New information, trying to get the word out:
American Company Spotlight
Joshua Gold Resources Inc. Website: Click Here Information As Of January 7, 2014
Exchange: OTCQB Market Cap: 11.4 Million
Outstanding Shares: 81.2 Million 52 Low / High: $0.10 / $0.40
Price January 7, 2014: $0.14
"The 40,000-acre Swayze Gold Property is central to Iamgold Corp.’s Cote Lake Deposit to the east and Probe Mines Ltd.’s (TSX-Venture:PRB) Borden Lake Deposit to the west. Combined, those two deposits host 13.1 million ounces of gold (indicated and inferred). Certificates of assay from the Ontario Department of Mines in 1946 on vein material at Swayze ranged from 0.4 to 117.7 ounces per tonne gold."
Overview
Joshua Gold Resources is a US gold exploration company headquartered in Canada, engaged in the exploration of highly prospective properties on a global scale. The Company's focus is to explore properties that are contiguous to proven gold-producing properties which represent a higher probability of gold-bearing geological structures that will lead to mineable deposits of gold.
The Company has also acquired two highly prospective Graphite Properties in the Province of Ontario.
Investment Highlights
Strong Graphite Position. The 395-acre Brougham Graphite Property is located adjacent to the past producing Black Donald Graphite Mine, which has been the source of 94 percent of Ontario’s historical graphite production and dubbed one of the largest and richest graphite deposits in North America with ore grades up to 80 percent carbon graphite. Exploration at the 1,305-acre Bigwood Property has produced graphite flakes up to 3" in diameter. Opportunistic Industries. Joshua Gold Resources was formed to capitalize on acquisitions of prolific properties at discounted prices as the gold markets are depressed by temporary external influences. Due to technological advancements and regulatory changes in China, the graphite industry is underserved and in great need of new sources of all forms of graphite. Seasoned Management. The Joshua Gold Resources team is led by President, CEO and Director Benjamin Ward. Ward has an illustrious resume and is focused on acquisitions and property option agreements for the company. Other officers and directors at the company have decades of top-tier experience in finance and mining. Dr. Cheriton, PhD. Harvard University, a registered professional engineer, has been in the mining industry for five decades and is directly responsible for the discovery of a number of ore deposits, including the Caribou Mine in New Brunswick, Canada.
Profile
Gold and silver prices have not exactly had a favorable year as investors have taken their profits from record runs in recent years and moved them back into the uptrending equity markets in 2013. A clear driver for gold and silver, especially in the past six months has been constant speculation about when the U.S. Federal Reserve is going to begin tapering its massive stimulus package, known as quantitative easing. The central bank currently buys $85 billion each month in Treasuries and mortgage-backed securities to help stimulate the economy. Typically, this money-printing plan is supportive of gold prices, primarily as a hedge against inflation, but benign inflation and fear over the Fed ratcheting back its asset purchases has fueled bearish sentiment.
There is no shortage of so-called pundits that are voicing their opinion on gold prices, many claiming it is going lower. We see the growing choir of voices lowering forecasts for gold in 2014, including UBS Investment Research this past week, as a time to start looking very closely at opportunities in the gold space. Incidentally, UBS lowered their 2014 average gold price for 2014 from $1,325 per ounce to $1,200 per ounce. That’s only about $20 per ounce lower than the current price of spot gold and is a price where many miners can still be very profitable. In September 2011, UBS Wealth Management executive Dominic Schnider told CNBC that $2,000 gold was “definitely” going to happen in a few weeks. Gold was coming down from highs of $1,923 per ounce at that time and never moved above that record level again.
It’s not a secret that analysts are often late to the party and shift their views on a dime, so buying when they say sell, is a contrarian investment strategy that has paid very well for plenty of investors. Warren Buffett has made billions doing it. Take a look at analysts that were slamming Apple, Inc. (Nasdaq:AAPL) when shares were in a major slide from record highs this year. Amidst the pessimism, the stock has reversed course and closed ahead for 2013. Believe it or not, Apple stock traded as low as $378 late in April and has now risen about 50 percent in only seven months, despite Goldman Sachs removing it from their vaunted “Conviction Buy” list and downgrades from analyst firms, such as BTIG Research and BMO Capital.
As the slowing of quantitative easing is fully digested, gold will find its footing again and money will move back into miners. There are several points to take note of in addition to just taking a contrarian investment stance. For starters, before the housing collapse and Great Recession pummeled the markets, gold was around $1,000 per ounce. Keep an eye on volume levels of gold exchange traded funds, some heavier buying days have come back in since June and the SPDR Gold Trust has not dipped to those lows since, indicating that the selling pressure may be subsiding. Further, stimulus is not done in the U.S. and other countries’ central banks are actually increasing stimulus efforts, which is generally supportive of gold globally.
