Today I’m looking into an Outsider Club presentation about Luke Burgess’ “#1 Gold Stock of the Decade,” a Canadian gold mining company he says is “trading for around $4.”
According to the presentation, the company has made one of the richest gold discoveries of the last 50 years and “could hand you gains of 3,727% or more.”
That’s a bold claim, but I wanted to know what company Burgess is teasing, so I looked into the clues he shared to find out, and in this post, I’ll show you what I discovered.
What Is Luke Burgess’ “#1 Gold Stock of the Decade?”
Luke Burgess began the presentation by stating that there’s a gold discovery project in North America and that the drilling samples suggest it could be worth billions of dollars.
“In one of the coldest, most remote regions of North America…
There’s a historic, rapidly developing gold discovery that VERY few folks outside the mining world know about.
Drilling samples indicate that this could be among the richest, highest-grade gold finds in all of the world, one that could be worth billions of dollars.
It’s completely untapped.
It’s 100% owned by a company that just recently went public.
It’s armed with management that would be a “dream team” for any mining company.
And shares are trading for around $4 right now.”
As you can see from the above Luke Burgess quote, the company he’s teasing owns the mine, recently went public, and it’s trading at around $4.
What else does he say?
Luke Burgess provides numerous detailed clues about the company in the presentation. Such that it was pretty easy to figure out what company he was teasing.
For instance, he reveals that the gold mine is located in Newfoundland, Canada:
“This discovery has been made in arguably one of the most mineral-rich regions in the world — the island of Newfoundland.”
And he reveals that two “of the mining world’s biggest investing legends.” One is Eric Sprott, the billionaire founder of Sprott Inc. And the other is Robert McEwen, founder of Goldcorp, a large gold mining company that was acquired by Newmont Mining Corporation in 2019.
“One of them is Eric Sprott.
He’s the self-made billionaire investor and founder of Sprott Inc., an $11 billion global asset management firm focused on natural resources and precious metals.
He’s arguably the world’s most influential mining entrepreneur.
The other man is Robert McEwen.
He turned a $50 million junior gold miner into an over $20 billion juggernaut.
His company, Goldcorp, became one of the largest gold mining companies in the world before eventually being bought out by Newmont Mining.
These two mining heavy hitters have invested unheard-of sums of money into THIS company.”
Last but not least, Luke Burgess shared a very specific clue about the company’s Newfoundland mine – a quote from the geologist involved in the discovery of Kirkland Lake’s Swan Zone gold mine in Australia (Fosterville, Victoria).
“The same geologist that was involved in the discovery of the ‘Swan Zone’ that led to Kirkland Lake’s multibillion-dollar fortune also reviewed THIS company’s drilling results…
And after seeing them, he swiftly declared that this newly listed company has discovered, ‘a potential second Swan Zone, the only one in the northern hemisphere.’
The gold formation that this company found is ‘almost identical’ to Kirkland Lake’s.
This is absolutely HUGE.
It means that THIS small company could be sitting on the richest undeveloped gold mine on the entire planet.”
“This ‘second swan zone’ is located within the company’s extensive 370,000-acre exploration property.”
What could it be?
The first thing I did was research the above clue about the “second Swan Zone” because it is so specific, and that led me to an article talking about New Found Gold (ticker: NFG).
From there, I researched the other clues I just shared, and New Found Gold matches all of them. So I have no doubt that this is Burgess’ “#1 Gold Stock of the Decade.”
- For starters, New Found Gold is a Canadian gold mining company, and their 1,510 square kilometer Queensway Project is located on the Trans-Canada Highway, 15km west of Gander, Newfoundland.
- Second, both Robert McEwen and Eric Sprott have invested in this company, and my research suggests that, collectively, they own (or at least have owned) a double-digit percentage of the company’s shares.
- And third, the company is currently trading at around $7 (CAD) on the TSX Venture Exchange. However, it appears as though the presentation originally launched in 2020, at which point the company was trading at “around $4,” as Luke Burgess stated.
