Top-News of the week:
Endeavour Silver acquires top-class Exploration Properties from Silver Standard
A couple of days ago, Endeavour Silver announced that it has entered into a definitive agreement with Silver Standard Resources Inc. to acquire a 100% interest in Silver Standard’s Parral properties, located in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico. Pursuant to the Agreement, Endeavour will pay US$6 million in Endeavour common shares. In addition, Endeavour has committed to spend US$2 million on exploration on two of the properties (the San Patricio and La Palmilla properties) over the two-year period following the closing of the transaction. Silver Standard will also retain a 1% net smelter returns royalty on production from the San Patricio and La Palmilla properties.
The project owns historic resources of 32.1 million oz silver contained in 4.0 million tons grading 248.5 grams per tonne. Furthermore, there is excellent potential to discover new high-grade resources in under-explored areas along strike of Veta Colorada, San Patricio, Palmilla and numerous other veins on the properties. Drill hole SPD-03 at San Patricio intersected 638 gpt silver over one m. The company also sees positive synergies with Endeavour’s existing Parral project, which contains indicated resources of 1.63 million t grading 49 gpt silver, 0.90 gpt gold, 2.87% lead and 2.86% zinc, plus inferred resources of 1.30 million t grading 63 gpt silver, 0.88 gpt gold, 2.55% lead and 2.28% zinc. The management believes that near-term production would be possible by verifying the historic resources and gaining access to one of three nearby 500 tons-per-day plants.
A top chance for Endeavour Silver, especially for the fact that there are a number of well-known high-grade veins and the possibility for open-pit mining in some areas!
News: EDR acquires Exploration properties from Silver Standard
Market Watch:
Lithium: production will increase sharply
In 2015 the global lithium production (for standardization reasons LCE = “lithium carbonate equivalent” a universal conversion factor for all above mentioned lithium compounds) was approximately 175,000 tonnes LCE. According to projections, this number will increase to 360,000 tonnes LCE by 2020 and over 650,000 tonnes LCE by 2025. The latter is not based on concrete mine expansions or new mines and we can assume that the production in 2025 will be between 360,000 and 650,000 tonnes.
Video: Fundsmanager Tobias Tretter about Lithium
The price is always crucial but relatively negligible for the accumulator production!
In the end the price is only important for the economic extraction of the existing lithium deposits. In the past months the price has risen sharply. In mid 2015 the price for a tonne lithium carbonate was around US$6,000 and has climbed to the presently over US$20,000 and surely just a snap shot. We can assume that the price will settle, in the middle to long term, between US$10,000 and 12,000 per tonne lithium carbonate. Either way, this is a lucrative business for the producer because the mining costs at current projects are US$3,000 to 6,500 per tonne. From a quantitative point lithium accounts for a significant part of a battery, but accounts for only roughly 4-5 % of the costs of a battery. Hence the lithium price is insignificant for the production of lithium ion batteries and could be kept at an economic level for the lithium producer.
More cutting-edge and professionally well-founded information to the lithium sector and a couple of interesting lithium players can be found at SRC’s most recent lithium report.
Company News:
Altona Mining identifies third new Roseby South soil anomaly
A few days ago, Altona Mining announced, that it has identified a third, high-tenor copper-in-soil anomaly, the largest identified so far at its 100% owned Roseby South Project near Mt Isa in Queensland. The new Reaper anomaly is the largest of the targets defined so far and is located 6.5 kilometers north of the Hobby anomaly. At Reaper, multiple copper-in-soil anomalies greater than 1,000ppm (0.1% copper) have been defined within broader anomalism over a strike extent of 2.5 kilometers. Peak values range up to 5,426ppm (0.54%) copper. The anomalism is of similar size and tenor to that at the Cloncurry Project's Little Eva deposit (546,000 tons contained copper and 295,000 ounces of gold).
Two very small old workings are located within the southern part of the anomaly. Overall the copper mineralization has a subtle surface expression and is finely disseminated within the rocks. Outcrop rock chip samples in the south of the target returned up to 0.8% copper and up to 1.54g/t gold. No drilling has been undertaken at the prospect to date. A RC drilling program at Reaper, Hobby and Harvest will commence in 3-4 weeks.
News: Altona with 3 new targets!
Inca One Gold dramatically extends its private placement
Inca One Gold recently announced, that the company has increased its current non-brokered private placement of units at CA$0.25 per share, from 16 million units to 21 million Units to raise gross proceeds of up to CA$5.25 million from CA$4.0 million.
This shows, that there still is a massive interest in the toll-milling business and especially in Inca One Gold. Now, as most of the debt has been cancelled, a breath of fresh air comes back into the company and the stock.
News: IO with +5 Mio$ new financing - Move it!
Klondex Mines reaches Positive Production Decision at True North and Provides Updated Mineral Reserve and Mineral Resource
A couple of days ago, Klondex Mines announced a positive production decision at its underground True North Gold Mine in Manitoba, Canada. True North will become Klondex Mines‘ third operational mine. The Company estimates an annual mill throughput of 600 – 1,000 tpd, an initial annual production of 45,000 – 65,000 Au oz and average All-in Sustaining Costs of C$950 - C$1,050 per Au oz. The annual capital expenditures will lie at about C$15 – C$25 million.
Additionally, the Company provided an updated Mineral Reserve and Mineral Resource estimate for True North. According to this, True North‘s Proven and Probable Mineral Reserve is 85.5k Au oz at a grade of 0.24 Au opt contained within 352k tons. The Measured and Indicated Mineral Resource is 294k Au oz at a grade of 0.21 Au opt contained within 1,386k tons. The current resource estimate includes only 15 of the 50 holes, drilled in the 2016 program. The next Mineral Resource update is expected in Q1 2017.
Another important milestone for Klondex! With a third gold mine the company’s operating numbers should become even better and the enterprise value should raise, too!
News: KDX production decision for True North
Video: KDX company presentation
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