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Dalradian ( Galantas (GAL.v). Northern Ireland Police. Explosives. Mailbag.

Your humble scribe receives mail this morning from reader 'GA', a nice lady who has agreed to let me reproduce this part on the blog:
" you think the GAL news affects Dalradian?  They use explosives don't they?  Do Northern Ireland not like Canadian miners and are stopping them with this?"
For the record GA is currently a holder of stock and I'm not. Answer: To begin, DNA uses explosive to a certain extent in its current exploration phase, but they'll really need explosives a lot if/when the mine goes into production. As for the question my best guess, after reading the last couple of NRs from GAL.v carefully, is that there's more than meets the eye about the Police Service of Northern Ireland (PSNI) decision not to play ball with GAL.v and its Omagh mine. There are two things that stick out:

1) There may be specific problems between the mining company and the police (or locals) and this is a way they've found of putting the kibosh on the project. If so, DNA isn't likely to suffer in the same way.

2) There's a payment issue which seems to revolve around the failure to close on the "cost-recovery agreement" (i.e the police want the mine to pay for their time). The way GAL.v frame it, stating that other mines don't have to pay so why should they, suggests this may be a new policy at the PSNI. If so then yes, this could well become an issue further down the line for DNA.

Either way, it certainly doesn't help the political risk perception of working in Northern Ireland. All that and Brexit, too.

Galantas Gold (GAL.v): Chalk up another success for "The IKN First Law of Mining News Releases"

Remember this post back on April 13th, less than two weeks ago? In it we noted that Galantas Gold (GAL.v) says its tunnel development was "temporarily on hold" while they work out a deal with the Northern Irish police on explosives handling, but the problem "is not expect to exceed one month". This set off the red flags at this humble corner of cyberspace because around here, we have the tried and tested First Law of Mining NRs which goes like this:
"The IKN First Law of Mining News Releases: Considering that anything contained in a mining news release is presented in the best possible way for the company in question, any piece of information contained in a NR that comes across in any way negative means the real news and/or events behind it must be very, very bad indeed."

Cut to the wee small hours of this morning and the latest NR out of GAL.v. Read it here and there's plenty in it, but the pay dirt is this:
Galantas Gold Corporation ("Galantas" or the "Company") (TSX VENTURE:GAL)(AIM:GAL) has received notification that the Police Service of Northern Ireland ("PSNI") will not provide its required anti-terrorism cover in regard to blasting operations required for mine development at the Omagh Gold Mine.

The First Law of Mining NRs told you to stay away. This morning GAL.v is already 16% down and we'd wager there's a lot lower to go.


The IKN Weekly, out now

IKN414 has just been sent to subscribers. As for the Cessna 414, I'll let my pal and mega-pilot "W" explain all:
Everybody loved it because it was roomy and comfortable and, for the time, had good cruise performance.  However the airplane was really quite underpowered and in today's world not many pilots are still comfortable flying them.  If you lose an engine right after takeoff you can only manage about 300ft/minute climb rate on the remaining engine, which is not a lot when you consider minimum safe speed is about 120kts.  And then only if you were careful about weight and balance, if not get ready to meet your maker.

He has IKN421 reserved, too. What a total propellerhead nerd.

Messi and The Matrix

Here's an excerpt from this piece entitled "What if we’re living in a computer simulation?" that I found myself reading yesterday:

The simulation hypothesis has entered the culture as an explanatory meme. Writing in the New Yorker earlier this year, the critic Adam Gopnik suggested that the Oscar confusion, in which La La Land was wrongly given the best film award meant for Moonlight, the election of Donald Trump, and the improbable late comeback by the New England Patriots in the Super Bowl showed “that we are living in the matrix, and something has gone wrong with the controllers”.

Anyone who watched Leo Messi score in the 92nd and last minute of the Real Madrid/Barcelona game today to win the game for Barsa 3-2 will know the feeling.


The top three most visited IKN posts this week are... reverse order:

Third Place: "How to add breadth to the GDXJ: A proposal". I got some really interesting feedback from this post.

Second Place: "A rarity: A geopolitical event that may affect the price of gold for longer than a day", a post very early in the week carrying a France voter intention poll that showed how close it was between the top four candidates. Now somewhat out of date, as these words are written we're just hours from the results of the round one vote.
First Place: "If you knew what I knew about Red Eagle Mining (", because the peanut gallery loves posts like this. I really shouldn't get tempted into writing them. The third placed post is what IKN should do more often, not this clickbait crap.


The 2017 Colombia Gold Symposium is taking shape

Over at his blog, Paul Harris of The Colombia Gold Letter and organizer of the Colombia Gold Symposium updates us today on how this year's event, scheduled for November, is shaping up. We already know that Rick Rule is keynote speaker at the event (a decent catch) and now we have news that Atico Mining (ATY.v) and Red Eagle Mining ( are sponsors and will offer site visits to participants this year.

If you're interested in attending, you can find out everything you need to know on those links. And as IKN is also a sponsor of this year's event, your humble scribe is bound to be there for the week as well (though that may well put you off the idea).


Angry Geologist does Arizona Mining (

And does it well. Go here.

The Friday OT: Prince at the 2004 Rock and Roll Hall of Fame

This brought a lump to my throat, it's one year ago that the world saw the headline "Prince dead" and the measure of his greatness is that nobody asked "who?" or "which Prince?", the one word was enough for global mourning to set in.

However we must celebrate his talent. He was a peerless live act and went way too soon but here's a reminder of how good he was on stage, the full ten minute opening act from the awards ceremony which includes a top Kiss and the best and I mean the very damned best version of Let's Go Crazy ever.

And once again, marvel at his world class guitar work, he was up there with any of them just on that instrument. Youtube here.

Mongolian Airlines, the exciting way to fly

From a pal, who sent this picture over with the note, "From the Mongolian Airlines website translated by Google":

Bless them forever. In the mood for an exciting flight?

Crapstone Mining's ( debt: Parsing The Pylot

Here are the comments of CEO Darren "Drop The" Pylot in today's NR just out that announces amendments to its credit facility. IKN explains what he's saying in the blue type.

