RCKS talk

Monday, September 11, 2017 Derek Macpherson

RCKS Charts: Gold, Copper, EXN, KL & SIR

Download Report  

In this edition of RCKS Charts, Keith has evaluated Excellon Resources Inc. (TSX:EXN), Kirkland Lake Gold Ltd. (TSX:KL) and Serengeti Resources Inc. (TSXV:SIR) along with the gold and copper charts.  read more


Monday, September 11, 2017 Derek Macpherson

VIT Reports Promising Results from Olive

Download Report  

Victoria Gold Corp. (TSXV:VIT) reported results from 7 holes (2,428m) drilled at the Olive target area (Figure 1), specifically south and west of the main Olive-Shamrock Zone during ongoing exploration on its Dublin Gulch property in the Yukon. This area represents a possible continuation of the Olive Shear Zone which is relatively unexplored, with limited previous drilling. Results were highlighted by 1.54 g/t Au over 33.3m (DG17-849C) and 1.56 g/t Au over 13.9m (DG17-889C). More results are expected as drilling continues throughout the beginning stages of construction at the nearby Eagle Gold Mine. We expect continued exploration success to be a positive catalyst for the stock and should help demonstrate the exploration upside that exists on the property. Victoria currently trades at a discount on a per ounces basis, or C$31/oz versus peers at C$59/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, September 06, 2017 Derek Macpherson

EXN Intersects High Grades; Accessible by End of Year

Download Report

Excellon Resources Inc. (TSX:EXN) reported high grade results from ongoing exploration at its Platosa Mine in Mexico. Results were highlighted by hole EX17UG330, returning 1,203 g/t Ag, 9.3% Pb and 13.4% Zn 2,255 g/t over 11.1m, including 2,079 g/t Ag, 14.2% Pb, 23.9% Zn over 5.2m. Importantly, drilling discovered near mine mineralization, that connected and expanded the 623 and Guadaloupe South Mantos, which can be accessed by the end of the year. To date, 16,030m (139 holes) of drilling has been completed through the ongoing program. Excellon currently trades similarly to peers at 5.9x 2017e EV/CF versus peers at 6.3x 2017e EV/CF. Ongoing exploration should be an important catalyst for the company, as they highlight the potential to expand and grow operations in the near-term. read more


Wednesday, September 06, 2017 Derek Macpherson

Sierra Results Add Higher Grades Near Bolivar

Download Report  

Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported results from drilling completed at the Bolivar West zone, adjacent to current operations at the Bolivar mine. Results on average graded 2.55% Cu, which should help increase head grades at the mine in the near-term. The 12,300m (28 holes) program is expected to be included in an updated resource for the mine (Q4 2017), which focused on increasing grades and defining additional resources. The company expects to continue drilling into 2018 at all of its operations. We 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, September 06, 2017 Derek Macpherson

IDM Reports Highest Grade Intersection to Date

Download Report  

IDM Mining Ltd. (TSXV:IDM) reported additional results from 28 underground holes targeting the Marc and AV Zones (Figure 1). Results from the Marc Zone returned the highest grade intersection to date of 1,400 g/t Au and 437 g/t Ag over 0.5m, within a wider interval of 149.24 g/t Au and 59.88 g/t Ag over 4.88m (uncapped) in hole U17-1289. In addition, past and recent drilling have identified intervals of wide disseminated gold mineralization between 150-300m down-dip from current reserves in both the AV and JW Zones, now named the Smit Zone. In the Smit Zone drilling was successful with mineralization identified at the planned depth of a number of holes. The identification of this new zone, which remains open down-dip, at depth and to the north, highlights the expansion opportunities that exist at Red Mountain and the company’s ability to grow reserves. Results are pending from drilling near the surface outcropping of the 141 zone. We expect ongoing drilling news and development activities to be important catalysts for the stock as the company remains focused on advancing the project towards construction (2018). IDM trades similarly to peers on a per ounce basis (C$53/oz vs. peers at C$51/oz). read more


Tuesday, September 05, 2017 Derek Macpherson

Kirkland Lake Invests C$56 million to Own 18.2% of Novo

Download Report  

Novo Resources Corp. (TSXV:NVO) announced today that through a non-brokered private placement, Kirkland Lake Gold Ltd. (TSX:KL) will increase its investment in Novo to ~18.2% by purchasing 14 million shares at a price of C$4.00 for a total value of C$56 million. This is combined with the company’s recent acquisition of 9.2% of the company, which corresponds with a similar size sale announced by Newmont on Friday at C$1.60 per share. Kirkland retains the right to participate in future financings to maintain its ownership in Novo. The proceeds significantly strengthen Novo’s balance sheet, with C$70 million in the company’s treasury pursuant to the closing, anticipated on September 15, 2017. As per a recent update regarding Karratha, more news is expected as exploration gets underway, specifically regarding the geology of Comet Well and Purdy’s Reward over the next couple of weeks. Based on our preliminary value for Beatons Creek (C$150-200 million) plus the C$400-560 million we would ascribe to Karratha based on our +10 million ounce estimate at Comet Well, we believe some upside remains to the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project. read more


Friday, September 01, 2017 Derek Macpherson

ANX Site Visits: A Stable Base with Significant Growth Potential

Download Report  

This week we visited Anaconda Mining Inc.’s (TSX:ANX) Goldboro (Nova Scotia) and Point Rousse (Newfoundland) projects. Overall, we were impressed and believe the current valuation ascribed by the market does not adequately reflect both projects as they currently sit or the upside potential that they have. At Goldboro, we believe the current resource (830k oz at 4.95 g/t Au) has room to grow and does not properly account for the starter-pit potential that likely exists. We note that the company needs to increase its understanding of the mineralization prior to mining; however, the contemplated bulk sample would certainly help. Point Rousse provides a stable production base, generating enough cash flow to fund small exploration programs. We expect Point Rousse to operate well beyond the existing reserve life with the Stog’er Tight pits coming on later this year, likely to be followed by the recently discovered Argyle deposit. We note that the Point Rousse project hosts many other targets; however, a shortage of time and money has limited the company’s ability to advance them. Based on our site visit, and preliminary estimates, we believe that at its current market cap (C$26.7 million), investors are either paying for Point Rousse (~C$30-50 million based on our preliminary DCF) or Goldboro (C$41.5 million based on C$50/oz) suggesting good value at current levels. 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.