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Newsletter 10 /2019

This newsletter contains news on the following topics:

Share of the week: IsoEnergy + Gold with Breakout - Sustainable or Bull Trap - A Chart Analysis + Maple Gold Mines + Auryn Resources + Endeavour Silver + Aurania Resources + Osisko Gold Royalties + White Gold + US Gold + GoldMining + Generation Mining + Sibanye-Stillwater + Fission 3.0 + TerraX Minerals + EnWave + Aurora Cannabis + First Cobalt + eCobalt + Jervois Mining

Share of the week: IsoEnergy

IsoEnergy starts drilling program ...
IsoEnergy recently announced that it has commenced a program of follow-on core drilling aimed at expanding the newly discovered uranium mineralization of the Hurricane Zone on its 100% owned Larocque East property in the eastern Athabasca Basin of Saskatchewan.
This summer drilling program is the most significant drilling program to date, and we can look forward to the results. Hurricane is located in an excellent location, at a relatively shallow depth not covered by water and only 40 km from the modern, high quality McClean Lake uranium mill, which currently has overcapacity. The programme will be implemented at an important time for the uranium industry with a number of potential catalysts to improve uranium prices, which could materialise in the coming months.
News: IsoEnergy Begins Hurricane Uranium Zone Summer Drilling Program
Company presentation: IsoEnergy: Drilling For Uranium At Multiple Projects In Athabasca Basin

... and lands hit in the first borehole
The Company further reported that several intercepts of uranium mineralization were encountered in the first hole. Drill hole LE19-14B intersected a 2.0m thick upper zone of 323.0-325.0m sandstone dominated mineralization. The upper zone is followed by a 3.5m thick lower zone with dominant sandstone mineralization located on the top of the Sub-Athabasca Conformity of 327.5-331.0m. Further results can be expected soon.
News: IsoEnergy Intersects 5.5m of Uranium Mineralization in First Drill Hole of Summer Program at the Hurricane Zone
Newsflash: Newsflash #95: Sibanye-Stillwater´s Acquisition Of Lonmin & IsoEnergy Expands Larocque East Uranium Property

Market overview:

Gold with a Breakout - Sustainable or Bull Trap - A Chart Analysis

In the past few days, gold has broken above the previous, apparently insurmountable level of US$ 1,385 to US$ 1,400 for many years, thus generating a buy signal that quickly led into the range around US$ 1,430. But what happens now? Fundamentally, things are looking better for gold than they have in a long time. We have ventured into the chart technique and give you in the following the most important information about brands, resistances, supports and potentials:

Video: Point And Figure Chart Analysis On Gold & Silver, June 2019

Company news:

Maple Gold Mines Identifies Brand New Exploration Target

Maple Gold Mines recently announced results from the 40.4 km induced winter polarization (IP) program. This IP program was developed to test a 4x4km area for the presence of disseminated and/or semimassive to massive sulphide systems. The northern target is continuous and relatively constant over a strike length of over 3 km and is mostly open to depth. The southern targets extend for at least 2.6 km along strike and open to the west (toward the resource area).
News: Maple Gold defines new NE target based on results of winter 2019 Induced Polarization program
Video: Maple Gold Mines Discovers New Zone Through One Drill Hole

Auryn Resources meets 116 metres of 0.58% copper equivalent, among others

Auryn Resources announced results a few days ago from eight historic drill holes totalling 988 metres in length from the Fierrazo target at the Sombrero Project in southern Peru. These holes were drilled in 2013 to achieve iron skarn mineralization, but assay results from Auryn encountered copper-gold mineralization in each hole. Highlights include 116 metres of 0.58% copper equivalent (0.42% Cu and 0.24 g/t Au), 90.4 metres of 0.51% copper equivalent (0.48% Cu and 0.05 g/t Au) and 51 metres of 0.53% copper equivalent (0.43% Cu and 0.16 g/t Au).
News: Auryn Intersects 116 meters of 0.58% Copper Equivalent in Historical Drill Core from Auryn’s Fierrazo Target at Sombrero

