Newsletter 06 /2020
This newsletter contains news on the following topics:
Appia Energy + Energy Fuels + Fiore Gold + Gatling Resources + GoldMining + MAG Silver + Osisko Gold Royalties + Plateau Energy Metals + RosCan Gold + Tempus Resources + Triumph Gold + Uranium Energy + ValOre Metals + Wealth Minerals + Stock of the week: Sibanye-Stillwater + Caledonia Mining + Treasury Metals + Aurania Resources + Copper Mountain Mining + Canada Nickel + Skeena Resources + Maple Gold Mines + Iso Energy + Auryn Resources + Endeavour Silver + EnWave
Corona is around the industrialized world and keeps us at home. The shut down is serious for the economy and will have a lot of impact in the next future. But as we all know, every crisis and stock price melt down was a huge chance to buy quality cheap. Now it is important until Easter to make sure to stay healthy. After Easter shall the normal life restart quickly and we will see for sure a restart of economic activity. The Central Banks do Tsunamis of liquidity to keep the system alive and banks are a bit better prepared than in 2008. One thing is also for sure that demand for commodities will also restart again as mankind needs jobs and want to consume again. This means we still need a lot commodities and through Corona we are even missing more new mines and development of them as we had already. That means the supply crunch will rise and demand restarts and grows which would implement even in the future higher commodity prices. What we also should not forget are the Logarithm Traders, the Hedge Funds and short sellers. They have all played especially in copper, silver and additional base metals the recession card via the futures. When this turns we will see fast higher prices and then mining stocks will soar like in the 70´s!!! For those who are younger after 1974 after the oil crisis…
I wish you all a great weekend, stay healthy and this is now the time to hold on a bit, to read a book but even more important to have a Gin & Tonic for health prevention and a good glass of red wine for the nerves. Those times will be soon over and we keep our investors informed!
I would like to thank our clients for their patience and that they are with us and also my team for the fantastic work they do and that the SRC family is really holding together and we are doing all we can do for the investors and our clients. The tunnel is always darkest before the light comes after the end of it!
All the best and Kind Regards,
Jochen Staiger and the SRC-Team!!!
In recent weeks we were able to meet and interview many company representatives at the Prospectors & Developers Association of Canada (PDAC) in Toronto. Below and at the end of individual company news items you will find the most interesting interviews and company presentations from the past three weeks:
- Appia Energy: Playing the Rare Earth Metals Card While Uranium Price is Low
- Energy Fuels: "Nobody is Better Placed in the United States than Us"
- Fiore Gold: Releasing PEA for Second Gold Mine Gold Rock End of March
- Gatling Resources: 100.000m Drill Program Planned in Famous Gold Camp
- GoldMining: Acquisition of Almaden, Gold Stocks Still Undervalued
- MAG Silver: Two New Veins Discovered, Silver Production Starts in June 2020
- MAG Silver: Investor Presentation at PDAC 2020
- Osisko Gold Royalties Corporate Update with New President Sandeep Singh
- Plateau Energy Metals Released PEA for Unique Hard Rock Lithium Deposit in Peru
- RosCan Gold: New Management and Excellent Drill Results from Gold Project in Mali
- Tempus Resources: Exploring and Developing Gold Projects in Ecuador and British Columbia
- Triumph Gold: 3 Gold Deposits in Yukon with Outstanding Drill Results
- Uranium Energy: Ready for a Fast Restart of US Based Uranium Production
- ValOre Metale: Palladium-Platinum Deposit in Brazil with Exploration Upside Potential
- Wealth Minerals: Strong Partner and Environmental Friendly Lithium Sorption Technology
Stock of the week: Sibanye-Stillwater
Sibanye-Stillwater defies the current corona epidemic and may even emerge stronger from it, as the following reports of the past days impressively prove.
Sibanye-Stillwater settles metal purchase agreements ahead of schedule
Sibanye-Stillwater concluded a waiver and termination agreement a few days ago for the early termination of a previous streaming agreement on more favourable terms. The early settlement allows Sibanye-Stillwater to acquire the entire interest of the seller in the metal purchase agreement for a purchase price of US$50 million, which, according to the valuation using spot PGM prices on February 27, 2020, would have an attributable value of approximately US$81 million.
