Yearly Archives: 2014

Could This Be The Next Major Gold Producer In Colombia?

Could This Be The Next Major Gold Producer In Colombia?
Red Eagle is only weeks away from publishing a Bankable Feasibility Study on a project which I believe will come into production in the next 18 months. The 320 sq. km Santa Rosa Gold Project in Antioquia has already produced a Preliminary Economic Assessment (PEA) that shows the potential for production of around 50k ounces per year with low cash costs around $620 an ounce. This means that possibly within 18 months Red Eagle has the ability to cash flow over $60 million of profit if gold stays around $1300 an ounce. Red Eagle flies above the others as the project has one of the best economic profiles in the junior mining business.
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Could Wellgreen Platinum be the Next Stillwater Mining?

Could Wellgreen Platinum be the Next Stillwater Mining?
Since the second half of 2012, I have been bullish on platinum and palladium (PGM). I have focussed on a North American producer Stillwater Mining (SWC) and a junior developer Wellgreen Platinum (WGPLF) in the Yukon. Labor strikes in South Africa combined with economic sanctions on Russia could spark a renewed interest in North American PGM production. Remember South Africa, Russia and Zimbabwe are the world's largest supplier of this valuable metal and all these jurisdictions are extremely volatile right now. South Africa is the leading platinum producer and Russia is the world’s leading palladium exporter. Both these metals are outperforming in 2014 and the rally could just be beginning because demand for these metals are rising annually. PGM's are both a monetary metal as well as an industrial metal used in catalytic converters to reduce noxious emissions. Palladium is outperforming platinum and gold breaking through the $850 mark and platinum is also breaing. Watch nickel which exploded from the $6 area to over $9.50. The three reasons nickel is soaring in price is because Indonesia the largest nickel producer announced an export ban, Russia a large nickel producer has economic sanctions against it and existing producers such as Vale are announcing production problems. We have already seen nice gains in Royal Nickel (RNX) and Stillwater Mining (SWC) which have already made doubles and triples. The breakout move in nickel, palladium and platinum is just beginning and incredibly Wellgreen Platinum (WGPLF), which is highly leveraged to all three of these metals is sitting with a market cap below $50 million. Wellgreen has not yet participated with the rally in nickel and palladium, but that could change soon as they just announced a new resource estimate which shows the massive size of this deposit.
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This Lithium Asset in Nevada Could Supply Tesla’s Gigafactory

This Lithium Asset in Nevada Could Supply Tesla’s Gigafactory
One metal where demand is soaring is lithium which is used in rechargeable batteries for smartphones, Ipads and electric vehicles. A game changing event occurred this past week when Albemarle (ALB) paid over $6.2 billion to buy the world's largest publicly traded lithium producer Rockwood Holdings (ROC). This is one of the largest chemical deals and the lithium industries biggest M&A transaction in history. Demand has doubled in the past decade as lithium ion battery use has grown in mobile technology. Growth in the lithium sector has been far outpacing other sectors. Some experts believe demand could even grow faster over the next decade especially as electric vehicles gain market share. The key for investors is finding potential sources of the raw material in North America.
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Japanese Nuclear Restart Sparking Uranium Sector Rebound

Japanese Nuclear Restart Sparking Uranium Sector Rebound
Last week I was interviewed about uranium by The Energy Report and I told them to get ready for doubles and triples in uranium and that we may see a powerful bounce off the bottom in the near term. Remember this was at a time that the large miners and the banks were bearish forecasting lower price targets. See the article and charts by clicking here… Less than one week after that interview was published Japan announces that two reactors are approved to be safe and are able to be turned back on. This is a psychological game changer as the uranium priced has slid for more than three years over 60% as Japan idled their reactors after the 2011 Fukushima Disaster. Here is a list of some of my favorite junior miners which I own and are sponsors on my website.
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Five Ways To Profit In Coming Clean Energy Boom

Five Ways To Profit In Coming Clean Energy Boom
Please note I just returned from Medellin, Colombia and toured what I believe will be the first modern gold mining operation approved for mining by the Colombian government. They have an immense amount of local support and the project appears to have the best chance of being the first to get into production due to the high grade and underground mining. It could be beginning production in possibly the next 18 months. Currently the company has a market cap of around $20 million, but in 18 months time could produce $60 million a year of profit if gold remains at $1300 per ounce. The management team is top notch with the COO building more than ten mines all over the world. The stock is currently trading at a discount to its last financing and less than their major shareholders who have invested $55 million in this project. Its important to note there are no warrants and the IPO was more than 6 times than what it is now. I intend to publish a full report of my findings of the mine site visit to my premium subscribers.
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U.S. Must Secure Heavy Rare Earths From This Alaskan Mine

U.S. Must Secure Heavy Rare Earths From This Alaskan Mine
Wars are being fought all over the world over control on natural resources. Attention is focussed on Eastern Europe and the Middle East particularly Iraq. I am greatly concerned that not enough is being done by the U.S. to secure critical materials of heavy rare earths needed for cruise missiles and our latest military technologies. We still rely completely on China despite their export cuts and warnings to the West to mine and refine your own rare earths. Heavy rare earths are increasingly needed in permanent magnets crucial for some of our defense technologies. China has been warning the world for years that they will cut exports. The U.S. can't be reliant on another country for these basic elements. One day we could wake up left out in the cold and naked if we don't start getting our act together. The Alaskans understand the importance of strategic metals and are financially supporting this junior heavy rare earth developer...
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Time To Buy The Junior Gold Miners in Nevada?

Time To Buy The Junior Gold Miners in Nevada?
During this gold correction, miners needed to focus on lower cost targets. For Barrick and Newmont their Nevada gold production has the lowest cash costs in the world and are much less risky politically than mines in other locations. Newmont paid high prices for Fronteer Gold (FRG) back in 2011, which I owned and recommended to my subscribers back in 2010 for its Long Canyon deposit located in Nevada. Discoveries in Nevada fetch a high premium compared to assets in more hostile places. Here is another discovery to pay attention to...
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Why This Niobium Company Is Up Close to 500% in the Past Year

Why This Niobium Company Is Up Close to 500% in the Past Year
For over two years since this major CBMM multi-billion dollar niobium deal with the emerging Eastern nations I have tried to educate investors about the importance of niobium. I found Iamgold's Niobec asset but wanted to see if there were any similar opportunities in the junior market as that is where a studious investor can find the greatest leverage to the metal. In late 2011, I found an asset in Nebraska that looked even better than Iamgold's Niobec as it is higher grade. I recommended it to my subscribers and bought a position in early 2012. Since that time the company has soared more than 400% far outperforming the S&P500.
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Time For Junior Mining Investors to “Wake Up” from Summer Doldrums

Time For Junior Mining Investors to “Wake Up” from Summer Doldrums
The Junior Gold Miner ETF(GDXJ) is already up 15% this month. With geopolitical tensions increasing in the Middle East and Eastern Europe get ready for a big breakout at $1400 on gold. The move in the junior miners and silver could be huge and provide great leverage. Also watch the oil price making a big jump as all of Iraq's oil is at jeopardy of being lost as Al Qaeda takes over key areas. Higher energy prices could influence the inflationary forces hear in the United States creating a possible stagflation. Remember the US, European and Japanese economies are not growing, yet equity and food prices are soaring. The stock market and US bonds are way overvalued, while gold, silver and junior miners are just beginning to breakout of a multiyear base. As accumulation continues in the precious metals look for the record short position to cover. The accumulation in high quality junior gold miners is happening right before our very eyes. Look at this junior in Quebec who is getting major investment interest specifically from the Chinese....
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