Value Microcaps Junior Miners

[Lone Clone]

RRI, GOT, IAU, KRR, TUO

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RRI, GOT

We got two pieces of news involving prospect generator Riverside Resources aka RRI.

In 2020 RRI optioned out their Cecilia gold/silver prospect in Sonoro, Mexico to Carlyle Commodities, a small CSE listed explorer whose other properties are in BC. Carlyle has terminated that JV, but don't cry for Riverside. They have already received $100k and mess of CC shares and warrants as well as the results from the exploration that CCC carried out, and will no doubt option Cecilia out again, as they have done in the past.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33847596

In any case the Cecilia news is eclipsed by another announcement by RRI regarding their La Union gold/silver prospect, also in Sonora. This agreement dwarfs the one with CCC; if Mexican mining giant Hochschild eventually earns 100% of the property over a series of stages, RRI will have received not only various payments along the way but also a final $20M cash payment, as well as retaining a 1% NSR plus collecting fees along the way for managing the exploration programme

Overall, RRI is way ahead of where they were before these two announcements. and will end up even further ahead if, as I expect, they are able to option Cecilia out to a more focused partner.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33847590

Goliath Resources aka GOT announced they have moblized crews for four drill rigs to carry out an 85 hole, 24km drilling programme on their Golddigger prospect in BC's Golden Triangle. This is an important summer for GOT, with the focus being on extending the Surebet Zone by another 1200 metres. If they can, and the geology looks very promising, this gold/silver deposit is looking more and more like a future mine, especially given excellent results from metallurgical testing.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33848060

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IAU, KRR

I-80 Gold aka IAU has released the first results from this year's surface drill campaign aimed at the South Pacific Zone on their Granite Creek gold property in Nevada. This is one of the deposits that will be mined starting later this year after more drilling and a Resource Report.

I get the feeling even IAU's geologists are pretty surprised at what they are finding in the SPZ. This time the headline results include 16.4 g/t Au over 15.3M -- this from the deepest hole yet drilled into the deposit -- and 11.2 g/t Au over 9.0M. The deposit remains open along strike and at depth, so the rest of the drilling will focus on extending the deposit in those directions.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33855542

In the wake of their latest quarterlies, rendering disappointing by Covid and inflation, Karora Resources aka KRR brings us some positive news with an update that covers two topics concerning their gold mining operations in Australia.

First, we hear that the second decline at Beta Hunt has not only been permitted but that it is proceeding on cost and ahead of schedule. This new decline will allow KRR to implement their growth plans by doubling throughput at Beta Hunt once construction is complete, later this year or early next year.

And we also get some promising drill results from the Western Flanks resource and nearby deposits. Strong intersections were drilled in Western Flanks itself and in the A Zone North and Fletcher, plus they have discovered yet another shear zone they have named Sorenson. For a complex that has been mined for decades, Beta Hunt has been very good at delivering new prospects both for gold and for nickel.

Now we wait for more drilling results and Resource Reports while watching how KRR deals with the ongoing labour shortages and cost creep.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33855596

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TUO, KRR

Over the past few years, Uncle Moneybucks (Eric Sprott) has thrown millions of dollars at Teuton Resources aka TUO and its JV partners on the Treaty Creek gold deposit in BC's Golden Triangle, and they are certainly putting the money to work. We get a PR announcing that six drills are currently stepping out to the north on the already enormous Goldstorm deposit, while two others are doing exploration holes on the recently discovered CBS and Eureka zones.

And we have another interesting development which will certainly enhance the value of the property to prospective purchasers. Seabridge has been building a road to connect another enormous nearby gold deposit to Highway 37, and Tudor has announced the construction of another road to connect to that road, which will allow all-weather access to Treaty Creek.

Also, the JV partners are running a geophysics survey over Treaty Creek and nearby areas.

Expect constant news flow from TUP through the summer

https://www.siliconinvestor.com/readmsg.aspx?msgid=33856838

Big news from Karora Resources aka KRR -- they are acquiring Lakewood, a fully permitted operating gold processing facility that is capable of handling 1.0MT of ore per year. They see this purchase as key to their growth strategy, because not only does it add 60% more capacity on top of the Higginsville mill, it is located much closer to Beta Hunt, only 60km away.

The purchase does open up opportunities for making income through toll milling, but to cover the purchase price of $A70M (as well as $A10M in shares) KRR also announced a $C50M bought deal financing, priced at the disappointingly low level of $4.80 a share. Surprise, surprise, today the KRR share price dropped to just over $4.80 per share on the TSX.

The company is betting that the benefits of this deal will eventually more than make up for the current drop in the share price; I hope they are right.

https://www.siliconinvestor.com/readmsg.aspx?msgid=33856911

For more details on the bought deal, see the following link.

https://www.karoraresources.com/2022-05-04-Karora-Resources-Announces-C-50-Million-Bought-Deal-Financing