Hi all, I'd like to start a discussion regarding Nevada gold miners. I think this mining jurisdiction has some undervalued potential when the miners start to boom on an elevated gold price.
List your favorites and discuss.
I like Evolving Gold and America's Bullion Royalty Company (formerly Golden Predator).
Others I am interested in include: Rye Patch Gold, Midway Gold, Comstock Mining, Paramount Gold and Silver and of course Allied Nevada.
For the big guys I'm sure many of you are aware that Newmont and Barrick have a large presence in Nevada too.
Thanks for your participation.
Own and have owned Evolving gold for a long time. Way under water and have severely reduced my holdings. The company is a serial over-promiser and under-deliverer. They've blown it for years and I'm not sure there's enough money in the coffers to survive until this gold and silver junior death march ends.
What attracts you to Evolving gold??
As for Americas' Bullion Royalty, I bought it as Golden Predator on the premise that the restart of Brewery Creek heap leach pads would fund exploration. Now Brewery Creek is abandoned and the company is fighting the charge of breach of a loan provision that would allow the creditor to claim bullion royalty deals. Again, I wouldn't touch this one with fresh money.
Have been considering Rye Patch now that the froth over the potential settlement with CDE is passing with numbers that disappointed the speculators. I like the cash position, but several analysts are touting the stock and I haven't had my bid hit for .18-plus, so still waiting.
Saw a headline about a massive downgrade of Allied Nevada recently, but never got around to reading it
Bought a starter position in Rye Patch today at .193. at the open today.
I have been stumbling across similarly positive analyst comments on RPMGF.
My lower bid of .183 did not hit last Friday.
Rye Patch Gold has a 1.0 (highest) rating on Bill Matlack's latest Metals and Mining Analyst Ratings Juniors (updated weekly at Kitco) as of July 22 (today).
I also like and still own shares of Klondex Mines Ltd. KLNDF
Market cap of $77 Million.
Current share price of $1.24 (my cost basis is $1.95 so I have some waiting to do)
Rated 1.8 on Matlack's above mentioned ratings.
PE is projected to be very low from 2014 - 2016.
More info here:
Klondex Mines Ltd.'s principal property is the 100% owned Fire Creek Property. The Company holds mineral interests in approximately 18,000 acres in the prime area of northern Nevada's gold mining corridor, with total land holdings in excess of 21 square miles. Fire Creek property comprises 11,208 acres (17.5 square miles) and is located in the Crescent Valley area of the Battle Mountain gold belt. The Company has a 100% ownership interest in 42 claims (840 acres) in Corral Canyon, Lander County, Nevada. The Company holds a 66.66% interest in 48 claims in the Schroeder Mountain quadrangle.
July 29, 2013
Marc Pais, MGI Securities (7/29/13) "Today, Klondex Mines Ltd. reported that underground development work at the Joyce and Vonnie vein structures yielded 1,435 tons of mineralized material at an average grade of 119.8 g/t (3.49 oz/t) gold. Last week the company announced that it had secured bridge loans totaling $2.4M, and had also secured an agreement with Newmont Mining Corp. to begin processing its higher grade mineralization. . .we believe that today's production results indicate that Klondex is now well on the way to becoming a self-sustainable, profitable mining company."
Oliver Turner, GMP Securities (7/29/13) "Klondex Mines Ltd.'s underground development yielded over 5 Koz in June; a total of 1435 tons grading 119.8 g/t was extracted during its underground development and sampling program at Fire Creek in Nevada. . .the 3.5 oz/t average grade of ounces extracted during June continues to demonstrate the high-grade nature of the veins at Fire Creek. The ±6 Koz from these two months are expected to be shipped to Newmont for processing, generating cash for Klondex to continue development underground as well as add a second underground drill to follow up on recent discoveries."
The Gold Report Interview with Ralph Aldis (7/24/13) "Klondex Mines Ltd.'s stock is up 25% over the last three months, and the average stock in the exploration and development space is down 25%. The company must be doing something right. . .Klondex recently put out a news release indicating that its resource, an underground drift at its Fire Creek project in Nevada, is basically 132.8 g/t over 144.2 meter strike. It already has 2 Moz at 9.95 g/t. It is high quality and high grade and in the politically safe jurisdiction of Nevada. We're the third-largest shareholder. None of the top three shareholders has to raise any cash to meet redemptions. That stock won't have any selling pressure, but you can still buy it for $70M. I don't know where you can buy 2 Moz at 9.95 g/t for $70M." More >
Barry Allan, Mackie Research Capital (7/22/13) "We thought it would be important to stress test our models and take a look at our coverage list in a much harsher environment, in this case using a long-term gold price of $1,000/oz and long-term silver price of $18/oz. . .although we have only included near-term producers in our stress testing, one that stands out continues to be Klondex Mines Ltd. due to its high-grade Fire Creek project. Fire Creek continues to generate good levels of cash flow, provided that the grade remains above 9.5g/t (or mining/milling costs are lowered)."
