IKN #384Premium

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The IKN Weekly
Week 384, September 18th 2016
Contents
This Week: In today’s issue, FOMC time, The drugs don’t work.
Fundamental Analysis: NOBS report on Cordoba Minerals (CDB.v).
Stocks to Follow: Overview, Cordoba Minerals (CDB.v), Rye Patch Gold (RPM.v), B2Gold
(BTO.to) (BTG), Sandstorm Gold (SSL.to) (SAND), Atico Mining (ATY.v), Miranda Gold (MAD.v),
Continental Gold (CNL.to), Wesdome Gold (WDO.to), Riverside Resources (RRI.v), Regulus
Resources (REG.v), Starcore Intl (SAM.to).
Copper Basket: Overview, Capstone Mining (CS.to), Copper Mountain (CUM.to).
Low Cost Producer Basket: Overview, Agnico Eagle (AEM), Sibanye Gold (SBGL), Barrick
Gold (ABX).
Regional Politics: Argentina: The Veladero mine causes political pain, Ecuador has a mining
conference, Peru: Locals to protest against Shahuindo this week, Chile Peru and copper, Chile
rhenium, Peru says Peru is the fastest growing South America nation and it’s due to mining,
Dominican Republic: Pueblo Viejo 75 years, Argentina: Chubut again.
Market Watching: Denver Gold and Beaver Creek Show presentation links, High volumes
Friday, Gran Colombia Gold (GCM.to) forgetting details, Starcore International (SAM.to)
financials and news.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In today’s issue
• Cordoba Minerals (CDB.v) is our new purchase and it’s about time, too. That’s today’s
main fundies section, but it’s not a heavy heavy analysis, more like an opening salvo.
• The reaction to the second pollution event at the Barrick Veladero mine in Argentina
was muted up North, but it’s major bad news for the whole mining sector in that
country, the social optics are awful. Read all about it in the main ‘Regional Politics’
story.
• Starcore (SAM.to) delivered both quarterly results and an interesting presentation at
the Beaver Creek show last week. That’s in ‘Market Watching’.
• Copper’s beginning to get interesting, the bottom held and the buyers came back.
Unsurprisingly we cover that in ‘The Copper Basket’ and there are even a couple of
suggestions for fliptrade vehicles (for those braver than I, at least).
FOMC time
Will they or won’t they, what’s the special wording going to look like, oh, isn’t this fun? Yes
indeed, the main macro event of the week ahead has Janet & Friends deciding not to raise
rates and then blather a little on warnings that they really might do that soon, pretty promise.
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Such is my contempt for this Kabuki Theater*these days. And for what it’s worth, aside from a
few quick spike shifts at the time of the communique on Wednesday I doubt there’s going to be
much effect on gold, the “non-raise today, raise in December” is baked in.
Which reminds me, why are all the goldbugs so gloomy again? The amount of negativity I’ve
picked up about the PM markets has been impressive, even more so when we consider that the
losses in the main issues (GDX down 1.7% on the week, GDXJ down 1.2% on the week, GLD
down 1.3% on the week) haven’t been much to worry about. Market sentiment matters not a
jot in the long-term, but in the near-term it does. The world has come down from its full bull
gold sugar rush and for my taste it’s gone equal and opposite over-depressed. We tend to like
oversold markets, especially when we’re on the cusp of a Fed that won’t raise rates this week.
*Copyright and all rights reserved Gary Tanashian
The drugs don’t work
But if you want a show, just let me know
And I’ll sing in your ear again
The Drugs Don’t Work, The Verve, 1997
I note that Golden Predator (GPY.v) has been subject of a large-scale promotional pump as well
as a series of marketing-type news releases from the company on its 3Aces project in Yukon.
Agora/Stansberry/Byron King, Thom Calandra and others have been waxing lyrical about this
“next (insert name of big gold mine)” and its enormous potential, as well as the breathless talk
of visible gold. I also note that First Mining Finance (FF.v) has paid yet another large tranche of
cash to promo pump site ‘Future Money Trends (this time $250,000 plus a bunch of options)
and unsurprisingly, the pump on that one has again been relentless.
I also note that neither stock price has managed to make its promo pump job stick this time,
they’ve both seen selling to below the pump D-Day level in the last two weeks. This is a good
thing, at some point the “optionality plays” (aka overpriced bags of worthlessness) like Corvus,
International Tower Hill, Vista, Chesapeake, Brazil Resources and a whole host of other names
will come back down to earth, the pumps run dry, the drugs don’t work, the dumbest of the
dumb money gets stung and runs away. The first stage of the return to something approaching
sanity is the lack of oomph that results from the “buy this cos I say so” paid pusher brigade, we
may have seen that happen in September.
Fundamental Analysis of Mining Stocks
Today we open up coverage on our new purchase, Cordoba Minerals (CDB.v).
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NOBS update report dated September 18th, 2016
Cordoba Minerals Corp. (CDB.v)
Company Overview
Cordoba Minerals Corp. (Canada: CDB.v, USA OTC: CDBMF, Frankfurt 7C6.f) is an exploration
stage junior mining company operating in Colombia. Its flagship is the San Matias property in
the North of Colombia which includes its main current target, the Alacran copper/gold project.
Current share structure is as follows:
Shares out: 86.82m
Options: 5.437m
Warrants: 15.15m
Fully diluted shares: 107.407m
Current share price: C$0.85
Market Cap: C$73.8m
Approx working cap per S/O: 1.3c
All prices are in Canadian Dollars unless stated. Forex U$0.80=CAD$1
NB: As CDB reports in Canadian Dollars that is today’s default currency When US Dollars are mentioned
they’re marked “U$”.
Preamble
As per the Flash update of Thursday (see Appendix 1) I’m now long Cordoba Minerals (CDB.v)
after having debated over buying into the stock since December 2015 (and watching the cheap
prices disappear in front of my eyes while doing so).
Today’s NOBS report on CDB is not going to be a deep dive into its financials, nor am I going to
pretend to be the geologist that I am not and predict the future of the San Matias concession in
Colombia to the Nth degree. What today’s note sets out to achieve is to open play on what I
hope will turn into a long-term position, one that evolves and gets more detailed with time. What
we’re about today is to explain why I’ve decided to take a speculative opening position in CDB
and that’s more about its structure, its people and its promise. In other words I’ve decided to
buy into the story they’re offering and the main reasons for that are:
• I want more exposure to copper in my portfolio and I’ve been looking around for the
next one to add to the positions in Regulus (the main one and will stay that way) and
Atico, plus the derived exposure via Riverside and Lara (even Miranda and Sandstorm
at a pinch). With copper showing the right signs of life and the bottom holding at “above
$2/lb”, I think it’s the right time.
• San Matias is already big, it could be massive. We should soon get a 43-101 43-101
resource on its central Alacran target, part of the greater San Matias concession area.
But it’s the area play potential that’s most intriguing and that was hammered home in
the presentation last week by company CEO Mario Stifano. The sky’s the limit on its
potential and though I’m clear about the risks and the potential for disappointment, the
story it sells holds water and makes sense.
• CDB is set up in the right way for retail investors like me. At first I harboured doubts
about the intentions of Robert Friedland and thought he might be trying to muscle in on
the smaller CDB for his own benefit and to the detriment of other shareholders. I’m
confident now that my original position was wrong and that CDB as a corporate
3

