Outsider Club

Special Report

Top-Rated Emerging Silver and Gold Miners for 2014

Eight silver and gold juniors set to soar next year — and beyond...

It's easy for investors to lose sight of the big picture when an investment goes sour.

After one of the most explosive gold bull markets in history peaked in 2011, precious metals were brutally slammed — and have been in a lull for some time now.

No need for sugar-coating it: gold had pathetic results in 2013, which has been devastating for many gold stocks.

Consequently, many amateur gold and silver buyers are still on the sidelines waiting for momentum to pick up again.

Meanwhile, wise investors are holding onto their loot, knowing we're on the verge of the biggest move in the history of the precious metals market...

That's why I'm here to tell you how you can still make easy money from gold and silver via junior miners. Junior miners, being on the small side, often offer greater potential for growth in lieu of the risk.

I've compiled a list of the most plausibly profitable mining companies based on quality, resources, and lucrative projects underway. Continue reading to discover why investors are so excited about these opportunities — projects and companies most mainstream investors haven't tuned into yet.

You won't hear much about these opportunities in mainstream financial media. And we know all too well that it's hard not to be distracted by the large-cap companies making headlines in the Wall Street Journal.

Remember, we're in unchartered waters right now: a government shutdown, an off-the-charts national debt record, ObamaCare taxes on the horizon, record lows for citizens in the workforce, record highs for welfare and disability recipients...

It should come as no surprise that we're simultaneously seeing some absurd abuse of regulations and markets by mega-banks.

The banksters and bigwigs have manipulated the entire system so they can pull in massive profits come hell or high water, while the rest of America slowly slips into another recession.

If you don't diversify your portfolio now, the plutocrats controlling the market are going to leave you high and dry.

Bear Market Plateau: What gold and silver mining investors should do next

Money managers are keenly aware of the dismal 40% drop in benchmark indexes for gold and silver mining shares...

But they've assured seasoned investors this is NO reason to shy away, considering market conditions. On the contrary, they say the miners are poised for a strong rebound in the next two years.

As the dollar continues to lose its position as the world's currency and inflation diminishes its purchasing power, investors are already beginning to move away from large-cap companies into gold and silver again — starting small with the juniors as a stress test to see if the precious metals' bull market really resurfaces as dramatically as anticipated.

As with most investments,  you'll have to do your homework to make sure you pick the right stocks.

Experts are urging investors to pick up some of these companies up in the next three to six months...

Gold Canyon (GCU)

Company

Gold Canyon

GCC

Exchange

TSX Venture

Symbol

GCU

Current Share Price

$0.37

Market Cap

$50.22 million

Avg Vol (3m)

193,151

Shares Outstanding

148.5 million

Major Project Underway

Springpole Gold Project

Website

http://www.goldcanyon.ca/s/Home.asp

Gold Canyon Resources Inc. is engaged in the acquisition, exploration, and development of properties containing or thought to contain valuable minerals.

The company has six wholly owned subsidiaries: Gold Canyon Resources USA, Inc. (GCU USA), Gold Canyon Kratz Spring, LLC. (Kratz Spring, LLC), Spring Stone Limited (SSL), Spring Stone Mining Corporation (SSM), Spring Stone Exploration, Inc. (SSE), and Springpole Mining USA (SPM).

It is exploring four projects: Springpole Gold Project, Cordero Gallium Project, Horseshoe Island Gold Project, and Malawi Rare Earth Element (REE) Project. 

Gold Canyon recently received a positive Preliminary Economic Assessment (PEA) prepared by SRK Consulting (Canada), Inc. of Vancouver, British Columbia, for its 100% controlled Springpole Gold Project in northwest Ontario, Canada.

The PEA supports a conventional open-pit mining and milling operation. At a 5% discount rate and a US$1,300/oz. gold price, the project's pre-tax net present value (NPV) is estimated at US$579 million with a pre-tax internal rate of return (IRR) of 25%, and a non-discounted payback of 1.7 years, other highlights include:

  • Initial capital cost of US$438 million
  • Payback period of 1.7 years (non-discounted)
  • Pre-tax NPV of US$579 million (US$1.03 billion at a US$1,600/oz. gold price)
  • IRR (pre-tax) of 25.4% (36.9% at a US$1,600/oz. gold price)
  • During full production, estimated 217,000 ozs and 1,200,000 ozs average annual gold and silver production, respectively
  • Estimated cash cost of US$636/equivalent ounce gold (eq.oz. Au) and all-in cost of US$860/eq.oz. Au
  • Strip ratio of 1.7

CEO and Director of Gold Canyon, Troy J. Fierro, described this outcome as an "important milestone for the company."

