Walcott Resources Ltd. (CSE: WAL)(OTC: WALRF) Could Be The Sleeping Giant That Silver Traders Have Been Looking For
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While the average trader is still focusing on gold, the smart money bets have started piling into silver.
Hi Yo, Silver, AWAY!
The metal has far outperformed that of its precious metal counterpart in 2020. But unless you were in the know, the only thing you saw was gold, gold, gold. Sure, history being made is great to see, but the stock market is about making money and one of the biggest money-making opportunities hasn’t only been in gold, it has been in silver too.
The fact of the matter is this: Silver is blowing gold away by nearly 2X!
Since the end of 2019, the price of gold is up over 30%. While this is incredible by any stretch, silver is outshining the precious metal. During the same period, silver prices climbed over 50%.
Again, the story around silver is just beginning to gain coverage. The real question is this: what would happen if silver had as much direct coverage as gold right now? As they say, momentum begets momentum and gold has certainly benefited from the added attention this year. The focus on silver is actually just beginning to come to light which mean now could be the perfect time to start positioning for a potential bullish flurry of attention from Main Street traders. In the eyes of mom and pop retail, gold is expensive, but silver appears to be much more “affordable” simply based on price alone. This facet of investing could see a rotation out of gold an into silver according to some analysts.
“Silver is often called the ‘poor man’s gold’ because some of the same factors that cause gold prices to rise do the same thing to silver prices,” says Ed Moy, chief market strategist at gold retailer Valaurum. “And what is driving gold prices now are mainly the fear of inflation due to the magnitude of the monetary and fiscal stimulus worldwide, and the flight to safety due to the uncertainty around how and when the global economy will recover.”
Silver, however, is “cheaper per ounce” than gold, and its prices are much more volatile, he says. It has also been “lagging behind gold’s rise” and the ratio of the number of ounces of silver to buy one ounce of gold is historically high, implying that either “gold is overpriced or silver is underpriced.”
If silver is underpriced, ‘there is a lot of money to be made.’— Ed Moy, Valaurum
Are You Starting To Connect The Dots?
The fact of the matter is this: The focus has quietly started shifting to silver. Ross Norman, CEO of precious-metals news and information provider Metals Daily, also supports this idea. “It has been clear for some time that silver was excessively cheap compared to gold,” he says. The ratio is still historically high, “suggesting there is scope for greater gains in silver still.”
Unlike gold, silver could benefit from both a stalling economy AND an economic recovery. The typical scenario is when there’s fear in the market, precious metals are the safe haven assets. When there’s no fear, gold, in particular loses its luster.
Silver, on the other hand has different metrics to go by. Analysts pointed out that the world economy is set to bounce back, and that will drive up industrial consumption. That’s set to increase the demand for silver, which has many industrial uses. The rebound in manufacturing activity is already pushing silver prices higher compared to gold.
As we’ve discussed in the past, market leaders in any industry had their time in the sun. Especially during bull markets, some of the biggest opportunities tend to present themselves in the small-cap arena.
A Clear Runway For Growth Built On Historic Silver Mines
While Mexico has long-been known as a top silver producing country, the untapped potential could truly rest within 3 countries. According to data from Statista, Peru, Poland, and Australia are the top 3 countries holding the largest silver reserves in the world.
Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) is taking Australia head-on with a specific focus on a primary silver asset in New South Whales – the Tyr Project. High-grade zinc-lead-tin mineralization has already been identified. Walcott plans to re-open two historic silver mines with conservative inferred resource estimates and many high-grade surface mineral occurrences up to 4,710 grams per ton of silver (g/t Ag).
If you’re not up to speed on that magnitude of occurrences of that size, Buenaventura’s Uchucchacua mine, located in Peru, is the highest-grade silver mine in the world. It holds reserve grades of 445 g/t Ag. Furthermore, looking locally, South 32’s Cannington Mine produces 6% of the world’s silver; it has a measured mineral resource of 56Mt @ 193 g/t Ag.
