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IAU, GOT, RRI, MIRL
McCoy-Cove is one of three Nevada projects being advanced toward production by i-80 Gold aka IAU. The property is already known to contain some of the highest gold grades in North America, emphatically confirmed by the results in this PR from the Gap Zone, with intercepts like 27.0 g/t Au & 9.2 g/t Ag over 8.0m, 10.6 g/t Au & 5.2 g/t Ag over 38.8m, and 11.1 g/t Au & 3.4 g/t Ag over 20.6 m. Drilling has now moved on to the Helen Zone and will continue through early next year.
Once this drill campaign is complete, IAU will produce a new Resource Report and an FBS. Meanwhile they continue to advance permitting and mine planning as well as hydrological research. Meanwhile, the share price has been hit the recent selloff in PMs and related equities and is now at a good level to start or add to a position.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34408335
Sadly, Goliath Resources aka GOT is back to releasing PRs about its Goldigger Au/Ag prospect in BC's Golden Triangle that do not contain assays. That said, they do appear to have found a third shear that appears to contain mineralization that was fed by the Golden Gate Feeder zone. (Unfortunately they have named this new shear the Golden Gate zone, not to be coffused with the Golden Gate Feeder zone.) Although the core contains abundant visible gold, it will require assays before we really know if this is a significant a discovery as it seems.
Meanwhile, GOT is up strongly on a bad day for PMs. I really do not understand the trading in this stock.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34408384
Prospect generator Riverside Resources aka RRI diversified its holdings from its usual base in Mexico a few years ago by acquiring some gold prospects in Ontario. So far this has been a profitable venture, as they sold on some of the properties and retained the ones they like best.
Now they are establishing a foothold in southern BC, just across the border from the Republic District, a well-known gold camp in northern Washington. Elly covers over 107 sq km and according to the company, is s prospective for low sulfidation epithermal style Au/Ag mineralization. Through exploration, RRI has already identified several prospects along the northern extension ofthe Republic Graben, the first named one being Bunch Grass. Mapping and sampling and field exploration continues on the property.
I expect RRI will continue its usual pattern of doing enough exploration to attract a JV partner to pay for further exploration.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34412353
The IKN newsletter brings us two bits of news about Minera IRL aka MIRL. The first item is positive, that in August they sold 1607 oz Au from their Corihuarmi mine in Peru, up from very low levels the month before. Alas, the second item is very negative. Since MIRL have failed to follow through on the deal they made last year with locals around Corihuarmi, a new blockade to cut off the mine is planned for the end of September.
RIO, SVB, KTN, CKG, MAI
Rio2 aka RIO released an FBS for its Fenix gold project in northern Chile, and the numbers look good, with an after tax IRR of 25.8% and a payback period of 2.5 years, with initial capex of $117M (some already spent vs. a discounted NPV of $210M. The construction timeline is 14 months after receipt of permits to produce 91k oz Au for 12 years followed 54k per year for 5 more years.
But of course, the key words in the above paragraph right now are 'after receipt of permits. The current Chilean government started out as anti-mining and managed to delay the granting of permits to a number of mining projects including Fenix. But the government has now divested itself of the anti-mining types, and the new new mining minister has vowed to speed up permitting. The IKN newsletter this weekend also detailed a number of other indicators indicating RIO's permit appeal may happen very soon, and in a much more favourable atmosphere than even 6 months ago.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34405742
We got some interesting news from Silver Bull Resources aka SVB regarding its litigation against the Mexican government regarding its Sierra Mojada project, which has been subject to an illegal blockade for more than four years, keeping SVB from accessing the property. SVB is seeking $178M in damages for what what they are now terming a de facto expropriation of the land due to the Mexican government being unwilling to act against the bloackade.
Most recently, there was a failed mediation effort. Now that the 90-day mediation period has expired, they have hired a leading lawyer in the field to lead their claim, with the best news being that the firm is willing to take on the case on a contingency basis, i.e.their $9.5M fee will come out of any settlement. If these experts are certain enough of the validity of the claim to operate on a contingency basis, I'll take their word for it....
I do find it interesting that the share price has not moved in response. Maybe SVB needs to clarify what they will do with any money they are awarded.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34407065
In June Kootenay Silver aka KTN announced they now owned 100% of the Columba silver prospect in Chinhuahua, Mexico, and then we got two PRs early last month detailing why KTN thinks they can really make something of the property. Now we hear that a new drill programme has commenced.
This campaign will consist of 12-15 holes totalling 3000m, and will focus on extending minerlaization at the D Vein, which already has a horizontal extent of 400m and depth of up to 400m, with the feature intercept being 34.45m downhole length @ 540 g/t Ag with 0.26 g/t Au, 0.37% Pb, and 1.56% Zn.
If this drill campaign is successful, they will drill another 19 holes totalling 7000m, with more exploration on other veins and prospects planned over the next year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34407093
Chesapeake Gold aka CKG has been working on Metates, a very large but low grade Au/Ag deposit in Durango, Mexico for many years, advancing various scenarios that have failed to catch the attention of the market, Their latest efforts involve speeding up the oxidation of the sulfide materials, something at which they are having some success, according to the results reported in this PR. Next up will be testing cyanide leaching on the oxidized ore, the results of which will be part of a PFBS that CKG will release next year.
Will this approach finally realize the value in Metates? Personally, I doubt it, but maybe higher PM prices will finally do the trick. And then there are the concession problems...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34407139
The IKN newsletter this last weekend ran a very detailed analysis of Minera Alamos aka MAI's Q2 results and came to a similar conclusion as I did. Using simply Santana and ignoring everything else, IKN generated a target of 35 cents. In other words, if you are patient, this is a good time to buy or add to your holdings. I wish I had been paying close enough attention to grab some of those shares that were sold for 26.5 cents last week, though judging by today's trading on a bad day for PM stocks I may get another chance.
Saville, noting that an upward reversal in the gold price has yet to be signalled, has moved his time frame for the PoG to break above the triple top to a new ATH from Q4 to Q1 2023. Consequently, he expects HUI to exceed its 2020 high in H1 2023.
MAI
IMO there is an opportunity right now for the savvy in Minera Alamos aka MAI.
MAI has had a tough 12 months as they developed their first of three planned Mexican gold mines, Santana in Durango, Mexico. A three year drought, now receding, negatively affecting operations because they wasn't enough water for their heap leach to operate as planned. As a result, earlier this year they put off planned ore extraction in favour of development work aimed at future expansion, to the extent that they extracted no ore in January, February, or May, but now are back rapidly increasing production while they wait for permits to expand the heap leach, with construction expected to start before year end. As a result, only 1071 oz Au were sold from the Santana Project in Q2, and gold inventory on the leach pad had dropped to 5446 oz as of June 30, 2023. Both numbers will be much higher in future quarterly reports.
Financially they remain in good share, with a cash stash of $8.2M and over $20M in working capital.
There will be steady news flow this quarter, including a new Resource Report for Snatana, closing the financing package for the construction of Cerro de Oro, the receipt of permits,, and the results of drilling at the Zata and Benjamin exploration targets at Santana. I already have way too much MAI in my portfolio but I am very tempted to use the current low share price to add to my stash. Particularly if gold takes off in the rest of the year as expected, a buy at current prices could be a real winner.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34399827
Saville reminds us that in the current environment, evidence of economic weakness currently is being taken as bullish by both the gold and stock markets, but eventually economic weakness will be bullish for gold and bearish for the stock market
GOT, MIRL, SNAG, BTO
Goliath Resources aka GOT continues its bizarre avalanche of PRs -- 12 since July 5th! -- with yet another that is even more strange than usual. It purports to reveal a whole new set of discoveries on its Goldiger property in BC's Golden Triangle, yet all but one of these 'new' discoveries were announced and detailed in a PR two weeks ago. Yes, there is good news in this PR, as the discovery that is actually new, Treasure House, looks promising, but is it any wonder that the response by the market is to let the share price drift even lower?
https://www.siliconinvestor.com/readmsg.aspx?msgid=34397361
Impact Silver aka IPT released its Q2 results. At their Zacatecas mine in Mexico, tonnage milled was down but grade was up, leading to a decrease in Ag production to 155744 oz. They also tell use that Au and Pb production was up substantially but we only get percentages. Revenue was up but so were costs, and we learn that as usual they made a small loss for the quarter, but thanks to a recently completed PP they are in good final shape with $13.7M cash and no long term debt. Meanwhile, we wait to see whether they can turn their recent purchase of the Plomosas zinc mine north of Zacatecas into a money maker.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34397371
I originally bought a few shares of this company many years ago and had the symbol EST, interested by its focus on silver prospects in Yukon Territory. Then it merged with TCC, changied its name to Allianza Minerals aka AII and started messing around with gold and copper projects in the US. Now, after a rollback, AII has again rebranded, this time to Silver North Minerals aka SNAG, and the focus is back on their Yukon silver prospects. They will be looking to divest or option out the properties in the US.
SNAG has announced that their lead projects will be the two properties that attracted me in the first place.
s
Haldane is a high grade Ag propect located 22km from Hecla's producing Keno silver mine. They have already identified over 12km of vein strike even with limited drilling, and there are numerous exploration targets. Past drill results include 8.72m @ 311 g/t Ag, 0.89% Pb, and 1.13% Zn, 3.14m @ 1351 g/t Ag, 2.43% Pb and 2.91% Zn, and 4.27m @ 363 g/t Ag, 1.73% Pb, and 2.80% Zn.
Tim is another Ag prospect, located 19km from Couer's producing Silvertip mine. Indeed, it is actually located on the access road to Silvertip, so it is no surprise that it is optioned out to Coeur, who can earn up to 80% ownership.
I will watch and wait before adding to my now rather underwater but fortunately rather small holding in SNAG.
(BTW, their symbol makes me chuckle, because the timn community of Snag, located not too far away from SNAG's Yukon properties, is the location of the lowest temperature ever recorded in Canada at -63C.)
https://www.siliconinvestor.com/readmsg.aspx?msgid=34398494
I have often found Dividend Reinvestment Plans or DRIPs a useful part of my investments in large cap stocks, but never in the resource space, where I tend to focus on smaller companies. If I ever decode it is time to buy back into B2Gold aka BTO, I will get the opportunity, because they have announced the institution of a DRIP.
Right now I find BTO's country risk is too high, but if that ever diminishes, the DRIP will be an attractant for me.
https://ca.finance.yahoo.com/news/b2gold-announces-dividend-reinvestment-plan-214000580.html
The IKN newsletter brings us news from the rapidly failing Minera Alamos aka MIRL, and it is not good. Locals around their Corihuarmi mine in Peru have been complaining about pollution around the mine, and the government has launched a tribunal to investigate. And IKN also points out the interesting trading, with 100-lot trades every 10 minutes or so. That is not healthy trading.
OGC, GOT, KRR, WM, IAU
Oceanagold aka OGC released the results from the first 45 holes of the current drilling programme at their Didipio Au/u mine in the Philippines. Some of the drilling is aimed at conversion of Inferred resources into Indicated, and has been successful at confirming historical results. The rest is what they are calling Extensional drilling, aimed at extending mineralization below the current resource, and has also been successful, with the headline assays being 72.0m @ 3.40 g/t AuEq (2.44 g/t Au and 0.69% Cu) at Didipio Deeps and 18.6m @ 4.24 g/t AuEq (2.56 g/t Au and 1.20% Cu) at Eastern Breccia.Note that these results substantially exceed the mineralization levels in the current resource.
The stated goal of this drilling is to allow them to increase production at Didipio by 20%. The resource conversion alone could support that, but the new discoveries, which remain open and will be followed up by further drilling, create opportunities for further production increases. This drill programme is less than half done, and I look forward to more good results.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34394824
Judging by the number of PRs they release, I am beginning to suspect Goliath Resources aka GOT's IR person knows some secrets about the rest of management. ("Spend that money on more PRs or else!!".) In yesterday's roundup I covered their latest 2 PRs, issued three days apart, but it turns out I missed yet another, released the day before the earlier of the two I covered.
To be sure, this one has some good news, with the discovery of four new mineralized zones in the vicinity of the Surebet deposit on GOT's Golddiger prospect in BC's Golden Triangle. Along with the Lower Surebet zone, also discovered recently, the Kahuna zone, which is 2km NE of Surebet, the Outpost zone, 5 km E of Surebet, and the Humdinger zone will be drill tested this year. The other discovery, Full House, 5 km NW of Surebet, will be drilled next year.
Some of these discoveries are even at surface, and GOT is also in the process of identifying numerous other prospects on their extensive landholdings in the area. Now if they can only change their promotional approach so it produces more benefit for shareholders from these exploration successes.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34394859
We already knew that Karora Resources aka KRR had set a new record for gold production from its Australian mines in Q2; now we get to see their Q2 financial results. The first bit of good news is that Q2 cash costs were down substantially at $1068/oz Au. Not surprisingly, revenue and cash flow also increased substantially and they were able to generate net earnings of $6.6M. As a result, they were able to increase their cash stash to $70.8M while remaining debt free in spite of carrying out a large amount of development work across their mines and mills.
