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Newsletter 21 /2018

Share of the week: First Cobalt + Gold production rises only marginally - gold peak reached?! + Copper Mountain Mining + White Gold + Endeavour Silver + Panoro Minerals + Aurania Resources + Uranium Energy + Caledonia Mining + Nordic Gold + Millennial Lithium + Auryn Resources + Treasury Metals + Cannabis Capital Market Conference in Frankfurt

Cannabis Capital Markets Conference in Frankfurt – latest Videos out now!
Aphria: Increasing Cannabis Production To 255.000kg In 2019  
Wayland Group: Production Of 95.000kg Cannabis In 2019 - Already Exporting To Germany  
Ascent Industries: Establishing Multiple Brands & Products Around Cannabis Consumption  
MedPayRX: Creating An App To Simplify Drug Prescriptions

Share of the week: First Cobalt
First Cobalt Announces Several Top Drilling Results from Iron Creek

First Cobalt announced drill results from the Iron Creek Cobalt Project in Idaho, USA a few days ago. Drilling confirmed cobalt and copper metal zoning, including higher grade copper and cobalt zones. High-grade copper (Cu) intercepts included 10.0 m of 4.04% Cu and 8.0 m of 3.16% Cu, including 1.4 m of 6.56% Cu and 20.5 g/t Ag; cobalt (Co) intercepts included 1.04% Co over 1.5 m and 0.51% Co over 4.1 m.
Further longer intervals were encountered such as 25.7 m of 0.35% Co and 0.62 Cu, 22.6 m of 0.34% Co and 0.59% Cu and 27.8 m of 0.27% Co and 1.09% Cu.
Once again, the company is delivering excellent results from one of its two flagship projects.

News 1: First Cobalt Intersects High Grade Mineralization at Iron Creek

News 2: First Cobalt Drills 25.7 metres of 0.35% Cobalt at Iron Creek

Video Iron Creek: First Cobalt Releases Video on Iron Creek Project


First Cobalt provides figures on possible commissioning of its cobalt refinery

In addition, First Cobalt recently announced the results of three studies supporting a restart of the first cobalt refinery in Ontario, Canada. In a baseline scenario of 24 tonnes per day, the refinery could produce 568 to 1,063 tonnes of cobalt per year; the study also considers an expansion scenario of up to 50 tpd. At 24 tpd and using the current flowchart, the capital cost for restart is US$25.7 million (including a 30% contingent liability) and operating costs are estimated at US$6.7 million per year. The approval review concludes that a restart is possible within 18 months after selection of a source material in the basic scenario.
A restart within 18 months - that sounds like First Cobalt could be benefiting from the emerging cobalt boom sooner than expected.

News: First Cobalt Assessing Restart of Canadian Refinery

Refinery video: First Cobalt Releases Corporate Video Introducing Refinery


Market overview:

Gold production rises only marginally - Gold peak reached?!

Since the turn of the millennium up to 2017, gold production has been rising every year, but has been declining more and more recently. Whereas around 2,380 tonnes of the yellow metal were extracted from the earth worldwide in 2007, the figure was 2,700 tonnes in 2011 and 3,233 tonnes in 2015. Since then, production has increased only marginally to 3,263 tonnes in 2016 and 3,268.7 tonnes in 2017. Although 2017 represented another record year in gold production, the gold peak is expected to have been reached and annual gold production has temporarily peaked.
Several factors contribute to this.
First, more and more deposits are reaching the end of their lifetime. Those that are not yet fully exploited must be removed more and more elaborately in order to obtain further gold-bearing material. Some mines already reach depths of 4,000 meters and more. A torture for man and machine at temperatures around 50 degrees Celsius. In addition, producers are always having problems with tectonic conditions. Smaller earth tremors often lead to burials and fatalities at such depths.
The gold content continues to fall steadily. Currently, gold deposits are still exploited at an average rate of more than 1 gram of gold per ton of rock (g/t). However, there are already indications that this mark will fall to only about 0.9g/t in a few years' time in the case of deposits that have not yet been developed.
A third point is the (lack of) discovery of new deposits. While more than a billion ounces of gold were discovered in the 1990s, from 2000 to 2014 the figure was just over 600 million ounces. Since then, the new discoveries have again really collapsed. This is mainly due to the fact that gold producers have concentrated primarily on reducing mining prices in recent years due to a persistent slump in gold prices. Particular savings were made on exploration, which meant that virtually no major deposits were discovered in recent years.
This means nothing other than that, as a result of the above points, there is a high probability that production will decline in the coming years.
At the same time, gold investments can noticeably calm the nerves of investors: Gold investments can calm nerves

