Mining Fever in Vancouver

Over the weekend, I attended the Metals Investor Forum 2017 in Vancouver. I arrived with a high fever I developed on the much-delayed flight across North America. I was so sick, I probably should have gone to a hospital, not my hotel. But that didn’t stop me from seeing excellent presentations by very interesting companies and speakers.

So, I learned about some great companies I only knew as names before. I caught up with companies I have been following for a while.

If hot little mining and exploration companies give you gold fever, you’ll want to read on.

You know something that was hotter than gold at the conference? Zinc! That’s because the supply/demand outlook for this base metal is very bullish — this year and going forward.

Old zinc mines have shut, and there isn’t much coming online in the near term. So, the math is quite bullish.

Zinc rallied 60% in 2016, and investors are expecting more going forward. That makes zinc a hot buzzword.

There were great companies of all types. You can find them on the Toronto Stock Exchange (TSX) or TSX Venture Exchange (TSX-V). Companies that piqued my interest included …

Darnley Bay Resources (TSX-V: DBL). It’s working on a preliminary economic assessment on a zinc resource near the town of Hay River in the Northwest territories. It’s a past-producing, "brownfields" project, so it has plenty of infrastructure. This company is new to me; I plan to take a closer look at it.

Atlantic Gold (TSX-V: AGB). I call this "the best little gold developer you never heard of." It’s building a gold mine in an area of multiple rich gold zones in Nova Scotia, Canada. It should be in production in five months. I gave my Red-Hot Resource Millionaire subscribers the scoop on it, along with the U.S. symbol. And that’s all I’m going to say.

For all the details, and to get my 12 Mining Titans of Tomorrow report with my "dirty dozen" miners and explorers you’ll want to follow very closely this year, click here >>

Columbus Gold (TSX: CGT). Here’s a company that is partnered on a 2.75-million-ounce gold project, Montagne d’Or, in French Guyana. Their partner just delivered a feasibility study, but the projected Internal Rate of Return (IRR) is only 18.7%. That’s not really what the market was hoping for.

I’m pretty sure Columbus Gold feels their partner rushed things to meet a deadline. So, Columbus Gold plans to do some in-fill drilling to add ounces to the mine plan. This could potentially lower the cost projections and boost the IRR.

Erick Bertsch tells us all about it in this video interview.

Direct Link

I’ll keep my eye on the company for developments.

Telson Resources (TSX-V: TSN). This is a company I’ve followed for a while. It’s already a silver-gold mine developer. And it got a lot more interesting when it picked up the past-producing Campo Morado zinc mine in Guerrero State, Mexico.

Now, the part of Mexico around Campo Morado is one of those places that gives my wife the chills when I talk about going there. But Telson’s president, Ralph Shearing, says his company has the right local team and approach to handle any problems.

Tinka Resources (TSX-V: TK). This is another company I’ve talked to in the past. It is developing a zinc-tin-silver project in Peru. And it just issued a resource on the zinc, including a larger high-grade zone.

TriMetals Mining (TSX: TMI). This gold explorer is hard at work along the Utah-Nevada border. I talked to CEO Ralph Fitch at the PDAC (the world’s biggest mining conference) in March. You can see that previous interview here:

Direct link

TriMetals had more good news from its drill bit at the Metals Investor Forum.

West Red Lake Gold Mines (CNSX: RLG). Another company I talked to at the PDAC, and we had a good chat at the Metals Investor Forum, too.

West Red Lake has a project in the West Red Lake Gold District. That project has three past-producing mines: Rowan, Red Summit and Mount Jamie.

Goldcorp is a 40% partner on one of the mines, Rowan. The whole project is in the right part of Canada along a rich trend. Plus, they have a geologic intersection on their property that is setting off all the right bells and whistles.

The only reason I haven’t ever written about this company before is because it’s not listed on the TSX or TSX-V. Rather, it’s on one of Canada’s other stock markets — the Canadian Securities Exchange, also called the CNSX or CSE.

It’s not a bad listing. But life is confusing enough for U.S. investors trying to buy Canadian stocks. If West Red Lake changes its listing, we’ll take another look at them. The stock is also listed in the U.S. on the OTC. But trading volume for its OTC listing is quite thin. And trading volume is important not just for getting in at a good price, but getting out … and that means having enough people available to sell to.

SilverCrest Metals (TSX-V: SIL). There are good grades. There are rich grades. And then there are BONANZA grades. SilverCrest is finding bonanza-grade silver at its past-producing Las Chispas project in Mexico. A lot of it.

I’m not going to tell you the whole story, because I would be repeating myself. I already gave my Red-Hot Resource Millionaire subscribers the scoop on Monday, along with the U.S. OTC tracking stock for SilverCrest.

You can, however, watch the video interview I shot at the conference with SilverCrest’s CEO.

Direct link

You can also read this announcement about SilverCrest’s latest discovery. Drill intercepts including 1,199 grams, 1,586 grams, 1,657 grams and 1,703 grams of silver equivalent per ton.

To put that in other terms, a grade of 1,703 grams of silver equivalent per ton is a mix of gold and silver equal to 1.7 kilos of silver, or 54.6 troy ounces, per ton of ore.

That’s a lot of silver. I strongly believe there will be much more to come. Maybe all the grades won’t be this high. You know what? A company can make a hefty profit with 800-gram, 900-gram or 1,000-gram silver equivalent grades, too.

Be Careful

I tell my subscribers when I think they should buy; I tell them when I think they should sell. If you’re doing this on your own, be careful. Do your own due diligence.

I’ve told you about just some of the great ideas I got at the May Metals Investor Forum 2017 in Vancouver. I even told you about two actionable ideas I already shared with my subscribers. Forgive me if I hold back the details here. (But you can click on this link to get the full scoop.)

The point is, gold and silver are at fire-sale prices; this sale won’t last for too much longer.

Related stories: You’re Exiting Gold’s Worst Month’s — The Best is Yet to Come, The Most-Important Pullback in Gold You Will Ever Consider Buying

I gave my own presentation at the Metals Investor Forum. I may have been just spouting feverish gibberish by the time I got to the podium. Nonetheless, they’ve invited me back to speak in September.

I can’t wait to see what ideas await me next time. There are fantastic, undiscovered stocks over the border in Canada. Just waiting for smart investors to come scoop them up.

Will you be one of them?

Best,
Sean Brodrick

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Sean travels far and wide to seek out small-cap values in the natural resource sector. His journey started in New England. As a youth he worked on Mt. Washington, on the cog railroad that runs to the summit. Working on…