The Recipe For Success In This Market = High-Grade

Nov 03

The resource market in general continues to struggle, but companies who are flashing high-grade – serious high-grade – and can communicate their story have found a robust “market within a market”.

Since 2017 in particular we’ve been advising investors to focus on this niche area, one reason so many subscribers made fortunes on Garibaldi Resources (GGI, TSX-V) when they loaded up at 15 cents, 25 cents, 50 cents, etc.  High-grade exploration or production situations (Kirkland Lake, among others) represent your best opportunity for success, and there are some very recent examples:

Wallbridge Mining (WM, TSXhas soared 81% over the past 10 sessions, adding about $150 million in market cap after drilling 27 g/t Au over 38.4 m at a vertical depth of 500 m in the Tabasco zone at its Fenelon Property in Quebec.

Neighbor Balmoral Resources (BAR, TSX), which we’ve written about a lot, has a chance to really take off before year-end and make BMR subscribers and investors in general a lot of money.  It gained 26% last week.

Wesdome Gold Mines (WDO, TSX) jumped more than $1 or 16.4% last week (also adding about $150 million in market cap) after reporting stellar underground high-grade results from its Eagle River Gold mine in northern Ontario.

Calibre Mining (CXB, TSX) shot up 21 cents or 33% last week.  CXB is currently processing ore from underground and an open-pit in Nicaragua, and reported some holes that were drilled last year by B2Gold (BTO, TSX) including 9.2 g/t Au over 28.10 m (true width).

The list goes on…

There are enough opportunities on the high-grade side to make A LOT OF MONEY before Christmas and over the next several months.

Investors who are whining about the state of the market right now and not paying attention to what’s going on are going to keep on losing while missing out on some unbelievable wealth-creation opportunities.

One of those is Canada Cobalt (CCW, TSX-V), trading at just 35 cents, because Silver’s move is for real and CCW has one of the best Silver intercepts to follow up on that we’ve seen in a very long time in Canada – 189 oz/ton Silver and 0.14% Cobalt over 3.1 m (including 1,194 oz/ton and 0.94% Co over 0.45 m) at a vertical depth of 420 m, 80 m shallower and even richer (though not as wide) as Wallbridge’s intercept.

If you’re wondering why CCW’s PP was just increased by 25%, as announced Friday, that’s one of the big reasons why.  Some super bullish Silver investors are jumping in, we have learned, because CCW is firing up the drill rig very soon (this month) to take direct aim at what they believe is another high-grade Silver deposit within 2 km of the 3 past producing high-grade Silver mines in the Gowganda Camp.

These narrow vein deposits around Gowganda, the entire Northern Ontario Silver-Cobalt Camp and out to Kirkland Lake have proven to be very profitable to mine – Kirkland Lake Gold (KL, TSX) and Agnico Eagle (AEM, TSX) will attest to that.

Rest assured, CCW is a story that’s going to grab a lot of attention, especially with Gino Chitaroni now involved with CCW.  Expect some fireworks this coming week, so get on the bid Monday.  Keep in mind, CCW has already started drilling underground and has reported massive Cobalt, Silver and Nickel mineralization.

It’s a high-grade story through and through (CCW has been one of the best performing resource plays on Venture the past 2 months) and they’re also about to pour some more Silver.

Continuing on the high-grade theme…

2 Explorecos Featuring Grade, Insider Buying,

And Multi-Year Bullish Trends!

1. Galway Metals (GWM, TSX-V)

We started recommending GWM late last year when it was in the mid-teens.

Consistent open market purchases from Robert Hinchcliffe, Galway’s CEO, was one of the main reasons we recommended the stock.

Insider buying is something smart speculators pay close attention to because insiders know the intricacies of their companies better than any outsider could. And insiders only buy their stock for 1 reason – they expect it to rise in value and make them money.

Fast forwarding to today, GWM has basically doubled in price, from the mid-teens to the low 30s, yet Hinchcliffe keeps buying and buying!  He’s purchased 509,500 shares so far this year. Hinchcliffe has made SEDI filings for his insider buys almost every month since March, and the month of October was especially active.  In total, Hinchcliffe now owns 12.9 million shares.

