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Pick 4 Contest #20 Deadline Friday (5/17/24)
Remember to get your picks in before Friday's Close. Below is the link to the board. Hope this helps.
https://investorshub.advfn.com/Pick-4-Contest-No-20-42933
ODV, IAU, KDK
Osisko Development aka ODV released its Q1 results, and they were not impressive. We already knew most of the content, but new items included telling us that gold sales for the quarter were down to 619 oz, most of it residual production from the Trixie mine in Utah with the rest from processing stockpiles from the Cariboo project in BC using a third party. And it appears they lost money on that production, generating just $1.8M in revenues while the cost of sales was $2.0M.
That said, they are still in decent financial position with a cash stash of $57.5M at quarter end. Given that they are in the process of building a mine at Cariboo while preparing to upgrade Trixie, they have drawn down half their $50M credit facility to advance permitting at Cariboo and extract a 10kt bulk sample, which is supposed to be completed before year end. Let's hope that bulk sample generate good return on the investment.
I remain dubious at ODV's management being able to successfully manage these two projects, so I will be keeping a close eye on whether they are able to finish extracting the bulk sample and advance permitting at Cariboo according to the schedule they have laid out.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34659825
I admit it. When I saw there was yet another PR from Navada gold miner i-80 Gold aka IAU, I winced in anticipation of yet another stockholder-unfriendly PP to even further crush the share price.
But to my relief, this PR concerns how they are going to start spending all the money they have raised, in this case by accelerating development of the underground mine to come at Granite Creek. Drilling over the last few years had established the South Pacific Zone (SPZ) as the first area to be mined once underground development reaches the ore body. Now they will accelerate infill drilling in advance of an updated Resource Report on the SPZ followed by an FBS. As well, there will be further exploration drilling to extend mineralization toward NGM's nearby producing Turquoise Hill mine, which exhibits very similar geology and mineralization.
IF IAU's management can mange to complete this accelerated development programme as projected, I might take them back off probation. But please, no more ruinous PPs!
https://www.siliconinvestor.com/readmsg.aspx?msgid=34659857
In their most recent PR, BC explorer Kodiak Minerals aka KDK released the final results of their 2023 drilling, which appeared to have found another large porphyry on their MPD property in south central BC. Now we get the details of this year's exploration programme. They appear to have a lot of faith in the new VRIFY AI which will be used to guide much of this year's work.
KDK are planning 10km of drilling in 2024, aimed at both finding new high grade minerlaization around known zones plus some exploration at previously identified targets. There will also be extensive programmes of geophysics and soil sampling to advance the AI-identified targets to prepare them for eventual drilling.
KDK has not yet found anything else that lives up to the promise of the initial holes that gained them attention. I am hoping that with the new technology they might be able to remedy this.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34661141
Uranium's continue strong. I own $DNN $MGAFF $FCUFF $FDCFF $UUUU $ANLDF but there are other good ones.
MAI, IPT, OGC, EDV
In the wake of their recent announcement of the purchase of a Mexican copper prospect and the formation of a copper hub in southern Sonora, Minera Alamos aka MAI decided they had better put out a review of their existing copper assets, which had been largely absent from their PRs for years as MAI concentrated on developing their nearby gold assets.
The bulk of the review consists of a summary of the PEA carried out in 2012 on the Los Verdes Cu/Mo/W deposit when the company was still called Virgin Metals. The PEA generated robust economic numbers, like an IRR of 34% and payback period of less than 3 years. Examining the sensitivity analysis reveals that using today's prices the numbers would become very robust. The PEA also notes that including MAI's other nearby Cu/Mo deposit, Potreritos, would likely improve the numbers further.
Although the metal prices used in the PEA were of course lower than today's prices, apparently MAI does not plan to carry out a new PEA at this time. I expect the announcement of new economic studies, including upgrading the various Resource Reports to current standards, will come after they have familiarized themselves with the new acquisition, Suaqui Verde, and that all three deposits will be involved.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34656259
In the wake of the ill-advised, management-serving PP last week that cratered the share price, I guess the folks at Impact Silver aka IPT figured they better get some good news out ASAP, hence we got a PR this morning announcing a new discovery at Guadeloupe, one of the producing mines on IPT's Royal Mines of Zacualpan properties in Mexico.
Underground drilling from Guadeloupe, which has been in production on and off for over 500 years, has found a new vein system dubbed Kena Vein South, with the headline intersection being 213 g/t Ag over 17.30m Including 1,400 g/t Ag over 0.75m, with some gold values measuring over 1 g/t Au over short intervals. Several other holes in the area also encountered prospective mienralization, and drilling is ongoing to extend the discovery. I expect that once exploration is complete we will hear about plans to bring it into production.
I did take advantage of the PP-induced swoon in the share price to add some cheapies to my core holding. If I do manage to sell these new shares for a buck, which is possible if the prices of silver and zinc cooperate and there are no more share price crushing PPs, I will be left riding free shares.
If successful, this will be my third time buying cheap and selling dear. IPT is good for that.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34658895
FWIW, in the wake of this week's release by Oceanagold aka OGC of their Q1 results, BMO issued a new analyst report. Though they noted that production and earnings were lower tan expected and costs higher, BMO was pleased that OGC reiterated 2024 guidance and expect them to make up the deficit through the rest of the year. They maintained OGC at Outperform with a target of $3.75.
FWIW, BMO also issued a new analyst report on Endeavour Mining aka EDV after they released their Q1 results. Like OGC, EDV missed on costs and production, but are expected to make up the deficit through the rest of the year, particularly with two new mines coming on line. BMO maintained EDV at Outperform with a target of $36.
$SRCGF: Spruce Ridge Resources Ltd. Announces the Closing of the Acquisition of the Shamrock Nickel Property in Oregon
Toronto, Ontario –TheNewswire -April 26, 2024 – Spruce Ridge Resources Ltd.(“Spruce”or the“Company”) (TSXV:SHL) is pleased to announce that it has closed the acquisition of the Shamrock Nickel Sulphide Property (the “Property”), located near Medford in southwest Oregon, USA (the “Acquisition”) (see press release dated March 11, 2024).
Steve Balch, President and CEO, stated, “Spruce is increasing its presence in the U.S. critical minerals market with the acquisition of an interesting nickel sulphide property where the grades of nickel and copper are both over 1.0% and where the mineralization is open along strike and at depth. We do not yet know the extent of the mineralization and there is no record of exploration since the 1950s. We believe there are significant platinum group metals present as well.”
The acquisition terms were amended as disclosed below.
Shamrock Property
Information on the Property is taken from a National Instrument 43-101 –Standards of Disclosure for Mineral Projects(“NI 43-101”) report prepared by D.E. Cameron for Northwest Nickel with an effective date of March 1, 2023.
The Property consists of 40 unpatented lode claims, accessible by paved road, covering approximately 758 acres and located 20 miles northwest of Medford, Oregon.
The area was first prospected in the early 1900s, when a 60 ft-deep inclined shaft was excavated to intersect the main Shamrock showing containing nickel (Ni), copper (Cu), cobalt (Co), and platinum (Pt). Underground development occurred during 1949-50 by the U.S. Bureau of Mines (“USBM”). USBM completed eleven diamond drillholes totaling 3,419 ft and outlined a lens of nickel-copper sulphide 325 ft long, 200 ft deep and 3-25 ft thick. A 200-lb composite sample was submitted for metallurgy and assayed 1.3% Ni, 1.1% Cu, 0.07% Co and 0.03 oz/t Pt. In 1952-53 USBM removed 101.5 tons of manganese- (Mn) and iron-rich (Fe) material from previously discovered pods for metallurgical sampling with assays returning 23.1-32.3% Mn and 2.06-3.70% Fe.
Nickel-copper mineralization can be traced along strike for 1,500 ft north-south, 500 ft east-west and contains two mineralized lenses. Ultramafic rocks were intersected in drilling and consist predominantly of peridotite and related serpentinite, as well as norite and diorite. The best mineralization is present in a coarse-grained norite. Sulphide mineralization includes pyrrhotite, pentlandite, chalcopyrite and pyrite. A bulk flotation program recovered 92.3% of the Ni, 89.4% of the Cu and 51.3% of the Pt.
Acquisition Terms
Under the terms of the Acquisition, Spruce acquired a 100% interest in the Property by:
making a cash payment of $148,949 to Northwest Nickel Corp (“Northwest”);
issuing to Northwest an aggregate of 2,500,000 common shares in the capital of Spruce (TSXV:SHL); and
granting to Northwest a 2.0% net smelter returns royalty (NSR”) with the option to repurchase 50% of the NSR for consideration of $1,000,000.
The original terms involved transferring to Northwest 100,000 common shares in the capital of Canada Nickel Company Inc. (TSXV:CNC) held by Spruce, but was amended to be included in the cash payment of $148,949 included above;
The Acquisition is an arm's length transaction for the purposes of the policies of the TSX Venture Exchange (the “TSXV”) and no finder's fees are payable in connection with the Acquisition. The Company expects that the Acquisition will meet the criteria of an “Expedited Acquisition” under TSXV Policy 5.3 –Acquisitions and Dispositions of Non-Cash Assetsand remains subject to the TSXV's finalacceptance. All securities issuable in connection with the Acquisition will be subject to a hold period of four months and one day after closing.
Additional technical information on the Property is available on the Company’s website.
Click Image To View Full Size
Figure 1 -= Location of the massive sulphide lenses and historic workings at Shamrock.
Qualified Person
Stephen J. Balch, P.Geo. (ON), the Company’s President and CEO and a “Qualified Person” under NI 43-101, has reviewed and approved the technical content of this press release.
About Spruce Ridge
Spruce Ridge is a Canadian-based mineral exploration company focused on critical metal resources with nickel projects in Oregon, United States and copper projects in Newfoundland, Canada. The Company also holds a significant portfolio of mining securities including 3.55 million shares of Canada Nickel Company Inc. (TSX-V:CNC), 10.0 million shares of Noble Mineral Exploration Inc. (TSX-V:NOB), 15.0 million shares of Benton Resources Inc. (TSX-V:BEX) and 2.5 million shares of Magna Terra Minerals Inc. (TSX-V:MTT). Spruce’s common shares trade on the TSX Venture Exchange under the symbol “SHL”. More detailed information can be found on the Company’s website at:
http://www.spruceridgeresources.com
Cautionary Statement
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This news release contains statements that constitute “forward-looking statements”. Forward-looking statements are statements that are not historical facts and include, but are not limited to, disclosure regarding possible events, that are based on assumptions and courses of action, and in certain cases, can be identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur, or the negative forms of any of these words and other similar expressions. Forward-looking statements include statements related to future plans for the Company, and other forward-looking information. Forward-looking statements are based on various assumptions including with respect to the anticipated actions of securities regulators, stock exchanges, and government entities, management plans and timelines, as well as results of operations, performance, business prospects and opportunities. Although the forward-looking statements contained in this news release are based upon what the management of the Company believes are reasonable assumptions on the date of this news release, such assumptions may prove to be incorrect. Forward-looking statements involve known and unknown risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed in the forward-looking statements, including, but not limited to: an inability to develop and successfully implement exploration strategies; general business, economic, competitive, political and social uncertainties; the lack of available capital; impact of the evolving situation in Ukraine on the business of the Company; and other risks detailed from time-to-time in the Company’s ongoing filings with securities regulatory authorities, which filings can be found at www.sedarplus.ca. The Company cannot assure readers that actual results will be consistent with these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release. These forward-looking statements are made as of the date of this news release and the Company disclaims any intent or obligation to update any forward-looking statement, whether because of new information, future events or otherwise, unless otherwise required by law.
Contact
Stephen Balch, President & CEO
Phone: 905.407.9586
Email: steve@beci.ca
Thanks for keeping TUO on your list to post about.
OGC, EDV, TUO, IAU
Oceanagold aka OGC announced their Q1 results. They have set up 2024 to increase production each quarter, and they are off to a decent start, delivering results that meet expectations and set them up to reach their 2024 guidance as improvements across a number of their mines set them up for a strong second half.
As expected, the amount of material milled and the grade were both down from Q1 2023, but OGC still managed to produce 104800 oz Au and 3 kt Cu. Cash costs were up to $1194/oz Au, and the company actually posted a small loss in Q1, but thanks partially to selling over 12k oz Au produced earlier, they remain in excellent financial shape, which will become even better when they receive $30M from the sale of a non-core asset and the proceeds of the IPO for Didipio on the Manila exchange.
I am looking forward to watching all these numbers improve through the year, along with, I hope, the share price.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34655088
West African gold miner Endeavour Mining aka EDV released a very similar set of results to OGC. Yes, the numbers are larger, but as with OGC, they had planned for lower production this quarter, but also that it will increase through the year as new mines come on line, with the Sabodala-Massawa BIOX® Expansion project having just started pouring gold with Lafigué coming on line in a month or so. And, as with OGC, EDV says that Q1 results set them up to achieve their 2024 guidance.
Indeed, Q1 gold production of 219k oz was down 22% from last quarter with costs per ounce up over 20%, but they still managed to make a profit mostly thanks to higher gold prices, and the production numbers will increase and costs come down through the rest of the year. They paid out $100M in dividends and spent over $13M on share buybacks during Q1 which conducting several large exploration programmes while building two mines, yet they remain in excellent financial shape with a cash stash of $461M. I expect that figure to grow substantially this year, depending on how much debt they decide to repay.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34655140
Teuton Resources aka TUO released news about several of their JVed properties in BC's Golden Triangle.
