The gold price got knocked down yesterday morning just ahead of an auction of US Treasuries. It looks very suspicious to me as the U.S Treasury had to ante up prices not seen since 2008. Furthermore the bid to cover ratio on the 4 week sale declined to near a decade low. The government began at 11:30 am. New York time by auctioning $51 billion of three-month bills at a yield of 1.64 percent, 6 basis points more than similar-tenor debt sold on Feb. 12, and $45 billion of six-month bills at 1.82 percent.
This is just the beginning of the U.S. debt auction schedule so why not knock the strongest indicator (Gold) of rising inflation and interest rates downward. These actions only have small short term effects, I think the bigger question is – has the Bull market in U.S. equities ended. I think the odds are about 50/50 right now and this is what I am watching for on the chart.
The drunken party after Trump's election is quite visible with the high volumes. The correction from what appears as a blow off peak is the biggest in years, but big bull moves mean big corrections. This has been one of the strongest bull markets ever witnessed and I doubt it will die quietly into the night. I expect we will at least see a test of the highs near 2,900 and the question from there is whether we break out to new highs and the bull continues or we fall back down in a topping out fashion.
Jaxon Mining Inc. (TSX: V.JAX, JXMNF, Forum) Recent Price $0.21 Entry Price $0.10 Opinion – strong buy Jaxon released their drill results Friday and more assays yesterday from a new Gold discovery on their Hazeltion property. Yesterday Jaxon released high-grade gold and tellurium assays from a second phase of sampling at its Cirque-Ridge-Tarn (CRT) target at their Hazelton project. The CRT target is located approximately 17 kilometres southwest from Jaxon's MAX silver-zinc target, drill results discussed below.
CRT Highlights
• Highly gold-enriched breccia complexes returned assay values up to 33 grams per tonne Au. • Single breccia outcrops occur over widths up to five metres and intermittent strike length up to three kilometres.
• Discovery area of multiple high-grade gold breccia zone complexes expanded to at least 1.5 kilometres by three kilometres.
• Further evidence that the CRT and RS (Red Spring) targets are genetically related to a large intrusive/porphyry system.
Jason Cubitt, Jaxon's president and chief executive officer, commented: "This is showing all the signs of a large precious and base metals-rich porphyry system and may be a primary engine driving mineralization in the entire district. I congratulate our technical teams for the excellent work they've done identifying it."
Mr. Cubitt continued, "Based on this discovery, Jaxon now has two primary discoveries within the Hazelton district, the now-confirmed Max VMS system and the CRT/RS system hosting high-grade precious and base metal mineralization."
The initial discovery of extensive breccia bodies which returned high-grade gold and tellurium assays from the Cirque-Ridge-Tarn (CRT) was reported in Jaxon's press release of Sept. 14, 2017. During the fall exploration season, Jaxon expanded the surface prospecting coverage of the brown and bright red gossanous areas of the CRT and RS prospects with a further 49 rock samples collected from the CRT.
This work not only returned high-grade gold assays but also expanded the extent of the tourmaline breccia occurrences to three separate cirques approximately 500 metres apart. Sample grades from these three cirques now include 33.8 g/t, 18.4 g/t and 18.3 g/t gold with tellurium concentrations exceeding 73 g/t. On Friday, normally a day for poor news releases Jaxon reported assay results from 2,281 metres of diamond drilling in 12 exploratory drill holes completed in December, 2017, on the Max silver-zinc target at the Hazelton project.
There were no decent longer intersects but all drill holes intercepted sulphide mineralization indicating widespread distribution of mineralization describing a robust system. I expect the market was looking for a big discovery hole, but in reality the drilling was a success because high grade results on surface were confirmed at depth with the drills.
The number of intersects also indicates this is a large and strong system. The challenge for Jaxon is to find the larger source of these high grade veins.
Drill Highlights:
• Eleven discrete intervals of high-grade silver (over 100 grams per tonne silver) were intercepted in seven of 12 holes drilled.
• These intercepts occur as antimony-rich silver sulphosalts in polymetallic veins, feeder breccias and stratiform beds, returning grades from 103 grams per tonne to 1,206 grams per tonne silver, up to 11.1 per cent zinc and up to 2.07 grams per tonne gold.