Auryn Resources Launches Drilling Campaign at Committee Bay

Auryn Resources recently reported that it will commence core drilling on its 100% owned Committee Bay gold project in Nunavut, Canada, in the first two weeks of July. The drilling program will pursue four of the twelve new targets generated by machine learning in the project and will consist of approximately 3000 metres. The Aiviq and Kalulik targets, where cuts were made in 2018 within heavily sulphided banded iron formations and shear zones, were refined by machine learning and form the basis for the 2019 summer drilling program.
The Company expects a steady flow of news from its resource portfolio due to ongoing surface programs in Peru and Canada as it awaits drilling permits for Sombrero.
News: Auryn to Drill Committee Bay Gold Project
Newsflash: Newsflash #96 With Auryn Resources, TerraX Minerals & Treasury Metals

Roth Partners sees Auryn share at US$ 3.25

The analysts of Roth Partners recently published a new research report with a 12-month price target of US$ 3.25. The analysts have also published a new report on the share price.
Report: Roth Capital Partners Buy recommendation for Auryn Resources, target price 3.25 USD

Endeavour Silver reaches milestone for Terronera

Endeavour Silver recently announced that it has received final approval for a tailings pile at the Terronera silver-gold mining operation in Jalisco State, Mexico. Endeavour Silver is thus entitled to deposit processing residues from the planned Terronera underground mining operation, where high grade silver and gold deposits are to be mined, in a safe area adjacent to the planned operating area intended for the storage of filtered dry residues.
With the Terronera Mining Project now fully licensed, Endeavour Silver is planning a final, optimized pre-feasibility study in the third quarter and intends to secure appropriate financing for the construction of Endeavour's next lead operation. After an estimated construction period of approximately eighteen months, the Terronera mine is expected to produce more than 5 million ounces of silver equivalents (at a silver to gold ratio of 80:1) over a life of at least 12 years. The sustainable cash costs per ounce of silver are expected to be in the lowest quartile compared to the rest of the industry.
News: Endeavour Silver Receives Final Tailings Permit for the Terronera Mine Project in Jalisco State, Mexico
Newsflash: Newsflash #94 With Endeavour Silver, Bluestone Resources & Ximen Mining

Aurania Resources encounters epithermal system

Aurania Resources recently reported that it has completed its scout drilling campaign at Crunchy Hill and has received all assays and results from detailed studies of alteration minerals in the drill core. The exploration model developed from this data suggests that the scout drillings at Crunchy Hill intersected the upper part of an epithermal system.
The Crunchy Hill campaign has achieved what it was meant to achieve with the scout drillings, confirming the presence of an epithermal system and indicating where to continue drilling to cut the heart of the system in which the associated gold is expected.
News: Aurania Reports That Drilling at Crunchy Hill Intersected the Upper Part of an Epithermal System

Osisko Gold Royalties buys back about 8% of its own shares

Osisko Gold Royalties recently announced that it will repurchase 12,385,717 of its common shares from Orion Resource Partners at a second offer price for a total purchase price of approximately US$174.6 million paid by Osisko to Orion for a share buyback program. The total purchase consideration will be settled in cash of US$129.5 million and through the direct transfer of certain other equity securities from exploration and development companies currently owned by Osisko. The share buyback will result in an 8% reduction in outstanding ordinary shares.
News: Osisko Announces Share Repurchase and Secondary Offering
Video: Osisko Gold Royalties & Financial Partners Extend Bridge Financing To Stornoway

