RCKS talk

Friday, September 01, 2017 Derek Macpherson

ANX Site Visits: A Stable Base with Significant Growth Potential

Download Report  

This week we visited Anaconda Mining Inc.’s (TSX:ANX) Goldboro (Nova Scotia) and Point Rousse (Newfoundland) projects. Overall, we were impressed and believe the current valuation ascribed by the market does not adequately reflect both projects as they currently sit or the upside potential that they have. At Goldboro, we believe the current resource (830k oz at 4.95 g/t Au) has room to grow and does not properly account for the starter-pit potential that likely exists. We note that the company needs to increase its understanding of the mineralization prior to mining; however, the contemplated bulk sample would certainly help. Point Rousse provides a stable production base, generating enough cash flow to fund small exploration programs. We expect Point Rousse to operate well beyond the existing reserve life with the Stog’er Tight pits coming on later this year, likely to be followed by the recently discovered Argyle deposit. We note that the Point Rousse project hosts many other targets; however, a shortage of time and money has limited the company’s ability to advance them. Based on our site visit, and preliminary estimates, we believe that at its current market cap (C$26.7 million), investors are either paying for Point Rousse (~C$30-50 million based on our preliminary DCF) or Goldboro (C$41.5 million based on C$50/oz) suggesting good value at current levels. read more


Thursday, August 31, 2017 Derek Macpherson

NVO Details Karratha Exploration Activities

Download Report

Novo Resources Corp. (TSXV:NVO) provided an update regarding exploration plans for its Karratha gold project in Western Australia. Drilling will comprise of scout diamond core drill holes to test depth and thickness of the gold-bearing conglomerates, followed by large diameter RC holes to collect bulk samples. Trenching and drilling will begin at Purdy’s Reward where the exploration license is already in place and certain activities are permitted. Exploration will follow at Comet Well and the company’s surrounding tenements upon receiving exploration permits and once the tenements are granted. The company is expecting to be granted the tenements for Comet Well within 1-2 months and 6-9 months for the surrounding tenements. Greater detail concerning exploration plans is provided by the company in the August 31, 2017 press release. More updates are expected as exploration gets underway, specifically regarding the geology of Comet Well over the next couple of weeks. Based on our preliminary value for Beatons Creek (C$150-200 million) plus the C$400-560 million we would ascribe to Karratha based on our +10 million ounce estimate at Comet Well, we believe modest upside remains to the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project. read more


Thursday, August 31, 2017 Derek Macpherson

MQR Intersects New Zone; Drilling to Target Depth

Download Report  

Monarques Gold Corp. (TSXV:MQR) reported drill results from the 2017 program designed to confirm geological interpretation and orientation of zones as well as to make new discovers at depth at the company’s Croinor Gold deposit. Hole CR-17-547 intersected a new zone returning 5.22 g/t Au over 3.0m including 8.41 g/t Au over 1.0m at a depth of 560m (Figure 1), indicating Croinor is open at depth and along strike . Going forward, the company is planning to drill test mainly at depth but also the area to the east and west of Croinor. In addition, infill drilling will fill in the resource gaps to increase the indicated category. At C$129/oz, Monarques currently trades at a premium to peers (C$52/oz). In our view, this valuation is supported by Croinor’s stage of development (pre-feasibility study) and the acquisition of the Beacon Mill. read more


Tuesday, August 29, 2017 Derek Macpherson

SMT Exploration Adds Near-Term Value at Cusi

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE:SMTS) has reported additional results from drilling at the Santa Rosa de Lima zone adjacent to current operations at its Cusi mine, in Mexico. The phase two expanded program covered 14,000m in 22 holes, which along with other recent drilling (a total of 29,500m) will be used in an updated mineral resource estimate for the mine by year end. Drilling has intersected high grade silver as highlighted by hole DC17B743 grading 401 g/t Ag, 0.13% Pb, 0.19% Zn, 0.20 g/t Au over 4.5m and hole DC17B750 grading 465 g/t Ag, 0.54% Pb, 0.33% Zn over 13.8m. The zone’s proximity to current operations suggests this zone could benefit the mine in the near term. To note, additional exploration opportunity still exists at the Santa Rosa de Lima zone and further potential for growth exists at other zones on the property. Sierra continues to achieve exploration success and deliver improvements at its operating mines, we anticipate a strong 2017 from Sierra which should further enhance the company’s value. read more


Monday, August 28, 2017 Derek Macpherson

MTO Drilling Focuses on Shear Zones at Barry

Download Report

Metanor Resources Inc. (TSXV:MTO) reported results from ongoing surface drilling at its Barry project in Quebec. Drilling has been focused on gold bearing shear zones around the Barry pit, which are now presenting continuity over a 600m strike length and 400m vertically. Drilling was highlighted by 4.8 g/t Au over 9.0m (hole MB-17-83) and 7.1 g/t Au over 8.2m (hole MB-17-99). Importantly, these shear zones present an opportunity for underground mining versus the open-pit only scenario discussed in the 2016 PEA. Additional drilling will continue to identify and extend these shear zones. The company noted it is also working on permits to expand the camp in order to grow its workforce to support the construction of a ramp to gain underground access to other shear zones. We expect further results from the ongoing drill programs at both Barry and Bachelor Lake to be important near-term catalysts for the company along with FQ4 production and financial results. A third drill rig is operating at the Moss target, which is approximately halfway between the Barry Deposit, and Osisko Mining’s (TSX:OSK) Windfall Lake deposit. read more


Monday, August 28, 2017 Derek Macpherson

AQA Drilling Continues to Highlight Near-Pit Potential

Download Report

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

Download Report

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

Download Report  

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


SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2017 Red Cloud Klondike Strike Inc. All rights reserved.