IKN #385Premium

,
The IKN Weekly
Week 385, September 25th 2016
Contents
This Week: In today’s issue, Reviewing Buy/Hold/Win, Calling the near-term.
Fundamental Analysis: The case for Riverside Resources (RRI.v) shares today.
Stocks to Follow: Overview, Sandstorm Gold (SSL.to) (SAND), Cordoba Minerals (CDB.v),
Atico Mining (ATY.v), Regulus Resources (REG.v), Continental Gold (CNL.to).
Copper Basket: Overview, NGEx Resources (NGQ.to), Ivanhoe Mines (IVN.to), Capstone
Mining (CS.to) and Copper Mountain (CUM.to).
Low Cost Producer Basket: Overview.
Regional Politics: Regional Risk Review next week, Chile copper strike season is with us,
Argentina: An upcoming national strike action by the largest union, Argentina: Veladero fall-out,
Strike actions update, The Ecuador Mining 2016 conference gets protests.
Market Watching: Minera IRL update, A Keith Barron and Ecuador opportunity via Aurania
Resources (ARU.v) or Firestone Ventures (FV.v) (or both), The Denver Gold Show and Dundee.
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
• We review Riverside Resources (RRI.v) and its current position as major mining
companies reawaken from their long slumber makes it, in my view, a compelling buy.
• Check out the Keith Barron Back in Ecuador” piece in ‘Market Watching”, those of you
who like to speculate on second-guessing the intentions and movements of shell
companies (or in this case quasi-shell companies) will surely find it interesting.
• Forget the machinations in gold (for a while at least), the most interesting metal out
there today is copper. It doesn’t have to shoot higher in the near-term any longer to
attract attention, the way its U$2.05/lb to U$2.10/lb bottom has held consistently over
the last six months is enough to attract the larger money into the sector now.
• Beware Argentina Part Deux! Fools rush in where angels fear to tread.
Reviewing “Buy. Hold. Win.”
“The truth will set you free. But not until it is finished with you.”
David Foster Wallace, Infinite Jest, 1996
I claim no intellectual breakthrough or original genius because it’s not a new or original idea,
the concept has been around stock markets since the year dot and there have been all sorts of
catchy phrases and sayings to sum it up over the decades. But here in The IKN Weekly around
six months ago the strategy got tagged with a simple little ditty, “Buy. Hold. Win.” and I’ve
been using it ever since. So first a bit of recent history:
1

,
In IKN354 dated February 21st I was already noting the change in the air with words like these
(for exact context on the way BTO was bouncing, but extrapolating to the general scenario):
“This is healthy, this is good, this is what we, the junior speculator, want to see in a
market that’s coming back to life after years in the hinterland.”
But I was still trading in near-term mode at that time, the penny hadn’t dropped and it took me
until IKN361 dated April 10th to admit that my near-termism was a mistake. Here’s the key
phrase from that weekend as I admitted the error (bold typed/underlined so it was back then):
“It’s time to be long gold stocks, ladies and gentlemen. It’s time to buy and
hold. It’s time to position for the big wins, not the small fliptrades.”
A couple of issues later that got distilled down to “Buy. Hold. Win.” and here we are today.
Enough navel gazing, let’s see how that call’s getting on. First up a six month chart of the
precious metals ETF (GDX) versus the S&P 500 index (SPX) to give us a broadstroke idea of
miners versus broad market and here’s the running result:
That looks pretty solid, the GDX is up 40% since the end of March (the six month chart allows a
little extra GDX upside instead of starting at April 10th exactly, please forgive) while SPX is up
around 7% (which by the way, isn’t bad at all for the bigboard index). But that’s not all the
story, not by a long chalk. Rather than considering the full half year between my change of
heart, here’s just the last three months of the same parameters.
Suddenly we’re looking at a broad market that’s been in excellent rally mode (up 8% approx)
and a GDX which has only managed to flatline. In short, the “Buy. Hold. Win.” idea started well
enough but it’s not been anything like as successful over the Northern summer months,
2

,
something that needs to be taken into account. The house policy isn’t going to change anytime
soon (see next piece for more) but neither am I arrogant and all-knowing, there’s a slight doubt
arising about holding for the long-term and the next quarter’s worth of action in the metals and
the miners as we get to the end of the year requires closer observation.
Calling the near-term
In last week’s intro the “FOMC Time” piece ended with, “We tend to like oversold markets,
especially when we’re on the cusp of a Fed that won’t raise rates this week”. Put simply and
without false modesty, that one worked.
Thanks to the Fed doing exactly what it
GLD gold holdings, last ten trading days (metric tonnes)
was always going to do market neuroses 960
around precious metals lifted for a day or 955
950
two and GLD gained 2.1% on the week,
945
GDX was up 4.1% on the week and GDXJ 940
was up 3.4% on the week (notable how the 935
930
big miners beat the small miners, a couple 925
more words on that in the Low Cost 920
915
Producer Basket below). But those gains
910
could have been a lot more because from 905
mid-Thursday on, nerves returned and the 900
market sold off part of the gains in the
miners. Okay, fair enough and from where
I’m sitting it’s because the tone of the bear
argument has changed from “Gold Gonna Die” to a more subtle “Gold Has Little Upside”, the
message that bullish insto jocks fear in times of alpha seeking. In other words, the same old
BS. Meanwhile in the real world GLD gold holdings are back over 950 metric tonnes (951.22mt
to be exact), including jumps on Thursday and Friday when the equities underwritten by gold
were selling off. That’s real and factual and you can count it with numbers, that’s not a Roubini
musing or a Ritholtz rant.
The IKN position is to allow the gold permabears to be permabears, let the nervous be nervous
but also not to get involved with second-guessing every move, be it up or down. It’s been a
slack quarter for the miners for sure but it’s hardly been a disaster either, so let’s see how 4q16
rolls out. The other thought arising in my limited brain this Sunday morning is to add in a
thought mentioned in a recent intro section (I forget which one and don’t want to search it out,
sorry) that we’re now moving into a stock-picking phase, one where the individual company will
outperform or underperform peers on its own merits, the tide won’t lift them all any longer.
That’s the kind of place the fundies analyst likes the best.
Fundamental Analysis of Mining Stocks
The case for Riverside Resources (RRI.v) shares today
It’s not going to be a long and details ‘Fundamentals...’ section this week, but all the same I
think it’s a worthy one because for a couple of reasons I want to revisit Riverside Resources
(RRI.v) and consider the state of play in this long position:
1) Apart from a snippet or three in the running ‘Stocks to Follow’ commentary I haven’t
given the company much airtime since opening coverage in the NOBS report of IKN372,
dated June 26th. That’s three months and that’s a gap.
2) I’ve been thinking over the potential advantages of either buying or adding more this
week and after bouncing a few idea off a couple of trusted friends in the business,
would like to lay out and expand the idea here.
Today’s does contain some fundies analysis but the business end of the article is more of a
3
61/21/9 61/31/9 61/41/9 61/51/9 61/61/9 61/91/9 61/02/9 61.9.12 61/22/9 61/32/9
mt
source: SPDR GLD data

