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Replies to post #196 on Kerr Mines Inc (KER)
08/24/17 11:31 AM
Proven Potential
Kerr Mines (OTC:KERMF / TSX:KER) already boasts a sizeable, high-grade gold resource.
Now the drills are turning in search of even more.
A piece of news just went out...and not one in a thousand investors will understand its implications:
Kerr Mines Initiates First Phase of the Surface
Drilling at Copperstone Mine
TORONTO, Aug. 15, 2017 /PRNewswire/ - Kerr Mines Inc. ("Kerr" or the "Company") (TSX: KER, OTC: KERMF, FRA: 7AZ1) is pleased to announce that it has initiated the first phase of the surface exploration drilling campaign for the 2017 Copperstone Mine exploration program and pre-feasibility study. Approximately 15,000 feet of drilling is allocated to the first phase with the goals of further defining the parallel Footwall Zone and increasing the existing resource in the Copperstone Zone.
The parallel Footwall Zone is located approximately 500 feet to the Southwest on the footwall side of the Copperstone Zone which was previously mined by open pit and underground methods. Previous successful drilling has indicated that further drilling is warranted to advance the definition of the Footwall Zone.
The objective is to continue to build from prior successful drilling results in the Footwall Zone which has indicated similar inclination attitude, rock type, alteration, width and grade as is seen the Copperstone Zone. It is also designed to strengthen the Copperstone Zone along strike and increase its down dip extension.
"We are very pleased to have completed the planning of the program and are excited to begin executing it. The 2017 Copperstone exploration program is the cornerstone for the forthcoming pre-feasibility study and is a key component to the strategy of advancing the Copperstone Mine project towards a production decision, " said Martin Kostuik, President Kerr Mines.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Michael R. Smith, Registered Geologist., a "Qualified Person" as defined by NI 43-101 for this project.
Sections, plans and diagrams related to this press release are available at the company's website, www.kerrmines.com.
So why was this news so important?
Because Kerr Mines (OTC:KERMF / TSX:KER) already boasts a sizeable, high-grade gold resource.
Because it’s already moving toward near-term production, with extensive infrastructure sitting in place.
And because the upcoming drill program could soon add to its impressive, high-grade gold resources.
If all that sounds exciting, you’re not alone: Noted precious metals guru Eric Sprott looked at what this company has to offer...and he bought a 9.4% position.
If there's one thing you can say about Sprott, it's this: He's a savvy gold stock investor.
So what did he see in Kerr?
A Bonanza Opportunity Arises
In Arizona Gold Country
Simply put, Kerr Mines is advancing the fully-permitted, past-producing Copperstone Mine project.
A high-grade gold project located along the Walker Lane mineral belt in mining-friendly Arizona, the Copperstone project demonstrates significant upside exploration potential within a 12,000-acre land package that historically produced 500,000 ounces of gold.
The focus for the Company is to define and expand the current resources, and to strengthen the mine's economics en route to a production decision.
The Copperstone property is fully permitted with extensive infrastructure in place, meaning Kerr Mines has a 450 ton-per-day mill already onsite and the tunnels going down to the high-grade gold ore are already there.
Electricity and water are there too. In other words, the infrastructure which can cost many millions of dollars to setup already exists at the site, so the cost to get Kerr Mines to production is relatively low — much, much lower than a greenfield project.
So how much gold is there you ask? There are 942,000 tonnes of Measured and Indicated historic gold resources with a truly impressive grade of 10.3 grams of gold per tonne.
On the Inferred side, there are another 335,000 tonnes of historic gold resource with a grade of 12.2 grams per tonne. Importantly, that's in the soon-to-be further explored "South Zone," which has great potential in itself.
In the Proven and Probable category, Kerr has 910,000 tonnes with an average grade of 8.8 grams per tonne. With grades that high, you can see why billionaire Eric Sprott was attracted to this remarkable project.
Underappreciated Value
In Kerr Mines
There are many factors that determine the value of a mine. The grade of gold is obviously high on the list in evaluating an investment into a gold stock like Kerr Mines. But with such high grades of gold, from Proven, Measured and Indicated to Inferred, the numbers are quite remarkable for Kerr.