"This extension of our current low-cost, flexible credit facility, gives Capstone significant financial flexibility (we were in the shit) and right sizes the facility to meet our current and anticipated operating requirements," said Darren Pylot, President and CEO of Capstone. "Our current drawn debt of approximately $300 million is comfortably within this amended availability (uncomfortably high) and we have a cash balance of over $100 million (which should frighten the crap out of you, because it was over $130m at the end of 2016)."
"We plan to apply free cash from operations to reduce debt to a sustainable level (our debt is currently unsustainable) at commodity prices that reflect bottom of the cycle prices (if today's price are at the bottom why did we hedge our production?), which will provide an additional cushion of undrawn credit," continued Mr. Pylot. "This effectively addresses financing risk over the term of the facility (we are financially risky), which we believe will correspond to a stabilization and gradual improvement in copper prices."

Further questions?

Asanko Gold (AKG) is now hiding data

If you remember back to April 13th, this humble corner of cyberspace noted the rumour about an upcoming faked geotechnical safety issue at Asanko (AKG) and its Nkran mine, something the company was planning to use in order to hide the fact that it was running out of mineral ore way before they'd previously promised (but on track with the K2 short thesis, strangely enough). We ended that post with these words:
"For an early signal that this is the plan, watch the Q1 and Q2 strip rates as well as any minority use of the stockpile."
Cut to April 18th and the AKG 1q17 production report (out while your humble scribe was on the road and visiting a different company's project) which you can find here. In it we see that yes indeed, the headline strip rate moved up sharply, from 4.6X to 5.5X. But Wait! There's More! Because their overall grade dropped as well (ugh) so if you adjust for that, their apples-to-apples strip rate was more like 6.25X in Q1, bigtime higher.

However the really funny thing in the 1q17 NR was that they didn't include any stockpile commentary or the stockpile data table. Yes AKG, of course it's mere coincidence that just days after the IKN post you decided that stockpile information was no longer worthy of market scrutiny and so you left it out for the first time ever in all your production NRs ever since declaring commercial production. Got something to hide, guys?

PS: AKG is down 10.1% since April 13th. Just sayin'.


Shrek Mining (TREK.v): Looking ugly there, Marin

Looks like a stillborn.

If you knew what I knew about Red Eagle Mining ('d be buying the stock today, too.

PS: To answer a couple of mails and add to the cryptic feel, it's something good that's going to happen at the mine next week.

How to add breadth to the GDXJ: A proposal

Your humble scribe has been spending the morning catching up with market things after a couple of days on the road and reading up on the whole GDXJ snafu. The basic problem is that the ETF is getting to the stage where it threatens to collapse in on itself due to its own excess gravity, black hole style. When money flows into the ETF, is has to distribute that around its component part shareholdings and as a lot of these juniors don't have much market cap heft compared to the massive ETF NAV, we're now at the stage where GDXJ holds more than 10% of stock in many of its components and gets close to the all-important 20% in some of them.

So trouble's been brewing for a while and the VanEck solution, just announced, is to widen the number of companies included in the GDXJ universe. It's the obvious move but due to the fact that the big player needs liquidity in holdings as well as size, we're now into the weird-assed situation in which companies like Kinross, Pan American, Gold Fields, Buenaventura and a whole lot more like them are being added to the "juniors" precious metals ETF. Now you can call those companies a lot of names (and I often do), but "juniors" they are not.

Real juniors, ones outside the GDXJ universe, find themselves excluded due to size, float, price, market cap restrictions. That's something I also understand, you can't have GDXJ piling into a stock that trades 50k avg per day as its metrics will immediately go wappy. So here's a potential solution for some or other intrepid brokerage or insto (and I'd wager it would be extremely profitable for the first footer too). The framework can be summed up in three simple stages:

1) Create a whole bunch of "mini junior ETF" vehicles. You could do it by geography, e.g.:
  • Canadian exploreco ETF
  • Canadian junior producer ETF
  • Asia exploreco ETF
  • Asia junior producer ETF
  • Latin America exploreco ETF
  • etc
Or you could do it by metal:
  • Copper exploreco ETF
  • Copper smallcap producer ETF
  • Uranium exploreco ETF
  • etc
2) Then choose a bunch of smallcaps from each junior sub-sector and weight your ETF. These in effect become bundles of stocks that together, under a larger (but still small) ETF umbrella get the necessary size to become attractive to GDXJ as a part of its holdings.  

3) The result is that after time GDXJ gets to broaden its share base and the money filters down into the junior section, instead of money theoretically destined for the junior mining world filtering up into midcaps. The type of cash flow that would benefit the mining industry at a grassroots level.

FWIW, I could see Sprott doing this.

In Vancouver, style beats substance every time

I am so impressed with the way that Arizona Mining ( is trading today that this isn't really about any longer, it's about the way in which the Vancouver industry goes about its business. We saw the substantive reaction to the PEA put from the company in the first two weeks of April, when first the NR on its contents failed to lift the stock then the filing of the full 43-101 PEA document to SEDAR caused serious people who read the real documents to turn their backs wholesale on this over-bloated and obviously flawed story, because even the Everything Is Awesome scoping study stage report couldn't hide the nasty facts that undermine the (ironically named) Hermosa zinc/lead/zsilver project*. And there are several.

But that doesn't mean a thing, because in the wonderful world of make-believe where junior mining resides, all you need is that powerful combo of 1) re-hashed news 2) breathless prose 3) sellside brokerages with sycophantic anal ysts and a whole row of people unafraid to make a lot of telephone calls and retail (the crop that never fails) will get led by the nose of "thought leaders", quickly come to your rescue and save your stock from moving further towards its true dollar value.

IKN salutes you, Vancouver financial professionals. Your mothers must be proud of you. 

*Sorry to confuse your pathetically small brains, Warke fanboys and IKN haters, but all three metals must be named as zinc provides less than half of potential revenues.


Posting will be light on this blog for a couple of days

For secret reasons.

UK snap election

Political and personal preferences aside, that was one smart move by Theresa May.


Arizona Mining ( How's the conference call going, guys?

That well?

I wonder who they're going to blame? Who are they going to spy on because their stock price is going down this time?


The IKN Weekly, out now

IKN413 has just been sent to subscribers. Mainly numbers and words.


A rarity: A geopolitical event that may affect the price of gold for longer than a day

And it's got nothing to do with the orange haired guy:

Four people fighting for two run-off spots. Hard right populist and hard left populist in the mix, too. France votes next Sunday. Could be an interesting week or two.