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structure is a good one for smallfry such as I to ride. What’s more, it offers a strategic
advantage to small retailers that may soon disappear.
So on with the show.
Officers and shareholders
CDB the company is headed up by President and CEO (but not a director) Mario Stifano, who’s
from the financial side of the mining business, comes with a strong CV, has forsaken plenty of
other top level employment opportunities in order to run with his dream project and is the driving
force of the company. The second most important player is somebody with no official role at the
company because with over 37% of shares out and with plenty of his key people occupying
roles at both officer and director levels, Robert Friedland casts a long shadow over CDB. As for
Stifano’s incentives, apart from his salary (he’s on $350k/year) as at this weekend he owns
853,076 shares and 1,775,240 options (400k of those at the recently awarded 85c strike, but
most are much cheaper with strikes between 12c and 21c...those are real money).
One of the things that impresses about the set-up at CDB is the names that are involved.
Friedland has the type of Rolodex that includes top level geologists, but even then they wouldn’t
be worked at or for CDB if there were nothing to do. Names such as Gerald Ray (one of the
best in the world on skarn mineralization) and geologist/ops manager Charlie Forster (one of the
key figures in the Friedland success in Mongolia) are either working inside CDB or have done
consultancy work for the company. These are successful professionals in late career stage,
they have no need to work ever again if they don’t want to and can pick and choose what they
do. Seeing names like that connected with CDB is no small matter.
The HPX Joint Venture deal
The major event that shifted the CDB share price through the gears happened in late 2015
when CDB signed a JV deal with High Power Exploration (HPX)*, the private minerals
exploration company owned by Robert Friedland, a name that needs no introduction on the
pages of a publication such as The IKN Weekly. The JV deal looked a bit messy for a while,
because of the way the Alacran section was folded into the the larger San Matias concession
earlier in the year, plus the way Friedland bought into Alacran before it was bought in turn by
the CDB/HPX JV, plus the shares Friedland has bought in CDB via a couple of different routes.
But that’s now all cleared up now and the structure is fairly straightforward.
• HPX has already earned into 25% of San Matias.
• It’s now spending $10.5m to bring its earn-in up to 51%. It has three years to do that but
that’s a moot point, it’s going to get there with a year and a half to spare thanks to th
current 10,000m drilling program that just got bumped up to 20,000m, plus other
expenditures.
• The final phase of the earn in is for HPX to fully fund and deliver a feasibility study on
San Matias (presumably on the most advanced Alacran target) at which point it earns
into 65% of the project.
If you add in the 37.3% of shares Robert Friedland owns in CDB, it works out that Friedland via
his two holdings would own around 74% of the whole San Matias concession if the feas study is
duly delivered. Meanwhile (and this is the thing we like) CDB gets to be carried for free all the
way to the Feas Study level.
What HPX bings to the table is expertise and know-how on discovery of large mineral deposits
with previous successes including Voisey’s Bay, Oyu Tolgoi and Kamoa (the IVN.to asset) and
Platreef, all world-class sized and discovered using its proprietary ‘Typhoon’ IP system. But
HPX also has the necessary knowledge to take a discovery and develop it into an advanced
stage project, hence the feas study stage of the earn-in.
*Not High Pressure Exploration
The San Matias project
Now for a quick look at the main event and here’s a map ripped from the August 2016 corporate
presentation that gives the overview. CDB is quick to point out that infrastructure needs (power,
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transport, water, labour) are all optimum and as it’s a region with working mines and at sea
level, permitting is less of a problem than in many other parts of Colombia.
As you can see, the current focus of attention, the Alacran target, is only one small part of a
larger land package and in the presentation on Thursday this was one of the points that CEO
Stifano came back to on several occasions and in several ways. But the above isn’t all, this is a
most impressive visual taken from the Beaver Creek presentation last week:
Not only does CDB have the pink shaded territory locked up, it has virtual control over the light
blue shaded areas that are officially concession applications but in effect and under the
Colombia concession rules already part of the company land package. CDB holds a
commanding land position and as the starred target marks demonstrate, the JV has already
generated a whole bunch of new targets for exploration.
One of the things that most impressed me during the presentation last week was this, along with
the way in which HPX isn’t there just for the most advanced Alacran project, which is big
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enough (see below) but might turn into a small part of the whole. HPX is there because
Friedland is after another world-class size discovery and by buying CDB today, we get to ride
on his coattails at a very cheap cost (arguably free, considering what we already know about
Alacran).
A look at CDB financials
If this isn’t the most straightforward financials overview on a company I’ve written in a NOBS
report, I’d like to know which one it is. Due to the free carry over the next years by HPX, plus the
low burn rate for internal matters at CDB (CEO Stifano said it was around $100k per month all-
in, that sounds about right) the quarterly operations numbers at CDB are of little consequence,
all we really need to know is whether it has enough liquidity to keep its own offices in order
while HPX picks up all the big bills. So balance sheet stuff only this week, it’s all we need
Assets (below left) are nearly all of the fixed variety with its mineral assets carried at around
CAD$48m, give or take the quarter and the forex. To the right is a closer look at cash treasury.
CDB: Cash treasury 4
3.5
3
2.5
2
1.5
1
0.5
0
Back in 2015 before the deal with HPX was structured, CDB had a higher burn rate as it
stumped for expenses at San Matias but as soon as the deal with HPX kicked in the need for
cash to cover explorations diminished. These days
CDB has covers office and that’s about it.
Liabilities (right) fluctuate a little due to the way the
JV is set up, both companies go about their
business and run up bills, than HPX reimburses
CDB at a later date. One side of that equation
comes out as “due to related third party” on the
liabilities (the other gets buried in Other Current)
but as that is racked up then paid off by HPX over
time it makes no odds at all What matters is
“accounts payable” and they’re kept tiny.
Working capital is as seen right. Again,
liquidity looks as though it’s a problem but
now with that free carry on San Matias to
feas study level, CDB really doesn’t need
much cash in the pot. With the reported
$100k/month burn rate and the evidence of
this chart, we could expect a small raising
in CDB at some point in the future just to
top up treasury and keep liquidity in the
right place, but small would be the keyword
and my best guess would be something like
4m shares or $3m in cash...perhaps $5m
maximum. Another potential source of
funds are the eventual exercising of options
and warrants and all but the last tranche are well in the money.
6
41q4 51q1 51q2 51q3 51q4 61q1 61q2
CDB: Assets Breakdown per qtr CAD$ 60
55
50
45
40
35
30
25 20
15
10
5
0
source: CDB filings, IKN ests
41q4 51q1 51q2 51q3 51q4 61q1 61q2
source: company filings, IKN ests
srallod
fo
snoillim
fixed other current
cash
CDB: Liabilities position 4
3.5
3
2.5
2
1.5
1
0.5
0
41q4 51q1 51q2 51q3 51q4 61q1 61q2
$m
due to related party
a/c payable
source: company filings
5 CDB: Working Capital per qtr
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
41q4 51q1 51q2 51q3 51q4 61q1 61q2
source company filings, IKN ests
srallod
fo
snoillim

,
The final financials chart for today is shares
outstanding and it’s the only one that’s 100 CDB: Shares Out
vaguely interesting. We see that prior to the 90
HPX JV deal CDB had around 60m shares 80
70
out, then came the HPX deal and part of that
60
were the couple of large buy-ins of stock by
50
Friedland. That’s put us up to today’s 86.82m 40
number. We may get a little more dilution from 30
1) the making whole of options/warrants that 20
10
are well in the money and 2) that potential
0
small financing t top up cash levels, but CDB
has no further need to run big money raises
for the next few years and I don’t think we’ll
see the count go any further than 110m
maximum, in fact 100m is about the natural limit. This is one of the things I really like about
CDB’s prospects, as asset valuation upside kicks in as Alacran/San Matias advances over the
next two or three years, that asset upside isn’t going to get diluted away by incessant equity
financings, it gets pushed straight into share price upside.
The bottom line to the CDB financials: Couldn’t be simpler, in solid shape. Maybe a little short of
treasury cash for its own needs right now but that’s a minor thing.
Last week’s presentation
I watched the Mario Stifano presentation last Thursday on the live stream from Beaver Creek
and as mentioned in the Flash update that day, I was so impressed I finally decided to pull the
trigger on this trade. You can watch the recording of the show on this link (1) and you can also
catch the latest corporate presentation from this link. I’ve already incorporated many of the
points made by CEO Stifano into the analysis sections above but I still urge you to watch the
recording as the compelling nature of this exploration story really shines through. On revisiting
my notes of the presentation I’d like to add to what’s been written above by mentioning three of
the things Stifano highlighted.
• I liked the story of how Stifano got Friedland involved in San Matias. They met in an
elevator at the 2014 BMO conference, he pitched him using an airborne IP map he had
on hand and said he thought he had one of the best undiscovered copper deposits in
the world, got him interested and it went forward from there. And Stifano never stops
emphasizing the “Multiple Mineralization” nature of San Matias and how Alacran is an
identified skarn but what they’re going after now is the larger porphyry deposit they think
is in the area. In fact there may be more than one of each, according to the world-level
experts that have consulted on the project. Although Alacran is big and interesting, it’s
clear that Friedland came in on the deal for the Tier One World Class potential size and
the “multiple mineralization” could offer.
• The whole land package and tying up of the district makes a lot more sense now that
Stifano has expounded on it. In basic terms, they spent two years consolidating the land
package and locked up the surrounding area before releasing the first drill results to
make sure the majors and large copper concerns didn’t poach away concession space
first. Now that they’re the only land game in town, those interested will have to come to
them, CDB won’t need to negotiate with neighbours.
• He makes a great point about the upcoming 43-101 maiden resource for Alacran. Until
that is published, CDB onlt has a historic level resource and is therefore off-limits as an
investment to most fund and institutions. Once the company has a 43-101, instos etc
can start building share positions if they so desire which means that as from 4q16 we
can anticipate stronger demand for shares. Here is one of those rare occasions in which
being retail player works in our favour.
And on the subject of the Alacran 43-101, as it’s likely to be the main catalyst for the stock price
in what’s left of 2016, let’s try and get a handle on what we can expect.
7
41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2
source: company filings, IKN ests
serahs
fo
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Making a SWAG* at the upcoming Alacran 43-101 resource
We know the non-43101 compliant historical resource at Alacran runs to 0.6% copper and 0.4
g/t gold and we know that’s already expanded from the drill work done around the historical
holes by CDB. We also know that the original plan for a maiden 43-101 compliant resource at
Alacran was for the publication to come this quarter, 3q16, but now the company wants to add
in more holes and will wait until mid-4q16 before announcing a resource.
That last bit is my idea good news. It means of course it is going to include the two holes that
struck solid returns East of the previously known mineralization as announced in August. It’s
also a fair guess that the holes being completed/assayed right get included, which could bump
things up even further. So with all that in mind, what kind of number could we expect from the
maiden Alacran resource (which will almost certainly be a mostly-inferred level, but you have to
start somewhere)? What follows is only educated guessing but it’s shaped to give us an idea of
what Alacran on its own, without the help of any new discoveries around it, could offer us.
First we need to consider metals grades. I’m going to take into account 1) the historic 0.6% Cu
and 0.4 g/t Au grades at the deposit then 2) note that the assays from the hits to the East of the
previous drilling are long but they’re slightly lower grading (the August assays included hits of
224m at 0.5% Cu and 0.17 g/t Au, 171m at 0.51% Cu and 0.18 g/t Au, 160m at 0.47% Cu and
0.11 g/t Au, 109m at 0.51% Cu and 0.31 g/t Au) and 3) take a conservative view of things. That
leaves me assuming an overall average of 0.5% copper and 0.3 g/t gold for the Alacran 43-101.
Next the size. This one is difficult because CDB/HPX is only now discovering open-ended
mineralization, but we know that it’s moving East successfully and we know there’s already
1.3km delineated along strike. By taking a leap of faith on width, I’m going to assume deposit
with dimensions of 1,300m by 600m by 100m. If we then assume a reasonable 2.8t/m3 (tonnes
per cubic metre) specific gravity for that rock and punch a few buttons on a Casio pocket
calculator, it comes out at 218 million tonnes. Then put the two sides of the calc together and:
218m tonnes at 0.5% Cu and 0.3 g/t gold = 2.4Bn lbs copper and 2.1m oz gold
If we assume that goes to feas level, 35% of that is owned by CDB. That’s 840m lbs Cu and
735,000 oz Au which isn’t bad for a CAD$74m market capper ☺ and even better for a
CAD$74m market capper that’s being carried all the way to that feasibility study by its JV
partner. As a final step, if we lump the copper and gold together and say it’s a 1.2Bn lb CuEq
resource, it’s valued at $0.05/lb CuEq today. Not the cheapest in situ resource out there today,
but again there are few that are being carried to feasibility stage for basically zero charge and
this doesn’t take into account any upside from discoveries at future targets in San Matias.
Yeah, but is it economic? Good question. The answer is of course “we don’t know yet”
because there are a mountain of cost and revenue variables between us and a working mine at
Alacran, not to mention the many years before any machine might be built, but we can play with
numbers again to get a general idea. As for very basic economic parameters on Alacran it is of
course way too early to get specific but we can run some numbers based on typical industry
assumptions of price, cost etc. If we assume reasonable metallurgy and recovery rates of 90%
for the copper and 70% for the gold, one average tonne of that rock at current metals prices (Cu
U$2.10/lb and U$1,300/oz Au) is worth U$29.61 ($20.83 for the copper, $8.78 for the gold, you
see that this a copper deposit with a gold kicker and not the other way around). In other words,
dig that out of the ground and process it for U$12/tonne and there’s gross margin to play with
already, even at the current low-end copper price.
And to take the conjecture one step too far and assume 1) my 218m tonnes resource number is
correct and 2) the thing becomes a mine and is mined out, that’s U$6.45Bn worth of gross
revenue and U$3.84Bn of margin, so spend a billion to build a machine and there’s still money
there. And to repeat ad nauseam CDB gets 35% of all that to feasibility stage, even if the
multiple other targets in the district-sized concession owned by CDB comes up with nothing at
all. Which is unlikely.
*Stupid Wild Assed Guess
8

