Pinnacle Activity Ticker
Vol. 228 - Holding Steady During A Debt Debacle: Invenio Resources
The markets have been rattled by the US debt ceiling debacle which has now hit mainstream media outlets around the world. Panic has sunken in. The underlying threats and motivation by the Republicans and Democrats to prolong a very serious fiscal threat is finally coming to an end. What ramifications the delay and bickering will bring the US (potential downgrade) is yet to be known. Everyone has an opinion, but at Pinnacle, with history as our guide, we know the most simple and likely solution will ultimately be reached. The debt ceiling will be raised.
In a recent Bloomberg article one Fed Bank President summed up the situation nicely. It was reported that Federal Reserve Bank of St. Louis President, James Bullard, said a resolution of the debt-ceiling impasse may remove a key unknown that has restrained economic growth in the U.S. Bullard stated that, "Once this last uncertainty is resolved, the path to faster growth may be open."
Bullard says it may. We say it WILL. How we interpret this is that once the debt ceiling is raised and this issue is behind us, the market and global investors will focus on other things. Since the crash of 2008, investors' attention span has shrunken and may be classified as having ADD(Attention Deficit Disorder). The debt ceiling issue will soon be removed from investors' minds. Obama will be in the fight of his presidency life to create jobs and spur economic growth. The 2012 election will help the markets.
Remember that the US has been here before. It has raised its debt ceiling numerous times and business as usual resumes quite quickly. Sure, spending in the US has never been this careless, but we are many months, if not a year or two away, from the US not having enough global clout to destroy any attempts at a run on the dollar.
We have stated many times that the key to the US paying its debt is for it to keep interest rates low and remain the producer of the world's only reserve currency. Being able to print the world's reserve currency is a magical thing for the US and gives the country incredible power and resilience. Many things have to happen for the US to lose its long-held world currency status and we are not there yet. Despite the weak employment data released Friday morning, our team at Pinnacle strongly believes that the mood of the markets will begin to change and the fall will be a bullish period for stocks and commodities.
Special Note: Many Blue Chip gold companies sold off to end the week after missing earnings. Barrick and Newmont are perfect examples. Despite record high gold prices, we believe this was a result of increased inflation and an increased cost of doing business in the mining sector. This will be temporary as the price of gold will drastically outpace inflation in the future.
In mid June, amidst a vicious 6 week sell off in the Canadian markets, we introduced Invenio Resources (IVO:TSXV) to our members at $0.13 per share. Invenio has been resilient throughout the recent sell-off and closed Friday trading at $0.18 per share - a 38% increase from our introduction price roughly 6 weeks ago. With a drill program around the corner, we wanted to notify all of our members on the company's plans and progress to date.
On June 17th, in Vol. 224, titled, 'Not Your Average Alaskan Gold Play: Invenio Resources' we stated:
Invenio has been hit hard by this recent market correction. Its fallback in share price is the reason we are introducing it to you now.
Invenio is currently trading at $0.13 per share and reached a 52 week high of $0.35 in February of this year. Its 52 week low is $0.11 per share.
Invenio has a puny market cap of roughly $2.8 million. Not one of our Featured Companies has a market cap this small.
To read our introductory report on Invenio Resources please CLICK HERE
Another key reason for our previous introduction, and update at this time, is that the only public financing Invenio has completed was at $0.18 cents (its current share price).
On July 26th Invenio Resources announced that it plans to conduct a diamond drill program on its Ganes Creek gold property. Invenio's exploration program at Ganes Creek commenced in June and is progressing well towards the September drilling start date.
Work to date includes an Induced Polarization ("IP") geophysical survey, conducted by Aurora Geosciences, which is targeting favourable geology over four kilometres and is intended to tie together previous IP grids that targeted these specific zones. It will also extend these grids to cover areas that are potentially underlain by the favourable geology.
As data from the current IP program is received, it will be integrated into extensive geological, geochemical and geophysical database that includes a total of approximately 32 kilometres of trenching, geological mapping and 4,400 continuous chip samples collected in the trenches, 424 select rock samples and approximately 83 line kilometres of grid geophysics. The new IP data, combined with the historical database, will be used to define drill targets for the fall diamond drill program.
Ganes Creek is located in west-central Alaska, approximately 440 km northwest of Anchorage and 40 km west of the town of McGrath. The Project is situated in the Tintina Gold Belt which is host to the 42 million ounce Donlin Creek gold deposit, approximately 90 km to the south west and the Nixon Fork copper-gold skarn deposit, approximately 62 km to the northeast.
