Top-News of the Week:
Uranium Energy acquires Reno Creek and expands its resource base by 70%!
We already announced it via special newsletter this week: Uranium Energy (NYSE: UEC) acquires Reno Creek Holdings Inc. and thereby 100% of the fully-licensed Reno Creek ISR uranium project in Wyoming!
Once more the facts:
- A Source and By Product Materials License for Reno Creek was issued in February 2017 from the U.S Nuclear Regulatory Commission, supported by a Final Environmental Impact Statement and Record of Decision. This will allow Uranium Energy to construct ISR well-fields and a central plant immediately and the production of up to 2 million lbs. U3O8 per year.
- Reno Creek hosts a huge NI 43-101 Measured and Indicated resource of 27.47 million tons grading 0.041% U3O8 yielding 21.98 million pounds U3O8 plus an Inferred resource of additional 930,000 lbs.
- A Pre-Feasibility Study on Reno Creek completed in 2014 demonstrated strong project economics with low capital and operating costs consistent with ISR projects in Wyoming.
- Uranium Energy has to transfer only 14.0 million shares of the Company (worth about US$17 million) to Reno Creek’s major shareholder, the Pacific Road Resources Funds for its 97.27% ownership plus 11 million warrants and a 0.5% net profits interest royalty, capped at US$2.5 million. The warrants have a relatively high exercise price of 2.30 US$.
Therewith, Uranium Energy will expand its resource base by approximately 70%! Altogether for less than US$20 under the aspect, that all former project owners made cumulative expenditures to date of approximately US$60 million!
In addition to that, Uranium Energy seems to be included into the Russell 2000 on May, the 12 th 2017. This will significantly increase the institutional ownership and millions of shares would be traded, as many funds, ETFs and institutions are based on the Russell 2000 Index and have to buy. In addition to that, we should see a downsizing in short positions, which stood at about 10 million recently.
All this was also recognized by leading analysts like Marin Katusa, who has a target price for the stock in 60 days in the USD$1.75 to US$2.00 per share range.
One step further are the analysts from Eight Capital, which see a 12-month-course-aim of US$3.00. Heiko Ihle from Rodman & Renshaw has a further course aim of US$4.20!
Uranium Energy Corp Strengthens Leading ISR Portfolio with Acquisition of Fully Licensed Reno Creek Project
Eight Capital: Acquisition of Fully Permitted Reno Creek ISR Project
Rodman & Renshaw: Rodman & Renshaw Research - Kaufempfehlung für UEC
Interview with CEO Amir Adnani: Uranium Energy: Well Cashed Up To Develop Further ISR Deposits In The US
Interview with Executive Vice President Scott Melbye on the current situation at the uranium sector:
Uranium Energy: "Uranium Supply Demand Imbalance Will Push Prices in 2017"
Market Watch:
Reconstitution of Russell Indexes: Energy Fuels is also a candidate for the Russell 3000 Index!
Besides Uranium Energy, Energy Fuels has also a market capitalization which should be enough to make it into the Russell 3000 index, which will reconstitute on May, the 12th. If they should make it in, that will significantly increase the institutional ownership and millions of shares would be traded, as many funds, ETFs and institutions are based on the Russell 3000 Index and have to buy.
Energy Fuels is the second largest uranium producer in the US. The company produced 1 million pound of U3O8 in 2016 and sold 1.15 million pounds to utilities. But, the company’s production capacity is ten times higher than that. This means, that Energy Fuels will be able to produce 11.5 million pounds U3O8 per year, if uranium prices will start to move higher. Therewith, the company has an enormous leverage to the uranium spot-price!
Company News:
Sierra Metals reports top-class drill-results and good quarterly numbers from Yauricocha!
More top-class news from Sierra Metals. Only one week ago, the company announced record production rates in the first quarter and resource estimates from two of their mines and now, the company publishes additional top-class news!
