RCKS talk

Friday, November 03, 2017 Derek Macpherson

SCA Increases Inferred Resource at Karankasso

Download Report

Savary Gold Corp (TSXV:SCA) has announced an updated Inferred Mineral Resource Estimate for its Karankasso JV Project (69.5% SCA/30.5% SWA), in Burkina Faso. After a 23,170m drill program from May 2016 to July 2017, the company increased their resource estimate to 12.3Mt grading 2.03 g/t Au for 805,000 oz Au, which represents a 34% increase in tonnage, an 11% decrease in grade and a 20% increase in ounces compared to their last estimate. All mineralized zones remain open in at least two directions and there remains potential for discovery within a the 6.5km radius that is currently encompassing 70% of the pit constrained resources at Karankasso. The company indicated that mineralization continues to extend beyond pit-constrained limits at all zones and therefore warrants further testing and expansion of the higher grade underground Mineral Resource. The underground and open pit inferred resources are 0.42Mt grading 3.57 g/t Au and 11.9Mt grading 1.97g/t Au, respectively. Through further drilling, the company is planning to continue to expand the mineralized zones and explore the remainder of the mineralized corridor transecting the project. Savary currently trades at a discount to peers (C$15/oz vs. peers at C$47/oz), we expect continued exploration success on the property to benefit the company’s share price in the near term.  read more


Friday, November 03, 2017 Derek Macpherson

Tinka Reports Tin Results; Resource Update on the Horizon

Download Report  

Tinka Resources Ltd. (TSXV:TK) reported assay results from eight drill holes on its South Ayawilca zinc discovery in Peru. The company announced tin intercepts of 1.6% tin over 13 meters in the tin mineralization on the property, which is physically separated from the zin zones. The tin mineralization on the property is predominantly in the form of SnO2, disseminated in flat-lying massive to semi-massive pyrrhotite mantos. The tin intersections at South Ayawilca allow the connection and expansion of the previously identified tin mineralization at Central Ayawilca (Figure 1), which has included intercepts such as 50.5m of 1.23% tin. In addition to the reported tin assays, Tinka released assays of four new zinc drill holes, which included 8m of 14.8% Zn at a depth of 52m. These reported assays in addition to those released earlier in the drill program will be included in the zinc and tin resource updates expected this month. Two drill rigs are continuing to test new targets through step-out drilling at South Ayawilca and will continue until December. We believe as Tinka continues to demonstrate exploration upside at Ayawilca and it should support and may expand the current premium it trades at relative to peers (C$0.042/lbs vs. C$0.015/lbs ZnEq).  read more


Friday, November 03, 2017 Derek Macpherson

EXN Q3 Financials; Reflect Improving Operations

Download Report     

Excellon Resources Inc. (TSX:EXN) reported significantly improved Q3 2017 financial results. Excellon nearly doubled revenue to $7.1M compared to Q2 2017 and up 77% YoY. Production cost per tonne, cash cost per payable silver ounce and AISC all decreased significantly QoQ and YoY with a 70% drop in AISC. With AISC currently below $12/oz Ag and a mining rate of 200 tpd, the company is well positioned to increase production going into 2018. The successful completion of the company’s Optimization Plan resulted in higher tonnage and metal produced at La Platosa. For the remainder of 2017, the focus for the company remains on ramping up production to 300 tpd. We view the results very positively and believe the following quarters are likely to show incremental gains as the effects of dry mining conditions and overall improvements are realized. Excellon currently trades at a discount to peers at 3.8x 2017e EV/CF versus peers at 4.9x 2017e EV/CF. Ongoing exploration should be an important catalyst for the company, as they highlight the potential to expand and grow operations in the near-term.   read more


Friday, November 03, 2017 Derek Macpherson

Sierra Reports Strong Financials at Yauricocha

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q3 2017 financial results from its Yauricocha mine in Peru (Sociedad Minera Corona S.A. - 81.8% owned subsidiary). Unadjusted for ownership interest, revenue for the quarter was US$39.6 million, a slight increase of 5% QoQ and an increase of 34% YoY. Q3 marks the highest quarter of production in Yauricocha’s history, which reflects the success of the company’s operational improvement program. YoY cash cost per CuEq oz payable has increased slightly to $1.08 per CuEq payable pound QoQ and by 37% YoY, whereas AISC increased 9% QoQ and only 20% YoY to $1.71 per CuEq payable pound. The increase in costs was a result of increased Capex as well as exploration expenses and the cost of infrastructure improvements, all of which should have longer term value. The company also recently increased reserves at Yauricocha by 134%, which was reported by the company in October. Yauricocha remains a key aspect of the company’s operations, ongoing exploration success is important to enhancing the company’s value.  read more