,
thinkpiece, the strategic reasons as to why now is the right time to buy, add and then hold RRI
stock. Let’s start with a few basics and although this isn’t a full NOBS fundies report today,
here’s the topbox that shows present day corporate structure:
Shares out: 37.372m
Options: 2.947m
Warrants: zero
Fully diluted shares: 40.319m
Current share price: C$0.43
Market Cap: C$16.07m
Approx working cap per S/O: 9c
All prices are in Canadian Dollars unless stated. Forex U$0.80=CAD$1.00
The share total remains rock solid (as it has done for literally years) at just over 37m out, very
few options and no warrants, the current market cap in Loonies puts it at just under U$13m in
pecunia franca. The main man at RRI is still of course President and CEO John-Mark Staude
(and to correct an error I inadvertently lapsed into some French last week and called him
“Jean-Mark”, apologies due). Since we last spoke RRI has added a VP Exploration in Ron Burk,
who has come from the RRI JV partner Centerra. That’s an indication that exploration work is
going to move up gears at the company and Staude can’t do it all by himself.
Next a share price chart that compares RRI to the Gold & Silver Index (XAU) in the period since
The IKN Weekly recommended the stock and the result at 42% up is “so far so good”, even if
we take into account that the large volume spike you see there on the left is the next trading
day after IKN372 that popped the stock higher. I personally didn’t get the cheapest prices but
that’s okay, these things happen and with nearly 40% between this weekend’s price and my
target (one I consider reasonably modest under the circumstances) I’m not one to complain.
As for company financials, we’re not going to do the whole range of usual suspect charts today,
just the ones that matter in current focus and so here’s working capital and liquidity:
RRI: Working capital
7
6
5
4
3
2
1
0
4
31.peS 31.ceD 41.raM 41.nuJ 41.peS 41.ceD 51.raM 51.nuJ 51.peS 51.ceD 61.raM 61.nuJ tse61.peS
$m
source: company filings, IKN ests

,
RRI: Cash and ST investments
7 (liquidity)
6
5
4
3
2
1
0
5
31.peS 31.ceD 41.raM 41.nuJ 41.peS 41.ceD 51.raM 51.nuJ 51.peS 51.ceD 61.raM 61.nuJ
CAD$m
ST invest
cash
source: company filings
Below is the expenditures breakdown, which gives a good idea of the burn rate. All three of
these charts above and below have the quarter to June 2016 (RRI.v’s 3q16) added since the
last time we spoke.
RRI: Expenditures breakdown
0.7 (ex-impairments/write downs)
0.6
0.5
0.4
0.3
0.2
0.1
0
-0.1 31.ceD 41.raM 41.nuJ 41.peS 41.ceD 51.raM 51.nuJ 51.peS 51.ceD 61.raM 61.nuJ
$m
share based payments
rent
other
office exp.
source: company filings, IKN ests
The idea behind showing you these three charts is to demonstrate that RRI continues to be
parsimonious and that John-Mark Staude’s reputation of being tighter than a fish’s sphincter
when it comes to spending unnecessary cash remains intact (e.g. he and his team always fly
economy and they put up site visit groups in communal hostal rooms with bunk beds). As he
himself noted in during his presentation at the Beaver Creek show (1) RRI has no debt, $3.25m
cash and hasn’t run an equity raising in six years (!!), but despite the lack of has managed to
keep cash and liquidity levels in good shape via deals struck and careful use of funds. Add in
that over 50% of shares out are in tight hands of long-term institutional backers and the result
is an optimally shareholder-friendly corporate structure that cannot be faulted in style or in
substance.
Aside from the appointment of a new VP Expl we’ve had other news from RRI in the period too,
the first event being the NR of September 12th (2), when RRI announced that its newly acquired
and very prospective Glor property was now being actively explored by its JV partnership with
Centerra (CG.to). This phase one is baseline geology work, is paid for by CG (as is the prospect
generator model) and is about defining drill targets for the second phase of exploration. We can
expect results from phase one in 4q16, but as they’re not drilling yet I wouldn’t expect any big
price moves from NRs about Glor this year.
The second piece of news came more recently on September 20th when RRI announced that JV
partner and bigboy Chilean copper company Antofagasta (ANTO.L) (3) was moving ahead at
the RRI owned Thor property in Sonora Mexico. Here’s a snippet from the NR with the main
information:
Company geologists, working in close collaboration with Antofagasta geologists, have
completed initial detailed field mapping, prospecting and rock chip sampling. Results
to-date are promising and have resulted in drill targets being defined, with initial drill
testing now planned. This most recent phase of exploration was designed to work up
target areas on the southern portion of the property.

,
As CEO Staude pointed out during his presentation at Beaver Creek (here’s the link again (1)
and it’s well worth watching), Thor is the just about the only project outside of Chile on which
ANTO.L is advancing this year. More on that subject below.
I’m going to round off this overview quickly by offering you a couple of information slides from
the CEO Staude presentation at Beaver Creek which show what RRI has done in the last 12
months and what it expects from the near and medium-term future. I’m doing it this way
because I don’t want to blah-blah too much and would like to get to my main point, so chew
them over without extra comment from yours truly.
Why I like RRI at the moment
Let’s be clear, the above overview is useful enough and it gets us up to date on the company in
several areas, but it’s not essential reading either and it’s not why this note appears today. That
comes now, the reasons why I think RRI.v looks tremendous value at its current share price
and in what’s left of 2016 but before diving in I want to clearly qualify what I mean by the time
window here. I am not talking tomorrow, next week or even next month so do yourself a
favour, don’t get trigger happy and buy up the stock at any price just for the sake of buying it,
there will be time enough I believe. The current window of opportunity for my taste is from
now until roughly the end of the year, a timeframe that I consider “near-term” but you might
think differently*.
Okay, that’s out the way and now to business starting with the whole idea of a “prospect
6

