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Marco G.
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A veteran of the small cap wars, the Goombarh has survived both the glory and collapse of the internet boom and the 2008 bust. Now he is focused on oil, mining and commodity junior stocks. The world has evolved with the rising tide of demand from the emerging markets growth of their middle... More
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  • Mining for Mining Juniors!

    Mining for Mining Juniors!

    Brad Zigler had an interesting article with a provocative title “A Declining Gold Indicator” here.  The gist of the article was that the ratio of the Market Vectors Gold Miners ETF, otherwise known in investors circles as the “GDX” versus the newly minted Market Vectors Junior Gold Miners ETF, the “GDXJ” or GDX Junior, was declining.   In other words, the junior Gold miners were advancing more than their larger sized cousins.  The market’s risk appetite was growing for the junior and therefore riskier mining companies.

    As you may be aware, the Gold and Silver commodity prices are on the verge of breakout and the interest in seeking further information about junior miners is growing.  The breakout is coming soon, and it will be spectacular as fellow Seeking Alpha contributor “Hardrock” predicts in his posting “Silver Price Forecast with a Huge Tail”.

    To supply further information for Seeking Alpha readers that may be interested in learning more about junior mining investment opportunities, how about readers help out with entering information. So readers, how about entering some teaser information about your favorite small miner in the comments section of this article.  This is at least a start to obtain and share information about the small miners.

    Let us set up a few ground rules:

    1.  For your comment, one should supply information answering where the company operates in and how to invest in this mining junior. 

    For example:  “ Entrée Gold  is a Canadian listed miner with gold and copper projects in Mongolia, China, the United States and Canada.  The symbol is ETG on the TSX.”

    2.  You should include your one compelling reason as to WHY one should look at this stock. 

    For example:  “Entrée Gold has the backing of Rio Tinto (RTP) and Ivanhoe Mines (IVN).”

    3.  Supply a link for further information.

    For example:  Link to Entrée Gold company presentation is here:  http://www.entreegold.com/_resources/10-06-21-Entree-unanimated.pdf

    I will start the information sharing and dissemination with this information about my favorite Gold mining junior, Great Basin Gold (NYSEMKT:GBG).  GBG trades on the Amex and Toronto TSX.  GBG has a high bonanza grade (over 1 ounce gold/ton) test mine in Hollister, their underground mine in Nevada.  Also, their nameplate mine Burnstone in South Africa is poised to do their first Gold pour this month.  Burnstone is capable of 200+ gold ounces per year.  

    The one compelling reason for looking at GBG is that they will be turning the corner from a mine developer to an actual miner with profits within the next six months!

    Here is a link to my previous articles about Gold mining junior – Great Basin Gold (GBG) . 

     For other mining juniors see my previous article about mining Juniors being in the sweet spot here.

    I hope that you the reader may be able to obtain some new, actionable and profitable information by this small effort.  Good luck in your junior mining investments.

    Disclosure:  The author is long in GBG, and other junior mining equities.



    Disclosure: Long GBG and small mining equities

    Disclosure: Long GBG
    Sep 03 1:09 PM | Link | Comment!
  • Digging Up Mining Juniors Here!

    Digging Up Mining Juniors Here!

    Brad Zigler had an interesting article with a provocative title “A Declining Gold Indicator” here.  The gist of the article was that the ratio of the Market Vectors Gold Miners ETF, otherwise known in investors circles as the “GDX” versus the newly minted Market Vectors Junior Gold Miners ETF, the “GDXJ” or GDX Junior, was declining.   In other words, the junior Gold miners were advancing more than their larger sized cousins.  The market’s risk appetite was growing for the junior and therefore riskier mining companies.

    As you may be aware, the Gold and Silver commodity prices are on the verge of breakout and the interest in seeking further information about junior miners is growing.  The breakout is coming soon, and it will be spectacular as fellow Seeking Alpha contributor “Hardrock” predicts in his posting “Silver Price Forecast with a Huge Tail”.

    It then occurred to me, that the environment at Seeking Alpha, is geared to the larger and higher capitalized companies.  There really was not a focal point for readers to dig up information, should they be interested in learning more about junior mining investment opportunities.

    So as a small gesture, how about having the readers respond with some teaser information about their favorite small miner in the comments section of this article.  This is at least a start to obtain and share information about the small miners.

    Let us set up a few ground rules:

    1.  For your comment, one should supply information answering where the company operates in and how to invest in this mining junior. 

    For example:  “ Entrée Gold  is a Canadian listed miner with gold and copper projects in Mongolia, China, the United States and Canada.  The symbol is ETG on the TSX.”