Although Invenio is still an early stage exploration company, a great deal of work has been done on its flagship project. The Ganes Creek Project is in the historic Ophir Mining District and lies along the prospective Yankee Creek/Ganes Creek (Y/G) fault zone, a 19 km geological feature which hosts numerous gold anomalies and prospects as well as several active placer gold operations.
Historical reports suggest that the Ganes Creek placer deposits have produced almost 250,000 ounces of gold.
The last program completed at Ganes Creek was between 2007 and 2008. The last field season was summer 2008 after which the property was returned to the owner after the financial collapse in the fall of 2008.
In the last program there was a considerable amount of work completed and much of the data obtained was never made public. Invenio is the beneficiary of this unpublished work and it will be used to direct the Company's first work program on the Project (a fortunate advantage for Invenio over its competitors). Invenio hired Aurora Geosciences Ltd to conduct a comprehensive geophysical interpretation of historical data at the Ganes Creek gold project.
As part of the last exploration program completed at Ganes Creek, approximately 84 kilometres of ground geophysical surveys (MAG and 2D & 3D IP) were completed over areas of known low-grade and high-grade gold mineralization, but the results were never reviewed or interpreted. Aurora has been retained to work with Invenio to complete the modeling of this data. Our team is following Invenio closely as Aurora goes through the data.
The 2007 and 2008 programs consisted of 32 km of trenching, geological mapping, and continuous chip sampling of the trenches, detailed mapping and structural analysis of the geologically complex areas and 84 km of ground geophysics. From the last program, and also from results obtained from previous operators, Invenio has, at its disposal, results from 3,850 soil samples, 1,170 rock samples, 4,400 continuous chip samples and 2,380 drill core samples. Having all this data is what separates Invenio from most early-stage explorers - and keep in mind how small of a market cap Invenio has. These facts combined, are what led us to selecting Invenio Resources as a Featured Company and taking them on as a client. The risk/reward made sense.
Adding To Its Portfolio
There's more to Invenio than just Ganes Creek. Since introducing the company to our subscribers, it recently announced the addition of another Alaskan Gold Property. On July 13th Invenio announced it has secured an option on a second gold property in Alaska. The agreement is with Interior Alaska Mining, LLC ("IAM") and provides the Company with the option to purchase a 100% undivided interest in the Candle Hills Gold Property, located in southwest Alaska. The option on Candle Hills marks Invenio's second gold property deal in the past six months in the prolific Tintina Gold Belt, which is host to several multi-million ounce gold deposits.
Candle consists of 61 claims totaling 9,760 acres and is located 15 kilometres southwest of the village of McGrath and 55 kilometres by road to Invenio's Ganes Creek Property. The proximity of Candle to Ganes Creek, where Invenio has already begun exploration, will allow the Company to initiate a first phase of exploration at Candle Hills efficiently and quickly.
Key fact about the project: The head waters of Candle Creek begin at the northern boundary of the Property and flows northeast through a broad valley that drains the Candle Hills igneous complex. Placer gold deposits along the upper three kilometres of Candle Creek were mined by hand, mechanized open-cut and bucket-line dredge operations through the 1930's, but stopped at the steep slopes just below the Property.
The position of Invenio Resources (IVO:TSXV) within this gold bull market, its low market cap of roughly $5 million, rich gold mining history near its project and location of its asset inside a prolific gold belt has warranted our coverage from a risk/reward standpoint.
We will continue to update you on this company's story as it develops.
All the best with your investments,
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Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid $60,000 Canadian dollars plus hst for online advertisement coverage on Invenio Resources Corp. for a pre-paid six month online marketing agreement. The company (Invenio Resources Corp.) has paid for this service. The service includes but is not limited to the creation and distribution of reports authored by PinnacleDigest.com about Invenio Resources Corp. as well as display advertisements about the company on our website. We, Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, have the right to exercise 82,500 warrants in Invenio Resources at a price of $0.25 which were purchased in a previous private placement at $0.18 per unit. The warrants expire on December 3, 2012. We (Maximus Strategic Consulting Inc., its employees and consultants), have purchased shares in Invenio Resources following the release of our first report on the company distributed to our subscribers (our first report on Invenio Resources was released on June 17, 2011). Every share we (Maximus Strategic Consulting Inc., its employees and consultants) own of Invenio Resources, we intend to sell for our own profit and without notice to our subscribers. At the time this report was written and released (August 2, 2011), we (Maximus Strategic Consulting Inc, its employees and consultants) owned shares of Invenio Resources. We may purchase more shares in the company without notice to our subscribers. Remember, we will not notify our subscribers when we decide to sell our shares of Invenio Resources.
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To get an up to date account on any changes to our disclosure in Invenio Resources (which will change over time) view our full disclosure at the url listed here: http://www.pinnacledigest.com/privacy-policy-terms-use-our-disclosure
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