Gold

Ethos Swings for the Fence Three Occasions

Bob Moriarty of 321 Gold explains why he believes this exploration firm could possibly be a superb wager.

I wrote a brand new e book for useful resource buyers in January of this 12 months referred to as Fundamental Investing in Useful resource Shares. In it I predicted that 2019 could be the 12 months the all the things bubble could be popped and our lives modified in an enormous method for a very long time.

Ought to my prediction of doom be correct, I’ll go down within the historical past books as being sensible. Alternatively, because the odds are at all times in opposition to a collapse taking place in a specific 12 months if I’m mistaken, I’ll go down as a blithering fool.

We had a record-breaking climb within the basic inventory market beginning proper as Christmas and I did get that proper. And for months I’ve mentioned we have been approaching a prime and the beginning of a crash. That appears to have occurred in April and we’re in one more useless cat bounce I believe. When it makes the following flip I’ll both appear like a genius or a idiot. However up to now, so good.

“Bitcon,” Mary Jane and the Dow all have the eye of the mob. I hate crowds however in the event you can monitor what they’re doing, all you need to do is to do the other and you may make some huge cash. As soon as the fools following the 2568 variations of Bitcon have been burned as soon as extra, their consideration might be targeted on one thing much more actual than digital Beanie Infants. I believe gold and silver are going to run.

Within the useful resource inventory market you might have a superb clue as to the place you stand in the event you simply observe quantity. If it is excessive and shares are very easy to purchase, you might be nearing a prime. If you cannot give shares away and all the things is at a yearly low, you might be close to a minimum of a tradable backside. At bottoms there are nice well-run corporations promoting for pennies on the greenback. That is the time to purchase.

I’ve talked a couple of instances up to now concerning the assembly between Mark Creasy and Quinton Hennigh in Perth in 2009 that led to the creation of Novo Assets. I used to be on the assembly however so was one other individual, a very long time good friend, Craig Roberts who was working with Cal Everett on the time.

Craig, Quinton, Mark’s lead geologist and I went as much as the Pilbara to have a look at Mark’s floor; we spent per week within the subject sleeping in tents consuming out of cans of beans and swilling $1200 wine. I noticed sufficient on the journey that matched Quinton’s principle that I grew to become a believer. Nothing has modified my perspective since and I’ve spent weeks with Quinton tasks from Mexico to Tanzania to Japan to Aussieland.

Upon the premature loss of life of the corporate founder, Gary Freeman, Craig took over Ethos Gold (ECC-V). When you find yourself chatting with anybody who claims to have a whole lot of expertise within the silver and gold inventory sector, ask them for a Gary Freeman story. If they do not have one, they have not been round very lengthy. Gary Freeman was a personality. You by no means fairly knew in the event you wished to hug him or strangle him or do each on the identical time. He could not stroll right into a room with out turning into the focal point. I miss him quite a bit.

However Gary had created the muse for a superb, maybe nice, junior useful resource firm in Ethos. Gary had additionally based Pediment Gold with Mel Herdrick and financed by Cal Everett and Craig Roberts. That bought to Argonaut Gold in 2011 for $137 million. Their largest asset in Pediment was the La Colorada gold mine in northern Mexico.

I begged Freeman for years to place the leach pad again into manufacturing. In line with my SWAG, the pad had $10–$15 million in gold and silver on the pad simply begging for cyanide. He saved promising he would however he lied and I wished to strangle him. As quickly as Argonaut took over, they turned the pad again on and so they bought the gold and silver from the already mined and crushed ore. Gnash, gnash, mumble, mumble.

Mel Herdrick had his eyes on one other gold undertaking in Northern Mexico in Chihuahua referred to as La Purisima. Craig and Mel dragged it into the corporate in 2017. The deal requires Ethos to achieve a 100% curiosity within the property for a complete of $three.495 million USD and three million shares. Thus far they’ve paid $145,000 USD and 150,000 shares. One other fee is due of $250,000 USD and 250,000 shares in late November of this 12 months.

The technical time period for a gold deposit equivalent to La Purisima is a “Slamo, Dunko” in Spanish. I can translate for any readers not acquainted with Spanish.

Trench samples reported in Might confirmed zero.49 g/t Au over 118 meters together with 1.13 g/t gold over 20 meters and four.17 g/t over 5.four meters. That is all straightforward to leach oxide gold. One other trench confirmed zero.47 g/t gold over 127 meters and a 3rd pattern confirmed zero.84 g/t Au over 10 meters. These are nice holes.

La Purisima is absolutely permitted and a 15-hole drill program has began. The preliminary drill price range for 2019 is $350,000 CAD and might be expanded if outcomes due in late July or August advantage.

Whereas I like La Purisima, it is good grade in a good nation and oxide gold appropriate for a heap leach, Ethos subsequent undertaking was what made me a purchaser of shares within the open market.

The jewel within the Ethos’ Crown so far as I’m involved is the choice for 50% of what they name the Iron Level gold undertaking. The undertaking is at present owned by Victory Metals based by Paul Matysek and Collin Kettell. They drilled it as a vanadium undertaking but it surely’s a property with over $20 million of prior drilling over the past 30 years. Quinton Hennigh drilled it over 20 years in the past as a Carlin Fashion Deposit for 3 completely different teams however the drilling was method too shallow.

USGS information from the 1970s present one of many highest concentrations in Nevada of pathfinder parts for Carlin model gold together with mercury, arsenic and antimony. Quinton wished to place in deep holes in 1994 however his boss maintained that something beneath 1000 ft was uneconomic. Since then Getchell drilled a three,000 foot deep 10 million ounce deposit at Turquoise Ridge 30 miles north whereas Newmont drilled a 2,800 foot 10 million ounce undertaking at Leeville, 50 miles to the east.

