Tuesday, March 13, 2018 Derek Macpherson

Northern Vertex: Pours First Gold & Preps for M&A

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Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has made its first gold pour at its Moss Mine, which recently started production, an important milestone and the next step towards commercial production. As well the company has prepared itself to execute on significant M&A by securing a commitment of up to $100M for acquisitions and development from Sprott Private Resource Lending LP plus a C$2M equity investment (at $0.52 per unit – each unit is a share plus 2-year half warrant at $0.68)-for exploration spending. The company now has access to up to $100M in financing for future development and acquisitions; however, Sprott must approve the use of proceeds and the terms are expected to be determined at the time of drawdown. Now that Northern Vertex has started production, the key catalysts are likely to be the ramp-up of production, leading to the declaration of commercial production. Looking into the future, the permits required to extend the mine-life, beyond the current five years, and capture the ~200k oz AuEq outside the current resource is likely to be a focus. Northern Vertex trades at an EV/oz premium to peers (C$229/oz vs. peers at C$56/oz), which we view as warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more

Tuesday, March 13, 2018 Derek Macpherson

Marlin Gold: More to this Fish than Meets the Eye

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We recently took the time to dig deeper into Marlin Gold Mining Ltd. (TSXV:MLN, $0.405) and are publishing our initial estimates. We came to the conclusion that Marlin Gold is an undervalued gold producer with increasing near-term cash flow providing the company optionality for shareholders, as it positions the company to unlock shareholder value via exploration at its existing assets, all three have good potential, or using its cash pending cash flow as a lure for an accretive acquisition. A summary of our work can be found below, and our full report can be downloaded here.  read more

Tuesday, March 13, 2018 Derek Macpherson

Novo’s Warrant Exercise Covers Costs; Site Visit Next Week

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Novo Resources Corp. (TSXV:NVO) raised C$3,338,701 after the full exercise of 3,927,884 share purchase warrants from the company’s private placement which closed on March 8, 2016, resulting in a cash balance of C$69.5 million. Each warrant was priced at C$0.85 per share for a 24 month period. During the most recent fiscal year ended January 31, 2018, the company was able to raise C$15.8 million from the exercise of warrants, which has more than covered the C$14 million expenditures on its mineral properties from the same period. Novo remains well-funded to continue exploration in Karratha as the company continues to refine its exploration approach. Importantly, next week we will be on site at Karratha and Beatons Creek, after which we plan to provide an update on our findings. read more

Sunday, March 11, 2018 Derek Macpherson

Bunker Hill: Restarting a Historic Zn-Pb-Ag Mine

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Bunker Hill Mining Corp. (CSE:BNKR) has just surpassed an important hurdle to restarting production at its Bunker Hill Mine in Idaho. The company signed an agreement with the United States Environmental Protection Agency (EPA), and the United States Department of Justice, allowing the company to operate the Bunker Hill Mine without incurring liability for hazardous substances, pollutants or contaminants that migrated from the mine in the past. This agreement marks a significant milestone for the company and allows management to shift its focus to mine development, finding a milling solution (toll milling or mill acquisition) and producing a 43-101 compliant resource. Pending the completion of these milestones, the company expects to begin production as early as 2019E.  read more

Friday, March 09, 2018 Derek Macpherson

Aquila Progresses Towards Final Major Permit

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Aquila Resources Inc. (TSX:AQA) provided a permitting update regarding the wetland/stream/floodplain permit application for its Back Forty Project in Michigan. The permitting process is progressing as the company has received comments from the United States Environmental Protection Agency (EPA) and the company now has 90 days (from March 8, 2018) to work with the Michigan Department of Environmental Quality (MDEQ) to respond and provide the necessary information to resolve the EPA’s requests. The wetland/stream/floodplain permit is the final of four key permits the company needs to build and operate Back Forty. Aquila recently provided an updated resource estimate for the project, to support a feasibility study which is underway. Currently, permitting and the feasibility study are designed for an open-pit operation, the company is expecting to evaluate a future underground option closer to initial production. Upcoming permitting news will be an important near-term catalyst for the company, we believe Aquila is well positioned to complete the feasibility study and start construction once the final permit has been granted, with funding in place to support pre-construction. read more

Thursday, March 08, 2018 Derek Macpherson

Novo Refines Exploration Approach for Karratha

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Yesterday, Red Cloud Klondike Strike Inc. hosted an update lunch with Novo Resources Corp. (TSXV:NVO). President, Director and Chairman, Dr. Quinton Hennigh recalled past and ongoing exploration efforts which has led the company to refine its knowledge on how to most suitably explore its Karratha gold project. Although questions remain unanswered, over the next 6 months Novo is focused on determining whether resource estimation is possible with data collected, a difficult task given the project’s nuggety nature. In addition, the company touched on plans for Beatons Creek in 2018, which has become less of a priority with success at Karratha. We continue to believe upcoming newsflow is an important catalyst for Novo as the company aggressively works to demonstrates Karratha’s potential. read more

Wednesday, March 07, 2018 Derek Macpherson

Bunker Hill Completes EPA Agreement: Clears the Path for Development & Potential Acquirers

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Bunker Hill Mining Corp. (CSE:BNKR) announced it has executed an agreement with the United States Environmental Protection Agency (EPA), and the United States Department of Justice, allowing the company to operate the Bunker Hill Mine without incurring liability for hazardous substances, pollutants or contaminants that migrated from the Mine in the past. As previously mentioned, Bunker Hill is required to make US$20 million in payments over a seven-year period to the EPA and fund the ongoing costs of the existing water treatment plant, US$960,000 per year. This agreement is important for two reasons. First it shifts the company’s focus to development, with the next key catalysts being a milling solution (toll milling or mill acquisition) and a 43-101 compliant resource. Secondly, this indemnification paves the way for potential deeper pocketed acquirers, who previously would have been hesitant because they could have been liable for some the of previously spent clean-up costs in the Silver Valley. We view this event positively, as it is a material de-risking event and expect the stock to react positively in the short-term. read more

Tuesday, March 06, 2018 Derek Macpherson

Aston Bay: Game Changing Discovery Potential in a Premier Jurisdiction

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Aston Bay Holdings Ltd. (TSXV:BAY) is a C$11.5 million market cap company run by an impressive list of geologists who have invested their own money in the company. This is a base metal exploration company in Northern Canada that many small cap resource investors have looked at before because of the projects location and early high-grade hits. However, the company has materially changed over the last year, and warrants a fresh look. In our view, as the company prepares for this summer's drilling campaign, it presents an attractive risk-reward scenario for investors. read more


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