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  • Estrella Resources’ Share Price has Soared 2,000% in Oct, Here’s Why

    Shares in small-cap gold and nickel explorer Estrella Resources Ltd [ASX:ESR] have continued to rocket today thanks to results from the historic Carr Boyd Nickel Mine.

    The ESR share price had been soaring when we were first given a glimpse of the project’s potential at the beginning of October, climbing ~640% in one day.

    Today, the good news appears to be continuing with surveying results complementing drilling results received at the beginning of the month.

    ASX ESR Share Price Chart

    Source: Tradingview

    At time of writing the ESR share price is up 46.45% or 7.2 cents to trade at 23 cents per share, setting a five-year record high.

    In October, the share price has returned nearly 2,000%.

    Estrella Resources lays to rest ‘concerns about scale’

    Earlier in the month, ESR received drill results from its Carr Boyd Mine that returned a significant drill intersection of massive Ni-Cu (plus platinum group elements) bearing sulphides.

    According to ESR, the project is located in a Tier 1 jurisdiction approximately 80 kilometres northeast of Kalgoorlie, Western Australia.

    It was discovered in the late 1960s and produced 202,110 tonnes of ore at an average grade of 1.43% Ni and 0.46% Cu between 1973 and 1977.

    REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.

    Company CEO Chris Daws said:

    Our work has resulted in this thick intersection of primary magmatic nickel sulphides, and Carr Boyd can now join an elite list of recent Western Australian nickel discoveries including the Golden Swan, Julimar and Mawson discoveries.’

    We have covered Chalice Gold Mines Ltd’s [ASX:CHN] Julimar Project extensively here at The Daily Reckoning Australia, and if Carr Boyd is similar there could be huge upside for ESR.

    Today, ESR announced follow-up electro-magnetic (EM) survey results.

    Mr Daws commented on the results:

    The results of the DHTEM have put to rest any of my concerns about scale [of Carr Boyd] and we are now eagerly awaiting the assay results to get a clear understanding of the potential of this discovery.

    The EM results related modelling shows a discrete related body, which may be open in all directions, this can be seen below.

    ASX ESR Carr Boyd Rocks Cross Section

    Source: Estrella Resources

    What’s with the ESR share price?

    Essentially, ESR has now identified a promising exploration target just one kilometre north of a historic producing Ni-Cu mine.

    The recent results have now given ESR some confidence that there could be a relatively large ore body contained in their tenements — which has been reflected in the share price.

    A second stage of drilling has been planned and will comprise 8–10 holes for ~5,000 metres.

    If you’d like to stay up to date on news from explores like Estrella Resources, or if you’re just interested in Aussie miners, make sure to subscribe to The Daily Reckoning Australia, it’s a great way to stay ahead of the curve when it comes to Australian miners. It’s free too. Subscribe here.

    Kind regards,

    Lachlan Tierney

    For The Daily Reckoning Australia

     

    The post Estrella Resources’ Share Price has Soared 2,000% in Oct, Here’s Why appeared first on Daily Reckoning Australia.

    Posted: by Daily Reckoning Australia

  • Is Dart Mining on the Cusp of Tipping off a New Gold Rush? (ASX:DTM)

    The share price of microcap gold and base metal explorer Dart Mining NL [ASX:DTM] has risen significantly today thanks to news from its Buckland Gold Project in Victoria.

    DTM explores the historic goldfields of North East and Central Victoria, primarily at its Buckland Gold Project, 200 kilometres north of Melbourne.

    North East Victoria is one of the most endowed mineral areas in Australia, located at the southern end of the world renown Lachlan Fold Belt.

    An area that also hosts Australia’s largest gold mine — Newcrest Mining Ltd’s [ASX:NCM] Cadia-Ridgeway.

    At time of writing the DTM share price is up 11.11% to trade at 20 cents per share.

    High-grade gold extended at Buckland

    DTM has today released its latest results from the Fairley’s Prospect at Buckland.

    Highlights include:

    • 13m at 4.82 grams of gold per tonne (g/t) from 12m, including 2m at 11.6 g/t from 20m
    • 11m at 2.64 g/t from 28m, including 3m at 7.49 g/t from 29m
    • 10m at 2.27 g/t from 4m, including 2m at 5.52 g/t from 7m

    According to DTM, mineralisation remains open and untested along strike and at depth.

    ASX DTM Shares - Dart Mining Drilling Map

    Source: Dart Mining

    Fairley’s Prospect forms a small part of the 17.5-kilometre long gold and arsenic anomaly at the Buckland Gold Project.

    As you can see in the figure above, the results essentially demonstrate decent widths and grades of gold mineralisation that occur across a large strike and depth.