KRR maintained it 2024 guidance of substantially increasing both gold and nickel production while reducing costs.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34394888
Wallbridge Mining aka WM's focus this year is on exploring their large landholdings in the Detour-Fenelon gold trend in Quebec. To that end, they just announced an upcoming drill programme on the Grasset Gold property they acquired when they took over Balmoral Resources. In particular they are focusing on a feature called the Grasset East Flexure Target, which covers the central portion of a fold-structure identified from airborne magnetic surveys and a strong flexure in the Sunday Lake Deformation Zone, the primary structure controlling gold deposition along the Detour-Fenelon Gold Trend. Let's hope the planned 5000m of drilling finds something.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34394987
i-80 Gold aka IAU released more drill results from its Ruby Hill polymetallic property in Nevada. While waiting for permits to drill more prospects (since received), these holes were drilled into the Blackjack and East Hilltop zones.
At Blackjack, IAU is using directional directional drilling to target minerlaization under the Archimedes pit, coming up with intersections like 19.4 % Zn, 29.2 g/t Ag and 0.4 g/t Au over 30.4m and 17.8 % Zn, 59.8 g/t Ag and 0.9 g/t Au over 16.4m as well as new zones of CRD minerlaization for whic h assays have not yet been received.At East Hilltop, they found both skarn mineralization with intercepts like 11.6 % Zn & 5.8 g/t Ag over 6.1m and 14.7 % Zn & 3.7 g/t Ag over 4.6m and CRD mineralization like 6.8 % Zn, 3.6 % Pb, 0.9 g/t Au & 136.3 g/t Ag over 9.1m.
In addition, they found a very high grade intersection in the nearby Tycho zone -- 45.4 g/t Au and 50.2 g/t Ag over 17.5m. This will be followed up by more drilling. In addition, after receiving necessary permission they are now drilling in the FAD zone, which extends onto the adjoining property they acquired when they bought out Paycore, so expect more skookum drill results to come.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34395006
TUO. NRN x 2, GOT x 2, RIO
Teuton Resources aka TUO and its JV partners released the results of another five holes drilled to the northeast of the Goldstorm deposit on their Treaty Creek project in BC's Golden Triangle, and once again they have uncovered significant mineralization beyond the current resource, with the headline assays being 516.0m @ 1.19 g/t AuEq (0.89 g/t Au, 2.86 g/t Ag, 0.23 % Cu), with an enriched section measuring 90.0m @ 2.07 g/t AuEq (1.93 g/t Au, 3.55 g/t Ag, 0.09 % Cu). There are eight more completed holes with assays pending, while crews are busy constructing drill pads for next year's drilling programme.
The JV partners have a problem, but it's a good one to have. They can't begin a PEA on Goldstorm until they define the limits of mineralization, but they keep on finding more and more mineralization each time they step out, with Goldstorm remaining open in multiple directions. Once all holes from 2023 are received and released, I expect we will get a revised Resource Report.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34393253
Northern Shield Resources aka NRN has a long history of finding promising signs that amount to nothing, on a variety of properties. Judging by the trading since their later PRs, maybe they are finally on to something.
In their last PR, they told us they were going to dig some trenches in the Conquest Zone on their Root & Cellar Au/Ag/Te/Cu prospect in Newfoundland to look for the source of some large gold-bearing boulders found on the property. Well, the trenches did not find the source of those boulders, but they did manage to come up with grab samples with lots of visible gold. Although their share price doubled in response, I remain skeptical, based on NRN's poor track record, that these were grab samples, and that visible gold means little without assays.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34393508
Less than a week later, NRN released a short PR announcing more trenching in the Conquest Zone, plus a small drill programme that will drill 8 holes totalling approximately 500m in the same area will be carried out in the next month.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34393664
Goliath Resources aka GOT has made little impact with this year's drilling campaign on its Golddigger property in BC's Golden Triangle, largely, I would argue, because of their approach -- releasing PR after PR filled with breathless prose but no assays instead of releasing fewer PRs and using that money to expedite assays.
The latest PR from drilling at the Golden Gate Feeder Zone at Golddiger is a perfect example. With drill results like 23.00m of 21.08 g/t AuEq (18.95 g/t Au and 95.31 g/t Ag) including 14.00m of 33.75 g/t AuEq (30.39 g/t Au and 150.42 g/t Ag) and 9m of 50.27 g/t AuEq or 1.62 oz/t AuEq (45.27 g/t Au and 225.42 g/t Ag), this should have impacted the share price, but, alas, there was little response by Ms. Market.
I continue to hold in the hope that the quality of the deposits they are finding will eventually make up for their poor IR practises.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34393645
I doubt the drill programme just begun at GOT's nearby Luvky Strike prospect will have much effect either, given that it is only 2000m and primarily designed to collection info for a more extensive drill campaign next year.
But I do remain hopeful about Lucky Strike, particularly the Bullseye porphyry Au/Ag/Cu target and the Goldsource breccia target, where grab sampling has found high grade gold. It's still early, but I like the looks of these two targets.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34393544
The IKN newsletter pointed out that the cabinet shuffle in Chile may cause a delay in RIO2 aka RIO's appeal against the denial of permits, but that the new regime is much more pro-mining so this is actually a positive development. IKN also reminded us that at times like this -- sentiment washout plus no volume across junior mining, disdain for fundamentals -- it's buying time.
Saville has been impressed by the PoG's resilience in the fact of the continuing rise in the 10-year TIPS yield, but doesn't think this will last. He continues to anticipate a washout low in the PoG in the next month or so, perhaps as low as $1725, but also has increased the probability that the bottom is already in to 50%.
So wait to make those buys? Your call, but scaling into positions is always prudent.
KRR, GNG, ODV, GOT
Beta Hunt continues to be the gift that keeps on giving for Australian miner Karora Resources aka KRR. The company had already established multiple nickel deposits and two extensive gold zones called the Western Flanks and A Zone. Looking at the latest drilling, it looks like the Fletcher Shear Zone might turn into another extensive gold deposit. Based on drill results like 2.8 g/t Au over 52.0m and 11.8 g/t Au over 2.9m in the main FSZ and 4.7 g/t Au over 11.0m in the footwall, the FSZ noe extends over 500m, with one hole still to drill and four with assays pending from this drilling campaign. Even better, KRR thinks the FSZ will eventually extend to over 2 km. They will also at some point follow up the potential for more nickel deposits above the FSZ.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34376627
One has to wonder what exactly is going on with Golden Goliath Resources aka GNG. They still describe themselves as exploring for gold and silver in Ontario, but... (They also have some PM holdings in Mexico but they never mention those except in passing.)
All we heard about through 2022 and into January 2023 was their Wish Ore Au/Ag prospect in Ontario, but since then, nothing. Then in March in we heard that GNG had acquired an REE prospect in Quebec, and then in June that they had staked three more REE prospects nearby. Then they announced a PP and did a 7 for 1 rollback, and now we hear that they are starting exploration at Manicouagan, which is their collective name for the four REE prospects.
Now the PM prospects are mentioned only in passing, which I am taking to mean they found nothing worthwhile at Wish Ore. One wonders if next we will hear about a name change...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34376677
Osisko Development aka ODV is nothing if not ambitious, as we can see by the release of its Q2 results. First they tell us that they ended the quarter with a cash stash of $86.9M, then in the next sentence that this amount is insufficient to fund their planned activities for the next 12 months, so they are going to need to raise more funds.
Their main focus these days is the Tintic polymetallic project in Utah, where they are advancing a decline in the old Trixie mine which will be completed this quarter. They currently carrying out what they call 'test mining' at Trixie, and did manage to produce 1576 oz Au in Q2, but plan to ramp production up to 500 tpd by upgrading the mill and mine. They are also working on a new Resource Estimate and drilling both underground in the mine as well as exploration drilling elsewhere on the property.
At their Cariboo property in BC, they produced 1010 oz Au by processing ore at a third party's facilities. At this point they are awaiting permits before doing any further development.
At the San Antonio property in Mexico, they produced 1244 oz Au by running stockpiled material through a heap leach. They will finish processing the stockpiles this quarter.
I don't see much sign of the BC and Mexico projects moving forward very quickly, so it is all about Tintic these days, so that is where most of the money will be invested.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34378011
It's a miracle!
Goliath Resources aka GOT actually released a PR concerning drilling on their Golddigger Au/Ag prospect in BC's Golden Triangle that contains actual assays results! For this year's drill campaign!
The assays are pretty darn good. Some of the highlights include 14.85 g/t AuEq (14.66 g/t Au and 11.99 g/t Ag) over 6.00M in the Golden Gate Feeder zone, and 14.01 g/t AuEq (11.39 g/t Au and 148.91 g/t Ag) over 6.09m in the Surebet zone.
However, they do once again go on and on about visible gold in other holes, which is meaningless without supporting assays. And the lack of market response to this PR indicates their strategy of putting out PR filled with breathless prose but without assay results has once again been a failure.
Time for new management at GOT? Certainly time for a new IR strategy...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34379296
Saville continues to opine that we are set for an August bottom in the PoG, but warns that there will probably be a final sharp downward spike before the bottom is set.
$CDSG UPDATE ON CORPORATE ACTION
Las Vegas, NV., Aug. 07, 2023 (GLOBE NEWSWIRE) -- Titan Lithium Inc., (OTC Markets: CDSG) (the "Company" or "CDSG") is pleased to announce that China Dongsheng International Inc (CDSG) on August 5th, 2023, submitted its Form 10-12G to the Securities and Exchange Commission (SEC) to register its common stock under the Securities Exchange Act of 1934, as amended, (the 1934 Act).
The Form 10 filing provides information on the company's strategy and its historical financial data. Upon its effectiveness, the Company will be subject to the reporting requirements of the 1934 Act, which will include quarterly, annual and current reports, as well as proxy statements, to be filed with the SEC.
"We are confident the Company's proposed registration with the SEC will provide a number of benefits to the Company and its shareholders, including greater liquidity for its stock, amplified visibility and enhanced access to the capital markets," said Harp Sangha, Chairman of CDSG. "We believe that through our recent geologic work CDSG has uncovered several top-tier Lithium finds and optimizing corporate effectiveness will allow us to help further our exceptional battery-metal projects."
About the Company: China Dongsheng International Inc. (OTC Markets: CDSG), through its wholly owned subsidiary Titan Lithium Inc., is a lithium explorer and developer.
Contact:
Harp Sangha-Chairman harp@titanlithiuminc.com
+1-702-595-2247
titanlithiuminc.com
Forward-Looking Statements:
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the
forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission.
Uamy Presentation out today: https://www.usantimony.com/company-presentation-uamy
UAMY, suggest reviewing all of the recent mgmt/bod changes and pr as of late; investor presentation tomorrow:
https://finance.yahoo.com/news/u-antimony-announces-webcast-company-133500745.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEh2q5SxCnkudnTGOh4Eq8Ev_YR_Lv-HJXld8H1gNHdJJkLHSNAX_AAZUYR9wZ2f32GHnsPFz1XbQkHVBtjdz9YsrsD2ZKGbmnRXHrKrku9BaxOYSU9k79KXuzzs51oQjPXaVRtEtkyiX-i3WKuOOm1ePMH6-0vwmIL2dgcGj4a-
IAU, BTO, EDV, OGC
At this point in the evolution of Nevada miner i-80 Gold aka IAU, it's not really about the residual production from pre-existing mines and heap leaches, it's about future production from the new mines they are building. That said, it takes a lot of money to build those mines, so when IAU can sell 4329 oz Au at a realized price of almost $2000/oz, and also sell 6551t of mineralized material for $2.8M, that is a very good thing. Due to all the work going on, the company continues to lose money and will continue to do so for the next 18 months to two years as further investments are made, but after that they should be able to generate a great deal of cash flow and profits.
The Q2 report also contains some detail re the building and exploration efforts, but I have already covered those in detail so won't spend time on them here.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34371385
Gold miner B2Gold aka BTO released Q2 results of 246k oz Au produced that came in above expectations, with cash costs of $777/oz Au also beating expectations. The beat was driven primarily by Otjikoto in Namibia, where costs were lower than expected due to lower fuel costs and changes in exchange rates, and Masbate in the Philippines, where production came in well above expectations and fuel costs were also lower. During Q2 they generated free cash flow of $25M but their cash stash decreased to $506m primarily due to the costs of building the Back River mine in Nunavut, which remains on schedule to start production Q1 2025.
BTO remains well placed to meet 2023 guidance in terms of both production and costs.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34371317
FWIW, in response TD issued a new analyst report called the impact of Q2 results Slightly Positive while maintaining BTO as Action List Buy with a target of $9.
FWIW, in the wake of yesterday's Q2 results release by Endeavour Mining aka EDV, BMO issued a new analyst report Citing EDV's beat on both production and costs from continuing operations, they think Ms. Market was a little fooled by accounting only losses related to two recent divestments, creating an attractive buying opprtunity at current prices, They kept EDV at Outperform with a target of $38,
FWIW, in the wake of yesterday's Q2 results release by Oceanagold aka OGC, BMO issued a new analyst report. They saw it as generally positive, with good results from the New Zealand mines leading to an overall beat on both production and costs. However, they noted that although Haile underground remains on track for 1st production Q4, a ball mill at Macraes in New Zealand is now shut down for repairs. They maintained OGC at Outperform with a target of $4.25.
