RCKS talk

Thursday, May 04, 2017 Derek Macpherson

RPX Intersects High-Grades; Demonstrates Strike Extent

Download Report  

Red Pine Exploration Inc. (TSXV:RPX) reported final high-grade drill results from a 6,000m winter drill program (holes DG-17-53 to DG-17-66) extending the Darwin-Grace Mine area, located 3km south of the Surluga deposit, outside historical limits. Hole DG-17-55 and DG-17-56 tested the northern extensions of the former Darwin-Grace Mine successfully intersecting high grades of 23.17 g/t Au over 4.45m and 23.10 g/t Au over 8.14m, respectively. Results confirm our view that the strike length is significantly longer than the current deposit (~1.5km), noting the Wawa Gold Corridor appears to have a strike length of 4.75km (Figure 1). Red Pine currently trades at a steep discount to peers (C$29/oz vs. peers at C$64/oz), which does not appear to reflect the current deposit or its significant growth potential. We believe that as Red Pine continues to demonstrate the potential of the Wawa gold project through its ongoing exploration program, it should close the valuation gap to peers.  read more


Thursday, May 04, 2017 Derek Macpherson

MTA Increases Interest in Hoyle Pond Royalty

Download Report  

Metalla Royalty & Streaming Ltd. (CSE:MTA) has signed an agreement to increase its interest in the Hoyle Pond Extension royalty to 2% (was 1%), we view the increase positively. Metalla signed a definitive agreement for C$1.5 million with Matamec Exploration Inc. to acquire the company’s royalties on the Hoyle-Matheson and Montclerg properties in Timmins, Ontario. The acquisition price includes a C$500,000 cash payment including C$1 million worth of shares (2 million shares for C$0.50/share). In addition, the company completed the acquisition of High Stream Corp, under the agreement announced in July 2016, High Stream received 10 million shares of Metalla. Based on the pending acquisition of the cash flowing Silverback stream, Metalla trades at ~56-59x on EV/CF basis vs. peers at 31.0x; however, this does not reflect the value of the Hoyle Pond royalty or the company’s ability to rapidly grow its portfolio with similar small streams. read more


Wednesday, May 03, 2017 Derek Macpherson

RPX Intersects More VG; Surluga Expands to the South

Download Report  

Red Pine Exploration Inc. (TSXV:RPX) completed holes SD-17-73 to SD-17-79, from the new 10,000m drill program, all of which intersected visible gold suggesting positive drill results are on the horizon. The seven holes completed were designed to follow up on promising results which had intersected the Minto Mine structure near the former Parkhill Mine area (Figure 1). These holes continue to support our view that substantial resource expansion is possible, and we expect the pending drill results are likely to be positive based on the visible gold identified in these holes. Red Pine currently trades at a steep discount to peers (C$29/oz vs. peers at C$65/oz), which does not appear to reflect the current deposit or its significant growth potential. We believe that as Red Pine continues to demonstrate the potential of the Wawa gold project through its ongoing exploration program, it should close the valuation gap to peers. read more


Wednesday, May 03, 2017 Derek Macpherson

Austral's Ops Likely to Improve for Balance of 2017

Download Report  

Austral Gold Ltd. (TSXV:AGLD, ASX:AGD) reported weak Q1 2017 production results from its operations in Chile and Argentina. From Q4 2016 to Q1 2017, AuEq production decreased and cash costs (AuEq/oz) increased at both Casposo and Guanaco (Figure 1). Despite a weak Q1, the company still expects to meet its guidance (115k oz AuEq), suggesting a strong performance for the rest of the year. The planned combined PFS for Amancaya and Guanaco is scheduled to be completed in Q2 2017. With improved performance expected over the course of the year along with the new agitation leach plant coming online and Amancaya advancing towards production, Austral is poised to re-rate towards similar scale peers. read more


