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Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview


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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.


Lunch Presenters

Kirkland Lake Gold Ltd. (TSX:KL) is a new mid-tier gold producer with assets in Canada and Australia. The company’s operations include the Fosterville, Stawell and Cosmo gold mines in Australia and the Taylor, Holt and Holloway mines and Macassa mine complex in northeastern Ontario. The company’s 2017 production guidance is upwards of 500k oz Au, with 390k oz (~74%) expected from Macassa, Taylor and Fosterville. The company has budgeted US$45-$55 million for growth and exploration within its established portfolio of assets in 2017.

Premier Gold Mines Ltd. (TSX:PG) is a growing gold producer and exploration and development company with a portfolio of North American based precious metals projects, including the Greenstone gold project in Ontario and the advanced stage McCoy Cove gold-silver project in Nevada. In Q3 2016, the company acquired the Mercedes gold and silver mine in Mexico, which produced 24k oz AuEq in Q4 2016 and commissioned the South Arturo gold mine (40% ownership) in Nevada that produced 89k oz Au (100%) in 2016. The company is guiding for gold production to grow by 10-20% in 2017 to 125-135k oz Au at AISC of US$660-690/oz Au and guides for silver production of 325,000 – 350,000 oz Ag.

Richmont Mines Inc. (TSX:RIC, NYSE: RIC) is a Canadian gold producer currently producing from the high-grade underground Island gold mine in Ontario and the Beaufor gold mine in Quebec. The company achieved record production of 104k oz Au in 2016 and is guiding for 2017 production of 110-120k oz Au, an increase of up to ~15%. Richmont has significant growth and near-mine exploration potential at the Island mine and expects an expansion case PEA for Island in Q2 2017.

Morning & Afternoon Presenters

Ascendant Resources Inc. (TSXV:ASND) wholly owns the El Mochito zinc-lead-silver mine in Honduras which has been in operation since 1948, making it one of the few existing pure-play zinc producers. Current operations consist of an underground mine and a 2,300 tpd flotation concentrator. Ascendant is currently undertaking an optimization program at the mine targeting a cost reduction of 10-15% (current direct operating capital costs are ~US$70-75 million pa) and expects to ramp up production to 90M lb ZnEq within 18 months.

Ascot Resources Ltd. (TSXV:AOT) is a Canadian-based junior exploration and development company with two major properties in northwestern British Columbia, including the Premier/Dilworth project, a gold, silver and base metals project located near the town of Stewart. The company has planned an extensive ~C$20M exploration and development program at Premier, including both surface exploration and underground development.

Contact Gold Corp. is a new Canadian company that is currently in the process of acquiring 13 gold properties in northeastern Nevada from Waterton Global Resource Management. The portfolio is underpinned by three properties, Dixie Flats, North Star and Pony Creek, which hosts a historic resource of 1.4M oz at 1.2 g/t Au. These properties are located on the southern Carlin Trend in the vicinity of Newmont Mining Corp.’s (NYSE:NEM) Rain and Emigrant gold mines and Gold Standard Ventures Corp.’s (TSXV:GSV, NYSE:GSV) Railroad-Pinion gold project. Contact Gold expects to complete the transaction and public listing in Q2 2017.

eCobalt Solutions Inc. (TSX:ECS) is a Canadian mineral exploration company focused on the development of its wholly owned cobalt-copper-gold Idaho Cobalt Project (ICP), which hosts ~75M lb of CoEq. The company hopes to begin initial production of battery grade cobalt salt in 2018 with annual output forecasted to be 1,500 tonnes over a 12.5-year mine life. An updated feasibility study is expected in Q1 2017 and we anticipate that the company is likely to complete an offtake agreement for a portion of its cobalt sulfate heptahydrate production along with announcing the balance of project financing around the same time.

Excellon Resources Inc. (TSX:EXN) wholly owns the La Platosa silver-lead-zinc mine in Durango which is Mexico's highest grade producing silver mine. Over 500,000 tonnes have been mined since production began in 2005. The company anticipates production to double and costs to decrease by 50% through an optimization program it expects to complete in Q1 2017. Stabilization of operations has allowed exploration to resume, with a 25,000m drill program currently underway of which 5,400m has been completed.

GoldQuest Mining Corp. (TSXV:GQC)
is a Canadian exploration and development company with projects in the Tireo gold-copper belt in the Dominican Republic. Currently, the company is advancing its 2.5M oz AuEq (23.3 Mt at 3.35 g/t AuEq – I & I) Romero project towards production. The company released a pre-feasibility study in Q3 2016 and is expecting a feasibility study in H1 2017 along with operating permits in H2 2017 for Romero. The company is also exploring its wider land package and began a 10km drill program in Q3 2016 at its 100% owned Tireo property – recently announcing the discovery of a new VMS zone.