I remember expressing a bit of worry when BlackWolf Copper and Gold bought out Optimum Ventures, including Optimum's JV with TUO on the Harry property. I was worried that Optimum had been totally focused on Harry wile Blackwolf's attention seemed to be focused elsewhere, and now we learn that TUO has filed to end the JV because Blackwolf was not fulfilling their requirements. This could go several directions. It was also announced thatt Balckwolf is merging with Treasury metals, so maybe the combined new company will seek to remedy the deficiencies and resume the JV, but I doubt it. If not, I don't think TUO will have much trouble finding a new JV partner.
There was happier news from the nearby Del Norte project, JVed out to Decade Resources, DEC reported some skookum results from grab samples taken at the crest of a ridge, with assays up to 30.9 g/t Au. This will be followed up by drilling later this year.
And if you want to see the Technical Report for the latest Resource Estimate for Treaty Creek, JV partner Tudor Gold has filed it on SEDAR.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34655114
Nevada gold miner i-80 Gold aka IAU closed their latest financing and for the first time, IAU warrants were listed. I converted a small portion of my shares into these warrants, though I did not manage to get the very cheap ones at the opening. Still, I am happy with my cost in the low 0.30s, and have a stink bid in in case someone decides to dump a bunch of them no matter the price. (It happens...)
If you want to learn more about trading warrants, check out this board, including the header which though parts of it are obsolete, does still link to some useful tools for evaluating warrants. The local denizens are also usually willing to share their expertise.
https://www.siliconinvestor.com/subject.aspx?subjectid=27370
Russian uranium imports banned. Congress finally passed the bill. U stocks are up a little across the board. This will make it harder to obtain fuel for America's nuclear fleet. US shut down their fuel making plants when Russia flooded the world with cheap supplies. I own a little LEU because they have some ability to become a fuel provider. They are providing small amounts of HALEU to the US govt. Haleu is a next generation fuel for modern reactors. I am sticking with etf's in Uranium because there are so many little players and so few actual profitmaking companies. URNM, URNJ and UROY, the only uranium royalty company. I sold my Cameco because they have so many hedges on the books, they are not going to profit from a big rise in prices.
EDV, MAI, IPT, KTRI
After a period of negative news -- firing the CEO, a not great Q1 production-wise -- west African gold miner Endeavour Gold aka EDV must have been relieved to put out a PR contacting good news -- the first gold pour from the Sabodala-Massawa Expansion project in Senegal. Even better, the entire project took less than two years to complete and came in on schedule and on budget.
In spite of the foofarah at the top, this project is another endorsement of the capabilities of EDV's technical team, being the foruth major project they have built in the past 10 years, all completed in less than two years and on budget. And the PR also tells us that their fifth major project at Lafigué will shortly be completed on budget and well ahead of schedule.
These folks know what they are doing when it comes to mine building.
The PR also give us details of an exploration programme at a number of deposits near Sabodala-Massawa looking for more easy to process oxide ore which could provide material for future expansion.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34651496
Mexican miner Minera Alamos aka MAI released its annual results, and as expected they were pretty crappy, with total gold sales from its Santana mine in 2023 totalling only 5041 oz Au thanks to the permit slowdown affecting mining in Mexico. Still, MAI remains in excellent financial shape even as they optimize operations at Santana and prepare to start building a second gold mine at Cerro de Oro, with a cash stash of $13.8M and no debt.
They have been implementing a new mining plan at Santana as they await the permits needed to expand the heap leach. Fortunately, there are signs the woman who is almost certain to take over from AMLO as President of Mexico is much more supportive of mining. She has made specific mention of copper, which is perhaps why MAI just announced a new initiative to develop its Mexican copper properties in conjunction with a new acquisition..
I think this already going to be a decent year for MAI in spite of those permit issues. If they are resolved in time, 2024 could become a very good year for the company.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34652595
If Impact Silver aka IPT were a leopard, it would certainly have changed its spots. For most of the time I have followed IPT, they assiduously refused to do PPs, content to noodle along on their Mexican silver mines at around break even. But this all changed a few years ago as, with no change in management, they became more expansionary and started raising funds, which so far have been used to to buy and bring back into production the Plomosas zinc mine and do preparatory work towards increasing production at their core property, the Royal Mines of Zacualpan.
I am not pleased by the unit price, which is below the recent market price for IPT shares, plus each unit includes a half warrant, but to be fair IPT's share price has been running the last few weeks. The big test will be whether the money actually is used to increase production and profits.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34652625
Some time ago, Kootenay Silver announced they were going to spin out some of the BC projects into a separate company. Now we learn that the new company, Kootenay Resources aka KTRI, has been listed on the TSXV.
KTRI's primary holding is the Moye Anticline prospect in SE BC, which has indicators that it may host a large Cu/Pb/Zn/Ag deposit. They also have PM prospects on the Nechako Plateau further north and west , plus three BC prospects currently under option to Canterra Minerals.
Now that KTRI has been listed, I expect we will soon receive updates about their plans. In the meantime, here is their website.
https://kootenayresources.com/
Saville continues to expect that the PoG will correct to the $2200 area before resuming its upward trend. He also expects silver to follow along, correcting to somewhere around $25.
Bob, I too own some Metalla, obtained when they took over another royalty company I had shares in. I have a similar outlook as to their prospects, and will take opportunities to add to my share count as they are presented to me.
I would also advise you take a look at another royalty company, ELEC, which is focused on energy metals. I am certainly that like all smaller royalty/streamer companies it will be bought out in due course. And the way it trades, you occasionally get a chance to add cheap shares under 20 cents.
LC
MTA bought a few shares of Metalla Royalty. After a lot of promotion in the past few years, Metalla has steadily fallen from it multiyear peak of $12.56 at 12/1/20 to the current 3.19 level. I bought at 3.01 a few days ago. I like gold royalty companies because they are less volatile and gush cash once their royalties move into production. Metalla isn't there yet but has a big portfolio of royalties that should start producing profits in 2025-6. This is a long term buy and hold due to the size of the portfolio and the quality of the partners.
GOLD/Copper Developer Ready To Rally; https://www.barchart.com/stocks/quotes/ESM.TO/overview
trades on the OTC as well
https://crweworld.com/article/news-provided-by-globenewswire/3364861/romania-government-announces-strategy-to-align-mining-legislation-to-the-eu-s-critical-raw-materials-act
OGC, KDK, MAI
Oceanagold aka OGC released more details about the upcoming IPO it has put together to be listed on the Manila Stock Exchange. They will be selling 20% of the shares of the Philippine subsidiary that owns its producing Didipio Au/Cu mine in the Philippines to raise $106M, which we are told will be used primarily to pay down debt. (OGC's debt totalled $232M at the end of 2023.)
Apparently the IPO, which is the first this year on the Manila exchange, is very popular with both institutional and institutional investors. Note that this price values Didipio at over half a billion dollars.
https://ca.finance.yahoo.com/news/oceanagold-announces-ipo-pricing-20-110000553.html
In response, Scotia issued a new analyst report on OGC calling the impact Positive, primarily because the shares were priced almost 25% above Scotia's expectations. They also expect OGC to generate over $200M FCF at current spot prices. They kept OGC at Sector Outperform with a target of $4.
Kodiak Copper aka KDK released the remainder of the drill results from its MPD property in southern BC, and though you would never know it by how the shares are trading, it was good news. The first drill holes under a soil anomaly appear to have caught the edge of another Cu/Au porphyry, dubbed the 1516 zone, to go along with their previous discovery, the Gate Zone. This gives further credence to KDK's model of MPD as containing multiple porphyries within two large clusters, along with a number of already known porphyries. This year's exploration campaign will further explore the 1516 zone.
The remainder of the released holes were from the West, South, and Man Zones, and served to confirm large areas of mineralization from surface to depth, and likewise will be followed up this year. Expect the details of this year's exploration plan to be released soon.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34647435
Even as they work to optimize their first Mexican gold mine and build the second, Minera Alamos aka MAI has in the background been working away on their Mexican copper assets, most recently moving the Los Verdes and Potreritos properties into a subsidiary, presumably as a precursor to eventually spinning it out into a separate listed company that operates a copper hub consisting of what they are calling 'low capital intensity copper assets'.
Now we hear about the next step in this process, with the announcement that MAI will be acquiring a private company called Minera Copper Gold which owns the nearby Suaqui Verde copper prospect. Suaqui Verde is a typical Mexican copper porphyry with an oxide cap over deeper sulphide mineralization, and is located 50km from Los Verdes (and from MAI's operating Santana gold mine). The property has good road access and nearby grid power, and has been the subject of historical drilling and Resource Estimates.
I expect it won't be long before we hear about the start of exploration in an attempt to upgrade those resources.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34648784
RRI, CEE, IPT
Prospect generator Riverside Resources aka RRI released an update on its Pichette prospect located in the Geraldton-Beardmore gold belt in Ontario.
Pichette is located near the past-producing Leitch and Sand River mines, and 60 km west of the Greenstone Gold project which will begin production later this year. What those three mines share is that the gold is situated in Banded Iron Formations (BIFs), particularly where there are folds which allow mineralization to collect like it does at a bend in the river on an alluvial gold claim.
RRI has been able to located numerous BIF outcrops on Pichette, sampling of which has produced assays as high as 21 g/t Au. They continue to map and sample the outcrops, and hope to come across some of the historic drill pads and collars in the area as they do. And of course, they are hoping to attract a partner to fund a drill campaign, though as they currently have more than $6M in their cash stash, I wouldn't be surprised to see some drilling even without a partner coming on board.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34639114
African gold miner Centamin aka CEE released its Q1 results, and as we have come to expect from this management team, things are proceeding according to plan. Production was down somewhat to 104821 oz Au as planned, due to processing of lower grade stockpiled ore and improvements being made on the underground mine, but in spite of the decreased production, they still managed to lower cash costs to $1088/oz Au. We can expect production to increase and costs to decline the rest of the year, as CEE has reiterated its guidance for 2024.
CEE remains in good financial shape, having grown their cash stash to $167M while remaining debt-free. As well, their inventory of unsold gold is appreciably higher than normal due to the timing of sales, which will catch up through the year.
There could be a buying opportunity right now if the uninformed don't realize that the lower production for Q1 was planned..
https://www.siliconinvestor.com/readmsg.aspx?msgid=34640091
FWIW, in response BMO issued a new analyst report on CEE that saw the impact as Neutral. While noting the production and revenue miss for Q1, they also expect CEE to catch up due to all the completed upgrades. They kept CEE at Outperform and kept their target the same, though thanks to changes in exchange rates that target in increased in Canadian dollars to $2.73.
Last year Impact Silver aka IPT bought the shuttered Plomosas Zn/Pb/Ag mine in Chihuahua, Mexico. Since then they have upgraded the mine and mill and brought it back into production, with plans to ramp up to full production by the end of the year.
Meanwhile, they are drilling up a zone called Tres Amigos that is near existing mine workings. The latest drill results include assays like 10.22% Zn, 0.50% Pb, and 8 g/t Ag over 8.6ms including 14.67% Zn, 0.66% Pb, and 11 g/t Ag over 5.5m and including 30.10% Zn, 0.86% Pb, and 14 g/t Ag over 1.1m. Tres Amigos is turning out to be into an easily-accessed zone of what should be lucrative ore. Once this drilling is complete, they will move on to other exploration targets on the property.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34640138
Saville continues to maintain that the PoG and gold stocks likely set a multi-month top last week. He figures that gold will likely correct to the $2150-22200 range before resuming its climb.
FWIW, TD issued a new analyst report raising their price deck for gold by an average of 19%, including raising their long term gold price from $1750 to $2000. Like Saville they do expect a short term correction but remain bullish on gold and silver. This resulted in an increase in their targets for PM miners by an average of 20%, including raising BTO from $7 to $750
EDV, MAI, GNG, IPT
We get some more 'interesting' news regarding West African gold miner Endeavour Mining aka EDV. You may recall that they recently fires their CEO after uncovering evidence of serious misconduct. Now one of the deals the former CEO arranged has come under scrutiny, though what really happened remains murky.
A little less than a year ago, EDV announced it had sole two of its mines in Burkino Faso to an African company called Lilium Mining. However, when Lilium missed making two payments totalling over $100M, EDV embarked on a mediation process before the London Court of International Arbitration. Now it comes out during testimony that Lilium is alleging that EDV misrepresented information about the mines.
At this point it is impossible to say where the truth lies. I am hoping it is a fabricated accusation by a buyer attempting to avoid obligations.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34638109
Minera Alamos aka MAI released an update on its Santana gold mine in Sinaloa, Mexico. Alas, no word on the delayed permits for heap leach expansion, so MAI continues to implement its revised mining plan. To that end, contractors have been dispatched to prepare the Nicho Main zone for the start of mining, the ore from which will be processed through the current heap leaches. The Nicho Main is closer to the heap leaches than the Nicho Norte pits which are already in production, which allows for faster stacking, and MAI expects the results of that improvement to be seen starting in Q3.
https://www.siliconinvestor.com/reply.aspx?subjectid=57070&replytoid=34637959&replytype=Pub&OrigType=Pub
Golden Goliath Resources aka GNG released a corporate update. I had thought they had abandoned working on their Wish Ore gold prospect on the Batchewana Greenstone belt in Ontario in favour their their recently acquired REE prospects in Quebec, but apparently not.
