Wednesday 16 January 2019

Why More Gold M&A Is Coming: GEM Royalty TNR Gold Presentation - Gold In Alaskan Elephant Country.



We will discuss with you details of the recent mega-mergers in the Gold mining sector between Barrick Gold and Randgold which was followed this week by $10B merger between Newmont Mining and Goldcorp in my next blog article. Today I would like to share with you a few main thoughts about the recent stage of the Gold market. 




Now the best exploration for Gold is on the stock exchanges: all mining companies are greatly undervalued and junior miners are priced for their bankruptcy and office furniture liquidation value.  Major M&A is signalling that Golden Cross, which Frank Holmes is brilliantly illustrating above, is for real and industry insiders are shopping when the value is still really depressed, but this situation will not stay for long anymore. "Stealth Gold Bull Market" - Rob McEwen was talking about has grown up and is going to break a lot of "China in the monetary shop". 




Newmont Mining CEO Gary Goldberg was talking today on Bloomberg about falling Gold production in the years to come. The industry needs new resources and new giant projects in the pipeline just to keep the decline in production from a total crash. We have reached Peak Gold, great projects are coming few and far between. 




Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the elephants? Maybe in the Alaskan Elephant Country.




LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.






Gold In Alaskan Elephant Country: TNR Gold Shotgun Gold Presentation December 2018.



"The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor. 
Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules." InvestorIntel.




Who will start consolidation around Barrick's and NovaGold's Donlin Gold project in Alaska?





Donlin Gold Mining District infrastructure.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.






Building The Green Energy Metals Royalty Company: Interview With Executive Chairman Of TNR Gold 

Kirill Klip.







TNR Gold's Shotgun Project: Mining M&A - NovaGold’s Laser-focused Strategy Of Unlocking The Value Of Donlin Gold In Alaska After Newmont Buys Out Share Of Galore Creek.




This is why I am calling TNR Gold's Shotgun Gold project location in Alaska "Gold in Alaskan Elephant Country":

“This transaction is a win-win for all parties,” said Thomas Kaplan, NovaGold’s chairman. “For NovaGold’s shareholders, it is the continuation of a laser-focused strategy of unlocking the value of its assets and transforming the company into a pure play on Donlin gold, which we believe is the most important gold development story in the industry.”





Now Nova Gold has more capital to advance Donlin Gold and Alaska is getting back into mining business with the new wave of M&A activity in mining. The driving force for the next wave of consolidation in mining will be the lack of available exploration capital for the mining juniors due to the down cycle in the Gold market and smaller and smaller returns on the invested capital with the exploration in the green fields. 





To put it simply: it is harder and harder to find the promising projects with the initial confirmed resource, blue sky exploration potential, and stable mining jurisdiction to capitalize on the major gold discovery. I believe, that TNR Gold's Shotgun project is well placed in this part of the cycle in order to attract the major strategic partner for its development.




InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.


"The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor. 
Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules."



Alaska is coming back in play as the best jurisdiction for the elephant style Gold deposits on the American soil. Barrick and Nova Gold are moving forward the giant Donlin Gold deposit and now the whole region play will bring the reevaluation for all players involved. 


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