IDM Mining Ltd. (TSXV:IDM) is a mineral exploration and development company focused on advancing its 669k oz AuEq (2.4 Mt at 8.68 g/t AuEq – all categories) Red Mountain gold-silver project in British Columbia towards production, with permits expected by early 2018. The company completed a 5km drill program in 2016 and is planning further underground resource expansion and exploration drilling in 2017. IDM expects to complete a feasibility study for the project in H1 2017, followed by an Environmental Assessment certificate in H2 2017/H1 2018. The company is currently in the process of advancing the sale of its non-core Yukon assets.

Integra Gold Corp. (TSXV:ICG) is a junior gold exploration company with advanced stage projects in Val d’Or Quebec, including the high-grade 2.54M oz Au (11.6Mt at 6.80 g/t Au - 3 g/t Au cut-off) Lamaque gold project that has historic production of 4.5M oz Au. An updated resource estimate for Triangle and Sigma, along with an updated PEA is planned for Q1 2017. The project’s growing scale, location, and above-average grades likely make it an attractive take-out target.
 
Northern Vertex Mining Corp. (TSXV:NEE) is an exploration and development company focused on the reactivation of its wholly-owned Moss gold-silver project in Arizona that hosts a resource of 478,000 oz AuEq (17.7Mt at 0.84 g/t AuEq – all categories). Construction of the Moss project is underway with commercial production scheduled to begin in Q4 2017 with an average annual production of 42,000 oz AuEq. A 3,000m step-out drill program is currently underway at the project which has potential to add ounces and meaningfully impact project economics by extending the mine life beyond the current 5 years.

Otis Gold Corp. (TSXV:OOO) is a Canadian resource company focused on developing its Kilgore gold project in Idaho that currently hosts a resource of 820k oz Au (47.5Mt at 0.53 g/t Au). The company undertook a 10km drill program at Kilgore last year focused on the Aspen formation that has returned higher grades and wider intervals than that of the current resource. We expect the resource to grow beyond the current 820k oz with the next resource update expected in Q2 2017.

Radisson Mining Resources Inc. (TSXV:RDS) is a Canadian exploration company which is focused on exploring and developing its 100% owned O’Brien project near Val d’Or, Quebec. The past producing O’Brien Mine was the highest grade producing mine along the Cadillac fault with historic production of 587k oz Au (1.2Mt at 15.25 g/t Au). In addition to its ongoing 20km drill program at O'Brien, Radisson is currently digitizing historic data, re-logging, and re-assaying historic drill holes. The company has the potential for resource growth at the 36E & Kewegama areas, while geologic re-interpretation could result in a game-changing discovery. A resource estimate update is expected in Q3 2017.

Red Pine Exploration Inc. (TSXV:RPX) is a gold and base metals focused exploration company with properties in Ontario and Quebec. The company operates the Wawa gold project, holding 60% interest in the project following the acquisition of Augustine Ventures in Q1 2017. The remaining 40% interest is held by Citabar LLP under an option/joint venture agreement. Red Pine is currently undertaking a 6km drill program and resampling over 42km of historic core to define additional gold resources at Wawa. The consolidation of the ownership structure coupled with the ongoing drilling and resampling program suggests meaningful resource growth is possible.

RNC Minerals (TSX:RNX) is a multi-asset mineral resource company focused on base and precious metals. The company’s producing assets include the Beta Hunt gold and nickel mine in western Australia that is expected to produce 65-70k oz Au in 2017 and a 30% stake in the Reed mine in Manitoba that is expected to contribute 4-5k tonnes Cu and 0.8-1.1k oz Au (30% basis) in 2017. Other properties include the wholly owned and shovel ready Dumont nickel project and a majority interest in the advanced high grade Ni-Cu-PGM West Raglan project in Quebec. In Q1 2017, RNC announced it has entered into an option agreement to purchase Westgold Resources Ltd.’s (ASX:WGX) South Kalgoorlie operations which, if acquired, could bring RNC’s annual production to over 125k oz Au.

SolGold Plc. (LSE:SOLG) is a copper and gold exploration company in the Andean copper belt focused on developing its flagship JV Cascabel project (85%) in northern Ecuador. Over the next two years, the company is planning 95,000m of drilling and exploration to test new targets, as well as extending the Alpala copper-gold deposit where the company previously drilled 18 holes over 23,700m. In addition, the company also wholly owns the Kuma project in the Soloman Islands and the Mount Perry project in Queensland, Australia.

