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Post by likeike on Apr 3, 2024 18:08:40 GMT
by @sanibelchick on 2 Apr 2024, 21:37 Camino Minerals Corporation $COR.v: Morphing from Microcap to Monster #CEOStockResearchComp 2024 For those that invest in junior exploration companies, the information available on CEO.ca is invaluable. One can debate a company’s merits with other investors, share pertinent articles, easily locate SEDI and SEDAR filings, as well as monitor shorts and trading volume. A favourite feature of mine that is perhaps underutilized is the ability to filter using the ‘Companies’ tab on the ‘Home’ page. I often look at anomalies on the Venture, and it was this tool that led me to discover what I believe to be the crown jewel in my portfolio. Camino’s current trading volume averages 76.805 shares per day. It came across my radar on November 28, 2022, when trading volume spiked to an astonishing 16,606,190 shares. While I am no ardent proponent of technical analysis, I firmly believe that volume precedes price. Clearly this was a company that required a closer look -- and look I did, in every possible nook and cranny. With each rock that I turned over in conducting my due diligence, rather than finding wart covered toads, I found reasons for increased conviction. Investing in the junior exploration sector is always a high-risk proposition. However, ensuring that a company meets a minimum set of criteria can greatly improve your odds of success, and the potential upside for speculators is virtually unparalleled. In my estimation, Camino doesn’t just meet these minimum criteria, it exceeds them. I believe this is a once-in-a-lifetime investment with exceptional potential and limited downside. Allow me to explain why this unloved microcap has the potential to morph into a copper monster. Management Matters Many successful mining investors, notably Rick Rule, have often commented that one can have larger returns by simply sticking with a short list of proven names. Ross Beaty, Pierre Lassonde, and the Lundins are often referred to as the top names in mining – and with good reason. These individuals have repeatedly succeeded in shepherding deposits from discovery to production, creating tremendous value for shareholders in the process. Management is an essential part of any company's identity, and much of my optimism about Camino is based on the people driving it forward. Knowing the history of management is an important part of Camino’s story. Jay Chmelauskas might not be a household name, but you may have heard about one of his past accomplishments. Along with the late and legendary Edward Flood, Jay co-founded Western Lithium, which acquired Lithium Americas (current market cap $1.137B) in an all-stock transaction worth $80 million in 2015. He also held the position of President and CEO of China Gold International Resources Corp. Ltd. (formerly Jinshan Gold Mines), an organization that he led in successfully commissioning one of China’s largest open pit gold mines. Jay also served on the board of Ivanhoe Electric’s recent acquisition in Peru, Kaizen Discovery. Camino is not led by a lone talent. Another distinguished member of its leadership team is its Executive Chairman, Keith Peck, a graduate of Princeton University. In 2017, the Lundins and John Robins appointed Peck to the Board of Directors at Bluestone Resources, stating the company would benefit from his experience and track record in the field of project finance, exploration/development, renewable energy, and corporate and social responsibility. Peck co-founded Centenario Copper Corporation, which was acquired by Quadra Mining in 2009 in a transaction valued at $110 million. Camino’s largest inside shareholder is Director Ken McNaughton, an award-winning geologist whose discoveries have delivered impressive returns to shareholders a number of times. Peru was a challenging jurisdiction in the early 2020s as Covid and political chaos ravaged the country, but the company progressed with permitting and relationship-building with local communities. During this time, McNaughton was also Chief Exploration Geologist for Pretium’s Brucejack, one of the highest-grade operating gold mines in the world. Pretium was acquired by Newcrest in a $2.8 billion deal that closed in early 2022. Earlier this year, Camino announced a change to their Board in order to strengthen their management team and support corporate and project development. David Baker stepped down as a Director and joined the Executive full-time in the role of CFO. Baker had spent most of his career working with the Ivanhoe Group of companies, led by mining entrepreneur Robert Friedland. He was intricately involved with the study, development, construction, and financing of the Oyu Tolgoi copper porphyry project in Mongolia, the largest financial undertaking in Mongolia's history. The Price is Right “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.” – Warren Buffett Peru was one of the countries hardest-hit by the COVID-19 pandemic, and its economy contracted by 11.1% in 2020. Peru is the world’s second largest copper producer, so mining represents a large proportion of the nation’s economy. The Peruvian government is working hard to restore investor confidence and looking at recent merger and acquisition activity, it appears as though majors generally view the bottom as having arrived in early 2023 for Peruvian assets. With the chaos subsiding in Peru and investment in junior exploration companies still at record lows, investors remain blessed with the opportunity to buy shares at a steeply discounted price. The Rocks One of my favourite mining sayings is “Politicians come and go, but the rocks will always be there.” Despite a pandemic and political chaos in Peru, the geology hasn’t changed and Camino still owns some impressive land packages, despite the turmoil above ground. Camino’s three properties are Los Chapitos, Maria Cecilia, and Plata Dorada, but the company is looking to make further acquisitions. As Camino’s website states, this is a discovery to production story and management has made it clear they don’t intend to stop at number three. Might Camino be sitting atop the next IOCG monster? A major Japanese mining company seems to think so. Nittetsu is a Japanese corporation listed on the Tokyo Stock Exchange with a long and successful history as a mining and trading company. They are the operators of the Atacama Kozan mine located in the prolific Candelaria-Punta del Cobre copper district which is known to host IOCG (Iron oxide-copper-gold) deposits similar to that of Los Chapitos. Nittetsu enlisted the help of Getech, an AI-driven analytics company, to identify favourable conditions for IOCG mineral deposits in Peru. Getech had investigated how best to use gravity and magnetic data as predictive tools, focusing on a number of known IOCG deposits and their cutting-edge technology helped Nittetsu confirm the impressive potential of the Los Chapitos site. On June 14, 2023, Camino entered into a definitive agreement with Nittetsu Mining Co., Ltd. for the Los Chapitos copper exploration project. Under the terms of the agreement, Nittetsu can earn a 35% interest by making payments and expenditures towards the Project totalling C$10,100,000 over three years. Proceeds are being applied towards exploration, infill drilling, and metallurgical and engineering studies. After successful completion of the earn-in period, the Project will become a Joint Venture, whereby Camino will hold a 65% interest, remain operator of the Project, and retain 50% of the production off-take. It’s important to note that the intent is to accelerate this time frame, and expediting the process is a shared goal of both Camino & Nittetsu. Access roads to newly determined drill targets were constructed in late 2023, and drilling began on December 22nd with results anticipated shortly. Since this is an IOCG deposit, a producing mine could be constructed at a cost around C$200 million. On October 24, Camino announced they had discovered a “major deep-seated fault” named La Estancia at Los Chapitos. Shortly after, Rio Tinto claimed the ground immediately adjacent to the Property. It is notable that Rio Tinto staked their claims in the same N-NW direction as the recently discovered La Estancia fault line: The map below shows all the land claims near the Project, including Rio Tinto’s and South32’s partner, AusQuest. (Source: Peru’s government site www.gob.pe/institucion/ingemmet/informes-publicaciones/2023221-catastro-minero-en-google-earth)Limited research has been conducted in the area to date, and the Government of