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Conclusion and recommendation
I’m buying into a story here, no more and no less. Yes indeed, I confess without shame that
cynical old me has been swayed by the rhetoric of a junior mining company CEO. But it’s no
ordinary story either, it’s the right type of people in the right type of company structure doing the
right type of things to the right type of mineral exploration concessions, it checks the boxes you
need to make a speculative bet on the future. There is risk here, of course there is. Aside from
the copper and gold price exposure risk, even though we’re in one of the safer and more miner-
friendly regions of Colombia it’s still Colombia and run by a political class that have made a
FUBAR of its mining sector over the years and a rulebook that can screw you with little notice
given. The other risk is the stock price itself, it’s not chap any longer and its only asset is the
potential offered by San Matias/Alacran. If that disappoints there’s no cash in the kitty to stop
the share price from tumbling hard.
But the risk is small compared to the potential reward, and that’s why I’m a buyer of CDB. In
Alacran alone I believe we have a deposit that more than justifies the current share price of
CDB and as that moves forward under the auspices of the world-class team at HPX, its an
asset that will in all likelihood become more valuable. But the real prize here is what the JV
might find in the larger concession area as the only reason Friedland got involved in the first
place was due the potential of finding a massive, World Class deposit, the ones that get valued
in the billions of dollars and if they do that, having 35% of the next (name your favourite very
large copper mine) would turn CDB from a sub-Loonie stock into an enormous winner for all
who sail with her. The IKN Weekly recommends Cordoba Minerals (CDB.v) as a
speculative buy at today’s price levels. A price target is a difficult thing to name and in this
case I’m not going to until we know more about Alacran, but my general mind’s eye game plan
is that the stock should play between 70c and $1 until the Alacran 43-101 comes out, then if
that’s a pleasing number (I’m sure it will be) we start trading above $1 and current numbers are
a thing of the past so if you put a gun to my head I’d say we could see $1.50 in the next
twelve months, so pencil that number in of you like but I’m looking to be in CDB for the long-
haul, I don’t really care that much about near-term price targets in the same way I’m
approaching my investment in Top Pick Regulus Resources. These big deposit plays need time
to come to fruition and I have the patience to give them just that.
End of Report
9

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Stocks to Follow
A mixed bag this week. Of the 13 stocks open on the ‘Stocks to Follow’ list this time last week
(excluding the recently added CDB.v), five made gains (BTO.to, SAM.to, TK.v, ATY.v, CNL.to),
seven showed losses (REG.v, SAND, WDO.to, RPM.v, RRI.v, LRA.v, FCV.v) and one was
unchanged on the week (MAD.v). The best winner was Continental Gold (CNL.to up 9.2%) but
annoyingly there were a bunch of big percentage losers, starting with Sandstorm (SAND down
11.7% for no apparent reason), Wesdome (WDO.to down 9.3%), Regulus (REG.v down 9.3%)
and Rye Patch (RPM.v down 8.8%). The result on a personal level is one of those rare weeks
when a win in the biggest position BTO doesn’t translate into an overall winning week for the
back pocket. Dem’s da breaks...
With the addition of CDB.v there are now 14 open positions on the ‘Stocks to Follow’ list, one
less than our self-imposed maximum of fifteen at any given time. Eleven stocks are in the green
and three are in the red.
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
B2Gold BTO.to STR buy C$2.11 12-sep-14 C$3.59 70.1% tgt $5.30 IKN375
Regulus Res REG.v hold C$0.64 06-apr-15 C$1.36 112.5% LT exploreco top pick
Starcore Intl SAM.to STR buy C$0.62 10-jan-15 C$0.76 22.6% $1.04 tgt, excellent value
Long positions (in current order of preference)
Sandstorm Gold SAND buy U$3.80 17-apr-16 U$5.38 41.6% $7 tgt IKN378, trading well
Tinka Res TK.v buy C$0.195 19-apr-16 C$0.205 5.1% Top value under radar Zn play
Wesdome Gold WDO.to hold C$1.72 22-may-16 C$2.55 48.3% $2.88 tgt IKN381 v strong
Cordoba Min. CDB.v buy C$0.73 15-sep-16 C$0.85 16.4% new position, $1.50 tgt
Atico Mining ATY.v buy C$0.51 24-jul-16 C$0.52 3.9% bot again IKN382, 90c tgt
Rye Patch Gold RPM.v spec buy C$0.355 02-sep-16 C$0.31 -12.7% New IKN382, 75c tgt
Riverside Res RRI.v buy C$0.39 27-jun-16 C$0.37 -5.1% Added IKN380, 60c tgt
Continental Gold CNL.to buy C$2.68 22-may-16 C$4.26 59.0% permit 4q16/1q17, $4.80 tgt
Miranda Gold MAD.v spec buy C$0.125 03-jul-16 C$0.145 16.0% Small flipper, now waking up
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$1.32 14.8% solid biz model
Focus Ventures FCV.v spec buy C$0.23 01-jul-12 C$0.08 -65.2% refi news good
Short positions
None at present
Closed in 2016 closed close price
Phoscan Chem FOS.to jan16 C$0.28 29-mar-15 C$0.265 -5.4% Buyout trade, bot but poor deal
True Gold TGM.v jan16 C$0.18 23-aug-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-jan-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-apr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-apr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-jan-16 U$2.96 43.7% closed good near-term trade
Sandspring Res SSP.v mar-16 C$0.195 18-oct-15 C$0.32 64.1% Hit tgt, took profit
Teranga Gold TGZ.to mar-16 C$0.54 15-feb-15 C$0.60 11.1% disappointing trade
B2Gold BTG mar-16 U$0.85 13-jan-16 U$1.30 52.9% Separate trade on B2, hit tgt
Dalradian Res DNA.to mar-16 C$0.67 27-oct-13 C$1.00 49.3% Hit target, sold, good win
HudBay Min. HBM may-16 U$4.10 03-apr-16 U$4.36 -6.3% Short trade, poor timing
Nevada Sunrise NEV.v may-16 C$0.185 28-feb-16 C$0.23 24.3% V. small, no big deal either way
Richmont RIC jun-16 U$7.60 01-may-16 U$9.30 22.4% near-term trade, profit taken
INV Metals INV.to jul-16 C$0.25 03-apr-16 C$0.95 280.0% Trade closed on time
HudBay Min. HBM aug16 U$4.98 09-jun-16 U$4.80 3.6% short trade covered, no big deal
2009, 2010, 2011, 2012, 2013, 2014 and 2015 closed positions in appendices below
10

,
Now for some notes on current basket stocks.
Cordoba Minerals (CDB.v): Position opened. All you can eat on CDB above, here a quick
line to note that as per the Flash update on Thursday (see Appendix 1) I bought some at 73c
(didn’t get any of the 68c or 69c) and the position is now open.
Rye Patch Gold (RPM.v): First let’s cover the trading in our new position and your author’s
strong suspicion is that thelarge amount of shares set to come out of lock-up in late October
are a bigger influence on the current share price than I’d imagined. Now for sure I took that
into account and made he necessary mention of the factor when opening coverage on the stock
just a couple of weeks ago, but even that could have been an underestimation. If so, we have
five or six weeks of low-30s prices before doubt is removed and RPM can start moving higher.
In other words, I could have bought much better than my 35.5c and I’m now officially early to
this trade, that’s not necessarily a bad thing, just a thing.
Second up, I got good warm and fuzzy feelings from watching CEO Howald present at Beaver
Creek and though I have to guard for bias confirmation I thought it was one of the better
stories shown at the show. Make sure you watch the presentation yourself on this link (3) and I
particularly liked the way Howald tackled the “only a PEA” criticism and made plenty of mention
of the highly experienced team that was going to run the mine; the argument closely matched
my own in the RPM NOBS report.
B2Gold (BTO.to): I’ve been asked by longtime subber and regular mailer ‘FB’ for a few words
on BTO this week so here goes: It’s my Top Pick stock.
More seriously, when there’s something worth reporting I’ll be all over BTO like a rash again,
but quiet periods are quiet periods. It does look cheap at today’s levels though, will say that
and it outperformed the market last week as well.
Sandstorm Gold (SSL.to) (SAND): SAND got stuffed last week and I don’t really know why
that should be (and to answer one mailer, I’m quite
certain it wasn’t due to my “yellow flag” note in
IKN383 last weekend, that type of cud-chew
discussion doesn’t set off 10% drops in large
miners). I’m not sure about the shape on the right
of this price chart either, it looks as though the
current level has to hold else we revisit lower levels.
We have seen some insider selling in the last couple
of weeks, capped off by the 120,000 shares sold by
director (and Canadian industry stalwart) John
Budreski. I don’t see anything particularly nefarious
in this (or any of the other) sales, as in Budreski
had only made those shares whole by exercising
them at $6.35 a week or two ago, he’s taking his $240k bonus I suppose, but the market may
have seen it as a red light and caused a bit of extra selling.
Atico Mining (ATY.v): Up just a penny on light trading, there were buyers waiting for any
small offerings at 52c and 53c all week, but if you suddenly had the urge to own and could wait
you paid up to 55c and 56c. Sometimes small stocks go quiet, it’s the way they are.
Regulus Resources (REG.v): There’s nothing wrong at REG that a few bids won’t cure. The
stock dropped on Thursday and Friday, but trading was very light and it looked like a couple of
small sellers.
Miranda Gold (MAD.v): Let’s check in on the state of play via this three month chart:
11

,
1) I bought and reco’d MAD.v on a high risk fliptrade idea.
2) It went quiet, which was no surprise.
3) Price moves starting to happen in September, all on low volumes.
The idea from the beginning in this small trade was to buy and get in front of a assumed promo
pump that would start around the time that MAD saw a bunch of placement share go free-
trading, at which point I’d sell. See the main anal ysis of MAD.v for more details, the NOBS
report of IKN373 dated July 9th.
As those 29.14m placement shares come out of escrow on October 24th, the assumption this
end is that the people running the show would want to get interest and volume moving before
the date. We’re now five weeks away and as noted last weekend, the way i which MAD.v has
been switchbacking on low volumes is indicative of a stock that wants to clean itself a bit before
somebody somewhere hits the gas pedal. If I’m right (and what could possibly go wrong? ☺) we
may see action begin. Either way, win or lose, this trade doesn’t have much longer to run at The
IKN Weekly, we’ll close it in October.
Continental Gold (CNL.to): Another strong
showing from CNL and though it didn’t close at
the week’s highs of $4.40+ it was capped by
the late-day Friday 10m shares that went
through on the S&P index re-jigging.
Remember that I’m not the guy who got in at
the $1.50 (or below) level, those are the people
who are now sitting on a 200% win in CNL. I’m
the one who changed hid mind on CNL and
bought in late May, which isn’t quite as
sparkling but it does show that changing one’s
mind isn’t such a bad idea on occasion.
Wesdome Gold (WDO.to): On Thursday we got a NR from WDO (4) that covered the
company’s current exploration projects and also dropped 2016 production guidance down to
between 45,000 and 50,000 ounces of gold. The exploration update was useful, we got a
flavour of the direction in which new CEO Middlemiss is looking to take development (the feel is
walk first, run later) though we didn’t get any new drill returns on the hot new Kiena project,
the thing that shot the stock up recently.
As for the guidance drop, that shouldn’t have come as a shock as 1) new CEO Middlemiss had
already called the guidance “under review” when announcing the 2q16 financials and 2) it was
pretty obvious that WDO wasn’t going to make its original 54k to 60k guidance for the year
12

