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In 2011 Peter Epstein, CFA, MBA left a $3 billion hedge fund where he was a senior analyst to help increase awareness of a number of small cap companies in which he's invested in. Please see: On TWITTER: @peterepstein2 Mr. Epstein formed MockingJay, Inc., a consultancy for... More
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  • Interview Of Shawn Wallace, President & CEO Of Auryn Resources Inc.
    Interview of Shawn Wallace, President & CEO of Auryn Resources Peter Epstein

    [Note: over the past month the S&P500 is down 5.23%, the DJIA down 6.31% and Gold (KITCO Charts) UP 5.23%] (stock futures are down 4% Monday morning)

    The following interview of Shawn Wallace, President and CEO of Auryn Resources Inc. was conducted by Peter Epstein, CFA, MBA in the week ending August 21st. From the Company's website, quote, "Auryn Resources is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. The Company's management team is highly experienced with an impressive track record of success in the exploration, discovery, development and financing of mining assets." This is true. However, upon reading this interview, readers should learn that there's a lot going on at Auryn.

    Following the recent sale of Cayden Resources, several key members moved to the next big thing, Nunavut Territory in Canada. There's a lot of activity in Nunavut, [please refer to page 8] of the Company's corporate presentation. The next paragraph recaps page 8, but there's a map on that page delineating additional exploration, development and production in Nunavut.

    Agnico's Meadowbank 2015, an estimated 400,000 ounces of gold at $656/oz cash cost. Agnico's Amaruq $20 million in 2015 exploration work with 50,000 m of drilling and an inferred resource of 1.5 million ounces @ 7 g/t Au. Agnico's Meliadine P & P resource of 3.3 million ounces @ 7.44 g/t Au, plus a measured & indicated resource of 3.3 million ounces @ 5 g/t Au and an inferred resource of 3.5 million ounces @ 7.6 g/t Au. TMAC Resources' Hope Bay completed a $135 million IPO for a total of $182 million raised since 2013, TMAC has a measured & indicated resource of 4.4 million ounces @ 9.6 g/t Au. Sabina Gold & Silver's Black River has a measured & indicated resource of 5.2 million ounces @ 5.81 g/t Au and a recently released a positive feasibility study.

    Mr. Wallace, thank you again for taking the time to answer my questions. Please describe Auryn Resources and its key project.

    Auryn Resources Inc. (TSX-V:AUG) (OTCQX: GGTCF) is a well-financed and technically driven gold exploration company boasting an experienced management, Board and technical team with a proven track record of success. Auryn is currently advancing the Committee Bay Gold Project "CBGP." The mineral project, located in Nunavut Territory, Canada, includes 66,160 hectares (163,485 acres) situated along the Committee Bay Greenstone Belt, "CBGB."

    What attracted us most to CBGP are its high-grade gold endowment, existing exploration infrastructure, mining friendly jurisdiction, major mine developments in the region and district scale discovery opportunities. Our property extends more than 300 kms northeast to the shores of Committee Bay, and is roughly 180 kms NE of Agnico Eagle's "Agnico" Meadowbank mine. Importantly, we are in the process of acquiring North Country Gold Corp. (TSX-V:NCG), holder of a 49% stake in the CBGP project. This acquisition would consolidate 100% of the property for Auryn.

    The project benefits from existing infrastructure including, "Bulk storage fuel facilities, 5 high efficiency drill rigs, a heated drill water system, heavy equipment on site, a 100 person camp at our main Three Bluffs deposit area and two satellite camps SW of the belt."See corporate presentation. The CBGB comprises one of a number of attributes that are thought to be equivalent to that of other significant gold bearing deposits such as Agnico's Meadowbank and Meliadine mines. High-grade gold occurrences are found throughout the 300 kms strike length, including the Three Bluffs deposit that contains a NI 43-101 compliant Indicated & Inferred resource of 1.2 million ounces of gold. The Three Bluffs deposit remains open for expansion both along strike and at depth, giving us tremendous exploration upside.

    Please Continue Reading...

    Video Interview of Wallace by Jay Taylor

    Aug 24 9:20 AM | Link | Comment!
  • 170 Days Since Ucore Rare Metals' Blockbuster News, Yet Stock Price Lower

    170 Days Since Ucore Rare Metals' Blockbuster News, Yet Stock Price Lower


    By Peter Epstein, CBA, MBA

    Hard to believe, 170 days since potentially game-changing announcements by Ucore Rare Metals (OTCQX:UURAF) (TSXV:UCU), yet the stock is lower than it was then. On March 3rd, Ucore's stock closed at C$ 0.33, the day of its 2nd blockbuster announcement. On August 18th, the stock closed at C$ 0.305, (down 7.5%). Both early March press releases centered on the Company's use of Molecular Recognition Technology, "MRT." The March 2nd news concluded that Ucore, "…successfully separated each of the rare earth elements ("REE's") at high purity." How high? 7 of the 14 reported results came in at 99.9% with the single lowest at 99.0%.

