Chaos in Panama Over Copper Mine

Massive riots are taking place in Panama over the proposed concession for the Cobre Copper Mine owned by First Quantum Minerals (TSX: FM), which got approved by the government without any public input. The President of Panama is afraid of being overthrown and announced today that he will cancel all new mining projects in the country and will allow the public to vote on a referendum to approve the concession for the Cobre Copper Mine. This caused FM to crash by 28.47% today. Franco Nevada (FNV) which invested $1.36 billion into the Cobre Copper Mine for a gold/silver stream, saw its shares decline by 8.15% today.

Orla Mining (ORLA) which owns the Cerro Quema copper/gold project in Panama declined by 12.20% today. Luckily for ORLA, they acquired the South Railroad gold project in Nevada last year for CAD$242 million, which contains a measured/indicated resource of 1.8 million oz of gold. In Nevada, residents support the development of new gold mines because they help strengthen local economies. Nevada gold mines are in the desert and don't destroy rainforests.

If ORLA didn't acquire South Railroad, they would be completely screwed!

Today's incident in Panama proves why jurisdiction matters and Nevada is #1 in the world!

Augusta Gold (TSX: G) has 1.92 million oz of gold resources in Nevada. Based on what ORLA paid for South Railroad, shares of Augusta Gold (TSX: G) should currently be trading at a minimum of $3 per share. As gold begins hitting new all-time highs the fair value of G will quickly rise into the $5-$10 range.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.