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Thursday, May 25, 2017 Derek Macpherson

Ascot Reports More Promising Results from Premier

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Ascot Resources Ltd. (TSXV:AOT) reported initial drill results from 44 holes of the 81 holes completed to date from its 2017 exploration program underway at its Premier property in British Columbia. In the 602 zone, hole P17-1273 returned 30.65 g/t Au over 6.05m from the down dip extension which has been unexplored. In the Northern Lights Main zone results included 66.1 g/t Au over 1.13m (P17-1242) within 10.4 g/t Au over 12.1m and 48.6 g/t Au over 1.00m (P17-1267) within 9.0 g/t Au over 7.5m. Results from the Northern Lights West Zone were highlighted by 4.05 g/t Au over 10.00 m (P17-1227), from an area which had been extended in 2016. Results continue to highlight the potential for a large high-grade underground resource at the past producing Premier mine, which implies a current valuation of C$85-130/oz, a premium to peers at C$73/oz, this is likely warranted because of the high-grades, existing infrastructure and other resources. We note that based on the current lower-grade resource Ascot trades at a discount to peers (C$58/oz). Based on Ascot’s cash position at the end of 2016 (C$29.1 million), the company appears to be well-financed for its planned exploration and remaining option payment of C$6.85 million (due June 2017). We believe Ascot is likely to continue the success demonstrated during the 2016 exploration program and that pending results from the 2017 drill program should support the company’s valuation. read more


Wednesday, May 24, 2017 Derek Macpherson

MLN Drill Results Adds Ounces to the Mine Plan

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Marlin Gold Mining Ltd. (TSXV:MLN) reported its second highest grade x thickness intercept from infill hole 17TRD50, which intersected 7.57 g/t Au over 63.35m including 29.34 g/t Au over 10m, 25m north of hole 17TRD44 at its La Trinidad mine in Mexico. This hole likely converts an area previously considered waste into ore and suggests that the significant positive grade reconciliation seen in the North end of the zone is possible in the South end. The company is planning to be mining this area in the later portion of this year. We expect continued exploration success from La Trinidad and Commonwealth, anticipated permitting news from its San Albino royalty and strong Q1 financial results (late May) to be positive catalysts for Marlin over the near-term.  read more


Tuesday, May 23, 2017 Derek Macpherson

IDM's Initial 2017 Drilling Highlights Growth Potential

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IDM Mining Ltd. (TSXV:IDM) announced favorable results from the first 6 of 23 holes completed to date at its Red Mountain gold project near Stewart, BC (Figure 1). The ongoing 2017 program is targeting exploration and resource expansion up to 300m north of the current resources. Results were highlighted by step-out hole U17-1229 from the AV zone, which included 12.95 g/t Au and 48.83 g/t Ag over 6.23m (capped - true width) and infill Hole U17-1233 from the JW zone which intersected 6.15 g/t Au and 37.69 g/t Ag over 25m (capped - true width). We view initial results positively, as all holes successfully intersected mineralization and demonstrate the potential for resource growth at Red Mountain. IDM continues to trade at a discount to peers on a P/NAV basis (0.48x vs. peers at 0.67x) and on a per ounce basis (C$45/oz vs. peers at C$67/oz). We expect additional results from the 2017 drill program and the advancing feasibility study, coupled with the project’s ongoing de-risking (engineering and permitting), to help close the valuation gap to peers. read more


Friday, May 19, 2017 Derek Macpherson

AMI Signs IBA on Kemess

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AuRico Metals Inc. (TSX:AMI) has signed an Impact Benefits Agreement (IBA) with the Tse Keh Nay (TKN) First Nations, advancing the Kemess Underground project. Including the recently completed Environmental Assessment for the Kemess Underground project, we view these steps positively and should help unlock the project’s value. Using AuRico’s guidance the company trades at ~15.0-17.0x royalty EBITDA, versus peers at 16.9x (2017e EBITDA). This implies the market is ascribing Kemess negligible value, which in our view should be worth ~C$100-125 million as compared to stand alone development stage peers. read more


Tuesday, May 16, 2017 Derek Macpherson

NVO Plans for a Busy Year at Beatons Creek

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Novo Resources Corp. (TSXV:NVO) announced exploration and development plans to advance its Beatons Creek gold project in western Australia towards production. A pre-feasibility study is expected to be completed by Q4 2017, which will include the plans for a conventional gravity and carbon-in-leach (CIL) processing system. To expand and upgrade resources at Beatons Creek, ~10,000m of RC drilling and ~800m of trench sampling is underway and is expected to be completed by mid-June. With the addition of Chris Goti, who previously oversaw permitting activities at the nearby Millennium Minerals Ltd. (ASX:MOY), the company is focusing on production-related permitting. Considering the recently closed C$15 million private placement, the company is well positioned to undertake the planned exploration and development activities. We view this update positively as the company continues to both expand resources and advance the project towards production. Novo trades at C$111/oz a premium to peers (C$77/oz), which is justified both on the project's potential for significant resource growth and its likely low capital cost. read more


Tuesday, May 16, 2017 Derek Macpherson

SWA Adds More Land in Burkina Faso

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Sarama Resources (TSXV:SWA) announced it will acquire 100% of the Botoro exploration property in southwest Burkina Faso, increasing the size of its ThreeBee project to ~660km2. The ThreeBee project comprises of Sarama’s three wholly owned properties, Bamako, Djarkadougou and Bouni properties, of which the Djarkadougou hosts the Bondi deposit (Figure 1). We view the acquisition positively, as it adds to the company’s regional land package in South Houndé belt and solidifies Sarama’s position as being the key piece for a larger player to consolidate the region. Sarama currently trades at C$13/oz, a steep discount to peers at C$40/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with likely work at its ThreeBee project (100% interest), may provide the necessary catalysts for the stock to close the valuation gap to peers. read more


Monday, May 15, 2017 Derek Macpherson

Marlin Hits Best Hole to Date at Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) reported drill results from its Commonwealth project, intersecting 1.56 g/t AuEq (0.83 g/t Au and 116 g/t Ag) over 102.5 m from Hole 17CDDH26, the best hole drilled on the property from a grade x thickness perspective. The hole was designed as a twin to a previous reverse circulation hole, hole E-9. We believe these results should benefit the existing resource, as historic RC holes were used to calculate the current April 2014 resource estimate. More twin holes are being reviewed. In addition, the company intercepted 0.98 g/t AuEq over 11.4 m and 1.04 g/t AuEq over 16.5 m, in the down-dip extension of the Footwall zone (Figure 1). We expect continued exploration success from Commonwealth and La Trinidad, anticipated permitting news from its San Albino royalty and strong Q1 financial results (late May) to be positive catalysts for Marlin over the near-term.  read more


Monday, May 15, 2017 Derek Macpherson

NEE Advances Infrastructure at Moss

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Northern Vertex Mining Corp (TSXV:NEE) provided an update on optimization activities from its Moss gold-silver project in Arizona. Permitting and design work is underway for the construction of a powerline which will replace diesel generators at the mine, a cleaner and more economic source of energy. In addition, the company signed a 5-year agreement with Tri-R Construction Inc. to sell waste rock aggregate, which also includes improving and maintaining roadways. The new advancements support the efforts to improve economics, as this permitted project moves towards production. Northern Vertex trades at C$101/oz a premium to peers (C$52/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


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