I went to an ice hockey game once in Vancouver. That was enough for me. My host kept telling me what was going on but I understood about as much about ice hockey at the end of the match as I do about cricket. Though I was told as a young man that if I ever wanted to chat with a pretty English or Australian girl, just ask about the rules of cricket. They can go on for hours and you get the benefit of attention from a pretty girl.
I came across a quote from Wayne Gretzky that seems to me to pertain perfectly to investing in mining stocks. I'm told every ice hockey fan knows just who he is. Reportedly he said, "I skate to where the puck is going to be, not where it has been."
I may be dense or something but isn't that exactly the point? You want to be where things are going to be, not where they were. But I have heard a lot of moaning from investors who invest using their rear view mirror instead of looking forward.
I wrote about BonTerra Resources Inc. (BTR:TSX.V, BONXF: US, 9BR:FSE) back in September. The shares were $0.405 apiece back then and BonTerra was embarking on an aggressive drill campaign on their Gladiator project in Quebec the same time as gold was embarking on an aggressive correction.
BonTerra hit bonanza numbers including 70.0 grams over 5.5 meters in hole 39 and 12.4 g/t gold over 4.0 meters in hole 38. Those are brilliant results and extended the strike length by 250 meters to 1200 meters and extended the depth from 200 meters to 650 meters. On December 8th the company announced another brilliant hole of 64.3 g/t gold over 2 meters in hole 40 and solid 8.7 g/t results over 3 meters in hole 42.
If gold hadn't been in a correction that few saw coming those results could have resulted in a doubling of the stock. I was pounding the table and telling readers that this was the opportunity of a lifetime and I was buying at $0.22. Well, if you are still looking at where the puck is instead of where it is going, you are missing a lot of opportunity. As I said several times, companies don't report much of anything from the 15th of December until the middle of January because punters are too busy swilling the Eggnog and searching for pretty girls standing under mistletoe.
Well, BonTerra has done it yet again. On January 31st the company reported a deep hole at Gladiator including 5.0 meters at 20.7 g/t gold in hole 17-01 and 8.5 meters of 15.7 g/t gold in a different zone. Those results are brilliant. As of now two drill rigs are turning and the company is fixing to bring in another rig when ice conditions allow. Plans call for an additional 20,000 meters of drilling at Gladiator in 2017.
The Gladiator project already has a 43-101 resource of 273,000 ounces of gold at a 9.37 g/t grade. All these great holes are going to increase those numbers a lot. The company expects an expanded resource to be released in the 2nd or 3rd quarter. They have two million in the till and are well cashed up until mid-year.
Their other gold project located 200 km to the southwest is named the Larder Lake project and already has a 2011 historic resource of about 960,000 ounces at just over 5 g/t. With the additional drilling the company has completed, they expect to release the new 43-101 in 2nd quarter 2017. This resource will include results from the 25,000 meters of drilling done by Goldfields that wasn't factored into the 2011 resource.
Investing isn't rocket science. We are in a gold bull market. I was one of the early ones to call it and to call for the end of the August–December correction. In a gold bull market you can expect shares to go up. You can expect exceptional projects to drive their shares much higher. Both Gladiator and Larder Lake are exceptional. The company will continue to release results over the next few week and one day investors will start to look at where the puck is going rather than where it is.
BonTerra is an advertiser. I am biased. I have not participated in any private placements with them but I started to accumulate shares in the company in December at $0.22. Please be responsible for your own due diligence.
Bonterra Resources
BTR-V $0.275 (Feb. 01, 2017)
BONXF OTCBB 91.3 million shares
Bonterra Resources website
Bob and Barb Moriarty brought 321gold.com to the Internet almost 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.
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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: BonTerra Resources. BonTerra Resources 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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