One of Jay Taylor’s junior gold stock picks has Eric Sprott and Frank Giustra as significant shareholders
SmallCapPower | March 6, 2019: Jay Taylor, of Jay Taylor Media, gave a presentation during the Letter Writer Presentations for Investors on Sunday, March 3, 2019 at the PDAC 2019 convention in Toronto. Here’s a summary of some of the points he made:
Macro Trends for Gold. U.S. Federal debt is now sitting at $22 trillion. Each 1% increase in interest rates adds $220 billion to U.S. government expenditures. Equity markets have been on a 10-year bull run because of massive amounts of liquidity injected into the system by central banks around the world.
The U.S. had to get rid of high-paying jobs to maintain to world’s monetary system. The labour participation rate has been going down, and quality jobs have been decreasing. Walmart employees used to make 70K/year now they make 20K/year and need government handouts to survive. Medium household income is down. The military industrial complex is how the U.S. is able to maintain their world reserve currency status. Money is created with debt; once you get to a certain level of debt, this becomes counter productive.
Central bankers are trying to normalize their balance sheet with quantitative tightening. However, this is not working and they will most likely have to lower rates again. We are in worse shape now than we were in 2008/2009. Eventually, the world will lose confidence in the U.S. dollar; this is expected to be the catalyst that drives gold prices.
Jay Taylor’s Top Junior Gold Stock Picks
Novo Resources Corp. (TSXV:NVO) -$2.75
- Massive (hundreds of sq. kilometers) of conglomerate-hosted gold at Pilbara, located on the Hamersley Basin in north-western Australia.
- Beaton’s Creek gold project in Australia has surface conglomerates averaging ~2.3g/t Au with resource and PEA expected H2/2019.
- Karratha Project, Western Australia, an extremely coarse gold challenge to be met with mechanical sorting that may revolutionize coarse gold projects.
- Egina Project (Australia) extensive weathered gold-hosted conglomerate on a massive scale may provide the earliest cash flow for Novo.
Rise Gold Corp. (CSE:RISE) -$0.095
- Idaho mine with 2,414,000 oz gold production at 17 g/t until WW2 shut the mine down in 1942.
- Before shutdown produced 129,000/oz annually.
- Had planned to double production before shutdown.
- Same grades now being intersected, 1,000m below old workings.
- All major veins open for exploration at depth.
- On private land in California with an exceptionally favourable regulatory framework.
- Management team with past underground mining success.
Klondike Gold Corp. (TSXV:KG) -$0.20
- First ever systematic modern exploring and developing of the hard rock (orogenic) source
- 20 million ounces of placer gold have been mined in Klondike
- Major Rabbit Creek Thrust structure extends over 55 km strike with at least 4 sub-parallel faults existing to the southeast, all with countless mineralized sprays emanating from those major structures
- Bulk mineable targets with high grades surrounded by extensive disseminated mineralization
- Major shareholders include Eric Sprott (13%) and Frank Giustra (12%), tight cap structure with float of 54%
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