Meanwhile, Saville continues to maintain that gold will most likely set a correction low in the next two months before breaking out in October and heading to new highs. He opines that the 10-year TIPS yield dropping below 1.47% means the conditions are in place for that rally.
MIRL, GOT, IAU, IPT, WEX, KTN
Minera IRL aka MIRL released the results of a drilling campaign at its Corihuami gold mine in Peru. The results were decent and they have begun drilling another 100 holes.
But the image that comes to mind is when Wiley Coyote has driven off a cliff and the car has fallen away but Wiley keeps on moving forward, at least for a little while. The share price has now dropped to 0.5 cents, and they are about to lose their main asset, Ollachea, to debt collectors. How long till bankruptcy is declared?
https://www.siliconinvestor.com/readmsg.aspx?msgid=34367232
It looked at first like the latest PR from Goliath Resources aka GOT concerning this year's drill programme on the Surebet zone of its Golddiger Au/Ag prospect in BC's Golden Traingle actually contained some assays, but if you read carefully you will discover that they merely reprinted some assays from last year's drilling. Very cheesy!
And again they go on and on about visible gold, even though we and they know that visible gold in a core means nothing without assays. I wish I didn't like GOT's properties so much so I could have nothing more to do with this management team, but I continue to think the quality of the deposits will in the end outweigh those shortcomings.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34367341
From Nevada gold miner i-80 Gold aka IAU, we get news that they have closed their $36.8M PP, including, no surprise given the price, full exercise of the underwriters' option, in spite of no warrants being included in the deal. Likewise, it's no surprise that insiders took full advantage, including EQX taking a million shares and Evan Downie 11000 shares. And again no surprise given the closing of the PP, IAU is one of the few gold miners in the green on a red day.
https://ca.finance.yahoo.com/news/80-gold-closes-c-36-132800263.html
Impact Silver aka IPT released a construction update on its recently purchased Plomosas Zn/Ag mine in Chihuahua, Mexico. The mine itself has been shut down for about a year, and IPT is taking the opportunity to upgrade both the mine itself and the mill before resuming production. The mill construction is 85% complete and they expect to bring production back up to 200 tpd by the end of the year. Construction of an additional tailings pond will begin shortly, the mine's ventilation and power supply have been refurbished andnew equipment has been brought in, even as mining has recently resumed using an improved mine plan. IPT will also soon begin drilling, both underground in the mine and at surface on various nearby prospects on the property.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34368537
Developer Weatern Exploration aka WEX released an update on its Aura Au/Ag project in Nevada. A geophysics programme is underway looking for extensions of several existing resources on the property plus the newly-defined Maggie Summit target. As well, a drilling programme designed to look for extensions of minerlaization at Gravel Creek has begun, looking for new high grade low sulphidation epithermal veins.
Meanwhile, WEX's share price seems to have stabilized. If I hadn't just blown all my cash adding to several other positions, I would add to my WEX holdings at this time.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34368556
For the first time since last September, we actually got news of Kootenay Silver aka KTN actually doing some exploration. Since then they have closed two PPS totalling almost $10M and bought the rest of Coumba, a now 100%-owned Ag/Au/Cu/Pb/Zn prospect in Chihuahua, Mexico.
Well, not quite.
They need to complete a third land access agreement which will allow them to resume drilling, which they will use to look for extensions of the already prolific D Vein, with past drilling finding intercepts like 453 g/t silver over 29.9m and 574 g/t Ag, 0.19% Pb, and 0.66% Zn over 3.9m. They seem to think this will happen soon.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34368574
FWIW, the IKN newsletter added CTGO to their list last weekend. It does look like a good bet but I prefer lower priced stocks where I can buy and trade more shares at a time.
LC
ctgo 18.88 bought some ctgo today. Price was knocked down last week due to announced raise of $30million at $19. $30 million will be used for exploration and cushion for CTGO 30% share of mine construction at Manh Choh where JV partner Kinross is building the mine to be producing late 2024. Contango's share should be around 67K oz gold/yr. The Manh Choh land package is huge at 675,000 acres. This is important because Manh Choh is only projected a 4.5yr mine life. Kinross will run the ore thru it's Fort Knox mill. I am assuming that Kinross expects exploration success will extend the life of Manh Choh to supplement the expected production of 1 million oz for the JV during it's first 4.5 years.
Contango should receive ~67K oz/yr from Manh Choh at AISC ~$1200 resulting in eps of $12 to $19/yr.
Contango has debt to fund it's 30% share of construction plus the just raised $30 million. They expect to explore their other project, Lucky Shot. Lucky Shot was a producing high grade mine closed during WWII. There is a resource of !00K+ oz that Contango expects to significiantly increase.
New mines are always risky but Kinross is a big partner to rely on to bring the mine into production. Lucky Shot appears to have exploration upside so that Contango could build a small mine/mill to process the high grade gold and add to the cashflow from Manh Choh.
Mgmt is excellent with Rick Van Niewenhyse as CEO. There are only about 10 million shares outstanding so market cap is around $180million.
TUO, KDK
I posted about a legal action between Seabridge Gold and Tudor Gold, one of Teuton Resources aka TUO's JV partners on the Treaty Creek project in BC's Golden Triangle, here is SEA's PR. Reading over it a number of times, I think it applies only to a small portion of Treaty Creek used to build the tunnels, but I have been wrong before. And even if I am right, not having access to these corridors will complicate exploration and development at Treaty Creek. As has been pointed out, this weakens the JV partners' bargaining position in any sale of the property.
Uncertainty, the enemy of investors....
https://www.siliconinvestor.com/readmsg.aspx?msgid=34363854
I tried figuring out exactly what part of Treaty Creek is affected by comparing a map from TUO's website with one from SEA's website. It looks to me like the affected portion is across the southern part of Treaty Creek, away from the deposits like Goldstorm and COpper Belle. But of course there might be logisitical/access issues which can't be ascertained from the maps, at least by me.
Here are the two maps.
http://teuton.com/wp-content/uploads/2021/06/Elephants-of-the-SHS.pdf
http://ksmproject.com/wp-content/uploads/2015/08/KSM-15-087.pdf
Again, I welcome other eyes who might se things I don't.
Kodiak Copper aka KDK released the results of three holes drilled into the West Zone of their MPD Cu/Au/Ag prospect in south central BC, and they found a lot in those three holes.
First off, they confirmed long lengths of porphyry mineralization, extending the West zone from surface over an area of 300 metres by 300 metres and up to 819 metres depth, meaning West rivals the Gate zone in size and grade. But they also found some higher grade areas, including a gold rich zone with intersections like 5.14 g/t Au, 2.68 g/t Ag and 0.83% Cu over 2.1m and 8.29 g/t Au, 17.15 g/t Ag and 0.13% Cu over 0.8m.
But perhaps most importantly, for the first time on the MPD property they have found breccia minerlaization. At a number of BC's mines, such as Mt. Polley, Red Chris, and Copper Mountain, these breccias control the creation of the mineralized porphyries which form the majority of the mined ore, so this will be followed up with further drilling. In the meantime, we await the results of drilling in the Main zone.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34363911
TUO, GOT, RRI, CEE
Tudor Gold aka TUD is one of Teuton Resources aka TUO's JV partners on the Treaty Creek project in BC's Golden Triangle. I recently came across a cursory and mysterious PR from TUD which may or may not concern Treaty Creek. It doesn't say muc; here are the juicy bits.
Tudor Gold 'has made an application concerning Seabridge Gold Inc. to the Chief Gold Commissioner of British Columbia. Tudor Gold refrains from commenting upon the merits of these issues, as they are before the Chief Gold Commissioner for decision.'
The odd thing is that several of the recent PRs on Treaty Creek have thanked Seabridge for allowing the Treaty Creek JV partners to use SEA's private road to mobilize for this year's exploration campaign.
Then there is the existence of the office of the Chief Gold Commissioner of British Columbia. Sounds like a fun job. Where do I apply?
Can anyone shed any light on what this PR concerns?
https://www.siliconinvestor.com/readmsg.aspx?msgid=34363010
Goliath Resources aka GOT put out yet another PR, their sixth in a weeks, proclaiming that there was visible gold in a core drilled on their Golddigger Au/Ag prospect in BC's Golden Triangle, but containing no assays. Seriously, at this point who cares? Certainly not Ms. Market...
I am assuming you are all savvy PM investors who know that visible gold without supporting assays is a meaningless indicator. Sometimes you get subeconomic assays even when there is visible gold, and sometimes you get economic assays when there is no visible gold.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34360126
As part of last week's mid-year update, prospect generator Riverside Resources aka RRI asserted that they plan to continue the rotation into Canada from their traditional home in Mexico, and now we get more evidence of that with the news that they have acquired a property adjoining their Pichette prospect in Ontario that includes part of a past-producing mine. And again showing that they are savvy operators, RRI acquired the property for nothing by noting some existing claims had lapsed so they staked them for themselves.
In this part of Ontario, the key for finding gold is locating Banded Iron Formations or BIFs, and the new property indeed contains BIF that extends from the existing Pichette property over to the nearby Leitch mine, which in its day produced over 1M oz Au. The newly acquired property has been subject to quite a bit of past exploration, including drilling which generated intercepts like 16.65 g/t Au over 3.81m and 34.28 g/t Au over 1.1m at less than 80m depth.
I expect RRI is now, as per their usual practice, conducting meeting with prospective JV partners to pay for further exploration on the expanded property.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34360137
African gold miner Centamin aka CEE released its Q2 results, and they were good. New management started reorganizing operations at its Sukari mine in Egypt about two years ago, and so far have been able to stabilize and even start increasing production, but it took until this quarter for these initiatives to start to really bring down costs.
Sukari Q2 production came in above expectations at 115k oz Au, allowing the company to maintain their full year guidance. But more importantly, cash costs came in well below expectations at $849/oz Au produced. The next test will be to maintain these lower costs in the next few quarters as the continuing optimization will require higher capex, but a reduction in inflationary pressures will help. In spite of the capex spend and paying a dividend, they were able to increase their cash stash to $161M at quarter's end, and this is is expected to continue to increase as costs decrease further.
I am also looking forward to receiving drill results from their new concessions in Egypt now that the regulatory framework for these blocks has been signed with the Egyptian government.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34362514
In response, BMO issued a new analyst report on CEE. Citing these improvements in cost and production, BMO maintained CEE at Market Perform with a target of $2.05.
CEE, CCW
In the midst of a lot of negative news om the regulatory front, it's nice to report some positive news. African gold miner Centamin aka CEE has reported that Egypt has established a modern regulatory framework to cover the new concessions it was awarded in 2021. (This framework also applies to ABX's concessions granted at the same time.) The terms which include a 5% NSR for the government, a defined tax rate, and a 15% government net financial interest, look reasonable, and CEE seems have to have everything laid out for them. Expect exploration on those new concessions to ramp up now that the new framework is in place.
Note that this framework does not apply to CEE's producing Sukari gold mine, which has its own existing agreement.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34356509
Until Recently Canada Silver Cobalt Works aka CCW's focus at its past-producing Castle mine near Cobalt, Ontario, has been on finding mew deep lying silver/cobalt veins, at which they have been successful. But they have also been looking for surface expressions of mineralization, and in the process they have come across gold showings in area called Miller Lake, which they found both alteration and quartz veining. Most recently they have been doing some stripping and collected some grab samples. Thanks to them owning their own labs, they got a 3-day turnaround on assays, which ranged as high as 3.2 g/t Au with a number of samples over 1.0 g/t. Now they are embarking on the next step, trenching, which will reveal a more thorough view of Miller Lake.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34358754
Saville points out that the primary determinant of the gold price, the 10-year TIPS yield, is at a decision point, just above 1.5%. If it breaks below 1.50% on more than a temporary basis, that should propel gold well into the $2000s, but if it heads back up, we should get a new multi-month low for the PoG.
KRR, RRI, IAU, ODV, GOT
Karora Resources aka KRR gave us a first look at their Q2 numbers, and for the second quarter in a row, their gold production set a new record, this time reaching 40823 oz. For info about tonnage milled, grade, and costs, we'll have to wait for the financial results, but they gave us a nice hint those numbers will be good by telling us they added over $5M to their cash stash, which reached $70.8M at the end of Q2 in spite of the extensive development work that in underway.
https://www.newswire.ca/news-releases/karora-announces-new-quarterly-gold-production-record-of-40-823-ounces-887832096.html
Prospect generator Riverside Resources aka RRI released a mid-year update, and as usual, this crew of savvy operators has been busy. In the first half of 2023, they continued their rotation from Mexico to Canada by staking the Duc and Pichette Au prospects in Ontario, as well as bolstering their Mexican portfolio by acquiring the past-producing Union PM mine in Sonora.
