Usually some videos to follow which I will add here.
Exploration discussion panel with Rule et al
A number of familiar themes from Rule & Kaiser and more,
Rule: “Last year’s stock charts exhibited something that is called buyer exhaustion – the market could not find a bid. I would suggest that the overall TSX-V is now going through a period of a trade-off between buyer exhaustion and seller exhaustion.“Certainly many of the companies would go to their intrinsic value, which is zero, but the best quartile of the companies has already put in a bottom,” he noted.
The solution, Kaiser said, was to look for projects that would work really well at current prices, and to think anew about prospects. It means going deep, undercover, and using new techniques to find new workable deposits within the current scenario.
Kaiser also suggested that discovery plays were the best bet to see performance in the next two years. “No one [investors] wants to give companies money for drilling anymore, but with so few companies drilling, the targets that they are going to drill are bound to be good,” he enthused.
Author of the Resource Opportunities newsletter, Lawrence Roulston, agrees that the biggest gains would come from the early-stage explorers and prospect generators. He noted that the best ones already have projects in hand, with the added bonus of adding more deposits as work progressed on new discoveries.
Roulston also said that another area that was in recent months getting attention was metal deposits that have been outlined and well defined, but where there was potential for satellite deposit discoveries, or potential deep below the existing orebody that could enhance projects through additional exploration.
“When selectively deployed over three years, almost [all of these themes] are going to work. I can tell you without fear of being wrong, owing to this being my fourth commodity cycle, that bear markets are the authors of bull markets. One’s success is almost guaranteed if you do the work, given from where you are starting from,” Sprott’s Rule said.
“The truth is that a good team, with good projects, that survives the next three years, is a likely triple [in share value]. They are going to have to finance this year. A likely triple [gainer in share value], with a full warrant, is a likely five-bagger,” he quipped.
“We are going to have to find things in the exploration scene that work. This idea that we take some [dismal] old prospects that have failed in the last three cycles and try to drill one or two new drill targets in hopes that it might move the share price incrementally, must end. What is going to work is to find a deposit that is actually going to make me acquire more money,” he said.
The panel pointed to some of the top prospective geographical areas around the world to find new economic prospects in the current milieu as being in British Columbia, Ontario, Utah, Nevada, West Africa, Portugal, Spain, Mongolia, Turkey and several areas in South America, including down the Andes.
Mineweb Report on the Show