S&P Recovery & PDAC Top Pick
Contributed Opinion

1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Anglogold Ashanti Plc., First Majestic Silver Corp. and Equinox Gold Corp. 
2. Ron Struthers: I, or members of my immediate household or family, own securities of: Discovery Silver. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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The plunge protection team was out in full force yesterday as they and the buy the dip crowd managed to rally the S&P 500 back above the support line. This manipulation put on a brave face, but I think it will eventually be in vain, as the economic and investment fundamentals are declining more rapidly.

I have dug deeper into this Iran conflict, and it is not good. I think the U.S. made a big mistake going in at this time with Israel. Iran will survive no matter how hard they are pummelled. And as the defense ability of their enemy diminishes, Iran will crawl out of the ground and strike back harder. Numbers I have heard from reliable sources are that Iran had bout 10 times as many missiles as the U.S. and Israel because of the heavy depletion used in the Hamas war and the Ukraine war. The unknown is whether the U.S. and Israel destroyed a large amount of these missiles. And I learned the actual cost of the attack drone is around $50,000 compared to $millions for the intercept missiles. There are a number of videos circulating that show the Patriot Missile defense failed to intercept Iranian hypersonic missiles. How many of these does Iran have?

You won't hear this on Western news, but Iran has already destroyed or heavily damaged the U.S. military bases in the region. Iran has destroyed several ports in the region that the U.S. Navy would use for replenishment, so now the U.S. has a long distance to go, like India or Italy.

Iran's strategy is to also damage a lot of energy infrastructure and airports to inflict more economic damage, disrupt supply chains, and cause chaos. None of these locations are defended and wide open to attack. Meanwhile, the U.S. strategy seems to be unknown and questionable, with a lot of hope involved. This will drag out and will be full of surprises and only a matter of time before bond markets and stock markets roll over. Gold and oil will thrive.

Top Picks from PDAC

This year, I held down the La-Z-Boy in the office while Joe did the legwork at PDAC.

There was huge attendance as usual, and even the investor exchange has picked up.

This pic is early morning at the trade section of the conference, before it was very busy.

Joe reports — The atmosphere was definitely spirited and optimistic this year. In some conversations I had, everyone seemed pretty excited. The Investor Exchange was already fairly busy and got busier as the day went on. Not every booth had engagement; a couple of aisles you had to turn sideways or squeeze to get through. The Core Shack was pretty jammed, there were a lot of samples out. The complimentary Starbucks was hot and fresh, much needed for the ongoing legwork.

We found a couple of stocks that have advanced multi-million-ounce deposits that are valued only around US$50 per ounce. Stay tuned for our upcoming reports on these.

But for now, an important update on one of our top-performing stocks

Discovery Silver

^{Recent Price - CA$10.00}

^{Entry Price - CA$0.85}

^{Opinion - Hold}

Discovery Silver Corp. (OTCMKTS:DSVSF) has entered into a definitive agreement to acquire Glencore Canada Corp.'s 100%interest in the Kidd operations in Timmins, Ont. The Kidd operations include the Kidd metallurgical site, the Kidd tailings management area (the Kidd TMA), and the Kidd Creek copper, zinc, and silver mine.

Glencore was planning to close this at the end of 2026, but Discovery can use it for production expansion at its Porcupine complex. Hoyle Pond and Pamour are approximately one kilometre and three kilometres from the Kidd Met site, respectively. It is a huge development to aid

Discovery's vision is to more than double gold production in Timmins to over half a million ounces per year.

There is a large land position contiguous with Hoyle Pond, and Pamour supports future expansion of both operations and provides an opportunity for development of the TVZ zone. It delivers anticipated cost synergies and potential for reduced reclamation obligations at Porcupine and provides a large, skilled workforce.

This infrastructure will advance plans to grow Discovery's gold production substantially, with the added milling capacity and the addition of at least one new gold circuit, expected to be sufficient for future planned tonnage from Pamour, Borden, and Hoyle Pond. Discovery got all this for US$10 million in Discovery stock and a 1% NSR.

Kidd Overview

Glencore's Kidd operations are located in Timmins, Ont., and include the Kidd Creek mine and the Kidd Met site. The Kidd operations opened in 1966 and over the last 60 years have produced over 772 million pounds of copper, 2.1 billion pounds of zinc, and 400 million ounces of silver. In 2025, Glencore announced plans to close both the Kidd Met site and Kidd Creek mine at the end of 2026. Upon closing of the transaction, Discovery will continue with the current operating plan for both the Kidd Met site and Kidd Creek mine. Moving forward, the company intends to look at constructing one, and possibly two, gold circuits at the Kidd Met site to support future growth in gold production at Porcupine. At the Kidd Creek mine, Discovery plans to undertake an extensive drilling program, given the significant exploration potential that exists at and near Kidd Creek mine, with a goal of identifying new mineral resources that could support future operations at the mine.

The Kidd Met site is an integrated mineral processing facility, with an accompanying 1,200-hectare tailings facility. The Kidd Met site includes a crushing plant and concentrator with four independent circuits (A, B, C, and D circuits) consisting of rod mill, ball mill, and flotation infrastructure. There are also five thickeners and gas-fired concentrate dryers. Currently, two circuits (B and C) are operating to process Kidd Creek mine copper and zinc, with an operating capacity of approximately 6,000 tonnes per day. The remaining two circuits (A and D) are presently idled and were previously used for processing other minerals, including nickel from the Montcalm mine in Timmins, as well as minerals related to custom milling. The four-circuit configuration of the Kidd Met site provides both significant scale and flexibility. Discovery plans to adjust the plant flowsheet to include at least one gold circuit and to allow for the processing of different kinds of ores, including potentially refractory material, which may exist in the TVZ zone.

Discovery is our first 10-bagger, but it still has tons of upside with production growth at Porcupine and their huge Cordela silver deposit. As I mentioned before, there is nothing wrong with taking part profits, but there is a lot of upside to go.