Wellgreen Platinum Ltd.

Brien Lundin: I personally and/or my family own shares of the following companies mentioned in this interview: Lion One Metals Ltd., Seafield Resources Ltd., Rye Patch Gold Corp., Prophecy Platinum Corp. and Precipitate Gold Corp. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview.

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This summer, a few of the companies that I recommended were too good to resist even in a down market. I recommended that readers peck away at these stocks and accumulate them, buying a little bit here and there on weakness. I advised not jumping in headfirst until we saw signs, or even confirmation, that gold was breaking out of its consolidation pattern. Once we saw that happening, I told readers it was time to get more aggressive and start building larger positions in junior mining shares that remained dramatically undervalued.

TGR: Did you see that as a bottom?

BL: Yes. We bottomed in late July or early August. It was the typical seasonal pattern we predicted, just like clockwork.

TGR: What are some of the companies you are being aggressive with?

BL: Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LY1:FSE) has a great project in Fiji progressing toward production in about 12 or 18 months. It has a feasibility study that just needs to be updated and remarkably low capital expenses to get back into production.

TGR: Lion One Metals is around $0.66/share. What are the catalysts between now and production?

BL: The numbers in its updated feasibility study should show the market that this is a viable project. That would be a catalyst.

Remarkably, it should take only $20–$30 million to get the project into production. Raising that kind of capital should be relatively easy, so the company does not have to get the economics buttoned down too tightly before actually going out and building a mine.

Silver Crest Mines Inc. (SVL:TSX.V; SVLC:NYSE.MKT) has been one of our big winners. Not only is it growing production in a rising silver market, it has plans to double production. This is a production play, but also boasts an exploration upside in another project that it is drilling off. It offers a one-stop shop for investors who like producers, but also like the upside of a development and exploration story.

TGR: Silver Crest is in Mexico. How do you like Mexico as a jurisdiction?

BL: Mexico is a great place to invest. There has been a lot of news about the danger of the drug gangs, but the companies in production or working there are doing fine and handling any issues.

Silver Crest is a well-managed company with two very good projects in production. That is critical: invest in a company that will be there for the long term, is making money and is neither draining shareholder equity nor diluting its share structure to get into production. Silver Crest is ahead of the game, and has a very steep growth curve ahead of it.

BL: I also like Seafield Resources Ltd. (SFF:TSX.V). It just put out a new, very impressive resource estimate on its Colombian project. The next step is to prove the project's economic viability. I do not think the market appreciates how advanced it is.

TGR: Seafield is at around $0.13/share. Where do you think it should be?

BL: I hate to give specific price targets, but Seafield, with its large established resource, has a lot of upside ahead of it. As the gold market continues to advance and the general market strengthens, companies with established resources will be the big winners.

I followed Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) long before its legal controversy with Coeur d'Alene Mines Corp (CDM:TSX; CDE:NYSE) in Nevada, and I still like it. The staking controversy over Coeur d'Alene's expired claims gives Rye Patch immediate upside that it previously lacked. I think the two parties will have to reach some accommodation—an accommodation that has a very good chance of being worth more to Rye Patch than its current market cap.

TGR: I was just near that property in Nevada. There is a lot going on in the area.

BL: A lot of jockeying here and there, a lot of people trying to get in on each other's grounds, court injunctions, lawsuits and a lot of staking. The lawsuit also has a lot of implications beyond that immediate area and beyond the specific issue involved. It could throw into the air the whole system of staking claims and mine ownership in the U.S.

TGR: That is something we all will have to watch together. Do you have other names?

BL: I like Almaden Minerals Ltd. (AMM:TSX; AAU:NYSE), which is expanding the discovery on its Tuligtic project in Mexico. The share price has come back a bit, and it is a great value right now. A recent step-out on its northeast extension produced a great hit. There are parallel zones for development, giving Almaden a lot of growth potential. Its first resource estimate could be a very big number.

TGR: When is that due out?

BL: Likely by the end of this year. Meanwhile, the company is busily drilling away and expanding the resource. Once it has enough to impress the market, a resource estimate would be the next step.

TGR: In out last interview, you talked about Prophecy Platinum Corp. (NKL:TSX.V; PNIKD:OTCPK; P94P:FSE). What is happening with that?

BL: Its big mover is the Wellgreen project in the Yukon. It's a polymetallic project: platinum, palladium, gold, nickel and some of the rare and valuable platinum metals. It does not yet have good assays on the higher-end platinum metals, but they are there.

Prophecy acquired this large project thanks to the vision of its CEO John Lee. He saw that there were two significant deposits as yet unconnected by drilling. He realized that extending them to depth and connecting them would result in a world-class resource. He systematically drilled it off and proved the theory.

Its next stage is a prefeasibility study. That would be the next trigger point in showing the market greater value.