Greetings Contrarian,

This is The Next Big Rush, your daily drop of mining/energy investing news. Where we come together and widen our eyes at the stuff that's happening in the world.

Here are the exciting points:

🥵 China Finds "Massive" Gold Deposit

🥵JPM Gets Rocks Instead of Nickel

🥵 Galileo Extends Mineralization

🥵 First Majestic Loses 1/5 of Revenue-generating Mine

🇨🇳 China Finds "Massive" Gold Deposit

This is barely part news, part advice on never taking propaganda at face value (because duh).

This is what’s come out of Beijing:

China has discovered a "super-large" gold deposit in Shandong province, according to reports in the Global Times. Some 50 tonnes of high-quality gold ore was discovered at the Xilaokou gold mine in the province, a deposit valued at $3bn at current market prices. China has been looking to increase its gold reserves, and this deposit will go some way towards achieving that, said the report. The deposit is estimated to be capable of producing 2,000 tonnes of gold ore for two decades.

You might think this is cause for concern because the way some news channels framed it made it sound they had all the gold in the world and would not come to the market for more.

Nice try, Central Bankers.

But if you know anything about anything to do with gold, you've just raised about 5 red flags. Here are a few:

Propaganda Alert 1: Superlatives are used “super large, huuuge, high-quality, rich (like, what’s the grade, Karen?!)

Propaganda Alert 2: The numbers don’t make any sense. 50 tonnes were found, but they will produce 2000 tonnes for over two decades. Maybe Google translators are broken? 50 tonnes, unless that beer we had was spiked, is a mere 1.6m troy ounces. Just OK numbers. The deposit is allegedly worth 3 TRILLION $3b….

Well, if that’s true, we’d love to sell them a couple of 1.6m oz companies for pennies on the dollar.

Propaganda Alert 3: many news outlets regurgitate the news, making it sound credible

In short: we have no idea how large this deposit actually is, and we probably never will.

They found something, but they’re probably going to gobble it all up.

🪨 Buy Nickel, Crash JP Morgan

Trafigura

LME

JPM is the latest victim of the mystery of the disappearing nickel, that's actually appearing in warehouses everywhere around the world as.... rocks.

Yes, Jim - and fortresses are built with..... ROCKS!

We know you're laughing too, and God is watching.

And probably also laughing.

😍 Galileo Mining Steps Out And Find New Sulphide Zone

Galileo Mining is an ASX-listed company (ASX: GAL) focussed on the discovery of base metals in Western Australia. The company is exploring for high grade palladium-platinum-nickel-copper-cobalt resources at its Norseman project and large scale magmatic nickel copper deposits in the Fraser Range.

Highlight of the latest campaign:

72 metres @ 1.16 g/t 3E1 (0.95 g/t Pd, 0.16 g/t Pt, 0.05 g/t Au), 0.20% Cu & 0.24% Ni from 498m (NRCD394) including higher grade interval of

39 metres @ 1.46 g/t 3E (1.19 g/t Pd, 0.20 g/t Pt, 0.06 g/t Au), 0.26% Cu & 0.28% Ni from 503m

We had no idea what the E stood for, until we looked at this handy table:

Not bad.

😖 First Majestic Suspends 21% of Revenue Generating Mine

First Majestic Silver has temporarily suspended mining activities and reduced its workforce at the Jerritt Canyon Gold Mine in Nevada, US, as part of cost reduction efforts ( as in, it doesn't make any money).

The Jerritt Canyon underground gold mine has one permitted gold processing plant, with a capacity of 4,500 tonnes per day (tpd).

The company plans to process the remaining surface stockpiles at the processing facility for the next few months.

First Majestic will continue to explore near-mine and prospective regional greenfield targets to expand resources in Jerritt Canyon and enhance economics for eventual restart.

Approximately 21% of the company’s 2022 revenue came from it.

A gold mine in Nevada that can’t make money at $2000/oz is quite something, Lord help us.

Meme of The Day

Happy Speculating!

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.