Newsletter 17 /2018
Stock of the week: Endeavour Silver
Endeavour Silver drastically increases production!
A short time ago, Endeavour Silver reported its production results for the Second Quarter, 2018 from the Company’s three silver-gold mines in Mexico: the Guanaceví mine in Durango state and the Bolañitos and El Cubo mines in Guanajuato state. Silver production in the Second Quarter, 2018 increased 19% to 1,355,895 ounces (oz) compared to 1,143,788 oz silver in Q2, 2017 and gold production rose 5% to 13,674 oz compared to 13,058 oz gold in Q2, 2017, resulting in silver equivalent production of 2.4 million oz using a 75:1 silver-gold ratio. Silver production was higher in Q2, 2018 compared to Q2, 2017 primarily due to higher mine output and ore grades at El Cubo.
The Guanacevi mine continued in recovery mode as production was flat but mine development increased in Q2, 2018.
News: Endeavour Silver Produces 1,355,895 oz Silver and 13,674 oz Gold (2.4 Million oz Silver Equivalents) in the Second Quarter, 2018
Endeavour Silver intersects high-grade mineralization
In addition to this, Endeavour Silver recently announced, that near mine exploration drilling along the Calicanto, Santa Fe and Misie-Karla vein systems on the Calicanto property in Zacatecas State, Mexico continues to intersect high grade silver-gold mineralization along strike and down dip of positive drill results reported last year. The Calicanto property is located within close proximity to the El Compas Mine, and has the potential to provide further growth opportunities for the new mine. The best intercept to date returned 269 grams per ton (gpt) silver and 5.5 gpt gold over 1.1 metres (m) true width (19.9 oz per short ton (opT) silver equivalent (AgEq) over 3.6 feet (ft) in hole CLT-35.
News: Endeavour Silver Drilling Intersects 269 gpt Silver and 5.5 gpt Gold over 1.1 metres (19.9 opT AgEq over 3.6 ft) at Calicanto Property, Zacatecas, Mexico and Provides Development Update for the El Compas Mine
Endeavour Silver: Course aim US$6!
Investment company H.C.Wainwright&Co. recently published a new research report on Endeavour Silver. The analysts course aim lies 100% higher than the current share price!
News: Reiterate Buy Endeavour Silver
Uranium: the plan works!
Within the last few months, many uranium stocks began to rise for two main reasons: First, in the mid of July, the U.S. Department of Commerce began its investigation regarding Energy Fuels’ and Ur-Energy’s petition 232.
As a reminder: both companies jointly submitted a Petition to the U.S. Department of Commerce for Relief Under Section 232 of the Trade Expansion Act of 1962 from Imports of Uranium Products that Threaten National Security and the independence of the US energy industry.
The two companies bring forward the argument, that currently 40% of the US uranium demand is been covered from imports from former Soviet-states like Russia, Kazakhstan and Uzbekistan, while only 5% of the demand is been produced in the US itself. The dependence of both the US energy industry (around 20% of the US- energy is been provided by nuclear plants) and the military from these countries has risen dramatically.
With their petition, both companies want to achieve, that both the U.S. Department of Commerce and president Trump will prepare a clear evaluation of the current import dependence of the USA from Russia, Kazakhstan and Uzbekistan and that both will support the US uranium industry.
The U.S. Department of Commerce now has a maximum of 270 days for a suggestion to president Trump, who has then another 90 days for a decision. Will the U.S. Department of Commerce and Trump follow the companies’ proposal, this could lead to a heavy course increase in US uranium stocks like Energy Fuels, Ur-Energy, Anfield Resources, Laramide Resources and Uranium Energy.
The second important point, which led to a first course increase in the last weeks was the announcement of the largest uranium producer of the western world, Cameco, which reported to close its large McArthur River and Key Lake operations for an undefined time. This will take up to 19 million pounds U3O8 p.a. away from the market. On top of this, Cameco announced, that it will buy 5 to 6 million pounds U3O8 per year from the uranium market.
A perfect storm is coming up for the uranium sector!
Uranium Energy: Overall Market Analysis & Vanadium and Titanium Projects Gain Weight
Laramide Resources: Multiple Uranium ISR Projects Around The World
Energy Fuels: Biggest Uranium Producer In The US
Skyharbour Resources: Multiple Uranium Exploration Projects In The Athabasca Basin
Appia Energy: Exploring Multiple Projects For Uranium & Rare Earths In The Athabasca Basin
TerraX Minerals discovers two new gold zones
TerraX Minerals recently announced assay results from the Company’s summer field program now underway on the Yellowknife City Gold project. The first set of assay results come from sampling done on two new zones called Gull Lake and Rater Lake that have been identified on our Northbelt property. These new targets are in the same mafic volcanic geology that also hosted the Giant and Con mines. The highlight assays are 43.7 g/t Au, 28.0 g/t Au, and 19.05 g/t Au on the Gull Lake Zone with several additional assays in the 1 to 5 g/t Au range on both zones.
