High-potential exploration plays can often deliver tremendous gains, regardless of where the metals may go.

July 9, 2021

Dear Fellow Investor,

It was 11 months ago that I recommended Filo Mining (FIL.V; FLMMF) in Gold Newsletter.

It was a bit of an unusual recommendation for me, as the company was already well-advanced, with a share price at C$1.85 and a market cap of C$163 million.

I typically focus on companies further down the food chain — the junior exploration and development plays that offer the potential to multiply five or more times in price if they hit a big discovery.

Filo, on the other hand, had already made a big discovery, with 4.4 million ounces of gold, 147 million ounces of silver and 3.1 billion pounds of copper in its indicated resource.

But I liked the company for two reasons:

1) Its large copper resource gave us exposure to the copper bull market that I saw just beginning, and...

2) The company was drilling like mad, and there was the potential for a huge, truly world-class discovery at depth and along trend.

Key to all of this was that Filo was well financed. As part of the Lundin group (no relation, unfortunately), it had the wherewithal to keep drilling.

As I put it in my recommendation of Filo Mining in August 2020:

“Granted, large, copper-forward projects aren’t lighting up the world...as we feel our way through a Covid-suppressed economy. But as I noted in our lead article this month, copper is rallying right now, well before I had expected it to.

“Everything is happening more quickly in this gold bull market, and it looks increasingly likely that the copper bull-market phase will begin earlier than past experience might predict.

“In light of this, the sheer scale of the copper resource already defined, and the distinct likelihood that it can grow considerably larger — to even the rarified level that I describe as a ‘strategic asset’ — make Filo Mining an excellent value at current levels.”

The Power Of Discovery

So what’s the point of rehashing all of this now?

To illustrate the power of discovery...how a single drill hole can catapult a company’s share price higher.

Because that’s just what happened when Filo recently announced the results from Hole 41...which hit a jaw-dropping 858 meters running 1.80% copper equivalent.

Just as I’d hoped, they hit a single drill hole that launched them into the big time.

The result? The company’s share price soared to a high of C$11.97. That represented a quick gain of 547% for our readers, in only about 10 months.

(And believe it or not, even after this tremendous run, Filo Mining is still a buy. It’s on track to create one of the greatest mining projects in recent history...one that will leverage the multi-year bull market in copper that is now developing.)

Granted, it’s not often that a stock multiplies six-and-a-half times in value in less than a year. But in the junior mining game, it happens much more often than in many other sectors.

And in our Gold Newsletter portfolio...well, our track record speaks for itself. As I write, the picks in our portfolio are up 183.48% on average since recommendation.

Not bad considering the roller-coaster ride that gold and silver have been on over the last year.

A good bit of our success can be attributed to my extensive network, built over nearly four decades in the industry. If I don’t know someone personally, I know someone who does.

As a result, I often discover the best new plays just as they’re coming to market, giving our readers in Gold Newsletter a chance to get in early.

Beyond that, much of our success is the result of paying attention to some key questions that every investor needs to consider when analyzing an exploration stock:

• The size of the prize — is the company on the trail of a deposit with the size potential to impress the market?

• Can they execute — is the company management team experienced and able to advance the exploration/development program?

• Can they pay the bills — are they well financed and able to fund a sizable exploration program, with money left over?

• Are they doing enough — exploration is a numbers game, and the more holes you drill the better your chances of hitting something significant. Simply put, are they putting enough hole in the ground? (And it’s drill holes that move the market, not sampling programs or geophysical surveys.)

• Where are they exploring — a world-class project in virtually any jurisdiction can move a company’s share price, but a project in Nevada is going to be valued much more highly than a similar one in the Democratic Republic of the Congo.

There are many other factors to consider, including the metals/minerals a company is exploring for, whether management has a track record of discovery and experience promoting companies, and what value-unlocking catalysts might lie in the near future.

The bottom line is that successfully investing in junior mining plays is truly more art than science. The experience you have in the sector and the degree of work you’re willing to put into it are huge predictors of your level of success.

Of course, one great way to get a head start is to subscribe to Gold Newsletter.

I’m currently recommending a number of exploration plays with tremendous upside, and with drill results expected within days. Moreover, many of these companies are recommended by no other newsletter in the industry.

The only way you’ll likely discover them is through a subscription to Gold Newsletter.

I know I’m biased, but if you want an easy recipe for success in the junior mining exploration sector — giving you the potential for rich precious metals profits no matter what the actual metals may do — this is it.

And frankly, it’s amazingly affordable, especially when you consider the scope of the potential profits.

Just click on the link below to get started now.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference

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