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26 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 6 A s we've seen, time-and-time again, in precious metals market cycles, investor appetite for higher-risk exploration companies lags behind the ini- tial performance of companies that have positive cash flow or the promise of it. The trick is to identify those junior companies that have the potential to be involved in the next big discovery. I personally like the "bet on the jockey" philosophy. Junior exploration companies with high quality, proven exploration teams know where and what to look for. I believe Rainy Mountain Royalty Corp. [RMO-TSXV] has that kind of team. Robert Middleton, P.Eng is the VP of Exploration for Rainy Mountain, and has a very impressive resume of success. This includes: leading the team that dis- covered the Bell Creek Mine in Timmins for Rosario Resources in 1979; planning the discovery hole at the Goliath Mine in Hemlo Ontario in 1982; discovering the Cross Lake zinc deposit near Timmins in 1997; and more recently, conducting exploration in the Nipigon Plate that led to the discovery of the Seagull PGE deposits. Since his involvement with Rainy Mountain Royalty, Middleton has acquired numerous properties that have proven their value. For example, in the prolific Shebandowan Greenstone Belt in northwestern Ontario, Rainy Mountain acquired a series of properties in 2003 that were contiguous with Wesdome Gold Mines' 3 million-ounce Moss Lake deposit. In April of 2016, Wesdome consolidated its land position in the belt and acquired these properties flanking its Moss Lake deposit, stating that it believed there is potential to double its resource. In addi- tion, part of this land acquisition included the Hamlin-Deaty properties where a large copper-gold-silver IOCG system was out- lined by Rainy Mountain in 2005-2007 and then drilled by Xstrata (now Glencore) from 2008 to 2012. Rainy Mountain still holds key prop- erty positions in the Shebandowan Belt. Its wholly-owned Powel Project lies next to the Hamlin property and hosts shear zones that represent extensions of the past producing Ardeen gold mine as well as the Moss Lake gold deposit. The junior explorer also holds a number of other projects that are being advanced by joint venture partners, including the Marshall Lake Cu-Ag-Au property as well as the Seagull and Norton Lake Cu-Ni-PGE properties – all are situated in northwest- ern Ontario. Copper Lake Resources Ltd. [CPL- TSXV; WTCZF-OTC; W0I-FSE] is earning a 75% interest in the Marshall Lake Project and has drilled over 8,000 metres on the project in an effort to determine the extent of mineralization. The same company holds a 69.79% interest on the Norton Lake property located on the south margin of the so-called Ring of Fire, 450 km north of Thunder Bay. The property already has a NI 43-101 measured and indicated resource and Copper Lake is working to expand it by drilling promising new targets. I could go on, but suffice it to say that Middleton and the team at Rainy Mountain Royalty have a knack of acquiring proper- ties that either host discoveries or become integral to expanding them. Recently, Middleton was excited to tell me about the newly acquired Brunswick property. It covers a 9.6-km long portion of the Ridout Shear Zone in Ontario and associated Temiskaming sediments and volcanics. He believes that there is poten- tial for another Borden-like gold discovery. Goldcorp purchased the 2 million oz, high- grade, Borden gold deposit from Probe Mines in 2015 for $526 million. With just 14.4 million shares outstand- ing and a market capitalization of under $1 million, I believe Rainy Mountain Royalty is a good bet at that price and it certainly has the right "jockey" at the reins. n Shayne Nyquvest is an Investment Advisor with Mackie Research Capital Corporation (MRCC). This article was prepared, in part, under contract by Thomas Schuster. The opinions, estimates and projections herein are those of the author and may not reflect that of MRCC. The information and opinions con- tained herein have been compiled and derived from sources believed to be reliable, but no rep- resentation or warranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regard- ing your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securi- ties. The information contained in this article is not intended to constitute a research report. Shayne Nyquvest is a beneficial owner of the company highlighted in this article. Broker's Picks by Shayne Nyquvest Rainy Mountain Royalty positioned for success www.resourceworld.com