Peru recently stated that much of the country has yet to be explored. Several academic papers, including a number written by the famed geologist Dr. Richard Sillitoe, indicate promising geology in this Peruvian IOCG belt. The area is approximately 70 km wide and extends discontinuously for 800 to 1,000 km along the Peruvian littoral from Lima to the Ilo-Ite area, with Los Chapitos roughly located in the middle of this promising region. The Trend Is Your Friend The late prospector, David Lowell, was described as the 'World's Best Mine Finder,' having discovered 17 major minerals deposits over a 50-year career. In 1996, Lowell’s Arequipa Resources discovered the Pierina gold deposit in Peru and Barrick acquired the project for over C$1 billion later that same year. The yellow star on the map below shows the rough location of Pierina, now Barrick’s operating mine, and the blue thumbtack indicates the location of Camino’s Maria Cecilia porphyry project. Also shown on the map are Highlander Silver’s San Luis (strategic investors include the Lundin Family & Richard Warke’s Augusta Group), and Chakana Copper’s Soledad (Chairman Doug Silver is one of only three individuals to ever be inducted into both the Canadian & the American Mining Hall of Fame). North of Maria Cecilia and not shown on this image is Teck Resource’s Pashpap project. If nearology is something to consider, one would be hard-pressed to locate a more impressive set of names elsewhere in such a clear geological trendline. Camino’s claims in this area cover 7,110 hectares, and Maria Cecilia is considered to have geological similarities to Peru’s Antamina, one of the country’s largest copper mines that is located approximately 100kms away. On December 20th, Camino closed a Private Placement of $2.0M to fund discovery drilling at the Maria Cecilia Copper Porphyry Complex, which is expected to start at the beginning of the second quarter of 2024, after drilling is completed at Los Chapitos. In the same press release, CEO Jay Chmelauskas stated that Camino is now funded for exploration drilling at both copper exploration properties for the first half of 2024. ‘Silver Golden’ I don’t speak Spanish so I consulted Google Translate, which informed me that “Plata Dorada” means “Silver Golden” in English. Camino envisions the Plata Dorada project as a potential very low CAPEX, high grade copper and silver project and field work has been initiated on the property. Camino continues to work with the local community and improve access to the project, but for now Silver Golden will have to wait. Los Chapitos and Maria Cecilia are the bigger fish to fry, and for investors, they could be quite the catch. |
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Post by likeike on Apr 3, 2024 18:12:11 GMT
by @geodan on 3 Apr 2024, 08:55 The Best Gold Miner Value Stock in the World? Looks Like Beacon After finding Beacon Minerals, which is a Western Australian gold miner (BCN.ax ASX), I pondered whether it was the best gold miner value stock there is. The numbers are spectacular. Allen EV/EBITDA is 2.26, OE (Owners Earnings) is a 37% yield on market cap, and it has over 15% of market cap as cash (>$14 million cash) and no real debt, just equipment leases. They are in one of the safest areas in the world to mine; in fact, it is sometimes rated as the #1 jurisdiction. It even has a big dividend. Here are the numbers from UncleStock on Beacon. I am not alone in seeing their value as amazing. Argonaut has a 9-page article on it that is highly positive for Beacon. secure.argonaut.com/FileLink.asp?DT=R&DID=11155&DP=6713 Here is their summary of Beacon. Quick Read Beacon Minerals (ASX:BCN) is a small WA-based gold producer that’s been a quiet achiever since bringing its Jaurdi Operation into production in late 2019. Since 2019, BCN has achieved a 28kozpa production profile combined with steady positive operating cash flows. From the generated cash build, BCN has paid out a total of ~A$41.6 million in dividends and reinvested it into project acquisitions that will extend the Jaurdi mine life out to at least FY31. With a 7-year mine life in place, we look for a production profile increase as BCN brings on higher grade ore sources into its mine plan. Argonaut initiates coverage with a Speculative Buy recommendation and a $0.035 price target. Key points Track record of operational performance: BCN’s Jaurdi commissioning commenced in late 2019 with the ramp phase occurring during the worst part of the COVID lockdowns. Despite this hurdle, in the four years of production at Jaurdi BCN generated over A$99m of operating cash flows with only two quarters of negative operating cashflow. 7-year mine life in place: After dividends, BCN has invested the balance of its cash build into five strategic project acquisitions for a total cost of around A$31.3M. Once the Lady Ida Acquisition B is finalised, BCN will have reserve/production multiple of 9.5, ahead of many large-scale producers such as RMS, RRL, SLR and WGX. Higher Grade Feed Options to lift Ounce Profiles: BCN’s Jaurdi mill has a current operating capacity of around ~800ktpa with a +5year TSF capacity. Utilising the existing Jaurdi Mill, we see BCN bringing forward recently acquired higher grade projects Mt Dimer and Lady Ida as the pathway towards an increased ounce profile. Infrastructure advantage with a M&A niche: We like the competitive advantage that BCN holds in the Coolgardie/Kalgoorlie region. Competing mills in the area - Northern Star (KCGM), Gold Fields (St Ives) and Evolution (Mungari) all require deposits with scale and high margins to fit their portfolio. Of the assets left over, BCN has next to no competition and has been able to acquire projects at its own pace and without acquisition premiums. 1HFY2025 Results: BCN’s 1HFY2025 results delivered a NPAT of A$11.17M with gold sales totalling 16koz at an average realised price of A$2,969/oz. Total cash and cash equivalents totalled A$14.3M as of December 31. A fully franked dividend of A3.7M was paid out in December 2023. An objective way to determine the #1 best-value gold miner in the world? To attempt this, I came up with the idea of putting all 30,000 stocks at UncleStock into a filter. The parameters were to sort on owner Earnings Yield. Owner Earnings is a cash flow concept popularized by Warren Buffett in his 1986 Berkshire Hathaway company letter to shareholders. Owner Earnings = (a) Net Income plus (b) depreciation, depletion, amortization, and other non-cash charges minus (c) average annual maintenance capital expenditures. Next, I filtered for only stocks that were gold miners, with less than 4 Allen EV/EBITDA and a debt ratio < 2.0. I then backtested that formula for 16 years, annually refreshing stocks that fit the criteria and only using the 8 best in the OE Yield sort. This filter today only finds 59 stocks, and only about 40 are really gold miners. To my pleasant shock, the CAGR, the average gain per year over 16 years, is 20%! That trounces the SP 500. And both were about the same until 2020, when this filter took off and has beat the SP500 greatly since then. On the current list of the best gold miners with this filter, indeed, Beacon Mineral shows up as #2. #1 was Majestic, MJS.v., but it is in China. I have had problems in the past with cooked books there, so I have not bought a stock that has been in China for over 10 years. The above image is the prior-year list, not the current list. So indeed, Beacon ended up being the very best gold miner in the world in a jurisdiction with trustworthy accounting. Eastern Platinum also has superb numbers but is not gold, and it is in South Africa, mine-wise. I am so glad I made this attempt at creating the objectively best gold miner value finder in the world. Gold miners have underperformed the SP500, but this filter leaves the SP500 in the dust. The company comes across as very honest and careful with investors money. Here is the most recent video presentation by the Managing Director. In conclusion, objectively, Beacon Minerals indeed does appear to be the best value among gold miners in the world. I, however, encourage people to comment if they think there is a better one. |
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Post by likeike on Apr 3, 2024 20:55:48 GMT
A junior copper stock on the cusp of world-class discoveries
Trevor Abes , The Market Online
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Copper is the most important metal behind global decarbonization thanks to its superior conductivity, ductility, efficiency and 100 per cent recyclability, making it ideal for energy storage and electrical propulsion.