Iron Level is on an intersection of the Getchell and the Battle Mountain tendencies. Quinton had gotten in contact with Victory Metals about drilling for Carlin model gold at Iron Level beforehand. In early Might of this 12 months Craig, Paul and Quinton negotiated a most uncommon deal for the undertaking.

Ethos can earn a 50% curiosity within the gold solely at Iron Level by spending $5 million CAD over a three-year interval. Victory Metals retains all rights to the vanadium and another metals. The corporate has budgeted $1 million for 3 deep holes between 500 and 800 meters deep.

Frankly the holes both hit financial Carlin grade gold or Ethos walks away from the property and Victory Metals works on the vanadium. They both sink or they swim, drilling deep holes within the Carlin burns by way of cash quicker than a drunken sailor on Saturday night time.

I like that undertaking quite a bit. I occur to be a large Quinton Hennigh fan. For $1 million Ethos is shopping for a lottery ticket on 50% of a possible 10 million ounce gold deposit. As soon as Saturday night time comes and the lottery machine spits out the numbers, both Ethos begins ingesting champagne with their cheerios within the morning or tears up the ticket and tries to get an actual job.

I’ve heard and I am unable to show it but it surely sounds appropriate, I’ve heard that AOC thinks that Cheerios are donut seeds. I am unsure if that’s proper or not however simply in case, I’ve planted some in our backyard and I watch eagerly for the primary sprouts to pop up.

Iron Level drilling will start by the top of June. Count on outcomes to return in between August and September.

I ought to point out right here that Ethos is among the better-financed junior gold corporations within the sector. With simply at $7 million in money they’re completely positioned to advance each the slam-dunk Mexican floor gold undertaking and the Carlin model lottery ticket at Iron Level. They’ve about 55 million shares and at Friday’s shut a market cap of solely $13 million and an enterprise worth of a tiny $6 million. Good outcomes from both Mexico or Nevada would blast the worth of the shares greater. However wait, there’s extra.

Ethos had a vanadium undertaking in BC they referred to as the Pine Cross property. In December of 2018 they raised $1.96 million in stream by way of cash to drill Pine Cross. Then the BC authorities notified them in March that there may be a moratorium on exploration in that space so Ethos suspended work on the property.

That created a little bit of an issue for them. They’d an excessive amount of money. Bear in mind, stream by way of funds should be spent in Canada. Whereas it is a rotten time to be making an attempt to lift cash for exploration within the junior market, it is a good time to be doing deal for lottery tickets in the event you occur to have your fingers on some money. Ethos not solely has money of their fingers, they should spend it quickly in Canada.

So. In Might Ethos introduced an choice on a Canadian undertaking they name Perk Rocky to earn a 100% curiosity in a gold wealthy copper porphyry of a 6,700 ha declare block 225 km west of Williams Lake, BC. 2019 plans name for in depth airborne geophysics together with floor mapping and sampling. The purpose is to find out excessive potential drill targets with the intent of drilling when cheap.

Monetary phrases name for 100% possession based mostly on an instantaneous $350,000 in exploration bills within the first 12 months, milestone funds of a complete of $three.85 million USD by the point a call is made to go to industrial manufacturing. At that time the distributors retain a three% NSR.

And since three house runs isn’t a full ball sport in Canada it appears, Ethos simply introduced participation in a personal placement in an organization named Carlin Sort Holdings Ltd. the place Ethos paid $198,000 CAD for eight% of CTH.

CTH has three Carlin model targets and might be drilling one and maybe two this 12 months. Ethos will get publicity to 3 fascinating and extremely potential tasks for minimal value. Higher but the drilling might be on prime of the three applications already deliberate for Ethos in Mexico, Canada and Nevada.

I’ve completed very nicely over time investing in each lottery ticket with Quinton Hennigh’s model on it. I’ve needed to throw away a pair that did not win the jackpot however who is aware of, sometime they may. And I’ve completed exceptionally nicely on others. Once I discovered Quinton was an advisor to Ethos I wished it. I’ve purchased a good variety of shares within the open market and took part within the final non-public placement as nicely.

Should you had listened to me seven years in the past, you would have picked up Novo shares at $zero.45 and also you had the identical alternative to purchase Irving at $zero.45 a few years in the past. Novo went up 1900% and Irving goes to. Whereas Ethos remains to be an unknown recognized, it is a lottery ticket with a probably large payoff. You should buy now at $zero.24 or you may wait till it is protected to purchase when it is $three–$four, it is your selection. I’ve made my wager already.

Craig Roberts has a whole lot of good sense so Ethos is an advertiser. I personal shares and I am biased. Do your individual due diligence. I will not share in your revenue or maintain your hand in the event you lose. It is your cash and your choice.

Ethos Gold Corp
ECC-V $zero.24 (Jun 07, 2019)
ETHOF-OTCBB 55.1 million shares
Ethos Gold web site.

Bob and Barb Moriarty introduced 321gold.com to the Web virtually 16 years in the past. They later added 321vitality.com to cowl oil, pure gasoline, gasoline, coal, photo voltaic, wind and nuclear vitality. Each websites characteristic articles, editorial opinions, pricing figures and updates on present occasions affecting each sectors. Beforehand, Moriarty was a Marine F-4B and O-1 pilot with greater than 832 missions in Vietnam. He holds 14 worldwide aviation data.

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Disclosure:
1) Bob Moriarty: I, or members of my speedy family or household, personal shares of the next corporations talked about on this article: Ethos Gold. My firm has a monetary relationship with the next corporations talked about on this article: Ethos Gold is an advertiser on 321 Gold. I decided which corporations could be included on this article based mostly on my analysis and understanding of the sector.
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