Mining The Markets

 I have known the management team led by CEO Tom Irwin for some years and they are the top of the mining business in Alaska and can attract strategic partners.  The team has had a track record of permitting, constructing and operating cold weather Alaska mines such as Pogo and Ft. Knox.  

 Tom Irwin came on as CEO on January 1,2014 and is not a new face to the Livengood story.  He has been working on the project as a VP Engineering for a few years.  Tom has a long history of mining in Alaska and he believes that Livengood is a world-class multi-million ounce gold project that will eventually move forward with a strategic partner.   

 Tom has been constructing, designing and optimizing mines for over 40 years.  Most notably he was responsible for engineering at Ft. Knox before start up and eventually became General Manager of Ft. Knox, which is now successfully operating for Kinross.  

 Since Tom Irwin has come on as CEO two important board members who happen to be experienced mining engineers have been added including the new Chairman Stephen Lang who spent time at Kinross's Ft. Knox Gold Mine.  

 According to Tom Irwin in the recent PR, "Steve Lang's qualifications, including his time at Kinross's Fort Knox Gold Mine in Alaska, makes him an ideal fit to Chair our Board as we optimize our Livengood Gold Project."  

 In addition to Mr. Lang, John Ellis, former CEO of Anglogold North America and a mining engineer with 50 years of experience has also come on the board.  When the who's who of mining engineers are working on this project trading below a $1 I pay attention and so should you.  

Disclosure: Author owns THM and company is a website sponsor.

Royal Nickel owns one of the only mines I know of with a construction ready project, experienced management that specializes in nickel and a strong treasury of close to $15 million.  Nickel is one of the few commodities that China needs desperately as they have very little from their own production.  Royal Nickel's Dumont Project is one of the largest nickel deposits in the world and probably the largest, most advanced and best quality nickel project in control of a junior miner.  With a market cap of less than $40 million, $15 million in cash, priced significantly below book value and a $1 billion NPV top tier nickel project, Royal Nickel is significantly undervalued and could be a ten-bagger.  Look at the Board Of Directors and Management sheet and you can see all the top level experience formerly from Inco which rewarded shareholders significantly in the last up cycle.  Now may be the time to prepare for the next bull market cycle in the industrial metals with Royal Nickel.

Disclosure: Author is long Royal Nickel and company is a website sponsor.

Canamex's Bruner Project is located in Nevada which is probably the top gold mining jurisdiction in the world on 500 acres of private land. This means they may have a shorter permitting timeline. Canamex has excellent infrastucture with grid power only 12 miles away and access to a highway. The metallurgy is excellent with high extractions using lower levels of reagents. They have a historical resource which is growing with a recent drill intercept of 57.9 meters of over 5 g/ton. They also have a new discovery on a different part of the property where they hit 110 meter of over 4 g/ton material. Could they be connected with high grade feeder systems? The investment by NYSE listed Hecla and Gold Resource Corp may signal that they feel there may be a good chance. Now with cash in hand Canamex has commenced diamond drilling at Bruner. Over 10k meters of drilling will take place in 2014 following up on the high grade feeder zone in the historic resource and the Penelas East Discovery. The company should have consistent good news flow over the next six months as they are putting $1.75 million into drilling. Eventually all this drilling data will be incorporated into a maiden 43-101 resource. Canamex is a very active junior gold explorer in mining friendly Nevada at a time when many juniors are dormant. It is at these turns in the gold market when the potential winners can be identified. Canamex President and COO Greg Hahn Comments:

"...the 2014 drilling program has the potential to significantly advance our efforts in proceeding to delineate our first National Instrument 43-101 mineral resource estimate on the Bruner gold project." I look forward to the active drilling season for this largely undiscovered junior gold miner in Nevada.


Disclosure: Author owns CNMXF and they are a website sponsor.

Comstock Mining (LODE) should produce close to 40k ounces of gold equivalent this year in the historic and prolific Comstock District.  LODE just announced a new lower cost $5 million revolving credit facility in order to assist with the increase in production and expansion of their Lucerne Mine.  Capital will be used to drill the east side of the Lucerne resource.  LODE's ability to exceed production guidance in 2013 and their clear growth profile has allowed them to receive more favorable financing terms. Comstock also announced recently the restructuring of debt and royalty obligations which eliminated $2 million worth of debt and royalties.  It is also important to remember that Comstock Mining recently secured over 300 acres of private land which will allow valuable growth opportunities.  The local community is widely supportive of the company as evidenced by the unanimous approval of Lyon County Board of Commissioners to approve zoning changes on certain mining claims.  LODE recently commenced a district wide plan to increase the resources and reserves.  The goal is to produce expanded mine plans that include the Lucerne, Spring Valley and Dayton Resource.  Investors should realize this is an historic district largely untouched by modern exploration programs.  There is the potential for significant growth in 2014 and beyond.  

Disclosure: Author owns LODE and company is a website sponsor.

Wellgreen Platinum (WG.V or WGPLF) has done a complete restructuring with a new top notch management team, stronger shareholder base and a name change. This could help the company attract larger institutions looking to gain exposure to the platinum and palladium market with a higher quality junior miner. 

There are very few high quality junior PGM developers focussed in North America in a political supportive jurisdiction and with reasonable infrastructure. The company's experienced technical team is developing a new model which hit one of the best drill holes ever intercepted on the property in late 2013. 

Management believes there is a higher grade zone on the Far East Zone that they are currently following and exploring. Some of these advancements will be incorporated into an updated Preliminary Economic Assessment set to be released in the second quarter of this year. 

This PEA is focusing on the higher grade zones and less costly open pit capability. This company could gain some major attention or be bought out as they get closer to the release of this study and as the PGM market heats up. Remember Wellgreen (WG.V or WGPLF) has over 7 million ounces of PGM and gold, 2 billion pounds of nickel and copper. Nickel and copper are two industrial metals to own that are rebounding on increased resource nationalism fears from Indonesia and the Philippines. A rising nickel and copper price could really improve the economics on Wellgreen (WG.V or WGPLF).


Disclosure: Author owns WG and company is a website sponsor.