,
(esp after that very weak Q1). As noted in IKN379 dated August 14th, we’d already
guesstimated 2016 production at 47,983
oz...hey, let’s call if 48k. That puts our guess WDO: Gold prod/qtr
16000
snugly in the middle of the new company
14000
guidance, that’s not a bad thing (here’s one of
12000
the IKN379 charts by way of reminder).
10000
8000
In trading, WDO took a week off and retraced
6000
a bit from the nosebleed-quick gains of the
4000
previous weeks (just when I thought it would
2000
blow through my current $2.88 target...shows
0
how much I know). It looks like the next
catalyst will be the next set of drill results
from Kiena, those should come soon, then we
see how WDO plans to expand the program.
Riverside Resources (RRI.v): On Monday we did indeed get the expected NR from RRI (5)
and it told us that partner Centerra was starting its exploration program on the newly acquired
RRI ‘Glor’ property in Mexico. It’s the way of the project generator compny when the model
works well, you get Other People’s Money to advance your land packages. But the share price
didn’t react to the news and the NR contents didn’t really shake up the world, so I went straight
to the horse’s mouth and asked company CEO Jean-Mark Staude why he thinks the news didn’t
get much traction. By the way, I did this because Staude is one of the few junior mining CEOs
who is strictly zero BS and you can take him at his word (I don’t bother exchanging with many
CEOs, it’s often more of a waste of time that you’d imagine and I even feel like taking a shower
after exchanging with some of them). Anyway, this is what the straight-shooting goodguy
Staude said:
We are working with Centerra and the market did not move i think this might be
because investors are only learning about this new Riverside program. Having over
1/2 ounce gold in outcrops, new targets with exposed gold is positive. Investors can
see RRI delivering on our commitment with us operating exploration, working up drill
targets , forwarding our assets without having to spend money. The key fact for
Monday's news is we are getting major company to fund working up of drill targets,
covering all geologic, geochemical, geophysics, community, permitting, all costs. This
is excellent example of Riverside converting intellectual capital into shareholder value,
derisking asset, priming asset for next stage.
Monday was not maybe going to move the stock but Glor sure can. A good open pit
gold project with funding covered and us operating.
In other news, we can expect newsflow to pick up out of RRI, starting tomorrow and continuing
through 3q16 and 4q16. RRI is coming out of hibernation as its partner companies commit to
the held projects and that’s a good thing.
Starcore Intl (SAM.to): With a set of quarterly financials to crunch and a presentation by
company bigwig Eadie to consider, this section on SAM bit got long so I’ve stuck the main anal
ysis down in ‘Market Watching’. In trading SAM did okay on light-ish volumes, we again saw all
the 70c and 71c snapped up but there’s no real volume buyer or impetus to break the stock out
of its current trading range.
The Copper Basket
After thirty-seven weeks of 2016, The Copper Basket shows a 79.18% gain to level stakes.
13
41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 tse61q3 tse61q4
Ozt Au Mishi
Eagle River
source: WDO filings

,
company ticker price 1/1/16 Shares out Market Cap current pps gain/loss%
1 Ivanhoe Mines IVN.to 0.61 778.96 1448.87 1.86 204.9%
2 HudBay Min. HBM.to 5.31 235.23 1164.39 4.95 -6.8%
3 Reservoir Min. RMC.v 4.08 48.69 449.41 9.23 126.2%
4 Capstone Min. CS.to 0.44 382.04 286.53 0.75 70.5%
5 NGEx Resources NGQ.to 0.65 205.06 233.77 1.14 75.4%
6 Western Copper WRN.to 0.38 94.19 91.36 0.97 155.3%
7 Trilogy Metals TMQ.to 0.395 104.33 76.16 0.73 84.8%
8 Cordoba Min. CDB.v 0.16 86.86 73.83 0.85 431.3%
9 Copper Mtn CUM.to 0.445 118.8 54.05 0.455 2.2%
10 Copper Fox CUU.v 0.125 417.64 52.21 0.125 0.0%
11 Atico Mining ATY.v 0.28 97.59 51.72 0.53 89.3%
12 Nevada Copper NCU.to 0.66 80.5 45.08 0.56 -15.2%
13 Amerigo Res ARG.to 0.205 173.61 26.04 0.15 -26.8%
14 Hot Chili Ltd HCH.ax 0.09 445.723 20.50 0.046 -48.9%
15 Revelo Res. RVL.v 0.055 128.486 10.28 0.08 54.5%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg 79.18%
The basket average managed to gain a couple of percentage points despite the losses taken by
the headline copper names, but overall it was a
The Copper Basket 2016, weekly evolution
quiet week for the copper list. There were just 100%
five weekly winners (CS.to, NGQ.to, CUU.v,
80%
ATY.v, CDB.v), four stocks were unchanged
60%
(RMC.v for obvious reasons, HCH.ax, WRN.to,
RVL.v) and six losers (HBM.to, IVN.to, CUM.to, 40%
NCU.to, TMQ.to, ARG.to). Only one stock 20%
managed to move by a double figure
0%
percentage in either direction and that was the
10.3% added by Capstone (CS.to). -20%
Copper the metal had a good week at market,
as seen in this chart. Sustained buying all week
moved the futures contract up 4.3% and by
Friday we saw a general U$2.16/lb being bought.
The underlying reason was...yes you’ve guessed
it...optimism on China demand. The week saw
SinoData saying that internal bank credit had
expanded, plus investment and retail sales
figures were better than expected. I’m including
this quote found in a Bloomie article (6)...
“We always have to never forget what
Chinese demand can do to any
commodity, and copper is one of those
markets where we see a lot of Chinese
influence,” Frank Cholly, a senior market
strategist at RJO Futures in Chicago, said
in a telephone interview.
...but just for the fun element, because
“...always have to never forget...” is one of the
most cringe-worthy phrases I’ve read this year.
Two crass grammar errors in five words, where do these people go to school? But the real
driver of last week’s price pop is contained below in our regular inventory tracking section (it
pays off from time to time), as copper exports from mainland China that had been landing in
14
dr3naj ht01 ht71 ht42 ts13 t7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 r3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01 ht71 ht42 ts13 t7gua ht41 ts12 ht82 t4peS ht11 ht81
source: IKN calcs

,
LME warehouses abruptly stopped. Read on for more.
Now for the regular copper warehouse inventory bullet points feature:
• A change in the air, as overall copper inventory levels in the world’s three systems
dropped slightly, the massive LME moves apparently coming to a halt. Aggregate stocks
dropped by 6,996 metric tonnes (mt) (-1.3%) to finish Friday at 549,156mt.
• Inside the big number, Shanghai’s SHFE stocks dropped again, down 7,387mt (-5.1%)
to finish the week at 136,329mt. We may see the 100k level again after all.
• The LME headlines again this week, but this time because its stocks have stopped their
very sharp increases. Stocks here dropped a small 1,375mt (-0.4%) to finish Friday at
349,225mt but it’s the fact the number has stopped moving up so rapidly that counts,
not the amount of change.
• Comex saw another increase and is a constant arrow higher, though on modest
numbers. Stocks rose 1,766mt (+2.9%) to this weekend’s 63,602mt.
Here’s the Shanghai-only chart, which has become a bit of a sideshow these last few weeks
(what with LME strutting so hard) but gets included just to keep up appearances.
Shanghai Futures Exchange Warehouse Stocks, 2014-2016
400000
350000
300000
250000
200000
150000
100000
50000
15
31'13ceD ht91 ht9 dn2ram dr32 ht31 ht4yam ht52 ht51 ht6yluj ht72 ht71 ht7 ht82 ht91 ht9 ht03 ts12 ht11 ts1bef dn22 ht51 ht5rpa ht62 ht71 ht7nuj ht82 ht91 ht9 ht03 ht02 ht11 ts1von dn22 ht31 dr3naj ht42 ht41 ht6ram ht72 ht71 ht8 ht92 ht91 ht01 ts13 ts12 ht11
Mt Cu
source: Cochilco
The screeching halt in the large-scale LME inventory influx is a signal that demand is better
than expected in China, that no extra metal is about to come out and due to that, delivery
premiums managed to notch up to U$50/tonne last week from the previous U$45/tonne (which
happens to be a four year low). By no means are we out of the woods in copper and breathless
script on a new copper bull should be taken with a pinch of salt, the world isn’t that binary I’m
afraid. But it’s fair to say that last week was a clear win for my whussy “moderately bullish I
suppose” position that’s based on “the bottom is in”, rather than any massive upmove in the
works for the metal. Just getting the bottom in is enough for the moment, it helps trades such
as CDB.v and REG.v.
Now for notes on a couple of the basket component stocks:
Capstone Mining (CS.to): Two weeks ago in IKN382 I picked CS out of the pack as a
potential way of playing leverage to copper upside (though let’s be 100% clear here, it wasn’t a
reco and I specifically stated that it wasn’t a trade for me). This week CS began to make good
on that call and enjoyed a strong end to the week as copper moved away from the U$2.10/lb
barrier and back towards U$2.20/lb.
Back then in IKN382 I thought that a copper price of around U$2.25/lb would imply a CS.to
price of around 85c, with those limits chosen because they don’t violate CS’s 2016 trading
range. That means we’re not even half way there yet.