Electric vehicles (EVs) alone require up to four times more copper than gasoline-powered vehicles for everything from motors to batteries to charging infrastructure. This includes approximately 83 kg per battery-based EV, 59 kg for a plug-in hybrid EV, and 369 kg for a battery electric bus.
In addition to EV demand, the rising need for copper in solar, wind, bioenergy and electricity networks can require up to 12 times more copper than traditional energy systems, with exponential demand growth expected through 2050.
According to estimates by Energy Minute, copper demand through 2050 will require twice the amount of copper the world has produced over the past 3,000 years. BloombergNEF, for its part, sees demand for refined copper growing by 53 per cent by 2040, with supply climbing by only 16 per cent. A separate study by Wood Mackenzie takes us through the present decade, estimating that, by 2030, the world will be short by about 6 million tonnes of copper to keep pace with net-zero goals.
This dynamic sets the stage for investors to capitalize on prospective junior copper stocks garnering attention in the hot copper M&A market, as major players seek to expand production capacity to better meet global demand.
Building the next world-class copper district
Enter Max Resource (TSXV:MAX), market capitalization C$19.36 million, a junior miner exploring its 100-per-cent-owned CESAR copper-silver project in mining-friendly northeastern Colombia. CESAR sits along the Andean belt, the world’s largest producing copper belt, which has the potential to yield billions of pounds of copper and hundreds of millions of ounces of silver over the coming decades.
Fortified by ready access to infrastructure thanks to the nearby presence of Chevron oil and gas operations and Glencore’s Cerrejon, the largest coal mine in Latin America, CESAR is positioned to further propel Colombia’s leadership position in the energy transition, and 7x growth in copper production from 2011 to 2022, with its multitude of high-grade results and clear momentum towards identifying a world-class resource.
Click to enlarge
(Source: Max Resource)
The CESAR project lies along the richly mineralized 220-kilometre-long Cesar Basin. It’s the only unexplored sedimentary copper-silver basin in the world, despite vast porphyry copper-molybdenum-gold and related vein systems in its upper portion, and sediment-hosted copper-silver deposits in its lower portion.
Sedimentary copper deposits are found in ocean basins, where porous seabed materials provide access to copper and other minerals nestled in layers of rock. Copper porphyry deposits, for their part, are formed during the cooling of molten-rock magma, which leads to zones of dissolved metals, such as copper, molybdenum, gold, tin, zinc and lead.
Max’s sampling, surveying and mapping to date make a strong case for CESAR hosting economical copper-silver mineralization over a large area, as highlighted by three 100 per-cent-owned mineralized districts within a 120 km by 20 km zone, backed by:
1,125 surface rock samples returning values greater than 1 per cent copper, with average grades of 3.5 per cent copper and 36 g/t silver
28 targets being evaluated for drill testing
20 mining concessions spanning more than 188 square km across a land package in excess of 1,000 square km
Let’s look further into these three districts underpinning Max’s first-mover advantage in the Cesar Basin, beginning with the most prospective, to understand the robust upside shareholders are positioned to reap.
The AM discovery
The AM discovery, reported in January 2020, is a 32-km-long Kupferschiefer-type copper system featuring 15 mining concessions covering 114 square km and 14 highly prospective targets with mineralization beginning at surface. Highlight samples to date in the property’s sedimentary red bed sequences include 34.4 per cent copper and 305 g/t silver.
The Kupferschiefer district is the world’s largest silver producer and Europe’s largest copper resource, generating 3 metric tonnes of copper in 2018 and 40 million ounces of silver in 2019 from an ore body grading 1.49 per cent copper and 48.6 g/t silver starting 500 metres below surface.
Click to enlarge
(Source: Max Resource)
AM, for its part, backs up its district-scale prospects with a lengthy history of exploration milestones, including:
Two scout drill holes reported in April 2023 confirming the continuity of stratiform mineralization at depth.
The May 2023 discovery of the AM-7 target, a significant copper-silver system that ranges from 0.3-3.8 m in width, extends more than 2 km along strike, and is open in all directions. Subsequent channel samples reported in June feature high grades, including nine samples of at least 4 per cent copper and 24 samples of at least 10 g/t silver, with highs of 18.3 per cent copper and 138 g/t silver.
A high-resolution airborne magnetic and radiometric survey over the entire AM district initiated in August 2023, the first in the history of the Cesar Basin, to develop and refine drill targets.
The AM-08 discovery, just 7 km southeast of AM-07, reported in September 2023, featuring a significant mineralized outcrop spanning 10 m in width before disappearing underground. AM-08 went on to yield high-grade rock chip channel samples in November 2023, including 2.6 per cent copper and 58 g/t silver over 15 m, including 3.5 per cent copper and 77 g/t silver over 10 m.
The discovery of targets AM-09 through AM-12 in October 2023 based on preliminary airborne magnetic and radiometric survey data, demonstrating a reliable correlation between known mineralization and the survey. The strength of the data at AM led management to extend the survey to cover CESAR’s other two main districts, Conejo and URU – which we’ll discuss later on – with eyes on honing in on new targets and those meriting follow-up exploration.
