RCKS talk

Wednesday, October 18, 2017 Derek Macpherson

RDS Extends Vintage Zone

Download Report

Radisson Mining Resources Inc. (TSXV:RDS) has announced that they have extended the Vintage Zone by an additional 125m along strike (Figure 1). The company intersected 2.9m of 9.7 g/t Au along strike towards the past-producing O’Brien Mine. We continue to view the discovery of this zone very positively, as it has the potential to materially expand the existing resource, while adding ounces per vertical meter which could expand a future production scenario. The extension of this zone to 325m of strike length, supports our view. The company is awaiting 20 drill holes currently being assayed for a total of approximately 10,500m, which we believe could continue to expand the Vintage zone. The discovery also suggests that the opportunity exists for the company to discover additional zones within the Cadillac and Pontiac sediments. At C$49/oz, Radisson trades in line with peers at C$49/oz; however, this does not properly reflect the recent discovery and expansion of the Vintage Zone, or the expected resource increase with the pending resource update (Q4 2017). We note the company continues to be actively exploring in the sediments around the Vintage zone (results pending) and near the current resource. read more


Wednesday, October 18, 2017 Derek Macpherson

Early NVO Drill Results Suggest Consistent Conglomerate Thickness

Download Report

Novo Resources Corp. (TSXV:NVO) has completed drilling of 12 diamond core holes in a 400x200m area (Figure 1), at its earn-in and JV, Purdy’s Reward in Western Australia. In the area drilled the conglomerate had a true width of between 4 and 15m, hole 17PDD007 (pictured in the press release) had an interval of 9.5m of conglomerate. This confirms our view and is important step in de-risking the project. The two main risks to our +10M ounce potential estimate, are conglomerate thickness and grade. This diamond drill program has started reducing the risk around thickness, the ongoing bulk samples and planned large diameter drill program should have the same impact on grade. At its current share price, the market is pricing in a sizeable resource at Novo’s Karratha project, which based on the data to date, we view as very possible. However, additional data, including additional diamond drilling to determine conglomerate thickness (ongoing) and assay results from the ongoing bulk samples and planned large diameter drilling (early 2018), is needed to fully understand this projects potential.  read more


Wednesday, October 18, 2017 Derek Macpherson

FCC Expands Drill Program, Targets Bellellen

Download Report

First Cobalt Corp. (TSXV:FCC) has announced an expansion of their 2017 drilling program by 2000m. A sampling program of surface muck pile material from the past-producing Bellellen mine revealed high grade cobalt assays that the company plans to follow up on through 20 shallow drillholes of 50m to 150m in length. The new targets are the suspected halo of cobalt mineralization surrounding the previously mined high-grade veins (Frontier 2 and Bellellen – Figure 1). The extension of the company’s drilling is expected to commence in November and will bring the total drill program for 2017 from 7000 m to 9000 m. We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers, pro-forma. Besides pending drill results, important upcoming catalysts are likely to include planned metallurgical test results and the completion of the planned mergers. read more


Tuesday, October 17, 2017 Derek Macpherson

VIT Drills Catto Target

Download Report  

Victoria Gold Corp. (TSXV:VIT) reported analytical results from their ongoing 2017 exploration program. The targeted Catto Zone is located on the Dublin Gulch property between the flagship Eagle Gold Deposit and the Olive-Shamrock Deposit. Victoria Gold reported 11 exploration drill holes with exceptional results including 24.4 m of 1.64 g/t in drillhole DG17-867C at a depth of 33.5 m. The zone is historically known to host gold and has had limited exploration done to test for potential extensions southeast of the nearby Olive-Shamrock mineralization. Grab samples of 23.7 g/t Au and 65.4 g/t Ag have been found in the Catto Zone indicating the potential for near surface, high-grades. These drill results continue to indicate the exploration potential of the company’s land package and indicates the potential extension of the Olive-Shamrock deposit to the recently drilled Catto Zone. Ongoing exploration should be an important catalyst for the company, as they highlight the potential to expand the resource base on the Dublin Gulch property.  read more