    DTM said that the program has successfully extended the drilled strike extent to approximately 240 metres.

    How good is the potential at Buckland?

    Dart Mining believes there is good potential at Fairley’s Prospect for the discovery of a significant body of gold mineralisation.

    Although, you’d be hard pressed to find an explorer that doesn’t think their project has potential.

    So, what’s the ‘real’ likelihood?

    It’s been slow going at the Buckland Project.

    There was considerable soil sampling conducted in 2008, which returned some very high-grade gold mineralisation.

    We didn’t receive further news from Buckland until 2016, though it wasn’t much to go off.

    However, when pieced together, follow-up results began to identify some juicy targets.

    Previous channel and chip sample sites targeted during the current program include channel samples of 2.05m at 9.78 g/t and 5.6m at 10.7 g/t, and chip samples of 6.4m at 13.17 g/t (including 1m at 48.8 g/t).

    DTM said follow-up drilling is planned for the northern extent of the prospect to chase the structure with the intent of identifying the grade and character of mineralisation at depth.

    With the gold price recovering nicely from its drop in September, now could be a good time to make a play. Our resident gold expert, Shae Russell, has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes ahead in Aussie gold stock prices. If you want to learn more, download your free report here.

    Regards, 

    Lachlann Tierney,

    For The Daily Reckoning Australia

    The post Is Dart Mining on the Cusp of Tipping off a New Gold Rush? (ASX:DTM) appeared first on Daily Reckoning Australia.

    Posted: by Daily Reckoning Australia

  • Small-Caps Party like It’s 1999 — The Heat is On in the Small-Cap Sector

    Yesterday we dwelled on the notion that China’s aggressive trade tactics against Australia are in response to Western military manoeuvres.

    Things aren’t going to cool down anytime soon. ABC News reports that Australia is going to join ‘quad’ naval exercises in the Indian Ocean.

    There are three other nations involved: the US, Japan, and India.

    Hello! None of these countries are on a good footing with China. Indian and Chinese soldiers were shooting at each other last month.

    It was only a few years ago that Japan and China were at each other’s throats over some disputed islands in the South China Sea.

    Whether this precedes a more formal military alliance in some way remains to be seen.

    One can see the Chinese perspective on this. Japan to the east, Australia to the south, and India to the west could look a lot like encirclement.

    Will this lead to more trade reprisals against Australian goods? Your guess is as good as mine. But I’m not being blasé about it.

    And yet you wouldn’t think there was overt cause for concern going off the latest Chinese GDP figures. The Chinese economy expanded 4.9% in the third quarter.

    Cue the sceptics and hand wringing. For a decade I have read that Chinese GDP statistics are government figures with no connection to reality. The conceit behind this is that Western figures are more reliable.

    Both are a waste of time — from an investment point of view. You never invest in ‘GDP’.

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    Financial Markets Look Ahead

    You either buy a specific security or a broad exposure to a stock market. The connection between either and the ‘economy’ is tenuous.

    Why is that? One reason is that financial markets look ahead. They’re concerned with tomorrow’s economy and GDP data is lagging at best.

    More importantly, GDP statistics capture production. Financial markets can inflate on credit creation and interest rates. That’s why asset bubbles can happen — regardless of the underlying ‘economy’.

    Is that what’s happening now in the US? In my view, yes. Margin debt — borrowed money to buy stocks — in the US is near a record high. There doesn’t seem to be anything to stop it going on to break the record, either.

    After all, the central banks have now committed to keeping interest rates low indefinitely. Famed US investor Bill Miller says this is the most important market development in 40 years. That’s a big call.

    It gives every punter and hedge fund the incentive to load up with as much debt as you can and chase higher returns in the financial markets. This bubble could brew a while longer.

    What could upset this cosy outlook? I mentioned one yesterday — a surprise Trump win, or deadlocked US parliament could be one. An escalation of the second Cold War on China could be another.

    Otherwise, it’s hard not to reach the conclusion that we’ll go higher in the short term.

    Central banks could easily seek their inflation target without inflating the asset markets. How so? Ban using credit creation (‘leverage’) for financial transactions.

    Since that’s not going to happen, the consequence is predictable. More money is going to flow into asset markets. That includes real estate and stocks.

    We could get some monster moves if this really gets out of hand and turns into a speculative frenzy. Yesterday I mentioned the massive surge of the stock Douugh Ltd [ASX:DOU] once it listed on the market.

    It flamed out yesterday (-32%) as expected. However, there could be plenty more market action like this coming up.

    Already this year we have seen stocks such as BrainChip Holdings Ltd [ASX:BRN], Imagion Biosystems Ltd [ASX:IBX], and Blue Star Helium Ltd [ASX:BNL] explode 1,000% in fairly short order. There are others too.

