Have a good 2019, esteemed readers of this humble corner of cyberspace.

12/31/18
Prize Mining (PRZ.v) and the Great Vancouver Hypocrisy Show
12/30/18
The IKN Weekly, out now
IKN501 has just been sent to subscribers. Happy New Year to all of you.
12/28/18
The Friday OT: Soda Stereo; No existes
Last one of the year:
Prize Mining (PRZ.v) falls apart
VANCOUVER, Dec. 27, 2018 /CNW/ - PRIZE MINING CORPORATION ("Prize" or the "Company") (TSXV:PRZ) (OTCQB:PRZFF) (MQSP:GR:FRANKFURT) announces that the Company has appointed Mr. Dallas Pretty, B.Comm., CA to the Company's Board of Directors. The Company is also announcing the resignations of David Schmidt and Robert Archer from the Company's Board of Directors and the resignation of Feisal Somji as Executive Chairman and Director of the Company's Board of Directors.
UPDATE: Interestingly, that link is now broken. Last minute changes on the way? Schmidt suddenly entrenching? We shall see.
Vaughan, the worst two-faced sneak thief on CEOca
12/24/18
Linking you to two interesting posts at better blogs than IKN
12/23/18
The IKN Weekly, out now
IKN500 has just been sent to subscribers. A short, holiday week edition that won't take up much of your
12/21/18
Merry Christmas to one and all
Because even the people featured on these pages in 2018 who should by all rights be behind bars deserve a happy and peaceful Christmas time.
The Friday OT; MUTEMATH; Voice in the silence
12/20/18
A quick Ottotrans on Prize Mining (PRZ.v) today
Here's the segment of today's NR:
As part of the Company's ongoing evaluation of priorities and direction and our internal processes where we follow up with all of our contracts and consultants on a regular basis to evaluate their work and deliverables, the Company has decided to shift its focus on the remaining work programs associated with certain additional Agreements. These Agreements had an initial value of $3,710,000 at inception. The Company has determined to cancel the remaining work associated with these Agreements and is in discussions with the service providers involved to facilitate that decision
Here's the translation:
Our scam pump bullshit failed.
Bolivia political risk thoughts (from IKN499)
Here's one that nobody up there is talking about. Yet. From IKN499, last Sunday.
Keeping an eye on Bolivia redux
As widely expected, last week President Evo Morales of Bolivia got judicial approval for the change of his country’s constitution that will allow him to run once again for re-election in the 2019 Presidentials, scheduled for the back end of 2019. As noted a few weeks ago, this election might not turn out in quite the same way as any other in the last decade, because Evo’s presidency is showing signs of supporter fatigue, there’s dissent among what are understood to be his base supporters and now we have far right wing Jair Bolsonaro about to become President of its neighbour, the vastly larger and richer Brazil, who has previously pledged allegiance to the far right wing politicos in the Bolivia’s largest city in the East, Santa Cruz.
It is therefore interesting (as in the Chinese curse) to see Andres Oppenheimer, the hard right wing political commentator in both Spanish and English language Americas, running an op-ed piece last week entitled, “Bolivian President Evo Morales is carrying out a slow-motion coup. Why isn’t the region talking about it?” (11) and comparing Bolivia’s economy to that of Venezuela and warning of dire consequences etc etcif Evo is left unchecked (yes you can compare the hard left political stances of Bolivia and Venezuela, but Bolivia’s economic stability has been remarkably good for the last ten years and shows no sign of weakening).
I continue with my sneaking feeling that Bolivia may be the surprise political flashpoint of the region next year. If so, the “buy when blood in streets” maxim goes into effect, which also means of course that you shouldn’t get too interested too early. Watching brief.
12/19/18
Brent Cook does Daniela Cambone in just six minutes
I think that's how one phrases it correctly. Here's the link, here's the blurb:
A mix of geopolitical and economic uncertainties will likely create the perfect storm for precious metals and miners next year, said Brent Cook of Exploration Insights.
