The Mining Play

Other Mining Stocks




I might be able to get to some charts this weekend, but I haven’t been paying as much attention to the markets lately. I do have 10k shares of MUX that I’m happy about right now though. After a brief glance at ES, I wouldn’t be surprised to see it return to the highs before long. That’s just what it looks like right now. If the downdraft continues that could change. If I have time over the weekend I’ll post some things.


You can’t have the markets for 90% of the world’s populations crashing, and one market NOT crashing. Because people have to sell things, and when there’s a liquidity, you sell the winners, OK? So lots of people own lots of U.S. stocks, and if all the European stocks or all the Asian stocks are down, they’re going to be leaning on their U.S. positions. The Fed has to be very cognizant of what’s going on around the world, and I think what’s going on around the world is: These rates are starting to hurt.


No wonder SSRM jumped today!

SSR Mining Reports Third Quarter 2018 Production Results
VANCOUVER, Oct. 11, 2018 /PRNewswire/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports third quarter 2018 operating results at our three mines.

Third Quarter 2018 Operating Highlights

  • Record material movement at Marigold: Moved a record 21.3 million tonnes of material, a 33% increase compared to the second quarter.
  • Strong production at Marigold: Produced 58,459 ounces of gold, an 18% increase compared to the second quarter.
  • Record production at Seabee: Produced 27,831 ounces of gold from a higher ore feed grade of 9.52 g/t gold, representing quarterly increases of 18% and 20%, respectively.
  • Continued positive performance at Puna Operations: Produced 0.7 million ounces of silver, more than doubled zinc production to 3.2 million pounds, and successfully test processed Chinchillas ore.

Paul Benson, President and CEO said, "We delivered our strongest quarter of the year with consolidated gold equivalent production of nearly 95,000 ounces, breaking records at Marigold and Seabee while continuing to optimize production and advancing the Chinchillas project at Puna Operations. With all three operations performing well, we look forward to meeting or exceeding annual guidance for the seventh consecutive year.

Anyone keeping an eye on Inventus Mining? Had a nice jump in price today, also. Awaiting Pardo bulk sample results? This was already posted, but nice to review potential here:




That’s some serious cold water thrown on Novo. That stock has been under serious pressure. I may need to take a loss on this one and wait for better information related to gold grades to come out.


I took a slightly different take-away from the decidedly negative article. Allan Barry Laboucan was more interested in promoting Advance Gold (AAX.V), where he is a big shareholder and CEO. Laboucan tacked on his promotion article onto the negative Pilabara conglomerate claims with the express purpose of drawing attention to his company. I would note AAX.V has declined in similar or worse condition than the Pilabara prospective properties. It was on July 5 that Advance Gold hit a high PPS of 0.54. It has recently traded down to 0.135. Laboucan led his piece with highlighting “Novo Resources (NVO.V) was a high flyer from last summer, that (he) started coverage on because of their Pilbara gold exploration story.” This was a sure way to garner attention.

On the plus and minus side, Advance Gold does have a small favorable stock structure which also can be subject to price volatility. The discovery of a cluster of five hidden epithermal veins across a small area is good news for his stock, but much work remains to be done. I have to wonder how many hidden epithermal veins are awaiting discovery on the ADL in addition to those already delineated and exposed on the surface. Surely there is a lot of positive promotion needed in the future.

In fairness, Laboucan did imbed the link for Eric Sprott’s 10/12/18 weekly wrap-up ( which focused mainly on why KL had a large decline when it was removed from the GDXJ. This was because of the high market cap; many ETFs had to eliminate positions. Listening at the around the 10:30 mark he starts to summarize the front running of the stock (KL) a month in advance. At the 11:30 mark he begins the discussion on the Beta Hunt discovery (RNKLX). Also, regarding the conglomerates at Pilbara (NOVO), he (Sprott) was quite positive that the commercial feasibility could be quickly determined on the shallow marine sediment areas. Shallow open pit mining is likely for early stage production after resource delineation and grade are determined, but the deeper conglomerate zones are difficult. News on all these speculative stocks are welcome, both positive and negative, but making a profit is what counts.


Another great day for GBR, sure wish I’d acted on it always back when I looked at it. Still betting they get taken out


It’s an interesting and similar problem in several of the more promising exploration stage companies.
Tax loss now, or wait as PPS of gold rises.
What are your thoughts regarding Inventus Mining Corp (GNGXF, IVS.V) and their announcement for a private placement of $750K @0.15 (warrants are for 0.25) that was just announced? Their Wit Reef sample and Pardo Reef sample shown in their September 2018 Presentation sure looks similar. These appear different than the shallow reefs on the Pilabara. Pardo appears more like the deep conglomerate-gold in the Karratha region of the Pilbara, only Pardo is near surface and easier to reach. Do they need cash that badly to complete the 50k ton bulk sampling, or is it for more drilling and delineation of zones to expand their technical report in accordance with NI 43-101? Bulk sampling was planned to start this year. Are you awaiting bulk sampling results in zone 007, or is now a good time to take a tax loss and wait?


