|Stock of the week:
Endeavour Silver: turnaround at Guanacevi – next mine start in March – production decision and construction start for Terronera soon awaited!
A few days ago, Endeavour Silver reported 2017 production of 4.9 million ounces (oz) silver and 53,007 oz gold, meeting the company’s revised guidance on silver and exceeding revised guidance on gold. Silver equivalent production totaled 8.9 million oz at a 75:1 silver: gold ratio, approaching the top end of revised guidance.
Revision was necessary, due to an unexpected water ingress at the Guanacevi mine in early 2017. Meanwhile, the operations team resolved many of those operating issues and it is planned to complete Guanacevi’s recovery to normal operations in 2018. A productivity optimization program is being launched at Guanacevi this month and additional operational improvements are planned this year at Bolanitos and El Cubo.
The El Compas mine and plant development project continues to move forward on time and budget, targeting initial production in late March 2018. Both the main mine portal and the secondary ramp entrance infrastructure are now complete. The main mine ramp has advanced 174 meters, and plant refurbishment was 82% complete at the end of December.
At Terronera, the company received permits to build the mine and plant and awaits receipt of the dumps and tailings permits. Several trade-off studies were completed in 2017 and management expects to release a summary of an updated pre-feasibility study in February. Assuming a positive production decision in the first quarter, the company plans to break ground in the second quarter and target initial production by late 2019.
To summarize all this information: turnaround at Guanacevi seems to be achieved, production at El Compas will be started in March 2018, an improved pre-feasibility study for Terronera will be published in February, a production decision is awaited for the first quarter, followed by the construction start in the second quarter and a planned production start in late 2019. A lot of good news to come for Endeavour shareholders!
News: Endeavour Silver Produces 4.9 Million oz Silver and 53,007 oz Gold for 8.9 Million oz Silver Equivalent in 2017
Gold price: break-out not (yet) successful!
In Fact, the gold price was able to overcome the important level of US$1,330 per ounce and therewith generated a new 4-month-high, but didn’t successfully broke through the high from July 2016, which would offer a free way to the US$1,400 range. Should gold not be able to hold the US$1,330-mark at the end of the week, a double-top looms, which could throw gold back into the US$1,200-zone.
A big unknown are the coming interest rate plans of the FED. Should the FED’s strategy of rising interest rates start stuttering in the coming months, due to geopolitical risks or market issues, gold would gain a great momentum.
Uranium: US-producers playing the security card
A few days ago, the last two US-uranium-producers Ur-Energy and Energy Fuels jointly submitted a Petition to the U.S. Department of Commerce for Relief Under Section 232 of the Trade Expansion Act of 1962 from Imports of Uranium Products that Threaten National Security and the independence of the US energy industry.
The two companies bring forward the argument, that currently 40% of the US uranium demand is been covered from imports from former Soviet-states like Russia, Kazakhstan and Uzbekistan, while only 5% of the demand is been produced in the US itself. The dependence of both the US energy industry (around 20% of the US- energy is been provided by nuclear plants) and the military from these countries has risen dramatically.
With their petition, both companies want to achieve, that both the U.S. Department of Commerce and president Trump will prepare a clear evaluation of the current import dependence of the USA from Russia, Kazakhstan and Uzbekistan and that both will support the US uranium industry.
Therewith, both companies walk an exceptional way, which may persuade the US-government to a kind of rethinking and to support the US uranium industry.
The US uranium industry would have the potential and the capacity, as further former producers like Uranium Energy or rising development companies with permitted projects and plants like Anfield Resources or Laramide Resources are at the ready.
News: Energy Fuels and Ur-Energy Jointly File Section 232 Petition with U.S. Commerce Department to Investigate Effects of Uranium Imports on U.S. National Security
Uranium report: Uranium Report 2018
Osisko Gold Royalties realizes large investment gain
TerraX Minerals acquires former gold mine
Osisko Gold Royalties recently provided an update on its investment portfolio. The Company reported that it has delivered its shares of AuRico Metals Inc. to Centerra Gold Inc. for a $1.80 cash consideration per share and for proceeds of $25.5 million, generating a gain for Osisko of $15.5 million, based on the cash cost of the shares. The Company thus realized a 155% return on its investment.
Therewith, the management once more proved its intuition on excellent stock trading. Anyway, CEO Sean Roosen and its team was able to realize more than 70 million $ with stock trading since 2014.
News: Osisko Portfolio Update
US Gold Corp. announces new PEA
A short time ago, TerraX Minerals reported that it has entered into an agreement to acquire the Ptarmigan Mine property, located within its Eastbelt property, Yellowknife City Gold Project. The Ptarmigan Mine was a gold producer in the Yellowknife gold district from 1941-42, in 1983 and from 1985-1997. The main Ptarmigan vein was accessed by a shaft extending to 275 meters depth and mined over 400 meters of strike length. Production from Ptarmigan totaled 364,874 tons producing 112,213 ounces of gold (average 9.56 g/t Au recovered). The gold is free milling with recoveries in the 1940’s reported at 97-98%. Gold recovery in the 1985-97 period consisted of gravity and flotation concentration with reported recovery of 94%. When the mine closed in 1997 the vein was still open along strike to the west on claims now owned by TerraX, and open down dip below the mine workings.
A strategically good deal from TerraX Minerals, especially for the fact, that there could be old stockpile, which could give the company the opportunity to start a small production without going underground first.