Tuesday, May 02, 2017 Derek Macpherson

SMT Continues to Execute at Yauricocha

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported strong Q1 2017 financial results from its Yauricocha mine in Peru (Sociedad Minera Corona S.A. - 81.8% owned subsidiary). The results reflect operational improvements carried out at Yauricocha over the course of the year as revenue increased by ~21% QoQ (~208% YoY). On a YoY basis, all costs were substantially improved. QoQ, AISC were reduced by ~34.0% on a copper equivalent basis. We view the results positively as Sierra continues to experience operational improvements. In addition, we believe further exploration success at Yauricocha is key to enhancing the company’s value. read more


Tuesday, May 02, 2017 Derek Macpherson

NEE Signs Equipment Financing Facility for US$9 million

Download Report

Northern Vertex Mining Corp (TSXV:NEE) has executed a commitment letter and term sheet with Caterpillar Financial Services Corporation to secure an equipment financing facility between 70-80% of the cost of the equipment for a maximum of US$9 million. Under the terms and conditions, the company also has the option to purchase the equipment at the end of the four-year lease period. Northern Vertex has actively raised capital to fund the initial capital costs of US$33.0 million required to develop the Moss gold-silver project. To date, the company has completed a C$7.35 million convertible debenture financing, received C$5 million in proceeds from a warrant incentive program and signed a credit agreement with Sprott Lending for US$20 million. Including the equipment financing, the company appears to be positioned to achieve its goal to produce gold by Q4 2017. Northern Vertex trades at C$110/oz a premium to peers (C$54/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Monday, May 01, 2017 Derek Macpherson

High-Grade HS Zone Benefits Marlin's Q4 Results

Download Report

Marlin Gold Mining Ltd. (TSXV:MLN) released Q4 2016 and full year financial results for 2016 along with full-year 2017 guidance. As expected, mining of the high-grade HS zone in Q4 2016 resulted in the company’s first profitable quarter (EPS of C$0.02 and EBITDA of C$11.6 million). As previously reported the cash generated in Q4 has allowed the company to increase exploration at La Trinidad and Commonwealth, consolidate its land holdings at Commonwealth, aid to reduce the Wexford Capital debt and advance the spin-off of the company’s wholly owned royalty subsidiary Sailfish Royalty Corp. The company also provided 2017 guidance to produce 50-55k oz Au, which appears achievable considering it shipped 18.9k oz Au in Q1. Based on this, we expect strong financial results in Q1, followed by a weaker quarter in Q2; however, the company expects to reach the southern portion of the high-grade zone in June, which should see production and financial results improve in Q3. As well, Marlin has guided that it expects to spin-off Sailfish later this year, once San Albino has received permits or another cash flowing royalty is acquired. We hope to get additional details on both 2017 guidance, the ongoing exploration programs plus the planned spin-out of Sailfish on tomorrow’s 10 am ET conference call (Dial-in: 1-844-348-1683, access code: 16115066). read more


Monday, May 01, 2017 Derek Macpherson

SMT Discovers New Zone & Expands Cuye-Mascota

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT) announced results from an ongoing brownfield drill program being carried out at the company’s flagship Yauricocha mine in Peru. Drilling between the Esperanza zone and the Cachi-Cachi mine, resulted in the discovery of a new mineralized structure, the Esperanza North zone, which the company will continue to drill at depth (Figure 1). In addition, results from 3 holes drilled at the Cuye-Mascota zone discovered in November 2016, extended the zone which continues to remain open at depth and longitudinally to the northwest and southeast. Drilling confirmed the current orebody continues from the 1070 level at depth to below the 1270 level, noting previous results from 2011 and 2012 were unsuccessful between the 870m and 1020m level horizon (Figure 2). The results from this program will be included in a resource and reserve estimate update expected in Q4 2017. Over the course of the year, the company will continue to focus on expansion drilling and exploring the newly discovered zones to further define areas of opportunity near existing operations. We believe continued exploration success along with ongoing operational improvements at Sierra’s operating mines, are key to enhancing the company’s value and liquidity 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.