,
Copper Mountain (CUM.to): In the same vein as CS.to above, it’s time to ‘tragar el sapo’*
and write a line or three about the leverage CUM.to may offer in a world of moderately rising
copper. My personal disdain for this stock is well-documented (including the puerile jokes on
the blog about its ticker symbol), it’s a debt-laden, loss-making, serial promiser of jam
tomorrow that has failed miserably as a reasonable mining operation (the quick’n’dirty: grade
was low, is low, will always be low and its resulting thin margins leave no room for error, but
CUM.to has been error-strewn since starting up).
Therefore and once again, this trade idea
is one floated at you, not one I’m going to
play myself. Thing is, for all its mediocrity
CUM.to is followed closely by the dens on
iniquity we know as “Canadian
Brokerages” and the worst/best of them
are quick to pump Copper Mountain to
their masses as a way of playing copper
(plus the inevitable “but this time
operations are doing well!” message).
Plus, the stock is now at the cheap end of
its trading range. This 12 month chart
shows that although it’s been lower at
times, CUM.to has a tendency to trade in the 45c to 50c range and then pop quite sharply up to
60c. If it starts to catch a bid on rising copper, a move from today’s 45.c to 60c represents a
31.9% upside, which wouldn’t be a bad return for a near-term speculation. But you have to
make your own mind up about the copper price being able to deliver, this isn’t a trade I’m
going to run personally.
*A Spanish expression, “Swallow a toad/frog”: Doing something personally distasteful for the greater good.
The Low Cost Producer Basket
After 37 weeks of 2016, the Producer Basket shows a gain of 108.32% to level stakes.
company ticker price 1/1/16 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Newmont NEM 17.98 529.12 20.24 38.26 112.8%
2 Barrick ABX 7.38 1164.67 20.20 17.34 135.0%
3 Goldcorp GG 11.56 830.22 12.93 15.57 34.7%
4 Franco Nevada FNV 45.75 176.298 12.37 70.18 53.4%
5 Agnico Eagle AEM 26.28 217.67 11.20 51.44 95.7%
6 Ang/Ashanti AU 7.10 405.27 6.18 15.25 114.8%
7 Detour Gold DGC.to 14.41 170.85 4.76 27.84 102.9%
8 Buenaventura BVN 4.28 254.19 3.55 13.98 226.6%
9 Sibanye Gold SBGL 6.09 228.71 3.14 13.74 125.6%
10 New Gold NGD 2.32 509.89 2.26 4.44 91.4%
Prices in U$/NYSE tickers, except DGC.to (CAD$) Portfolio avg 108.32%
Again the nine downers and just one upper same as last week, the only difference being that
the sole winner was Agnico Eagle (AEM) this time around. The bigger losers were either small
or South African or both, the 1% or 2% losses taken by the Tier One names comparing to the
loses in Sibanye (-7.4%), AngloGold Ashanti (AU down 5.6%), New Gold (NGD down 5.5%)
and while we’re here, let’s also mention the larger-than-average 4.8% lost by Detour Gold once
again, the market darling is having a tough September.
The gap between the IKN Weekly list and our benchmark GDX closed further and is now under
16

,
20%. We’ve enjoyed the leverage from equal weightings in the South Africa stocks (SBGL AU)
as well as having hard-springing midcaps in our list (BVN, DGC) but that effect is now
unwinding.
The Low Cost Producer Basket: Weekly performance
200% and comparative to GDX control
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Agnico Eagle (AEM): AEM beat the street last week, managing to return the only winning
week of our group of ten largely due to the September 15th NR (7) which announced that the
2016 exploration program at the
company’s Amaruq project in Nunavut
Canada had added 432,000 ounces gold
to the count, bringing the inferred
mineral resource to 19.4m tonnes at
5.97 g/t gold, which comes to 3.71m oz
Au. As Amaruq lies close to the AEM
operation at Meadowbank, the main
implication was carried in the CEO Sean
Boyd quote in the NR, “...Amaruq is
expected to provide a new source of ore
for the Meadowbank mill starting in
2019”. The red line on this five day price
chart comparing AEM to the Gold and
Silver Index (XAU) marks where the
Amaruq news hit. So what happens when AEM’s market cap overtakes that of Goldcorp? Does
the industry have a little heart attack?
Sibanye Gold (SBGL): You may recall that of all the gold stocks out there, SBGL was about
the first to move hard into 2016 and quickly
registered a double in the first quarter of the
year. But in the last few weeks it’s been in a
real slump, suffering from the negative
outlook in South Africa as much as anything
else and it’s interesting to note that in IKN
dated March 6th, SBGL had spent that
weekend with a share price of U$13.93, higher
than this weekend’s price. This despite gold
being up % (U$/oz) and GDX up by 31.7% in
the same time lapse.
Notably though, gold is only up by 2.7% in US
Dollar terms and is in fact slightly down in
Rand (ZAR) terms. SBGL was one of the first
movers, it’s also one that’s hit the first headwinds.
Barrick Gold (ABX): ABX traded lockstep in-line with peers on Friday, despite the news that
its Veladero mine had sprung another leak and had been shut down.
17
dr3naj ht01 ht71 ht42 ts13 t7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 r3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01 ht71 ht42 ts13 t7gua ht41 ts12 ht82 t4peS ht11 ht81
Low Cost Basket: Percentage difference between
basket and GDX control, 2016
5%
0% basket
gdx control -5%
-10%
-15%
-20%
-25%
-30%
-35% source: ikn calcs, NYSE/Nasdaq data
-40%
source: Google, IKN calcs

,
I am once again impressed with a Northern business world that thinks there will be no
repercussions from a relatively minor accident at one of ABX’s smallest operations. Wrong again
folks, this isn’t going to go away, read the first section of ‘Regional Politics’ for more. I only
hope the next time you think about the Veladero mine isn’t after hearing your own preferred
mining project in Argentina has been refused its permits.
Regional politics
Argentina: The Veladero mine causes political pain
On Thursday September 15th Barrick (ABX) announced (8) that operations at its Veladero mine
in San Juan province Argentina had been suspended due to an incident on September 8th,
namely a block of ice which damaged one of the pipes at its tailings facilities which caused “a
small quantity of solution” to be spilled. All well and good, now for news that matters:
• ABX took six days to report the incident to authorities and only did so because they’d
heard one of their employees was going to blow the whistle. In fact they informed
authorities via a Whatsapp message at 10pm September 14th. Crazy.
• ABX did not suspend operations, a local judge suspended them with immediate effect
on hearing the news. And it’s noticeable how ABX only said “solution” in its NR, no
mention of the real problem word “cyanide”.
• The ensuing uproar from the local town of Jachal was only to be expected, as this is
the same mine which had a far more serious spillage last year. On that occasion ABX
tried to keep it quiet, then underplayed the severity of the incident and only weeks later
was it confirmed that the spill had indeed reached the local water supply. Veladero is
hated in the town and the calls for it to be permanently closed are now very loud.
• San Juan Governor Sergio Uñac and his provincial mining minister Alberto Hensel were
due to travel to China for the China Mining conference, but on hearing the news they
cancelled the trip and Uñac travelled instead to Jachal. In Jachal he gave a town hall
meeting and news conference, but he was also treated to a rough reception (9) that
included being spat upon and getting eggs thrown at him (an Argentine standard
response in these circumstances, for what it’s worth).
• On Friday evening mining minister Hensel held a press conference (10) to state that no
cyanide contamination had been found by first inspection (which we note happened a
full week after the incident). He also stated that the mine would remain closed until
ABX came up with a plan to improve its working practices that would have to be signed
off by both local judges and Governor Uñac. That same day Uñac said that operations
at Veladero would not renew until he was “...certain that Barrick Gold went about its
business with absolute respect for the environment and for the mining code”.
Translation: He is livid that Barrick waited a week before telling anyone.
18

,
As this well-written op-ed (11) in San Juan newspaper “Tiempo de San Juan” noted, the presser
was held at midnight on Friday and the only reason politicos do that kind of thing at that time
of night is as a damage limitation exercise. The op-ed is entitled (translated) “Mining: And now
who could defend it?”, a fair pulse-take of the mining sector’s image in both San Juan and the
wider Argentina this weekend and notably, written by a famously pro-mining journalist in San
Juan who is now reconsidering his own position. Once again a pollution incident in Argentina
that’s brushed off in the Northern hemisphere and English language press as no big deal has
been taken far more seriously in country (I’m told that “Veladero” was the number one trending
topic on Twitter the next day and even made the world top ten for a while). All this at the same
time as Barrick hiring George Bee to start up the Lama side of Pascua Lama, which just so
happens to be in San Juan province too. Be in no doubt, no matter whether the spillage was
ultimately small or large the optics of this event are terrible for mining in Argentina and
Veladero is turning into a gift from the heavens for anti-mining activists up and down the
country.
Ecuador has a mining conference
This week, September 19th to 23rd, sees the “Ecuador Mining Encounter 2016” conference in
Quito Ecuador (12), designed as a shop window for mining project in the country and
specifically to attract new FDI. Some 170 delegates are registered to attend and eleven
presentations are booked for their listening and viewing pleasure. There are also site visits set
for the Cascabel, Llurimagua, El Torneado and Telimbela projects as well as a helicopter fly-
over of Mirador and Fruta del Norte (best not to land at Mirador, wouldn’t like to see locals
lynching anyone, bad for public opinion and image). Chief mining salesman in Ecuador, minister
Javier Cordova, said, “There are over 170 attendees which shows the strong interest that this
sector generates as a result of having made more logical the conditions to invest in the country,
such as tax incentives, certain modifications in the Mining Law and rules that offer an
appropriate scenario in which to invest”, because that’s exactly the kind of thing he would say.
Peru: Locals to protest against Shahuindo this week
News on Friday (13) in Peru’s national daily ‘La Republica is that the approximate 15,000 local
community members near the Tahoe Resources (TAHO) (THO.to) are to go on strike as from
this Tuesday September 20th as a protest against what they say are broken promises and
unfulfilled social deals with the company. According to one of the strike organizers (translated),
“The Shahuindo social plan was to train companies in the zone (of direct influence). They
haven’t done that. They are bringing in companies from Cuzco and Arequipa (note: South of
Peru and many hundreds of kilometres away) and ours are sub-contracted. We have large debt
with the banks, the people are tired (of the situation).”
Local stated that their strike action (which will undoubtedly include blocking the roads to the
mine, a fairly easy thing to achieve as the mine site is isolated) until the company makes good
on the social agreements that it previously signed.
Chile Peru and copper
Last week September 14th to 16th saw the Expomina 2016 conference in Lima Peru, billed as
the county’s biggest mining bash of the year (that’s because Arequipa’s really big Perumin is
held once every other year). It’s one of those “mainly trade” shows with the bulk of attendees
suppliers selling widgets to mining companies (and vice versa) but some news gets generated
too and perhaps the most interesting came from one Jorge Cantallopts, a Chilean bigwig
delegate from that country’s Cochilco, who delivered a speech on the potential benefits of Peru
and Chile pooling their mining resources and expertise to create a “Pacific-Andean District” (14).
Being a Cochilco guy his focus was mainly on copper and even though gold, silver and
molybdenum got mentions the thrust of the argument was around the world’s 14 largest copper
mining operations all hosted in the bi-national zone that account for 41% of world copper
reserves, as well as the (his figure) U$107.5Bn worth of mining projects in the region of which
U$71.9Bn are covered by copper projects.
That all sounds good so far, but when he made his case for the two countries joining forces it
19

