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Newsletter 02 /2020

This newsletter contains news on the following topics:
Giga Metals + Osisko Gold Royalties + Frank Holmes + Equinox Gold + Revival Gold + Share of the Week: Caledonia Mining + Silver: This looks really good now! + Endeavour Silver + Sibanye-Stillwater + Treasury Metals + Copper Mountain Mining + Millennial Lithium + Skeena Resources + First Cobalt + Auryn Resources + TerraX Minerals + Maple Gold Mines + GoldMining + EnWave + RNC Minerals + IsoEnergy

In recent weeks we have been able to meet and interview many company representatives, including at the Vancouver Resource Investment Conference. In the following and in the further course of this newsletter you will find the most interesting interviews and company presentations from the past three weeks:

Share of the week: Caledonia Mining

Caledonia Mining reports record production
Caledonia Mining recently reported record quarterly gold production from its blanket mine in Zimbabwe for the quarter ending December 31, 2019. During the quarter, approximately 16,876 ounces of gold were produced, surpassing the previous production record of 16,425 ounces from the last quarter of 2017. Production in the quarter was 24 per cent higher than in the previous quarter and 13 per cent higher than the corresponding final quarter of 2018, with total gold production in 2019 at around 55,182 ounces, ahead of the revised production forecast of 50,000 - 53,000 ounces.
Caledonia also announced that gold production for 2020 is expected to be between 53,000 and 56,000 ounces.
News: Record quarterly gold production at Blanket Mine
Newsflash: Newsflash with Skeena Resources, Caledonia Mining, Copper Mountain and Millennial Lithium

Caledonia Mining increases share of Blanket Mine
Caledonia Mining has been working towards this for months, if not years: One increases the share of the Blanket Gold Mine from 49 to 64%. Approvals from various Zimbabwean regulatory authorities were required to complete the purchase, and all have now been received. The gross consideration for Fremiro's interest in Blanket is $16.667 million, which will be paid through the release of the $11.467 million loan between Fremiro and the Company as of June 30, 2018 and the issuance of 727,266 new shares of Caledonia at an issue price of $7.15 per share, representing the closing quotation on the NYSE on August 17, 2018. Consequently, Caledonia's share in Blanket is 64 percent and Fremiro holds approximately 6.3 percent of Caledonia's issued share capital.
This is an important milestone for Caledonia, which could lead to higher cash flow and thus (even) higher dividends in the future.
News: Caledonia increases its shareholding in Blanket Mine to 64 per cent

Market overview:

Silver: This looks really good now!

The silver price experienced a slump of over 3.5% on Tuesday! What at first seemed like a medium catastrophe apparently followed a precise plan. From a purely chartist point of view, the short excursion into the range around US$ 17.35 was just right to pursue a long-term plan. For it was exactly at US$ 17.39 that the 61.8% retracement took place! To hit the intraday exactly is perfect for what should come now. Because now it looks as if a slightly shifted raised floor has formed. And this in turn points to an overall target price of actually over US$ 21! Should this be broken, we are even talking about new targets above 30 US$. However, more of this will only be the case if prices of around US$ 20 are actually reached now.

Further company news:

Endeavour Silver to produce 7.1 million ounces of silver equivalent in 2019
Endeavour Silver reports total production for 2019 of 4.05 million ounces (oz) silver and 38,907 oz gold. Silver equivalent production totaled 7.1 million ounces at a silver:gold ratio of 80:1. In the fourth quarter of 2019, silver production was 939,511 oz and gold production was 9,578 oz. This corresponds to a silver equivalent production of 1.7 million oz. Silver and gold production in the fourth quarter of 2019 was lower than in the fourth quarter of 2018 due to the suspension of mining activity at the El Cubo mine during the quarter and lower throughput and grades at Bolanitos, partially offset by higher production at Guanacevi and new production at El Compas. The company revoked its revised targets in the fourth quarter of 2019; silver production missed the lower end of the revised production target by 4% and gold production was 2% below the revised 2019 target.
During the second and third quarters, the Company made extensive changes to its mining operations and as a result, the Company saw a reversal in production trends, led by Guanacevi. Endeavour expects all three of its mines to produce more in 2020. A final updated pre-feasibility study for Terronera will be completed this month and an initial economic evaluation for Parral is expected in the first quarter of 2020.
News: Endeavour Silver Produces 4,018,735 oz Silver and 38,907 oz Gold (7.1 Million oz Silver Equivalents) in 2019

