RCKS Talk

Saturday, December 30, 2017 Derek Macpherson

MQR Updates Beaufor Technical Report; Highlights Short but Profitable Mine-Life

Download Report  

Monarques Gold Corp. (TSXV:MQR) released an updated technical report for its Beaufor Mine, noting total gold production of 30,018 oz at 6.83 g/t Au over a 17-month mine life, in addition to 97.8k oz at 7.75 g/t Au in resources (M&I+I). Total operating costs, total cost per ounce and average operating costs are C$41.50 million, C$1,433/oz and C$1,383/oz, respectively, with an after-tax NPV (5%) of C$4.41 million and net cash flow of C$4.86 million. Results confirm the short-term modest profitability of the asset, along with the potential to materially extend the mine-life by upgrading existing resources. This also highlights the importance of recent acquisitions, that are planned future mill feed for the Camflo and Beacon mills. At C$15/oz, Monarques currently trades at a significant discount to peers (C$35/oz). In our view, this valuation does not properly reflect the company’s recent acquisition of Richmont Mines’ assets nor does it account for the recent acquisition of Agnico Eagle’s assets. read more


Wednesday, December 27, 2017 Derek Macpherson

NEE Provides Update – First Pour Expected in Q1/18

Download Report  

Northern Vertex Mining Corp. (TSXV: NEE) has reported progress on construction and commissioning activities at its Moss Mine project in Arizona. Highlights from the company include the completion of the mechanical portion of the crushing plant, the advancement of the onsite power station, the preparation of the leach pad and preparation of an operational workforce for the mine site. The company has also indicated that the first gold pour at the Moss Mine is now expected to take place in Q1 2018 (was Q4 2017). We consider the delay minor, as the project continues to progress and the company has secured additional funding to bridge them to positive cash flow in 2018. Northern Vertex trades at C$123/oz a premium to peers (C$42/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and in the late stages of 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


Wednesday, December 27, 2017 Derek Macpherson

RCKS Charts: FM, TECK & PG

Download Report

In this edition of RCKS Charts, Keith has evaluated First Quantum Minerals Ltd. (TSX:FM), Teck Resources Ltd. (TSX: TECK.A and TECK.B) and Premier Gold Mines Ltd. (TSX:PG). read more


Wednesday, December 27, 2017 Derek Macpherson

MQR Tuck’s in Two More Gold Projects

Download Report

Monarques Gold Corp. (TSXV:MQR) announced that it has entered into an agreement with Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) to acquire the McKenzie Break and Swanson properties (Figure 1). Terms of the agreement include a payment to Agnico Eagle of C$4.6M, which includes C$1.6M in cash and C$3M in common shares of Monarques over a four-year period. The acquisition of these properties adds additional potential ore sources to the company’s two mills (Camflo and Beacon). The McKenzie Break deposit has a historical estimate of 813,871 tonnes grading 6.63 g/t Au (173,500 oz Au) and the Swanson deposit contains a historical estimate of 814,600 tonnes grading 3.71 g/t Au (91,200 oz Au). The company intends to upgrade the historical estimates to NI 43-101 compliant resources and to explore the extensions of the mineralization. At C$16/oz, Monarques currently trades at a significant discount to peers (C$35/oz). In our view, this valuation does not properly reflect the company’s recent acquisition of Richmont Mines’ assets nor does it account for the acquisition of Agnico Eagle’s assets.  read more


Friday, December 22, 2017 Derek Macpherson

NEE Adds More Debt to Provide Flexibility During Ramp Up

Download Report

Northern Vertex Mining Corp (TSXV:NEE) has announced that it has secured additional debt from key partners that should carry the company until it begins generating cash flow from its near-producing Moss Mine in western Arizona. The company has drawn the final $5M tranche from Sprott Resource Lending and signed a flexible $6M working capital facility with Greenstone Resources that is available in up to four tranches. Northern Vertex trades at C$120/oz a premium to peers (C$41/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


Friday, December 22, 2017 Derek Macpherson

Novo Announces First Trench Results from Purdy’s Reward

Download Report

Novo Resources Corp. (TSXV:NVO) has provided an update on its exploration activities at Purdy’s Reward in Australia. In our view the results, remind us of the high-grade, large scale potential of this deposit, while at the same time remind us of the ongoing challenge that Novo has to properly identify grade in this unique deposit. With each new data set, we re-evaluate our original view that this area may host a +10 million ounce deposit. It remains very early days and while, how we get to +10 million ounces has changed, we still believe this possible at Purdy’s Reward and Comet Well. As well, we believe the recent pullback in the share price, may be an opportunity for investors, as the price in exploration success appears to be achievable based on our estimates.  read more


Tuesday, December 19, 2017 Derek Macpherson

Pricing Update plus M&A Suggests the Lithium Market Continues to be Tight

Download Report

Yesterday, we received two additional data points, that continue to support our positive view on the Lithium market. First, Orocobre (TSX:ORL) announced 1st half 2018 Lithium Carbonate pricing, is trending towards being 25% higher than the second half of 2017. This is not surprising, considering the expectation that the Lithium market is in deficit next year. Secondly, Lithium X Energy Corp (TSXV:LIX) announced it has entered into a definitive agreement to be acquired by Nextview New Energy Lion Hong Kong Ltd for C$265 million which again, highlights the scarcity of quality Lithium projects and/or off-take opportunities and the need for metals companies (i.e. Tibet Summit Resources Co a partner of Nextview) to acquire assets at an early stage. In our view, both of these events highlight the expected tight market conditions over both the near and long-term.  read more


Tuesday, December 19, 2017 Derek Macpherson

Sierra Drill Results Suggest New Exploration Opportunity

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) reported drill results from the Cuye area at its Yauricocha mine, returning high-grade copper and polymetallic mineralization over wide intervals. Although early, a new exploration opportunity potentially exists as low-grade disseminated copper mineralization was found in the intrusive rock formation, whereas it is usually found in the contact of the intrusive and the volcanics. This has not previously been tested or known at Yauricocha. Brownfield exploration is ongoing, and is focused on near-mine discoveries and expansion in 2018. Yauricocha remains a key aspect of the company’s operations, therefore ongoing exploration success is important in enhancing the company’s value. 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.

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 2018 Red Cloud Klondike Strike Inc. All rights reserved.