Doug Casey’s Next Big Rating

the one. This was the best mix of being an alligator, going to do things that other individuals weren’t during a pandemic, understanding the history.

Luckily, I was extremely well-read on the history of the Guggenheim’s and Kennecott, and the puzzle of being included with Copper Mountain and understanding how

smelters work. It actually was the Royal Flush, Doug, having each card and comprehending what that card does. Doug Casey: It’s incredible to me that they would miss such exceptionally abundant ore. Marin Katusa: I couldn’t understand that either, but it makes good sense if you recall at history

. Since Kennecott, which was the biggest copper miner worldwide, it’s Rio Tinto

today, their entire business design depended upon making their largest mine a success, and whatever else around it was second fiddle. And at the time, the entire empire of the Guggenheim’s (one of the wealthiest households on the planet at the time)depend on this one task. It was the very first major bulk tonnage mine worldwide.

Now, fast forward numerous years, it’s not like you just take this gravel and put it into the smelter; you need to blend it to get the ideal recovery from the smelter with

something called flux due to the fact that it preserves the temperature in the smelter. However you want that quartz, which is flux, not to have other “nasties “like mercury or fluorine or any non-valuable metal that will screw up the smelting process and minimize copper and gold healing because of the temperature change in the smelter. That’s all it is. You desire it to be as easy as water, simply to push it through. That’s what flux is. It was about 98.5%to 99%pure quartz flux. And they never ever assayed it for copper or silver, the flux, since they didn’t care. What was the top priority of the whole task? Make sure you get as much flux to the mother ship. And this was the perfect

flux to mix with their concentrate from their largest mine. When you’re underground, which you’re going to come with me, I’ve currently been underground. You will see the flux and see why they missed out on the ultra-high grade gold. And remember, Doug, this is from the 1940s, ’50s, ’60s; there wasn’t the woke environment where you’re asking individuals, how do you feel prior to they go to work? Can you go to work today? Back then was, if you were an underground miner, you were a tough and all set employee delighted to have a paying task and didn’t ask questions. And if you didn’t wish to be difficult and have a high output, 50 people were waiting in line for your task. It wasn’t like today.

It was a very different environment. You didn’t question anything. You didn’t have your own concepts. You were simply labor in an underground mine. The supervisor stated, just produce the white rock– we only desire flux. If there’s red rock, keep away from it because we’re not going to get spent for that, and we’re going to get fired. If it’s green, remain the hell far from that since that’s not white. And here is the important things about innovation, Doug. These underground geologists and miners from 1940 to the 1970s didn’t have the advantage like me when I holed up with a$50,000 XRF laser weapon that, when I click the trigger, will tell me with a high degree of precision

what the composition of the rock is of gold, silver, copper and all the metals. I was the first on the planet beyond the insiders, operating in this personal operating business to hole up and see the rock. And when I saw what I saw, I believed to myself,”I have actually got to get this.”Doug Casey: I remember that it’s got some little production. Who’s running the mine today? What’s that everything about? Marin Katusa: Correct. So, in the ’90s, the company went bankrupt. And when Kennecott did its whole restructuring and eventually merged into the flagship of Rio Tinto(the world’s second-largest mining business ). And this district simply stopped producing and closed down. Then a property group got the holdings through insolvency. They joint ventured it to an actually good

group, both private. They were attempting to figure out what to do. They did some more exploration. And after that one of the geologists had a concept:”well, let’s go back into a particular area of the flux development and do some crosscuts.”That’s when they discovered

their first state-of-the-art gold structure, by basically some very good geological work and a lot of luck. Which was within 20 feet of the main zone of where the flux was originating from for the largest copper mine in the world for decades. The infrastructure is in place, and the little personal group operates this small shaft. Remember, they moneyed it themselves, this little private business, So by just doing 35 tonnes a day, they’re doing something like 25,000 ounces of gold due to the fact that it’s so high grade. The new men are going to do a drift, upgrade the mine and mill, and intend on doing 500 tonnes a day. Still, this is a very

little mine compared to the mines that you and I have financed into production like the Equinox mines. But in a world with high inflation costs, I am quite pleased with the ultra-high grade that can get to 150,000 to 200,000 ounces a year of production from 500 tonnes a day operation.

