Brent Cook, Explorations Insights editor/geologist tell us “There are probably one out of 10 discoveries that are just pure luck and the other nine are actually good hard work over a long period of time with smart people,” says Brent Cook, Editor of the Exploration Insights newsletter, in an interview with Smallcappower.com. Mr. Cook explains which types of geological deposits get him the most excited, offers advice to people who wish to speculate on junior resource stocks, and mentions four stocks he considers the “safest amongst a risky sector.”
INTERVIEW TRANSCRIPTION
Tracy Bezeau: Today we’re here with Brent Cook. Brent, which junior resource stocks do you think have a ten bagger potential at this point?
Brent: That’s a tough question to answer, because there’s probably one out of 10 discoveries that are just pure luck and the other nine are good, hard work over a long period of time with smart people. But, we only get one or two of those every year, so it’s – picking them’s tough.
Tracy Bezeau: Do you expect M&A activity in the mining sector to increase this year compared to 2013? And, which companies are likely candidates?
Brent: I think we will see a lot of merging amongst the mid-tier and smaller companies, just for efficiency sake. I don’t see the major companies making a lot of acquisitions, although we did see Gold Corp going after Sysco.
I think Fortuna Silver is someone that‘s on the block that might be taken out. And, that’s all that comes to mind right now. It’s tough because the share prices are so low that that’s not such a good way to do it right now. It’s too diluted.
Tracy Bezeau: So, Brent – as a geologist, what type of deposits get you most excited?
Brent: You know, I really like gold deposits. Gold, to me, is just a more exciting mineral than most. I like epi-thermal systems or systems associated with subduction and volcanism [inaudible 00:01:33]. Gold deposits, copper gold deposits – those tend to be my favorites just because the environment is so dynamic and exciting.
Tracy Bezeau: What advice would you give to risk tolerant people that wish to speculate in junior mining stocks?
Brent: Well, if you’re really risk tolerant, don’t speculate in mining stocks. I think, however, there are – it’s gambling. There’s different levels of gambling in this sector and there are some very high quality companies that a person could buy and do, I think, quite well, depending on their view on the metal prices, like Virginia Gold, Asanco Gold, True Gold, Miner’s Gold – those have solid assets that are going to be valuable in the future. So, those are probably the safest amongst a risky sector.
Tracy Bezeau: Thank you for taking the time with us today.
Brent: My pleasure. Thank you.
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