Proven and Probable’s Maurice Jackson Talks of Being a Steward of Precious Metals & Gives a Few Junior Mining Resource Company Stock Picks
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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the founder of Proven and Probable, Mr. Maurice Jackson. Maurice, how are you this afternoon, sir?
Maurice Jackson: Doing well, sir. How are you doing today?
Gerardo Del Real: I am doing excellent. Thanks so much for asking. I had the pleasure of meeting you at a site visit that we were at together here, recently. We had the opportunity to talk a bit and I got familiar with you and I thought it'd be great to have you on and have listeners and readers get more familiar with you. You definitely have a very interesting and unique background and I thought we'd talk about that first before we get onto your take on the markets and what you like out there. Can you tell us a bit about your background, Maurice?
Maurice Jackson: Well, certainly. My background began in investing in real estate. I found that real estate was an endeavor that I thought I would be able to do forever. And then we had the crash. My ideology regarding real estate basically was that it's a local market, so anything that happened from a global perspective shouldn't affect me and I was wrong. Then I started to learn monetary history and I learned the distinction between currency and money. That set me on this path that we have now today with my program, which is called Proven and Probable. It motivated me to get the message out to the entire world. So what our company mission basically is that we enrich our subscribers through education in precious metals and junior mining companies that will enrich the world.
Gerardo Del Real: Excellent. Now, let me ask you this, you have a military background, is that correct? Can we talk about that a bit?
Maurice Jackson: Yes. Now, I have a military background. But again, with my military background that has no bearing on or relation to anything with Proven and Probable. I do want to make sure that we're very clear on that.
Gerardo Del Real: Absolutely. And the reason I asked, Maurice, is with the military there's a structure, right? It's a very rigid structure that you have to follow. How did you go from that point in your life to the junior resource space, which is one of the highest risk, but also the highest reward sectors in the world?
Maurice Jackson: Well, I'm the contrarian. It was just natural for me to gravitate away from what everyone else does and see things from a different perspective. And then I'm always able to identify value propositions because I think it's just naturally ingrained in me to be an investor/speculator.
Gerardo Del Real: I love that and I think we really were able to talk about the contrarian nature of your philosophy and mine as well. Now you almost have to be that in the junior resource space. So with that being said, you not only dabbled in the mining stocks, the junior mining stocks, but you also dabble in the metals. Can we talk about that a bit?
Maurice Jackson: Yes, and with the caveat for your audience, we are licensed professionals to sell precious metals through Miles Franklin Precious Metals Investments. So am I biased? Yes, but I'm not biased because of that. I'm biased because I understand that Bloomberg just issued a press release yesterday, global debt is $237 trillion. Let's just put that into some type of perspective here for your audience.
If you had a million seconds, that's 12 days. If you had a billion seconds, that's 32 years. And if you had a trillion seconds, that's 32,000 years. Now, just contemplate on that for a second here. In reference to the debt here that we're discussing just right now, how does that get offset? How do you protect yourself? What is the insurance mechanism that you have? And for me, what I've learned through monetary history and those that I interview as well, that are serially successful, it is being a steward of precious metals.
Now, with a caveat to this as well, I don't believe in fear tactics and saying that the world is going to collapse tomorrow. I just believe in having precious metals as insurance. I want to make sure I'm very clear on that because as I learned through this process prior to being in the public domain, I learned there was two schools of thoughts here. One is that everything is going to crash tomorrow and the federal reserve is manipulating every market – and there may be truth to that – but the fact of the matter is you still just want to own a certain portion, not everything.
I want to make sure I'm very clear on that. I think that's one of the key distinctions between myself and someone else that probably sells precious metals. I do not believe in fear tactics and actually I'm not even a strong gold advocate. We can probably get into that later or if you want to discuss it now, what I actually like to see in precious metals.
Gerardo Del Real: Let's talk about that. Obviously, if the metals are the hedge, I imagine that the junior stocks are the leverage. Would that be accurate, Maurice?
Maurice Jackson: That would be accurate in my assessment as well, yes. So, what I believe is this. When I look at the precious metals, they're all undervalued. But relative to one another there's anomalies and distortions. Platinum, right now, is where I'm putting my emphasis, and silver. It's very simple, you look at the gold/silver ratio, it's above 80. Anytime it's around 80, you should be purchasing silver. So, I've offloaded my gold and all I do is I go between the ratios. I offload my gold and I get platinum and I get silver.
Speaking of platinum, platinum right now is below palladium and it is below gold. That is not a common occurrence. Whenever it's below the price of palladium or the price of gold, I'm purchasing platinum. We were strong advocates of rhodium as well, but rhodium has now doubled since I first mentioned to the market that that's what we were purchasing. So we're going to hold off at the moment for that. I'm looking to just basically move between the metals. I don't believe that they're going to go to some certain price. I don't care, I'm looking in relation to one another, where they are. That's all I care about.
Gerardo Del Real: Interesting. Interesting. Let's talk about the junior resource stocks. The site visit we were on, we were both visiting a company called Northern Empire (TSX-V: NM). Impressive management team, very good assets, very good exploration potential and a phenomenal land package in one of the best jurisdictions in the world, right? Nevada. What do you like in the junior resource space and if this were using a baseball analogy, if this is baseball, what inning do you think we're in when it comes to the junior resource stocks as far as this bull market that I feel is here or definitely developing and lining up?
Maurice Jackson: Oh, good question. I've never thought of it in that regards. I take it from more of a micro perspective.
Gerardo Del Real: Okay.