The second set of assay results come from channel sampling done around the past producing Ptarmigan Mine on Eastbelt, an asset that TerraX acquired in early 2018.(Intervals for the 3 sampled areas (ECH18-035 to ECH18-037) include:
- ECH18-037 - 24.75 g/t Au over 5.50 m (including 44.82 g/t Au over 3.00 m)
- ECH18-036 - 5.39 g/t Au over 7.50 m (including 10.44 g/t Au over 2.50 m)
- ECH18-035 - 4.25 g/t Au over 2.00 m
Caledonia Mining reports solid quarterly results
A couple of days ago, Caledonia Mining announced quarterly gold production from the Blanket Mine in Zimbabwe for the quarter ended June 30, 2018. Approximately 12,657 ounces of gold were produced during the Quarter, 2% below production in the first quarter of 2018 and 1% above production in the second quarter of 2017. Gold produced for the first half of 2018 was 25,582 ounces, marginally ahead of the 25,316 ounces produced in the first half of 2017. Production remains in line with expectations for 2018 and Caledonia maintains its 2018 production guidance of 55,000 ounces to 59,000 ounces for the full year.
Blanket remains on track with progress towards its long-term target of 80,000 ounces by 2021.
News: Q2 2018 Production Update
Auryn Resources: Course aim US$3!
Investment company Cantor Fitzgerald recently published a new research report on Auryn Resources. The analysts course aim lies 200% higher than the current share price!
Copper Mountain Mining with good quarterly results!
Copper Mountain Mining recently announced production results for Q2 2018 from the Copper Mountain Mine, located in southern British Columbia.
Second Quarter 2018 Production Highlights were:
- Q2 Production: 23.1 million pounds of copper equivalent, which includes 20 million pounds of copper, 6,500 ounces of gold and 68,400 ounces of silver.
- H1 2018 production: 46 million pounds of copper equivalent, which includes 39.9 million pounds of copper, 12,600 oz gold and 146,300 oz silver.
- On track for 2018 production guidance: Copper Mountain’s 2018 guidance for copper production remains unchanged at 80 million pounds (+/- 5%).
- Mining production: Open pit mining averaged 214,500 tons per day, 13% above guidance of 190,000 tpd.
- Mill throughput: Milling averaged 37,000 tons per day. Total tons milled during the period was 3.4 million tons at an average head grade of 0.335% copper, and recovery of 80.5%.
The operation therewith performed well during the quarter, with production higher year over year. Copper Mountain is demonstrating consistent and solid production and is on track to achieve annual guidance.
News: Copper Mountain Announces Q2 2018 Production Results
Copper Mountain Mining report top-class drill results!
In addition to this, Copper Mountain Mining recently announced initial drill results from Phase 2 of its 3-Phase drilling program at the New Ingerbelle property nearby the present operations of Copper Mountain Mine.
- Hole 18IG-06 returning 105 meters of 1.03% CuEq (0.71% Cu, 0.87 g/t Ag, 0.47 g/t Au), which includes:
- 30 meters of 2.22% CuEq (1.53% Cu, 2.02 g/t Ag, 1.01 g/t Au), and,
- 48 meters of 0.83% CuEq (0.58% Cu, 0.58 g/t Ag, 0.37 g/t Au)
- Hole 18IG-03 returning 63 meters of 0.91% CuEq (0.56% Cu, 0.91 g/t Ag, 0.51 g/t Au) and 117 meters of 0.50% CuEq (0.35% Cu, 0.49 g/t Ag, 0.22 g/t Au)
- Hole 18IG-01 returning 165 meters of 0.63% CuEq (0.44% Cu, 0.60 g/t Ag, 0.29 Au g/t), which includes:
- 93 meters of 0.81% CuEq (0.55% Cu, 0.74 g/t Ag, 0.38 g/t Au), and,
- 48 meters of 0.56% CuEq (0.4% Cu, 0.52 g/t Ag, 0.24 g/t Au)
- Hole 18IG-02 returning 60 meters of 0.70% CuEq (0.47% Cu, 0.98 g/t Ag, 0.33 g/t Au)
- Hole 18IG-05 returning 48 meters of 0.72% CuEq (0.49% Cu, 1.05 g/t Ag, 0.33 g/t Au), which includes:
- 21 meters of 1.19% CuEq (0.8% Cu, 1.73 g/t Ag, 0.56 g/t Au)
These early phase 2 drill results demonstrate that New Ingerbelle will continue to grow in quality and size.
