Brent Cook, Economic Geologist and Co-editor Exploration Insights

Joe Mazumdar, Co-editor/Analyst, Exploration Insights

FOCUS: Junior Mining Sector

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MARKET OUTLOOK:

Generally speaking, the gold price moves counter to the U.S. dollar and the world’s confidence in America. Trump’s hubris and willful ignorance, combined with an insular inner circle that is, for the most part, woefully inexperienced, makes for a volatile mix when the next global crisis or black swan event inevitably occurs. Therein lies the fear trade that could send gold appreciably higher: we hope this is not the case.

On a more positive note, we think the next few years will play out very well for successful junior exploration companies. The gold mining industry has been producing significantly more gold than it has been finding over the past 10 years, a problem that has been exacerbated by decreasing exploration and development budgets. Over the next few years, major miners will become increasingly anxious to replace depleting reserves with new, high-margin deposits. Unfortunately, legitimate discoveries are exceedingly rare. The net result will be that junior exploration companies that discover, or appear to discover, viable deposits will perform exceptionally well. The key for successful stock speculation will therefore require detailed due diligence at the earliest stages of a potential discovery.

Top Picks:

Mirasol Resources (MRZ.V) remains one of the most technically and financially solid grass roots exploration companies in the industry. It raised ~$10 million last year at C$2.40 and has a treasury of ~$28 million. It is focused in Chile and Argentina with Oceana Gold and Yamana Gold exploring two of its properties while MRZ continues to turn up new gold and copper targets.

Cordoba Minerals (CDB.V) has a joint venture with Robert Friedland exploration company, High Power Exploration, which is funding a project within the San Matias copper-gold project to a feasibility study to earn 65 per cent. It is a district scale land package in northern Colombia where active open pit mines are operating (i.e. Cerro Matoso). Maiden resource hosts over 50 million tonnes grading 0.7 per cent copper ad ~0.4 grams per tonne gold, more drilling in progress. Intersected (<1.0 m) a high grade gold (4,440 g/t Au) and base metal system (10.25 per cent Cu and 24.7 per cent Zn) in a different style of mineralization.

Nighthawk Gold (NHK.V) is exploring for gold in a district scale land package (90,000 ha) in the Northwest Territories. They have interested high grade shoots including  14 g/t Au over 25 m which attracted strategic investor Kinross Gold (K.TO) and allowed it raise C$25 million in gross proceeds recently. Well-funded with C$38 million in working capital and conduct their largest program (>C$9 million) at the Indin Lake project in 2017 which includes 25,000 meters of drilling.

Past Picks: MARCH 8, 2016

Brent’s Top Picks:

Mirasol Resources (MRZ.V)

• Then: $1.19
• Now: $1.70
• Return: +42.86%
• TR: +42.86%

Kaminak Gold (KAM.V)

• Then: $1.30
• Now: $2.69
• Return: +106.92%
• TR: +106.92%

Joe’s Top Pick:

Ivanhoe Resources (IVN.TO)

• Then: $0.77
• Now: $3.97
• Return: +415.58%
• TR: +415.58%

Total Return Average: 

Company Website: www.explorationinsights.com