And they have been active on the ground, carrying out mapping and sampling and geophysics on both new Ontario properties, discovering that there are also REE prospects on Duc.
When they turn to talking about the next six months, they surprised me by announcing two further modifications to their approach, saying they are adding to add critical metal prospects in Canada, and in particular, in B,C., new territory for them. They will also be doing more exploration on a number of their prospects as well as seeking JV partners to fund those efforts, something at which they have been adept. And they are well-funded to carry out these efforts, with no debt and a cash stash of over $7M.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34354181
I am not happy with Nevada gold miner i-80 Gold aka IAU today.
Yes, they are obviously running through a lot of capital with all the projects they have underway, so the announcement of a $32M PP is not a surprise. What has disappointed me is the low price, only $2.70 a share, even though IAU hasn't been that low since last November. Perhaps we get a clue as to why the PP price is so low in a sentence that explains that the current main holders like Equinox Gold, Orion, and IAU's management will all be participating, i.e. they have given themselves a sweetheart deal.
That said, I will take advantage of the dip in share price to add to my holdings, as I still have a personal target of at least $5 in a couple of years once they are in a full production.
Something else we can glean from this NR is the rate of cash burn. At the end of 2022 they had $81M cash, and they say that after closing this $32M PP they will have about $90M, which they have burned through about $23M in the first six months of 2023. They also have an unused $100M accordion, so if we are lucky this will be the last raise before the real money starts rolling in.
https://ca.finance.yahoo.com/news/80-announces-c-32-million-204000816.html
Osisko Development aka ODV announced the latest results from underground exploration aimed at extending minerlaization at its Trixie mine on its Tintic property in Utah. Given that the headline assays include 65.00 g/t Au and 344.39 g/t Ag over 4.57m from drilling and 30.17 g/t Au and 62.76 g/t Ag over 1.34m from sampling, these efforts are proving successful. Further exploration and drilling will be used to delineate the new mineralization which will be included in a revised Resource Report.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34355342
As Goliath Resources aka GOT continue it bizarre flurry of PRs -- 5 in 12 days! -- at least we get an assay in the latest one. But, alas, it is only one assay from a sample, with no sign of assays from drilling or even from the trench they dug where the assayed sample was collected.
But that said, this PR does contain what could be very positive news for GOT's Golddiger Au/Ag property in BC's Golden Triangle. Their original discovery on the property was Surebet, and last year they added Goldswarm. Now they have added a zone they are calling Full House that extends for 6.5 km. Importantly, they are opining that Surebet, Goldswarm, and Full House appear to stem from the same minerlaizing event, giving more evidence of the sheer size of the potential mineralization on the large property.
BTW, the grab sample at Full House assayed 113.5 g/t Au and 249.0 g/t AG. Yes, it's just a grab sample, but still promising.
https://www.siliconinvestor.com/readmsg.aspx?msgid=3435538
GOT, BTO, QRC, RIO, MIRL
The saying goes that the definition of insanity to to keep repeating the same action but expect a different result. By that measure, the management of Goliath Resources aka GOT are certifiable.
They have now put out four almost identical PRs in 12 days regarding drilling on the Surebet area of their Golddigger prospect in BC's Golden Triangle without including a single assay. Just like last year when they usually virtually the same strategy, this money-wasting PR campaign has not had any positive effect on the share price.
Maybe somebody has a better explanation for why they are wasting money of pointless PRs instead of spending the money speeding up the delivery of assays that might actually help the share price. It makes zero sense to me.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34352808
Clive Johnson, the CEO of gold producer B2Gold aka BTO, always craves media attention, and he got some last week that they are looking for more assets, but not the development projects that they usually target. Rather, The Clive says they are looking for either producing mines of the sort that largest companies sometimes deem non-core, or buying a smaller producer. With the recent news that the government of Mali, which hosts BTO's flagship asset, Fekola, is looking to increase it shares of mine ownership, one presumes they will be looking elsewhere.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34352790
There might be a good chance to start or add to a position in Queen's Road Capital aka QRC coming up. Wyloo, which owns 50M shares or 11.1% of of QRC, has filed notice they intend to 'distribute' those shares through the TSX. Maybe they will be sold as a block, or maybe they will just be fed into the usual market, depressing the share price.
Both Wyloo and QRC are essentially vehicles for Australian mining magnates to play with their money, and sometimes we can benefit by going along for the ride..
https://ca.finance.yahoo.com/news/wyloo-metals-files-notice-intention-114500870.html
Last week IKN put out a tweet regarding some intel on Rio2 aka RIO's appeal regarding permit issues on its Fenix Au development project in Chile. It looks like the bureaucrats are moving as slowly as possible, so it is likely the appeal won't be heard until September. Grrrrr....
And IKN also brings us yet more bad news regarding Peruvian gold miner Minera IRL aka MIRL. Not only was the June production number of 847oz Au from its Corihuarmi mine by far its worst month ever, they also fired the mine manager and have failed to live up to its recent agreement with locals, who responded by once again blockading the mine and then sending a delegation, accompanied by the local member of Congress, to complain to the federal regulatory body. And of course, the deadline for them to lose their main asset Ollachea ticks ever closer with no sign of any action to prevent it happening.
HMLO, IAU, ARK, TUO
Henlo Explorers aka HMLO has commenced the first drill campaign since 1985 on its Project Idaho prospect in Ontario. They are investigating a 3km long zone which has a number of similarities to the Marathon Pd/CU 2km to the west being developed into a mine by GMIN. There are also Au targets. If they manage to hit significant minerlaization, this could be a company-making discovery.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34347036
A day after releasing the best drill intercepts to date from their Mcoy-Cove property, Nevada gold miner i-80 Gold aka IAU brings us what they call a 'Comprehensive operations update'. I didn't notice anything that seemed new, but it is useful to have all this info in one article.
On their Granite Creek property, they continue to basically do test mining, extracting ore while they continue to dewater existing workings while advancing a new decline to access the Ogee zone and eventually their new discovery, the South Pacific zone. The oxide ore is being sold to a third party while the refractory ore is being trucked to NGM's facility for processing. This test mining and ongoing drilling are feeding into an updated Resource Report and an initial PFBS.
At Mcoy-Cove, they are continuing their very successful underground drilling programme at the Cove deposit, which will feed into an FBS. Permitting and environmental studies are ongoing as they prepare to turn Cove into a high grade underground mine.
Ruby Hill has a lot going on, In addition to residual heap leach gold production, they are also drilling several CRD Zn/Pb/Ag deposits while also advancing an almost complete PEA and permiting for the Ruby Deeps Au deposit. They are also integrating the recently purchased southern addition to the property, as well as developing mine plans and preparing to renovate the existing mill while deciding how to process both the Au and CRD minerlaization.
At Lone tree, they continue to advance the refurbishing of the autoclave which will allow them to bring the processing of sulfide ore in house, even as they continue to produce Au from residual heap leaching.
Not sitting on their hands...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34347043
Arras Minerals aka ARK remains firmly focused on finding large Au/Cu porphyrirs on their properties in Kazakhstan, but you could tell they were also excited by the possibility of new Au discoveries, and now we find out why. Recent exploration on their Elemes license has included grab samples from Soviet-era exploration trenches with assays up to 29 g/t Au, 287 g/t Ag, and 238 g/t Te (tellurium). These samples are being interpreted as being part of a low sulfidation epithermal deposit located close to a past-producing mine. This in turn is part of a larger complex of a number of types of deposits which contain Au, Ag, Cu, Pb, and Zn. Ongoing mapping and sampling and geophysics results will be used to define targets for future drilling.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34347070
In their last PR, Teoton Resources aka TUO announced they and their JV partners were constructing two more step out drill pads to the northeast of the Goldstorm deposit on their Treaty Creek property in BC's Golden Triangle, and now we find out why with the release of assays from the first two step out holes of the season in that direction. One of the step outs found 7.5m of 11.56 g/t AuEq (11.46 g/t Au, 9.34 g/t Ag, 0.01 % Cu) within 124.5 m grading 1.51 g/t AuEq (1.38 g/t Au, 11.54 g/t Ag, 0.01% Cu) within a larger intercept of 412.5 m grading 1.01 g/t AuEq (0.93 g/t Au, 6.26 g/t Ag, 0.01 % Cu) -- these are the highest grade yet seen in Goldstorm -- while the other found 94.5 m averaging 1.80 g/t AuEq (1.14 g/t Au, 9.87 g/t Ag, 0.47 % Cu) within 337.5 m averaging 1.31 g/t AuEq (0.87 g/t Au, 6.89 g/t Ag, 0.32 % Cu). As well, infill drilling to convert Inferred mineralization to Indicated continues to produce grades higher than the existing resource.
They have been looking for the northern limits of mineralization at Goldstorm for more than two years now but keep on finding more metal, so they are leaving one rig doing exploration on the PerfectStorm deposit but moving the other five to extending Goldstorm to the north.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34347103
WEX, IAU, EDV
Western Exploration aka WEX brought us news regarding Dolby George, one of three undeveloped gold deposits on their Aura property in Nevada. Metallurgical testing has confirmed historical results, that heap leaching will be cheap with good extraction and low reagent consumption. This will be confirmed by further testing and will feed into a PFBS to be completed in 2024.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34346223
We already knew that the Cove deposit on Nevada gold miner i-80 Gold aka IAU's McCoy-Cove property was one of the highest grade gold deposits in North America. The numbers are only going to get better thanks to IAU releasing their best drill intercepts to date, with the feature intercepts including 18.9 g/t Au 29.3m, 14.9 g/t Au over 32.7m,, and 15.7 g/t Au over 22.5m. With the decline construction to allow easier access almost complete, the focus will be on completing the drill programme and then delivering a PFBS, as well as advancing permitting.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34346265
FWIW, in the wake of west African gold miner Endeavour Mining aka EDV's recent announcement of the sale of two of its mines in Burkina Faso, BMO put out a new analyst report. They cite the consequent reduction of country risk and that several mines currently under construction will soon replace the lost production, and maintained EDV at Outperform with a target of $38.
In his weekend newsletter Saville made a comment to the effect that, due to all the permitting issues we have been seeing, perhaps Canada and Australia are the only remaining mining-friendly jurisdictions.
And in the IKN newsletter we learned that thanks to a recent court win by a private company running a copper mine in Mexico, the recent mining reform laws passed by the AMLO government is in effect toothless until the various appeals are complete, which is guaranteed to take years.
FWZ, TUO, GOT, CCW
I originally starting buying shares of Fireweed Metals aka FWZ for their Macmillan Pass property in Yukon Territory. where they are drilling up a number of very prospecptive Zn/Pb deposits. Then they added the Grayd River Zn/Pb/Ga/Ge property just across the border in NWT, and then the MacTung past-producing W mine that adjoins Macmillan Pass.
Now it turns out they are also a gold explorer, thanks to Snowline Gold's recent discoveries a few dozen km north of Macmillan Pass, with a number of other companies also exploring for gold in the area. (Snowline's landholdings actually border the Macmillan Pass property.) Hence, FWZ has been able to identify a number of Carlin style Au targets in Macmillan Pass which will be investigated this summer. FWZ's focus remains the Zn/Pb deposits, but finding economic gold would be a nice bonus.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34342062
Teuton Resources aka TUO and its JV partners released an update on the drilling programme on their Treaty Creek Au/Ag/CU project in BC's Golden Triangle. Five of the drills are working the main Goldstorm deposit, having great success with a number of 150m step outs that always seem to find more mineralization, with the sixth drilling on the recently discovered Perfectstorm zone, which in spite of Goldstorm already being so large, is demonstrating the possibility of making a substantial contribution to the overall resources.
I especially appreciated a map I hadn't seen before which shows how Perfectstorm is located only 3 km from SEA's Iron Cap deposit. Can you say 'synergy'....
https://www.siliconinvestor.com/readmsg.aspx?msgid=34342082
Goliath Resources aka GOT is really starting to piss me off. Last year's drill campaign, though it revealed all sorts of promising minerlaization, was a complete bust in terms of creating shareholder value because they put out PR after PR with no assays, which were only released months later. They need to stop putting out PR without assays and instead use the money expedite the assays, and only then put out a PR.
In the meantime, here's another PR with no damn assays...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34342104
Canada Silver Cobalt Works aka CCW's main focus at their Castle property in the Cobalt region of Ontario has been drilling up deep-lying Ag/Co veins using the existing infrastructure from past-producing mines, but they have also instituted a stripping programme looking for minerlaization at surface. They had to take a break in the stripping due to wildfires but took the opportunity to prospect for gold nearby and came up with a number of mineralizated samples, including one with over 6 g/y Au. They plan to extend the stripping programme to to follow up this discovery.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34342189
CCW, KDK, SVB, EDV, WM
Canada Silver Cobalt Works aka CCW has already defined a number of a high grade Ag/Au veins in and around its past producing Castle Mine complex in Ontario. Now they are bringing in Goldspot to run some high tech geophysics over its properties in the hope of finding new veins to drill up. The helicopter will be flying near the end of the month.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34335589
Kodiak Copper aka KDK announced the arrival of a second rig as they move forward on this year's 25-km drill programme on the MPD property in SE BC. They are primarily searching for (and finding) large Cu/Au porphyries, but the arrival of the second rig pushes forward when they will drill test a potential high grade gold deposit they discovered last year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34337245
Silver Bull Mining aka SVB announced they have begun arbitration proceeding under against the Mexican government in the Arbitration with International Centre for Settlement of Investment Disputes. They are seeking $178M in damages due to the government's failure to remove an illegal blockade that has kept SVB from accessing their their Sierra Mojada project.