So, New Found Gold is a match.
I won’t speculate on whether it’s a good investment or not since that’s not my area of expertise. But there are some helpful articles out there about this stock. For instance, there’s a write-up of the company on Seeking Alpha and analyst coverage on other sites.
You could also Luke Burgess’ report about the company, titled “Newfoundland’s NEW Riches: The Junior Gold Stock That Could Make You Huge Gains.”
This report covers what stock Burgess is teasing (which is undoubtedly New Found Gold) and the reasons why he’s bullish. So that could be worth a look, too.
The only catch is that you need to join Junior Mining Trader to access the report. And at roughly $2,000 per year – it’s not exactly cheap.
Still, if you’re interested in learning about smaller gold mining stocks, and companies that mine other commodities, the service could be worthwhile.
So, in the next section, I’ll show you what it’s all about.
What Is Junior Mining Trader?
Junior Mining Trader is a stock advisory service focused on “junior” mining companies, small exploration companies that seek to discover deposits of gold, silver, and other commodities like lithium, nickel, and palladium, for example.
Junior miners are similar to regular mining companies, but they typically have a market cap of $500 million or less and, given their size, typically focus on exploration.
There are significant risks involved with investing in companies like this because the small market cap can mean much higher volatility and despite significant capital outlay, there’s no guarantee the company will find a worthwhile deposit or establish a profitable mine.
However, with high risk can come a high reward. So if you do manage to bet on a winning junior miner, the potential is huge.
And that, in a nutshell, is what Junior Mining Trader is about – helping you find the best potential junior mining stocks.
If you want to know more, I recommend seeing my complete Junior Mining Trader review because, in it, I go into more detail about what the service is about and how it works.
What do you get if you join?
The main feature of the service is the “Instant Buy Alerts.” These alert you to Luke Burgess’s latest Junior Mining Trader stock picks and give you all the details on how to follow his idea.
And as a subscriber, you get four-to-ten trade ideas each month.
On top of that, subscribers receive monthly newsletters from Burgess outlining his insights on the resources market, updates on his recommendations, and any stock ideas.
How much does it cost?
A 12-month subscription to Junior Mining Trader is $1,999. And according to the Outsider Club website, the service has a 90-day refund policy in place.
Recommended: Go here to see my #1 rated stock advisory of 2022
Who Is Luke Burgess?
Luke Burgess is the man behind the Junior Mining Trader service, and his profile on the Outsider Club website suggests that he’s a gold enthusiast.
According to the presentation, he has contributed to Kitco, 321Gold, and two Angel Publishing newsletters – Energy and Capital and Wealth Daily.
Burgess is best known for his gold and junior mining insights, and based on my research of other presentations he’s done; he has traveled extensively.
Before this, I wrote about his “miracle mineral” presentation, which centered on a Canadian junior mining company with a phosphate mine. In that post, I break down Burgess’ prediction and share the stock I think he’s teasing, so you might find that helpful.
Luke Burgess’ “Gold Stock of the Decade” is New Found Gold (NFG).
I say this because the company matches the clues Burgess shared in the Outsider Club presentation down to a T.
If you want to find out why he’s bullish on this company, beyond the presentation, you’ll need to see the “Newfoundland’s NEW Riches” research report he’s put together.
And as mentioned, the only way to access that report is with a Junior Mining Trader subscription, which is almost $2k.
On the one hand, the service could be worth checking out if you want Luke Burgess’ junior miner stock picks, which, according to Burgess, have worked out pretty well for subscribers over the years.
However, on the other hand, there are significant risks involved with junior mining stocks, and there is no guarantee you’ll make money following Luke Burgess’ stock ideas.
The presentation claims his #1 Gold Stock of the Decade “could hand you gains of 3,727% or more,” but nobody knows for sure how it will play out. So I don’t recommend joining this service, or any service, expecting to get rich overnight as this is unlikely.
Either way, that’s my take on what Luke Burgess’ gold stock is.
Thanks for reading.