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Monday, April 03, 2017 Derek Macpherson

Marlin Continues to Deliver at La Trinidad

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Marlin Gold Mining Ltd. (TSXV:MLN) announced strong Q1 2017 production results, near-mine exploration success at La Trinidad and a further debt repayment, all of which we view positively. The company shipped, 18,875 ounces of gold, primarily as a result of the high-grades stacked in Q4 2016. We expect Q2 2017 gold shipments to also benefit from Q4 2016. The company continues to have exploration success near the existing pit, and with continued success may be able to extend the current ~2 year mine-life of La Trinidad. Finally, continued operating success, has provided the company the ability (C$6.7 in cash and refined gold) to repay another US$2 million on its unsecured credit facility, reducing the outstanding principal to US$30 million. We view the results to date positively and continue to expect the company to generate between US$17-19 million per quarter from La Trinidad over the next two years. The company is planning to release a detailed operating plan with Q4 2016 financials in April, at which time we expect to refine our estimates. Additional catalysts include continued near-mine drilling at La Trinidad, ongoing exploration results from Commonwealth and a permitting update from San Albino on which the company has a gold stream - all of which we expect to be positive for the share price.  read more


Monday, April 03, 2017 Derek Macpherson

IDM Continues to Advance Permitting at Red Mountain

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IDM Mining Ltd. (TSXV:IDM) announced it has finalized the Application Information Request (AIR) for its Red Mountain project. This is an important step in the permitting process as the AIR document determines the required contents of the Environmental Impact Statement (EIS). IDM expects to submit the completed EIS in Q2 2017. IDM continues to trade at a discount to peers on a P/NAV basis (0.52x vs. peers at 0.59x) and on a per ounce basis (C$47/oz vs. peers at C$56/oz). We expect the pending drill results and feasibility study for Red Mountain (Q2 2017), coupled with the project’s ongoing de-risking (engineering and permitting), should help close the valuation gap to peers.  read more


Friday, March 31, 2017 Derek Macpherson

GQC’s Regional Exploration Reveals Two New Zones

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GoldQuest Mining Corp. (TSXV:GQC) released results from eight additional holes drilled as part of the ongoing minimum 10km regional program at the company’s wholly owned Tireo property in the Dominican Republic. These results were highlighted by the discovery of two new gold zones Mineros Ridge and Vaca Valley zones. Results from both zones, appear to be similar to the lower grade halo surrounding the 2.5M oz AuEq (23Mt at 3.35 g/t AuEq) Romero deposit. Although follow-up drilling is required to determine these new discoveries value, we view the results positively as it continues to highlight GoldQuest’s regional exploration potential. Recent exploration success, along with the strategic investment by Agnico Eagle (TSX:AEM) have helped close the valuation gap to peers. However, we continue to believe that the current valuation does not fully reflect GoldQuest’s exploration upside. read more

Thursday, March 30, 2017 Derek Macpherson

AMI Royalty Update Highlights Portfolio Value

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AuRico Metals Inc. (TSX:AMI) provided an updated on its cash flowing royalties, the creation of a new royalty project acquired in the acquisition of Kiska and the addition of two additional non-producing royalties. We view the update positively, as it not only highlights the value of the company’s existing portfolio but reminds us of its ongoing focus to continue expanding its royalty portfolio. Three of the company’s existing royalties, Fosterville (2% NSR), Eagle River (0.5% NSR) and Hemlo (0.25% NSR on Williams Mine and 1.5% NSR on David Bell Property) all saw material reserve increases, 66%, 15% and 73% , respectively. As well, the company has optioned the Kliyul property, acquired via the acquisition of Kiska, and created 0.5% NSR on it through the option agreement with First Quantum (TSX:FM). Finally, the company acquired 1% NSR on exploration properties close to Goldcorp’s (TSX:G) Red Lake mine and a 0.75% NSR on exploration properties in the Rainy River district. read more

Sunday, March 26, 2017 Derek Macpherson

Following C$11.5 Financing MTO Upgrades Its Board

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On Friday, Metanor Resources Inc. (TSXV:MTO) announced the appointment of Greg Gibson and Akiba Leisman to its Board of Directors. The change adds experience to the team, as the company looks to grow production at its Bachelor gold mine and advance its exploration properties, specifically developing its Barry project in Quebec. Greg Gibson is currently the President and CEO of Sprott Mining and Jerritt Canyon Gold LLC. Akiba Leisman is a consultant to Wexford Capital LP where he oversees the precious metal public and private equity portfolios and is currently the Executive Chairman of the Board and Interim Chief Executive Officer of Marlin Gold Mining Ltd (TSXV:MLN). As a result of the recently completed C$11.5 million financing on March 21, 2017, Eric Sprott now owns 12.9% of the outstanding shares of Metanor or 19.5% on a partially diluted basis (assuming the exercise of all warrants) and Wexford Capital LP now owns 14.1% of the outstanding shares of Metanor or 19.7% on a partially diluted basis. We expect the board change, strong shareholders and the recent financing to be positive catalysts for the stock and may be the initial driver for a re-rating relative to peers.  read more


Friday, March 24, 2017 Derek Macpherson

NEE Adds C$5M from Warrant Incentive Program

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Northern Vertex Mining Corp. (TSXV:NEE) announced it has completed the warrant exercise incentive program announced on February 17, 2017. The purpose of the program was to provide funding for the ongoing development plans and construction of the Moss gold-silver mine in Arizona. Gross proceeds of C$5,000,054 were raised through the exercise of 10,713,608 outstanding unlisted warrants. For holders who exercised their warrants under the program, the company issued 5,356,804 common share purchase warrants, whereby each incentive warrant entitles the holder to purchase an additional common share of the company at a price of C$1.00 per common share until March 24, 2021. At C$103/oz, Northern Vertex currently trades at a premium to peers (C$55/oz). In our view, this premium valuation is 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 from the Phase III engineering work or the ongoing exploration program. read more


Thursday, March 23, 2017 Derek Macpherson

Ascendant Continues Optimization at El Mochito

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Ascendant Resources Inc. (TSXV:ASND) provided an update on its ongoing optimization program at its El Mochito Mine in Honduras. Throughout the majority of March, the company mined and milled on average 1,745 tpd (vs. 1,600 tpd in January), noting a sustainable processing capacity target of 2,200 tpd. The company expects that ongoing productivity improvements should steadily ramp-up throughput, achieving planned throughput by year end. In addition, the company is implementing a maintenance program to improve equipment availability and support higher production rates. On March 9th, the company completed its first lead concentrate shipment from El Mochito, selling ~1,500 tonnes. Negotiations are underway to complete a new Collective Bargaining Agreement, we expect further results from the agreement coupled with the ongoing optimization program to result in an operational turnaround, positioning Ascendant to benefit from the improving zinc price environment. read more


Thursday, March 23, 2017 Derek Macpherson

EXN's Optimization Program Nearing Completion

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Excellon Resources Inc. (TSX:EXN) reported financial results for Q4 2016 and 12-months ended 2016 including an update on its ongoing optimization program at its Platosa Mine in Durango, Mexico. Costs for Q4 were much higher than the expected run-rate; however, this incorporates costs of the ongoing optimization program. The company anticipates operations to achieve higher rates of production and lower costs during H2 2017, when the optimization program is complete. While Excellon currently trades at a premium to peers; we believe this reflects the market's anticipation for improved production and costs later this year.  read more


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