RCKS talk

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


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In this edition of RCKS Charts, Keith has evaluated Mawson Resources Ltd. (TSX:MAW), Novo Resources Corp. (TSXV:NVO) and Aurania Resources Ltd. (TSXV:ARU).  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

Monday, March 05, 2018 Derek Macpherson

LPK PEA Confirms View; Provides Upside to Previous Estimates

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Lupaka Gold Corp (TSXV:LPK) released an updated resource estimate and PEA for its Invicta project in Peru, which was better than we expected after our recent site visit. As a result of higher than expected grades, higher than expected overall tonnes, our base case 350 tpd 10% NAVPS has increased to $0.55 (Figure 1 - was $0.34). While this is only a PEA, Lupaka is funded to production and is already building the mine, which suggests to us that this company is poised to quickly close the valuation gap to peers (0.44x base case NAV, peers 0.56x). We believe that first production, expected in H2 2018 is going to be the next key re-rating catalyst for Lupaka. read more

Sunday, March 04, 2018 Derek Macpherson

RPX Shifts to a Higher-Grade Underground Focus

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Red Pine Exploration Inc. (TSXV:RPX) is planning to start strategic optimization of the Wawa Gold Project, to focus on higher-grade zones following the discovery of the Minto Mine South Zone (MMSZ) and the re-evaluation of the Surluga deposit. We view this positively, as a higher grade underground scenario is likely to have lower upfront capital and the project can start smaller and grow organically. A similar approach was taken by Harte Gold (TSX:HRT); however, Red Pine is likely to start with a larger initial resource. Although preliminary, the company has estimated between 0.725M oz to 3M oz of contained ounces exists between three exploration targets (Figure 1); Surluga Exploration Target (3Mt to 5Mt @ 4.9 g/t to 6.5 g/t), Hangingwall-Footwall Exploration Target (0.5Mt to 3.5Mt @ 4 g/t to 9.5 g/t) and Minto-Darwin Exploration Target (1.5Mt to 3Mt at 4 g/t to 10 g/t). The Surluga Exploration Target is now also being considered for underground development as opposed to the prior open pit scenario. Plans exist to expand exploration in both the MMSZ and Surluga deposit areas to focus on under-explored targets to update property-wide mineral resource estimates. Red Pine currently trades at a discount to peers (C$23/oz vs. peers at C$49/oz). 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, particularly when you take into account the significant growth potential of this deposit. read more


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