Yes, they are planning to do some more exploration on two of the REE properties this summer, but right at the beginning of the PR they declare that Wish Ore will be their main focus this year. So far GNG's exploration has defined two zones with some gold, with trenching and drilling finding low grade gold with almost all the assays under 1 g/t Au. This year they are going to focus on the 3km between those two zones, particularly the stretch where there is a significant inflection in a fault which should have provided a good mineralizaing environment.
First up with be geophysics, followed by a drill campaign.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34637975
Mexican silver/zinc miner Impact Silver aka IPT released its annual results for 2023. Over the years, IPT has fhas carved out a niche as a small high cost producer which has been able to make enough during the times when metals prices are up to more than offset the losses incurred when metal prices are down. based on production from various mines in the Zacualpan silver district . However, 2023 was different, a transformational year as the company acquired and returned to limited production the Plomosas Zn/Lb/Ag mine further north in Chihuahua.
This necessitated much higher expanses than usual, to which were added the ongoing inflationary pressures, so although IPT was able to increase revenues by almost 50% particularly due to increasing gold and zinc production from Zacualpan, they also incurred a larger loss. That said, they remain in good financial shape with a cash stash of $6.3M and no debt.
2024 promises to be another year of transformation for IPT, or perhaps, the completion of the transformation. As well as gradually ramping up Plomosas throughout the year, they are evaluating bringing the Capire mine in Zacualpan back into production. We can also expect major exploration campaigns at both Plomosas and Zacualpan.
As long as silver and zinc prices remain high, 2024 could be a very good year for IPT.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34638005
IAU, OGC, NTH, IPT, KRR
Nevada gold miner i-80 Gold aka IAU released another set of outstanding drill results from the McCoy-Cover, one of three mines it is currently developing. This time they were from the Helen Zone, which is expected to provide the first production from the property, where they drilled intercepts like 29.6 g/t Au over 7.2m, 18.7 g/t Au over 8.3m, & 37.2 g/t Au over 3.7m. Drilling continues.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34636806
Oceanagold aka OGC announced that they have received official approval for an IPO involving 20% of the shares of their subsidiary that owns the Didipio Au/Cu mine in the Philippines. The shares will be listed on the Philippine Stock Exchange in Manila. They intend to use the money to pay down debt.
OGC also announced preliminary Q1 results for Didipio which were in line and support the eventual achievement of their 2024 guidance. We'll get more details when the quarterlies come out.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34636792
Nord Precious Metlas aka NTH (formerly CCW) released a nothingburger of a PR that merely recapitulates the one from last week about how they are attempting to develop silver-based products for the solar panel market. A complete waste of money...
https://thenewswire.com/press-releases/1LYzFVWDG-nord-precious-metals-poised-to-capitalize-on-accelerating-silver-demand-driven-by-solar-panel-technology-advancements.html
The IKN newsletter surprised me this weekend by adding Mexican silver/zinc miner Impact Silver aka IPT to its list of recommended buy, based primarily on the way the shares move upward strongly when the PoS leads the way due to it being a high cost producer, plus its solid financial position. This is seen as enough to more than compensate for the loose share structure and low ownership by the management and executives of the company. Based on the long term chart, he suggests that a run over a loonie per share is very possible if the PoS provides the impetus.
As it happens, I've been thinking of adding some IPT traders to my holdings. Maybe I should get on that soon.
Also, IKN reminds us that 70% of the silver mined each year is produced as a byproduct of very large porphyry copper/cold mines so it is produced for just a fraction of the PoS.
Saville commented on the WGX/KRR deal, saying that WGX is paying too much but not egregiously so. FWIW, he listed WGX as one of four stocks to buy in his latest list.
Saville also opines that most likely, both gold and silver set short term tops on Friday and will most likely go into correction mode for the next month or two. He also thinks that for HUI to make a sustainable break above 280, the gold/oil ratio needs to substantially exceed the highs it set last year. Hence he advocates taking some profits on your PM miners now with the expectation of being able to reload at lower prices sometime in the next few months.
RIO
Rio2 aka RIO released an updated on the Fenix gold mine they are building in northern Chile. Following the permitting hassle last year, it is excellent news to hear that they have officially received the Resolución de Calificación Ambiental (Environmental Qualification Resolution, or RCA) for Fenix. The next step will be recEiving 4 subsidiary permits which they expect to receive around the end of July
Meanwhile, they continue to work on putting together the construction financing package. A number of institutions are in the running, and they expect to have the financing completed by Q3, at which time the anticipated 14-month long construction process will begin in earnest.
RIO also announced a PP to raise $10M at 39 cents a share, a little under the current market price but with no added warrants. The market obviously likes the deal, as a few hours later it was upsized to $23M!
https://www.siliconinvestor.com/readmsg.aspx?msgid=34630294
KRR x 2, IAU, KTN, OGC
Australian gold/nickel miner Karora Resources aka KRR released their Q1 production results, and we learn they had a bit of a rough quarter, with production down about 10% from Q4 to 36147 oz Au. Min you, even those results are pretty good when you consider that one of their mills had a two week shutdown due to local grid power disruptions, the other having equipment issues, and two weeks of heavy rain that impacted all the producers in the region. All these problems have been cleared up and KRR is now back at full production.
Thanks to selling over 40k oz Au in the quarter, they were able to increase th eir cash stashby $4.8M during the quarter to $87.5M.
It is interesting to note that in spite of a less than stellar quarterly report, KRR's stock set a 52-week high on the day this PR came out.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34626496
Now we know why KRR hit that 52-week high. Today, they announced a merger with fellow Australina gold miner Westgold Resources. I must confess that at this point all I know about Westgold is that their shares recently got hammered when they reduced guidance, so I can't really comment on the whether KRR shareholders will be getting enough WSG shares until I do more research.
There are several aspects to the deal I do like. First Westgold says they will apply for a TSX listing if the deal goes though, meaning current KRR shareholders won't have to deal with trading ASX shares. As well, current KRR shareholders will receive about 60 cents cash per KRR share, plus shares in a SpinCo which will hold shares of and royalties on lithium explorer Kali Metals (KMI.AX) plus cash and 'the right to receive a deferred consideration payment due to Karora relating to the on-sale of the Dumont asse'.
Pending further analysis, I am leaning toward holding through the transaction. I have seen speculation that competing bids might emerge.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34628995
I wonder what Nevada gold miner/developer i-80 Gold aka IAU is going to do with all the money they are raising. IAU announced yet another PP, this time for $85M, quickly upsized to over $100M. This one is not as favourable to current stockholders, as it includes a half warrant priced at $2.25 in each unit. Nevertheless, I used to resulting dip in IAU's share price to add to my holdings at what I still continue a good price.
IAU remains very coy about what they will use the money for, but I expect we will be surprised at some point this year. I certainly hope so, given that this was priced below the 52-week low.
https://ca.finance.yahoo.com/news/80-announces-upsizing-previously-announced-143500980.html
Another company that has done multiple PPs of late is Kootenay Resources aka KTN. Their latest one was announced today as raising $5M at about the current share price, albeit including a half warrant, but it was quickly upsized to $9M. They do mention that part of the proceeds will be used for exploring KTN's Columba silver prospect in Mexico, so I hope the upcoming drilling goes well.
https://ca.finance.yahoo.com/news/kootenay-silver-announces-upsize-previously-163500763.html
FWIW, in the wake of a site visit to the Haile gold mine in South Carolina plus new Technical Reports on Haile and the Macraes gold mine in New Zealand,, BMO issued a new anlyst report on Oceanagold aka OGC. They liked the better water management system at Haile plus the good progress on the undergroind mine, but didn't like the reduction in mine life at both Haile and Macraes from the Technical Reports. Overall, their NAV for OGC declined 10% as a result of the Technical Reports, but citing the excellent growth prospects, they kept OGC at Ourperform with a target of $3.75.
Saville continues to maintain that we are near a correction in the PoG of 7-10% over 1-2 months, but also that this correction could begin from a significantly higher price. He also points to the ongoing divergence between the PoG and the amount of physical gold held by SPDR. This indicates we are still in the early phases of a gold bull as these two indicators move up together during the late stages of a gold bull market.
I like the way IKN describe the current situation of the PoG -- 'it continues to rally without the aid of capitalism'.
NTH, KTN, OGC
Nord Precious Metals aka NTH delivered further proof that their symbol should be AHDH by announcing yet another venture. This time they are working with Temiskaming Testing Laboratories to develop a process to manufacture silver paste, which is used in the manufacture of solar cells. NTH is apparently talking to cell manufacturers to develop specifications for the product, which they seem to think they can commercialize fairly rapidly to provide cash flow. We shall see.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34624244
On Mar. 14 Kootenay Silver aka KTN announced the 'commencement' of drilling on its Columba silver prospect in Chihuahua, Mexico. Now we get another PR announcing that drilling is underway.
I find PRs of this type, which contain no new information, to be a waste of time and money. After all, we all knew that since drilling has commenced already, that it is underway...
FWIW, the proposed program includes 15-17 holes totaling 5km metres aimed at expanding the D-Vein target
https://www.siliconinvestor.com/readmsg.aspx?msgid=34624337
Oceanagold aka OGC released an update detailing how exploration at two of their mines supports the expansion of production.
At the Haile gold mine in South Carolina, OGC released results from 8 holes drilled at the Horseshoe Extension and Lower Horseshoe which were not included in the recently release resource update. Assays like 34.9m @ 7.60 g/t Au and 39.3 m @ 5.8 g/t Au set the stage for resource growth near existing underground infrastructure. Drilling continues with more than 8km planned.
At the Didipio gold/copper mine in the Philippines, OGC released results from both extensional underground and resource conversion drilling. An intercept of 87m @ 1.43 g/t AuEq extended mineralization 200m below the existing resource and will be followed up by further drilling, while two holes returning 35m @ 1.06 g/t AuEq and 15m @ 3.32 g/t AuEq, respectively, open up two new zones for further exploration. In addition, OGC announced the results of successful resource conversion drilling below the existing pit, as well the commencement of exploration drilling at the Napartan Au/Cu target 9km NW of Didipio.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34625327
In response, Scotia issued a new analyst report on OGC calling the results Posivie, while maintaining OGC at Sector Outperform with a target of $4.
KTN, MTA, ODV
Kootenay Resources aka KTN announced they have filed a base shelf prospectus which 'allows the Company and/or selling security holders to make offerings of common shares (including by way of an "at-the-market distribution" in accordance with applicable securities laws), warrants, subscription receipts, units, debt securities or any combination thereof for up to a maximum amount of C$40 million during the 25-month period over which the base shelf prospectus is effective.'
They reassure us that this filing is just to increase financial flexibility,, and that there are currently no plans to implement it, but one has to wonder why they went through the hassle of setting this up.
https://ca.finance.yahoo.com/news/kootenay-silver-files-final-shelf-002400870.html
Metalla Royalty & Streaming aka MTA released its 2023 results. Unfortunately, they were a little disappointing. I acquired my MTA shares though the takeover of Nova Royalties and had hoped for better, but I will continue to hold in the expectation of better days to come.
Expectations were for MTA to lose 1 cent a share in 2023, but the actual loss was 3 cents. Q4 delivered GEO (gold equivalent ounces) of 1.1k oz, which means they will easily beat 2023 guidance, but this was offset by lower than expected 2024 guidance of 2.5-3.5koz, well below expectations. It is noticeable that they have taken a conservative approach, so I am hoping they are able to exceed guidance again in 2024.
MTA remains in good finacial shape. At yea rend they had a cash stash of $14.1M vs. total debt of $16.6M.
BTW, smaller streamers like MTA are almost always are taken over or execute a merger, and that is my expectation for this stock. I just hope we get a good price when it happens.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34622218
FWIW, in response BMO issued a new analyst report on MTA that Kept them at Market Perofrm but lowered the target from $8 to $7.
I guess we have to give the management at Osisko Development aka ODV some credit. By warning us a few weeks ago that their Q4 and 2023 annual results were going to be terrible due to a large noncash writedown, and then releasing the results themselves after market close before a long weekend, they did manage to avoid too big a hit on the share price.
And this in spite of poor Q4 at their operations, as they sold only 2090 oz Au, most of it from the Trixie mine in Utah, with the rest of it from processing stockpiles from the Cariboo gold mine in BC. (There have ceased production from San Antonio in Mexico pending resolution of permitting issues,) FWIW, they did manage to make a profit on the sales, as revenue exceeded cost of sales. However, at year end their cash stash was down to $43.5M.
Also note that they have ceased test mining at Trixe for the time being.One other note of hope is that in spite of missing with their first attempt, ODV have two more holes underway at Trixie searching for the underlying porphyry.
This is a tricky time for ODV with two mines potentially under construction in the near future. Let's hope management can, well, manage the process successfully.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34622322
Reviewing the monthly charts, Saville confirms the PoG breakout, with $2300 being his near term target. As a consequence, he expects HUI to test long term resistance at 370 later in 2024, but first it needs to get though resistance in the low 250s . He also expects silver to outperform gold over the next 12 months, and mentions a potential target of $40.
