Resource World Magazine

76 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 2 0 * Resource World does not sell your information to third parties #203 – 1205 56th Street, Delta, BC Canada V4L 2A6 online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to n Resource World (Print and Digital Edition) 1 Year/6 issues (CAD $24.95) n Resource World (Digital Edition) 1 Year/6 issues (CAD $12.95) U.S. residents please pay in U.S. dollars n Resource World International (outside Canada and USA) (Print and Digital Edition) 1 Year/6 issues (CAD $99.95) NAME ADDRESS TEL EMAIL assets are Tier-one, world-class deposits. In my experience big deposits always yield surprises and they're always good, mean- ing that there is exploration upside and also commodity price leverage built into these in a very large fashion. The second thing I like about them is their operating margins are superb. There's no sustaining capital investment and there is no operating cost. For example, the operating margins Wheaton Precious and Franklin-Nevada can approach 70% as opposed to the operating margins enjoyed by most operating companies which are more like 10% or 12%. The thing I like about them the most is that the market perceives that most of the good opportunities, particularly in stream- ing, are past. I believe as consequence of the demand for project debt and equity in both mine construction and in merger and acquisition activities that the demand for streams as part of the financing stack, to do either mergers or new project construc- tion, means that the best growth period for this industry is ahead of it rather than behind it. I think that's the mistake inves- tors make when they look at royalty and streaming. They think that the value was created in the past. I think the value will be created in the future. RW: Should investors participate in private placements and if so, what should they be looking for? RR: For investors who qualify and are willing to do the work to differentiate between the good the bad and the ugly, private placements that include war- rants or half-warrants are the best form of speculative participation in the market. Contributing capital to a small company must always be done to fund the answer- ing of an unanswered question. It might be an exploration question, it might be some other kind of question, it could be the preparation and development of a preliminary economic assessment or pre- feasibility study or bankable feasibility study, but whatever, the contribution of capital needs to be done in anticipation of funding the potentially catalytic event. The warrant has the ability to partici- pate again retroactively at a fixed price in any success that may be the consequence of your funding. It is important that private placement investors first know what their capital is being provided for and it's also important that investors obtain some form of warrant coverage so that they can benefit from the added value that their cap- ital has created for all shareholders. n Note: Copies of the Barron's 40-year Gold Chart or the 100-Year Commodity Price Chart can be received by sending an email to rankings@ sprottglobal.com and write charts in the text. If Resource World readers would like to receive a ranking of their natural resource portfolio send in the text the symbols and names of companies in your portfolio to rankings@sprottglobal.com. RICK RULE continued from page 14 breccia beginning at 422.5 metres" which is "unlike any mineralization previously observed at Tuvatu but closely resembles that seen in some lodes at the Vatukoula Gold Mine 40 km to the northeast. The 4-metre breccia zone occurs in monzonite and is cemented by vuggy quartz-adularia- pyrite veining, and specks of visible gold up to 2 mm across are observed in vugs at approximately 423 metres." Lion One "believes this intercept is highly significant and suggests the mineralizing system is evolving with depth at Tuvatu, a possible indication of further high-grade mineraliza- tion below." Lion One Metals is a company to watch, with experienced manage- ment and importantly, still plenty of exploration upside on its Navilawa cal- dera. Lion One may be one of only a handful of junior exploration companies to hold an entire alkaline gold system, no less with a mining permit, mitigating years of permitting risk. n AUSTRALIAN continued from page 29

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