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Newsletter 22 /2018

During the recent commodity fairs in Zurich (Precious Metals Summit Zurich) and Munich (International Precious Metals & Commodities Fair) interviews were conducted with some extremely interesting partners. Some of these interviews can be found in this issue.
GoldMining: Rea Uranium Deposit - "The Secret Weapon"
Cardinal Resources: Updated PFS Coming Out In Q1 2019
Orsu Metals: Drilling Towards Resource Estimate At Russian Gold Project
Revival Gold: Targeting Resource Of 3 Million Oz Gold

Special First Cobalt Roadshow:
Henrik Fisker and First Cobalt! Building the next big thing in E-Mobility Cobalt Supply  

Share of the week: Aurania Resources
Aurania Resources encounters high grade copper zones

Aurania Resources recently reported copper grades ranging from 4% to 7% in rock samples collected as part of exploration work on the Kirus and Tsenken targets. The Company has reported high grade copper grades from the Jempe Target on the Lost Cities - Cutucu Project in Ecuador. Silver grades in these samples are also high and range from 20 g/t to 79 g/t. Copper is found in the minerals copper luster, cuprite and malachite in layers of fine-grained layered tuff and sedimentary rocks. These minerals are considered "secondary" copper minerals and are believed to represent a remobilization and precipitation of copper resulting from the weathering of nearby primary porphyry copper occurrences and transported laterally in the groundwater horizon. Such secondary zones are referred to as "supergene" and can form economically valuable low depth enrichment zones known as copper blankets.

News: Aurania Reports High-grade Copper From A New Target From Its Project In Ecuador And Approval Of Warrant Extension


Market overview:

Glencore shakes up the cobalt sector

Cobalt, an important raw material in lithium-ion batteries, will no longer be exported by Glencore from the Congo in the foreseeable future. The vast majority of cobalt, 66 percent in 2017, comes from the Congo. Glencore's announcement that its subsidiary Katanga Mining will no longer supply cobalt due to radioactive contamination could result in higher cobalt prices. After all, the Katanga mines are one of the most important suppliers of cobalt on earth. To remove uranium from the ore in these mines, leading cobalt producer Glencore plans to build a US$25 million ion exchange system. As soon as the necessary approvals have been obtained, the system is to go into operation by the second quarter of 2019. Approximately 1,472 tons of finished product are to be affected. And that's not little. In this day and age where electric mobility is gaining momentum and cobalt prices are predicted to rise, the debacle at the Katanga mines could further fuel prices for this coveted commodity. Companies with cobalt projects outside Congo, such as M2 Cobalt or First Cobalt, are getting ready.

Interviews Precious Metal & Battery Metals Summit 2018, Zurich:
Metallic Minerals: Further Drilling Towards Resource Estimate In 2019
Alexco Resource: Releasing PFS & Production Decision In 2019
Radisson Mining: Exploring Historic Mine Property In The Cadillac Mining Camp
Avesoro Resources: Production Of ~220k Oz Gold In West Africa In 2018

Company news:
Osisko Gold Royalties with Good Cash Flow and Further Dividend Payment
Osisko Gold Royalties recently announced its consolidated results for the third quarter ended September 30, 2018. The Company generated revenues of 20,006 ounces of gold equivalent ("GEOs"), totaling 60,548 GEOs for the year to date. For 2018 as a whole, the annual GEOs are expected to be in line with the previously announced forecast of 77,500 to 82,500 GEOs. Cash provided by operating activities was $20.6 million, an increase of 177% over the third quarter of 2017.
Once again top results in growth. There will also be the next (already 17th) quarterly dividend payment.
News 1: Osisko Reports Third Quarter 2018 Results - $20.6M Cash Flows Generated From Operating Activities
News 2: Osisko Declares 17th Consecutive Quarterly Dividend
Video: Osisko Gold Royalties: Acquiring Victoria Gold Royalty Stream  
TerraX Minerals finds up to 63g/t gold!