Maurice Jackson: And not to avoid your question. I look at certain companies that irrespective of what the price of gold is right now, can they produce results in my portfolio? One of them that you just referenced, Northern Empire, which happens to be a sponsor of ours, full disclosure, I believe is one of them. Another, just to sidetrack here slightly, you look at Novo Resources (TSX-V: NVO). Gold didn't go up 1,400%, but they did. That's what you and I both, collectively, that's what we're trying to accomplish for our subscribers is identify value propositions. Where we are as far as inning-wise, maybe six or seven.
Gerardo Del Real: Very, very interesting. So, with that being said, what do you like in the space? If you think we're that far along into a bull market in the resource space, what do you currently like? Are there maybe three or four companies that stand out to you?
Maurice Jackson: Well, I like energy. So, I like oil plays in the United States. So think of craft oil plays, not your large, big plays like BP. If you want me to mention names, I certainly will and again, with the caveat, yes these are sponsors of Proven and Probable, but there's a reason why – because we believe in the companies. It's not that they're paying us to say this, we truly believe it and we're shareholders as well.
Gerardo Del Real: Excellent. I would love a couple of names.
Maurice Jackson: So, Jericho Oil (TSX-V: JCO). That is one. That's a company that has exemplified optionality and could be a very good arbitrage opportunity. They're a play in Oklahoma and just a phenomenal team. All these teams, just like Northern Empire that we can go right back to, they have the intangibles. It's one thing to have that latent material on the ground, but it's the intangibles, you've got to have the correct technical team. We had an opportunity to meet them with Northern Empire. But, it's the intangibles, it's that board of directors, are you serially successful? Is your skillset germane to the task?
So, again, I like oil. If we go north to Canada, speaking still with energy, uranium. And one in particular is Fission Uranium (TSX: FCU). Again, which is another sponsor, but if you look at uranium, the Athabasca Basin, that's where you want to be. I mean, uranium is just a price that's depressed, but it's not an "if" proposition. It's like Rick Rule says, "It's a when proposition." And I believe that if you have a when proposition, you'll have a win proposition. And again, amazing technical team here with these guys.
Gerardo Del Real: Absolutely. I have to agree. And full disclosure, they're a sponsor on Resource Stock Digest, as well. And much like you, they're a sponsor for a reason. Phenomenal asset, phenomenal team.
Maurice Jackson: Now, let's stick with energy here for a second. You know, when you think of contrarians like ourselves, we tend to look at maybe a company like Tesla and we start to say, "Well, they're into lithium. Why don't I get some lithium companies because maybe Tesla might purchase some lithium companies?” And I say with regards to lithium, there's some good plays out there. But really, there's four companies that if they get their act together in the South America, they could produce or satisfy the next hundred years of supply and demand in lithium.
So, now the question is when you look at lithium battery, what's it comprised of? And the reality is it's not really comprised of that much lithium. It's nickel and graphite. And so I like graphite. And when you look at graphite, I like Southern Hemisphere, because Southern Hemisphere has what's called saprolite with graphite, which is basically soft earth. So, you're looking at low capital costs and one company in particular, again another sponsor, which is DNI Metals (CSE: DNI). And they're in Madagascar. Again, this is a great opportunity here if you haven't got a position in graphite, I would seriously take a look at DNI Metals.
Gerardo Del Real: Excellent. Excellent. Back to gold. And I know you mentioned that on the physical side you were actually offloading some of your gold in exchange for silver and platinum to increase that position. But when it comes to the gold stocks, can you give us one or two companies?
Maurice Jackson: Well, I think Northern Empire (TSX-V: NM). Northern Empire right now. Let's be honest with your listeners right here. This is a great opportunity. This is a company that was once not actually Northern Empire, but its predecessor. It was capital constrained. And you're in a great mining jurisdiction. You're in the United States and in Nevada. You have a team that's been there for 10 years in Nevada. So, they're germane to the task. They're familiar with the jurisdictions. The technical team is just amazing. They also worked together for 10 years. And they also have members still from the previous company that was there.
So, you have the Sterling Gold Project there and then the Crown series of deposits. Those are just exciting to me. And I'm really excited about the value proposition there. And they're not on anyone's radar because they just really came on the scene here within the past year.
Gerardo Del Real: Yeah, and the land package is absolutely phenomenal. You mentioned that they were capital constrained in their prior incarnation, the companies that owned the assets they currently have. I believe there was a decade-long period where there was minimal, minimal exploration work done on those properties. I see the potential there for new discoveries and extensions of the existing deposits. Would you agree with that, Maurice?
Maurice Jackson: Oh, absolutely. Let's not forget to mention this is a heap leach open pit and it also has a processing plant there. I mean, the infrastructure's there. It's not that far. Right there on the highway, as well. Everything is there, really.
Gerardo Del Real: Excellent. Maurice, is there anything else that you'd like to add? And before you leave please let us know how people can find you.
Maurice Jackson: Well, thank you for asking that question. I think one thing that your subscribers and both of our subscriber base can really appreciate here is that we are not promoters. We are in marketing, but we do not promote. And there's a fine distinction between the two. Because we, and I've learned this from you, we've had an opportunity to speak here a lot offline and last week, plus I've also followed your work, is that you're sincere about teaching, educating, and letting your subscriber base make the decision. But you're not out there promoting. And I really do appreciate that as a follower of you, as well.
Gerardo Del Real: I appreciate that. Thank you very much, Maurice. Those are kind words.
Gerardo Del Real: Excellent. Maurice, thank you very much for your time. I look forward to having you back on. And thank you again for all your insights.
Maurice Jackson: Likewise.
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