The Last Great Buying Opportunity Is Here

Last week I wrote that gold had failed to break out and highlighted that although gold was up nearly 25% for the year, that most of the gains came earlier the year.

I also wrote;

“The trader in me says if it can’t break out, it will break down… briefly. The markets will tell… soon.”

The correction in gold and silver prices I’ve been writing about is finally here. Gold posted a loss of approximately 5% last week and settled near the $1,252 level.

Silver was down nearly 10% and settled at $17.38 an ounce.

Copper was down 2.1% while platinum and palladium lost 7% and 7.5% respectively.

Meanwhile in the oil sector, prices continue to rally and Thursday saw oil break through the $50 level.

I expect the pullback in metals prices will continue and provide an excellent buying opportunity for investors/speculators who are able to ride out the next few months of volatility.

Stick to the best names. Stick to companies that will be active and can deliver positive news during the downturn.

I’m being very aggressive during this downturn and believe this is the last great buying opportunity I’ve written about.

The consolidation is overdue, healthy, and necessary to provide the energy for the next leg up.

At Resource Stock Digest Premium I’m adding to positions and will also be buying into a few non-precious metals names.

The Week In Juniors

Pilot Gold Inc. (TSX: PLG)(OTC: PLGTF)

On October 6, 2016 Pilot Gold announced drill results from an additional seven reverse circulation drill holes in the Main Zone of the 100%-controlled Goldstrike Gold Project in southwestern Utah.

Highlights of the program include:

  • 0.90 grams per tonne gold (g/t Au) over 12.2 metres (m) in PGS099
  • 1.06 g/t Au over 10.7 m and 0.60 g/t over 6.1 m in PGS100
  • 0.51 g/t Au over 27.4 m in PGS101
  • 0.44 g/t Au over 6.1 m and 0.49 g/t Au over 18.3 m in PGS102
  • 0.60 g/t Au over 13.7 m in PGS103
  • 0.86 g/t Au over 67.1 m including 2.35 g/t Au over 15.2 m and 0.74 g/t over 10.7 m in PGS104
  • 0.44 g/t Au over 32.0 m and 0.43 g/t Au over 21.3 m in PGS105

Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend.

Like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-type systems located off the main Carlin and Cortez trends in largely underexplored parts of the Great Basin.

One day we will get results from the latest round of drilling at Kinsley Mountain.

Arizona Mining (TSX: AZ)(OTC: WLDVF)

Arizona Mining keeps hitting. On October 5, 2016 the company announced results of a further three (3) exploration drill holes from its current program targeting the expansion of the Taylor Zn-Pb-Ag sulfide deposit located on its 100%-owned Hermosa Project in Santa Cruz County, Arizona.

The numbers are impressive.

HDS-371 intersected thirteen (13) distinct mineralized horizons with a total cumulative mineralized thickness of 496 feet.

Several high-grade zones were intersected in the drill hole, including an 86.5-foot thick interval assaying 4.7% zinc, 6.4% lead, and 3.3 ounces per ton (“opt”) silver, which included a zone of 26 feet which assayed 11.3% zinc, 17.3% lead, and 8.5 opt silver.

A second interval of note in HDS-371 is a 70-foot thick zone which assayed 17.5% zinc, 14.3% lead, and 5.3 opt silver, which included two internal zones; one of which was a 18.5-foot thick zone grading 26.5% zinc, 25.1% lead, 0.8% copper, and 9.3 opt silver and the other a 20-foot thick interval grading 24.3% zinc, 18.8% lead, 1.1% copper, and 7.3 opt silver.

HDS-368 is an exploration step out hole located on the northern edge of the resource block.  The hole was drilled at a steep angle to extend the mineralization further to the northwest.  The drill hole encountered five (5) distinct mineralized intervals, including a 135-foot thick mineralized zone which contained a 25-foot interval assaying; 6.7% zinc, 8.3% lead, and 2.3 opt silver.  Also intersected in the drill hole was an eight-foot thick interval (within a broader 28-foot mineralized zone) that assayed 4.6% zinc, 12.6% lead, 0.8% copper, and 27.5 opt silver.

