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Thursday, November 30, 2017 Derek Macpherson

Tinka Adds C$3.7M in Cash with Warrant Exercise

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Tinka Resources Ltd. (TSXV:TK) received total proceeds of C$3.7 million from the exercise of 12,632,660 (priced at C$0.30) common share purchase warrants, that expired on November 29, 2017, from a May 2015 financing. We note, this warrant exercise may have partially caused the recent weak share price performance. The company will use the cash for further exploration drilling and resource development at Ayawilca in 2018. At C$0.018/lb Zn, Tinka trades at a discount to peers at C$0.025/lb Zn. We believe that the ongoing drilling updates and the significant exploration potential of the Ayawilca property should be important catalysts for the company.  read more


Thursday, November 30, 2017 Derek Macpherson

BAY Identifies Drill Targets for 2018; Seal Zinc Initial Resource Estimate Expected Shortly

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Aston Bay Holdings Ltd (TSXV:BAY) has received initial data from the Falcon Plus Airborne Gravity Gradiometry survey, designed to highlight potential targets from its Aston Bay property on Somerset Island, Nunavut. The results, which returned strong gravity responses from the Storm Copper, Seal Zinc, and Typhoon Zinc including other nearby targets in the south, will be analyzed to determine drill targets for the 2018 summer field program (Figure 1). Initial results are promising, as survey anomalies extend beyond current exploration which could support the possibility of additional target discovery. Notably, the company is working on an initial resource estimate for the Seal Zinc prospect which is expected to be released shortly, the prospect had been previously drilled by Teck Resources Ltd. (formerly Cominco Ltd.). Following the initial resource for Seal Zinc, upcoming drilling in 2018 will be an important next step to provide more insight on the properties opportunity, and specific targets.  read more


Thursday, November 30, 2017 Derek Macpherson

IDM Provides Update on Red Mountain

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IDM Mining Ltd. (TSXV:IDM) provided and update regarding development engineering work and optimization at its Red Mountain Gold Project in BC. Since announcing a feasibility study last June, the company has been performing pre-development engineering studies and supporting Mines Act permitting through detailed engineering and design. Highlights of pre-development work include metallurgical testing, evaluating potential modifications to the underground mine design, performing geotechnical site investigation drilling, performing a hydrotechnical assessment of Bitter Creek, competing programs to meet requirements for Mines Act permitting and the company has recently entered an agreement with BC Hydro to complete a System Impact Study. IDM has now completed all the engineering and design work required for Mines Act permitting. We expect ongoing drilling news, permitting updates and development activities to be important catalysts for the stock as the company remains focused on advancing the project towards construction (2018). IDM continues to trade at a discount to peers on a per ounce basis (C$33/oz vs. peers at C$44/oz).  read more


Wednesday, November 29, 2017 Derek Macpherson

Filo Releases Positive PEA; Room to Improve Economics

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Filo Mining Corp. (TSXV:FIL) reported results from a PEA completed for its Filo del Sol project on the border between Argentina’s San Juan province and Chile’s Region III. From the details released, we consider the PEA to be positive, with reasonable assumptions and opportunities to improve project economics. We highlight that the PEA only includes the oxide portion of the 2016 mineral resource update and considers open pit mining followed by heap leach processing in order to produce copper cathode and gold-silver doré. Despite, low-grades, the combination of a low-strip ratio (0.96:1) and low-cost processing via heap leach, the project has pretty good economics, particularly when taking into account its 15 year mine-life. At metal prices of $3.00/lb Cu, $1,300/oz Au and $20.00/oz Ag, respectively, the project has an NPV8% of $705 million and an IRR of 23.3%. The company hopes to improve project economics with optimization work (both metallurgy and mining) and the addition of higher-grade ore via exploration. In our view, this is one of the few quality copper development projects out there, and with strong backing (shareholders, management and board), is likely to trade at a premium to peers. Near-term catalysts for the company include metallurgical testwork and a planned 10,000m infill and step out drilling program to expand and upgrade the current resource. read more