,
sounded a lot like “we in Chile have the expertise, you in Peru have the projects” and the thing
there is that it’s perfectly possible to grow your own expertise and world-class method of
operations without much outside help, but it’s way more difficult to grow a new copper deposit.
Once dissected, it sounded a lot more like Chile trying to muscle in on the future of Peru and
offer debatably “needed” help. It’s a measure of the threat Chile now sees in Peru for its copper
production top dog status, not a measure of the clear potential Peru has to grow its copper
production levels because those are well-known already.
Chile rhenium
Did you know that 40% of the world’s 50,000kg per year rhenium production comes from one
company in Chile, Molymet? No, me neither and it’s suddenly occurred to Codelco that it’s been
giving away rhenium production to Molymet in the form of tailings that Molymet uses to make
its money. So as from 2017, the Codelco plan is to create its own rhenium production facility
and rather than give all the ore away, produce up to 7,000kg of the element itself. An
interesting Spanish language report (15) gives the background.
Peru says Peru is the fastest growing South America nation and it’s due to mining
One thing you can bet money on is Peruvian bigwigs projecting a wonderful future for the
country and one of the ways they do that is confidently predicting every year that they’re the
fastest growing economy in the region. Reality has proven to be slightly different every year,
there’s always one or two nations that post better GDP growth figures (usually Bolivia) but this
year 2016 they may just have a point, in South America at least. On Friday Peru Central Bank
head Julio Velarde (the absolute monetary power in Peru for three presidencies and nearly a
decade now) spoke on the subject and here’s what the English language version (16) of State
news agency Andina had to say about it:
According to BCR’s Governor Julio Velarde, the Peruvian economy is projected to see
a 4.5% growth in 2017 and a 4.2% increase in 2018.
The central banker explained the country's economic rebound has taken place since
2015, mostly driven by mining.
"Peru’s economy will be the fastest-growing of all South American nations in 2016
(4%) and 2017 (4.5%), underpinned by private investment, which is set to recover and
expand 5% next year," he said.
In the longer Spanish language version (17) we also read that the 19% growth in mining
activity in Peru in 2016 is the driving force behind the 2016 overall country GDP figure and yes,
this time they may just sneak the win in 2016. Here are the South America GDP growth
estimates Velarde delivered on Friday (to which he added Mexico, just for fun): Peru (4%),
Bolivia (3.8%), Paraguay (2.9%), Colombia (2.3%), Chile (1.7%), Uruguay (0.7%), Argentina (-
1.5%), Ecuador (-2.5%), Brazil (-3.2%) Venezuela (-10%), then Mexico (2.2%).
Dominican Republic: Pueblo Viejo 75 years
It would appear that 25 years of concession just isn’t enough for the Barrick Pueblo Viejo (60%
ABX, 40% GG) gold mine in The Dominican Republic, as according to the Barrick Pueblo Viejo
president Manuel Rocha the company would like to extend its concession rights. At present the
concession is for 25 years plus an extra 10 years under certain contractual conditions, but the
company now believes that given the right market conditions, there’s enough to mine for 75
years and wants a concession to match that potential (18).
Argentina: Chubut again
The Pan American Silver Navidad political show made the blog last week (19) because it was
fun to note the difference in attitude between the fawning pro-Macri press in Argentina (and
fawning really is the word, the volt face seen in newspapers towards government since CFK left
has been impressive) and the more measured tone taken by PAAS in its NR (for those of you
just joining us, we went from Beaty saying “Navidad implies a U$1Bn investment” to ultra-pro-
govt Clarín’s “Macri secures U$1Bn investment for the country that arrives next Tuesday around
20

,
tea-time all hail our great leader” in the space of six hours.
But the most interesting comment on Navidad came later from the man with real political power
over the project, governor of Chubut Mario Das Neves (20). He was present at the investment
forum but once it was done, added a dose of reality. He said (21), “The destiny of mining in
Chubut will be decided by the people of Chubut” and what that means in the terms of the
Federal Republic of Argentina is that the laws in the province of Chubut outgun all national
laws. In the case of mining, Chubut has a ban on open pit mining (and use of mercury and
cyanide) and until that is lifted or changed, Navidad cannot go forward as a mine. Which means
that despite all best intentions of President and company, nothing has changed and Navidad,
Suyai and all other mining projects in the province are blocked until the politicos there do
something about the law. Don’t hold your breath.
Market Watching
Denver Gold and Beaver Creek Show presentation links
In IKN381 I offered up the link to the Denver Gold Show webcast page (22) and now that the
conference is done and dusted, you can go over there and pick and choose from around 150
different presentations as seen at the bash.
To that link, today we now add the link to the page with all the presentations from the ‘Precious
Metals Summit’ Beaver Creek show (23), which include the aforementioned presentations by
Starcore, Cordoba and Rye Patch among many others. Plenty of good source material on a host
of junior mining companies.
High volumes Friday
I took several mails regarding the very high volumes registered in several stocks late Friday, a
list including but not exclusive to Ivanhoe (IVN 29m shares traded), Teranga (TGZ 26m shares)
Newmarket (NMI 37m shares), Klondex (KDX 9.4m shares), Nevsun (NSU 7m shares),
Sandstorm (SAND 14m shares) etc. The reason is mainly the re-jigging of the S&P indices and
those type of volumes create temporary effects on the share price (normally up, in the case of
SAND it was down) but anyone in the stocks for the longer-term shouldn’t put too much
emphasis on the inclusion or exclusion of a company from an index.
Gran Colombia Gold (GCM.to) forgetting details
I laughed hard on reading Gran Colombia Gold’s NR on Friday (24) in which it announced a
corporate review, starting this way:
TORONTO, ON--(Marketwired - September 16, 2016) - Gran Colombia Gold Corp. (the
"Company") (GCM.TO) (OTC PINK: TPRFF) announced today that, in light of current market
conditions and the Company's improved operational and financial performance this year, it has
engaged GMP Securities L.P. as its exclusive financial advisor to conduct a strategic review
process that will explore alternatives to enhance shareholder value. The strategic review process
will be broad and could include, but not be limited to, a strategic investment in the Company by a
third party, a business combination with another entity, a recapitalization of the Company, a
reduction of the principal outstanding under the Senior Secured Convertible Debentures due
2020, a sale of the Company, or some combination of the foregoing.
Why the laughs? Because what GCM failed to mention was the strike action that starts against
the company by miners in the town of Segovia (its main centre of production) after failing to
reach agreement with workers during negotiations that have gone on for six months (we’ve
mentioned this one before in previous editions of The IKN Weekly, it’s all about the company
wanting to close down what it says are illegal miners, meanwhile the miners insist they are
legally working and have been doing so in the same mines for generations). Read all about the
protests and strike planned at these Spanish language links (25) (26) but I will say that the
action set for the week ahead isn’t a lightweight affair and could get violent if not treated with
care by Segovia authorities. The local miners are at the end of their tether with GCM and I for
one cannot blame them, its track record of lies and bullshit (not to mention its woeful
21

,
environmental record, pumping as it does raw waste straight into the local river) is second to
none in the mining sector.
Starcore International (SAM.to) financials and news
On Wednesday September 14th our Top Pick stock Starcore (SAM.to) gave us its 1q17 (i.e. the
quarter to end-July 2016) results (27). It also gave us a presentation at the Beaver Creek bash
via its President and CEO, Robert Eadie (which you can watch on this link (S2A8M).. tWo: eE alronoink gast both
1.5
of these today. 1
0.5
1q17 financial: Let’s start with the financial 0
-0.5
results, because within margins of error they
-1
came in pretty much as expected and forecast -1.5
by these pages in IKN381 dated August 28th, -2
when SAM gave us its production numbers for -2.5
-3
the quarter To start with the bottom line and
-3.5
give an example, in IKN381 we estimated net
profits at C$0.8m. As things turned out they
were C$0.486m. Like I say, close.
Beneath that bottom line result, revenues
came in almost exactly as imagined at
C$7.188m (we’d gone for C$7.2m in our
model), though I did underestimate costs
by guessing at C$5.2m when the reality
was C$6.04m. We made up a bit of that
shortfall on a negative financing cost for
the quarter (a forex adjustment to a part
of its debt that worked in SAM’s favour).
But the main point here is that even with
a disappointingly low production quarter
due to lower than expected throughput at
the mill (which still didn’t get any sort of
explanation in the MD&A) SAM is a profitable
mining operation.
But what really matters at SAM at this time is
the balance sheet and on that score, things
look fine. Here below are the overview charts of
assets and liabilities which carry the main
message “no news is good news”:
22
41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
$m pre-tax earnings
net earnings
source: SAM filings
SAM.to: Operations overview
10
9
8
7
6
5
4
3
2
1
0
-1 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
$m revenues
COGS
mine op earnings
source: SAM filings, IKN ests
SAM.to: Op.Earnings per share, per qtr
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00
-0.01 01.tco 11.naj 11.rpa 11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
source: company filings, IKN ests
SAM.to: Assets Breakdown per qtr
90
80
70
60
50
40
30
20
10
0
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
$m SAM.to: Liabilities per qtr
50
cash st inv other current fixed
40
30
20
10
0
source: company filings, IKN ests
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
source: company filings/IKN ests
srallod
fo
snoillim
LT debt
current debt

,
SAM has a debt repayment coming up soon (C$4.733m due on November 12th) but we need
not be worried, even if SAM doesn’t receive the U$7m due from the real estate deal on time
(see below) it has the payment covered. Here are the current asset and working capital charts
that count:
SAM.to: Working Capital per qtr
14
12
10
8
6
4
2
0
Notably, the Short Term Investments line item is a time deposit set to mature just before the
debt is paid off; in other words, that’s the bulk of the payment covered right there and even if
operations don’t add cash to treasury (and they will), once paid off working capital stays
positive and there’s more than enough liquidity for SAM to go about doing its thing.
Just one more chart from the financials and I’ll move on, the updated price/book ratio. SAM has
improved in great strides in the last two
quarters but as 2013 suggests, there’s
plenty of slack left to take up as long as it
continues to operate correctly. For what it’s
worth, a 0.9X P/Bv at today’s levels would
point to a share price of CAD$1.09, slightly
above our current target of CAD$1.04 on
the stock (an eminently gettable target too)
The bottom line to the financials; an in-line
quarter. Once we’d heard about the lower
than expected production a month ago it
was clear SAM’s bottom line profits weren’t
going to sparkle on this one, but it’s
returned another modest profit and is in good financial shape. As it has a lot of irons in the fire
right now there are several places from which a catalyst can come but if/when it does, the
decent corporate financial position will allow the catalyst to move the share price. Here’s hoping
for a better production quarter from San Martin next time around.
Eadie at Beaver Creek: We now move to the presentation given by company President and
CEO Robert Eadie at the Beaver Creek conference, also on Wednesday. It’s well worth watching
the recording (28) and after doing so a couple of times, here are the main points of interest I’ve
gleaned from it:
• The recent drop in the Mexican Peso is helping SAM on costs. That’s a good thing and
will help keep opex numbers down.
• Here’s something I haven’t had in my thoughts until this week, it’s something I’d
missed. Due to the new Carbon In Leach (CIL) circuit coming online (Eadie says it’s
good to go next week, there are photos in the presentation) SAM will be able to add
back some of the resource that had been removed from the resource count due to its
difficult recoveries. Eadie noted in the presentation that with the addition of the CIL
circuit San Martin now has “five years of resources”. That’s pretty impressive, so all
23
31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
source company filings
srallod
fo
snoillim
SAM: Cash & short-term investments
12
10
8
6
4
2
0
31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
$m
cash st inv
source: SAM filings, IKN ests
1.00 SAM.to: Price/Book Ratio
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa 61.yluj
source: company data, TSX, IKN calcs