Unigold Inc. (TSXV:UGD) is a Canadian-based exploration and development company focused on its gold projects in the Dominican Republic. The company's flagship 2M oz Au (39.5Mt at 1.59 g/t Au - Inferred) Neita project consists of multiple deposits and deposit types, located along the emerging Tireo Formation. The company has been focused on expanding higher grade zones within the deposit and recent results suggest the deposit is poised to grow. Unigold is in the process of renewing the Neita exploration concession; however, uncertainty exists around the status of renewal, as the Dominican government has yet to provide an official decision.

Victoria Gold Corp. (TSXV:VIT) is a gold exploration and development company with properties in the Yukon and Nevada. The company's 4.4M oz Au (215Mt at 0.65 g/t Au – all categories) Eagle gold project in the Yukon is shovel-ready and fully permitted. The project is expected to produce ~200k ounces of gold annually at operating costs below US$600/oz over a 10-year mine life. The company released an updated feasibility study in October 2016 and is planning to start construction in early 2017, pending financing.

Brixton Metals Corp. (TSXV:BBB) and Metanor Resources Inc. (TSXV:MTO) are also presenting at our conference; however, we are currently restricted.

Banner Participants

Argo Gold Inc. (CSE:ARQ) is a Canadian-based exploration company with projects in central and northwestern Ontario with the objective of establishing a portfolio of projects as metal prices improve. The company wholly owns the recently acquired Woco gold project near Red Lake, McVicar Lake gold project near Pickle Lake and the Hurdman silver-zinc project north of Timmins. In addition, the company owns the following projects in the Wawa area: Macassa Creek, Abbie lake and Rockstar Gold.

Banyan Gold Corp. (TSXV:BYN) is an exploration and development company with interest in acquiring gold projects in southeast Yukon. The company is focused on advancing its flagship asset, the Hyland gold project in the Yukon, which hosts ~396k oz AuEq (12.5Mt at 0.99 g/t AuEq – 0.6 g/t AuEq cut-off) with the potential to add more. A 2017 drill program is planned to follow up on targets identified in the 2016 program. In addition, the company will continue to evaluate prospective gold projects in the Yukon.

Rambler Metals and Mining Plc. (TSXV:RAB) is owner and operator of the producing Ming copper-gold mine, Nugget Pond mill and the Goodyear’s Cove transshipment facility in Newfoundland and Labrador. The company is undergoing a Phase II expansion program to grow from 650 tpd to 1,250 tpd and extend mine life to 21 years by Q3 2017. Longer term, the company plans for a Phase III expansion to increase throughput to 2,000 tpd. Over the next two years, the company is targeting annual saleable copper output of 16M lbs, up from 13M lbs.

Redstar Gold Corp. (TSXV:RGC) is a Canadian based exploration company focused on advancing its wholly owned Unga gold project in Alaska. Supported by a successful 2016 exploration program, the company announced a 2017 exploration and resource development program at the Unga gold project, which is expected to begin in April 2017. In addition, the company owns 30% of the Newman Todd project in Red Lake, Ontario and controls ~26.6% of NV Gold Corp. (TSXV:NVX), focused on gold exploration in Nevada.
 
Sarama Resources Ltd. (TSXV:SWA) is a gold exploration and development company with substantial land holdings in Burkina Faso. The company is focused on consolidating under-explored land holdings and in Q1 2017 completed the acquisition of the Bondi project (100%). Other properties include the Karankasso gold project (30.5% SWA, 69.5% SCA) of which Savary is the operator and the South Houndé gold project (50%) which Acacia Mining has elected to be the operator.

Savary Gold Corp. (TSXV:SCA)
is a Canadian exploration company and operator of the Karankasso JV project in Burkina Faso, holding 69.5% interest with Sarama Resources (TSXV:SWA) holding the remaining 30.5%. In Q4 2016, the company initiated a 21,000m, US$2.6 million drill campaign, its largest drill program to date. Current drilling is focused on extending in-pit resources along strike at the Karangosso, Diosso South and West Trend zones. The company expects to release a resource update in H2 2017.

Serengeti Resources Inc. (TSXV:SIR) is a Canadian-based exploration and development company focused on its JV Kwanika copper-gold project (95%) in the northern Quesnel Trough near Fort St. James, British Columbia. Other exploration projects include UDS, Milligan West, Jewel and Croy Bloom, all located in British Columbia. The company is planning a substantial drill program for 2017 to upgrade and expand the current resource, with a PEA planned for Q1 2017 with the potential to advance towards a pre-feasibility study.

