RCKS talk

Wednesday, November 29, 2017 Derek Macpherson

Filo Releases Positive PEA; Room to Improve Economics

Download Report  

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

Download Report  

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

Download Report

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

Download Report

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

Download Report  

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


Tuesday, November 28, 2017 Derek Macpherson

Maverix Reports Improved Quarterly Results

Download Report  

Maverix Metals Inc. (TSXV:MMX) announced Q3 2017 financial results reporting revenue of C$4.6 million, operating cash flow of C$3.6 million and C$0.7 million of net income, which is significantly higher than the previous quarter by 15%, 57% and 250%, respectively. The company achieved attributable AuEq ounces sold of 2,882 ounces and an average cash cost per attributable AuEq ounce of C$160, which results in cash operating margins of C$1,438 per ounce. Other updates during the quarter includes the closing of a $20 million loan facility, the first gold pour from the Moose River gold mine on which Maverix has a 3% NSR and expected H1 2018 production from the Silvertip mine on which Maverix has a 2.5% NSR. Although the company has significant growth prospects for 2018, it has lowered 2017 guidance for expected revenue and attributable AuEq production to C$16 – C$18 million and 10,000 – 11,000 ounces, respectively. The company’s current enterprise value (EV) is sitting at ~C$263.3 million, which implies an EV/EBITDA of ~15.0x-17.6x (based on 2017 guidance), a discount to royalty peers that trade at 19.7x (2017e EV/EBITDA). In our view, this valuation is not fully reflective of the company’s growth potential, both when considering its development stage royalties and ability to do accretive acquisitions. read more


Friday, November 24, 2017 Derek Macpherson

NVO Exploration Update Shows Progress & Challenges

Download Report

Novo Resources Corp. (TSXV:NVO) has announced an update on exploration activities in Australia at its Purdy’s Reward tenement and Karratha gold project. The company has reported that the Western Australian Government’s Department of Mines, Industry Regulation and Safety (DMIRS) has granted a 20,000-tonne excess tonnage permit for the extraction of a bulk sample from Purdy’s Reward tenement. The company has indicated that the desired results from large diameter drilling were not achieved. Therefore, the company is going to have to rely on the ongoing bulk samples for grade estimation. Scanning electron microscopy of the gold-bearing conglomerate has indicated that the fine-grained gold previously reported occurs as halos of particles within a few millimeters of the coarser grained gold nuggets. While early, this suggests that the grade of any future resources is going to rely solely on the nuggets and there may not be a background fine gold component. At Novo’s current share price, the market is pricing in a sizeable resource at Novo’s Karratha project, which based on the data to date, we continue to view as very possible. However, additional data, including additional diamond drilling to determine conglomerate thickness (ongoing) and assay results from the ongoing systematic bulk samples (early 2018), is needed to fully understand this projects potential.  read more


Thursday, November 23, 2017 Derek Macpherson

First Cobalt and CobalTech Merger Approved

Download Report  

First Cobalt Corp. (TSXV:FCC) announced the merger with CobalTech Mining Inc. (TSXV:CSK) has been approved, which owns the past-producing Kerr Lake and Lawson mines as well as a fully-permitted 100 tpd mill. As previously announced, for each CobalTech share, CobalTech will receive 0.2632 of a First Cobalt common share. Earlier in the week, the company also received approval for the merger with Cobalt One. Subsequently, First Cobalt can begin to finalize the consolidation of all three companies, expecting to close the transactions over the next 2 weeks. We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers, pro-forma. Besides pending drill results, important upcoming catalysts are likely to include planned metallurgical test results and the completion of the approved mergers with Cobalt One and CobalTech.  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.