TerraX Minerals recently announced further assay results from the Company's 2018 summer field drill program for the Yellowknife City Gold (YCG) project. A total of 262 samples were taken from the company's Northbelt target, which is the potential extension of the Con-Giant trend and the core area.
Accordingly, 20 of the rock samples contained more than 1g/t gold, 9 samples contained more than 5g/t gold and 6 samples contained more than 10g/t gold. The best result was 63g/t gold.
Very good results, which should soon lead to a drilling program for 2019.

News: Terrax 2018 Summer Exploration program continues to expand Northbelt Target


Interviews Precious Metal & Battery Metals Summit 2018, Zurich:

Fireweed Zinc: Improving Resource & PEA Of Zinc Project In Yukon

EMX Royalty: 103 Assets Worldwide

McEwen Mining: Focussing On Strong Growth Strategy

Nemaska Lithium: Fully Funded - Mine Under Construction


Bluestone Resources: Study with Target Price 3 CA$

The renowned investment house Canaccord recently published a research report on Bluestone Resources. The analysts reached a fair price target of 3 CA$.

Report: Canaccord First-Research Bluestone with 3 CAD Target Price


Copper Mountain Mining on a very good path

A few days ago, Copper Mountain Mining announced its results for the third quarter of 2018. Production at the Copper Mountain Mine in the third quarter of 2018 was 22.0 million pounds of copper equivalent, including 18.3 million pounds of copper, 7,500 ounces of gold and 64,900 ounces of silver, in line with expectations. The Company is now on track to meet its 2018 annual production forecast of 80 million pounds of copper, with the expectation of a strong fourth quarter. Revenue for the third quarter of 2018 was US$60.7 million from the sale of 17.6 million pounds of copper, 6,300 ounces of gold and 62,500 ounces of silver, excluding price adjustments. Positive feasibility study results for the Eva copper project showed an NPV of US$256 million at an 8% discount rate and total copper production of £959 million over 12 years. Robust Preliminary Economic Estimation Results (PEA) for New Ingerbelle showed a net present value after tax of US$394 million at a discount rate of 8% and total copper production of 768 million pounds over a 12-year life.
Production is expected to be strong in the fourth quarter as the company mines higher grade ore again.

News: Copper Mountain Mining Announces Q3 2018 Financial Results


Interviews Precious Metal & Battery Metals Summit 2018, Zurich:

Mundoro Capital: Exploring Two East European Gold Projects With Partners

Eastmain Resources: Strong PEA Released - Further Drilling At Gold Deposits In Canada

Tudor Gold: Exploring Treaty Creek Gold Deposit In Golden Triangle

PPX Mining: Ramping Up Production In Peru - PFS Coming Soon


Steppe Gold performs final steps to first gold casting

Steppe Gold recently announced that it is currently taking the final steps on its way to the first gold casting on the Altan Tsagaan Ovoo ("ATO") Gold Project in Mongolia. All materials for the crusher and leaching pond have been delivered to the site and construction is in full swing. The ATO crushing circuit is nearing completion and the final works are being carried out. The crusher will be commissioned in the coming weeks on the mined ATO1 ore. The design of heap leach pads is also well underway, with significant progress made over the past month. The accommodation and the restaurant of the mining camp are fully functional, with 106 people on site. In addition, DRA Global has been selected to lead and conduct a bankable feasibility study for the construction and development extension of the ATO Gold Project to 150,000 ounces of gold per year.
The ATO project is progressing very rapidly. The company is pressing ahead intensively with the completion of the construction site by the end of 2018, with the first gold casting in the first half of 2019.

News: Steppe Gold: Development Update

Endeavour Silver reports quarterly results

Endeavour Silver recently reported financial results for the third quarter of 2018, reporting a net loss of $5.5 million for the third quarter of 2018 compared to a net profit of $1.0 million for the third quarter of 2017. The loss was primarily due to higher write-downs and impairments. Sales decreased 6% to $37.6 million and pre-tax operating cash flow from mines decreased 20% to $9.6 million due to lower metal prices achieved and higher costs partially offset by higher silver production.
Not exactly intoxicating numbers, given that Guanacevi will soon be replaced by nearby mines, El Compas is now in operation and the Terronera giant project is expected to go online in 2020, the numbers are better than expected - especially in the current weak silver environment.

