Newsletter 04 /2020
This newsletter contains news on the following topics:
Revival Gold + Share of the Week: Auryn Resources + USA builds strategic uranium resource and invests US$150 million annually in domestic production + Uranium Energy + Osisko Gold Royalties + Aurania Resources + Fiore Gold + TerraX Minerals + White Gold + GoldMining + IsoEnergy + Skeena Resources + MAG Silver + EnWave + Bluestone Resources
Corporate video: Revival Gold Video Tour Through Beartrack-Arnett Gold Deposit
Share of the week: Auryn Resources
Auryn Resources concludes financing and credit
Auryn Resources announced a few days ago that it has completed its previously announced non-brokered private placement for gross proceeds of CA$10.1 million. Simultaneously with the closing of the offer, the company has completed the amendment of its bridge loan of September 2019. The loan amendment allows the lender to convert the $3 million amount advanced to date and the interest accrued to date of $123,334 into common stock at a placement price of $1.60, which upon conversion will allow the issuance of up to 1,952,084 common shares. The loan amendment also gives the Company the right to require conversion if the Company's common shares trade on the TSX for five consecutive trading days at a price of CA$2.50 or more prior to the maturity date of the loan. The interest rate for the bridging loan was reduced to 5 % per annum from the date of the loan amendment.
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 Closes Non-Brokered Private Placement and Bridge Loan Amendment
Video: Auryn Resources: Getting Environmental Permits to Start Drill Campaign on Sombrero Soon
Auryn Resources receives environmental permit
Furthermore, Auryn Resources recently announced that it has received the environmental permit, the Declaración de Impacto Ambiental ("DIA"), from the Peruvian Ministry of Energy and Mines for its Sombrero copper-gold project in southern Peru. The DIA covers an area of 1,031 hectares and will allow the Company to drill up to 33 holes from 23 platforms in the Cascabamba Sombrero Main main target area, where Auryn has completed most of its previous work within the 130,000-hectare land package.
The next step in the approval process is the permit for Inicio de Actividades ("Start of Activities"), which was submitted to the authorities last week. This step also includes Consulta Previa ("social counseling"), by which the government agency confirms the community's support for the upcoming drilling program and future exploration activities.
News: Auryn Secures DIA for Initial Drill Program at Sombrero Copper-Gold Project in Southern Peru
USA builds strategic uranium resource and invests US$150 million annually in domestic production
Many uranium investors have waited a long time for this news: A few days ago, the USA announced President Trump's so-called "Budget for America's Future", which includes a 10-year program of $150 million per year ($1.5 billion in total) to purchase uranium mined in the USA for a strategic national uranium reserve.
Government sources officially stated: "The establishment of a uranium reserve will ensure the availability of uranium in the event of a market disruption and support the strategic capabilities of the US in the fuel cycle. This action addresses the immediate challenges in the production of indigenous uranium and reflects the priorities of the Government's Nuclear Fuel Working Group (NFWG). The NFWG will continue to assess issues related to the uranium supply chain and fuel supply".
In his statement on the proposal for the uranium reserve, US Energy Secretary Dan Brouillette also pointed out: "This is the beginning of a long process that will revitalize the entire nuclear fuel cycle in many ways. What you saw in the President's budget is a demand for $150 million to begin the process of buying uranium. But it's not going to stop there."
The establishment of a uranium reserve will allow indigenous uranium companies such as Uranium Energy to resume some operations and start rebuilding domestic uranium mining capacity. The price at which the government will buy corresponding domestic uranium was initially left open.
Although at first glance the news seems to be extremely positive for the US uranium industry, critics doubt that a budget of US$ 150 million per year should be sufficient to permanently re-establish uranium mining in the USA.
News: Uranium Energy Corp Welcomes President Trump’s 2021 Budget for the Purchase of Domestic Uranium
Further company news:
Osisko Gold Royalties undergoes management changes through
Osisko Gold Royalties recently announced that the Board of Directors has appointed Frédéric Ruel as Chief Financial Officer and Vice President Finance, Iain Farmer as Vice President Corporate Development and Benoit Brunet as Vice President Business Strategy. Mr. Ruel, Mr. Farmer and Mr. Brunet will be appointed with effect from 20 February 2020 following publication of the consolidated financial statements.
Under the leadership of the newly appointed President, Osisko is well prepared for the next stages of growth.
Aurania moves Trira further into focus
Aurania Resources recently reported that soil samples in the Tiria area of the Company's Lost Cities Cutucu Project in southeastern Ecuador have defined compelling epithermal style targets. Tiria has moved up the list of epithermal gold-silver targets eligible for drilling ahead of the Apai target and the Company has applied for the necessary water permit.