The transaction will replace a costly, secured, long-term financing instrument with a much less costly, unsecured, short-term facility that will provide operational flexibility for the Marikana operations and the ability to immediately market the now uncommitted metals palladium and rhodium for optimal pricing opportunities.
News: Early settlement of the Marikana Bulk tailings treatment project’s metal purchase agreement
Sibanye-Stillwater uses free processing capacities of Anglo American Platinum
Sibanye-Stillwater was also able to announce that it has entered into agreements in principle with Anglo Platinum to process all PGM containing material produced from its Rustenburg and Platinum Mile plants and approximately half of the PGM containing material produced from its Kroondal plants at its Marikana processing facilities at least for the duration of the Force Majeure period announced by Anglo Platinum.
Prior to the FM declaration, PGM-containing concentrate from Rustenburg was smelted and refined by Anglo Platinum under a contract processing agreement, while for Kroondal and Platinum Mile PGM concentrate there was a concentrate purchase agreement (PoC).
News: Marikana operations to provide processing capacity to offset Anglo Platinum Force Majeure
Video: Sibanye-Stillwater Company Teaser 2019
Further company news:
Caledonia Mining announces top annual results!
Caledonia Mining recently announced its operating and financial results for the year ending December 31, 2019. In total, gross revenues of $75.8 million were generated. Gross profit was $31.1 million, representing a gross margin of 41 percent. In 2019, 55,182 ounces of gold were mined. Shaft sinking at the central shaft was completed in July 2019 to a target depth of 1,204 metres (approximately 4,000 feet). Work has commenced on equipping the shaft, with commissioning expected before the end of 2020. Gold production in 2020 will be between 53,000 and 56,000 ounces, similar to 2019 until the completion of the central shaft. The Central Shaft is expected to become operational in the last quarter of 2020, after which production can be ramped up: Target production in 2021 is approximately 75,000 ounces and in 2022 approximately 80,000 ounces. The total cost of maintaining production will be between US$951 and US$1,033 per ounce; the cost per ounce is expected to decline after Central Shaft is commissioned.
The quarterly dividend was increased by 9 percent to 7.5 cents per share in January 2020, reflecting Caledonia's improved financial and operational performance and improved prospects as the Central Shaft project nears completion.
News: Caledonia Mining provides results for the Year ended December 31, 2019 and Notice of a Management Conference Call
Video: Caledonia Mining: Stronger Free Cash Flows from 2020 on - Dividend Increased
Treasury Metals encounters high-grade gold sections
Treasury Metals recently announced additional assay results from its expansion drilling at the Eastern C Zone and infill drilling at the Main Zone on the Goliath Gold Project in northwestern Ontario. Several high-grade gold intercepts were encountered including: 1.35 g/t over 14.7 metres, including 6.0 g/t Au over 2.0 metres and approximately 15 metres down dip to 65.2 g/t Au over 3.0 metres, including 193 g/t over 1.0 metres.
The Company will analyze these results along strike in relation to known mineralization within the Main Zone and will define drill targets for future testing.
News: Goliath Expansion Drilling Intersects High Grade in C Zone East Program
News 2: Goliath Drilling Intersects High Grade in East Expansion Target and Drills 20.8m of 3.4 g/t Au in Main Zone
Interview: Treasury Metals: New C-Zone Will Increase Production and Resource Profile
Aurania Resources finances again at higher rates
Aurania Resources announced a few days ago that it has completed the third and final tranche of the previously announced non-brokered private placement of units of the Company at a price of CA$3.10 per unit for total gross proceeds of CA$6,470,131.
The Company intends to use the net proceeds from the sale of the units to advance exploration on the Lost Cities - Cutucu Project and surrounding areas, including corporate social responsibility work required to gain access to the concession areas, basic exploration including fieldwork and sampling, conducting and interpreting geophysical surveys to refine certain targets, and conducting gold, silver and copper drilling.
The whole thing was carried out at a price of CA$ 3.10 per unit, which is far above the current share price.
