Resource World Magazine

28 www.resourceworld.com J U N E / J U L Y 2 0 1 9 O. 604.687.1828 | M. 778.686.0135 | TF. 1.800.901.0058 JUST ANNOUNCED TSX.V: BSK | OTC: BKUCF • Robust Preliminary Economic Assessment • Low Cost Processing • Updated Uranium/Vanadium Mineral Resource Estimate • District Scale Uranium/Vanadium Potential along 145 km Trend and administrative expense and less than 35% went in the ground. If you look at an industry that has prob- ably a thousand sub-$50 million market caps and think about 60% of the capital being raised in the sector going to costs other than exploration, you understand the tremendous economic waste that is in the junior resource market. The truth is that there's probably value inherit in 20% or 25% of the listings. That's it. RW: Do you study mineral commodi- ties that are rising in price and then target related stocks? RR: We do. However, we try to be more forward thinking than that. We try to look at minerals that have to rise in price; that is, materials for which there is ongo- ing demand in every foreseeable economic circumstance where the price of the prod- uct worldwide is substantially below the cost of production, i.e. where the price of material has to go up, or in the alterna- tive where our standard of living would decrease as a consequence of that price not going up. In other words, rather than hunt for the commodity that's hot, where the stocks are likely overpriced, we look for the commodities that will have to be hot in two or three years where we can buy large positions at bargain basement prices. RW: A recent Ernst & Young Canadian Mining Eye Index showed a turnaround in the mining sector for Q1 2019 follow- ing declines in 2018. Is this a positive signal for mining stock investors to load up now, rather than wait and possibly be a Johnny-come-lately? RR: Well, I think the fact that the stocks were strong in early 2019 was really a function of an overly dramatic sell-off. In other words, I think it was, to use an over- used phrase, "a dead cat bounce." I wouldn't use that statistic itself as an excuse to come back in the market. I would say to you that the mining industry is always a decent place to speculate when it is depressed and it is in fact, depressed. The difficulty is that I think that many of the TSXV speculators put time constraints on themselves in terms on how long they`re willing to own a stock that are unrealistic. My own experience is that mak - ing money in the exploration business requires answering unanswered ques- tions more than it does the market cycle. In my experience too, a good answer to an unanswered question often takes two field seasons which means I never go into an exploration stock without at least an 18-month time frame involved. Many speculators seem to have trauma holding INVESTMENT

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