Newsletter 18 /2019
This newsletter contains news on the following topics:
Ximen Mining + Stock of the Week: Copper Mountain Mining + Gold Price in waiting Mode - What's next? + White Gold + Fission 3.0 + Endeavour Silver + EnWave + Maple Gold Mines + Treasury Metals + Aurania Resources + Auryn Resources + First Cobalt + Sibanye-Stillwater + GoldMining + TerraX Minerals
Interesting interviews and company presentations:
Ximen Mining: Kenville Project Is Ready For Small Gold Production
Stock of the week: Copper Mountain Mining
Copper Mountain Mining significantly increases resource base
Copper Mountain Mining recently announced a new mineral resource for the Blackard deposit. The Blackard mineral resource consists of a 77 million tonne measured and indicated mineral resource grading 0.49% copper at 836 million pounds copper and a 19 million tonne inferred mineral resource grading 0.49% copper at 206 million pounds copper. The new mineral resource at Blackard improves grade and increases the size of the measured and indicated mineral resource at the Eva Copper Project to 228 million tonnes at a grade of 0.42% copper, equivalent to 2.1 billion pounds of copper.
This significantly increases the funding potential of the Eva project.
News: Copper Mountain Mining Announces Addition to Eva Copper Mineral Resource and Increases Measured & Indicated Resource by 836 Million Pounds of Copper with Blackard Deposit
Copper Mountain Mining increases reserves and optimizes mine plan
Copper Mountain Mining also announced that it has expanded the mineral reserves and mineral resources of the Copper Mountain Mine and optimized the mine plan resulting in a lower overburden/ore ratio, longer mine life and a better production profile. The Company reported a corresponding increase in proven and probable mineral reserves of 12% to 477 million tonnes for contained metal of 2.47 billion pounds of copper and 1.55 million ounces of gold (averaging 0.23% Cu and 0.10 g/t Au) at 477 million tonnes. The optimization of the mine plan also increased the service life of the mines by 4.5 years to 31 years at the currently planned production levels.
From 2020, the mining of higher-grade ores can also be expected, which should give the company a corresponding boost in production.
News: Copper Mountain Mining announces larger Mineral Reserve at the Copper Mountain Mine, improves Mine Plan
Copper Mountain Mining reports positive quarterly results
Copper Mountain Mining also announced its financial and operating results for the third quarter of 2019. Accordingly, production for the third quarter of 2019 was 20.3 million pounds copper equivalent (consisting of 16.3 million pounds copper, 6,498 ounces gold and 57,225 ounces silver). Cash costs C1 per pound of produced copper amounted to USD 2.12 and all-in sustaining costs per pound of copper to USD 2.28, net of precious metal revenues. Revenue for the third quarter of 2019 was $62.7 million from the sale of 17.0 million pounds of copper, 6,400 ounces of gold and 57,426 ounces of silver net of price adjustments. Cash provided by operating activities for the third quarter of 2019 was $400,000. Cash and cash equivalents at the end of the third quarter were $36.0 million.
Although a transitional quarter, it was a strong quarter for Copper Mountain Mining.
News: Copper Mountain Mining Announces Q3 2019 Financial Results
Gold price in waiting mode - What's next?
In many currencies, the gold price is currently quoted at or close to all-time highs. The main reason for gold's comeback is fiscal and geopolitical distortions, which are increasingly driving the price of gold. Only a continued extremely strong US$ (still) prevents a new dollar all-time high in the gold price.
But what happens now? One thing is certain: We are just entering the seasonally strongest phase with gold and silver. From November, gold and silver very often show relative strength, which can last into March. From a purely chart perspective, the gold price this year will still focus on the US$ 1,600 mark, followed by the old highs of US$ 1,900 per ounce. In addition, a glance at the Point & Figure Chart already shows US$ 2,150-2,300 per ounce.
After decades of gold sales, central banks around the world have been back on the buying side since 2010 and have recently even recorded record purchases. A total of 23 central banks increased their gold reserves in 2018. Russia (which has officially overtaken China in the meantime), but also Turkey, India, Poland, Egypt, Brazil and Kazakhstan bought gold in 2018. Central banks increased their gold stocks by 656.3 tonnes in 2018. This was 73% more than in 2017, which meant that a large amount of supply was taken off the market by the central banks alone, which once again appeared on the demand side and not on the supply side. For 2019 there are indications of a further increase in the central banks' rush to buy gold.
