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Tuesday, January 24, 2017 Derek Macpherson

MQR's Gold Bug Results Shine

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Monarques Gold Corp. (TSXV:MQR) announced results from the first hole out of five that were drilled at the Gold Bug target as part of the recently completed 10km drill program on the company’s Croinor gold property. The results were highlighted by a wide, near-surface intercept of 25m that returned 8.41 g/t Au, including 36.10 g/t Au over 3m and 39.35 g/t Au over 2m. In our view, today’s results are an early indication of Gold Bug’s potential to add ounces and grow Croinor’s resource. At C$162/oz, Monarques currently trades at a premium to peers (C$69/oz). It is likely that further positive results from Gold Bug could provide additional momentum for the stock.  read more


Monday, January 23, 2017 Derek Macpherson

IDM's Resource Update Benefits Project

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IDM Mining Ltd. (TSXV:IDM) released an updated resource estimate for its flagship Red Mountain project which should be positive for project economics. The overall tonnage increased by 10%, gold content grew by 18% and silver content grew by 15% as grades increased (Figure 1). With the update, the overall resource grew by over 100k AuEq oz (all categories) and suggests that a longer mine life is likely with the feasibility study that is expected later in H1 2017. We view this resource update positively as the ounces added to the project’s economics. IDM trades at a discount to peers on a P/NAV basis (0.37x vs. peers at 0.54x) and on a per ounce basis (C$37/oz vs. peers at C$52/oz). We expect IDM’s share price performance in the near-term to be primarily driven by Red Mountain’s pending feasibility study (H1 2017).  read more


Saturday, January 21, 2017 Derek Macpherson

BAY Back in the Driver's Seat After Partner Walks

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Aston Bay (TSXV:BAY) announced BHP Billiton’s (ASX:BHP) decision to terminate the option agreement for the Storm Copper project, signed in May 2016. Although the market’s reaction was negative, down 34% from C$0.235 to C$0.155; in our view this could turn out to be a positive event for the company. While we do not know why BHP decided to terminate its option, the action reflects negatively on the Strom Copper project. It is also worth noting that this is the second large mining company to terminate an option agreement. Antofagasta terminated its option in January 2015, for budgetary reasons. However, Aston Bay once again has 100% interest and control over the project and is in a position to uncover Storm’s value. It is worth noting that the company has approximately two years of G&A expenses in the treasury, allowing it too carefully decide what the next steps should be. In our opinion, the project remains attractive and the market may have overreacted to BHP’s decision to terminate its option. read more


Saturday, January 21, 2017 Derek Macpherson

Otis' Drill Results Highlight Likely Resource Growth

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Otis Gold Corp (TSXV:OOO) announced results from the 12 final drill holes from its 2016, ~10km (40 holes) drill program the company completed at its wholly owned Kilgore gold project in Idaho. These results returned a weighted average grade of 1.16 g/t Au over 29.2m and were highlighted by 1.79 g/t Au over 128.0m, including 11.96 g/t Au over 7.6m (16 OKC-353). The width and grade of these results, along with the balance of the 2016 program suggests to us that the current 820k oz Au (47.5M tonnes @ 0.53 g/t Au) resource (indicated + inferred) is poised to grow with the planned H1 2017 update. This likely resource growth does not appear to be priced into Otis’ current valuation as it trades at C$33/oz versus peers at C$40/oz. In our opinion, the Kilgore project’s likely resource growth along with the project’s location (stable jurisdiction, proximity of infrastructure) should allow Otis to close the valuation gap to peers.  read more


Thursday, January 19, 2017 Derek Macpherson

IDM Advances Yukon Asset Sale

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IDM Mining Ltd (TSXV:IDM) announced it is advancing the sale of its Yukon assets by entering into a definite agreement with StrikePoint Gold Inc (TSXV:SKP). The proposed consideration consists of a combination of C$150k in cash and 10.5 million StrikePoint shares (valued at C$0.385 each), implying at total value of ~C$4.2 million. Based on the current share structure of StrikePoint, post transaction IDM would own ~40% of StrikePoint’s outstanding shares through which IDM is likely to have exposure to any of StrikePoint’s exploration success on the Yukon properties. In addition, IDM holds right of first refusal on the disposition of these assets for two years from closing and StrikePoint is also required to complete C$1.5 million in exploration on the properties by year-end 2017. We view the transaction positively, as it allows IDM to surface value from this non-core asset and represents a premium to the ~C$650k (7.2 million shares at C$0.09) paid to acquire these assets. However, we expect IDM’s near-term share price performance to be primarily driven by the pending resource update and feasibility study for its flagship Red Mountain project.  read more


Thursday, January 19, 2017 Derek Macpherson

Ascot Plans for Extensive 2017 Program at Premier

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Ascot Resources Ltd. (TSXV:AOT) has announced a 2017 exploration program at its Premier property located near Stewart, BC. The property hosts the past producing Premier Mine which historically produced 2.1 million oz Au and 44.9 million oz Ag. The company recently completed a successful 2016 exploration drill campaign, which delivered similar grades and mineralization as the Premier Pit area. Leveraging 2016’s success, Ascot has planned an extensive 2017 drill program consisting of both surface exploration and underground development aimed to further define existing targets (Figure 1) with the ultimate goal of defining an initial high-grade resource of 2-3 million oz Au. read more


Thursday, January 19, 2017 Derek Macpherson

MQR's Croinor Drill Results Highlight Potential

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Monarques Gold Corporation (TSXV:MQR) announced results from its now completed 10 km drill program at its Croinor Gold Project in Quebec. The campaign was focused on expanding the existing resource and testing satellite deposits, including Gold Bug. In our view, the results continue to demonstrate the reproducibility of historic results, highlighted by hole CR-16-512 that returned two intervals of 1m that intersected 43.3 g/t Au and 43.9 g/t Au in the vicinity of historic high-grade holes. While further assays are pending from Croinor and the Gold Bug target, multiple economic intercepts released to date (Figure 1) suggest resource growth is likely at Croinor. In our view the project’s potential exploration upside, coupled its stage of development (pre-feasibility), supports Monarques’ premium valuation (C$150/oz vs peers at C$67/oz). read more


Thursday, January 19, 2017 Derek Macpherson

VIT Announces 2017 Exploration Program

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Victoria Gold Corp. (TSXV:VIT) announced a 2017 exploration program on its Dublin Gulch Property and regional targets within the larger property area. The $6.2 million Phase 1 program will continue step-out and definition drilling of the mineralization structure from its 2016 program at the Olive-Shamrock zone, including exploration along strike. In addition the program will include exploration of six other targets along the Potato Hills Trend within 5 km of the Eagle Gold Mine footprint; East Potato Hills, Rex-Peso, Nugget, Lynx Dome and Anne Gulch as well as the Falcon target on the company’s VBW Claim Block east of Dublin Gulch. At 0.59x NAV, Victoria currently trades at a premium to peers at 0.52x NAV, while trading at a discount on a per ounces basis, or C$35/oz versus peers at C$54/oz. We believe Victoria’s premium valuation versus peers is warranted given the project’s scale, jurisdiction and permits. The company’s 2017 exploration program in conjunction with project financing has potential to be a positive catalyst for the stock.  read more


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