Source: Bob Moriarty   02/07/2022

Bob Moriarty of 321 Gold discusses the “one game in town” which is gold, silver and resource stocks. Here’s why to pluck them from the tree while they are still low hanging.

I have commented for months that the quality of junior exploration companies today is far higher than I have ever seen. Every time someone comes out with more brilliant drill assays I think to myself that I just have to write them up. But there are far too many great stories. If you don’t have a handful of these companies in your portfolio, you risk being caught out at the airport when you ship finally docks.

All of these companies are cheap. Most are absurdly cheap and pretty much being ignored by retail investors. Once the Fed begins to tighten and interest rates shoot higher, bonds are going to be crushed. The overall market is already tanking and the clipto currencies are going to fade away.

That only leaves one game in town and that is gold, silver and resource stocks. Pluck them from the tree while they are still low hanging.

Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF;FSE) put out a press release a just under a month ago announcing drill results from two-dozen holes. Every single hole hit. It was a maiden program of just over 5,330 meters.

The average of all twenty-four holes was 4.35 g/t Au and 105 g/t Ag worth $331 a tonne. The stock as gone from $.115 to as high as $1.62 in the past two years.

Goliath has options on a total of four different projects within the Golden Triangle calling for cash payments of $2.128 million and $4.29 million in exploration expenses. The agreement on the porphyry project, the Lucky Strike property has been modified so GOT now owns 49% of the property and can earn the remaining 51% by spending $5 million in drilling prior to the end of 2029.

The Golddigger project was the project drilled this past year with all twenty-four holes hitting economic gold. The Surebet Zone is a newly discovered high-grade shear zone extending over a 1 km strike and 1.1 km down dip. Plans for the 2022 drill program are in progress. As of the end of September the company still had about $2.7 million but a private placement will almost certainly take place this spring.

With a 100% hit rate at Surebet the market cap of the company is about $46 million. Because the option agreements are so convoluted, it’s hard to figure out just what the company should be worth but Golddigger looks like a sure bet at Surebet.

Eskay Mining Corp. (ESK:TSX.V; ESKYF:OTCQB) continues to deliver high-grade VMS intercepts from their TV and Jeff deposit in the Golden Triangle. Still, they have only gotten back fifty-six out of ninety-eight holes. Like so many other companies in Canada they have been crippled by the lack of timely results. In any case two weeks ago ESK released some assay results from the TV deposit including a massive 2.35 g/t Au Eq over 238.87 meters.

That’s $136 rock and just one of dozens of incredible intercepts. Eskay has a big VMS and it’s going to be giant by the time they get through drilling it. Because the assay labs are in chaos still, the assays that were released were not necessarily the first ones drilled. The assay labs are still just picking up bags and doing assays. Expect another forty-two holes to be released soon with similar grades and length.

Eskay will need to do a private placement soon. At the current share price, the company has a market cap of $443 million. I expect the share price to move higher as the remaining forty-two holes are announced.

Eskay has the goods and will be a billion dollar plus company when the market wakes up.

Pacific Ridge Exploration Ltd. (PEX:TSX.V) announced another blockbuster hole after a two-month delay since the last blockbuster hole thanks to the Canadian labs. Hole 36 released two months ago on December 1^st showed an incredible 437 meters of mineralization.

Remember with a copper-gold porphyry tonnage is far more important than grade.

The company followed this up last week with an even more incredible 566.7 metres of $45 rock in hole 37. Of course within the 567 meters of mineralization there were much higher grade intercepts but big projects demand tonnage. That figure included 316.7 meters of 1.17 g/t AuEq starting at surface.

Pacific Ridge drilled a total of three diamond drill holes in their 2021 season. Hole 38 remains to be released and it looks from the technical data to be the best hole of all.

Since the company appears to be drilling down the deposit rather than across the deposit it’s hard to guess how large it might be. Taking very conservative numbers, I would suggest they have pretty much defined 50 million tonnes so far. That is not big for BC, you really want 200-500 million tonnes of similar grades. But with 55 million shares outstanding and a price of  $.48 you have a market cap of around $26 million. That suggests a lot of upside potential.

It’s not possible to guess how much longer it will take the labs to catch up but with all the delays in getting assays back, at least the company isn’t going to have to endure 6-8 months of no news. The company still had about $1.5 million in hand at the end of September but look for them to do a capital raise soon.

Eloro has three drill rigs turning at their Iska Iska silver/tin deposit in Bolivia. The company has competed over 42,500 meters of drilling in seventy-six holes. At one point a few months ago the company had over 30,000 assay results pending. Obviously they have caught up a lot but the number of holes and grade is confusing.

Eloro has a giant system. I believe that after million of dollars of drilling it will be in the +2 billion tonnes range of $100 rock but the market is patiently awaiting an initial 43-101 scheduled for Q2 of 2022.

Today’s price gives the company about a $222 million market cap. When the market understands just how big the deposit is and how rich, the price is going to go up a lot.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) is yet another junior totally screwed by the Covid stupidity. The company has a 100% owned alkaline gold system in Fiji named the Tuvalu Gold project with an existing 1 million ounce gold resource and a mining permit.

Unlike everyone else in the business, LIO has its own lab so can post assays shortly after drilling. Alas the technical and exploration side was being run out of Perth in Western Australia. No one could get into Fiji or get back into Australia so the Covid hysteria pretty much stopped progress in its tracks for the best part of a year.

Luckily the company did a major financing to raise just about $60 million in August of 2020 before the world turned totally stupid. Lion One has six drill turning and as of late last summer had brought in professional staff to supervise on site.

Tuvalu is a massive system. Lion One is in the process of setting up a processing plant and hiring contract miners. Dates have not been released yet but the company still has about $48 million in working capital to help get the project into production while six drills continue resource expansion.

All of these companies are advertisers on 321gold.com. I have participated in private placements and picked up more shares in the open market so I have to be considered biased. Do you own due diligence.

Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF;FSE)

GOT-V $.72 (Feb 07, 2022)

GOTRF OTCBB 56 million shares

Goliath Resources website

Eskay Mining Corp. (ESK:TSX.V; ESKYF:OTCQB)

ESK-V $2.78 (Feb 07, 2022)

ESKYF OTCQB 163 million shares

Eskay Mining website

Pacific Ridge Exploration Ltd. (PEX:TSX.V)

PEX-V $.46 (Feb 07, 2022)

PEXZF-OTCBB 53.9 million shares

Pacific Ridge Website

ELO-V $3.65 (Feb 07, 2022)

ELRRF-OTCQX 62.6 million shares

Eloro Website

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE)

LIO-V $1.09 (Feb 07, 2022)

LOMLF OTCQX 156 million shares

Lion One website

Bob Moriarty
President: 321gold
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Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Disclosures:

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. The articles mentioned are advertisers on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.

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