    Both Samarium and Gadolinium were separated in April at 99.2% purities. On March 3rd, Ucore reported that it entered into an agreement with IBC to obtain "exclusive rights to IBC's SuperLig® MRT for rare earth separation, recycling and tailings processing applications." This represents the culmination of decades of hard work, spearheaded by the Izatts and privately-held IBC Advanced Technologies, "IBC." Old news, right? 170 days old? Yes and No. Since then, a number of skeptics have been silenced and, "believers" born. Mark MacDonald, VP Business development has this to say,


    "The HREE market will require the development of new resources simply because of the restricted global supply of magnet input materials such as Dysprosium, Terbium and Neodymium. Demand for HREE is expected to have a 8%-11% compound annual growth rate (OTCPK:CAGR) until 2020. We expect that Ucore's Bokan‐Dotson Zone resource could be the first producing HREE deposit in North America. With a 40% skew toward heavy rare earths, the Bokan‐Dotson Zone deposit has one of the most valuable ore baskets of any deposit in the world. However, Bokan's development will only play a small role in satisfying the impending global supply shortage of HREE."

    Not all highly promising news is 170 days old! Please consider these condensed (by me) press releases:

    Continue Reading:

    Aug 18 7:30 PM | Link | Comment!
  • Orinoco Gold, Low-Cost, Fully-Funded, Production Within 6 Months, Very CHEAP


    Orinoco Gold, Low-Cost, Fully-Funded, Production Within 6 Months, very CHEAP

    Peter Epstein, CFA, MBA

    Australian-listed Orinoco Gold (Ticker: ASX:OGR) (NYSE:ASX) is endowed with expansive ​central Brazilian gold and silver assets​, most notably the Company's 70% owned Cascavel Gold Project, within the Faina Greenstone Belt. Orinoco could have one of the cheapest risk-adjusted valuations of any gold company​ ​on the planet. ​Of course, many emerging gold producers presumably ​make stake to the same ​claim. What if I told you that Orinoco Gold has one of the strongest natural resource sector management teams and Board of any company with a market cap under US$ ​50 million (my opinion only, I've spoken with several of them). A Company that's expected to be​ commence production ​in ​5 - ​6 months, a​ fully permitted &​ fully funded high-grade gold project​ with all-in sustainable costs estimated at roughly US$ 700/oz. CY 2016 gold production of ~​20,000 ounces, (~14,000 ounces net to Orinoco) and a major prospective silver deposit beneath the gold.

    Orinoco is also making robust progress at its nearby 100% owned Sertão Gold Project. ​Orinoco intends to largely self-fund the Sertão Project and may never need to access the equity markets again, (my opinion only) except for capital for accretive, tuck-in acquisitions. ​Orinoco acquired t​he Sertão m​inning ​l​eases, including​ the past producing ​Sertão Gold ​Mine, from Troy Resources in February, 2014. The leases are located 28 km by road from Orinoco's high-grade Cascavel Gold ​Project. The Sertão Gold prospect​ is located on an existing mining lease, and boasts historical production of 256,000 ounces of ​gold ​at a remarkable ​grade of 25g/t from a shallow open pit. Sertão offers meaningful potential for additional high-grade, coarse gold, discoveries.

    ​Longer-term there's the Tinteiro prospect, a poly-metallic discovery located in the central portion of the Faina Greenstone Belt, just 4 km south-west of Cascavel. Sample silver assays at Tinterio include:

    17.5 m @ 1,263 g/t Ag

    25.0 m @ 39.2g/t Ag: including 3m @ 97.2g/t Ag from 114m

    4.4 m @ 760.3g/t Ag: including 1.05m @ 2,510g/t Ag from 157m

    4.7m @ 58.6g/t Ag: including 0.85m @ 236g/t Ag from 162m

    I​n October, ​2014, Orinoco materially increased the size of its​ Cascavel Project after securing a 70% interest in the Garimpo prospect​, a nearby tenement with known gold mineralization. The tenement is situated ​t​o the north of Cascavel and​ Tinteiro's polymetallic prospects. Garimpo​ contains promising north-west extensions of both Cascavel &​ Tinteiro, extending the known Cascavel structure by 60% to approximately 4km of strike.

    ​I truly believe that Orinoco's three highly promising deposits , Sereao, Tinterio and Garimpo could be worth as much as the Company's current market cap o​f US$ 17 million.

    Continue Reading...


    Aug 17 8:45 PM | Link | Comment!
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