The top three most visited IKN posts this week are... reverse order:

Third Place: "Arizona Mining ( So much for "clean concentrates"". It's pretty rare to see a late Friday post make the Top Three list the next day, this one must have struck a nerve out there. Still want the name of my kids' school, Richard?

Second Place: "The impressive bullshit artists at Northern Dynasty (NAK) (". Last week's move by this company's management and board has removed all doubt about their intentions. This isn't just some innocent junior that's seen a bunch of promo hype BS artists latch on, the scam here starts and finishes with the company itself.
First Place: "MarkITorpedo is Michael Ballanger". Hilariously, my sources at tell me that Ballanger is still trying to pretend that it's not him. Pathological liars are like that.

The Friday OT on an Easter Saturday: JS Bach; Jesu, Joy of Man's Desiring (Cantata, BWV 147)

After searching Youtube for a few minutes I found this version, upbeat and better than the normal, modern,  over-reverential approach to one of Bach's signature melodies.

Music for the rest day of Holy Weekend. Youtube here.


Arizona Mining ( So much for "clean concentrates"

The devil is in the details. For the last year, we've listened as Arizona Mining ( has insisted that its Hermosa Zn/Pb/Ag project would produce what it auto-denominates a "clean concentrate" for smelters. Even when Global Mining Observer pointed out its dirty little Manganese secret, set to screw up the Zn conc, they denied everything and continued with its marketing spiel on how its conc would be "clean" and rather than address the project's fatal flaw weaknesses decided to try and kill the messenger and tried to dig up dirt on the people who dared to point out a few basic truths about its overhyped and overexpensive stock price. 

But reality bites. Come the day that a third party needs to sign off on the idea, i.e. the 43-101 compliant PEA compiled by AMC and filed to SEDAR last night, we get the following (and IKN does a bit of highlighting for you) from page 182 of the PEA:

19.2 Concentrate terms

19.2.1 Zinc concentrates
The project is expected to produce approximately 235,000 dmt zinc concentrates on average annually. Based on indicated grades, the zinc concentrates should be suitable for most zinc smelters; however, elevated levels of manganese may result in the imposition of minor penalties for AMI. Commercial terms
For the purposes of project evaluation, the following terms were used in derivation of the zinc concentrate NSRs (all figures in US dollars).
Payable metals:
  • Zinc: 85% of the Zn content, subject to a minimum deduction of 8 units
  • Silver: Deduct 3.0 ozs/dmt and pay for 70% of the balance of Ag content
  • Treatment charge: US$210.00/dmt ($190.51/dst)
  • Penalties: All inclusive, US$12.60/dmt (Mn - 0.50% free; US$1.50 per dmt for every 0.10% above 0.50%)

19.2.2 Lead concentrates
The project is expected to produce approximately 189,000 dmt lead concentrates on average annually. Based on the expected analysis, the concentrates can be considered ‘clean’, high grade with valuable levels of payable silver and no deleterious elements which might affect their marketability.

You see that? Cool, huh? Suddenly, and even at this early PEA stage when Everything Is Awesome (will we ever see a PFS or is the spymaster Warke going to try and flog it first?), AMC are only willing to call the Pb conc "clean", as when it comes to the Zn conc we only get "suitable" and that guff about minor penalties again (and repent at thy leisure on that one, true believers). Oh to have been a fly on the wall when AMC refused to sign off on "clean Zn concs".

And that's just one thing that stands out about the difference between the promotions to date and the PEA we finally got to see yesterday (ConfCall Monday, I hope GMO calls in). Others include the way they've decided to build the dry stack tailings on top of the Central deposit (in other words, kiss that goodbye forever) or the way they're so land constrained they've had to jam the whole above ground into postage stamp dimensions.


Galantas Gold (GAL.v) offers us another example of the IKN First Law of Mining NRs

Galantas Gold's (GAL.v) "development update" (love the words) came out last night while your humble scribe was computerless, but it wasn't going to pass us by so here we are, second ever post with the new machine. To start, here's a reminder of the IKN First Law of Mining NRs:
"The IKN First Law of Mining News Releases: Considering that anything contained in a mining news release is presented in the best possible way for the company in question, any piece of information contained in a NR that comes across in any way negative means the real news and/or events behind it must be very, very bad indeed."

With that in mind, here's part of the script out of GAL.v yesterday evening:
The Company has also been in discussions with Police Service Northern Ireland regarding further blasting arrangements for the underground mine development. Until those arrangements are in place, the tunnel development is temporarily on hold. The delay is not expected to exceed one month and the Company will advise if the delay is significantly prolonged.

The First Law writ large, they can't develop the mine because they don't have the permits. Take a cue from Brexit, folks.

A lesson in silver that, one day, you may heed

Way back in August 2016 it fell on deaf ears, perhaps this time those that know everything will listen more closely. Here's what CEOca's latest wunderkind Pamplonatrader told the world in mid-August 2016 when IKN had the temerity to explode the silver myth and patiently explain, once again, that the joke precious metal wasn't going anywhere.

And here were are today:

Anyone eating their words yet?

UPDATE post close: We learn the arrogance of the trader who is either...

1) Correct
2) Will be correct in the future.


The Asanko (AKG) rumour

It's been doing the rounds this morning, it's probably why the stock is off in early trading, your humble scribe passes it on. We already know that K2 Associates were mocked by the Canadian sellside dumbass brigade for their short call on the stock in mid-2016, but we now know K2 called things well and AKG has been a serious underperformer and for all the reasons pointed out by K2. But now it seems AKG may be in more trouble more quickly than even K2 expected, according to today's buzz at least.

The rumoured reason AKG has been so keen on building a stockpile at Nkran in recent quarters is that at some point in 2017 they're going to fake a geotechnical safety issue, say "sorry guys, this has only been discovered and for the good of our employees we must halt normal production", then move production over to the stockpiled material, which will allow them to try (and probably fail) to remedy the fakey high-grading they've done in the last year in order to pretend their mine is so much better than it really is, all under the cover of "unforeseen" circumstances. They will, of course, pat themselves on the back for their foresight in building up the stockpile and being all clever and that.

For an early signal that this is the plan, watch the Q1 and Q2 strip rates as well as any minority use of the stockpile.