,
generator (i.e. RRI.v) and the normal way it pitches its business model to the general public.
For this I’m going to be lazy and quote directly from the RRI.v website (4) because they do a
good and succinct job of definition:
What are the benefits of the Prospect Generator Model? The business of mineral exploration is
inherently risky. The Prospect Generator business model works to mitigate some of that risk by
exposing shareholders to the upside of mineral discoveries, while conserving capital. This allows
the Prospect Generator to limit share dilution (number of shares outstanding) and increases the
company's longevity. The odds of making an economically viable mineral discovery are low, and
thus it makes prudent business sense to obtain partner funding for the higher-risk and higher-cost
capital expenditure required to drill test prospective targets.
And that’s the normal way the model is sold. The prospect generator has fingers in many pies,
it gets Other People’s Money (OPM) to move the projects forward and a free ride on a minority
of asset, if they get lucky and find a winner among the several free-ride projects they have
going the stock jumps higher. We all live happily ever after.
But it has to be done right, it’s important to keep your capital structure tight and as we’ve seen
above today (as well as in the IKN372 NOBS report) RRI.v does that very well, so if the big win
comes along the tight share structure pings the stock price higher and we get our big win. But
on thinking about things more carefully in the last week or so I’ve concluded that the above is
only one of three ways in which RRI.v can return a strong share price win to us, its retail
holders and followers. Here the new list and why I think the company is such a great buy:
1) Discovery: That’s the scenario outlined above, where the partner hits the pay dirt and
everyone wins. The prospect generator such as RRI.v will have more than one exploration
program going on with more than one JV company and that increases the chances of success
on this score, you’re not in a normal exploreco situation where the company is swinging for the
fences on one property. A classic winning scenario here is that of Reservoir Minerals (ex-RMC.v)
which got Freeport McMoRan (FCX) to do some drilling at a place called Timok, the program hit
an eye-popping discovery hole at Cukari Peki, the stock shot from pennies, a couple of years
down the line got bought out for over $9 by Nevsun, Miles Thompson never has to work
another day in his life if he so chooses.
It needs to be said that in its eight or so years of existence, up to now RRI.v hasn’t had the
luck to be involved in a major discovery. Yes it’s done good work and yes there have been a
couple of decent little deals along the way, such as developing Sugaloaf and then selling it for
cash and shares to Croesius, but no massive home run win as yet. A potential negative that you
should consider in the mix, God rolls her dice.
2) Appreciation of fixed asset value: This is not something unique to RRI or even to other
prospect generators, but the circumstances of RRI today offer wat I consider to be superior
leverage to a market now pricing back up fixed land assets in cash terms. We’ve already seen
this in 2016 year to date of course, this time last year market caps were often pricing
concession assets of companies at plain zero with many juniors trading at cash or even below.
The rebound in gold and its metallic friends) has meant that “land held” has again become
valuable in market cap terms, in-situ resources have moved from U$10/oz Au to U$50/oz Au,
juniors have appreciated on the rising tide no matter whether they hold the next Yanacocha or
Moose Pasture.
As stated, this effect isn’t unique to RRI but its company-specific advantages are that a) its low
market cap and tight share structure b) a lot of quality exploration land in its portfolio (for more
on the way it goes about choosing its concessions, watch CEO Staude’s Beaver Creek
presentation) and at present 12 separate projects on its books, with only a few of them under
JV deals which means c) you’re getting a lot of land leverage bang per market cap buck. If, as I
and many other strongly suspect, we’re only in the first stages of a bull market for precious
metals (even base metals) stocks, quality land assets can only appreciate in value so here
comes the point(cid:1) RRI won’t need to make a massive, game-changing drill program discovery
at one of its JV projects in order to see its share price move higher. Simply “holding land” (the
7

,
FF.v ‘mineral bank’ concept in crude form) will be enough for us, the retail investor, to see a
positive return on our investment at current share prices.
3) Majors and their budgets. The first two reasons to expect share price upside from RRI as
seen above are not limited to the prospect generator model. A classic junior can win with
discovery success, a classic exploreco may get the same kind of fixed asset valuation lift to its
share price assuming the bull market for gold and the miners continues as expected. But this
third leg of “why RRI now” is something that benefits the prospect generator more directly and
it’s another situation in which RRI is in prime position among its peers to benefit. As I watched
Staude’s presentation last week, one of the points he made was that Antofagasta had
sponsored RRI to the tune of $600,000 and developed the Thor project out of the partnership,
a project now about to be drilled by the JV. And when CEO Staude said this...
“..this is one of the few projects they will drill outside of Chile in 2016 and
they’ve chosen to do that with Riverside”
..those words stuck in the head, I couldn’t shake them off, they kept floating back all day.
Then it came to me: Antofagasta isn’t the only major mining company in the world.
Those of you familiar with the inner workings of major mining companies will know that they
can be are often are bureaucratic, slow-moving and hierarchical corporate structures. Getting a
change in policy direction from a major is akin to the turning circle of an oil tanker, much time
and seemingly endless strings of meetings pass between the kernel of a good new idea and its
adoption. A typical place to see this in action is in its financial budgeting, which is almost always
decided at the end of one year for the next and once in place, doesn’t budge (much). Now for
sure there is always some amount of discretionary cash and budget available but for the large
part once a figure has been set for the year, it stays that way.
Now cast your mind back to late 2015 when the major miners were deciding on their 2016
expenditure regimes. Guess how much they were alloting to pure exploration plans? Yup, you
got it, as little as possible. When things get tight non-core expenses get chopped the hardest
which, just for one example, is why we heard about so many geologists “deciding” to “do
independent consulting” in 2014 and 2015. Then suddenly the market turned in early 2016 and
gold and its ilk went from bust to boom, but that was too late for the budget-meisters in the
major mining companies (barring again the typical amount of minor leeway they get from
discretionaries). But things have stayed good and are looking up and as a result, the next phase
of the return of capital to mining companies will include budgeting of 2017 expenditures and
you can bet many many dollars to one single classic hole-in-middle donut that the exploration
and grassroots development departments of (deep breath) BHP, Rio Tinto, Barrick, Newmont,
Peñoles, Freeport, Agnico Eagle, Pan American Silver, Grupo Mexico, Teck, Zijin, Polyus, Anglo
American, Goldcorp and a host of other names they didn’t come to me in that 20 second stream
of consciousness are going to have more money at their official disposal. And that’s where RRI
comes in, for sure it’s not the only prospect generator that is going to benefit from new deals
with big partners in 2017, but its circumstances lend its shares to be a good bet:
• Low market cap (be clear that I like Lara (LRA.v) a lot, but its CD$45m market cap
offers less potential explosive upside).
• Tight share structure (just $10m of extra asset value adds 27c to the RRI share price)
• Proven partner with large companies (Centerra and Antofagasta are the current
examples)
• Plenty of available projects (12 assets on the RRI books and Staude saying that they’re
about to get some more)
• Right geography (Northern Mexico is generally accepted as miner-friendly, having a
partner like RRI with deep local knowledge helps that process even further and keeps
you away from potential pitfalls (e..g narco gangs).
8

,
After that thought about what Staude said about ANTO occurred to me, I made a few discreet
inquiries and got plenty of confirmation, including from one acquaintance who works in a major
precious metals mining company (cannot name the person or the company, sorry) who told me
“we are champing at the bit” and just waiting for 2017 to come around so their idea get the
required funding for projects and baseline exploration plans.
The bottom line; why you should own RRI today
I entirely agree with the normal prospect generator philosophy: Discovery of a real mine is a
hard thing, so you spread yourself thin, get plenty of early stage projects on board, take a free
ride minority in each one, keep the structure hope one of them hits the big time, everybody
wins. I also agree that as the tide of fixed asset valuations for properties rises so will the
valuations of companies such as RRI with lots of land compared to small market capitalizations.
But it’s the third reason there above that has my attention at the moment, because “the
discovery” is almost impossible to time and the “the fixed asset revaluation” timing could be
sooner or could be later, it’s tough to tell and dependent of the vagaries of the gold price.
However, by recognizing that 1) RRI has the type of early stage properties that larger mining
companies want to explore, 2) majors currently have their hands tied by internal budget
restrictions and 3) come January 2017 new fresh money is about to be injected into those cash-
starved departments for the first time in probably three years means that the amount of
dealflow RRI will get in 2017 is going to move up sharply. That’s the type of real deal that
keeps its treasury supplied, gets projects and programs working, adds value all round and will
show up in better share price valuations even (and I repeat), even if none of the RRI projects
hits one of those dreamed-for world class discovery holes in the meantime.
It’s always dangerous to claim zero downside risk in mining stocks, fate has bitten all of us on
the nether regions for that type of statement but in the case of RRI today, the chances of it
dropping significantly from its current sub-U$13m market cap when backed by a quality
management team, prospective land packages and over C$3m in cash are low indeed, they’re
basically risked to a drop in gold and that’s all. This stock at these prices today is as close as
they get to a no-lose proposition in the junior mining world as you get and that’s because the
market hasn’t woken up to the benefits RRI will enjoy in 2017 once major-level sponsors have
more cash to go out and explore with. In 2017 and beyond RRI may or may not get lucky and
be on the receiving end of one of those game-changing drill holes but if it does, chances are
that it launches off from a 60c or 80c share price, rather than the 43c of this weekend. The
time is ripe to make a longer-term investment in Riverside Resources (RRI.v), a well
run prospect generator company that’s doing the right things in the right places at the right
time, all in a impeccably shareholder-friendly way. By my reckoning you have until the end of
2016 to position at the current price deck.
*I can’t tell you how much the Apple ‘Think Different’ slogan grated on me. Yes, my life is that sad.
Stocks to Follow
With the GDX up 4.1% and the GDXJ up 3.4% last week, we’d want to see around 4% added
to any given junior mining stock to be happy about its weekly performance. The ones that did
well include Top Pick B2Gold, Top Pick Regulus, Wesdome, Atico and Riverside, all those up at
least 7% (and RRI scoring a 16.2% improvement). But there was only one other winner
(CNL.to) and oddly, we had a full seven losing stocks (SAM.to, SAND, TK.v, CDB.v, MAD.v,
LRA.v, FCV.v) and that’s not good under the circumstances, so even though the personal back
pocket scored a clear paper win this week, it’s hardly my idea of a successful period. One
unchanged stock, RPM.v.
There are currently 14 open positions on the ‘Stocks to Follow’ list, one less than our self-
imposed maximum of fifteen at any given time. Twelve stocks are in the green, two in the red.
9

