Morgan Report’s “Fuse is Lit on This Silver Miner” Stock

By Travis Johnson, Stock Gumshoe, March 23, 2017

I don’t think I’ve ever written about David Morgan or his Morgan Report mining newsletter, so when a reader popped up to ask about a new pitch from him this week, I thought I’d take a quick look-see for you. This is going to be short, we’ve got the Thinkolator’s best answer but I haven’t looked deeply into the stock beyond that.

The Morgan Report runs about $500/year, and I don’t know what David Morgan’s track record might be — he’s one of the more visible silver enthusiasts in the world of investing punditry, and he has the same focus on physical silver and “sound money” that most hard assets enthusiasts have, so he’s very much big picture driven. I don’t know whether or not he’s particularly skilled at picking junior miners, but he has at least been at it for a while.

And the teaser pitch is a little bit thin on clues this time around, but let’s see what the Thinkolator can do…

He does reiterate that he’s mostly a fan of physical silver, but that he likes mining stocks sometimes as well:

“While most of my research and writing focuses on the value of physical silver and the misunderstandings I believe exist in the market, I constantly research mining companies and bring our members the very best.

“After all, if silver is a good investment, then it stands to reason that silver miners — the producers of silver — could potentially be as good as an investment, maybe even better.”

And, of course…

“… every once in awhile a silver miner comes along that impresses me enough to recommend it to readers of The Morgan Report.”

So… what clues do we get? This is about it:

“I studied the company for 20 months before I recommended it to my paid subscribers. And… it has so far been a very good recommendation. The price of the stock has DOUBLED since February.

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“Better still, I believe this stock could double again in the next few months, possibly tripling by the end of 2017. (There is precedent for this. Back in 2011, the stock was 4X its current price.)”

And one more specific hint that we can toss into the Thinkolator…

“Not only does this company have a good management team and a solid balance sheet, samples from two new vein targets appear to be VERY promising. (This information was just made public on March 16, 2017, by the way, so it is ‘hot off the press.’)”

And he also notes that he is personally a stockholder in the company. So what is it?

Well, the key for narrowing this down is, I think, that terminology — samples from “vein targets.” That’s not the terminology you’d likely use for actual drilling results, so it’s probably earlier stage sampling that they’re doing. And since we know it was made public on March 16, that indicates it’s almost certainly a press release (junior miners try as hard as they can to get their news out — they depend on getting investors excited about their future, because they always need more funding from further equity sales to do their exploration work).

So where does the Thinkolator take us on this one? To a little C$50 million explorer called Minaurum Gold (MGG on the Venture Exchange in Toronto, MMRGF OTC in the US).

Minaurum Gold is a survivor of the collapse in the gold and silver markets over the past five years or so — and yes, it was roughly 4X higher back in 2011, when silver was hitting its recent peak (and when gold was just about to peak). They raised enough money back in 2011 to keep a minimal spending pattern going for a while, and then raised money again last Summer, so they do have a little bit of cash right now (something like $2 million), and they did just issue a press release last week about two promising new “vein targets” on their La Quintera silver property (they also own a few exploratory gold projects, all of their projects are in Mexico — La Quintera was a producing silver mine 100 or so years ago).

So… is this a worthwhile investment? I have no idea, I’ve never looked at this stock and it’s at an extremely early stage — they don’t have reserves or resources booked, at least on this silver project, they just have the likelihood of some promising veins of silver (partly because this is a past-producing mine in an area where there are a lot of high-grade silver mines). Whether or not it’s worth your time is up to you — it has already doubled this year, with some additional enthusiasm based on that initial press release.

So… whaddya think? Any silver or gold enthusiasts feel like digging through the info on La Quintera or Minaurum’s other assets? Let us know with a comment below.


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macaries
macaries
3 years ago

I think its GPL Great Panther Silver

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πŸ‘ 15770
macaries
macaries
3 years ago

GPL announced a Peru mine acquisition in Dec for first Quarter 2017 (Now) http://finance.yahoo.com/news/great-panther-silver-acquire-coricancha-060000705.html

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rflrvgs
rflrvgs
3 years ago

I see Harry Dent’s 2017 $700 gold price prediction several time in here. What’s Gumshoe’s thoughts on that rather contrarian thought?

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hedy1234
hedy1234
3 years ago
Reply to  rflrvgs

He has made this prediction every year revently. Has no validity.

