Newsletter 03 /2019
This newsletter contains news on the following topics:
Share of the week: Uranium Energy + RavenQuest BioMed + Barrian Mining + Orsu Metals + Gold price with relative strength, despite strong US$ - Investments in gold are now inevitable + Bluestone Resources + Ur-Energy + Revival Gold + Copper Mountain Mining + Amerigo Resources + First Cobalt + Millennial Lithium + Steppe Gold + U.S. Gold + M2 Cobalt + ISO Energy + Energy Fuels + Endeavour Silver + Delrey Metals + Great Bear Resources + Lithium Chile + Denison Mines + Dunnedin Ventures + Aurania Resources + EnWave + Auryn Resources + Giga Metals + Firefox Gold + TerraX Minerals + eCobalt
At the recent Vancouver Resource Conference, interviews were conducted with some very interesting people. Some of these interviews can be found in this issue.
Interviews:
RavenQuest BioMed: RavenQuest BioMed: Production Ready - Waiting For Cultivation License
RavenQuest BioMed Site Visit: RavenQuest BioMed Site Visit At Edmonton Facility, January 2019
Barrian Mining: Barrian Mining: IPO In 2 Weeks Of New Gold Exploration Company In Nevada
Orsu Metals: Orsu Metals: Resource For Russian Gold Project Coming End Of February 2019
Share of the week: Uranium Energy
Uranium Energy: Full steam ahead in project development regarding Petition 232 decision and two buy recommendations
Uranium Energy recently published a shareholder letter from CEO Adnani. Among other things, he also referred to the company's development plans with regard to the Petition 232 decision to be taken in the middle of the year.
As a reminder, in January 2018, the only two remaining US uranium producers, Ur-Energy and Energy Fuels, filed a petition with the U.S. Department of Commerce to highlight the relevance of U.S. uranium production in terms of potential security concerns and increasing dependency of the energy industry on uranium imports.
The two companies argued that imports from successor countries of the former Soviet Union (namely Russia, Kazakhstan and Uzbekistan) now account for 40% of US demand for uranium, while only 5% of demand is produced in the US itself. The dependence, both of the US energy industry (after all, 20% of the electricity consumed in the USA is generated from nuclear power plants) and of the military, on these nations has increased alarmingly as a result. With their petition, the two producers want both the Ministry of Commerce and President Trump to work out a clear assessment of the import dependency of the USA on Russia, Kazakhstan and Uzbekistan and to promote the USA's own uranium industry. In July 2018, the U.S. Department of Commerce initiated an investigation into the impact of uranium imports on U.S. national security. A decision can be expected within 360 days.
Uranium Energy will therefore step on the gas with immediate effect in order to be best prepared for a possible positive decision as quickly as possible. In this context, the Company is prioritizing development of the fully approved Reno Creek ISR Project in Wyoming and development drilling on the Burke Hollow ISR Project in South Texas. Uranium Energy has a potential US production profile of 4 million pounds per year. Reno Creek is approved for £2 million a year and the Hobson processing plant, the hub of operations in South Texas, has a capacity of £2 million a year.
The Company is therefore ideally positioned to be part of this overall solution to support the growth of uranium mining in the United States with its environmentally friendly and cost-effective In-situ Recovery (ISR) projects.
Interview: Uranium Energy: Uranium Market Analysis, Advancing Reeno Creek In 2019
A few days ago the analyst firm EightCapital published a research report on Uranium Energy. The analysts gave a "buy" recommendation with a price target of US$ 3.20. The price of the shares was US$ 3.20.
Report: Eight Capital with Buy recommendation for UEC - Target price 3.20 USD
In addition, Roth Capital Partners published a research report, also with a buy recommendation and a price target of US$ 3.40. The company also published a report on the share price.