The impressive bullshit artists at Northern Dynasty (NAK) (

Only a company dead set on hoodwinking the stupid would do what they did today. Instead of being granted a real and serious permit, they were given a temporary, 12 month permit that was granted to give strictly limited surface access to their own property and only means they are obliged to make environmental reparations to the shit they've already done to the land there (they even have to deposit U$2m in an escrow account to convince authorities they'll do the repair work). But then comes the magical moment as they the zero-moral scum at NAK spin it to the world of the believe-anything gullibles in junior world that the piece of paper they received is in fact a positive, rather than the reality. It's a de facto fine and news that NAK cannot drill, explore or in any way advance its project. And the market falls for it.

My stars, you junior mining speculators are fucking stupid. And that's what scamsters like the management at NAK rely upon.

A hardware thing

The nice man at the computer shop has finally convinced me to upgrade my eight year old HP machine. Which means that instead of lugging around a 5kg brick with a 14" screen and a battery that lasts 90 minutes tops, as from tomorrow I get to play on a supercool thing with a fabbo resolution screen, tons of extra memory and a processor of suitable speed for this modern day and age. It also means no posting until tomorrow, while I wait for all the collective junk in the memory of my old laptop to get transferred to the new one. Enjoy your Wednesday.

Belo Sun ( and some beautiful chocolate cake

I was sitting at the table. We had finished dinner. We are now having dessert. And we had the most beautiful piece of chocolate cake that you have ever seen. And President Bharti was enjoying it. And I was given the message from the generals that the concessions are suspended. What do you do? And we made a determination to do it. So the sell orders were on the way.

“And I said: ‘Mr Bharti, let me explain something to you … we’ve just launched 59 sell orders on BSX heading to Vancouver [sic] … heading toward Toronto and I want you to know that.’ 
“I didn’t want him to go home … and then they say: ‘You know the guy you just had dinner with just attacked Volta Grande.’”


Freeze Frame

IKN salutes John Warren Geils.

Youtube here.

Atico (ATY.v) 1q17 production

Another good quarter.

NR here.

The IKN Weekly called this move in gold last Sunday

The intro to The IKN Weekly IKN412 out Sunday evening had an unusual direction, as your non-goldbug author moved to bullish on the price of gold. Here we are, two days later and gold has broken away from its 1250 anchor. Just lucky i guess...


Gold still lacks US buyers and that’s not a bad thing (from IKN412)

We like war! We’re a war like people. We like war
 because we’re good at it. Do you know why we’re
good at it? Because we get a lot of practice.
George Carlin, 1992

I wrote on this subject at the start of last week’s edition and also stuck something on the blog last week, but there’s more to say about the way in which gold is being ignored by the self-appointed Smartest Guys In The Room over on Wall St. We have noticed the way in which gold bullion inventories at GLD, the financial jocks’ preferred method of playing the gold market, have done little else but flat-line over the last few weeks. GLD inventories have been in a tight, 830 metric tonne (mt) to 840mt range for a full month except for one day when they dropped to 825mt and that shows up in the first chart you see below.

But as you also see, I’ve highlighted another time in which GLD holdings did very little recently, the block of time just before and after the Trump inauguration, even though the holdings at that point were rather lower at around the 800mt mark. Why that period interests me is in the second of the chart, that’s the ratio chart I like the GLD inventory/price ratio and the two red boxed periods show when the ratio has traded at the 7.0X level. As scribbled directly on the chart there, the tentative theory is that it denotes a period in which gold gets ignored by the flash financial jocks, bullion goes out of fashion and the higher-speed big money looks for somewhere else to park. And once that’s understood, the implication is clear; these are good times to think about gold because when Wall St comes back to the gold market and starts to buy, it becomes a new cycle of interest for the price and the metal. Once fashionable Gordon Gekko buyers return the ratio goes up (because GLD isn’t the only buyer of gold out there) but so does the price and it’s typical to see the gold price pop jump higher after a sustained period of GLD inaction (e.g. the 4.5% rise in just eight days after the quiet period that ended early February). With gold now nearly at 2017 high close on Friday, even after the pop and drop it got on the Syria/US Jobs news and failure on Friday, it’s not going to take an extra catalyst to get gold up and over at U$1,300/oz any longer. Less than four percent’s worth of move, in fact.

So yes, no matter if I’m mocked as A. N. Other goldbug I’ll say it clearly, I’m more bullish about gold’s prospects this weekend than for a while and not because those few showman-type bombs, a measured dose for public flag-waving consumption dropped on some strategically chosen airstrip which now let all sides say things how right they are without anything changing much (at this point I’ll add that although I’m no Trump fan, he should be congratulated for replacing that dubious Flynn guy with the morally upright and undoubtedly smart H.R. McMaster as National Security Adviser, there’s “smart strategy” written all over last week’s action). Do NOT be bullish on gold for geopolitical events and repeat the mantra with me:

Geopoliticals have no long-term effect on gold.
Geopoliticals have no long-term effect on gold.
Geopoliticals have no long-term effect on gold.

They might have done before, but the information highway and fly-attention-span news cycle first brought the half-life down to days, now it’s barely more than hours. Remember the very last scene in Peter Weir’s somewhat flawed but still darned wonderful ‘The Truman Show’? The two security guards? Literally the last seconds of the movie? Welcome to 2017. No madam and no sir it’s not the Tomahawks and its not CNN’s shrill, hand-wringing or Fox’s flag-wrapped coverage, it’s the economy stupid because gold has quietly slipped away from its TIPS ratio anchor (that’s still in the ‘New Normal range’) and may be ready to run. My best guess (and it’s only that, a guess) is the holding pattern period is coming to an end so call me a goldbug, I don’t care. To da moon, Alice! Audit Fort Knox! Live Free Or Die!


Nobody loves Peter Marrone as much as...

...the Yamana Gold ( (AUY) compensation committee:

That list of wonderful, found by A. Reader (ty sir) and sent into IKN Nerve Centre, is how Peter Marrone got his big fat performance bonus for 2016, despite his company severely underperforming the benchmarks such as XAU and GDX.

Q1 crapness from EDR, GPR and CS

Crapstone ( this morning reported a disappointing set of 1q17 production numbers.

Endeavour Silver ( this morning reported a disappointing set of 1q17 production numbers.

Great Panther Silver ( this morning reported a disappointing set of 1q17 production numbers.

Mediocrity, like misery, loves company.