Tuesday, October 17, 2017 Derek Macpherson

As Anticipated Excellon Reports Improved Q3 Results

Download Report  

Excellon Resources Inc. (TSX:EXN) has reported a significant increase in grades and tonnage at its Platosa mine in Mexico. By mining the high-grade 623 manto and ramping up production from 125 tpd in Q2 2017 to 200 tpd, the company was able to increase metal AgEq production by 96% compared to Q3 2016. The company also completed the first stage of a new tailings management facility at their milling facility in Miguel Auza, Zacatecas, which, once in commission, will allow for a 300 tpd production rate in five stages for approximately 19 years. The commissioning of this facility is in line with the company’s plan to continue expanding their resource base and the mine’s production rate. Management also pointed out that their AISC decreased during this past quarter to approximately $11-$13 per payable silver ounce. As previously suggested, the production and cost improvements are a direct result of the company’s recently completed mine optimization plan which has resulted in dry mining conditions in higher grade areas. In our view, these operational improvements are key to enhancing the company’s value and liquidity in the years to come. Excellon currently trades similarly to peers at 5.9x 2017e EV/CF versus peers at 5.8x 2017e EV/CF. Ongoing exploration should be an important catalyst for the company, as they highlight the potential to expand and grow operations in the near-term.  read more


Tuesday, October 17, 2017 Derek Macpherson

NEE Plans for Exploration with Strengthened Team

Download Report  

Northern Vertex Mining Corp (TSXV:NEE) announced it has an agreement with La Cuesta International Inc. to design a ~$10 million exploration program. Founders, Frank (Bud) Hillemeyer and Perry Dunning have been appointed as Exploration Advisors for the Oatman District, further strengthening the company’s team. The agreement provides the company access to the La Cuesta Proprietary Resource Data Bank of the Oatman District which hosts data going back to the 1970’s. Northern Vertex trades at C$138/oz a premium to peers (C$48/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, October 17, 2017 Derek Macpherson

ASND Sees Slight Impact from Delays; Ramp-Up Continues

Download Report  

Ascendant Resources Inc. (TSX:ASND) reported September and Q3 2017 production results, achieving milled production of 2,055 tpd (8% increase from August) and 1,934 tpd (17% increase over Q2 2017), respectively. September results were hindered by delayed equipment deliveries, which have now arrived. Although being slightly under Q3 guidance of 2,000 tpd, with the addition of new equipment and continued progress, the company is expecting to meet its Q4 2017 guidance of 2,200 tpd. As well, ore grades are expected to improve as new higher-grade zones become accessible. All of which should be reflected by improved production over the remainder of the year. We believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program and reports results from ongoing exploration. read more


Tuesday, October 17, 2017 Derek Macpherson

MTO Extends Shear Zones at Barry; Drilling Continues

Download Report

Metanor Resources Inc. (TSXV:MTO) reported results from ongoing surface drilling at its Barry project in Quebec. Since the last results, 24 holes have been drilled over 11,163m which have extended an existing shear zone 400m east. These results were highlighted by 4.0m at 8.4 g/t Au (MB-17-102) and 3.0m at 27.8 g/t Au (MB-17-111). The company notes it has differentiated many gold bearing shear zones east of the pits by reducing the spacing between drill holes. The continued confirmation of and identification of new shear zones supports our and the company’s view that a high-grade underground mining scenario is more likely than the open-pit only scenario outlined in the 2016 PEA. Exploration continues in the west with two drills, as well, a third drill is operating ~1km north-east of the mining leases following up on results from the 2017 geophysical aerial survey. We expect further results from the ongoing drill programs at both Barry and Bachelor to be important near-term catalysts for the company along with FQ4 production and financial results. read more


SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

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 2017 Red Cloud Klondike Strike Inc. All rights reserved.