Wednesday, November 29, 2017 Derek Macpherson

ANX Initiates Drilling on Four Targets at Point Rousse

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Anaconda Mining Inc. (TSX:ANX) has initiated a 5,000m diamond drill program at its Point Rousse Project in Newfoundland, which will occur over the next four months costing ~C$800,000, funded from a recent flow-through financing. Drilling will focus on four main targets along and adjacent to the Scrape Trend, Argyle, Connector Zone, Anoroc and Corkscrew Road. The targets are located (Figure 1) within 5km from the Pine Cove Mill. We note that the maiden resource for Argyle is expected in the near-term, and should provide a meaningful mine-life extension at Point Rousse. Based on our preliminary estimates, we believe Anaconda is undervalued. At its current market cap (C$27.4 million), investors are either paying for Point Rousse (~value of C$30-50 million based on our preliminary DCF) or Goldboro (~ value of C$41.5 million based on C$50/oz) suggesting good value at current levels. In our view, the upcoming PEA for Goldboro is an important next catalyst which should allow investors to better understand the potential of this asset. Following that, operations later in F2018 (year-end May 31) should see production and cash flow increase as mining at Point Rousse moves to the higher-grade Stog’er Tight deposit. In our view, both these catalysts have the ability to cause the market to ascribe a fair value to both projects. read more


Wednesday, November 29, 2017 Derek Macpherson

RDS Begins Drilling; Resource Update on Track for Q1 2018

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Radisson Mining Resources Inc. (TSXV:RDS) has commenced a 6,000m exploration drill program, 5,200 of which will target the Vintage zone (Figure 1), located north and parallel to the majority of current resources at its O’Brien gold project. The zone remains open in all directions, spanning east-west 825m in strike and at depth to 580m. The remaining 800m of the program will target geophysical anomalies in the Pontiac sediments south of O’Brien. The company remains on course to complete its resource update in Q1 2018 for O’Brien, which will include 30,000m of drilling as well as all exploration activities from the F Zone, 36E, Kewagama and the Vintage zone. At C$50/oz, Radisson trades closely to peers at C$41/oz; however, this does not properly reflect the recent discovery of the Vintage zone, or the expected resource increase with the pending update (Q1 2018). We note the company continues to be actively exploring in the sediments around the Vintage zone (results pending) and near the current resource. read more


Tuesday, November 28, 2017 Derek Macpherson

LPK Targets Q1 2018 Release of Invicta PEA

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Lupaka Gold Corp. (TSXV:LPK) reported it has initiated the preparation of the PEA for its wholly owned Invicta Gold development project north of Lima, Peru, contracting SRK Consulting Canada Inc. The PEA is expected to be completed in Q1 2018, an important milestone for the company to demonstrate the economics of this permitted and fully funded project. On November 21, 2017, Lupaka received C$5.7 million in cash from the sale of the Crucero Gold Project to Gold Mining Inc., reporting a cash and marketable securities balance of ~C$8.3 million, before related fees. The study will use an initial mining rate of 350 tpd and update the existing resource. The company has undertaken internal mining studies which it hopes will be validated and enhanced with the PEA. Operations are planned to begin in Q1 2018. read more


Tuesday, November 28, 2017 Derek Macpherson

ORM Begins Two-Phased Field Program in the Carolinas

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Orford Mining Corp. (TSXV:ORM) has initiated its two-phased 2017 field program at its Carolina Gold properties in North and South Carolina. Phase one will comprise of relogging of historical core, surface mapping, trenching and geophysics, to be followed by drilling in phase two. The properties, Jones-Keystone and Landrum-Faulkner (70% option with Carolina Gold Resources Inc.), are located near OceanaGold Corp.’s (TSX/ASX:OGC) producing Haile Mine and past-producing Ridgeway Mine. We believe at Orford’s current value, the stock does not properly reflect the potential of the company’s projects. Upcoming results from exploration at its Carolina Gold properties will provide additional insight on the properties potential. In addition, recent results from Orford’s Qiqavik support our view that significant exploration potential exists. read more


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