Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
Bitcoin Price Rises Higher Than Gold… But Its Value Is a Different Story - 30th Mar 17
Critical Fibonacci Extensions May Mark End Of Trump Stock Market Rally - 29th Mar 17
Ending Syria’s Nightmare will Take Pressure From Below - 29th Mar 17
Charts That Reveal US Real Employment Status and It’s Not Good - 29th Mar 17
SNP Controlled Scottish Parliament Demands Right for Scotland to Commit Suicide - Indyref2 - 29th Mar 17
USD Gold Myriad of Signs - 28th Mar 17
Ominous Social Trends That Will Shape Our Future - 28th Mar 17
Foundation And Empire: Is Donald Trump The Mule? - 28th Mar 17
Top Ten US Dollar Risks - 27th Mar 17
The Popularity of Gambling and Investing Amongst Students - 27th Mar 17
Is Political Betting on the Rise? - 27th Mar 17
US Stock Market Consolidation Time - 27th Mar 17
Russia Crisis - Maps That Signal Growing Instability and Unrest - 27th Mar 17
Goldman Sachs Backing A Copper Boom In 2017 - 27th Mar 17
Foundation – Fall Of The American Galactic Empire - 27th Mar 17
Stock Market More Correction Ahead - 27th Mar 17
US Dollar Inflection Point - 27th Mar 17
Political Week Presurres US Stock Market - 25th Mar 17
London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - 25th Mar 17
Will Washington Risk WW3 to Block an Emerging EU-Russia Superstate - 25th Mar 17
Unaccountable Military Industrial Complex Is Destroying America and the Rest Of The World Too - 25th Mar 17
Silver Mining Stock Fundamentals - 24th Mar 17
A Walk Down the Dark Road of Bad Government - 24th Mar 17
Is Stock Market Flash Crash Postponed Until Monday? - 24th Mar 17
Stock Market Bubble and Gold - 24th Mar 17
Maps Of Past Empires That Can Tell Us About The Future - 24th Mar 17
SNP Independent Scotland's Destiny With Economic Catastrophe, the English Subsidy - IndyRef2 - 24th Mar 17
Stock Market VIX Cycles Set To Explode March/April 2017 – Part II - 23rd Mar 17
Is Now a Good Time to Invest in the US Housing Market? - 23rd Mar 17
The Stock Market Is a Present-Day Version of Pavlov’s Dog - 23rd Mar 17
US Budget - There’s Almost Nothing Left To Cut - 23rd Mar 17
Stock Market Upward Reversal Or Just Quick Rebound Before Another Leg Down? - 23rd Mar 17
Trends to Look Out For as a Modern-day Landlord - 23rd Mar 17
Here’s Why Interstate Health Insurance Won’t Fix Obamacare / Trumpcare - 23rd Mar 17
China’s Biggest Limitations Determine the Future of East Asia - 23rd Mar 17
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

Why Gold Will Boom In 2017

Commodities / Gold and Silver 2017 Mar 06, 2017 - 02:32 PM GMT

By: OilPrice_Com

Commodities As Trump sets out to ‘make America great again’, gold is back on everyone’s radar, gaining on widespread uncertainty and promises of high-level inflationary infrastructure spending. For our favorite precious metal, this is a euphoric time. Gold is great again, and all-American gold—even better.

The world’s hottest mining belt right now is the U.S. state of Montana. With gold futures up 10 percent and spot prices up almost 7.5 percent in the first quarter, history is preparing to repeat itself with another gold rush.


And while the ‘Wild West’ itself has been tamed since the last gold rush, there will be nothing tame about Montana gold. The state is home to one of the world’s biggest metals bonanzas, and its Silver Star Mining District is a gold belt with massive historic Gold Rush infrastructure and what Broadway Gold Mining Ltd. (TSX-V:BRD; OTCQB:BDWYF) is eyeing as some of the most lucratively underexplored and underexploited gold territory in the world.

The Broadway dream team gets it—this is a smart move on pure American gold. But so does China. In this race to stake new claims in Montana, there is growing concern that China may get too much of a foothold here for the national security interest to stomach.

Montana will be thanking Trump for his phenomenal effect on gold. Gold thrives on chaos, and even the slight possibility of impeachment keeps gold prices up. But gold is now good in any scenario. If he remains in office, Trump will pursue highly inflationary policies, and while gold loves chaos first and foremost, inflation is its mistress.

Gold stocks are loving this. By mid-February this year, the market’s largest gold stocks saw double-digit gains. Freeport-McMoRan (NYSE:FCX), up 21 percent in January, sold an impressive 1.1 million ounces of gold in 2016 and produced a whopping 4.65 billion ounces of copper. Kinross Gold (NYSE:KGC) was up more than 18 percent in the first month of 2017, and Sibanye Gold (NYSE:SBGL), also up, reported a fivefold increase in earnings. B2Gold (NYSEMKT:BTG) was also up 21 percent in January.

So while the idea of ‘making America great again’, the prospect of inflation, and the overall atmosphere of uncertainty are the best positive fundamentals for gold, everyone should also be looking at the White House’s emerging China policy, because any negative statements about China right now will send gold soaring even higher. A major coup for gold would come if the new administration comes out with a declaration that China is manipulating currency, or that the U.S. plans to meddle more visibly in the South China Sea.

