Exclusive Interviews With Small Cap Gold and Lithium Miners
There’s a gold rush going on right under our noses. It’s in Nevada. And because the state has been blessed geologically, there is a lithium rush going on there too.
That’s why I recently spent a week driving across the salt flats and between the high peaks of Nevada, chasing down interesting companies.
I came up with three small stocks that have giant potential. But these are not “Buy” recommendations.
For one thing, since Energy & Resources Digest is a free e-letter, it would be impossible for me to update you on what’s going on with these small companies… or when to exit.
If you do decide to invest, be sure to review my vetting process for good junior miners before you make any trades.
Site Visit No. 1: NuLegacy Gold
NuLegacy Gold (OTC: NULGF) is a Nevada explorer that made it onto my watch list thanks to the potential of its Iceberg deposit.
As you can see from the following map, Iceberg is in the right neighborhood.
NuLegacy’s property is right next to a cluster of mines owned by Barrick Gold (NYSE: ABX). Those mines hold millions of ounces, and their resource bases keep expanding. That’s the thing about Carlin-type deposits. They can be really big.
Do you know what a Carlin-type deposit is? Simply put, these kinds of deposits take their name from the Carlin Mine in Nevada, which also gave its name to the prolific Carlin Trend.
Carlin-type deposits include gold that isn’t visible to the naked eye but has good grades. Other elements are enriched as well. Importantly, these deposits are some of the largest hydrothermal gold deposits in the world.
Hydrothermal just means that water, moved around by magma, helped make the gold deposit.
That’s why Nevada explorers hunt for Carlin-type deposits. They want the “elephants.”
And I think the folks at NuLegacy make a compelling case that they may – may – be on the trail of an elephant.
You can get a good overview of what the company is up to by watching my interview with Roger Steininger below. He’s NuLegacy’s chief geoscience officer and a director of the company.
The company will have 150 holes finished by the end of the year. It will then use those to model the potential ore bodies and plan targets for next year’s drilling.
Site Visit No. 2: Pershing Gold
Pershing Gold (Nasdaq: PGLC) owns the Relief Canyon Mine in Pershing County, Nevada. Relief Canyon includes three open pits. It also has a crusher and mill that were built between 2007 and 2008 by a previous owner.
On their own, those infrastructure assets cost more than Pershing Gold paid for the whole property.
In 2011, the group that became Pershing Gold picked up the property for $22 million. This included the pits, mill, crusher and a surrounding land package that the Pershing Gold folks were able to work into the deal.
The smooth talkers at Pershing were able to acquire more than 10,000 acres of private mineral rights and mining claims from Newmont Mining Corp. (NYSE: NEM) and Victoria Gold Corp. (TSX-V: VIT) in May 2012. With that, the project grew from around 1,100 acres to 25,000 acres.
Pershing Gold’s CEO, Stephen Alfers, joined the company early in 2012. He is a 30-year veteran of the mining industry. He was formerly chief of U.S. operations for Franco-Nevada (NYSE: FNV).
Those 25,000 acres include at least eight prospective targets that Pershing is very eager to drill.
And it has three active drill rigs now.
I saw those drill rigs and much more in a tour I took of Relief Canyon.
Pershing Gold has no debt and $30 million in cash.
There’s a resource of 778,000 ounces of gold measured and indicated at Relief Canyon. This gives a mine life of 5.8 years. Pershing Gold hopes to expand that by exploratory drilling.
Now it’s working on its prefeasibility study. That, along with a new resource estimate, should be ready sometime early in 2017. If things go well, Pershing expects to be in production later in 2017.
Lithium Explorer Interview: Nevada Energy Metals
Nevada is a hotbed of lithium exploration. There is a good reason that Tesla (Nasdaq: TSLA) located its Gigafactory in Nevada: There are lithium deposits all around.
In fact, America’s only currently producing lithium project is in Nevada’s prolific Clayton Valley. And Nevada Energy Metals (OTC: SSMLF) has a project in Clayton, as well as in other prospective areas of Nevada.
Here is a map of Nevada Energy Metals’ current projects.
One small company can’t explore and develop all those projects.
Nevada Energy is a project generator, which means it wants to stake and explore land. Then it will partner with other companies that can develop those plots. Either that or the company can spin these projects off in land sales.
In the next interview, I talk to Alan Morris, the head of Ruby Mountain GIS. He is a consulting exploration geologist and is overseeing exploration of Nevada Energy’s properties.
Nevada Energy Metals is very early stage. At the time of our talk, it hadn’t sunk a single drill hole yet. I’d like to see some drill hole results – which we should have this winter – before I make any decisions.
Put all three stocks on your radar. As they release news over the coming year – if they deliver on their promises and potentials – they could do very well indeed.