“URAGOLD,” “CARTIER RESOURCES,” PELOTON MINERALS”

Our cyclical and fundamental research suggests a continuing long term bull market for gold and many of the mining stocks.  We expect “pit stops” to occur often along the way. We note that many gold mining stocks have bottomed since July 2013 as accumulation has been continuing. Many mining stocks have rocketed up 300% to 1500% despite few if any recommendations coming from the major banks and brokerage houses; they rarely fail to completely miss the gold market. Few investors have noticed that!

URAGOLD, “UBR” .24 cents, was basically a Quebec based gold exploration company focusing on a previously active mining area in the Appalachian region of Quebec. At the same time Uragold had graphite deposits that management wisely decided to sell to generate cash. In 2012, we had recommended UBR when it was selling at .04 cents. Our analysis indicated that it was overlooked and undervalued and merited investment consideration; it did!

At present, it has moved up very quickly in price and we believe that corrections are to be expected. The bottom line will be the results of the further testing which will now be done In the United States. We do not know the schedule for the tests and we have not asked the management. Suffice it to say that when the next set of results are available, shareholders will be informed. At present, it is unfair to even venture a guess.

About a century ago, its Beauce gold property area was a successful placer gold deposit in Québec. The company will be soon spinning off the Beauce gold project which in itself may offer excellent upside potential. But most importantly, Uragold owns exceptionally large deposits of high purity Quartz in Quebec which is its most newsworthy and recent focus.

The ongoing testing (for purity after treatment) has been successful and confirms the production of high purity silicon metal thus far. However, further testing is required. The objective is transforming Uragold’s  Quartz into Solar Grade Purity Silicon. Thus far, the results done in a lab in Quebec are excellent. We cannot put a timeline on that. We give management a great deal of credit for what they have accomplished.

*We note that Uragold has officially changed the legal name of the corporation from Uragold to HPQ Silicon Resources Inc.

RESSOURCES CARTIER, “ECR” .14 cents, has four key projects of interest that contain conservatively   444,889 ounces of historical gold resource estimates already with the potential for more.  Cartier officers’ and directors’ share ownership is large with the president having bought shares over the last four years at prices ranging from .06 cents to .41 cents.

The Cartier’ management and directors are not merely “bottom fishers” of Cartier own stock, moreover they have a history of continually buying Cartier shares. We monitor officers’ and director’s’ buys and sells on a daily basis and have yet to find any officer and director selling personally owned Cartier shares.

We know the management well and can say with confidence that it is of high quality, experienced and    focused. Cartier has no debt and currently has over $1,500,000 in cash. We have followed Cartier for six years and are very satisfied by its fundamental progress in what has been a very difficult junior gold market……..very difficult.

The company has been acquiring resources in the present “buyers’ market.” In 2013, Cartier acquired the Chimo mine which had a successful history of gold production; Cartier management believes it offers exceptional potential for further production. Cartier paid a mere $261,000 for Chimo in 2013. In view of the prospect to restart Chimo successfully, it could be the “dark horse” of Cartier’s projects.

In the past, the Chimo mine produced 379,000 ounces of gold. The low price of gold in 1997 caused its closing-not lack of further mining potential.  CEO Philippe Cloutier emphasizes that a priority is acquiring high grade assets at low prices. It is an approach that we find sensible and practical in today’s markets.

With the weakness in the gold and commodities markets, management sees quality assets available at historically low price levels. The management recognizes the difficulty for juniors in obtaining financing so it is taking a very conservative approach in capital expenditures. Their primary focus is to enhance the asset value of the company for shareholders.

Valuation? Our analysis suggests that Cartier is exceptionally undervalued based upon its projects without considering exceptional exploration potential. Our grave concern is that a company could attempt to acquire Cartier Resources (Ressources Cartier) while it is literally “on sale” based on the value of its projects.

 

PELOTON MINERALS CORPORATION (formerly Montana Gold) “PMC” .12 cents, is a dark horse, not yet noticed. We met management in Montreal last year and have spoken with them several times since. This new company is focused on their project in Nevada with another project in Montana and a recently acquired project in Ontario. Literally, the management in putting the ingredients together. It is early but these are some of the key points.

1. The Nevada project is called the “Golden Trail” which has been called the “New Carlin Trend.”
2. The surface survey is complete and Peloton has the required drilling permits and the funds to start the first part of the drill program. I expect drilling to commence on the Nevada project within weeks.
3. In Montana, Peloton’s Silver Bell Mine and St. Lawrence Mine were in production in the early nineteen hundreds, old smelter reports indicate the potential of high grade deposits of gold. The St. Lawrence mine produced again in the 1960’s and in the 1970’s.
4. Management owns 16% of the outstanding shares, another 24% of Peloton shares are closely held in Canada with 23% owned by European investors.
5. The management is experienced having decades of mining experience. Above all, they are extremely conservative with expenses recognizing the difficult times that the junior mining sector has endured.
6. In 2015, Peloton’s officers and directors agreed to write off 100% of the accrued and unpaid fees and salaries owed to them by the company. That action reversed $501,612 (U.S.) from payable and accrued liabilities. This is an extremely rare occurrence and indicates to us, that the primary focus of Peloton’s management is the overall success of Peloton Minerals.
7. In Nevada, Peloton is in one of the highest production gold mining regions in the world.                                                        “Final Comment”                                                                              Overall, our analysis of Peloton Minerals suggests that it merits attention.