,
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$3.84 82.0% tgt $5.30 IKN375
Regulus Res REG.v hold C$0.64 06-apr-15 C$1.46 128.1% LT exploreco top pick
Starcore Intl SAM.to STR buy C$0.62 10-jan-15 C$0.72 16.1% $1.04 tgt, excellent value
Long positions (in current order of preference)
Sandstorm Gold SAND buy U$3.80 17-apr-16 U$5.06 33.2% $7 tgt IKN378, trading well
Tinka Res TK.v buy C$0.195 19-apr-16 C$0.20 2.6% Top value under radar Zn play
Wesdome Gold WDO.to hold C$1.72 22-may-16 C$2.73 58.7% $2.88 tgt IKN381 v strong
Cordoba Min. CDB.v buy C$0.73 15-sep-16 C$0.82 12.3% new position, $1.50 tgt
Atico Mining ATY.v buy C$0.51 24-jul-16 C$0.56 9.8% 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$0.43 10.3% Added IKN380, 60c tgt
Continental Gold CNL.to buy C$2.68 22-may-16 C$4.36 62.7% permit 4q16/1q17, $4.80 tgt
Miranda Gold MAD.v spec buy C$0.125 03-jul-16 C$0.135 8.0% Small flipper, now waking up
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$1.31 13.9% solid biz model
Focus Ventures FCV.v spec buy C$0.23 01-jul-12 C$0.075 -67.4% 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
Now for some notes on current basket stocks.
Overview: For a week of market moving news on the macro level, there really wasn’t that
much in the way of company-specific news on our preferred bunch. When added to the fact I
went into quite a lot of detail on the names last week, today’s ‘Stocks to Follow’ snippet section
is limited to just a few names.
Cordoba Minerals (CDB.v): CDB spent the week in the low-80s, which is a reasonable
performance on light volume. Catalysts to expect are he next set of drill results from the current
20,000m program, then the Alacran initial 43-101 resource in Q4. I’d expect the stock to trade
quietly until those and that’s fine by me, this is one I’m going to run over the long-term.
Atico Mining (ATY.v): The 7.7% improvement on the week looks pretty, but in fact the stock
is still only bouncing around inside its trading range and volume remained very light all last
week. The rise in the price of copper will obviously help ATY if it continues, on a fundies level
10

,
ATY still appeals as veyr cheap at these levels.
Sandstorm Gold (SSL.to) (SAND): Yes, I’m worried about this SAND position now as for the
second week running and on no news,
the stock price got stuffed against the
trend of peers. This chart that tracks the
last ten days of SAND against the XAU
index is a suitably gruesome visual of its
weakness, a near-20% gap in two
weeks. Not good.
I’m leaving it as a mystery for the
moment, we’re near the end of 3q16 and
can expect a production (well, sales
really) update from SAND in the first
days of October. With solid fundies in
hand we can revisit and it may just be
one larger seller for their own sweet
reasons, but I shouldn’t like to see this slipping back to a 4-handle in the meantime.
Regulus Resources (REG.v): REG and your author are still trying to work out the right dates
for a site visit to Antakori and it’s not easy, what with one thing and another at REG, at IKN and
also the fact that the “soft JV” between the company and Coimolache means they have to take
into account the wishes and preferences of its partner as well. What I do know is that the visit
isn’t happening next week, it’s now slated for either the first or last week of October.
In trading REG did fine and caught the couple of bids that I mentioned were missing this time
last week. In local news, please see ‘Regional Politics’ below because there are rumblings of
discontent from the locals around the project site (though not about the Antakori project itself,
more than one mining company up there). Likely to be more light than heat, so nothing much
to worry about.
Continental Gold (CNL.to): I let my mind wander on Wednesday evening and wondered
what exactly to do if CNL broke through
my $4.80 price target before the EIA
permit gets awarded at the end of the
year (or the beginning of the next, CNL is
now giving itself some leeway). The
reason for the musings starts with this five
day chart that shows the stock’s trading
strength through Thursday morning, only
for it to fade and give up most of its gains
come the Friday close.
The Copper Basket
After thirty-eight weeks of 2016, The Copper Basket shows a 85.55% gain to level stakes.
11