It’s the greatest grade running mine on the planet for gold. Doug Casey: Do you believe they’ll have the ability to increase production substantially? Marin Katusa: Easily, with some brand-new capital spending, for this reason why I am moneying the business. Doug, with the capital in the company now, you’re taking a look at over 100,000 ounces of gold production within 24 months. But the objective is to take it north of 200,000 ounces. Now that does not look like a first-rate production, but you’re discussing tonnage and your expenses

, and it’s all about margins. You do not require to install$500 million to produce 250,000 ounces

of gold here due to the fact that the grades are so high. Today, it would cost USD $1 billion to construct a mine that can produce 250,000 ounces each year. I think we will get to 200,000 ounces for less than$200 million. I am the biggest investor in this financing.

More importantly, you think of just the existing facilities in place that Kennecott put in over the decades, power lines, structures, roadways, shafts, wanders, tunnels; there’s over$ 400 million currently sunk into this district. It’s produced over 300 million ounces of silver and 2.9 million ounces of gold. And here’s the craziest part of this. Doug, you know how cheap I am, and I search for value. There’s an initial financial evaluation(PEA) of an existing deposit where the net present value(NPV)is worth$160M at no charge in our valuation. We also get both the huge copper porphyry target and 14,000 acres of a district with 23 previous producing mines for free. The existing gold deposit is worth more than the acquisition price of the business. Now to return to why the old-timers never ever caught wind of the ultra-high grade nature of the

deposit. And when I state high grade, it is actually the world’s highest-grade operating gold mine worldwide. I could not believe it when I went underground and looked at the gold in the mine on the hanging walls. It’s actually a green-looking rock. Very couple of geologists have ever seen such a thing, and unless you assayed for the gold, your eye would never get its gold. I have actually shown the photos of the underground operations to the very best geologists, all the Hall of Famers

, and not a single one selected what it was. It’s uncommon. And since the underground miners were focused on white, there is no “traditional”gold in the rocks. It’s telluride gold looks green with some

rusty red parts and barite. To put things into viewpoint, there is an area of this high-grade vein that the business will produce that runs 102 ounces per tonne. That rock deserves over$180,000 per tonne. To me, this is not just an extremely state-of-the-art operating cash cow. We get the existing base metal

deposits, which were past manufacturers and presently have a NAV of over$160 million, totally free. An incredible copper porphyry target under the gold zone for free. 100% ownership

of 14,000 acres of a full-out mining district with 23 past producing gold mines, over 300 million ounces of historic silver production, and 2.9 million ounces of gold production.

For free. Talk to any geologist worth his weight in salt; they will understand that something is feeding this unbelievable structure. You simply don’t get these types of deposits without something there; all the indications are there. Our own internal gold resource at

a 50 %discount to NAV. And yet, if we are right– the recognized resource of gold pays for the entire acquisition within 30 months from capital from the operating gold mine. There are a lot of ways to get more value out of it than how it runs today. And the men on site are fantastic. Don’t get me wrong. But with more cash and the guys we’re generating have actually built the most significant operating gold mine in Canada. These men are winners, and we get a chance to invest at the very same time at the same rate. Once again, Doug, my whole thesis is, to go to politically stable jurisdictions where you have massive infrastructure currently in place, where you’re bringing modern-day technology

that’s shown to boost the economics of the project. It truly is that simple. This is an exceptionally potential mine, and we are getting it for a significant discount rate to its net possession value. That’s Warren Buffet value. For

less than$ 10 countless drilling, we could pull another Solaris. We did this, Doug, with Solaris in the Katusa Research office. Keep in mind that website see when you and I opted for Bob Dickinson, Ron Thiessen, and David Lowell? Speak about legends and Hall of Famers. Which was when David Lowell, who’s the greatest copper geologist of all

time, sat next to me on the flight and pitched me on doing an offer together. I said,”I do not wish to do any more deals.”He said I reminded him of his old partner from the 1960s, which was the birth of what became JDL Gold Corp. And we then went and took over the Aurizona cash cow in Brazil, which ended up being Trek Mining. And then I brought Ross Beaty in, which was the birth of Equinox. But all of it started with David Lowell. And remember, we kept

those copper possessions and our subscribers got a totally free dividend that went

from 25 cents worth dividend for tax functions to today, north of$13 a share. That’s how you make these huge ratings in the businesses with these kickers for free. Having a kick at the can of a first-rate porphyry copper deposit at no cost is a fantastic way to succeed in this organization, like we finished with Solaris. Doug Casey: What could go wrong with this, Marin?