But when you add in factors like a mill in place and tunnels already opened up to access the three previously untouched zones...plus the significant hit Kerr recently discovered in the South Zone...you see why the company expects to move into production next year. In fact, the feasibility study needed to go into production is expected in the fourth quarter of this year.
Based on the market cap and share price of other peer gold mining companies, you can see why many people consider Kerr Mines to be extremely undervalued at these levels.
Let's look closer at an apple-to-apple comparison between KERMF and another peer company...
Wesdome Gold Mines (WDOFF) is trading at around $1.69, with a market cap of some $230 million. The production estimates per their website are between 52,000-58,000 gold-equivalent ounces per year.
Kerr Mines has similar production projections at 40,000-50,000 gold-equivalent ounces annually...but is only trading at $0.18, with a market cap of just $26 million.
And that's not even taking into consideration Kerr Mines' other assets. Per their website, they have significant interests in three more large properties.
With considerable, high-grade resources already in the ground — plus the very real potential of significant new discoveries — Kerr Mines looks to be an extraordinary relative value.
Kerr Investment Highlights
• Past producer, fully permitted
• Advanced-stage development company
• Existing resource with significant exploration upside
• Safe, mine-friendly jurisdiction
• Strengthened board and management team
• Restructured debt into friendly hands
• Supportive shareholder group
• On track to complete Pre-Feasibility Study in Q4 2017
Existing Infrastructure:
• Underground mine development in place, access and utilities
• Processing facility and 450 tpd mill
• Tailings storage facility with capacity for planned re-start
• Power and water distribution systems
• Surface buildings including assay lab
• Roads and access to surface exploration sites
What To Do Now:
Considering the peer comparables with Kerr Mines — and the significant news coming up for the company — serious investors need to consider joining Eric Sprott as shareholders.
To learn more, you can click on the Investor Presentation below, where you’ll discover not only why this company appears undervalued with its current high-grade resources...but also why it offers the potential to expand its rich resources both underground and on surface.
But the drills are turning right now.
So act soon, before the company can discover more high-grade gold...before it can go into production...and before its share price can move out of reach.
09/13/17 7:10 AM
"...Kerr Mines Inc. (OTCMKTS:KERMF): A High-Potential Junior Miner in the Making
As we move past the Labor Day weekend, and into the teeth of the Fall trading season, we have a number of dynamics in play that point to some really terrific opportunities for keen investors. The landscape is currently defined by tremendous recent strength in emerging markets, a weak US Dollar, a very strong copper market, sluggish and rangebound oil prices, and a very strong and steady gold market.
We have also seen the recent emergence of all of the key ingredients we typically associate with a strong stock picker’s context for small and micro-cap stocks.
That’s part of why we are putting Kerr Mines Inc. (OTCMKTS: KERMF) on your radar. The other part is the remarkably interesting setup we see in this stock right now in particular, as we explain below.
Quick Facts:
KERMF is a developing strong potential producer in the gold mining space, where monetary and geopolitical factors drive the story.
KERMF has a deep-pocketed and committed core shareholder base, as well as strong liquid assets at hand with which to undertake remaining development of the Copperstone upgrade project.
KERMF has a well-established strong bullish trend in place since early 2016 and has seen a steady build-out in depth and liquidity of the secondary share market, with average trading volume expanding by over 3,600% in the past 18 months.
KERMF recently announced the initiation of underground drilling access in its high-potential Copperstone mine.
KERMF’s principal mining asset already has significant infrastructure and permitting in place, including access roads, assay lab, all plumbing and electricity, underground tunnel development, and a 450 TPD on site processing mill.
Gold Miners stand to benefit disproportionately from aggressive central banking and geopolitical turmoil, which represent two chronic features of market reality at present and likely for some time yet to come.
Understanding the Basic Story
First off, by way of introduction, Kerr Mines is a company operating as a junior gold miner in a very mining-friendly district, which may be the most important factor that any of us face when evaluating a new mining security. The red tape is not going to be a part of this equation and there is effectively zero risk of nationalization or corruption in terms of the relationship between legitimate investment and return so long as the company sees the positive end of the outcome distribution where key elements of chance are concerned.
The company’s shareholder base and capitalization table appears very committed and well-financed, which is important given the company’s core strategy of reviving and expanding the production of a previously productive mine.
We think of this approach as “highly cost-effective exploration”, provided you tap the right property...."
