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Thursday, June 23, 2016 Derek Macpherson

RCKS Drilling Deeper Lunch Features Four Funded Explorers


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Yesterday, Red Cloud Klondike Strike Inc. (RCKS) hosted the third installment of our Drilling Deeper lunch series, this time featuring companies with funded exploration programs. The presenting companies were Aston Bay Holdings Ltd. (TSXV:BAY), Eastmain Resources Inc (TSX:ER), IDM Mining Ltd (TSXV:IDM) and Victoria Gold Corp. (TSXV:VIT). In our 3 THEMES & 10 COMPANIES FOR A NEW BULL MARKET IN PRECIOUS METALS post earlier this week, we highlighted that we believe good news is once good for stocks (catalysts) and we believe all four presenters have the potential to increase shareholder value with the drill bit this year.

 

Aston Bay Holdings Ltd. (TSXV:BAY)
Aston Bay Holdings has recently signed a definitive option agreement with BHP Billiton Ltd (BHP), under which BHP can earn a 75% interest in the Storm Copper project, by spending C$40 million over nine years, with a minimum C$2.5 million being spent in the first two years. This option agreement funds the next leg of exploration for Storm Copper project, where the focus is on discovering a “BHP sized” sediment-hosted copper deposit. Historic drilling, along with a recent reinterpretation of geophysics suggests this type of target exists. The detailed 2016 exploration plan is still being finalized; Aston Bay and BHP have already mobilized equipment and personnel to the site and we anticipate first drill results later this year.
 
Eastmain Resources Inc. (TSX:ER)
Following recent board and management changes, the company plans on expanding and upgrading the existing resource at its Eau Claire project with an aggressive drill program in 2016. Eastmain has also committed to significant work programs at its Eastmain and Eleonore South JV projects. At Eau Claire, the company plans to drill 50,000m this year, with a focus on upgrading existing inferred resources, drilling gaps in the existing resource model and nearby open pit targets that have yet to be drilled. With multiple active exploration programs, we expect drill results from Eastmain through the balance of 2016, leading to an updated resource at Eau Claire in Q1 2017.
 
IDM Mining Ltd. (TSXV:IDM)
Following a C$10.8 million financing earlier this year, IDM is funded to not only advance its Red Mountain project to a construction decision in early 2017 but also add value with the drill bit. The majority of IDM’s drill program is focused on the existing resource area with infill drilling focused on upgrading inferred ounces for the upcoming feasibility study (Q1 2017), and adding near infrastructure ounces. In the near-term, the company is expecting to release an updated PEA in early July, which should demonstrate a larger production profile and improved project economics.
 
Victoria Gold Corp. (TSXV:VIT)
Victoria Gold, with approximately C$37 million in cash, is well funded to advance its fully permitted, feasibility stage Eagle Gold project in the Yukon. The company has been actively drilling the Olive-Shamrock zone and plans to incorporate the Olive zone in its updated feasibility study later this year. The addition of this higher grade zone should benefit the projects mid-mine life production profile along with overall project economics. We expect additional drill results from Olive and Shamrock for the balance of 2016 and expect the updated feasibility study to be an important catalyst for Victoria when released later this year.
 
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Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business"). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
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