Newsletter 05 /2020
This newsletter contains news on the following topics:
White Gold + Treasury Metals + Affinity Metals + IonEnergy + Genesis Metals + Monument Mining + NeoLithium + Bluestone Resources + Sierra Metals + Share of the week: MAG Silver + Skeena Resources + Osisko Gold Royalties + Auryn Resources + GoldMining + Gold Terra Resources + Sibanye-Stillwater + Aurania Resources + Copper Mountain Mining + Discovery Metals + IsoEnergy + Maple Gold Mines + Endeavour Silver + EnWave + RNC Minerals + Fiore Gold
In recent weeks we have been able to meet and interview many company representatives, including at the Prospectors & Developers Association of Canada (PDAC) in Toronto. Below you will find the most interesting interviews and company presentations from the past three weeks:
- Former U.S. Energy Secretary Warns of Energy Crisis
- White Gold Intercepts Significant Gold Values Around Golden Saddle
- Treasury Metals: Many reasons for revaluation
- Affinity Metals: First Drill Holes on Polymetallic Project Drilled Soon
- ION Energy: IPO Coming Soon for Mongolian Lithium Explorer
- Genesis Metals: Gold Exploration on Huge Land Package in the Abitibi Greenstone Belt
- Monument Mining: Looking for Financing to Bring Selinsing Back to Production
- Neo Lithium: Announcing Strategic Partner and Financing Very Soon
- Bluestone Resources: Targeting a Project Financing Package in Q2 2020 for Cerro Blanco
- Sierra Metals: Staged Increase of Copper-Silver-Zinc Production Planned
Share of the week: MAG Silver
MAG Silver lands direct hit
MAG Silver recently announced the results of the 2019 core drilling program at its Juanicipio joint venture property. The program expanded and updated the thick, high grade deep zone and confirmed additional northeast trending veins.
The most important drill results were:
- Confirmation and extension of the continuously massive, high grade mineralization in the Deep Zone Valdecañas.
- Confirmation and expansion of the powerful, high grade zones in the Anticipada vein.
- Confirmation and extension of the Venada ore vein to the south with high silver and gold grades.
- Discovery of the Valentina and Venadas II veins striking to the northeast through drilling and development work.
MAG Silver landed a real bull's eye with the D5-12 infill hole. The 5.7 metre hole intersected 3,884 g/t (113 ounces/tonne, opt) silver, 8.4 g/t (0.25 opt) gold, 8.4% lead, 9.7% zinc, 0.3% copper. This includes a true width zone of 0.8 metres containing 16,271 g/t (475 opt) silver, 9.2 g/t gold (0.27 opt), 17.8% lead, 11.8% zinc and 0.2% copper.
MAG Silver is currently running like clockwork, as the following message proves.
MAG Silver can bring forward production start
MAG Silver recently presented an update on the Juanicipio Project after construction is well advanced, detailed engineering is nearing completion and all major process equipment has been purchased and received on site. Key finding: The underground mine will start production ahead of schedule in mid 2020, providing commercial and operational de-risking opportunities for the joint venture. It is now expected to reach a capacity of 85% in Q4 2021 (previous forecast 65%) and 90-95% in 2022 (in line with previous forecast). The flotation plant will be commissioned in mid 2021.
Video presentation: MAG Silver: Construction Update at Juanicipio According to Plan
Further company news:
Skeena Resources announces fantastic drilling results
Skeena Resources recently reported the latest gold-silver assay results from the 2019 Phase I surface drilling program at the Eskay Creek Project in the Golden Triangle of British Columbia. The Company encountered 13.24 g/t Au, 701 g/t Ag (22.59 g/t AuEq) over 14.33 metres, including 176.00 g/t Au, 1,530 g/t Ag (196.40 g/t AuEq) over 0.90 metres. A total of 209 holes were drilled for a total of 14,266 metres.
Skeena Resources thus achieved the final breakthrough at Eskay Creek in 2019. And it continues as four ground-based drill rigs are now operating on the Eskay Creek project, continuing the Phase I infill program. Exploratory drilling is scheduled to begin in the coming weeks.
News: Skeena Intersects 22.59 g/t AuEq over 14.33 metres at Eskay Creek
Newsflash 1: Newsflash with Bluestone Resources, MAG Silver & Skeena Resources
Newsflash 2: Newsflash with IsoEnergy, Sibanye-Stillwater, Skeena Resources and Auryn Resources
Osisko Gold Royalties reports record cash flow for 2019
Osisko Gold Royalties announced a few days ago its consolidated financial results for the fourth quarter and full year ending December 31, 2019. The company generated cash flow from operations of $17.2 million in the fourth quarter of 2019, a record $91.6 million for the year.