News: TerraX acquires Ptarmigan Mine property on Eastbelt, Yellowknife City Gold
Caledonia Mining announces next record quarter!
A couple of days ago, US Gold Corp. announced a new, positive PEA for its Copper King project in Wyoming. The pre-tax economic analysis of the project, including the 5% Wyoming state royalty, shows a strong 33.1% internal rate of return and a net present value of $178.5 million at 5% discount rate. A payback of the initial $113.66 million investment occurs in a little under 2.5 years. The revenue is about 1/3 from copper and about 2/3 from gold. Over the project life a total of 182 million pounds of copper and 692,000 ounces of gold are projected to be recovered based on the PEA recovery assumptions. These results indicate a potentially highly economic project and the project should proceed to the prefeasibility or feasibility stage. Another big milestone for US Gold Corp.!
News: U.S. Gold Corp. Announces Updated Copper King PEA
Video: A Rising Mining Star In The USA: US Gold Corporation
EnWave sells one more machine
A few days ago, Caledonia Mining announced a record quarterly gold production from the Blanket Mine in Zimbabwe for the quarter ended December 31, 2017.
Approximately 16,425 ounces of gold were produced during the Quarter, a new quarterly production record for the mine. Production in the Quarter was 14 per cent higher than the previous quarter (Q3 2017) which was itself a record production quarter, and 21 per cent higher than the corresponding quarter of 2016 (Q4 2016).
Total 2017 gold production was approximately 56,135 ounces, marginally ahead of 2017 production guidance of 54,000 – 56,000 ounces. 2017 production represents a new annual production record for the Blanket Mine, an increase of 11.4 per cent over the annual gold production in 2016.
It seems, that last year’s production improvements clearly lead to a massive gain by now. Investors can be pleased about the next dividend check!
News: Record quarterly and annual gold production at Blanket Mine
EnWave: expansion plans for 2018
EnWave recently announced, that it has signed an equipment purchase agreement with Bare Foods Co., a leading American snack food company. Pursuant to the Agreement, Bare Foods has purchased a small commercial-scale Radiant Energy Vacuum (“REVTM) machine to begin production in 2018.
After the two recently announced technology agreements, this is the third big deal within three weeks, which brings the company another large step forward.
News: EnWave Signs Equipment Purchase Agreement with Bare Foods Co.
Fission Uranium plans accelerated completion of PFS
EnWave also recently provided an update on the 2018 corporate plans for the Company. Moving forward in 2018 calendar year, the Company will continue to focus on the rapid commercialization of Radiant Energy Vacuum (“REV™”) technology in the food industry, evolving cannabis space and the development of REV™ technology for its pharmaceutical partners. The current pipeline of opportunities remains strong. There are currently 13 prospective licensees with active TELOAs for which product development are in varying stages of advancement, many of which have made significant progress on the path toward commercialization. There are also two companies with R&D projects which have made advancements in evaluating the investment case for launching new products using REVTM.
EnWave is well prepared for 2018. Main goal should be the stable entrance into the profit zone.
News: EnWave Provides Corporate Update and Announces Amendment to its Consulting Agreement with Adelaide Capital Markets
First Cobalt will drill 26,500 meters in 2018
A few days ago, Fission Uranium announced, that preparations have begun for a $9.4M winter work program at its PLS project in Canada's Athabasca Basin. The 31-hole program will focus on two core goals: growth of the recently-discovered, high-grade R1515W zone and accelerating progress towards the pre-feasibility study “PFS”, which is a key milestone for potential eventual production at PLS.
With the PFS planned to be completed by the end of 2018, the company’s programs are designed to advance the Triple R deposit towards that point. The near-surface, high-grade mineralization at PLS allows Fission Uranium to pursue multiple goals simultaneously. The company will also be targeting further growth of R1515W – the exciting land-based zone, over 1.4km west of the Triple R, which has several similar characteristics to the R780E zone, and has delivered the widest intervals of mineralization outside of the main deposit.
News: Fission Pushes Towards Pre-Feasibility and Additional Western Zone Expansion
GoldMining announces gold resource for Cruzero project – Gold equivalent resource base expanded to more than 26 million ounces!
A short time ago, First Cobalt announced its 2018 exploration program for its Cobalt Camp properties in Ontario, Canada. The C$7 million program includes over 26,000m of drilling on 13 different targets. The 26,500-meter drilling program has been designed to test mineralized areas throughout the Cobalt Camp with known historical production of cobalt and silver. These areas include the Kerr, Drummond, Juno, Ophir, Hamilton, Silver Banner and Silverfields mines in Cobalt North, the Caswell mine in Cobalt Central, and the Bellellen, Keeley and Frontier mines in Cobalt South.
The fact, that the company will drill within former silver-cobalt mine areas gives enough potential for speculation.
News: First Cobalt Announces $7 Million Exploration Program for 2018
A couple of days ago, GoldMining Inc. announced the results of a National Instrument 43-101 mineral resource estimate for its Crucero Gold Project located in the Department of Puno, southeastern Peru. The estimate includes an indicated resource of 30,653,000 tons grading 1.0 g/t gold (1.0 Moz) and an inferred resource of 35,779,000 tons grading 1.0 g/t gold (1.1 Moz) at a 0.4 g/t gold cut-off.
Therewith, GoldMinings global indicated and inferred resource base climbs to over 26 million ounces gold equivalent!
News: GoldMining Announces NI 43-101 Gold Resource for the Crucero Gold Project, Peru
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