Compare and contrast: Ross Beaty and Mario Das Neves on Navidad

Ross Beaty, Chairman of Pan American Silver (PAAS), at the World Economic Forum in Buenos Aires Argentina last week:
"I remain optimistic that we will find a solution that works for the government of Chubut."
Governor of Chubut province, Mario Das Neves, on the Navidad project and other mining projects in his province yesterday:
"As long as I am governor, mining activity will not be established in any way, shape or form."
Das Neves also went on to say this about the decision of Barrick (ABX) to sell half its Veladero mine to Shandong, "You can see it in the newspapers, like yesterday when these shameless people like the company Barrick Gold who are leaving San Juan, and these are the people who told us that theirs was the model to follow. Don't fall for their tall tales".

MarkITorpedo is Michael Ballanger (UPDATED)

I'd just like to thank Tommy Humphreys for tipping me off that the basher trying his very hardest to get people to sell their shares of Tinka Resources over at is none other than Michael Ballanger, the guy who used to consult for Tinka but was fired by the company last year for being a twat. Sour grapes, Mikey?

UPDATE: It's a measure of the absolute intellectual dumbassery of this abject idiot Ballanger that he thought he could be anonymous on the internet. You have to wonder what century these faded heroes think they're living in.

UPDATE 2: A wonderful, face-saving, lawyer-dodging lie from Tommy H:

Oh c'mon Tommy, admit for once! Both you and I know the truth and the way you decided to mis-spell Michael's last name isn't going to get through any lawsuit. Plain Fact: Michael Ballanger has been slagging off Tinka Resources for months. Not only that, but he's short the stock and in a painful loss-making place since the company saw its project take off and run, so now he's trying any underhanded slimy method that comes to mind in order to con the idiot end of the market out of their shares. Why the two-faced Giustra fellator Humphreys should decide to dox Ballanger and then just hours later go back on his word is an issue you should take up with his paymaster Frankie, not IKN.


The IKN Weekly, out now

IKN412 has just been sent to subscribers, dance to the funky music here.

Matt Kuchar wins The Masters

I don't care who takes home the famous Green Jacket this evening, because what Matt Kuchar did on the 16th...
  • Hits hole in one (crowd go wild)
  • Picks ball out of hole
  • Signs it
  • Hands it over to a little kid in the gallery
...makes him an all-time champion. He won The Masters.

UPDATE: Ahh, Sergio at last! That's wonderful, and on Seve's birthday too. Two winners, then.


The Friday OT: Los Rodriguez; Mucho Mejor

Dedicated to reader M. There's been a lack of Spanish language music at The Friday OT in recent times and that's not fair, so to help fill the hole here's one of the most played rock/pop tracks of all time down this way (and great lyrics).

Spend more than a week on the continent and time in taxis, it'd be difficult not to have heard this song. Youtube here.

Posting will be very light today...

...for secret reasons.


In The IKN Weekly this Sunday

It's one of the hottest zinc juniors out there and your humble scribe lunches with its CEO this week. Yes, we're talking Tinka Resources (TK.v) with Graham Carman. Then it's another one of the hottest juniors out there, but this time copper and your humble scribe lunches with its CEO this week. Yes, we're talking Regulus Resources (REG.v) with John Black. And if that weren't enough, a brand new base metals pick coming your way as well. All that, plus the usual guff and nonsense, in IKN412 out Sunday evening.

Wall St ignores gold

For two months and counting, GLD inventories have basically flatlined:

Big money doesn't care.


More on Goldcorp (GG) and its bad habits

Dennis da Silva of Middlefield Capital was on BNN's Market Call today and he said the same thing as this humble corner of cyberspace on GG (and Barrick, for that matter). Watch it here.

If you're still falling for the mainstream press views on "The New Argentina"...

...that's getting better and wonderful under President Macri, do yourself a favour and watch what goes on there tomorrow, Thursday April 6th. You'll get a glimpse of how bad it's got in the first year and a bit and how badly it's going to go for Macri on October 22nd.

No wonder Barrick wants out of the country.

Continental Gold ( Snowflake alert

The selling witnessed in Continental Gold ( must have hurt all those CNL insiders who bought at higher prices recently. But the response is bizarre and is straight out of the little leagues, CNL's NR today isn't much more than a petulant "It's Not Fair!" piece of foot stomping about what looks like one fund liquidating a medium-sized position as the reality of the situation finally sinks in, that there is no buyout offer coming for this stock and the price is destined for a long period of flatline.

It doesn't help that the man at the head of CNL, Ari Sussman, has the baggage of being in charge of companies that suddenly come under selling pressure on no news, with retail finding out the reasons a long time afterwards. And that Sussman quietly sold millions of dollars of his shares at that previous gig at higher prices. History rhymes, so maybe retail are right to be nervous.

The new Global Mining Observer is out

Cool stuff this edition includes this link, which takes you to Goldcorp's (GG) CEO Garofalo on the stupid idiot Cerro Casale/Caspiche deal. Unsurprisingly, he likes it more than either IKN or the market does. 20/20/20 and my ample hind quarters, David.


Adventures in investor relations, Paramount Gold (PZG) edition

Your humble scribe is forwarded the following NR from Christos Theodossiou, the IR "professional" (term used loosely) at Paramount Gold Nevada (PZG), sent out yesterday and today:

See the fun bit? Check this section a little more closely:

Winning, Christos. Winning.

What we've learned from the Metanor/Kirkland Lake deal today

1) Makuch is Eric's poodle.
2) Wexford would love to sell a chunk of Marlin to Eric.
3) Nobody's going to worry about Sandstorm's royalty there any more.
4) Retail shareholders have been hosed. Again.

Gold miners are real companies too (from IKN411)

A small op-ed on Goldcorp (GG) and Barrick (ABX) that helped open IKN411, last Sunday evening.

Gold miners are real companies too
As I put together my thoughts on the deal done by Goldcorp (GG) this week to buy half of Cerro Casale and all of Caspiche (see ‘Producer basket’ below) I got to thinking about the way these tier one stocks are being run at the moment. The big turnaround story of the sector is, of course, Barrick (ABX), which has managed to pull back from the precipice since ex-GS-orthodox-capitalist Thornton took over from gold-prospector-hit-it-big Munk and the decision was made to run ABX like a normal company instead of applying the crazy pretzel logic that seems to prevail in the sector.

