Quick Analysis

Future Upside Provides Excellent Entry Point For Fiore Gold

Pan Mine, Nevada

After a lengthy trading halt since June 12, Fiore Gold (F.V) started trading on October 2, having completed the business combination with GRP Minerals. This took quite a bit of time, as it was a fairly complex venture for both companies, with a lot of paperwork.  I view this deal as an accretive one, as a lot of tangible value through much more advanced assets was added, up to an estimated Net Asset Value of about C$120M in my view, and a lot of realistic growth potential. Apparently, not everybody had the same long term view for Fiore Gold as is needed in this case, the company now morphing into a long term growth production story instead of an exploration story, and a sell-off started immediately after opening of the markets:

Genesis Metals: Chevrier Phase I Drilling Completed, Phase 2 Program Commencing

Chevrier Gold project; IP anomaly

In between exploration success stories (for example GT Gold) or possible myths in the making (Novo Resources) taking center stage, Genesis Metals quietly completed the Phase I drill program, consisting of 4,900m of diamond drilling. Results were announced on October 3rd of 9 drill holes, and channel sampling. Management received two separate batches of results of the Phase I drill program, reporting 8 out of 9 holes testing greenfield IP anomalies in 2 target areas in (see image above in red) now in the first batch, and the remaining 13 drill holes focused on the Main Zone will come out in the second batch in about 3 weeks.

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.

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