding gold and silver GoldSeek
The Newmont-Goldcorp deal is positive news for gold mining Stockhouse
Lithium supply revisited Benchmark Mineral Intelligence
Aerial drones in mineral exploration Geology for Investors

Republic of Mining commentator Stan Sudol addresses public confusion about First Nations and the Ring of Fire

January 18th, 2019

…Read more

January 18th, 2019

Recovering yuan spreads ripples in minerals markets Fastmarkets IM
John Mauldin’s 2019 economic outlook Equities.com
Wyoming legislators want state to de-risk investments by holding gold and silver GoldSeek
The Newmont-Goldcorp deal is positive news for gold mining Stockhouse
Lithium supply revisited Benchmark Mineral Intelligence
Aerial drones in mineral exploration Geology for Investors

OSC invites suggestions on reducing regulatory red tape

January 17th, 2019

by Greg Klein | January 16, 2019

Some “outdated or unduly burdensome” requirements could be mitigated as the Ontario Securities Commission broadens discussion on reform. By canvassing written comments up to March 1 and scheduling a March 27 roundtable discussion, the OSC hopes to find “short, medium and long-term actions to reduce regulatory burden.”

OSC invites suggestions on reducing regulatory red tape

Some specific topics include:

  • Finding operational or procedural changes to make interaction with the OSC easier or less costly

  • Providing greater certainty on regulatory requirements or outcomes

  • Streamlining or reducing forms and filings

  • Addressing unnecessary or unduly burdensome filings

  • Providing OSC info more efficiently

Respondents can reply via online form by March 1 and also indicate whether they want to take part in the March 27 roundtable. The OSC website will post more info including an agenda and list of participants in the coming weeks.

Following the roundtable, suggestions go to a Burden Reduction Task Force created in November, which will also consider the regulatory regimen from an investor’s perspective. Among issues to be considered is the use of plain language in regulatory disclosure.

“Our markets and businesses are better able to compete, innovate and flourish when we lighten the regulatory load while maintaining strong protections for Ontario investors,” said OSC chairperson/CEO Maureen Jensen.