SNAG, CEE, EDV x 2, KRR
Silver North Resources aka SNAG announced the plans for 2024 exploration on its Tim Ag/Pb/Zn prospect in Yukpn. The deposit is located on the road to Coeur's Silvertip mine 19 km away, and is prospective for similar CRD style deosoits. Coeur can earn up to an 80% ownership by fulfilling a number of requirements, and is starting that process by arranging for a 2000m drill campaign plus mapping and sampling beginning in June. The crews will even be operating out of the Silvertip Mine camp.
If exploration goes well at Tim, I expect Coeur will eventual buy it, possibly even all of SNAG.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34618067
They manged to beat guidance for the
African gold miner Centamin aka CEE has published its annual report. I won't say much more because it covers what followers of the company already know, but it is comprehensive refresher even for those folks.
https://www.centamin.com/investors/results-reports/
We already knew west African gold miner Endeavour Mining aka EDV had a great year and Q4 in terms of production; now we learn the financial details with the release of their annual results. EDV managed to beat guidance for the 11th year in a row, and continues to be the cheaper producer among their peers, with the cash cost for Q4 dropping to $837/oz Au. As this was a year of building mines for EDV, their full year cash costs did increase to $837/oz -- still the lowest among their peers -- but I expect it to drop again as the new mines come on stream through the year.
Iin spite of returning $266M to shareholders in the form of dividends and share buybacks, EDV also generated a lusty robust profit, albeit again less than last year. Their cash stash dropped to $517M at year end as a result of those mine builds, but I expect it to increase in 2024.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34618136
EDV also announced the results of an investigation in the actions of former CEO and President Sebastien de Montessus, who was fired on Jan. 4. Apparently de Montessus managed to divert $20.9 in payments, covered it up as long as possible, and is still being evasive. Where the money ended up is unknown, but EDV did manage to recover over $29M from him.
Fortunately his actions have not affected the existing financial reports EDV has released, and they are taking a number to steps to strengthen their governance.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34618172
Australian gold/nickel miner Karora Resources aka KRR and potential partner Ramelius Resources have both announced discussions on a potential merger have ended. I heartily approve of this development, and so does the market. In response RMS shares hit their highest level since 2001 while KRR shares are back over $5 for the first time in months.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34619198
ARK, ODV
Arras Minerals aka ARK released an update from exploration on its Elemes prospect in Kazakhstan (which is not subject to the alliance with Teck). Using soil sampling, geophysics, and reanalysis of historical drill holes, they had already established a very promising 8.8 km prospect called Berezski . Now we hear about an even better prospect called Aimandai which was previously unknown.
Aimandai has been established over 14 km and remains open at both ends, and like Berezski, contains minerlization that extends from surface, as also looks to be an expression of a large porphyry. Expect further exploration, including the first modern drilling on both targets later this year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34615899
FWIW, BMO has a new mining analyst, and he surprised me by coming out with a report on Osisko Development aka ODV in the wake of last week's updated Resource Report for their Trixie gold mine on the Tintic property in Utah. The author confirms that the decrease in the Resource was the primary cause of the non-cash write down we have been cautioned to expect.
After talking to management, BMO expects Trixie to be developed using contract mining and a heap leach, the easiest and quickest route to cash flow. As they already have the necessary permits, BMO is modeing first production at Trixie next year.
But the analyst also reiterates that ODV's primary focus remains the development of the Cariboo gold mine in BC, for which permits are expected mid-year. Pre-construction activities are already underway in the wake of the recent awarding of a $50M credit facility for the construction.
EDV, KRR, CEE x 3
West African gold miner Endeavour Resources aka EDR announced they have renewed their Normal Course Issuer Bid for another year. Subject to the usual conditions, they can repurchase and cancel up to 5% of their outstanding shares, which amounts to 12,259,943 shares that could disappear. Note that under last year's NCIP they were entitled to buy and cancel about the same number of shares, but ended up cancelling 3,143,564 shares at an average cost of $28.73.
https://ca.finance.yahoo.com/news/endeavour-announces-renewal-normal-course-070000109.html
We already knew that Australian gold/nickel miner Karora Resources aka KRR had a bang up Q4 and full year 2023 production-wise; now we get to hear about the money We learn that costs were higher than expected in Q4, primarily due to a now-remedied but expensive equipment failure at the Higginsville mill, as well as holding back nickel sales, which are counted as a byproduct credit to the gold production, till nickel prices recover. As well, earnings were down in 2023 compared to 2022, again due primarily to one time non-cash charges. As a result their cash stash stayed about the same in Q4 as they ended the year with $82.5M on hand, a 20% increase from year end 2022.
This was a big year for expenditures for KRR as they continued to develop new minerlaization and upgrade mills while integrating their purchased assets, so, assuming the PoG cooperates, I expect KRR to generate abundant cash flow and profits this year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34613132
African gold miner Centamin aka CEE reported their 2024 annual results. We already knew that it was a good year for CEE, as production at Sukari matched guidance with costs below guidance. However, now we learn that earnings were less than expected, but also that this was due to one-time costs, primarily depreciation on exiting assets.
Reflecting the company's strong financial position, their cash stash has grown to $153M and no debt. The company also reiterated 2024 guidance of 470-500k oz Au production at a cash cost of $700-850/oz.
In 2024 we can expect the release of an FBS for the Doropo project in Cote d'Ivoire midyear, around the same time as an exploration update on their recently acquired EDX exploration prospects in Egypt, and connection of Sukari to grid power by the end of the year along with the release of a study into expansion of their solar power plant.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34612075
CEE also put out two related PRs that contain interesting information.
The first details all payments made to governments last year. The bulk of the $141M was profit sharing and taxes paid to the Egyptian government in relation to CEE's producing Sukari gold mine.
https://ca.finance.yahoo.com/news/centamin-plc-announces-payments-government-070000009.html
The second details how CEE arrived at its 2023 dividend payments, which amount to 55% of available cash flow.
https://ca.finance.yahoo.com/news/centamin-plc-announces-2023-final-070000104.html
ODV x 2, KTN
We get two pieces of news involving Osisko Development aka ODV today, and neither was good.
The first comes from ODV itself, and concerns the release of an updated Resource Estimate for the Trixie mine on its Tintic property in Utah. M&I Resources are now 245kt @ 19.11 g/tAu & 60.8 g/t Au containing 150k oz Au and 478k oz Ag,, while Inferred Resources are now 202kt @ 7.80 g/tAu and 48.55 g/t Ag containing 51k oz Au and 315k oz Ag.
Although small, this resource might look like good at first glance thanks to the high grades, until you learn that compared to the 2023 MRE, contained M&I gold ounces are now down 29%, while the corresponding Inferred number is a whopping 79% decrease. The reason? In spite of completing a good deal more drilling and sampling, a revised geological model removed much of what was formerly considered ore from the mineralized envelope. (Yes, part of the drop in Inferred was due to resource conversion, but even so M&I were still down substantially anyway.}
Also, late in the PR they casually mention that the deep hole that was designed to find the underlying large prophyry under Trixie instead hit a fault and after that, barren rock.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34605750
Disappointingly if not surprisingly, ODV has not bothered to PR the other piece of bad news; I heard about it on the local news. A provincial government report documented 417 separate violations on 68 different days in 2020 and 2021 involving the leaking of toxic material from its Bonanza Ledge gold mine near Barkerville, BC. . It also noted previous violations, including 215 incidents in 2017, and 463 between 2018 and 2019.
There was one glimmer of good news. The fine had been originally set at $750k, but was reduced because the pandemic made it very difficult to find contractors to deal with the situation. Still, it's not a good look, and underlines once again how poorly run this company is.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34605785
Kootenay Resources aka KTN has announced a new 5000m drill programme on their Colimba silver prospect in Chihuahua, Mexico. The 2023 drilling campaign established the D Vein as an important prospect, with the highlight drill results being 13.56m of 599 g/t Ag, 8.19Mmf 532 g/t Ag, and 10.26m of 501 g/t Ag. The D Vein now been defined over a strike length of 450m and depth of up to 250m. It is believed that the D vein has another 800m of strike length before it intersects the B vein.
If the drilling yields results, KTN intends to raise enough money for enough drilling to establish an initial Resource Report for Columba.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34604717
A short interview with KTN's CEO regarding Columba and La Cigarra can be found here
https://ca.finance.yahoo.com/news/kootenay-silver-makes-progress-columba-132401774.html
KRR, KTN, RRI, IAU
Australian gold/nickel producer Karora Resources aka KRR released a PR containing updated guidance for 2024. They produced just over 160k oz Au last year, and in 2024 expect to increase that to 170k-185k oz Au at an AISC of $1250-1375/oz Au. As well, they plan to produce 200-300t Ni, which is treated as a byproduct and therefore reduces the AISC for the gold. (Note that they have deferred some nickel production until the price recovers.)
To achieve this growth, KRR projects spending between $110M and $140M on exploration, mine development, and equipment and personnel additions. This expenditure will also allow KRR to reach the 2.0Mtpa production level at Beta Hunt they set as a goal three years ago.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34600960
Kootenay Resources, which is currently an unlisted company hived off by Kootenay Silver aka KTN, has announced that they have been approved for conditional listing on the TSXV, prior to which they will have to complete a $500k PP and satisfy certain other requirements. Not that if this is completed it will also make available other funds currently held in escrow.
Kootenay Resources was created to hold a number of KTN's BC prospects, including three wholly owned Ag/Au(/Cu) properties on the Nechako Plateau and three others that are currently optioned out to other companies which are paying for work programmes. The company aims to use its deep knowledge of this area of BC to generate and farm out new prospects in the future.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34603578
Speaking of prospect generators, one of the best in the biz is Riverside Resources aka RRI, and we get proof of that with their latest NR, which concerns Cecilia, a 100%-owned district scale gold and silver, low sulfidation epithermal system located 40 KM SW of the Mexico-U.S.A. border city of Agua Priet in Sonoro, Mexico. Cecilia covers over 60 sq km and hosts at least 10 promising exploration target, including at least two nested dome complexes, which can host enormous amounts of PMs.
It is a measure of the respect given RRI's geologists that even though Fortuna Silver aka FVI can earn a majority interest in Cecilia, RRI will remain as operator of the exploration programme. FVI has five years to earn 51% ownership by making cash payments and meeting work commitments, then can increase that to 80% over the next three years by meeting similar requirements. After that there will be a 120 day period during which FVI can earn 100% by paying RRI $5M and granting them a 2% NSR.
RRI will also be compensated for all fees and paid to operate exploration. It is expected that this programme will begin shortly.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34603601
Nevada gold miner i-80 Gold aka IAU reported its Q4 and full year results. IAU is still primarily a developer rather than a producer, with 3 new mines underway, but still managed to sell 3350 oz Au from Granite Creek and residual leaching, and for the first time they sold substantial amounts of ore from Granite Creek, i.e. 61,223t mineralized material sold (29,512t sulfide mineralized material) for total revenues of $19.0M.
As a result they ended 2023 with a cash stash of $59.8M ($44.5M of it restricted). If you follow IAU, you will known that earlier in 2024 they completed a PP at a price of $1.80/share for $23.4M, which at the time cratered the share price down to the $1.80 area. I bought several tranches of shares around that price, which so far has worked out well, with the share price hitting $2.20 today. My current plan is to sell at least some of those $1.80 shares when the shares hit $3, but plans can change....
https://www.siliconinvestor.com/readmsg.aspx?msgid=34603683
Both Saville and IKN has been telling us about how big money remains uninterested in gold. As a further sign, notice how last week's breakout in the PoG to a new ATH was barely noticed in mainstream financial coverage. Now Saville adds to this by going through the latest COTs report to show how 'dumb money' also remains skeptical of/disinterested in gold. As well, he points out how gold stocks have not reacted much to the move in the PoG so far, but are starting to show signs of strength.
And IKN this weekend makes a long and detailed set of arguments that what happened last week was that the ETFs are no longer able to supply the constant demand for gold from jewelry fabricators as they have done since the pandemic hit, creating a new demand.
And later Saville pointed out that $GOLD now has an RSI over 80 on the daily chart, which generally happens near a multi-week top during the early or middle stages of an intermediate-term rally.
$EVKRF News: Grid Battery To Begin the 2024 Exploration Program on Its Clayton Valley Lithium Project
March 13, 2024
Link to news with images:
https://marketwirenews.com/news-releases/grid-battery-to-begin-the-2024-exploration-program-o-8421939950779981.html
$STLNF Billion Dollar Uranium Market Growing at a Solid Rate Along With Rising Adoption Strategies
https://globenewswire.com/news-release/2024/03/06/2841508/0/en/Billion-Dollar-Uranium-Market-Growing-at-a-Solid-Rate-Along-With-Rising-Adoption-Strategies.html
URANIUM UPDATE After a good correction uranium equities are running again. Continue to own $DNN $MAGFF $FCUUF $FDCFF $PENMF $ANLDF. Bought some $UUUU yesterday.
KRR, OGC
Australina gold/nickel miner Karora Resources aka KRR has been the focus of speculation regarding M&A for some time now, and for the first time we have heard from the company. They have confirmed they are in talks with fellow Australian miner Ramelius Resources regarding the possibility of a business combination.
On the surface, the combination makes sense, as Ramelius owns two gold mining hubs located in Western Australia not far from KRR's operations. And Ramelius has been on an acquisition spree, buying three other mining companies in the last several years.
