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Newsletter 19 /2018

New at SRC: Orsu Metals!
Video: Orsu Metals: Releasing Maiden Resource For Russian Gold Project In Q4 2018  
Video: Newsflash #82 mit Panoro Minerals, Auryn Resources, White Gold & Orsu Metals  

Stock of the Week: Endeavour Silver
Endeavour Silver publishes new resource estimate and prefeasibility study for Terronera mega-project
Endeavour Silver recently published a new pre-feasibility study for its mining project Terronera, located 40 kilometers northeast of Puerto Vallarta in the Mexican state of Jalisco.


Key data of the new mineral reserve and mineral resource estimates and the new PFS for Terronera:

  • Probable mineral reserves silver equivalent increased by 32% to 59.5 million ounces, while tonnages (16%), silver grades (8%) and gold grades (17%) also increased.
  • Indicated mineral resources silver equivalent increased by 23% to 60 million ounces, while tonnages (10%), silver grades (3%) and gold grades (16%) also increased.
  • Inferred mineral resources silver equivalent increased by 55% to 14.8 million ounces, while tonnages (49%) and gold grades (61%) also increased.
  • The higher values of the mineral reserve and mineral resource estimates also result in a longer mine life of 9.5 years with an average annual production of 5.1 million ounces of silver equivalent in phase 2 (third year and subsequent years).
  • The lower costs are due to higher ore contents and optimized planning:
    • Cash cost US$0.15 per ounce Ag, less by-product shares
    • AISC US$1.36 per ounce of Ag, less by-product amounts
  • Solid economic figures: NPV (5%) after tax $117.8 million (51% increase over PFS 2017), internal rate of return (IRR) 23.5% and amortization 5.4 years


Very good values, which should soon lead to a final production decision for Terronera.

News: Endeavour Silver Reports Updated NI 43-101 Mineral Resource and Reserve Estimates and an Updated Pre-Feasibility Study for the Terronera Mine Project, Jalisco, Mexico

Presentation: Terronera Project Presentation  

Endeavour Silver announces drastic cost reduction plan

Due to the continuing fall in silver prices, Endeavour Silver recently announced a company-wide initiative to reduce investment, operating and other costs in Canada and Mexico. In view of the fall in precious metal prices this quarter, management has taken the precautionary measure to seek cost savings at headquarters and to temporarily adjust its exploration, development and mining operations to reduce investment, operating and other costs until gold and silver prices recover. The spending cuts and the revised exploration, development and mining plans should boost production and reduce operating and investment costs in the fourth quarter of 2018 through several measures.

Endeavour Silver Reports Company-Wide Initiatives to Reduce Capital, Operating and Other Costs


Market overview:

Copper: The most underestimated raw material ever!

Closely linked to the emergence of electromobility, or as we call it: the "New Electric Economy" is probably the most underestimated raw material of all: copper! Copper is primarily used as an electrical conductor. An immense surge in demand for copper can be expected in the coming years, particularly in the field of electromobility. After all, an average electric car has a copper rotor motor that rarely weighs less than 100 kilograms. In addition, there are several hundred meters of copper cables running between the individual motor, battery and drive components. A huge demand potential that will lead to a corresponding supply deficit in several years, unless several larger copper mines are newly opened. Beneficiaries in this case will be current producers such as Copper Mountain Mining or Panoro Minerals, which sits on a huge copper/gold deposit in Peru, which is currently being developed into a mine at full speed.

Company News:
Panoro Minerals reports increased improved copper recovery estimate
Panoro Minerals recently reported the final results of the recently completed Pillar 4 leaching tests on the 100% owned Antilla copper project. Improved estimates for copper output from secondary sulfides are 79.8% over 150 days. This is an increase over the PEA (Preliminary Economic Assessment) published in May 2018 and included an estimated copper yield of 72.5% over 200 days.
News:  Panoro Minerals Ltd. Announces Increased Copper Recovery Estimates at Antilla Copper Project, Peru.
Video: Panoro - future copper production from Peru
Panoro Minerals deliniates several mineralizations
Panoro Minerals also reported the results of exploration work in Zones 1, 2 and 3 of the Chaupec target area, which is a Cu-Au-Ag-Skarn and Porphyry target on the 100% owned Cotabambas copper and gold project. Panoro's mapping and sampling work in the Chaupec target area in 2018 delineated 16 anomalies within three mineralization zones. The anomalies in zones 1 and 2 occur in skarn mineralization and have surface contents of up to 1.65% Cu in zone 1 and up to 0.59% Cu in zone 2. The anomalies in zone 3 are located within quartz monzonite porphyry mineralization with contents of up to 0.67% Cu.
News: Chaupec Target Exploration Delineating Skarn and Porphyry Mineralization at Cotabambas Project, Peru.

