Cowpoke In Nevada

The USA state of Nevada keeps crossing our path this winter-spring of 2016.

Most of the following TCR Network tags this past week (but not all) travel into Nevada.

1. Virginia Energy, that sub-$8 million USD uranium stakeholder in the USA, will be adding a British Columbia, Canada, property to its portfolio, I believe. The addition will give more attention to the obscure and mostly family-operated company. VUI (ticker Canada) is pursuing state and federal court appeals that could clear the way for its Coles Hill project. One appeal could get a U.S. Supreme Court date — a development that were it to happen could occur this year. Virginia Energy is also VEGYF ticker in USA.

Near Getchell Trend For Seabridge Gold
Near Getchell Trend For Seabridge Gold

2. Seabridge Gold shares continue to outpace their peers this month of March. The company bought a private package of 5,000-plus gold claims and land in northern Nevada near Winnemucca about a month ago. The “Snowstorm” transaction with a private seller (Paulson the hedge fund operator) is not my primary reason for owning Seabridge Gold shares.

CEO Rudi Fronk tells me the stock, heavily short-sold (20 percent of the common), often perks up when investors believe gold’s price will rise imminently. “The reverse also is true,” he says. SA (ticker USA) also could be close to a hook-up with a deep-pockets partner that can develop its KSM gold (and copper) project in British Columbia. Mr. Fronk, educated at Columbia University as an engineer, told me at PDAC in Toronto that Seabridge has seen all of the major gold companies view KSM or signal their willingness to see it. A month ago, Seabridge said its higher-grade part of KSM, called Deep Kerr, rose dramatically in its newest engineering study: to an inferred resource of 19 million ounces of gold and 17 billion pounds of copper. Constraints are for what miners call a “block-cave model.” Also: SEA ticker in Canada; a reliable name to own if you value liquidity of trading and fast action.


3. I’ll be in Nevada later this coming week. I’ll be renewing my nine-years interacting, socializing, investing with and learning from Nevada geologist Bob Carrington and his wife, Gloria Carrington. The two of them run Newrange Gold. Their former Colombian Mines completed a private transaction for an 1886 gold mine outside of Hawthorne in Mineral County, Nevada. “It was a long haul getting this from the family,” Bob says.

Channel sampling -- saw-cut samples along Pamlico 'decline'
Channel sampling — saw-cut samples along Pamlico ‘decline’ [Click photo for correct view]
Those who subscribe to our TCR Network got the word on this Pamlico thing earlier than anyone outside the Carringtons’ homespun company. (We first discussed Pamlico and Newrange in September 2016 | we first discussed and reported the Colombia and Nevada diggings of predecessor CMJ, now NRG, and the Carringtons back in 2008.)


Pamlico’s old mine decline right now is showing channel samples of rock with grades that hearken back to the Battle Mountain Gold days of that state and much of the western quest for 1800s gold. Gold-rush grades of 10 or 20 ounces of gold per metric ton are NOT a guarantee of success in this part of Nevada. Great Basin Gold and others have met capital annihilation because of thin or crumbling high-grade veins.


This Pamlico came into generational Nevadan Mr. Carrington’s purview in spring 2016, but Bob and Gloria, a lawyer, have had eyes on the Walker Lane thatch of old mines and unpatented claims for much longer than that.

A 17-year span of exploration drilling that ran to 2010 showed consistently high grades of gold across wide intercepts — and not more than 250 feet deep. [Please see native gold sample below.]


Illustration -- TCR Network Member Derek Bednash, Vancouver, B.C.
Illustration — TCR Network Member Derek Bednash, Vancouver, B.C.

Next up: bulk sampling of the channel rock and eventually, exploratory drilling (reverse circulation and diamond-tipped).

Mr . Carrington tells me today (Sunday March 26, 2016): “We make diamond saw cuts along the top and bottom of the channel, then chisel out the rock between. This provides the highest quality sample possible and is virtually drill quality. Allows us to take real representative channel samples regardless of how hard the (quartz) rock is.”Knowing Bob, I have to believe he will keep a steady finger on expenses for this program. Reno dude, age 59, owns every gun, every shovel and every pair of boots and wooden snow-skis he ever bought — like our cowpoke riding his (new)-range here in the illustration (at left).

