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Monday, August 28, 2017 Derek Macpherson

AQA Drilling Continues to Highlight Near-Pit Potential

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Aquila Resources Inc. (TSX:AQA) reported additional drill results from its ongoing drill program at its Back Forty project in Michigan. Drilling continued to target the Pinwheel, Deep Zone and Main Zone, all of which are located outside of the proposed open pit. In the Deep Zone, located below the proposed pit, three holes intersected mineralization outside of the known resources including the upper part of the Tuff Zone and 90 Gold Zone. In addition, both holes LK-17-526 and LK-17-527 intersected mineralization down-dip of Pinwheel. Results from the program continue to highlight the project’s exploration potential and ability to add resources. In Q3 2017, results are expected to be released from drilling which targeted a new mineralized zone 500m from the proposed pit. Aquila trades at a premium to peers on an EV/lb basis (C$0.021 vs. peers C$0.016). We believe the premium valuation is warranted given the company’s advanced permitting stage, good jurisdiction, exploration upside and stage of development. We expect additional exploration results and the pending feasibility study along with the final permit needed for construction as important near-term catalysts for the company. read more


Monday, August 28, 2017 Derek Macpherson

VIT Ups Exploration Budget; Drilling Continues

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Victoria Gold Corp. (TSXV:VIT) reported results from 12 holes drilled at its Olive-Shamrock Zone from ongoing exploration on its Dublin Gulch property in the Yukon. Results continue to return high-grade results over good widths, as highlighted by 2.78 g/t Au and 33.15 g/t Ag over 22.5m (DG17-848C) and 2.24 g/t Au and 2.01 g/t Ag over 16.5m (DG17-845C). Notably, due to continued exploration success the company has increased its exploration budget from C$6.2 million to C$12.5 million. Drilling focused on Olive-Shamrock is now complete (24 holes over 5,000m) with results from 9 holes pending. The company is now targeting the Spinach Zone located north of Shamrock. We expect continued exploration success to be a positive catalyst for the stock and should help demonstrate the exploration upside that exists. Victoria currently trades at a discount on a per ounces basis, or C$33/oz versus peers at C$57/oz, which we believe does not take into account the exploration potential of the Dublin Gulch property or that the project has just transitioned from shovel ready to under-construction. read more


Monday, August 28, 2017 Derek Macpherson

GQC Expects Delays Converting Romero to an Exploitation Concession

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Along with releasing Q2 financial results GoldQuest Mining Corp. (TSXV:GQC) provided context on the recent update from the Ministry of Energy and Mines in the Dominican Republic regarding the granting of exploitation and exploration permits in the country. The Ministry has announced that no new exploitation concessions will be granted over the next 90 days and that no new requests for exploration concessions will be accepted over the next six months. While GoldQuest has no immediate need or plans to apply for new exploration concessions, it is in the process of converting its Romero concession from exploration to exploitation. In our view, this delay is unlikely to impact the final outcome of this conversion; however, the market may view this as increased uncertainty which may negatively impact GoldQuest's share price over the short term. We highlight that this does not impact the company’s recent Cachimbo discovery (on an exploration concession) and with a reported cash balance of C$25.7 million the company is well funded to advance this discovery. GoldQuest currently trades approximately in line with peers at $30/oz (peers $29/oz). We continue to believe that the current valuation does not fully reflect the exploration potential of GoldQuest’s wider land package. We expect continued exploration drilling, along with follow-up drilling at Cachimbo are likely to be positive future catalysts for the stock. read more


Sunday, August 27, 2017 Derek Macpherson

Sierra Identifies Near-Term Potential at Cachi-Cachi

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Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported results from brownfield exploration targeting the Escondida zone within the Cachi-Cachi Mine and the northern extension of the Esperanza orebody. Results identified a new discovery intersecting high grade silver, zinc and lead over good widths, as demonstrated by hole ESC-17-01 returning 94 g/t Ag, 3.41% Pb, 0.01% Cu, 7.91% Zn and 0.23 g/t Au over 7.6m as well as hole ESC-17-05 returning 104 g/t Ag, 5.83% Pb, 0.09% Cu, 10.59% Zn and 0.71 g/t Au over 3.8m. The new discovery (+300m in strike) highlights the possibility for further discoveries between Esperanza and Cachi-Cachi that could be added to production. The company expects to mine the Escondida zone in 2018 and remains focused on exploration. We anticipate a strong 2017 from Sierra as operations continue to improve and exploration advances, all of which should further enhance the company’s value. read more