The identification of five mineralized outcrops covering 1,000 square m, collectively known as AM-14, in February 2024, including exposure up to 285 m along strike and up to 4 m thick, and strong evidence of 1.5 km of mineralized continuity with AM-07. The junior copper stock discovered two more mineralized outcrops on AM-14 in February, showing the target to reside along a 15-km corridor of high-grade copper-silver mineralization, including highlight grades of 24.8 per cent copper and 230 g/t silver. High-grade rock chip assays reported in March 2024 reached as high as 2.2 per cent copper and 12.8 g/t silver over 5.2 m, and 4.8 per cent copper and 53.6 g/t silver over 2.2 m, confirming Kupferschiefer-style mineralization and demonstrating the potential of the 15-km mineralized corridor to host a significant deposit.
Results to date support Max Resource’s thesis that the Cesar Basin is host to multiple large-scale copper-silver deposits, with a new drilling program at AM slated for Q4 2024 to put this thesis to the test.
The Conejo discovery
The Conejo discovery, reported in March 2021, is a copper-silver system boasting multiple mineralized outcrops, each of them open in all directions and located only 30 km south of the AM discovery. Highlight assays from rock panel samples delineating an initial 1.6 km by 0.6 km zone include:
12.5 per cent copper and 83.5 g/t silver over 5 m by 5 m
10.4 per cent copper and 95 g/t silver over 5 m by 5 m
9.5 per cent copper and 120 g/t silver over 1 m by 1 m
A few months later, in May 2021, the junior copper stock expanded Conejo by 500 per cent to 3.2 km by 1.6 km thanks to additional rock panel assays, most notably 3 per cent copper and 22.6 g/t silver over multiple 1 m by 1 m intervals. Max followed this up with continued expansion in October 2021 to 3.2 km by 1.9 km backed by reconnaissance sampling grading up to 3.3 per cent copper and 54 g/t silver.
News of further progress hit the wires in November 2021, expanding Conejo to more than 3.7 km averaging 4.9 per cent copper, while remaining open in all directions, further substantiating the property’s scalable potential into a standalone copper project.
Management is confident that Conejo’s copper-silver mineralization is analogous to the Central African Copper Belt (CACB), which accounts for approximately one-fifth of the world’s copper production, including Ivanhoe Mines’ (TSX:IVN) 95-billion-pound Kamoa-Kakula copper deposits in the Congo.
Conejo’s history marks it as a key source of shareholder value, which management intends to unlock through further sampling sometime between Q4 2024 and Q1 2025, after it finalizes work at AM.
The URU discovery
The URU discovery, reported in April 2021, is part of a 20-km-long, 2-km-wide CACB-type system residing only 30 km south of Conejo.
Max initially delineated copper mineralization over 4 km of strike, with highs of 5.7 per cent copper and 14 g/t silver, but promptly tripled this figure to 12 km in July thanks to additional rock chip samples. More high grades in October 2021 quadrupled the property to 48 square km, with a standout assay of 14.8 per cent copper and 132 g/t silver in outcrop over 1.5 m by 0.8 m.
Click to enlarge
(Source: Max Resource)
The junior copper stock then proceeded to drill target definition from December 2021 (9.6 per cent copper and 70 g/t silver over 1 m by 1 m) through April 2022 (16.8 m at 8.3 per cent copper and 146 g/t silver), followed by an expansion of the main URU discovery in June, setting the stage for a maiden 2,200-m drill program.
Assays from URU released in January 2023 confirmed high-grade copper-silver in the Cesar Basin, marking the first successful test for mineral continuity at depth in the basin, as evidenced by:
9 m of 7 per cent copper and 115 g/t silver from surface, as well as 0.8 m of 18.5 per cent copper and 292 g/t silver, at URU-C
19 m of 1.3 per cent copper at URU-CE
12 holes intersecting mineralized zones, six intersecting significant copper-silver mineralization, and all holes yielding considerable alteration associated with a district-scale hydrothermal system
With 74 square km in approved mining concessions, and more drilling planned to expand mineral continuity and target higher-grade zones, the URU district offers exposure to proven promise for an economically extractable copper-silver deposit.
More than 150 years of mining and finance expertise
Behind CESAR’s strong indications of a world-class resource is a management team with a long track record of mineral discoveries, representing a value-add in excess of C$2 billion.
Brett Matich – who has served as Max Resource’s chief executive officer since 2018, in addition to serving as president and director – is a 25-year mining industry veteran who has held CEO positions in public companies listed in Australia, London and Toronto. These include:
Aztec Resources, where he led the development of the Koolan DSO hematite deposit, and grew the company from A$1 million in market capitalization to a A$300 million merger with Mount Gibson Iron (ASX: MGX)
Fox Resources, where he reactivated the Karratha nickel-copper mine in just two years, including reserve estimate and bankable feasibility study
Cap-Ex Ventures, where he developed an un-drilled magnetite prospect into a compliant 7.8-billion-tonne resource at 29 per cent iron ore, achieving TSX Venture 50 status in 2012.
Matich’s extensive and diversified mining expertise is complemented by executives of equal calibre across M&A, capital markets, geology and exploration and development. Meet them below:
Alex Helmel, chief financial officer, specializes in early-stage venture companies in Canadian capital markets, specifically private-to-public market transitions, corporate governance, senior management development and corporate growth strategy. He has served as a director or officer for numerous private, CSE- and TSXV-listed companies.
Bruce Counts, senior technical consultant, has built a more than 30-year career in international mineral exploration, project development and deposit evaluation across copper, gold and diamonds. Counts, a registered professional geoscientist, has also founded and served as director and/or executive for numerous publicly listed companies.
Rahim Kassim-Lakha, strategic advisor, is the founder and CEO of Blue Sail Capital, which boasts a track record of more than 28 years in global investing, capital markets and M&A advisory. Kassim-Lakha previously held leadership roles at Fidelity Capital and Toronto-based banks and boutiques, as well as that of portfolio manager at U.S. Global Investors, where he orchestrated and contributed to more than US$5 billion in high-value transactions.
Chris Grainger, Colombian geology expert, whose 25-year career has focused on grassroots and brownfield exploration, as well as resource definition and development, across numerous geologies and commodities. His previous roles include vice president of exploration at Cordoba Minerals (TSXV:CDB), chief geologist at Colossus Minerals, and founder of Continental Gold, the latter acquired by Zijin for C$1.4 billion.
