Vancouver Conf - PTQ/SMG/TEM/PDG/SGC/GQC/NKL
Here are some key points from some potential juniors from the show. I only have a starter position in Petaquilla and have traded PDG.V in the past though I think you buy and hold this one now as it is an institutional stock now and looks like the next big Ontario advanced open-pit gold target for a Major. Think Trelawney but better because Trelawney was .8g/t and had mostly inferred resources while PDG.V has 2.5M M&I oz in mine plan (should be P&P after pre-feas) @ 1g/t.
Sorry but I think quite a few of the co’s are TSX Venture only.
Rick Rule Speech
- Expects unprecedented M&A boom in next 18-24 months. Mining industry is mining 1 Bingham Canyon (largest open pit in world in Utah) a year and is not replacing it so Majors have to acquire
- Stock selection key for next 2 years due to slaughter
PTQ.TO/PTQMF
- Updated 43-101 to pre-feas level in one month with new mine plan for second resource area. IR expects + 300-400k mineable (P&P) ounces
- Note that with +400k P&P oz, that will put them just shy of 1M P&P oz when you subtract production since last 43-101 (~650k P&P)
- Other facts per my post earlier today
SMG.V - Sierra Madre Minerals
- Ultra microcap @ 4M MC - that is main reason I am interested.
- New future potential acquisition target for Mexican Junior Producer
- 65% SMG/35% Riverside Resources. Neither JV partner puts mines into operation so this would have to be a sale.
- SMG is earning in by spending total of $8M between payments to Riverside and drilling on property. Biggest risk is first 1.65M payment due Dec 30th vs. 2M @ Dec 31st with summer drill program to finance
- Main resource (El Capitan) is Argonaut El Castillo comp. CEO (He is Geo with 30 yrs experience) thinks potential is at least 500k oz @ .4-.6 g/t. Resouce is very consistent and starts from surface on the top of the hill just like Oroco (OCO.V) so it is an uber-low strip ratio heap leach target. Look at drill results and presentation and you will see. Easy to understand deposit. El Castillo's average grade is .4g/t and it is heap-leachable.
- They have another low-grade open pit target they will be drilling in a month they just discovered through rock sampling.
- In desert in Sierra Madre Mineral Belt near Argonaut's Castillo Mine. Desert. Nearest town Penolies is only there b/c it is a mining town. Two historic silver mines surround Penoles so would be no brainer to permit with huge community backing.
- Lawrence Roulston (Resource Opportunities) featured SMG when they went public.
- Ernesto Echevarria who owns 50% of Copper Fox holds 12.3% of SMG. He is on Copper Fox Board. Other major S/H is David Macdonald, also on Copper Fox Board. No institutions in SMG. CEO thinks Rights Offering to current S/H could be way to finance Dec 30th payment to Riverside if drilling turns out good.
Tembo Gold (TEM.V)
- recent IPO @ $1.20, trading @ $.67
- Core fact is several of senior management of African Barrick, specifically @ their 20M oz flagship Bulyanhulu mine left to join Tembo and explore on-strike, right next to Bulyanhulu.
- Those management are: David Scott - Former Technical Services @ Bulyanhulu; Dave Anthony - COO @ African Barrick; John Seamen, CFO - Former CFO of Wolfden & Pediment
- Bulyanhulu is 4 km long, 2 km deep has close-knit, high grade 3.5m wide veins and is open-pittable with 20M oz.
- Tembo has 11km of strike next to Bulyahulu. There are thousands of artisanal miners on the property who have mined gold for likely hundreds of years so there is absolutely gold, question is how much.
- 12 month, 87,000m drill campaign underway with 6 rigs. Start with a bang
- First 43-101 in Q1, 2013
- One of James West's (Midas Letter) new favorites due to killer management team. They obviously left high paying jobs at African Barrick betting on making their fortune.
- If they find a good resource they have to deal with artisinal miners, but stock price would be much higher anyways so deal with this later.
GQC.V - Goldquest
- All I will say is the monster hole LTP90 is basically right next to a village so if further holes start proving up an open pit it will have to be moved.
- Hole ended in mineralization because they have a tiny drill rig that ran out of steam
Prophecy Platinum - NKL.V
- Most well attended 10 min presentation of conference
- No power line within 150km of Wellgreen so like other Yukon projects it will be diesel or Nat Gas. First 43-101 underway (I am assuming a pre-feas?) will look at costs for both options
- Current 43-101 is just 15% of 17.5km total trend
Lawrence Roulston (Resource Opportunites Newsletter) talk
- Point that got my attention is that Sunridge gold SGC.V is trading at a huge discount to pre-feas NPV. Think Sunridge is also a Peter Grandich favorite so i'll look at this week
Prodigy Gold – PDG.V
- $190 MC so this one is quite expensive but is looking more and more like next buyout opportunity for a major. Next Trewlaney. In Ontario.
- CEO looking for 4M oz resource and at least 2.5M oz reserve @ ~ 1g/t when all is said and done. He guided for a updated 43-101 in one month. This won’t get to the 2.5M oz reserve but should show improvements.
- Targeting production in late 2015 or 2016
- 8 Drill rigs currently
- $60M in Cash so meets key Junior Criteria of not having to raise capital in these markets.
- CEO is not a mine builder and was talking funny since I last heard him. He must have had CEO-Pronunciation-Speech lessons and said words like “illustrative” very funny to try to sound intelligent. I laughed quietly. No one cares about that in the small mining world.
