Value Microcaps Junior Miners

[Lone Clone]

IAU, GORO

I could have looked so smart...

As I was watching i-80 Gold aka IAU's webinar on their Ruby Hill property in Nevada last week, I remember them noting that the high grade CRD corridor they are exploring extends south on an adjoining property owned by Paycore aka CORE, and thought to myself that they just might buy out CORE.

However, I did not include that thought in my report on the webinar write-up. Too bad, because today IAU did announce they are buying out CORE in an all-share transaction. CORE's property is essentially a bolt-on to Ruby Hill, increasing its size by one third and extending the length of the important Jackson-Holley fault under their control to 4.3 km.

The deal has the support of CORE's board and large shareholders controlling 25% of the company, so given the good premium to market being offered I expect the deal to go through without a hitch. I also suspect this pretty well confirms that the Ruby Hill mill will be modified to produce Pb and Zn concentrates with PM kickers rather than being refurbished it as a PM mill.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34204826

I remember Gold Resource Corporation aka GORO was a favourite among some who posted here. I could never understand why, given their history of poor management, and I opined that the dividend policy management hyped so much was unsustainable. Well, it took a little longer than I expected but my prediction has come true. In spite of the high gold price, GORO's dividend has been suspended.

I sure hope my former debating partners saw the writing on the wall and got out in time. GORO's share price is now about a third of what it was a year ago, and less than 15% of what it was five years ago when our debate was omgoing.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34204975

Saville is now of the opinion that the POG will likely retest the low just above $1800 it set last week rather completing a V bottom, but he remains firmly convinced that after the bottoming process is complete there will be a good run, likely to a new ATH, later in the year.