Tim Henneberry, advisor and qualified person, who has more than 42 years of experience in domestic and international exploration and production across base metals, precious metals and industrial minerals. He has occupied the roles of founder, director, senior officer, and/or consultant for various CSE- and TSXV-listed companies since 2004, and currently holds board positions with Golden Independence Mining, Hilo Mining, iMetal Resources, J4 Ventures, Silver Sands Resources, Tana Resources and Treviso Capital. He also sits on the advisory boards of Atomic Minerals and Universal Copper.
Backed by heavy-hitting mining professionals, and a high-grade project suggestive of playing a meaningful role in Colombian decarbonization, it is no surprise numerous institutions have already taken positions in the junior copper stock, including Franklin Templeton (5 per cent), Merk Investments (5 per cent), and profitable precious metals producer Endeavour Silver (5 per cent) – the latter having signed a term sheet in March 2022 to help Max expand its land holdings at CESAR. These investments are in addition to a 5 per cent allocation by legendary mining investor Eric Sprott, all of which significantly de-risk the stock for retail investors.
A gem in the bargain bin
Sitting at an irrational 93.45 per cent loss since 2019, shares of Max Resource are currently priced for exponential upside, as more drill targets based on high-resolution magnetic and radiometric survey data, as well as ongoing mapping, sampling and geochemistry, ride the tailwind of copper demand to wider market awareness.
When the junior miner begins drilling later this year – self-funded with almost C$8.7 million in cash as of Q3 2023 – it will do so on concessions that span less than 20 per cent of its 1,000 square km land package, leaving plenty of room for additional copper-silver prospects to be delineated, given prospecting and drilling results to date, propelling CESAR ever closer to identifying an economically extractable deposit.
While the CESAR project is strategically positioned to serve the global copper market, with the United States to the north, and Europe, Africa, and Asia to the east, Kassim-Lakha noted that Max would not have to do business anywhere other than Colombia to generate robust shareholder returns.
“We’re a different type of deposit,” he said in a recent interview with Stockhouse. “We’re a different kind of beast. The Cesar Basin has the potential to become a world-class copper-silver region in Colombia, with only 1 per cent of the country’s land package in the resource space producing something outside of oil and gas, and only 2 per cent having been explored. Colombia is moving towards an energy transition, and Max Resource is positioned to expedite it, with a resource at any one among AM, Conejo or URU capable of becoming a company maker.”
Matich echoed this sentiment, adding that “we’ve had representatives from numerous global miners and institutional investors on site, even before we had a drill hole,” highlighting the appeal Max Resource is building among major players, who will only knock on the junior miner’s door with increasing frequency at it expands mineralization on its 100-per-cent-owned land package.
As Max connects the dots between AM, Conejo and URU, investors looking for undervalued exposure to an expertly managed, potentially district-scale asset, should not hesitate to put the junior copper stock through a full due diligence process.
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Post by likeike on Apr 4, 2024 14:43:37 GMT
by @goldpan on 3 Apr 2024, 20:19 Bonterra Resources - Phoenix Rising From the Ashes #CEOStockResearchComp BTR.V Disclosure: I have a beneficial long position in the shares of one or more of the companies discussed in this article, either through stock ownership, options, or other derivatives. I wrote this article without external assistance, and it expresses my personal opinions. I was not compensated for this article, and I have no business relationship with any company whose stock is mentioned in this article. Micro-caps in the junior gold mining sector have been awash with a similar story line. Difficulty to raise funds, amidst periods of sparse cash. With gold reaching ATH's on a monthly, and quarterly basis, things are about to change. Big time! Mining jurisdiction plays a key role in property acquisition. The Abitibi region in Québec is among the cream of the crop. Bonterra Resources, along with long term share holders, have had a relatively long journey, if not a rocky one. Beginning with discovery of the Gladiator deposit. The subsequent early stage merger with Metanor, allowed for the acquisition of the Barry Project, in addition to the Bachelor Mine/Moroy deposit. And importantly, the Bachelor mill, and tailings management facility. During this drawn out process, management through extensive exploration drilling, managed to expand it's resources to a a sizeable 3.1 million ounces in a 43-101 RE. More impressive still, and little known, is the fact it has drilled 118000 m subsequent to the reserve estimate published in June, 2020. Early interest was evident, as Kirkland Lake, Eric Sprott, Wexford Capital, and Osisko Mining all had significant shareholdings. Agnico Eagle currently holds a 7.3% interest, while Wexford Capital is the controlling stakeholder with a 19.9% interest in Bonterra Resources. Last November, Osisko Mining completed a definitive LOI , a 70% earn-in j/v on Phoenix Properties, with Bonterra. OSK, as operator has provided Bonterra with 5 $million cash upfront, with 30 $million in exploration drilling expenditures over 3 years. Moreover, Goldfields committed 1.2 $billion, through entering into a 50% j/v on neighbouring Windfall Property (7.4 million ounces @ 10 g/t 43-101 RE) with Osisko Mining, including future regional discoveries (GFI.US providing 75 $million in exploration drilling expenditures over 7 years).. After all permitting is complete, this partnership essentially allows Osisko Mining shared funding for construction of a future mill and tailings management facility., through to production. When you consider the enormous land package held by Osisko Mining, Phoenix Properties (Barry and Gladiator 3 million ounces gold) Duke Property and Lac Barry Property - all within 15 km of the future Windfall mill and tailings management facility. Power has recently been secured through a historic MOU agreement with the Cree First Nation of Waswanipi. Metanor Intersects 70.9 g/t Au Over 2.6 m on the Barry Property Adjacent to Osisko Mining's Windfall Property Marketwired October 31, 2016 VAL-D'OR, QUEBEC--(Marketwired - Oct 31, 2016) - Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to announce that it has intersected 70.9 g/t Au over 2.6 meters in the Moss Sector located north-east of the Barry property and south-west of the Windfall property belonging to Osisko Mining. This drill hole intersects two gold bearing zones associated with sulphide (15%) in proximity to a regional fault. As per the drill holes, this dominant geological structure has a minimal length of 6 km, toward the Windfall property belonging to Osisko Mining. A segment of 3 km of this structure extends on the Barry property belonging entirely to Metanor Resources. The drill results obtained thus far show high gold values and more assay results are pending. In addition, the drill campaign continues in the Moss Sector. Hole No BE-1-09 (m) 248.4 to 250.6 length (m) 2.2 grade Au (g/t) 9. 2 and 328.9 331.5 2.6 70.9 Zone Moss Moss is the initial focus of this years 35000 m exploration drilling program, with Osisko Mining as the operator. Drilling results are expected in Q3. The disconnect in juniors, and micro-cap explorers between a depressed share price, and new ATH price of gold, did not escape Bonterra Resources. With a current share price of 26 cents, and a market cap of approximately $33 million. And 100% ownership of a mill and tailings management facility, the potential for growth is exponential. Marc-Andre Pelletier, CEO of BTR, is an experienced mine builder, recently facilitating 100000 ounces / year gold production at the Kienna Mine for Wesdome. Future is bright for Bonterra Resources. With US $6 EV / ounce in-ground, compared with US $150 EV / ounce in-ground next door at Osisko Mining. The emerging Phoenix Windfall Gold Camp is exciting, with over 11 million high grade ounces combined within 15 km. And with Gold Fields partnership with Osisko Mining next door, and Agnico Eagle a large shareholder of Bonterra Resources, the Abitibi Greenstone Belt will continue it's legacy in the generations to come. M&A enables dreams to become reality. btrgold.com/wp-content/uploads/2024/02/BTR-Corporate-Presentation_24.02.01.pdfbtrgold.com/ |
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Post by likeike on Apr 4, 2024 15:11:18 GMT
Pacific Empire Minerals Sits in Forest of Copper Elephants in BC
Bob Moriarty
Archives
Apr 4, 2024
Regular readers of 321gold are well aware that I think that sentiment provides the most accurate information for knowing when we will find a bottom or make a top. I have written half a dozen pieces in the last few months and made it clear that I saw a bottom being formed in gold stocks. Now with new record high prices for gold days in a row the question has come up, “Just who is driving the price of gold?”
