Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecast 2024 - 15th June 24
Gold Price Consolidating at High - 15th June 24
NVIDIA Stock Market: Price Prediction for the Future - 15th June 24
When Will the Boom/ Bust Rollercoaster End? - 15th June 24
Stock Market Trouble Lies Ahead. Are You Ready For It? - 15th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

A Good Time To Be Buying Gold

Commodities / Gold and Silver 2016 Nov 12, 2016 - 10:08 AM GMT

By: Richard_Mills

Commodities

There's a lot going on in the world - from Trump being elected in the U.S. to turmoil in the middle east, the China Sea and Turkey, Russia is flexing it’s still considerable might, North Korea’s flinging it’s nukes helter skelter, Japan’s rearming, disease runs rampant and fear escalates about virus mutation, there’s shortages of fresh water with many rivers not reaching their former endpoint and of course climate change is rearing its head to destabilize natural rhythms or cycles. It’d be hard to go back in history and pick a period of time when things weren’t so combustible.

Your author believes gold and silver have never been better safe-haven investments. Inflation, world events, diversification


So too do resource related equities. Junior resource companies, financed to near term production, currently offer the greatest leverage to increasing demand and a rising gold/silver price. This is where the money will be made in the next two years.

It’s a fact junior mining companies outperform senior miners at finding new mineral deposits and generating wealth for stakeholders…

“These are among some of the findings released in a study conducted by resource company strategist MinEx Consulting, which analyzed the performance of explorers and producers operating in Canada between 1975 and 2014. What the consultancy firm found is that, in the last decade, junior companies were responsible for more than three quarters of all new mineral discoveries and were approximately 30 percent more effective than senior companies at generating wealth.”

Aheadoftheherd.com’s editor isn't looking for huge producers with so much overhead that they can't profitably mine an ounce of gold. I'm not looking at huge mines with billions and billions of dollars in capex. I'm much much more comfortable with smaller mines having lower capex and under-control operating expenditures.

If you want to invest in the building of something of value – be there as the company moves it’s mineral deposit down the development path towards a mine there are a very few quality junior companies to choose from. Even fewer with the studies done and money already raised to get into production.

These are the situations that are an enormous opportunity to back excellent management teams with your investment money.

Spending

Let's look at why companies aren't making a profit:

  • One of the biggest reasons is capital expenditures (capex), which is the basic cost of building a mine and its supporting infrastructure.
  • There are lower grades being mined and more complex metallurgy.
  • Companies are increasingly going into more remote areas that lack infrastructure.
  • Environmental regulations are increasing.
  • We are seeing more money-grabbing governments and resource nationalization. Miners are an easy target as mining is a long term investment and one that is especially capital intensive – mines are also immobile, so miners are at the mercy of the countries in which they operate. Outright seizure of assets happens using the twin excuses of historical injustice and environmental/contractual misdeeds. There is no compensation offered and no recourse.

Because everything you can imagine is working in a perfect storm to increase costs, and risks, on mining companies, here at aheadoftheherd.com we’re seeking out the smaller mines with low capital costs, uncomplicated metallurgy, no worry of governments seizing our asset and we’re looking in areas with long mining histories.

Northern Vertex mining Corp. TSX.V – NEE

Northern Vertex has activated the historic Moss Mine area (100% owned by NEE) in north west Arizona. With excellent site access – only a 20 minute drive from Bullhead City and its population of 35,000 people there’s excellent infrastructure to support an operational mine and the skilled workforce close by to run it.

The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 370 meters vertically.

The Moss mine is a potential heap leach, open pit project that has been advanced to the Feasibility Study stage.

Measured and Indicted oz gold (Au) 377,000.

Measured and Indicted oz silver (Ag) 4,610,000.

The Feasibility Study shows the Moss Mine to be an economically robust, higher margin, lower risk project in one of the world's premier mining jurisdictions.

Northern Vertex has just signed a US$20,000,000 million credit agreement with Sprott Lending.

With US$8,500,000 in equipment financing under negotiation, US$7,000,000 in the treasury and capital expenses estimated to be US$33,000,000 to build the mine, development of, and production at NEE’s Moss Mine seems to be a certainty.

Exploration potential to further expand the gold and silver resource certainly exists.

Moss Claim Blocks:

  • Moss Mine has 200,000 Oz Gold (M&I) not included in the BFS
  • Moss Mine Resource remains open at depth and on Strike to the East and West for more than 3kms

The Company has also identified four high priority targets - all four are situated in close proximity to planned operations facility - that will be the focus of a proposed upcoming multi-phase drill program.

Because Northern Vertex is well advanced along the development path towards a mine the guesswork about grade, size, costs and metallurgy have been taken out of the equation for us. Company management has done the work necessary to give investors the confidence that their project will be a profitable mine.

Conclusion

Northern Vertex TSX.V - NEE has raised the dollars needed to get into production, investors can see they are going mining and cash flow is just over the horizon.

Buying already paid for near term gold and silver production in today’s current global climate of fear and uncertainty might not be such a bad idea.

Northern Vertex is on my radar screen, is it on yours?

If not, maybe it should be.

If not, maybe it should be.

By Richard (Rick) Mills

www.aheadoftheherd.com

rick@aheadoftheherd.com

If you're interested in learning more about the junior resource and bio-med sectors please come and visit us at www.aheadoftheherd.com
Site membership is free. No credit card or personal information is asked for.

Richard is host of Aheadoftheherd.com and invests in the junior resource sector.
His articles have been published on over 400 websites, including: Wall Street Journal, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell, Pinnacledigest, Uranium Miner, Beforeitsnews, SeekingAlpha, MontrealGazette, Casey Research, 24hgold, Vancouver Sun, CBSnews, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor, Mining.com, Forbes, FNArena, Uraniumseek, Financial Sense, Goldseek, Dallasnews, Vantagewire, Resourceclips and the Association of Mining Analysts.

Copyright © 2016 Richard (Rick) Mills - All Rights Reserved

Legal Notice / Disclaimer: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in