Newsletter 19 /2019
This newsletter contains news on the following topics:
Amex Exploration + Discovery Metals + Cardinal Resources + Sibanye-Stillwater + Zuri Invest + Edelmetallmesse + Precious Metals Summit Zurich + Share of the week: Skeena Resources + Calibre Mining + Sitka Gold + Granada Gold Mine + CopperBank + Skyharbour Resources + Generation Mining + Pelangio Exploration + Uranium Energy + Endeavour Silver + Gatling Exploration + Velocity Minerals + AVZ Minerals + Aben Resources + Ora Banda Mining + Sama Resources + HighGold Mining + Elim Mining + Bluestone Resources + US Gold + Leagold Mining + Alexco Resource + Nickel Creek Platinum + GoGold Resources + FPX Nickel + Banyan Gold + Silver One Resources + Equinox Gold + Caledonia Mining + ISOEnergy + Aurania Resources + First Mining Gold + First Majestic Silver + Chesser Resources + Metallic Minerals + EMX Royalty + Granite Creek Copper + Condor Gold + EnWave
In recent weeks we have been able to meet and interview many company representatives, including at the Precious Metals Fair Munich, Zuri Invest and the Precious Metals Summit Zurich. Below and later in this newsletter you will find the most interesting interviews and company presentations from the past three weeks:
- Amex Exploration: Eploring Multiple High Grade Gold Projects In Abitibi Greenstone Belt
- Discovery Metals: Well Financed For Development & Further Exploration At Cordero
- Cardinal Resources: Strong Feasibility Study Released - Next Step Project Financing
- Sibanye-Stillwater: Diversifying Globally In Metals And Jurisdictions
- Florian Grummes: Chart Analaysis of Gold, Copper & Bitcoin
- Ronald Stöferle: Gold - The 7th Sense Of Financial Markets
- Zuri Invest Gala Dinner Impressions, November 2019
- Zuri-Invest Gala Dinner Panel Discussion with MAG Silver & Gatling Exploration
Share of the week: Skeena Resources
Skeena Resources publishes positive profitability study
Skeena Resources recently announced the first preliminary economic valuation for the Eskay Creek gold-silver project in British Columbia's Golden Triangle.
- High-grade open pit mine with an average of 3.23 g/t Au, 78 g/t Ag (4.17 g/t Aueq.) (diluted)
- After-tax NPV5% of CA$638 million and 51% IRR at US$1,325 per ounce of gold and US$16 per ounce of silver, respectively
- Amortization period after taxes of only 1.2 years
- Pre-production capital expenditures (CAPEX) of CA$ 303 million
- Present value after taxes to CAPEX ratio of 2.1:1
- Average annual production 236,000 ounces Au, 5,812,000 ounces Ag (306,000 ounces Aueq.) on lifetime Mine
- LOM All-in Sustaining Costs (AISC) of 983 CA$/ounce Aueq. output
- LOM production cost of 949 CA$/ounce Aueq.
Eskay Creek was a remarkable discovery that became an extraordinary underground mine in 1994 and produced until 2008. This PEA shows that Eskay Creek still has a bright future ahead of it, revitalized as a gold and silver mine with the added option of underground mining. The project has the potential to produce an average of 306,000 gold equivalent ounces per year with a diluted mill feed grade of 4.17 grams per ton gold equivalent.
Skeena Resources reports top drilling results
Skeena Resources also announced additional gold-silver drill results from the ongoing Phase I surface drilling program at the Eskay Creek project in the British Columbia Golden Triangle.
Among other things, they came across
- 9.14 g/t Au, 348 g/t Ag (13.78 g/t AuEq) over 9.80 metres (SK-19-070)
- Including: 21.40 g/t Au, 706 g/t Ag (30.81 g/t AuEq) over 0.50 metres length
- 6.12 g/t Au, 72 g/t Ag (7.08 g/t AuEq) over 15.81 metres (SK-19-099)
- Including: 36.90 g/t Au, 34 g/t Ag (37.35 g/t AuEq) over 1.50 meters length
- 9.91 g/t Au, 737 g/t Ag (19.73 g/t AuEq) over 17.00 metres (SK-19-139)
- Including: 171.50 g/t Au, 12,320 g/t Ag (335.77 g/t AuEq) over 0.83 metres length
- Calibre Mining: Optimizing Acquired Two Small Gold Producing Mines From B2 Gold
- Sitka Gold: Exploring 3 Gold Projects In North Americas Top Gold Locations
- Granada Gold Mine: More Exploration At Canadian Gold Deposit To Increase Resource
- CopperBank: Copper Deficit Will Increase Due To Electrification Of The World
- Skyharbour Resources: Exploring 3 Uranium Projects With Partners - Uranium Price Compelled To Rise
- Generation Mining: Fast Track Towards Production - PEA for Palladium-Polymetallic Project Coming Soon
- Pelangio Exploration: Multiple Early Stage Gold Exploration Projects in Canada and Ghana
Further company news:
Uranium Energy discovers brand new mineralization
Uranium Energy recently announced that it has recently completed a drilling campaign to advance its Burke Hollow In-situ Recovery uranium project toward uranium recovery. During the campaign, additional required monitoring wells were installed for production area authorization 1. During the campaign, 57 exploration and delineation test holes were drilled. The discovery of additional mineralization led to the expansion of the production area of the previously identified trends and the discovery of a new trend.