Company news:
Copper Mountain Mining publishes top PEA for New Ingerbelle

Copper Mountain Mining recently published an initial economic evaluation (PEA) for its New Ingerbelle project. In the base case of a long-term copper price of US$ 3.08, the project has a net present value (NPV) (8%) after tax (net present value) of US$ 394 million. The Internal Rate of Return (IRR) after tax (internal rate of return) is a strong 65%. The average annual copper equivalent production (CuEq) over the mine's 12-year life is 112 million pounds. Cash costs were estimated at US$ 1.52 per pound.

Very good figures, which should soon lead to a production decision.

News: Copper Mountain Announces Robust Preliminary Economic Assessment Results for New Ingerbelle


Copper Mountain Mining Publishes Feasibility Study for Eva Project

Copper Mountain Mining also published a feasibility study for its Australian Eva project. In the base case of a long-term copper price of US$ 3.08, the project has a net present value (NPV) (8%) after tax (net present value) of US$ 256 million. The Internal Rate of Return (IRR) after tax (internal rate of return) is a strong 28%. The average annual copper equivalent production (CuEq) over the mine's 12-year life is 121 million pounds. Cash costs were estimated at US$ 1.74 per pound.
This means that Eva should also be put into production in the not too distant future.

News: Copper Mountain Announces Positive Feasibility Study Results for Eva Copper Project


Copper Mountain Mining presents quarterly results

A few days ago, Copper Mountain Mining announced the production results of the Copper Mountain mine in the south of British Columbia for the third quarter of 2018. Production in the third quarter of 2018 was 18.3 million pounds of copper, 7,500 ounces of gold and 64,900 ounces of silver, in line with expectations. The Company forecast that copper production in the third quarter of 2018 would be approximately 10% lower than production in the second quarter due to lower copper contents in the mined ore. actual copper production was 8.5% lower than in the second quarter. The Company expects the fourth quarter to be the quarter with the highest copper production in 2018.
The Company continues to be on track to meet its 2018 production forecast of 80 million pounds of copper.

News: Copper Mountain Announces Q3 2018 Production Results

Video: Copper Mountain Mining: Doubling Copper Production By 2020  

White Gold once again presents world-class drilling results

White Gold was once again able to report world-class drilling results. Among other results, 23.44 g/t gold and 145 g/t silver were encountered within the Vertigo target on the JP Ross property over 24.38 metres from surface. This also included 59.3 g/t gold and 388 g/t silver over 3.05 metres. Additional high-grade grab samples of up to 257.3 g/t gold and 293 g/t silver were obtained over a strike length of 1.1 km.
The company has also recently announced that it has encountered 2.32g/t gold over 115.61 metres in the Golden Sattle Zone, among other finds. This included 3.76g/t gold over 66.2 metres, with a very high-grade interval of 14.21g/t gold over 10.55 metres. This drilling has also resulted in the discovery of further mineralization called Golden Saddle West.

