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Hecla was probably a poor choice. Market is ignoring short supplies in Zinc and other base metals and Hecla is known primarily as a silver play. Maybe at earnings release, investors will hear about zinc but will then forget that HL is involved.
Big question is when will the market care about declining inventories of copper and zinc. Guess they figure if we have a recession, we won't need those metals. I don't think that's true but it seems that's the attitude.
Any doubts about the actual issue and you should go to Kitcometals.com and look at the longer term charts for base metal supplies. But until China comes fully out of lockdown, I guess they will ignore the problem.
There is a lot of talk about a bull market in uranium.
The Ukraine war has thrown the nuclear power plant business into doubt because Russia does a lot of the enrichment for the world industry. In addition Kazakhstan is the world's biggest source of U308. They have been a Russian ally in the past but seem to be trying to distance themselves recently. If the sanctions are extended to uranium, many utilities around the world will be scrambling to get U308 as well as enriched Uranium AND the actual fuel rods that they burn in their reactors.
Besides the war, the green movement really needs nuclear power plants to provide carbon free base power. They cannot generate enough solar and wind to ever fully replace the current base load power provided by coal and nuclear.
After reading up on uranium stocks, I invested in some of the big ones. The whole industry will likely move together if this thesis holds true.
I bought UEC, URNM, UUUU, BSENF, GLATF and LEU. I don't know how long this is going to take but plan to hold for at least a year. Many countries are coming to the realization that the green energy conversion isn't going to happen without nuclear. In addition the new Small Modular Reactors are coming this decade. They are smaller and promise many safety features that make them much safer than the old generation of nuke plants in the US and the world. They still have the disposal problem but are carbon free and provide good base load power.
China is on track to build 150 new nuke plants. Unlike the US, they can build them in 4 or 5 years.
Cancel that HL price observation. The mood has reversed to a path in line with the rest.
Hecla turned upward on a dime to confirm Bobwin's call. Printing white candles as the gold majors gap lower and are actually starting to look like the beginning of a bear phase.
Thanks for posting LC
WM, EDV, GOT, GNG, KTN, RRI, KRR, IAU, MAI, BTO, AXU, RIO, CAPT, QRC, SSL, CEE, TUO
Sorry, got a little behind...
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WM, EDV, GOT, GNG
Wallbridge Mining aka WM is busy drilling their Fenelon gold project in Quebec, but they have aoso come up with another way to increase their resources by going back and sampling previous unsampled drill core. At the time the core was extracted, they assayed only areas with visible gold, but in the time since they have come to realize that bulk mining is feasible, so they they have gone back to the core and assayed areas close to existing resource blocks. They priorized about 30km of core for re-assay, and halfway through they have already turned a number of areas previously designated as waste into ore. This effort will add substantially to the next Fenelon Resource Report.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33870603
In what should not be a surprise to anyone, Endeavour Mining aka EDV has announced the continuation of the share buyback programme they have been pursuing over the last year.
https://ca.finance.yahoo.com/news/endeavour-announces-continuation-share-buyback-170600379.html
Goliath Resources aka GOT announced that drilling is underway on the Surebet Zone on the Golddigger gold/silver prospect in BC's Golden Triangle. The ostensible purpose of this year's drilling is to define the limits of Surebet, but there are two other important if unacknowledged outcomes that would be achieved by good results.
First, GOT's chart is still damaged by p&d operations run by third parties on the stock in the past. Then, they need to overcome the stink of being associated with Quinton Hennigh, who has clearly shown he is more focused on making money by serving on as many corporate boards as possible than in maintaining any scientific credibility. The float is still low enough that good results should be enough to overcome both of these stains and set the stock on a more sustainable growth pattern.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33872414
Golden Goliath Resources aka GNG announced they have completed a mapping and sampling programme on Wish Ore, a gold prospect in western Ontario. In the time I have been following this company, they have found plenty of promising indicators on various properties that have never in the end amounted to anything. Maybe this time the assays, expected in six weeks, will indicate something more substantial.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33872426
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KTN, RRI, KRR, IAU
Kootennay Silver aka KTN released the gold assays form the last set of holes completed on its Cervantes JV with Aztec Minerals in Sonora, Mexico. The drill programme had several objectives, including defining open pittable mineralization at the California target, which was largely successful even though the ominous word anomalous makes a number of appearances. ('Anomalous' generally translates as very low.) They were also trying to test deeper sulfide mineralization with one hole. They did find higher Cu and Mo values, but again they were 'anomalous'. Aztec is currently doing some mapping and sampling prior to more drilling.
One odd thing, which I have run across before, is why KTN is spending money on the PR given that Aztec is supposed to eventually earn 100% ownership, up from the current 65%, so what benefit does releasing the PR have for KTN? I guess there is a chance that Aztec might not complete the transaction, and maybe there are regulatory issues, but in this situation the company vending the property usually leaves the PRs to the buyer.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33882741
A few years ago prospect generator Riverside Resources aka RRI surprised me by veering from their usual focus on Mexico to pick up a number of Ontario properties. But I shouldn't have doubted these canny operators; they have since sold enough of the properties to pay for the lot while retaining those they think are the most prospective. They are now focusing on Oakes, where their prospecting has established a target they call the HG zone.
Today they released the first five holes of a twelve hole drill programme on a property that has only seen two holes before. The programme is designed to vector in on the main sulphide targets, so it is promising that all five of these holes did intersect gold, albeit over relatively short intervals. Results from the remaining seven holes, which successively move toward the main targets, are pending.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33882764
Australian gold/nickel miner Karora Resources aka KRR announced they have completed a $69M bought deal financing. Given the quality of the company and the relatively low price of the financing, $4.80 per share, it is no surprise that the overallotment was fully taken up. Now fully cashed up, they can concentrate on moving their programmes forward in spite of headwinds caused by Covid and supply chain issues.
https://ca.finance.yahoo.com/news/karora-resources-closes-oversubscribed-69-134000868.html
FWIW, RBC released a new analyst report on i-0 Gold aka IAU, rapidly becoming a gold producer in Nevada, rating them at Outperform with a $5 target based on what they plan to achieve by the end of the year. Besides the ramp up in production over the next 3 years, RBC also highlighted the exploration upside, and how the recent Nevada gold transactions involving the likes of KOR and GSV were completed at more than double IAU's valuation per ounce of gold.
Quote: "Given recent Nevada focused M&A, we view IAU as uniquely positioned for sequential step change in growth with manageable capex over the next few years."
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GOT, MAI, metals inventories
Goliath Resources aka GOT released their first PR following the start of this year's drilling campaign at the Surebet Zone on their Golddigger gold/silver prospect in BC's Golden Triangle. It was kind of pointless, as the only message was that the core looks good but we won't have any assay results sometime in the future.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33889020
The main news item we are waiting for from Minera Alamos aka MAI is the declaration of commercial production at their recently commissioned Santana gold mine in Sinaloa, Mexico, which will open up the company to institutional investors. In the meantime, they have released a PR which confirms that Cerro de Oro, located in Zacatecas, Mexico, has moved up past La Fortuna tp be designated the second of three gold mines they will have in production over the next few years.
To wit, they have acquired the necessary surface rights at Cerro de Oror to allow them to advance to the final stage of permitting. Besides permitting, over the rest of 2021 they will be carrying out more drilling and other exploration, as well as metallurgical testing, mine planning, and financing arrangements so they can hit the ground running once the permits are received.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33890456
BMO put out an interesting analyst report on metals inventories and how complex it is get a read on the future right now. Yes, visible warehouse inventories in many metals are at historically low levels right now. OTOH, in the wake of supply chain problems, many businesses have dropped the just-in-time supply model and now have built up the own (invisible) stocks, so if end-user demand lessens, this could begin a period of passive destocking that could be a drag on commodity prices. This in turn has lessened confidence in the exchanges and warehouses, further muddying the waters.
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BTO, AXU
B2Gold aka BTO announced the latest drilling results from an ongoing 225km exploration drill programme around their producing Fekola gold mine in southern Mali, designed to find more feed for their mills. At Fekola North, drilling outside the pit shell returnd a number of positive results, with the headline being 4.28 g/t Au over 19.15M. It is important to note that this drilling extends over 500M below surface, with the idea that this ore will be accessed from an underground mine. As well, they found mineralization, both saprolite and sulphides, outside the current pit shell at Anaconda.
BTO also announced another 50km of drilling on the recently acquired Bakolobi gold prospect not far away from Fekola
https://www.siliconinvestor.com/readmsg.aspx?msgid=33891509
FWIW, in response TD issued a new analyst report calling the drill results slightly positive and kept them at Buy with a target of $9.50.
I have several times contemplated averaging down on my stake in Yukon silver miner Alexco aka AXU, but based on today's operation update from their Keno Hill mines and mill, it's a darn good thing I didn't, given today's 40% haircut leaving the share price at about a quarter of what it was a few months ago.
Mine startups are always risky, and this one has not gone well, for a number of reasons. They have realized that they are not yet able to mine sufficient ore to run their mill profitably, so are shutting down the mill for six months to allow mine development to catch up. They say that by next January they will be able to run the mill at the necessary 400 tpd to make the entire operation 'cash sufficent'.
For now I am not going to sell and take my lumps, just keep an eye on AXU and watch for a good entry point.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33891536
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RIO, MAI
Another day, another kick in the teeth, this time delivered by the overreaction to a PR from Rio2 aka RIO. They have run into a permitting problem, with one of the evaluators wanting more information. The market is treating this like their Fenix gold mine project is dead, giving the stock a 50% haircut, but this is far from the truth. In reality, this is a recommendation from a minor part of the process that does not have the final say. If I wasn't already so overweight in the stock I would buy more, but given the current fraught markets, for now I am going to watch and wait.
Read RIO's PR here.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33893046
And fortunately the IKN blog has provided a much more thorough and nuanced dicussion of the ramifications here.
https://iknnews.com/the-rio2-ltd-rio-v-environmental-report-news/
Today we got two PRs from Minera Alamos aka MAI regarding their Cerro de Oror gold project in Zacatecas, which we recently learned will definitely be the next gold mine they build.
The first PR concerns exploration results from the Melchor Ocampo area, which encompasses and surrounds Cerro de Oro. Melchor Ocampo is covered with old artisanal workings, and MAI has been able to identify a new minerlaized trend 1 km. long located 4 km from Cerro de Oro, in the area where a resource was declared by defunct Echo Bay Mining in the 1990s. Next up is more mapping and sampling followed by drilling.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33893087
The second PR concerns a private placement at 55 cents a share for total proceeds of over $4M to support the development of Cerro de Oro.
https://ca.finance.yahoo.com/news/minera-alamos-announces-fully-subscribed-150000444.html
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CAPT, GOT, RIO, Ecuador
Capitan Mining aka CAPT released an update on their ongoing drill programme on their Cruz de Plata prospect (Formerly known as Peñoles) in Durango, Mexico. One of the reported holes successfully extended the Jesus Maria Zone 25M deeper, but more interesting were the other two reported holes, which targeted the eastern and western ends of the Gully fault, where they found high grade if narrow minerlaization -- 1.5M of 488.97 g/t AgEq and 1.5M of 328.25 g/t AgEq within 21.3M of 143.59 g/t AgEq
and 1.5M of 427.62 g/t AgEq within 22.9M of 76.98 g/t AgEq -- that diverges from the main Jesus Maria mineralization.
The company must really like what they are finding along these silver-bearing structures, as they seem to have lost all interest in further exploring the oxide gold cap that was the original target.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33900987
Goliath Resources aka GOT released another placeholder PR promoting their ongoing drilling campaign at their Goldigger gold/silver prospect in BC's Golden Triangle. The main message was that the core looks good, but of course the proof of that particular pudding is in the assays which we are still some ways away from receiving.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33899582
The IKN blog brings us a link to an interview with Rio2 aka RIO's CEO Alex Black on the permitting issue for their Fenix gold mine project in Chile.
https://iknnews.com/rio2-ltd-rio-v-alex-black-talks-eia-permitting-at-fenix/
And IKN also brings us an update on the deteriorating situation in Ecuador, which is becoming ever more an Avoid.
https://iknnews.com/ecuador-deteriorates/
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QRC, RIO, EDV
Queen's Road Capital aka QRC has announced its stock will graduate from the TSXV exchange to the main TSX exchange this coming Wednesday. One assumes this will make them more palatable to the kind of well-heeled investors they cater to (with the rest of us along for the ride).
https://ca.finance.yahoo.com/news/queens-road-capital-announces-graduation-120000264.html
And we got a brief update from Rio2 aka RIO about its Fenix gold mine under development in Chile. We had recently got word that one consultant has recommended against approving RIO's EIA application, necessary to begin construction, because apparently it needed more information. The Comisión de Evaluación Regional, the committee which can actually approve the EIA, was supposed to meet last Friday to decide whether they should delay the approval of the EIA due to the consultant's report, but instead postponed their meeting to tomorrow. From what I have been able to gather, RIO themselves had nothing to do with the delay, but it certainly gives them a bit more time to lobby and continue collecting data that might be required.