• The multiple-phase overprinting of polymetallic sulphide-sulphosalt mineralization is suggestive of a large and long-lived shallow-marine volcanogenic massive sulphide (VMS) system in this portion of the volcanic-sedimentary Rocky Ridge sequence.
Carl Swensson, Jaxon's vice-president, exploration, stated: "We've ticked all the boxes with this firstpass drilling on the Max target. The drill results, as modelled, indicate that we're in a large mineralized volcanogenic system. It's evident that the system carries high grades of precious and base metals, and, importantly, we're beginning to understand its diagnostic signature at depth."
Intersects were narrow, around 0.5 to 1.0 meters but high grade silver and zinc. The highest grade was 1,206 g/t silver with 10.8% zinc over 0.2 meters in hole 11 and next best was 418 g/t silver with 10.29% zinc over 0.62 meters in hole 12, both shown near the top of the drill map. Other intersects ran from 100 to 300 g/t silver with 2% to 11% zinc. The map next page will show you where the CRT target is in relation of Max where they drilled.
On the chart there is very strong support around $0.21 that has been tested numerous times. The stock jumped up on drill news and then fell back down, but with Monday's news and drill results, I believe they have two good chances of a discovery and the price where it is makes for a strong buy. If you took part profits when I suggested around $0.30, a good time to buy back ahead of 2018 exploration season.
Redzone Resources Ltd. (TSX: V.REZ, OTC: REZZF, Forum):
REZ Recent Price $0.60 Entry Price $0.23 Opinion – hold, buy
Yesterday RedZone announced that it has located and staked an additional 36 lode claims or 744 acres at or near its Fortner & Boyd Lithium Property. This area increases the Company’s total land holding by 18% to 236 lode claims totaling 4,876 acres. Upon review of the geological mapping and the location of pegmatite dykes on the current holding, many of which contain lithium bearing spodumene, RedZone has identified additional extension areas which appear to contain similar dyke outcrops. This was their previous map so these additional claims will be around these current ones indicated below.
The stock is still very cheap compared to similar lithium stocks and the story here just keeps getting better. Remember lithium has seen very little exploration in the past and what Redzone is finding here could be a large scale lithium district. Contine to hold, add or initiate positions in the stock. Guyana Goldstrike TSXV:GYA Recent Price $0.26 Entry Price $0.31 Opinion – buy Some very good news with GYA last week, they arranged a strategic investment with Gold Mountains Asset Management Ltd. The investment will be completed by Zijin Global Fund and Zijin Midas Exploration Fund LLC, both managed by GMA.
Zijin is a publicly listed company that trades on the Shanghai and Hong Kong Stock Exchanges with a current market capitalization of $18-billion. With extensive interests across a broad range of commodities, it is the largest gold producer in China and is a well-capitalized, experienced and successful miner. You might remember that this is the same group that financed Jaxon. Guyana will issue 12.8 million shares at $0.25 for gross proceeds of $3.2 million. Proceeds from the investment will be used to advance the company's flagship Marudi gold project in Guyana. These new shares will be in strong hands and Zijin will likely partake in future financings.
Today GYA announced its founding membership in the formation of an Ethereum Blockchain Strategic Alliance for Gold and Silver asset backed crypto-tokens (the "Alliance"). Founding Members of the Alliance The founding members of the Gold and Silver Ethereum Strategic Alliance are as follows:
•- Canamex Gold Corp (TSX-V: CSQ) - Guyana Goldstrike Inc (TSX-V: GYA) - Cabral Gold Ltd (TSX-V: CBR) - Arizona Silver Exploration Inc (TSX-V: AZS) - Altamira Gold Corp (TSX-V: ALTA)
Purpose of the Alliance
The members of the Alliance seek to collaborate for the purposes of future offerings of crypto-tokens and potential future initial token ("ITO") offerings. The offerings may be backed by gold and/or silver forward delivery, using gold and/or silver royalty streaming and other asset backed models, for the purposes of developing future financing models for funding future exploration, feasibility studies, mine development and/or mine expansion, by its member companies.