The shame for me would be if any combination involved RMS buying out KRR without a condition being RMS listing in Canada, because I would have sell my my KRR shares prior to the combination due to the prohibitive fees for trading securities listed on the ASX.
Hence, I am hoping this goes nowhere so I an participate in what I see as the coming upside for KRR.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34596511
Oceanagold aka OGC released the latest drill results from the EG Vein, part of the Wharekirauponga deposit on its Waihi property on New Zealand's south Island. Wharekirauponga already has a Indicated Resource of 1.0M oz Au at a grade of 15.9 g/t, and generating assays like 61.9 g/t Au over 4.0m, 31.0 g/t Au over 5.2m, and 58.5 g/t Au over 2.5m will serve to enhance that Resource next time it is updated. Infill and step-out drilling on the EG Vein will resume in a few months once permits are received.
And speaking of permits, it seems New Zealand is moving in the opposite direction from countries like Chile, Colombia, and Mexico where permitting mining operations has been getting harder. Instead OGC highlights the recent introduction by the NZ government of the Fast Track Approvals Bill, which is designed to fast-track the approval process for development projects, including mining. OGC believes that the North Waihi project, which includes Wharekirauponga, is a strong candidate for this process.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34596518
IAU, HMLO, NTH
Nevada gold miner i-80 Gold aka IAU continues to pull remarkable assays from its McCoy-Cove development project. How do assays like 22.6 g/t Au over 19.1m, 32.9 g/t Au over 14. m and 23.5 g/t Au over 12.8m grab you?
(Apologies if I occasionally misname the property as McCovey-Cove. Willie McCovey was one of my favourite baseball players, and the new version of Candlestick Park has named the bay outside the wall in which the big bombers try to land their homer McCovey Cove.)
These results come from the latest three holes drilled into the Helen zone, which is expected to be the first source of ore from the mine. Mineralization remains open in multiple directions, and drilling will continue at Helen and other targets on the property. These and the drilling results to come will feed into a revised Resource Report and PFBS expected before the end of the year.
The combined impact of this NR but probably more the increase in the price of gold appears to have broken IAU out of the trading range around the $1.80 price of the recent PP.. With the constant flow of news to come, I expect the share price recovery will continue, as long as the PoG cooperates. My personal target for IAU is between $4 and $5, assuming they don't get bought out first..
https://www.siliconinvestor.com/readmsg.aspx?msgid=34594077
In response to this NR, Scotia released a new analyst report which called the impact Positive but maintained IAU at Sector Outperform with a target of $4.
Hemlo Explorers aka HMLO released the initial drill results from its Plc gold prospect in Ontario. The exploration programme is being conducted by ABX, which can earn up to an 80% interest in the project by meeting a number of terms, including delivering a PFBS within six years. Notably, Barrick was required to spend $1M on exploration within a year of signing the JV agreement, but have already spent $4.6M 16 months in.
The drilling itself targeted 4 different areas on the property and encountered at least decent gold grades in each of them, plus other favourable geological indications. All these results were from holes drilled last fall, so it will be interesting to see if ABX can find enough during this year's exploration to maintain their interest.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34594087
Nord Precious Metals aka NTH (recently renamed from Canada Silver Cobalt Works aka CCW) has been poking around their Castle East property for silver and cobalt, sometimes successfully, but last year surface exploration revealed what they are now calling the Gowganda Gold Camp on top of the Castle East silver deposit. Now we hear the single hole completed into Gowganda so far has revealed a 9m wide gold zone, including a 0.58m interval grading over 3 g/t Au. The NTH geologists now think the Archean gold comes from a separate minerlaizating event than Castle East, and may extend to district sale.
We'll see if the pending assays back that up.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34595132
$EVKRF News: Grid Battery Metals Files NI 43-101 Technical Report on its Clayton Valley Lithium Project in Nevada
Link: https://finance.yahoo.com/news/grid-battery-metals-files-ni-123000689.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr
$EVKRF Update: IEA to Launch Security Program for Minerals Critical to Energy Sector “The International Energy Agency is launching a program to secure the supply of minerals critical to energy security, as demand rises fast while manufacturing remains in the hands of a few key producers, its executive director said on Tuesday.”
IEA to Launch Security Program for Minerals Critical to Energy Sector
— Grid Battery Metals Inc (@GRIDBattery) March 5, 2024
“The International Energy Agency is launching a program to secure the supply of minerals critical to energy security, as demand rises fast while manufacturing remains in the hands of a few key producers, its…
SNAG, KDK, ODV, WM, MAI
After a period where they expanded to other metals and jurisdictions, last year this company changed their name from Alianza Minign to Silver North Resources aka SNAG and changed their focus back to their silver prospects in Yukon Territory. Now we get a first look at what this re-focus really means with a NR detailing their plans for 2024.
The review starts off by telling us they are actively trying to sell most of the properties they accumulated, or are just letting the leases lapse. Apparently they are still looking for partners to advance of few of the gold and copper prospects in Colorado, but otherwise are focused on the Tim and Haldane silver prospects in Yukon.
Haldane is located in the Keno Hill district, which has been booming ever since Hecla bought the Keno Hill mining complex. Haldane is located 25 km from that mine and the properties share a boundary, so clearly SNAG hopes to eventually sell out to or work with Hecla on the property. In the meantime, they have designed a six hole drill programme to test several recent discoveries, and also expect to carry outgeophysics and trenching on other prospects on Haldane.
The Tim property is located further south in the Silvertip-Midway District, and is currently under option to Coeur, who run the Silvertip mine located less than 20 km south of Tim. Previous exploration has revealed the potential for the property to host Ag/Pb/Zn CRD deposits similar to those being mined at Silvertip. Exploration will resume in June; expect more details to be announced in the coming months.
I like the way SNAG has refocused, but only time will tell if it reaps benefits for shareholders.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34589873
Kodiak Copper aka KDK, which is exploring the MPD property in south central BC for large Cu/Au prophyries, released a NR about their adoption of AI technology to assist in exploration and drill targeting. According to KDK, so far the software has not only identified already known targets but new ones which will be followed up in due course. The use of this technology seems like a prudent move, given the sheer number of targets on MPD plus the huge volume of historical data that needs to be analyzed, but only time will tell if it is more than a passing trend.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34592647
Osisko Development aka ODV announced they have secured a $50M loan to drive a 1.2 km drift and extract a 10kt bulk sample at its Barkerville gold mine in BC. It feels like this saga has been going on since the first discovery of gold in Barkerville in 1858. Not so, but it has been almost five years since ODV acquired Barkerville Gold Mines aka BGM, which had spent over a decade and not one but two 10 for 1 share rollbacks trying to develop this mine before the acquisition by ODV.
What concerns me most about this loan is that it is supposed to be repaid in full within a year, including hefty interest, but they can't even start physical work on the drift until receiving permits, which are anticipated to arrive in Q2. This isn't Mexico or Chile, so the permits may well arrive on time, but that is still a very quick turnaround to build a drift that long plus extract and process the ore to get the money to repay the loan. The clock is ticking....
BTW, my existing notes from previous ODV NRs had the permits expected to arrive in Q1.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34592764
Quebec gold explorer/developer Wallbridge Mining aka WM announced the start of a drill programme at their Martiniere property, located near their flagship Fenelon property on the Fenelon-Detour Gold trend. The drilling will be conducted in two phases, in spring and fall, and is designed to expand and upgrade the current resource as well as to extract material and data for the combined Fenelon/Martiniere PEA, which is underway but not expected to be completed until early 2026.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34592784
Here's a link to a really informative 37 minute interview with Doug Ramshaw, CEO of Mexican gold miner/developer Minera Alamos aka MAI. Included are some good insights into the current politics of mining in Mexico.
$SRCGF News: Spruce Ridge Completes Oregon Nickel Assets Acquisition with RAB Capital
Toronto, Ontario –TheNewswire -March 1, 2024 – Spruce Ridge Resources Ltd.(“Spruce Ridge” or the “Company”) (TSXV:SHL),(OTC:SRCGF) is pleased to announce that further to its press release dated November 16, 2023, the Company has completed its acquisition (the “Transaction”) with RAB Capital Holdings Limited (“RAB Capital”) of all the issued and outstanding securities of RFN Holdings Limited (“RFN”), which is the holder of an 80% interest in Homeland Nickel Corporation (“Homeland Nickel”). Spruce Ridge now owns 80% of Homeland Nickel, which owns the Cleopatra and Red Flat nickel laterite deposits in southwest Oregon (the “Properties”), both of which host historical resources (further described in the Company’s news release of November 16, 2023), as well as an interest in some secondary nickel laterite deposits in the vicinity of the Properties (the “Deposits”). The Company’s website is being updated to include the Properties and a new slide presentation will be uploaded soon.
Commenting on the completion of the acquisition, President and CEO Steve Balch stated that, “With the acquisition now behind us, it's time to apply for permits so that we can start exploring. We believe there is substantial resource upside on both properties that we can realize by drilling deeper. Cleopatra contains an area of 949 acres with an average nickel grade of 1.12%. Cleopatra overall has only been explored to an average depth of 8-12 feet. Nickel grades appear to increase with depth, and laterite thickness could exceed 50 feet in some areas. The basement rocks have yet to be intersected on the property. Our proposed exploration program would focus first on Cleopatra with a series of up to 70 drillholes completed to a depth of 50 feet located with a drill spacing of 600 feet by 1200 feet and focused on the northeast one-third of the property”.
Pursuant to the terms of the Transaction, the Company acquired a 100% interest in RFN by:
making a $50,000 cash payment to RAB Capital, which was previously completed;
transferring to RAB Capital 2,000,000 common shares in the capital of Canada Nickel Company Inc. held by Spruce;
paying $450,000, which was settled against RAB Capital’s subscription for an aggregate $450,000 in the non-brokered financing closed on December 21, 2023 (further described in the Company’s news release of December 21, 2023);
issuing to RAB Capital an aggregate of 10,000,000 common shares in the capital of Spruce, such shares beingsubject to a four month and one day statutory hold period
granting to RAB Capital a 2.0% net smelter returns (NSR”) on the Properties and the Deposits, with an option to repurchase 50% of each NSR for $2,000,000;
reimbursing RAB Capital a total of US$37,957 for the cost of tenement renewals on the Properties paid for the year 2023/24 and a total of US$22,500 for the cost of preparation of audited financial statements;
assuming a pre-existing intercorporate loan between RAB Capital and HLN totaling approximately US$36.74 million, which is now owed to Spruce and the Company has the option to cancel it entirely or to use it in the future for tax purposes;
agreeing to pay funds to RAB Capital upon reaching certain milestones, as follows: $1,000,000 cash payment upon filing a technical report on one or both of the Propertieswhere a nickel resource is re-evaluated (or restated) to a standardin accordance with the requirements ofNational Instrument 43-101 – Standards of Disclosure for Mineral Properties(NI 43-101”); $2,000,000 cash payment upon completion of a NI 43-101 preliminary economic assessment on one or both of the Properties; $2,000,000 cash payment upon completion of a NI 43-101 feasibility study on one or both of the Properties; and $10,000,000 cash payment upon announcement of a decision to commence construction on one or both of the Properties.
In connection with the Transaction, the Company conducted a title review of the Properties and although there were certain limitations in the review resulting from a data breach in the Curry County Recorder’s Office in Oregon, the Company is satisfied with the results of the title review.
Qualified Person
Stephen J. Balch, P.Geo. (ON), the Company’s President and CEO and a “Qualified Person” under National Instrument 43-101, has reviewed and approved the technical content of this press release.
About Spruce Ridge
Spruce Ridge is a Canadian-based mineral exploration company focused on critical metal resources with nickel projects in Oregon, United States and copper projects in Newfoundland, Canada. The Company also holds a significant portfolio of mining securities including 3.6 million shares of Canada Nickel Company Inc. (TSX-V:CNC), 10.0 million shares of Noble Mineral Exploration Inc. (TSX-V:NOB), 15.0 million shares of Benton Resources Inc. (TSX-V:BEX) and 2.5 million shares of Magna Terra Minerals Inc. (TSX-V:MTT). Spruce’s common shares trade on the TSX Venture Exchange under the symbol “SHL”. More detailed information can be found on the Company’s website at:
http://www.spruceridgeresources.com
Cautionary Statement
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains statements that constitute “forward-looking statements”. Forward-looking statements are statements that are not historical facts and include, but are not limited to, disclosure regarding possible events, that are based on assumptions and courses of action, and in certain cases, can be identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur, or the negative forms of any of these words and other similar expressions. Forward-looking statements include statements related to future plans for the Company, and other forward-looking information. Forward-looking statements are based on various assumptions including with respect to the anticipated actions of securities regulators, stock exchanges, and government entities, management plans and timelines, as well as results of operations, performance, business prospects and opportunities. Although the forward-looking statements contained in this news release are based upon what the management of the Company believes are reasonable assumptions on the date of this news release, such assumptions may prove to be incorrect. Forward-looking statements involve known and unknown risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed in the forward-looking statements, including, but not limited to: an inability to develop and successfully implement exploration strategies; general business, economic, competitive, political and social uncertainties; the lack of available capital; impact of the evolving situation in Ukraine on the business of the Company; and other risks detailed from time-to-time in the Company’s ongoing filings with securities regulatory authorities, which filings can be found at www.sedarplus.ca. The Company cannot assure readers that actual results will be consistent with theseforward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release. These forward-looking statements are made as of the date of this news release and the Company disclaims any intent or obligation to update any forward-looking statement, whether because of new information, future events or otherwise, unless otherwise required by law.
