Gold Co. Approaching Crucial Announcement
Bob Moriarty of 321gold.com explains why he likes GoldHaven Resources Corp. (GOH:CSE; GHVNF:OTCQB; 4QS:FSE).
Anyone thinking we've managed to sidestep World War III is sadly mistaken. We're merely experiencing a brief intermission while intelligence agencies craft a sufficiently convincing deception to manipulate public opinion.
On the brighter side for those investing in natural resources, the precious metals sector has experienced significant gains. A pullback would be entirely normal at this point. Yet if we're witnessing a correction, it's remarkably mild. My assessment is that Asian nations and other BRICS members now dominate the precious metals marketplace. They determine pricing levels. They view Western financial systems and American debt as fundamentally unsustainable.
China is actively encouraging its citizens to acquire the more affordable precious metals like silver and platinum, which remain undervalued compared to gold. As a result, platinum has surged 50% in under eight weeks. I anticipate this trend continuing. Throughout almost the entirety of platinum's history since Europeans first identified it in 1735, it has traded at higher prices than gold. I expect this historical relationship to reestablish itself.
While I'm not particularly enthusiastic about Trump's infrastructure initiative as it will accelerate America's fiscal collapse it represents an extraordinary opportunity for domestic resource investors. Robert Sinn from Goldfinger Capital recently published an exceptional analysis explaining how this legislation will spark renewed interest in junior mining enterprises.
Worth noting: July typically marks the annual low point for gold and mining equities, but as we transition into August, seasonal factors become increasingly favorable. The August-October period historically offers the best returns for gold investments. Silver typically bottoms in August before beginning its ascent.
Rick Rule recently highlighted that mining investments as a percentage of total stock market holdings have fallen to unprecedented lows just 0.5%. The historical average stands at 3%, suggesting a potential 500% increase merely to return to normal levels. Multiple indicators suggest this is an excellent moment to seek undervalued opportunities in this sector.
A longtime associate recently contacted me after becoming president and CEO of a company approximately 13 months ago, suggesting I examine their operation. After the investigation, I purchased shares on the open market. The company is GoldHaven Resources Corp. (GOH:CSE; GHVNF:OTCQB; 4QS:FSE).
Since taking the helm, Rob Birmingham has implemented numerous strategic changes at GoldHaven that appear poised to yield substantial benefits. He previously worked with another Brazilian enterprise that GoldHaven subsequently acquired. I'll concentrate my analysis on their Brazilian project, which could generate market-moving announcements within three weeks.
GoldHaven maintains three significant projects, including two Canadian operations. While upcoming results will emerge from drilling at the Copecal gold project in Brazil, the company is currently securing $500,000 in flow-through financing earmarked exclusively for Canadian exploration.
Between 2010 and 2016, AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) invested over $1 million in regional exploration at Copecal, located in Mato Grosso State, Brazil. Their investigation identified two distinct gold anomalies in soil samples, associated with elevated chargeability measurements and structural intersections. GoldHaven secured 100% ownership of Copecal in January. Last month, GOH initiated a 2,000-meter auger drilling program, completing 70% thus far and submitting samples for laboratory analysis.
While 2,000 meters might seem modest, these shallow 5-30 meter surface holes aim to establish targets for a more extensive Phase Two program utilizing air core and RC drilling techniques planned for later this summer. The company has submitted 350 samples for analysis.
Longtime followers of my work or readers of my publications understand my emphasis on acquiring assets when valuations are depressed. Based on Friday's closing price, GoldHaven's market capitalization stands at merely $4.13 million. The value proposition seems self-evident. As of April 30, the company maintained $1.2 million in cash reserves. With potentially transformative announcements expected within three weeks, this opportunity appears worth the speculative investment.
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Important Disclosures:
Bob Moriarty: I, or members of my immediate household or family, own securities of: GoldHaven Resources Corp. My company has a financial relationship with: GoldHaven Resources Corp. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.