Thursday, February 02, 2017 Derek Macpherson

MLN Reports Best Interval to Date at Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) announced results from the tenth hole of the ongoing infill and step-out drill program at its wholly owned Commonwealth gold and silver project in Arizona. Hole 17CDDH10 returned the highest metal factor (grade x width) intercept reported on the property since 1972, intersecting 2.12 g/t over 55m, including 26.7m that returned 3.75 g/t AuEq. The hole intersected oxide mineralization only, hitting the Main Vein at a depth of 60m and continuing below the main structure to hit a secondary mineralized structure (Figure 1). The company plans to follow-up on today’s results during the ongoing drill campaign. In our view, today’s results further demonstrate the expansion potential of Commonwealth’s existing 1.2M oz AuEq (44Mt at 0.84 g/t AuEq) resource and we expect pending results to provide positive momentum for the stock. The company’s strong cash flow generation from La Trinidad, which we estimate to be US$17-19 million on average on a quarterly basis going forward, is funding the drill program at Commonwealth in addition to exploration efforts at La Trinidad (near-mine and greenfield) and the company’s financial commitment for the San Albino stream. read more

Thursday, February 02, 2017 Derek Macpherson

MMX adds Cash-Flow Generating Royalties

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Yesterday, Maverix Metals Inc. (TSXV:MMX) announced it has entered into an agreement to acquire a 3.25% NSR on Rye Patch Gold Corp’s (TSXV:RPM) Florida Canyon gold mine and an additional 1.5% gold NSR and 0.5% nickel NSR on RNC Mineral’s (TSXV:RNX) Beta Hunt mine, increasing its portfolio to 27 streams and royalties. We expect the transaction to add ~20-25% to Maverix’s current attributable production profile of 12k AuEq oz per year. Consideration for the proposed transaction is US$5.0 million cash and ~8.5 million Maverix shares, implying a total value of C$19.6 million based on Maverix’ close price on January 31, 2017 of C$1.54/sh. We view the transaction positively, as it should meaningfully add to Maverix’s near-term cash flow. We note that Maverix trades at a slight premium to peers on a NAVPS basis and significant premium on 2017e EV/CF; we believe this to be reflective of this new entrant’s growth potential both from its development stage royalties and ability to do accretive acquisitions like the one announced yesterday. read more

Thursday, February 02, 2017 Derek Macpherson

ICG Crosscuts C2 75m West of Known Limit

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Yesterday, Integra Gold Corp. (TSXV:ICG) provided an update on its ongoing drill program and bulk sample development. As part of the ongoing development for the planned bulk sample at the Triangle zone, the company cross cut with channel samples from the exposed faces, returning 4.34 g/t Au over 6.00m and 6.30 g/t Au over 2.30m. This, along with infill drilling at C2, C4 and C5, continues to suggest that these structures may be continuous and amenable to higher productivity mining methods. As well, the results suggest that the resource may grow beyond the current 1.9 million oz Au (6.8M tonnes at 8.83 g/t Au - all categories at 5 g/t cut-off). While Integra continues to trade at a substantial premium to peers (C$125/oz versus peers at C$55/oz), we believe this is warranted given the project’s impressive pedigree and the likelihood of a takeout should the company demonstrate continuity with the bulk sample planned for later this year.  read more

Wednesday, February 01, 2017 Derek Macpherson

UGD Appears to Expand Oxide Portion of Nieta

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Unigold Inc. (TSXV:UGD) announced drill results from eight holes drilled at the Candelones Connector deposit at its Nieta project in the Dominican Republic. The goal of this drilling was to expand the footprint of the existing oxide resource with a view to define potential oxide starter pits. Results were highlighted by a 12m intercept that intersected oxide mineralization and returned 1.2 g/t Au over 8.0m within a wider 14.0m intercept that returned 0.7 g/t Au and 1.1 g/t Ag (DCZ 16-50). While follow-up drilling is needed, this appears to have expanded the footprint of the oxide resource area. In our view, 2017 exploration (both oxide and higher grade zones) along with clarity on potential development scenarios should allow Unigold to close the valuation gap to peers.  read more


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