Newsletter 14 /2019
Share of the week: Treasury Metals + RavenQuest BioMed + Bluestone Resources + Gold: Breakout successful! - Silver with further potential + First Majestic Silver + Fresnillo + MAG Silver + GoldMining + Auryn Resources + Sibanye-Stillwater + Aurania Resources + Caledonia Mining + US Gold + White Gold + Endeavour Silver + EnWave
Over the past few days, we have again been able to conduct some interesting interviews and create updates for selected companies. These are listed below:
Tobias Tretter: Many Battery Metals Are Or Will Be In A Deficit Soon
RavenQuest Biomed Investor Presentation In Frankfurt, Germany
Bluestone Resources: Update On Cerro Blanco And Political Situation In Guatemala
Share of the week: Treasury Metals
Treasury Metals Receives Environmental Permit for Goliath Gold Project
Treasury Metals has recently reached one of the most important milestones in the company's history. The company recently received the environmental permit for its flagship project Goliath. The approval is an important risk reduction milestone for the Goliath Gold Project and thus for the shareholders. The decision was made following a thorough and scientifically sound environmental review process that sought input from indigenous groups, the public and federal agencies, including Fisheries and Oceans Canada, Environment and Climate Change Canada, Health Canada and Natural Resources Canada, as well as various agencies in all provincial ministries. The report concluded that the project is unlikely to have significant negative environmental impacts if mitigation measures are taken into account. The Federal Minister's decision states that Treasury Metals Inc. can now proceed with obtaining the final approvals required for the start of construction.
The next step should now be financing, which would bring a mine within reach.
Treasury Metals launches extensive exploration program
Treasury Metals recently announced the commencement of its autumn exploration program and the completion of the 30-day public comment period for the draft environmental assessment report for the Goliath Gold Project. Using existing drilling across the strike and depth of the resource, this program has been developed to outline the Goliath chargeability signature, test the high grade down dip extension potential below the current resource (400 metres deeper), outline new drill targets and identify any previously unknown mineralized concentrations nearby.
Gold: Breakout successful! - Silver with further potential
The gold price erupted not only rapidly, but also enormously. Many investors were caught on the wrong foot during the summer holidays and once again missed a good entry into the opportunities that presented themselves - especially in gold stocks. After a small but extremely important consolidation phase, the gold price recently showed more strength and was able to regain the US$ 1,500 mark. So, the bulls still seem to be holding the reins, most recently in equities, which lagged somewhat behind in their performance. Similarly, silver also managed to break above the important US$17 mark, pulling silver producer stocks with it. But also, here the performance at one or the other value left a lot to be desired. If silver still has enormous potential to catch up with gold, silver stocks offer additional leverage. Above all the established producers First Majestic Silver, Endeavour Silver and Fresnillo, but also prospective producers like MAG Silver should be able to perform above average with a further silver price increase. Driven by the continuing "threat" of interest rate cuts in the USA and other economic fears, the precious metals party is likely to continue for the time being.
Point and Figure Analysis: Point And Figure Analysis Targets 1600$ Gold Price
Interview analysis with fund manager Tobias Tretter: Tobias Tretter: Gold And Silver Doing Well - Mining Stocks Still Undervalued
H.C.Wainwright&Co. recommend GoldMining with target price 5.75 CA$
In a new research report, the analysts of H.C.Wainwright&Co. recommend buying GoldMining shares and set a price target of 5.75 CA$. This corresponds to about five times the value of the current share price!
Auryn Resources makes strategic acquisition
Auryn Resources announced a few days ago that it has acquired a 100% interest in the Sambalay and Salvador concessions adjacent to Auryn's 100% ownership of Curibaya in southern Peru. The company paid $250,000 for it. The Sambalay and Salvador concessions total 4,700 hectares and together represent a 2 kilometre by 3.3-kilometre mineralized alteration system similar to both high grade copper porphyry and intermediate precious metal sulphidation systems. Historical high-quality sampling includes up to 13.50% copper, 23.6 g/t gold and 14,180 g/t silver. Despite these results, Auryn is not aware of any historical systematic exploration or drilling on the properties which would increase exploration potential.
Sibanye-Stillwater with good company figures
Sibanye-Stillwater recently announced an operational update for the quarter and half-year ended June 30, 2019 (Q2 2019 and H1 2019, respectively). The operating results of the Group's three segments for the second quarter of 2019 were significantly improved compared to the first quarter of 2019, with further operating improvements forecast for the Group as a whole in the second quarter of 2019, providing the momentum to achieve the annual segment forecast. Promoted 2E PGM production from the US PGM business of 153,874oz for Q2 2019 rose 18% after a slower than expected start to Q1 2019, with all-in-sustaining costs (AISC) of approximately US$723/2Eoz 13% lower. The 2E PGM production of 284,773oz and AISC of approximately 774/2Eoz for H1 2019 includes the poor first quarter 2019 results highlighted in the previous operational update.
The planned reduction in production from the first quarter of 2019 will thus remain on track, with a significant improvement in production and costs for the second half of 2019.
