Newsletter Issue 20 /2018
Share of the week: White Gold
White Gold shines with several high-calibre gold finds of up to 139.9 g/t
White Gold has been able to report several high-calibre gold discoveries in recent days. The strike of the Golden Saddle deposit encountered 20.64 g/t Au over 6.1m and 5.02 g/t Au over 13.2m on the Ryan's Showing target.
Initial drill results from the Vertigo target on the JP Ross, Yukon property have also been announced. One of the drill holes returned an average of 56.25 g/t Au over 3.05 m from 3.05 m depth within a wider interval of 17.34 g/t Au over 10.67 m, one of the highest grades ever found in the White Gold area.
Further surface samples along strike from the recent Vertigo discovery also returned 139.9 g/t, 134.6 g/t and 132.9 g/t Au, among others, on the Vertigo target over a strike length of 685 m with seven samples grading more than 10 g/t Au, eleven samples grading more than 1 g/t Au and five samples grading more than 100 g/t silver, including one sample grading more than 1,000 g/t silver.
Recent high grade discoveries a few days ago led to the acquisition of additional claims immediately to the west and south of the JP Ross property, in the vicinity of the recent discovery.
White Gold's land package is increasingly turning into a hotspot of extremely high-grade gold discoveries that are likely to steadily increase the value of the company.
News 1: White Gold Makes New High-Grade Gold Discovery Along Trend with Golden Saddle Deposit Including 20.64 g/t Au Over 6.1m & 5.02 g/t Au Over 13.2m at Ryan’s Showing Target on White Gold Property, Yukon
Barrick will take over Randgold! Officially, it is a merger with a total volume of around US$ 18 billion. After the transaction, Barrick shareholders will hold approximately two-thirds of the Group's total share capital, while former Randgold shareholders will hold one-third. 5 of the 10 mines with the lowest mining costs in the world will then belong to Barrick. In addition, the company will pass by the former Primus Newmont in terms of size.
Much more interesting, however, is the actual takeover or merger aspect. The fact that these are two of the world's largest companies is likely to cause a great stir in the gold sector and set off a spiral of takeovers, at the end of which the companies will be better and more efficiently positioned than before. At the same time, however, mines are also likely to be closed, which will have a negative impact on gold production. A perfect scenario for a rising gold price in the future!
Bluestone Resources Announces Higher Resource Estimate for Cerro Blanco
Bluestone Resources recently announced a new high quality mineral resource estimate for the Cerro Blanco gold project in Guatemala. Accordingly, the project now has a total Measured Resource of 96,184 ounces or 290,153 tonnes grading 10.31 g/t Au, Indicated Resources and Measured Values in line with expectations - 1,105,284 ounces or 3,426,400 tonnes grading 10.03 g/t Au and Inferred Resources of 357,319 ounces or 1,373,342 tonnes grading 8.09 g/t Au, an increase of 308,000 ounces over the most recent PEA.
Bluestone Resources was once again able to prove that Cerro Blanco is one of the absolute top stories of 2018!
EnWave supplies freezer to pharmaceutical giant Merck
A few days ago, EnWave was quick to take notice with the announcement that its first 9 kW cGMP Radiant Energy Vacuum ("REV™) pharmaceutical freeze dryer for Merck, known as MSD, had been shipped.
The successful completion of Factory Acceptance Testing with Merck marks an important milestone in the commercialization of EnWave's REVTM technology in the pharmaceutical industry.
Aurania Resources extends primary Crunchy Hill target to over one kilometre
Aurania Resources recently reported that an extension to its Crunchy Hill target has been confirmed in the soil enrichment of scout elements over one kilometre trend. The enrichment of the Pathfinder element outlines the shape of an apparently underlying vein system used, along with other data sets, to refine the shape and depth of a possible epithermal gold-silver target. Crunchy Hill is the Company's most advanced target in the Lost Cities - Cutucu project in Ecuador and will be the first target to be drilled in late 2018. Detailed exploration will be carried out on other targets so that they can be sequentially prepared for scout drilling after initial drilling on Crunchy Hill.
Does this indicate the beginning of a story similar to that of Fruta del Norte?
TerraX Minerals Expands Giant/Con Gold System Up to 171 g/t Au
TerraX Minerals recently announced further assay results from the Company's summer field program for the Yellowknife City Gold Project.
High-grade gold assays from hand samples have extended the strike of the Gull and Rater Lake zones. As previously reported, these new targets are located in the same mafic volcanic geology as the Giant and Con mines and in the TerraX core exploration area. Highlights included 171.0 g/t Au, 5.60 g/t Au, 5.29 g/t Au and 4.49 g/t Au in the Rater Lake zones and 72.0 g/t Au, 52.5 g/t Au, 29.0 g/t Au and 12.95 g/t Au in the Gull Lake zone.
