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Friday, September 15, 2017 Derek Macpherson

NEE Advances Moss; Site Visit Next Week

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Northern Vertex Mining Corp (TSXV:NEE) provided an update regarding construction activities underway at its Moss Mine in Arizona. Concrete work and liner installation is progressing, final grading is being completed for the initial leach pad cell for first ore stacking in early October, the pilot plant is decommissioned and the area is regraded for production, permitting process for the powerline continues as well, crushing plant deliveries are almost complete with assembly having already commenced. The company noted, it is working on a PEA to extend the current mine-life by accessing neighbouring un-patented lands, which would also include expansion of mine facilities. Northern Vertex trades at C$103/oz a premium to peers (C$44/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 account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. Derek Macpherson will be visiting the Moss Mine next week. read more


Thursday, September 14, 2017 Derek Macpherson

RCKS Charts: AMI

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In this edition of RCKS Charts, Keith has evaluated AuRico Metals Inc. (TSX:AMI). AMI has been in a positive long-term uptrend dating back to January 2016, as seen by its rising trendline and 200dma. The trendline has provided solid support on pullbacks along the way. Most recently AuRico, after rallying to a new all-time high at C$1.43, has begun to consolidate those gains. This is a normal development during an upleg and suggests more upside to follow. The rising weekly momentum provides additional support for higher objectives. The next upside target is the top of the trend channel at C$1.55-1.60. Additional higher targets are also possible. Support lies across C$1.32-1.33 then C$1.25. The consolidation provides opportunity to add or establish new positions. (Figure 1) read more


Thursday, September 14, 2017 Derek Macpherson

ANX Reports Strong Q1 F2018

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Anaconda Mining Inc. (TSX:ANX) reported Q1 F2018 production and partial financial results, selling 4,723 oz Au and generating revenues of C$7.6 million during the quarter. The company is well-positioned in meeting F2018 guidance of 15,500 oz Au. It is also worth noting, Resource Capital Gold Corp. (TSXV:RCG) reported positive results from bulk sampling and test mining completed at its Dufferin gold project, which is very similar and along strike from the company’s Goldboro project. Based on our preliminary estimates, we continue to believe that Anaconda is undervalued at current levels. read more


Tuesday, September 12, 2017 Derek Macpherson

SWA Delivers First Results Near Bondi

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Sarama Resources (TSXV:SWA) reported results from the company’s first drill program, intersecting oxide gold mineralization ~4km north-east of its recently acquired Bondi Deposit within its ThreeBee Project in Burkina Faso. In total, 82 holes were drilled over 2,800m, surface highlights include 1.50 g/t Au over 8m (DJA0061) and 1.07 g/t Au over 27m (DJA0060) (Figure 1). The company plans to follow-up on these results, in addition to using historical data to identify targets. Initial results appear positive and have to potential to add to the historical resources at Bondi. Sarama currently trades at C$10/oz, a steep discount to peers at C$51/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with work at its ThreeBee project (100% interest), may provide the necessary catalysts for the stock to close the valuation gap to peers. read more


Tuesday, September 12, 2017 Derek Macpherson

Radisson Identifies New Zone; Notes VG

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Radisson Mining Resources Inc. (TSXV:RDS) reported results from ongoing drilling at its O’Brien gold project in Quebec. Results were highlighted by hole OB-17-25W intersecting 12.9 g/t Au over 8m within a wider interval grading 2.8 g/t over 54m (Figure 1). As well, visible gold was identified in two exploration holes in the new Vintage zone by which targets were identified through historical data. Additional results are expected for 21 drill holes, as drilling continues during the 20,000m program including results from the Vintage zone. The company noted it will also be reviewing historic near-surface drill holes from the 36E zone. We expect upcoming drill results, both new and historic, to highlight the properties potential and begin to define resources. At C$49/oz, Radisson continues to trade at a discount to peers at C$52/oz. The nearby infrastructure, higher grades and the potential for resource expansion that is demonstrated with ongoing drill results at O’Brien, we believe the company could trade at a premium to peers. In our view, the current drill program, together with the re-logging and selective re-assaying of historic drill core and the digitization of historic data (resource estimate Q3 2017), including exploration at Douay should provide positive catalysts for the stock and close the valuation gap to peers. read more


Tuesday, September 12, 2017 Derek Macpherson

GQC Identifies 6 New Targets S-E of Cachimbo

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GoldQuest Mining Corp. (TSXV:GQC) provided an update regarding exploration activities on its Tireo Concessions. The company recently identified 6 new targets (Figure 1) to the south-east of the Cachimbo Discovery which is along the same trend as its Romero and Romero South deposits. The targets are being further defined with mapping, deep IP sections and soil sampling with future drilling in mind. Results from four holes are pending at Cachimbo, which remains open in all directions. The recent update from the Ministry of Energy and Mines in the Dominican Republic does not impact the Cachimbo discovery and the company remains well-funded to support exploration activities. GoldQuest currently trades at a slight discount to peers at $24/oz (peers $31/oz). We continue to believe that the current valuation does not fully reflect the exploration potential of GoldQuest’s wider land package. We expect continued exploration drilling, along with follow-up drilling at Cachimbo are likely to be positive future catalysts for the stock. read more


Tuesday, September 12, 2017 Derek Macpherson

FCC Site Visit: Rediscovering a Historic Camp

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Last week we visited First Cobalt Corp’s (TSXV:FCC) properties in the historic Cobalt Mining camp. First Cobalt, recently announced mergers with Cobalt One Limited (ASX:CO1) and CobalTech Mining Inc. (TSXV:CSK) which on a pro-forma basis will make it the largest landholder in the Cobalt Mining camp. While previous mining in this camp was focused on narrow vein exceptionally high-grade silver, First Cobalt is focused on finding a primary cobalt deposit. While the exploration and resource development process is at an early stage, the camp is known to have economic cobalt grades. We 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. Important upcoming catalysts are likely to include exploration results and the completion of the proposed mergers. read more


Tuesday, September 12, 2017 Derek Macpherson

Site Visit: AuRico Gearing Up to Initiate Construction

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Last week we visited AuRico Metals Inc.’s (TSX:AMI) Kemess Project in northern British Columbia. The existing infrastructure at Kemess was as impressive as it was a year ago when we last visited the site. Since that last visit the company has checked off major project milestones at Kemess including the receipt of an Environmental Assessment Certificate for Kemess Underground (“KUG”), a signed Impact Benefits Agreement with the Tse Keh Nay First Nations for KUG, a Preliminary Economic Assessment on neighbouring deposit Kemess East (“KE”), and the submittal of permit applications for KUG. The Company has also added key hires to their project management team over the past few months as, pending permits being received in Q2-2018, it will look to initiate construction at KUG by July 2018. As was the case a year ago, we continue to believe Kemess remains undervalued within AuRico. read more


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