News: Endeavour Silver Reports Third Quarter, 2018 Financial Results


Interviews Precious Metal & Battery Metals Summit 2018, Zurich:

Geodrill: Leading Drilling Contractor InWest Africa

Latin America Resource Group: Waiting For Drill Permits - Exploration Program Starting Early 2019

Fortune Minerals: Updating Feasibility Study For Cobalt & Bismuth Project

Magna Gold: New Company Exploring Gold Deposit In Mexico


Sibanye-Stillwater announces quarterly results

Sibanye-Stillwater published its latest quarterly results a few days ago. Among other things, the company focused on successful debt reduction and operational reliability.

News: Sibanye Stillwater: Operating Update for the Quarter Ended 30 September 2018


US Gold starts drilling on Keystone

A few days ago US Gold announced the start of the autumn 2018 drilling program on its 20 square kilometre Keystone project in the Cortez Trend in Nevada. The program is expected to test several drill targets in areas previously inaccessible due to drill restrictions. The identification and qualification of these targets has been ongoing since the beginning of the exploration program nearly three years ago.
The Autumn 2018 drilling program will now provide a first test for some of the Keystone project's most compelling targets.

News: U.S. Gold Corp. commences Autumn 2018 drilling program at the Keystone Project, Cortez Trend, Nevada

Video-Interview: U.S. Gold: Targeting Expansion Of Copper King Resource


EnWave announces further machine sales

EnWave recently announced that it has signed a research and development licensing agreement with the College of Agriculture and Life Sciences of Cornell University. CALS has also committed to purchase a 10 kW Radiant Energy Vacuum ("REV™") dehydrogenation machine to be used in its New York Center of Excellence for Food and Agriculture in New York State. Under the terms of the agreement, Cornell will use the REV™ machine for research and development purposes to disseminate REV™ technology to key stakeholders in the food production industry throughout New York State and to support the development of innovative, high-quality food applications.

News: EnWave Signs Research and Development License Agreement with Cornell University, Receives Purchase Order for Small-Scale REVTM Machine for Cornell’s Center of Excellence


First Cobalt tests material for commissioning its own refinery

First Cobalt recently announced that it has begun testing the cobalt hydroxide material used to feed First Cobalt's refinery. SGS Canada was commissioned to test the suitability of various cobalt feedstocks using the current workflow diagram of First Cobalt's refinery. The cobalt hydroxide material is evaluated as a source of feedstock for the refinery to produce cobalt sulphate or metallic cobalt products for sale on the North American market. Discussions are also being held with cobalt mining companies and commodity traders to explore options for ethically acceptable cobalt hydroxide production.

News: First Cobalt Begins Testing Material for Refinery Restart


White Gold completes financing - Majors still fully involved

White Gold announced a few days ago the completion of its recently announced public offering of common shares and the simultaneous broker-led private placement of common shares. The public offering included the sale of 5,000,000 shares issued at a price of CA$ 2.00 per share for total gross proceeds of CA$ 10,000,000. The simultaneous private placement included the sale of 3,333,332 common shares at a price of CA$1.50 per common share for total gross proceeds of CA$5,000,000.
The gross proceeds from the sale of the FT Shares will be used by the Company to assume exploration expenses on its properties in the White Gold District of the Yukon Territory prior to December 31, 2019. The net proceeds from the sale of the ordinary shares will be used for general corporate purposes.
Under existing investor rights agreements between the Company and Agnico Eagle Mines Limited and with Kinross Gold Corp, Agnico and Kinross exercised their right to participate in the offering and each purchased 1,666,666 common shares. As a result, Agnico and Kinross each hold a 19.6 % stake in the company after completion of the offering.
The company continues to enjoy broad confidence among investors and majors holding shares.

News: White Gold Corp. Completes Offerings to Raise Aggregate Gross Proceeds of C$15 Million; Agnico Eagle Mines and Kinross Gold Corp. Each Maintain 19.6% Interest

Video-Interview: White Gold: Exploring White Gold District In Partnership With Agnico Eagle


RavenQuest receives B2B license

RavenQuest BioMed recently announced that its wholly owned subsidiary, Bloomera Inc., has received its Business to Business ("B2B") distribution license from Health Canada. The B2B license now allows RavenQuest to sell dried cannabis, plants and seeds to other standard cultivators (licensed producers).
Thus RavenQuest can now generate a significant cash flow.