The construction phase of their latest project in northwestern Ontario, Canada, is scheduled for two years at an initial capital expense of US$438 million.

  • Total silver produced: 11,658,000 ounces
  • Average annual silver production (at full production): 1,200,000

The following life-of-mine operating costs (per tonne mineralized material) are expected for the project: 

Mining: $7.1/tonne
Processing: $10.5/tonne
Tailings and Water: $0.2/tonne
General Administrative: $2.3/tonne

Total: $20.1/tonne
 

 ATAC Resources (ATC)

Company

ATAC Resources

AT

Exchange

TSX Venture

Symbol

ATC

Current Share Price

$0.87

Market Cap

$98.44 million

Avg Vol (3m)

129,667

Shares Issued/ Outstanding

113,153,136

Major Project Underway

Rackla Gold Project

Website

http://www.atacresources.com/s/home.asp

The Rackla Gold Project is located 55 kilometers northeast of Keno City in Central Yukon and is 100% owned by ATAC Resources, Ltd. with no underlying royalties.

The project is over 1,700 sq. km. and is situated between the regional-scale Dawson thrust and Kathleen Lakes fault, within a Paleozoic carbonate inlier of the Selwyn Basin tectonic province. Replacement-style, gold-bearing sulphide and oxide mineralization occurs in Bouvette Formation shallow water limestone, dolomite, and calcareous siltstone of Cambrian to Devonian age.

The Rackla Gold Project was a grassroots discovery made by ATAC in 2006; and since then, the company has acquired over 160 km. of favorable structure and stratigraphy through staking.

Exploration was initially focused along a 15 km. ridge system called the Rau Trend, where more than a dozen gold and/or silver exploration targets have been identified. Detailed work has been centered on the Tiger Zone, which has received 132 diamond drill holes totaling 25,900 meters between 2008 and 2010.

The primary focus of exploration in late 2010 moved 100 km. to the east along the continental margin corridor, where five areas of significant Carlin-Type gold mineralization have subsequently been outlined by surface sampling and 65,598 m. of diamond drilling along a 50 km.-long segment of the Nadaleen Trend.

 Fortuna Silver Mines (FVI)

Company

Fortuna Silver Mines Inc.

FSM

Exchange

TSX Venture

Symbol

FVI

Current Share Price

$4.34

Market Cap

$544.25 million

Avg Vol (3m)

239,61

Shares Outstanding

125,305,166

Major Project Underway

San Jose: increased silver reserves by 22% and silver inferred resources by 39%

Website

http://www.fortunasilver.com/s/Home.asp

Fortuna Silver Mines is positioned for sustainable growth with two 100%-owned operating silver mines and extensive property holdings in Peru and Mexico.

Formed in 2005, the company has established a reputation as an efficient mine builder and operator.

Today, Fortuna is one of Latin America's fastest-growing silver producers, with production forecast to grow from 2.5 million ounces of silver and 7,000 ounces of gold, plus base metals, in 2011 to approximately 5 million oz. of silver and 26,000 oz. of gold, plus base metals, by 2014.

Fortuna's land package of 95,600 hectares offers attractive opportunities for driving organic growth. A 51,000-meter drill program is underway to examine multiple silver and gold targets at the San Jose and Caylloma mines.

Silver Standard (SSO/SSRI)

Company

Silver Standard Resources Inc.

SS

Exchange

TSE, NASDAQ

Symbol

SSO, SSRI

Current Share Price

$6.62

Market Cap

$534.59 million

Avg Vol (3m)

281,386

Shares Outstanding

80.75 million

Major Project Underway

Pirquitas Mine: Jujuy Province, Argentina

Website

http://www.silverstandard.com/

Silver Standard has the largest in-ground silver resource of any publicly traded primary silver company, with a pipeline of 15 projects ranging from grassroots exploration to production in Argentina, Peru, Mexico, Canada, Chile, and the United States.

 

Advanced Exploration

Development

Production

  • San Agustin, Mexico

  • Berenguela, Peru

  • Challacollo, Chile

  • San Luis, Peru

  • Pirarrilla, Mexico

  • Diablillos, Argentina

  • Pirquitas, Argentina

SSO is leveraging "project pipeline" to generate value through exploration and development, as well as accretive acquisition and divestment opportunities. The Pirquitas Mine in Argentina achieved commercial production in December 2009, and at full production ranks among the largest open pit primary silver mines in the world.

