Top-News of the week:
Brazil Resources triplicates financing!
Last week, Brazil Resources announced that, further to its press releases dated November 14, 2016, it has completed the third and final tranche of its previously announced private placement for additional gross proceeds of CA$1,636,625, issuing 654,650 units at a price of CA$2.50 per Unit. The Company received total gross proceeds of CA$12,393,145 and issued an aggregate of 4,957,258 Units under all tranches of the Private Placement. Therewith, the company was able to triplicate its planned and firstly announced financing of CA$4 million! With more than $21.0 million of cash on hand, the company has a strong balance sheet and is positioned well to further execute its growth and acquisition strategy.
News: Brazil 12-4Mio.$ PP
Market Watch:
The Trump factor with contrary effect: Gold stocks facing a complete sell-off?
The Trump factor, meaning the uncertainty factor, which prevailed before the US presidential elections, now shows a contrary effect. Before the election, many market members had the opinion, that Trump would lead to total economic and financial disaster. Now this uncertainty seems to be replaced by a wide-spread risk appetite. Especially Trump’s proclamation to gain a gigantic infrastructure program by just printing money, led to higher courses at the stock markets and catapulted the greenback to unexpected highs. More federal programs mean more inflation what should lead to higher interest rates. This could mean a second interest rate raising in December.
Less uncertainty and higher interest rates a traditionally poison for gold, as it loses its significance as a safe harbor and as it doesn’t pay interest. On the other hand, gold provides a natural protection against inflation.
From a chart technical perspective, the gold spot price is situating in a critical phase. Does the price drop below US$1,200 per ounce, this could lead to connecting sales and would press the price even more. Another, strong supporting line can be found at around US$1,180. So, will we see a total sell-off at the gold stocks?
Meanwhile, nearly everything seems to be possible. The only thing that’s sure, is that Trump doesn’t care how many debts the USA will make under his regency. And also if they will ever be able to pay everything back. The main thing is, that the money press goes swimmingly. So, in the short- to mid-term, things seem to become uncertain for gold & co.
Company News:
MAG Silver announces important progress from its Juanicipio mine project
A couple of days ago, MAG Silver the results for the third quarter of 2016, including a progress report of the mine-construction on Juanicipio and of the current financial situation.
The 2016 THIRD QUARTER HIGHLIGHTS were as follows:
- The 2015-2016 drilling to further delineate the extent of the new Valdecañas Deep Zone was completed, and assays released during the quarter. Overall results show vein widths ranging from 5 to 29 meters with the highest zinc and copper grades seen to date. The new results show that mineralization in the Deep Zone occurs in both the East and West Valdecañas Veins and extends mineralization roughly 250 meters beneath the existing resource over a combined strike length of over 800 meters. The Deep Zone mineralization remains open to the property boundary in both directions: 300 meters to the west and 700 meters to the east.
- A supplemental $1.2 million budget (MAG’s 44% share is $528 thousand) for follow up drilling of the latest exploration results at Valdecañas was approved by the Juanicipio Technical Committee in late April 2016, and drilling is currently in process with 6 drill rigs on the property (5 drilling from surface and 1 drilling from within the underground ramp.) All assays pending.
- Advancement of the underground ramp decline at the Juanicipio Property continues to progress at rates exceeding those envisioned in the Juanicipio Technical Report.
- Various studies are ongoing, including baseline environmental analysis, metallurgical and geotechnical studies, detailed engineering for process plant and an assessment of the potential impact that recent exploration success at depth may have on plant sizing and ore handling alternatives.
- A supplemental $3.0 million budget (MAG’s 44% share is $1.3 million) was approved in August 2016 for additional underground development related to ore handling infrastructure.
- The Company remains well funded, with cash and term deposits totaling $140.4 million. The Company believes that it is fully funded for its 44% share of Juanicipio development costs, as envisioned in the 2014 Juanicipio Technical Report.