Clearly, we are in a bull market for both gold and silver. Robert Sinn did an excellent job of summarizing the issue. As I write gold went up seven days in a row and silver just broke out above $26. I would be happier if gold and silver slowed down for a short correction. But the real issue has to be who is controlling the price? I’ll go back to my sentiment indicators to read the tea leaves.
First of all, investors need to understand that the metals are different investments than the shares of mining companies. Just because gold goes up and hits a new high above $2300 doesn’t mean that all gold stocks will also go up but most will. In a real bull market accepted by all investors, the shares will go up hundreds of percent more than the metals.
The ETFs are still selling gold and gold shares. Sentiment as measured by the DSI has not hit ball busting numbers. DSI for both gold and silver is 88 as of April 2nd. That will not mark an absolute top.
So, if the ETFs are selling and gold shares not responding in as positive way as they have in the past, someone is still driving prices higher.
I think you need to look to China and with perhaps some contribution from Russia. Be honest. The MIC of the US is at war with both China and Russia. Over 700,000 Ukrainian soldiers are “missing.” They are called “missing” because the Zelensky government would rather spend money on coke than benefits to bereaving families. They are dead.
And the US/Zionist Cartel is busy with the biggest genocide of the last eighty years in Gaza and the West Bank. What is happening in Gaza is part of a plan to blow up the Al-Aqsa Mosque so the Zionists can build the Third Temple on the remains. When that happens, the US will have World War III then Brandon needs to cancel the election that he is sure to lose.
What is happening in Ukraine and Palestine has far more to do with Brandon and Bibi doing anything in their power to stay out of jail rather than any conquest of territory.
Since NATO and the US have made it clear that Russia is a target, they have pushed Russia and China together by the use of sanctions and seizing 300 billion in assets. The same US military that got booted out of Afghanistan with their tail between their legs naturally felt that since goat herders were too good at war so the US needed to fight someone who wouldn’t fight back.
I was in a war. The “leadership” of the US now from Brandon on down to the toothless-loser generals on CNN and Fox are delusional. NATO has lost the war in Ukraine and Israel has lost the war in Palestine.
And I’ll point something out that no one else seems to have the guts to say. As an occupied power, the democratically elected and founded by Israel Hamas government has the right under the Geneva Convention to self-defense including the right to resist.
The attack by Hamas on October 7th was perfectly legal. Hamas has a right of self-defense. The ICJ ruled ten years ago that as the occupying power, Israel, does not have a legal right of self-defense. You can whine all you want if you are a supporter of mass murder as the US Congressman called for a few days ago.
Most of the 1100 Jews killed on Oct 7th were either police or military (450) or murdered by out-of-control IDF pilots and tank commanders who would rather kill innocent Jewish civilians than allow them to be captured and used as hostages. When you read about all the hostages being held by Hamas has your source even bothered to mention the 9,000 hostages held by Israel? Hamas was collecting hostages, not raping or chopping off the heads of babies. The IDF lied as they so often do.
China and Russia both realize the US Empire is totally out of control. Why would they want to keep their reserves in investments from a country that wants to destroy them? They are buying with both hands and dumping the USD. Why would they want to own the debt of their enemy?
Gold may well mark the end of the US peso as a reserve currency. If so, the price of gold and silver will be a lot higher than it is today.
I wanted to find a resource stock that had been absurdly cheap, has climbed a lot in this rally and seems to have a valid business plan. The best one I could come up with was Pacific Empire Minerals. (PEMC-V)
PEMC was as cheap as $.01 in late December. Since then, it has gone as high as $.08 a share and settled down to $.055 to $.06 a share. That’s still a 500% return in just over three months. There are a lot of similar shares that are going to do the same thing as PEMC.
Pacific Empire has a 15,400 Ha copper/gold project in central BC near the Mount Milligan copper-gold mine and the Northwest Copper’s Kwanika copper-gold property. The Trident and Pinnacle projects have had a number of owners over the fifty-five years since the first discovery. Drilling by prior operators have shown good copper values suggestive of a possible copper-gold porphyry deposit.
Previous drilling at Trident showed values of 0.84% copper for 45.7 meters and 100 meters of 0.59% Cu and 0.18 g/t Au. For a comparison Hercules Silver drilled 185 meters of 0.84% copper in Idaho and now sports a $200 million market cap.
One of the best technical tools to use when searching for a copper-gold porphyry is a Mobile Magnetotelluric Survey. PEMC just completed a 164 line-km study with results due in a few weeks. The company plans a summer/fall drill program at Trident. The Mobile MT survey should validate their technical teams drill program.
There are two issues that will affect the price of the shares in the short-term future. There was a $.01 placement done in December that comes free trading at the end of April. Naturally it is reasonable to expect that some shareholders will sell shares from the PP to book profits. And the company will need to raise the money for a drill program.
Their timing is excellent. Copper is over $4.21 and gold is at an all-time high in the USD at just short of $2300 an ounce.
Pacific Empire is an advertiser. I have participated in two private placements so naturally I am biased. Do your own due diligence.
Pacific Empire Minerals Corp
PEMC-V $.06 (Apr 03, 2024)
PEMSF-OTCBB 125 million shares
Pacific Empire Minerals Website
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Post by likeike on Apr 16, 2024 13:00:25 GMT
Fathom Intersects Rottenstone-Like Nickel Tenor in Drillhole AL24077 at the Albert Lake Project
Newsfile Corp.
