Why I have initiated buying MAX Resources? Public mining companies in vancouver and Toronto are like hopping bunnies. They move from one project to another looking for an elephant size discovery.
Great Bear resources found next Hemlo , New found Gold found next Fosterville, Ivanhoe Mines and De Grey Mining Australia found one too. I am also looking for companies that hit big discoveries.
I invest amount of money that I can afford to loose in these high risk mining companies. I have been lucky to be an early investor in these four companies.
It is highly probable that Max resouces have an elephant size discovery.
Bob Moriarty says due your own deligence and make your own decision to buy/hold/sell/do nothing.
I provide my take on Max resources as follows:
I am buying MAX resources for the following two reasons:
1. It's fundamental story is getting impressive and it is indicating a district scale prospect. The area is 180 Km North-South by 20 to 30 Km East-West.
Smart money ( Eric Sprott ) has invested in the company at 24 cts.
2. Mr. Market has mispriced the shares. While fundamental story is improving, it's price is in a very oversold condition. It is making a double bottom.
My buy range is 14cts to 20.5 cts. May to October is not favourable season for stock market amd it may dip to 15cts.
I beleive it should be trading at about 38 cts and at the same level as Hannan Metals Ltd. (HAN.V) which is exploring similar CU-Ag in Peru along with its Japanese parnter JOGMEC.
Max is in a better location with good infrastructure and nearby port for exports ot USA,Europe and Far East. 10th largest coal mine is here. Ecopetrol is drilling
shale for oil in this area. Now Colombia is pushing for copper in this area.
I look for oversold conditions when both daily and also weekly charts show CTM ( Chande Trend Meter) below 20 ( on daily chart ) and below 30 for ( on weekly chart)
See the charts below:
Daily Chart:
https://stockcharts.com/h-sc/ui?s=MXR.V&p=D&yr=1&mn=0&dy=0&id=p92471078713
Weekly chart :
https://stockcharts.com/h-sc/ui?s=MXR.V&p=W&yr=2&mn=0&dy=0&id=p19674331800
Conversely, I start selling stocks when both daily and weekly CTM goes over 90 ( daily chart) and 70 ( weekly chart).
Judge the company based on the project's merit and not based on its past Karma. Buy LOW and sell HIGH is my motto.
Fundamental story: Check news at website : https://www.maxresource.com/
The Cesar area is a valley - mountain ranges on the west it is called "Sierra Nevada de Santa Marta" and on the east is called "Serrana del Perij".
1. Four areas in Cesar North ( 60Km length) is showing Copper and silver. This is along Eastern side. Probably extends from west part of Venezuela.
2. Middle in the valley is indicating presence of both CU and Ag by oil drills core analysis and therefore the company expanded the land area to about 180 Km.
Max is calling it Cesar West. The area extends from the valley to the western mountains which is more volcanic than the eastern mountain range.
It very probable that Max will find Cu-Ag on the western area since most of the sedimentary deposits are big areas.
Imagine mine extending East-West 20 to 30 Km ! You can think of 4 mines on the East and another 4 on the West. Mirror Image.
Max should add extra resources to explore Cesar west. This will be game changer for Max.
3. In the South East the area is called Cesar South ( 340 SQ.KM) and where both copper and silver are present.
Max probably acquired this area because of 2015 report of 1.45% Copper in La Quinta Formation in Western Venezuela.
There are lot of oil drills cores in this area. Max should report XRF readings and core length which has copper and silver.
There is no need for Max to hide results. Show the results good, bad or ugly.
Max compares its finding to be similiar to Kupferschiefer deposit Poland.
Below is link to research document "Dated Aug-2019.The Kupferschiefer Deposits and Prospects in SW Poland: Past, Present and Future"
https://www.mdpi.com/2075-163X/9/10/592/htm
Read several times to understand and compare it to Max Resources.
Professor Adam Piestrzyski of AGH, Kupferschiefer Expert stated:
“Similarities: basin characteristics, lithology, mineralogy, grades”
“Difference: Kupferschiefer orebody starts at 500m below surface, CESAR copper silver mineralization starts at surface”
“CESAR Potential: this new discovery could lead to the discovery of several major
copper-silver occurrences, similar in size and nature to Kupferschiefer in Poland"
Hannan Metals Ltd. (HAN.V) - Quinton Hennigh is advisor.
