Value Microcaps Junior Miners

[Lone Clone]

EDV, MIRL, RIO, IPT, TUO

In the wake of two major purchases a few years ago and then shifting its main listing to the LSE, Endeavour Mining aka EDV has outlined two major objectives: a focus n Shareholder returns, and a focus of exploration and developing new assets to production. They have already come through on the former, increasing the dividends and buying back a substantial number of shares, and with its latest PR EDV gives us concrete evidence they are also delivering on the latter.

The rapidity with which EDV hs developed a substantial resource at their Tanda-Iguela property in Côte d’Ivoire has been remarkable. Their first drill hole at the Assafou target was announced only last year, and in the interim they have been able to establish an Indicated Resource of 14.9Mt @ 2.33 g/t containing 1,114M oz Au, along with an Inferred Resource of 32.9Mt @ 1.80 g/t containing 1,903M oz Au. (Note the low cost, less than $10 per oz of Indicated Resources discovered.)

In addition, metallurgical testing has indicated the ore will be easy to process, and the company has developed another 10 priority targets which may contain similar deposits, prompting EDV to schedule another 70k of drilling at Asafou and the exploration targets in 2023. Based on what they have found so far, EDV clearly expects this exploration to be fruitful, and they have stated that they now expect Tanda-Iguela to become a major production hub for the company. Expect to see economic studies on mining the deposit to start to be delivered in the near future. Based on the mineralization and metallurgy, it should be a relaltively straightforward open pit operation.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34088392

FWIW, in the wake of this PR, BMO released a new analyst report on EDV. They see this as a positive, noting that it highlights EDV's exploration advantage and affirms their position as the preeminent gold producer in West Africa, but kept them at Outperform with a target of $36.

Peruvian gold miner Minera IRL aka MIRL provided us with a corporate update, which as usual for this crew obfuscates more than reveals. They barely mention the community blockade at Corihuarmi, and there is no mention of what was done to resolve it, which is supposed to be an agreement to close the mine within a few years. There is also no mention of the fact that they are likely to run out of money within a year, partially because the larcenous CEO is so overpaid.

Maybe they will pull a rabbit out of the hat and actually manage to find financing to construct their second mine at Ollachea, but it is hard to see how.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34089655

Rio2 aka RIO has had to find a way to raise money to cover the delays in permitting imposed by Chile's new government on the Fenix gold mine it is building in northern Chile. Rio has sold several 'non-core' royalties to OR for $5M, which given the cozy relationship RIO has with the funders for the construction, could be enough to get them through the delays.

https://ca.finance.yahoo.com/news/rio2-sells-non-core-royalty-120000990.html

Impact Silver aka IPT has always had a problem generating a profit from their silver mines and mills in Zacatecas, Mexico, and we see that again with the release of their Q3 results. In spite of a higher tonnage of higher grade ore mined and processed, they still manged to post a loss, which they blame on lower silver prices and higher costs. In response, they have deferred some exploration, instituted a hiring freeze and have begun making layoffs from their work force. Their balance sheet remains healthy, with $16.5M in cash and no debt, so they should do well if silver prices go on a run next year.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34091947

Teuton Resources aka TUO and its JV partners released the final set of assays from this year's drill programme on the Goldstorm Au/Cu/Ag deposit on their Treaty Creek property in BC's Golden Triangle. And they closed with a bang -- all five holes, drilled outside the existing Resource Envelope, delivered long intervals of what looks like will be economic mineralization. The best hole features 1.71 g/t AuEq Over 180.0m within 489.0m of 1.12 g/t AuEq, and ended in strong mineralization. All five holes featured higher Au, Cu, and in several cases much higher Au values than the existing resource, which bodes well for the new Resource Report currently being prepared for delivery next year.

Judging by the share price, you would never know that the drill programmes carried out by TUO this year were very successful. One hope that reverses when the price of gold takes off next year.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34092104