The difference at ABX has been its new, hard-nosed attitude towards the balance sheet and particularly to its debt position. In the 2009 to 2011 period Munk added nearly U$12Bn to the company’s liabilities, most of that as straight financial debt. Which is all well and good if the gold bull goes on forever, but what we now know is that the party came to a shuddering halt in 2013 and left ABX staring down the barrel of real financial problems. And that’s what has made ABX under Thornton the big turnaround success; he’s sold fixed assets, hacked down the debt and plans to continue to do so in the next two financial years (another U$2.4Bn or so to come off the debt in order to get it down to U$5Bn, he says).

What with the Garofalo decision last week to follow the samo samo route of mining companies and buy mediocre assets with real money, I got to thinking about the two companies and compared their balance sheets over the important recent period. There are plenty of interesting comparisons that show up and we could take a lot of space to chew them over, but the crux is in two datasets comparing the crisis year end of 2013 to the end-of-tunnel year end of 2016:

  • In the period end 2013 to end 2016, Goldcorp increased its financial debt by U$1.0Bn
  • In the period end 2013 to end 2016, Barrick reduced its financial debt by U$5.1Bn

  • At end 2013 Goldcorp had a market cap of U$17.1Bn. Today its market cap is U$14.6Bn
  • At end 2013 Barrick had a market cap of U$18.1Bn. Today its market cap is U$19.0Bn

In a nutshell, the decision by Thornton to treat ABX as a normal company that needs to show financial discipline and balance sheet strength has seen the market cap of the company under his charge increase by close to a billion from the start of the slump to the end of the tunnel. However the collective decisions of Telfer and Garofalo, prizing gold ounces and project collection over basic financial well-being have seen GG’s market cap (aka “the sliver of hope that lies between assets and liabilities”) drop by over U$2.5Bn.

The decision last week by GG to buy into Cerro Casale, plus the stated intention of ABX to keep reducing its financial debt by selling fixed assets (and apparently the next deal is close to hand) show that the trends we saw in both companies in 2013 to 2016 are only set to continue. In other words, one of these companies is doing it the old-school way, betting on projects and hoping gold prices makes it look smart later. Meanwhile, the other company is being run well.

Graña y Montero (GRAM) continue to rally

The IKN Weekly focus on this stock (right here) was timed pretty nicely. Now up 43% in a week and a half.



How good was Sandstorm's (SAND) ( Q1?

This good:

They bought back 290k shares in 1q17, too. NR here.

Have cake/Eat cake

The second best bit of the Arizona Mining ( PEA NR (right here) is the have/eat cake mathematics on silver.
Have: The operating economics assume they sell 5.5m ounces of silver per year at $20/oz.

Eat: The company proposes between $200m and $350m of the capex raise will come from selling a stream on the silver. Bless em.

But the best bit is the confident assertion that the mine will be permitted and in operation by 2020. Welcome to Arizona.

Arizona Mining ( gives us its PEA

42% IRR. Everything is awesome.

Tinka Resources (TK.v) drill holes (updated)

52m of 10% Zn and 15m of 20% should make for interesting trading action today.

Yes, that's an understatement. How did you know?

UPDATE: I'm receiving mails so just to clear this up, once and for all. The IKN Weekly reco'd Tinka Resources (TK.v) in April 2016 when it was a 14.5c stock.

I didn't get any at that price personally because it popped hard the next day, but did start buying then and eventually built a full position at a cost average of 19.5c. We then had to wait all 2016 for something to happen, it was pretty frustrating to see it flatline while other Zn plays moved up. But patience pays its own dividends, or as Jesse Livermore wrote, "Be right, sit tight".

The stock is now a totally different proposition. It has mojo and volume, plus guaranteed newsflow in 2017 on a star-in-making property, so even though I'm a mile up on the position there will be no selling here, not even a partial sale to lock in profits. Plenty more to come from Tinka Resources, be clear.


The Ecuador presidential election: It's tight

One exit poll has Guillermo Lasso as winner, 53 to 47
Another exit poll has Lenín Moreno as winner, 52 to 48

Around 8pm local time (in about one hour) we should get the fast count result from the Ecuador election people, but even then you get the feeling this result is going to be contested by whoever loses and the story will run and run. Buckle up.

UPDATE: Lasso's people can (and will) cry fraud for all they want, but Moreno's got this one. 51/49. Candace and Terry have dodged a bullet and must be happy. 

The IKN Weekly, out now

IKN411 has just been sent to subscribers. Tried to keep the waffle down this week. Failed.


Regarding the Tinka Resources (TK.v) trading halt

Tinka Resources (TK.v) was on trading halt all day yesterday Friday due to impending news that eventually didn't show up. The reason for the halt: Drill results. Expect them Monday morning pre-open. That's a plain fact, not an April Fool*, IKN gives you straight dope as always.

As for the contents of the drill results NR, you're just going to have to do the same as me and wait until Monday.

*I waited until after midday April 1st to post this, all normal rules apply, this is not a joke.

The top three most visited IKN posts this week are... reverse order:

Third Place: "And a proxy fight at Gold Reserve (GRZ.v)". We shine a light on the upcoming Belanger battle.

Second Place: "The Rapier Gold (RYR.v) AGM today: The board has been kicked out (including Daryl Hodges)". This post got busy because IKN broke the news, which was confirmed by the company the next morning. Daryl Hodges has now been kicked off two separate boards in proxy battles in less than two years. Is that some sort of record? And Chuck Higgins is a total failure as a lawyer...but everyone at Minera IRL knew that already.
First Place: "Cobalt juniors are for suckers". By far the most popular post of the week, as the combo of 1) latest pump fashion metal 2) promoters failing to disclose the real truth about the players n the cobalt space and 3) inquiring minds wanting to know what the catch is and nobody tells them (except here) proves a winning trifecta. Mine stock pumpers don't like the truth.

An update has been added... yesterday's exclusive report on the identity of The Angry Geologist. See here.

IKN EXCLUSIVE: We reveal the identity of The Angry Geologist (now updated)

Tonight IKN takes the step of unveiling one of the junior mining world's most closely guarded secrets of 2017. We can exclusively reveal to you that the person behind The Angry Geologist is none other than James 'Jim' Gowans, long-time mining and exploration stalwart and the current head of Arizona Mining ( It's due to his current position that Gowans did not want to be revealed as TAG, but the cat is now out of the bag.

You heard it here first, ladies and gentlemen.

UPDATE midday Saturday: Please take into account the date of this post:


Arizona Mining ( fails to deliver

Here at IKN we lost count of the number of times Arizona Mining ( promised to deliver its PEA for Taylor by the end of 1q17.