Marin Katusa: Well, mining is constantly difficult. Let’s state, although I have actually walked underground, and I have actually existed, I think the rock is steady, and it’s been producing for on and off 100 years. There’s always the danger of the walls, a mine collapse. Another risk is that the gold cost could drop 50 %. But this gold mine, in my opinion

, will be financial under$ 800,$900 an ounce. So sure, I think gold falling 50%would be extreme, and it could take place (I question it, however it might), but then at that point, extremely few deposits are financial that’s producing in the world today anyways. What else could be a threat? We do not have the political threats of an emerging nation. This is an extremely pro-mining place with a long history of mining. Doug Casey: I have actually constantly liked the fact that you put large quantities of your own money into these deals and do it at

the exact same rate as everybody else does.

That’s really uncommon in this business. Another reason I constantly do your offers is that they’re normally structured in a really investor-friendly method. A lot of offers only have half warrants,

helpful for two years at many. This has a detachable five-year complete warrant. Am I fix? Marin Katusa: Correct. It’s listed and trading. It’s how you earn money twice if the offer works out– which is not a warranty, but this is priced right. And here’s the very best part, somebody might be stating, well, why the hell would a company choose Marin than some

big bank? And here’s why Doug. Me and you and the investors out there, we raise more money to put into our own deals than any bank in mining. And the best part is, why

would the company do it? What are the finder fees that we take? Zero. I take no compensation from these companies, but what I want are the very best possible terms for me and all of my co-investors at the very same time at the exact same cost. In addition, I did the site see over six months ago. I spent lots of months with my group doing the research study and dedicated my cash prior to any other expert even went to the site. Doug Casey: I know for a fact that, as have I, you have actually personally eyeballed ratings, numerous mines. Over the last 15 years, we’ve seen a whole lot of them together, all over the world.

I appreciate the reality you have actually got a lots of street smarts. Maybe that’s because you matured in a rough part of town. However you combine that with great deals of technical competence originating from the fact that you’ve always been a mathematics nerd with a strong interest in science. When you put all the pieces together, how do you examine the value of this business? What

do you think this offer should eventually deserve? It impresses me as one of the very best offers you have actually ever assembled. That’s why I’m putting over$1 million in it.

Marin Katusa: The reason I’m doing this is due to the fact that I believe it’s a 4 to five bagger from our funding price in a conservative market at current gold grades.

I don’t require $ 2,500 gold. I don’t require $2,000 gold. Those gold rates are excellent and will include more mojo to the share cost, however we do not need greater gold costs for our share rate to go up. Now to put this into context, my other half and I, as you know, my spouse’s an MBA and a geologist. She’s separately put over $1 million into this herself. I should disclose that because my household and I are the second-largest shareholders of this company,

my other half joined the board to secure the interests of her own investment. And likewise of everybody there who invested at the very same time and cost as us. She is an independent board member, which suggests she does not work for the business nor works with the management

. So I’m really going heavy on this because I believe in the potential. Doug Casey: This deal makes all the sense in the world. And I believe your timing is wonderful from the investor’s point of view due to the fact that today, no one’s interested in gold mining stocks. They have to do with as low-cost as they have actually ever been relative to the price of gold. In addition, there’s every reason to think

that gold is going higher. I presume it’s going to be among the best deals that I have actually ever been associated with. You only need one offer like this a year. You actually just need one deal like this every decade. Editor’s Note: In this uncommon message, legendary gold financier Doug Casey shows you the trick to how he invests and the most financially rewarding “insider “method of increasing your gold mining stock returns. Click on this link to see it now.