I will also mention that all the local authorities, including the regional environmental board, are fully in favour of building Fenix, so if it is voted down, you will it is the result of pressure, if not direct orders, of the recently elected President of Chile.
Keep an eye on the IKN blog for updates, and I am sure RIO will PR the results of the meeting themselves.
https://ca.finance.yahoo.com/news/fenix-gold-eia-meeting-postponed-153600922.html
Edison has released on a new report on African gold miner Endeavour Mining aka EDV which is available at the link below. You may have to sign up for a free membership.
https://www.edisongroup.com/publication/pre-positioning-ahead-of-rains/31078/
I will also mention that Steve Saville, who until recently thought the chances of gold trading at an all-time high in 2023 and the equities following were very good, has pulled back on that call of late. Indeed, he now sees the possibility of HUI exceeding the high it set in March 2002 during 2023 as very low.
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IAU, RIO, AXU, SSL
First, the good news. I-80 Gold aka IAU announced they have already begun shipping ore from the underground gold mine at Granite Creek to Nevada Mines' nearby mill for processing, well ahead of schedule. They plan to increase the ore shipments to 450 tpd by the end of the year and 1000 tpd be the end of 2023. Eventually, once their own mill is refurbished, they will bring ore processing in house, and in the meantime they are busy drilling up new ore in several deposits situated close to existing underground infrastructure on the property
https://www.siliconinvestor.com/readmsg.aspx?msgid=33908642
And then the kick in the teeth. The new Chilean government has clearly decided to use Rio2 aka RIO as their whipping boy by arranging for their EIA to be rejected regardless of its content. If you go back through the proceedings, everything to do with the permit was going smoothly until the new government's man was parachuted in, and now he has managed to jam the works.
RIO does have several routes to appeal, and it is interesting that RIO says the IAE not 'rejected', just 'not accepted', which is much more than just a nuance. Follow the IKN blog for more details and updates.
Does this decision turn Chile into a no-go zone for mine developers? It is too soon to say, but I wouldn't want to be, say, management at Los Andes Copper right now.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33908694
And another kick in the teeth for me was the predatory takeover bid by Hecla for Alexco aka AXU and their silver mines and mill at Keno Hill in Yukon. Yes, AXU has been have teething problems at their new mines, but there is no doubt that this is a predatory offer if you look at the share price over the long term and take into account the recent sharp selloff in dilver and silver miners. AXU.TO is halted, but the shares trading on the American exchange are trading about 5 cents per share less than the supposed offer of 47 cents US. This reflects that Hecla is offering shares rather than cash, this reflects, and that Hecla trading down 10% today.
The takeover does require 2/3 approval by AXU shareholders, but given their BoD is in favour, I expect the deal will go through. If a better offer does come in, it will have be markedly better, given that there is a $10M break fee.
I have no interest in owning any shares of Hecla, but for now I am just going to sit and watch.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33908710
Sandstorm Gold Royalties aka SSL released their usual cursory quarterly report, saying they generated they sold 192000 oz AuEq, a record. They also set a revenue record while maintaining margins, but we'll have to wait for further details.
https://www.newswire.ca/news-releases/sandstorm-gold-royalties-announces-record-sales-and-revenue-in-second-quarter-2022-880325731.html
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CEE, GOT, Chile
One of the important initiatives from the new management at African gold producer Centamin aka CEE was a renewed focus on exploration once they had fixed the problems at their main asset, the Sukari mine in Egypt. Today they released a wide-ranging exploration update across their various projects.
The most immediate impact from these efforts will be at Sukari, where they have identified new underground ore with the potential to increase both mine life and grade, including the highest grade intercept ever drilled at Sukari, 54M at 15.1g/t Au, including 3.8M at 161g/t Au and 2.15M at 44.84g/t Au. They also identified numerous potential new open pits nearby which will be drilled up and contribute to the new Sukari Resource Estimate expected by yearend.
Further afield, they are gearing up for the first drilling at their new Eastern Desert blocks in Egypt, which are peppered with thousands of artisanal mining sites. They are also pushing ahead with the PFBS for the Doropo gold property in Cote d'Ivoire, expected before yearend, and the solar plant at Sukari will be commissioned shortly.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33911451
FWIW, in response BMO released a new analyst report which kept them at Outperform and moved their target to $C2.02.
Goliath Resources aka GOT released another mostly 'placeholder' PR concerning drilling on the Surebet zone of their Golddigger Ag/Au prospect in BC's Golden Triangle. The 'placeholder' part was telling us that three more more intersected wide zones of good-looking rocks, but now they aren't even telling us when we can expect the assays that will tell us whether these rocks actually contain gold and silver. I thought it was much more significant that surface exploration has uncovered new sulphide outcrops, opening up a whole new area for discovery that is emerging from under melting glaciers.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33911798
After the action of the past few days, Saville opines that after breaching support in the $1780s area, gold may have reached a sustainable low, but that it may also drop to support around $1675 before that happens.
And although Rio2 aka RIO is not a stock he covers, he does follow it and agrees that Chile is now a high risk jurisdiction for all mines that aren't already fully permitted.
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RIO, GOT, IAU
Rio2 aka RIO released an update in the wake of last week's failure to approve the EIA for its Fenix gold project in northern Chile. They note that all the local authorities in the region continue to support The project, and that even the committee that failed to approve the EIA noted that they had fulfilled all the requirements. They also pointed to their healthy financial status and said they are developing a plan to fulfill the new requests for data.
The IKN newsletter devoted a lot of space to this story last weekend. I will mention a few insights. First this is the fifth in the series of recent similar decisions where the new -- and increasingly unpopular; Boric now has the lowest approval ratings of any Chilean president in many years -- government intervened to turn down permits. And second, IKN outlined how at the cost of a delay, RIO can beat the government at their own game by fulfilling requests for more info until the government finally caves. It just might work,,,
https://www.siliconinvestor.com/readmsg.aspx?msgid=33917643
Goliath Resources aka GOT released another placeholder PR as we wait for assay results from the Surebet deposit on their Golddigger gold/silver prospect in BC's Golden Triangle. This one did have some meat, confirming that the mineralizing system has been confirmed over a 2.5 km nort-south extent and a 1.5 km east-west extent. If they assays reveal good grades when they finally arrive, this is becoming a large deposit.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33916480
I-80 Gold aka IAU released an update on exploration at Ruby Hill, one of the gold mines in Nevada they will be bringing into production over the next few years. IAU plan to develop an underground mine beneath the existing pit and so are drilling up untapped mineralization, particularly at Ruby Deeps, where stepout hole found 19.8 g/t Au over 33.2M. The remainder of the 20km drill progrmme underway at Ruby Hill will include more stepouts plus exploration drilling.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33917670
IAU also released a new presentation on Ruby Hill which can be accessed here:
https://www.i80gold.com/wp-content/uploads/2022/07/i-80-Ruby-Hill-Supplementary-July-12-2022.pdf
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TUO, SSL
Teuton Resources aka TUO and its JV partners on the Treaty Creek gold/silver project in BC's Golden Triangle announced the assay results from the first five holes of this year's resource expansion drill programme, and once again it was a complete failure.
For several years now they have been looking for the limits of the Goldstone deposit, and once again they have failed to find them, instead defining new areas of mineralization outside the existing resource envelope. Not only that, they have defined a new zone they are calling Route 66. Next up, a set of 200-300m step-out holes, and let us hope they are also failures in that they fail to find the limits of mineralization. This monster deposit continues to grow, with eight drills working to make it even more monstrous.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33919208
Sandstorm Gold Royalties aka SSL announced they have completed the purchase of the BaseCore Metals portfolio of royalties, which along with the buyout of Nomad Royalties, the conversion of Hot Maden into a royalty, and the creation of Sandbox Royalties, marks a major transformation of Sandstorm. Will it be a better company after all these changes? Time will tell.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33919262
I also have some HL for the Ag and Zn and have checked out Fireweed Zinc for a real long shot.
Bought some Hecla Mining today at 4.34. Hecla is one of the primary silver producers in the US and has perennially disappointed me in terms of production and profits. However they remain one of the few relatively pure silver plays.
Recently I got interested in zinc as a metal that is approaching significant shortages. Hecla also produces a lot of zinc as a by product.
Their mines are in safe jurisdictions and set to produce for many years. We'll see how long I can put up with mediocre results. Stock is down dramatically from the 52week high of 7.71 about a year ago.
And actually producing at the moment so you can arrive at a comparative valuation. If that ain't an anomaly in the microcap market.
Is Tanzanian Gold the same company that was started by Jim Sinclair like 20+ years ago? I think it was Tanzanian Royalty back then. If so, amazing that after all his talk, still nothing
Thanks for that Bobwins. On another note, how come Tanzanian Gold has been around forever, and still nothing. Do you think they will ever produce and explode?
GCM.to/TPRFF
There is a country risk with Gran Colombia. They are trying to diversify with the mine they are building in Guyana and changed their name to GCM to remove Colombia from the name. Country is having elections and there is a hard left wing candidate that is currently in the lead. It's a two person election. So we'll find out pretty quick if Colombia heads down the anti mining path.
The project in Guyana is truly a company maker so in a couple years, Colombia may be in the rear view mirror BUT watch the news for the short term impact.
re:TPRFF, thanks Sskillz, I own a small amount of this one, but may add some more, glad that you brought it back to my attention
GCM.TO (TPRFF)
I brought some TPRFF at $3.28 as I feel this is a very attractive gold miner towards the close today, it is a small position, but I do like it.
1) Stock is essentially at 52 week lows which I feel is a good entry point.
2) TPRFF pays roughly a 4.35% dividend yield, at the price I purchased shares, in monthly payments, fits a good way to get some income.
3) Earned and Adjusted .14 in q1, I fully expect .60-.70 EPS adjusted at current gold prices, versus a $3.28 Share price, hence the stock is cheap on that alone.
4) Of course the companies acquisition and some point will be huge diversification and Could make production explode in 18-24 months if everything goes to plan. Hence that is a catalyst to make it look more undervalued in the future.
5) The Company trades at a steep discount to tangible book, with well over $3.00 in cash, although admittingly that is for the buildout of the mine of something that could possibly be the cause for a huge jump in production.
Conclusion: A small postion about 1.5% essentially of the portfolio, and I will add on weakness, like all my buys. I love the Monthly divy, I love the catalyst of the possible huge jump in production that could be coming in the future, but the stock is very cheap on the fundies now, and huge potential for much more in the future. All is just my opinion, and I could always be wrong though.
KRR, BTO, WM, RIO, OSU, MAI, YRI, IAU, NRN
We must be in at least a temporary mining bear market, given the lack of posting here...
KRR, BTO
We got a bit more news from Karora Resources aka KRR -- the bought deal announced yesterday in conjunction with the purchase of a new mill for their Australian gold mining operations has been upsized by a further $C10M to a total of $C60M. This is good news in one sense -- even more purchasers think they can make money on their new shares priced at $4.80 -- but it also means it will take longer to work off the overhang from those cheap shares. Meanwhile, today KRR's share price is stuck one penny under the offering price.
https://ca.finance.yahoo.com/news/karora-resources-announces-upsize-previously-175700289.html
I'd been wondering how long it would be before B2Gold aka BTO would buy something given the way they had been building up their cash stash. Today we got an answer -- they are buying Oklo Resources aka OKU.AX for a combination of cash and shares. This deal makes perfect sense, as all of OKU's holdings, including the ready to be built into a mine Dandoko gold deposit, are located in Mali on the shear belt that hosts BTO's Fekola mine. Mind you, given that only $27.4M of the $91.3M purchase price is to be paid in cash, BTO has plenty left for more deals if they are so inclined.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33858503
FWIW, in response to this announcement TD issued a new analyst report on BTO that saw the impact as Slightly Positive, but kept them at Buy with a target of $9.50.
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WM, RIO
Even as its share price continues to decline -- why didn't I sell a large portion of my holdings when it was over a loonie? -- Wallbridge Mining aka WM continues to define more and more gold minerlaization at their Fenelon gold project in Quebec. Last year they declared over 4M oz of gold in their initial Resource Report for the deposits on Fenelon. This year they are concentrating on developing more resources close to the existing resource envelope, including establishing underground access at Area 51, where both surface and underground drilling has been fruitful. This year's drilling has also extended the Tabasco and Cayenne zones at depth, and established the Ripley deposit a little further away as a strong candidate for growth.