,
eyes on the next resource update due in a couple of months’ time.
• We get a mention of “molybdenum optionality” for what I think is the first time. During
the presentation Robert Eadie noted that SAM wasn’t going to develop its main Creston
moly property, the plan is simply to sell it. It was always the likely course but it’s good
to hear from the horse’s mouth that the project is a straight flip and the price tag CEO
mentioned was “$6m to $8m”, which is fair enough. In a follow-up question after his
talk he was asked “why not hold onto it?”, to which he replied that it was possible, but
the plan as to take the money and use it for some other purpose. I think that’s right:
Moly prices have shown signs of recovery but we’re still a long way off the $16/lb base
case price used for Creston in its 43-101 report(s), even further from the molymania
days when Creston changed hands for nearly $200m. What SAM saw in this was an
opportunity for a flip, no more no less, the chance to pick up a distressed asset for a
song. It’s not going to go into the moly mining business and if it gets the chance to
turn $2m into $6m/$8m in the space of a couple of years, it should grab at the chance.
At some point a buyer will show up with cash and when they do I’m all for SAM closing
a quick deal.
• Regarding the Altiplano toll milling project, we got a lot of good information for the first
time. Things are ramping up slowly but the tone offered in the presentation was good
and there’s clearly a longer-term plan unrolling. CEO Eadie mentioned that the plant
wasn’t running at “commercial” of 25 tonnes per day yet and the plan was to get the
facility up to its maximum capacity (48tpd to 50tpd) in a year. That’s slower than the
company’s original plan (which IKN took into account at the time, we didn’t think it
could get to 50tpd this year but did think 25tpd was in the cards by now). That’s not so
great but it’s not a problem either because the best news is that Eadie reports Altiplano
is already breaking even. That’s the one that most interests me at this time and it’s a
strong positive, the last thing SAM needs from Altiplano is a moneypit asset, so
knowing that it won’t be a strain on liquidity going forward is good. This also affords
the company time to ramp up in the right way and Eadie mentioned the growth of
relationships with small miners in the area as a side benefit to the project.
• Regarding Toiyabe, CEO Eadie said that the drilling program should be done in the next
weeks, that “We’re happy with what we’ve done there”, though drilling has apparently
been slow and sometimes difficult due to ground conditions (faulting etc). Clearly he
couldn’t give any firm numbers on what’s come from the drillbit yet, but the tone was
positive enough. We await the assay results NR on that.
• Finally, new of slight concern is that the real estate deal that SAM previously expected
to be closed by the end of this month of September got a mention, too. It’s still in
process and SAM still expects to reap U$7m (note the USA number there) from the
sale of the land, but he casually mentioned that they now expect the deal to close
“before Christmas”. Now I agree September is also “before Christmas” but it’s clear the
closure is now subject to delay. The good news is that SAM doesn’t need that money to
fulfill its liabilities payments this year, but it’s still cause for some concern when any
deal is delayed this way.
The bottom line to the presentation: It wasn’t quite as sparkling as for example Mario Stifano’s
CDB show, but Eadie did a good job of laying out the state of play at SAM and we got several
nuggets of good information about the different subdivisions of the company with most of that
news positive and nothing outright negative.
The current IKN target price for SAM.to is $1.04, a target that dates back to IKN374 dated July
10th and made up of 45c covered by the San Martin mine operation, then and 59c for “the other
things”, made up of the corporate financials, the Creston properties, the real estate deal,
Toiyabe/other exploration and the Altiplano toll mill operation. Here’s how that breaks down at
the moment on a per share basis:
24

,
• Creston: 12c (if sells for CAD$6m)
• Other moly properties: 3c
• Real Estate deal: 18c (if closes for U$7m net to company as expected)
• Altiplano Toll Mining: 14c (same as the original estimate in IKN366)
• Financial position: 12c (based on current approx $6m working capital)
• Toiyabe: ??? (I’ll assume zero at this time, makes for pleasant surprises later)
That works for me and I see no reason to change either the recommendation or the price
target, even though there could be a slight doubt about the real estate deal closing correctly
now. SAM is still a Top Pick and still a CAD$1.04 price target stock, which still pitches very
much to the conservative end of valuations (just the way I like them).
Conclusion
IKN384 is done, we end with bullet points:
• In the end, the cheap entry point and the convincing argument made by CEO Stifano at
the Beaver Creek show has got me to do something I should have done a long time
ago, buy some Cordoba Minerals (CDB.v). Group this position in with Regulus, it will
take time to develop to its full potential but if things go well it’s a a multi-bag potential
winner.
• Beware Argentina! We’re about to get another round of marketing on the mining sector
in the country as on September 23rd the roadshow hits Canada and the malbec will flow
freely for all those invited. But in-country sentiment is moving away from mining and
there’s a collision curse now being set up between the Macri government and the
opposition, mining could become an active political weapon. For a sector that is very
much “no news is good news”, that’s bad news.
• In hindsight I may have pressed the button too early on Rye Patch Gold (RPM.v), but
its delights and potential aren’t defined by the end of a share lock-up period, this stock
holds oodles of fundamental value for 2017 if all goes to plan. I’ll take the near-term
inconvenience happily enough.
• Starcore (SAM.to) remains a clear Top Pick stock, as do B2Gold and Regulus. I’m happy
about the portfolio set-up these days, plus the growth of copper exposure is coming at
(what seems to me at least) to be the right time.
I thank you in advance for any feedback. Our Top Pick stocks are Regulus (REG.v), B2Gold
(BTG) (BTO.to) and Starcore Intl (SAM.to). Flash updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen. Namaste.
Mark
25