Sunday, August 27, 2017 Derek Macpherson

SCA Discovers New Zones & Extends Mineralization at Karankasso

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Savary Gold Corp (TSXV:SCA) reported results from multiple targets tested during Phase 3 of the exploration program at its Karankasso JV Project (69.5% SCA/30.5% SWA), in Burkina Faso. 109 holes were drilled over 6,747m which tested the Karangosso Zone, Serakoro 1 West, Diosso South Zone, Kueredougou West Zone, Serakoro 1 Main, Central Auger Anamoly and S-Nosa Zone. Notably, drilling in Karangosso discovered two new zones (AC-17-029 and AC-17-036) and further extended mineralization in the south and north, both of which require follow-up. In the Serakoro 1 West, drilling also identified a new zone intersecting 2.78 g/t Au over 5m (AC-17-064). The company noted some targets were not successfully tested due to weather, as well as follow-up drilling was minimal as a result of lab delays. A resource update is expected to be completed at the end of Q3 2017, which will include drilling since the last resource update in Q4 2015 (Inferred 671k oz Au). Additional drilling is planned once the update is complete. Savary currently trades at a discount to peers (C$16/oz vs. peers at C$49/oz), we expect continued exploration success along with the planned resource update should benefit the company’s share price in the near term. read more


Sunday, August 27, 2017 Derek Macpherson

Ascot’s Drilling Focuses on New Subzones

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Ascot Resources Ltd. (TSXV:AOT) reported results from 33 holes completed to date from its 2017 exploration program underway at its Premier property in British Columbia. Drilling continues to target the recently discovered higher grade Ben subzone, which intersected 80.90 g/t Au over 2.2m within 17.03 g/t Au over 11m in hole P17-1378. In addition, a newly identified subzone located below the Ben subzone continues to be defined. Once initial results are completed, the company is planning to infill both subzones to define resources. Step out drilling is also underway on the property in the Premier Mine area north and west of Sebakwe, as well as areas that may connect Big Missouri and Martha Ellen including the west extensions of Martha Ellen. Results from 50 holes are pending, exploration results continue to highlight the potential for a large high-grade underground resource (2-3 million oz Au) at the past producing Premier mine. This implies a current valuation of C$76-115/oz, a premium to peers at C$63/oz, which 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$52/oz). We expect additional results from the ongoing drill program to demonstrate the projects large-scale potential. read more


Sunday, August 27, 2017 Derek Macpherson

ANX Reports FYE 2017; Site Visit Coming Up

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Anaconda Mining Inc. (TSX:ANX) reported complete financial and operating results for FYE 2017. After ending the year with a strong FQ4 2017, the company reported C$25.7 million in revenue selling 15,562 oz Au maintaining its revised mid-year guidance for the year. In 2018, the company is expecting to sell 15,500 oz Au with production originating from the Pine Cove Pit in Q1-Q3 while transitioning to the Stog’er Tight pit in early 2018. Our VP Mining Analysis, Derek Macpherson will be visiting the company’s properties in Newfoundland and Nova Scotia next week. read more


Thursday, August 24, 2017 Derek Macpherson

RCKS Charts: RPX & ANX

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We are expanding our product offering to further provide value to our readers - as such we have launched RCKS Charts. Keith Edwards is a recognized expert in the field of technical analysis who has been doing this type of work for a number of years. His propriety technique helps identify trends early and we believe this should augment the fundamental work we already provide. For our first edition, Keith has evaluated Red Pine Exploration Inc. (TSXV:RPX) and Anaconda Mining Inc. (TSX:ANX). read more


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