- As at September 30, 2016, the Company had working capital of $140.9 million (September 30, 2015: $77.7 million) including cash and term deposits of $140.4 million (September 30, 2015: $77.4 million). The Company currently has no debt and has sufficient working capital to maintain all of its properties and currently planned programs for a period in excess of the next year.
Pershing Gold Extends High-Grade Mineralization – New listing at the TSX!
Last week, Pershing Gold announced results from its phase 1 drill program 2016.
The best intercepts included:
- RC16-470: 24.4 ft (7.44 m), 714 gpt, 20.85 oz/ton Ag, including: 4.4 ft (1.34 m), 1,050 gpt, 30.66 oz/ton Ag, including: 8 ft (2.44 m), 1,576 gpt, 46.01 oz/ton Ag
- RC16-475: 32.5 ft (12.19 m), 0.801 gpt, 0.075 oz/ton Au, including: 3.6 ft (1.1 m), 10.2 gpt, 0.298 oz/ton Au
- RC16-478: 3.4 ft (1.03 m), 949 gpt, 27.21 oz/ton Ag
Most of the Phase 1 drilling is designed to extend the western boundary of economic mineralization at Relief Canyon. Recent drilling confirms that significant portions of the western margin of the mineral zones remain open to the west. Several of these holes were drilled to test and confirm the metallurgical characteristics of higher grade zones currently excluded from the leachable resource in the 2016 estimate. Test work to date suggests that some of the higher-grade gold mineralization may be economically recovered by heap leaching, and may be included in future resource estimates.
Since November, the 17th 2016, the Pershing shares are also listed at the TSX (symbol: PGLC).
News 1: Pershing Gold TSX trading
News 2: Pershing Top drills!
A couple of days ago, Treasury Metals announced initial results from the first phase of the ongoing infill drilling program at its 100% owned Goliath Gold Project located in Northwestern Ontario. Highlights from the initial Phase I drill program include Hole TL16-410 that intersected a well mineralized section of the central Main Zone shoot containing significant concentrations of visible gold and returning 11.55 g/t Au over a sample length of 6.0 meters (m) as tabulated below. This hole is located 40 m east of the new hole TL16-406 that returned 5.74 g/t Au over a sample length of 4.9 m. Other highlights include drill hole TL16-405 that contained visible gold and returned 7.99 g/t Au and 4.48 g/t Ag over a sample length of 7.25 m (from 580.75 to 588.0 m), including 14.61 g/t Au and 6.21 g/t Ag over 3.79 m (580.75 to 584.54 m), in the B1 zone in an area of the deposit not previously tested providing new resource expansion opportunities in that portion of the deposit. Treasury has extended the drilling program from the initially planned 5,000 meters to target and convert additional deep underground “Inferred” resources. Further results will be released as the drilling program continues and new assays become available.
News: Treasury Top Gold results
A few days ago, TerraX Minerals announced assay results from a further 8 holes (2,415 m) from the summer phase of a 27,000-meter drill program at multiple targets on the Yellowknife City Gold Project, immediately north of Yellowknife in the Northwest Territories.
The best results were:
- 7.40 m @ 10.17 g/t Au including 1.00 m @ 68.50 g/t Au in the main zone of hole TWL16-026
- 8.00 m @ 6.45 g/t Au including 3.64 m @ 11.60 g/t Au in the main zone of hole TWL16-029, and 4.34 m @ 2.22 g/t Au in the footwall zone
- 5.00 m @ 2.04 g/t Au including 2.00 m @ 4.78 g/t Au in the main zone hole TWL16-027
- 9.69 m @ 1.24 g/t Au including 1.62 m @ 5.84 g/t Au in hole TWL16-023
- 7.00 m @ 1.02 g/t Au in the hanging wall zone of TWL16-030
These drill results show that the structures hosting the high-grade gold zones within the Mispickel system have significant continuity at depth and along strike. In addition, the higher-grade intersections are displaying the classic lode gold geometry common to Archean gold systems in Canada. The persistence of the mineralizing structures with pervasive gold mineralization throughout the holes continues to indicate a large mineralizing system.