,
company ticker price 1/1/16 Shares out Market Cap current pps gain/loss%
1 Ivanhoe Mines IVN.to 0.61 778.96 1690.34 2.17 255.7%
2 HudBay Min. HBM.to 5.31 235.23 1150.27 4.89 -7.9%
3 Reservoir Min. RMC.v 4.08 48.69 449.41 9.23 126.2%
4 Capstone Min. CS.to 0.44 382.04 297.99 0.78 77.3%
5 NGEx Resources NGQ.to 0.65 205.06 258.38 1.26 93.8%
6 Western Copper WRN.to 0.38 94.19 100.78 1.07 181.6%
7 Trilogy Metals TMQ.to 0.395 104.33 79.29 0.76 92.4%
8 Cordoba Min. CDB.v 0.16 86.86 71.23 0.82 412.5%
9 Copper Mtn CUM.to 0.445 118.8 55.84 0.47 5.6%
10 Copper Fox CUU.v 0.125 417.64 50.12 0.12 -4.0%
11 Atico Mining ATY.v 0.28 97.59 54.65 0.56 100.0%
12 Nevada Copper NCU.to 0.66 80.5 45.08 0.56 -15.2%
13 Amerigo Res ARG.to 0.205 173.61 25.17 0.145 -29.3%
14 Hot Chili Ltd HCH.ax 0.09 445.723 19.61 0.044 -51.1%
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 85.55%
A good week for the basket average, up 6.37% and above the 80% line again, powered by
seven winners (IVN.to, CS.to, NGQ.to,
The Copper Basket 2016, weekly evolution
CUM.to, TMQ.to, WRN.to, ATY.v), 100%
unimpeded by three unchanged stocks
80%
(RMC.v, NCU.to, RVL.v) and only slightly
60%
dragged down by five losers (HBM.to,
CUU.v, HCH.ax, ARG.to, CDB.v). The best 40%
moves were all upmoves and led by the 20%
Friedland monster Ivanhoe (IVN.to up
0%
16.7%) and followed by wins in NGEx
Resources (NGQ.to up 10.5%) and Western -20%
Copper & Gold (WRN.to up 10.3%).
The improvements were due to the
impressive move in the price of copper, with
spot prices touching over U$2.20/lb once
again last week and our mooted reversal
bounce is now confirmed and working out
well. Reasons for the upmove? The Fed of
course and here’s a snippet from this report
(5) that sums things up well enough:
Copper rallied to a six-week high on
Thursday as the dollar slipped after the
U.S. central bank left benchmark interest
rates unchanged, though gains were
limited by worries about slow demand
growth. Benchmark copper on the
London Metal Exchange ended up 1.9
percent to $4,855 a tonne, having
touched $4,858.50, its highest since Aug.
12. The Fed left rates on hold and
projected a less aggressive path for rises
over the coming years. That exerted
pressure on the U.S. currency, a
weakening of which makes dollar-denominated commodities cheaper for non-U.S.
firms. "Central banks are happy to support what economic growth there is with cheap
money; that's fuel for industrial metals," said Societe Generale analyst Robin Bhar.
"But the market will struggle to sustain rallies because demand isn't strong ... The
OECD pointed out yesterday that the next leg lower could come from global trade."
12
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 ht52
source: IKN calcs

,
I tend to agree with that; longer-term copper’s a good place to be (and here I am long in long-
term positions in REG.v and CDB.v, as well as a more opportunistic long in ATY.v) but for the
time being the supply overhang will stop copper from moving too far too fast.
In macro copper news, as usual the words written by Andy Home on base metals are highly
recommended and in his op-ed last week entitled “Are China's booming copper exports the new
normal?” (6) he takes the 30,000 foot view of the flow of copper into and out of China,
including the concentrates and refined metals markets as well as the potential reasons for the
increase in refined metal exports out of the country, a new development in the world market.
Summing up the price action last week, my view hasn’t changed all that much even though a
welcome move to U$2.20/lb has come around. We’re still very much inside the recent trading
range, so it would be a big mistake at this point to shout “to da moon Alice” on copper. I’m
keeping with my mildly bullish, long-term attitude and happy with the amount of portfolio
exposure I have to the metal at this time.
Now for the regular copper warehouse inventory bullet points feature:
• Overall copper inventory levels in the world’s three systems hardly changed last week,
up just 2,262 metric tonnes (mt) (+0.4%) to finish the week at 551,418mt.
• Shanghai’s SHFE inventory levels continued with their recent trend and dropped again, ,
down 5,549mt (-4.1%) to finish the week at 130,780mt as the typical mid-Q4 100k
level beckons closer. Quite a turnaround from the record-breaking stocks back in the
spring.
• Over at he LME, stocks rose slightly but not by the massive chunks we saw in August
and early this month. Copper in warehouse rose by 7,650mt (+2.2%) to finish Friday at
356,875mt, but this time there’s not much to read into the figures.
• Comex stocks rose again and kept their streak intact, but only by a very thin 161mt
(+0.3%) to this weekend’s 63,763mt.
Here’s the Shanghai-only chart, which maps the continued slow drop in copper held by this
system. The trend may bottom out now, it may continue through to November.
Shanghai Futures Exchange Warehouse Stocks, 2014-2016
400000
350000
300000
250000
200000
150000
100000
50000
13
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
Now for notes on a couple of the basket component stocks:
NGEx Resources (NGQ.to): The interesting thing about NGQ this week is its new
promotional push, but down South rather than up North. This week the “Constelación”
(Constellation) project (ex-Vicuña) was promoted in the press, but the mouthpiece was the
most interesting part as it was mainly done by the San Juan Minister of Mining (7) Alberto
Nelson and as the press conference and whole media show was picked up by Argentina’s State

,
news agency Telam, it got plenty of coverage in other places too.
Minister Hansel (he’s so hot right now) called the bi-national Constelación (translated). “...the
largest project in South America, even bigger than Pascua Lama”, and said it would cost U$3Bn
to build and would produce metals for the next 50 years. Hansel said that it was possible to
develop the project now that the fiscal burden in Argentina had changed, metals exports were
no longer subject to extra duties, imports of capital goods were easier and remittances of
profits would not be slowed or subject to extra tax. He finished with “Now is the moment to
invest in Argentina companies like NGEx has updated their economic model in light of the new
rules that we have in the country, even more considering that the price of gold is rising”.
What the price of gold has to do with this copper project is up for debate, but the most
interesting factor is that NGEx has government ministers as their promotional mouthpieces in
Argentina today. That’s a big change from the CFK days.
Ivanhoe Mines (IVN.to): Once again the star performer of the sector, once again thanks to
the marketing skills of its boss man (he really is the best I’ve ever seen).
This time IVN announced (8) on Thursday morning results from its Kakula discovery, part of the
larger Kamoa project in DRC which it is
exploring in JV with Chinese major mining
company Zijin. You get the high grading returns
(plenty of 4m to 10m thicknesses of 6% to 9%
copper, see the NR for more), you get the
didactic on what they found, you get the
impressive market reaction (i.e. this five day
chart, in which you kind of get the feeling the
Thursday NR was telegraphed on Wednesday).
There’s little doubt left in my mind, this is all
part of a carefully plotted plan. In IVN Friedland
has three world-class projects and at each site,
multi-millions of dollars to plough into
exploration and development campaigns. This results in a plethora of news releases and the
timing of the public announcements is no coincidence, they come one after another in week,
10-day or two week lapses and each one is designed to pop the stock price higher. In between
the NRs we can and do get some selling and profit-taking, but the concept can be summed up
as “two steps forward one step back” and the net result is a 2016 YTD chart that looks like this:
Hugely impressive. I just hope that come the time, the same concept gets applied by Friedland
to Cordoba (CDB.v). Or maybe he’ll wait until after he buys it out completely.
14

,
Capstone Mining (CS.to) and Copper Mountain (CUM.to): In the two weeks since we
pointed at Capstone (CS.to) as a way to play leverage on a rising copper price, it’s done pretty
well and the 66c to 78c move you see on this ten day chart represents an 18.2% improvement
(but not with any of my money on board, I hasten to add).
Meanwhile last week’s addition to that thought, Copper Mountain (CUM.to) did manage to do
much last week but the ten day chart is interesting because of that volume spike you see on
Thursday. Somebody’s decided to play this flip, I think.
The Low Cost Producer Basket
After 38 weeks of 2016, the Producer Basket shows a gain of 115.93% to level stakes.
company ticker price 1/1/16 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Barrick ABX 7.38 1164.67 21.09 18.11 145.4%
2 Newmont NEM 17.98 529.12 20.93 39.56 120.0%
3 Goldcorp GG 11.56 830.22 13.83 16.66 44.1%
4 Franco Nevada FNV 45.75 176.298 12.67 71.87 57.1%
5 Agnico Eagle AEM 26.28 217.67 11.83 54.33 106.7%
6 Ang/Ashanti AU 7.10 405.27 6.57 16.20 128.2%
7 Detour Gold DGC.to 14.41 170.85 4.84 28.35 96.7%
8 Buenaventura BVN 4.28 254.19 3.60 14.17 231.1%
9 Sibanye Gold SBGL 6.09 228.71 3.25 14.19 133.0%
10 New Gold NGD 2.32 509.89 2.33 4.57 97.0%
Prices in U$/NYSE tickers, except DGC.to (CAD$) Portfolio avg 115.93%
The overall basket average moved up nicely, all components registered gains, life is beautiful.
The best moves came from Goldcorp (GG up 7.0%) and I noticed a few non-metal specialist
15

