Brent Cook – Why Prospect Generators

Brent Cook of Exploration Insights, sits down with Maurice Jackson of Proven and Probable at the 2017 New Orleans Investment Conference to discuss the merits of owning Prospect/Project Generators.  Listeners will gain the fundamental building blocks of what is defined as a Prospect/Project Generator, which in many regards are overlooked by speculators in the natural resource space.  Brent clearly conveys several virtues of Prospect/Project Generators business model for listeners to easily comprehend.  As a bonus Mr. Cook will discuss EMX Royalty Corp., Millrock Resources, and Riverside Resources which were present at the Conference and share some thoughts on their value propositions.  Simple and to the point.

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TRANSCRIPT:

Maurice Jackson:

Welcome to Proven and Probable, where we focus on metals, mining, and more. I’m your host Maurice Jackson. Joining us is a special guest, Brent Cook. Brent, we’re here at the New Orleans Investment Conference for 2017. Thank you for joining today, sir.

Brent Cook: 

Yeah, glad to be here. Nice to see you again.

Maurice Jackson: 

Always a pleasure.

Brent, you and I have an affinity for prospect generators and I’d like for you to talk to us about why you like them so much.

Brent Cook:  

Well, I first started … Got into the idea of Rick Rule. He is Mr. Prospect Generator. It’s because, I guess, it just makes sense. If you’re looking … Your odds of a discovery on an individual prospect are extremely low, no matter how good you are as a geologist and such. It makes so much more sense to come up with the ideas, conceptualize the ideas, and have someone else come in and spend the money testing those ideas.

 

The game … The exploration game is one about numbers. The more projects you can burn through and test, assuming they’re legitimate targets, the better your odds are, and as a shareholder, it’s rally key not to get diluted out at the intellectual level because that’s what you’re buying, is the guy’s brain, not the prospect per se. That’s really why I always have like three or four prospect generators in our portfolio right now.

Maurice Jackson:  

I don’t know if you want to cover those three, but one of the merits I like about them is they tend to be good stewards of capital and they derisk their projects. Would you agree with that?

Brent Cook: 

Oh, for sure. Most of … All the prospect generators I know of they’re solid, honest, geologists for the most part, and they’re very cautious as to what they … It’s their money for the most part as well, so yeah, they’re very goof stewards of money. They don’t spend a lot on frivolous first class tickets and going to the ball games.

Maurice Jackson: 

We have three of them here. We have EMX Royalty, we have Millrock Resources, and Riverside Resources. Can you talk to us about those companies?

Brent Cook: 

Sure. Riverside has done a fantastic job. I mean, look at the shares out on these companies. I think Riverside is 40-something. Eurasian is … They’re up to 70-something, but they bought something. Millrock … I forget what that is, but any rate, they’re doing …

Maurice Jackson:   

They’re roughly around in the mid-30s as well.

Brent Cook:    

Okay, so they’ve got a number of projects going. Eurasian has got, I forget how many royalties, but they’re scattered all over the place. I’ve been in the field with them a number of times and they’re very solid geologists. Dave Cole to his credit has managed to round up some of the best exploration geologists in various jurisdictions and put together some good projects. Likewise, Millrock did … Just picked up a project in Mexico. It’s a pretty interesting project and Centerra is going to be testing it.

Maurice Jackson: 

Are you referring to La Navidad?

Brent Cook: 

Yes. Yes.

Maurice Jackson: 

Just going back for a second. We’re discussing EMX Royalty, which used to be Eurasian Minerals, how about Malmyzh?

Brent Cook: 

That’s the key. Malmyzh, that big porphyry copper in Russia, that’s the key right now to Eurasian. If they can realize a sale on that thing, I don’t know what they can get. I mean, it’s a big deposit but you’re really limited in who might buy it, this thing is sitting in Russia but it certainly could be worth at least the market cap of the company on its own. That would be a big win and I know they’re in the process of showing it to potential purchasers, mining companies and such.

Maurice Jackson: 

They’re also in the process of becoming cash flow neutral. That’s very critical.

Brent Cook: 

That’d be nice when they pull that off. It’s been a long time coming, I will say.

Maurice Jackson:

Hence the name change that they had from Eurasian Minerals … I’m sorry, Eurasian Minerals to EMX Royalty. Now going back to Millrock Resources, so you have La Navidad and you also have Stellar. I like Stellar project as well. That one is …

Brent Cook:  

Yeah, that’s got a shot.

Maurice Jackson: 

Certainly does.

Brent Cook: 

They’ve just thrown some projects up in the Golden Triangle area of BC into another company Sojourn. That’s pretty interesting as well.

Maurice Jackson:

Yes, it is.

Brent Cook: 

I think it’s got a shot of doing well.

Maurice Jackson:

Now how about Riverside Resources?

Brent Cook:

They’ve got a number of projects scattered across Mexico and such. To date, to be honest, I haven’t seen anything that really turns me on, but it’s a process.

Maurice Jackson:   

Yes, it is.

Brent Cook:   

I can’t say this is a really good project but they’re getting work done on projects and turning up new ideas.

Maurice Jackson: 

Certainly. Brent, for someone listening who wants to get more information about your work, give us the website.

Brent Cook: 

It’s ExplorationInsights.com. Myself and Joe Mazumdar write the letter that comes out basically every Sunday, plus the occasional alert for comment and there’s a lot of free information on that site that I think is worth … Valuable for anyone interested in this sector.

Maurice Jackson: 

So you also have a paid portion as well for your subscription or it’s free?

Brent Cook: 

On the homepage, there’s a number of articles that we’ve written that are just free. The letter itself is about what Joe and I are doing with our money in this sector. Nobody pays us to say anything, we take no commissions, anything from the companies, it’s just this is what we’re buying, selling, what we’re thinking. That’s the paid portion of our newsletter and you’ve got to pay up for that.

Maurice Jackson: 

And last but not least, please visit our website, www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at [email protected]. Brent Cook, thank you for joining us today on Proven and Probable.

Speaker 3:

Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com.

Speaker 4:

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