News: Copper Mountain Announces Positive Drill Results at New Ingerbelle
Copper Mountain Mining: buy recommendations from Haywood and Cormark!
Copper Mountain was recently part of two new research reports.
Haywood published a positive outlook, including a buy recommendation with a course aim of CA$2.00: Haywood
On top of this, Cormark set a buy recommendation with a course aim of CA$2.15: Cormark says buy Copper Mountain with target 2.15 CAD
Sibanye-Stillwater closes mega streaming deal!
A short time ago, Sibanye-Stillwater announced, that it has secured a US$500 million upfront cash payment through a streaming agreement with Wheaton Precious Metals International Ltd, a wholly-owned subsidiary of Wheaton Precious Metals Corp. Wheaton International will advance an upfront cash payment of US$500 million to Sibanye-Stillwater on closing of the transaction, which is expected soon after the announcement date. Closing of the Transaction is subject to the completion of certain corporate matters which are administrative in nature.
In addition to the Advance Amount, Wheaton International will pay Sibanye-Stillwater 18% of the spot palladium and gold prices for each ounce delivered under the streaming agreement until the Advance Amount has been reduced to nil through metal deliveries. Thereafter, Sibanye-Stillwater will receive 22% of spot US$ palladium and gold prices for each ounce of palladium and gold delivered.
News: Sibanye-Stillwater enters into streaming agreement with Wheaton International
First Cobalt extends Waite Zone
First Cobalt recently announced, that drilling from underground at the Iron Creek Cobalt Project in Idaho, USA continues to extend mineralization beyond the extents of the historic resource. Results from six drill holes completed at the western extension of the mineralized zones validate previously reported intersections which have, to date, extended the total strike length of the Waite Zone to 520 meters along a dip length of more than 250 meters.
The company intersected 6.4m of 0.61% Co and 0.24% Cu within a broader 24.6m intercept grading 0.28% Co and 0.22% Cu in the Waite Zone to the west of the previously drilled initial resource area. Four holes drilled over 50m west of the previously known mineralization have traced the Waite Zone along a dip length of 250m from surface to depth. This portion of the Waite Zone is particularly copper-rich, returning up to 6.5m of 0.83% Cu and 0.19% Co.
News: First Cobalt Drilling at Iron Creek Extends Mineralization of Waite Zone
Auryn Resources gets CA$4.6 million into the treasury
Auryn Resources recently reported, that it has arranged a CA$4.6 million non-brokered flow-through private placement. The placement will consist of approximately 1.25 million flow-through common shares priced at CA$1.60 per FT Share and approximately 1.5 million charity flow-through shares priced at CA$1.75 per Charity FT Share.
This offering, raised at a premium to the current share price, will fund the remainder of the Canadian exploration programs this summer and preserve the hard dollar treasury for corporate costs and the ongoing exploration at the Sombrero project in Peru.
News: Auryn Resources Arranges $4.6 million Flow-Through Funding
EnWave sells first machine to US Army!
EnWave recently announced, that it has signed a Purchase Requisition with the United States Army Natick Soldier Research, Development and Engineering Center (“NSRDEC”) to supply a 10kW Radiant Energy Vacuum (“REV™”) machine for research and development purposes. The acquisition of the 10kW REV™ machine by NSRDEC aims to facilitate an accelerated path to improved Close Combat Assault Ration deployment.
After a successful presentation at the Pentagon in May 2018 and confirmed demand for REV™ dried rations, the NSRDEC has fast tracked the research and development necessary for implementation with close combat warfighters. An additional presentation to NASA will take place in September 2018. This project has been under development for the past year with trials previously being completed at EnWave’s pilot plant facility located in Vancouver, Canada.
News: EnWave Sells 10kW REVTM Machinery to the United States Army Natick Soldier Research, Development and Engineering Center to Accelerate Nutrient Rich Field Ration Product Development
Swiss Resource Capital AG and the authors of the Swiss Resource Capital AG directly own and/or indirectly own shares of the following companies which are described in this publication: Endeavour Silver + Energy Fuels + Ur-Energy + Anfield Resources + Laramide Resources + Uranium Energy + TerraX Minerals + Copper Mountain Mining + Sibanye-Stillwater + First Cobalt + Auryn Resources + EnWave.
Swiss Resource Capital AG has closed IR consultant contracts with the following companies which are mentioned in this publication: Endeavour Silver + Uranium Energy + TerraX Minerals + Copper Mountain Mining + Sibanye-Stillwater + First Cobalt + Auryn Resources + EnWave.
This publication is based on Swiss Resource Capital‘s detailed risk notes, liability limitations and disclaimers, which can be viewed here: https://www.resource-capital.ch/en/disclaimer-agb.html