Discussions are also underway with additional parties, who are looking to join the Alliance as members, and updates will be provided as the Alliance membership grows. I have been following this, in particular Canamex because they announced a $6.25 million financing offering US$5 gold royalty tokens based on possible future production of their Bruner Gold project. Basically these crypto-tokens are like call options on Gold. You have a right to buy Gold in the future at discount prices should the mine get into production.
Basically you weight the risk of the project getting into production against the discount you get on the Gold. In Cananmex's case it is US$1,000 per ounce. I have known the Bruner property for many years, it is low grade and the risk is high that it goes to production. I would not touch their toke offer with a 10 foot pole. Never the less, I am watching to see if they can close on this finance offer. I would be surprised if they do, but maybe there is an appetite for this.
If Guyana Goldstrike offered something similar, would be totally different because their project has way higher odds of getting to production compared to Canamex's Bruner. Silver Bull Resources Inc. (TSX: T.SVB, OTCQB:SVBL,Forum) Recent Price - $0.21 Entry Price $0.12 Opinion – strong buy Silver Bull came out with more strong drill results this morning.
I believe the only reason the stock is so cheap is the recent weakness in the mining market and there was some warrants being exercised. There are still about 27 million warrants but most of these are from the 8 cent financing and do not expire until July 2019 so will not be any pressure on the stock price this year. Highlights from the seven holes announced in this news release include:
• Hole T17022 -- six metres at 802 grams per tonne silver, 5.87 per cent zinc, 3.3 per cent copper and 0.54 per cent lead;
• Hole T17019 -- two metres at 1,300 g/t silver, 13.52 per cent zinc, 3.87 per cent copper and 2.95 per cent lead;
• Hole T17021 -- six metres at 5.8 per cent zinc and 0.47 per cent copper.
I would be accumulating this stock before it wakes up in the investment community. I would bet major mining companies already have an eye on this as these high grade sulphide zones keep getting bigger. Silver Bull can drill very inexpensively using their underground termite drill, probably around 1/3 the cost as typical above ground drilling with a contractor.
This map shows the new underground workings they have recently gain access to and can drill underground. You can compare to where the 2017 drill stations are located. In addition to this new area opened up, SVB reported one surface drill hole in the west which intercepted 8.45 meters of 17% Zinc and 5.5% lead and lies another 400 meters along strike from the new zone described below. SVB has 5 more underground drill stations being set up and probably more will follow
The channel samples they have done in these areas yet to be drilled are spectacular, mostly running 15% to 30% zinc with 100s of grams silver and some decent copper and lead grades too. Tim Barry, president, CEO and director of Silver Bull, stated: "We are extremely pleased with the results from this batch of drilling.
The new sulphide zone is proving to be very productive for highgrade sulphide mineralization. The drilling summarized in this news release targeted the second of three steeply dipping, discrete structures we have identified in the sulphide zone. Drilling from the first structure announced in the previous news releases of holes T17001 to T17014 were dominated by high-grade silver-copper sulphide mineralization grading up 1,300 g/t silver and 6 per cent copper.
A second structure defined by holes T17010 and T17018 to T17022 is dominated by extremely high zinc sulphide mineralization, grading up to 48 per cent zinc and suggests a metal zonation in the mineralization. In addition to the area currently being drilled we have opened up an additional 350 metres of historical workings along the east-west trend of the sulphide mineralization which was announced in January, 2018.
This channel sampling program clearly shows the continuation of highgrade mineralization towards the west. Our underground geological mapping of this area shows a number of high-angle structures up to two metres wide containing sulphide mineralization grading up to 1,300 grams per tonne silver, 42 per cent zinc, 18 per cent lead and 13 per cent copper that appear to feed into the overlying oxide zone.
This will be the next target of our drill program in this area." This map is a good summary of results. You can see the area drilled so far is just a small portion of these zones that are outlined by the IP anomaly and B11144 drill hole 900 meters away, shown to right.
If these maps are a little small to view, go the the website here and you can blow them up to see detail. Sooner or later the Bull is going to come back to the SilverBull stock price. The chart next page is a thing of beauty. A nice uptrend channel is in place and currently it is just above the 20 cents support area. An excellent time and price to buy.
(c) Copyright 2018, Struther's Resource Stock Report All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate.
The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change.
The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.
FULL DISCLOSURE: Jaxon Mining Inc. is a paid client of Stockhouse Publishing.