The company’s Tyr Project is broken up into two mines right now, the Torny Underground Mine and the Burra Silver Mine. Both underground mines were last in operation 80-90 years ago and each holds historic inferred resources. Furthermore, there is sufficient historic data to expedite modelling a NI-43-101 compliant resources for the two mines.
The company’s silver-lead underground mine was worked between 1928 and 1930. Obviously, a lot has changed since the 1930’s from a technology and process standpoint. However, Torny’s historical inferred mineral resources have stayed strong. The mine has 51,000 t of ore for 24t Ag, 2t copper (Cu), 5,255t lead (Pb), 8t tin (Sn), and 586t zinc (Zn).
The company’s Burra Mine adds to the company’s mining assets. It was worked between 1920 and 1935. Historic resource estimates include 60,000t @ 933 g/t Ag and 20% Zn with plans showing potential untested extensions.
Century South Silver‐Zinc Project
Walcott’s Century South project is located in the premier Mt Isa Basin that is famous for large scale zinc deposits. In fact, the Mt Isa deposits represent the largest accumulations of lead, zinc and silver in the world. The first deposits were discovered in 1923. The region boasts six major zinc-lead and several world class copper deposits.
Better yet and something early-stage investors look for is that the area is largely underexplored yet has built in infrastructure for mining operations. One of the hurdles for companies in these phases of development comes when it’s time to actually gain access to prolific areas of potential.
Location, Location, Location
While the assets speak for themselves, you also need to consider the general positioning of this Tyr Project. The long and short of it is that when it comes to mining plays, location is everything. Even a few miles can mean the potential to intercept a major deposit already found by top producers but is still yet to be tapped. According to Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF), the proximity, geology and mineralization patterns suggest these are part of a large-scale mineralized system.
Tyr is located in the New England Orogen, a significant mineral province and home to a variety of mineral deposits. Furthermore, extensive zinc occurrences near New Century Resources’ Century Mine could also present upside potential for Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF), specifically. These occurrences are adjacent to the Century South tenure.
New Opportunities at Cobalt Hill
Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) also holds an option to acquire a 100% undivided interest, subject only to a 1.5% NSR on all base, rare earth elements and precious metals, in the Cobalt Hill copper-gold-cobalt property, consisting of eight mineral claims covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining Division in the Province of British Columbia, Canada.
During the back half of the third quarter, the company announced its 2020 exploration program. Activities will include compiling historic geochemical, geological and geophysical data along with ground truthing, mapping and sampling to follow-up areas of interest.
The company has explained that one high priority target which has been identified for work in 2020 is a 650 x 100-250 m coincident gold-in-soil geochemical anomaly and magnetic low anomaly located in an area of minimal rock exposure approximately 500 m west of the High Grade zone.
Visible gold occurs in a narrow intrusive-hosted quartz vein at the High Grade zone. Numerous historic rock samples collected from the vein have returned high gold assays, including 14.4 ppm Au, 38.0 ppm Au, 88.4 ppm Au and 413.0 ppm Au1,2. The target area west of the High Grade zone which is slated for work in 2020 includes values to 622 ppb gold-in-soil and is untested by previous drilling3. Historic rock samples from within the target area have returned greater than 2 ppm gold from float samples.
The presence of larger zones of low grade gold mineralization on the Cobalt Hill property was confirmed by previous workers in 2019, including an area 1.3 km northwest of the Meister/Marilyn Zone where trenching exposed a broad shear zone with quartz veining.
Walcott CEO, Marshall Farris, commented, “This program is expected to increase our understanding of the nature and controls of gold mineralization on the Cobalt Hill property, to identify and refine areas for follow-up work to further explore these and other areas of the property.”
This Could Be Just the Beginning for Silver Stocks: Management Is Key To Success
What has been the significant factor for making money with stocks? Being early… The fact that silver has just begun to shine presents a “first look” opportunity for smart money while the focus has started pulling away from gold.
While the first wave of speculation in gold taught us a lot and produced record-setting gains for gold stocks, the next wave of potential could be targeting silver stocks next. Not only could it have a “safe-haven” angle, but in the event the economy recovers in the near-term, the industrial applications for silver and its biproducts offer multiple ways for value to increase. But it’s not just about assets, especially when it comes to mining companies. You can have “perfect timing,” and the ideal “untapped resources”. We can’t forget that management is what takes those factors and uses them to grow companies.