And here we are at the end of 1q17 and....crickets.

Well, good that we csn take these people at their word, isn't it?

The Friday OT: Jon Hopkins; Sun Harmonics

From the album 'Immunity', this ten minute chunk of wonderful.

Youtube here.

In The IKN Weekly this Sunday...

...we'll take a second look at Rye Patch Gold (RPM.v) now that it finally looks like it's getting its trasero into gear. Other things too, of course. And that's all the posting for this Friday. For secret reasons. Friday OT later, but not much happening on this blog so no need to come back.

Still laughing about Chuck Higgins and Daryl Hodges...

...and their dismal failure yesterday. 


News from Colombia

A nice round-up post about what's been going on in Colombia over at Paul Harris's 'Colombia Gold Letter' free access blog. Right here.

The Rapier Gold (RYR.v) AGM today: The board has been kicked out (including Daryl Hodges)

News from the Rapier Gold (RYR.v) AGM today, at which the board was opposed by a proxy slate presented by Delbrook, is that the Delbrook slate has won and the old board has been kicked out. The leavers include that criminal in white collar and awful shoes, Daryl Hodges. It's also sweet to note that despite the old board attempting a whole box of legal tricks in a desperate attempt to hang on to their jobs, their legal counsel headed up by Daryl Hodges' best pally pal Chuck Higgins of Fasken has failed miserably to protect the scumballs and lost.

Bye Bye Daryl, you pathetic piece of shit. What goes around comes around and the sooner Canada is rid of criminal parasites like you, the better. Looks like all you have left now is your side job of selling marijuana on the streets of Toronto.

A Flash update...

...has just been sent to subscribers, 11am on a grey Thursday. Adding.

Yes, a nice move in copper today, but... ça change, plus c'est la même chose:

The new normal continues, right up to the moment when it doesn't.

And generally speaking, any sudden move in anything at the end of a quarter is easy to discard, remember there are a lot of fund managers who make most of their money on performance bonuses. Dress those windows, guys.

Fairmont Resources (FMR.v) and its criminal fraud

Back in late December IKN ran the post "How scamsters think, Fairmont Resources (FMR.v) Edition" which shone a little light on the nefarious way Fairmont Resources (FMR.v) was going about its business. Since then your author collected more information about this company and the time has come to tell you all, happy loving people of the Canadian mining community, because this isn't just A.N. Other sketchy junior.

Fairmont Resources is a fraud. A clear-cut criminal fraud and the people running the company, namely Michael Dehn (President and CEO) Michael Thompson (director) Ernest Cleave (director) and Neil Pettigrew (director), are fraudsters. FMR fabricated false financial documents in order to make out they have financing for their project, because they were about to be taken away by judicial order. And now those fraudulent documents have come to light.

And IKN has them. Watch this space.

Gran Colombia Gold ( and rollbacks (from IKN410)

Here's a little ditty that was for subscribers last Sunday. You'll be unshocked and unsurprised to learn that one of the financial whores being paid to pump this to you in the enar future is Tommy Humphreys of

Gotta love Fino 


Gran Colombia Gold ( and the power of share consolidation

My thanks to A. Reader for the nudge on this little note, which can be subtitled “A lesson in what poor management, excessive financial debt and over-promise/under-deliver can do for your share price”.

Even before the end of 2012 it was clear that Gran Colombia Gold (, the Serafino Iacono trainwreck of a mining company, had plenty of problems because its share price had already tumbled by around 80% since the start of 2011. But instead of going for the big numbers its shares traded for the in 2009 to 2011 period, I’m going to go for the modest 35c share price it typically traded during most of and at the end of 2012.

Then in mid-2013 GCM announced (15) a 25-to-1 share consolidation. In other words, if you owned 25 shares of GCM, that was suddenly converted into one share.

Life went on though the next three and a half years until this week, when the company announced (16) it had received shareholder approval to run another share consolidation, this time 15-to-1. Yes, those shares you owned before that were shrunk 25 times have just been shrunk another 15 times or in other words, if you owned 375 shares of GCM at the beginning of 2013, in just a few days’ time that will be down to just one share, no buying or selling.

As GCM is currently trading at-or-around 10c, when the 15:1 rollback is official we can reasonably expect each single share to be worth $1.50. So let’s do a little theoretical calculation by imagining this reasonable situation:

  • At the end of 2013, you bought 3,750 shares of GCM at 35c apiece.
  • Due to the double effect of the two rollbacks since then, those 3,750 shares have become just 10 shares.
  • At the time, you paid approximately $1,312.50 for your share.
  • They are now worth $15.

And if you think that’s bad, consider how much money Frank Holmes lost for his Global fund when he waded bigtime into GCM stock in 2009 and 2010 (and also told everyone else to do the same on many many occasions), paying a typical $2.50 to $3 a share at the time.

Finally, do of course expect a big round of promo pumping on the back of the consolidation when it’s finalized so do yourself a big favour; make a note of the people telling you that is a great opportunity, having that little list to hand may save you a lot of money in the future.

Rye Patch Gold (RPM.v) gets to irrigate

The permit's only four months late, but better than never I suppose. Expect RPM.v to move up at the open on its news today. Read it here.

UPDATE: Reader 'MP' notes the details from the NR:

"... a tenacious gold producer with a bright future..."

I don't think I have ever seen a gold producer characterized as "tenacious" in a news release! Gotta love the IR department...

Indeed. I can see Bill Howald and he team overseeing operations now...

And a proxy fight at Gold Reserve (GRZ.v)

Could be a lot of fun. Steelhead has run out of patience with Belanger.

Yet another crappy quarter from Dynacor Gold (

Net earnings of $0.212m, or a penny per share:

Add the serial failure to deliver on promised profitability to the warning on production fro 1q17 and the undisclosed legal problems that DNG covered up. This is Louis Lobito Little Wolf's idea of a Top Pick, the naive fool.


Angry Geologist does Arizona Mining (

Far better than reading the IKN take on earlier today, go over to Angry Geologist and read as TAG's succinct and pithy take on "One-Of-The-World's-Largest-Manganese-Zinc-Deposits", with particular emphasis on the numbers out of AZ's 'Epitaph Zone' this morning.