Tue, April 16, 2024 at 4:44 a.m. PDT·14 min read
In this article:
FNICF
-10.74%
OTCM
-2.63%
Calgary, Alberta--(Newsfile Corp. - April 16, 2024) - Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) (the "Company" or "Fathom") is pleased to announce results of the Q1 drill program at the Company's 100% owned Albert Lake Project. Additionally, effective April 8, 2024, drilling has been completed at the Gochager Lake Project. Assays for the Gochager Lake project are expected to be released by the end of May.
Highlights of Q1 Albert Lake Project drill program:
Six (6) drillholes (AL24075 - AL24080), totaling 1,386 meters drilled at the project (Figure 1, Table 1).
Drillhole AL24077 intersected 0.42% Ni over an intersection of 2.01 meters (Table 2).
Importantly, this nickel mineralization is hosted in orthopyroxenite. Orthopyroxenite is part of the host rock assemblage recognized at the historic, and very high-grade Ni-Cu+PGE Rottenstone deposit located approximately 1.2 kilometers to the northeast of AL24077 (Figure 1).
Also of importance, the AL24077 nickel intersection has a very high nickel tenor (~10%). Typical Rottenstone mineralization has a nickel tenor of in the 6-10% range (see Table 3, Figure 1).
Shallow off-hole BHEM conductivity anomalies were detected in all drillholes surveyed.
Ian Fraser, CEO and VP Exploration stated, "The elevated nickel concentration in Rottenstone-like ultramafic rock and the very-high associated nickel tenor identified in our drillhole AL24077 is a very significant development. We recognize high nickel tenors associated with Rottenstone-type mineralization and in ultramafic rock occurring along strike and in the structural trend that hosts the historic Rottenstone deposit / mine. The 10% nickel tenor defined in intervals comprising <3% sulphide in drillhole AL24077 indicates that net-textured to massive sulphide mineralization occurring along strike, and most likely at depth, within this same ultramafic unit could develop into a mineral deposit with metal grades similar to the historic Rottenstone deposit. We think the robustness and size of the multi-element soil geochemistry anomaly around AL24077 indicates chemical contributions from a large mineralized ultramafic body in the footprint of this soil geochemistry anomaly. The Company plans to further evaluate this robust soil geochemical anomaly by undertaking detailed surface geochemistry and geophysics to reconcile soil geochemistry with surface and BHEM anomalies. Understanding the coincident geochemical and geophysical responses coincident with the ultramafic stratigraphy in AL24077 will help guide the next phase of drilling. A nickel tenor of 6-10% is a feature of the Rottenstone Deposit which carried exceptionally high nickel grades. Identification of high nickel tenor 1.2 km south of historic Rottenstone, and within the multi-element soil anomaly is another very significant clue in our quest to discover a large nickel deposit with Rottenstone-like grades. More work is required; however, this is another important development at the Albert Lake project. We are getting closer."
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Post by likeike on Apr 22, 2024 15:32:15 GMT
by @criticalinvestor on 22 Apr 2024, 07:24 Silver North Resources Raises C$650k In Non-Brokered PP This article was originally published on www.criticalinvestor.eu, a platform for junior mining investors. To never miss a thing please subscribe to my free newsletter! As the Israel-Hamas conflict quickly escalating with Iran’s involvement at the moment, and Russia chipping away diligently at Ukraine’s defences due to outnumbering men and weapons, precious metals are doing very well at the moment. Silver North Resources (SNAG.V), focused on silver, profits from this as the share price doubled from the recent bottom levels, and managed to raise another C$650k to pay the bills and prepare for drill programs at their fully owned flagship Haldane silver project. All pictures are company material, unless stated otherwise. All currencies are in US Dollars, unless stated otherwise. After the name change and roll-back were executed in August 2023, C$815k was raised on October 19, 2023, too late to do the planned autumn exploration because of the upcoming winter break in the Yukon, and not enough to complete a full drill program at Haldane. General mining sentiment was down the drain last year, and only picked up right before PDAC as gold started shattering all-time highs on the war drums in Ukraine and Gaza. Although war isn’t exactly my favorite catalyst, the rising gold price and copper doing very well on short- and long term shortages could kickstart the next metals bull market in my view. As silver usually follows gold in some fashion, and certainly is doing so now, this could bode well for Silver North Resources. The Silver North chart isn’t following suit yet, akin to many other explorers as high metal prices don’t translate directly into high equity prices yet, due to strongly inflated costs in mining: Share price 3 year period (Source: Tmxmoney.com) As you can see, Silver North is still completing a bottoming process, but at least has come off rock-bottom levels of 8-10c now, trading around 16c. As always I’m curious about strategy, and since the markets are slowly heating up again I’m wondering if merging with a cash rich shell or junior, potentially with a solid silver asset, could bring sufficient scale in order to raise easier? Or does management feel they can get to a significantly higher market cap in an organic way, by just returning drilling (very) strong results and using an eventual precious metals bull market to their advantage? He stated: “First of all, any investor in this space should understand that explorers, and especially the early stage explorers get hit the hardest in a downturn and are the last to move in an uptick, but on the other hand have the largest upside potential. Brokers in town were telling me in January and February that the bigger market caps were getting interest from clients, but that was not translating to the small explorecos like us. It is happening now but it is a trickle comparatively. This will change over time if silver remains strong and of course with strong drilling/results etc. We are always looking for opportunities whether it’s a merger or an acquisition and we have been doing just that through the winter. But the fact is, nothing we have seen on the acquisition side offers the same potential return as Haldane and the effective cost of capital in a merger can be the same as a financing, except it being a much slower process and with the added corporate costs of executing that transaction. Haldane is our bar, and it is the best opportunity to add value through a discovery that we have seen. As this market uptick evolves, the biggest wins an investor will have will be from holding juniors that make new discoveries. This is THE reason to invest in discovery stage companies. Of course, during a downturn this can be difficult but as we come into a stronger market and capital flows to the earlier stage stories that have been largely ignored, there are some excellent opportunities for investors to benefit from. We have two excellent discovery opportunities at Haldane and Tim and with programs at both of those projects this year we expect to have news flow from May through the rest of 2024 and potentially into 2025, which should provide great support for our share price. The real win is great results that start to prove out our Haldane targets and discovery results from Tim.” With the C$0.6M already in the treasury, the recently closed financing brought the total cash position to C$1.0M. Silver North has some flow through (~$350k) in the treasury that is earmarked for drilling, but this latest financing is meant for working capital for day to day operations/marketing and any potential acquisitions. With Yukon drilling cost currently at a going rate of C$600-800/m, Silver North doesn’t have the means right now to conduct their intended 2,500m drill program, which really is a minimum for high grade vein drilling at depth (below 200m) in Keno Hills territory. Earlier this year, Silver North intended to commence drilling