In addition, the company recorded record license fee and stream revenues of $38.9 million for the fourth quarter of 2019, representing a record $140.1 million for the year 2019. For 2020, the Company plans to achieve between 82,000 and 88,000 GEOs and a margin of 90%.
In the wake of the good figures, Osisko Gold Royalties announced a further dividend payment.
Auryn Resources encounters high grade gold intercepts
Auryn Resources recently announced the results of its mapping and sampling program at the Curibaya precious metals project in southern Peru. A new zone of mineralization grading up to 946 g/t silver and 1.96 g/t gold was identified approximately one kilometre northeast of previous sampling. In addition, a float sample 800 metres northeast of the sampled veins returned 42.6 g/t gold and 9,180 g/t silver.
The Curibaya Project continues to provide an exceptional opportunity for high-grade silver and gold discoveries.
GoldMining acquires Almaden gold project
GoldMining recently announced that it has entered into an agreement with Sailfish Royalty Corp. and its subsidiary to indirectly acquire a 100% interest in the Almaden Gold Project in central Idaho. 70,234 metres of historic drilling (934 holes) have been completed on the project, which hosts eruptive, low sulphidation epithermal gold mineralization. The total purchase price will be US$1,150,000, consisting of common stock and cash.
The acquisition of Almaden, a historic gold project in central western Idaho that is in the resource phase, will further expand the GoldMining portfolio of gold projects in mining-friendly areas of America.
TerraX Minerals is now called Gold Terra Resource Corp.
TerraX Minerals recently announced a name change and change of name to Gold Terra Resource Corp. The new name Gold Terra comes with a refreshed, energetic team led by Gerald Panneton, Executive Chairman (founder of Detour Gold) and a new, focused approach to unlocking the untapped potential of the YCG project. The Company's website has changed to www.goldterracorp.com.
Presentation: TerraX Minerals Changes Name to Gold Terra Resource
Gold Terra Resources reports very good drilling results
Gold Terra Resources recently announced results from 3 drill holes from the Winter 2020 drilling campaign at Sam Otto South. Highlights include 25 metres at 1.39 g/t gold (including 10.59 metres at 2.48 g/t gold) in hole TSO20-058, and hole TSO20-53 intersected the main zone with a higher-grade interval of 2.0 metres at 6.24 g/t gold.
The identification of a new mineralized structure at Sam Otto South highlights the potential to add ounces to the current inferred resource. Management believes that these initial results mark the beginning of a significant expansion of the Sam Otto Zone, with 5 of 6 remaining holes still showing visible gold values.
News: New mineralized structure drilled at Sam Otto South delivers 25 meters of 1.39 g/t gold
Sibanye-Stillwater announces drastic resource expansion
Sibanye-Stillwater was able to report updated Group Mineral Resources and Mineral Reserves as of December 31, 2019 a few days ago. These included a 90% increase in total platinum group metal (PGM) mineral resources to 389.0 million ounces and a 20% increase in the Group's PGM mineral reserves to 55.1 million ounces, primarily due to the inclusion of the Marikana (formerly Lonmin) assets acquired in June 2019. Ongoing successful definition drilling at the Blitz project, Stillwater Mine, on PGM operations in the United States resulted in 2.0 million additional mineral reserves. Gold mineral resources at the South African gold operations increased by 52%, primarily due to a cost reduction associated with the Kloof integration project, which allowed for a reduction in cut-off grades.
In the past six months the prices of platinum metals, especially palladium and rhodium, have also risen significantly. Recent spot prices of palladium have exceeded US$2,500/oz and rhodium US$11,000/oz, which has resulted in increases of more than 100% and 200% respectively over reported mineral reserve prices. Both the Southern Africa (South Africa) and US PGM operations are subject to these movements, with the US PGM operations being predominantly palladium-rich (78% of the 2E basket) and palladium and rhodium accounting for approximately 30% and 9% of the 4E basket in the SA PGM operations. In addition, the rand / USD exchange rate is currently trading at around R 14.90, which further improves the profitability of SA operations.
At the moment things are running more than smoothly at Sibanye-Stillwater!
News: Sibanye-Stillwater Mineral Resources and Mineral Reserves declaration as at 31 December 2019
Sibanye-Stillwater reports high profit
Sibanye-Stillwater also announced its operating and financial results for the six months ended December 31, 2019. The company reported a 44% increase in revenues to Rand 73 billion (US$5.0 billion) and US$432 million profit for 2019.