Grid soil sampling has proven to be a very effective method for defining targets in the Tiria-Shimpia system and is carried out by local technicians while the Company's geological team leaders map the target areas and determine the location and shape of the target for drilling.
News: Tiria Moves Up the List of Aurania’s Gold-Silver Target Ranking
Tsenken becomes a porphyry copper target
Aurania Resources also reported that the Company has encountered copper enrichment in soil during subsequent exploration work over the Tsenken N3 geophysical target. These results clearly show that Tsenken N3 is a porphyry copper target like Tsenken N2, which is located only 1 kilometre to the southwest.
The soil sampling teams are now extending sampling over the rest of the magnetic signal at Tsenken N3 while geological mapping is being carried out in the area. Due to the sparse outcrop, the most efficient method of assessing the copper potential of the N2 and N3 targets is to drill shallow holes using an ultra-lightweight drill rig that can reach a maximum depth of 200 metres.
News: COPPER ENRICHMENT IN SOIL ENHANCES AURANIA’S TSENKEN N3 AS A PORPHYRY COPPER TARGET
Fiore Gold announces quarterly results and production forecasts
Fiore Gold announced a few days ago preliminary production results for the Company's first financial quarter of 2020 for its Pan open pit mine in White Pine County, Nevada. The company also issued a production forecast for the whole of 2020. In Q1 2020, the Pan Mine was ramped up to the higher gold production levels expected from the installation of the primary crusher. Gold production in the first two months of the first quarter was below plan as the operating team worked to optimize crusher throughput and fine-tune reagent mix and operating procedures. As with all heap leaching operations, there was a natural time lag between the crushed ore being placed on the leach pad and the gold being reported to the processing plant. However, the positive impact of the operational improvements began to show in December 2019, when gold production of 3,989 ounces of gold and a similar production level continued until January 2020. Gold production in FY 2020 is weighted towards the second half of the fiscal year and despite the production deficit in the first quarter, a significant year-on-year increase in the order of 45,000-48,000 ounces is still expected.
News: FIORE GOLD REPORTS Q1 2020 PRODUCTION AND PROVIDES FY2020 GUIDANCE
Video: Fiore Gold: Small Gold Producer Now - Working Towards Second Gold Mine in Nevada
TerraX Minerals meets broad quartz veins
TerraX Minerals recently provided an update on the 2020 winter drill program, having drilled 1,916 metres in 7 holes by the end of January. Drilling is being conducted in an effort to expand the NI 43-101 inferred mineral resource estimate at Sam Otto. This has allowed Sam Otto South to intersect broad shear zones with three drill holes containing quartz veins showing visible gold with potential. The company believes that these preliminary results could significantly contribute to achieving the goal of expanding resources at Sam Otto.
Attention: Name from TerraX Minerals now to new: Gold Terra Resource Corp.
News: TerraX Provides Update on 2020 Winter Drilling at the Yellowknife Gold Camp, Canada
Video: TerraX Minerals: Adding Value by more Drilling and Increasing Existing Resource, Interview from November 2019
White Gold with very good drilling results
White Gold recently reported results from Rotary Air Blast (RAB) drilling on several newly identified drill targets located on the White Gold property. Significant gold mineralization has been encountered on several targets in the vicinity of the Golden Saddle & Arc deposits. These targets were discovered using the Company's proprietary data-driven exploration strategy and include McKinnon East, Ulli's Ridge, Minneapolis Creek and several other targets. The 2019 RAB drill program was designed to drill a limited number of holes per target as a preliminary evaluation of the target areas.
The first drilling on the additional new targets and follow-up work will be carried out in 2020.
News: White Gold Corp. Intercepts Significant Gold Values on Multiple New Drill Targets Across the White Gold Property, Confirming and Extending Regional Scale Mineralization Surrounding the Company’s Flagship Golden Saddle & Arc Gold Deposits
GoldMining receives buy recommendations with price targets between 4.50 and 5.75CA$.
A few days ago, two research updates on GoldMining were published. The two analyst firms H.C.Wainwright&Co. and Roth Capital Partners reaffirmed their respective buy recommendations and reiterated their price targets of C$5.75 and C$4.50 respectively.