They give no timeline for the proceedings, but so far this year things have been moving through the steps briskly, so let us hope that pace continues.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34338555
Today we get two PRs concerning west African gold producer Endeavour Mining aka EDV.
First we hear that they are selling their 90% interest in two of their Burkina Faso mines, Boungou and Wahgnion, now described as 'non-core', to an African investment fund. In return, over time they will receive a variety of compensation including cash, loan forgiveness, and NSRs which EDV estimates will eventually amount to about $300M.
As a result of the sale, EDV is reducing its full year 2023 production guidance for continuing operations from 1,325-1,425koz to 1,060-1,135koz Au,, while AISC guidance from continuing operations has improved by $45/oz to $895–950/oz. They expect this decrease to be more than made up for by next year due to a number of projects to be put into production by the end of 2024.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34338584
Then we hear that recently Kinroos Gold rejected a takeover attempt by EDV. EDV has long been acquisitive. In the last few years they successful acquired rivals Teranga and Semafo, and failed to consummate a deal to buy Centamin. There is no word on whether talks between K and EDV will resume, but I am sure EDV will remain on the hunt as they continue to build their cash stash out of gold production.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34338595
This week we witness a development that should eventually help Wallbridge Mining aka WM out of the doghouse. For the first time I have seen, they are being covered by a major Canadian brokerage. In the wake of this week's release of a PEA for the Fenelon gold project in Quebec, BMO has instituted coverage with a rating of Outperform and a target of 75 cents. It turns out they like the PEA more than I did, citing Fenelon as one of the few gold projects worldwide that are targeting low cost production of 200k+ oz Au per year in a good mining jurisdiction. They also cite the low gold price used in the PEA ($1600/oz) and the upside as the nearby Martiniere deposits becomes included in future economic studies, and see Fenelon as very marketable to a major looking to bolster their production.
BMO are modelling a construction start in 2026 leading to first production in 2028, but like me they expect that WM will have sold off the properties before that.
Saville reminds us that even as the price of gold sets a three-month low, the key factor right now for the PoG is the 10-year TIPS yield, a proxy for the real US long-term interest rate, which is currently messing around near the top of the range it has occupied for the last nine months. If it breaks out to the upside, look for gold to decline to the low $1800, he says, but when the 10-year TIPS yield eventually breaks down, that will catalyze a serious liftoff in the PoG.
CEE, WM, IAU, ODV, NRN
African gold miner Centamin aka CEE remains firmly focused on its Sukari gold mine in Egypt, but at the same time they have been advancing the Doropo gold project in Côte d'Ivoire, and today we get to see the results of a a generally positive PFS for Doropo.
THE PFBS envisages a 10 year mine life, based only on the Probable Reserves, producing 173k oz Au per year at a cash cost of $839/oz, with higher and lower cost annual production in the first five years. The capex is reasonable at $349M, and should be able to be covered by cash on hand and cash flow from Sukari. I do not like the 5% discount rate they used -- I prefer 8% -- but that is offset by the use of $1600 as the PoG. In any case, the post-tax IRR is 26%, which is okay but which will also be improved as they continue to study the economics with a full FBS, due in the first half of 2024, after which they will submit a formal mining license application.
Côte d'Ivoire in general, and the area where Doropo is situated in particular, is mining-friendly, so I do not foresee any problems with permitting. It is estimated that it will take 36 months from investment decision to production, which takes us to 2027.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34334372
In response to this announcement, BMO released a new analyst report on CEE which called the results broadly in line, though noting the delay in projected first production, they reduced their target price to $C2.01 while maintaining a Market Perform rating.
Quebec gold developer Wallbridge Mining aka WM released a PEA on its flagship Fenelon gold project. It envisages the mine producing 212k oz Au per year for 12.3 years at a cash cost of $749/oz. The capex is reasonable at $645M, but the after-tax IRR is not great at only 18%. Fortunately there are ample opportunities to improve this, as WM continues to drill up more ounces both in the main Fenelon deposits and satellite deposits, even as they explore for new deposits in the area. I will certain be interested in what happens to the numbers if they incorporate the rapidly growing nearby Martinere project.
Overall, this PEA is a decent start, but WM has their work cut out for them to improve the numbers.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34334401
I'd been wondering why we hadn't received any news late of late Nevada gold developer i-80 Gold aka IAU regarding what has become their flagship asset, Ruby Hill, but today we find out why. They have been waiting for new permits to drill the largely unexplored 3 km corridor between the Hilltop deposit they have been drilling up and the newly acquired land to the south recently acquired when they bought out Paycore. They'll be looking for new instances of high grade CRD and skarn mineralization containing Au, Ag, Zn, and Pb mineralization.
I am definitely looking forward to what they find!
https://www.siliconinvestor.com/readmsg.aspx?msgid=34334412
Osisko Development aka ODV released the results of underground sampling at the Trixie mine on its Tintic project in Utah. The mine is currently producing small amounts of ore, but ODV is planning to ramp up production once they have completed exploration and developed a new mine plan.
Some of the assays returned impressive if narrow results, e.g. 58.43 g/t Au& 551.10 g/t Ag over 0.30m and 47.69 g/t Au and 214.33 g/t Ag over 0.46m, but keep in mind these are samples chosen specifically to produce high assays, not random samples. Meanwhile, sampling and drilling continue preparatory to producing a Resource Report.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34334435
Northern Shield Resources aka NRN released an update on their Root & Cellar Au/Cu/Te prospect in Newfoundland. They believe they have found a 'sub-crop' where mineralization resembles that of three large mineralized boulders found in the area.
This will be followed up by trenching and drilling, but since NRN seems to specialize in finding promising mineralization which ends up amounting to nothing, I am not holding my breath...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34334451
BTO x 2, TUO x 2
B2Gold aka BTO released an updated resource estimate for the Anaconda deposits, located 30km north of their flagship Fekola mine and mill in Mali. The oxide resources have increased to over 2M oz Au Indicated and over 2M oz Au Inferred. The idea is to begin by trucking the oxide ore to Fekola for processing, but BTO has also begun an economic study concerning the construction of a standalone mill.
As well, they have declared an initial sulphide Resources of 780K oz Au Indicated and 1.72M oz Inferred, though unless I missed it they don't mention where that ore would be processed. I am assuming it will be trucked to the Fekola mill. Meanwhile, ongoing exploration drilling is expanding both oxide and sulphide deposits in the area.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34328116
BTO also brought us an update of the construction of Goose, a gold mine in Nunavut they acquired as the result of the recent buyout of Sabina. They are sticking to a schedule involving commissioning the mill in Q1 2025, and are also sticking to the $800M budget with one exception, an additional $90M to push forward underground production. They have also made a number of changes to the mine plan and will continue to do so until it is finalized later this year.
The team BTO has assembled to construct the mine is very experienced, and given their track record I expect them to complete construction on time and on budget.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34330558
Teuton Resources aka TUO released an update on their many properties located south and southeast of Stewart in BC's Golden Triangle, many of the them JVed with Silver Grail. In the wake of GOT's and DV's discoveries on their Golldigger and Homstake Ridge properties, this area has become white hot, and it turns out that many of the new properties recently staked by GOT actually adjoin properties owned by TUO. Continued glacier melt has opened up areas newly available for exploration, so there are a large number of Au, Ag .Cu. and Zn prospects for exploration this summer. Expect constant news flow on this exploration through the summer, even as TUO continues to work with other JV partners on its flagship Treaty Creek and other properties in the Golden Triangle.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34328154
We also got some news which may affect several other of TUO's JVed properties in the area. Blackwolf aka BWCG, which owns a number of prospects in the Golden Triangle and adjoining areas of Alaska, is buying out Optimum Ventures aka OPV, which has JVs with TUO on Harry and Outland, both in the Golden Triangle. OPV was very gung ho on Harry, pursuing a robust exploration campaign. It remains to be seen if BWCG will be as enthusiastic.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34328198
And I will share part of a sentence from Saville -- 'delays to the emergence of definitively negative economic and stock market onsequences of the monetary tightening probably mean that a better opportunity to buy gold will arrive within the next three months'.
GOT, OGC, ARK, HMLO, RIO, IPT
Goliath Resources aka GOT's latest PR on the drilling campaign on the Surebet zone on its Golddigger Ag/Au prospect in BC's Golden Triangle is at least 90% cut and paste from the recent PR announcing the start of this year's drilling, but luckily they did remember to add a bit of new information.
If you read carefully, you will discover that the first hole, a 250m step-out into an area they have dubbed the Golden Gate Feeder zone, was chosen due to snow conditions on the property. Fortunately, the core contains visible gold in several intervals, including one interpreted as an extension of the Bonanza Shear. Notably the visible gold appears analogous to an intercept from a hole from last year that did yield high grade assays.
That said, this PR includes no assays, not a good sign considering how long it took GOT to release any assays at all last year, completely destroying any momentum the stock price had.
Let's hope that this year they shelled out for expedited assays.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34325949
Gold and copper miner Oceanagold aka OGC does not often release PRs that contain only drill results from just one of their properties, so judging by their latest PR, they must be pretty chuffed by the latest drilling from Wharekirauponga, a deposit located about 10 km north of their Waihi gold mine in New Zealand.
Wharekirauponga already hosts an existing Indicated Resource of 1.7mt @ 12.3 g/t Au for 660k oz Au and an Inferred Resource of 2.6mt @ 7.8 g/t Au for 640k oz Au. Based on drill results like 0.5 g/t Au over 11.1m and 51.3 g/t Au over 5.9m, it looks like they might be able to increase not only tonnage but grade during the ongoing resource conversion drilling. They plan to complete an PFBS on Wharekirauponga next year.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34325975
Even as Arras Minerals aka ARK continues drilling on its main copper/gold prospect in Kazakhstan, Beskauga, they are ramping up exploration on a number of other Kazakh prospects, none of which have been subject to modern exploration techniques. These other licenses comprise over 3300 sq km, and will see an extensive sampling programme followed by trenching and geophysics, and finally, if warranted drilling.
The prize they are seeking? Large Cu/Au porphyries.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34327127
The moment of truth approaches for Hemlo Explorers aka HMLO's geological model for their Project Idaho prospect in Ontario with the announcement that drilling will start shortly. That model is based on the nearby Marathon Pd/Cu deposit being developed into a mine by GENM. Project Idaho hosts a chargeability anomaly 3 km in length that, just like Marathon, is located next to the Coldwell Complex, our of which mineralization seeps and then is stopped by less permeable rocks on the other side of the anomaly.
Fingers crossed...
https://www.siliconinvestor.com/readmsg.aspx?msgid=34327158
Not long ago the Chilean government kicked Rio2 aka RIO in the teeth by interfering in the permitting process for their development of the Fenix gold mine in the north of the country, making them jump through extra hoops, costing them time and money. Today we get some news that is more positive. RIO was able to apply for receive a $5M tax refund from the government, meaning they are fully cashed up for another year. Meanwhile, the company we investors wait for announcement from that same government about when the appeal for the permit problems will be heard.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34327186
Impact Silver aka IPT released an update on their recently acquired Plomosas Zn/Pb/Ag mine in Chihuahua, Mexico. The operation has received little investment in recent years, so IPT has shut down operations temporarily while they upgrade the operation. A new mine plan is being developed, the mill and underground equipment are being upgraded, and new tailing facilities are on the way. Exploration is underway, both underground and on other targets including some with high Au grades.
IPT palns to restart production on a limited basis next quarter, gradually increasing until they reach full production levels Q1 2024.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34327246
GOT, KTN, MAI, MIRL, CKG
Goliath Resources aka GOT released a rather confusing PR concerning drilling at its flagship Golddigger Au/Ag prospect in BC's Golden Triangle Part of the confusion came from trying to figure out exactly what drilling on what prospect is underway, but eventually I realized they were merely repeating the information we already have from recent PRs about Golddigger, particularly the Surebet and Goldswarm prospects. Maybe there are a few nuggets of new information squirreled away amidst the repetition, but I was unable to find them. If you have, please enlighten us!
https://www.siliconinvestor.com/readmsg.aspx?msgid=34318902
Kootenay Silver aka KTN released a very short PR announcing that they have made the final payment and now own 100% of their Columba silver project in Mexico. It struck me that we haven't heard any real news from KTN in a while, so I checked, and indeed the last exploration-related PR dates all the way back to September. It's time for them to get off their asses and start earning their pay!
https://www.siliconinvestor.com/readmsg.aspx?msgid=34320252
The IKN paid newsletter brings us tidbits on several companies I follow. First, he points out that president of Minera Alamos aka MAI, Doug Remshaw, just bought another 100k shares, bringing his holdings close 9M shares.
