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Tuesday, February 06, 2018 Derek Macpherson

Novo Moving to 5 tonne Bulk Samples; Secures Test Plant

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Novo Resources Corp. (TSXV:NVO) has secured a test plant for processing 5 tonne bulk samples from its Karratha Gold Project. The company has determined due to the nuggety nature of mineralization, a larger sample size is necessary to provide a better understanding of grade. Samples to date have been around ~300kg. The newly secured test plant is expected to process 3 samples per week, with a 4 week turnaround, faster compared to the current 8 week turnaround for smaller samples. We view this positively for investors, as Novo should be able to get bulk sample results to market in a timelier manner; however it does not alter our fundamental view of the company. We also highlight that while the larger size should provide better information on the gold distribution of this unique deposit, the company is still working to determine the ideal sample size and even larger samples may be required to produce data of sufficient quality and accuracy to generate a resource. We note that the pending sample results are of the ~300kg size. Upcoming sample results should be an important catalyst for the stock as the company continues to determine the appropriate course of action regarding exploration methods. We continue to believe the recent pullback following Novo’s exploration update in late December has created an opportunity for investors. read more


Tuesday, February 06, 2018 Derek Macpherson

NEE Nears First Gold Pour at Moss

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Northern Vertex Mining Corp. (TSXV:NEE) has started stacking ore on the recently completed leach pad, in preparation for the first gold pour at Moss expected this quarter. The company is ramping up production towards 2,500tpd then to 5,000tpd, 7,800 tons have been stacked week-to-date. The crushing plant has been tested and commissioned. The processing plant continues to be commissioned, processing is expected to begin in 10 days. The refinery furnace is expected to be commissioned next week. The power station is online and is supplying power to the crushing plant and processing plant. The company continues to advance the mine and remains on schedule for the first gold pour in Q1 2018. Northern Vertex trades at C$164/oz a premium to peers (C$50/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and in the late stages of construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, February 06, 2018 Derek Macpherson

BTR Continues to Expand Gladiator

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Bonterra Resources Inc. (TSXV:BTR) continues to expand its Gladiator Gold Deposit, reporting positive results from the ongoing resource development program. The North, Footwall and Main Zones have been extended by 200m down plunge to the east, intersecting 6.2 g/t Au over 1.9m, 4.8 g/t Au over 3.5m and 4.9 g/t Au over 1.8m (Hole BA-17-53B). Drilling to date has confirmed a strike length of 1,200m, at a depth of 1,000m, the deposit remains open in all directions. Step-out and definition drilling continues at Gladiator, with four drills in operation. Supported by recent exploration success we continue to believe Bonterra is well-positioned for growth in one of Canada’s most active exploration camps. Bonterra currently trades at C$70/oz, a slight premium to peers (C$65/oz). Given our expectation for meaningful resource growth at its flagship Gladiator deposit (update planned for H2 2018), Bonterra appears to be trading at a discount to peers; C$29/oz if you assume a 2M oz Au resource at Gladiator.  read more


Tuesday, February 06, 2018 Derek Macpherson

Anaconda Mining: Squeezing Value Out of Atlantic Canada

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We recently took the time to dig deeper into Anaconda Mining Inc. (TSX:ANX, $0.395) and are publishing our initial estimates. We came to the conclusion that Anaconda is an undervalued Canadian producer with significant medium-term cash-flow growth on the horizon and near-term catalysts that should close the valuation gap to peers. A summary of our work can be found in this video or below, and our full report can be downloaded hereread more


Monday, February 05, 2018 Derek Macpherson

FCC Hits Disseminated Cobalt

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First Cobalt Corp. (TSXV:FCC) has intersected 30m of disseminated cobalt mineralization at the Keeley Mine in the southern portion of the Canadian Cobalt Camp. Drill results from the company’s 2017 drill program support the existence of a broad zone of cobalt mineralization with approximately 350m of strike length associated with the historically mined Woods Vein and other transecting structures (Figure 1). The company intersected 15.7m of 0.12% Co (KF-WV-0013), including 6.2m at 0.21% Co, which reflected similar mineralization in grab samples from surface. Intersecting near-surface cobalt mineralization outside the veins historically mined was one of the company’s main objectives for 2017. The drilling confirms previous prospecting at surface and will now be followed by drilling at the company’s Bellellen and Cobalt North targets. Ongoing exploration activities, including sampling and the recent initiation of the structural control study, are valuable in providing key geological information. We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. We expect results from the ongoing exploration program to be an important upcoming catalyst. read more


Friday, February 02, 2018 Derek Macpherson

FCC Hits First Hole with Disseminated Mineralization

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First Cobalt Corp. (TSXV:FCC) reported encouraging results from drilling near the historic Keeley mine. Results intersected 25m of mineralization, returning 106.2 g/t Ag over 13.7m including 445 g/t Ag over 3.0m (KF-K3-0001). Although it is very early, this suggests disseminated mineralization is present and is an important part of the company’s thesis that disseminated mineralization exists in a camp that has historically been only associated with narrow vein mineralization. Besides these drill results, the visual results from the muck-pile sampling program suggest disseminated mineralization is possible. Ongoing exploration activities, including sampling and the recent initiation of the structural control study, are valuable in providing key geological information. We continue to believe the company’s unique attributes, including its land position and infrastructure are likely to see First Cobalt trade at a premium to other cobalt exploration peers. We expect results from the ongoing exploration program to be an important upcoming catalyst. read more


Friday, February 02, 2018 Derek Macpherson

ADZN Updates El Domo Resource

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Adventus Zinc Corp. (TSXV:ADZN) reported an updated mineral resource estimate for the El Domo VMS deposit, at its Curipamba project (75%) in Ecuador. Positively, the additional drilling completed since the last resource update (9,765m - 33 holes) allowed the conversion of inferred tonnes into the higher confidence indicated category, this resulted in a 45% increase in Indicated tonnes and a 32% decrease in inferred tonnes. We note that the overall tonnage increased by 14%, however, the overall ZnEq grade declined by about 21%, this is partially driven by a lower NSR cut-off grade and the use of higher metals prices. As well, the new resource model is structurally based and allows for a reduced area of influence for individual drill holes, resulting in a more conservative grade estimate. As part of the US$7M drilling budget planned (2 rigs, 18,000m) for Curipamba in 2018, some infill drilling is planned, which has the potential to improve grades over this updated resource. The company is well-funded, after closing a C$10 million financing in December 2017. Adventus continues to trade at C$0.012/lb ZnEq, a discount to peers at C$0.017/lb ZnEq. Upcoming drilling should be an important catalyst for the company. read more


Wednesday, January 31, 2018 Derek Macpherson

RCKS Drilling Deeper Lunch; A Focus on Ecuador

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Yesterday, Red Cloud Klondike Strike Inc. (RCKS) hosted another installment of our Drilling Deeper Lunch series, this time featuring four companies focused in exploration and development in Ecuador. Since the implementation of the Ministry of Mining in Ecuador in 2015, the Ecuadorian government has embraced mining as a key source of foreign investment, emphasized by cost advantages, infrastructure and an engaged workforce. Efforts have been recognized by the increase in the number of companies exploring in Ecuador, with two projects under construction. Ron Hochstein, President & CEO of Lundin Gold Inc. (TSX:LUG), highlighted the country’s recent commitment to mining, discussing the company’s experience developing Fruta del Norte. Presentations followed from explorers in Ecuador; Adventus Zinc Corp. (TSXV:ADZN), Aurania Resources Ltd. (TSXV:ARU), Solgold Plc. (TSX:SOLG). read more


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