“Volatility and chaos will be the theme [next year]. We’ve got BREXIT, Italy, German politics, Saudi Arabia, U.S.-China tariffs, they’re arresting people in Canada, we’ve got an unstable narcissist in the White House that’s being backed into a corner capable of doing anything, bear market beginning, and I think the interest rates are going to be slowing,” Cook told Kitco News.
Cook said that all these risks should bode well for gold and gold miners next year, with miners outperforming the bullion.
Go see the video:
Trey Reik of Sprott predicts on the FOMC today
With an eye on what Jerome Powell and his friends might do and how it could affect the precious metals market. A strong argument for gold ownership, no tinfoil hats necessary. Go here.
12/17/18
Newmont (NEM) and Continental Gold (CNL.to): Intel (from IKN499)
This was read by subscribers to The IKN Weekly on Sunday. Now it's your turn.
- Critically, NEM is in a standstill agreement with CNL. Therefore there can only be a friendly takeover. This means NEM would have to table enough money to interest CNL, its board and its shareholders.
- Considering the current price range (let’s say “between $2.00 and $2.30” for argument’s sake) and from where CNL has dropped recently (I’m going to rough-say $4.00, before its recent security issues came up, feel free to argue that number), it would need a very big premium to current market to interest CNL.
- The NEM board will know this as they make their decision. And in the event they decide to make an offer, it would almost certainly be of the one-time, “take it or leave it” type.
- This would mean that, in effect, NEM would have to ignore the current market price for CNL and make an offer that’s more akin to what CNL think their company is worth. However and also critically, the current stock price isn't just a number picked out the air or floating in its own dimension, this current range is a reflection of CNL's well-documented troubles and issues. NEM is fully aware of all of them and there are a whole list that start with the deaths of its two employees at Buriticá town and then the three geologists at its Berlín project. Other matters are certainly of concern to them as well, such as exposing more of its own company employees more directly (instead of being there on an occasional and consulting/advisory role), the judicial uncertainty in the country (see Regional Politics today for the latest example), the continued presence of illegal/informal miners and far-right wing paramilitary groups. Also, I am quite sure NEM is considering the potential liability of legal actions brought against the company by the families of the dead employees, especially the geologists. The recent resignation of CNL country president Restrepo was a necessary move, but it’s also a recognition of responsibility for the internal mistakes that led to the fatal incident.
- At this point, we should also note that NEM has not ignored the current situation, to the point where the NEM CEO made prepared comments on the problems during the company’s 3q18 Conference Call.
- Another subject is the NEM corporate culture, which has always been notably (even notoriously) conservative. This is not a company of risk-takers and that’s particularly true on the issue of political risk and social security. It’s worth recalling the way NEM entered into Buriticá, via a minority purchase which brought them de facto control of the project. For around U$105m they got 19.9% of the company, but they also got directors on the board and their technical team leading the build-out. It was in effect a call option on 10m oz of high grade gold and for the price, it was a smart bet on a potential risk/reward basis, they would be inside the company and the project and would know whether to pull the trigger. I know that U$105m is real money, but it’s the type of sum NEM can risk without it affecting the company (too much). Also, we should note that if NEM decides to exit, they’re going to get a decent wedge of that outlay back.
Mining Ramblings does cost curves
12/16/18
A tailing spill reported at the Gold Fields (GFI) Cerro Corona mine in Peru
Right here, on the official Peru government environmental people (OEFA) website.
No word on the size or scale of the spill as yet.
IKN recommends: 'High Grade', a new blog on mining
12/15/18
Separated at birth
The top three most visited IKN posts this week are...
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Second Place: "ATAC Resources (ATC.v), Bristow's first victim (there will be more)". It would seem Bristow wasn't joking about that 15% IRR thing.
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12/14/18
Evrim Resources (EVM.v): In praise and defence of Joe Mazumdar and Brent Cook of Exploration Insights (from IKN498, last weekend)
Here's a note that turned into a rant, part of last weekend's edition of The IKN Weekly, IKN498.