Contact
Stephen Balch, President & CEO
Phone: 905.407.9586
Email: steve@beci.ca
ARK, rri, EDV, RPEEE
Kazakhstan explorer Arras Minerals aka ARK announced the acquisition of a new project called Tay. It covers 188 sq km and is located 28 km from the producing Bozshakol Cu/Au mine. It is a blind target, but ARK was able to obtain Soviet-era geophysics on a 6.5 km by 2.1 km target which looks almost identical to the geophysics done at Bozshakol at the same time. Note that this new property is not subject to the exploration alliance with Teck, and that the cover over the target is less than 40m deep. A highway, rail line, high voltage power, and mining towns are located nearby.
Exploration plans will be announced shortly.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34587524
Prospect developer Riverside Resources aka RRI continues to beaver away on its various properties in Mexico, BC, and Ontario. Their latest PR concerns exploration on their Pichette Au prospect in Ontario.
RRI thinks they might really be onto something in the PAT zone, where a sampling programme has uncovered gold values up to 21 g/t within a Banded Iron Formation which can traced over a distance of kilometres. Using geophysics, RRI has developed a complex model of the multiple mineralization events at PAT which could mean it is analogous to the nearby Grrenstone Mine, currently being built by Centerra Gold. I invite you to peruse the details at your leisure
There is no word on future exploration, but I expect further geophysics and sampling and then a drill programme. No doubt RRI is negotiating with potential partners.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34588757
FWIW. in the wake of the recent announcement by Endeavour Mining aka EDV of the wet commissioning of the BIOX expansion project at the Sabodala-Massaw gold mine in Senegal, Scotia issued a new analyst report. Citing particularly that BIOX opens up the processing of high grade refractory ore, they see the impact as Positive, but kept EDV at Sector Outperform with a target of $37.
No, RPEEE is not a stock symbol. Rather, it is the abbreviation for a new method of resource estimation that investors in mining stocks need to familiarize themselves with.
The link below is a decent introduction to the concept. At heart, it uses advanced software techniques to check whether mineralization is comprised of blocks of a shape and size that could be mined economically.
Here is a paragraph Tinka included in their latest PR which includes a Resource Estimate using RPEEE
"To satisfy RPEEE for an underground mining scenario, Tinka is reporting Mineral Resources within potentially mineable shapes (i.e., stopes) thereby demonstrating the spatial continuity of the mineralization. Where the potentially mineable volumes (i.e., stopes) contain smaller zones of mineralization with values below the stated cut-off, this lower grade material is included in the Mineral Resource estimate."
One hopes that the use of RPEE will lead to more economically reliable Resource and Reserve Estimates.
https://www.srk.com/en/publications/reasonable-prospects-for-eventual-economic-extraction-rpeee
$EVKRF News: Global Business Reports Magazine Profiles Grid Battery Metals in the Western USA Mining 2024 Issue
COQUITLAM, BC / ACCESSWIRE / February 29, 2024/ Grid Battery Metals Inc. (the "Company" or "Grid Battery") (TSXV:CELL)(OTCQB:EVKRF)(FRA:NMK2) announces that Global Business Reports, a respected industry news writer and editorial author, has profiled Grid Battery Metals Inc. in its latest issue of the Western USA Mining 2024, profiling active and successful mineral exploration companies in this region.
The interview and corporate profile can be found by accessing the following weblink, Global Business Reports, Western USA Mining 2024.
The article includes commentary by Grid's CEO Mr. Tim Fernback, a discussion of Grid's current lithium exploration programs in Nevada, its impressive corporate balance sheet and cash balance, and the company's overall focus for 2024.
About Global Business Reports
Headquartered in Singapore and with offices in Istanbul, Global Business Reports ("GBR") was established in 2001 in order to provide first-hand information for global business decision makers. In an age where cross boundary trade and investment are driving factors for businesses, information is crucial. Precise sectorial reports help companies understand and expand their markets, improve their sourcing chain, target their investments and discover the trends affecting their industry around the world.
GBR provides in-depth analyses and up-to-date insights into all aspects of the mining, energy, chemicals and life sciences industries globally. Our research includes face-to-face meetings with the main protagonists in the field to form an accurate picture of the actual situation on the ground.
The Western USA Mining 2024 Report looks at copper, lithium, uranium, rare earth, and other minerals are in-demand commodities and prevalent in Western USA. From northern Alaska to southern Arizona, the Western USA boasts rich reserves of these minerals. The world is in a race towards a more green and electrified future, and these metals have become a focal point in global discussion, being designated by many nations as "critical," resembling oil in terms of their geopolitical significance. Nations worldwide are after self-sufficiency and reducing reliance on foreign sources; the US is no exception.
With approximately 110 interviews conducted with government authorities, associations, and key C-level executives across the mining value chain, GBR's Western USA Mining 2024 report offers a comprehensive overview of the current state of the mining industry. This report aims to provide readers with on-the-ground insights, allowing them to understand how the past has shaped today's US mining industry and what industry leaders hope for the future.
About Grid Battery Metals Inc.
Grid Battery Metals Inc. is a Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The Company's maintains a focus on exploration for high value battery metals required for the electric vehicle (EV) market. www.gridbatterymetals.com.
About Texas Springs Property
The Company owns a 100% interest in the Texas Spring Property which consists of mineral lode claims located in Elko County, Nevada. The Property is in the Granite Range southeast of Jackpot, Nevada, about 73 km north-northeast of Wells, Nevada. The target is a lithium clay deposit in volcanic tuff and tuffaceous sediments of the Humbolt Formation. A Phase 1 exploration program at the Texas Springs Property (Fall 2023) yielded results with average lithium grades of 2010 ppm, applying a 1,000 ppm cut-off, and up to 5,610 ppm Lithium.
The Texas Spring property adjoins the southern border of the Nevada North Lithium Project - owned by Surge Battery Metals Inc. ("Surge") (TSXV:NILI)(OTCQX:NILIF) and comprised of 725 mineral claims. Surge's first round of drilling identified strongly mineralized lithium bearing clays. The average lithium content within all near surface clay zones intersected in the 2022 drilling program, applying a 1000 ppm cut-off, was 3254 ppm. (Press release March 29, 2023). More recent results have shown higher grade lithium up to 8070 ppm on this property after initial drilling (Press release September 12, 2023). Our exploration results are on-trend with these results.
About Clayton Valley Lithium Project
The Company owns a 100% interest in 113 lithium lode and placer claims covering over 640 hectares in Clayton Valley. Clayton Valley is a down-dropped closed basin formed by the Miocene age Great Basin extension and is still active due to movement along the Walker Lane structural zone. As a result, the basin has preserved multiple layers of lithium bearing volcanic ash, resulting from multiple eruptive events over the past 6 million years including eruptions from the 700,000-year-old Long Valley Caldera system and related events. These ash layers are thought to contribute to the lithium brines extracted by Albemarle and are also likely involved in the formation of the exposed lithium rich clay deposits on the east side of Clayton Valley.
Volt Canyon Lithium Property
The Company owns a 100% interest in 80 placer claims covering approximately 635 hectares of alluvial sediments and clays located 122 km northeast of Tonopah, Nevada.
About the British Columbia, Nickel Projects
The Mount Sidney Williams Group consists of three claim blocks with a total area of 10,569 hectares in the area surrounding Mount Sidney Williams, both adjoining and near the Decar project of FPX Nickel Corp., located 100 kilometres northwest of Fort St. James, B.C., in the Omineca mining division. Metallic mineralization includes nickel, cobalt, and chromium. At least some of the nickel mineralization occurs as awaruite. The Mitchell Range Group area claim consists of one claim block covering 8,659 hectares with demonstrated metallic mineralization including nickel, cobalt, and chromium. Nickel cobalt mineralization has not been well explored, but the presence of awaruite has been documented.
On Behalf of the Board of Directors
"Tim Fernback"
Tim Fernback, President & CEO
Contact Information:
Email: info@gridbatterymetals.com
Phone: 604- 428-5690
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements. It should be noted that results from any adjacent property(s) are not an indication of what may be found on the Company's property(s).
SOURCE: Grid Battery Metals Inc.
IAU, KRR, MAI, TUO, SVB, EDV, RIO, BTO
It's become almost routine. Yes, Nevada miner i-80 Gold aka IAU has released yet another set of high grade results from its Ruby Hill development project. This time we hear about the final three holes of the recent drilling completed in the Hilltop set of skarn and CRD deposits, this time in the mostly recently discovered East Hilltop zone. How does 13.7% Zn, 0.6% Cu, & 17.5 g/t Ag over 57.8m including 21.6 % Zn, 1.9 % Cu, & 54.6 g/t Ag over 9.5m. strike your fancy? this hole is notable not only for the high grade over a long sequence, but also the first appearance of high grade copper in the Hilltop area.
The PR continues on through a useful summary of all the various deposits IAU has discovered over the two years it has been exploring Ruby Hill, but they remain coy about the identity of the potential development partner that funded this most recent drilling.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34584998
Last week we heard about the latest gold results from Karora Resources aka KRR's Beta Hunt mine in Australia. Now we hear about the nickel drilling results, and they are impressive.
This drilling was in the 50C Nickel zone, which will be accessed from the drive they constructed last year. With intercepts like 8.2% Ni over 5.1m, including 13.7% Ni over 2.6m, plus 12.0% Ni over 2.9m, these drill results should contribute to a substantial increase in the Gamma Mineral Resource, which will be updated later this year. 50C remain open along strike and drilling is ongoing.
Note that KRR has the facilities to process nickel ore on site
https://www.siliconinvestor.com/readmsg.aspx?msgid=34585077
If you are interested in Mexican gold miner/developer Minera Alamos aka MAI, here's an interview with the CEO where he first discusses the details of the 'Plan B' they announced for Santana last week, plus some useful perspective on the current political state of mining in Mexico. Perhaps most importantly, he makes clear that if the permit amendment does come through, which could happen at any time, Plan B is being designed so that they can quickly flip back to Plan A. As well, we learn that Plan B, to produce 20k oz Au over 12 months from known mineralization, could start up as early as next month.
https://open.spotify.com/episode/1uTQuU2lLVc7jjaP3lQz19?si=f5JiYQB3QR2vdeebvVmskA
I have no idea if it will make any difference or not, but some of you might be interested in knowing that BC explorer Teuton Resources aka TUO is now trading on the OTCBB using the symbol TEUTF.
https://thenewswire.com/press-releases/1L5PF2XGD-teuton-resources-trades-on-the-otcqb-in-the-usa-and-is-dtc-eligible-ticker-symbol-teutf.html
Silver Bull Resources aka SVB provided an update on its arbitration claim against Mexico regarding its Sierra Mojada property in Coahuilla, Mexico. SVB has been unable to access the property for years thanks to an illegal blockade which Mexican authorities have refused to take down.
Hence, SVB has filed a claim for $178M in compensation under something called NAFTA Legacy proceedings. A three person arbitration panel has just held its first hearing, SVB is scheduled to file its submission in May preparatory to the actual Arbitration hearing scheduled for October 2025. Given the large amount of money involved, I expected this process to be extended to its fullest possible length by whoever loses.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34586201
We already knew this was going to be a pivotal year for west African gold miner EDV; in the wake of having to fire the CEO, they need to make up for it by smoothly bringing on line the new mines that have been developing.
Today we get an update on the first of these, the Sabodala-Massawa mine in Senegal where production is being expanded using the BIOX process. Construction is now 91% complete, with wet commissioning underway and the first gold pour expected in May. As well, an FBS for Phase 2 expansion is underway and is expected to be completed by year end. EDV is projecting 2024 production of up to 400koz at Sabodala-Massawa at an industry leading AISC of less than $850/oz, with costs expected to continue to decrease in coming years.
So far this expansion project has been on time and under budget. If they can maintain that status with their other growth initiatives they should regain the favour of the market.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34586212
The IKN newsletter brings us a nice tidbit of gold developer Rio2 aka RIO, pointing out that WPM's recent quarterly update includes RIO's Fenix mine, currently under construction, as a future source of gold for WPM, thereby implying that WPM remains happy to be contributing funding to the development of Fenix.
Fwiw, in the wake of B2Gold aka BTO's Q4 results release, BMO issued a new analyst report. Citing Q4 production as in-line with lower cash costs, BTO having enough liquidity to get them through 2024, and construction of the Goose project in Nunavut remaining on track for 1st production Q1 2025, BMO kept BTO at Outperform with a target of $6.50.
There is a whole family of Osisko-related stocks, also including OM.
ODV used to be Barkerville Gold, notorious for having done not one but two 10 for one rollbacks without accomplishing much. I guess, given the way ODV is operating, the leopard has changed its spots but nothing else. I hope one of those exploration holes at Tintic hits and gives me a chance to get out of the warrants without taking too much of a loss, but the odds are against me, particularly due to the overhang from there being so many bagholders who bought in at higher prices and are similarly looking for their first change to get out.
LC
$EVKRF Update: Grid’s immediate neighbour to the north of its Texas Spring Lithium Property, Surge Battery Metals, reports their North Nevada Lithium Project is a significant lithium deposit and one of the highest-grade lithium clay deposits worldwide.
