Quick Analysis

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:

After Closing Of C$69M Equity Financing, Nemaska Lithium Remains On Track For Q2 2018 Production

Whabouchi Project; pegmatites

Nemaska Lithium (NMX.TO) reached two important milestones on July 8, 2016, as it completed its previously announced public offering for aggregate gross proceeds of $69M, and got uplisted from the Venture to the TSX. This financing was important, as the company needed cash to proceed with down-payments for long lead items for the main project, which in turn were needed to stay on course with the time schedule leading to production in Q2 2018.

A Critical Q & A With Paul Matysek, Executive Chairman Of Lithium X

Executive summary

  • Lithium X has experienced quite a runup during it's first four months of being listed, generating excitement but also negativity
  • After acquiring an Argentinean brine project, significant substance has been added to the story in my view
  • This Q & A with Executive Chairman Paul Matysek discusses a number of subjects, with the intention to provide useful insights about the company and its projects

True Gold Mining: A Speculative Growth Play Overcoming A Case Of African Discount

Executive summary

  • True Gold has one of the most profitable gold projects worldwide, with economics at a gold price of $1100/oz of an after tax IRR of 30%, NPV5 of $106M
  • This Karma project is fully financed and progressing through construction, and commencing production in Q1 2016
  • The company had to overcome a violent local demonstration, resulting in lots of damages, which halted the project out of nowhere
  • Mark O'Dea of controlling Oxygen Capital was unpleasantly surprised and immediately replaced CEO Melrose by himself, and quickly found a new CEO, Christian Milau, who was the CFO of 500,000 oz pa producing powerhouse Endeavour Mining
  • My guess is Milau didn't leave Endeavour for no reason

Blackheath Resources: One Of The Best Tungsten Explorers

Executive summary

  • Blackheath Resources is a tungsten explorer, and is earning in on the 70% owned Covas deposit in mining friendly Portugal
  • The company recently announced a maiden tungsten resource at Covas: 449,800 MTUs WO3 @0.42% Indicated resources and 767,100 MTUs WO3 @0.35% Inferred Resources
  • Blackheath also has two more tungsten projects: the more early stage but much bigger (5M MTUs WO3 @20% estimated by company) Borralha project, and the very early stage Bejanca project
  • The company has one of the best tungsten resources, which is a critical metal and in high demand

Reservoir Minerals: One Of The Best Copper Explorers

Executive summary:

  • Reservoir Minerals is exploring numerous prospects in South-East Europe for base/precious metals, next to a few early stage gold prospects in Africa
  • Its flagship project is called Timok, a large and very high grade copper/gold discovery in Serbia. A small part of it sports an already impressive NI43-101 Inferred resource of 3.7B lb copper @2.6% Cu, and 3.16M oz gold @1.5g/t Au, which contains a very high grade core of 1.1B lb copper @11.2% Cu and 1.1M oz gold @7.4g/t Au near surface
  • Existing drill results indicate a much bigger, deep porphyry deposit around the existing mineralized zone
  • Both Reservoir Minerals and giant copper producer Freeport McMoran concluded the JV in order to take the project to scoping study level
  • Freeport has a 55% JV interest, and is spending a $18.7M exploration budget for 2015 which is a big vote of confidence
  • The investment community has been waiting for a Freeport buyout since the maiden resource estimate in Jan 2014, my guess  is Freeport needs more confirmation

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