White Gold Begins Extensive Drill Program

White Gold announced a few days ago that it has commenced its 2019 diamond drilling program for two of its major deposits: the JP Ross and Whitegold deposits. 10,000 m of diamond drilling will be completed on the JP Ross property alone, focused on the Vertigo target. 6,000 m of diamond drilling will be carried out on the Whitegold property with a focus on the Golden Saddle, GS West and Arc deposits. This program is focused on expanding the current deposits, which include an indicated mineral resource of 1,039,600 ounces Au within 14,330,000 tonnes of 2.26 g/t gold and an inferred mineral resource of 508,700 ounces Au within 10,696,000 tonnes of 1.48 g/t gold. An additional 1,000 metres of diamond drilling will be completed on the VG deposit, which hosts a historical inferred resource of 230,000 oz Au.
Investors can look forward to a lot of results.
News: White Gold Corp. Commences 17,000m Diamond Drill Program on the JP Ross and White Gold Properties
Video: White Gold Increases Mineral Resource Estimate By 25%

US Gold carries out 2.5-million-dollar financing
US Gold recently announced that it will finance $2.5 million in preferred F Series units in an unbid offer. Net sales, net of estimated costs, will be approximately US$2.425 million. The Company expects to use the net proceeds of the Offer for general corporate purposes, which may include working capital, capital expenditures and other corporate expenses, although the Company currently has no current plans, agreements or obligations. No placement agent or broker dealer was appointed or participated in the offer of units.
News: U.S. Gold Corp. Announces Closing of $2.5 Million Registered Direct Offering

GoldMining with a chance of quintupling

According to the analysts at H.C.Wainwright&Co., GoldMining has the chance of quintupling its share price. The target price is 5.00 CA$.
Report: Buy recommendation GoldMining from H.C. Wainright - Target price 5 CAD

Generation Mining Acquires Sibanye-Stillwaters Marathon Project

Sibanye-Stillwater recently announced that it has entered into an acquisition agreement with Generation Mining Limited to develop the PGM Copper Marathon Project in northern Ontario, Canada, adjacent to Lake Superior. The Marathon project was acquired by Sibanye-Stillwater as part of the Stillwater acquisition in May 2017. Under the terms of the agreement, Sibanye-Stillwater will receive pre-sale proceeds of $3.0 million in cash and 11,053,795 shares @ CA$0.2714 per share in Gen Mining (a 12.9% interest @ CA$0.2714 per share) upon closing. Gen Mining will acquire a 51% interest in the Marathon Project and form an unincorporated joint venture with Stillwater Canada Inc.
This is how Sibanye-Stillwater successfully turns a non-core project into money.
News: Sibanye-Stillwater enters into a strategic acquisition agreement with Generation Mining to further its Marathon project
Newsflash: Newsflash #95: Sibanye-Stillwater´s Acquisition Of Lonmin & IsoEnergy Expands Larocque East Uranium Property

Fission 3.0 lands first hit on Cree Bay

Fission 3.0 announced a few days ago that the First Pass drill program at Cree Bay in the Athabasca Basin in Saskatchewan, Canada, encountered significant folds, strong hydrothermal alterations and increased concentrations of scout elements in both holes. Scout elements (such as uranium and boron) can be used to identify future mineralized corridors and can help vectorize into uranium mineralized areas. In addition, the depth to the basement discordance was cut deeper than expected by ~200m. This indicates a possible larger offset in the surrounding area, which may be a favorable environment for receiving high grade uranium, such as the MacArthur River deposit. A comprehensive follow-on program is currently being planned, targeting a drilling program in the 2019-2020 winter season.
News: Fission 3.0 Hits Alteration, Faulting at Cree Bay; Plans Follow-Up Drilling

TerraX Minerals Completes Oversubscribed and Extended Financing

TerraX Minerals recently announced the successful completion of the financing originally announced on June 6, 2019 and later on June 13, 2019 for an upsize led by PI Financial Corp. Under the Offer, the Company has issued a total of 1,782,500 common shares of the Company at a price of CA$0.36 per share, 2,430,000 common shares of the Company at a price of CA$0.41 per FT Share and 3,000,000 common shares of the Company at a price of CA$0.50 per Charity FT Share for total proceeds of CA$3,138,000. The gross proceeds from the sale of the FT Shares and Charity FT Shares will be used for exploration expenditures under the Company's Yellowknife City Gold project in the Northwest Territories. The net proceeds from the sale of the shares are used for working capital.
News: TerraX Announces Closing of Financing For $3.1 Million
Newsflash: Newsflash #96 With Auryn Resources, TerraX Minerals & Treasury Metals