Top-News No. 1: Sierra Metals announced from Yauiricocha the discovery of a new high-grade oxides zone, referred to as the Esperanza North zone, which is located between the Esperanza zone and Cachi-Cachi Mine. The Company also announced drilling results which demonstrate the extension of the high-grade sulfide zone, referred to as the Cuye-Mascota zone which was discovered in November 2016. This zone is located 200 meters north of the central mine area, along strike from current mining activities. The new discovery and extension come as part of an ongoing brownfield drilling program that is testing priority targets at the Yauricocha Mine.
The best drill results were:
- Hole ESP-02: 0.5 meters of 2,050.0g/t Ag, 30% Pb; and 3.0 meters of 465.27g/t Ag, 1.99% Zn, 16.29% Pb, 5.84g/t Au and
- Hole ESP-03: 2.4 meters of 985.21g/t Ag, 30% Pb, 2.40g/t Au.
- Revenues of US$38.5 million vs US$12.5 million in Q1 2016
- Adjusted EBITDA of US$ 20.5 million vs US$0.9 million in Q1 2016
- Total tons processed of 251,180 vs 207,580 in Q1 2016
- Net production revenue per ton of ore milled increased by 119% to US$157.93
- All in sustaining cost (“ASIC”) per silver equivalent payable ounce lower by 30% to US$10.60
- Silver equivalent production of 2.2 million ounces vs 1.4 million ounces in Q1 2016
- Copper equivalent production of 18.8 million pounds vs 12.2 million pounds in Q1 2016
- $35.4 million of cash and cash equivalents as at March 31, 2017
- $26.0 million of working capital as at March 31, 2017
Endeavour Silver announces improved financial results for the first quarter 2017
A couple of days ago, Endeavour Silver released its financial results for the period ended March 31, 2017.
The Company’s financial performance in the First Quarter, 2017 improved compared to the First Quarter, 2016. Revenue and cost of sales were down due to lower production but earnings were up as a result of higher precious metal prices, foreign exchange gains and tax recoveries.
Most important numbers were (compared to the first quarter of 2016) (all amounts in US$):
- Net earnings increased 230% to $6.0 million ($0.05 per share) compared to $1.8 million ($0.02 per share)
- EBITDA increased 4% to $9.0 million
- Cash flow from operations before working capital changes increased 19% to $8.9 million
- Mine operating cash flow before taxes increased 4% to $12.0 million
- Revenue decreased 12% to $36.4 million
- Realized silver price increased 17% to $17.79 per ounce (oz) sold (2% above average spot price)
- Realized gold price increased 5% to $1,280 per oz sold (5% above average spot price)
- Cash costs rose 2% to $7.81 per oz silver payable (net of gold credits)
- All-in sustaining costs rose 64% to $18.24 per oz silver payable (net of gold credits)
- Cash and cash equivalents dipped 2.5% to $70.5 million
- Working capital was flat at $81.7 million compared to $81.6 million at year end
Altogether significantly higher first quarter earnings for 2017, which can be celebrated as a success, especially in light of the lower production compared to Q1, 2016 and the increased investments on exploration and development.
New in focus: Ascendant Resources
Ascendant Resources Inc. is a Canadian mining company focused on operating its El Mochito mine in Honduras while continuing to evaluate producing and advanced development-stage mineral resource opportunities, principally in North, South and Central America. In December 2016, the Company completed its acquisition of 100% of American Pacific Honduras SA de CV and its flagship asset, the producing El Mochito Mine, from Nyrstar NV and its affiliates. The El Mochito mine, located in north-western Honduras, approximately 88 kilometers south-west of San Pedro Sula and 220 kilometers north-west of the capital city, Tegucigalpa, has been in operation since 1948. The underground operation takes advantage of selective and bulk underground mining methods to mine multiple flat lying manto deposits and high-grade vertical chimneys, producing zinc and lead concentrates with significant silver credits. At the closing of the acquisition, the Company was well financed to execute its plans to improve mine optimization and development as well as restart exploration activities.
Ascendant Resources’ CEO Chris Buncic has recently been awarded the 2017 Canadian Institute of Mining Metallurgy and Petroleum (CIM) - Bedford Canadian Young Mining Leaders Award. Mr. Buncic received this prestigious award during the CIM Awards Gala which took place on May 1, 2017 during the CIM Convention at the Palais des congrès in Montreal. The CIM–Bedford Canadian Young Mining Leaders Awards recognizes workers 39 years of age or under for exceptional achievement, as well as their potential for future leadership in various sectors of mining, including: corporate performance, operations, finance, technical services and innovation, marketing and trading, as well as services and support functions.
