Silver Might be Going Higher, but This is Why You Keep Losing Money on Mining Stocks
Also; a case study on success, and 3 junior mining updates.
Last Week on Resource Talks
What’s Really Killing Your Mining Portfolio
South32 Bets $29M on a Copper Exploreco (TSX-V: AE)
Copper-Zinc Explorer Gets $10M Cash Injection (CSE: USGD)
Copper Stock Goes Up 100% in a WEEK (TSX-V: CPER)
Case study on one of the very few successes in junior mining (TSX-V: FDR)
Why Silver is Going Much Higher Soon and How This CFA Has Positioned
What’s Really Killing Your Mining Portfolio
It’s easy to ride the wave of a hot sector, but without a genuine focus on value creation, these companies often burn out.
Luc ten Have, Founder www.GoldDiscovery.com
5 Takeaways
Supply Dynamics Matter: A flood of free-trading shares and warrants can temporarily depress a stock’s price, even in the face of strong discoveries.
Financing and No-News Risks: Extended periods without updates or unfavorable financing terms can create significant short-term volatility for junior mining stocks.
Strong Management is Key: Companies that carefully manage their share structures and maintain disciplined financing strategies tend to perform better over time.
Insider Behavior Signals Confidence: Consistent insider buying can stabilize share prices and indicate strong belief in the company’s future.
Promotion vs. Fundamentals: While promotional companies can thrive in strong markets, long-term success depends on having genuine assets and disciplined management.
South32 Bets $29M on a Copper Exploreco (TSX-V: AE)
Yes, most BC porphyries don’t work at $4 copper. But NAK isn’t typical. We’re seeing better grades and near-surface mineralization, which makes the economics far more compelling.
Anthony Moreau, CEO American Eagle Gold Corp (TSX-V: AE)
5 Takeaways
Strategic Deal Structure: American Eagle Gold secured a $29 million investment from South32 with no royalties, warrants, or rights of first refusal, preserving long-term value and flexibility.
NAK’s Unique Potential: The NAK project stands out for its promising high-grade zones, infrastructure advantages, and potential to rival BC’s top porphyries.
Strong Partnerships: With both Teck and South32 as major shareholders, competitive tension adds credibility and attracts further interest in the project.
Focused Exploration: The company plans to drill 75,000 to 100,000 meters over the next three years, targeting the North Zone while exploring peripheral targets.
Investor Growth Story: Despite a stock rally, the company believes in significant upside potential, likening its trajectory to industry success stories like Snowline Gold.
American Eagle has paid for the production of this content.
Copper-Zinc Explorer Gets $10M Cash Injection (CSE: USGD)
Dowa wanted to focus on production; we saw the potential for a much larger VMS [volcanogenic massive sulfide] system.
Warwick Smith, CEO American Pacific Mining Corp (CSE: USGD)
5 Takeaways
American Pacific Mining secured $10 million and full ownership of the Palmer Project, highlighting its focus on exploration upside over immediate production.
The company plans to prioritize the Madison Project in 2025, with CAD $2 million allocated to aggressive drilling to unlock its gold-copper potential.
Palmer’s resource expansion could double to 30 million tons with $20-$30 million, offering significant transaction or partnership opportunities.
Non-core Nevada assets may be spun out or joint-ventured, unlocking additional value for shareholders.
American Pacific’s strategy remains rooted in exploration and smart M&A, aiming to create shareholder value through transactions rather than mine-building.
American Pacific has paid for the production of this content.
Copper Stock Goes Up 100% in a WEEK (TSX-V: CPER)
We’ve got chlorite-magnetite alteration over potassic rocks, which is a greenish-black material consistent with the depths of Mount Lyell.
Steve Swatton, CEO CopperCorp (TSX-V: CPER)
5 Takeaways
CopperCorp’s Jukes project has intersected 90 meters of visually strong copper mineralization, potentially validating its IOCG model and drawing comparisons to world-class deposits like Mount Lyell and Candelaria.
The decision to release visuals before assay results was a strategic move to maintain investor interest during a roadshow, despite acknowledging the inherent risks of such an approach.
Drilling confirms the geological model with deep chlorite-magnetite alteration zones, but further work is needed to pinpoint the richest areas within the magnetic anomaly.
The company is actively engaging with potential major partners, including Japanese companies, to bring financial and technical support for advancing its extensive Tasmanian land package.
CopperCorp remains financially disciplined, with $3 million in treasury, focusing on cost-effective exploration while keeping partnership opportunities and shareholder value as priorities.
CopperCorp has paid for the production of this content.
Case study on one of the very successes in junior mining (TSX-V: FDR)
You don’t often see a company start from scratch and make a significant discovery within a year.
Luc ten Have, Founder www.GoldDiscovery.com
5 Takeaways
Geological Setting Matters: Founders Metals’ success is rooted in the prolific greenstone geology of the Guyana Shield, which has proven to be able to host large, high-grade ore bodies.
Corporate Execution is Key: A clean share structure, timely financing, and strategic partnerships like B2Gold have been instrumental in Founders’ success.
Historic Drilling Matters: High-grade historic hits like 27 meters at 27 grams provided a foundation for exploration and drill targeting.
Success Requires a Holistic Strategy: Founders has proven that success in junior mining is a delicate balance of geology, financing, and operational efficiency.
Timing and Risk Management Are Critical: For investors, the ability to recognize when to enter and exit is as crucial as evaluating the geological and corporate potential of a project.
Why Silver is Going Much Higher Soon and How This CFA Has Positioned
The U.S. is $37 trillion in debt, and we’re at the accelerating phase of spending—debt must grow exponentially to keep this economy going. This isn’t sustainable, and gold will ultimately be the refuge when the system falters.
Garrett Goggin, CFA, Founder, www.GoldenPortfolio.com
5 Takeaways
Silver’s Time Is Near: Commitment of Traders data signals a historically significant setup for silver, reminiscent of its 2008 rally to $40 per ounce.
Focus on High-Grade and Profitable Projects: Only a handful of silver and gold projects, with exceptional grades and margins, are truly profitable, making careful project selection critical.
Debt-Driven Economics Fuel Gold’s Case: The U.S. debt trajectory, combined with persistent inflation, creates strong tailwinds for gold and silver prices.
Royalties Outperform Traditional Miners: Royalty companies offer long-term value with less risk and have consistently outperformed miners in both bull and bear markets.
Valuation-Driven Investment Strategy: Success lies in investing based on detailed economic models and selling when a company’s market cap matches its intrinsic value.
Upcoming Interviews
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Very Important Warning
These are very brief summaries of what are typically very lengthy interviews. They are likely to contain mistakes and won’t always represent all of the takeaways from the full conversations. Watch/read the full interviews on www.ResourceTalks.com.
Please note that some of the guests have paid for the creation of this content. More specifically, in this edition, American Eagle, American Pacific, and CopperCorp have paid for the production of their interviews.
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no questions upfront,
no questions off the table, and
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The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.
Thank you for reading and have a wonderful week.
Respectfully,
Antonio A.