How much growth? We find out later this tear when the new Resource Report is compiled and published. In the meantime I continue to worry that the current low share price will lead to a premature (from the shareholders' viewpoint) takeover.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33862277
Worried that Rio2 aka RIO didn't get the permits for development of its Fenix gold mine in Chile in May as scheduled? IKN says not to worry, that everything was delayed a bit by the changeover to the new government, but other than that things are proceeding smoothly and they should get the permits soon. FWIW, I am not worried.
And reading through Saville's latest, it is clear that he agrees with me that we have left behind last year's unabashed bull market in mining stocks. There are still good opportunities, but only if you pick the right stock run by the right people mining the right minerals in the right locations. I am doing my best to comply, as well as trying to force myself to sell some stuff and build up my cash reserve.
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OSU, MAI
Some of you might recall me occasionally mentioning Orsu Metals aka OSU,a company developing a mine in southern Russia. It was only a small position, which I held on the basis of my judgment of their management, but I sold when Russia invaded Ukraine. Not long after, OSU announced their Russian property was essentially worthless to them thanks to the sanctions, but attesting to that quality management, they have landed on their feet, morphing into exploration for helium, acquiring development assets in the US and Greenland. I have not investigated the helium space, but this time I think I will, and if I like what I see I may buy back into whatever company OSU becomes. (Note that at this point the letter of intent is non-binding.)
https://ca.finance.yahoo.com/news/orsu-metals-complete-transformative-transaction-131500516.html
Minera Alamos aka MAI released an update on its Santana gold property in Sonora, Mexico. It wasn't the declaration of commercial production we have been waiting for, but it does set the conditions for that to happen in the near future. The on site lab is almost complete, moving blasting in house has cut costs by 80%, they have dealt with the effects of the drought afflicting Sonora, and most importantly, mining will begin shortly at the much larger Nacho Norte pit, leading to a substantial increase in production.
The PR also contains MAI's quarterly results. They managed to make a profit even though the ramp up to full production has taken longer than expected. Their cash stash is at $8.2M, plus they set up a facility to provide up to $3M in working capital to tide them over till full production levels are achieved.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33863227
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YRI, IAU, NRN
It will be strange not having Yamana Gold aka YRI around anymore. I have owned shares a few times, doing fairly well with them, and have always kept half an eye on them as representative of a certain size and style of gold miner. But clearly Gold Fields International want to move up the rankings among the big boys, and this purchase gives them a long-desired foothold in the Americas. FWIW, the analyst reports I have seen though GFI offered a fair price, but it would not be surprise to see another bid come in.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33864196
I-80 Gold aka IAU brought us another update from their Granite Creek gold property in Nevada, from which they plan to start underground mining shortly There are two zones of untapped mineralization near existing underground workings at Granite Creek, SPZ and Ogee. This PR concerns results from drilling right next to that existing infrastructure, including 13.3 g/t Au over 13.1M, 20.3 g/t Au over 7.5M, and 10.1 g/t Au over 17.5M, all from just one of the holes. Ore will begin being trucked to NGM's nearby mill within the next few months. Meanwhile IAU will continue drilling as well as extending the underground workings and completing a feasibilty study.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33864350
Northern Shield Resources aka NRN released a PR concerning its Root & Cellar gold/copper prospect in Newfoundland. This ever hopeful bunch of geologists in now concentrating on sampling to follow up on last year's drilling and geophysics at the Conquest Zone, where they have been successful in finding mineralized boulders and outcrops, albeit with no assays yet. They are now starting to make noises about a feeder zone, but these folks have said all sorts of promising things about a variety of prpoerties without ever finding anything substantial.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33864365
RRI, GOT, IAU, KRR, TUO
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RRI, GOT
We got two pieces of news involving prospect generator Riverside Resources aka RRI.
In 2020 RRI optioned out their Cecilia gold/silver prospect in Sonoro, Mexico to Carlyle Commodities, a small CSE listed explorer whose other properties are in BC. Carlyle has terminated that JV, but don't cry for Riverside. They have already received $100k and mess of CC shares and warrants as well as the results from the exploration that CCC carried out, and will no doubt option Cecilia out again, as they have done in the past.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33847596
In any case the Cecilia news is eclipsed by another announcement by RRI regarding their La Union gold/silver prospect, also in Sonora. This agreement dwarfs the one with CCC; if Mexican mining giant Hochschild eventually earns 100% of the property over a series of stages, RRI will have received not only various payments along the way but also a final $20M cash payment, as well as retaining a 1% NSR plus collecting fees along the way for managing the exploration programme
Overall, RRI is way ahead of where they were before these two announcements. and will end up even further ahead if, as I expect, they are able to option Cecilia out to a more focused partner.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33847590
Goliath Resources aka GOT announced they have moblized crews for four drill rigs to carry out an 85 hole, 24km drilling programme on their Golddigger prospect in BC's Golden Triangle. This is an important summer for GOT, with the focus being on extending the Surebet Zone by another 1200 metres. If they can, and the geology looks very promising, this gold/silver deposit is looking more and more like a future mine, especially given excellent results from metallurgical testing.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33848060
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IAU, KRR
I-80 Gold aka IAU has released the first results from this year's surface drill campaign aimed at the South Pacific Zone on their Granite Creek gold property in Nevada. This is one of the deposits that will be mined starting later this year after more drilling and a Resource Report.
I get the feeling even IAU's geologists are pretty surprised at what they are finding in the SPZ. This time the headline results include 16.4 g/t Au over 15.3M -- this from the deepest hole yet drilled into the deposit -- and 11.2 g/t Au over 9.0M. The deposit remains open along strike and at depth, so the rest of the drilling will focus on extending the deposit in those directions.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33855542
In the wake of their latest quarterlies, rendering disappointing by Covid and inflation, Karora Resources aka KRR brings us some positive news with an update that covers two topics concerning their gold mining operations in Australia.
First, we hear that the second decline at Beta Hunt has not only been permitted but that it is proceeding on cost and ahead of schedule. This new decline will allow KRR to implement their growth plans by doubling throughput at Beta Hunt once construction is complete, later this year or early next year.
And we also get some promising drill results from the Western Flanks resource and nearby deposits. Strong intersections were drilled in Western Flanks itself and in the A Zone North and Fletcher, plus they have discovered yet another shear zone they have named Sorenson. For a complex that has been mined for decades, Beta Hunt has been very good at delivering new prospects both for gold and for nickel.
Now we wait for more drilling results and Resource Reports while watching how KRR deals with the ongoing labour shortages and cost creep.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33855596
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TUO, KRR
Over the past few years, Uncle Moneybucks (Eric Sprott) has thrown millions of dollars at Teuton Resources aka TUO and its JV partners on the Treaty Creek gold deposit in BC's Golden Triangle, and they are certainly putting the money to work. We get a PR announcing that six drills are currently stepping out to the north on the already enormous Goldstorm deposit, while two others are doing exploration holes on the recently discovered CBS and Eureka zones.
And we have another interesting development which will certainly enhance the value of the property to prospective purchasers. Seabridge has been building a road to connect another enormous nearby gold deposit to Highway 37, and Tudor has announced the construction of another road to connect to that road, which will allow all-weather access to Treaty Creek.
Also, the JV partners are running a geophysics survey over Treaty Creek and nearby areas.
Expect constant news flow from TUP through the summer
https://www.siliconinvestor.com/readmsg.aspx?msgid=33856838
Big news from Karora Resources aka KRR -- they are acquiring Lakewood, a fully permitted operating gold processing facility that is capable of handling 1.0MT of ore per year. They see this purchase as key to their growth strategy, because not only does it add 60% more capacity on top of the Higginsville mill, it is located much closer to Beta Hunt, only 60km away.
The purchase does open up opportunities for making income through toll milling, but to cover the purchase price of $A70M (as well as $A10M in shares) KRR also announced a $C50M bought deal financing, priced at the disappointingly low level of $4.80 a share. Surprise, surprise, today the KRR share price dropped to just over $4.80 per share on the TSX.
The company is betting that the benefits of this deal will eventually more than make up for the current drop in the share price; I hope they are right.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33856911
For more details on the bought deal, see the following link.
https://www.karoraresources.com/2022-05-04-Karora-Resources-Announces-C-50-Million-Bought-Deal-Financing
KTN, IAU, KRR, IPT, CCW, TUO, SSL, GNG, MIRL, AXU, CEE
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KTN, IAU, KRR, IPT,
Kootenay Silver aka KTN announced they are beginning a new 15km drill programme at the Columba silver prospect in Chihuahua, Mexico. The drilling is designed to follow up previous promising findings in six separate locations on the property. The mineralization is high grade enough and extensive enough that I expect that success with the drill bit this year might be followed up by a Resource Report.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33836317
i-80 Gold aka IAU has developed a cozy relationship with Nevada Gold Mines (NGM), a JV between ABX and NEM that operates a number of gold mines and mils in Nevada. The predecessor company to IAU had a JV with NGM on several gold mines, and after they became IAU they came to agreement with NGM to use their nearby facilities to process sulphide ore until IAU's own autoclave at Lone Tree hill is refurbished.
And now NGM has sold two properties to IAU, extending the latter's Granite Creek property to the north and south, increasing their portion of the Getchell/Range Front fault structure by a total of 3.2 km. The northern section extends toward NGM's giant Turquoise Creek deposit, and importantly,, this piece of land directly borders IAU's recently discovered South Pacific Zone. The southern section extends their holding of the fault structure a further 1.6 km.
If, as they suspect, the SPZ extends onto the newly acquired property, the transaction will be a success for IAU, with anything else found on the two sections of land being a bonus.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33836344
We got some interesting news for Karora Resources aka KRR, who mine gold and nickel in Australia. Tony Makuch, who was CEO of Kirkland Lake Mining for the six years prior to its recent merger with Agnico-Eagle. Makuch does have persoinal connections with some of KRR's management, but that he would join then as an advisor is still a meaningful endorsement.
https://ca.finance.yahoo.com/news/mining-veteran-tony-makuch-joins-113500381.html
Impact Silver aka IPT released the Q1 results from their silver mines and mills in Zacarecas, Mexico. They actually managed to lose money, albeit only $60k, while maintaining production levels due to rising costs. The good news is that their cash stash remains solid at over $19M and they remain debt-free.
One thing that pisses me off about IPT is that they almost never include all the data you want to see in their quarterly PRs. This time they left out the grade of the ore they fed through the mill. Tomorrow I will dig into the MD&A to see if I can find what I can only assume is bad news.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33836385
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IPT, CCW, IAU
Yesterday I guessed that Impact Silver aka IPT had put out a PR that left out the grade of the mill on their silver properties in Mexico was because it was lousy. Well, I was wrong. It was actually up from last quarter and the same as Q1 last year. So why was it left out? Your guess is as good as mine...
Perhaps Canada Silver Cobalt Works should have the symbol OCD instead of CCW. Not content with exploring for silver and cobalt in Ontario, running a nearby lab, and exploring a few dozen battery metals properties in Quebec, they have decided they need to add some gold exploration to their portfolio. Thus they have added Eby-Otto, a gold prospect in Kirkland Lake area, and today they announced that exploration is underway, first geophysics and mapping and sampling followed by drilling. One assumes they have assembled this property with the idea of proving up some mineralization and then selling it, but you never know with OCD, er, I mean CCW.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33837654
I remember opining at the beginning of 2022 that we could expect a copious newsflow from i-80 Gold aka IAU this year, but their actual output has exceeded even my expectations. And these aren't the breathless and content-free "We have completed another half a hole" PRs you get from the promotionally oriented companies; IAU's always contain meaningful information.
Today we get two updates.
First, they have acquired a key property adjoining their McCoy-Cove property in Nevada, where they will be bringing Cove, one of the highest grade gold resources in North America, into production over the next few years. The new property includes not only some known gold minerlaization, but also a past-producing barite mine and mill, a rail spur that connects Mcoy-Cove to a main rail line, and perhaps most crucial, more than enough water rights to develop Cove.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33837674
IAU also released their Q1 results. The financial figures are what you expect at this stage of a company developing multiple mines, i.e. they lost money, but it is important to note that they still have much more than enough money to bring the four mines into production. And they even made some money this quarter by producing 1489 from the existing heap leaches at Ruby Hill and Lone Tree at a cash cost of $1019/oz, a nice little bonus.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33837685
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TUO, IAU
We get a welcome update from Teuton Resources aka TUO and its JV partners that drilling has resumed on their Treaty Creek gold/copper project in BC's Golden Triangle. Given how protracted the cool weather has been in BC this spring, I was starting to wonder if they would ever be able to get started, but apparently the temperatures haven't been as much below normal in that part of BC. Last year's drilling failed to find the limits to the mineralization in the already massive Goldstorm deposit -- hurrah! -- so they there will be more step out drilling to try to find those limits, as well as exploration drilling in the Eureka and Calm Before the Storm zones, so we can expect constant news flow.