Detour Gold (DGC.to): Much ado about nothing
The Friday OT: Joe Jackson; Steppin Out
Great track.
A potentially important development in the "BridgeMark Group" scam
12/13/18
One of the BridgeMark scam companies loses its CFO
BLOK Technologies Inc (BLK.cse) just announced this:
VANCOUVER, British Columbia, Dec. 13, 2018 -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE: BLK) (OTC: BLPFF) (FRANKFURT: 2AD) today announces that David Alexander is resigning from his position as Chief Financial Officer. Mr. Yari Nieken, Director, will be serving as Interim Chief Financial Officer. The Company will promptly begin a search for a permanent Chief Financial Officer.
Probably just coincidence.
Have yourself a Merry Little Ebitbrah Mug Christmas
Wesdome (WDO.to): Further to yesterday's prediction...
12/12/18
Eco (Atlantic) Oil & Gas (EOG.v): greedy assholes
Pursuant to the Stock Option Plan, the maximum number of Common Shares reserved for issuance in any 12-month period to any one optionee other than a consultant may not exceed 5% of the issued and outstanding Common Shares at the date of the grant. The maximum number of Common Shares reserved for issuance in any 12-month period to any consultant may not exceed 2% of the issued and outstanding Common Shares at the date of the grant and the maximum number of Common Shares reserved for issuance in any 12-month period to all persons engaged in investor relations activities may not exceed 2% of the issued and outstanding number of Common Shares at the date of the grant
Wesdome (WDO.to): A prediction
Its share price will drop at the open tomorrow morning and then get seriously bought.
That's all. The rest for subscribers on Sunday.
Bagholder Quotes, New Gold (NGD) edition
Plateau Energy (PLU.v) and its 95c placement in October
Those of you thinking about participating in the placement announced this morning should Google the name "Walter Aduviri". And if you're thinking of going heavily in, make sure you do so in Spanish language (and if not versed, pay someone who is).Thank you for your attention. And don't say you weren't warned.
ATAC Resources (ATC.v), Bristow's first victim (there will be more)
"VANCOUVER, Dec. 12, 2018 /CNW/ - ATAC Resources Ltd. (TSX-V:ATC) ("ATAC") announces that Barrick Gold Corporation ("Barrick") has terminated its option to acquire an interest in the Orion Project, located within ATAC's 100% owned Rackla Gold Property, Yukon."
"To approve so-called Tier 1 projects, with potential for more than 5 million ounces of gold, Barrick will require a 15 percent rate of return, based on a $1,000 gold price.... Tier 2 projects, with more than 3 million ounces of gold, will need a 20 percent return."
12/11/18
Frank Callaghan; The defense lawyer does the work of the prosecution
If there's one thing I've cherished over the years of following the Canadian mining scene, it's the sharp and dry wit of Mike Caswell over at Stockwatch.
"Lawyers for Frank Callaghan, the former chief executive officer of Barkerville Gold Mines Ltd., appeared before the B.C. Securities Commission on Monday to protest the TSX Venture Exchange's refusal to approve Mr. Callaghan as an officer or director. They said that the exchange has treated Mr. Callaghan unfairly in withholding its approval. They described Mr. Callaghan as the "kind of person who should be active in the mining industry," being one of the few to have taken a junior company to the production stage."
Full thing here.
Another reason to avoid the upcoming African Wheaton Cannabis pump like the plague
Coming soon to a pumphouse near you: African Wheaton Cannabis
12/10/18
Today's junior mining quiz question for a maximum of 17 points
- Evrim Resources (EVM.v)
- Silver Bull Resources (SVBL)
- Azucar Minerals (AMZ.v)
12/9/18
The IKN Weekly, out now
IKN498 has just been sent to subscribers. Not a very good edition, last week's was a lot better.
