A question I was asked by a subscriber in Toronto at the PDAC conference was how does one position themselves at the beginning of a potential bull market in gold? The answer may be bulk tonnage lower grade massive deposits which provide great leverage to a rising gold price that are located in supportive mining jurisdictions.
There is no doubt in my mind that institutional capital is returning to the beaten down junior gold mining sector as they are beginning to recognize the limited downside risk from these levels and the potential outsized gains.
Smart gold investors such as Toqueville Gold, Anglogold Ashanti and Paulson are still holding onto their shares of International Tower Hill Mines Ltd (ITH.TO) and we actually may be witnessing increased accumulation over the past five months.
Since the release of the Feasibility Study the stock has soared over 180% outperforming the GDXJ and the GLD. Why was there an increased share price despite the sell recommendations of the banks and brokerage houses after the Feasibility was published? Because ITH’s Livengood Project offers one of the best leveraged vehicles to a rising gold price.
The deposit is one of the largest gold projects in control of a junior miner in the extremely supportive mining jurisdiction of Alaska. The location is phenomenal near all season highways and near the currently producing Ft. Knox Mine which means there is a local skilled labor force ready to build and operate this mine.
I have known the management team led by CEO Tom Irwin for some years and they are the top of the mining business in Alaska and can attract strategic partners. The team has had a track record of permitting, constructing and operating cold weather Alaska mines such as Pogo and Ft. Knox.
Tom Irwin came on as CEO on January 1,2014 and is not a new face to the Livengood story. He has been working on the project as a VP Engineering for a few years. Tom has a long history of mining in Alaska and he believes that Livengood is a world-class multi-million ounce gold project that will eventually move forward with a strategic partner.
Tom has been constructing, designing and optimizing mines for over 40 years. Most notably he was responsible for engineering at Ft. Knox before start up and eventually became General Manager of Ft. Knox, which is now successfully operating for Kinross.
Since Tom Irwin has come on as CEO two important board members who happen to be experienced mining engineers have been added including the new Chairman Stephen Lang who spent time at Kinross’s Ft. Knox Gold Mine.
According to Tom Irwin in the recent PR, “Steve Lang’s qualifications, including his time at Kinross’s Fort Knox Gold Mine in Alaska, makes him an ideal fit to Chair our Board as we optimize our Livengood Gold Project.”
In addition to Mr. Lang, John Ellis, former CEO of Anglogold North America and a mining engineer with 50 years of experience has also come on the board. When the who’s who of mining engineers are working on this project trading below a $1 I pay attention and so should you. Please note the change in price levels as the stock has significantly move higher since our 10-22-13 alert.
Below you may find the video..
Disclosure: Author owns THM and company is a website sponsor.