High-grade gold mules from Canada just bought most of the American company’s $800,000 CAD equity raise. Those names on request for our TCR Network only. I have been buying Newrange Gold shares at will and at market — NRG in Canada and CMBPF in USA tickers. This one looks like a modern gold-rush tale.

The photos here of the Pamlico decline and ‘outcrop’ below are from Bob Carrington.

4. I missed the marijuana stock market boom in North America these past 30 months, and I was not even stoned. One company whose shares came from Ghana’s Xtra-Gold Resources in a property spinoff is asking shareholders to approve a name change to Hi Mountain, or Mountain Hi. I met with the principals of Buccaneer Gold a few weeks ago in Toronto. One of them, a Toronto broker, has a track record that puts him close to the top of the maryjane mountain for Canada-traded ganja transactions these past three years. I bought more shares this week — BGG in Canada ticker. What the high heck — I own a Buccaneer stake already and after 8 years of visiting Ghana and buying shares, I still own plenty of Xtra-Gold (XTG in Canada ticker), which is in its ninth or 10th year of developing a Kibi gold deposit that also produces alluvial gold for the company treasury.

TCR Network’s clock
 ticks for several of our TCR Network names:


— We expect clinical results real soon for Immunovaccine — ovarian cancer. These will come from Canada for a Phase I  (b) collaboration with Incyte. IMV in Canada ticker / IMMVF in USA. I am just this week at 200,000 shares of IMV, a process that has taken me 21 months.

An 'outcrop' of very hard quartz vein at Pamlico
An ‘outcrop’ of very hard quartz vein at Pamlico

— We await payment of a dividend March 30 (shareholders of record March 13) from Athens, Greece, cargo hauler DryShips. The DRYS “trade” thus far is NOT working as outlined here for the TCR Network. I hold about $6,000 worth of stock that I purchased at the sum of about $9,200 USD. (DRYS on NASDAQ)


— We are expecting more in the way of accelerating and enriching royalty income this year and into 2018 for Eurasian Minerals. EMX in USA and Canada tickers


LKA Gold is seeing insiders purchase shares to keep the Colorado miner on track with its Kinross Gold-assisted exploration program for gold above the Golden Wonder Mine in Lake City. Next up: what the geologists have to say about the first two holes punched into a trend prospect this winter. LKA is LKAI in USA ticker. The Caldera Partners LP tagged in this new release does not mention that a few of the original and still backers of the investment partnership include two well known gold investors on the speaking circuit and one well known Louisiana gold family. Caldera and others upped their ante for ownership the other day. I have written multiple reports about Golden Wonder and LKA these past three or so years. Some of those are public at our and some are private. [I might find myself regretting a week-ago trigger (good ’til canceled) sale at 59 cents a share. I still own a small LKAI stake and will be “buying back” if the stock comes into reach again. The market value of LKA Gold is less than $10 million.]

'Native' Pamlico Gold: One Of Scores Of Samples
‘Native’ Pamlico Gold: One Of Scores Of Samples

Farmland Partners with an almost 5 percent yield is headed, I believe, to a record-setting year of harvesting income from its 148,000 acres of “food, fuel, fiber” across the USA; the stock is a REIT, a real estate investment trust required to dispense 90 percent of its income to shareholders. Dividend date of record for shareholders is this coming week sometime. FPI is USA ticker


5. It is rare to see a gold company’s shares so much in demand for short sales, that your broker is willing to pay you an interest rate for your own stock. That is happening right now with Nevada mine builder Gold Standard Ventures — for good or bad. GSV in USA and Canada tickers. Usually, hedge funds are more likely to tip the balance for stocks with small common floats and lots of crazy ups and downs in price — such as biomed-device maker Enteromedics (ETRM). I own both ETRM and GSV and have received lending requests for shares of both. The GSV, which is part of a few of the gold indexes that track “junior” resource-cos, offers a small interest rate, 3 percent yearly; the ETRM (NASDAQ ticker), a high-risk proposition with its vBLOC device to moderate obesity, comes with the offer of a 39 percent interest rate.



— Thom Calandra  

[Accumulating tin-co Kasbah Resources (KAS in Australia ticker), developer of a Morocco tin mine.]




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Thom Calandra & TCR are researchers and investors. Research and material they offer to subscribers are meant as editorial opinion.






Cowpoke In Nevada