1911 Gold (AUMB, TSX-V)
36.5 cents | Market Cap $25 million
With $200+ million worth of mining infrastructure (conservative estimate of replacement cost), speed to commercial production (years of time savings), a 90 km greenstone belt ripe with discovery potential, plus a 1 million ounce resource, pound-for-pound AUMB is the undisputed featherweight champion of Gold stocks.
I’ll do the Pepsi challenge against anyone on that claim.
Here’s the latest:
- An initial 11,000 m of drilling to test multiple targets at the Rice Lake and Apex (Snow Lake) Gold projects in Manitoba
- Seasoned mid-tier Canadian Gold miner has acquired an 8.9% equity stake
- Cash balance ~$10 million
Rick Rule’s favorite investment place to be is a lonely place, a lonely place where the mathematics work heavily in his favor. AUMB fits that style of investing perfectly.
AUMB isn’t a popular stock now, but patience will pay off. This is a “when” question, not if. And the clock is ticking on when. We’re getting closer and closer. At some point in the not-too-distant future, Gold stocks in general are going to start to fly – may not happen until after the Fed’s first rate hike, but when it does many investors will be scrambling.
We will have a win with AUMB, but how big will the WIN be?
A Great Bear (GBR, TSX-V)-type win is a real possibility. AUMB today is about where GBR was 3 years ago, before making a roaring 10 to 20 x move.
Internal 1911 modelling indicates ore shoots at Bidou and Tinney, likely vein plus disseminated material. This next round of drilling will tighten up spacing, plus testing down dip and step outs. First-pass drilling will also be done on the Wallace target (Rice Lake) and the Apex Project (an area north of Rice Lake where Kinross and Alamos are both active).
I suspect either Kinross or Alamos took the strategic 8.9% equity stake in AUMB. Hecla and Dundee Corp. also own about 10% stakes.
Ron Clayton, President and CEO, commented, “Our fully-funded exploration program is focused on advancing our key project areas, Tinney and Bidou, to identify resource potential, while also continuing to test new targets generated at the Tinney, Bidou, Wallace and Apex projects. We are very encouraged by the significant position taken in the Company by a mid-tier Gold producer with an experienced exploration team that clearly shares our belief in the potential for significant discovery at Rice Lake. We look forward to a beneficial working relationship as we work towards identifying significant new resources at our Rice Lake property.”
Compared to other exploration companies with market caps close to $25 million, even upwards of $100 million, the difference is clear.
On the long-term chart you’ll see AUMB trading near all-time lows (support), yet still within a bullish pattern. Shorter-term it looks like an inverted head and shoulders bottoming pattern with the head at 25 cents and shoulders at 30 cents.
Any price below 40 cents is an awesome price to be buying AUMB.
Now’s time to be backing up the truck!
The stock’s still cheap and lonely until it gets well past 50 cents.
AUMB has been a drag on my account for a bit but it’s almost certainly going to go for a ride. We just don’t know how far it’s going to take us. You coming with me?!
I’m long and strong here with 685,000 shares. Several tens of thousands more should still be under the couch cushions.
Ninth Inning For Mine Finance?
Ecuador’s President has verbally given (promised) the green light to Curipamba. If his words can be taken to the bank, a mine financing package must be imminent, as are all permits needed for mining. You’d think this news would be bullish for Adventus (ADZN, TSX-V) and Salazar (SRL, TSX-V).
Terms of the deal will determine the extent of bullishness.
Adventus is forecasting for up to $240 million in non-equity financing.
Construction could begin by year-end.
ADZN has advanced modestly, from 96 cents at the end of December to an intra-day high today of $1.07 on increased volume.
Volume often leads larger price moves, and what’s good for ADZN will also be good for SRL. Companies that have basically been joined at the hip through much of the advanced exploration and development stage at Curipamba’s top-tier El Domo deposit (grading 5% Copper equivalent).
If I had to choose 1 of the 2, I still prefer SRL.
Adventus is quite dependent on the Salazar family and their high-level relationships in Ecuador.
Salazar really is “Ecuador’s Proven and Trusted Exploration Company”.
Over and above El Domo (Curipamba) Adventus is funding drill programs targeting Copper-Gold porphyry mineralization at Santiago and Pijili this year.
Salazar itself has promised to hit Los Santos hard in January. Los Santos is a 100%-owned project where they’ve already uncovered 90m of bornite (a Copper-rich rock) near surface.
El Potro, another of Salazar‘s 100%-owned projects, features porphyry mineralization literally sticking out of the ground. “Incredibly intense” stockwork with quartz veins are visible from surface. Merlin Marr-Johnson, VP Corporate Development, says it’s the most extraordinary showing and he’s never seen anything like it. Marr-Johnson went on to say he’s already spent hours on the phone talking with majors about El Potro – drilling is scheduled for September.
Fairly exciting stuff.
Be it Curipamba, Santiago, Pijili, Ruminahui, Los Santos, and El Potro Salazar offers serious exposure to economic Copper-Golddiscoveries in one of the world’s most prospective yet under-explored places (Ecuador).
By the way the CADASTR, Ecuador’s system for staking and granting new exploration licenses, is also supposed to go live again soon. Salazar would be front and center for gaining even more new ground.
Despite tough market conditions SRL has been a steady climber, from 10 to 40 cents. The stock has recently backed off its highs (to 30cents) on light volume. SRL climbs slowly but surely year after year, but never fast enough to attract any hot money.
Maybe this will be the year it catches fire.