IKN also brings us more bad news re Peruvian gold miner Minera IRL aka MIRL. Apparently there have been other employee resignations, including long time employees, something MIRL hasn't bothered to tell us about, and CEO Benavides never even bothered to show up for work till Friday last week. The ship is rudderless and sinking.
I will just make a brief mention of Chesapeake Gold aka CKG, who are trying to develop the large low grade Metates deposit in Mexico. Since their concessions troubles were announced the share price has been plummeting, today dropping almost to a dollar, far lower than it has been since the founding of the company over 20 years ago. At some point, the shares will become a bargain, but I have a feeling there is more downside to come as long time holders get shaken out. (I sold my shares years ago, so I am just watching.)
Interestingly, Saville, who is not given to hyperbole, after looking at a number of variables including the money supply and the SPX and various ratios, is now saying that $3000 is a plausible target for the PoG in the first half of next year. He also reminds us that we are in volatile territory, and that the risk of a decline to the mid-1800s in the next while remains apparent.
IAU, WM
Nevada gold miner i-80 Gold aka IAU released another set of drilling results one of the properties it is bringing into production, McCoy-Cove. The results are part of a 40km drill programme aimed at upgrading existing resources ahead of a revised Resource Estimate and a full feasibility study.
Cove is already one of the highest grading gold deposits under development in North America, with the existing resources grading above 10g/t Au plus a silver kicker, so it is no surprise they are getting assays like 12.8 g/t Au over 14.2m and 13.8 g/t Au over 7.6m across multiple holes. Meanwhile, they are also advancing a new decline and drift as well as carrying out environmental and metallurgical testing to prepare for the FBS.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34313765
Quebec gold developer Wallbrifge Mining aka WM released an update on its second featured project, Matiniere, located to the west of its flagship Fenelon project. So far this year WM has completed over 10km of drilling at Martiniere as well as geophysics. This PR contains the results of five holes, with a over a dozen holes still pending. The big news out of this batch of holes is that they have extended mineralization over 250m to the east of the MRE with results like 5.15 g/t Au over 4.00m including 9.28 g/t Au over 1.55m, as well as 1.63 g/t Au over 19.35m including 6.96 g/t Au over 2.30m.
They will return to follow up these results with more drilling once the rest of the assays are in and the geophysics results are digested.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34314946
MAI, MIRL, SVB, TUO, WM
The IKN newsletter last weekend dissected the recent PR from Mexican gold miner Minera Alamos aka MAI concerning its Q1 results and finacning for the construction of Cerro de Oro. I can't say much, just that results are as expected, and that the numbers show that MAI will be able to pay off the loan within a year and quickly reduce the NSR to 0.75% from cash flow.
IKN also brings us new details of the shenanigans at Peruvian gold miner Minera IRL aka MIRL. It turns out the delays in filing the latest financials were due to over $29k in fraudulent receipts submitted by a member of management in the wake of last Year's European roadshow. The money has been repaid, but the executives are not having their salaries delayed as the company runs out of money on the way to losing their flagship asset Ollachea before the end of the year. What a mess!
Silver Bull Resources aka SVB released an update on its NAFTA claim against the Mexican government for allowing an illegal blockade to cut off access to their Sierra Mojada property in Coahuila, Mexico. SVB met with government representatives but were unable to resolve the matter amicably, so they have filed an official notice of arbitration seeking an award of 'not less than $178M'. One wonders what they will do with the money if they win.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34312412
Teuton Resources aka TUO released an update on the drill programme it and its JV partners are conducting on its Treaty Creek Au/Ag/Cu project in BC's Golden Triangle. They have already completed over 20% of the planned 25km of drilling. No assays are yet available, but based on the core they have seen so far, they have already had great success at both infill drilling at Goldstorm and, excitingly, on stepout drilling to the northeast. The core from the first hole, a 150M stepout, looked so good they have already begun another hole 150M further NE, and are constructing two more drill pads a further 150M and 300M out. Goldstorm is already huge and keeps on growing.
And in a few week more rigs will arrive to drill up Perfectstorm, a recently discovered system located midway between Goldstorm and SEA's Iron Cap deposit. I am also really looking forward to seeing what they find.
BTW, the PR makes a special point of thanking Newcrest for allowing them to use their access road to the nearby Brucejack mine to get their equipment onsite at Treaty Creek. It is a positive to see them having good relations with one of the companies that is a candidate to buy and develop Treaty Creek.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34312440
Yesterday we heard from Wallridge Mining aka WM that they have had to to shut down exploration at their Fenelon gold project in Quebec due to wildfires, joining a long list of mining companies that have been affected. But today we get some results from the more than 30km of drilling completed so far this year at Fenelon.
One set of holes extends the mineralization at the Area 51 deposit another 90m down plunge, while the other set are from around the Ripley zone south of the main Fenelon deposit, where the Jeramie Diorite and Sunday Lake Deformation Zone intersect with favourable host rocks. They have already found enough gold to call Ripley a satellite deposit, and they clearly expect to discover significant mineralizationa s they untangle the complex geology.
As well, WM confirmed that a PEA for Fenelon will be completed this month.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34312467
MAI, RRI, EDV
Mexican gold miner Minera Alamos aka MAI released a three part update.
First, they announced a $25M financing package for the costruction of their second mine, Cerro de Oro in Zacatecas. In general I like the terms, first because there is no equity component, i.e. no dilution. It comes in two parts. There will be a $15M loan, $5M of which will be available immediately for pre-costruction activities, with the rest available when they receive the construction permits, expected to arrive early next year. There is also a $10 royalty package, all of which can be bought back for gold or cash.
Next we hear about their producing mine, Sanatana in Sinaloa. The transition to production from Nicho Main has begun, and they continue to stack ore on the leach pads while they wait for permits to expand production by constructing new leach pads. They have also begun a new round of exploration drilling.
Finally, we get an outline of MAI's Q1 financial results. Due to the transition underway at Santana, we knew Q1 was going to be light, but they still managed to make net income of of $1.5M. Reflecting the transition, their cash stash decreased to $10.2M at year end, plenty enough to get them through the next while until the numbers start improving again. They remain debt free though that will change shortly when they begin to draw down the Cerro de Oro loan.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34306851
Prospect generator Riverside Resources aka RRI released an update on its Duc prospect in the Porcupine mining district near Kapuskasing, Ontario. Shallow drilling had already identified gold minerlaization, and followup magnetic surveys have identified underlying structures. There will be further geophysics and mapping and sampling later in the summer in preparation for a more extensive drill programme.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34307886
It has been interesting to watch the trading in west African gold miner Endeavour Mining aka EDV. Even as the overall sector is in the midst of a correction, EDV recently set a 52-wee high and continues to trade around the price peak set in 2020. Before that you have to go back to 2008 to find EDV's share price this high, so if gold does take off later this year as predicted by Saville and others, look out above!
Speaking of Saville, he continues to maintain that PMs are probably near a correction low, and that once the financial headwinds dissipate, they and the associated stock indices will take off to new ATHs, possibly as early as August.
HMLO, EDV, MAI
Hemlo Explorers aka HMLO announced this year's exploration programme for their Project Idaho property in Ontario, as they have just received the necessary permits. The primary focus will remain along the western side of the property, which contains an extension of the Coldwell Complex, which also hosts the nearby Marathon Pd/Cu mine under development by GENM. And for the first time, they will be exploring the east side of the property, which is also prospective for gold.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34305094
FWIW, Edison has put out an update on Endeavour Mining aka EDV. Based on the Q1 results beating forecasts, they have increased their earnings forecast for EDV for 2023 by 14.6%, and they also note that EDV being included in MSCI's Global Standard UK Index in a few days should trigger an inflow of up to 11M shares.
https://d3s3shtvds09gm.cloudfront.net/fb02f41c2ad80021088ca1a52faab575.pdf
The IKN newsletter pointed out that on Friday someone dumped over 500k shares of Minera Alamos aka MAI and pushed down the price substantially. IKN tells us to expect an update from the company when they file their financials on Tuesday, the content of which I hope will complete the recovery from the dump.
Saville continues to think that PMs and PM stocks will end the current correction with a low in the next month or so, maybe sooner, with the PoG possibly approaching $1900 before it reverses upward. He also thinks oil is forming a strong bottom right now.
IPT, IAU, GOT, CAPT
Impact Silver aka IPT announced its Q1 results, which were mixed Production from their mines and mill at the Royal Mines of Zacualpan in Mexico was up from last year, as were revenues, primarily due to higher gold and lead production. Silver production was up marginally thanks to higher mill throughput, with the silver grade remaining flat. As a result, revenues were up 7% from last year, but cash costs were up 16%, primarily due to foreign exchange loses. They remain in good financial shape, with no debt and $14.3M at quarter end, with another $9M added to the kitty by a recently closed PP.
I am still not sure what IPT is going to do with all that money. Some will go to more exploration and possibly new mine development at Zacualpan, and some will go to upgrading operations at the recently purchased Plomosas Zn/Pb mine in Chihuahua. To that end, they have temporarily ceased mining at Plomosas while they carry out the upgrades, and will do the same with the mill in the months to come. They also hope to begin gold production at Plomosas.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34300023
Nevada gold miner i-80 Gold aka IAU has been making an effort to become more visible on the US markets, including listing on the NYSE last year. Now they are taking what they hope will be an important next step in the process with the announcement that they have been included in the latest version of the Russell 3000 index. This should increase liquidity and visibility for the stock to American investors; time will tell if it also improves the share price.
https://ca.finance.yahoo.com/news/80-gold-set-join-russell-100000308.html
It's been a long time since Goliath Resources aka GOT has even mentioned any of their properties besides the Golddigger Au/Ag prospect in BC's Golden Triangle, but their latest PR heads 100km south to their Lucky Strike prospect, located just north of Terrace. Geophysics and mapping and sampling has identified two promising targets, each of which will receive 1km of drilling.
Goldsource is a prospective breccia where samples like 4.92 g/t Au and 14.55 g/t Ag have defined a 550m outcrop at the middle of a circular feature a kilometre in diameter that has never been drilled.
Head 14km north from Goldsource and you come to Bullseye, which samples and geophysics have indicated hosts a large Au/Cu porphyry that also never been drilled, and appears to contain the source for some of the most prolific placer creeks in BC.
GOT's focus will certainly remain on Golddigger, but if they cam come up with some good drill results from Lucky Strike, look for them to continue exploration there as well. It's an easy property to access, near logging roads and power. They don't actually say when drilling will begin, but I am sure it will be soon.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34300079
We hadn't heard from Capitan Silver aka CAPT since January, and now we know why. They have been doing more drilling and mapping and sampling on their Cruz de la Plata prospect in Durango, Mexico while integrating the adjoining property they acquired from Fresnillo in November, giving them control of an entire silver district with a number of past-producing mines.
They have been able to extend several previously-drilled prospects, and have identified a number of others, now comprising over 22 km of Ag/Pb/Zn/Au veining as well as a disseminated oxide gold prospect, all of which will be followed up with further exploration in the months to come. I expect the news flow to pick up substantially.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34300098
KRR, ODV, GOT, OGC, BTO
We already knew that Australian gold miner Karora Resources aka KRR had a bang-up Q1 in terms of production with a record output of 39827 oz Au, but these days the focus with miners is on costs, and with the release of their financial results we learn they did pretty well there too, with a cash cost of $1124/oz Au, slightly up from Q4 but down almost 20% from Q1 2022. Likewise, metrics such as cash flow and revenue were roughly comparable to those from Q4 2022 and up considerably from Q1 2022, but they did record a small loss on the quarter due to adjustments in financial derivatives. As a result of this and an extensive capital programme, their cash stash dropped slightly to $65.9, but they expect this to grow through the rest of 2023.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34291455
Osisko Development aka ODV released drill results from ongoing drilling in the Trixie area of its Tintic Au/Ag property in Utah, including underground drill holes from with the Trixie mine and the rest of last year's results. Underground, they continue to intercept narrow high grade intercepts like 23.49 g/y Au and 58.79 g/t Ag over 1.37m, and 191.00 g/t Au and 707.00 g/t Ag over 1.07m as they continue to get a handle on the vein distribution. These results will feed into a new Resource Estimate. As well, exploration drilling stepping out distances up to half a kilometre out found some useful results. which will be followed up with more drilling. As well, in Q3 they will be exploration of potentially very large Cu/Mo targets on the property.
I spent some time on the weekend comparing IAU and ODV. In terms of buying shares, I think IAU is a much stronger company so would go for them every time, but I am happy with the ODV.WT.A warrants I picked up last, as I think their leverage could lead to a quick double at some point during the warrants' remaining years of life. FWIW, I am already up about 15%.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34294893
We got two related pieces of news from Goliath Resources aka GOT, who are drilling up the Surebet Au/Ag deposits on their Golddigger property in BC's Golden Triangle. First, we hear they have upsized and closed a PP for $9.65M.
https://ca.finance.yahoo.com/news/goliath-resources-closes-upsized-brokered-132700726.html
The next day, GOT announced the details of this year's drill programme. Last year mot of the drilling was aimed at infill and extensions of the main Suebet zone; this year there will be more emphasis on exploration across a number of targets across Golddigger, which over the winter was more than doubled in size to 59K ha and now includes 56 km of the Red Line, which seems to be the main source of minerlaization in the area.
