Top-News of the week:
Klondex Mines announces record production in 2016 and 36% higher 2017 Production Guidance
A couple of days ago, Klondex Mines reported its fourth quarter and 2016 full year operating results.
The Company’s operations at Fire Creek and Midas produced a record 43,264 gold equivalent ounces ("GEOs") during the fourth quarter, bringing the full year 2016 Nevada production total to 150,099 GEOs, slightly above the top end of the Company’s guidance of 145,000 to 150,000 GEOs. Specifically, as planned, Fire Creek produced 53% more ore tons at 65% higher grades due to additional longhole stoping. Midas realized a reduction of 15% in longhole silling and stoping mining widths which improved mined head grades by approximately 22% in the fourth quarter.
The True North mine in Manitoba, Canada produced 8,445 and 10,199 GEOs for the fourth quarter and full year, respectively, in line with the Company’s guidance of 8,000 to 12,000 GEOs.
The Company expects to produce between 210,000 and 225,000 GEOs during 2017 at an expected cash cost of $680 to $710 per GEO sold. This represents an increase in GEOs sold of approximately 37% from the prior year as the Company benefits from bulk sampling production at its Hollister project in Nevada as well as higher production from its True North mine in Canada as ramp-up continues. Fire Creek and Midas’ 2017 production is expected to be in line with the prior year.
News: Klondex Reports Record Quarterly Production of 51,833 GEOs; 2017 Production Guidance Increased ~36% From Prior Year
Furthermore, Klondex Mines provided an update on underground drilling at its True North Gold Mine in Manitoba, Canada.
The highlights were as follows:
- 26-16-001: 0.36 opt Au over 15.0 ft, or 12.3 g/t over 4.6 m
- Including 1.75 opt Au over 3.0 ft or 60.0 g/t over 0.9 m
- 32-16-003A: 1.13 opt Au over 2.3 ft, or 38.8 g/t over 0.7m
- 32-16-006: 0.20 opt Au over 16.5 ft, or 7.0g/t over 5.0 m
- Including 0.63 opt Au over 2.6 ft, or 21.5 g/t over 0.8 m
- 32-16-006: 0.33 opt Au over 9.7 ft, or 11.3 g/t over 3.0 m
- 645-16-002: 0.95 opt Au over 5.9 ft, or 32.5 g/t over 1.8 m
- 645-16-003: 0.67 opt Au over 2.4 ft, or 23 g/t over 0.7 m
- 645-16-004: 0.53 opt Au over 12 ft, or 18.2 g/t, 3.7 m
- Including 1.83 opt Au over 2.5 ft, or 62.8 g/t over 0.8 m
Klondex Mines announces outstanding drill results from Fire Creek
Furthermore, the company provided an update on underground drilling at its Fire Creek Mine.
Underground Drilling Highlights were as follows:
- FCU-0714: 96.92 opt Au over 1.7 ft., or 3,322.8 g/t over 0.5 m
- FCU-0692: 1.47 opt Au over 8.0 ft., or 50.3 g/t over 2.4 m
- FCU-0689: 1.08 opt Au over 18.3 ft., or 37.0 g/t over 5.6 m
- FCU-0709: 0.84 opt Au over 33.0 ft., or 28.9 g/t over 10.1 m
- FCU-0716: 0.45 opt Au over 53.8 ft., or 15.34 g/t over 16.4 m
Market Watch:Uranium stocks still rising!
It’s really astonishing: After the uranium spot price continuously lost ground in the last years and marked its last bottom at around US$18 per pound U3O8 in December, it now rises every day a few cents and was able to move above the US$26 mark recently. And it seems that it is also immune against disruptive actions like TEPCO’s (leading Japanese nuclear power plant operator) announcement to cancel a running contract with Cameco. At least this could mean some additional supply of 9 million pounds U3O8 till the year 2028. But investors don’t seem to be interrupted by this thing. To be honest, 9 million pounds within 11 years are not that much for the fact that the current demand lies at around 160 million pounds per year. It’s not more like a drop in the bucket. Emerging nuclear power nations like China, India and in south-western Asia may be pleased to get this free portion instead. It would also not be astonishing, if Cameco could present a new purchaser for this amount of uranium within the next few months.
All in all, a renaissance of the uranium sector seems to be nearly irresistible, wherefore many uranium stocks already showed some strong course gains. It seems, that only the sky could be the limit. At least Kazakhstan has announced a 10% output reduction and below a uranium price of US$50 to US$60 new production starts will hardly happen. The demand side instead could double by 2030 because of the fact that a lot of new nuclear plants are in construction. Conclusion: A higher uranium price is nearly inevitable and the spot price will advance as an indicator. Alike the share prices of the relatively few uranium companies…
Video: Uranium - Solution For Pollution
Company News:
Corvus Gold announces great drill results from North Bullfrog!
