Gold, T-Bonds, Market Crash!

Bob Moriarty: Well, in some ways you know more about it than I do. We all flew into Sao Paulo, and then we took a two-hour jet to somewhere, literally I never did figure out where we went. Then, we took an hour and a half flight on a small airplane, so you know it's in Para State. If you asked me to locate it, on a map of Brazil within 500 miles, I really couldn't do it. I mean I feel totally ignorant.

But, it's a really interesting deposit. It's a conglomerate deposit, which Quinton Hennigh is easily the world's best expert on. It's interesting to me because I thought I had a pretty good clue as to how conglomerate systems worked. And basically, they got a big plateau, and every creek running off the plateau had been mined by alluvial miners. Barrick Gold came in and said, "Look, there's got to be some gold up there." So, they drilled, and proved up a resource, and determined that was gold and the recovery was economic, but interestingly Barrick walked away.

Tri-Star picked up the property; they have a resource. They know exactly how to drill. It's one of the best teams that I've seen in a company for a long time. They have Brazilian geologists that have strong commercial and technical skill sets, and I was really impressed with the company. Interestingly enough, I was equally impressed with Dr. Quinton Hennigh, because I thought I knew conglomerate systems. He sat down and gave us a 30-minute briefing. I learned a lot of things that I, frankly, didn't know. I participated in the private placement, and I really liked the value proposition of Tristar Gold.

Maurice Jackson: Now, in your opinion, talk to us about the potential size and scale of the project?

Bob Moriarty: Probably 2 to 3 million ounces.

Maurice Jackson: That big?

Bob Moriarty: Yes.

Maurice Jackson: Don't take Bob's word for it. Royal Gold is a stakeholder in Tri-Star (Press Release), which speaks volumes on the opportunity, potential and scale before us. We had an opportunity to interview CEO Nick Appleyard, back in August. It's a really compelling story. You can find the interview on our website, under exclusive interviews, entitled, "Tri-Star Gold Project in Brazil Offers Simplicity, and Potential Scale."

Staying in the Southern Hemisphere, let's visit the Congo, where you just introduced Loncor Resources (TSX:LN)(LONCF). Sir, who is Loncor Resources, and what is the opportunity they present to the market?

Bob Moriarty: Here's what's absolutely amazing, I'm glad you brought that up. Loncor Resources approached me, I had never even heard a whisper of the name, I had no clue as to who they were. I went looking into it, they have an incredibly massive land position, in the Democratic Republic of Congo, the DRC.

Barrick Gold has several gold mines there, in the Greenstone Belt, and across the border in Tanzania. Barrick Gold has some of their other really giant mines. Loncor has, in their wholly-owned properties, resources of about 2.4 million ounces. They've got a joint venture with Barrack, on a big piece of their property, like 3000 square kilometers, which is a really big project. Barrick is funding it to feasibility, they're paying everything. Barrick runs the project, and Barrick spends the money. There are no particular limits on what Barrick can spend, they can spend anything they want to. They've got a drill program that's literally starting right now.

If you look at any stock, you want to figure out what the basement is, what is the lowest price the stock can go to? If you ignored the JV with Barrick, which would be a foolish thing to do, but if you ignored it, you're buying ounces of gold, in the ground, for $19 an ounce, U.S. So, I don't think there's any downside to it. Approximately 70% of shares are in the top three or four shareholders. I think Loncor Resources is a great stock, because if you like gold, and I think after all of the things that I've said over the last 15 years, anybody who doesn't like gold right now is economically illiterate.

Maurice Jackson: You know, you said that lightly, $19 an ounce.

Bob Moriarty: Yeah, yeah. How can you go wrong? At the stage they're operating, they should be getting $50 or $60 bucks an ounce.

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