Meanwhile, I continue to wonder if this will be the year Newmont buys Treaty Creek as well as Seasbridge's KSM deposit to combine with its recently acquired operating Brucejack mine located nearby.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33838929
i-80 Gold aka IAU put out another PR late yesterday. This one concerned the initial drilling results from Ruby Hill, one of four gold mines in Nevada they will be bringing into (or back into) production over the next few years, in the case of Ruby Hill as an underground mine under the old pit on the property. The 50k of drilling planned for Ruby Creek will include both infill and step out drilling to support the company's plans to plan being to initially mine oxide mineralization from the 426 Zone and then deeper sulphide minerlaization once the Lone Tree autoclave is available to process it.
And the minerlaization is high grade. The featured results in this PR include 7.1 g/t Au over 78.6M including 10.1 g/t Au over 41.8M, as well as 7.0 g/t Au over 71.6M, 9.1 g/t Au over 24.7M, and 9.0 g/t Au over 18.3M.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33838885
FWIW, Scotia has released a new analyst report on IAU, albeit one based on IAU's Investor Day presentations rather than the three PRs over the last two days themelves. Overall they saw the impact of what was discussed as Positive, although they are keeping IAU at Sector Outperform with a target of $4.75.
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SSL, KRR
Sandstorm Gold Royalties aka SSL released their financial quarterlies, touting several records such as highest ever quarterly sales, at 18741 AuEq, and highest ever revenue, with cash costs of $283/oz, leaving a very healthy margin. But all this is somewhat moot due to the set of transformative transactions the company recently announced. The jury is still out on them.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33840397
FWIW, in response TD issued a new analyst report seeing the the impact of this NR as Neutral and keeping SSL at Buy with a target of $13. Like everyone else watching SSL, they are waiting and watching.
We already knew that Q1 gold production from Karora Resources aka KRR's Australian mining complex was 27,489 oz Au; now we get the financial results. The bad news is that costs were up by about a third compared to both last quarter and Q1 2021 due primarily to Covid impacting labour force availability, higher costs from material purchased, and supply chain issues. Labour availability was only 60% during the quarter, forcing KRR to hire more expensive contractors to fill the gap. They do expect this to improve, and they are reiterating their 2022 guidance, albeit with plenty of 'hedgy' words attached. Overall this led to a loss of $11M during the quarter. They do still have a cash stash of $78M even after the tough quarter, and remain debt free.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33840441
One thing that will help KRR stay afloat during the second half of this year will be restarting the mine of nickel on its properties, and to that end they also released an updated Resource Report. M&I Resources increased by 22% to 19,600t Ni, whiled Inferred Resource increased by 52% to 13,200t. They were already guiding to the production of 460-500t Ni in 2022, and PEA for increasing nickel production will be released this qaurter. There is also significant exploration potential for more nickel on their properties.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33840485
BTW, GDX and HUI have lost about 25% of their value over the last month while gold itself has held up far better. Saville points out that similar conditions prevailed in April and May 2019 and in March 2020, and in both cases there was a sharp rally back to former levels. He and I both expect this to happen again this time.
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IAU, GNG, MIRL, AXU, CEE
Given the way PG pivoted towards Nevada during its transition into bcomeing i-80 Gold aka IAU, I have been expecting this move for a while. As of May 19, they hey will be listed on the NYSE using the symbol IAUX
https://ca.finance.yahoo.com/news/80-gold-announces-approval-listing-100000256.html
For the last few years Golden Goliath Resources aka GNG has been beavering away at its Kwai property in western Ontario, finding all sorts of positive indicators for gold but never anything substantial. Perhaps they are now pivoting away from Kwai, because their latest PR is all about the upcoming exploration on their Wish Ore gold prospect, located not too far away from Kwai. Past prospecting has found some decent gold values plus mineralized boulders in several locations. These leads will be followed up in the coming months with geophysics and more mapping and sampling.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33845109
Minera IRL aka MIRL released its quarterly reports. They continue to limp along , managing to lose money in spite of the high price they are getting for the gold produced by its Corihuarmi min in Peru. No surprise with this bunch, we get no word on developing or selling the Ollachea mine, also in Peru, or on getting rid of its corrupt CEO who is not only vastly overpaid but also siphons shareholder money to friends and family via secret subsidiaries.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33845118
Alexco aka AXU released its quarterly report for its silver/lead/zinc mines and mill in the Yukon Territory. This was an other quarter of development, with ore mined up over 60% from last quarter, much of that production occurring in March. Bermingham continues to deliver as expected, while mining began at Flame & Moth. As expected, although the volume of ore processed at the mill was up, grades and therefore production of metals were down compared to last quarter. The declines should be reversed in Q2 with increased mining volume at higher grades. AXU will also begin a major exploration drilling campaign this quarter.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33845136
FWIW, RBC finally got around to releasing a new analyst report on Centamin aka CEE two weeks after they released their Q1 results. The underline what they call 'optionality' -- I would call them future catalysts -- that are likely to move the share price upward, but for now kept them at Outperform with a target of $C2.21.
I will mention that the IKN newsletter, saying that you can't 'fight the Fed', has lowered the rating on the more speculative of its recommendations, and is selling a few others.
I will also mention that Saville continues to believe the US Dollar Index is close to a top, and not coincidentally, that gold and gold stocks are close to a bottom. As with IKN, he is currently building his cash reserve.
My pleasure. It is a useful exercise for me too.
LC
Pick 4 Contest # 16 Deadline In Less Than 6 Hours Away
Remember to get your picks in before Today’s Close. Below is the link to the board.
https://investorshub.advfn.com/Pick-4-Contest-No-16-41115
Pick 4 Contest # 16 Deadline Friday
Remember to get your picks in before Friday’s Close. Below is the link to the board.
https://investorshub.advfn.com/Pick-4-Contest-No-16-41115
Lone Clone - Thank you for sharing the thumbnail note about the stocks.
Kootenay Silver Set to Commence 15,000 Meters of Drilling at Columba High-Grade Silver Project, Mexico
May 6, 2022
Kootenay Silver Inc. (TSXV: KTN; OTC: KOOYF) (the “Company” or “Kootenay”) is pleased to announce drill crews are on site at the Columba high-grade silver project (the “Property”), located in Chihuahua State, Mexico in preparation to begin the 2022 drill program. Two diamond core drills are scheduled to arrive within the next few days.
Drilling for this 15,000-meter program will focus on several areas on the property, including:
* The F Vein; host to historic high-grade silver underground workings (4 shafts and 6 levels of drifts) measuring over 1,000 meters in length;
* D, and B Veins located 800 metres south and along strike from the F Vein;
* JZ Zone located 700 meters east of the F Vein; and
* East Block located 200 meters east form the JZ Zone.
Initial focus of this program will be on deeper drill testing on the F Vein and expanding on the D and B Vein intercepts. This plan follows up promising results from previous drill programs highlighted by these examples of many:
F Vein
CDH-19-41: 787 gpt silver over 5.95 meters within 650 gpt silver over 7.45 meters and 159 gpt silver
D Vein
CDH-21-110: 932 gpt silver over 6.07 meters within 650 gpt silver over 17.8 meters and 453 gpt silver over 29.9 meters
B Vein
CDH-21-82: 1186 gpt silver over 4.6 meters within 9 meters of 691 gpt silver
JZ Trap Zone:
CDH-21-103; 2035 gpt silver over 6 meters within 805 gpt silver over 17 meters and 333 gpt silver over 44 meters
East Block:
CDH-21-101: 1190 gpt silver over 0.5 meters within 459 gpt silver over 1.6 meters
Sampling and QA/QC at Columba
All technical information for the Columba exploration program is obtained and reported under a formal quality assurance and quality control ("QA/QC") program. Samples are taken from core cut in half with a diamond saw under the direction of qualified geologists and engineers. Samples are then labeled, placed in plastic bags, sealed and with interval and sample numbers recorded. Samples are delivered by the Company to ALS Minerals ("ALS") in Chihuahua. The Company inserts blanks, standards and duplicates at regular intervals as follows. On average a blank is inserted every 100 samples beginning at the start of sampling and again when leaving the mineral zone. Standards are inserted when entering the potential mineralized zone and in the middle of them, on average one in every 25 samples is a standard. Duplicates are taken in the mineralized zone, on average 1 to 2 duplicates for each hole.
The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Systematic assaying of standards, blanks and duplicates is performed for precision and accuracy. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish. All drilling reported is HQ core and has been contracted to Globexplore Drilling from Hermosillo, Sonora, Mexico.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
For additional information, please contact:
James McDonald, CEO and President at 403-880-6016
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
https://www.kootenaysilver.com/news/kootenay/2022/kootenay-silver-set-to-commence-15000-meters-of-drilling-at-columba-high-grade-silver-project-mexico
IAU, CEE, NRN, KRR, KTN, WM, CKG, GOT, OGC, SSL, NSR, CAPT, BTO, EDV
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IAU, CEE, NRN, KRR
I-80 Gold aka IAU announced another set of excellent drill results from the newly-discovered South Pacific zone at its Granite Creek gold property in Nevada, with headline results including 13.8 g/t Au over 2.1M & 25.2 g/t Au over 2.2M in hole iGS21-16 plus 13.6 g/t Au over 4.7M & 17.6 g/t Au over 3.0M in hole iGS21-20. The SPZ has now been extended to a strike length of approximately 600M and a dip length of approximately 250M and remains open for expansion along strike and at depth, and is destined for development and production over the coming few years. On the basis of these results the drill campaign has been extended to 30km. As well, they are extending the decline currently under construction to approach the SPZ Zone.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33808858
Centamin aka CEE released its first quarter report. The Sukari gold mine in Egypt has been in turnaround mode under new management for about a year now, and the results are starting to show from initiatives such as a revised mine plan, building a solar power plant and a paste till plant, and transitioning mining from contractors back to in house. As well, the reinstated exploration programme on the Sukari tenure is starting bear fruit. As expected, production was lower in Q1 at just over 93k oz Au, but CEE maintains their full year guidance of 430k-460 oz, so it is expected better quarters lie ahead as the transitions are completed. As of Mar. 31, their cash balance had declined to $217M, but this is expected to grow over the remainder of the year as transition expenditures end and production and costs decrease. They remain unhedged and debt-free.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33808887
Northern Shield Resources aka NRN announced they have resumed exploration on their Root & Cellar gold/copper prospect in Newfoundland. After some drilling last year, they are back to mapping and sampling around IP anomalies, to be followed up by trenching if they find anything worthwhile. It is revealing that they don't even mention what was once their hot prospect Shot Rock in Nova Scotia, at all any more.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33809268
Karora Resources aka KRR released the Q1 results from their gold mining operations in Australia. It was a difficult quarter due primarily to Covid causing staffing shortages, but they still managed to produce 27489 oz Au and are maintaining their guidance for 2022. They also invested heavily in development this quarter, so their cash balance dropped to $78, but that should start growing again, particularly when they reinstate nickel production later this year.
I'll be interested to see what costs have been when they release their financial results.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33809291
And FWIW, I read several of the large brokerage's outlooks for PM and PM equities today. In general, they are cautious, as the easy monetary policy tailwind turns into an increasing interest rates headwind, and cost inflation eats into margins. That said, RBC also increased their price deck for gold and silver in each of the next five years and the long term by 5-12%.
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KTN
Kootenay Silver aka KTN made a major announcement the other day, but very few heard abut it because it was on behalf of a spun-out subsidiary named Kootenay Resources that is not listed, and for some reason it was decided that neither 'Kootenay Silver' or 'KTN' would appear in the PR. This is just one of the problems with this kind of spinout, another of which was recently foisted on Silver Bull shareholders.
Kootenay Resources was set up to hold the company's properties in BC, of which there are dozens. KTN (and presumably Kootenay Resources too) is a project generator that may do some preliminary exploration on their prospects but looks to farm them out so another company that funds the exploration in exchange for a partial interest. In this case, it is Copley, a gold prospect on the Nechako Plateau. Centerra Gold is earning 70% in exchange for $400k cash and $4M in exploration expenditures.
KTN has been making noises about listing Kootenay Resources; let's hope the $40k goes to pay for that so shareholders can get some benefit.
