TICKERS: ARU

Bet on the Jockey, not the Horse
Contributed Opinion

Source:

Bob Moriarty Bob Moriarty of 321 Gold explains why in some cases—and particularly in the case of this explorer—you don’t need to know all the details, you just need to know the geologist.

I first wrote about Aurania Resources Ltd. (ARU:TSX.V) back in March. The shares were $1.25 then and are $2.36 now. Keith the Barron did a private placement four months ago. The shares come free trading in a week. It may be the last chance to jump on this wagon.

Over the past sixteen years I have visited a lot of projects. And I've met a thousand or more geologists. Everyone has their own idea of whom the best are at anything but after having met most of the players in the industry, I'm convinced I know who are in the top five.

In no particular order you would have Peter Megaw, who pretty much invented mining in Mexico. The mining industry began a slow death when the Mexican Revolution began around 1910. By 1939 socialism in the country had pretty much destroyed the mining industry as investment capital dried up.

Dr. Megaw saw the potential in the country and spent 25 years educating himself on various deposits. When Mexico finally realized it needed investment capital from abroad, he founded and helped dozens of companies sink roots in Mexico. He's the brains behind MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT), Excellon Resources Inc. (EXN:TSX; EXLLF:OTCPK) and many others. When someone calls me and tells me he is on board, I know everything I need to know about the deposit. I don't have to know anything about the vehicle, all I need to know is who the jockey is.

Quinton Hennigh is the same. He's the brains behind Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). They look as if they have found one of the biggest gold deposits in Australia in history, in an area where gold has been mined for wall over 130 years. He recognized the potential for a massive discovery 20 years ago in Witwatersrand-age basins, and only lately has proved it. If Quinton Hennigh signs off on a project or a company, you need to know no more.

If you ask anyone in the industry about who was behind the concept of mining massive but low-grade copper porphyries, the answer would be David Lowell. He has made more major discoveries all over the world than anyone I know, including Escondida, the largest copper mine in the world, and Pierina. David Lowell literally is Mr. Copper. David Lowell finds giant deposits. If he is riding, you need to belly up to the betting window.

I haven't met every single geologist in the world so I won't list my five best. I have to keep at least one slot open, but certainly one of the best gold projects discovered in the last 20 years would have to be Keith Barron's, who restarted mining in Ecuador with his discovery of the Fruta del Norte gold mine, with 13.7 million ounces of high-grade gold.

Keith's company, Aurelian, sold the deposit to Kinross Gold Corp. (K:TSX; KGC:NYSE), but the government in Ecuador turned both stupid and greedy at the same time, as governments do on a regular basis. Kinross gave the project away to Lundin Gold Inc. (LUG:TSX) in 2014.

Ecuador turned smarter and more sober lately. They missed the millions of dollars mining companies poured into their economy. Led by SolGold, juniors are hitting home runs out of the park again. In the past 18 months SolGold plc (SOLG:AIM) has rocketed from £.03 to £.47, a 1,400% advance. Even the government of Ecuador is waking to the possibility of earning money through royalties.

Keith Barron is back with yet another venture in Ecuador. This time he's looking for the two missing lost cities of gold. No kidding. If it were anyone but Keith Barron I would be convinced someone had been hitting the cerveza a little too hard. After all, the Lost Cities of Gold? Are you kidding me?

Keith is doing a wonderful job of communication and has put out five videos telling the story. It's not crazy talk; there were seven major gold production areas in Ecuador under the Spanish. Five have been located. In two, the locals ran the Spanish off and told them not to come back any time soon. The Spanish didn't, but the two locations did exist and need someone to find them.

When I heard the story, I bought shares in Aurania. No one on earth knows more about Ecuador and the potential than Keith Barron. You and I don't need to know much as long as we know him. Let him do all the thinking and hard work.

I own shares in Novo Resources and Aurania and both companies are advertisers. Naturally I am biased. Do your own due diligence.

Aurania Resources
ARU-V $2.36 (Aug 14, 2017)
22.8 million shares
Aurania Resources website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Auriana and Novo Resources. Auriana and Novo Resources are advertisers on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are sponsors of Streetwise Reports: MAG Silver. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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