Saturday, 28 March 2020

Gold Has Confirmed Its Status As The Ultimate Hedge In The Uncertain Times: The Best Gold Stocks Are On The Launchpads.

These are the two most important charts for us now. As we have discussed before, Gold has confirmed its status as the ultimate hedge in the uncertain times and the best Gold mining companies will be the wealth generators. "Larry Kudlow's $6 Trillion dollars PUT" is lifting spirits and the markets which were looking into the abyss this month. 

FED has demonstrated its ability not only to manipulate the Gold market with their friends from BIS Club but to destroy the stubborn US Dollar at will when they really want it. USD is pushed well below 100 now, signalling that the flood of liquidity is making its way backstopping the black holes in the financial universe. As you remember,  USD was acting as a shooting star during the Double Black Monday Crash 2020 threatening to become a supernova eruption and literally to tear apart the time and space of the global financial universe.  

The most important for us is that "Whatever It Takes" and "Unlimited Liquidity" are taking shape with numbers: FED's balance sheet is over $5.25 Trillion dollars now and "Stimulus Package" is finally approved at $2.2 Trillion. Let's all hope that at least some of this money will finally find its way to those who really need it now. 

Chart by Northstar

Northstar is producing new brilliant maps for the inspirational navigation of the stormy waters and now Gold should start really moving up reflecting the enthusiasm of the printing presses. Let's just pause and allow it to sink in: FED balance sheet increased by the unprecedented $1.1 Trillion dollars from $4.18 T on February 14, 2020, to $5.25 T on March 27, 2020 - in less than two months! Now it is already higher than $4.5 T - the previous high reached in January 2015. 

Chart by Northstar

Very talented Nicholas Winton was providing his very sharp assessments for the critical turning points during these very volatile days and now he has a new map for our morning motivation meditations in the boardroom at TNR Gold. I would like to welcome all our new Shareholders who are joining us these days. I would like to thank all our Shareholders who are supporting our Company during the sunny and rainy days. 

Chart by HedgehogTrader

And on your behalf, I would like to thank all our very talented GEM Royalty Team at TNR Gold for all their very hard work these days. We are moving forward powered by Gold and rEVolution. Below you can find more links for your own research in order to make your due diligence not to miss this generational opportunity to start your own journey.  

And even the most difficult journey on our long road towards building The Green Energy Metals Royalty and Gold Company can become very pleasant when such mining investment legends like Frank Holmes are paying his kind attention to our Company.  

Alastair Ford: "TNR Gold Has Huge Potential Upside At The Shotgun Gold Project, Plus Significant Potential Cashflow From Two Sizeable Royalties."

"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."


TNR Gold has huge potential upside at the Shotgun gold project, plus significant potential cashflow from two sizeable royalties

"TNR could have millions of ounces of gold at Shotgun 

Could it be that TNR Gold Corp (CVE:TNR) has happened on the perfect model for junior resources companies?
Some years ago TNR made two discoveries in Argentina that were significant enough to attract in major companies who are now moving them to development.
For its part, TNR retained a royalty on each of these projects, the Los Azules copper project and the Mariana lithium project, and now stands to make a tidy annual sum when these projects go into production.
They’re not there yet, but one analyst reckons that the Los Azules royalty could generate around US$3.5mln per year, while the Mariana lithium project could generate upwards of US$1mln.
Recent updates from Mariana may add to that projection too, since the new resource estimate, compiled by Ganfeng, rings in at 4.41mln tonnes of lithium carbonate equivalent, an increase of 250% on the old number. A preliminary economic estimate completed last year gave the first indication of a potential value for the royalty.
Either way, it all adds up to the potential for a healthy income for the company to fall back on, given that it’s still primarily an exploration company.
And, given the attractiveness of the third string to TNR’s bow – the Shotgun Gold project in Alaska, the company is still very definitely an exploration company.
Indeed, according to Kirill Klip, the company’s chief executive, the main focus of effort over the coming months is likely to be on moving Shotgun forward to the point where a major company moves in and begins to help with development work there.
So, is this the same model that proved so successful with Los Azules and Mariana?
Not quite. This time round, with two potentially cash generative royalties in its back pocket, TNR is in a slightly stronger position. Klip’s aspiration this time round is for TNR to retain a much larger stake. The near-term goals are simple enough.
“We need to bring US$10mln in to drill the project very strongly,” says Klip.
“The first US$5mln to take the project from the current 700,000 ounce resource up to the two million ounce mark, the rest to drill out five nearby targets. There’s no reason to suppose that our ground cannot hold multiple mineralised systems.”
At Shotgun the thinking is that there may be upwards of five million ounces of gold in the ground, and there is precedent. At this stage the geology shows remarkable similarity to the 39mln ounce Donlin gold project in southern Alaska, which is owned jointly by Novagold Resources Inc (TSE:NG) and Barrick Gold (NYSE:GOLD).
“We are talking about a high tonnage bulk system,” says Klip. “There are no nuggets, it’s very uniform.”
Among the notable intercepts the company has 242 metres grading 1.25 grams gold per tonne, 209 metres at 1.02 grams, and just under 47 metres at 1.14 grams.
What’s more, the gold that’s been identified thus far sits at the top of a ridge, meaning that the stripping ratio for any mine will be low, which in turn will keep costs down.
So far, so good. The company is now raising a modest amount of money, with Klip coming in for a substantial portion of that, and at a premium.
The next step is to refine the drill targets, and then to go out into the market and see what kind of deal can be cut.
As it stands, the market is taking a fairly dim view of the company’s prospects, valuing the whole package, royalties and Shotgun at just under C$5mln.
Arguably, that’s low for a company that holds a lithium royalty from Ganfeng, one of the biggest lithium names in the business, a copper royalty from McEwen Mining, also a major name, and which may also be sitting on a five million ounce gold project.
The upside is clear. Indeed, Novagold sees it well enough, since it retains a significant stake in TNR, and former Novagold director Greg Johnson now sits on the TNR board. How long it will take the rest of the market to wake up remains to be seen.
Nonetheless Klip is confident that this is a company that’s going places.
“We are not dreamers,” he says. “We did it with the copper. We did it with the lithium. I would like to make it even bigger with the gold. I would like to do better, to keep a 25% stake.”
It’s a vision for growth that makes a lot of sense. In tough markets, where capital is scarce, this kind of approach may well end up being a model that others choose to follow too."

Please read carefully all legal disclaimers. Please note that all opinions expressed in the article, apart from the direct quotes, belong to the author of the article Alastair Ford. Please read carefully all disclaimers on Proactive website. There is no investment advice in any of Kirill Klip's blog posts and on any of his social media feeds. Always consult the qualified financial adviser before any investment decision.

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.

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