Arizona Mining CEO Jim Gowans commented:

“These drill results continue to grow and add confidence to the Taylor Deposit resource.  We have increased the number of core rigs on the property to 14 and hope to add a 15th as soon as the machine becomes available.  The increased rate of drilling will allow us to rapidly test the remaining prospective ground owned by the Company and make all the data available for future studies.”

The Taylor Deposit, a lead-zinc-silver carbonate replacement deposit, has a resource of 39.4 million tonnes in the Inferred Mineral Resource category grading 11% zinc equivalent. That resource is getting bigger with every release.

Tinka Resources (TSX-V: TK) (OTC: TKRFF)

On October 4, 2016 Tinka Resources announced it has completed initial metallurgical flotation tests of zinc sulphide samples from the Ayawilca project, Peru.

The test work proves the zinc sulphide mineralization from West Ayawilca is amenable to industry-standard flotation processing. Zinc recoveries of 98% were produced in first pass (rougher) flotation tests from two typical-grade composites.

A zinc concentrate grade of 52% Zn was achieved in second pass (cleaner) flotation. Indium recoveries were similar to the zinc. The tests were carried out by SGS Peru under the supervision of Transmin Consultants of Lima, Peru.

Key highlights:

  • First bench-scale metallurgical tests of zinc mineralization from the Ayawilca Inferred Resource area average 98.6% zinc recovery in rougher tests and 51.3% zinc concentrate grade in cleaner tests.
  • Cleaner test concentrates have produced market acceptable zinc grades.
  • Zinc concentrates were achieved using conventional sulphide processing techniques and materials.

Dr. Graham Carman, President and CEO, stated:

“Initial bench scale metallurgical tests of Ayawilca zinc mineralization have produced excellent first pass zinc recoveries and a market-ready concentrate, important steps towards de-risking the project. The tests were carried out on typical-grade zinc mineralization from West Ayawilca. Importantly, indium follows the zinc into the zinc concentrate, where we believe it will be payable.

We are very pleased with these metallurgical tests, as they allow us to commence our 2016-2017 resource expansion / drill program confident that Ayawilca is one of the most significant zinc exploration-development projects not only in Peru but internationally.”

The results are important and it’s great to see the company doing things the right way. It’s also great to see the market reward the company, as shares traded up over 15% on the news.

Coro Mining (TSX: COP) (OTC: CROJF)

Lastly, great numbers from Coro Mining. On October 4, 2016 the company announced the results of a further seven reverse circulation (RC) holes from the 39 hole, 8530m hole program completed at its Marimaca copper project, located 22km E of the port of Mejillones in the II Region of Chile.

The headline number was 330m @ 0.80%CuT, 236m @ 0.81%CuT & 188m @1.06%CuT.

Alan Stephens, President and CEO of Coro commented,

“We are delighted with this latest batch of results from Marimaca, which continue to exceed our initial expectations for the deposit, both in thickness and grade. So far, drilling has only defined the SW limit of the mineralization, corresponding to the structural footwall of the deposit at surface. We will shortly be completing a drone based magnetic survey which we anticipate will further aid our understanding of the deposit and an initial resource estimate is scheduled for completion before year end.”

Coro has the right to earn a 75% interest in the property.

The company’s assets include its 65% interest in SCM Berta, including the Berta and Salvadora deposits, the Marimaca drill stage project, the Planta Prat project, the Llancahue prospect, and a royalty on the San Jorge copper-gold project located in Argentina.

To your wealth,


Gerardo Del Real

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Outsider Club

Jimmy is a managing editor for Outsider Club and the Investment Director of the personal finance advisory The Crow's Nest. You may also know him as the architect behind the wildly popular finance and investing website Wealth Wire, where he's brought readers the stories behind the mainstream financial news each and every day. For more on Jimmy, check out his editor's page.