,
Footnotes, appendices, references, disclaimer
(1) http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2016/09/15/cordoba-minerals-
corp/play
(2) http://www.cordobaminerals.com/i/pdf/Presentations/presentation.pdf
(3) http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2016/09/14/rye-patch-gold-corp/play
(4) http://finance.yahoo.com/news/wesdome-provides-operations-exploration-updates-210000058.html
(5) http://finance.yahoo.com/news/partner-funded-exploration-now-underway-120000997.html
(6) http://www.bloomberg.com/news/articles/2016-09-16/copper-heads-for-best-week-since-july-as-demand-outlook-
improves
(7) http://finance.yahoo.com/news/agnico-eagle-announces-13-increase-015100449.html
(8) http://www.barrick.com/investors/news/news-details/2016/Barrick-Gold-Corporation-Temporary-Suspension-of-
Operations-at-Veladero-Mine/default.aspx
(9) http://www.perfil.com/sociedad/vecinos-de-jachal-agredieron-al-gobernador-unac-por-el-derrame-de-cianuro-en-
veladero.phtml
(10) http://www.lanacion.com.ar/1938677-mina-de-veladero-el-gobierno-de-san-juan-confirmo-que-no-hay-cianuro-en-
los-puntos-examinados
(11) http://www.tiempodesanjuan.com/politica/2016/9/17/mineria-ahora-quien-podra-defenderla-148815.html
(12) http://www.elnoticiero.com.ec/noticias/comunidad/encuentro-internacional-permitira-que-inversionistas-conozcan-
sobre-el-potencial-minero-de-ecuador-0013345/
(13) http://larepublica.pe/impresa/politica/803415-cajabamba-anuncia-paro-contra-minera-shahuindo
(14) http://www.cochilco.cl/Archivos/destacados/20160915165402_Comunicado%20de%20prensa%20per%C3%BA.pdf
(15) http://www.cochilco.cl/Archivos/destacados/20160914152534_Informe%20mercado%20Renio.pdf
(16) http://www.andina.com.pe/ingles/noticia-peru-to-be-south-america%E2%80%99s-fastestgrowing-economy-in-
201617-631325.aspx
(17) http://www.andina.com.pe/agencia/noticia-bcr-peru-sera-de-mayor-expansion-la-region-este-ano-y-2017-
ampliacion-631293.aspx
(18) http://www.listindiario.com/economia/2016/09/16/435378/barrick-75-anos-mas
(19) http://incakolanews.blogspot.pe/2016/09/this-thing-isnt-like-that-thing-pan.html
(20) https://opisantacruz.com.ar/home/2016/09/14/presiones-de-macri-obligaran-finalmente-a-das-neves-a-abrir-la-
mineria-en-chubut/38896
(21) http://www.elpatagonico.com/para-das-neves-el-destino-la-mineria-chubut-lo-decide-los-chubutenses-n1509691
(22) http://www.denvergoldforum.org/dgf16/archived-presentation-stream-2016/company-webcasts-alphabetical-2016/
(23) http://www.gowebcasting.com/conferences/2016/09/14/precious-metals-summit
(24) http://finance.yahoo.com/news/gran-colombia-gold-announces-strategic-123000457.html
(25) http://www.elcolombiano.com/antioquia/paro-por-cierre-de-minas-en-segovia-y-remedios-GG4998686
(26) http://www.elcolombiano.com/antioquia/mineros-de-segovia-y-remedios-preparan-paro-civico-GB4982888
(27) http://finance.yahoo.com/news/starcore-reports-q1-2017-results-205829547.html
(28) http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2016/09/14/starcore-international-
mines/play
Appendix 1: Flash update dated September 15th 2016
Good Thursday afternoon, 2:45pm local time, a few minutes before the close.
A quick note to say that after watching one of the best company presentations I can remember and noting the discount
on the share price today, I'm going to get off the fence and buy some Cordoba Minerals (CDB.v) today.
Expect more on the subject in IKN 384, out Sunday. Best, Mark
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Stocks To Follow Closed Positions 2015
Closed in 2015 closed close price
Argonaut Gold AR.to jan'15 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'15 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'15 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'15 C$0.075 26-jan-14 C$0.035 -53.3% sm, sold on Cu downturn
Fortuna Silver FSM mar'15 U$4.12 10-nov-14 U$3.75 9.0% Short used as hedge
GoldQuest Min. GQC.v mar'15 C$0.26 27-oct-13 C$0.085 -67.3% given up ghost
Rio Alto Mining RIO.to apr'15 C$2.30 07-apr-11 C$3.57 55.2% Top pick, bot out, big win
Timmins Gold TGD jun'15 U$0.60 19-apr-15 U$0.62 3.3% near-term trade, out of time
First Majestic AG jul'15 U$10.51 10-aug-14 U$4.55 56.7% horrible failed trade
NovaCopper NCQ.to jul'15 C$1.05 09-apr-14 C$0.50 -52.4% no more Cu exposure, sm sell
McEwen Mining MUX aug'15 U$0.695 21-jul-15 U$0.92 32.4% Closed nearterm flip for win
Midas Gold MAX.to sep'15 C$0.39 21-sep-15 C$0.35 -10.3% Sm. trade idea that didn't work
New Gold NGD oct'15 U$2.18 23-aug-15 U$3.05 39.9% trade closed, profit taken
Legend Gold LGN.v nov'15 C$0.085 01-mar-15 C$0.035 -58.8% tiny "land grab" idea, failed
Timmins Gold TGD nov'15 U$0.245 20-sep-15 U$0.15 -38.8% small near-term loser
Stocks To Follow Closed Positions 2014
Closed in 2014 closed close price
Fortuna Silver FVI.to jan'14 C$2.80 23-dec-13 C$3.19 13.9% small ST trade closed
Rio Alto Mining RIO.to jan'14 C$2.06 07-jun-13 C$2.30 11.7% trading position finally closed
Network Expl. NET.v feb'14 C$0.01 22-jul-12 C$0.005 -50.0% position closed, did nothing
Tahoe Resources TAHO feb'14 U$13.10 08-apr-13 U$21.72 -65.8% short closed due to reality
Darwin Res DAR.v mar'14 C$0.10 14-jul-12 C$0.045 -55.0% tiny risk play dropped
B2Gold BTO.to mar'14 C$3.07 28-nov-12 C$3.35 9.1% closed to free up capital
Pretium Res PVG mar'14 U$5.38 22-nov-13 U$6.50 -20.8% short closed as port longer
Gold Res Corp GORO may'14 U$5.07 26-jan-14 U$4.12 16.7% took profit
Bear Creek Min BCM.v may'14 C$1.63 23-mar-14 C$2.05 25.8% Took profit, sm near-term win
Eco Oro Min. EOM.to aug'14 C$0.48 22-sep-13 C$0.26 -45.8% sold small loser to make room
True Gold TGM.v sep'14 C$0.395 02-feb-14 C$0.41 3.8% M&A won't happen, sold
Santacruz Silver SCZ.v sep'14 C$1.04 26-jan-14 C$0.86 -17.3% silver/M&A spec, rel. small
Timmins Gold TGD nov'14 U$1.38 09-apr-14 U$0.99 -28.3% failed trade, sell, raise cash
Kinross Gold KGC nov'14 U$2.90 20-oct-14 U$2.15 -25.9% V small trade, didn't work, chau
Salazar Res SRL.v hold C$0.28 02-mar-14 C$0.145 -48.2% lost China sponsor
Stocks To Follow Closed Positions 2013
Closed in 2013 closed close price
USA Graphite USGT feb'13 U$0.93 08-jan-13 U$0.17 81.7% short tgt made/trade closed
Lachlan Star LSA.to feb'13 C$1.50 30-sep-12 C$0.95 -36.7% sold to reduce port risk
United Silver USC.to mar'13 C$0.21 28-oct-12 C$0.095 -54.8% small Ag sector trade, failed
Aurcana Corp AUN.v apr'13 C$1.07 11-nov-12 C$0.55 -48.6% closed on poor YE results
Gold Res Corp GORO apr'13 U$14.11 25-jan-13 U$9.38 33.5% short tgt made/trade closed
Marlin Gold MLN.v apr'13 C$0.075 10-feb-13 C$0.065 -13.3% closed trade
Bear Creek BCM.v may'13 C$2.58 01-apr-13 C$2.40 -7.0% near-term, time ran out
Lupaka Gold LPK.to may'13 C$1.12 23-oct-11 C$0.32 -71.4% towel thrown in
Tahoe Resources TAHO may'13 U$18.62 08-apr-13 U$14.70 21.1% took profit on ST short
OceanaGold OGC.to jun'13 C$3.03 16-sep-12 C$1.18 -61.1% sold on gold drop
IMPACT Silver IPT.v jun'13 C$1.14 13-jan-13 C$0.62 -45.6% sold on silver drop
Duran Ventures DRV.v jun'13 C$0.045 10-may-13 C$0.025 -44.4% ST trade never worked
Plata Latina PLA.v jun'13 C$0.79 10-apr-12 C$0.13 -83.5% closed
Bellhaven BHV.v jun'13 C$0.065 03-jun-13 C$0.12 84.6% closed ST trade
B2Gold BTO.to aug'13 C$3.07 28-nov-12 C$3.44 12.1% sold 1/2 to raise cash
Colossus Min. CSI.to aug'13 C$0.72 24-jul-13 C$0.79 9.7% closed thru nerves on future
27

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Pretium Res PVG.to aug'13 C$8.20 11-jun-13 C$10.14 23.7% closed to raise cash
Bear Creek BCM.v sep'13 C$2.06 30-may-13 C$2.20 6.8% sold on pol risk decision
MAG Silver MVG oct'13 U$7.00 12-sep-13 U$5.62 19.6% near-term short
Gold Res Corp GORO oct'13 U$9.52 03-may-13 U$4.98 47.7% short tgt made, covered
AQM Copper AQM.v oct'13 C$0.31 16-oct-11 C$0.125 -59.7% closed failed trade
First Majestic AG nov'13 U$11.51 07-nov-13 U$10.50 8.8% v near term short, closed
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dec-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-apr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
28

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Stocks To Follow Closed Positions, 2010
Closed in 2010 closed close PPS
B2Gold Corp BTO.to Jan'10 C$0.88 08-nov-09 C$1.49 68.2% target made, trade closed
Radius Gold RDU.v Jan'10 C$0.18 23-aug-09 C$0.40 122.2% target made, trade closed
MAG Silver MVG mar'10 U$5.60 23-nov-09 U$7.28 30.0% closed in pdac week
Riverside Res RRI.v mar'10 C$0.435 20-sep-09 C$0.60 37.9% closed in pdac week
Amarillo Gold AGC.v mar'10 C$0.81 31-may-09 C$0.70 -13.6% closed in pdac week
B2Gold Corp BTO.to apr'10 C$1.24 18-feb-10 C$1.50 21.0% target made, trade closed
Lumina Copper LCC.v apr'10 C$0.84 14-jun-09 C$1.55 51.2% total position now sold
Troy Resources TRY.to may'10 C$1.10 03-may-09 C$2.25 104.5% sold on negative results
AuEx Ventures XAU.to may'10 C$2.51 24-may-09 C$3.38 34.7% trade closed
Nevada Copper NCU.to jun'10 C$3.27 14-mar-10 C$2.03 -37.9% need to lower Cu exposure
Carpathian Gold CPN.to jun'10 C$0.39 14-mar-10 C$0.35 -10.3% too exposed to cap raising
Amerix PM Corp APM.v jun'10 C$0.065 08-nov-09 C$0.05 -23.1% victim of macro bear
Antares Minerals ANM.v jun'10 C$1.42 06-dec-09 C$2.10 47.9% sold half
Vena Resources VEM.to jun'10 C$0.37 31-may-09 C$0.23 -37.8% sold half
Minera Andes MAI.to sep'10 C$0.75 28-jul-10 C$0.95 26.7% ST trade closed
Gold-Ore Res GOZ.to sep'10 C$0.52 01-aug-10 C$0.75 44.2% target made, trade closed
B2Gold Corp BTO.to sep'10 C$1.45 25-may-10 C$2.01 34.5% target made, trade closed
Blue Sky Uran BSK.v oct'10 C$0.41 19-may-10 C$0.22 -46.3% v small v bad trade closed
Dia Bras Expl DIB.v oct'10 C$0.14 30-aug-09 C$0.35 150.0% target made, trade closed
S. Amer. Silver SAC.to nov'10 C$1.38 24-oct-10 C$1.60 -15.9% loss on short, small fail
Ventana Gold VEN.to nov'10 C$7.92 27-jun-10 C$13.51 70.6% trade closed on buyout
Lumina Copper LCC.v nov'10 C$1.42 11-aug-10 C$3.65 157.0% trade closed
Antares Minerals ANM.v dec'10 C$1.42 06-dec-09 C$8.40 491.5% trade closed
Rio Alto Mining RIO.v dec'10 C$0.69 23-mar-10 C$2.16 213.0% trade closed
Coro Mining COP.to dec'10 C$0.585 03-oct-10 C$1.24 112.0% target made, trade closed
Stocks To Follow Closed Positions, 2009
Closed positions closed closing PPS
Cardero Res CDY/CDU.to May'09 U$1.20 03-May-09 U$0.87 -27.5% sold on negative news
Eastmain Res. ER.to May'09 C$1.04 06-May-09 C$1.315 26.4% trade closed
Radius Gold RDU.v May'09 C$0.165 03-May-09 C$0.235 42.4% trade closed
Latin Amer Min. LAT.v May'09 C$0.12 03-May-09 C$0.158 29.2% trade closed
Aquiline Res. AQI.to July'09 C$2.03 16-Jun-09 C$1.68 -17.2% took loss, bad timing
Chariot Resources CHD.to Aug'09 C$0.20 12-Jul-09 C$0.415 107.5% trade closed
Castle Gold CSG.v Sep'09 C$0.64 02-Aug-09 C$0.60 -6.3% ST trade didn't work out
Guyana Goldfields GUY.to Sep'09 C$2.30 12-May-09 C$4.50 95.7% profit taken
Los Andes Copper LA.v Sep'09 C$0.09 21-Jun-09 C$0.09 0% trade closed
Pediment Gold PEZ.to Oct'09 C$0.80 09-Aug-09 C$1.00 25.0% trade closed
Minera Andes MAI.to Oct'09 C$0.68 03-May-09 C$0.71 4.4% too much bad news
Dynasty Metals DMM.to Nov'09 C$4.18 03-May-09 C$6.01 43.8% half sold
Rusoro Mining RML.v Nov'09 C$0.55 03-May-09 C$0.57 3.6% underperformed
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
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