Greetings -The venerable SPX 500 continues to chug slowly northward, making new all time highs and refusing to correct more than a fraction at a time. It is very unusual behaviour, resulting in more than a 30% increase in a scant 3 1/2 months. This is really quite astonishing and is by now chasing all the bearish oriented investors out of their positions ala a water torture routine presumably.

It really makes one suspect there is a hand that controls the markets since it seems so unlikely to never have any corrections of significance in over 100 days of trading. Quite remarkable even taking into consideration that summertime often brings lower volumes in the markets.

However for whatever reason it keeps cruising higher almost every day, or around 75% of the time at least and the VIX which signals volatility or lack thereof keeps dropping into historically low territory.

What is going to be the catalyst? Will it be the beginning of August when the somewhat ubiquitous and onerous U.S. tarriffs kick in?
Or will it be granny finally decides she has had enough and starts to take profits?

Stay tuned and we will will see what tomorrow brings…

We are now following Carlton Precious Metals Inc., formerly known as Nubian Resources Ltd.

Trading symbol is CPI.V. Headquartered in Toronto this company is led by a very successful management team with bragging rights to having discovered one of the largest undeveloped silver deposits in the world, the Navidad deposit located in Patagonia Argentina. Notably, insiders own about 1/3rd of the shares.

MISSION

Carlton is focused on the exploration and evaluation of precious and base metals properties. They are involved in projects in Canada, Australia, Peru and the United States. Their primary focus is on gold, silver, lead, copper and zinc deposits. The company’s project portfolio includes Esquilache Polymetallic, Yandoit, Fosterville East, and the Mathinna and Lefroy projects.

-The company has a silver project in Peru called the Esquilache Polymetallic Project (approximately 1600 hectares of claims) which is a walk-on drill ready situation. Given the current silver price looks like it is about to burst through the roof, we believe that this property is going to be a main focus of management and investors.

Just west 20 miles is the San Gabriel Gold property which is soon to go into production. While this is no guarantee of a silver production scenario at Esquilache, it is worth realizing that Esquilache is located in the same mineralized belt known as the “Cordillera Occidental’.

(From their website)

“The Esquilache Project is located in the Puno region in southeastern Peru. It is located approximately 850 kilometres (km) southeast of the capital city, Lima, and 40 km southwest of the city of Puno. The Project consists of two mining concessions, Esquilache 1 and Esquilache Volveremos 12, covering an area of 1,600 hectares (ha).

The principal modern operators were the Williams Syndicate who operated the mine from 1926 to 1949 and Hochschild Mining who operated from 1950 to 1962, processing 200–400 tonnes per day (t/d) of ore from underground mining of veins in the Cerro Creston zone. Unsubstantiated partial records indicate production on the order of 10 million ounces of silver with lead and zinc.”

FINANCING

The company recently raised a non-brokered placement of approximately $1.6 million (cad). They are now ready to time their exploration season with worldwide interest in the hottest silver market which we have seen for a number of years. Silver price has currently broken out to more than $38/oz (usd). Silver price continues to make new highs following golds meteoric rise of the past year or so.

-Many experts including noted billionaire investor Eric Sprott claim that the silver to gold ratio is still very low having just risen from historically low levels over the past year or so. Given the backdrop and the interest in silver exploration companies plus the renewed interest in junior exploration companies after a long drought of over a decade, Carlton precious metals finds itself in a very advantageous situation.

Headed up by a highly experienced management team which as we noted earlier has already found one of the largest undeveloped silver deposits in the world namely Navidad, this bodes well because in mining exploration experienced management is likely the number one crucial factor for success. We will be following closely please stay tuned…