Report: Roth Capital Research with Buy recommendation for UEC - Target price 3.40 USD
Market overview:
Gold price with relative strength, despite strong US$ - Investments in gold are now inevitable
Global investment demand for gold has risen by an average of around 15 percent since 2001. The reason for the rising demand for gold is on the one hand the possibility of acquiring gold funds, on the other hand the middle class is growing, especially in Asia. And the financial crisis of 2009 is also likely to have shaken investors awake. Gold in physical form and shares of successful gold companies belong in every diversified portfolio today. Gold is an inflation and currency hedging vehicle. It also hedges against misguided monetary policy and exchange rate fluctuations. The political situation is uncertain not least because of the Brexit debacle. And not only in England, but all over Europe. In the USA, no further interest rate hike by the FED is expected, which will lead to a weaker US$. Consequently, the prospects for a rising gold price are good, according to the majority of gold connoisseurs. Price setbacks should always be seen as good buying opportunities. The rising prosperity of the middle classes in China and India, the great interest of the central banks in gold, increasing market uncertainty and declining mine production should further advance the price of gold.
The gold price is currently stable, at more than US$ 1,300 the troy ounce. In addition, recent inflows into gold ETFs have also increased noticeably again. While the crypto and cannabis sectors are slowly losing momentum, it looks as if a return to "real values" is taking place.
Company news:
Bluestone Resources Presents Positive Feasibility Study
Bluestone Resources recently announced the results of the independent feasibility study prepared in accordance with National Instrument 43-101 for its 100% owned high grade Cerro Blanco Gold project.
The average annual production in the first three years is therefore 146,000 ounces of gold. The average all-in support cost over the life of the mine is US$579/ounce (net of by-product revenue), which would place the project very well at the bottom end of the lowest quartile in the global cost structure. The after-tax internal rate of return was a strong 34% and the net present value was US$241 million after tax. The initial capital is US$ 196 million with an after-tax payback period of only 2.1 years.
The feasibility study clearly shows that the project is a robust, quickly amortising, high-quality underground operation.
Interview: Bluestone Resources: New Feasibility Study With Excellent Numbers
Bluestone Resources Reports Top Drilling Results
Bluestone Resources recently announced further infill drilling results from ongoing resource conversion drilling on its high-grade Cerro Blanco gold project. Among other things, a 3.3 metre long section with an average of 27.9g/t gold and 260g/t silver was encountered.
The focus of the ongoing infill drilling program is to transform inferred resources into explored and indicated resources.
Bluestone Resources: Three new buy recommendations with price targets between CA$ 2.25 and 2.75
Following the publication of the positive feasibility study, three analyst firms published corresponding research reports with buy recommendations.
For example, Macquarie Research set the Bluestone share to outperform with a price target of CA$ 2.25.
The analysts of the National Bank of Canada see the fair value of the share even at 2.40 CA$.
Haywood Capital Markets made a buy recommendation with a target price of CA$ 2.75.
Research Report 1: Macquarie with buy recommendation for Bluestone - Target price 2.25 CAD
Research Report 2: NBF with buy recommendation for Bluestone - Target price 2.40 CAD
Research Report 3: Haywood with Buy Recommendation for Bluestone - Target Price 2.75 CAD
Interviews:
Ur-Energy: Ur-Energy: Ready For Ramp-Up Of Uranium Production In US
Revival Gold: Revival Gold: Updating Resource At Beartrack In 2019
Copper Mountain Mining: Copper Mountain: Following Organic Growth Plan
Amerigo Resources: Amerigo Resources: Highly Profitable Copper Tailing Processing In Chile
First Cobalt presents valuable interim results of refinery tests
First Cobalt recently announced interim results from ongoing testing of cobalt alumina material as a potential feedstock for First Cobalt's Ontario refinery.
Accordingly, 98% of the cobalt was successfully washed out of cobalt hydroxide material in preliminary tests with solvent extraction processes in order to further remove harmful elements.
Cobalt extraction testing has commenced and sulfate crystallization is subsequently applied to the production of cobalt sulfate with results expected by the end of the first quarter.
The preliminary test results reported provide further assurance that the flow diagram of First Cobalt's cobalt refinery is suitable for inclusion of cobalt alumina feedstock.
News: First Cobalt Reports Progress in Refinery Material Testing
First Cobalt reports top drilling results
First Cobalt recently announced drill results from its Iron Creek cobalt project in Idaho, which further extended the strike and width of the mineralized zones while defining copper-rich areas to the west of the deposit. This included a 13.4 metre long section with an average of 2.22% copper.
News: First Cobalt Continues to Extend Mineralization at Iron Creek and Intersects High Grade Copper
Millennial Lithium reports positive pump tests
A few days ago Millennial Lithium reported results from an extended pump test of a second production well at the Pastos Grandes project in Salta, Argentina. The pump well PGPW17-04 was installed to complete the extended delivery of lithium brine to determine the robustness and chemical variation of the aquifer over 23 days in September 2018. At a pumping rate of 15 litres/second, the lithium content remained constant during the test period and the set-back value was about 57 metres, with rapid recovery. The estimated transmittance was calculated from the tap data at 40qm/day. Lithium concentrations remained constant throughout the pump test, ranging from 482 mg/litre to 518 mg/litre and an average of 495 mg/litre.
With a strong cash position, Millennial is on track to produce an updated 43-101 resource report in the first quarter and the Bankable Feasibility Study in the second quarter of 2019.
Steppe Gold: Target Price 1.75 CA$
A few days ago the analyst firm Haywood Capital Markets published a research report on steppe gold. The analysts gave a buy recommendation with a price target of 1.75 CA$.
Report: Haywood Research Recommends Buy Steppe Gold - Target Price: 1.75 CAD
Interviews:
U.S. Gold: U.S. Gold: Further Assay Results Coming Early 2019
M2 Cobalt: M2 Cobalt: Proposed Friendly Merger With Jervois
ISO Energy: IsoEnergy: Further Drilling At Larocque East Uranium Discovery
Energy Fuels: Energy Fuels: Uranium & Vanadium Production In US
Endeavour Silver Announces Production and Cost Forecast
Endeavour Silver recently announced production and cost projections for 2019 for its four silver-gold mines in Mexico. Silver production is expected to range between 4.4 and 5.2 million ounces (oz), gold production between 46,200 and 52,200 ounces. Silver equivalent production (AgÄq) should be approximately 8.1 to 9.4 million ounces at a silver to gold ratio of 80:1. Endeavour estimates that consolidated cash costs will be higher year-on-year at $8.50 to $9.50 per ounce of silver, while total sustainable costs (AISC) are expected to remain the same or slightly lower than 2018 at $15 to $16 per ounce of silver. Both figures are to be understood without credit for gold as a by-product.
News: Endeavour Silver Provides 2019 Production and Cost Guidance, Production Forecast 4.4-5.2 Million oz Silver and 46,200-52,200 oz Gold, for 8.1-9.4 Million oz Silver Equivalent
Interview: Endeavour Silver: Reducing Costs At Guanacevi By Half - Terronera Production Decision Coming Soon
Endeavour Silver expands to Chile
A few days ago Endeavour Silver presented a portfolio of exploration projects with great potential in Chile. Over the past six years Endeavour has acquired and expanded three exploration projects in northern Chile (Aida, Paloma and Cerro Marquez). Each of these projects has excellent potential for major new discoveries. The projects include important alteration systems that can be seen on satellite imagery, but due to the lack of road access in the past, no significant data from previous exploration is available for the projects. Endeavour has developed road access to the Aida and Cerro Marquez projects and has carried out several phases of early exploration to identify priority drill targets. The newly acquired Paloma Project has yielded prospective results from early-stage rock sampling and exploration work is expected to identify priority targets for drilling this year.
News: Endeavour Silver Introduces Portfolio of Exploration Projects in Chile, Reviews Growth Strategies and 2019 Exploration Plans, Hosting Growth Webinar Today, 10 am PT
Delrey Metals completes acquisition of vanadium projects
Delrey Metals recently announced that it has entered into a share purchase agreement dated 12 December 2018 with WEM Western Energy Metals Ltd, a private limited company, to acquire all issued and outstanding share capital of WEM. WEM holds a 100 percent, undivided, unencumbered legal and beneficial interest in both the Peneece and Blackie vanadium properties in British Columbia. The properties cover a total area of 2,714 hectares and include vanadium mineralization in large bodies of titanium-bearing magnetite.
News: Delrey Acquires Vanadium Assets
Interview: Delrey Metals: Recently IPOed Vanadium Explorer In British Columbia
Video company intro: Delrey Metals: Early Stage Vanadium Exploration In Canada
Interviews:
Great Bear Resources: Great Bear Resources: New High Grade Gold Discovery - Best Perfoming Stock 2018
Lithium Chile: Lithium Chile: Well Funded Exploration On Multiple Lithium Projects
Denison Mines: Denison Mines: "Switching Mining Method Changes Everything"
Dunnedin Ventures: Dunnedin Ventures: Advanced Diamond Exploration In Nunavut, Canada
Aurania Resources offers shareholders subscription rights for $6 million financing
Aurania Resources recently announced that it will make a rights offering to raise up to US$6.35 million. The Company offered entitled shareholders rights to purchase common stock on the basis of one right for each common share held after close of business on February 4, 2019.
News: Aurania Resources Announces $6.35 Million Rights Offering CEO, Keith Barron Committed to Backstop up to $4million
Interview: Aurania Resources: Further Drilling At Crunchy Hill - Results Before March 2019
EnWave grants further license to dry hemp
EnWave recently reported that it has signed a rights-managed commercial sublicense with Your Wasabi Farms Ltd., an existing licensing partner of EnWave. The agreement grants YWF the right to use its proprietary radiation energy vacuum ("REV™") dehydrogenation technology to dry cannabis plant material so that YWF can dry industrial hemp in Canada.
Another important step into the billion-dollar cannabis market.
News: EnWave Signs a Commercial Royalty-Bearing Sublicense for Your Wasabi Farms to Dry Industrial Hemp in Canada
Interview: EnWave: Increasing Moon Cheese Sales & Establishing REV Technology In Cannabis Sector
Auryn Resources resumes mining operations
Auryn Resources recently announced that it has resumed trenching work on its Sombrero copper-gold project in southern Peru. Trench work has commenced on the Fierrazo claims and will continue through the primary targets of Nioc, Good Lucky, Totora and Milpoc. With its scale, geophysical characteristics and extensive mapped and sampled copper-gold mineralization, Sombrero is a unique, unprecedented opportunity for significant discovery. In the coming months, continuous surface results from Sombrero will be obtained in addition to the results from the self-learning software and targeting on Committee Bay.
News: Auryn Resumes Trenching at Sombrero Copper-Gold Project
Interview: Auryn Resources: Two Projects For Sale - Focus On Sombrero & Committee Bay
Interviews:
Giga Metals: Giga Metals: Huge Low Grade Open Pitable Nickel Resource In British Columbia
Firefox Gold: Firefox Gold: Early Stage Gold Exploration In Northern Finland
TerraX Minerals: TerraX Minerals: Exploring District Scale Property For Gold, Huge Historic Corestack
eCobalt: eCobalt Solutions: Increasing Targeted Cobalt Production Rate By 50%
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: Uranium Energy + RavenQuest BioMed + Barrian Mining + Orsu Metals + Bluestone Resources + Ur-Energy + Revival Gold + Copper Mountain Mining + Amerigo Resources + First Cobalt + Millennial Lithium + Steppe Gold + U.S. Gold + M2 Cobalt + ISO Energy + Energy Fuels + Endeavour Silver + Delrey Metals + Great Bear Resources + Lithium Chile + Denison Mines + Dunnedin Ventures + Aurania Resources + EnWave + Auryn Resources + Giga Metals + Firefox Gold + TerraX Minerals + eCobalt.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Uranium Energy + RavenQuest BioMed + Bluestone Resources + Copper Mountain Mining + First Cobalt + Millennial Lithium + Steppe Gold + U.S. Gold + Endeavour Silver + Delrey Metals + Aurania Resources + EnWave + Auryn Resources + 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
