RCKS Talk

05-Jul-2018

Lupaka Gold Corp.

Lupaka Continues to Demonstrate Grade Continuity

Impact: Mildly Positive

Lupaka Gold has released results from channel sampling within the vertical relief raise development between the 3400 Level and 3430 sublevel at its 100% owned Invicta Gold Development Project, located in Peru.
  • Assays from the channel sample, which was conducted vertically across the strike of the Atenea vein, returned an average of 23.45g/t AuEq over a vertical height of ~30m
  • The results, when combined with the previous horizontal channel sampling from the 3430 sublevel, continue to support the continuity and high-grade nature of the Atenea vein in addition to providing further evidence that grade reconciliation has the potential to be positive as the company ramps up production
  • With the relief raise development now completed, one less step sits in the way of production, which the company indicated is still on track to commence in Q3 of this year
Based on the company’s recently released PEA, our valuation of Lupaka suggests a NAVPS10% of C$0.55 assuming a 350tpd operation. Based on our site visit and the company’s continued exploration success, we see potential for a 500tpd operation at Invicta. We believe that first production, expected in Q3 2018 is going to be the next key re-rating catalyst for Lupaka.

05-Jul-2018

Anaconda Mining Inc.

Anaconda Extends Mineralization at Goldboro

Impact: Positive

Anaconda Mining has released new assay results from 1,725m across 5 holes drilled at the Goldboro Gold Project in Nova Scotia, as a part of the 11,588m drilled since October 2017. Holes targeted 8 mineralized zones of the East Goldbrook (EG) system and 8 zones of the Boston Richardson (BR) system along section 9050E (Figure 2).
  • Current drilling intersected all 8 zones of the BR system, extending it vertically by 250m (Figure 2) and was extended, along with the EG system, westward by 50m up plunge, including: 12.39g/t Au over 3.2m and 24.49g/t Au over 1.0m (Figure 1)
  • Drilling has also demonstrated the continuity of wide mineralized zones along the dominant plunge of the BR system outlining two zones (7.5m and 9.9m wide) within the same corridor as previous sections with at least 100m of mineralization (Figure 3)
  • Results continue to demonstrate the continuity of the deposit and suggest resource growth is likely with the next update – 10% increase in both grade and tonnes at Goldboro would increase our overall NAVPS estimate by 9%
Anaconda has recently announced that it will increase the takeover bid for Maritime Resources from an exchange ratio of 0.39 Anaconda shares to 0.50 Anaconda shares per Maritime share, a 28% increase. Assuming the transaction is completed, Anaconda is trading at 0.34x NAV or if it is not completed Anaconda is trading at 0.36x NAV (peers 0.69x). We believe that a resolution of the hostile bid (either positively or negatively) is likely to lift current overhang on the share price.

05-Jul-2018

Metanor Resources Inc.

Metanor Intersects High-Grades in Moroy Zone

Impact: Mildly Positive

Metanor Resources has announced new drill results from the ongoing underground drill program at the Moroy zone of the Bachelor Mine, located in Quebec.
  • Results demonstrate high-grade continuity to the east, including: 8.4g/t Au over 5.5m, 11.0g/t over 4.0m, and 10.7g/t over 4.4m
  • The Moroy zone will continue to be explored with one underground diamond drill rig completing 15m (50ft) step outs; development into Moroy will provide additional ore for daily gold production
Bonterra Resources has recently announced that its has entered into a binding letter of intent to acquire Metanor for ~C$0.65/share in an all share transaction (1.6039 Bonterra shares for each Metanor share), representing a 12% premium to last close of C$0.58/share, which reflects further upside to the current share price should the transaction be completed.

04-Jul-2018

Anaconda Mining Inc.

Anaconda Bumps Up Maritime Bid

Impact: Mildly Positive

Anaconda Mining has announced that it will increase the takeover bid for Maritime Resources from an exchange ratio of 0.39 Anaconda shares to 0.50 Anaconda shares per Maritime share, a 28% increase.
  • The offer represents $0.21 per Maritime share, which equates to a premium of ~110% based on the prior day close’s share price. This sweetened offer is likely to entice additional shareholders to tender their shares
  • The increased offer is conditional on Maritime’s recently approved private placement being withdrawn. This could eliminate potential investors in that financing who were looking to capture the value gap between the offering price and Anaconda’s original bid
  • In our opinion, the increased bid has approximately the same dilutive impact as the proposed private placement; however, in this scenario the added premium would only benefit Maritime’s current shareholders
We view this new development as positive for both Anaconda and Maritime shareholders with our revised estimate of the probability of the deal being completed to 60-70% (was 40-50%). If we were to factor the revised offer into our estimates, our NAVPS estimate would decrease from the current C$1.11 to C$1.05. We are leaving our estimates unchanged at this time but are likely to update when once the increased offer is formalized. Regardless of the completion of the takeover, the company remains attractively valued. Assuming the transaction is completed, Anaconda is trading at 0.34x NAV or if it is not completed Anaconda is trading at 0.36x NAV (peers 0.69x). We believe that a resolution of the hostile bid (either positively or negatively) is likely to lift current overhang on the share price.