RSD Interview: Hannan Metals (TSX-V: HAN) Advisor Quinton Hennigh - April 15, 2021
https://www.youtube.com/watch?v=57fMQhKXfwI
View this Youtube presentation on how sedimentary deposits are formed.
Look at the page 435 to view Cesar-Rancheria Basin map which shows Igneous, Sedimentary and Volcanic areas in the following document.
Integrated Structural and Basinal Analysis of the Cesar–Rancheria Basin, Colombia :
URL:
https://www.researchgate.net/publication/289530492_Integrated_Structural_and_Basinal_Analysis_of_the_Cesar-Rancheria_Basin_Colombia_Implications_for_its_Tectonic_History_and_Petroleum_Systems
Cesar South definitely has Copper.
A study published in 2015 on the La Quinta Formation (Tchira in western Venezuela), shows the presence of 1.45% of copper, present mainly in
malachite mineralisations in the volcanoclastic beds of the formation. This area is South East of Cesar South .
See following URL for the information.
https://en.wikipedia.org/wiki/La_Quinta_Formation
The La Quinta Formation is a Jurassic geologic formation which crops out in the Cordillera de Mrida and Serrana del Perij of western Venezuela and northeastern Colombia.
The formation is also present in the subsurface of the Cesar-Ranchera and Maracaibo Basins. At its type locality near La Grita, Tchira, it consists of a
basal dacitic tuff followed by interlayered sandstones, tuffs, siltstones and rare limestones.
Note : Oct 26/2020 Mr. Eric Sprott bought 8 million shares at 24cts.
Colombia to auction mining areas with potential copper, gold -gov't Feb 9th 2021.
https://www.reuters.com/article/colombia-mining/colombia-to-auction-mining-areas-with-potential-copper-gold-govt-idUSL1N2KF24Y
(Contracts for four areas with potential copper and polymetal in the northern provinces of La Guajira and Cesar will be on offer in the first round,
which is set for Feb. 25 2021, the statement said.)
My thoughts on Assay Results:
1. It is taking a month to report traditional assay results of rock samples.
2. Instead company needs to do several XRF readings and report averages of the readings in first news release.
3. Send samples to Vancouver (or Australia ) to do Chrysos PhotonAssays ( if MSALABS provides it ).
Processing is very fast an have results within a day for the second news release.
Chrysos PhotonAssays is used by Kirkland Lake and American Barrick to optimize gold production. Novo Resources will be using it shortly.
Chrysos PhotonAssays- see folowing links:
https://www.chrysos.com.au/what-is-photonassay
https://www.youtube.com/watch?v=t5oTRXoCdbw
https://www.metaltechnews.com/story/2021/05/05/mining-tech/photon-gold-assays-gain-wider-endorsement/550.html
https://im-mining.com/2021/04/29/chrysos-partnership-msalabs-include-least-photonassay-units-first-going-barricks-bulyanhulu/
https://static1.squarespace.com/static/5edef599fb52c72f96a4fa23/t/5f2cb0b28ab67345bb905d5e/1596764354744/Chrysos+PhotonAssay+Canadian+Mining+Journal.pdf
Publications of interest to copper deposits:
==================================
Sediment-Hosted Copper Deposits of the World: Deposit Models and Database version 1.3 published 2007
https://pubs.usgs.gov/of/2003/of03-107/of03-107.pdf
Takeaway point:
Majority of sedimentary deposits have grades from 0.56% to 1.7% Copper.
Sediment-Hosted Stratabound Copper Deposit Model
Scientific Investigations Report 2010–5070–M
https://pubs.usgs.gov/sir/2010/5070/m/pdf/sir2010-5070m.pdf
Copper Deposits in Sedimentary and Volcanogenic Rocks published 1976.
https://pubs.usgs.gov/pp/0907c/report.pdf
List of publications related to copper:
https://www.science.gov/topicpages/s/sediment-hosted+copper+deposits
9 Highest Copper Producers:
======================
1. Codelco
2. Glencore
3. BHP
4. Freeport McMoran
5. Southern Copper
6. KGHM * Operates CU mines in Chile, Canada and USA
7. Rio Tinto
8. Antofagasta PLC
9 Nornickel
So which 3 mining companies have non-disclosure confidential agreements with Max Resources ?
Are they KGHM, BHP, Glencore or Rio Tinto ?