The Daily Sentiment Indicator tumbled to a value of 9 on Friday Jun 15th. I have said for weeks that we are due a tradable low in the June/July timeframe and it would need to be below 10. So we are in the timeframe and it is below 10.
It's just my opinion but I still see too many bulls and I suspect the low is a couple of weeks away. Look for a plunge in speculator silver and gold COTS in the weeks ahead. Since the COTs measure from Tuesday to Tuesday, this week's values won't reflect Friday's drop but I would wager that the plunge on Friday torched some of the PermaBulls still looking for the latest variation of the "Gold Derivatives Time Bomb."
You don't have turning points higher when the open interest in silver is at a near record high. Look for lower gold and silver ahead, lower open interest and speculator panic selling coming. The DSI will mark the bottom when it comes.
Meanwhile back at the ranch, the opportunity to pick up quality juniors now on the bargain table is here. We have a new advertiser, Goliath Resources Ltd. (GOT:TSX.V) with an interesting business plan. The shares have already doubled in the last five weeks as investor interest in the Golden Triangle of British Columbia heats up.
If investors think back, GT Gold went from $0.40 to $2.76 in two months after reporting 10.67 meters of 13.03 g/t of gold right at a year ago. The stock has retraced much of the rocket higher to $0.82 but for investors swift of feet there was a wonderful opportunity to take some nice profits. That was about the same time Garibaldi shot from $0.12 to $5.27 based on little more than indications of mineralization at their E&L project in the Golden Triangle.
In early 2017 company President and CEO Roger Rosmus optioned four major projects in BC from the J2 Syndicate. The terms are not cheap but the properties are the most prospective of J2's suite. As one of the main financiers of J2, Roger had first call on the best properties.
The Lucky Strike project has two high priority targets for Goliath for exploration in 2018. For an option on 100%, Goliath agreed to pay J2 $989,000 over a five year timeframe and a work commitment of just over $6.5 million over the same time. The payments and work commitments are back-end loaded so Goliath can take a flyer on the project for not a lot of cash.
In any case, they are cashed up for the 2018 season and have about 64 million warrants at an average price of $0.18 so potentially another $11.5 million in cash for follow up drilling in 2019.
Goliath's 2018 drill program at the Bullseye target at Lucky Strike consists of a starter 500-meter drill program going for a 2.4 km by 3.4 km classic text book porphyry. Two of the most prolific placer gold creeks in the district surround the property. The company will be doing IP, trenching, soils samples and mapping before starting the short program.
The other hot property that is part of the Lucky Strike project is called the Kingpin. An extensive polymetallic structure in bedrock is believed to have a potential for another Eskay Creek deposit. Over an area of 830 meters by 130 meters samples have shown 14.6 g/t Au, 118 g/t Ag with zinc and lead as well. This summer's groundwork is intended to produce targets for a 2019 drill program.
Goliath also intends a small 500-meter scout drill program at the newly discovered Copper King target within the Copperhead property. Copper King shows a volcanic breccia at surface that measures 2,000 meters by 350 meters. Results from last year measure up to 7.97% Cu and 45.4 g/t Ag.
The agreement for 100% on Copperhead calls for cash payments of just over $550,000 over a five-year period as well as a work commitment of $1.2 million during the same five years. Again, the schedule is back-end loaded to allow the most money to be put into the ground first. Naturally, success will make further financing easier and hopefully at higher prices.
Within the same Copperhead project is another property named Golddigger. It is an alteration zone of 115 meters by 95 meters within a 1,200-meter by 150-meter visible zone. Grab samples from last year from a large breccia area assayed 21.1 g/t Au, 214 g/t Ag, 3.25% Pb and 0.26% Cu. The company will do the normal groundwork of mapping and sampling this summer in order to determine the best drill targets for next year.
A natural question for investors would be, why are these properties just now being developed if they are so potential? And the answer is both simple and obvious. Glaciers and ice fields covered all four properties picked up by Goliath until recently. You couldn't see what was underneath until climate change revealed the riches beneath. So for all practical purposes, these are brand new projects. They were hidden from view for the last 15,000 years.
Goliath is a project generator. They have no intention or ability to take a project to production. They intend to do the basic groundwork to prove the scope of the property and then either vend it to a mid-tier or major or do a joint venture. The drill programs are designed to pick the low hanging fruit and polish them up so bigger companies will see the potential and invest or buy them out.
I found Goliath to be interesting because they understand full well that they are competing for investor dollars with the other thousand or so juniors with interesting stories. They understand that if you don't tell the story, you don't have a story and are aggressive in bringing investor eyes to their vision and execution. Their presentation is excellent and anyone really interested in the Golden Triangle should view it.
Goliath Resources
GOT-V $0.22 (Sep 26, 2017)
GOTRF OTCBB 84.5 million shares
Goliath 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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