News 1: White Gold Drills 23.44 g/t Gold and 145 g/t Silver Over 24.38m from Surface Ending in Mineralization at Vertigo Discovery

News 2: White Gold Corp. Intersects 3.76 g/t Gold over 66.2m Successfully Extending the Golden Saddle Deposit at Depth and Also Discovers New Mineralized Zone "GS West" Located 750m Along Trend from the Golden Saddle Deposit


Endeavour Silver Increases Silver Production

Endeavour Silver recently announced production results for the third quarter of 2018 from the Company's three silver-gold mines in Mexico. Production in the third quarter of 2018 was 1,428,828 ounces of silver and 12,968 ounces of gold, representing production of 2.4 million ounces silver equivalent using a 75:1 silver-gold ratio. Silver equivalent production in the third quarter of 2018 was higher than in the third quarter of 2017 and the second quarter of 2018 due to significantly higher silver and gold grades at El Cubo mined in the middle of the Villalpando-Asunción ore body. Throughput and grades at Guanaceví are expected to continue to increase as the recently developed higher grade Milache orebody goes into production this month and gold grades at Bolañitos are expected to increase in the fourth quarter of 2018.

News: Endeavour Silver Produces 1,428,828 oz Silver and 12,968 oz Gold (2.4 Million oz Silver Equivalents) in the Third Quarter, 2018

Video interview mit Joe Brunner und Bradford Cooke:
Interview with Bradford Cooke, CEO of Endeavour Silver, and SmallCap-Investor  

Panoro Minerals enters into joint venture with Japanese Major

Panoro Minerals recently reported the signing of a joint venture agreement with Japan Oil, Gas and Metals national Corporation (JOGMEC) on its Humamantata property in Peru. JOGMEC will have an option to acquire 60% of an indirect beneficial interest by investing US$8.0 million.
The company can thus finance another of its attractive projects in the initial phase.

News: Panoro Announces Joint Venture with JOGMEC for Humamantata Project, Peru


Aurania Resources Discovers Significant Copper-Silver Mineralization

Aurania Resources recently reported that significant copper mineralization was discovered by two separate regional exploration teams at the Lost Cities - Cutucu Project in Ecuador. The discoveries are about 20 kilometres apart: the first destination is called "Jempe" and the other "Kirus". The discoveries were made during the exploration of two of the many magnetic targets identified during the geophysical survey conducted as part of the project. Surface samples of up to 3% copper and 59g/t silver were detected on the projects.
The Company believes that these are only outlying areas of potentially higher-grade mineralization.

News: Home PRESS RELEASE Aurania Reports the Discovery of the First Significant Copper Mineralization in the Lost Cities - Cutucu Project


Uranium Energy completes US$20 million financing and is rated at US$2.90 price target

Uranium Energy recently completed an oversubscribed US$20 million financing. The net proceeds of the offering will be used to fund exploration and development investments on the Company's projects and for general corporate and working capital purposes.
Meanwhile, Haywood Securities published a new research report on Uranium Energy and considers a target price of US$2.90 fair.

News: Uranium Energy Corp Closes $20 Million Public Offering

Research-Report: Research Update for UEC by Haywood - Target price USD 2.90


Caledonia Mining remains on course for gold production

Caledonia Mining recently announced quarterly gold production from the Zimbabwe blank mine for the quarter ended September 30, 2018. Gold production during the quarter was approximately 13,978 ounces, up 10 percent over production in the second quarter of 2018 and 3 percent below production in the third quarter of 2017. Gold produced for the nine months ended September 30, 2018 was 39,559 ounces, slightly below the 39,710 ounces produced in the corresponding period of 2017. The improvement in production in the quarter is expected to continue in the fourth quarter. The directors of Caledonia have decided to reduce the production forecast range for 2018 from 55,000 to 59,000 ounces to between 54,000 and 56,000 ounces.
Caledonia remains on track to meet its production target of 80,000 ounces in 2021.