That is not to say that every miner is in play or that gold is going to bounce straight back up just because it is not getting much love from analysts. What it does mean is that mining is a long-term investment and it is time to take a look at the industry as a whole and start dialing-in on companies that have experienced management to navigate a challenging macroeconomic climate and solid properties known to host high-grade gold with room for further exploration. Ideally, a miner will be diversified into other metals that are still in high demand as a complement to gold projects. For example, iron ore and graphite are experience robust demand globally because of technological advancements, increasing manufacturing activity and emerging economies going through growth spurts.
Joshua Gold Resources, Inc. (OTCQB:JSHG) was assembled as the metal markets began their descent through the vision of a leadership team that saw an opportunity coming in the near term in the mining space. While many miners of varying market capitalizations were shuttering mines and restructuring to try and curtail inefficiencies, Joshua Gold was putting together a team of leading experts in the mining and financial industries to align for acquisitions of properties in prolific mining regions at deep discounts.
The company first acquired the large Swayze Gold Property in the Swayze Greenstone Belt of northern Ontario. Comprised of 63,137 contiguous acres, the property is central to Iamgold Corp.’s (TSX:IMG) Cote Lake Deposit to the east and Probe Mines Ltd.’s (TSX-Venture:PRB) Borden Lake Deposit to the west. The company is rightfully optimistic about the gold in the ground at Swayze as Iamgold’s deposit hosts 8.7 million ounces of gold (indicated and inferred) and Probes’ deposit hosts 4.31 million ounces of gold (indicated and inferred).
Exploration at Swayze has shown 21 distinct gold bearing quartz-cabonate primary veins at the surface at the Kenty Gold Mine section of the property. These veins, of which only 8 have ever been mined, average 1 – 1.5 meters in width. This assessment of width may actually be underestimating the size of the mineralization as the rock alteration halos surrounding the high grade veins have been determined to host gold mineralization as well.
The history of the Kenty gold mine goes back to 1930, when the Kenty brothers first discovered gold and sunk two 500-foot plus shafts to start extracting the gold, but only limited mining activity was conducted with respect to the size of scope of the mine itself, much less the rest of the Swayze property, leaving a huge opportunity for Joshua Gold.
Recent chip sampling from the property confirmed 12.64 ounces per tonne gold. Certificates of assay from the Ontario Department of Mines in 1946 on vein material ranged from 0.4 to 117.7 ounces per tonne gold. Recent analysis from mineralization from secondary veins not originally thought to be gold bearing showed values up to 5.41 g/t gold.
On November 18, Joshua Gold made the prescient move to acquire two highly prospective graphite properties in Ontario. The 395-acre Brougham Graphite Property is located adjacent to the past producing Black Donald Graphite Mine, which has been the source of 94 percent of the Province of Ontario’s historical graphite production and dubbed one of the largest and richest graphite deposits in North America. Ore grades at the mine were reported up to 80 percent carbon graphite.
Several companies have carried out drill programs at Brougham looking for gold and uranium, only to keep turning up significant graphite values.
For example, in 1967, Emerald Lake Mines drilled four exploration holes while looking for gold and reported hitting graphite in the range of 10 – 20 percent in three of the holes. Two holes drilled by Robert Campbell in 1964 both hit 10-foot sections of graphite, one at 40% graphite and the other at 50%. In 1982, Coronation Resources finally saw the bigger picture and completed a 12-hole diamond drill program totaling 3,170 feet, specifically testing for graphite, which was hit in every hole.
Joshua Gold also acquired the 1,305-acre Bigwood Property, a contiguous block of six mining claims in the Sudbury Mining District in Ontario. The Bigwood Property is a highly prospective target for Graphite with graphite observed in flake aggregates of 1/16" to 1/2" in diameter. Larger flakes, including 3" diameter flake have been found in zones of hydrothermal pegmatitic nepheline syenite.
While miners previously may have not seen the value in graphite, such is not the case today. Technological advancements and a major policy change by China have put the world in need of new sources of graphite in amorphous, crystalline and flake form. Graphite has historically been used in countless applications, including steel making, lubricants, battery anodes and paint, but modern technologies, especially lithium-ion batteries used in laptops, cell phones, power tools and electric cars, have caused a spike in graphite demand. In particular, there is a stark need for high-grade flake. The current world price ranges between $1,400 and $2,000 based on quality and is expected to hold to this price level and grow in the future, due to a supply chain that has been choked by China, which produces about 80 percent of the world’s graphite, saying that it is keeping nearly all graphite for domestic use going forward and slapped on heavy export tax on any graphite leaving the country. Apropos, China may find itself in a very precarious position in the future with its graphite hoarding because most of the graphite produced in China is of lower grade and not suitable for use in electric batteries for vehicles, meaning that to meet its initiatives for electric cars, it may have to become a net importer of flake graphite.