EnWave delivers further machine to Aurora Cannabis

EnWave recently reported that Aurora Cannabis Inc. is expanding the scope of requirements for the possible purchase of a third 120kW radiant energy vacuum machine intended for European operation in Denmark. Aurora Nordic Cannabis, a subsidiary of Aurora, plans to develop a GMP plant at pharmaceutical level, which will require several upgrades of the planned machines. These upgrades will be confirmed as soon as possible and also increase the economic profile of this future equipment purchase. On April 26, 2019, EnWave and Aurora announced that the companies had entered into a sublicensing commercial license agreement, subject to licensing conditions, granting Aurora exclusive rights to EnWave's patented drying technology REV™ for the production of cannabis material in the European Union, excluding Portugal. Aurora intends to use the REV™ technology widely in all of its worldwide operations to take advantage of the significant benefits of EnWave drying technology compared to traditional drying methods.
Cannabis - A market worth billions - also for Enwave!
News: EnWave and Aurora Cannabis Expand Scope of Machine Delivery to Achieve Good Manufacturing Practice (GMP) Standards

First Cobalt tries to prevent a merger between eCobalt and Jervois Mining with brand letter

First Cobalt has just sent an open letter to the shareholders of eCobalt Solutions Inc. asking them to vote against the planned merger of eCobalt with Jervois Mining Limited. At the balance sheet date, First Cobalt held 9,640,500 million shares, equivalent to 5.8% of eCobalt.
First Cobalt rejects the Jervois transaction for the following reasons:

  • Strong dilution: eCobalt shareholders would give up 53% of the pro forma business and receive nothing valuable in return.
  • The Idaho Cobalt Project is not being promoted: The proposed Jervois transaction does not advance the Idaho Cobalt Project either technically or financially.
  • Introduces new risks: The Jervois transaction entails a number of significant new risks that should affect eCobalt's shareholders, including an unproven exploration area in the highly unstable African country of Uganda, an undeveloped nickel project in Australia, a management team located half a world away from the ICP development project and an initial listing in Australia.
  • The sale process did not maximize shareholder value: The eCobalt Board has failed to fulfill its fiduciary duty to review all other value maximizing options until it has reached an agreement that triggers generous management severance payments and includes a CAD$3 million break fee that prevents a better offer.
  • The circular does not reveal all the facts: eCobalt has received a letter from one of the industry's leading private equity funds interested in financing the total cost of capital for the construction of the ICP in various circumstances that would preclude the Jervois transaction.

Australian Jervois Mining has recently swallowed the African cobalt developer M2 Cobalt and now wants to secure a near-finished cobalt project in North America. A clear strategy is not to be recognized thereby.
News: First Cobalt Urges Fellow eCobalt Shareholders to Vote Against Value-Destroying Jervois Transaction

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: IsoEnergy + Maple Gold Mines + Auryn Resources + Endeavour Silver + Aurania Resources + Osisko Gold Royalties + White Gold + US Gold + GoldMining + Generation Mining + Sibanye-Stillwater + Fission 3.0 + TerraX Minerals + EnWave + Aurora Cannabis + First Cobalt + eCobalt + Jervois Mining.

Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: IsoEnergy + Maple Gold Mines + Auryn Resources + Endeavour Silver + Aurania Resources + Osisko Gold Royalties + White Gold + US Gold + GoldMining + Sibanye-Stillwater + Fission 3.0 + TerraX Minerals + EnWave + First Cobalt.

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

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