News: Mr. Chris Buncic, Ascendant Resources President and CEO Awarded Canadian Institute of Mining Metallurgy and Petroleum - Bedford Canadian Young Mining Leaders Award
Presentation: Ascendant company presentationSensational news from Klondex Mines! A couple of days ago, the company provided an update on project development activities and underground drilling at its Hollister Mine.
Thereby, the company intersected the following:
- G17-041: 12.96 opt AuEq over 1.4 ft., or 444.3 g/t over 0.4 m
- G17-044: 4.18 opt AuEq over 4.0 ft., or 143.3 g/t over 1.2 m
- G16-021: 2.57 opt AuEq over 1.6 ft., or 88.1 g/t over 0.5 m
- G16-018: 1.35 opt AuEq over 4.3 ft., or 46.3 g/t over 1.3 m
- G16-010: 0.75 opt AuEq over 4.2 ft., or 25.7 g/t over 1.3 m
Klondex reports positive quarterly numbers!
Furthermore, the company announced its operational and financial results for the first quarter of 2017.
Highlights were:
- Consolidated performance - Klondex mined a total of 57,633 gold equivalent ounces ("GEOs"), in line with management’s expectations, and produced a total of 34,454 GEOs. Mined ounces are calculated using tons hauled to surface multiplied by the assays from production sampling.
- Nevada performance - In Nevada, ore from Fire Creek was stockpiled due to heavy snowfall limiting the ability to transport ore to the Midas mill. At Fire Creek and Midas, the Company mined 71,883 ore tons in the first quarter at an average mined head grade of 0.72 gold equivalent ounces per ton. The Company's mining activity at Fire Creek and Midas performed as planned, which resulted in an estimated 51,670 gold equivalent ounces mined. The Company built a significant stockpile in Nevada of 30,890 tons at an average grade of 0.94 gold equivalent ounces per ton containing an estimated 29,142 gold equivalent ounces. Production cash costs per gold equivalent ounce sold in Nevada was US$659 which is below the 2017 expected range of US$680 to US$710.
- Nevada performance, April 2017 - The Company produced approximately 25,000 gold equivalent ounces from Fire Creek and Midas in April as the Midas mill ran near full capacity.
- Hollister project development - The Company completed a significant amount of project development activities at Hollister, including the rehab of approximately 4,000 feet of underground workings in the main zone, 4,000 feet of air and water lines, repairing underground support systems, and advancing approximately 1,025 feet and 2,600 feet of waste and ore development in the Gloria zone, respectively.
- True North performance – The company continued to ramp up True North in Canada towards full production.
- Ounces sold and financial results - Klondex sold 33,737 gold equivalent ounces, consisting of 29,559 gold ounces and 287,000 silver ounces. Revenue was US$41.71 million from average realized selling prices per gold and silver ounce of US$1,237 and US$18.00, respectively. Net loss was US$10.2 million.
From a mining perspective, the first quarter of 2017 was a record quarter at Klondex. Its operations are running well and the company is on track to meet its annual production and cost guidance for the year.
News: Klondex Reports First Quarter 2017 Results A couple of days ago, TerraX Minerals announced assay results from the first 22 holes from the 2017 winter drill program just completed at the Yellowknife City Gold Project in the Northwest Territories.
The best results were:
- 8.80 m @ 2.33 g/t Au including 1.99 m @ 9.19 g/t Au in hole TSO17-015
- 3.32 m @ 6.96 g/t Au including 2.08 m @ 10.90 g/t Au in hole TSO17-016
- 2.00 m @ 4.82 g/t Au in hole TSO17-017
- 2.90 m @ 2.70 g/t Au in hole TSO17-018
- 1.90 m @ 13.96 g/t Au in hole TSO17-019
- 3.00 m @ 2.18 g/t Au in hole TSO17-020
Aguia Resources delivers top-class drill-results again!