    The heat is on in the market. You can’t see it going off the movements in the ASX 200 or All Ordinaries. But there’s a riotous party going on in small-cap stocks.

    That doesn’t mean you’re going to catch them all, or even any. And Douugh is a perfect example of how fast these small cap stocks can fall back down. But now’s the time to be hunting these type of moves. Momentum like this is not always there.

    I remember in 2018 when good stocks and good announcements couldn’t lift. There was a general lethargy everywhere. Now stocks shoot up on news that can be flimsy.

    That’s what leads experienced observers to conclude that stocks look ripe for a fall. I’ve had some sympathy for this view since March. Well, now it’s October.

    I don’t know when the party ends, but I’m making hay while it lasts.

    Best wishes,

    <!– [if gte mso 15]> <![endif]–>Callum Newman Signature

    Callum Newman,
    Editor, The Daily Reckoning Australia

    PS: Australian real estate expert, Catherine Cashmore, reveals why she thinks we could see the biggest property boom of our lifetimes — over the next five years. Click here to learn more.

    The post Small-Caps Party like It’s 1999 — The Heat is On in the Small-Cap Sector appeared first on Daily Reckoning Australia.

    Posted: by Daily Reckoning Australia

  • Twenty Seven Co’s Share Price on the up as Rover Potential Emerges

    Former uranium explorer turned gold and base metals explorer Twenty Seven Co Ltd [ASX:TSC] has watched its share price rise after releasing good results from its Rover project in WA.

    The microcap explorer had a turbulent beginning to 2020; however recent results from Rover have begun to bolster the share price.

    ASX TSC Share Price Chart - Twenty Seven Co Shares

    Source: Tradingview

    TSC shares spiked in mid-September when the company announced it would acquire a host of new tenements, including the advanced Mt Dimer gold project to complement Rover.

    At time of writing the TSC share price is up 14.29% to trade at 0.8 cents per share.

    Gold, fresh from the surface

    TSC today release results from the first nine drill-holes from the recently completed 33-hole program at the Harmonic gold prospect at Rover.

    Highlights include:

    • 18m at 1.0 grams of gold per tonne (g/t) from 5m, including 3m at 5.4g/t from 17m
    • 17m at 1.0g/t Au from surface, including 3m at 2.1g/t from 2m
    • 8m at 1.1g/t Au from surface, including 2m at 2.8g/t from surface

    Now, as you can see, these are not particularly high-grade results.

    But they’re solid.

    REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.

    What they lack in grading, they make up for in width. And sometimes broad, average-grade intercepts can be better than narrow, high-grade ones.

    They are also located close to the surface, which is also highly encouraging.

    CEO Ian Warland commented:

    The initial drilling results are off to a solid start, with shallow broad intercepts of gold intersected at Harmonic. These new drill-holes, which build significantly on earlier work, confirm a continuous broad pervasive mineralised gold zone at Harmonic starts at surface and plunges to the south.

    He’s not wrong either.

    Today’s results also complement previous work nicely, just look at some of the past results:

    • 10m at 1.8g/t from 44m, including 1m at 9.2g/t from 46m
    • 13m at 1.2g/t from 58m, including 1m at 11.8g/t from 59m
    • 8m at 1.0g/t from 0m, including 1m at 3.5g/t from 2m

    The similarity between the two sets of results could indicate geological continuity.

    An opinion also held by TSC who said ‘a continuous zone of gold mineralisation is evident which is hosted within the extensive Illaara shear.

    What’s the true value of Twenty Seven Co’s shares?

    If you’re wondering where the TSC share price might be headed, take a look at the figure below.

    Source: Twenty Seven Co

    The Rover project is situated near some pretty big projects, particularly the Penny gold project to the west.

    TSC have only just begun to scratch the surface at Rover.

    While results have been positive, in my opinion we are yet to see results that scream ‘company making project’.

    Assays for the remaining 24 drill-holes, which include specific tests on the down-plunge component of Harmonic, are expected to be released shortly.

    Results to lookout for will be those from the Creasy 1 prospect where previous drilling intersected 15m at 3.8g/t from 49m.

    TSC’s share price could also see a boost from prevailing macroeconomic factors, with Australia tipped to soon knock China off the top spot as the undisputed global leader in gold exploration, mining, and production. In our latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.

    Kind regards, 

    Lachlann Tierney

    For The Daily Reckoning Australia

    The post Twenty Seven Co’s Share Price on the up as Rover Potential Emerges appeared first on Daily Reckoning Australia.

    Posted: by Daily Reckoning Australia

  • War and Peace in 2020 — China vs India, What’s Happening?

    This article is from the Global Times, which is an English-language propaganda outlet controlled by the Communist Party of China. Since the article is propaganda, it is mostly filled with half-truths and outright lies.