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WM, CKG, GOT
Of late, when Wallbridge Mining aka WM has released a PR concerning its Fenelon gold project in Quebec, it has contained the results of infill drilling from zones of known mineralization. Instead, this time we hear about drilling in the Ripley Zone, located 1km south of the Fenelon deposits. WM has defined the Ropley deposit over an 800m strike length, and close enough to surface that followup drilling is planned to see if it is open pittable. As well, there will be more drilling into the 1km gap between Ripley and Fenelon. If things go well, it is easy to envisage the open pit being extended southward all the way to Ripley.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33821340
Chesapeake Gold aka CKG released the final results from its most recent drilling campaign on its Metates gold project in Mexico. They grades were significantly higher than those in the existing Resource Report, by 22% in fact, so CKG is going to develop a revised mine plan which will feed into the next Resource Report
https://www.siliconinvestor.com/readmsg.aspx?msgid=33819366&srchtxt=chesapeake
Goliath Resources aka GOT, which is preparing for this year's drilling season on its Golddigger gold/silver prospect in BC's Golden Triangle, released a PR details its drilling plans, including the announcement of the hiring of a four drill rig. This year's programme is expected to include 24km of drilling in 85 holes. The main focus will be on further definition of the the minerlaization already established in the Surebet Zone, in preparation for the first Resource Report.
I continue to be baffled by the way GOT trades, presumably caused the leftover from previous times when it was heavily promoted, but I am not complaining about the higher share prices of late.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33817565&srchtxt=goliath
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OGC
Oceanagold aka OGC has been on a tear lately, and with the release of their Q1 results we find out why. Halle in the US, Didpio in the Philippines, and Macraes in New Zealand all exceeded expectations, Halle very much so, leading to Q1 production of 134k oz Au & 3.5kt Cu, well above expectations, with costs coming in well below expectations. As a results they generated $63M in free cash flow and $79M in profits, allowing them to substantially pay down their debt while increasing their cash stash by over $60M to $195M. OGC also reiterated their annual guidance, which since they outperformed in Q1 means they are either planning on under-promising and over-delivering or that they expect some difficulties later this year. I suspect it is a combination.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33823004
FWIW, BMO as a result kept OGC at Outperform but raised their target by 50 cents to $3.75, while RBC kept them at Outperform but raised their target to $4.
Alas, I never did get around to adding to my OGC shares while they were down in the dumps, something I now regret.
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SSL, NSR, CAPT
Did you anticipate Sandstorm Gold Royalties aka SSL buying Nomad Royalty aka NSR? Me either. Judging by how the two stocks traded in the wake of the announcement El Marketo thinks NSR shareholders got the better of the deal.
But maybe not, because that's not the only deal SSL announced today. Besides spending $C755M for NSR's portfolio, mostly precious metals royalties and streams, SSL is also spending $C525M to buy the Basecore portfolio, mostly related to copper royalties and streams. As well, SSL is trading one of the NPI's it acquired to Horizon Copper in exchange for a royalty on Anamina, $50M cash, shares, and a $105M debenture.
It will be hard to evaluate the eventual impact of this complex deal until a few years have gone by. As a holder of both SSL and NSR shares, I am going to withhold judgment for now.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33827133
https://ca.finance.yahoo.com/news/nomad-royalty-announces-friendly-acquisition-105500407.html
FWIW, TD put out a new analysts report regarding the SSL transactions. They saw the impact as Mixed, keeping SSL at Buy with a target of $13. While liking the increased diversification and guidance, they also comment that, to paraphrase, even their highly-paid professionals will take some time to fully evaluate the potential impacts of this deal.
It's a shame for Capitan Mining aka CAPT that they put out their latest PR in the middle of a downturn for PM stocks. It contains the results of 5 more holes from the Jesus Maria silver Zone on their Cruz de Plata (formerly Penoles) prospect in Durango, Mexico. Four of the holes were stepouts, 2 each extending the minerlaization on either end of the zone, while the other was an infill hole testing the high grade silver shoot in the middle of the zone. It was the latter that generated the headline intercept of 1.5M of 2406 g/t AuEq within 16.8M of 332 g/t AuEq. I was a little skeptical when they started in on this drill programme but it looks like they might be on to something, particularly if they can define other nearby deposits on the property.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33827150
And a few updates from the IKN newsletter, which goes into much more detail on these and related issues.
Anti-mining Petro looks more and more set to become the new President of Colombia.
The Peru Mining Ministry is descending into chaos but it's unlikely the President won't last much longer in office.
Ecuador's pro-mining President completed his first year in office under great pressure and is unlikely to be able to get much of his agenda implemented.
Bottom line, stay away from Ecuador and Colombia and stick with Peru, Chile, and parts of Argentina. Brazil will join the latter once Lula replaces Barsinolo.
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BTO, IAU
i-80 Gold aka IAU released the results from the final hole of the recently-completed drill campaign in the South Pacific Zone of its Granite Creek gold project currently under development in Nevada. It is anticipated the the SPZ and the nearby Ogee Zone will be accessed by extending existing underground workings, so coming up with 16.3 g/t Au over 15.7M and 33.7 g/t over 3.7M in a hole right next to those workings is great news. Over the rest of the year, the existing decline will be extended into the SPZ even while they carry out more drilling followed by a Resource Report. The SPZ remains open along strike and at depth, so the Resource Report, which will include the Ogee Zone, could be spectacular.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33828526&srchtxt=i-80
B2Gold aka BTO released its latest financial quarterlies, and they were pretty darn good. Earning came in above expectations due to costs being lower than expected, with cash costs at $699/oz Au. BTO has already told us that the second half of the year is expected to be stronger, so if they can maintain these low costs they will generate a great deal of cash flow, which as far as I can tell is not yet reflected in the share price. As always, the major risk factor for BTO remains the location of several of its mines in Burkina Faso and especially unstable Mali.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33829871
FWIW, in response TD issued an analyst report on BTO which saw the release as Slightly Positive but kept the rating at Buy with a target of $9.50. Meanwhile BMO kept them at Outperform with a target of $7.
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BTO, EDV, IAU, KTN, SSL
B2Gold aka BTO and Aurion Resources aka AU released the results of the first three holes from their second drill campaign at Helmi, located in the Central Lapland Greenstone Belt in northern Finland.There are 26 more holes to be released, but close to surface intercepts like 2.05 g/t Au over 77.5M from 41.7M down hole, including 4.18 g/t Au over 24.55M are encouraging enough that they have already scheduled another drilling campaign over the summer and fall.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33829914
West African gold miner Endeavour Mining aka EDV released their Q1 results. They highlight them as positive by comparison to Q1 last year, while I found them a little disappointing compared to Q4. But of course Ms. Market gets the final say, and even in a poor environment for PM stocks and stocks in general, EDV is up today on both the LSE and TSX.
The numbers -- 357k oz Au at a cash cost of $723/oz, the latter roughly the same as Q4 -- are certainly encouraging, and it does appear likely they might be able to exceed guidance for the year if this continues. Encouragingly, they did add $90M to their cash stash, growing it to over $1B, while also paying out $101 in shareholder returns via dividends and share buybacks (About 1M shares were bought and cancelled during Q1.) They also continue to focus on exploration, both brownfield and greenfield, The next items in their development pipeline are the expansion at Sabodala-Massawa in Senegal, which is just underway, and an FBS underway at Lafigué in Cote d'Ivoire. They will also be installing a new circuit at Ity to improve reagent consumption and recovery.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33831422
In response, RBC released a new analyst report which saw the release as Positive. They kept EDV at Outperform but increased their target to $46.
Yesterday, i-80 Gold aka IAU released a set of drilling results from the South Pacific Zone at their Granite Creek gold project in Nevada. Today we get results from the nearby Ogee Zone. Both Ogee and SPZ are near the existing underground working at Granite, so IAU is driving a decline from those workings to aid in exploration and to start production once permits are received, hopefully by mid-year. Ogee is projected to be the initial source for ore, so getting results like 27.7 g/t Au over 12.6M, 54.7 g/t Au over 5.9M, 22.9 g/t over 6.4M, & 11.2 g/t over 11.1M in the first holes is very prospective. The ore will be trucked to a nearby facility for processing until IAU has finished renovating their Lone Tree facilities.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33831485
Kootenay Resources aka KTN reports more results from its current drill programme on the California Zone on the Cervantes Au prospect in Sonora, Mexico, JVed with Aztec Resources. Most of the results merely conformed the existence of low grade gold mineralization over decent distances in the California Zone, but they also found a new zone of copper/gold mineralization called Jasper about 600M west of California.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33831578
In response to Sandstorm Gold Royalties aka SSL's announcement of several transformational transactions the other day, TD came out with another, more detailed, analyst report calling the transactions Potentially Positive while keeping SSL at Outperform with a target of $13. They like the increased liquidity and diversification, but remain concerned about the quality of some of the underlying assets.
This also gives me a chance to mention something I forgot the other day, that as the result of the transactions SSL increased their 2022 guidance from 65-70k oz AuEq to 80-85 oz AuEq.
Kootenay Silver (TSX:KTN; OTC:KOOYF) Reports Aztec – Kootenay JV Drilling Intercepts 0.42 gpt Gold over 68.4 Meters Including 2.25 gpt Gold over 10.6 Meters in the California Zone, Cervantes Project, Sonora, Mexico
May 5, 2022
https://www.kootenaysilver.com/news/kootenay/2022/kootenay-silver-reports-aztec-kootenay-jv-drilling-intercepts-042-gpt-gold-over-684-meters-including-225-gpt-gold-over-106-meters-in-the-california-zone-cervantes-project-sonora-mexico
LG.V Lahontan drills 100.3m grading 2.96 gpt Au
I participated in a PP last year on this company. Pretty incredible drill results. That said, since I own shares, I expect this to continue to trade down and ultimately bring my investment value close to $0. Investing in exploration mining companies is supposed to be very high risk and high reward. So far it is mostly just extremely high risk.
https://finance.yahoo.com/news/lahontan-drills-thick-intervals-high-110000659.html
KOOTENAY SILVER REPORTS AZTEC – KOOTENAY JV INTERSECTS 0.87 GPT GOLD OVER 152.4 M INCLUDING 2.05 GPT GOLD OVER 33.5 M FROM CALIFORNIA ZONE AT CERVANTES PROJECT IN SONORA, MEXICO
Initial gold results from 8 additional drill holes are pending
Kootenay Silver Inc. (TSXV: KTN, OTC: KOOYF) (the "Company" or "Kootenay") is pleased to announce additional positive drill results from the Aztec-Kootenay JV on the Cervantes Project located in Sonora, Mexico.
Results continue to intersect wide intervals of good grade gold mineralization with every hole in the California Zone to date hitting wide intervals of anomalous gold in mineralized quartz feldspar porphyry and hydrothermal breccias.
California Zone Drill Highlights
* CAL22-011
0.43 gpt Au over 132.2 meters, including 1.29 gpt Au over 12.2 meters along the north central edge of the mineralized zone.
* CAL22-012
0.87 gpt Au over 152.4 meters, including 2.05 gpt Au over 33.5 meters along the north central edge of the mineralized zone.
* CAL22-014
0.48 gpt Au over 54.9 meters located at the northern edge of the eastern portion of the mineralized zone
To-date, every hole drilled at California has intersected near surface, oxidized gold mineralization with minor copper oxides. There are 8 more holes pending from the California zone including one pending from each of the Jasper and California North targets.
View drill sections here:
CAL22-011 to CAL22-014: https://bit.ly/3jC4v3c
California 2022 RC Drill Program Plan Map: https://bit.ly/37IAoEo
Gold mineralization at the California zone now measures approximately 900 metres long by 250 to 500 metres wide, with demonstrated, continuous mineralization up to 265 metres depth vertically. The porphyry gold-copper mineralization is still open in all directions.
Eight holes are awaiting assay results and will be reported accordingly. The program of Reverse circulation (RC) drilling totaled 26 holes and 4,649 metres. Four main target areas were tested with objectives to better define the open pit, heap leach gold potential of the porphyry oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for north and west extensions of the California mineralization at California North and Jasper, and assess the breccia potential of Purisima East.
All widths are drilled widths, not true widths. Gold mineralization appears to be widely distributed in disseminations, fractures and veinlets within the quartz-feldspar porphyry and related hydrothermal breccias.
Drill samples cuttings are collected every 5 feet (1.52m) from all drill holes. The samples are analyzed by Bureau Veritas for gold with a 30-gram sample size using the method FA430 followed by MA300. Over limits, when present, are analyzed by AR404 or FA550. All holes contain certified blanks, standards, and duplicates as part of the quality control program. The QA/QC has delivered excellent results to date good data integrity. The samples are shipped to and received by Bureau Veritas Minerals laboratory for the gold and multielement geochemical analysis and additional gold results will be received and reported in the next several weeks. Final multielement ICP results are expected to follow the release of the preliminary gold assays and are expected to be received during the second quarter 2022.