EnWave appoints new CEO
A few days ago EnWave announced changes in the company management. The Board of Directors of EnWave has terminated the appointment of Dr. Tim Durance due to differences in corporate strategy and direction. Mr. John P. A. Budreski, remains Chairman. Mr. Brent Charleton has been appointed CEO and President. He led EnWave's business development and sales strategy in his current position as Senior Vice President, Business Development and Sales. Mr. Charleton has been instrumental in the company's success in marketing and led the proactive licensing strategy and use of EnWave's Radiant Energy Vacuum ("REV™") technology.
News: EnWave Corporation Announces Changes to its Executive Management Team

Sibanye-Stillwater announces positive half-year results
Sibanye-Stillwater recently published its operating results and condensed consolidated interim financial statements for the six months ended June 30, 2018.
Highlights were:

  • Group adjusted EBITDA2 increased 26% to R3.9 billion (US$316 million).
  • Further operational improvement from SA PGM activities with 2% lower AISC of R10.106/4Eoz (US$821/4Eoz) and a 115% increase in Adjusted EBITDA to R1.001 million
  • Another solid performance from the US PGM business with 2E PGM production of 293,959 oz and AISC of 653/2 oz and the Blitz project remains on schedule
  • On a comparable basis (excluding Cooke activities), RSA gold production decreased 7% to 18,616 kg (598,500 oz), with AISC rising 7% to R520,488/kg (1,315 US$/oz), mainly due to lower volumes.
  • Good operational recovery by Beatrix and Kloof after safety-related disruptions, with only Driefontein not fully recovering.
  • Deleveraging was accelerated in July 2018 with $500 million of power financing, reducing pro forma ND:adjusted EBITDA to approximately 1.85x.
  • The acquisition of Lonmin remains on track with the approval of SARB and the UK competition authority.

It goes noticeably up again at Sibanye-Stillwater. The palladium price also played into the cards for the company!
News: Sibanye Gold Limited Operating and financial results
Video: Sibanye-Stillwater H1-2018 at Commodity-TV
Sibanye-Stillwater announces repurchase of part of its corporate and convertible bonds
Sibanye-Stillwater recently announced the start of a tender to buy back part of its corporate bonds and convertible bonds. The Group will finance the repurchase from existing cash, including the US$500 million upfront proceeds from the recently completed streaming transaction with Wheaton Precious Metals International Ltd. US$ allows Sibanye-Stillwater to repurchase and repay approximately 31% of its long-term debt instruments (a nominal value of approximately US$ 432 million of the total nominal value of US$ 1,500 million), reducing annual interest costs by approximately US$ 26 million.
News: Sibanye-Stillwater announces the launch of tender offers to reduce debt

Copper Mountain Mining with further top drilling results
Copper Mountain Mining recently announced further drilling results from Phase 2 of its three-phase drilling program at the New Ingerbelle concession near the current Copper Mountain Mine.
The most important results include:

  • Drill hole 18IG-10 with 0.60% CuÄq over 102m (0.45% Cu, 0.52 g/t Ag, 0.22 g/t Au)
  • Drill hole 18IG-08 with 0.56% CuÄq over 99m (0.38% Cu, 0.70 g/t Ag, 0.26 g/t Au)
  • Drill hole 18IG-09 with 0.47% CuEq over 177m (0.33% Cu, 0.45 g/t Ag, 0.20 g/t Au) including 0.59% CuEq over 84m (0.41% Cu, 0.57 g/t Ag, 0.26 g/t Au)
  • Drill hole 18IG-13 with 0.83% CuÄq over 15m (0.54% Cu, 0.96 g/t Ag, 0.43 g/t Au)
  • Drill hole 18IG-14 with 0.49% CuÄq over 93m (0.33% Cu, 0.70 g/t Ag, 0.23 g/t Au) and
  • Drill hole 18IG-15 with 0.77% CuÄq over 24m (0.52% Cu, 1.07 g/t Ag, 0.36 g/t Au)