Research Update 1: Buy recommendation for GoldMining from H.C. Wainwright with target price: 5.75 CAD
Research Update 2: Buy recommendation for GoldMining from Roth Capital with target price: CAD 4.50
Video presentation: GoldMining: Undervalued According to Analysts and Peer Group Comparison
IsoEnergy encounters high radioactivity
IsoEnergy recently reported two new high radioactivity intercepts in the first holes of the winter drill program in the Hurricane Zone. Drill hole LE20-34 intersected 8.5 metres of uranium mineralization, including 2.0 metres of massive to semi-massive pitchblende with a reading of >65,000CPS. This is the most significant and strongest mineralization drilled on the property to date.
These great drill results come at a promising time for the sector as the market fundamentals for uranium move towards a period of higher prices.
News: IsoEnergy Intersects Strongest Uranium Mineralization to Date at the Hurricane Zone
Skeena Resources announces top drilling results!
Skeena Resources recently announced gold-silver drill results from the 2019 Phase I surface drill program at the Eskay Creek Project in British Columbia's Golden Triangle. Highlights were among others: 11.53 g/t Au, 247 g/t Ag (14.82 g/t AuEq) over 31.30 metres and 15.02 g/t Au, 70 g/t Ag (15.96 g/t AuEq) over 18.26 metres.
Four surface drill rigs are currently on site at Eskay Creek. The Company expects to commence the Phase I infill and exploration drilling program at surface in mid-February 2020 and the remaining assay results from the Phase I drilling program in 2019 will be released when all information has been received and validated.
News: Skeena Intersects 14.82 g/t AuEq over 31.30 metres at Eskay Creek
MAG Silver with real gain
MAG Silver recently announced that Ms. Selma Lussenburg has joined MAG as a member of the Board of Directors. Ms. Lussenburg is a Business Executive, former General Counsel, Corporate Secretary and current Board Director with over 35 years of business experience. She has held a variety of senior management positions with a wide range of responsibilities in legal, corporate governance, compliance, pensions, safety and security and operational functions. Ms. Lussenburg currently serves on several other boards and committees, including Ontario Power Generation and other boards.
She brings extensive legal, corporate governance and security expertise to MAG Silver, along with extensive business and board experience, which will enhance the ability to increase shareholder value.
News: MAG SILVER ANNOUNCES THE APPOINTMENT OF SELMA LUSSENBURG AS A DIRECTOR
EnWave with new director
EnWave recently announced the appointment of Mr. Patrick Turpin to the company's Board of Directors. Patrick Turpin is an accomplished manager who has successfully designed and launched multiple revenue-generating retail channels and brands. He has almost 30 years of experience in managing consumer goods organizations in various parts of the value chain. In addition to co-founding Popchips, he also held a senior management position at Costco Wholesale, where he led several strategic initiatives, including the creation of Costco's service station business and Costco's executive division. Patrick also managed Costco's vertically integrated private label packaging business for snacks and confectionery.
With the addition of Patrick Turpin, EnWave's board of directors now consists of five independent and two non-independent directors.
News: EnWave Announces Appointment of Mr. Patrick Turpin to its Board of Directors
Bluestone Resources announces top assay results
Bluestone Resources was recently able to provide an update on underground development activities and exploration and infill drilling at its Cerro Blanco gold project. Two development adits on two separate veins, one in the North Zone (VN_10) and the other in the South Zone (VS_10), were extended by mine blasting with Bluestone's mining equipment and personnel. Channel sampling of the veins was carried out at the tunnel front after each successive blast as the stollen movement progressed. Vein N636 along VN_10 in the North Zone was extended by 7.5 metres averaging 18.8 g/t Au and 44 g/t Ag over its total length of 22.4 metres (26 samples) and vein S314 along VS-10 in the South Zone was extended by 7.7 metres averaging 26.5 g/t Au and 122 g/t Ag over its total length of 29.3 metres (42 samples).
Bluestone's 2020 drill program will primarily focus on infill drilling in the South Zone and will build on the infill drilling program recently completed in the North Zone of the deposit.
News: Bluestone Extends Development Drift and Samples 26.5 g/t Au Along 29.3 meters of Vein
Video: Bluestone Resources: Drilling New Veins - Project Financing Coming Soon
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following assets mentioned in this issue: Revival Gold + Auryn Resources + Uranium Energy + Osisko Gold Royalties + Aurania Resources + Fiore Gold + TerraX Minerals + White Gold + GoldMining + IsoEnergy + Skeena Resources + MAG Silver + EnWave + Bluestone Resources.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Auryn Resources + Uranium Energy + Osisko Gold Royalties + Aurania Resources + Fiore Gold + TerraX Minerals + White Gold + GoldMining + IsoEnergy + Skeena Resources + MAG Silver + EnWave + Bluestone Resources.
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