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OilPrice.com- The Trump Rally is Over: The Gold Rally is About to Start

T.BTO, FCX, T.K

PR Newswire

LONDON, March 9, 2017 /PRNewswire/ --

OilPrice.com Market Commentary: 'Trumphoria' is over-at least as far as the stock market rally is concerned. But this is exactly the point at which gold becomes exceptional, and one little-known explorer is spectacularly poised to cash in on the biggest spring rally gold has seen in a century. Mining companies forging ahead include: B2Gold Corp. (NYSE: BTG), Kinross Gold Corporation (NYSE: KGC), Freeport-McMoRan Inc. (NYSE: FCX), Sibanye Gold Limited (NYSE: SBGL) and Stillwater Mining Company (NYSE: SWC).

With demand for gold and gold stocks poised for a massive surge beginning in mid-March, small-cap Broadway Mining Ltd ( BR D.V ; BDWYF ) is one of the best 'All-American' picks of the coming weeks and months, as it unlocks the riches of Montana's underexploited metals bonanza.

The timing is critical: Early March is the traditional seasonal lull in gold, right before the spring rally. But this year, it's an entirely different ball game. Amid the 'Trumphoria' stock market surge we saw a radical shrugging off of gold while everyone was paying attention to fantastically over-valued stock markets. Now that rally has ended, we're staring down a massive gold-buying spree that should take off in mid-March.

With 2017 dubbed the year in which we 'Make America Great Again', there's nothing better than All-American Gold, and there's no place better than Montana-the world's hottest mining belt right now--for Gold Rush II to unfold.

The state is home to one of the world's biggest metals bonanzas, and its Silver Star Mining District is a gold belt with massive historic gold rush infrastructure and what Broadway Mining Ltd ( BRD.V ; BDWYF ) is eyeing as some of the most lucratively underexplored and underexploited gold territory in the world.

Smart Move on Pure American Gold (and Copper) 

Broadway Mining has been one of the first to grasp the significance of today's gold market for investors by making a smart move on pure American gold.

Montana is fast becoming the hottest mining venue in the world, and the competition is fierce-so much so that there is a growing concern that China may gain too much of a foothold here and threaten national security.

Sibanye, which is 20% owned by the Chinese, is trying to win approval for the US$2.2-billion takeover of Stillwater Mining Co. (NYSE:SWC) and its two Montana mines, which are the biggest platinum operations in the U.S., and even the biggest outside of South Africa and Russia.

Broadway Mining Ltd (BRD.V; BDWYF) owns a 100% interest in the Madison Gold and Copper Mine in the heart of southwestern Montana's prolific Silver Star Mining District gold belt. This is a pure play gold and copper project in Butte, Montana-arguably one of the largest collections of metals in the entire world. It's only 50 miles from the famous Butte open pit mine.

In this acquisition, Broadway has inherited 450 acres that already has extensive underground development and facilities. It's also inherited C$9.9 million of direct expenditures already made on the mine historically, plus another C$2 million invested by former owner, Coronado Resources, since 2005.

This is a gold-copper skarn deposit associated with a deeper copper-gold porphyry deposit that already has six federal patented claims and 35 underexplored unpatented claims.

It's also home to the Broadway Gold Mine-from whence the newly listed company takes its name. The Broadway Gold Mine is a historic producer dating back to the 1880s. Between 1880 and 1950, the mine yielded some 450,000 tons from 6,000 feet of underground workings.

What's different today? Quite simply, water and technology. Historic exploration was shallow, sticking to 400 feet at most, because getting down to the water was too expensive and technically challenging.

The best part: It's never been fully explored or exploited, and Broadway has already identified a series of high-grade gold and copper zones for expansion.

This isn't just about gold. There's a huge copper upside here, as well. Broadway's new acquisition is undoubtedly one of the largest copper mines in the U.S. And with copper prices jumping over 9 percent in January, there has never been a better time to get in on this metal.