Signature Resources Ltd. (TSXV:SGU) is a Canadian exploration company focused on advancing the historic Lingman Lake gold mine property in northwestern Ontario. The company plans to upgrade the historic resource estimate of ~235k oz Au to compliant reporting standards with the goal to double the resource in 2017. The company is planning a 10,000m drill program starting in Q2 2017, followed by additional drilling in 2018.

Tashota Resources Inc. (“TRI”) is a private junior exploration company focused on advancing its core projects which include the LaRose property in the Shebandowan Gold Camp in Ontario and properties in the Opinaca Gold Camp in James Bay, Quebec, and the Hemlo Gold Camp, adjacent to Barrick Gold’s (NYSE:ABX) Hemlo property, in Ontario. The company has planned a two-phased exploration program for 2017 at all three properties, Phase I will prioritize target areas and Phase 2 will consist of ~21,500m of drilling pending on results from Phase I.

Transition Metals Corp. (TSXV:XTM) is a project generator company focused on growing a portfolio of diamond, gold and base metals assets in Ontario, Saskatchewan and Nunavut. The project generator model that Transition operates under maximizes shareholder value by requiring partner funded exploration in return for a stake in the project. The company’s portfolio of assets consists of 30 projects including two privately held subsidiaries, Sudbury Platinum Corporation (SPC) and Canadian Gold Miner (CGM), owning 36% and 65% respectively.

Comstock Metals Ltd. (TSXV:CSL), Metalla Royalty & Streaming Ltd. (CSE:MTA) and Northern Superior Resources Ltd. (TSXV:SUP) are also banner participants at our conference; however, we are currently restricted.

Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
Red Cloud Klondike Strike Inc.
79 Wellington St. W. Suite 1630, PO Box 148
Toronto ON, M5K 1H1

Disclaimer
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.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report.

Company Specific Disclosure Details
Argo Gold Inc. - CSE:ARQ - None
Ascendant Resources Inc. - TSXV:ASND - 2
Ascot Resources Ltd. - TSXV:AOT - 3,4
Banyan Gold Corp. - TSXV:BYN - None
Barrick Gold Corp. – NYSE:ABX - None
Brixton Metals Corp.- TSXV:BBB – 2,3,4
Contact Gold Corp. – NA- None
Comstock Metals Ltd. – TSXV:CSL – 3,4
eCobalt Solutions Inc. - TSX:ECS – 1,2
Excellon Resources Inc. - TSX:EXN - 2,4
GoldQuest Mining Corp. - TSXV:GQC - 1,2,4
Gold Standard Ventures Corp. - (TSXV:GSV, NYSE:GSV) - None
IDM Mining Ltd. - TSXV:IDM - 1,2,3,4
Integra Gold Corp. - TSXV:ICG - 1,2,4,7
Kirkland Lake Gold Ltd. - TSX:KL - 1
Metalla Royalty & Streaming Ltd. - CSE:MTA – 2,3
Metanor Resources Inc. - TSXV:MTO – 2,3
Newmont Mining Corp. - (NYSE:NEM) - None
Northern Superior Resources Ltd. - TSXV:SUP – 3,4
Northern Vertex Mining Corp. - TSXV:NEE - 1,2,3,4
Otis Gold Corp. - TSXV:OOO - None
Premier Gold Mines Ltd. - TSX:PG - None
Radisson Mining Resources Inc. - TSXV:RDS - 1,2,3,4
Rambler Metals and Mining Plc. - TSXV:RAB - None
Red Pine Exploration Inc. - TSXV:RPX - 2,3,4,7
Redstar Gold Corp. (TSXV:RGC) - 2
Richmont Mines Inc. - TSX:RIC, NYSE: RIC - None
RNC Minerals Corp. – TSX:RNX – 2,4
Sarama Resources Ltd. - TSXV:SWA - 2,3,4
Savary Gold Corp. - TSXV:SCA - 2,3,4,7
Serengeti Resources Inc. - TSXV:SIR - None
Signature Resources Ltd. - TSXV:SGU - 4
SolGold Plc. - LSE:SOLG - None
Tashota Resources Inc. – NA – 2,4,6
Transition Metals Corp. – TSXV:XTM - None
Unigold Inc. - TSXV:UGD - 1,2,4
Victoria Gold Corp. - TSXV:VIT - 1,2,4
Westgold Resources Ltd. - ASX:WGX – None

1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.



 

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