Grid’s immediate neighbour to the north of its Texas Spring Lithium Property, Surge Battery Metals, reports their North Nevada Lithium Project is a significant lithium deposit and one of the highest-grade lithium clay deposits worldwide.
— Grid Battery Metals Inc (@GRIDBattery) February 26, 2024
Click on the link to read their latest…
Hey Bob, hope all is well!
I started a Uranium 2024 over at Mike's, could use a boost other than me
https://forum.mexicomike.ca/viewtopic.php?f=33&t=18523
Love to hear from you brother!
Steel
Didn't know there was an ODV and an OSK.to.
IAU, KDK, BTO, ARK, OGC x 2, ODV x 2, KRR, MAI
Must be PDAC time -- everyone decided to put out NRs at once!
Given the low offering price, it is no surprise that Nevada gold miner i-80 Gold aka IAU have closed its most recent PP heavily oversubscribed. They will end up with more than $23M, which depending on the spend so far this quarter, might leave them with more than $100M in their cash stash. Read the PR itself a list of insiders who took down over 160k of the PP shares, with CEO Evan Downie alone grabbing 110k.
Given where the current share price is sitting as a result of the PP, since it does not include warrants you can essentially participate in the PP itself by buying shares on the open market. That is what I have been doing of late.
https://ca.finance.yahoo.com/news/80-gold-announces-closing-oversubscribed-110000950.html
Kodiak Copper aka KDK released the final results from 2023 regional exploration on its MPD property in south central BC, and they only add to its prospectivity. They were able to identify five new targets at MPD, raising the total number of 24 targets, of which only eight have been drilled so far, with results still pending for two of those. MPD is looking more and more like it has district potential, with mineralization identified so far across 20 km containing a number of porphyries.
Two of the new targets are considered drill ready. At Blue, where a sample yielded h 3.19% Cu, 0.21 g/t Au, and 41 g/t Ag, geophysics has identified an anomaly that extends over 700m deep from surface, while soil testing has identified an anomaly more than a kilometre wide. At Celeste, where a grab sample yielded 0.69% Cu, 0.68 g/t Au and 4.5 g/t, geophysics and geochemistry has revealed a large target only 600m from the Gate Zone drilled out last year. Expect exploration drilling this year and these two and other targets.
Even though KDK has identified a district scale system of porphyries, the stock continues to be unloved by the market. The IKN newsletter last week gives a bit of perspective, reminding us how Ross Beatty made himself rich by accumulating similar large low grade porphyries in South America when no one else wanted them. I expect something similar to happen with the BC porphyry explorers in BC as the copper shortage generates more bites. To put it another way, I will continue to accumulate KDK shares on the dips.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34579084
Thanks to the recent developments regarding B2Gold aka BTO, there is little chance I am going to buy in any time soon, so I am going to cut back on my coverage. I will still mention when I come across a new analyst report. In the meantime, here's a link to their latest PR concerning Q4 financial results
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580475
FWIW, in response TD issued a new analyst report calling the impact of the PR Slightly Positive, citing in line production with costs slightly below guidance, They kept BTO at Action List Buy (their top rating) with a target of $7.
Arras Minerals aka ARK brings us news regarding their Elmes prospect in Kazakhstan (which is not part of their exploration alliance with Teck). Last month we heard about the results of re-assaying historical drill core, and now we hear about the first 60% of the 31k soil samples ARK collected last year on Elmes, centred around the Berezski target, and it looks promising.
ARK has been able to confirm an 8.8km long Cu anomaly, and even more importantly, a 2.8 km x 1.6 km Mo 'bulls-eye' anomaly, which looks to be the centre of a very large poryphyry that reaches surface. Since it has not been drilled to depth and its outer extent is below cover, it will take drilling to confirm its extent
We will hear about the rest of the samples collected last year in about a month, and then I expect we will hear about a drill programme to come.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580492
Oceanagold aka OGC reported its Q4 and year end results, and at best they were mixed. In Q4 the Halle mine continued to increase output as more underground production came on line, while Didipio in the Philippines did very well and the New Zealand operations well enough that with 2023 production of 477,313 oz Au and 14,172t Cu, OGC managed to sneak just in the the low end of 2024 guidance, though they missed on costs.
In 2024 they did achieve $1b in revenue for the first time, and although financially Q4 was not great thanks to non-cash writedowns, they did well enough for the quarter to increase their cash stash to $61.7M. If they can come anywhere near 2024 guidance of 510-570k oz Au and 12-14kt Cu at a cash cost of $875-975/oz Au, I expect them to grow that substantially while also paying down debt.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580514
OGC also released their annual Mineral Reserves and Resource update. Although they were able to increase existing Reserves at some locations and declare new Reserves at others, net of mining depletion their overall Proven and Probable Reserves decreased slightly in 2023. Meanwhile their Measured and Indicated Resources also decreased slightly in 2023, while the much smaller Inferred Resources decreased substantially. They still have many years of mine life left, and a number of exploration opportunities, but if the decline continues it will have to be addressed at some point.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580574
FWIW, in response to the two OGC Prs, BMO issued a new analyst report calling the impact Mixed. Noting the lower guidance for 2024, BMO kept OGC at Outperform but lowered their target from $4.25-$3.75.
Osisko Development aka ODV issued a rather odd PR with the sole mission of warning us that their 2023 annual results are going to look terrible because they will include a non-cash $80-120M writedown on the carrying value of the Trixie gold mine. To me this confirms that they are poorly-run company, and at this point I wish I had not bought even small amounts of ODV warrants, which I expect will expire worthless.
https://ca.finance.yahoo.com/news/osisko-development-provides-upcoming-end-120000779.html
ODV also released the remaining assays from drilling at the Trixie mine, located on the Tintic property in Utah. They continue to intersect narrow high grade veins. They also released the results of an extensive underground chip sampling prgramme at Trixie, which similarly found a number of narrow high grade veins.
Expect a new Resource Estimate for Trixie to be released next month. We are also still waiting for the assays from a hole that was aimed at finding a porphyry below Trixie, which if it hits big could materially change the Tintic project. Likewise for the hole underway targeting the Big Hill Cu/Au/Mo target.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580603
Australian gold miner Karora Resources aka KRR released the latest results from ongoing drilling at its Beta Hunt Au/Ni mine.
In the Fletcher zone, where they hope to find enough mineralization to declare an initial resource and start mining by the end of the year, drilling at the north end of Fletcher found significant results like 3.8 g/t over 33.0m and 34.6 g/t over 2.0m, with the drill now back in the central portion of the deposit doing infill drilling.
In the Larkin zone, infill drilling delivered assays like 6.7 g/t over 9.4m and 13.7 g/t over 3.5m. Again, these results will be integrated into an updated Resource Estimate and eventual production, as KRR works to achieve its goal of reaching an annualized 2.0 Mtpa of ore from Beta Hunt by the end of 2024,
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580630
Mexican gold miner Minera Alamos aka MAI had a tough first year for its Santana Au mine in Sinaloa, Mexico. First, a terrible drought delayed the initial increase in production, and then the Mexican federal government started dragging its feet on granting the permits to expand the hep leach area and hence production. But a junior mine developer has to be nimble, and the very experienced management at MAI has come up with a new plan to increase production regardless by using the existing heap leaches to process higher grade ore from the Nicho Norte and Nicho Main zones currently being stockpiled.
They are currently in negotiation with contractors to carry out the necessary work and will release more details in the next few months. And of course, the permit for heap leach expansion could come at any moment, particularly if outgoing President AMLO's party does poorly in the upcoming elections.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34580656
$EVKRF: Grid Battery Metals Provides Update for the Proposed Spin-out and TSX Venture listing of its subsidiary, AC/DC Battery Metals Inc.
Click here for news with images:
https://www.caledonianrecord.com/news/national/grid-battery-metals-provides-update-for-the-proposed-spin-out-and-tsx-venture-listing-of/article_c2694793-002c-5417-bf0c-25e1c88a4722.html
TUO, BTO, SOLG
Before going on to discuss the latest PR from Teuton Resources aka TUO, it is worth considering its history with the Treaty Creek property in BC Golden Triangle. TUO originally staked the property in 1985. After a series of transaction, both TUO and AMK ended up with carried 20% interests in the property, with TUD owning the rest and assuming the position of operator. I included this brief review to show how long the mine finding and building process can take. It is not a field for the impatient investor!
(Note also that TUO holds NSRs over most if not all of the deposits that look like they might be economic.)
Now on to TUO's latest PR, which concerns the release of an updated Resource Report for the Treaty Creek property. After last year's successful drilling campaign, it is not surprise that the already enormous project has grown substantially,
First off, the Indicated Mineral Resource increased by 19% AuEq, consisting of a 16% increase in Au, a 14% increase in Ag, and a 32% increase in Cu. The Indicated Resource is now 27.87M oz AuEq within 730.20Mt of ore at a grade of 1.19 g/t AuEq, comprised of 21.66M oz Au @ 0.92 g/t, 128.73M oz Ag at 5.48 g/t, and 2.87B lbs of Cu at 0.18%. Meanwhile, the Inferred Resource is now is now 6.03M oz AuEq within 149.61Mt @ 1.25 g/t AuEq, comprised of 4.88M oz Au @ 1.01 g/t, 28.97M oz Ag @ 6.02 g/t, and 503.23M lbs of Cu at 0.15%.
If you are interested in Treaty Creek, the NR includes a detailed breakdown of which resources are located in which domain, and you should also check out the new diagram which more clearly lays out the various deposits and their interrelationship.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34577760
FWIW, in response to last week's murder of contractor's working at B2Gold aka BTO's Fekola mine in Mali, TD issued a new analyst report calling the impact Negative but kept them at their highest rating Action List Buy, with a target of $7. Meanwhile, Scotia also issued a new analyst report, likewise calling the impact Negative but also maintaining BTO at Sector Outperform with a target of $6.50.
Given that Fekola accounts for almost half of BTO's NAV, it is this kind of security concern and country risk that keeps me from buying back into BTO in spite of what it otherwise a compelling valuation. Mind you, if the share price continues to drop I might not be able to resist the temptation. $2 would definitely be a compelling price for me to buy if it gets there.
As a reminder of how devastating country risk can be, I checked out Ecuadorian developer Solgold aka SOLG's share price for the first time in a while. I sold my shares a few years ago when things starting looking bad for mining in Ecuador, and even though SOLG has done a lot of work that should have increased the value of their flagship property Cascabel, including releasing an updated PFBS last week, the current share price is about 20% what I sold my shares for (at a loss).
Saville points out how ugly it has been for gold stocks of late. HUI is testing support set last October. and GDXJ has broken support and is not far above its own October low. He thinks it is certainly possible that HUI tests its 2022 low around 175 before a rebound begins.
And the IKN newsletter brings us a long analysis of how misleading last week's headlines about outgoing president of Mexico AMLO attempt to ban the construction of open pit mines on NEW conncessions (not existing ones) is certain to fail. Move along folks, nothing to see here (other than to cause the naive and uninformed to avoid investing in companies mining in Mexico).
LC
$EVKRF: Blue Skies Ahead for EVs and the Energy Metals That Power Them:
Blue Skies Ahead for EVs and the Energy Metals That Power Them
— Grid Battery Metals Inc (@GRIDBattery) February 20, 2024
Click on the link to read the full article.https://t.co/WRMLsaIiFs$CELL $EVKRF #Lithium #ElectricVehicles #BatteryMetals #Nevada
Thanks for keeping an eye on TUO
IAU, CKG, TUO
Nevada gold miner i-80 Gold aka IAU released another set of high grade drill results comprising the rest of the 2013 drilling completed in the Helen Zone of the McCoy-Cove property, which is expected to be the first area mined. Cove is already known to be one of the highest grade gold development projects in North America. a reputation further enhanced by intercepts like 14.4 g/t Au over 20.2m, 12.7 g/t Au over 24.4m, and 14.3 g/t Au over 8.0m announced in this PR.
Mineralization at Cove remains open in multiple directions, and I am looking forward to what they find with the latest drilling aimed at Helen and the Gap zone. Another interested part of this PR reminds us of the many barely tested exploration targets on the 15km by 10km McCoy-Cove property which will be investigated in due course.
Unfortunately these stellar drill results haven't kept the share price from crashing through support. The combination of the recently announced PP and the terrible market for junior miners has really hit the stock price. I just might have to buy some more.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34569648
Mexican explorer/developer Chesapeake Gold aka CKG brings us news of their 'other' project, Lucy, located Sinaloa, where a drill prgramme last year discovered a 500m gold-bearing skarn corridor. Now we hear that a programme of metallurgical testing has yielded excellent recoveries of up to 97% of contained gold. CKG also announced that a new programme of drilling and trenching is underway to extend the skarn and investigate other targets on the property.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34569669
Teuton Resources aka TUO's JV partner Tudor Gold released a new PR which was primarily an announcement of TUD establishing an 'at-the-market' equity programme -- glad it's TUD and not TUO doing this, as I do not like these programmes which essentially allow a company to spew out more shares at the prevailing market price whenever they feel like it -- but also contains a bit of sugar to make the medicine go down in the form of a review of 2023 drilling at the JV partners' Treaty Creek project in BC's Golden Triangle.