Aurania Resources Approaches Drilling Targets at Yawi
Aurania Resources recently reported on Yawi, where four of its current 17 gold-silver targets are located on the Lost Cities - Cutucu project in southeastern Ecuador. Scout drilling is expected to begin in mid-September on the first of Yawi's targets. Yawi's targets are located in an area of approximately 4 by 4 kilometres in the southern part of the project. An asphalted road allows access up to one kilometre around the first target area to be drilled, while the furthest target requires a displacement of the portable device up to 4 kilometres from the road. One of the special features of targets A and D at Yawi is that the metal and scout enrichment in the ground is at altitudes above the sinter. This unusual situation was also evident at the Fruta del Norte deposit, which is currently being developed by Lundin Gold some 100 kilometres south of the project in Ecuador.
Current indications are that all permits will be received to commence drilling on the first of Yawi's targets in September 2019.
Caledonia Mining presents quarterly figures
Caledonia Mining recently announced its operating and financial results for the second quarter of 2019. Gold production in the quarter was 12,712 ounces, an increase of 6.4 percent over gold production in the first quarter of 2019 from 11,948 ounces, which increased production to 24,660 ounces for the first six months of 2019. Gross profit for the quarter was $7 million, up 37 percent from the second quarter of 2018 due to lower mining costs. Operating income before currency gains for the quarter was slightly above $6 million, up 21 percent from the comparable quarter last year. Net income attributable to shareholders for the quarter increased nearly 800 percent over the comparable quarter to $23.3 million due to the strong devaluation of the newly introduced Zimbabwean currency, which led to some cost savings and a high net foreign exchange gain.
Buy recommendation for US Gold from H.C. Wainwright - Target price US$ 2.90
The analysts of H.C.Wainwright&Co. recently published a new research report on US gold. They confirmed their buy recommendation and set the price target at US$ 2.90.
White Gold Expands High-Calibre Gold Mineralization
White Gold recently announced an update on its fully funded $13 million exploration program for 2019 and first diamond drill results on its recent high-grade Vertigo discovery and its flagship Golden Saddle deposit in the productive White Gold District of Yukon, Canada. First assays from the 2019 drill program present strong initial diamond drill results on the Vertigo target and are among the best results to date at the Golden Saddle deposit. All Vertigo diamond drilling to date has intersected the gold mineralization and has identified at least 6 high grade mineralized structures. Each structure has a strong continuity from the surface to over 250 metres depth and remains open in all directions. Diamond drilling on the Golden Saddle locally extended the GS Main Zone 205 metres below the dip from historic drilling, approximately doubling the extension of the dip in the area previously only 165 metres, adding additional mineralization over the previously modelled ore body and filling several strategic gaps in the resource model. These included 3.59 g/t Au over 68.0 metres and 0.42 metres with 141 g/t Au within a wider mineralization envelope averaging 11.64 g/t Au over 5.34 metres.
Endeavour Silver presents quarterly results
Endeavour Silver today announced results for its four silver-gold mines in Mexico for the second quarter of 2019 ending June 30, 2019. The company recorded a net loss of $10.1 million in the 2nd quarter of 2019. This loss is mainly due to lower revenues and higher unit costs in production. Revenues declined 24% due to lower production volumes and lower silver prices achieved, partly offset by higher realised gold prices. Pre-tax cash flow from mining operations fell 82% to $2.6 million due to lower production volumes. Cash costs rose 80% to $13.67 per ounce of silver payable and all-in sustaining costs increased 21% to $20.90 per ounce of silver payable.
Video Presentation: Endeavour Silver: Update On Parral And Q2 2019 Results
Endeavour Silver Strikes High Grade Silver Mineralization
Endeavour Silver recently reported positive results from its 2019 ongoing exploration program for the Parral project in Chihuahua, Mexico. Endeavour has completed 15 surface and underground drill holes totaling 3,160 meters in length and 462 underground channel samples in 3 blocks at the Sierra Plata Mine on the Veta Colorada vein system. Among other things, the company discovered 332 grams of silver per tonne over 13.1 metres. The highest-grade sample contained 3,770 grams of silver per tonne over 0.2 metres.
Endeavour is now planning as a first stage, a small, high-grade mine averaging 200-250 tonnes per day to generate cash flow, while exploring the possibility of a second stage, a larger, 1,000-2,000 tonnes per day, larger scale mine that could become a new core object.
H.C.Wainwright&Co. recommend Endeavour Silver with target price 4.25 CA$
The analysts of H.C.Wainwright&Co. recently published a new research report on Endeavour Silver. They confirmed their buy recommendation and raised the price target to CA$ 4.25.
EnWave included in NYSE-listed cannabis ETF
EnWave goes NYSE. At least indirectly this is true now, because EnWave is a member of the first cannabis ETF to be listed on the NYSE. The new cannabis ETF, abbreviated THCX, follows the Innovation Labs Cannabis Index, a portfolio of 35 companies expected to benefit from the growth of the legal marijuana, CBD and hemp industries.
EnWave currently has three rights-managed commercial license agreements with Canadian cannabis companies and one rights-managed commercial license agreement with a hemp producer in the US.
The fund now also offers access for US-based investors. This should not only attract new shareholders, but also other potential customers.
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: Treasury Metals + RavenQuest BioMed + Bluestone Resources + First Majestic Silver + Fresnillo + MAG Silver + GoldMining + Auryn Resources + Sibanye-Stillwater + Aurania Resources + Caledonia Mining + US Gold + White Gold + Endeavour Silver + EnWave.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Treasury Metals + RavenQuest BioMed + Bluestone Resources + MAG Silver + GoldMining + Auryn Resources + Sibanye-Stillwater + Aurania Resources + Caledonia Mining + US Gold + White Gold + Endeavour Silver + EnWave.
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