    What’s the point of featuring an article full of lies? It’s because the lies themselves give you insights into what the Chinese Communists are thinking and what they are concerned about. The greater the fear, the stronger the propaganda.

    How to Survive Australia’s Biggest Recession in 90 Years. Download your free report and learn more.

    China versus India

    The article concerns recent confrontations between Indian and Chinese military forces in the Himalayas. The border between India and China has never been properly defined, a difficult task in the best of circumstances because of the remoteness, high elevation, and severe weather on the border itself.

    Instead China and India agreed in 1959 on a Line of Actual Control (LAC), describing where their forces are located without necessarily agreeing that the LAC is the real border.

    The LAC understanding was reinforced after a 1962 ceasefire following an Indian-Chinese war, and a 1993 agreement on the non-use of force. The respective armies kept their distance on either side of a kind of demilitarised zone and no shots were fired despite occasional confrontations.

    The agreement has been trampled

    China has advanced troops to areas formerly acknowledged as under Indian control. India has pushed back by advancing its own troops. Shots have been fired and there have been casualties on both sides.

    Now, China is rushing elite troops from Tibet to the Himalayas, and India has mobilised its own forces. I’ve spent time at high altitudes comparable to those at the LAC (about 14,000 feet) and I can attest to the thin air, freezing temperatures, and high winds that are not uncommon.

    This article basically threatens war if India does not stand down. The Chinese say, ‘If India wants war, China will oblige. Let’s see which country can outlast the other.’ This bombast is really a sign of weakness.

    India has much more experience in operating troops at high altitude (partly because it has similar disputes with Pakistan), and India has shorter supply lines (China must reinforce by traversing the entire subcontinent of the Tibetan Plateau).

    Any escalation could have catastrophic outcomes

    It’s important to bear in mind that India and China are both nuclear powers, so any escalation can have catastrophic outcomes. China’s threats, as revealed in the article, are not helpful and not well received in India.

    The world has enough hotspots already. Let’s hope this situation cools down before this confrontation turns into a shooting war between the two most populous nations on Earth.

    Give peace a chance

    Here in the US, at a time when people are absorbed in news of the COVID-19 pandemic, economic collapse, domestic rioting, and the course of the election campaign, it’s easy to lose sight of foreign policy. Yet, traditionally, foreign policy and domestic policy are the twin pillars on which any presidential campaign is judged.

    We can leave the domestic policy debates for another time. But, in the realm of foreign policy, President Trump has been a giant.

    Trump has gradually reduced troop levels in Iraq, Afghanistan, and Europe. He has avoided new wars. Trump has also avoided major humanitarian crises, although he has had to deal with the aftermath of crises in Syria and Libya that Obama precipitated and then left behind.

    Trump has opened the door to dialogue with North Korea and has come down hard on Iranian cheating with regard to the nuclear weapons and long-range missile programs. Importantly, Trump has been a peacemaker.

    Trump’s peace treaties

    In recent weeks, Trump has announced three major peace treaties between former enemies that were negotiated with direction from the US.

    The first was a historic treaty between Israel and the United Arab Emirates. Then came a peace agreement between Serbia and Kosovo, resolving differences that go back centuries. Finally, Trump announced another Arab-Israel peace treaty between Bahrain and Israel.

    These breakthroughs have not gone unnoticed by the world (even if they have been ignored by mainstream media). This article provides details of the Israel-Bahrain accord, but also gives background information on the Israel-UAE treaty and analysis on possible future breakthroughs with Saudi Arabia.

    A boost to Trump’s re-election chances

    As a result of these successes, Trump has received two separate nominations for the Nobel Peace Prize — one from a member of the Norwegian parliament and another from a member of the Swedish parliament.

    We’ll see if Trump wins the Nobel Prize (he deserves to, but there’s a lot of anti-Trump sentiment in Norway and Sweden, and the rest of Scandinavia). There’s no doubt that these achievements will help Trump’s re-election chances.

    According to Professor Allan Lichtman’s predictive model, called ‘Keys to the White House’, an achievement in foreign policy is one of only 13 factors that accurately predict who will win a presidential election. Trump has now definitively turned that key in his favour.

    All the best,

    <!– [if gte mso 15]> <![endif]–>Jim Rickards Signature

    Jim Rickards,
    Strategist, The Daily Reckoning Australia

    PS: This content was originally published by Jim Rickards’ Strategic Intelligence Australia, a financial advisory newsletter designed to help you protect your wealth and potentially profit from unseen world events.

    The post War and Peace in 2020 — China vs India, What’s Happening? appeared first on Daily Reckoning Australia.

    Posted: by Daily Reckoning Australia

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