The astute acquisitions came at the hand of a management team at Joshua Gold that knew exactly what they were after to grow shareholder value by locking in properties while the markets were depressed. The team is led by President, CEO and Director Benjamin Ward. Ward has an illustrious resume and serves as a director on the boards of several companies in the resource industry and is focused on acquisitions and property option agreements at Joshua Gold. Other officers and directors at the company have decades of top-tier experience in finance and mining. Of note, Dr. Cheriton, PhD., a registered professional engineer, has been in the mining industry for five decades, serving at companies like Atapa Mineral, Consolidating Mining Company of Canada and Anaconda Copper Mining Co. and is directly responsible for the discovery of a number of ore deposits, including the Caribou Mine in New Brunswick, Canada.
The recent acquisitions made by Joshua Gold have been fundamentally accretive to the company, but they have not necessarily been reflected accurately in the share price. With only 81.2 million shares outstanding and a 22-cent per share price tag, Joshua Gold’s valuation is still only $17.87 million, leaving plenty of clearance for appreciation as Wall Street learns more about this new kid on the gold and graphite block. By most standards, the company is still considered a “position play” because of its portfolio and the fact that it is not yet in production, but the large land positions, management team and high-grade reserves will serve the company very well in the future either for independent development or lucrative partnering opportunities. Any seasoned trader knows that when there’s blood in the streets, it’s time to buy. In fact, it is that same philosophy that was employed by Joshua Gold to quickly build its formidable portfolio at a fraction of its real value. It is for these reasons, as well as the ones mentioned above, that we at AllPennyStocks.com have decided to turn our next US spotlight on Joshua Gold Resources Inc. (OTCQB:JSHG) and encourage our members to promptly begin their due diligence and add it to their watchlists.
Recent News and Press Releases
Graphite Property Acquisitions by Joshua Gold Resources Inc.
Marketwired (Mon, Nov 18)
Sarissa Resources Corporate Update
Marketwired (Thu, Sep 19)
Joshua Gold Resources Inc. Acquisition, Exploration & Corporate Update
Marketwired (Fri, Jul 12)
Joshua Gold Resources Inc. Says False Allegations Made by MSD Gold
Marketwired (Fri, May 31)
MSD Gold Files Legal Proceedings to Clarify Its Ownership of the Kenty Gold Mine Property
Marketwired (Fri, May 24)
Joshua Gold Resources Announces Kenty Property Expansion
Marketwired (Mon, Apr 8)
Management
BENJAMIN WARD
Mr. Ward currently serves as President, CEO, and as a member of the Board of Directors for the company. Ben works within the natural resource sector to create long term value for equity investors, both private and public, pairing them with landowners and claim holders through mutually beneficial structures. Ben's focus with Joshua Resources is the completion of asset acquisition and property option agreements from which to form the basis for exploration and development. Recently Ben has completed acquisitions on behalf of a private equity fund for oil assets within the Bakken Formation and Williston Basin in North Dakota. Ben is also a Director of NioStar, a mineral development company focused on the development of the Nemegosenda Niobium Project. Ben's focus with Joshua Resources is the completion of asset acquisition and option from which to form the basis for exploration and development. Ben holds an HBA and is Project Management Professional, fluent in French and conversational in Arabic.
DINO MICACCHI, CA
Mr. Micacchi currently serves as Chief Financial Officer, and as a member of the Board of Directors for the company. Mr. Micacchi is a Chartered Accountant with experience in both public and private sectors. Mr. Micacchi has worked as a partner in public accounting firms for the past 26 years. Mr. Micacchi holds a Bachelor of Arts degree from the University of Western Ontario, London, Canada and achieved his designation as a Chartered Accountant from the Canadian Institute of Chartered Accountants in 1985.
MERLE GOERTZ
Mr. Goertz currently serves as Manager, Investor Relations, International for the company. Mr. Goertz has led or worked on behalf of mineral exploration and mining companies for the past 26 years, including terms as the President of both Acer Capital Corporation and Ardent Ventures, LLC. Most recently Mr. Goertz worked for Augen Gold Corporation helping groups of retail investors to realize a return of up to 246% in one year alone.
Contact:
JOSHUA GOLD RESOURCES INC
2368 LAKESHORE ROAD WEST | SUITE 300 | OAKVILLE
Ontario | L6L 1H5 | Canada
Office: 1 877 354 9991 | Fax: 480 287 8518
Investor Relations, International
MERLE GOERTZ
INVESTOR RELATIONS
mgoertz@joshuagoldresources.com
Office: 1 877 354 9991
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