Derek Macpherson, M Partners (7/18/13) "We are initiating coverage of Klondex Mines Ltd. with a Buy rating. . .as Klondex demonstrates its ability to generate cash in the near term, thereby by funding the development needed to ramp-up operations, the company's share price should benefit. . .the company's planned metallurgical testing program and subsequent bulk sample should allow it to generate $25.5M cash flow net of mining costs over the next 15 months. . .recent financings used to clean-up the balance sheet combined with near-term cash flow has Klondex uniquely positioned to organically fund the next stage of growth. . .management's experience is suited to Fire Creek."
I was sufficiently interested in this Nevada explorer to take a starter position today at .60 share.
Check out the commentary at the Gold Report https://www.theaureport.com/pub/co/2405
From the company website: https://goldstandardv.com/
Gold Standard Ventures (NYSE – GSV, TSX.V – GSV) is an advanced stage precious metals exploration company focused on Nevada. The Company’s flagship project, the 100% owned/controlled Railroad Gold Project, covers approximately 22,000 acres within the prolific Carlin Trend, adjacent to Newmont’s Rain and Emigrant mines, 29 miles west of Elko. Gold Standard is now the third largest landholder in the Carlin Trend, larger than any other junior explorer. The Carlin trend is home to Newmont’s and Barrick’s cornerstone mines and is the most prolific gold mining belt in the Western Hemisphere.
The Railroad project hosts 6 miles of the Bullion Fault Corridor, a major gold-mineralized feature in which the Company has made a significant new gold discovery, the North Bullion Fault Zone. The Company is moving towards building a 43-101 compliant gold resource at North Bullion while also exploring for additional discoveries along the Bullion Corridor.
Gold Standard Ventures is led by an experienced management and technical team that have a proven discovery track record within the Carlin Trend. Led by Dave Mathewson, ex-Chief of Exploration for Newmont Nevada, the team is applying proven gold exploration methods.
..... It is focused on district scale gold discoveries within Nevada. Its project includes Crescent Valley North Project (CVN), Safford (WFW) Project, Robinson Creek Project, Indian Creek Project, Railroad Project and Camp Douglas Project. The CVN Project is an early exploration-stage prospect located in Eureka County, Nevada, approximately 15 miles south-southwest of the town of Carlin and 35 miles southwest of Elko. Safford mineralization is consisted of silver and copper mineralization in shear zones and siliceous, baritic, sulfidic breccias. The Railroad Project is located within the northern Pinon Range about 30 miles southwest of Elko, Nevada. As of December 31, 2011, the Camp Douglas Project consists of 18 patented mineral claims, 277 unpatented mineral claims and one fee parcel totalling approximately 5,026 acres in the Walker Lane Trend in Mineral County, Nevada.
8:01 AM ET, 10/31/2013 - PR Newswire
VIRGINIA CITY, Nev., Oct. 31, 2013 /PRNewswire/ -- Comstock Mining Inc. (the "Company" or "CMI") (NYSE MKT: LODE) today announced selected unaudited financial results for the quarter ended September 30, 2013. Comstock's Chief Executive Officer, Corrado De Gasperis commented, "Our ramp up and productivity gains have yielded record production for the quarter, including a 39% increase in silver shipments over the prior quarter. The issuance of the expanded Water Control Permit quadruples our permitted capacity and positions us well to double our revenue for next year, significantly reduce our unit costs and, most importantly, generate positive cash flow. We are building an extraordinary business through production and development growth and land expansion, all while running a most responsible Nevada-mining enterprise."
2013 Third Quarter Highlights
2013 Year-to-Date Highlights
The Company has recently transitioned into production in the Lucerne Mine and ramped up to the targeted 20,000 gold-equivalent-ounce annual production rate and exceeded that rate during both the second and third quarters of 2013, averaging over 400 gold-equivalent ounces per week for the quarter ended September 30, 2013, and over 500 ounces per week in September. This intermediate target was exceeded and sustained by maximizing production under existing permitted capacity constraints around our heap leach and processing facility. The Company's existing heap leach is currently being expanded based on the recent receipt of all required permits, including the recently received, key Water Control Permit. This permit increases our authorized capacities and processing rates from a previous maximum of 1.0 million tons per annum to 4.0 million tons per annum.
Mr. DeGasperis continued: "Nevada continues to represent one of the most supportive mining jurisdictions in the world, with world class regulation and thorough due process. We are pleased with the diligence of NDEP-BMRR's process, prioritizing public safety while supporting the advancement of our business. This is a critical permit modification that enables our production expansion goals for the remainder of this year, next year and beyond. We will move expeditiously to complete our current heap leach expansion from five to eight cells, to increase our rates of production and significantly reduce our unit costs associated with producing our planned 40,000 gold equivalent ounces for next year."