This also means a significant reduction in business risk.
News: Results for the six months and year ended 31 DECEMBER 2019 – Short form announcement
Newsflash: Newsflash with IsoEnergy, Sibanye-Stillwater, Skeena Resources and Auryn Resources
Aurania Resources arranges $8 million financing
Aurania Resources announced a few days ago that the Company's Board of Directors has approved a non-brokered private placement to a strategic group of investors by issuing up to 2,580,644 units at CA$3.10 per unit for total gross proceeds of CA$8 million, subject to receipt of all applicable regulatory approvals.
The Company intends to use the net proceeds from the sale of the Units to advance exploration on the Lost Cities - Cutucu Project and surrounding areas, including the corporate social responsibility work required to gain access to concession areas, basic exploration including fieldwork and sampling, conducting and interpreting geophysical surveys to define specific target areas, and drilling on gold, silver and copper targets and for general working capital purposes.
News: Aurania Resources LTD. announces strategic $8 MILLION Financing
Newsflash: Newsflash with Discovery Metals, Aurania Resources and Corvus Gold
Interview: Aurania Resources: Processing LIDAR Results and Preparing Geophysic Program
Copper Mountain Mining reports very good fourth quarter
Copper Mountain Mining announced financial and operating results for the fourth quarter and full year 2019 a few days ago. Production for Q4 2019 was 22.6 million pounds of copper equivalent (including 18.6 million pounds of copper) and 87.2 million pounds of copper equivalent (including 72.0 million pounds of copper) for total 2019. Cash flow from operations for the fourth quarter of 2019 was $4.4 million and $51.2 million for 2019. Cash and cash equivalents at the end of the fourth quarter were $32.1 million. In 2019, the life of the Copper Mountain mine was extended by 17 years to 31 years and mineral reserves increased by 127% to 477 million tonnes at a grade of 0.23% copper for 2.47 billion pounds of copper. The mineral resource of the Eva Copper Project increased with the addition of the Blackard mineral resource. Measured and Indicated Resources increased 66% to 2.1 billion pounds of copper, adding 77 million tonnes at a grade of 0.49% copper for 836 million pounds of copper. Inferred resources increased 118%, adding 19 million tonnes at a grade of 0.49% copper with 206 million pounds of copper.
As a result, Copper Mountain Mining ended the year in a solid position with strong production and grade improvements in the fourth quarter as a result of the significant development completed in 2019. These improvements are expected to continue into 2020 and 2021, when the Company will gain access to high grade zones in the main mine. It is expected that production in 2020 will increase by 20 to 33% compared to 2019.
News: Copper Mountain Mining Announces Q4 and Full Year 2019 Financial Results
Video presentation: Copper Mountain Mining: Q4 and Full Year 2019 Numbers Published
Discovery Metals announces top drilling results
Discovery Metals was able to announce the results of the second set of diamond drill holes completed on its Cordero project in the Mexican state of Chihuahua afew days ago. The Company encountered 105.9 metres at 188 grams per tonne silver equivalent. In addition, several high-grade intercepts were also identified, including 1.1 metres at 1,533 g/t AgEq and 0.6 metres at 1,569 g/t AgEq.
The total exploration budget for Cordero in 2020 is CA$11 million. The Company is well positioned to finance this exploration program as it had approximately CA$24 million in cash on January 1, 2020.
News: DISCOVERY DRILLS 105.9 METERS OF 188 G/T SILVER EQUIVALENT AT ITS CORDERO PROJECT, MEXICO
Newsflash: Newsflash with Discovery Metals, Aurania Resources and Corvus Gold
IsoEnergy encounters up to 57% U3O8
IsoEnergy was recently able to report the results of the first drill holes of the winter program in the Hurricane Zone. Hole LE20-30 intersected 7.1% U3O8, 0.9% Ni and 0.3% Co over 5.5 metres. A higher-grade subinterval revealed an average of 24.0% U3O8, 2.7% Ni and 0.5% Co over 1.5 metres. Hole LE20-34 intersected 8.5 metres of uranium mineralization averaging 33.9% U3O8, including 5.0 metres averaging 57.1% U3O8. Hole LE20-32A intersected 8.5 metres of uranium mineralization averaging 19.6% U3O8.
The test results of LE20-34 are the best ever on Hurricane.