Endeavour Silver: Target price US$ 2.70
A few days ago, the analyst firm Roth Capital Partners published a research report on Endeavour Silver. In it, the analysts announced a buy recommendation and a price target of US$ 2.70.
Research Report: Buy recommendation for Endeavour Silver from Roth Capital Partners - Target price: USD 2.70

Sibanye-Stillwater expands partnership with DRDGOLD
Sibanye-Stillwater was able to announce a few days ago that it had exercised its option to subscribe for additional common shares of DRDGOLD Limited to achieve a 50.1% interest in DRDGOLD. By acquiring a majority stake in DRDGOLD, a leading company in the field of opencast mining and processing technology, the company continues to create value for all stakeholders. The value of the first investment rose by 147% within 17 months.
News: Sibanye-Stillwater cements its industry-leading surface mining partnership with DRDGOLD

Treasury Metals reports top drilling results
Treasury Metals recently announced assay results from the first nine holes of its 15,000-metre exploration program. These included 7.4 g/t Au over 6.3 metres, including 10.13 g/t Au over 4.0 metres in the Main Zone. The Eastern C Zone exploration target included 14.8 g/t Au over 7.0 metres, including 101.0 g/t Au over 1.0 metre.
Treasury's infill and extension drilling program on the Eastern C Zone has progressed well with significant intercepts to date in the sparsely drilled area east of the currently defined resource area. Additional drilling at the Main Zone shows high potential for upgrading the mineral resources of the current Goliath Gold Project.
News: Goliath Exploration Program Intersects 10.1 g/t Au over 4.0 m and 14.8 g/t Au over 7.0 m at Main and C Zones
Video-Presentation: Treasury Metals: Infill and Expansion Drill Programm for Pre Feasibility Study, Which is Coming in 2020

Copper Mountain Mining expects production increase of up to 33% in 2020
Copper Mountain Mining recently announced production results for the fourth quarter and full year 2019 for its copper mine of the same name in southern British Columbia. The company also announced a three-year production forecast for 2020 to 2022 and a cost forecast for 2020, which are truly impressive. According to our own estimates, production is expected to increase by up to 33% to 86 to 96 million pounds of copper in 2020. In 2019 production still amounted to 72.0 million pounds of copper and was thus in line with the production forecast. Production in Q4 2019 was 18.6 million pounds of copper, 14% higher than in Q3 2019, and C1 operating costs are expected to be between $1.30 and $1.45 per pound in 2020.
News: Copper Mountain Mining Announces 2019 Production and Provides Three-Year Guidance
Newsflash: Newsflash with Skeena Resources, Caledonia Mining, Copper Mountain and Millennial Lithium

Millennial Lithium receives 5 mining licenses
Millennial Lithium recently announced that the Salta Mining Court has granted four of the five mining licenses covering the original REMSA properties to Millennial's Argentinean subsidiary, Proyecto Pastos Grandes S.A. These four mining licenses cover approximately 97% of REMSA's Pastos Grandes Project property. Millennial expects the fifth license to be granted in the near future. The company continues to advance its 3-ton lithium carbonate plant and pilot evaporation ponds, in addition to completing the construction of the community water well and the sustainable business development and indoor recreation center in Pastos Grandes. In addition, Millennial continues to drive forward financing, acquisitions and other strategic discussions with major industrial companies.
News: Millennial Lithium Corp. Granted REMSA Licenses at its Pastos Grandes Project, Salta, Argentina
Newsflash: Newsflash with Skeena Resources, Caledonia Mining, Copper Mountain and Millennial Lithium