In the case of Walcott Resources, the wealth of experience is yet another key aspect to this growth story.
David Thornley-Hall – Chief Executive Officer and Director
David Thornley-Hall is a seasoned executive with a background in management, finance and corporate development with public companies in the resource sector. Recently David was senior executive and joint-lead of the commercial team with a Canadian based potash development company, responsible for negotiating a combined investment of over $100 Million. He has been a senior member of the management teams of exploration companies advancing projects in Canada, the US, Mexico and Peru. Prior to his work in the resource sector, he worked on Bay Street in the fixed income brokerage business and became Managing Director of the UK branch of a Canadian dollar inter-dealer bond broker.
John Mirko – Director
John Mirko is currently the President, Chief Executive Officer and director of Rokmaster Resources Corp. and a director of Walcott. He has extensive experience in mining contracting, corporate finance, acquisitions and as a director and management of mining exploration and producing public companies. Mr. Mirko was formerly a founder and director of Roca Mines Inc., Stikine Energy Corp., Frontier Pacific Mining Corp., Pacific Rim Mining Corp and Auckland Explorations Ltd. He was also a director of Skylark Resources Ltd., Calypso Developments Ltd., and Acme Resources Ltd. Mr. Mirko is currently President of Canam Mining Corp., his private consulting-contracting firm. Mr. Mirko was a recipient of the E.A. Scholtz Award (2008) for Excellence in Mine Development and the 2009 British Columbia Mining and Sustainability Award for the MAX Molydenum Mine.
Mike Cowin – Director
Mike Cowin currently serves as a director of Corom Funds Management and as Chairman of Dominos Pizza Japan. He also serves as a director of Rokmaster Resources Corp. Mr. Cowin also serves as a board member of Bridgeclimb Australia and CTE Investments. Between 2007 and 2018, Mr. Cowin served as a director of Northcape Capital, a boutique investment fund based in Australia.
Kelvin Lee, CPA – Chief Financial Officer and Director
Kelvin Lee has over 15 years’ experience in senior financial positions with a number of listed issuers focused in the mining industry. His responsibilities included development and execution of financial strategy and operations, including regulatory reporting, financial planning and analysis, treasury, tax and audit.
Investors Are Searching For The Next Opportunity In Silver
We don’t need to get into the success stories of silver stocks that have climbed X% in the last 5 years. That’s because smart investors already got a taste of how big silver stocks can run. Just like gold stocks, during bull markets for the metal, it’s been the small-cap stocks that have performed the strongest:
Reyna Silver Corp. broke out from around $0.60CAD in June to $1.40CAD by August
Avino Silver was trading at just $0.48CAD at the start of Q2 2020. By August, it managed to soar past $2CAD
Even “higher priced” Fortuna Silver rallied from under $2.50CAD to nearly $10CAD from March To August, 2020
Endeavour Silver Corp. was trading at $1.30CAD in March and by this summer, reached highs of $6.40CAD
Investors are now on the hunt for the next small-cap silver stock to add to their list. Considering the very recent developments and mineral-rich location, Walcott Resources Ltd. (CSE:WAL) could be one of the names on that list.
Why Walcott Resources Ltd.
(CSE: WAL) (OTC: WALRF)
- The timing for silver could present very near-term opportunities above and beyond just a “safe haven” compared to gold
- Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) has acquired multiple projects with significant silver and base metal mineralization
- Australia presents one of the largest opportunities in silver mining plays based on its global positioning holding some of the largest silver reserves in the world.
- Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) mines are situated near already top-producing mines and could intersect some of the area’s richest mineralization systems.
- Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) current projects are located near established mining infrastructure & accessible port, whilst Australia is a stable, well‐regulated, mining jurisdiction.
- Investors presently looking at Walcott Resources Ltd. (CSE:WAL) (OTC:WALRF) are seeing it before the company begins the development of a potentially high-grade site during a time where silver is becoming a stronger focus for the market.
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