What a result! And this within the core exploration area!
TerraX Minerals acquires Tom Mine and Sickle properties
In addition to its exploration activities, TerraX Minerals continues to expand its Yellowknife City Gold project by announcing the acquisition of a 100% interest in the Tom Mine (6 square kilometres) and Sickle (2 square kilometres) properties from Altamira Gold Corp. Tom Mine was a gold producer in the Yellowknife Gold District between 1985 and 1997. The Tom and C vein systems were reached via an access ramp to 122 m vertical depth over a 300 m strike length. When the mine was closed in 1997, the veins to the depth below the current mine were still open. The Sickle Property is underlain by the Walsh Lake sediments, which are the host rocks of TerraX's Muspickle Zone. Several historic gold occurrences with gold grades up to 4 g/t occur on the property.
While the results of the summer exploration program continue to fill the pipeline of key targets, the TerraX team continues to assemble a world-class land package. Very good.
Copper Mountain Mining shines with a 339 metre long copper ore intercept
Copper Mountain Mining recently reported recent top results from Phase 2 of the three-phase drilling program at the New Ingerbelle property. Among other things, 0.37 % CuÄq over 339 m was found! The highest grades were obtained from a 135 m long intercept averaging 0.71% CuEq.
Further top results from New Ingerbelle, which is increasingly becoming the focus of future mining opportunities.
Copper Mountain Mining Announces New Resource Estimate for New Ingerbelle
Copper Mountain Mining recently announced mineral resources for its New Ingerbelle property following completion of the Phase 2 drill program. The drilling program has successfully expanded the resource area and converted a significant portion of the previously inferred mineral resources into the Indicated and Measured categories. The New Ingerbelle deposit is located approximately one kilometer from the company's headquarters, the Copper Mountain Mine.
Accordingly, New Ingerbelle has more than one billion pounds of copper and one million ounces of gold in a Measured and Indicated mineral resource with a cut-off grade of 0.12% copper. Further measured and indicated mineral resources of 151 million tonnes grading 0.29% copper and 0.18 g/t gold (0.41% CuEq) at a cut-off grade of 0.16% copper and inferred mineral resources of 69 million tonnes grading 0.27% copper and 0.16 g/t gold (0.38% CuEq) for contained metal of 405 million pounds copper and 0.36 million ounces gold at a copper grade of 0.16% at 0.29% copper and 0.18 g/t gold (0.41% CuEq), respectively.
The results of the resource estimate based on the Phase 2 drill program have already exceeded the Company's Phase 3 target!
Sibanye-Stillwater buys back high-yield bonds ahead of schedule and reduces interest burden by US$ 25 million per year
Sibanye-Stillwater reported early results a few days ago on its offer to repurchase up to US$350 million (including accrued interest) of 6.125% bonds due June 27, 2022 and 7.125% bonds due June 27, 2025 issued by Stillwater Mining Company.
Both offers were therefore fully subscribed. The buyback, which is planned for the early due date of 19 September 2018, is in line with the achievement of the strategic objectives of reducing the debt ratio. The repurchase of the high-yield bonds and the repurchase of the convertible bonds repay approximately 30% of the long-term debt at a nominal value of approximately US$ 415 million, which is expected to reduce the annual interest expense by approximately US$ 25 million.
A big step towards a drastic reduction of the debt burden and a small one towards cash dividends paid out again regularly?!
Caledonia Mining increases resource base of Blanket Mine
Caledonia Mining recently announced an upgrade to its Blanket Mine resource base in Zimbabwe. Based on the development and diamond core drilling completed to the end of July 2018, combined with improvements to the geological model, total measured and indicated gold ounces at the Blanket Mine increased 13% from 714,000 ounces in August 2017 to 805,000 ounces in July 2018. Total Measured and Indicated resources now amount to 6.74 million tonnes at a grade of 3.72 g/t. Inferred gold resources at Blanket were increased by 9% from 887,000 ounces in August 2017 to 963,000 ounces in July 2018. Total inferred resources now amount to 6.63 million tonnes at a grade of 4.52 g/t.
This will drastically increase the mine life and thus significantly increase the company value.
Endeavour Silver Announces Another Terronera Top-Class Result
Endeavour Silver recently reported that supplementary infill drilling in the Terronera vein system intersected high grade silver-gold mineralization in 17 additional holes. Highlights of drilling include three high-grade vein extensions with a total width of 12.3 m intersected in hole TR11-8. The best intercept returned 1,297 grams of silver per tonne and 0.9 g/t gold over a true thickness of 6.1 metres.
Unbelievable grades, which Endeavour Silver reports almost weekly about its Terronera project!