12/8/18
The scene at this week's American Exploration & Mining Association convention in Spokane
Eric Coffin, your petticoat is showing
PS: And by the way, Coffin really likes to make out he's an expert judge of my character and will state with certainty this-or-that thing about my viewpoints, life choices, opinion of other human beings etc etc. So when he starts on the ad-hom attacks again, just remember one fact; he's never met me. Not once. Never even spoken on the phone with me, in fact. His expertise as character judge is just another layer of fakery based on his own error-strewn imaginations and third-hand snippets.
The top three most visited IKN posts this week are...
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Second Place: "The Aphria $APHA Scotia post this morning results in an interesting conversation...". And this one was the conversation that arose due to that rant, but went off at quite a different angle.
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12/7/18
The Friday OT: Bow Wow Wow; C30 C60 C90 Go
A blast from the past:
Seminal punk track. Youtube here. For best results, play it really loud thru a mediocre sound system.
12/6/18
More excellent mailbag on the perils of passive ETFs
As a mining banker I observe, on a daily basis, the corner of the market where these effects are most acute. Mining has absolutely no cyclical capital coming into it at the moment to paper over the cracks, so I’m left staring at the bare wreckage created by an absence of capital that is primarily due to the structural inefficiencies in the markets. And make no mistake about it, these structural inefficiencies are being caused by passive funds and ETF’s.The succinct explanation as to why we should all be concerned, mining investment bankers or not, is as follows; If the dominance of passive funds and ETFs is followed to its logical conclusion, there is no need for a stock market.Why? Because the biggest impact that ETFs and passive funds are having, invisible to most market observers (and especially those who don’t care about mining), is that the primary market for mining companies has been obliterated. While the secondary market seems superficially healthy, the new issue market is dead. A company with a good project, sensible capital structure and a a competent management team used to walk up and down Bay St before collecting a modest capital infusion for a drill program of merit, but there is now barely anyone left to write a cheque for them. And that is only partially due to the decline in the number of people willing to invest in mining, but everything to do with the fact that when ETFs take your capital, they don’t invest it in the primary market. If all of the capital willing to invest in mining is domiciled in ETFs, not a dime of new issue paper would ever get issued again.“So what?”, I hear you say. Well, there are two reasons we should all care about this. Firstly, put yourself in the shoes of a mining junior. If you know you can’t raise capital on the public markets, why list? Sure, there’s a point being a public company if you’re big enough to get into an ETF or a passive fund, but the primary reason that juniors list is to raise capital. Which is a good thing because people like me and you get to participate in the upside of some great projects. But if you want all of the junior mining projects to be controlled by private capital, feel free to cheer on the rise of the ETFs.Secondly, in my humble opinion, ETFs are indeed starting to look scarily like the sub-prime market before the collapse. In short, the liquidity of many ETF instruments is probably not matched by the liquidity of the underlying stocks, so in the event of a mass liquidation of ETF positions not all of your capital is coming back to you. I suspect that a significant market correction could create a scenario where ETFs have the potential to implode in a liquidity crisis reminiscent of that which eventually blighted the mortgage backed securities market. If you own ETF’s and there is a mass stampede for the exits, do you think that your only risk is the price of the underlying securities? The reality is that ETFs and passive funds are mispricing the risk that the holders bear. What every ETF holder is unlikely to be accounting for is the counterparty risk with the ETF provider who will need to liquidate ETF positions much faster than they can sell the underlying instruments in the event of a mass liquidation event.On top of all this, don't even get me started on tracking error. I'd make a heavy bet that if you could ever precisely replicate the contents of an ETF over any given period in a portfolio of stocks you bought and sold yourself, that your performance would be significantly superior to that of the ETF itself. Call it a hunch, based on how much money the ETF providers are making.
