When all the stock markets in the world collapsed in mid-March they dragged down all of the metals as margin clerks made investors dump everything they could to meet margin calls. That took the metals and mining shares down in an instant to the horror of investors. I smiled. I predicted it on February 27 and I was ready.
Much to even my great surprise, silver literally fell off a cliff. That didn't surprise me but dropping to a ratio of 131-1 to gold did surprise me. So I was buying the crap out of silver below $12. I know a deal when I see one. You couldn't buy physical silver unless you were willing to pay an absurd premium. No dealer is going to be paying $17 for silver one day and sell it for $12 the next. But you could actually buy the silver ETFs and they were at a discount even to the price of silver.
When investors sober up and realize you cannot and will not get a V recovery with 40 million Americans on the dole the crash will go into phase II. It may well take down the metals again. You can't get any more absurd than the general stock markets are today. They are like puffing on a crack pipe held in your left hand while tossing down LSD spiked sugar cubes from your right hand. I have never seen markets so insane.
But while silver has come back from its 5,000 year low relative to gold, it did wake a few metals investors up to the fact that silver is cheap. I was buying the crap out of ETFs below $12 an ounce and buying physical silver below $14 and that made me a happy camper.
I've written about Blackrock Gold Corp. (BRC:TSX.V; BKRRF:OTCMKTS) before. Their primary focus in their 2019 drill program was their elephant hunt in the Northern Nevada Rift looking for a high-grade gold mine. They got a lot of sniffs but have yet to drill any home run holes. Their 2020 drill program will begin when things settle down in Nevada.
It's always nice to have a Plan B in case your first efforts come to naught. I like their Silver Cloud gold project but I really paid attention when they announced doing a deal over four years to pay $3 million for what they call the Tonopah West silver project from Ely Gold. Over time Ely Gold put together the entire former silver district. Blackrock concluded the deal while silver was still in the dumps.
Tonopah is a big deal. The district was the 2nd largest silver district in Nevada with production of over 174 million ounces of silver. Blackrock plans a major 7,000-meter drill program for 2020. Over a fifty-year period the average grade of the ore was in excess of two-kilo silver. That would be $1000 a ton rock. The Victor Vein was 24 meters thick when silver/gold mines were closed in 1942 due to the war. I will suggest that if Blackrock taps into 24 meters of 65 ounce per ton silver, it will blast a lot higher. Drilling at Tonopah West should begin in June.
Blackrock is an advertiser. I have participated in several private placements so naturally I am biased. Their website is pretty good and presentation is excellent.
Blackrock Gold Corp.
BRC-V $.23 (May 27, 2020)
BKRRF-OTCBB 69.4 million shares
Blackrock Gold website.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.[NLINSERT]
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Blackrock Gold. Blackrock Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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