Endeavour Silver reports quarterly results
Endeavour Silver has recently released its financial results for the third quarter ended September 30, 2019. The Company recorded a net loss of CA$6.8 million in the third quarter of 2019 compared to a net loss of CA$5.5 million in the third quarter of 2018 primarily due to lower revenues partially offset by lower cost of goods sold. Sales decreased by 24% due to lower production, partially offset by higher realized metal prices. Operating cash flow before taxes for mines decreased 31% to CA$ 6.6 million due to lower production, while operating cash flow before changes in working capital decreased to CA$ 2.1 million. Production costs increased 30% to CA$11.51 per ounce of silver (excluding gold credits) and total AISC increased 33% to CA$21.53 per ounce of silver (excluding gold credits).
The higher all-in costs are primarily attributable to the purchase of new equipment, which is intended to drastically reduce the costs of future production.
Endeavour Silver Announces Spectacular Drill Results
Endeavour Silver continued to report positive initial drill results for the El Curso property near the Endeavour Guanaceví mine in Durango. Highlights from the first ten holes include 1,182 grams of silver per tonne and 3.07 grams of gold per tonne (1,427 grams silver equivalent per tonne at a silver to gold ratio of 80:1) over a true thickness of 5.1 metres. In addition, a 200-metre-long and 200-metre-deep northwest extension of the Porvenir Cuatro high grade orebody was defined.
Endeavour Silver Closes El Cubo
Endeavour Silver also announced that a recent review of reserves and resources has revealed that they are now depleted, and the Company will close the El Cubo underground mine in Guanajuato. The mining operation will end on November 30, 2019, with closure costs estimated at approximately $3.5-4.0 million, primarily in the fourth quarter of 2019. Management will explore alternatives for the continued use of the processing facility and related plant components. Some components could be moved to other development projects, such as Terronera and Parral, to reduce future investment costs. The mining equipment will be shipped to Endeavour's other sites, primarily Bolanitos, where it will contribute to increasing mine yield and utilisation of processing capacity.
- Gatling Exploration: Aggressive Exploration Program At Larder Project Next To Agnico Eagle´s Mine
- Velocity Minerals: Developing 4 Gold Projects In Bulgaria Towards Production
- AVZ Minerals: Developing Huge Lithium Deposit In The DRC
- Aben Resources: Exploring Gold Project In The Golden Triangle, Canada
- Ora Banda Mining: Fast Forward Towards Gold Production In Australia - Already Owning A Mill
- Sama Resources: Well Financed For Huge Drill Program With Strong Partner In Ivory Coast
- HighGold Mining: Exceptional Drill Results from Polymetallic Gold Project - Resource Coming Soon
- Elim Mining: Reworking Historical Copper Project in Arizona - Resource & PEA in 2020
Bluestone Resources can drastically increase resource base
Bluestone Resources recently announced a new high-grade mineral resource estimate for the Cerro Blanco Gold Project in Guatemala. Resources in the Measured category increased 134% to 607,714 tonnes grading 11.5 g/t Au and 225,118 ounces gold. Measured and indicated resources increased 18% to 1.41 million ounces at an average of 10.3 g/t Au.
Cerro Blanco thus remains one of the highest quality undeveloped gold projects of its kind.
US Gold delivers spectacular drilling results
US Gold recently announced the results of its 2019 drill program and the receipt of drill hole assays from the Keystone project in the Cortez trend in Nevada. The Company encountered 76.2 metres of 0.224g/t gold including 25.91 metres of 0.408g/t gold.
US Gold: Target price US$ 2.70!
The investment house H.C.Wainwright&Co. recently published a research report on US gold. The analysts also announced a 52-week price target of US$ 2.70 per share.
- Leagold Mining: Increasing Gold Production In Brazil & Mexico Up To 700k Oz Over Next 2 Years
- Alexco Resource Could Be Very Fast In Profitable Silver Production
- Nickel Creek Platinum: Huge Nickel & PGM Deposit In Canada Ready For Development
- GoGold Resources: Optimizing Existing Silver Deposits In Mexico - One Mine In Production
- FPX Nickel: Derisking Huge Nickel Deposit In Canada - Updated PEA In 2020
- Banyan Gold: Focus On Exploring The Aurex-McQuesten Gold Project Next To Victoria Gold
- Silver One Resources: Pushing Candelaria Silver Deposit Towards Development
- Equinox Gold: Fast Growth Towards 250k Oz Gold Production & More
Caledonia Mining reports positive quarterly results
Caledonia Mining announced operating and financial results for the third quarter of 2019 a few days ago. Gold production for the quarter was 13,646 ounces, an increase of 7.3% over gold production for the second quarter of 2019, with production for the first nine months of 2019 increasing to 38,306 ounces. Undiluted earnings per share ("EPS") for the quarter amounted to 61.1 cents and adjusted EPS to 16.2 cents. As in the second quarter, earnings were positively influenced by significant currency devaluations in the course of the quarter. Quarterly performance remains robust with operating cash flow of $4.9 million for the quarter and net cash on hand of approximately $8 million as of September 30.
ISOEnergy carries out double private placement
ISOEnergy recently announced that it has entered into a guaranteed private placement agreement with PI Financial Corp. to achieve total gross proceeds of $3.50 million CA$ and a non-brokered private placement of shares for total gross proceeds of $2.65 million CA$. The unfunded financing is fully subscribed by NexGen Energy Ltd. The gross proceeds from the sale of units are used for the exploration of the Company's projects and for general corporate purposes.
Aurania Resources Provides Update on Drilling at Yawi
Aurania Resources recently reported that the first drilling of exploration drilling for epithermal gold and silver on "Yawi Target A" at the Lost Cities - Cutucu project in southeastern Ecuador was completed. The first hole on Target A, YW-001, reached a depth of 533.40 metres, approximately 460 metres vertically below the hole's starting point. The samples from YW-001 will be sent to the laboratory and the results will be announced as soon as they are available. The drilling rig was mobilized to the second platform and the second drilling on Target A is in progress. The first drill hole on Target A intersected small veins along its trajectory at various depths, showing band structures typical of epithermal gold-silver systems. Some of the veins show that the YW-001 hole, which was tilted south at an angle of 60 degrees to the horizontal, was drilled parallel to a component of the vein system. The YW-002 well will therefore be drilled to the north to penetrate the vein system.
- First Mining Gold: Developing Two Big Gold Projects In Ontario
- First Majestic Silver: Costs Reduced By 20% - Strong Investment In Exploration
- Chesser Resources: Exploring High Grade Gold Project Next To Major Gold Mines In Senegal
- Metallic Minerals: Acquired La Plata Project - Cashflow From Alluvial Mining In 2020
- EMX Royalty: Over 30 Royalty Streams And Many More Projects In Pipeline
- Granite Creek Copper: Early Stage Brown Field Copper Exploration in Yukon
- Condor Gold: Further Derisking of La India by Getting Permits and Buying Land
EnWave announces license option agreement for Mexico
EnWave recently announced that it has signed a technology evaluation and licensing option agreement with Pick-One S.A. de CV to evaluate the use of the company's Radiant Energy Vacuum ("REV™") dewatering technology for the development of dehydrated fruit and vegetable snacks. During the term of the TELOA, Pick-One pays a monthly evaluation fee and has the non-exclusive option to license the REV™ technology in Mexico for a range of snack products.
EnWave: Target price 2.60 CA$!
The analyst firm Alster Research recently published a research report on EnWave and set a price target of CA$ 2.60 per share.
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: Amex Exploration + Discovery Metals + Cardinal Resources + Sibanye-Stillwater + Skeena Resources + Calibre Mining + Sitka Gold + Granada Gold Mine + CopperBank + Skyharbour Resources + Monument Mining + Generation Mining + Pelangio Exploration + Uranium Energy + Endeavour Silver + Gatling Exploration + Velocity Minerals + AVZ Minerals + Aben Resources + Ora Banda Mining + Sama Resources + HighGold Mining + Elim Mining + Bluestone Resources + US Gold + Leagold Mining + Alexco Resource + Nickel Creek Platinum + GoGold Resources + FPX Nickel + Banyan Gold + Silver One Resources + Equinox Gold + Caledonia Mining + ISOEnergy + Aurania Resources + First Mining Gold + First Majestic Silver + Chesser Resources + Metallic Minerals + EMX Royalty + Granite Creek Copper + Condor Gold + EnWave.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Discovery Metals + Sibanye-Stillwater + Skeena Resources + Uranium Energy + Endeavour Silver + Bluestone Resources + US Gold + Caledonia Mining + ISOEnergy + Aurania Resources + 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