News: Q3 2018 Production update and earnings downgrade


Nordic Gold receives approval to start Laiva Mine operations

Nordic Gold recently announced that it has received written confirmation from the Finnish regulatory authority ELY that it has provided all necessary documentation and that it can resume mining and processing at its Finnish mining project Laiva Gold Mine. Mining in Laiva began a few weeks ago in mid-August to create access and free working areas. The company has carried out three blastings per week and is stockpiling mineralised material to enable commissioning of the plant. Currently, approximately 62,000 tons of mineralized materials are stored and ready for processing. Around 15,000 tons of mineralized material were passed through the primary crusher during the recommissioning phase. This mineralized material is stored in the comminution warehouse and is ready for the imminent re-commissioning of the mills. With the approval now granted by ELY, the mill and plant can now go into operation.

News: Nordic Gold Announces Approval of Mine Start-up by Finnish Mine Supervising Authority ELY

Video: NordicGold: 40 ton blast movie  

Nordic Gold secures US$7 million financing for itself

Nordic Gold also announced that it has entered into an agreement with PFL Raahe Holdings LP to provide additional funding of US$7 million to enable the company to achieve production at the Laiva gold mine.
Mining began on 5 August 2018 and the 1st gold casting is scheduled for 27 November 2018.

News: Nordic Gold Secures Funding to Complete the Path to Production


Millennial Lithium expands lithium brine resource and brings Credit Suisse on board

Millennial Lithium recently announced positive drilling and analytical results from the latest exploration drilling at the Pastos Grandes Project in Salta, Argentina. Two new exploration wells (PGMW18-16 and 17) have intersected and bottomed lithium-bearing brine zones, with PGMW18-17 intersecting positive lithium grades in a 545-metre-thick lithium-bearing horizon, including a high grade of 701 mg/L Li. A warehouse for 40 people will be built on the site, including a state-of-the-art solar hybrid energy system, while work on the site is progressing in a pilot plant for the production of battery-compatible lithium carbonate. Millennial also announced that it has engaged Credit Suisse to act as its senior financial advisor to support the company in exploring possible future project financing alternatives and ongoing strategic discussions.
Millennial is thus making great strides in the direction of promotion.

News: Millennial Expands Lithium Brine Horizon at Pastos Grandes

Video: Millennial Lithium: Constructing Pilot Plant & Working On Project Financing  


Auryn Resources Reports High Grade Rock Sampling Results

Auryn Resources recently announced more positive results from its Sombrero project in southern Peru following a rock sampling program focused on the Ferrobamba limestone. The company found up to 31.6g/t gold, 35.2g/t silver and 5.25% copper.
Once again, the company demonstrated the huge potential of its Sombrero project.

News: Auryn Samples up to 31.6 g/t Gold and 5.25% Copper in the Ferrobamba limestone at Sombrero


Treasury Metals announces updated resource estimate

Treasury Metals recently announced an updated National Instrument 43-101 compliant mineral resource estimate on its 100% owned Goliath Gold Project. Total mineral resources explored and indicated now total 1,229,800 ounces gold equivalent (16.20 million tonnes at 2.36 g/t AuEq).
The underground explored and indicated AuÄq ounces thus increased by 64% over the 2015 mineral resource estimate.

News: Treasury Metals Announces 1.2 Million Ounces Gold Equivalent Measured & Indicated Mineral Resource Estimate with Gold Grade Increase



Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following companies mentioned in this issue: First Cobalt + Copper Mountain Mining + White Gold + Endeavour Silver + Panoro Minerals + Aurania Resources + Uranium Energy + Caledonia Mining + Nordic Gold + Millennial Lithium + Auryn Resources + Treasury Metals.

Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: First Cobalt + Copper Mountain Mining + White Gold + Endeavour Silver + Panoro Minerals + Aurania Resources + Uranium Energy + Caledonia Mining + Nordic Gold + Millennial Lithium + Auryn Resources + Treasury Metals.

This publication is based on Swiss Resource Capital AG's detailed risk warnings, limitations of liability and disclaimers, which can be viewed here: Risk Disclosure and Disclaimer

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