    2.  You should include your one compelling reason as to WHY one should look at this stock. 

    For example:  “Entrée Gold has the backing of Rio Tinto (RTP) and Ivanhoe Mines (IVN).”

    3.  Supply a link for further information.

    For example:  Link to Entrée Gold company presentation is here:  http://www.entreegold.com/_resources/10-06-21-Entree-unanimated.pdf

    I will start the information sharing and dissemination with this link to my previous articles about Gold mining junior – Great Basin Gold (NYSEMKT:GBG) and my other article about mining Juniors being in the sweet spot here.

    I hope that you the reader may be able to obtain some new, actionable and profitable information by this small effort.  Good luck in your junior mining investments.

    Disclosure:  The author is long in GBG, and other junior mining equities.



    Disclosure: Long GBG and small mining equities
    Sep 02 5:03 PM | Link | Comment!
  • A Patriotic Silver Junior

    A Patriotic Silver Junior

    What a patriotic ticker symbol this Silver Miner has, “USA” on the TSX Venture Exchange.  The American symbol is USSIF on the over the counter exchange.  From their website this is how they describes themselves:

    US Silver Corp (TSXV "USA", OTCQX -"USSIF" and DB Frankfurt "QE2") owns/operates the Galena Mine in the historic Silver Valley of North Idaho. The Galena Mine and Mill, along with the Coeur Mine and Mill and the Caladay Project were acquired from Coeur d'Alene Mines Corp (NYSE-CDE) on June 1, 2006.

    For those of you that were unawares, the shiny Silver metal has just broken out of a consolidation wedge pattern as indicated by fellow Seeking Alpha Jeb Handwerger here.  This has resulted in good percentage moves by Silver majors such as Silver Wheaton (NYSE:SLW), Hecla Mining (NYSE:HL) and others.

    One shining example of junior silver equities possibilites is the stock under discussion here, US Silver Corporation.  US Silver has 3 Silver operations, the Galena Mine, the Coeur Mine and the Caladay project that are all connected through underground tunnels.  Their operation sits in old Silver Valley, Idaho, surrounded by mountains and other Silver mining operations such as the old Sunshine Mine, just bought by private interests (supported by billionaire Kaplan) and the Crescent mine owned by the United Mining Group (just became public).  The surging Silver price has just caused USA to breakout as indicated in the chart following:

     Figure 1:  USA Breakout!

    The USA stock is an interesting story, as there are these numerous smaller silver mining operations in this Silver Valley, Idaho district that are just begging for a consolidation and revamping for higher production, in this era of rising Silver prices.

    To add to the story, there was the previous battle for the bankrupt Sunshine mine, and now the rumors abound for multiple suitors looking over the area.  Fellow Seeking Alpha contributor, HardRock has a posting here about the recent indications of merger and acquisition activities.

    USA has just posted their first half operating results:

    August 19th, 2010 - Toronto, Ontario - U.S. Silver Corporation (TSX-V: USA, US OTCQX: USSIF, Frankfurt: QE2) ("US Silver" or "the Company") is pleased to announce second quarter, 2010 financial results in U.S. dollars.

    ·         Cash Flow from Operating Activities $4.9 million year-to-date, $2.5 million in the quarter, with cash on hand remaining constant at $2.3 million

    ·         Revenue of $29.5 million year to date, $14.5 in the quarter

    ·         Earnings of $0.6 million year to date, $0.2 in the quarter

    ·         Silver production of 563,291 ounces in the quarter and 1,198,452 ounces year-to-date

    "We are generally pleased with the continued good performance across all areas of our operations." stated Tom Parker, President and CEO.

    The company reports that they intent to increase production in the second half of this year:

    Tom Parker, President and CEO of U.S. Silver stated, "In the second half of 2010, thanks to increased development work, we expect to be mining more stopes with slightly higher head grades. We will continue main level track development as well as driving raises to develop additional mining stopes. Production for the remainder of the year is anticipated to average approximately 250,000 ounces per month. Total targeted production in 2010 is 2.7 million ounces of silver, 5.9 million pounds of lead and 1.5 million pounds of copper. Cash costs are expected to decline with this increased production in the second half of 2010."

    In summary, you have a producing Silver company, in TSX:USA, that intends to increase production and with the distinct possibilities of being a takeover target, and also together with a rising Silver commodity price.  That is three for three.  What a way to go for the USA.



    Disclosure: Long USSIF (NYSE:USA)

    Disclosure: Long USSIF
    Aug 29 4:08 PM | Link | Comment!
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