   | |||
Tiger Gold Starts to Drill Colombia’s Next Gold MineBob Moriarty Tens of thousands of my regular readers know full well that I am the biggest contrarian in the resource space. While gold, silver, platinum and copper have been hitting new all-time highs again and again lately rational investors are looking for a pullback. Perhaps even a 50% pull back as gold did from 1974 into 1976 right in the midst of one of the greatest gold bull markets ever. But sometimes rational doesn’t necessarily mean right. I track the Daily Sentiment Indicator every day, the DSI. Last Friday, January 16th the DSI for gold was 64 and 62 for silver. The highest for gold was 85 almost a month ago. That is not a top and much to my consternation even with new all-time high prices, the DSI has gone down for all the metals. In my view the DSI is easily the single most valuable sentiment indicator I am aware of. I used it to great effect in late April of 2011 when I called the top in silver to the day. I can assure you that I pissed off a lot of the forever silver freaks that day. But the DSI for silver was 96% and it only hit 94% on January 21st of 1980 at the very top. But there are other great sentiment indicators for the metals. I happen to like silver a lot so I also track the premium/discount number for the PSLV, the Sprott Silver ETF. Last Friday much to my surprise, PSLV was selling at a 4.7% discount, not a premium that you would expect at a top. In fact, the discount has only been higher three times between now and March of 2020 when it hit a discount of 10% right at the very bottom in the price of silver. In April of 2011 the premium at the top in silver was an incredible 26%. In short, we are in an interesting era. The parabolic rise in the price of the metals has always marked major tops in the past. But this time does seem to be different. All the sentiment indicators that should be screaming, “TOP” are saying we are a long way from a major top or perhaps much of a correction. I believe it is because of who controls the price of the metals. The attack on Venezuela and the upcoming massive bombing of Iran scheduled in the next month or so is not an attack on Venezuela or Iran. It’s an attack on China. One way for them to defend themselves is to attack the financial system of the US by dumping treasuries and buying metals. I am a giant fan of buying things cheap and selling things deer. Silver, gold, platinum and copper are no longer cheap. They may well be cheap relative to where they plan on going in the future. I told people for years to buy them when they were cheap so if you are like me and owned silver under $5 and gold under $300 you are in the cat bird’s seat. But there is something absurdly cheap given $90 silver and $4600 gold. Something that doesn’t reflect the rocket ship ride higher in the metals. That would be junior resource stocks. If you take all the juniors with a market cap of under $100 million, you would only have a total of $14 billion. That’s chump change when you think back to Doggy Coin having a value of $90 billion at one point or Fart coin. The value of each as a speculation and that’s all they ever were, a stupid speculation was in their name. I don’t know where the price of silver or gold will stabilize. It depends on the Chinese. But relative to the price of gold today or the price of silver today, the junior resource stocks, the penny dreadfuls, are absurdly cheap. I added an advertiser about a month ago, it’s a new company called Tiger Gold Corporation (TIGR-V). In twenty-five years, the only more perfect timing to enter a market was when Frank Giustra sold Lion’s Gate Films and came back into the gold space in 2001. He dropped out after a highly successful career as a financial guy when Bre-X blew up in 1997. He realized then that the mining industry was going to be toast for years. Tiger’s timing was just as magnificent. The company entered into a purchase option to buy 100% of the Quinchia Gold property located in the Middle Cauca metals belt in central Colombia in December of 2024 with gold hovering just over $2600 an ounce. The option agreement called for Tiger to pay a total of $14 million in Aussie dollars over time up to the first gold pour from the project. There is a 1% NSR to LCL payable after a 2% NSR payable to FirstRand Ltd capped at $14 million in AUD. The Quinchia Gold project consists of three pieces. The Miraflores portion has a 43-101 resource of a total of 510,000 ounces of gold at a gold grade slightly higher than 2.6 g/t Au. Tesorito contains 1.57 million ounces of gold at a grade of 0.47 g/t. That doesn’t sound very rich until you realize that at today’s price of about $4600, one gram of gold is worth $148. The Dos Quebradas Gold deposit has a JORC resource, now historic of 459,000 ounces of gold at 0.71 g/t gold. The PEA finished and reported in 2025 suggests a NPV of $534 million at a 5% discount rate at $2,650 gold and an NPV of $1.188 billion at $3700 gold with a 36.5% IRR. Naturally the NPV would be much higher today but that wasn’t considered in the PEA. Tiger plans on production of about 140,000 ounces per year. Their presentation says the project has a life of mine AISC of $1340 an ounce. The corporate presentation does an excellent job of showing that compared to its peers, Tiger is cheap. All juniors are cheap but Tiger is especially cheap. In early November, Tiger began drilling the first 10,000-meter drill program of two scheduled. The purpose is both resource expansion and exploration drilling. As of the end of January Tiger will have three drills turning. The Phase 1 program will be followed up by another 10,000-meter program later in the year. Tiger is fully cashed up with $19 million in the till. Expect drill results coming on a regular basis for a long time. Management both corporate and technical is as good or better than any of the juniors I know in Colombia. They are approaching this project in the most professional way I have seen in a long time all the way from project acquisition to planned production. Need I point out that they are absurdly cheap. Tiger Gold is an advertiser. I also participated in the last placement which naturally makes me biased. Their company presentation is first class so do look at it before making a buying decision. Do your own due diligence. Tiger Gold Corp ### Bob Moriarty 321gold Ltd |
Copyright ©2001-2026 321gold Ltd. All Rights Reserved