03-Jul-2018

De Grey Mining Ltd.

Continued Hard Rock Success; Toweranna Results Impress

Impact: Positive

De Grey Mining has released drill results from the Toweranna Gold Deposit in the Pilbara, confirming further infill mineralization within existing resource limits at the Western Zone and intersecting new shallow high-grade gold lodes at the Southern, Northern and Eastern Zones.

  • Mineralization remains open along strike and at depth, drill intersections included 4.82g/t Au over 22m and 17.29g/t over 7m; diamond drilling assays for 9 holes are pending, though visible gold was noted in quartz veining at a 173m depth
  • Toweranna only represents a small area of the current overall resource (1.21Moz at 1.6 g/t) and is expected to be a key area to expand the existing resource
  • These results continue to highlight the prospectivity of De Grey’s Pilbara project and ongoing drill results from the companies, active program are expected to demonstrate the potential of its traditional hard rock assets
Our preliminary valuation of De Grey’s hard rock assets of A$0.15-0.23/share does not account for the likely resource growth demonstrated by these results. We continue to believe that De Grey’s current valuation provides investors a low-cost option on the conglomerates which is underpinned by traditional hard rock assets with resource growth potential. Next catalyst includes a PFS for the company’s Pilbara Gold Project (Q4 2018), preceded by ongoing exploration results.

Top Stories

Search All Posts

Categories

  1. Company Comment
    • (1)
    • (2)
    • (3)
    • (4)
    • (5)
    • (6)
    • (7)
    • (8)
    • (9)
    • (10)
    • (11)
    • (12)
    • (13)
    • (14)
    • (15)
    • (16)
    • (17)
    • (18)
    • (19)
    • (20)
    • (21)
    • (22)
    • (23)
    • (24)
    • (25)
    • (26)
    • (27)
    • (28)
    • (29)
    • (30)
    • (31)
    • (32)
    • (33)
    • (34)
    • (35)
    • (36)
    • (37)
    • (38)
    • (39)
    • (40)
    • (41)
    • (42)
    • (43)
    • (44)
    • (45)
    • (46)
    • (47)
    • (48)
    • (49)
    • (50)
    • (51)
    • (52)
    • (53)
    • (54)
    • (55)
    • (56)
    • (57)
    • (58)

Blog Archive

  1. June 2018
    • (1)
    • (2)
    • (3)
    • (4)
    • (5)
    • (6)
    • (7)
    • (8)
    • (9)
    • (10)
    • (11)
    • (12)
    • (13)
    • (14)
    • (15)
    • (16)
    • (17)
    • (18)
    • (19)
    • (20)
    • (21)
    • (22)
    • (23)
    • (24)
    • (25)
    • (26)
    • (27)
    • (28)
    • (29)
    • (30)
    • (31)
    • (32)
    • (33)
    • (34)
    • (35)
    • (36)
    • (37)
    • (38)
    • (39)
    • (40)
    • (41)
    • (42)
    • (43)
    • (44)
    • (45)
    • (46)
    • (47)
    • (48)
  2. May 2018
    • (1)
    • (2)
    • (3)
    • (4)
    • (5)
    • (6)
    • (7)
    • (8)
    • (9)
    • (10)
    • (11)
    • (12)
    • (13)
    • (14)
    • (15)
    • (16)
    • (17)
    • (18)
    • (19)
    • (20)
    • (21)
    • (22)
    • (23)
    • (24)
    • (25)
    • (26)
    • (27)
    • (28)
    • (29)
    • (30)
    • (31)
    • (32)
    • (33)
    • (34)
    • (35)
    • (36)
    • (37)
    • (38)
    • (39)
    • (40)
    • (41)
    • (42)
    • (43)
    • (44)
    • (45)
    • (46)
    • (47)
    • (48)
    • (49)
    • (50)
  3. April 2018
    • (1)
    • (2)
    • (3)
    • (4)
    • (5)
    • (6)
    • (7)
    • (8)
    • (9)
    • (10)
    • (11)
    • (12)
    • (13)
    • (14)
    • (15)
    • (16)
    • (17)
    • (18)
    • (19)
    • (20)
    • (21)
    • (22)
    • (23)
    • (24)
    • (25)
    • (26)
    • (27)
    • (28)
    • (29)
    • (30)
    • (31)
    • (32)
    • (33)
    • (34)
    • (35)
    • (36)
    • (37)
    • (38)
    • (39)
    • (40)
    • (41)
  4. March 2018
    • (1)
    • (2)
    • (3)
    • (4)
    • (5)
    • (6)
    • (7)
    • (8)
    • (9)
    • (10)
    • (11)
    • (12)
  5. February 2018
    • (1)
  6. January 2018
    • (1)

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2018 Red Cloud Klondike Strike Inc. All rights reserved.