Why’s Hinchcliffe so bullish on his own stock?

In short, Hinchcliffe, a former Wall Street analyst and guy who’s created wealth for himself and shareholders, recognizes a good deal when he sees it.  Galway has an enterprise value of approximately $20 per ounce, 70% below the $34 industry average (source: S&P Capital IQ).

Hinchcliffe is certainly thinking he’s got a tiger by the tail with Clarence Stream, too!

Galway captures the BIG picture potential of what Clarence Stream could be in that 1 image.  It’s a similar geologic setting to Marathon’s (MOZ, TSX) Valentine Lake Project, and Galway’s got twice the strike length (65 km).

Location is another huge plus!  The market’s expressed a strong interest for Gold deposits located in eastern Canada – look no further than price action in MOZ and St. Barbara’s $800 million takeover of Atlantic.

At an estimated 1.96 g/t Gold, grades at Clarence Stream are quite high relative to open-pit mines worldwide.  Galway will be publishing a new resource estimate next year, and that ought to take them over the 1 million ounce mark.

Michael Sutton, formerly Kirkland Lake’s (KL, TSX) Chief Geologist, is the brains behind Galway’s ground game.  Highlights from drilling this year include 7.3 g/t Au over 36 m, 13 g/t Au over 8.7 m, and 1.9 g/t Au over 43 m.  Looking at these very encouraging results from the Richards Zone, smack dab between the Jubilee and GMZ zones, one can imagine further drilling could prove this to be 1 large near-surface deposit (representing 3 km within what might be a 65 km trend).

With about $6 million cash, Sutton is well-funded to carry out Galway’s exploration programs.  3 drill rigs are currently on site and the meters to be drilled have increased from 12,000 to 17,000.  It’s been almost 2 months since Galway’s last news release, so you should probably expect some news soon.  Selling for 31 cents, GWM is near the lower end of a 9-month trading range (30 to 40 cents).  The stock’s just waiting for a catalyst that’ll break it out of this consolidation phase and past 40 cents, key resistance.

2. Radisson Mining (RDS, TSX-V)

Will a new interpretation of the structural geology help rejuvenate the old O’Brien mine?

Since 2013 shares of RDS have been locked in an uptrend.  No crazy spikes or anything, which is a good thing in many ways.   The stock has just been in a slow and steady climb from 5 to 20 cents.  A consistent string of higher lows and higher highs makes RDS look really nice on the long-term chart.

There’s 1 reason speculators have stepped in repeatedly to support RDS every time it falls. The reason is that Radisson owns 100% of the O’Brien Project, which still holds the title as Quebec’s richest Gold mine by grade.  Past production was at an average of 15 g/t Au.

Geology along the prolific Cadillac break favors Radisson discovering new zones at depth and/or laterally.  Need I remind you about Wesdome’s (WDO, TSX) discovery of 223 g/t Au over 14 m in an area that was thought to be “mined out”!   That new find in an old area was a critical catalyst in helping WDO quadruple over the last couple years.

This past week Radisson announced an intercept of 66 g/t Gold over 4.7 m, 300 m below the deepest level of their existing resource!!!

“We are encouraged by this new high-grade Gold discovery, suggesting potential continuity for high-grade Gold mineralization up to 300 metres below the current resource area at the 36E zone. This is a first and very important sign of validation for our new geological interpretation, with further follow up drilling, hole 1992w2b is one of the most significant drill holes in the history of the company. I’m confident we will have a steady flow of encouraging news supporting the new interpretation through the remaining of the drilling campaign,” commented Mario Bouchard, Radisson’s CEO.

Perhaps, like Bouchard suggests, this is the first indication that the new geological model is working?

Agnico Eagle and IAMGOLD would be natural buyers in the event Radisson makes a major new high-grade discovery.

Rob McEwen invested $500,000 into Radisson’s most recent financing (the $6 million bought deal closed in August). Insiders also participated, keeping their collective ownership level above 10%.