Skeena Resources announces world class drilling results
Skeena Resources recently announced additional gold-silver drill results from the 2019 Phase I surface drill program at the Eskay Creek project in British Columbia's Golden Triangle. For the 2019 Phase I program, four surface drill rigs were used in Zones 21A, 21E and HW to infill areas with inferred resources and bring them to the indicated classification.
Highlights of the Eskay Creek Phase I drilling were:

  • 10.14 g/t Au, 345 g/t Ag (14.73 g/t gold equivalent (AuEq.)) over 36.85 metres
  • 2.90 g/t Au, 278 g/t Ag (6.60 g/t AuEq.) over 57.90 meters
  • 4.14 g/t Au, 151 g/t Ag (6.15 g/t AuEq.) over 61.50 meters
  • 7.01 g/t Au, 114 g/t Ag (8.53 g/t AuEq.) over 37.89 meters
  • 4.09 g/t Au, 52 g/t Ag (4.78 g/t AuEq.) over 59.00 meters
  • 6.34 g/t Au, 42 g/t Ag (6.91 g/t AuEq.) over 34.00 metres and
  • 8.33 g/t Au, 51 g/t Ag (9.02 g/t AuEq.) over 18.45 metres

The ongoing 2019 Phase I drill program has been and continues to be highly successful as the Company's drill intercepts continue to predictably confirm the geometries and grades defined by the historical drilling.
News: Skeena Intersects 14.73 g/t AuEq over 36.85 m at Eskay Creek
Newsflash: Newsflash with Skeena Resources, Caledonia Mining, Copper Mountain and Millennial Lithium
Video:Skeena Resources: Infill Drilling at Eskay Creek to Increase Resource - Possible Sale of Project

First Cobalt achieves significant resource expansion
First Cobalt recently announced a new high-grade mineral resource estimate for the Iron Creek project in Idaho, USA. In 2019, First Cobalt completed an infill drilling program focused on inferred resource to indicated resource conversion, resulting in a 49% conversion to indicated category and a 12% increase in cobalt metal contained while maintaining average grade. In total, Iron Creek now has an Indicated resource of 2.2 million tonnes at 0.32% cobalt equivalent (0.26% cobalt and 0.61% copper) for 12.3 million pounds of contained cobalt and an Inferred resource of 2.7 million tonnes at 0.28% cobalt equivalent (0.22% cobalt and 0.68% copper) for an additional 12.7 million pounds of contained cobalt.
The deposit is one of the few primary cobalt deposits in America and remains open along strike and down dip.
News: First Cobalt Reports 49% Upgrade in Cobalt Resource from Inferred to Indicated at Idaho Project
Interview: First Cobalt: Starting Cobalt Production with 12 TPD This Year

Auryn Resources reaches significant milestone
Auryn Resources recently announced that it has identified the age of intrusive rocks directly related to mineralization at the Sombrero Copper-Gold Skarn Project in Peru. Based on the results of five uranium-lead samples collected from diorite thresholds at the Cascabamba and Nioc targets, the age ranges from 38.85 to 40.47 million years. This places the mineralization within the same Eocene age metallogenic event that produced several world-class deposits in the Andahuaylas-Yauri Belt, such as Las Bambas. It was also noted that the belt extends over 100 kilometres to the west, where the Sombrero Project is located.
The age dating results thus represent a very significant development in Auryn Resources' exploration model and further support the potential for the discovery of world class deposits.
News: Auryn Confirms Age of Mineralizing Intrusives at Sombrero District Equivalent to Major Deposits in the Andahuaylas-Yauri Belt
Interview: Auryn Resources: Getting Environmental Permits to Start Drill Campaign on Sombrero Soon

