RCKS talk

Thursday, February 22, 2018 Derek Macpherson

ADZN Monetizes Non-Core Newfoundland Zinc Projects

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Adventus Zinc Corp. (TSXV:ADZN) has announced an agreement to monetize its non-core Newfoundland Zinc projects, generating value from these earlier stage projects. Adventus, Canstar Resources Ltd. (TSXV:ROX) and Altius Minerals Ltd. (TSX:ALS) have announced that they have entered an agreement whereby Canstar will acquire the Newfoundland base metal exploration assets of Adventus and the Daniel's Harbour Zinc Project from Altius in exchange for the issuance of common shares of Canstar to Adventus and Altius, a funding commitment from Altius of $500,000 as part of a $750,000 private placement. Canstar’s objective is to consolidate the majority of the Buchans Camp and add three high-quality Newfoundland zinc projects to its portfolio. This transaction enables Adventus to monetize 100% of its interest in its land package located in the Buchans camp, which may allow the company to focus on its El Domo project while maintaining an equity interest in Canstar. Adventus is currently well-funded, after closing a C$10 million financing in December 2017. Assuming the completion of this proposed transaction, Adventus trades at C$0.012/lb ZnEq (C$0.014/lb ZnEq if not completed), a discount to peers at C$0.016/lb ZnEq. Upcoming drilling should be an important catalyst for the company. read more


Thursday, February 22, 2018 Derek Macpherson

RCKS Charts: NVO, GTT, MAW & MQR

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In this edition of RCKS Charts, Keith has evaluated Novo Resources Corp. (TSXV:NVO), GT Gold Corp. (TSXV:GTT), Mawson Resources Ltd. (TSX:MAW) and Monarques Gold Corp. (TSXV:MQR).  read more


Thursday, February 22, 2018 Derek Macpherson

FCC Shifts Drilling Focus to Cobalt North Targets

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First Cobalt Corp. (TSXV:FCC) has completed its maiden drill program in Cobalt South and has now begun drilling in Cobalt North, near the historic Drummond, Kerr and Conisil mines. The company is planning to drill a total of 16 holes for 3,500m to follow up on previously identified high-grade Co-Ag polymetallic mineralization found in muckpile grab samples. Drill targets at Cobalt North are based on the company’s new 3D geological model that was compiled using extensive historic data compilation and 2017 regional field mapping. We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. We expect results from the ongoing exploration program to be an important upcoming catalyst.  read more


Thursday, February 22, 2018 Derek Macpherson

Monarques to Drill 50,000m in 2018

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Monarques Gold Corp. (TSXV:MQR) is planning to drill 30,000m at Beaufor and 20,000m at Croinor to extend the mine life at Beaufor and increase the size of the deposit at Croinor. Drilling at the Beaufor mine will consist of 14,000m of infill drilling and 16,000m of exploration drilling to expand the projects resource base with the goal of extending the mine life. The main targets at Beaufor for 2018 drilling include Zone Q, Zone 1700, Zone 173, the western shear and the Beaufor fault at depth. The drilling program at Croinor is aimed at testing the mineralization to the east-west and at depth in addition to conducting infill drilling in areas with insufficient data. At C$21/oz, Monarques currently trades at a significant discount to producing and development stage peers (C$40/oz). In our view, this valuation does not properly reflect the company’s recent acquisitions and we believe the upcoming resource expansion drilling and technical studies should help close the valuation gap to peers.  read more