New Ingerbelle continues to demonstrate significant potential as Phase 2 drilling continues.
News: Copper Mountain Announces Additional Positive Drill Results at New Ingerbelle
Video:  Copper Mountain Mining: Doubling Copper Production By 2020  
Maple Gold Mines Reports Excellent Exploration Results
Maple Gold Mines presented a summary of the 2018 drilling campaign a few days ago after all samples had been received. The 2018 winter drilling campaign included 21,122 metres of diamond drilling from 52 holes and 1,471.3 metres from 57 short Top-of-Bedrock Reverse Circulation (RC) holes for a total of 22,593 metres. Approximately 70% of the total metre capacity was located within or near the known resource area, defined as the 6.3 km x 1.8 km corridor including the outlines of the Micon 2018 conceptual mines and including all known mineralized zones extending beyond the resource. The Douay NI 43-101 resource contains 479,000 displayed ounces averaging 1.59 g/t Au and 2,759,000 inferred ounces averaging 1.02 g/t Au, all with a cut-off grade of 0.45 g/t Au.
News: Maple Gold summarizes 2018 drilling highlights after receiving final assays
Video: Newsflash #80 With Maple Gold Mines & Cardinal Resources  
First Cobalt now holds 100% of Iron Creek
First Cobalt announced the acquisition of 100% of the shares and the elimination of the outstanding royalties on the Iron Creek property in Idaho, USA a few days ago. The Iron Creek project was previously leased to First Cobalt. Under the lease, First Cobalt had to make monthly payments and the vendor retained a license fee of 4% for future production, both of which could be eliminated by a one-time payment. First Cobalt and the vendor agreed to reduce this payment by 47% to US$1.07 million, which is now fully paid. As of June 30, 2018, First Cobalt had US$20 million in cash and US$2 million in working capital. The Company is fully funded to complete all ongoing work programs, including over 30,000 metres of diamond drilling to further test the cobalt-copper mineralization zones.
News: First Cobalt Acquires 100% Ownership of Iron Creek Project

Auryn Resources launches large-scale drilling program

A few days ago, Auryn Resources announced the start of drilling on the 100% owned Homestake Ridge project in northwestern British Columbia province. The program, which began on August 7, 2018, includes approximately 3,000m of core drilling targeting gold mineralization along the South Reef high-grade deposit. During the 2017 drill program, Auryn intersected high grade gold mineralization zones in South Reefs. Drill intersections from these zones included 30m at 2.00 g/t Au (including 4m at 6.03 g/t Au and 2m at 11.80 g/t Au) and 10m at 4.12 g/t Au (including 2m at 18.01 g/t Au). This year's program aims to expand the known resource to South Reef by targeting the known downward extension along the bottom of the rift valley that defines the mineralized corridor.

News: Auryn Commences Drilling at Homestake Ridge Gold Project and Provides Update on Drilling Progress at Committee Bay


Auryn Resources: Target price US$ 1.70

In line with this, the investment company H.C. Wainwright Research published a corresponding buy recommendation for Auryn Resources with a price target of US$1.70.

Research Report: H.C. Wainwright Research: Buy with Target 1.70 USD


GoldMining worth 4.50 CA$?!

The analysts of H.C. Wainwright Research recently published another research report on GoldMining. They recorded an almost phenomenal price target of 4.50 CA$.

Research Report: H.C. Wainwright Research: Buy GoldMining with target 4.50 CAD


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 + Panoro Minerals + EnWave + Sibanye-Stillwater + Copper Mountain Mining + Maple Gold Mines + First Cobalt + Auryn Resources + GoldMining.

Swiss Resource Capital AG has closed IR consultancy agreements with the following companies mentioned in this publication: Endeavour Silver + Panoro Minerals + EnWave + Sibanye-Stillwater + Copper Mountain Mining + Maple Gold Mines + First Cobalt + Auryn Resources + GoldMining.

This publication is based on the detailed risk information, limitations of liability and disclaimers of Swiss Resource Capital AG, which can be viewed here:

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