,
commentaries last week promoting the name as a sector laggard and opportunity, which is fair
enough but we watching more closely have seen that there’s good reason for its 2016
underperformance. Then came AngloGold Ashanti (AU up 6.2%), the unstoppable Agnico Eagle
(AEM up 5.6%) and Barrick (ABX), which ran to the sector average.
A small note: ABX has managed to get its nose back in front on the market cap table.
Our basket maintains a handy lead over the GDX benchmark, but it’s been noticeable over the
year that when fresh money moves in (as it seemed to do post FOMC last week) it goes to the
Tier One stocks first and then rotates into the relatively smaller names. That is what’s supposed
to happen in a healthy bull market of course, but it’s good to see the quant results in the
percentage difference chart below as well.
The Low Cost Producer Basket: Weekly performance
200% and comparative to GDX control
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
With hindsight (and I didn’t set it up this way back at the end of last year) as our list is equal-
weighted among ten stocks and half of those are at the smaller end of the established producer
miner market caps, our basket is pre-programmed to underperform in the first blush of fresh
money and then (if all goes well) outperform as the rotation into higher leverage begins.
Therefore if all goes well, gold maintains at its new U$1,330 or above level and the bulls get a
run, I’d expect the percentage difference to move back up over 20% and towards 30% again.
Regional politics
Regional Risk Review next week
We’re nearly at the end of another quarter and that means next weekend’s edition will include
our regular “Regional Risk Review” of country political and social risk as pertains to the mining
industry in Latin America.
Chile copper strike season is with us
Like clockwork, Chile gets to pay negotiation season and we get strike actions as a result. We
recently saw a strike action at the Anglo American Los Bronces copper mine which disrupted
copper supply, that was finally solved on September 16th. Next on the list is the 60%
Antofagasta (ANTO.L) owned and operated Los Pelambres mine, which saw the union that
represents 65% of workers reject a deal last week (9) that included the previously offered pay
rise plus a CLP6m (U$6,060) one-time bonus. It now looks as though strike action is inevitable
and that’s significant, as Los Pelambres is one of Chile’s “Big Five” copper producers and runs at
around 380,000 tonnes per year copper production.
This type of strike action is sometimes used by copper bulls to make the case for higher prices,
but I don’t buy that case at all. This is a seasonal thing, a typical part of the Chilean copper
mining cycle and its influence on supply (disruption) of copper can be measured in prima facie
terms but as it’s such a regular thing (plus they rarely seem to stay on strike for more than a
few days) it’s something that price discovery takes in its stride. I may be a mild copper bull
right now, but there’s no point in reaching too far for arguments to back up one’s case.
16
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 ht52
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

,
Argentina: An upcoming national strike action by the largest union
This weekend the largest and most powerful workers’ union in Argentina, the CGT, announced
(10) they had decided to stage a national day of protest and strike against the policies of the
Macri government. They demand the re-start of the inflation-matching salary increases that
were normal during the CFK government, the scrapping of tax on earnings recently re-
introduced, urgent increases in pensions for retired people, improvement in the inflation rate
(which they say is still out of control) and the scrapping of the massive increases in utility bills
for water, electricity and gas known as the “tarifazos”. Their leader Pablo Moyano stated that
they had a formal meeting this week coming with the government’s Finance Minister Alfonso
Prat-Gay and would attend out of courtesy, but they didn’t expect the government’s position to
change and once the meeting had concluded would announce to their members the planned
date of the strike.
This is no ordinary industrial action, it will bring the country to a standstill for a day and will
send a strong signal both inside and outside of Argentina that its people are fed up with the
squeeze being placed upon them by the Macri government. In macroeconomic terms it’s
understandable (as an outsider), as part of the process of reeling in inflation prices can’t be
stoked by never-ending salary increases of 30% per annum (a typical figure in the CFK years)
but inflation is slower to react and we’re now in the period where purchasing power of the rank
and file gets hardest hit. It also assumes that the inflation fighting policies will eventually work,
that’s not a done deal in an Argentina that now needs to borrow heavily in dollars (and emit
local currency on the back of those credit notes) in order to cover its budget plans.
Argentina: Veladero fall-out
Although Barrick (ABX) didn’t feel the effects of the Veladero spillage news last week in its
share price (it traded lockstep average to the market all week) there was plenty of political fall-
out in Argentina, with the head of Barrick Argentina (11) who went to the La Nacion newspaper
to “beg enormous forgiveness” for the incident. Juan Ordoñex then gave an interview to
Argentina’s trade paper ‘Mining Press’ (12) in which he gave details of the incident, of the mine
and said, “The main lesson learned is that we have to re-focus our communication towards
public opinion. It doesn’t matter about the size of the incident, we must proactively
communicate in order to put ourselves ahead of over-reactions fed by ignorance.” And it takes
Barrick until 2016 to work this out? Sheesh, these people are dumb. Because away from
English-speaking eyes there have been thousands of Spanish language column inches devoted
to the pros and cons of mining in both San Juan and across the country, plus the acute
embarrassment in the San Juan government administration of governor Sergio Uñac, a strongly
pro-mining governor who has been on the defensive all week. In the end he chose his sacrificial
lamb and fired two San Juan functionaries (13), the head of the so-called “Mining Police” and
the province’s Technical Secretary and replacing them with suitable in-house candidates, all
announced in a press conference on Friday morning. At the presser Governor Uñac said
(translated), “we have the enormous challenge of keeping mining as a State policy, not only
mining but also farming, tourism and industry”. He then damned the outgoing functionaries
with faint praise by thanking them without naming them, then saying that San Juan had to,
“Re-establish the trust of society towards the mining sector and towards development of the
activity, and we as the State are responsible.”
It goes without saying that the anti-mining factions in Argentina have been having a field day
since the Veladero spill, not least because the Macri national government has made the
promotion of mining of of its cornerstones of economic reactivity and the opposition to Macri
are looking for a stick with which to beat him (recall he only just beat out a weak opponent in
Scioli in last year’s election, plus recent opinion polls have seen Macri’s popularity slipping fast).
Meanwhile, Veladero remains closed and according to Uñac in a separate press conference on
Thursday (14) (there have been multiple calls to arms for the governor, he’s under pressure)
the company is currently performing civil reparation works that will take ten more days (i.e. six
or seven from today) but after that, it’s now up the the judiciary to decide whether it can open
for business again and not the politicians. There are now at least two legals suits against the
17