Mailbag on Kootenay Zinc (ZNK.cse)
Sir,I applaud your efforts in shedding light on the junior mining newsletter writer (NLW) business, really more a promotional business than anything approaching an analytical one, with rare exception (you, Kaiser, Exploration Insights, that's nearly it).As you rightly point out the Resource Maven is a particularly sneaky scamster, and the recent BCSC "Bridgemark" kerfuffle has swept her into the mix, albeit tangentially, regarding one of her picks, Kootenay Zinc (ZNK) (no company website, always a good sign).One of the beauties of the CSE is its "open kimono" Form 9 distribution report which specifically names all PP subscribers (unlike the TSX equivalent, in which subscribers' name are kept confidential). See here for the Jan 2017 Kootenay Zinc Form 9, which lists Gwen Preston (plus Tommy Humphries, Chris Parry, among many other characters) as subscribers to a $0.20/unit PP (shares plus half-warrant @ $0.30/share strike price). Interesting to note that by the time the PP closed the shares were trading at about $0.55/share, so the placees seem to have gotten one hell of a deal. What a shrewd and lucky lot!Henceforth did the pump well and truly begin, including this podcast appearance by the Maven within mere days of the PP closing. The placement holders didn't even have to wait the normal four months either, as ZNK changed the tersm to allow them to liquidate 25% of their holdings at the end of February, while it was still a forty cent stock. Thay got another 25% out in May, but by that time the collapse was in full gear. The stock has since done a 10:1 rollback and now trades for $0.06/share (or $0.006/share on a pre-rollback basis, i.e. less than a penny). If you'd bought shares at $0.50 (pre-rollback basis), you would have made a whopping return of negative 98.8%. What fun for Maven subscribers!The simple fact is that 90% or more of junior mining NLWs are pumpers looking to dump their cheap shares on their flock, the latter of whom actually pay for that masochistic privilege! NLWs, by and large, are promoters full stop. Far from adding luster to a story, their involvement in a stock should be viewed by anyone outside that company's inner circle as a kiss of death.
A nice explainer on The BridgeMark Group scam
Right here. An extract:
As an example of what occurred, BCSC outlined how four of the 11 issuing companies (Green 2 Blue Energy Corp., Cryptobloc Technologies Corp., BLOK Technologies Inc. and New Point Exploration Corp.) raised nearly $18 million by privately placing (selling) shares directly to the various BridgeMark members.The companies then returned $15.3 million to the BridgeMark members in so-called consulting fees, leaving them with $2.7 million. The members, now down $2.7 million, then sold their shares (which were originally issued on a free-trading basis) for $8.8 million, thus raising about $6.2 million in allegedly illicit profit.“In addition to being quite bold, it’s quite clever. You get the money and back it goes. It’s simple enough, not overly complicated; but I guess that’s the charm,” said Woods of the allegations.
Full story here and notice a little further down the report the reference to Kootenay Zinc (ZNK.cse), as IKN will have a post on that stock coming out later today.
12/5/18
McEwen Mining (MUX): Puppet Show and Spinal Tap
Jeanine Pettibone, This Is Spinal Tap
The Aphria $APHA Scotia post this morning results in an interesting conversation...
IKNThanks. Much to agree with there. I see this shit going on all the time, but I think the point here is that this one is an egregious example. You pull your own research note after just 6 weeks? And key word there is "example"; An example has to be set, so this blatant nasty is a good place to start. To be honest, I think the whole brokerage system is going the way of the dodo, but that's a larger story.Another thing; nobody talks about it in public, you say? Well why not start! I'd love this DM conversation to be out there and in the public realm, just your screed above would make for a great post on the blog. I could do it with your name, or go anonymous route. Waddya say?
IKNOkey dokey.
IKNThe root of the evil is brokerages skipping over their fiduciary duty to clients and cozying up to the sources of 8% placement commissions.
IKNThere is that. Brokerages are businesses and will follow the money.
IKNWe're back to your 48pt banner comment.
IKNAnd here we are in 2018, it's turtles all the way down these days.
IKNIt's sub-primey.
IKNYou see other sectors, I just look at miners. And I look at GDX(J) for examples, propped up by holding 10%+ in All-Them-Miners.