News: Ravenquest Receives Migrated License from Health Canada Permitting B2B Sales of Cannabis


Auryn Resources Discovers New Gold-bearing System

Auryn Resources recently announced that it has discovered a 1.5-kilometre gold-bearing hydrothermal system on the Aiviq target. A total of 16 diamond drill holes (4,996 metres) continuously intersected the target structure with the best intercept containing 13.5 metres of 1.54 g/t gold (including 6 metres of 3.3 g/t gold).
A little drumbeat at Auryn that makes you want more.

News: Auryn Drills Gold-Bearing Hydrothermal System at Committee Bay


Caledonia Mining reports quarterly results

Caledonia Mining recently announced its operating and financial results for the third quarter of 2018. Gold production of 13,978 ounces was 2.9 percent below the quarter ended September 30, 2017, and gold production for the nine months ended September 30, 2018 was 39,558 ounces, 0.4 percent less than the corresponding period in 2017. Adjusted earnings per share for the quarter of 33.1 cents were 17 percent lower than the year-earlier quarter due to a slightly weaker realized gold price and higher production costs, but 24.4 percent higher for the nine months ended September 30, 2018 than for the same period in 2017 due to increased export credit incentives and a higher average realized gold price for the nine months. Net cash provided by operating activities remained robust at $6.8 million, despite being lower than the comparable quarter, which was an unusually strong quarter. The net balance at the end of the quarter was US$ 5.9 million.

News: Caledonia Mining: Results for the Quarter ended 30 September 2018

MAG Silver announces great progress at Juanicipio

A few days ago, MAG Silver announced the company's unaudited financial results for the three and nine months ended September 30, 2018. In this context, the company also reported on major progress achieved at Juanicipio. Underground development work in the nine months ending September 30, 2018, comprised a total of 5,159 meters of tunnelling work and accounted for 32% of the tunnelling work carried out to date on the Juanicipio Project. To date, a total of 16 kilometres (10 miles) of underground development work has been carried out on Juanicipio.

News: MAG Silver Reports Third Quarter Financial Results


Panoro Minerals with drill program and milestone payments

Panoro Minerals recently reported progress on two of its projects. As part of the Humamantata Project, Panoro and its partner, the Japanese Oil, Gas and Metals National Corporation (JOGMEC), have agreed to a proposed exploration plan that represents a US$3.0 million investment funded by JOGMEC.
On the Kusiorcco project, Hudbay Minerals Inc. has notified Panoro that surface access agreements have been entered into that will allow further development of exploration activities. Under the terms of the agreement announced on January 8, 2018, Panoro expects milestone payments to begin in 2019.

News: Panoro Minerals Announces Advancements at Humamantata and Kusiorcco Copper Projects, Peru


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: Aurania Resources + Gold Mining + Cardinal Resources + Orsu Metals + Revival Gold + Glencore + M2 Cobalt + First Cobalt + Metallic Minerals + Alexco Resource + Radisson Mining + Avesoro Resources + Osisko Gold Royalties + TerraX Minerals + Fireweed Zinc + EMX Royalty + McEwen Mining + Nemaska Lithium + Bluestone Resources + Copper Mountain Mining + Mundoro Capital + Eastmain Resources + Tudor Gold + PPX Mining + Steppe Gold + Endeavour Silver + Geodrill + Latin America Resource Group + Fortune Minerals + Magna Gold + SibanyeStillwater + US Gold + EnWave + White Gold + RavenQuest BioMed + Auryn Resources + Caledonia Mining + MAG Silver + Panoro Minerals.

Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Aurania Resources + GoldMining + First Cobalt + Osisko Gold Royalties + TerraX Minerals + Bluestone Resources + Copper Mountain Mining + Steppe Gold + Endeavour Silver + Sibanye-Stillwater + US Gold + EnWave + White Gold + RavenQuest BioMed + Auryn Resources + Caledonia Mining + MAG Silver + Panoro Minerals.

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

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