Osisko Gold Royalties receives around US$ 118 million from stream buyback
Osisko Gold Royalties recently announced that Osisko Bermuda Limited, a wholly owned subsidiary of Osisko, has received notice from Pretium Exploration Inc., a subsidiary of Pretium Resources Inc., to exercise its option to repurchase OBL's entire interest in the Brucejack Gold and Silver Streams.
Under the Stream Agreement, Pretium had the option to repurchase 100% of OBL's interest in the Brucejack Gold and Silver stream by paying US$118,500,000 to OBL on December 31, 2018. To exercise this option, Pretium had to give written notice to OBL 90 days prior to that date whereby at that time the stream repurchase becomes a binding commitment on behalf of Pretium. Osisko expects to use the proceeds from the stream buyback to repay debt and finance further investments. The stream buyback does not affect Osisko's 2018 production forecast of 77,500 to 82,500 ounces gold equivalent. Osisko continues to hold its 50 % gold purchase interest in the Brucejack mine.
Investors should see this with a weeping and a laughing eye. The stream that was supposed to start in 2020 is gone, but Osisko is making a big profit out of the deal.
Uranium Energy at USA Today
Uranium Energy recently announced that USA TODAY published an Op-Ed by UEC Chairman Spencer Abraham entitled "Domestic uranium necessary for national security, healthy nuclear energy programs" on 20 September. Mr. Abraham is a former US Secretary of Energy and US Senator. In USA TODAY, Secretary Abraham expresses the need for a healthy uranium industry in the USA, its importance for national security and the risks the country faces from excessive dependence on foreign uranium. It also commends the current government for its efforts to implement a constructive policy aimed at rebuilding and maintaining a vibrant indigenous uranium and nuclear industry.
Nordic Gold: Target price 0.46 CA$!
The investment firm Fundamental Research recently published a research study on Nordic Gold and issued a speculative buy recommendation with a price target of 0.46 CA$.
Panoro Minerals receives rain of money
Panoro Minerals recently announced that it has received its seventh upfront payment of US$ 750,000 under the precious metals purchase agreement with Wheaton Precious Metals International Ltd. The key terms of the Cotabambas Early Deposit Agreement are described in the Company's news release dated March 21, 2016 that WPMI Panoro will pay upfront payments of US$140 million for 25% of paid gold production and 100% of paid silver production from the Company's Cotabambas project in Peru. In addition, WPMI will make production payments to Panoro at the lower market price of US$450 per payable ounce of gold and US$5.90 per payable ounce of silver to be delivered to WPMI during the term of the Cotabambas project.
Panoro has the right to receive $14 million as an upfront payment over a period of up to 9 years, which will be used to fund corporate expenses related to the Cotabambas project.
Auryn Resources reports top drilling results
Auryn Resources recently announced the results of further excavation work on its Sombrero copper-gold skarn project in southern Peru. A particular highlight was trench number 18, which contained 30 metres of 1.93% Cuäq, 24 metres of 0.73% Cuäq and 54 metres of 0.34% Cuäq.
The first wells are expected to be drilled on Sombrero in the first quarter of 2019. The results for Committee Bay and Homestake Ridge are expected in the coming weeks.
First Cobalt Announces First Resource Estimate for Iron Creek
First Cobalt announced the results of its first NI 43-101 mineral resource estimate for its 100% owned Iron Creek Cobalt Project in Idaho, USA a few days ago. Accordingly, Iron Creek has 29.6 million tonnes of inferred mineral resources with a cobalt equivalent of 0.11% (0.08% cobalt and 0.30% copper) under a base case scenario with limited and deeper mineral resources. An alternative pure underground scenario results in 4.9 million tonnes at 0.30% cobalt equivalent (0.23% cobalt and 0.68% copper). The resource now contains 45 million pounds (20,411 tonnes) of cobalt and 175 million pounds (79,379 tonnes) of copper for 62.9 million pounds (28,528 tonnes) of cobalt equivalent.
First big number First Cobalt throws in that ring. And Iron Creek isn't even the primary flagship project!
First Cobalt: Target price 0.70 CA$!
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold shares in the following companies mentioned in this issue: White Gold + Barrick + Randgold + Bluestone Resources + EnWave + Aurania Resources + TerraX Minerals + Copper Mountain Mining + Sibanye-Stillwater + Caledonia Mining + Endeavour Silver + Osisko Gold Royalties + Uranium Energy + Nordic Gold + Panoro Minerals + Auryn Resources + First Cobalt.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: White Gold + Bluestone Resources + EnWave + Aurania Resources + TerraX Minerals + Copper Mountain Mining + Sibanye-Stillwater + Caledonia Mining + Endeavour Silver + Osisko Gold Royalties + Uranium Energy + Nordic Gold + Panoro Minerals + Auryn Resources + First Cobalt.
This publication is based on the detailed risk information, limitations of liability and disclaimers of Swiss Resource Capital AG, which can be viewed here: www.resource-capital.ch/en/disclaimer.html