Conference Notes: What the Pros Are Excited About

Written by Gerardo Del Real
Posted October 30, 2017 at 4:31PM

I just returned from the New Orleans Investment Conference. As usual, the conference was very well run and insightful.

It was also a great opportunity to meet with subscribers and exchange ideas with some of the top minds in the business.

Here are some takeaways and standouts from this year’s conference.

Blockchain, blockchain, blockchain. It seemed like everywhere I turned everyone had an opinion or a question about cryptocurrencies.

So much so that veterans in the gold and silver space were clearly frustrated by the rangebound trading and failure of gold to breakout.

That’s a good sign. When the veterans in the space start throwing in the towel on whether gold can regain its luster it means we’re getting close to the real breakout.

I advise everyone to use this tax-loss selling season as an opportunity to initiate or add to existing positions in the better names.

Which are the better names? Here’s three.

Let’s start with Midas Gold (TSX-V: MAX). IR Chief Liz Monger and CEO Stephen Quin were busy going over the merits of the robust Stibnite gold project in Idaho.

The message was well received both at the booth and during the early-morning sunrise session that Mr. Quin presented at.

noic midas booth

In my opinion Midas’ Stibnite gold project is the best unmined project in North America and the stock presents one of the best value propositions in the junior space.

The project has size — over 6 million ounces — grade, an important and strategic antimony credit that may help the permitting process, and world-class exploration potential.

The majors are finally realizing they need to ramp up efforts to replace their depleted reserves. They’re also finally realizing that there aren’t many projects with the ounces and upside that projects like Stibnite possess.

That point was made clear in the recent announcement that Newcastle Gold (TSX: NCA) had merged with Anfield Gold and Trek Mining. The deal will merge the three companies’ assets with the goal of creating a near-term gold producer with copper and gold exploration upside called Equinox Gold.

Mr. Quin’s phone is ringing and majors are courting. As a shareholder, I personally hope that the project is not bought out and goes into production under Stephen’s guidance.

He’s done it before and with permitting underway could be in a position to build Idaho’s next major gold mine during a raging gold bull market.

The project has a market cap just shy of C$130 million — C$255 million fully-diluted — which is laughable considering the ounces already outlined and the exploration potential.

stibnite project ounces

It’s interesting to see Almaden Minerals (TSX-V: AMM) — another takeout target with excellent exploration upside — on the slide.

Midas should be on everyone’s radar and although Almaden wasn’t at this year’s conference, it should be on your list as well.

One last standout is Millrock Resources (TSX-V: MRO) (OTC: MLRKF). Millrock is a premier prospect generator with projects in Mexico, Alaska, and British Columbia.

Millrock received several mentions from panelists, including one from Outsider Club founder Nick Hodge.

The company has been hit hard recently, hitting new 52-week lows despite multiple near-term catalysts on the horizon.

It will soon be reporting assays from a recently completed drill program it carried out on behalf of PolarX. Drilling on the copper-gold Stellar project was operated by Millrock, which has an equity stake in PolarX.

With copper in a bull market and the likelihood of good numbers from the drill program (one rig was verifying historic numbers which were good), these 52-week lows won't last.

The company will also be initiating drilling at its Sonoran gold project, a joint venture with Centerra Gold. The La Navidad project has also seen historic drilling, and is very prospective for a bulk tonnage, near-surface oxide gold target.

The drilling there will be operated by Millrock and again, with historic drilling as a guide, the initial results provide a solid second catalyst to follow-up assays from the drilling at Stellar.

Lastly, Outsider Club founder Nick Hodge gave a very well-received and timely presentation called "Bizzaro World" which was inspired by one of my favorite articles with the same title.

The presentation went over what’s real and what’s fake. Spoiler alert: Kardashian butts are fake.

On a serious note, Nick outlined mega-trends that are real. You can see the list in the pic below.

noic megatrends slide

Bottom line is majors need gold, the electrification of everything is real, and there is a real need for clean baseload electricity.

My translation? We are in a copper, lithium, and zinc bull market. Copper stands out in particular as it just hit a three-year high, and my Junior Mining Monthly readers just received an in-depth research report on one of the best plays in the sector.

A raging gold bull market is coming (but one last shaking of the tree must happen) and the nuclear bull is on its way.

Get ready for a very interesting 2018.

To your wealth,

gerardo-sig

Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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