Additionally, the company is advancing two 100%-owned development projects: the high-grade, gold-silver San Luis Project in Peru and the Pitarrilla silver project in Mexico. Work at the exploration projects continues to expand the company's in-ground silver and gold resources.

Silver Standard's shares are listed on the Toronto Stock Exchange under the symbol SSO and on the Nasdaq Global Market under the symbol SSRI.

Soltoro (SOL)

Company

Soltoro Ltd.

solt

Exchange

TSX Venture

Symbol

SOL

Current Share Price

$0.18

Market Cap

$10.76 million

Avg Vol (3m)

41,491

Shares Outstanding

59,783,037

Fully Diluted

65,183,037

Website

http://www.soltoro.com/

(SOL:TSX-V) is an exploration company active in Mexico focused on adding value through discovery in already known and popular historic mining districts.

Soltoro has acquired, mainly through staking, seven significant district scale land positions in Jalisco State, Mexico. Three of these are being explored by Soltoro partners while they focus on their El Rayo flagship property.

Soltoro's main focus is on defining further silver resources at its 100% owned El Rayo primary silver project. In December of 2011, Soltoro released a National Instrument (NI) 43-101 compliant resource estimate detailing a measured and indicated 77.4 million ounces in pit silver resource.

Almaden (AAU)

Company

Almaden Minerals Ltd.

Alma

Exchange

NYSE MKT/ TSX

Symbol

AAU/AMM

Current Share Price

$1.39

Market Cap

89.65 million

Avg Vol (3m)

122,037

Shares Outstanding

64.49 million

Major Project Underway

Ixtaca Gold-Siler Zone, Mexico

Website

http://www.almadenminerals.com/

Almaden already boasts discovery rights to a 3.6 million ounce gold/silver discovery in Mexico, and growth expectations remain strong.

In addition to this exciting find, the company has 40 other properties dispersed throughout North America.

Here's an excerpt from a recent news release:

Almaden Minerals Ltd. ("Almaden" or "the Company") (AMM.TO) (NYSE MKT:AAU) is pleased to announce the results from Almaden's ongoing 2013 Ixtaca Zone drill program at the Company's 100% owned Tuligtic project, Mexico. Almaden has commenced an infill drilling program with three of the four rigs currently drilling on the project. The infill program has been designed to upgrade resources currently in the inferred category to the higher confidence measured and indicated categories. At the same time one drill rig is focused on step out drilling to expand the resource. The holes announced today show the continuity of high-grade gold silver veining in the east-west Northern zone defined with previous drilling. 

Rainy River (RR)

Company

Rainy River Resources Ltd.

RR

Exchange

TSX Venture

Symbol

RR

Current Share Price

$3.42

Market Cap

$343.35 million

Avg Vol (3m)

185,373

Shares Outstanding

Basic: 100 million

FD Shares: 109.8 million

Major Project Underway

Rainy River Gold Project: Ontario, near the Manitoba and U.S.A borders

Website

http://www.rainyriverresources.com/

The company's key asset is its large, 100%-owned advanced exploration stage Rainy River gold project, hosting a NI 43-101 compliant gold resource of 1.2 Moz. Measured, 5.0 Moz. indicated and 2.3 Moz. inferred.

April 2013 Feasibility Study envisions average annual production of 326,000 of gold and 494,000 ounces of silver over the first 10 years of a combined open pit and underground mining operation. Cash costs average US$486 per ounce in this period, with mill head grades averaging 1.46 g/t.

The project benefits from excellent exploration potential and local infrastructure.

Roxgold (ROG) 

Company

Roxgold Inc.

Rox

Exchange

TSX Venture

Symbol

ROG

Current Share Price

$0.60

Market Cap

$101.6 million

Avg Vol (3m)

281,857

Shares Issued and Outstanding

170,648,946

 

Major Project Underway

Yaramoko: Province of Balé

Website

http://www.roxgold.com/s/Home.asp

Roxgold Inc. (ROG. TSX-V) is a gold exploration company currently investigating three exploration permits in mineral-rich Burkina Faso, West Africa.

Roxgold has 100% interests in the Yaramoko and Solna gold properties, with a 90% interest in Bissa West.