Tuesday, February 20, 2018 Derek Macpherson

Brixton Hits High-Grade Cobalt in Cobalt

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Brixton Metals Corp. (TSXV:BBB) has announced initial drill results from its Hudson Bay Project located in the Cobalt Camp of Ontario. The company highlight the intersection of 1.00% Co, 11.10 g/t Ag, 0.95% Cu and 0.72% Ni (1.25% CoEq) over 0.80m from 52.20m depth in drill hole HB18-01 and 0.28% Co, 8.30 g/t Ag, 0.15% Ni and 0.18% Cu (0.34% CoEq) over 1.83m from 53.17m depth in drill hole HB18-03. The Hudson Bay Mine previously produced high-grade silver with cobalt as a by-product, and after a detailed data review, the company is now targeting both high-grade silver and cobalt mineralization at its Cobalt camp projects. The company has already completed 1,500m of drilling on the property, which includes these first three drill holes that have all been successful in intersecting Co-Ag mineralization. We note that based on peers within, Brixton’s 2,516ha land position in Cobalt, implies that the company is significantly undervalued, on this asset alone. For comparison, First Cobalt (TSXV:FCC) trades at 1.7 cents per hectare, while Brixton trades at 0.6 cents per hectare. This suggests to us that, especially when adding in Hog Heaven and the company’s other assets, the share price has the potential for meaningful appreciation.  read more


Tuesday, February 20, 2018 Derek Macpherson

NEE Progressing Towards First Gold Pour

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Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has entered the final stages of commissioning at the Moss Mine. The company has continued to crush and load ore from the mine to the leach pad, which now is covered by 21,775 tonnes of crushed ore. Leaching is underway, and with Merrill Crowe, plant in the last stages of commissioning, first gold pour is still possible in this quarter. As well, the company has drawn down the final US$3 million of its US$6 million working capital facility from its major shareholder, Greenstone Resources II L.P. While this, company is highly levered at this critical stage as it transitions from construction to production, there is some protection for equity investors as we would expect Greenstone (holds ~30% of the equity) to bridge a short-term financial gap to protects its investment if required. Northern Vertex trades at an EV/oz premium to peers (C$237/oz vs. peers at C$59/oz), which we view as warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, February 20, 2018 Derek Macpherson

Northern Empire Appears to Expand Sterling

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Northern Empire Resources Corp. (TSXV:NM) intersected 6.07 g/t Au over 7.92m (STR17-039C) and 2.44 g/t Au over 3.90m (STR17-049C – partial results) outside the current resource model. This suggests to us that resources at the permitted Sterling mine are likely to grow beyond the current 269koz Au (2.31Mt grading 3.63 g/t Au). Recent results continue to support the company’s resource model at the Sterling mine, which is considered to be relatively narrow, high grade and possess excellent metallurgy. In addition, the company has staked ground on the southwestern flank of the Bare Mountains, along the Gold Ace-Daisy structure, which hosts its Daisy deposit. Following, recent outperformance of the companies share price, Northern Empire now trades at a premium to peers on a EV/oz basis (C$102/oz, peers C$73/oz). We believe the market is starting to reflect, the value of Sterling and the potential of the company’s Crown project to the north, but recent drilling success by Corvus Gold (TSX:KOR) at its Mother Lode project (surrounded by Northern Empire ground) suggests there is additional room to the upside. read more


Monday, February 19, 2018 Derek Macpherson

SolGold Drilling Likely to Expand Alpala Resource; More Results Pending

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SolGold Plc. (TSX:SOLG) reported additional results from drilling at the Alpala porphyry copper-gold deposit at its Cascabel project in northern Ecuador. Results were positive suggesting resource expansion is likely at Alpala. Highlights include, 0.54% CuEq over 1100m, including 0.76% CuEq over 164m, and 0.75% CuEq over 224m (Hole 26-D3), as well as 0.80% CuEq over 824m, including 0.93% CuEq over 576m, and 1.15% CuEq over 262m (Hole 33). Addition results are pending for holes 36, 37, 39, 42 and 43, which are expected to also expand the resource. Importantly, the company noted hole 37 suggests an extension to the northwest towards the Trivinio prospect. Based on the maiden resource of 16.18 Blbs CuEq (0.3% CuEq cut-off), SolGold trades at C$0.035/lb versus peers at C$0.028/lb. Considering the exploration upside and significant scale of the Cascabel property as a whole, we view the premium as warranted and unlikely to fully account for its potential. Looking ahead, we believe the planned PEA, along with what is likely to be a steady stream of drill results should provide SolGold continued momentum in 2018, likely expanding the valuation gap to peers. read more


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