Thursday, November 02, 2017 Derek Macpherson

Fine Gold, Not as Sexy but Just as Important as Nuggets

Download Report

Novo Resources Corp. (TSXV:NVO) provided an exploration update from the Purdy’s Reward tenement (earning 50%), which is part of Novo’s greater Karratha gold project in Western Australia. The company noted that core drilling has progressed further down-dip, and the company has opened 7 trenches with an 8th underway. All but one of which encountered the conglomerate. To investigate the presence of fine grained gold, some grab samples were taken from areas untested by a metal detector and yielded significant fine grain gold (Figure 1). While, these results are not conclusive with respect to grade, we view a component of fine grain gold to be an important element for the company to establish a sizeable compliant resource statement. These results, along with the bulk sample results released in August, suggest that a significant fine grain component is likely. At its current share price, the market is pricing in a sizeable resource at Novo’s Karratha project, which based on the data to date, we view as very possible. However, additional data, including additional diamond drilling to determine conglomerate thickness (ongoing) and assay results from the ongoing bulk samples and planned large diameter drilling (early 2018), is needed to fully understand this projects potential.  read more


Thursday, November 02, 2017 Derek Macpherson

NM Releases Near-Mine Drill Results from Sterling

Download Report  

Northern Empire Resources Corp. (TSXV:NM) has announced the results from the first 24 drill holes from the Sterling Mine, Nevada. The company hit various broader zones of mineralization including 12.2m of 8.37 g/t Au at a depth of 53m. The Sterling Gold Mine is located within the company’s 116 square kilometre Sterling Gold Property in Nye county Nevada, which currently hosts inferred resources of 9.9 Mt grading 2.23 g/t Au as at March 29, 2017. The results of these first 24 drill holes support the company’s resource model of the Sterling property, which is considered to be relatively narrow, high grade and possess excellent metallurgy. At C$57/oz, Northern Empire trades closely to peers at C$58/oz; however, our view is at the current EV of ~C$39 million, the market is ascribing value to either the exploration potential of the company’s Crown project or to the permitted Sterling mine, but not both.  read more


Thursday, November 02, 2017 Derek Macpherson

MTO Intersects High Grade Gold at Bachelor

Download Report

Metanor Resources Inc. (TSXV:MTO) has reported results from its ongoing underground drilling program at the Bachelor Mine. In September 2017, Metanor developed its first diamond drill bay on an exploration drift that was developed form the Bachelor Mine to the south on level 11 (Figure 1). The objective of drilling was to test the extension of the Moroy vein at depth, results returned 41.6 g/t Au over 1.2m (Figure 2). Drilling will continue from this development for the following months as the company continues development south along the exploration drift towards the Moroy veins. Drift development is expected to reach the new veins in January 2018. We expect further results from the ongoing drill programs at both Barry and Bachelor to be important near-term catalysts for the company.  read more


Thursday, November 02, 2017 Derek Macpherson

FCC Releases First Drill Results; More to Come

Download Report

First Cobalt Corp. (TSXV:FCC) has announced the first results from its drilling program at Keeley-Frontier. While drilling has yet to intersect, the wider disseminated cobalt mineralization sought, it continues to highlight that cobalt mineralization exists in the camp. Drilling targets on the property include cobalt mineralization over a total of 2km in strike length, which represents less than 2% of a proforma land package that hosts several historic cobalt-rich mines. The company intersected 0.83% Co and 30 g/t over 0.5m (Hole KV-WV-0008) north of the past-producing Frontier mine, which appears to represent an extension of the Woods-Watson vein system (Figure 1). This vein previously accounted for significant production on the property. We would also highlight that 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, pro-forma. Besides pending drill results (53 holes pending assay), important upcoming catalysts are likely to include planned metallurgical test results and the completion of the planned mergers.  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.