Although the technology sector in particular is likely to generate the highest percentage growth in demand for gold in the coming years, everything depends on the investment sector. Assuming that the jewellery industry is likely to remain at the same level of demand as in previous years, it is precisely the inflows into gold-deposited ETFs that have been able to recover since the end of 2018 and therefore show the greatest demand growth potential. From June to August 2019 alone, the global ETFs recorded a gold inflow of over 300 tonnes!
It will be exciting on the supply side. A lack of replenishment in the form of high-grade new discoveries as well as an increasingly cost-intensive supply, as more difficult mining is likely not only to lead to a future supply deficit, but also to the necessity of a higher gold price so that demand can be met at all in a cost-covering manner.
Further company news:
White Gold reports sensational results
White Gold announced positive results from trench and surface sampling on the Vertigo target and other surrounding targets on the JP Ross property a few days ago. These include 83.13 g/t gold over 2.2 metres, 30.86 g/t gold over 7 metres and 24.86 g/t gold over 7 metres.
Once again, the company was able to demonstrate the world-class potential of JP Ross.
News: White Gold Corp. Trenches 83.13 g/t Gold over 2.2m, 30.86 g/t Gold over 7m and 24.86 g/t Gold over 7m on Vertigo
White Gold samples up to 605g/t gold!
In addition, White Gold was able to announce several high quality grab samples including 605.0 g/t Au, 497.0 g/t Au, 113.0 g/t Au and 78.3 g/t Au and GT probe samples with up to 17.35 g/t Au on the most recent titanium discovery on the road accessible Hen property adjacent to the Company's JP Ross deposit, less than 15 km WNW from the Vertigo discovery.
News: White Gold Corp. Encounters High-Grade Surface Results on Recently Discovered Titan Target Including Grab Samples of 605 g/t Gold, 497 g/t Gold and 113 g/t Gold, GT Probe Samples up to 17.35 g/t Gold
White Gold Receives CA$ 3.35 Million from Option Exercises
White Gold also announced that it has received proceeds of CA$3.35 million from the exercise of outstanding share purchase warranties with an expiry date of October 27, 2019, originally issued in its private placement on October 27, 2016. All related options were exercised, including the participation of management, directors and other insiders.
News: White Gold Corp. receives $3.35 Million from warrant exercise
Fission 3.0 reaches up to 13.9% U3O8
Fission 3.0 recently announced the results of current exploration activities on three of its properties in the Canadian Athabasca Basin, including Beaver River, Wales Lake and North Shore. Of particular significance is that the Beaver River prospect has made new discoveries of high-grade uranium and gold at several locations, the most significant of which is in the newly designated Trigger Zone in the northeast of the project. Results on Trigger include sample BR2-22-B with 13.9% U3O8 and 2.27 g/t Au and BR2-22-A with 5.93% U3O8 and 1.55 g/t Au, as well as results from the historic VIC in the southwestern portion of the property which returned gold values of up to 14.0 g/t Au, uranium of up to 1.1% U3O8 and copper of up to 0.97% Cu.
In addition, the work has confirmed high grade uranium, gold, copper and nickel in further new discoveries and historical sites.
News: Fission 3.0 Discovers 13.9% U3O8 at Beaver River’s New Trigger Zone
Endeavour Silver Reports Excellent Drilling Results
Endeavour Silver recently announced positive results from infill drilling from its 2019 ongoing exploration program at the Veta Colorada vein at the Parral Project in Chihuahua, Mexico. Key results from recent drilling include 308 grams of silver per tonne over 11.6 m true thickness.