They will also test some extensions to Surebet, but I am most excited about the initial drilling on the Goldswarm zone, located 4km north of Surebet, where sampling found some high grade Au assays. They will also be looking for the underlying porphyry source of mineralization, as well as numerous promising targets along the Surebet Corridor along the Red Line.
If they can manage to hit big on even a few of these targets, this could finally be the year when GOT gets out from under the effects of third party promotions which have capped the share price and those sucked in by the schemes.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34295945
FWIW, Raymond James updated their model for Oceanagold aka OGC, maintaining their rating at Outperform while raising their target to $4. They also instituted coverage on B2Gold aka BTO at Outperform with a target of $US5.
Pick 4 Contest #18 Deadline Today Is less than 7 Hours Away
Remember to get your picks in before Today’s market close. Below is the link to the board. Hope this helps.
https://investorshub.advfn.com/Pick-4-Contest-No-18-42038
Pick 4 Contest #18 Deadline Friday
Remember to get your picks in before Friday’s market close. Below is the link to the board. Hope this helps.
https://investorshub.advfn.com/Pick-4-Contest-No-18-42038
BTO, ODV, ARK
Gold producer B2Gold aka BTO released its Q1 results, and they were good. Production was strong across all their mines, with the above expectations production of 251k oz Au being driven primarily by higher than expected grades at their flagship operation, Fekola in Mali. Cash costs of $653/oz Au came in 20% below expectations, primarily due to Fekola and Otjikoto in Namibia. As a result, they grew their cash stash to $674M.
Management says they are now in a strong position to meet or exceed their annual guidance in terms of both production and costs., even as they concentrate on integrating recently-acquired Back River in Nuavut and bringing the Fekola regional deposits into production.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34286877
In response, BMO issued a new analyst report which says they were impressed but are maintaining BTO at Outperform with a target of $7.50. TD's new analyst report saw the quarterlies as Positive and kept them at their highest rating Action List Buy with a target of $9.50.
We also got news concerning recent drilling at BTO's JV with Aurion in the Central Lapland Greenstone Belt in northern Finland. The results released so far are from Sinermä, located 23 km WNW of the original Helmi discovery and included some decent intercepts of Au minerlaization, but more importantly, the same structures that host Helmi are also extensive at Sinermä. More drill results are pending.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34286935
Arras Minerals aka ARK released an update on the results of last year's extensive exploration sampling programme on their holdings in Kazakhstan. Analysis of of over 16000 soil samples revealed three promising Cu-Au porphyry targets along with a Au target and something new, a Ni target. Meanwhile, they continue to drill away on the more advanced Beskauga Cu/Au deposit along with nearby targets.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34286973
Osisko Development aka ODV released its Q1 results. At this point ODV is primarily a developer but did sell 1503 oz Au in the quarter, primarily from processing tailings at its San Antonio property in Mexico. (No costs were included in the NR.) They had just over $122M at the end of the quarter, and they will need it to continue extending the decline at the Tintic Au mine in Utah, as well as underground drilling to define future production and upcoming exploration drilling at a number of targets. Meanwhile, they wait for permits at their Cariboo Au project in BC, where their new approach features a staged, less capital intense approach to development. They expect to receive the final permits necessary to begin construction by Q1 2024.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34286893
WM, KRR, CCW, IAU x 3, ORS, ODV, MAI, MIRL
For the last few years, Wallbridge Mining aka WM has concentrated on drilling up resources and reserves on its Fenelon and Martiniere gold projects in Quebec, and they were very successful, proving up over 5.5M oz between Inferred and Indicated. This year, they have turned their focus to exploration at Fenelon, identifying 8 priority targets around the Fenelon MRE. Today they released results of drilling at two of these targets.
Target 1 is located 700m NW of the MRE, and drilling has found an extension of the Jeremia Diorite, which hosts much of the mineralization in the area. The headline result is 0.96 g/t Au over 21.05m, including 3.45 g/t Au over 2.20m.
At Target 5, located about 2 km east of the MRE, they have found a splay of the Sunday Lake Deformation Zone located at depths of less than 100M below surface, with the headline assay being 14.90 g/t Au over 0.50m.
Both these targets will be followed up later, but for now the drills are moving on to Target 8, located north of and showing similar characteristics to Target 1, and Target 7, located further along the same splay that hosts Target 5.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34284379
I've been known to poke fun at companies exploring for other metals suddenly promoting potential lithium deposits they had ignored for years. IMO today's announcement by Karora Resources aka KRR and their fellow Australian gold miner Kalamazoo Resources aka KZR does it right.
Both KZR and KRR are focused on gold (plus some nickel for the latter), so they have reached an agreement to create a new lithium-focused company into which each of them is going to contribute their potential lithium assets. These comprise a number of properties in various parts of Australia, some located next to existing lithium mines, some greenfield. Once the transaction is done, the idea is to do an IPO and list on the ASX under the Kali Resources.
This does raise one problem for me. If the plan is to spin out the Kali shares to existing KRR shareholders, some, like me, will be left with shares that are basically worthless due to the high transaction fees for trading ASX-listed stocks. I plan to follow this up with the company.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34284424
Canada Silver Cobalt Works aka CCW has announced the start of this year's exploration programme at their past-producing Castle East property near Cobalt, Ontario. They are following a procedure which has worked well on this property in the past, looking for surface extensions of silver and gold mineralization already identified by past drilling. Stripping in prospective locations will begin next week.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34284551
I mentioned earlier this year that Nevada gold miner/developer i-80 Gold aka IAU would have a lot of news flow this year, and sure enough, we just got three PRs in two days. But these are not the puff pieces you get from promotionally oriented companies; each of these have real meat in it.
First, IAU announced they have completed the buyout of Paycore Minerals, whose FAD property adjoins IAU's Ruby Hill property to the south. There has already been quite of bit of drilling on FAD, which has defined extensive high grade Au/Ag/Pb/Zn mineralization that is the down dip extension of the original Ruby Hill mine. It is about 2km south of IAU's original Hilltop discovery on the Ruby Hill property, and they now control over 2.5km of the mineralized structure.
This is a perfect bolt-on to IAU's properties, and will be the focus of an intensive drilling campaign and will become part pf IAU's planning for future production.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34284556
Next, we get IAU's quarterlies. During Q1 they sold 2349 oz Au, most of it from residual leaching at Lone Tree and Ruby Hill, but also, for the first time, ore from Granite Creek which is being loaded onto the Lone Tree leach pads. At this point, the company's emphasis is one development and exploration rather than production, so it is a important that they ended the quarter with plenty of capital, including a cash stash of $57M and another $33m in restricted cash.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34285630
And finally, IAU brings up an update from their other development project, McCoy-Cove, where a large drilling programme is underway at Cove. The drilling is designed to fill the gap between the Helen and CSD Gap zones, with results from the first holes including outstanding assays like 12.9 g/t Au over 36.1m and 13.0 g/t Au over 6.0m. There will be a total of 40km of drilling, which along with metallurgical testwork will feed into a revised Resource Report and an FBS on what is one of the highest grade Au deposits in North America.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34285644
Orestone Mining aka ORS brings us an update from the Captain property in north central BC, where they are looking for giant Au/Cu porphyries similar to those found at the nearby Mt. Milligan mine. A fresh look at already-drilled core has revealed the presence of alteration and Au/Cu mineralized dikes in close proximity to the chargeability anomaly that is going to be drilled shortly. This finding greatly increase the chance that that anomaly could be one of the porphyries they are looking for.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34285663
I have added a new puppy to the stable, Osisko Developmetn aka ODV. Their main focus is restarting production at the Tintic Au/Ag mine in Utah on a property with a lot of exploration upside. They are also waiting for permits to start construction on the Cariboo gold mine in BC, and are producing Au and Ag by processing tailing on their San Antonio property in Sonora, Mexico.
But I don't won a single ODV share. Rather, I am playing the long life ODV.WT.A warrants. The warrants expire on Mar. 2, 2027 with a strike price of $14.75, so there is plenty of time for them to make it into the money if ODV can bring both Tintic and Cariboo into production as planned. There is also a $US-denominated version of the warrant which trades using the symbol ODV.WT.U and expires on the same day with a strike price of $US10.70.
If you are not familiar with trading warrants, proceed with caution! Yes, they offer more potential leverage to the upside but also to the downside, and if you are not careful they will end up at the dreaded value of half a cent per warrant and then expire worthless. Although much of the information on the header of the board at the following link is out of date because the person who created it is no longer posting, there are some useful calculators that still work and you can get advice just by asking with a post.
https://www.siliconinvestor.com/subject.aspx?subjectid=27370
The IKN newsletter this weekend featured a long update on Mexican gold miner Minera Alamos aka MAI, which remains their top pick. I will share a few items of note. First, the rains have returned so Santana can start producing again, even as they wait for permits to secure a long term water supply. Second, on the financial side, this quarter took a hit because 5.5k oz of gold they have already produced was delivered to a middleman who then refines it before passing it on to the final customer, and only then can it be booked as income. Hence, that Q1 inventories are way up while income was down is striclty an accounting measure -- they already have the cash they received for the 5.5k oz -- that will resolve itself when the sale is completed by the third party.
Hence, MAI is still in fine financial shape even as they work through the operational issues at Santana and prepare to build Cerro de Oro. Now they need to get production at Santana up to the 5000k oz Au per quarter as promised.
IKN also brought us news about Mineral IRL aka MIRL. April production at their Corihuarmi gold mine in Peru was a bit better at 1634 oz, but still no better than break-even. And the auditors still have not signed off on the books so the management CTO remains in place, even as time ticks ever closer to MIRL losing its flagship asset Ollachea to foreclosure.
FWIW, in the wake of Endeavour Mining aka EDV's quarterlies, BMO issued a new analyst report calling it Slightly Positive. They were generally happy with EDV's operations and finances, with the slight positivity resulting from costs coming in below expectations. BNO reaffirmed a rating of Outperform with a target of $38.
Scotia's take on EDV was more positive, indeed they rated the quarterlies as just plain Positive, citing the strong cost performance and how well both existing operations and the construction of two new mines are doing. Scotia usually has a higher target on EDV, and this continues with a rating of Sector Outperform and a target of $41.
FCX Freeport US$36.47
Freeport McMoran is a safe way to play copper and gold. Big producer of copper and well known and liquid. FCX should do well over time due to upcoming shortage of copper. As electrification grows, copper usage is bound to grow and new deposits are becoming more difficult to find and lower grade as well. My average cost is around 36.20.
OGC, EDV
Oceanagold aka OGC released their Q1 results, which were largely in line with expectations. It was known that gold production in New Zealand would be lower thanks to several now-resolved operational issues, but good quarters at Haile in the US and Didipio in the Philippines made up for that expected shortfall. Consolidated production for Q1 was 118k oz Au and 3.5 kt Cu, with the cash cost per oz Au dropping to $861, resulting in a net Q1 profit of $30M. Their cash stash did drop slightly to $53M, but this was due to a large inventory of unsold gold, so this will even out over the rest of the year.
OGC reaffirmed their guidance for 2023, based on what is expected to be a stronger H2 for a number of their operations. And they reaffirmed that production from Haile underground, currently under construction, will begin in Q4. And to remind you, OGC has also reinstituted their dividend, with the first payments arriving last month.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34279091
It's interesting to compare the two analyst reports I came across that were issued in response to this PR. Both Scotia and BMO mentioned the slight earnings beat,the reiterated annual guidance, and the coming start of production at Halle underground. Both raised their target to $4.25, with BMO rating them at Outperform and Scotia at Sector Outperform. That's consensus...
And then I came across Sctoia's response, which makes the same points and keeps OGC at Sector Outperform with a target of $4.25. Yet more consensus!
West African gold producer Endeavour Mining aka EDV released its Q1 financial results. We already knew their production results, which were largely as expected, down a bit from Q4 but expected to get stronger through the rest of the year. As a result, EBITDA and cash flow were both down compared to Q4, but once the accountants had done their adjustments, net earnings were up. Their cash stash dropped to a still healthy $810M, primarily because they spent $100M on dividends, $11M on share buybacks (which I expect will drop off given how the share price has been rising of late), and $330M buying back a convertible bond.
As well, EDV is continuing an extensive exploration programmes, both greenfield and brownfield. In terms of immediate growth, the Sabodala-Massawa expansion the Lafigué greenfield project are both on budget, with 70% and 46% of the initial capital committed respectively, and on schedule to begin production in Q2-2024 and Q3-2024 respectively.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34280546
OT: Why do you have such a problem being gracious?
Your posts always seem to contain some kind of insult, veiled or overt.
LC
As instructed, I am keeping an eye on doctor copper and it is obviously about to take a dump to 3 dollars and lower. A wet behind the ears observer of technicals can grasp this with minimal effort.