before the end of May, when the spring break up had ended and roads would be dry and firm, as always depending on funding. CEO Weber explained to me what his updated plans are with the current treasury, and when he intends to raise more: “With the effective length of our field season (which can extend into winter) we can start later in summer, so we can be flexible with start dates. There isn’t any reason to start earlier, especially since the Tim program will be starting early in the summer. A staggered start works very well for us logistically and has some benefits in terms of financing the Haldane program.” Silver North was planning to target the extensions down plunge on the West Fault target where high-grade silver mineralization has been identified over an area 100 meters by 90 meters in size, and on two structural levels within the West fault structure. If funding permits a larger program, this may also include airborne electromagnetic and magnetic surveys to help map lithologies, refine target structures (strike extensions and offsets) and potentially identify new target structures that may be silver bearing. This work would be followed up by trenching where applicable, and eventually diamond drilling. As a reminder regarding Haldane: I have always loved the geological thesis behind this project, as the host rocks of Haldane clearly resemble the geological makeup of the rocks that host the abundance of high grade silver mines and deposits the Keno Hill Silver District is famous for, with the two zones separated by layer of overburden as can be seen on the map below (and potentially even connected below that overburden). According to CEO Weber, he believes there is Keno Hill Mine (Hecla-owned) potential to be found at Haldane, at similar average grades to what is seen elsewhere in the district. With the somewhat recent revelation that these deposits have excellent depth potential for expansion, Haldane (and Keno Hill District targets in general) have the potential for deep mineralization. Looking more into geological detail: the orientation of the rock units at Haldane varies slightly from the rest of the district, so it might be that a later fault exists between the two areas. Weber also thinks that the grey quartzite may actually be present in certain areas of the overburden-filled valleys (light yellow) considering the quartzite and silver-lead-zinc occurrences showing up on the north side of the valley. He also believes the quartzite continues below the orange-brownish Sourdough unit, so there is a lot of exploration potential. In general, Yukon Government geologists have mapped the effects of glaciation in this area and describe the glacial advance down the valley from the east, terminating at Mt Haldane. In effect these glaciers have scraped off the weathered rocks in the broad valley that dominates the district, exposing fresh, unoxidized mineralized zones in the quartzite, which could be found, explored and mined easily by the early prospectors. As Mount Haldane towered above the glacier, the weathered rocks are still intact and veins within will be heavily oxidized, causing Silver North to drill through this weathered layer to test fresh sulphide mineralization, with hopefully the same high grade silver beneath it, resembling the rest of the Keno Hill district. This has been born out at Silver North’s West Fault discovery, where the initial shallow drill intersections intersected lower silver grades in well-developed, but highly weathered veins, where deeper intersections hit the same style of veins with high grade silver mineralization. Drilling would aim to build on previous intersections at West fault including 3.14m @ 1,315g/t silver, 2.43% lead, and 2.91% zinc (true widths), with grades and width increasing at depth. At least four holes were planned to test the extensions of this mineralization on 50m stepouts. Drilling was also planned for the Bighorn target located 3 kilometers to the northwest of the West Fault. The Bighorn target was identified from soil geochemical sampling that returned anomalous values for lead and silver in soils. The only drill hole at this target returned 125.7 grams per ton silver and 4.39% lead over 2.35 metres from previously unrecognized vein structures. Trenching and groundwork in 2022 programs was able to refine targeting at Bighorn, and additional drilling will test this target for its potential to host wide, high grade silver mineralization. Additional drilling will also target the Main and Middlecoff targets, and any targets generated from the geophysical data and trenching. An interesting development is that Hecla Mining reached commercial production at their nearby Keno Hill silver mine in Q4, 2023, achieving 1.5Moz Ag for FY2023, having solved the mining/milling issues that plagued new acquisition Alexco. The AISC is forecasted to be US$13.50-16.75/oz Ag, which is solid at a current silver price of US$28.5/oz Ag, and will likely come down more this year, as Hecla aims at ramping up to nameplate production, which could come in at an estimated 2.5-3 Moz Ag/pa. This opens up potential for Silver North to work on a resource at Haldane, capable of being trucked to Hecla’s Keno Hill mine, drastically reducing capex. Besides Haldane, Silver North owns the Tim property, subject to an earn-in agreement with Coeur, which can earn a 51% interest in the Tim Property by completing all exploration expenditures and cash payments due by December 31, 2026, which will total at least C$3.55M and C$425,000 in cash payments. Coeur can bring its interest up to 80% by making additional cash payments of C$100,000 per year, completing a positive feasibility study and informing Silver North by December 16, 2028, of Coeur’s intention to develop a mine on the property. Coeur is the project operator and is currently In the final stages of planning the 2024 program, laying out a 2,000 metre campaign with drillholes from up to six pad locations. Coeur is committed to a $700,000 program, consisting of mostly fairly shallow drilling as they will likely test down dip from surficial showings. With their existing infrastructure at Silvertip, only 19 km away by road, they expect the drilling costs to be relatively low, and they are eager to apply the knowledge and expertise gained at Silvertip to make a new high grade silver discovery at Tim. As Silver North had also shortlisted M&A and property acquisition favourites during the winter, I was wondering if CEO Weber had potential candidate projects on his radar, in order to expand their silver portfolio. He told me that there are some strategic target acquisitions that they are working on that they are hopeful that can be completed in the near to mid term. Since Silver North is trying to divest Stateline and Klondike since the change in direction, and as sentiment is turning, I was wondering what the current state of affairs is. Are there more potential suitors kicking tires? CEO Weber elaborated: “I think the sentiment is changing but resource-stage projects (or near resource stage) are the still the most sought after targets. It will take some time before that trickles down to discovery stage projects so I wouldn’t say we have seen much change at this point.” Conclusion Hopefully we will have a precious (and other metals) bull market on our hands from now on, and the company will be able to raise more during the summer, enabling them to complete funding for the planned 2,500m program or maybe even more. Let’s see if their work could entice investors, maybe even somewhat akin to what recently happened to other client Vior, where a rewarding pile of money, larger than their market cap at the time, was raised based on a few years of hard, high quality preparation work, not unlike Silver North has done. On the other hand Silver North has the option agreement with Coeur on their Tim Silver project, with Coeur having commenced drilling, with results coming out later in the summer. Let’s see what this summer can bring for this tiny silver junior. Stay tuned! I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter, in order to get an email notice of my new articles soon after they are published. |
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