Wednesday 19th December 2018

Resource Clips


Posts tagged ‘Osisko Gold Royalties Ltd (OR)’

Osisko Gold Royalties CEO Sean Roosen comments on the limitations of market prognostications

August 24th, 2018

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Some Sprott takeaways

July 20th, 2018

Among them, Rick Rule foresees “the absolute heyday of prospect generators”

by Greg Klein

Miners have suddenly become “lean and mean” but not in a good way, according to Rick Rule. Twenty years of under-investment, an over-correction to a previous binge of M&A “insanity,” have left companies with declining resources. “This can’t continue,” the career contrarian contended. “Every day you mine, you shrink.” But the people who build and run mines prefer to outsource exploration. As a result, he says, “we are coming into the absolute heyday of prospect generators.”

Rick Rule foresees “the absolute heyday of prospect generators”

Rule presented his remarks at the Sprott Natural Resource Symposium, held in Vancouver this year from July 17 to 20 for an audience of gold bugs and resource investors. The two strategies can often be employed by the same individuals, showing a stark contrast between hedging against uncertainty and searching for opportunity. And opportunities are there to be had, Rule maintained. While a number of key commodities have gained in price, equities remain low, creating a more attractive ratio of price to value.

Looking at gold discoveries, Brent Cook sees a decline since 1980, with yearly mine production now about three times the annual ounces found in the ground. The pipeline of up-and-coming copper mines currently has the fewest projects of this century. Zinc discoveries peaked in 2016, then fell steeply. With majors showing heightened interest in explorers, he said, “this is a fantastic time to invest in juniors—but be careful.”

It’s very hard to know where the bottom of the market is until you come out of it.—Sean Roosen

Also emphasizing the declining success rate of exploration, Osisko Gold Royalties CEO Sean Roosen agreed that peak gold has arrived. That’s manifested not only in the relative lack of discoveries but the shortened average mine life of current operations. As for the state of equities, “it’s very hard to know where the bottom of the market is until you come out of it.”

Both sides of the gold bug/resource investor dichotomy found support in a slogan displayed by Byron King: “If you can’t save the world, go find some gold.” And from his perspective saving the world, the Western parts anyway, seems beyond hope. An editor with Agora Financial and Jim Rickards’ Gold Speculator, he focused largely on the U.S., which he said faces domestic conditions and foreign rivalry that put all aspects of American power at risk. The country barely resembles its post-WWII self when “we had the money, we had the gold and we had the friggin’ bomb.”

The U.S. and its allies have since squandered their prominence in banking, currencies, capital markets, manufacturing, technology, military prowess and space travel.

We have lost academia to a different form of thought.—Byron King

Where the West outperforms others, maybe, is in the flakiness of its institutions. Canadian and American universities lead the way: “We have lost academia to a different form of thought.”

In a momentous development that policymakers deny, he said, Russia has surpassed the U.S. in the aerospace and high-tech weapons industries. “Incredibly stupid people in Washington D.C.” believe against all evidence “that we can win a war with Russia.”

Mercifully, that kind of war might not happen. But another kind would show no mercy. Relaying Rickards’ ideas, King said real wars have become too expensive and dangerous to fight. So major powers instead sabotage their enemies’ currencies. As China and Russia continue to accumulate gold, the two could team up to defeat the West.

References to stupidity in high office recurred during the conference. Rule reminded the audience of Justin Trudeau’s statement that “the budget will balance itself” and Barack Obama’s notion that U.S. debt doesn’t matter because Americans owe the money to themselves.

Trey Reik of Sprott USA pegged that country’s federal debt at $20 trillion and U.S. total debt at $68 trillion. The country needs another $2.8 trillion in debt just to service the current amount, he added. With such unsustainable levels, he sees a tsunami of defaults coming.

One of the reasons I own gold is the future is much too interesting to be predictable.—James Grant

When the consequences of debt and the state of the economy become known, a gold bull market will return, argued James Grant. The editor of Grant’s Interest Rate Observer and Ron Paul’s choice to chair the Fed called interest rates “the most important aspect of capitalism…. Try to imagine a world without them. We do live in this world.” Today’s negative sovereign debt yields are unprecedented in history, he stated.