Auryn Resources announces private placement and loan extension
Auryn Resources also announced that it has arranged a CA$10 million non-brokered private placement. The placement will consist of approximately 6.3 million common shares at a price of CA$1.60 per share. In connection with the equity placement, the Company has agreed with the lender under a bridge loan facility to amend the loan to add mutual conversion rights of the loan into ordinary shares. The terms of the loan will provide the lender with the right to convert the $3 million advanced to date into common stock at a placement price of $1.60, subject to the lender being required to convert when the Company's shares trade on the TSX at a price of $2.50 or greater for five consecutive trading days prior to the loan's due date. The lender has also agreed to reduce the interest rate of the loan to 5 % per annum.
The Company intends to use the net proceeds of the placement to fund further surface exploration on its Sombrero and Curibaya projects in southern Peru and for general working capital.
News: Auryn to Raise $10 Million and to Amend Bridge Loan

TerraX Minerals starts drill program
TerraX Minerals recently announced the commencement of a 10,000-metre drill program at its Yellowknife Gold Project in the Northwest Territory, Canada. This first phase of drilling will commence at the Sam Otto Gold Deposit, as it is more accessible during the winter, and will focus on expanding the current NI 43-101 compliant inferred mineral resource of 735,000 ounces of gold currently estimated at the project.
The 10,000-metre drill program at Sam Otto will consist of approximately 40 holes planned to be drilled on strike to extend the known mineralization corridor and test the open gap between Sam Otto Main and Sam Otto South.
News: TerraX Announces Start of 2020 Drilling Program at Yellowknife Gold Project
Interview: TerraX Minerals: Adding Value by more Drilling and Increasing Existing Resource, Interview from November 2019

Maple Gold Mines Begins Hot Expected Drilling
Maple Gold Mines recently announced that the first drill rig has arrived at the project and has begun to test priority high grade targets in the 531 zone. Last year, Maple Gold created a new 3D model that guided the decision to drill the 531 Zone, where no drilling has been completed since 2007. The single hole in the 531 Zone, drilled during the 2019 winter campaign, intersected two mineralized zones (51 m at 2.81 g/t Au, including 16 m at 4.58 g/t Au and 9 m at 4.92 g/t Au; and 28 m at 2.55 g/t, including 9 m at 4.71 g/t Au).
The Company plans to mobilize one or two additional drill rigs in the first quarter to begin reviewing priority targets in the Porphyry, Nika and Main zones. One of the main objectives of this second phase of drilling will be to delineate additional near-surface mineralization at higher grades than the deposit average to support the initial work on the scoping study which will begin later this year.
News: Maple Gold commences drilling at the 531 Zone
Interview: Maple Gold Mines: Drilling New High Grade Extension "531 Zone"

GoldMining receives OTCQX award
GoldMining recently announced that it has been named OTCQX® Best 50 in 2020, a ranking of the top performing companies traded on the OTCQX Best Market last year. The OTCQX®Best 50 is an annual ranking of the 50 best US and international companies traded on the OTCQX BEST Market. The ranking is compiled by OTC Markets Group Inc, operator of the OTCQX and other financial markets for 10,000 US and global securities. The ranking is calculated based on an equal weighting of the total return for a year and the average daily increase in dollar volume in the previous calendar year. The companies of the OTCQX Best 50 2020 were ranked according to their performance in 2019.
This should give the GoldMining share more attention and thus generate more volume.
News: Goldmining Inc. Named to 2020 OTCQX Best 50, Selected as One of the Top 50 Performing Companies For 2019 on the OTCQX
Interview: GoldMining:" If it Comes to M&A, We are in the Driver Seat"