Cervantes Property Overview
Cervantes is a highly prospective porphyry gold-copper property located in southeastern Sonora state, Mexico and is held under a joint venture with Aztec Minerals (65%) and Kootenay Silver (35%) respectively. The project lies 160 km east of Hermosillo, Sonora, Mexico within the prolific Laramide porphyry copper belt approximately 265 km southeast of the Cananea porphyry copper-molybdenum mine (Grupo Mexico). Cervantes also lies along an east-west trending gold belt 60 km west of the Mulatos epithermal gold mine (Alamos Gold), 35 km northeast of the Osisko San Antonio gold mine, 45 km west of the La India mine (Agnico Eagle), and 40 km northwest of Santana gold deposit (Minera Alamos). View: Cervantes Project Location Map
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Chihuahua, State and Sonora, State , Mexico, respectively.
For additional information, please contact:
James McDonald, CEO and President at 403-880-6016
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
https://www.kootenaysilver.com/news/kootenay/2022/kootenay-silver-reports-aztec-kootenay-jv-intersects-087-gpt-gold-over-1524-m-including-205-gpt-gold-over-335-m-from-california-zone-at-cervantes-project-in-sonora-mexico
EDV, SSL, HMLO, OGC, RRI, IAU, ORS, WM, KRR, MAI
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EDV, SSL, HMLO
Endeavour Mining akak EDV released a DFS for the expansion of the Sabodala-Massawa gold mine in Senegal by adding circuits to process the refractory sulphide ore. Based on the numbers, including a post-tax IRR of 72% at $1700/oz gold, they have made the decision to go ahead with the project. Capex is only $290M, self-funded from existing oxide ore production from the mine. The expansion is expected to deliver an average annual production of 373koz per year over the next 5 years at an average AISC of $745/oz Au. Construction will commence shortly with first production expected early 2024.
We can expect a steady stream of such announcements from EDV over the coming years as they bring on line a number of development projects.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33786816
FWIW, RBC saw the announcement as positive but kept EDV at Outperform with a target of $44.
Sanstrom Gold Royalties aka SSL released their usual brief first report for Q1 today. Attributable AuEq sales were estimated at 18700 oz, a new record, as were revenues. We'll get more detail and exact numbers in future press releases.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33787208
Hemlo Explorers aka HMLO's share price jumped today on news that ABX has signed on to earn up to an 80% interest in part of HMLO's Plc property, located 25km west of ABX's Hemlo mine. In return ABX is committing to a small PP into the HMLO treasury while spending at least $1M per year on the project. This year's focus this year will be the Idaho Zone, which looks like it could be analogue to GENM's Marathon project under construction 3km to the west.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33787220
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SSL, OGC, EDV, RRI
In the wake of yesterday's PR showcasing good Q1 preliminary results, Sandstorm Gold Royalties aka SSL announced that they are renewing their normal course issuer bid, allowing the buyback of almost 20M shares. Last year's buyback was quite active -- 'In the last twelve months, the Company has purchased 4,651,049 Common Shares pursuant to its NCIB at a weighted average price of approximately C$7.95 per common share on the TSX and alternates and approximately US$6.19 per common share on the NYSE and alternates' -- but I don't expect them to buy back as many this year due to the higher share price.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33788829
FWIW, BMO put out a new analyst report on SSL. Citing indications that AuEq oz are trending above guidance, they kept SSL at Market Perform but increased their target to $9.50.
BMO also put out a new analyst report on Oceanagold aka OGC in the wake of their recently released Reserve Report. It is ominously titled "2021 Drilling Fails to Replace Depletion, but Only Just', and characterize the report as 'slightly negative'. They are keeping OGC at Outperform but dropping their target 25 cents to $3,25.
And BMO also put out a new report on Endeavour Mining aka EDV in the wake of a PR announcing they are going to add a circuit to process the sulphide ore at the Sabodala-Massawa gold mine in Senegal. They agree with the company that this turns the mine into a top-tier asset (whatever that means), keeping EDV at Outperform with a target of $42. They emphasize that EDV remains their Top Pick.
Riverside Resources aka RRI announced that they have completed an expanded drill programme on the Oakes gold prospect in Oantario. No assays are available yet, but their geologists continue to see analogues with other deposit in the Geraldton Greenstone Belt, including the nearby Greenstone Mine.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33788838
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IAU, ORS
i-80 Gold aka IAU released more high grade drill results from beneath the existing workings at their Granite Creek gold mines in Nevada, results promising enough that the drill programme has again been increased. This sulphide mineralization they are finding has been targeted for production later this year depending on permitting. As IAU's autoclave at Lone Creek will not be ready to process the ore for a few years, they have signed an agreement for it to be handled at Nevada Gold Mine's nearby facility.
I wonder when IAU is going to start getting more analyst coverage?
https://www.siliconinvestor.com/readmsg.aspx?msgid=33789991
Orestone Mining aka ORS released the results of another hole on their Captain Au/Cu porphyry prospect in north central BC. They were following up on a target generated by geophysics, but only generated 774m of core essentially devoid of mineralization, which they now believe was cut off by a fault. Future drilling will concentrate on a 2000m by 2000m area where multiple instances of mineralization have already been found. Both of these porphyry targets have only been drilled on the edges so far.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33790078
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WM, MAI, KRR, IAU
Not long ago I opined that, based on everything they have going on, Wallbridge Mining aka WM would have a consistent newsflow this year, and so far I am right. Today we hear about more drilling at their flagship Fenelon gold project on the Detour Greenstone Belt in Quebec. Some of this set of holes was infill drilling, which found new mineralization inside the resource envelope at Fenelon, demonstrating the ability to continue to build the resource from within. WM also reported holes that extend the limits of known mineralization outwards, providing another area for growth. Finally, there were also holes drilled to explore for new deposits and to better define the geology around Fenelon, and again they were successful in both.
This PR contains complete results for 72 holes and partial results for another 6, and drilling in ongoing full blast.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33791822
Minera Alamos aka MAI brought us an update from their recently opened Sanatana gold mine in Sinaloa, Mexico. A planned shutdown in January allowed a number of improvements -- better sequencing, bringing blasting in-house, changing cutoff levels, and so on -- to be implemented after a few weeks of down time and the results have been positive, as witnessed by the gold production numbers -- 890 oz in (part of) January, 1130 oz in February, and 1370 oz in March.
It has been nice to see MAI finally get out from the burden of all those shares being sold willy-nilly by Osisko, but I expect the real increase in the share price to get going this quarter, for two reasons: 1) they will be increasing production by starting mining at the Nicho Norte pit; and 2) increasing production both from the earlier improvements and by mining Nicho Norte should allow the declaration of commercial production, which will allow a whole new class of institutional investors to get involved. (And remember that Santana is only the first of three gold mines in Mexico they will be bringing into production over the next few years.)
https://www.siliconinvestor.com/readmsg.aspx?msgid=33791861
Karora Resources aka KRR announced a new gold Respurce Report for their Beta Hunt mine in Australia. (This RR does not include the nickel mineralization.) Net of mining depletion, they managed to increase M&I Resources by 7% to 1.12M oz Au, and Inferred Resources by 46% to 786k oz Au, chiefly through the first time inclusion of the higher grade Larkin Zone, discovered in 2020 when they were looking for more nickel. Perhaps most importantly, this Resource Report supports KRR's plans to increase production to 185-205k oz Au by 2024.
We will get an updated nickel Resource Report this quarter. Exploration and development drilling at Beat Hunt and Higginsville continues to deliver good results, so I expect a substantial increases in Resources and Reserves to come. Like MAI, KRR has recently broken upwards from a trading range, and I expect the share price to continue upward.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33791893
FWIW, in the wake of yesterday's PR from i-80 Gold aka IAU releasing new underground drill results from their Granite Creek gold property, which will be brought into production, perhaps later this year, when mine studies are permitting are complete, Scotia issued a new analyst report, which saw the results as 'positive' but kept IAU at Sector Outperform with a target of $4.75.
I really need to buy some more IAU.
BTO, IPT
B2Gold aka BTO released an updated Resource Report for the Anaconda gold deposit located 20km from their producing Fekola mine in Mali. It is anticipated that saprolite ore at Anaconda will be mined via open pit and trucked to Fekola for processing beginning next year.
And it should be a significant contribution. The Indicated resource, all oxides, includes 32.4Mt @ 1.12 g/t containing more than 1.1M oz Au, while the Inferred resource, mostly sulfides but also with a significant oxide component, includes 54Mt @ 1.20 g/t containing more than 2M oz Au. (These figures use a $1600/oz Au cutoff; numbers are also available in the Resource Report for other cutoffs.)
BTO continues drilling at Anaconda to expand the resource, and has also allocated $33M to begin development of mine infrastructure aimed at extracting the oxide ore.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33769953
Impact Silver aka IPT released annual results from its silver mines and mills in Zacatecas, Mexico. IPT normally operates around breakeven, but thanks to the high price of Ag (and byproducts Pb and Zn) they actually made a decent profit last year in spite of lower than expected ore grades and cost pressures. I was glad to see them finally getting off their schneids and doing some serious exploration, including buying a drill. They ended the year with over $24M in their cash stash and no debt.
They also announced another ambitious exploration for 2022, mostly looking for new ore around their currently and past producing mines, but also looking to define new ore bodies for future production. They are also looking at bringing the Capire mine back into production using new processing technology.
High silver prices rescued IPT from what would have been a difficult year in 2021. I am hoping that this year they can do a better job of capitalizing on them by mining more and higher grade ore.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33770003
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WM, BTO, IPT
Wallbridge Mining aka WM brings us news that they have completed 1800m of underground access tunnels into the heart of the Area 51 gold deposit on the Fenelon property in Quebec they are busy developing. This has allowed them to use direct sampling to confirm the grades in the recently release initial Resource Report, plus they have begun underground drilling, hitting intercepts like 2.23 g/t Au over 25.35M including 11.77 g/t Au over 2.85M. This drilling will be used to convert Inferred Resources to M&I.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33771784
In the wake of yesterday's PR from B2Gold aka BTO releasing a Resource Report for the Anaconda deposit near their Fekola Au mine in Mali, TD released a new analyst report. They saw the impact as positive but kept BTO at Buy with a target of $9.
And yesterday I was far too gentle in my discussion of Impact Silver aka IPT's annual results, something made clear by the IKN blog's trashing of the company, which reminded me why I am glad I only have a small position.
https://iknnews.com/impact-silver-ipt-v-and-a-reminder-of-the-mind-numbing-mediocrity-of-the-silver-sector/#post-comments
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EDV, IAU, RIO
Enedeavour Mining aka EDV published its annual report for last year. I didn't see anything that hasn't already been released -- which isn't to say I am correct in that assertion -- other than that Q4 cash costs declined even further to only $639/ oz Au produced.
https://ca.finance.yahoo.com/news/annual-financial-report-060000790.html
For Edison's thorough review of what is in EDV's annuals, see this link. As Edison points out, even though they had already adjusted their numbers upwards on the basis of previously published information, EDV still beat those adjusted numbers handily, marking the ninth straight year of outperformance. And based on average multiple of its gold mining peers, they see a fair price for EDV as $C50.93. EDV remains materially discounted relative to their peers.
https://www.edisongroup.com/wp-content/uploads/2022/03/Endeavour-Mining-Ninth-successive-year-of-outperformance.pdf
i-80 Gold aka IAU released its Q4 and annual results. As they are not quite in production yet, this NR is mostly a recap of their accomplishments as they amassed a number of PM deposits in Nevada along with the infrastructure which will be required to bring them into production over the next few years. The new number to note is that at year end they had over $87M in cash on hand as well as over $50M in restricted cash. Together with the gold prepayment and silver stream deals they have in place, this will be more than enough to cover capex and opex until they become cash flow positive.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33779145
Rio2 aka RIO announced they had received from WPM the first $25M of the gold stream prepayment for the Fenix gold mine they are developing in northern Chile. Another $25M will be be forthcoming when they get the EIA permit, expected in March, so they are all set up to get construction underway as permits allow.
https://ca.finance.yahoo.com/news/rio2-announces-receipt-first-deposit-110000112.html
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WM, GQC, GOT
Wallbridge Mining aka WM is best known for Fenelon and Martiniere, two close to each other gold deposits in Quebec they are drilling up preparatory (I believe) for packaging and sale, but they have other irons in the fire. There are a number of nickel and PGM properties around Sudbury we never hear about these days, but more importatntly they have amassed a large set of properties covering much of the Detour-Fenelon Trend, arguably the most underexplored greenstone belt in Quebec.
This PR contains the results of ongoing exploration on those other properties surrounding Fenelon and Martiniere. First up, we hear about the discovery of a new zone containing narrow but high grade gold intercepts at Graset, close enough to the east of Fenelon to be be considered as a satellite production area for the eventual mine. This will be followed up by future drilling.
Then we hear news from an ongoing drill programme at their JV with Midland on Casault, which borders Martiniere to the west. The results are promising enough that the drill programme has been extended.
