Top-News of the week:
Inca One Gold achieves debt restructuring und debt reduction
A few days ago Inca One Gold announced the successful restructuring and reduction of its debts. According to this the company has been able to reach agreements for around 10 million US$ with a majority of its creditors, whereby
- Around 50% of the amount will be converted into shares
- Around 30% of the amount will be converted into new convertible debentures and
- Around 20% of the amount will be converted into contingent debts payable on certain performance metrics.
An amount of 500,000 US$, which couldn’t be re-negotiated will be residual. It will be repaid in normal course over the following two months, or such later date as mutually agreed by the parties. In summation, Inca One Gold will reduce its debts drastically by nearly 50%. Furthermore the company is currently working on another 3.0 million US$ convertible debenture offering.
This whole bunch of agreements provides Inca One Gold some more breathing space from both a financial and a temporally perspective, to bring Chala One back to a 100tpd production and to step up into the next phase of an expansion of the plant. An important milestone for Inca One which still is on its way to become Peru’s leading toll-miller.
News: Inca One Debt Restructuring
Market Watch:
No agreement in Doha, oil prices only short-time shocked
The OPEC meeting in Doha a few days ago has been eagerly anticipated, but showed only one thing: an enormous disunity of the world’s largest syndicate, which may lead to a loss in its current market power. While Iran didn’t send any representative, Saudi-Arabia didn’t want to hear anything about a limitation of oil producing rates. Quite contrary to the opinion of most of the participants, Saudi-Arabia said, that it wouldn’t care whether there will be a crude price of 70 or 30 US$. An open challenge against the hardest opponent Iran, which comes out of the own rows (the OPEC). Despite this failure, the crude prices were flagging only for a short time and even gained a plus until the end of the last week. However the current oil prices seem to be too low for smaller producing countries like Venezuela and Ecuador, but also for Non-OPEC-countries like Russia and the US. Therefore one can assume that especially Russia will intervene once again in a short matter of time.
Silver still on the run
The silver price made an enormous jump over the last few days, especially last Tuesday. At Wednesday the silver metal tried to move upon the mark of 17 US$. Therefore we were right with our assumption that silver will start a rally against gold. At the end of last week the gold-silver-ratio stood at 73:1! In tune with that fact, the silver stocks also outperformed. Especially Endeavour Silver, which gained around 220% from its last low of January, the 21st.
Interview: Endeavour Silver INVEST 2016
Company News:
Brazil Resources increases Whistler resource base to above 7 million ounces!
Brazil Resources announced a new resource estimate for its Whistler project in Alaska in the last week. More precisely it is a resource estimate for the Island Mountain property. There, the company now owns an indicated resource of 0.444 Moz gold equivalent (25.75 Mt grading 0.53 g/t gold, 1.16 g/t silver, 0.06 % copper or 0.54 g/t gold equivalent) and an inferred resource of 1.133 Moz gold equivalent (69.23 Mt grading 0.51 g/t gold, 1.07 g/t silver, 0.06 % copper or 0.51 g/t gold equivalent), both at a 0.3 g/t gold equivalent cut-off. The Island Mountain Resource estimate is in addition to the previously reported resource estimate for the Whistler deposit. The combined resource for the Whistler and Island Mountain deposits is 2.694 Moz gold equivalent (104.95 Mt grading 0.51 g/t gold, 1.77 g/t silver, 0.14 % copper or 0.80 g/t gold equivalent) in the indicated category and 4.483 Moz gold equivalent (215.03 Mt grading 0.44 g/t gold, 1.53 g/t silver, 0.12 % copper or 0.66 g/t gold equivalent) in the inferred category, both at a 0.3 g/t gold equivalent cut-off. More than 7 million ounces of gold within a mining-friendly jurisdiction is a real ballpark figure which may whet some appetites.
News: Brazil Resources new resource estimate
Klondex Mines produces more than 30,000 ounces of gold equivalent in Q1/2016 and reports important development advancements from Rice Lake
A few days ago Klondex Mines published some production numbers for the first quarter of 2016. According to that, the company produced a total of 30,142 ounces of gold equivalent from its two mines Midas and Fire Creek in the first three months if the current year. This corresponded with the company’s expectations. Correspondingly, the Company reiterates its 2016 production guidance of a total of approximately 145,000 to 150,000 gold equivalent ounces, which is split approximately 40%-45% in the first half of 2016 and 55%-60% in the second half of 2016.
A much higher gold production may be achieved by the commissioning of Rice Lake. As the company recently announced, the project development activities continue to advance and are on schedule and within budget. The following advancements have been achieved:
- The notice to recommence mining and milling operations was approved by the Director of Manitoba Mineral Resources in March, 2016.
- Shaft Project Complete -- 100% of the guides have been replaced.
- Track Repair Ongoing -- Approximately 1,500 of track has been ditched and repaired at the 2600 level; project is ~55% complete.
- Initiated testing of narrow vein long hole design to reduce dilution.
- New underground shop and new gear storage cut-outs are 80% complete.
- Initial metallurgical testing on existing tailings indicate the tailings can be processed economically through the existing mill flow sheet.
Furthermore the company announced some high-grade drill results of 19.6 g/t over 5.0 m, 18.4 g/t over 5.3 m and, as the absolute highlight: 64.7 g/t over 4.3 m (all gold-grades!).
Rice Lake seems to become a real company maker for Klondex Mines! As far as the project will get online, the Klondex shares shall see a reevaluation.
News: Klondex Q1-2016
Fission Uranium once again with outstanding drill results!
Fission Uranium once more announced some outstanding drill results from its Patterson Lake South Uranium Project. The assay results included hole PLS16-460 on zone R1620E (line 1500E) with 5.0m @ 10.95% U3O8 and 3.0m @ 7.56% U3O8 within a larger interval of 40.0m @ 2.64% U3O8. These most recent results showed that it's still very early days at Patterson Lake South. Fission's exploration drilling has delivered high-grade, near-surface assays 2.34km apart on a 2.58km mineralized trend that is already the largest footprint in the Athabasca Basin region. Therewith Fission Uranium may have the by far the top-class uranium project in the western part of the Athabasca Basin region!
Deutsche Rohstoffnacht – You missed a lot!
A few days ago the Invest Stuttgart took place. This year it had the charm of some kind of a vanity fair with more and more louder growing carnival barkers who wanted to keep private shareholders into the ECB and FED “subsidized” standard indices. Best via trading (where we are questioning which private investor will ever generate earnings, where the big banks have computer- and newly roboter-supported programs which are ten times faster with execution)! Besides this SRC’s commodity branch outstandingly emerged! The real highlight of this fair took place at Friday night: the Deutsche Rohstoffnacht (German commodity night)! The high-quality presentations from Hannes Huster, Torsten Dennin and Ronald Stöferle clearly showed that there has been built out a bottom for precious metals. One of the most interesting questions was how gold producers could use the confession of Deutsche Bank regarding the manipulation of the gold price to bring Deutsche Bank and other financial institutes to court. Furthermore the representatives of Endeavour Silver, Treasury Metals and Comstock Mining had some good performance. A successful event which should be returned, especially on the high number of visitors.
Interviews:
German Resource Night 2016: http://www.rohstoffnacht-tv.de/
Treasury Metals: Greg Ferron Interview INVEST 2016
Comstock Mining: Corrado de Gasperis INVEST 2016
Endeavour Silver: Endeavour Silver INVEST 2016
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