Just a few days ago, Corvus Gold announced the initial results from the first five holes in the new Liberator Zone on the company’s North Bullfrog Project. Results continued to outline a broad zone of gold mineralization as four of the five holes returned wide mineralized intercepts. Drill Hole NB16-320 intercepted broad gold mineralization starting at a shallow depth below surface returning 108 meters @ 0.57 g/t gold including 20 meters @ 0.99 g/t gold and higher grade vein intercepts of 1.52 meters @ 8.3 g/t Gold & 1.52 meters @ 4.96 g/t gold and ending in mineralization. This new zone has now been intercepted over a strike length of over 800 meters and is oriented sub-parallel to the YellowJacket Deposit, with several zones of higher grade mineralization along the trend. The current drill program at Liberator has another 3 holes pending. All in all, great news for CEO Jeffrey Pontius and his top-class management team.
Video: Newsflash #55 Exploration Results of Corvus Gold, Cardinal Resources & Treasury Metals #A couple of days ago, Birimian Limited advised that the agreement for the potential sale of its fully owned Bougouni Lithium Project has been terminated. The LOI was subject to several conditions, including Mingrui providing a AU$10.75 million cash deposit to Birimian by 20 January 2017. Due to increasing regulatory protocols on the transfer of funds from China, the deposit was not received when due, and the LOI agreement has been terminated.
One will see how this could have a good thing for Birimian, because there was a number of Chinese companies which showed interest for Bougouni within the last few months. A bidding competition has not been eliminated!
News: Termination of LOI for the sale of the Bougouni Lithium Project
A couple of days ago, Sierra Metals reported its fourth quarter 2016 and full year 2016 production results.
2016 Consolidated Production Highlights:
- Silver equivalent production of 11.4 million ounces; a 4% increase from 2015; second highest in Company history
- Copper equivalent production of 79.5 million pounds; a 4% increase from 2015; second highest in Company history
Fourth Quarter 2016 Production Highlights:
- Silver equivalent production of 3.2 million ounces; a 31% increase from Q4 2015
- Copper equivalent production of 21.2 million pounds; a 31% increase from Q4 2015
Sibanye Gold: Proposed Acquisition of Stillwater Mining Company Antitrust Condition Satisfied
Last week, Sibanye Gold announced that Sibanye and Stillwater Mining have received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended with respect to the proposed acquisition of Stillwater by Sibanye, which was announced on December, the 9th 2016. The effect of the early termination is that the antitrust condition required for the Transaction has now been satisfied.
The Transaction is expected to close in the second calendar quarter of 2017, if the majority of shareholders of both companies will vote in favor of the acquisition.
Video: Newsflash #56 with Sibanye, TerraX Minerals & Endeavour Silver
A couple of days ago, EnWave announced that it has signed a Commercial Royalty-Bearing License with Van Dyk Specialty Products Ltd., a major Canadian producer of wild blueberry products. Van Dyk also submitted a purchase order for EnWave to deliver a large-scale 60kW Radiant Energy Vacuum machine.
The 60kW nutraREV® machine is scheduled for installation in the second half of 2017 at a new food-grade facility built by Van Dyk in Nova Scotia, Canada. The License grants Van Dyk certain exclusivity for the production of wild blueberry products using REV™ technology. Van Dyk will pay EnWave a royalty on the wholesale value of the finished products when sold.
Another long-term cashflow-guarantee for EnWave!
News: EnWave Signs Commercial Royalty-Bearing License with Van Dyk Specialty Products Ltd., Receives Purchase Order
Video: EnWave: Increasing REV Sales & Royalty Streams in 2017
A few days ago, TerraX Minerals announced that it has effectively tripled the size of its land position at the Yellowknife City Gold project by staking an additional 253 square kilometers in three areas contiguous to its current properties.
The new claim areas include:
- A northern extension to the Northbelt property covering prospective geology on the west side of the greenstone belt (mafic volcanics) hosting the past producing Con and Giant deposits at Yellowknife;
- An additional block on the east side of the Southbelt property covering the southern extension of the prolific Campbell Shear, the source of over 5 million ounces of high-grade gold production at the past producing Con Mine; and
- A large block of ground in the Burwash sediments (Duncan Lake Group), which hosted the past producing high grade Discovery (1 Moz at an average grade of 1 oz/t), Ptarmigan, Tom, Burwash and Cassidy mines as well as numerous gold showings.
Yellowknife City Gold now encompasses 382 square kilometres of contiguous land immediately north and south of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, TerraX controls one of the six major high-grade gold camps in Canada. Being within 15 km of the City of Yellowknife, the YCG is close to vital infrastructure, including transportation, service providers, hydro-electric power and skilled tradespeople.
In addition to this, the company recently announced that it has commenced a 17,000-meter drill program at its Yellowknife City Gold project. This program will incorporate up to four drill rigs that will be primarily testing a number of new drill targets identified during 2016 field exploration.
Video: TerraX Minerals: Aggressive Winter Drill Program Starting Soon
News: TerraX begins 17,000 meter winter drill program at Yellowknife City Gold
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