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Tuesday, October 17, 2017 Derek Macpherson

Sierra Reports Higher Q3 2017 Results

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported modestly improved production results for Q3 2017 with an increase in CuEq production of 2% versus Q2 2017. However, metal production remains weaker than Q3 2016 due to lower production from its projects in Mexico. The QoQ decrease in metal production at Cusi is a result of shifting resources to develop recently discovered higher grade zones. An operational improvement program, which has already been successful at Yauricocha, is currently underway at Bolivar and Cusi and is expected to improve production, modernize operations and lower costs by early 2018. We note the company is likely to need a strong Q4, to achieve 2017 production guidance. In our view, the ongoing operational improvements in addition to ongoing exploration are key to enhancing the company’s value and liquidity. read more


Wednesday, October 11, 2017 Derek Macpherson

VIT Hits Gold Below the Eagle Pit

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Victoria Gold Corp. (TSXV:VIT) reported results from the first drill hole from the Eagle Deep target, adjacent and below the 2016 Eagle Gold Mine Updated FS pit boundary. Results returned 0.59 g/t Au over 423m including 0.91 g/t over 161.4m (hole DG17-910C). The company noted visible gold was encountered in core logging at 577m, 608m and 614m. An additional 3 holes were drilled with results pending. Results were successful in highlighting the growth potential in and around the Eagle Gold mine. Exploration at Dublin Gulch continues to successfully highlight the properties exploration upside. Victoria currently trades at a discount on a per ounce basis, or C$32/oz versus peers at C$57/oz, which we believe does not take into account the exploration potential of the Dublin Gulch property or that the project has just transitioned from shovel ready to under-construction.  read more


Wednesday, October 11, 2017 Derek Macpherson

NEE PEA Expands Moss Mine; Improves Project Economics

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Northern Vertex Mining Corp. (TSXV:NEE) reported results from a PEA completed for its Moss mine outlining an alternative mine plan which includes existing resources currently excluded from the mine plan. The previous feasibility study (FS) completed in 2015 is based on a mine plan constrained by the company’s patented claims, not by resources, whereas the PEA removes this restriction, materially improving project economics. The key step for the company to realize this value is acquiring permits for the surrounding land, a process which is likely to start once the powerline and road upgrade permitting process is complete. While this upside potential is important, we believe that ongoing construction updates and first production are likely to be the key near-term catalysts for the stock.  read more


Friday, October 06, 2017 Derek Macpherson

Site Visit: NEE Progressing Towards First Gold Pour

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Recently we had the opportunity to visit Northern Vertex Mining Corp.’s (TSXV:NEE) Moss mine which is progressing towards its first gold pour. The construction period can be a challenging time for any company and a risky period for investors, as the company works to take the major de-risking step of transitioning from a developer to a producer. Our site visit highlights that Northern Vertex is well down the path to production, with all major components showing meaningful progress. Based on what we saw on-site, we expect Northern Vertex to pour gold before year-end. We highlight that Northern Vertex is very well funded with both debt (Sprott loan, CAT finance facility) and recent equity investments resulting in low completion risk (i.e. running out of capital before construction). Northern Vertex’s current valuation does not appear to reflect likely reserve growth, currently excluded from the mine plan. We expect ongoing construction updates and first production to be key catalyst for the stock. read more


Thursday, October 05, 2017 Derek Macpherson

FCC Completes Mineralogical Study, Next Step Metallurgical Work

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First Cobalt Corp. (TSXV:FCC) reported initial mineralogical results from sample material collected from historical mines in the Cobalt Camp. The goal of the sampling program was to determine mineralogy that hosts the cobalt, both in disseminated and vein type settings. The results suggest that while a number of minerals are present, there is a concentration of a few key cobalt and silver bearing mineral types. This study should help with the planned metallurgical testing which is the next step as the company works to design the optimal process to maximize cobalt recoveries. 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 metallurgical test results, important upcoming catalysts are likely to include pending exploration results and the completion of the proposed mergers.  read more


Thursday, October 05, 2017 Derek Macpherson

RCKS Charts: EXN, FM, GRR, WDO, PGE, MMX & RPX

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In this edition of RCKS Charts, Keith has evaluated Excellon Resources Inc. (TSX:EXN), First Quantum Minerals Ltd. (TSX:FM), Golden Reign Resources Ltd. (TSXV:GRR), Wesdome Gold Mines Ltd. (TSX:WDO), Group Ten Metals Inc. (TSXV:PGE), Maverix Metals Inc. (TSXV:MMX) and Red Pine Exploration Inc. (TSXV:RPX).  read more


Wednesday, October 04, 2017 Derek Macpherson

Sierra Drill Tests Near-Mine Targets at Bolivar

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Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported initial drill results following up on targets identified from the Titan 24 geophysical survey completed at Bolivar in Mexico. 22 high priority targets were identified during the survey, of which 8 are currently being drill tested. Results from the four holes intercepted high-grade copper structures in three zones, returning 31 g/t Ag, 1.55% Cu, 1.95% Zn 0.38 g/t Au over 25m (averaged-DB17B602), 34 g/t Ag, 1.97% Cu, 0.91% Zn 0.34 g/t Au over 29m (averaged-DB17B613), 32 g/t Ag, 1.04% Cu, 0.20% Zn 0.10 g/t Au over 33m (DB17B583) and 37 g/t Ag, 2.05% Cu, 0.03% Zn 1.79 g/t Au over 13m (DB17B585). Results from additional drilling of these structures, which were previously thought not to be mineralized, will further help to understand its potential impact on Bolivar for Sierra. We continue to anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value. read more


Wednesday, October 04, 2017 Derek Macpherson

ARU Exploration Progressing at Lost Cities - Cutucu Project

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Aurania Resources Ltd. (TSXV:ARU) provided an update regarding exploration activities at its ~2,080 km2 Lost Cities – Cutucu project in Ecuador. The airborne geophysics program that began in August is expected to be completed in October, although slightly affected by weather, the company notes it remains on budget. In addition, initial stream samples have been submitted for analysis, with results expected later this month. There are seven geologists working on site, all of which are currently focused on the stream sediment sampling program. The company is gathering data to identify targets for more detailed exploration. Initial results from exploration will be an important catalyst in determining next steps for the company. read more


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