News: Endeavour Silver Reports Infill Drill Results for the Parral Project in Chihuahua, Mexico Including 308 gpt Silver over 11.6 m True Width
Video: Endeavour Silver: Problems Solved, Costs Coming Down & Construction Decision For Terronera Coming Soon
EnWave reports ground-breaking cannabis deal
EnWave recently announced that EnWave and Aurora Cannabis Inc, a global leader in the cannabis industry, have signed an exclusive, rights-managed commercial license agreement with sublicensing rights to use its proprietary ("REV™") dehydration technology to dry cannabis in Australia. Aurora will have an exclusive master cannabis drying license with REV™ in Australia and will work closely with EnWave to pursue sub-licensing opportunities. At the same time as signing the agreement, EnWave and Aurora signed a royalty sublicense with Cann Group Limited, Australia's first medical cannabis cultivation licensee. The sublicense grants Cann Group the right to use EnWave's REVTM technology to dry cannabis in Australia. According to the sublicense, the Cann Group has signed an equipment purchase agreement to obtain a 10 kW REV™ machine to start commercial production.
It's going ahead, this is already the fifth cannabis deal for EnWave!
News: EnWave and Aurora Cannabis Sign Commercial Royalty-Bearing License for Australia and Sublicense with Cann Group Limited
Video: EnWave: Moon Cheese Highly Profitable - Selling More REV Machines In 2019
Maple Gold Mines Releases New Resource Estimate
Maple Gold Mines recently released a new mineral resource estimate for the Douay gold project. At cut-off grades of 0.45 g/t Au for open pit resources and 1.0 g/t Au for underground resources, the Douay deposit is estimated to host indicated mineral resources of 8.6 million tonnes at an average grade of 1.52 g/t Au and inferred mineral resources of 71.2 million tonnes at an average grade of 1.03 g/t Au. Douay now has 2.774 million ounces of gold.
News: Maple Gold reports a new pit-constrained and underground Mineral Resource Estimate at Douay
Video Presentation: Maple Gold Reports A New Mineral Resource Estimate at Douay
Treasury Metals confirms high exploration potential
Treasury Metals recently announced the results of its IP (Induced Polarization) survey program in the drill holes at the Goliath Gold Project (100% Treasury Metals) in northwestern Ontario. The IP survey confirmed that the gold-bearing zones of the project correlate with the high resistances and chargeability. It is suspected that this is associated with severe silicification and an increase in disseminated sulphides. Both are found in the Goliath gold zones. The inversion model suggests that these zones are located on a main structure and has outlined the signatures of the high-grade gold ore events, including confirmation of the down-dip extension potential below the current resource to a depth of approximately 800 metres below surface. The survey also identified the continuation of resistivity and chargeability signals on the east and west sides of the resource area, indicating that the zones hosting the gold extend in both directions in the strike of the deposit.
News: Treasury’s Downhole IP Survey Confirms Expansion Potential at Depth, Along Strike and Outlines Future Targets
Treasury Metals takes in CA$ 2.3 million
Treasury Metals also announced that it has entered into an agreement with a consortium of underwriters led by PI Financial Corp. under which the syndicate banks have agreed to acquire 8,100,000 of the Company's flow-through units in a buy deal private placement at a price per flow-through unit of CA$ 0.285 for gross proceeds of CAD$ 2,308,500. The issue price represents a premium of approximately 14% to the closing price of the Company's common stock on the Toronto Stock Exchange on October 31, 2019.
News: Treasury Announces C$2.3 Million Bought Deal Private Placement
Video Interview: Treasury Metals: Environmental Permit Granted - Next Step Pre-Feasibility Study & Project Financing
Aurania Resources begins pioneering drilling
Aurania Resources recently commenced drilling on the first of four targets at the Yawi target on the Company's Lost Cities - Cutucu project in southeastern Ecuador. The first hole in the Yawi target will be up to 500 metres long and inclined south. The Company's current plan is to drill three to four holes between 350 and 500 meters in length on each of the four targets in Yawi.
News: AURANIA COMMENCES DRILLING AT YAWI TARGET IN ECUADOR
Auryn Resources Strikes Significant Gold Mineralization
A few days ago, Auryn Resources announced the results of the seven-week, 2,700-metre-long summer drill program at Committee Bay. The Company drilled a new gold-bearing hydrothermal system and made significant progress in geophysical targeting. At the Shamrock target, Auryn intersected 30 metres of 0.67 g/t gold, including 1.5 metres of 5.03 g/t gold, which is characterized by quartz vein formation in gabbro rocks. The Shamrock Target is located 2.5 kilometres southwest of the Aiviq Target where the Company drilled 10.5 metres of 1.22 g/t gold this summer.
