THE CALANDRA REPORT: Sample & Subscribe
HOLY ABITIBI! VAPORWARE WE CAN GROOVE ON
This is Vaporware Christmas in July.
We used to call the press stream vaporware. That was when vapor, as in nonsense-paragraphs, sold Internet-company stock that went to the cyber-sky.
I used to call it
vamp-ware in the 1990s, being I was a fan of Anne Rice’s red cell-slurping New Orleans novels.
In
natural resources, we rarely get to the rallying point where vamping the press wire actually
helps the equities.
That’s changing as gold and silver, platinum, too, make a swift July run here.
July? I have never seen this many Vancouver, Toronto, Melbourne, news releases in northern hemisphere summertime. Calgary and Montreal even.
And the phone calls. This time, I have to say, some of the callers have righteous reasons to get on the horn to shareholders. [Mind you, some – not all of these resource-reducing vamps.]
Some of their petrified equities are actually moving higher, too. That’s another miracle in July. Vaporware is not always vapid-ware or
vamp-ware.
Continental Gold (
TSX:CNL,
Stock Forum) at Buritica in Colombia reported, literally, something like thousands of grams of gold and silver per tonne, albeit over flash-point intercepts of a few meters.
This is a common occurrence in and around Continental’s
Veta Sur vein in Antioquia, within a picnic drive of the city of Medellin.
I’ve been there and seen it, twice. Sometimes, you can see the wired silver. CNL shares in Canada are perking up on the report – for once. In July of all things.
I don’t own this one, and probably will
never purchase it unless the company demonstrates 1.it can resolve with local and regional
politicos the horrible deaths and
polvo loco injuries that illegal Colombian (and probably Venezuelan) miners in the area suffer; and 2. that a new gold and silver mine can make it
all the way through to production in that scenic part of coffee-growing Colombia. By then,
Continental shares likely will have returned to $10 (from $3.70 CAD currently).
Turning to vapors closer to home,
NuLegacy Gold (
TSX:V.NUG,
Stock Forum) is one of the
TCR 6 and active in Nevada, USA. It’s actionable, too.
I have owned this one a long time, and been to the prospect twice. The company will tour the targets next week.
Roger Steininger, one of a handful of senior-citizen or almost senior-citizen Nevada geologists I track and support with my cash, is the lead geologist here. (Other seniors I track include David Mathewson, formerly of Gold Standard Ventures.)
The vapor is good in this part of Nevada. Fresh reverse-circulation assays are just in from the North Iceberg target in that state’s
Cortez Trend. Good grades for NuLegacy, decent lengths and 100 meters' distance from surface, or better.
View PDF
"Probably the most significant point is that we appear to have the Wenban-5 within 150 meters of the surface ... whereas across the valley at (Barrick’s) Goldrush, the Wenban-5 is from 300 to 750 meters deep. Take a look at
slide 8 of our presentation," Mr. Matter tells us. He is in Vancouver, Canada.
I love when junior prospectors shovel dirt on their behemoth next-door neighbours. I think
Tembo Gold (
TSX:V.TEM,
Stock Forum) is in a similar situation with its African Barrick neighbor next door in Tanzania, but those Tembo folks are so polite, I can hardly get them to even say the Barrick-word.
Anyway, there are so many metals prospectors and producers with news, or pending news (stocks halted), I can’t keep track. That happens when one owns 54 individual equities, about 50 of them in resources.
So I am trying something different this week. I opened a
Motif Investing account and created my own basket. It is called
RUFFLED RESOURCES.
The idea is to fashion your own basket, with your own weightings. I did. This one, Ruffled Resources, is loaded for the big resource rally. When she comes, no one knows. But in three days, the 18 stocks in this thing are up smartly.
I'll be purchasing more of my own cooking. This is
a starter for my Motif Investing account. Execution of all 18 equities was almost instantaneous, and commission was $9.95. Cheap resources with
oomph when they recover from depressed levels. The one thing lacking at Motif Investing, based own the freeway from us in San Mateo, California, where I first launched MarketWatch.com with partners, is the ability to add penny stocks to the mix.
So, I put in the two silver stocks that have helped us finance the next 8 years of university for Our Two Teens. That’s Great Panther Silver and Endeavour Silver. Luckily, they both trade in NYC as well as in Toronto, otherwise I could not Motif-them in
Ruffled Resources.
GPL and EXK are Mexico silver producers, and their stocks move big time in both directions.
Robert Archer’s Great Panther, along with Guanajuato and Durango, Mexico, neighbor
Endeavour Silver (
TSX:EDR,
Stock Forum) are probably our most consistent equity money-makers.
This week as silver rises, GPL and Brad Cooke’s Endeavour are leading most silver equities with gains.
Mr. Archer tells us it looks like buying ahead of GPL’s operations report on Thursday.
“Our operations news release doesn’t come out until Thursday,” he says. “I suspect the sharp rise in the silver price triggered some action by people that have been on the sidelines waiting.”
My favorite this week on the paragraph wire is
Abitibi Royalties (
TSX:V.RZZ,
Stock Forum)
.
Abitibi Royalites and parent company Golden Valley Mines are up 4-x in a few months. Big days and lots of share volume after a nifty piece of
vaporware that
has Canada gold miner
Robert McEwen of McEwen Mining purchasing $2 million of the Quebec company’s RZZ shares.
“We want to exercise right of first refusal on
CHL Malartic,” Glenn Mullan tells us just now from Val d’Or, Quebec.
Glenn Mullan, CEO, and tiny-team just got the $2 million from Mr. McEwen, a longtime miner and company maker. “A lot of the money will go to legal, I expect,” says Mr. Mullan from Quebec.
He’s taking a poke at
Osisko Mining, which has been (pick one) 1. Obtuse; 2. Less than transparent; 3. Unresponsive;
In the way the new Osisko intends to handle the interests of joint venture partner Abitibi Royalties.
If you have been following this one for the past three years (anniversary this month of the RZZ spinoff from GZZ), and you own shares of the Malartic and Abitibi Belt, Quebec, royalty holder, well, as Beck the musician says, “One, two, you know what to do.” And it’s not “sell,” either.
Mr. McEwen’s purchase of 800,000 shares at a market price, more or less, comes with
zero warrants and no finders’ fees. I like that.
See news. The money means RZZ will pursue any and all means in the legal arena to make sure partner Osisko Mining operates
CHL Malartic and distributes the appropriate and correct net smelter returns from that part of the property adjacent to Canada’s largest gold mine.
Then there is the matter of how to interpret RZZ’s 30 percent free-carried working interest in the venture. We will see additional drill results from the
Odyssey North Zone
discovery located on the Malartic CHL property at some point.
This is an $80 million company masquerading as a $27 million one. Making a $3 CAD stock something in the range of $9 one day (our TCR fair value estimate) as the entry way into perhaps the only way left to own a pure piece of Canada’s largest gold mine, or at least mineralized property right next to it, without the dilution of other properties and interests.
I own enough of both companies – RZZ and GZ -- to make a difference in our lives here at home. Did I tell you that Abitibi also has an interest in Ontario’s so-called Ring of Fire?
Thank you, Vaporware. For our Stockhouse friends, please subscribe to
TCR for $110 yearly – links here. This week, we will have another blockbuster surprise for you – related to highly concentrated carbon in the New World.
THE CALANDRA REPORT: Sample & Subscribe
THE CALANDRA REPORT
$110 yearly: Does Not Recur
THE CALANDRA REPORT
$110: Will Recur Yearly
CEO.ca &
Stockhouse.comcatalogues
Thom's
actual portfolio
www.thomcalandra.com
$20 yearly