Nevada Explorer | Ghana Gold | Valaurum | Red Cloud
Worthy & Actionable Right Now: West Kirkland Mining warrants (more below) | Riverside Resources | Xtra-Gold
SAN FRANCISCO — Valaurum — it’s a privately held designer of divisible purest-gold certificates. Valaurum also is a story of how we begin to remember.
Remember, that is, how luscious is gold on the finger, on a wall, in a vault or as a bookmark. Remember also how expensive 99.9-fine gold is becoming to purchase — even a tenth of an ounce — if one can find a divisible unit or coin and suffer the “premium” to boot. Valaurum.com
I HAVE A story to tell about my own (169-grams) Ghana gold slug, poured for me by a 28-year-old Ghanaian woman at the busy-bee base camp of explorer Xtra-Gold Resources. Best purchase (the slug of gold) I made that year in Africa — ranking right up there with the limited-edition Nelson Mandela platinum coin set that came out in South Africa about 8 years ago.
That story is about the pulsing of gold in the veins of Xtra-Gold’s property in western Africa.
Hard rock and alluvial (enough to garner some $2 million yearly and more from sub-contracted mining on the Kibi concessions.) The nugget here also hails from Xtra-Gold’s properties (XTG Canada ticker and XTGRF USA), and I purchased one of those, too (but I’ll hold onto that beauty). *
This story also is about Valaurum, Adam Trexler’s DESIGNER AND PRODUCER of divisible gold certificates and nano-precise sheets.
I already have decided to invest in Mr. Trexler’s private company. I will have some due-diligence coming on Valaurum.
So that is part of the story I owe our TCR network. This is a rare private-co stake for me — usually a mis-stake in the six or seven we angels here at home have backed a wanna-be with cash Not this time. We’re backing Valaurum with that Ghana gold slug and with paper (USD and CADs).
Valaurum‘s quarter-gram and tenth-gram sheets of gold are objects of beauty, rising in value yet relatively inexpensive in a rising gold market. Also: IP protected, trademarked and with a barrier to entry that will take anyone three to four years and a truckload of engineers to duplicate. Yep, even China.
As for Xs and 0s, Valaurums likely will become the sheet of icing on the cake for anything on fiscal Earth that calls itself blockchain, digital gold, bit-gold and gold grams.
Valaurums already are the glossy, proof-perfect face of GoGold and other metals operators. They are showing up at SilverGoldBull, at Sprott Money, at trade shows such as FreedomFest in Vegas (July) and New Orleans (October), and sooner (figuratively folks) than you can sing “fields of gold,” at coin shops in North America. As I said, more coming for paying subscribers.
Worthy & Actionable: As stated, I have been adding and continue to add to my Nouveau Monde, graphite in Quebec. NOU in Canada.
— Riverside Resources, our tightly run and tightly held “project spawner” (Mexico, Arizona, British Columbia), sirged this Monday morning on a half-million shares of exchanged shares; ping me if you want our TCR reason why RRI (Canada ticker RVSDF USA ticker) is into parabola.
Do you wanna know a secret? Klondike Strike is a crowd funder on a red Toronto cloud. Chad Williams’ “platform” for raising natural resources cash for small-cos is into its 7th offering. Here is the secret: this banner and these words are a public service for ordinary folks who cannot spend more than $1,000 or $5,000 for private placements of equity in gold, copper, silver, and so on, miners and prospectors. In other words, these cats do NOT pay me.
* XTRA-GOLD RESOURCES: Will surge this week, just as tightly held Riverside Resources is now doing (Monday). Shared characteristics of the two tots: 10-plus years of honest helmsmanship. Enormous stakes by the founders, James Longshore, Mark McGinnis for XTG; John-Mark Staude for Riverside. Stingy share counts — each under 50 million shares I believe. Both appear on the cusp of what shape up as extraordinary exploratory drilling results in their respective gold fields. The edge on this one in terms of a globally significant find goes I believe to XTG at its Cobra Creek summer drilling in the Kibi Gold Belt. I own tons of both.
WKM Nevada: look at the West Kirkland Mining 3-cent CAD warrants, if you can find them. The actual shares are cheap as Nevada sin, too, at 12 cents CAD.
This Nevada gold-project developer’s current market value (WKM Canada ticker) serves as an example of how rising gold prices can boost the worthiness of a gold mine in the making. In this case, a permit-entitled and drill-ready project with two portals, one on each side of the up-and-coming central Nevada town of Tonopah. (Some say this town and at least one of its hotels are haunted; I know they are.)
In the most recent engineering study for West Kirkland Mining‘s 75 percent-owned property there, the gold move from base case $1,225 to $1,300 becomes a $27 million increase in after-tax net asset value of $103 million.
Just that gold increase in value equals the market value of tiny and forlorn WKM, which has another property or two. Thus, WKM shares are trading at 25% of the study’s stated NAV. Now, I know this is all on paper; I know West Kirkland Mining is NOT (yet) a producer of gorgeous gold. Still, hedge funds and investors who believe in such metrics-tied-to-markets eventually adopt such shares.
I wondered out loud what this Nevada operation’s post-tax project value would be if gold, say, were to rise to $1,400 an ounce from its current $1,325. Sure enough, WKM’s Mike Jones was on it. Post Tax Project Value – NPV5 $ 138.993M WKM 75% = USD$ 104.24m, 41% IRR. Market Cap 308m shares x US 0.08 = US$ 26m. That’s from the Canada CEO’s mouth. And Mr. Jones abstracts the numbers from the independent engineering study for the Nevada project, also known as a PFS.
Our Alamos Gold “A” warrants are vibrantly profitable this year (up 400 percent) and still have more than two years to expiry; they have about tripled in six months’ time. See: AGI warrant. Yet the WKM warrants, which expire in 2019, are going nowhere at 2 cents USD/3 cents CAD. I like that. An eastern USA asset manager is buying ’em. So am I. Probably one of the cheapest near=term gold producers in this rising gold market — with the warrants as a way in, not probably. Definitely. IN USA trading: WSKKF. In Canada: WKM.WT.A
— Thom Calandra
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Thom Calandra & TCR are researchers and investors. They are not registered investment advisers. The research and material they offer to subscribers are meant as editorial opinion.