News 1: Aurania Closes Second Tranche of Financing for Proceeds of $4.16M
News 2: Aurania Announces Closing of $6.47 Million Non-brokered Private Placement
Aurania Resources focuses on geological processing
Aurania Resources is forced to withdraw its geological personnel from the field. The geologists will spend the next few weeks processing a backlog of geological information from the field. They will focus on interpreting this information and refining exploration targets for gold-silver and copper-silver. In addition, the recently completed LiDAR survey has identified many potential historic mining and prospecting sites on the Ecuadorian concessions. These are currently being integrated with the airborne geophysical data, flow sediment cover and known cartographic geology for prioritization and ground investigation.
News: Aurania Adjusts Operations in Response to the COVID-19 Virus
Copper Mountain Mining revises mine and project schedule
Copper Mountain Mining has revised its mine and project plan at its Copper Mountain Mine, located in southern British Columbia, with the objective of maintaining solid positive margins and cash flow in response to current market conditions and short-term copper price uncertainty due to the impact of coronavirus on metal prices.
A summary of the changes contained:
- Postponement of capital expenditures for the installation of ball mill No. 3, which will save 22 million US dollars in 2020.
- Reduction of operating costs by realigning short-term production to more cost-effective mine phases.
- Preservation of high grade ore in pit #3, which is to be mined in 2020, is now to be mined in 2021 to meet expected higher metal prices in the future and to cover deferred capital expenditures for the expansion of the plant with ball mill #3.
These measures allow the Company to maintain solid cash flow margins at the mine and to operate sustainably in the current environment of low copper prices without sacrificing the long-term mine plan. In addition, the revised mine plan will allow the Company to continue to fund the mill expansion project internally.
News: Copper Mountain Mining Reacts to Covid-19 Related Market Uncertainty, Revises Mine Plan and Project Schedule to Lower Cost and Risk
Canada Nickel reports positive mineralogical assessment
Canada Nickel recently announced positive initial results from a mineralogical evaluation of sample material from its Crawford Nickel-Cobalt Project.
- 89% of the nickel in the higher-grade core of the resource is contained in nickel sulphide and nickel-iron alloy minerals.
- 59% of the nickel in the lower zones is contained in nickel sulphide and nickel-iron alloy minerals.
- Both the higher and lower grade areas contain significant amounts of magnetite. In the higher-grade core, the magnetite content was 8.7% on average and 6.9% on average in the lower grade zones.
Results are derived from samples from the Crawford Nickel-Cobalt Sulphide Project, with a higher grade core of approximately 263 million tonnes of Measured and Indicated resources of 0.31% nickel, 0.013% cobalt and 0.38 g/t Pd + Pt within a total Measured and Indicated resource of approximately 600 million tonnes at 0,25% nickel and 0.013% cobalt and an additional higher grade inferred resource of approximately 66 million tonnes containing 0.29% nickel and 0.013% cobalt within a total inferred resource of approximately 310 million tonnes containing 0.23% nickel and 0.013% cobalt.
News: Canada Nickel Company Receives Positive Initial Mineralogy Results
Interview: Canada Nickel Company: Recently IPO with Huge Nickel Resource in Canada
Skeena Resources successfully completes financing
Skeena Resources recently announced a fully subscribed, non-brokered private placement offering of approximately 17,316,000 flow-through shares at CA$1.155 per share for total gross proceeds of CA$20 million.
The financing was thus provided just before the financing window was closed.
News: Skeena Announces C$20M Private Placement
Interview: Skeena Resources: Buying Option from Barrick Gold Until End of 2020
Maple Gold Mines encounters another highly mineralized zone
Maple Gold Mines recently announced an update and new exploration results for Zone 531. A third mineralized zone was intersected intersecting 5.96 g/t Au over 3.5 metres, including 11.35 g/t Au over 1.7 metres.
News: Maple Gold drills additional higher-grade mineralisation and defines open IP anomaly at the 531 Zone
Interview: Maple Gold Mines: Drilling New High Grade Extension "531 Zone"
IsoEnergy encounters over 20% U3O8
IsoEnergy was recently able to report excellent drilling results once again. Drill hole LE20-40 contained an average of 20.5% U3O8 over 4 meters! The last six holes in the Hurricane Zone all intersected thick intervals of strong uranium mineralization, including two subintervals that were high enough to be out of scale (>65,000CPS on the handheld RS-125 spectrometer).