There's something going on at Committee Bay, further results should follow soon.
News: Auryn Drills Gold-Bearing Hydrothermal System at Committee Bay
Video Presentation: Auryn Resources Drills Hypothermal System At Committee Bay & Receives Rock Samples From Peru
Auryn Resources sampled more than 1,500g/t silver
Auryn Resources also announced initial results from rock sampling from the newly acquired Sambalay and Salvador concessions at the Company's 11,000-hectare Curibaya project in Tacna Province, Southern Peru. High-grade mineralization was assayed in a 1.5 km x 3 km quartz, sericite and pyrite alteration system with more than 20 samples over 200 g/t silver and multiple results over 1,500 g/t silver and up to 7.67 g/t gold. The project is located in a copper porphyry belt containing some of Peru's largest porphyry deposits including the Cerro Verde deposit of Freeport McMoRan, the Cuajone and Toquepala deposits of Southern Copper and the Quellaveco deposit of Anglo American.
Top results, which should certainly also interest the big neighbours.
News: Auryn Samples High-Grade Silver and Gold over 4.5 km² at Curibaya
First Cobalt encounters high-grade cobalt mineralization
First Cobalt has recently announced high grade cobalt testing of up to 0.48% cobalt from surface samples collected at a target 1.5 kilometres south of the Company's Iron Creek project in the Idaho Cobalt Belt, USA. Sampling at 146 metres of exposure returned several high-grade values including 10.7 metres at 0.24% Co, of which 1.5 metres at 0.48% Co and 7.6 metres at 0.26% Co.
News: First Cobalt Samples High Grade Cobalt more than 1 km from Iron Creek
Sibanye-Stillwater reports positive quarterly results
A few days ago, Sibanye-Stillwater was able to present an operational update for the quarter ending 30 September 2019. Group adjusted EBITDA increased 240% to $55.5 billion ($377 million). The SA PGM activities contributed R2.9 billion (53%), the US PGM activities R1.8 billion (32%) and the SA Gold activities R843 million (15%). Deleveraging is on track - net debt: adjusted EBITDA of 1.7x at the end of the third quarter of 2019, after 2.5x at the end of the first half of 2019.
The fact that the integration of the Marikana company is progressing well is particularly noteworthy.
News: Operational Results for Q3-2019 Sibanye-Stillwater
Video Interview: Sibanye-Stillwater: Diversifying Globally In Metals And Jurisdictions
GoldMining secures high-caliber gold project
GoldMining recently announced that it has entered into an agreement with Newrange Gold Corp. to indirectly acquire a 100% interest in the Yarumalito Gold Project in central Colombia. Historical drill intercepts included 250 metres of 0.51g/t gold and 1.85 metres of 33.75g/t gold. GoldMining intends to commission an independent qualified person to prepare, inter alia, a technical report for GoldMining on the project, including reviewing historical exploration results and, if sample density is sufficient, preparing a resource estimate for the project.
News: GOLDMINING TO ACQUIRE YARUMALITO GOLD PROJECT IN COLOMBIA
TerraX Minerals Announces First Resource Estimate for Yellowknife Gold Project
TerraX Minerals recently announced an initial mineral resource estimate for its 100% Yellowknife City gold project. The 735,000-ounce inferred resource estimate consists of a 11.6 million tonne pit-limited inferred resource averaging 1.4 g/t for 523,000 ounces of gold contained and an 1.2 million tonne underground inferred resource averaging 5.7 g/t for 212,000 ounces of gold contained.
News: TerraX Announces First Mineral Resource Estimate for Yellowknife City Gold Project: 735,000 Inferred Ounces
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: Ximen Mining + Copper Mountain Mining + White Gold + Fission 3.0 + Endeavour Silver + EnWave + Maple Gold Mines + Treasury Metals + Aurania Resources + Auryn Resources + First Cobalt + Sibanye-Stillwater + GoldMining + TerraX Minerals.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Copper Mountain Mining + White Gold + Fission 3.0 + Endeavour Silver + EnWave + Maple Gold Mines + Treasury Metals + Aurania Resources + Auryn Resources + First Cobalt + Sibanye-Stillwater + GoldMining + TerraX Minerals.
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