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jayneq
jayneq
3 years ago
Reply to  rflrvgs

I am not entirely sure about Harry Dent’s $700 low for Gold in 2017. prediction, however, several respected analysts with whom I try to keep up (Elliot Wave Cycle, Hurst Cycle, Gann Cycle, etc.), and some astrology thrown in just to confuse mattes πŸ˜‰ all forecast a low for Dec 2016. This was to be followed by a 1-2 month bounce (going on now but waning) which will be followed by a much sharper decline to form new lows below the Dec 2016 lows.
The analysts differ here regarding the lows amount…some state if gold falls below $1150 monthly, then it will go down hard to $750 or so, others state it will go below Dec 2016 lows but not Jan 2016 lows.
Either way, I am keeping my powder dry for now and watching the market carefully.
There is also a big warning around April-15-21 (including from Armstrong), where a Direction Change waits. Will Gold take a turn for a drastic low here or turn up, may be decided by this month’s closing numbers.

Jayne

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Carbon Bigfoot
Carbon Bigfoot
3 years ago
Reply to  jayneq

Can’t wait till it happens as I will load up on MS70 first strikes at bargain prices. They don’t fluctuate like the spot prices because they have a built-in numismatic premium. Tired of playing the hide the sausage game on junior gold and silver “homeruns”.

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wojogumshoe
3 years ago

TKRFF, TINKA RESOURCES, another silver project with big interest on hold.

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πŸ‘ 5
Kyle
Kyle
3 years ago

You got it, Travis. David added this stock in March newsletter to the speculative part of his portfolio. Just to clarify, he does not say this one stock should be bought, but only as 1 in a bundle of his speculative positions in order to spread risk.

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Andrew
3 years ago

Excellent, always looking for an up and comer that survives a down turn, Peruvian BVN is interesting, http://eqibeat.com/top-20-silver-stocks-market-cap/

Link Quist
3 years ago

SVBRF-Silver Bear is a hugely underpriced silver mining winner as it has over 65M oz of Ag but it is its grade that is the reason to buy… It has the highest grade ore of any existing AG mine on earth, higher than EXLLF (EXCELLON) with multiple pounds of ag/t! Its location of Russia is the reason it is only ~$.20 cents, but this is an easy 5 bagger imo. Also am a HUGE fan of MINCO SILVER (MISVF), GOLDEN ARROW (GARWF), and BEAR CREEEK (BCEKF)) as ALL ARE GREAT IN SITU AG Plays IMHO…

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Link Quist
3 years ago

ASM – Avino Silver and Gold – Also Great LT Investment

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goldfanatic
goldfanatic
3 years ago

I don’t know if Minaurum is the company that David Morgan recommended, but I do know a bit about MGG, as well as being a shareholder.

With that said, here’s a post that I made on Stockhouse, where there is a board devoted to MGG, although it doesn’t get much traffic:

At the moment, Minaurum doesn’t have a drilling program at La Quintera; they have, “…commenced an extensive exploration program including the survey of old mine workings, detailed geologic mapping, rock sampling, and the interpretation of structural geology and geochemical zonation.” That was announced in late September, 2016.

Since then, they have continued to find new targets worthy of drilling, one of them, Minas Nuevas, was announced in a news release in early November, 2016. Then in December, they announced three new targets and said, “The three new targets lie in the southern part of the 7.5 km long Promontorio-La Quintera vein system that is the focus of the ongoing drill-target generation program consisting of geologic mapping and geochemical sampling. Nearly 200 rock samples have been taken by Minaurum to date, in addition to more than 300 samples in the historical database.”

With today’s announcement of two new targets for future drilling, they now have six targets to be drilled some time soon, although they have not announced the drilling program yet.

As for cash needs for any drill program, we will just have to wait and see how large a program they chose to do; however, as of the end of October, 2016, they had $2.5 million in cash. Given their low monthly burn rate, I suspect that they don’t have any immediate need to raise money for the soon-to-be-announced drill program.

I’m certainly looking forward to the drilling.
Read more at http://www.stockhouse.com/companies/bullboard/v.mgg/minaurum-gold-inc?postid=25990853#LQpfA6cmj9AvA3J4.99
++++++++++++++++++==

La Quintera is a very interesting property, but, imo, the real crown jewel of Minaurum is its position in the Guerrero Gold Belt (GGB), a stake that MGG has thanks to David Jones, the geologist who discovered Los Filos. Minaurum also has an agreement with Guerroro Ventures (GV) that will ultimately make Minaurum the third largest landowner in the GBB. Worth investigating, if you are interested in Minaurum.

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1paglee
1paglee
3 years ago

Benitek has gone wild today — $4.92 at last reading. I sold all my stake for peanuts long ago. Dr KSS, any comments?

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William
William
3 years ago