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Thursday, February 09, 2017 Derek Macpherson

VIT Highlights Regional Exploration Potential Near Eagle

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On February 8th, 2017, Victoria Gold Corp. (TSXV:VIT) hosted a workshop to highlight the exploration potential of its Yukon properties. The previously announced 2017 exploration program is designed to explore the regional targets nearby the company’s shovel ready Eagle Gold project. The company trades at a premium to peers on a NAV basis; however, we believe this premium is warranted given the project’s scale, jurisdiction, permits, advanced project financing and the company’s strong balance sheet. While the near-term focus of investors is likely to be on project financing, the planned regional exploration is likely to be a positive catalyst for the stock and should help demonstrate the projects exploration upside to potential acquirers.  read more


Thursday, February 09, 2017 Derek Macpherson

IDM Adds Mining Experience to Its Board

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IDM Mining Ltd. (TSXV:IDM) announced the appointment of Duncan Middlemiss, P.Eng to its Board of Directors. Mr. Middlemiss brings significant mine development experience, which we view positively since IDM is advancing its flagship Red Mountain project in British Columbia towards a feasibility study (H1 2017) and final construction decision. Mr. Middlemiss is currently the President, CEO and a Director of Wesdome Gold Mines Ltd. (TSX:WDO). IDM trades at a discount to peers on a P/NAV basis (0.43x vs. peers at 0.59x) and on a per ounce basis (C$48/oz vs. peers at C$63/oz). We expect the pending feasibility study for Red Mountain, coupled with the project’s ongoing de-risking (engineering and permitting), should help close the valuation gap to peers. read more


Wednesday, February 08, 2017 Derek Macpherson

RPX Continues to Deliver Exploration Success

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Yesterday, Red Pine Exploration Inc. (TSXV:RPX) provided another positive exploration update, including surface sampling results and the second set of results from its ongoing 6km drill program at the Wawa gold project (60% interest). The drill results were highlighted by 2.00 g/t Au over 8.96m, within a wider interval of 25.76m at 0.79 g/t Au (SD-16-43). This hole is 525m to the north of the existing inferred resource (Figure 1). The surface sample results were highlighted by 143 g/t Au, in an underexplored area ~2km south of the existing resource. These exploration results continue to suggest that meaningful resource growth is possible for the Wawa Gold project, which in our view is not reflected in the company’s modestly discounted valuation of C$44/oz versus peers at C$56/oz. We expect continued exploration success, along with the recently completed ownership consolidation of the Wawa gold project should help close the valuation gap to peers.  read more


Wednesday, February 08, 2017 Derek Macpherson

EXN Materially Reduces TC/RCs

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Yesterday, Excellon Resources Inc. (TSX:EXN) announced it had entered into new off-take purchase agreements for 2017 lead-silver and zinc concentrate production, likely representing a ~60% reduction in treatment and refining charges (TC/RCs). We expect this to positively benefit Excellon’s profitability since TC/RCs for the first nine months of 2016 were US$2.7 million or ~17% of gross sales. If we were to apply this discount to the first nine months of 2016, revenue would have increased ~12%, adjusted net income would go from being a loss to slightly positive and operating cash flow would be about breakeven, versus a meaningful loss. Coupled with the completion of the company’s optimization program which is slated for Q1 2017, we expect cash flow and profitability to improve materially in H2 2017. Excellon currently trades at a premium to peers at 1.67x NAV and 14.0x 2017e EV/CF versus peers at 1.10x NAV and 9.2x 2017e EV/CF. We believe this premium partially reflects the increased production and lower costs expected once the optimization program is completed at La Platosa. read more


Wednesday, February 08, 2017 Derek Macpherson

Marlin Continues to Execute at La Trinidad

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Marlin Gold Mining Ltd. (TSXV:MLN) announced another strong month of operations from its wholly owned La Trinidad mine in Mexico, and provided an update on operations going forward. 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, at which time we expect to refine our estimates. Additional catalysts include near-mine drilling at La Trinidad (Q1 2017), 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, February 06, 2017 Derek Macpherson

Austral Reports Strong Q4 Results

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Austral Gold Ltd. (TSXV:AGLD, ASX:AGD) reported strong Q4 and full-year 2016 production results that saw consolidated annual production increase 17% in 2016 over 2015, primarily driven by Casposo, which was recommissioned in Q3 2016. Production also improved on a quarterly basis, up 23% over Q3 2016, as the restart at Casposo progressed and grades improved at Guanaco (Figure 1). Higher grades at Guanaco also resulted in quarterly costs declining 22% from Q3. In addition, Austral released final drill results from the 13.3km 93 hole infill drill campaign at its Amancaya project, positioning the company to complete the planned pre-feasibility study by the end of March 2017 and likely start production around the same time. We expect that a resource update, pre-feasibility study (Q1 2017) and initial production from Amancaya, the ongoing ramp-up of the Casposo project and plans to increase its interest to 70% and the completion of the mill expansion at Guanaco are likely to be key catalysts in the near-term. read more


Sunday, February 05, 2017 Derek Macpherson

Red Pine Completes Merger with Augustine

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Red Pine Exploration Inc. (TSXV:RPX) announced that the acquisition of Augustine Ventures Inc. (CNX:WAW) has been completed. By way of the transaction, Augustine became a wholly-owned subsidiary of Red Pine, and Red Pine’s interest in the Wawa gold project increased from 30% to 60%. The project’s remaining 40% interest will continue to be held by Citabar LLP. Each common share of Augustine has been exchanged for 0.76 Red Pine shares and Red Pine issued 100,668,733 shares to former Augustine shareholders. In our view, the completion of this merger is an important catalyst for the company and should help close the valuation gap to peers. At C$45/oz Red Pine currently trades at a modest discount to peers that trade at C$53/oz. As well, we expect the ongoing exploration and resampling programs to benefit the share price. read more


Saturday, February 04, 2017 Derek Macpherson

MQR Releases More Results from Croinor & Gold Bug

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Monarques Gold Corporation (TSXV:MQR) announced the second last set of drill results from the 10km drill program completed in 2016 at its Croinor gold project in Quebec. Today’s results included assays from both Croinor and the Gold Bug target and were highlighted by hole CR-16-515 that returned 46.6 g/t Au over 0.6m within a wider interval of 2.8m that returned 11.91 g/t Au from Section 490W at Croinor. Results from Gold Bug continue to highlight this new discovery’s potential and while it is early days, this set of results was not as impressive as the previous hole. We continue to view exploration results from the Croinor deposit and Gold Bug target favourably, and believe resource growth is likely. The company plans to follow-up on its 2016 drill program with another 10km program in early 2017. Monarques continues to trade at a premium to peers, which reflects its resource growth potential, stage of development (pre-feasibility) and recently acquired mill.  read more


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