Denis Laviolette: Eyes on Junior Explorers as Market Turns

Sentiment is changing and many smaller prime companies have been ‘gobbled up’ leaving room for smaller explorers to come in. Many projects that had been put aside in the downturn will be coming back online with the upturn.

Look for management teams that can conserve capital and use it efficiently, using small amounts of money and creating value with it and that have accessible deposits that are big enough to be worth it. The company’s story is very important right now too as new investors look to the sector.

Exploration is never certain but there are certain geochemical indicators and historical successes that can help with the evaluation. Some companies are basically in it to earn salaries and have a lifestyle and others are keen on developing real potential. Determining which is which is where an investment manager can prove their worth.

Denis also describes Xtra-Gold Resources in detail, telling it’s ‘story’ as an example of a promising, well managed and resourced investment opportunity. He also describes several other very promising companies, especially in the Yukon.

Talking points from this week’s interview:

• Majors need to replace ounces in the ground
• Some companies are in it for their salaries
• Things are very much heating up in the Yukon
• As promising companies are all brought out, new juniors are emerging

Denis Laviolette, V.P. Investments for Palisade Global Investments:
Denis brings more than 10 years of experience as an exploration geologist and mining professional, having worked on three different continents. During his time in Northern Ontario (Timmins, Kirkland Lake and Red Lake), Norway and Ghana, he took on a diverse array of tasks, including advanced mine operations, start-up mine management, QA/QC, grass roots exploration, and financing and acquisitions. Denis has also worked as a mining analyst with Pinetree Capital Ltd. (“Pinetree”) in Toronto and now serves as a mining analyst and VP of Corporate Development for Brownstone Energy (“Brownstone”). His responsibilities include market/portfolio analysis, appraising and vetting assets on a technical basis, providing valuation estimates, and reviewing corporate financial statements. Denis is currently a director of Xtra-Gold Resources Corp, Northern Sphere Mining Corp. and Tartisan Resources Corp. He received his B.Sc, Earth Science (Geology) from Brock University.

Palisade Global Investments Limited holds shares of certain companies discussed in this interview. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this interview may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report is obtained from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this interview are those of Palisade Global Investments and are subject to change without notice. The information in this interview may become outdated and there is no obligation to update any such information. Do your own due diligence.