Quick Analysis

A Critical Q & A With Nemaska Lithium CEO Guy Bourassa

It has been relatively quiet around Nemaska Lithium the last 6 months or so, after it started construction on the Phase I plant and completed several early stage parts of the Whabouchi Mine, besides looking for capex financing packages along the way. Although lithium product prices held up very well at relatively high levels and are even slowly rising again:

Source: Galaxy Resources/CJ Securities by Seekingalpha

the Canadian stock market sentiment turned a bit soft/neutral, so an advanced and permitted lithium development story looking for major funding often doesn't get the most love from investors in this kind of climate, as can be seen in this chart:

Genesis Metals Raises C$4M, Welcomes Eric Sprott And Osisko Mining As Significant Shareholders, Drilling At Chevrier Starts In July

After compiling, interpreting and modelling all available data and surveys, and defining targets, Genesis Metals needed cash to advance their flagship Chevrier Gold project to the next stage: commencing of drilling. Management worked hard to gain interest, and it seemed they succeeded in their aim to get the company funded to drill well into 2018. On top of this, they welcomed two of the most respected and well-known names in the business, Eric Sprott and Osisko Mining as significant shareholders, which is impressive. The company completed 2 rounds of financing to achieve this. 

On June 5, 2017, Genesis Metals closed its C$3.25-million non-brokered private placement previously announced on May 24, 2017. Eric Sprott, Delbrook and other large, strategic institutional investors also participated in this first big round.

South Ayawilca Step Out Drilling Continues To Deliver Strong Results For Tinka Resources

The latest set of drill results recently released by Tinka Resources seems to further solidify Ayawilca's reputation as a Tier I zinc asset in the making. Not only confirmed hole A17-063 the thick South Ayawilca mineralization with one of the best intersections of zinc mineralization at Ayawilca to date, a world class 47.7 metres grading 11.3% zinc. Just as important was hole A17-066, which extended the strike of the South Ayawilca in eastern direction, and delivered first proof of the idea that South Ayawilca and Central Ayawilca might be connected. The hole reported 3.5 metres at 7.4 % zinc and another 5.0 metres at 11.3 % zinc at a slightly greater depth. I have colored these holes in red:

A Critical Q&A with Todd Hilditch, CEO of Terraco Gold

 

After a relatively long period without significant news, Terraco Gold seems to have shifted a gear now, and after meeting in Vancouver around the latest VRIC show I felt it was an opportune time to interview CEO Todd Hilditch on a number of subjects. First Paul Zink, a royalty veteran was contracted, and shortly afterwards on February 1 an additional royalty was acquired from the Schmidt Family Mining Partnership LLC on the Spring Valley Gold Project in Nevada. This is a 0.5% Net Smelter Returns royalty (NSR royalty) on lands within a one-half mile perimeter of the Schmidt Claim Block. Red Kite Mine Finance also had a right to, and purchased, an identical royalty on the same lands, for the same price, USD$567,895. Furthermore, according to the news release:

Terraco Gold's New Hire Paul Zink Could Be Transformational

Terraco Gold (TEN.V) made headlines with their Spring Valley royalties transaction in May 2016. Spring Valley is a multi –million ounce gold project in Nevada owned by Waterton Global, advanced by Barrick to a PFS level by spending over US$70M before Waterton bought it for appr US$83M. Unfortunately for Terraco, but typical of private equity firms, the Spring Valley news flow slowed down after this (though industry sources believe they are improving the Spring Valley project behind the scenes as they did in the below example). This scenario is not new to Waterton, and by way of example they have made a very decent return by buying assets on the cheap (in bankruptcy at times) and quietly improving them before selling to a major mining company.

Excelsior Mining Closes US$14M Financing With Greenstone, Closes In On Permits

 

Excelsior Mining experienced significant positive sentiment of late, with several good reasons to back it up, too. For starters, the company is closing in on the announcement of a Feasibility Study, which is expected in December 2016. After talking to management I got the impression that FS economics wouldn't necessarily differ a lot from the very strong PFS results, which would be impressive again at smaller margins of error. Another reason is the election of Donald Trump, who seems to be pro-mining and against long-winding procedures of projects (which he probably hates as a real estate developer), which could bode well for mining projects in permitting stages in more or less difficult jurisdictions. The most important one was the copper price printing new 52w highs for some weeks now:

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