Value Microcaps Junior Miners

[Lone Clone]

TUO, BTO, SOLG

Before going on to discuss the latest PR from Teuton Resources aka TUO, it is worth considering its history with the Treaty Creek property in BC Golden Triangle. TUO originally staked the property in 1985. After a series of transaction, both TUO and AMK ended up with carried 20% interests in the property, with TUD owning the rest and assuming the position of operator. I included this brief review to show how long the mine finding and building process can take. It is not a field for the impatient investor!

(Note also that TUO holds NSRs over most if not all of the deposits that look like they might be economic.)

Now on to TUO's latest PR, which concerns the release of an updated Resource Report for the Treaty Creek property. After last year's successful drilling campaign, it is not surprise that the already enormous project has grown substantially,

First off, the Indicated Mineral Resource increased by 19% AuEq, consisting of a 16% increase in Au, a 14% increase in Ag, and a 32% increase in Cu. The Indicated Resource is now 27.87M oz AuEq within 730.20Mt of ore at a grade of 1.19 g/t AuEq, comprised of 21.66M oz Au @ 0.92 g/t, 128.73M oz Ag at 5.48 g/t, and 2.87B lbs of Cu at 0.18%. Meanwhile, the Inferred Resource is now is now 6.03M oz AuEq within 149.61Mt @ 1.25 g/t AuEq, comprised of 4.88M oz Au @ 1.01 g/t, 28.97M oz Ag @ 6.02 g/t, and 503.23M lbs of Cu at 0.15%.

If you are interested in Treaty Creek, the NR includes a detailed breakdown of which resources are located in which domain, and you should also check out the new diagram which more clearly lays out the various deposits and their interrelationship.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34577760

FWIW, in response to last week's murder of contractor's working at B2Gold aka BTO's Fekola mine in Mali, TD issued a new analyst report calling the impact Negative but kept them at their highest rating Action List Buy, with a target of $7. Meanwhile, Scotia also issued a new analyst report, likewise calling the impact Negative but also maintaining BTO at Sector Outperform with a target of $6.50.

Given that Fekola accounts for almost half of BTO's NAV, it is this kind of security concern and country risk that keeps me from buying back into BTO in spite of what it otherwise a compelling valuation. Mind you, if the share price continues to drop I might not be able to resist the temptation. $2 would definitely be a compelling price for me to buy if it gets there.

As a reminder of how devastating country risk can be, I checked out Ecuadorian developer Solgold aka SOLG's share price for the first time in a while. I sold my shares a few years ago when things starting looking bad for mining in Ecuador, and even though SOLG has done a lot of work that should have increased the value of their flagship property Cascabel, including releasing an updated PFBS last week, the current share price is about 20% what I sold my shares for (at a loss).

Saville points out how ugly it has been for gold stocks of late. HUI is testing support set last October. and GDXJ has broken support and is not far above its own October low. He thinks it is certainly possible that HUI tests its 2022 low around 175 before a rebound begins.

And the IKN newsletter brings us a long analysis of how misleading last week's headlines about outgoing president of Mexico AMLO attempt to ban the construction of open pit mines on NEW conncessions (not existing ones) is certain to fail. Move along folks, nothing to see here (other than to cause the naive and uninformed to avoid investing in companies mining in Mexico).

LC