BTO, MAI
B2Gold aka BTO released an update on what they are calling the Fekola Regional area. This comprises a number of properties located about 25 km NW of the main Fekola mines and mill. BTO has been able to outline a number of deposits in the Region including both sulphide and oxide ore, and they are busy drilling up more prospects as well as converting known mineralization in Resources and Reserves.
The largest of the deposits, Anaconda, already has more than 3.4M between Inferred and Indicated, which will be updated in Q3. As a result, a study to bring these satellite deposits into production by trucking ore to the Fekola mill will be delayed until year end. BTO opines that they might be able to increase Fekola's overall production to 800k oz/year, which would be a big boost to the company.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34274580
In response, TD released a new analyst report calling the NR Slightly Positive, They model total Fekola production at only 600k oz Au/yr, and kept them at Action List Buy with a target of $9.
Mexican gold miner developer Minera Alamos aka MAI released it annual financials for last year plus an operational update. Last year marked the beginning of production at the Santana mine, and although they experienced some hiccups and delays, mostly to do with the weather, they did manage to produce almost 12k oz Au with another 7k oz already on the leach pad. As a result, in 2002 they managed to generate a net income of $5.6M, so at year end their cash stash was over $13M. They remain debt-free, though that may change as they are in talks with various potential sources for financing the construction of their second mine, Cerro de Oro.
We also learn the possible reason for the recent weakness in the share price. Gold production at Santana is currently low because they are concentrating on waste stripping while waiting for permits to expand the leach pad to triple its current size. They say they can make up part of the deficit very quickly once they get the permits, and ongoing exploration has defined enough new minerlaization to fill those leach pads.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34278170
Looking at the price of gold, Saville points out that gold has made a triple top, greatly increasing the chance of a major upside breakout, but it likely won't happen until the monetary headwinds abate. He is looking for a fairly large correction first, before the breakout comes in H2. Likewise, he is looking for silver to drop to around $23 before it heads into the $30s later this year.
Saville also argues that inventory numbers have little predictive power for industrial commodities like copper; rather, they are driven by macroeconomic conditions and unexpected supply disruptions. He currently sees copper as having a better chance of heading to the low $3s rather than getting approaching $5.
In other words, he thinks there are some very good buying opportunities to come.
The IKN newsletter has been bullish copper for some time, and remains tentatively so based on market fundamental but has become wary and is keeping an eagle eye on Dr. Copper.
My apologies, I should have checked instead of relying on my memory. The bump in MAI was not due to the large seller running out of shares -- that happened some time ago, hence the stronger trading the last while -- but because someone wanted to get in while few shares were being made available.
LC
SVB, IAU, TUO, BTO
The shares of Silver Bull Resources aka SVB have woken up for the first time in a long time on the basis of their latest NR. Since 2019 SVB has been unable to access their only asset of worth, the Sirra Mojada Ag/Zn/Pb/Cu project in Coahuila, Mexico,, due to an illegal blockade which Mexican authorities have been unable or unwilling to address. Recently SVB announced an application to file for more than $178M in damages under NAFTA, and now we hear that Mexican authorities have requested a meeting on May 30th to try to negotiate an amicable sentiment.
SVB also announced that if that meeting doesn't resolve they will file a formal request for arbitration, They have also brought in a hot shot lawyer to help with negotiations, and reshuffled management between SVB and related company Arras Minerals aka ARK.
I doubt they will get all they are asking for, but I expect they will use whatever they do get to acquire a new asset. They could also just declare a cash dividend and wind up the company in order to concentrate on ARK.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34270642
I-80 Gold aka IAU has released an update on drilling at what has become their flagship asset, the Ruby Hills project in Nevada. Last year they found high grade CRD Ag/Pb/Zn/Au mineralization in what they call the Hilltop zone, and now they have found a new zone of similar mienralization they are calling East Hilltop, with intersections like 0.5 g/t Au, 226.1 g/t Ag, 9.7% Zn and 10.0% Pb over 8.4M, & 3.2 g/t Au, 366.0 g/t Ag, 19.8% Zn and 10.2% Pb over 0.9M.
They also stepped out from the Hilltop zone, with one hole alone intersecting three separate zones of mineralization -- 3.4 g/t Au, 11.0 g/t Ag, & 6.8% Zn over 18.3M (Hilltop West), 9.9 g/t Au over 5.8M (Ruby Deeps extension) and 9.2 % Zn over 3.0M (new Geddes CRD discovery). They have also been drilling below the Archimedes pit, where they are finding multiple levels of mineralization, e.g. 7.1% Zn, 3.5 % Pb, 3.7 g/t Au & 116.7 g/t Ag in the Blackjack Zone and up to 11.6 g/t Au over 13.1M in the Lowerjack Zone.
They continue to drill with five rigs, including following up some intriguing gaps between known area of mineralization as well as new targets. Following drilling, we will get a new Resource Estimate and then economic studies, including conversion of the existing Ruby Hill mill to process the CRD minerlation.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34270671
We've been waiting to hear how Teuton Resources aka TUO is going to monetize its share of the JV on the Treaty Creek property in BC's Golden Triangle and its giant Au/Ag/Cu deposits, and now we finally get an outline.
In essence, all of TUO's properties and JVs which are not Treaty Creek will be spun out into two separate company which presumably will be listed separately at some point. One will hold all the properties south of Treaty Creek along the Sulphurets fault which is prospective for more giant Au/Cu deposits, while the other will hold the Au prospects east and south of Stewart near the properties GOT and DV are exploring in the area.
It will take some time for the details to be worked out and the legalities satisfied. I expect a minimum of two years before current TUO shareholders end up with shares in all three companies, assuming Treaty Creek isn't sold first.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34270981
FWIW, in the wake of last week's acquisition of SBB by B2Gold aka BTO, TD issued a new analyst report. Citing BTO's record of growing through acquisition of shovel Ready projects, particularly Fekola, they see the impact as Positive, but kept BTO as Action List Buy with a target of $9.
TUO, WEX
Teuton Resources aka TUO and its JV partners announced that equipment is on the road to its Treaty Creek Au/Ag/Cu project in BC's Golden Triangle. The main objective of the upcoming drill programme, which will start in early May, will be to expand the already enormous Goldstorm deposit, particularly the north and northeast extensions discovered last year. As well, drilling will attempt to enlarge the recently discovered Perfectstorm deposit and metallurgical testing on materials from the Goldstorm, Copper Belle, and other deposits on the property.
Will this be the year a big company buys Treaty Creek? It would not surprise me.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34266852
WEX
I have added a new pony to my stable, Western Exploration aka WEX. The company has been around for 25 years, but only listed on the TSXV last year. They have a very experienced management team and are focused on the Aura property in Nevada, which already has three deposits with Inferred and/or Indicated Resources, some gold, some gold and silver, plus abundant exploration upside. One of the reasons I decided to buy in is the extremely low float, well under 40M shares fully diluted. No doubt this will grow as they work toward production, so IMO now -- or even better, at lower prices in the upcoming dig in the gold price before it takes off later this year --is the time to get on board. Due to the small float it trades thinly so pick your entry point with care. It took more than a week for my initial bid to be filled. Here's the website.
https://www.westernexploration.com/home/default.aspx
I am not that worried about the permits from MAI's Cerro de Oro, because neither the company itself, nor the IKN newsletter that follows the company very closely, are worried about it. I will keep an eye out for more information though.
I would suggest you contact the company directly and ask about this.
IMO the weakness in MAI's share price has been due to a big seller, who at some point should run out of shares to sell. Note that every time that seller stops making shares available, the price rises.
LC
LC MAI Great company Great Mgt W/DK Everything you said is right on. Cerro de Orro, they will build it quick, cheap and make money. What do you do with this
Mexican authorities announced that no more permits for new open-pit mining projects will be issued during López Obrador’s remaining government term, set to end in September 2024. Experts stressed that the ban on new permits poses a threat to investments and developing mining companies.
Mexico’s Minister of the Environment, María Luisa Albores, stressed that no more concessions will be granted for open-pit mining projects due to the negative impact on the environment and the adverse effects on the health of communities living nearby. In addition, the minister stated that many of the concessions already granted threaten 68 protected natural areas. Therefore, López Obrador’s government has ordered the creation of five new natural reserves, increasing the protected areas to two million hectares.
Argonaut sold the Ana Paula project to Heliostar this April (An impressive project), except now Helio has to bail on the open pit plan option and go underground?
Some risk there dont you think? Probably the reason for the soft MAI share price.
Doug keeps buying and nobody talks about this in CEO.ca. A penny for your thoughts.
https://mexicobusiness.news/mining/news/no-more-open-pit-mining-permits-ministry-environment
BTO, NRN, EDV, CEE
In the years I have been following B2Gold aka BTO, pretty well all of their many acquisitions have proven out. Today they announced they had completed the buyout of Sabina Silver & Gold aka SBB, and it will be interesting to see if they can continue the string of success with the purchase of this Nunavut gold mine to be. I expect so.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34264149
FWIW, in the wake of this announcement, BMO issued a new analyst report resuming coverage of BTO. (They were involved in the takeover of SBB so had to drop coverage until the transaction was completed.) In the wake of the transaction and following an increase in their PM price deck, BMO is rating BTO as Outperform while raising their target from $7 to $7.50.
Northern Shield Resources aka NRN continue to poke around at various targets on their Root & Cellar prospect in Newfoundland, finding samples that include Au, Ag, and Cu, as well, for the first time because it hasn't been tested for up till now, the valuable rare metal tellurium (Te). If they ever do come up with enough mineralization to be minable, the Te will be a valuable byproduct.
They also announced that they have crews "ground-truthing the preliminary gold targets generated from the recently competed Induced Polarization geophysical survey and, an area where the interpreted copper porphyry-type mineralization may come nearer to surface." Finding that underlying porphyry close enough to surface is almost certainly where a potential mine could be developed.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34264265
FWIW, Edison released a new report on West African gold producer Endeavour Gold aka EDV, highlighting the positive effects of a higher gold price. EDV has been trading well of late, but they point out that, based on their metrics, if EDV was valued equally to their peers it would be trading over $C51. You can access the report for free at this link. (Note if you want it in pdf form form you need to use the download button on the upper right.)
https://www.edisongroup.com/research/rising-gold-prices-begin-to-feed-through/32214/
Centamin aka CEE released their Q results, and they were generally good. Gold production from their Sukari mine in Egypt came in around expectations at 105875 oz, while cash costs came in below expectations at $937/oz Au, this in spite of the extensive pre-stripping programme, which will pay off in lower future costs, not yet having been completed. In spite of these expenditures, their cash stash remained steady at $155M with no debt. They also reiterated previous guidance for 2023 for the production of 450-480k oz Au at a cash cost of $840-890/oz Au.
There will be good newsflow for the rest of the year, including the release of a PFBS for the Doropo project in Côte d'Ivoire in mid-year, ongoing exploration at Sukari, and the first exploration results from the recently awarded Eastern Desert prospects in Egypt. But the big news will be the release of the revised mine plan for Sukari during Q2, particularly regarding increasing production of high grade underground ore.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34265540
FWIW, in the wake of this NR BMO issued a new analyst report that emphasized the word 'stable'. Accordingly, they kept CEE at Market Perform with a target of $C2.16.
FWIW, TD released a new analyst report changing their price deck for gold, raising the average 2023 gold price from $1850/oz to $1954/oz, and their 2024 price from $1850 to $2000/oz. They also opine that M&A will remain strong, and that B2Gold aka BTO remains their top puck among the gold producers.
KRR, BTO, AUN
Karora Resources aka KRR gave us the first look at its Q1 production and the new was good, with the Beta Hunt and Higginsville mines producing a record 39810 oz Au. This sets them up for an excellent chance of reaching their 2023 guidance. We also got the first look at their finances, announcing they exited the quarter with a cash balance of $65.8M, down only slightly from last quarter in spite of large expenditures on building raises and upgrading their mining fleet and mills.
Full details will come when they release their financial quarterlies early next month.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34261782
How time flies. It seems like B2Gold aka BTO just opened their Otjikoto gold mine in Namibia, but it turns out it was 8 years ago, and now they are announcing they are closing the open pit due to lack of remaining ore. They will continue to develop the underground component of the mine, along with processing low grade tailings.
https://www.siliconinvestor.com/readmsg.aspx?msgid=34262898
I can remember some heated exchanges on this board involving Aurcana Silver aka AUN. There were some posters who swore by it, but to me they have always had poor management which tended to be self-serving and also pursued what was IMO a suicidal dividend programme. Well, I guess I get the last word. This I was reading the TSXV bulletins and came across a notice that AUN has been suspended from trading for failure to meet exchange requirements, a step that almost invariably leads to delisting on the way to bankruptcy.
Saville continues to opine that after making a triple top in the $2060-2090 range, the mostly likely scenario for gold is a correction to somewhere around $1900-$1950 before breaking that triple top later thus year and heading to a new ATH. He also expects the gold mining indexes and ETFs to at some point correct back to their 50-day MAs before joining the party. And he points out that COTs show that sentiment is still supportive.
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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