I exchanged emails with Stephen Spears when the last bulk sample results were released. Due to the ore sorting techniques that improved the recovery rate to 89%, the returns from the processing nearly paid for the bulk sample program. It was their hopes that proceeds from future bulk sample programs could pay for the bulk program and then some. That would be an excellent case scenario. However, they do need cash to pay upfront to fund the program. We won’t know until 6 months or so later if the program actually turns out to be profitable, though that’s not the actual goal of the program.


So, $750K upfront money needed for future growth.
Still waiting for return on investment; another 6 months to see results?


Well, they had around that much already (I’d have to check the filings in sedar), and they recently started the drill program to identify the targeted areas to sample. Still, I’m guessing 6 months out is a safe bet, but who knows?


Did Inventus buy that Steinert X-Ray Transmission Ore-Sorter, or are they renting it?
I know they used it earlier for a much improved pre-processing result.

Anyone look at the short position on MUX lately … 19% (48,982,400). One exceptionally good press release and there may be some surprises to the up side!
More than 50% of MUX is owned by insiders and institutions. Are gold miners so out of favor that the shorts are making it difficult for exploration companies to get ahead? Once gold price goes up this will change rapidly, IMO.


Novo Resources is under extreme downward pressure…what an absolute dog. It’s also bringing down other Pilbara stocks.


It ran up to way too high of a market cap for where they are. Once they could not prove up the “Wittswaterand 2.0” thesis quickly it came under “reality pressure”. Unfortunately it still has a $355M $CAD mkt cap at this point.


2 days ago Inventus posted an updated a presentation explaining their Sudbury 2.0 project and an update of their Pardo Project.

The Sudbury 2.0 stuff is fascinating, though kind of heady from a geological standpoint. The company is clearly excited about the Temagami Anomaly and are focusing a good deal of research effort proving out the theory of a 2nd Sudbury Igneous Complex which has been responsible for 1.7 billion tons of ore comprising 40b pounds of nickel, 36b lbs of copper, 70m oz of platinum, palladium and gold, and 283 million oz of silver totaling a historical and current reserve value of 1 trillion dollars. The theory of Sudbury 2.0 is that the anomaly has the same geliligical characteristics of the SIC and their recent field work has given further support to this theory- which is somewhat mind-blowing. I wouldn’t go out buying the stock on this development alone, but it bears watching.

I believe this is also one of the reasons they recently had a private placement to raise funds for this exploration activity as well as their bulk sample program at Pardo.


Paperweights anyone



Could you do an analysis on NVO NOVO TSX.

I’d like to hit the bottom before it starts rising and/or the bulk samples assays are released.




Just a word: I would suggest listening to Eric Sprott’s weekly wrap up last week from 12:49 onward:

Eric basically explains Quentin’s latest thoughts -> basically the conglomerates are very hard to come up with a grade and resource estimate so they are going to focus more on their newer Egina region property acquisition where they think the conglomerate has weathered away and left those gold nuggets in alluvial gravel where you can just come along and scoop it up and process the gravel like they do on Gold Rush in the Yukon. Much easier and esp. easier to come up with a resource estimate which is required to get a ‘mining permit’ which will be required for doing large bulk sample / trial mining.

QH may be right in that second part, I don’t know. But it is very much is a major change in direction in the entire approach to the conglomerate gold / Wittswaterand 2.0 story. So IMO the story had changed so fundamentally that it is quite dangerous to assume anything about what Novo / QH has said before in the last 18 mos about Wittswaterand 2.0.

And at $350 M$CAD mkt cap they are priced way above that level of uncertainty at this point. Of course, they have KL and ES on their side very much with skin in the game so that’s a positive. They may just keep funding QH’s work until they find something. KL is doing great and has lots of money. ES has lots of money. But in the short term NVO’s price seems risky to me.

Just imo.


Quite a bounce back tod ay on Novo. It was down something like 6% (like the 20th day in a row it’s been down it seems), but something triggered in the early afternoon when it hit the bottom of $2.52 and then climbed back up all day long to end up 8.3% on > 3x average volume. I’m guessing “value” players came in…or those pushing it down for weeks finally decided its time to go long. Who knows, it just seemed like this was a possible bottom.