Dec 02, 2013
Guest(s): Ken Cunningham
Kitco News sits with Miranda Gold CEO Ken Cunningham about the company’s latest Willow Creek deal in Alaska and the future of gold prices. “We’re excited…we think [Willow Creek] has quite a bit of potential,” Cunningham says. “It is a very high-grade underground gold project...something that I’ve always been told is that ‘grade is king,’” he adds. With regards to the mining industry, Cunningham says he sees a tough market ahead, especially for juniors. He says that the company has reacted to this by cutting costs. “We’re going to hold on to as much of our cash as we can and still do smart deals like Willow Creek…and focus on Colombia because we think near term, Colombia gives us a shot at a discovery,” he adds. What about gold prices? “I think gold can give up another $100, taking us down to about $1,100,” Cunningham says. He goes on to say that this could happen in less than 6 months if the dollar and US stock market remain strong. Tune in now to hear the latest on Miranda Gold and hear why he foresees more downward pressure for the yellow metal. Kitco News, November 28, 2013.
Miranda has signed a 20-year lease with AHI for 100% control of the Willow Creek property. Under the terms of the lease, Miranda has made a US$50,000 payment with a final US$100,000 due after a ninety day due diligence period. Thereafter, the lease is subject to annual payments of US$150,000 or, if production is achieved, various net smelter royalties or revenues.
Seems to be falling to Colombia political policies that will be harmful to many miners (who don't own their land outright). Miranda appears among the affected. Check out thom calandra's updates via twitter or his newsletters (found for free on Stockhouse).
Once the gold sector rebounds, this stock will do phenomenal. It's involved in lots of good projects, and the prospective model seems to work well (currently, for every one except Miranda). Miranda's day will come.