News 1: IsoEnergy Intersects 8.5m of 33.9% U3O8, Including 5.0m of 57.1% U3O8 at the Hurricane Zone and Expands Drill Program
News 2: IsoEnergy Intersects 7.1% U3O8 Over 5.5m, Including 24.0% U3O8 Over 1.5m in First Drill Hole at Hurricane
Newsflash: Newsflash with IsoEnergy, Sibanye-Stillwater, Skeena Resources and Auryn Resources
Maple Gold Mines starts drilling campaign
Maple Gold Mines was able to announce a few days ago that a drill rig was mobilized into the NW Zone where drilling commenced with a single hole to test lateral continuity of near-surface high grade mineralization. Upon completion of the drill hole in the NW Zone, the Company plans to commence drilling on the priority targets within the Nika Zone (4-5 holes planned) and the western portion of the Porphyry Zone (8-9 holes planned).
News: Maple Gold mobilizes drill rig to NW Zone and provides drill campaign update
Newsflash: Newsflash with GoldMining and Maple Gold Mines
Maple Gold Mines receives tax refunds
Maple Gold Mines recently announced that it has received a Notice of Assessment from Revenue Quebec ("RQ") for CA$399,966 in tax refunds in respect of qualifying exploration expenditures for 2018. The Company has received the first installment of $325,644 from RQ and expects to receive the balance in the coming weeks.
News: Maple Gold receives $400,000 in tax refunds and plans additional Artificial Intelligence Study to enhance predictive modelling at Douay
Endeavour Silver announces annual results
Endeavour Silver recently published its financial results for the fourth quarter and the year ending 31 December 2019. In 2019, revenues decreased by 19% to $121.7 million due to a 27% decrease in production compared to the previous year. This was primarily due to the planned production decline, insufficient operating performance and the discontinuation of operations at the El Cubo mine, partially offset by higher metal prices compared to 2018. As a result of lower production, operating cash flow, operating cash flow and EBITDA decreased compared to 2018. Net income decreased to a loss of $48.1 million compared to a loss of $12.4 million in 2018.
For the current year, the management expects an improvement in the production and financial key figures.
News: Endeavour Silver Reports Financial Results for the Fourth Quarter and 2019 Full Year
EnWave announces quarterly results
EnWave recently announced the company's consolidated interim results for the first quarter ending 31 December 2019. These results showed a consolidated net loss after tax of US$1,426, primarily due to investments in distribution infrastructure and the new launch of Moon Cheese.
News: EnWave Announces 2020 First Quarter Consolidated Interim Financial Results
RNC Minerals intersects multiple mineralizations
RNC Minerals recently announced the first results of the 2020 exploration program at its Higginsville facility. Recent drilling at Hidden Secret and Mousehollow has produced strong results and has advanced the expansion of proposed open pit dimensions at both projects. The Company encountered 15.1 g/t over 4 metres, 24.8 g/t over 4 metres and 26.1 g/t over 3 metres, among others.
News: RNC Minerals Announces New Visible Gold Discovery at Surface and High Grade Intersections Revealed by Ongoing Review of Historic Higginsville Database
Interview: RNC Minerals: New Strategy as a Gold Company with Straight Forward Plans
Fiore Gold announces quarterly figures
Fiore Gold recently presented good quarterly figures. Quarterly gold production was 8,750 ounces, including 3,989 ounces in December 2019, with consolidated all-in costs of US$1,330 per ounce sold. Quarterly revenues were $13.1 million with mine operating income of $2.4 million.
News: Fiore Gold Announces First Quarter 2020 Results
Video presentation: Fiore Gold: Small Gold Producer in Nevada with Growth Plans
Interview: Fiore Gold CEO Explains Growth Strategy and Production Techniques
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: White Gold + Treasury Metals + Affinity Metals + IonEnergy + Genesis Metals + Monument Mining + NeoLithium + Bluestone Resources + Sierra Metals + MAG Silver + Skeena Resources + Osisko Gold Royalties + Auryn Resources + GoldMining + Gold Terra Resources + Sibanye-Stillwater + Aurania Resources + Copper Mountain Mining + Discovery Metals + IsoEnergy + Maple Gold Mines + Endeavour Silver + EnWave + RNC Minerals + Fiore Gold.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: White Gold + Treasury Metals + Bluestone Resources + MAG Silver + Skeena Resources + Osisko Gold Royalties + Auryn Resources + GoldMining + Gold Terra Resources + Sibanye-Stillwater + Aurania Resources + Copper Mountain Mining + Discovery Metals + IsoEnergy + Maple Gold Mines + Endeavour Silver + EnWave + RNC Minerals + Fiore Gold.
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