Why A Fed Rate Hike Could Be A Blessing For Gold Prices: Brien Lundin

TGR: Balmoral is in the midst of a large drill program on the Detour Trend project in Quebec. When do you expect to see results there? What's it going to take to make an impact on the stock price?

BL: Balmoral will be producing news for a long time on both gold and nickel targets, but I don't know that any particular news release is going to have a huge impact on the share price. This is one of those companies that I recommend investors buy and forget it, then check back in a couple of years, because I think Balmoral is simply doing the right thing. It has an extraordinary exploration team that has been very successful with other projects throughout their careers. It has two premier projects that I think are just going to continue to get larger over time.

TGR: Gold Standard Ventures recently announced its drill results on its property in the Carlin Trend in Nevada. Are you expecting more catalysts from the company this year?

BL: Yes. Gold Standard Ventures is a smart money play. The people behind the company have a lot of experience in Nevada and have demonstrated their confidence by buying the stock. The company recently took on the Pinion gold project, and it is moving that toward development, which was a wonderful move. This company is destined to go far in the next metals rebound.

TGR: What is the next catalyst for Rye Patch on its Carlin Trend Patty project?

BL: That is a high-potential exploration project. But more importantly to me, a lot of people are not giving Rye Patch credit for its progress toward production. It also benefits from royalty income from its agreement with Coeur Mining Inc. (CDM:TSX; CDE:NYSE), which essentially means it can keep progressing toward production without any share dilution. Rye Patch is a great company for investors who want to buy and hold. It affords exposure to an economically sound project with proven resources. Investors just have to wait for the market to come back to reward them.

TGR: Kaminak recently reported drill results from the Coffee project in the Yukon. The market didn't really notice. What did you think of the results?

BL: The market might have greeted the results with a yawn, but to be fair a lot of the results were from infill drilling. Plus, there's apathy across the market right now. It really takes some exceptional drill results to get the market's attention these days. Even then, sometimes a company will put out a great result, get large-scale trading volume, and people will just use the opportunity to exit the stock.

Kaminak is another one of those buy-it-and-forget-it companies. I believe it is going to be one of the first companies to be taken out by a major when the metals markets come back. The Coffee project has wonderful economics and a management team that, again, always does the right thing. All the i's are dotted and all the t's are crossed. Senior companies can be very confident that they're not buying a project with any surprises. They'll know what they're getting, and the numbers really look good.

TGR: You recently added Auryn to the portfolio. Was that based on the strength of the resource, the management team or both?

BL: Quite frankly, the management team. I couldn't bring myself to recommend the company when it had no project whatsoever, but I was thinking about it because the management team has a track record that's unblemished by failure of any kind. They were behind the Keegan Resources Inc. (KGN:TSX; KGN:NYSE.A)/ Asanko Gold Inc. (AKG:NYSE.MKT; AKG:TSX) company and its Esaase project with its discovery of over 5 million ounces of gold. In the middle of a down market, they were able to have a success and have their next venture, Cayden Resources Inc. (CYD:TSX.V; CDKNF:NASDAQ), which sold off last year to Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) at a nice profit for all the shareholders. Auryn is their next company and, I believe, their next big success. The Committee Bay gold project is interesting. Auryn's management was so excited after doing initial due diligence that it wasted no time in consolidating their ownership over the project. I have great confidence in the management team. If they like the project, I like it. I think they're going to make a big success out of it as they have in every previous company.

TGR: One more in that same advanced boat is Lion One, which released its PEA on the Tuvatu project in Fiji last month. What did you think of the report?

BL: It exceeded my expectations. It came in with great economics and exceedingly low capital costs to get into production. Not only is the project outstanding, so is the management team. Wally Berukoff runs a very tight ship, and he has put together a team that I have complete faith will be able to bring this project into production. So when the next big turn in the markets comes, Lion One will either be in production or on the verge of production, and would seem to be a prime takeover target for the majors. I know that Wally Berukoff will get full value for it.

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Disclosure:

1) JT Long conducted this interview for Streetwise Reports LLC, publisher of  more

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