Earlier this week Toronto-based junior miner Royal Nickel Corp. (TSX: RNX) discovered a “mother lode” of gold jackpot in Australia, totaling about 9,250 ounces.
While some experts and geologists remain skeptical that the story is legitimate, Dave Forest, geologist and editor at Casey Research, said that it is entirely possible.
“It seems that the gold is certainly there,” Forest told Kitco News. “It took everybody by surprise, even management, it seems like. It highlights that gold deposits are very difficult to ascertain.”
Carlson Capital's Double Black Diamond Fund posted a return of 3.3% net of fees in August, according to a copy of the fund's letter, which ValueWalk has been able to review. Q3 2021 hedge fund letters, conferences and more Following this performance, for the year to the end of August, the fund has produced a Read More
On the gold mining sector, Forest noted that although the general investment sentiment is low, there have been a rising number of private deals taking place.
“Insiders are investing in and buying gold projects, at the same time as the wider investing public is giving up on the sector, so to me, that’s a very interesting disconnect,” he said.
Mining Expert Says Major Gold Jackpot In Australia Is Legitimate
Gold is still trading range bound and frustrating investors. But can the metal and miners have more upside potential. Joining me today is Dave force. He’s a geologist and editor for Casey Research. He will also be joining me at the legacy Investment Summit in Bermuda coming up October 17th to the 19th. Dave welcome to the show. Nice to meet you. Use you. So let’s talk a mining here. Dave what do you think is the overall sentiment in the sector today. It’s been tough times. So can we expect capital flowing in anytime soon here.
Yeah well that’s the really interesting thing in gold right now is what I’ve been seeing is you know obviously as you say the general investor sentiment in the sector is incredibly low. I mean to the point we’re seeing you know is this the end of gold kind of articles which are over ensuring investors is always kind of an interesting sign when people sort of give up on things and ETF capitulating and selling and all these kind of things at the same time though what I’ve been seeing is a big flow of especially private capital into gold projects. So I know one private group that just raised ten million dollars for an exploration project in West Africa. I just saw this morning that liberty gold has announced the six million dollar bought deal financing so it’s a buyout deals to the brokerages very confident they can place 6 million dollars of financing and they’re in a number of deals like that. Joel Radian gold in Northern Ireland being bought out by Orion and mine finance. So insiders are investing and buying investing in and buying gold projects at the same time as the wider investing public is giving up on the sector.
To me that’s a very interesting disconnect with the people who are the sector best are are putting their money in and that’s a I think that’s a really good point you’re raising Dave is that you know in within this private universe we live in. And we see we see that the money moving between hands but you’re saying to the general public they might not necessarily be saying that a lot of it’s being done privately.
There have been some like the Liberty gold it was obviously a publicly announced and Daele radio as well but there’s been a lot of activity in private project finance and I’ve seen that the average investor wouldn’t be seeing.
So obviously you have the technical knowledge needed to determine you know whether a project can be a good one or not. But how can an everyday investor differentiate between a deposit that has development potential and one that just doesn’t.
I mean the big the best shorthand for that is to look at the people who are doing the technical work. So even if you’re not a technical person if you look at the background of the people involved and really there’s a handful of people in the junior mining space who do it really well. So if you’re following somebody who’s got a track record of success and I mean a real track record not us not a one off where it may or may not have been right place right time but somebody who’s done it two three four five times that is the best way for the average investor to have confidence that these people can actually pull off what they say they’re going to do.
Now you and I know those names but to someone who is new to this space as it just you know do you just suggest attending conferences or are doing your homework or and research.
Absolutely. There’s no no substitute for going to a conference talking to people sort of getting the estimate of the crowd and you know I mean if you go to an event and you start to hear the same names coming up over and over and over again these are people who get talked about a lot and then simply going and doing the research I mean just look at the tripe you look at somebody like a rock. Kurt Friedlander Lucas Lundie or AROESTY are all of you. It’s easy to look back through all the achievements these people have had and it’s pretty clear that it’s not luck there’s a pattern of success there.
Dave I want to get your thoughts on the big news this week at least.