Bob Moriarty of 321gold presents his investment thesis on Cabral Gold, which is exploring its Cuiú Cuiú gold project in Brazil.
Back in July I wrote a short piece about . Shares were $0.155 apiece then, now up 300% even within a two-month correction. After (CBR:TSX.V; CBGZF:OTCMKTS)last week’s announcement it should be obvious to investors just why.
Overall we have had some giant moves in both gold and silver since the March lows. And the Fed and other central banks have made it clear that all fiat currencies are going on the bonfire. Current policies will destroy all currencies including the dollar. It’s just a question of which one hits the bottom first. So over the medium to long term all resources are going much higher, even as currencies go into hyperinflation worldwide.
That said, stocks go up and stocks go down. It is the nature of all investing. Investors over react in one direction then they over react in the other direction. Silver went from under $12 in March to just short of $30 in five months. Did you really believe that “this time it’s different” and there would be no correction?
It is never different no matter what the gurus and experts say. For those not familiar with the depth of my regard for both, you need to read Nobody Knows Anything. If you can’t afford $10 to help educate yourself, you might as well go to the bank and take all your money out in $1 bills, toss it in the BBQ and cook up some hot dogs because soon that is all it will be good for. At least today, you can get something of real value for it.
As of last Friday the DSI for gold was 23 and 31 for silver. We are moving into the weakest part of the year so I see the correction continuing for a few weeks. I’d be thrilled to see the DSI drop to the level of 10 or lower for each of the metals but I don’t always get what I want. At 10 or below you should throw money at resources because they will be the only safe haven in the coming giant storm.
Cabral Gold is doing exactly what they said they would do. They have an existing 1 million ounce gold resource that I believe is way too conservative. The company is in the midst of a 25,000-meter drill program at their Cuiú Cuiú gold project in Brazil.
The Tapajós region was from 1978 until 1995 the largest placer gold mining district in history with reported production of between 20 and 30 million ounces of gold. Cuiú Cuiú was the richest piece of the pie with production of an estimated 2 million ounces of gold.
Cabral can work twelve months a year in Brazil. They have just started releasing assays from their latest drill program but expect news to continue for many months. They completed a $4.1 million private placement in July and in addition have warrants worth another almost $4 million expiring in November. The average price of the warrants is about $0.20 so they are deep in the money. In short, the company has excellent management, a world-class project and a lot of cash in the bank.
It doesn’t get any better than that.
Cabral is an advertiser and I own shares. As such that makes me biased so do your own due diligence. Their corporate presentation is both current and interesting. Potential investors should read it for more information.
CBR-V $0.63 (Sep 25, 2020)
CBGZF OTCBB 99 million shares
Cabral Gold website
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Cabral Gold. Cabral Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Cabral Gold. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cabral Gold, a company mentioned in this article.
( Companies Mentioned: CBR:TSX.V; CBGZF:OTCBB, )
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