In a twist on the Chinese curse “may you live in interesting times,” Grant said: “One of the reasons I own gold is the future is much too interesting to be predictable.”

Throughout the conference speakers agreed, disagreed and overlapped in their perspectives. But no doubt everyone concurred with an insight elegantly expressed by Eric Fry of the Oxford Club: “It’s better to have more money than less money.”

The Sprott Natural Resource Symposium returns to Vancouver in July 2019.

Artificial intelligence, virtual reality help win online Gold Rush Challenge

March 7th, 2016

by Greg Klein | March 7, 2016

Artificial intelligence, virtual reality help win online Gold Rush Challenge

Located just east of Val-d’Or, the past-producing Sigma and Lamaque
mines sit between Integra’s Lamaque North and South projects.

A PDAC opening event demonstrated the evolution of mineral exploration as a high-tech Quebec team won first prize in an online search for Abitibi gold. Integra Gold TSXV:ICG asked contestants to dig through digital data representing some 75 years of mining and exploration at the past-producing Sigma/Lamaque property adjacent to the company’s Lamaque project. Out of five finalists appearing at the March 6 event, the SGS Geostat team won the $500,000 first prize.

The team “used sophisticated geostatistical methods to drive data into an expansive and unbiased block model,” Integra explained. “A prospectivity scoring system harnessed both geological knowledge and machine learning, a subfield of artificial intelligence, to identify high-value targets, which were then vetted through virtual reality with Oculus Rift technology.”

Using somewhat less sophisticated technology, Lamaque produced 4.58 million gold ounces between 1935 and 1985, while Sigma turned out 4.45 million ounces from 1937 to 1997. The digitized files included info from 30,000 holes, over 500,000 assays, hundreds of kilometres of underground workings, mining stats, geological sections, level plans and photos.

As a team of geologists, engineers and computer scientists often bound by certain limitations and boundaries, we relished in the opportunity to channel our collective creativity and curiosity to provide new exploration targets in a historic and famous mining jurisdiction known worldwide.—Guy Desharnais, team leader with SGS Geostat

SGS Geostat leader Guy Desharnais said, “As a team of geologists, engineers and computer scientists often bound by certain limitations and boundaries, we relished in the opportunity to channel our collective creativity and curiosity to provide new exploration targets in a historic and famous mining jurisdiction known worldwide.”

Four other finalists—three teams and one individual—shared another $340,000 in prizes. Integra announced the contest last June. By September over 740 entries had arrived from 65 countries.

Panellists consisted of geologist and commentator Brent Cook, Randy Smallwood and Chantal Gosselin of Silver Wheaton TSX:SLW, Rob McEwen of McEwen Mining TSX:MUX and Sean Roosen of Osisko Gold Royalties TSX:OR.

Integra didn’t specify what the winners proposed for the former mines. But CEO Stephen de Jong said some of the suggested drill targets “are like nothing we’ve ever seen before. We have decided to expedite the drill program and start testing a number of these targets in the immediate future.”

November 20th, 2014

Thomas Drolet: Finding gold dollars in Nevada Streetwise Reports
Downhole geophysics in mineral exploration Geology for Investors
Uranium climbs to highest since January 2013 amid utility demand NAI 500
Osisko Gold to buy Virginia Mines for $476 million VantageWire
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 19th, 2014

Thomas Drolet: Finding gold dollars in Nevada Streetwise Reports
Downhole geophysics in mineral exploration Geology for Investors
Uranium climbs to highest since January 2013 amid utility demand NAI 500
Osisko Gold to buy Virginia Mines for $476 million VantageWire
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 18th, 2014

Downhole geophysics in mineral exploration Geology for Investors
Credit Suisse analyst Michael Slifirski: New non-Chinese graphite and vanadium supply could create new demand Streetwise Reports
Uranium climbs to highest since January 2013 amid utility demand NAI 500
Osisko Gold to buy Virginia Mines for $476 million VantageWire
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 17th, 2014

Osisko Gold to buy Virginia Mines for $476 million VantageWire
Gold demand declines to five-year low globally but rises in India NAI 500
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia