|Stock of the week: First Cobalt
Auryn Resources reports large-scale gold and silver mineralization
A short time ago, Auryn Resources announced encouraging results from its initial three trenches at the Tacora target within the Huilacollo oxide gold project in southern Peru. Broad zones of oxide gold and silver mineralization were encountered within hydrothermal breccia bodies that form part of a 1.5 km long structural corridor that defines the Tacora target. The trench results are highlighted by 61 meters of 0.7g/t gold and 9.5 g/t silver including 25 meters of 0.99 g/t gold and 13.34 g/t silver.
Therewith, the broad zones of oxide gold and silver mineralization encountered in hydrothermal breccias at surface confirm the thesis that the Tacora target has the potential to become a significant body of mineralization.
News: Auryn trenches 61 meters of 0.7g/t gold and 9.5 g/t silver of oxide mineralization at Huilacollo
Uranium: Kazakhstan lowers uranium production again!
Gold: JP Morgan expects US$1,700 for the gold ounce!
Famous US investment bank JP Morgan forecasts a gold price of US$ 1,700 for 2019 with a cogent reason: Luis Oganes, head of JP Morgan’s foreign exchange and commodity analytics argues that the expansive US commodity cycle is in a very late stage. The gold price always went up, when the cycle reversed. The current strength of the US$ seems to be only a current development. As soon as the US$ will move downwards, the gold price will get an enormous impulse upwards.
Treasury Metals reports top-class drill results
Treasury Metals: PI Financial sees fair course value at CA$1.20!
US Gold starts drilling at Potato Canyon
A few days ago, Treasury Metals announced additional assay results from the active infill and resource expansion/exploration drilling program at Treasury’s flagship Goliath Gold Project located in northwestern Ontario. Hole TL18-489 intersected 65.78 g/t over 3.00m following up on nearby historical holes TL161-14RE which returned 5.47 g/t over 4.00m, TL17-422 with 4.10 g/t 5.00m, and TL16-420 with 2.72 g/t over 6.00m.
Further drilling in the area may delineate new gold ounces into inferred resources and eventually the mine plan.
News: Treasury Metals Announces Additional Drilling Results, including 65 g/t Au over 3 metres in high-grade C Zone Shoot
Sibanye-Stillwater releases important company update
US Gold recently announced its plans to commence drilling in the Potato Canyon area in the Southwest section of the Keystone Project. The Potato Canyon area, located in the Southwest portion of the Keystone District, is the newest staked, 2017 vintage, land position of the Keystone project. U.S. Gold Corp. has not previously drilled in the Potato Canyon area. A new Notice of Intent (NOI), the fifth in the district, has been established for the initial drilling operations. U.S. Gold Corp. plans to drill a minimum of 2 scout holes, each to depths of up to 2,000 feet for a total of 4,000 feet (1275 meters). The scout holes will examine the geology of the Potato Canyon area and provide an initial assessment of some altered areas with very anomalous surface geochemistry including gold in rock samples in the 1 to 5 g/t range.
News: U.S. Gold Corp. Plans to Commence Drilling at Potato Canyon on the Keystone Project, Cortez Gold Trend, Nevada
The board and management of Sibanye-Stillwater has noted with concern the significant drop in the Group’s share price and market value, which has accelerated in recent weeks. Management believes that this uncertainty is unwarranted and primarily driven by the concerns around high balance sheet leverage, the recent safety incidents and associated operational disruptions and concerns regarding the viability of the Lonmin transaction.
For this reason, the company released an important company update with the following topics:
- Sibanye-Stillwater’s transformative growth that has made it one of the largest PGM producers in the world at a low point in the PGM commodity price cycle, has resulted in a significant, but temporary, change in its capital structure
- The Group is pursuing its deleveraging strategy, and Group liquidity remains sound
- The Group debt maturity profile has been carefully structured, with major debt repayments only due from mid-2022
- Various financial options which, will accelerate the deleveraging are being assessed, with a decision on these expected soon
- The SA and US PGM operations continue to perform well, and the recent regression in safety at the SA Gold operations is being addressed with initiatives to reduce costs across the SA region being implemented
- The proposed acquisition of Lonmin is proceeding as planned. Sibanye-Stillwater remains convinced by the compelling strategic rationale of this transaction.
Aurania Resources discovers new target area
Especially the not yet decided possibility of raising up to US$500 million via a streaming arrangement, at competitive financing costs relative to alternative financing instruments, could be an important part in the company’s plans.
News: Sibanye-Stillwater strategic and operational update
Aurania Resources announcesfinancing
Aurania Resources recently reported the discovery of a new epithermal zone some eight kilometers south of the “Crunchy Hill” area. The new discovery, named “Yawi” means “thermal spring” or “area with hot water” in the local Shuar language. In addition, two diatremes (breccia bodies) have been found in nearby outcrop, and presumably there is a geological connection between the diatremes and the mineralization. Rocks in the area are clay- and sericite-altered and preliminary XRF (x-ray fluorescence) analysis indicates anomalously high levels of mercury and arsenic in selected samples. These are natural pathfinder elements for precious metals and can be used to vector in to the mineralization.
News: Aurania Discovers Epithermal Target #6 in the Latorre District in Southeastern Ecuador
Video presentation: Tracking Gold Of "The Lost Cities" In Ecuador
First Cobalt completes US Cobalt acquisition
For financing planned future drill campaigns, the company also recently announced that it intends to complete a non-brokered private placement financing of up to 2,000,000 units at a price of $2.00 per Unit, for total gross proceeds of up to $4,000,000.
The gross proceeds raised from the sale of the Units will be used by the Company for mineral exploration, which includes continuing the geochemical sampling survey and prospecting that has been successful in discovering several epithermal targets, additional geophysical surveys over specific target areas, and remote sensing, all with a focus on further defining specific drill targets, and for general working capital purposes.
News: Aurania Resources Ltd. Announces Non-Brokered Private Placement
First Cobalt recently announced the completion of the previously announced acquisition of US Cobalt Inc. by way of plan of arrangement. US Cobalt shareholders will receive 1.5 common shares of First Cobalt for each US Cobalt share held and US Cobalt has become a wholly-owned subsidiary of First Cobalt. The transaction received formal approval from the Committee on Foreign Investment in the United States (CFIUS) on June 1, 2018.
Therewith, First Cobalt now has three significant North American assets: The Iron Creek Project in Idaho, which has a historic mineral resource estimate (non-compliant with NI 43-101) of 1.3M tons grading 0.59% cobalt; the Canadian Cobalt Camp, with more than 50 past producing mines; and the only permitted cobalt refinery in North America capable of producing battery materials.
News: First Cobalt Completes Acquisition of US Cobalt
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