Results from the last six holes in the Hurricane Zone are pending, so further top results are expected.
News: IsoEnergy Intersects 4.0m of 20.5% U3O8 in Drill Hole LE20-40 and Drills More Off-Scale Uranium Mineralization
Interview: IsoEnergy: New High Grade Drill Results from Larocque East Uranium Project
Auryn Resources continues to operate even in times of crisis
Auryn Resources recently provided an update in response to concerns over COVID-19 and its potential impact on exploration efforts in Peru and Canada. Auryn recalled all local personnel before the Peruvian government imposed a temporary two-week border blockade. The country has suspended all work in public facilities for 15 days, which is why the company's staff in Lima will work from home for this period. It is expected that such interruptions will lead to modest delays in Auryn's operations. In the coming weeks, Auryn expects to release its first PEA on Homestake Ridge, the Company's high-grade gold-silver project in British Columbia's Golden Triangle. In addition, Auryn will release revised targets for the Committee Bay project in Nunavut based on a breakthrough in geophysical targeting where conductivity data distinguishes between low grade and high-grade gold reactions.
News: Auryn Provides Corporate Update and Addresses COVID-19 Impacts
Interview: Auryn Resources: Getting Environmental Permits to Start Drill Campaign on Sombrero Soon
Endeavour Silver masters corona epidemic and works on Terronera study
Endeavour Silver recently announced that it has implemented plans to minimize the risks associated with the COVID 19 virus for both employees and the company. To date, no known or suspected cases of COVID-19 infection have been reported at any of the Company's facilities in Canada, Mexico and Chile. Endeavour follows government health protocols at each site and is closely monitoring the situation with local health authorities. The company has published health tips to inform employees about the symptoms of COVID-19, best practices to avoid infection with the virus and procedures to follow when symptoms occur. The Company also announces that it has received an economic summary of the updated Pre-Feasibility Study (the "PFS") for the Terronera Silver-Gold Mine Project in Jalisco. Compared to the previous PFS, significant changes have been made to the operating plan and capital and operating costs, so that while the new PFS remains positive, it has a fewer solid economics compared to the previous PFS.
News: Endeavour Silver Implements Plans to Minimize COVID-19 Risks; Initiates Internal Review of Terronera Prefeasibility Study
Interview: Endeavour Silver: Turn-around of Production and Financial Performance in 2020
EnWave works on licensing for US cannabis market
EnWave announced a few days ago that its Board of Directors has approved a plan to license its proprietary Radiant Energy Vacuum ("REVTM") to the US cannabis market through a wholly owned US subsidiary. As a supplier of equipment that embodies years of research and development, patented innovations, know-how and, in particular, a recently granted process patent specifically for drying and decontaminating cannabis, the US market represents a significant opportunity for EnWave. In recent months, the Company has conducted extensive legal and regulatory due diligence in conjunction with its US and Canadian attorneys and the TSX Venture Exchange. This included the evaluation of cross-border matters and compliance with U.S. federal law, which concluded that EnWave can continue its expansion strategy in the U.S. market in accordance with applicable U.S. federal laws.
This would be another giant step for EnWave into the important cannabis market.
News: EnWave Announces Plans to License REV™ Technology into the U.S. Cannabis Market
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: Appia Energy + Energy Fuels + Fiore Gold + Gatling Resources + GoldMining + MAG Silver + Osisko Gold Royalties + Plateau Energy Metals + RosCan Gold + Tempus Resources + Triumph Gold + Uranium Energy + ValOre Metals + Wealth Minerals + Sibanye-Stillwater + Caledonia Mining + Treasury Metals + Aurania Resources + Copper Mountain Mining + Canada Nickel + Skeena Resources + Maple Gold Mines + Iso Energy + Auryn Resources + Endeavour Silver + EnWave.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Fiore Gold + GoldMining + MAG Silver + Osisko Gold Royalties + Uranium Energy + Sibanye-Stillwater + Caledonia Mining + Treasury Metals + Aurania Resources + Copper Mountain Mining + Canada Nickel + Skeena Resources + Maple Gold Mines + Iso Energy + Auryn Resources + Endeavour Silver + EnWave.
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