Among the accomplishments:
-extending Goldstone 250-350m to the north and northeast;
-established a number of higher grade gold-bearing areas both within and outside the Goldstorm MRE;
-established some areas with higher copper grades;
-found an area called SG-1 with much higher gold grades
-Goldstorm now measures 2400m in length, 1300m in width, and 1500m in depth, and it remains open to the south, north, northeast and at depth;
-and the new PSZ zone with very high gold grades was discovered between Goldstorm and the Iron Cap deposit 5 km away.
TUD also confirmed a new Resource Estimate for Goldstorm will be released Q1.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34570943
$EVKRF News: Grid Battery Metals Team Provides Nevada Exploration Update for 2024
Click here for news with images:
https://finance.yahoo.com/news/grid-battery-metals-team-provides-123000945.html
IAU x 2, WM, QRC, KTN, TECT, OGC
Today we got two PRs from Nevada gold miner i-80 Gold aka IAU. One of good news, the other not so much.
The good news: more high grade drilling results from the South Pacific Zone on their Granite Creek property, which is expected to become the chief source of ore once the decline is completed. Drill results like 28.1 g/t Au over 4.4m, 10.6 g/t Au over 9.4m, & 13.6 g/t Au over 5.2m indicate the SPZ should become a major money-spinner Note the the SPZ remains open at depth and to the north.
IAU plans to begin production from the SPZ in the coming months, first with test mining, then more definition drilling, then an updated Feasability Study, during which time a Mining Plan will also be developed.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34563957
The not so good news is that IAU also announced yet another PP, again priced below market at $1.80. Clearly many moneyed folks want to chuck money at them, but with mining income already starting to ramp up, do they really need to add more dilution?
https://www.i80gold.com/i-80-gold-announces-non-brokered-private-placement-of-up-to-c18-million/
In response to the Granite Creek PR -- they don't mention the latest PP, which was announced later in the day -- Scotia issued a new analyst report on IAU calling the Granite Creek PR Positive, while maintaining IAU at Sector Outperform with a target of $4.
Wallbridge Resources aka WM released the results of its fall drilling programme in and around its flagship Fenelon gold project in Quebec. 14 step-out holes in the Area 51 zone outside the current MRE found significant intercepts like 17.05 g/t Au over 2.75m and 4.36 g/t Au over 7.50m, including17.55 g/t Au over 1.50m, will serve to increase the numbers at the next updated Resource Estimate for Fenelon.
In addition, exploration drilling at F1 (1km north of the MRE) and F5 (2.5 km East) yielded assays like 8.71 g/t Au over 0.60m and 0.52 g/t Au over 18.45m indicate potential for further expanding resources.
Drilling has resumed at Fenelon, aimed at further defining and upgrading near-surface Au which can improve Fenelon's economics over the recent PEA.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34563873
There has been an interesting development regarding Queens Road Capital aka QRC. It was originally set up by Australian mining billionaire Andrew Forrest and a few of his rich friends as a vehicle to generate interest from mining ventures via the placement of convertible debentures. Now we hear that Wyloo Metals, a private mining company own by Forrest, has reached an agreement to sell all the almost 108M shares of WRC it owns to a group of non-Canadian private investors.
Fortunately in terms of maintaining orderly trading, the sale will be carried out off-market. It is expected to close within two weeks QRC is pitching this transaction as removing a significant overhang on the shares. We shall see, given we know nothing about the new owners of the shares or their intentions.
https://ca.finance.yahoo.com/news/queens-road-capital-announces-sale-120000883.html
Last year we got news that Kootenday Silver aka KTN was going to sell one of its non-core Mexican properties to company called Fabled Silver Gold. Well, the 'fable' part is accurate; today FCO announced they were unable to raise the necessary funds are are terminating the transaction.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34563849
Bloddy drill plays....
When they hit, you can do really well holding their shares, but you can lose it all if they miss. And sometimes even when they hit, if what they find doesn't meet hyped-up expectations, you get a cratered share price, and that's what happened today to Tectonic Metals aka TECT.
If you didn't know about the inflated expectations, you would be pretty happy that all 19 holes on TECT's initial drill campaign on the Chicken Mountain target on their Flat prospect in Alaska hit gold, and that 12 of them ended in minerlaization. And you'd be glad that Chicken Mountain has been delineated to a strike length of 1.8KM and to a depth of 300m while remaining open in all direction. And you'd be happy that Chicken Mountain is looking more and more like a viable open pit mine analogous to the nearby Fort Knox mine. And you'd be glad that the oxidized ore runs deep enough that all 19 holes had low sulphur values.
Some of the intervals are over 400m long averaging around 0.4 g/t Au, and there were many high grade intervals like 36.40m of 1.22 g/t Au and 37.32m at 1.02 g/t Au, but this again clearly wasn't enough to meet inflated expectations. A knowledgeable friend who has followed the company closely expects them to do rollback and a PP before they resume exploration this summer. That would not surprise me, but I sure hope the share price recovers before any PP. In the meantime, they will continue metallurgical testing and re-assaying of historical drill core.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34564823
FWIW, in the wake of Friday's announcement by Oceanagold aka OGC of an IPO on the Philippine Stick Exchange for part of a subsidiary that holds the Didipio Au/Cu mine, Scotia issued a new analyst report calling the move Positive, citing the new Resource Report and Mine Plan for Didpio, which aims to lead to an increase in production which will be paid for by the proceeds of the IPO. Scotia kept OGC at Sector Outperform with a target of $4.50.
FWIW, TD put out a new analyst report regarding their outlook on PMs. Citing continued ncear-record central bank buying, that over the last 40 years the PoG has gained an average of 34% during cycles of US interest rate easing, and that margins are expected to grow as the increase in the Pog exceeds the growth in costs of mining, they are maintaining an Overweight recommendation on the sector.
The IKN newsletter points out that e GLD Inventory/price ratio hit a brand new all-time low. Given that GLD is the preferred instrument for Wall Street to invest in gold, their disdain for the shiny metal at this point becomes ever more evident. Given the amount of money they control compared to the tiny size of the entire PM sector, a positive change in their attitude backed up by buying GLD could move the PoG north in a hurry.
Saville also commented on this unusual divergence between the rise in the PoG vs. the continued decrease in the amount of gold held by ETFs like GLD. He believes that this divergence will eventually move the PoG to the upside. He also comments on another unusual development, gold stocks underperforming the PoG over an extended period, and again expects this to resolve with a rebound in PM stocks.
TUO, OGC
Tudor Resources aka TUO and its JV partners have reported some important news regarding their Treaty Creek project in BC's Golden Triangle. All the drill results from 2023 have already been released, but further analysis of the results have led to new revelations.
The first concerns the discovery of a high grade Au beccia within the Goldstorm deposit. These types of higher grade areas can make a large difference to the economics of the overall project, so following up the 2002 discovery hole for the newly-defined SC-1 zone, which yielded 20.86 g/t AuEq over 4.5m within a 25.5m zone of 9.96 AuEq, with two stepouts, one yielding 15.64 g/t AuEq over 15.0m, the other 10.07 g/t AuEq over 12.0m, is impressive. The SC-1 zone has now been defined over 400m down plunge and over 300m along a northeastern axis, though it will take more work to define the width.
The geologists also report that examination of the results of the 2023 drilling should lead to a substantial conversion of Inferred to Indicated Resources in the Resource Estimate update currently under way. They also remind us that even after so many years of exploration and drilling, Goldstorm remains open in all directions and at depth.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34558274
Oceanagold aka OGC released a PR containing a number of updates regarding their Dididpio Au/Cu mine in the Philippines. You may recall that OGC spent the year bringing Didipio back into full operation after it was shut for some months after permit problems, now resolved.
First off, OGC plans to list 20% of the shares of the subsidiary that owns Didipio on the Philippine Stock Exchange, in an offering which is expected to raise up to $150M.
The reason they are raising these funds is to pay for implementing the results of a recently completed Mine Optimization Plan, which foresees increasing both mining and milling rates while increasing ore grade and extending mine life. The details of how this is to be implemented will be defined in a 43-101 report to be released H1 2025.
OGC also reported that the Didpio P&P Reserves were down slightly from last year due to mining depletion exceeding resource conversion, but this is expected to turn into growth once proper exploration, which had been on hiatus due to the permit issues, resumes in earnest. And they also report some initial assays from both resource conversion and exploration drilling, which is already yielding positive results.
As a reminder, OGC just sold a non-core asset in New Zealand for $30M and their mining operations are profitable, so barring new initiatives they should have no need to raise any other capital for the foreseeable future.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34558322
This board is for discussing junior miners in both base and precious metals. The commodities boom appears to be a longer term issue so these stocks should become more important as investors try to find small companies that are discovering new deposits.
The typical scenario is that the big companies have such high overhead that they can only look for huge deposits. However as commodities rise in price and all producers max out production, the larger players struggle to replace reserves. The junior miners typically fill that role by finding deposits and then selling out to the cash rich bigger players.
My normal investing strategy is to look for profitable stocks with low p/e's. That strategy is difficult with mining stocks because most are not in production or are losing money.
My alternative strategy is to look for miners with near term potential to begin production. Those are the stocks that I will attempt to focus on along with any stocks that are actually profitable.
Bobwins
FAVORITE JUNIOR NICKEL MINERS:
FAVORITE JUNIOR ZINC MINERS:
Zinc prices have underperformed relative to other base metal prices during the commodity boom of 2010-11. There is supposed to be a surplus in supply in the near term but significant shortages could develop over the next few years. Several large zinc mines are slated to run out of reserves during this time period and demand is expected to continue to increase.
FAVORITE JUNIOR COPPER MINERS:
China remains the most important barometer of base metal fortunes. If their economy continues to grow, copper usage and prices will continue to be supported at the current high levels.
Capstone Mining Corp CS.to/CSFFF.pk
F.D. 82.1M, The company is buying back 10% its shares from mid 07-mid 08. Holding ~20m shares of SST.v plus warrants.
Cash cost about 40c copper net byproduct credit, going lower as smelter charges drop in 08 and lead price jumps.
Recently increased its mill output by 120% under budget. Guiding 26 M lb of copper, 11.3M lb of zinc and 4.1M lb of Lead in 08.
New resource update by sep 07.
http://www.capstonemining.com/
QUADRA MINING QUA.to/QADMF.pk
S.O. 38.1M + 3.9M (InterMoly) + 12M (PP, fully allocated)=54M
F.D. 42.6M + 3.9M (InterMoly) + 24M (PP, fully allocated)=70.8M
2007 guidance: 125 M lb copper and 60 K oz gold
Q1 2007 production: 36.6 M lb copper and 31 K oz gold. Cost: ~$1.5/lb
http://www.quadramining.com
Taseko Mines Ltd. (TGB)
S.O. 113.6 M
F.D. 126.4 M
2007 guidance: 60-70M lb copper and 1 M lb of moly. Cost: ~$1.5/lb
Production set to increase to 120 M lb copper and 1.4 M lb of moly in late 2008 and cost will go down to close to US$1.1/lb area.
http://www.tasekomines.com
FAVORITE JUNIOR GOLD MINERS:
FAVORITE JUNIOR SILVER MINERS:
AURCANA AUN.v AUNFF.pk
S.O. 90.4M
F.D. 105.5M
http://www.aurcana.com/
FORTUNA FVI.to FVITF.pk
Profitable mine in Peru has financed much of the development of their new mine in Mexico. Producing over 2million oz of silver now, targeting 5million+ oz in 2013 when new San Jose mine should be at full production capacity.
http://www.fortunasilver.com
SCORPIO MINING SPM.to SMNPF.PK
http://www.scorpiomining.com/
SILVER WHEATON SLW
http://www.silverwheaton.com
Silver Wheaton is the biggest silver streamer. They finance many junior miners by buying future production of silver at fixed prices. The typical price they pay is 3.90/oz. The miner gets needed financing to bring mines into production and SLW gets all or a percentage of their future silver production. Silver Wheaton has financing power that many juniors lack. Now that they have been in business for several years, their initial investment projects are coming into production and raising SLW's production levels. Lower risk way to play silver because of diversification and lack of mining risk. SLW is relatively low overhead. They have a small office staff of finance experts who continue to add deals to the portfolio and production without significantly adding to overhead now and in the future.
FAVORITE JUNIOR URANIUM MINERS:
Worldwide, there are hundreds of nuclear powerplants on the drawing board. The current mining supply is well below current usage. The deficit is being supplied by Russia from deactivated nuclear warheads. That program is going to end in 2013 and Russia has indicated they will retain whatever is remaining of their inventory for their own nuclear powerplant use. As that deadline approaches, there is more and more likelihood that uranium will increase in price.
Strathmore Minerals STM.v STHJF.pk
http://www.strathmoreminerals.com
Near term producer, with two projects being advanced towards production. Strathmore has a JV with Sumitomo to develop Roca Honda in New Mexico and is pursuing licensing for the Gas Hills Project in Wyoming. Strathmore has a large acreage position in the US of prospects that it intends to JV or sell to concentrate on it's core products. These properties were acquired many years ago at very low prices.
Uranerz Energy URZ
http://www.uranerz.com
FAVORITE JUNIOR MOLYBDENUM MINERS:
FAVORITE JUNIOR TUNGSTEN MINERS:
DYNACOR MINES DYN.to MSDRF.PK
http://www.dynacor.com/
FAVORITE JUNIOR LEAD MINERS:
MontyHigh's blog, quite informative: http://montyhigh.typepad.com/world_of_wallstreet/
A Good web site for juniors: http://miningpedia.com/
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