EnWave enters further development agreement
EnWave announced a few days ago the signing of a technology license and joint development agreement (JDA) with GEA Lyophil GmbH, a global manufacturer and marketer of freeze drying equipment for the pharmaceutical and biotech industries, to accelerate the potential commercialization of EnWave's Radiant Energy Vacuum ("REV™") technology in the pharmaceutical industry. This collaboration between EnWave and GEA Lyophil, including the development and manufacture of REV™ next-generation machines that leverage the proprietary intellectual property of both parties, will enable EnWave's current pharmaceutical partner to conduct clinical trials for multiple vaccines. If successful, GEA Lyophil will encourage the purchase of GMP-pharma REV™ facilities on a commercial scale from this partner and other pharmaceutical companies. EnWave would be entitled to a royalty in the form of a percentage of all equipment produced and sold as part of the commercialisation of the technology under the JDA.
The JDA thus enables EnWave to focus on its current core competencies in the global food and cannabis industry, reduces the resources required for a meaningful monetization of the REV™ technology in the pharmaceutical industry, and leverages a technically and commercially leading supplier in GEA Lyophil.
News: EnWave Signs Technology License and Joint Development Agreement with GEA Lyophil GmbH to Advance REV™ Technology for Pharmaceutical Applications
Interview: EnWave: Targeting Profitability in 2020 - Signed Joint Development Deal with GEA Lyophil

EnWave closes license deal in Colombia
In addition, EnWave recently announced that it has entered into a commercial fee-based licensing agreement with Pacifico Snacks S.A.S. to produce REV ™ dried fruit snacks for the North American food market. Under the terms of the license, Pacifico Snacks purchased a commercial 10 kW Radiant Energy Vacuum machine ("REV ™") to begin commercial production in Colombia.
This license is EnWave's first in Colombia and the 38th worldwide, further demonstrating the value proposition of REV ™ technology as a means to develop innovative premium food applications. Because Pacifico has access to low-cost, high-quality local raw materials in Columbia, Pacifico plans to produce snack offerings under the brand name Better-for-You using REVTM.
News: EnWave Signs Commercial License Agreement with Pacifico Snacks in Colombia and Receives Purchase Order for REV™ Machine

RNC Minerals with operation update and production planning
RNC Minerals recently announced that management is targeting consolidated production of 90,000 to 95,000 ounces of gold at an average total cost of US$1,050 to US$1,200 per ounce for the full year 2020. It is important to note that the production and cost targets do not include contributions from potential high-grade coarse gold deposits found from time to time at the Beta Hunt Mine.
Based on the current interpretation of the Beta Hunt / Lunnon sediment shear zone cutting horizons, it is expected that additional coarse gold will be produced during 2020, which represents increased potential for production and cost estimates for 2020.
News: RNC Minerals Provides 2020 Production, Cost Guidance and Strong Operational Update

IsoEnergy starts pioneering drilling campaign
IsoEnergy recently announced that an aggressive winter drilling program has commenced in the Hurricane Zone. The Hurricane Zone is a newly discovered high-grade uranium mineralization on the Company's 100% owned Larocque East property). The drill program consists of 8,500 metres of drilling by approximately 20 holes. These are infill drilling to further delineate the 500-metre-long mineralized trend and extension drilling to assess the potential for expansion in both the eastern and western strike directions.
The 100% owned Larocque East property comprises 20 mineral claims totaling 8,371 hectares and is unencumbered by royalties or other interests. Larocque East borders the northern end of IsoEnergy's Geiger property and is located 35 kilometres northwest of Orano Canada's McClean Lake uranium mine and processing facility.
News: IsoEnergy Begins Winter Drilling Program at the Hurricane Uranium Zone

Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following securities mentioned in this issue: Giga Metals + Osisko Gold Royalties + Equinox Gold + Revival Gold + Caledonia Mining + Endeavour Silver + Sibanye-Stillwater + Treasury Metals + Copper Mountain Mining + Millennial Lithium + Skeena Resources + First Cobalt + Auryn Resources + TerraX Minerals + Maple Gold Mines + GoldMining + EnWave + RNC Minerals + IsoEnergy.

Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Osisko Gold Royalties + Caledonia Mining + Endeavour Silver + Sibanye-Stillwater + Treasury Metals + Copper Mountain Mining + Millennial Lithium + Skeena Resources + First Cobalt + Auryn Resources + TerraX Minerals + Maple Gold Mines + GoldMining + EnWave + RNC Minerals + IsoEnergy.

This publication is based on the detailed risk information, limitations of liability and disclaimers of Swiss Resource Capital AG, which can be viewed here: risk information and disclaimer

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