,
company and both need addressing before it can re-open. The process will require visual
inspection on the part of the judiciary and that may take time.
Bottom line: The North continues in its blissful ignorance about the serious consequences that a
relatively minor pollution incident might have to the future of mining in Argentina. Readers of
The IKN Weekly have no such excuses of ignorance, this has been a clear setback to national
and regional mining policy. The well-organized anti-mining groups in the country, who may
have noble or nefarious causes but they exist and you’d be wise to acknowledge that, have
been given a lot of cloth to cut by Barrick, they’re make use of every last yard.
Strike actions update
In Shahuindo Peru, Tahoe Resources (TAHO) managed to avoid a local protest due to block
roads in and out of the mine by holding crisis meetings with the local population. No agreement
has been reached yet, but at least they’re talking rather than throwing rocks at each other.
On the subject and staying in Peru, locals around the Anabi gold mining project in Haquira,
Apurimac attacked the site where some 65 workers are currently building the mine processing
facility (15). This project is owned by private Peru gold mining company Aruntari. Due to what
locals say is non-compliance with signed agreements and a long period where their complaints
have been simply ignored by the company they took matter into their own hands last week and
descended en masse to the site and chased off all workers. 12 workers were injured by stones
thrown, with one of them suffering injuries serious enough to get him transported to the near
major hospital in the city of Arequipa (and believe me folks, it may not look like it on a straight
line map but that’s a looong way). The good news is that the two sides are now talking.
Finally in Colombia and as expected, the strike action against Gran Colombia Gold (GCM.to) in
Segovia and Remedios has been strong and are now entering their sixth day (16). GCM
spokespeople are telling Colombian media (17) that illegal armed gangs have infiltrated the
striking miners and are issuing death threats all around, plus they say some 250 workers are
inside their facilities in order to maintain minimum levels of work and maintenance (they
employ around 1,100 normally). The strikers say that the rules being imposed upon them by
the national government and the company (the closure of what they decide are illegal mines,
even though they’ve been mined by the same people and co-operatives for generations) are
unjust, unconstitutional and will bring to an end the tradition of small-scale mining. On
Saturday there were confrontations between the approximate 6,000 roadblocker protesters and
police riot squads which left 36 protesters injured (18).
The Ecuador Mining 2016 conference gets protests
Last week we mentioned the first edition of the Ecuador Mining conference that went ahead as
planned in the capital of Quito, but not without some noisy protests outside the front door of
the hotel host. Representatives of several environmental and anti-mining groups from around
Ecuador gathered at the door and made their opinions public. Spokespersons in the large anti-
crowd told reporters (19) that the reason for the manifestation was to alert investors and tell
them they were facing non-compliance with constitutional laws, such as those regarding the
respect of the rights of nature and social licence votes needed from affected populations. The
most interesting response came from the Minister of Strategic Sectors, Walter Proveda, who
said, “Without doubt that are badly informed people or people with clearly determined political
objectives”. You can just taste the love, no? What could possibly go wrong? ☺
Market Watching
Minera IRL update
I met with Diego Benavides last week for a couple of hours. I can report that although things
are moving forward more slowly than I’d like they are moving forward, the re-listing paperwork
18

,
is going through for both Lima (still likely to be the first place it re-lists) and Canada, the
company is doing an anal ysts’ presentation in London this week to bring the houses that used
to cover the stock up to date on advances, that the current drill program is going ahead as
planned and on schedule (around 40% done) and company geologists are happy with what
they’ve seen so far (without knowing the assay results, of course), that the community situation
is calm, treasury has more than enough money to keep the company ticking over nicely, that
they expect to squeeze a year or two’s extra production out of Corihuarmi and that there is
plenty of interest from potential backers to join the Cofide syndicate when the time comes to
put the Ollachea capex deal together. I know it’s a pain that the shares are still frozen but
(although I’ve said it once too often already) it really is only a matter of time. Once they
unfreeze, expect them to trade significantly higher than the price which they froze.
A Keith Barron and Ecuador opportunity via Aurania Resources (ARU.v) or Firestone
Ventures (FV.v) (or both)
It has come to my attention that Keith Barron, the man behind the discovery of the Fruta Del
Norte deposit in Ecuador, is about to make a move back into the country’s exploration mining
scene. Via his wholly owned private company “Ecuasolidus SA”, he has tendered a bid for 42
mining claims that cover around 125,000 hectares in the Amazon Basin jungle of Ecuador, part
of the current tendering process being run by the Ecuador Mining Ministry. Here is a page from
the formal tender made by Barron that was published on the Ecuador Mining Ministry website
on September 9th and, according to the rules of the “Swiss Challenge” auction the ministry is
running, was removed from public viewing just six days later:
19

,
It’s a 36 page Spanish language technical document that goes on to list the 42 claims for which
Ecuasolidus is bidding and I’m not going to bore you with the details, I just wanted to show one
page from the doc to demonstrate the document exists (and is in my hard drive). As for the
next steps, the “Swiss Challenge” auction process closes on October 7th and then the Mining
Minister, Javier Cordova, has one calendar month in which to announce the results. During that
month, if there is a higher bid than the original the ‘Swiss Challenge’ process means that he can
go back to the original bidder, in our case for the 42 claims Keith Barron via Ecuasolidus, and
give them the option of outbidding the new higher bid.
If we assume Keith Barron is successful in his bid to bag the claims on offer, the question arises
as to how he will put together a company in order to move the project forward. The answer
seems to be either with Aurania Resources (ARU.v) or Firestone Ventures (FV.v) or perhaps
even both. Firestone (FV.v) is now a near-empty shell that still has a failed Guatemala zinc
project in its name but in reality has been cleaned out and is now under the control of Barron.
Meanwhile Aurania is a newly formed company. It’s notable that both Aurania and Firestone
have the same domicile, 1010 - 8 King Street East, Toronto, Ontario. They also share the same
phone number 416 367-3200. They also share the same CFO, Carson Noel, who was one of the
lawyers in Aurelian Resources. It’s probably no coincidence that the 100% Keith Barron owned
Solidus Resource Capital Ltd. is also domiciled at that address, as Ecuasolidus is the Ecuador
end of that private company and is also out of the same office.
Some basic facts about Aurania (ARU.v): It has around 23m shares out and a share price
this weekend of 70c, which gives it a market cap of C$16.1m. It’s very thinly traded, with
Barron owning around 15m (65%) of shares and another 5m issued at 40c earlier this year in a
round of raising.
Some basic facts about Firestone: It has around 37m shares out and a share price this
weekend of 5c, which gives it a market cap of $1.9m. It recently issued 3.5m incentive options
to insiders and officers at 5c, which is telling. The structure owes Barron and Carson around
$700k in back pay, the type of situation where a shares-for-debt deal is done before a
restructuring takes place.
A potted discussion: Out of the two, Aurania (ARU.v) looks the most likely vehicle for
Barron’s upcoming return to exploration in Ecuador because for one thing it’s the type of
tightly-held quasi-shell that’s put together for such a purpose. For another it changed its ticker
from AOZ to ARU in February and it just so happens that his previous massive success Aurelian
used the exact same ticker symbol back in the day.
However, the set-up at Firestone also look more than interesting and it seems likely that
company will get some sort of use in this deal, too. It may be folded into the ARU structure
once it’s been cleaned up (i.e. debt-for-shares for Barron and Carson) or it may take some of
the new claims and Aurania gets others (there is 125,000 hectares to play with after all). But
what FV.v does have is a way of speculating directly and now, because its share trading is more
liquid than that of Aurania and the price won’t balloon (quite as much) if new money comes in.
I’d consider it riskier, as in ARU.v we’re probably second-guessing a corporate move and with
FV.v we’re adding an extra level of speculation on top of that, which makes things highly risky.
I’m making no formal recommendation on either of these companies as yet and personally I’m
not going to buy either FV.v or ARU.v for the time being. If I decide to buy in before or after
the October 7th auction closing date or even when Barron eventually reveals his hand, then you
will be told beforehand. This type of set-up is highly speculative and not for everyone, I’m not
trying to convince anyone to buy at the moment but I do think the DD as stands is interesting
enough to pass on to the subscription list (it’s not going on the open blog anytime soon). But
what we do have is the clear intent of Keith Barron to go back into Ecuador exploration and
almost certainly set up a junior to do so. I’ll leave you with the 2016 year-to-date price charts
of the two stocks.
20

,
The Denver Gold Show and Dundee
Something different for you this weekend, as for a change your author leans heavily on the
work of another analyst.
Dundee Securities hit one out of the park last week, courtesy of its analyst Josh Wolfson who
produced a multitude of individual summary reports on companies (and arguably the most
interesting ones) that presented at last week’s show. Here follows a list, in the appendix below
is the link to each of the PDFs and this time to make the difference I’m using capital letters to
denote the right links (from A to S), rather than numbers. So pick and choose as is your own
desire and please note that I have no personal recommendation to add to any of these stocks,
consider this the way that I do; good source material and nothing else. Kudos to Wolfson for
his hard work
• Klondex Mines (KDX.to) (A)
• El Dorado Gold (ELD.to) (EGO) (B)
• Detour Gold (DGC.to) (C)
• New Gold (NGD) (NGD.to) (D)
• Silver Wheaton (SLW) (E)
• Franco Nevada (FNV) (FNV.to) (F)
• Osisko Gold Royalties (OR.to) (G)
• Royal Gold (RGLD) (H)
• Kinross Gold (KGC) (K.to) (I)
• Agnico Eagle (AEM) (AEM.to) (J)
• Goldcorp (GG) (G.to) (K)
• Torex Gold (TXG.to) (L)
• SEMAFO Inc (SMF.to) (M)
• Dundee Precious Metals (DPM.to) (N)
• Alamos Gold (AGI.to) (O)
• Randgold Resources (GOLD) (P)
• Yamana Gold (AUY) (YRI.to) (Q)
• Barrick Gold (ABX) (ABX.to) (R)
• IAMGOLD Corp (IAG) (IMG.to) (S)
Enjoy.
21

,
Conclusion
IKN385 is done, we end with bullet points:
• Riverside Resources (RRI.v) doesn’t have to be a buy immediately, but its potential for
upside in 2017 compared to its current price rack in 2016 is mouthwatering. Downside
looks very limited, upside looks good and if it or one of its partners hits a big discovery
hole, the sky’s the limit. Those are good odds on a speculative investment.
• Keith Barron shaping up to move back into the Ecuador exploration scene is interesting
stuff. So, ARU or FV or both?
• Remember that next Friday is September 30th and the last day of the third quarter. We
may get some window dressing trades as instos make their portfolios pretty for the
client report.
• I’m not one to crib off the work of others, but there are exceptions and the job done by
Josh Wolfson of Dundee last week (a top-rated analyst in Canada, by the way) was
outstanding. As I have the links, this this I’ll pass them on.
• Copper had a good week and at this time is far more interesting than the action in gold,
but for the time being my tepid positive position isn’t going to change. If the spot price
busts out over U$2.35/lb, that might change. Happy holder of REG.v, CDB.v, ATY.v and
the indirect exposure from the prospect generators.
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
22

,
Footnotes, appendices, references, disclaimer
(1) http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2016/09/14/riverside-resources-
inc/play/stream/20064
(2) http://www.rivres.com/index.php/news/2016-news/299-partner-funded-exploration-work-now-underway-at-riverside-
s-glor-gold-project
(3) http://www.rivres.com/index.php/news/2016-news/300-riverside-samples-up-to-1-47-copper-at-the-thor-porphyry-
copper-project-sonora-mexico-and-begins-next-stage-of-exploration
(4)http://www.rivres.com/index.php/investors-centre/prospect-generator-business-model
(5) http://www.dailymail.co.uk/wires/reuters/article-3801853/Copper-hits-five-week-high-gloomy-demand-outlook-caps-
gains.html
(6) http://www.reuters.com/article/us-china-copper-ahome-idUSKCN11S279
(7) http://www.diariodecuyo.com.ar/home/new_noticia.php?noticia_id=731696
(8) http://finance.yahoo.com/news/ivanhoe-mines-zijin-mining-announce-113000795.html
(9) http://www.aminera.com/sindicato-supervisores-pelambres-vota-huelga/
(10) http://www.pagina12.com.ar/diario/ultimas/20-310193-2016-09-24.html
(11) http://incakolanews.blogspot.pe/2016/09/barrick-abx-begs-enormous-forgiveness.html
(12) http://www.tiempodesanjuan.com.ar/politica/2016/9/24/juan-ordonez-barrick-argentina-debemos-cambiar-nuestra-
comunicacion-149450.html
(13) http://www.aminera.com/unac-los-cambios-mineria-desafio-restablecer-la-confianza-la-sociedad-hacia-sector-
minero/
(14) http://www.tiempodesanjuan.com.ar/politica/2016/9/22/unac-confirmo-continuidad-veladero-depende-149287.html
(15) http://diariocorreo.pe/edicion/cusco/comuneros-tomaron-instalaciones-de-minera-anabi-en-haquira-699913/
(16) http://www.elespectador.com/noticias/nacional/antioquia/paro-minero-segovia-y-remedios-genera-millonarias-perdi-
articulo-656547
(17) http://caracol.com.co/emisora/2016/09/24/medellin/1474723342_391887.html
(18) http://www.eltiempo.com/colombia/medellin/paro-minero-en-segovia-y-remedios-deja-36-heridos-/16710731
(19) http://www.noalamina.org/latinoamerica/ecuador/item/16276-encuentro-minero-en-ecuador-arranca-con-protesta-
de-opositores-a-la-mega-mineria
The Dundee Denver Gold Show report links
(A)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/K/KD
X092016.ashx
(B)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/E/EL
D092016.ashx
(C)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/D/DG
C092016.ashx
(D)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/N/NG
D092016.ashx
(E)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/S/SL
W092016.ashx
(F)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/F/FN
V092016.ashx
23

,
(G)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/O/OR
092016.ashx
(H)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/R/RG
LD092016.ashx
(I)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/K/K09
2016.ashx
(J)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/A/AE
M092016.ashx
(K)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/G/G0
92016.ashx
(L)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/T/TX
G092116.ashx
(M)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/S/SM
F092116.ashx
(N)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/D/DP
M092116.ashx
(O)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/A/AGI
092116.ashx
(P)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/G/GO
LD092116.ashx
(Q)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/Y/YRI
092116.ashx
(R)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/A/AB
X092116.ashx
(S)
http://research.dundeecapitalmarkets.com/en/~/media/Dcm/Publications/CoverageListResearch/2016/September/I/IMG
092116.ashx
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
24

,
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
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
25

,
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
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
26

,
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.
27