News: TerraX top 8 drill holes!
Last week, Klondex Mines provided an update on surface and underground drilling at its Fire Creek Mine, located in northern Nevada, USA.
Fire Creek Mine Surface Drilling Highlights were:
- FCC-0020: 0.53 opt Au over 10.0 ft, or 18.01 g/t over 3.0 m – West Zone
- FCC-0033: 0.38 opt Au over 9.2 ft, or 13.15 g/t over 2.8 m – Northwest Expansion
- and 0.65 opt Au over 1.5 ft, or 22.40 g/t over 0.5 m – Northwest Expansion
- FCC-0042: 0.39 opt Au over 1.3 ft, or 13.30 g/t over 0.4 m – North Expansion
- FCC-0053: 0.62 opt Au over 0.8 ft, or 21.30 g/t over 0.2 m – Northwest Expansion
Fire Creek Mine Underground Drilling Highlights were:
- FCU-0649: 12.11 opt Au over 5.1 ft, or 415.33 g/t over 1.6 m – Joyce Vein
- FCU-0656: 6.71 opt Au over 5.0 ft, or 230.03 g/t over 1.5 m – Hui Wu Vein
- FCU-0661: 5.82 opt Au over 1.0 ft, or 199.52 g/t over 0.3 m – Vein 18
- FCU-0638: 3.98 opt Au over 6.8 ft, or 136.48 g/t over 2.1 m – Vein 5
- FCU-0668: 3.49 opt Au over 2.9 ft, or 119.51 g/t over 0.9 m – Vein 13
Hole FCC-0020 targeted a 6,500 ft (1,980 m) geophysical anomaly approximately 3,960 ft (1,207 m) west of the current mine workings. This intercept is approximately 400 ft (1,207 m) below surface and suggests a new mineralized structure that is open in all directions.
The Fire Creek District contains a number of similar geophysical anomalies that have not yet been tested, further suggesting additional growth potential of the Fire Creek land position. A follow-up drill program is in progress.
About one week ago, BMO raised its course aim for the Klondex Mines stock to CA$8.25.
News: Klondex New Discovery at Fire Creek
Research: BMO: Klondex target 8-25$!
In the last week, Timmins Gold announced that it has entered into an agreement with a syndicate of underwriters, led by National Bank Financial Inc. and RBC Capital Markets pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 36,400,000 units of the Company at a price of C$0.55 per Unit for gross proceeds to the Company of approximately C$20 million.
The net proceeds of the Offering will be used for exploration, preconstruction activities at the Ana Paula project, working capital and general corporate purposes.
This announcement came a little bit surprisingly. After the nearly total collapse a couple of months ago, the company seems to successfully completed the turnaround.
News: Timmins with 20 Mio$ bought dealA couple of days ago, Sierra Metals reported revenue of US$40.8 million and adjusted EBITDA of US$16.3 million on throughput of 536,553 tons and metal production of 3.2 million silver equivalent ounces or 21.3 million copper equivalent pounds during Q3 2016.
Sierra Metals had an exceptional third quarter and benefited from the continued rise in metal prices. The Company saw significant improvements in revenue and adjusted EBITDA combined with lower AISC costs in the third quarter. This was largely attributable to the completion of key aspects of the operational improvements program and a return to normalized operations at the Yauricocha Mine in Peru, which had record throughput this quarter. The Company achieved excellent year over year improvement in the third quarter with revenue up 43%, adjusted EBITDA up 708% and the ASIC per silver equivalent payable ounce lower by 19% to US$11.80 at the Yauricocha Mine. Also, the AISC per copper payable equivalent pound was lower by 42% to US$1.90 at the Bolivar Mine in Mexico.
News: Sierra Metals Q3-2016
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