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Friday, February 16, 2018 Derek Macpherson

2018 Outlook: Discovery, Batteries and Zinc

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With 2018 just underway, we have reviewed the data and identified three themes and related companies that we believe investors should pay close attention to this year. In the precious metals space, we believe discovery and other value creating catalysts are likely to drive investor returns versus metal price appreciation. We believe battery metals are going to continue to be strong, with both cobalt and lithium companies likely to have good years. Finally, zinc continues to be our favourite base metal; however, fundamentals appear to be improving for copper. For more details see the summary below, our video summary and our detailed report.   read more


Thursday, February 15, 2018 Derek Macpherson

Marlin Gold Intersects High-Grade Gold at Six Mile Hill

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Marlin Gold Mining Ltd. (TSXV:MLN) has reported drill results from Six Mile Hill, approximately 2km southwest of the Pearce Hill, which lies within the company’s wholly owned Commonwealth Au-Ag property in Arizona. Pearce Hill currently hosts a NI 43-101 Measured and Indicated resource of 984,900 oz AuEq. Six Mile Hill hosts multistage banded epithermal veins that are present in historic prospects that were drill tested in the 1980s by previous operators, who reported intersecting epithermal quartz veins without significant gold or silver content. Surface mapping conducted by Marlin supported the possibility of southeast extensions of the veined zones, which the company recently tested with RC drill holes 17SMRC01, 17SMRC02 and 17SMRC03, hitting Au-Ag mineralization. The company recently targeted this zone with further drilling and highlighted the intersection of 6.1m of gold mineralized quartz veins grading 8.15 g/t Au in drill hole 17SMRC10. The company has attempted to twin drill hole 17SMRC02 and returned a larger difference in gold grade than expected, which has suggested the necessity to conduct diamond core drilling instead of RC and the possibility that there is a coarse gold presence in the mineralization. The company continues to have exploration success at both La Trinidad and Commonwealth. Over the near term, exploration success should be positive catalysts for the company.  read more


Thursday, February 15, 2018 Derek Macpherson

SolGold To Drill Regional Target at Cascabel

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SolGold Plc. (TSX:SOLG) provided an update regarding exploration activities at the Aguinaga Prospect within the company’s Cascabel project in northern Ecuador. The prospect is located along a prominent topographic high (1,615m), ~3km northeast of the Alpala Deposit. Recent exploration on the Cascabel property to date has been focused on Alpala, with 5 of 15 Cu-Au targets already drilled (Figure 1). read more


Thursday, February 15, 2018 Derek Macpherson

Tinka’s Resource Expansion Drilling Continues to Succeed

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Tinka Resources Ltd. (TSXV:TK) has announced assay results for 9 holes from the company’s ongoing drilling program at its Ayawilca zinc project in Peru. All the drill holes announced by the company, which includes 5m grading 20% Zn, were testing for mineralization outside the existing mineral resource boundaries (Figure 1) and based on the results, we expect resource to grow. As at November 8, 2017, the company has an Inferred Mineral Resource estimate of 42.7 million tonnes grading 6.0% Zn, 0.2% Pb, 17 g/t Ag and 79 g/t In. read more


Thursday, February 15, 2018 Derek Macpherson

ANX Expands Drilling at Goldboro

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Anaconda Mining Inc. (TSX:ANX) has expanded its drill program at Goldboro to 7,000m and initiated the second stage of the program, 4,500m of drilling targeting the East Goldbrook and Boston Richardson gold systems, underexplored portions of the deposit to increase resources. The company recently announced results from the first five holes, which suggest resource expansion is possible beyond the current resource and recent PEA. We expected continued drill success to support a higher NAVPS. If we were to incorporate a 10% resource increase at Goldboro our NAVPS estimate would increase from C$1.00/share (was C$1.01) to C$1.03/share. Based on our initial estimates, we believe Anaconda is trading at discount to peers (0.47x NAV, peers 0.62x). In our view upcoming catalysts include, ongoing exploration at Goldboro and Point Rousse, improved cash flow in H2 2018 and ongoing development work at Goldboro which all should help close the valuation gap to peers. read more


Thursday, February 15, 2018 Derek Macpherson

Otis Reports Final 2017 Drill Results; Plans for 2018

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Otis Gold Corp. (TSXV:OOO) released final assay results from its 8,000m (25 hole) 2017 drill program at Kilgore, designed to follow-up on 2015 and 2016 drilling along the Aspen Corridor. Of the final 9 holes, significant bulk-tonnage was intercepted in 7 holes, highlighted by 1.05 g/t Au over 86.8m (17 OKC-366), 0.91 g/t Au over 137.2m (17 OKC-374), 1.05 g/t Au over 71.6m (17-OKC 376), and 1.41 g/t Au over 118.9m (17 OKC-377). Results extended Aspen-hosted mineralization 60m-90m at depth, displaying continuity of gold mineralization and notably, average grades were higher compared to the 2012 resource. In addition, results from a PQ-sized hole is planned to be released subsequent to further testing. During 2017, the company drilled 24 exploration holes and is planning 2018 exploration at both Kilgore and the Oakley Project, also in Idaho. At C$36/oz, Otis currently trades at a discount to peers (C$65/oz). We believe this valuation does not fully account for the potential resource growth at Kilgore. We expect 2018 drilling and the pending resource update for Kilgore to be important catalysts for the company. read more


Wednesday, February 14, 2018 Derek Macpherson

GTT Reports Initial Metallurgical Results from Saddle

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GT Gold Corp. (TSXV:GTT) reported average recoveries of 84% Au and 25% Ag from initial metallurgical test results for the Saddle Au-Ag discovery. Initial results suggest mineralization is amenable to standard cyanidation processing but we highlight that this is an unoptimized preliminary bottle roll test and more work is needed. The company recently reported final assay results from its 2017 drill program at the Saddle discovery, with plans to further explore Saddle South, Saddle Southeast and Saddle North through expansion and in-fill drilling in 2018. In addition, an initial NI 43-101 resource is a priority following this year’s drill program. Using C$50-75/oz (typical for high-grade underground deposits in good jurisdictions), the current enterprise value, implies a resource of 604-906k oz Au. Based on current drilling, we believe this is very possible, and that the market appears to be undervaluing the work to date and the exploration upside this deposit has. read more


Wednesday, February 14, 2018 Derek Macpherson

NVO Releases Results from Purdy’s; Starts Work at Comet Well

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Novo Resources Corp. (TSXV:NVO) has announced the start of the 2018 exploration program at its Karratha gold project and initiated drilling and trenching at Comet Well. Recent 300kg bulk samples from Purdy’s provide greater insight into grade distribution and indicate the penetration of gold nuggets into the dolerite footwall (Figure 1). Initial trenching and drilling at Comet Well indicate 30-35m of conglomerate thickness with metal detectors suggesting gold nuggets occur in multiple horizons above the basal contact, compared to Purdy’s where most nuggets occur at the base of the conglomerate sequence. Upcoming catalysts include the gold grade of the company’s first bulk sample above the minimum sample size of 5 or more tonnes, which is expected to be the first sample to go through the company’s new plant and to be released shortly.  read more


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