At present, Roxgold is advancing a significant high-grade gold discovery, the 55 Zone, at its flagship property, Yaramoko. The recently announced updated mineral resource estimate at the 55 Zone comprises 1,343,000 tonnes grading 15.7gpt for 679,000 contained ounces of gold in the Indicated category, and 751,000 tonnes grading 8.9gpt for 216,000 ounces in the Inferred category, with a 3.0gpt cut-off.

A recent news release indicated optimism regarding the Roxgold's transformation from an explorer- to a development-focused company. Here's what John Dorward, President and CEO, had to say about this transition:

The conceptual economics outlined in the PEA, particularly for the first five years, are encouraging. The start-up capital costs estimated in the PEA would be manageable for a company of our size, which supports our belief that Yaramoko has potential to continue towards development. We feel that the first five years provide a strong start to this project, and with the deposit still open below, the 55 Zone has the potential to increase its existing resources and improve the project economics through drilling from underground...

Roxgold will now be focusing on our upcoming Feasibility Study ("FS"), which will expand upon the PEA and examine areas where there are opportunities for optimization. Additionally, we continue to pursue a targeted exploration program on areas such as Bagassi South, where we recently saw very encouraging drill results, as we search for the next resource on the Yaramoko Permit.

$148 Silver, $4,300 Gold?

It's not as far-fetched as it sounds.

We know we're still in a gold and silver bear market, but the amount of bullion currently held in exchange-traded funds (EFTs) remains high. Bullion truly has reasserted itself as a legitimate asset class.

JPMorgan holds 25% of the silver short market. And records indicate that paper positions outnumber the actual amount of physical silver traded by more than 140 times.

It's not hard, then, to understand why silver prices have headed lower, despite record physical demand...

Speaking to King World News, 58-year market veteran Ron Rosen said:

We are on the verge of the biggest move in the history of the precious metals market, and it's not far away from beginning. It's going to be a monster move...

What I don't understand is why everybody doesn't see it. There are so many analysts out there and if they just knew how to look at a monthly chart, and put it in a logarithmic form, they would see that gold and silver are going to explode.

This explosion higher in the price of gold and silver will just be Mother Nature at work, and there is nothing on the face of this Earth that can stop it — no individual, no central bank, no country, and no collection of countries.

And the timing?

We are looking at a massive move in front of us that will top sometime in 2014. At that point there will be a correction. Then, a massive blowoff will take us probably into early 2016. People who have been tortured by this long corrective phase, they will be thrilled if they have the ability to hang on. They just need patience here.

I expect the gold price to hit $4,300 in early 2016, but the really fascinating thing here is the silver chart because there have been three peaks. The first peak increased two times from the previous low. The low was $4.01 and silver went over $8 in that move. The second peak was $21.44. So silver increased four times the previous low, which was $5.45. The third peak was $49.82, and that was six times the previous low, which was $8.40.

You've got an old guy like me who has been at this business for almost six decades, and he sees 2, 4, 6. There's only one number that comes up next, 8. We then multiply 8 times the low of $18.17, and we have a silver price of over $148 sometime in early 2016. It's as clear to me as the sun rising and setting.

Of course, as go gold and silver prices, so go the miners...

Where should investors look for evidence backing this notion?

Real interest rates and the performance of the dollar will be key drivers of gold prices in 2014. And it will be important to pay attention to how China sovereign entities respond. They've said their primary goal is to diversify out of currencies and into bullion.

A great transfer of wealth is coming, and it's already begun in Asia...

Not only will the values of gold and silver increase substantially in the future, but they will also be an excellent investment, due to the upcoming global energy constraints.

Investors looking to leverage rising gold and silver prices should not only own physical bullion, but look to junior miners for serious growth potential. These are the kinds of "cigar butt" opportunities Warren Buffett talks about.

Companies like Fortuna (FVI) and Silver Standard (SS0) will play a pivotal role in this emerging opportunity, as they dominate silver production in Latin America (an exploding emerging market) and rank among the largest open pit primary silver mines in the world.

And others like Soltoro (SOL), Gold Canyon (GCU), and ATAC Resources (ATC) are really getting their feet wet with some major grassroots discoveries like the Rackla Gold Project ...

With stock shares still under $1, any investor can take advantage of their current and pending acquisitions and finds.

While other asset classes continue to disintegrate, we expect share prices for these emerging junior miners to explode — which makes right now a prime time to buy... before the next historic ascent begins. 










Outsider Club, Copyright © 2014, Angel Publishing LLC & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 21202. For Customer Service, please call (877) 303-4529. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.