RCKS talk

Sunday, August 13, 2017 Derek Macpherson

Site Visit: RNX Setting off on the Right Path at Beta Hunt

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Last week we visited RNC Minerals Corp.’s (TSX:RNX) Beta Hunt mine in Western Australia. Our visit taught us a lot about this unique mine. A key takeaway for us was that the significant infrastructure in place, along with a substantial amount of drilling was designed around the flat lying nickel deposit, not the gold deposit. While this infrastructure and drilling provides some benefit (and reduces development costs) for the steeply dipping gold deposit, it is not ideal. The company is taking the right steps to develop new gold levels in an effort to both access the gold orebody, but also provide drill bays to better define the orebody. While Beta Hunt has a long history as a nickel mine, the gold mine is significantly younger with limited exploitation over the last ~20 years, because of split ownership of the gold and nickel rights. While this presents some challenges, it is also an opportunity as there appears to be significant exploration upside and room for potential expansion at the mine. Our visit was highlighted by the mines potential, and that RNC is taking the right steps to first stabilize operations before tapping into the upside. In the near-term investors are likely to remain focused on quarterly financial and operating results as the mine ramps up. read more

Monday, August 07, 2017 Derek Macpherson

NVO Site Visit: Comet Well has +10M oz Potential; Plenty of Work Remains to Prove it

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We had the opportunity of visiting Novo Resources Corp. (TSXV:NVO) Karratha Project in Western Australia. The main goal of our visit was to determine if the recent significant increase in the share price (up 240% since July 10th) was warranted and in our opinion, it was. Based on our trip, the company’s recently acquired Comet Well property (80% owned), has the potential to host more than 10 million ounces of gold. We highlight that it is very early days, and the company has a significant amount of work to prove us correct. As well, the exceptionally nuggety nature of the deposit is going to provide challenges to determine a true resource grade and the potential exists that an initial NI 43-101 compliant resource could understate grade. We highlight that our view on the project’s potential has been adjusted for these factors and does not include the additional 2km of strike on the adjacent Purdy’s Reward (option to earn 50% from Artemis Resources Ltd. – ASX:ARV). We are comfortable with this opinion because of the pervasiveness of gold nugget discoveries across the trend. Important catalysts remain on the horizon for the company, including the initial bulk sample results from Purdy’s Reward, and the start of exploration at Comet Well. read more

Monday, June 19, 2017 Derek Macpherson

TK Site Visit: Just Scratching the Surface of Ayawilca's Potential

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Last week we had the opportunity to visit Tinka Resources Ltd’s (TSXV:TK) wholly owned Ayawilca zinc project, in central Peru. Although still early days, we were impressed by recent drilling success at South Ayawilca, Tinka’s first foray outside of the Ayawilca Zinc Zone, which hosts an Inferred Resource of 18.8Mt at 8.2% ZnEq. Given there are several other coincident geochemical and geophysical targets to be tested on this 15,000 Ha property, we expect Tinka to continue to expand resources and believe potential exists for the discovery of another zone. read more

Wednesday, November 16, 2016 Derek Macpherson

Site Visit: Euromax is Getting Ready to Build

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Last week we visited Euromax Resources’ (TSX:EOX) Ilovica-Shtuka project in Macedonia. The visit confirmed our favourable view of the project and highlighted that Euromax is on the path to production in a jurisdiction that appears to be more favourable than we initially thought.  read more

Sunday, October 30, 2016 Derek Macpherson

Site Visit: eCobalt’s ICP is Ready to Go; Offtake Key

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Last week we visited eCobalt Solutions’ (TSX:ECS) Idaho Cobalt project (ICP) near Salmon, Idaho. Our visit to the project was highlighted by three key points. First is that construction is ready to resume, with all the pieces in place to build the mine, along with permits; eCobalt can restart the project at any time. Secondly, the project is likely to grow beyond the current 12.5 year mine-life, just not yet. And finally, in our view one of key elements needed for the project to move ahead is a cobalt sulphate heptahydrate off-take agreement, which we would expect to be completed in conjunction with the ongoing feasibility study.  read more

Sunday, October 16, 2016 Derek Macpherson

Site Visit: Victoria’s Eagle Project Poised to Soar

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Last week we visited Victoria Gold Corp’s (TSXV:VIT) Eagle Gold project in the Yukon. While our visit highlighted some important points about the project it did not materially change our view on the project’s potential, as highlighted by the recently updated feasibility study. The key takeaways from our visit included the exploration upside at Olive and Shamrock, along with other long-term targets, that the company is looking to take advantage of its balance sheet to reduce pre-production capital costs and the visit solidified our view, pending financing, that the company is planning to start construction in early 2017. We expect a project financing update, along with additional drill results from Olive-Shamrock to be the next catalysts for Victoria. As well, we believe the current valuation only partially reflects the recent feasibility study update and still does not account for the project's shovel ready nature.  read more

Tuesday, August 30, 2016 Derek Macpherson

AMI Site Visit: Kemess Worth More than Valuation Suggests

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Last week we visited AuRico Metals Inc.’s (TSX:AMI) Kemess project in Northern British Columbia and were impressed by the existing infrastructure and the management team's technical expertise. In our opinion, once management completes the project’s environmental assessments (expected early 2017) it should be positioned to unlock the value of Kemess. In our view the market appears to ascribe Kemess zero value, providing investors an opportunity for a viability re-rating as management de-risks this project. read more

Sunday, August 28, 2016 Derek Macpherson

IDM Site Visit Highlighted by Exploration Potential

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This past week we visited IDM Mining Ltd’s (TSXV:IDM) Red Mountain project in British Columbia. While it appears the company is on-track to make its final permit submission and deliver a feasibility study early next year, the highlight of the trip is the exploration potential both near-mine and regionally. In our view, this potential for resource growth is not incorporated in IDM’s current valuation. As well, the underground tour suggests the existing underground infrastructure is in decent condition and that ground conditions appear to be good. IDM continues to trade at a discount to peers and we believe that as the company continues to de-risk the current project and demonstrate the potential for resource growth, it should trade at least in-line with similar stage development peers.  read more


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