In addition, we are awaiting the results of a grassroots exploration programme on a number nearby prospects involving mapping and sampling as well as geophysics.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33781130&srchtxt=wallbridge
There have been multiple false alarms that Goldquest aka GQC was about to get the permits it needs to develop the Romero gold deposit in the Dominican Republic. Those rumours were all false.
Now we get a PR from GQC which is pretty well as misleading. They try to spin recent developments as positive, even though the sum total is that there is still no timeline for the permit even to be considered, no mater what flowery prose the politicians use. I guess it is a slight positive that they are restarting exploration in the DR, albeit we are given no details as to what they are doing and where.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33782189
Goliath Resources aka GOT released a PR touting the exploration potential of their 100%-owned Golddigger property in BC's Golden Triangle, where they are already identified a robust gold deposit called Surebet as well as another prospect called the New Extension Zone. Expert studies of samples from the property indicate that both Surebet and New Extension are expressions of a deep and very large mineralizing system, so this year's exploration, as well as expanding Surebet, will be tasked with looking for extensions downdip of Surebet as well as looking for further faulted offsets.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33782213
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OGC
Oceanagold aka OGC released an extremely detailed update on their Resources and Reserves today. Set aside an hour if you want to go through it in detail, but the bottom line is that Proven and Probable Reserves company-wide were down about 7% in the last year, primarily due to mining depletion, while Measured and Indicated Resources were down almost 10%, partly due to mining depletion but also reclassification of some former Resources at Macraes in New Zealand as no longer considered to be economic. As well, their much smaller Inferred Resources declined almost 10% as the result of conversion to M&I through drilling.
These declines do look alarming at first glance, but much of the decline is due to exactly where they are in the development and exploitation of each of their mines and prospects. Resources and Reserves will start growing again, or at least not declining, when planned exploration and development ramps up, particularly at Didipio when exploration halted altogether during the licensing kerfuffle. That said, I would not be surprised if they are looking for acqusiitions as another way to bolster those numbers.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33783682
From BMR: GGI GGIFF
Great news with respect to Nickel Mountain this morning, confirming what we’ve suspected all along: There’s a deep source to some of the highest-grade Nickel ever found on the planet. Not only a deep source, but potentially a BIG deep source. This also fits with the general nature of the prolific Eskay Camp – just about everything in this district, geologically, is super-sized (KSM, Brucejack, Eskay Creek, Treaty Creek, Eskay Consolidated, etc.). Nickel Mountain should be no different.
Present management notwithstanding, for the first time in quite a while we are recommending accumulation of Garibaldi Resources (GGI, TSX-V) as stated in our post March 9, 2022. Technically, the stock is preparing to break out above a 4-year downtrend line.
We’ll have more to share on this soon.
re mglqf
I don't think Magna will awaken until they publish their 2021 results. IF they were profitable in Q4 and show the market that they represent an 80K/year producer that will be profitable going forward, they should get a rerate.
Over 2022, I expect positive news out of the silver project to give the market assurance that they will increase production in the next couple of years. Investors in this stock will have to understand and appreciate the "mexican" way of mining. They don't drill the crap out of the deposit. They drill to define the near term targets and grades. Reserves may not rise in a predictable and regular pattern. They are focused on cashflow and profitable operations. The silver project will be a low capex mine that will start construction without the normal, pea, pfs, fs routine.
They will likely do a pea but then will make a build decision. Capex for the new mine will come from San Francisco cashflow.
We shouldn't have too long to wait. Annual report will be published in April.
MGR.V / MGLQF: appears to be the dreaded "doesn't appreciate under pm strength" but "goes down on pm weakness"
story is great; so we wait for interest-
g/l all
West African gold producer Endeavour Mining aka EDV announced they are selling the producing Karma mine in Burkina Faso, which they describe as 'non-core', effective immediately. As a result they reduced their 2022 guidance by about 6%, but also slightly reduced their company-wide AISC estimate for this year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33753271
I should also mention that Edison has a new comprehensive report out on EDV. If you can use this link directly you'll have to sign up for a free membership, which is worth it.
https://www.edisongroup.com/wp-content/uploads/2022/03/Endeavour-Mining-Forecasts-ahead-of-St-Patricka%C2%80%C2%99s-day-results-2.pdf
Karora Resources aka KRR released their financial results for last year, featuring record revenue of $264M and cash flow of over $106M. We already knew 2021 production reached the top end of guidance, and now we hear that costs were at the bottom end of guidance. But in spite of this, the impact of increased costs meant profits were down in 2021 compared to 2020. I am sure that It is hard to predict the effects of Covid, inflation, and supply chain issues on costs for 2022, but having begun mining at the high grade Sporgos open pit already, plus bringing into production newly-discovered mineralization at Beta Hunt plus the newly upgraded mill should help, as will the recent nickel discoveries at Beta Hunt.
They are sticking to the 2022 guidance released last month, 110-135k oz AU at an AISC of $960-1050/oz plus 450-550t Ni.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33756772
As part of a long and detailed article on country risk in various Latin American mining nations, the IKN newsletter had a useful warning this weekend, that a stridently anti-mining candidate is a virtual certainty to win the upcoming Colombian election. So Colombia joins Ecuador and Nicaragua on my personal Avoid list. Note that even as certain elements continue to mistakenly fuss over the new Chilean president, Chile is definitely NOT on that list.
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Alexco aka AXU released the final yearend results from their silver mines and mill in the Yukon, and it was definitely a mixed bag at best. On the positive side, the continue to prove up their mill, which is exceeding recovery expectations and at times running above nameplate capacity. As well, they now have two mines in operation with multiple mining faces operational in each. However, problems with supply chains and Covid have delayed their ramp-up to full production, which was supposed to happen this quarter, has been delayed till Q3.
These seem to me to be the usual start up problems you have with any new mining operation, particularly in the time of Covid. Although they have been losing money during the startup, they still have plenty of cash to take them through to that point, which should be mere months away, when they should begin producing free cash flow and profits, so I am staying the course with my shares.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33766849
Karora Resources aka KRR has been trading like a champ of late, finally getting recognition for the growing gold and nickel production from its mines and mill in Australia. You may have noticed a bump in volume on Monday, which involved on this PR announcing that KRR has been included in the GDX Gold Miners Index. I expect to see more analyst coverage of the stock in coming months as it gains more visibility.
https://ca.finance.yahoo.com/news/karora-resources-announces-inclusion-gdx-114500545.html
We got another set of results from Kootenay Silver aka KTN's JV with Aztec Minerals on the California Zone on the Cervantes gold prospect in Sonora, Mexico. Two of the holes were located along the edges of the mineralization and intersected long intervals of low grade mineralization, while the third was in the centre of the mineralization and delivered the highlight intersect of 0.53 g't Au over 138.3Mm including 10.67M of 1.622 g/t Au. They note that these are apparent widths, and that the mineralization is dispersed into breccias and porphyry. The California Zone is now 900M long, 250-500M wide, and up to 265M deep. We'll see how much the remaining 8 holes can add to that when they release the assays next quarter.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33768453
My notes say that Wallbridge Mining aka WM and their JV partner Midland were going to begin drilling on the Casault gold project last August, but today we finally got the announcement of the start of drilling to follow up on the gold discovery the JV made on the property last year. Casault is loctaed on the Detour trend in Quebec, adjoining WM's Martinere project, which itself adjoins WM's flagship Fenelon property. Reflecting Casault's secondary status, the drill programme encompasses only three holes, two in the vicinity of the discovery hole and the third, which will test a magnetic high on the same structure, a kilometre away.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33768580
The IKN newsletter brings us news that Doug Ramshaw, the President of Minera Alamos aka MAI, bought another 100k shares of his company on the open market last week, bringing his total holdings to 6.5M shares. That's quite the show of confidence. He, I, and IKN are all sure that MAI will finally get its due this year as they declare commerciality at their Santana gold mine in Mexico and then announce which of their two other mines-to-be will be built first.
Does This Make Sense?
Mike Savage
March 16, 2022
Does this make sense? As I am writing this on March 15th., the Fed is beginning its 2-day meeting which will conclude tomorrow with an anticipated .25% interest rate hike- or maybe .50. In any case, it is a FAR cry from what they would need to do to have any major impact on inflation which just today was measured in double-digits for the first time since Bloomberg has been keeping track.
At the same time the stock market is rising and commodities of all sorts are being hammered lower even though the outlook for future prices couldn’t be brighter. (Do I smell major banks crushing prices so they can buy low and ride the coming wave higher?)
Why it makes no sense is that the companies that are seeing their shares rise are the ones paying the costs of rising input costs that will likely put a hurting on their profit margins going forward. At the same time those producing the goods that are costing more- and should lead to record profits are getting hammered lower.
This is similar to what we see leading into every Fed meeting. The deck chairs on the Titanic have to be lined up just right so they look good when their announcement is made. My personal take on this one is that they are likely setting this up so they can come out and say input prices are easing so we will only raise .25% rather than .5%. Of course, that is speculation on my part, but it appears to make sense.
The reasons I believe higher (and maybe drastically higher) costs are on the way are:
* Russia and Ukraine have halted exports of grains and many other necessary goods
* Argentina has halted exports of Soy products
* Moldova, Hungary and Serbia have banned exports of farm goods
* Trade routes and supply chains are being disrupted by wars and continued lockdowns
* Russia, China and many other countries are looking to bypass the US dollar in international trade which could lead to a massive decline in the purchasing power of our currency. So far, I know of China, Russia, Iran, India, Pakistan and it is appearing that Saudi Arabia is leaning that way.
* The world has been experiencing drastic weather events that have led to less than stellar harvests across the globe. There are also reports that our farmers here in the USA are having trouble sourcing fertilizer and nitrogen and, if found, the prices are skyrocketing so they may be planting crops that require less fertilizer- like replacing corn with soybeans, etc.
* There appears to be no help coming in getting greater oil production from OPEC or anyone else for that matter and the current US administration appears to be hell-bent on not allowing our domestic producers to do their jobs.
* The rising cost of fossil fuels leads to higher prices for virtually everything. Many products are manufactured with the fossil fuels and everything has to get delivered.
A friend of mine who has a large truck says that the price of fuel is up $125.00 per DAY in his business- for ONE truck.
It appears to me that the BTFD strategy should work out well here for both commodities and the companies that produce them. I believe that the hardest part of investing these days has to be the constant manipulation and distortion of all prices and having to wait for the “markets” to finally assert themselves and reveal reality as opposed to the illusion we have witnessed for the last 15-20 years.
Since all of our debt-based system values everything in US dollars (a debt-based instrument itself) I have to ask- what is the value of a unit of debt that can’t possibly be repaid if it keeps anywhere near its current perceived value? What is the value of ANY promise that cannot be kept?
Then, I have to ask what will the VALUE of gold, silver, oil, most commodities be when the paper promises are exposed for what they are- a fantasy?
I believe that the answer will stun most people. Don’t let that be you!
Be Prepared!
https://lemetropolecafe.com/hemingway_table.cfm?pid=17553 (sub. req.) Painless 2 week free trial available
These numbers combined with the probability of a metals price lift off in 2024 make this one to watch.
MGR.V /MGLQF - 2 hour analysis posted...
...of if/how Magna could achieve a 100k gold ounces/year production rate.
A lot to digest but link below to a PDF I posted.
If you look at the big pre-feas exhibit you'll see the strip ratio drops significantly in 2023 & 2024. If we're able to keep daily mining rates even flat from 2022 (~82,000 TPD) it appears we could fill up the 22,000 TPD crushing capacity and achieve at least a 90k oz/year run rate.
My analysis at CEO.CA
Oceanagold aka OGC released a set of drilling results from their Haile gold mine in South Carolina. They have been reporting assays from Haile Underground only once a year, so they have plenty of good intercepts to share, like 7.45 g/t Au over 43.4M from 338.6M at the Horseshoe Extension, which will be mined next, and 7.77 g/t Au over 101.3M from 399.2M at Palomino, which is next in line after Horseshoe for mining. There were also promising results from other prospects.