A short time ago, Aguia Resources updated its shareholders on the ongoing infill drilling program at its flagship Três Estradas Phosphate Project in southern Brazil.
Highlights were as follows:
- Drilling along the newly discovered southeast zone with strike-length of at least 700 meters continues to discover mineralization with thicknesses and grades analogous to the current Três Estrada deposit:
- Hole TED-17-121 returned 28.60 meters grading 3.53% P2O5
- Hole TED-17-124 returned 54.00 meters grading 3.70% P2O5
- Hole TED-17-126 returned 40.05 meters grading 3.08% P2O5
- Hole TED-17-127 returned 28.55 meters grading 3.87% P2O5
- Strike length of NE extension remains open past 700 meters and the company will initiate a shallow reverse circulation to test this potential extension for further oxidized mineralization
- Infill drill of Tres Estradas deposit continues to return excellent results that confirm the homogeneous nature of mineralization and continuity laterally and at depth:
- Hole TED-17-111 returned 45.70 meters grading 4.51% P2O5
- Hole TED-17-114 returned 79.00 meters grading 3.23% P2O5
- 13,710 meters of infill drilling has been completed and the program is anticipated to be finalized at month end.
Treasury Metals announces important update!
A couple of days ago, Treasury Metals provided a number of important corporate and project updates.
- The Company and AMEC Foster Wheeler have completed the information request responses and accompanying technical support as part of the Federal Government of Canada's Environmental Assessment process (“Federal EA”).
- The Company exercised its option to repurchase an outstanding US$10/oz Au production fee with Extract Advisors LLC and Loinette Company Leasing Ltd. for total consideration of US$350,000. The production fee buy back eliminates the future cost of the production fee in its entirety and enhances the overall project economics at Goliath Gold Project.
- On May 5, 2017, the Company entered into a binding term sheet in connection with the Company’s existing US$4.4 million term loan which is comprised of two tranches with the Lenders. The Loan Extension will amend, among other terms, the maturity date of the Term Loan, extending it to April 2, 2019, from September 20, 2017.
Pershing Gold will drill Blackjack Hill
A short time ago, Pershing Gold announced that it has initiated a drilling program in the recently consolidated Blackjack Project Area.
With the recent consolidation of the district, for the first-time Pershing Gold is free to fully explore the highly prospective Blackjack Project Area, which may result in the discovery of satellite deposits on its 25,000 acre land position, which could extend the life of the entire project.
News: Pershing Gold to Drill Blackjack Hill EnWave announced a couple of days ago, that it has signed a commercial royalty-bearing license with Ashgrove Cheese Pty Ltd., a diversified Australian dairy processor based in Northern Tasmania. Ashgrove also submitted a purchase order for EnWave to deliver a small-scale commercial Radiant Energy Vacuum (“REV™”) machine to initiate production.
The License grants Ashgrove the exclusive right to use REV™ technology to process dried cheese products in the State of Tasmania. In exchange for this exclusivity, Ashgrove has agreed to pay EnWave a 5% royalty on the wholesale price of all REV™-dried products sold. If Ashgrove submits a purchase order for a 100kW or larger REV™ machine within a year, the exclusive processing territory prescribed in the License will expand to the country of Australia.
This is EnWave’s twentieth commercial royalty-bearing license; the ninth for the processing of dairy products and the first in the continent of Australasia. EnWave’s technology licensing business model continues to gain momentum with each additional commercial partner agreeing to pay long term royalties for the use of the Company’s innovative and economical REV™ machinery.
News: EnWave Signs Commercial Royalty-Bearing License with Ashgrove Cheese Pty Ltd, Receives First Purchase Order from Australia Sulliden Mining recently announced a non-brokered private placement financing of up to 5,000,000 units at a price of CA$0.25 per unit for proceeds to the company of approximately CA$1,250,000. Sulliden intends to use the proceeds for the advancement of the Trolius Gold project, further investment opportunities and general working capital purposes.
Sulliden’s main goal seems to be the development of Troilus into an acquisition status.
News: Sulliden Mining Capital Inc. Announces Private Placement
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