The copper prospects here are just as exciting, and it makes the lucrative gold that much more attractive. Broadway is looking forward to finding deep-seated copper porphyry, common to the classic Butte copper porphyry, copper-gold multi-element system. So while the company is chasing down near-surface skarn material right now, just 600-700 feet deep, it's going much deeper in the near future.

And timing is everything with a small-cap that's got stellar management track records: They already drilled eight holes and lab results from the first three will come out possibly within a week.

Getting There First: New All-American Gold 

Broadway's gold-copper play is an advanced-stage exploration project. Because they have all the underground mine workings already and have already rehabilitated it, they can gain access to the areas that the previous owners were bulk sampling. That means they have access to material immediately. At the same time, its surface drilling program that is already into Phase 2 is working toward Broadway's maiden 43,000+ resource calculation.

The company is also cashed-up and ready to go.

Though it's a brand new listing, it's already fully capitalized after two successful fund-raising series. The first phase raised US$900,000, and the second, US$2.1 million. The first phase was used for the acquisition and then second will be applied to an aggressive field program of underground mine rehabilitation, deep IP geophysics and surface drilling. They've already finished the Phase 1 drill program, and Phase 2 launched last week.

They've gotten this far because of stellar management with a very forward-thinking vision, which is exactly what makes a small-cap today.

Broadway has a dream team that's nothing short of legendary in the oil & gas and mining sectors. Chairman Duane Parnham spent his career founding and developing attractive resource-focused companies, including Temex Resources, Giyani Gold and Canoe Mining Ventures. He started UNX Energy as a US$2-million shell focused on offshore oil and gas in Namibia and raised US$60 million in equity against a US$6-million acquisition cost before he sold the company for US$730 million. After that, in 2011, Parnham started Giyani Gold, exploring in South Africa's Giyani Green Stone Belt. Again, he turned a US$1-million start-up into a gold mine, raising US$9 million in equity and turning it into a US$350-$400-million market cap.

Junior resource companies with huge overheads and exorbitant consultant and management fees don't last too long out of the gate, but Broadway has a small team of experts with proven multi-million-dollar track records and they don't need expensive consultants and they don't believe in big overhead. On the contrary, they are a low-burn company with key figures who don't need a day-to-day paycheck. They're fully focused on adding value to an exciting project. And this company is truly motivated to get to the finish line first-that's why it's so closely held by insiders.

Making Gold Great Again 

There has never been a more promising time in the commodity price cycle to get in on gold and copper, and as Trump continues to boost gold no matter what he does or how long he lasts, demand seems certain and prices brilliant. Broadway Mining Ltd ( BRD.V ; BDWYF ) gets it.

Gold thrives on chaos, and even the slight possibility of impeachment keeps gold prices up. But gold is now good in any scenario. If he remains in office, Trump will pursue highly inflationary policies, and while gold loves chaos first and foremost, inflation is its mistress.

Geopolitically, we haven't seen this level of pending global chaos in decades, and we're looking at a unique small-cap that is poised for gains in an emerging scenario that is great for gold.

In this new role American gold is about to play in an increasingly uncertain world, it's all about Montana and a small-cap company that in the coming weeks is poised to demonstrate just how important it is in making American gold great again.

Gold stocks are loving this atmosphere. The world's hottest mining belt right now is the U.S. state of Montana. With gold futures up 10% and spot prices up almost 7.5% in the first quarter, history is preparing to repeat itself with another gold rush.

By mid-February this year, the market's largest gold stocks saw double-digit gains. Freeport-McMoRan (NYSE:FCX), up 21% in January, sold an impressive 1.1 million ounces of gold in 2016 and produced a whopping 4.65 billion ounces of copper. Kinross Gold (NYSE:KGC) was up more than 18% in the first month of 2017, and Sibanye Gold (NYSE:SBGL), also up, reported a fivefold increase in earnings. B2Gold (NYSE:BTG) was also up 21% in January.

And by mid-March, they're going to be loving it even more as the Spring buying rally gets off the ground like never before.

By. James Burgess of Oilprice.com

Legal Disclaimer/Disclosure from OilPrice.com: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

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SOURCE OilPrice.com



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