Most of you know Bob Moriarty. For those who don’t, here’s a quick bio: As a Marine pilot, Bob flew 842 missions in Vietnam. He holds multiple international aviation records and once flew under the Eiffel Tower.
These days he’s an active mining stock investor, spending a lot of time visiting projects in remote places and grilling company managers. His website, 321gold, is a daily habit for gold bugs.
Bob is a frequent guest on commodities-oriented podcasts, where he’s always entertaining and enlightening. Which brings us to the point of this post: In a recent interview, he said some very nice things about two gold explorers, one that’s currently in our Portfolio and one that gets added today.
Here’s a transcript of that part of the video, followed by the video itself. It’s set to start at the point where Bob mentions the two explorers, but the whole interview is definitely worth a listen.
Transcript
There are two companies that are so obvious that I’m amazed that these shares aren’t two or three times higher. One of them is West Red Lake Gold Mines, which has a market cap of $145 million today. Its Madsen deposit [in Ontario’s Red Lake district] was owned by Pure Gold, which stumbled badly. Nobody was in charge, and they literally busted their pick, running out of money.
The Madsen mill cost $350 million, and at one point Pure Gold had a billion-dollar market cap. So if West Red Lake just went to where Pure Gold went, they would rise 600%. When you’ve got a mine and a mill in a good jurisdiction it’s like a trifecta.
Someone got me to invest in it a few years ago. Then they announced that they were buying the residue from Pure Gold, with Frank Guistra as part of the team behind it. He’s a billionaire, and he bought in at the same price that I did.
I talked to the Irishman who’s running the company, and I’ll be candid. I’ve been to four or five hundred different projects. and that guy is the sharpest guy running a project I’ve ever seen. So West Red Lake is an accident waiting to happen when investors finally wake up to the reality of three or four million ounces of gold with a mill, and $273 million in tax write-offs.
But Madsen is only half the story. They’ve been drilling another project about 40 kilometers away, and it’s a very high-grade resource. They’ll be able to truck that gold to the Madsen mill. I just went, “Holy cow, how could you not want to own this?” So unequivocally, I love this company. I think it’s going to go far.
The other project is the greatest story I’ve seen in 25 years. A bunch of young guys decided they were going to go into the mining business. They had a geologist who said, “We should go up to Newfoundland. There’s an area I’d like to look at that’s like 6 miles from Gander.”
Now, I’ve flown through Gander probably 150 times. If I had any idea that they had gold coming to surface 6 miles away, I would have grabbed a pick, shovel, and gold pan and been digging for gold right next to the Trans-Canadian Highway.
I’ve been to so many projects that I can visit one and guess how much gold they’ve got. But with New Found, I can’t even tell you. They have somewhere between 5 million and 50 million ounces. They’ve got 5 million in a heartbeat but they keep drilling these incredible intercepts. It’s a Fosterville look-alike. And Fosterville was the highest-grade gold mine in the world for several years and took a company from $3 billion to 18 billion.
The only problem is that their drill results are so good and so exciting that nobody, including me, can even guess how much gold they’ve got. There will be a lot of gold, and somebody’s going to make a lot of money there. They’ve got a ridiculous market cap, like $800 million. That’s what you’d expect out of a million or million-and-a-half-ounce deposit.
New Found Gold and West Red Lake are excellent, but here’s what your listeners really need to know: The carnage in the junior market has been so bad that you could put a printout on the wall of every junior in Canada and you could put on a blindfold and turn the lights off and throw darts and you’re going to hit a home run.
Here is West Red Lake’s entry in the “Gold/Silver Explorers” section of our Portfolio.
Both New Found and West Red Lake jumped after Bob’s recommendation, so Monday morning might not be the ideal time for an “at the market” buy order. A good-until-canceled order at a slightly lower price might be a better approach to adding these shares.
This will not be available on all platforms. I had one that did but the primary platform I use would not sell it to me they said it was OTC and under a buck per share.
Frank Guistra talks about Red Lake at the 32 minute mark.
https://youtu.be/GMbA8kAsRmg?si=zSDvY4o0VnKmZw_I