The silverbugs are quiet this year

A motley crew of deluded fools even more annoying than IKN, it's been a pleasure to hear the roaring silence from the silverbugs, that group of diehards who actually think silver mining companies are smart investments. But why should these knucklescrapers be so quiet this year?
  • Fortuna Silver ( (FSM) down 19% in 2017 year to date.
  • Tahoe Resources ( (TAHO) down 19% in 2017 year to date.
  • Endeavour Silver ( (EXK) down 17% in 2017 year to date.
  • First Majestic Silver ( (AG) down 1% in 2017 year to date
  • Great Panther Silver ( (GPL) down 5% in 2017 year to date.
  • IMPACT Silver (IPT.v) down 6% in 2017 year to date.
  • Silver One Resources (SVE.v) down 38% in 2017 year to date.
Ah yeah, that'd be it.

Gold stocks are nicely up YTD, by the way. So much so that the XAU "gold and silver miners" index can shrug off the negative influence of the silver dogs and be in positive territory so far.

Arizona Mining ( still has a serious manganese issue

Here at IKN Nerve Centre, your humble scribe notes with interest the Arizona Mining ( news release of this morning. It does of course shout loudest about the things the company  wants you to read, such as the improved recovery percentages for zinc and lead and silver at its Taylor project. But as always, it's what they have to slip in quietly that's most important and interesting. Here's that bit:
"The projected manganese (“Mn”) content of the final zinc concentrate is 1.32%, in line with the preliminary metallurgical test work."

And that is most interesting, because in it's December 14th 2016 NR, told us this (IKN underlines and bold-types):

As previously disclosed, Arizona Mining has done initial bench-scale metallurgical work on the various types of ore found at the Taylor deposit which does not yet reflect cleaner stages, regrinds or any optimization, which may reduce the manganese levels. The same initial results show very low iron and cadmium contents and negligible mercury and arsenic, which are other common undesirable elements.
Initial work indicates a manganese content of approximately 0.1% in the lead concentrate and approximately 1.3% in the zinc concentrate. As previously noted, the penalties for a zinc concentrate containing 1.3% manganese are estimated to be $12 per dry metric tonne versus the zinc concentrate value of over $1,100 per dry metric tonne at a $1.00 per pound zinc price. This equates to approximately 1% of the estimated concentrate value and is therefore immaterial.
Indeed, in its rebuttal NR to the light shone upon the manganese problem at Taylor by Global Mining Observer back in December, tried to get us to believe that the initial stage met work was one thing but once the bigger science was rolled out they'd be able to get the Mn content down. Today we get the reality: It's not 1.3% any longer, it's 1.32%. Cue 70's sitcom style canned laughter.

Not only that, but Oskar Lewnowski of Orion Mine Finance doesn't sound like a very smart businessman to me. When wheeled in to give support to  he said this:
“We would be prepared to purchase as much of the zinc concentrates, at market, without penalty, as we could.”
In other words, he's be prepared to buy this Mn-heavy conc with no penalty, when he could easily pay less if he wanted. Yup, that's capitalism for you. Or maybe, just maybe, Lewnowski was asked to BS the market by Richard Warke and say anything that sounded good in a desperate attempt to cover up the project's fatal flaw before it totally tanked the share price. Hell...I dunno. But what I do know for sure, a stone-cold fact, is that Richard Warke decided to hire a company of spies to find out all about an alleged short-selling conspiracy against his company once the Mn scandal had been revealed and that spy company were stupid enough to start snooping on me, your humble scribe at IKN, as part of their investigation. Unsurprisingly Warke's sneaky attempt at espionage has uncovered nothing at all, because there never was a short conspiracy against, it was all in his paranoid brain. But I'm glad you know where my kids go to school now, Richard, certainly hope that information helps you in your future business endeavours.

Anyway, we await the PEA from, which they promised for end 1q17. They have two days to deliver, so presumably that's coming out very very soon.

Things that happen in The IKN Weekly, Graña y Montero (GRAM) edition

For most of the the third and fourth quarters of 2016 Graña y Montero, trading on the NYSE as GRAM, was a U$8 stock. Then came news of its involvement in the Odebrecht corruption and bribery scandal and the company went into free-fall, a drop we watched carefully at The IKN Weekly for the political angles in Peru.

But to last Sunday and the piece you see below the chart here, which wasn't an outright reco on the stock but was a rare non-mining long idea for subscribers. Since then...

...the stock's up 30% in two and a half days. Just sayin'. Here's the piece, as it appeared in IKN410 on Sunday evening.

Graña y Montero (GRAM): A heads up
It’s not really the normal remit of The IKN Weekly so it’s not going to be a long note, but I think it’s worth a few lines by way of a heads-up and perhaps a starting point for your own DD, so here goes.

As noted on several occasions in the last few weeks on these pages, particularly in the ‘Regional Politics’ sections, the big Peruvian construction and civil works company Graña y Montero (GRAM) has bit hit very hard by its connections to the Lava Jato/Odebrecht corruption scandal that’s been making waves all over South America. Just one look at its 12 month share price (it trades as GRAM on the NYSE) is enough to see the effect of being dragged into the corruption mess and being actively connected with the bribes paid by Odebrecht to high ranking individuals in Peru, up to and including ex-President Alejandro Toledo.

However, there’s now reason to believe GyM is going to survive this mess and as such, it may be a decent “blood on the streets” buy for consideration. The combination of factors:

1)      The El Niño weather crisis currently hitting Peru hard will need clean-up and plenty of reconstruction later. There is no better placed company to do that work than GyM.
2)      The corruption scandal is beginning to be yesterday’s news in Peru and the sensation that GyM isn’t going to collapse (the country’s own private “too big to fail”) is growing. The 10% rise in the stock on Friday bears testimony to that.
3)      The latest word, being reported in Peru this weekend (17), is that as well as the recent change at the very top of the company and the resignation of the three main company leaders, we’re about to get a complete change at the board of director level with new (and we assume uncontaminated) blood coming in to lead the company out of the hole it’s created for itself.

Up until this scandal hit, GyM was one of the most highly regarded companies of any type in Peru. With a direct employment roster of up to 40,000 people, as well as untold numbers of indirect jobs depending on it, it’s one of the biggest employers in the country too. The way in which the tide is turning, plus the “fortunate” arrival of the most severe and damaging storm period for the last two decades in Peru, may make the stock an interesting trade. You need to do your own DD on this one though and check the company numbers carefully, consider this a place to start, not a reco to buy.