OGC seems to be on to a good thing here, in terms of exploration and development at Haile. As they mine underground, this opens up new areas for exploration which so far have been fruitful. Eventually they will run out of new deposits to find at Haile, but for now it is 'lather, rinse, repeat', so to speak.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33728239
Wallbridge Mining aka WM closed its latest PP. It is no surprise it was filled quickly, given how ludicrously low the share rpice is these days. Why didn't they raise the cash when the share price was more than triple current levels? Why didn't I sell more shares when the share price was more than triple current levels?
https://ca.finance.yahoo.com/news/wallbridge-mining-company-limited-announces-210100121.html
I'll be the first to admit I had low expectations for Kootenay Silver aka KTN's JV with Aztec Minerals on the Cevantes Au/Ag/Cu prospect in Sonoma Mexico, but this is changing now that hey are starting to define a proper ore body at the California target, with the headline intersection for the latest release being 1.486 g/t Au over 136.8M including 51.7M of 3.424 g/t Au in a hole located 50M from another hole that pulled a similar set of assays. California has now been extended to 900+M long, 250-500M wide, and up to 265M deep, with the assays from 13 more holes, which also include several exploratory holes on other prospects, still being analyzed in the assay lab.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33737248
Oceanagold aka OGC continued their recent flurry of NRs by releasing some nice results from the WHP target on its Waihi Au/Ag property in New Zealand, The headline assay was 39.1 g/t Au and 73.4 g/t Ag over 10.3M, but there were a number of other eye-catching intersections among the 10 holes. These results, from drilling in 20221 along the East Graben vein, will feed into a new Resource Report expected shortly, and there is already a further drilling campaign underway, and they continue to advance permitting for production as they refine the mine plan for the North Waihi project.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33732698&srchtxt=oceanagold
Goliath Resources aka GOT, who are exploring for gold in BC's Golden Triangle, remains very popular with investors. They announced an $11M finacing on Feb, 11, then increased it to almost $14M Feb. 22, and now they have added a further $88k on top. People are definitely expecting positive results from this year's exploration at Surebet.
https://ca.finance.yahoo.com/news/goliath-financing-increased-14-610-120000331.html
Last week i-80 Gold aka IAU announced the start of development at Granite Creek, the first of three underground Au mines in Nevada (along with an open pit mine) that will be coming into production over the next three years. Today we hear about the start of development of the second, located at McCoy-Cove, already known to host one of the highest grading gold deposits in North America, with reserves grading over 10 g/t Au. The have begun building a decline which will allow a major underground drilling campaign H2 and a feasibility study next year. As well, to run the project they have hired a veteran manager from Nevada Gold Mines, their partner on multiple projects past and present.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33745161
We had two NRs from Teuton Resources aka TUO last week.
The first was an omnibus release catching us up on three separate initiatives:
1) TUO has acquired via a PP an approximate 8% stake in Sanatana Resources aka STA, citing poteital similarities between TUO and partner's Treaty Creek project and STA's nearby Oswegee Dome prospect.
2) TUO has puchased a large flat-lying property on the Granduc Mining Road which will serve as a staging area for multiple TUO properties in the area, and could be used to build a mill if the exploration yields enough fruit. (BTW, it is located next to the mill site from the old Scottie Mine.)
3) Most interesting of all, we get news on contemplated spinouts, setting the stage for what will happen with Treaty Creek. They mention that both of their JV partners have completed or are near to completing a spinout of their non-Treaty Creek properties before going on to say they are comtemplating a similar spinout themselves.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33745196
A few days later, TUO released further results from last fall's sampling programme on the Swann Zone on its Harry project (located near that staging property they just bought). This is a JV with OPT and featured a headline assays of 285.4 g/t Au and 1872 g/t Ag, and 122.4 g/t Au and 1,949 g/t Ag. They also completed a very small drill programme, for which results are still pending. OPT seems very gung ho on Harry, so I expect this year's exploration programme to be very vigorous.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33745231
I did some reading on Nicaragua over the weekend and as a result followed through on my decision to sell the Calibre Mining aka CXB shares I acquired in the Fiore Gold takeover because I am so disgusted with the political situation in Nicaragua. What makes it especially off-putting for me is that I was a strong supporter of Daniel Mendoza when he was leading the successful rebellion against the brutal American-backed regime which was then in power. Now he has become even worse than they were, sad to say.
(FWIW, with some of the money I bought a position in copper/molybdenum producer Amerigo Resources aka ARG, playing the copper bull for both capital gains and dividends.)
Capitan Mining aka CAPT certainly picked the right day to release some stellar drilling results from the Jesus Maria Zone on their Peñoles Ag/Au/Pb/Zn property in Durango Mexico. The combination of a breakout by PMs and a headline result of 1.Mm of 860.2 g/t AgEq Within 10.7M of 435.02 g/t AgEq pushed the stock close to an ATH. Not only were these assays able to extend the high grade shoot (which remains open at depth), but they also discovered a new zone of Au/Ag mineralization north of Jose Maria.
So far we have only received assays from 4 holes;I look forward to seeing what they have found in the remaining 11 holes.
BTW, they are also changing the name of the property to Cruz de Plata.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33747713
i-80 Gold aka IAU surprised me by announcing the first sale of gold in the company's history. It turns out the production is not from one of the multiple Nevada gold projects they are building; rather, it is from the residual ore on the existing leach pads at Lone Tree property. They expect to begin adding more ore to pads from the nearby Brooks deposit in the second half of the year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=33751070
I have had minimal exposure to Russia, via a small very underwater holding in Orsu Metals, aka OSU, who have a gold property in southern Russia. With today's announcement that they will likely become insolvent due to the boycotts of Russian banks making it impossible to fund their operations, I sold my remaining shares for a 94% loss. Did I mention it was a very small position...
https://www.siliconinvestor.com/readmsg.aspx?msgid=33750998
MGR.V /MGLQF - what to watch for...
...once you have taken a position:
1. Open pit mine burning a lot of diesel. We need gold to rise along with oil prices. This is a low-grade open pit.
2. Ounces laid on leach pad (e.g, assayed grade x tonnes) vs. Ounces produced (e.g. recovery). Will be important to look at recent quarters to see it actual recovery = 43-101 recovey. Issue with Timmins Gold under the second management team who apparently messed mine up was the build up of inventory as they weren’t hitting targeted leach pad recoveries.
San Francisco was the mine of Timmins Gold (who became Alio Gold after screwing up.
Magna team is the team that successfully brought San Francisco into production and ramped it up, not the management team that ran it into the ground!
Thanks for posting on this board regarding MGR.
History in the Making
By Craig Hemke
March 8, 2022
To paraphrase Lenin, decades will go by with not much happening and then a decade's worth of change will happen in a matter of weeks. Well, here we are.
It was just last week that we wrote about COMEX precious metal prices breaking out. But this is more than that. We now stand at the precipice of an epochal change in the pricing structure. The recent action in nickel and other base metals have exposed the fraudulent cracks inherent to the digital derivative and fractional reserve pricing scheme, and the world is taking notice.
For the past several years, we've asked you to monitor palladium as it potentially held the key to breaking the London/New York pricing cartel. Could a breakout and short squeeze in this metal lead the investment world to question the fractional reserve and just-in-time delivery methods of the derivative-based pricing scheme employed in all of the metals? With over 40% of global palladium production coming from Russia, this is still a very real possibility.
But the focus today is nickel. By now you've heard of the extreme price move and short squeeze that has occurred over the past few days. If not, here's a chart that will catch your eye:
And you should be sure to note that, as I type this on Tuesday morning, the price is locked limit up and nickel is currently not trading at all.
But here's the thing, the London Metals Exchange (LME) is where the price is currently locked. This exchange has been openly in backwardation (demonstrating short supply) in six base metals— including nickel—for the past few weeks, and now they are attempting to change the trading rules in order to forestall a complete collapse of their pricing scheme.
Earlier today, the LME announced that all trading was being halted in nickel and that even some legally-processed trades were being cancelled. Cancelled! The exchange is also "giving consideration to a possible multi-day closure". See the official notice below:
If this doesn't work to calm things, and if the other base metals soon trade into a similar situation, the LME will face an extinction-level event. While this will be catastrophic to anyone short and any party needing short-term delivery of the physical metal, this event—should it play out—also has the potential to FINALLY break the Bullion Bank fractional reserve and digital delivery pricing scheme in gold and silver, too.
Why?
Because as we may already be seeing, once the global investment community figures out that it's all a scam—that there are as many as 100 digital/pretend ounces for every physical ounce backing the pricing scheme—confidence will rapidly collapse. There will be a run on physical precious metal, and only those who hold it nearby will be determined to be the actual owner.
Those with ETFs, unallocated accounts, futures contracts, and the like will all be left holding the bag. Don't let that be you!
These are truly unprecedented times, and as Lenin said, decades of history are taking place in a matter of weeks. The U.S. and EU are working to isolate Russia by excluding them from the SWIFT international payments system. Russia will soon turn to China and others to market their resources and then establish new monetary platforms for the trade. Western fiat currency values will accelerate their decline, and the removal of Russia's base and precious metal supply from the current pricing scheme will likely bring its collapse.
We've warned about these eventualities for over a decade, but NOW is the time to finally prepare fully for these events.
https://www.sprottmoney.com/blog/History-in-the-Making-Craig-Hemke-March-08-2022
Aurcana Silver Provides Operations Update
Vancouver, BC – March 8, 2022 – Aurcana SILVER Corporation ("Aurcana" or the "Company") (TSXV: AUN; OTCQF: AUNFF) provides the following update on operations at its wholly owned Revenue-Virginius Mine located in Ouray, Colorado, USA.
Mining and development operations have continued to focus on the completion of the #1 Alimak raise hoist / elevator system (the “#1 Raise Hoist”) throughout January and most of February. As a result of extreme winter weather conditions at the mine site during the second half of February, the site has been periodically inaccessible. Due to the high cost of maintaining the Company’s labor on standby and the higher cost of winter operations in general, the Company has temporarily suspended mining operations in order to ensure the efficient use of the Company’s resources and to conserve cash during the immediate term.
Based on the progress at site to date, the Company’s anticipated plans for resumption of work, the completion of the #1 Raise Hoist remains targeted for the second quarter of 2022. Completion of the #1 Raise Hoist is essential to reducing underground travel time for mine workers and for safe and sustainable access to the upper levels of the Virginius Vein. The Company believes that this hoisting system will have an immediate and long-term positive impact on mining productivity, as well as on subsequent mine development and production and mill production. The improved access to the upper levels of the Virginius and other veins is also expected to enhance future exploration and development activities at the mine.
Operations are anticipated to resume as soon as it is practical and cost effective to do so, with an initial priority focus on activities associated with completion of the #1 Raise Hoist. The Company then anticipates that operations at the mine will ramp to full production as quickly as possible thereafter following the completion of the #1 Raise Hoist.
Qualified Person Statement
The scientific and technical content of this news release was reviewed and approved by Michael Gross, P. Geo, a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
ABOUT AURCANA SILVER CORPORATION
Aurcana Silver Corporation owns the Revenue-Virginius Mine, in Colorado, and the Shafter-Presidio Silver Project in Texas, US. The primary resource at Shafter and Revenue-Virginius is silver. Both are fully permitted for production.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA SILVER CORPORATION
“Kevin Drover”
President & CEO
For further information, visit the website at www.aurcana.com or contact:
Aurcana Silver Corporation
850 – 789 West Pender Street
Vancouver, BC V6C 1H2
Phone: (604) 331-9333
https://www.aurcana.com/news/2022/index.php?content_id=494
Buying MGLQF here. Gracias guys.
MGR.V - gold favourite and strong buy!
Woke up today planning on buying a big position in Magna because in my gold producer chart list literally every single producer has exploded up in last month EXCEPT MAGNA. At least for a trade it was a no brainer.
Disclosure: I bought 60,000 shares at 0.83 this morning, but paying up with stock up 12% this morning on the Argonaut news. No position before.
Then news dropped this morning that Argonaut sold the 9.74mm shares they owned. It traded in a single Cormark-to-Corkmark block trade yesterday (Mar 7). Magna issued the shares to Alio Gold when buying the San Francisco mine exactly two years and two days ago and Alio and Argonaut later merged.
It think this block trade will mark the 2022 bottom in Magna gold. So I paid up for my position today.
I've been chatting with shareholders that have been long there for over a year and the consensus for 2022 is:
- hitting close to a 100k production run rate (25k poured per quarter, would require like ~35k placed on pads. Later in 2022 thing.
- resource update for higher gold price showing +10 year mine life at 100k/year. This could be in March! You can see this coming from the latest presentation (1.4mm in M&I resources at $1000 gold) to over
- Higher production than last quarter (21k oz placed on pads, 15.5k oz produced), leading to falling cash costs through the year.
There is a great board over at CEO.CA (mostly Canadian resource investors). I've been blowing it up this morning if you want to look. I'm @energyrealist over there! I'll post some high level stuf on valuation there now.
See page 9 of the presentation for the M&I resources at $1500 gold.
Presentation
Here is the CEO board:
CEO Magna Board
Magna Gold, mgr.v/mglqf US$.5998
Magna is a profitable gold producer at about 75-80K/yr. Has about 7 years of production left. Magna is looking for near term production from nearby projects and bought several silver prospects last year. Margarita is the best near term prospect for production and today Magna reported first batch of drill results. These are very good, high grade, shallow holes. Goal is to get to production very quickly. May have to change the name to Magna Gold and Silver!
https://finance.yahoo.com/news/magna-gold-drills-12-80-120000268.html
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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