Geopolitically, we haven’t seen this level of pending global chaos in decades, and we’re looking at a unique small-cap that is poised for gains in an emerging scenario that is great for gold.

In this new role American gold is about to play in an increasingly uncertain world, it’s all about Montana and a small-cap company that in the coming weeks is poised to demonstrate just how important it is in making American gold great again.

5 Reasons to keep a close eye on Broadway (TSX-V:BRD; OTCQB:BDWYF) as gold enters a new era:

#1 Brand New Listing, Massive Historic Production


Broadway owns a 100 percent interest in the Madison Gold and Copper Mine in the heart of southwestern Montana’s prolific Silver Star Mining District gold belt. This is a pure play gold and copper project in Butte, Montana—arguably one of the largest collections of metals in the entire world. It’s only 50 miles from the famous Butte open pit mine.

In this acquisition, Broadway has inherited 450 acres that already have extensive underground development and facilities. It’s also inherited C$9.9 million of direct expenditures already made on the mine historically, plus another C$2 million invested by former owner, Coronado Resources, since 2005.

This is a gold-copper skarn deposit associated with a deeper copper-gold porphyry deposit that already has six federal patented claims and 35 underexplored unpatented claims.

It’s also home to the Broadway Gold Mine—from whence the newly listed company takes its name. The Broadway Gold Mine is a historic producer dating back to the 1880s. Between 1880 and 1950, the mine yielded some 450,000 tons from 6,000 feet of underground workings.

What’s different today? Quite simply, water and technology. Historic exploration was shallow, sticking to 400 feet at most because getting down to the water was too expensive and technically challenging.

The best part: It’s never been fully explored or exploited, and Broadway has already identified a series of high-grade gold and copper zones for expansion.

In the meantime, Montana is fast becoming the hottest mining venue in the world, and the competition is fierce. Sibanye, which is 20 percent owned by the Chinese, is trying to win approval for the US$2.2-billion takeover of Stillwater Mining Co. (NYSE:SWC) and its two Montana mines, which are the biggest platinum operations in the U.S., and even the biggest outside of South Africa and Russia.

#2 The Lucrative Copper Upside


This isn’t just about gold. There’s a huge copper upside here, as well. Broadway’s new acquisition is undoubtedly one of the largest copper mines in the U.S. And with copper prices jumping over 9 percent in January, there has never been a better time to get in on this metal.

The copper prospects here are just as exciting, and it makes the lucrative gold that much more attractive. Broadway (TSX-V:BRD; OTCQB:BDWYF) is looking forward to finding deep-seated copper porphyry, common to the classic Butte copper porphyry, copper-gold multi-element system. So while the company is chasing down near-surface skarn material right now, just 600-700 feet deep, it’s going much deeper in the near future.

And timing is everything with a small-cap that’s got a stellar management track record: It has already drilled eight holes and lab results from the first three will come out possibly within a week.

#3 Advanced Stage Exploration

Broadway’s gold-copper play is an advanced-stage exploration project. Because they have all the underground mine workings already and have already rehabilitated it, they can gain access to the areas that the previous owners were bulk sampling. That means they have access to material immediately. At the same time, its surface drilling program that is already into Phase 2 is working toward Broadway’s maiden 43,000+ resource calculation.

#4 Fully Capitalized, and Hitting Drilling Hard

Though Broadway (TSX-V:BRD; OTCQB:BDWYF) is a brand new listing, as of late 2016 it’s already fully capitalized after two successful fund-raising series. The first phase raised US$900,000, and the second, US$2.1 million. The first phase was used for the acquisition and then second will be applied to an aggressive field program of underground mine rehabilitation, deep IP geophysics and surface drilling. They’ve already finished the Phase 1 drill program, and Phase 2 launched last week.

#5 Billion-Dollar Background

For small-caps, it’s all about management, and Broadway has a dream team that’s nothing short of legendary in the oil and gas and mining sectors. Chairman Duane Parnham spent his career founding and developing attractive resource-focused companies, including Temex Resources, Giyani Gold and Canoe Mining Ventures. He started UNX Energy as a US$2-million shell focused on offshore oil and gas in Namibia and raised US$60 million in equity against a US$6-million acquisition cost before he sold the company for US$730 million. After that, in 2011, Parnham started Giyani Gold, exploring in South Africa’s Giyani Green Stone Belt. Again, he turned a US$1-million start-up into a gold mine, raising US$9 million in equity and turning it into a US$350-$400-million market cap.

Junior resource companies with huge overheads and exorbitant consultant and management fees don’t last too long, but Broadway has a small team of experts with proven multi-million-dollar track records and they don’t need expensive consultants and they don’t believe in big overheads. On the contrary, they are a low-burn company with key figures who don’t need a day-to-day paycheck. They’re fully focused on adding value to an exciting project. And this company is truly motivated to get to the finish line first—that’s why it’s so closely held by insiders.

There has never been a more promising time in the commodity price cycle to get in on gold and copper, and as Trump continues to boost gold no matter what he does or how long he lasts, demand seems certain and prices brilliant. Broadway (TSX-V:BRD; OTCQB:BDWYF) gets it.

By James Burgess of Oilprice.com
Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report


OilPrice.com Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife