Blue Sky Uranium Raises C$0.87M and Continues Exploration of Ivana Deposit; Newly Elected Argentine President Perceived as Positive for Mining

Source: The Critical Investor for Streetwise Reports 11/10/2019 The Critical Investor looks into the uranium explorer’s work in Argentina and the political situation in the country with the recent election of a new president. 1. Introduction It has been a quiet year so far for Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTC), as the uranium oxide spot prices dropped off again after a run-up in H2 2018, rising almost 50%, only to pull back another 20% or so from these heights as can be seen at this chart, which can be found on the website of Cameco: Nonetheless, as one of the premier low cost development plays in the uranium space, Blue Sky managed to continue working on its Amarillo Grande project in the Rio Negro province in Argentina, and recently raised fresh cash. This time it managed to get C$0.87M from the markets, earlier in July it closed a C$0.68M private placement. This is impressive, as uranium sentiment is not positive, and investors are not sure what to think of the newly elected president Fernandez in Argentina. He isn’t all that bad according to various sources, more on this later. As most exploration and drilling is very near surface, these new funds enable Blue Sky to continue working on its flagship Ivana project, which in turn could likely improve economics further. As a reminder, at a relatively (industry wide) low base case uranium oxide (U3O8) price of US$50/lb U3O8, the after-tax NPV8 is US$135.2 million and the IRR is 29.3%. … Continue reading

White Gold Delivers, Investors Don't

Source: Bob Moriarty for Streetwise Reports 11/10/2019 Bob Moriarty of 321gold discusses the stock price of this explorer with a major gold resource in the Yukon. White Gold Corp. (WGO:TSX.V; WHGOF:OTCBB) is one of those companies with great partners, Kinross Gold as well as Agnico Eagle, over 1.7 million ounces in a gold resources in one of the best gold camps in Canada but can’t seem to get any respect. At the end of December of last year the shares traded as high as $1.69 but have tumbled lately to a new yearly low of $0.73. I’ve said this before and I’ll keep saying it until everyone gets it. The key to making a profit in investing is to buy when things are cheap and sell when they are dear. White Gold has gone from $0.54 in September of 2018 up to $2 a month later and has dribbled back down. Surely there was a lot of potential to trade those shares at a profit in there somewhere. In spite of the bundles of crisp $100 bills being tossed on a bonfire by the Fed since a Black Swan event in mid-September that no one can seem to figure out what caused, speculators in gold got carried away. The open interest hit a new record high and lately the price dropped a lot as gold is making a perfectly normal correction. Generally we have a low in mid-summer and at the end of the year at Tax Loss Silly Season … Continue reading

Alianza Minerals Hits High-Grade Silver at Haldane During First Stepout Drilling

Source: The Critical Investor for Streetwise Reports 11/08/2019 The Critical Investor does a deep dive into this explorer’s drill program at its Yukon silver project. All cashed up after raising C$1.1 million in an oversubscribed financing in July, Alianza Minerals Ltd. (ANZ:TSX.V) was ready for its 2019 Phase II drill program at its flagship Haldane silver project, after the Phase I drill target defining program was completed earlier this summer, and drilling began in late August. The main focus for management were the new stepout targets like the Bighorn and Ross anomalies, and the extension of Mount Haldane Veins System (MHVS) targets, to indicate size potential, and are presented in red below: A total of 963 meters was cored in four holes. It took quite a while, according to management the assay lab was relatively slow, an issue several explorers are dealing with this year. On October 22, 2019, the company reported drilling had confirmed the presence of new silver-bearing vein targets at the Bighorn Zone. The first two holes of the program tested the Ross and Bighorn targets. One hole was completed at each of the Ross and Bighorn anomalies, with two holes targeting the A and B veins of the Middlecoff Zone in the Mt. Haldane Vein System target area. Highlights of the first hole HLD19-15 at the Bighorn Anomaly include 125 g/t Ag and 4.4% Pb over 2.35m from 154.15m depth. In itself this is not an economic intercept, as it would be a gold equivalent of … Continue reading

Lion One Hits Bigly

Source: Bob Moriarty for Streetwise Reports 11/07/2019 Bob Moriarty of 321gold discusses the implications of the drill results the company released at its gold project in Fiji. When I found out Quinton Hennigh was going to be a geological advisor to Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) back in early 2019, I wrote about them. They just announced results that pretty much prove what I was trying to say. In technical terms, they hit Bigly. Lion One talked about what they were aiming for in the drill program in a press release issued over a month ago as they began the drill program. They seem to have hit exactly what they were aiming for but are criminally remiss in not posting the latest press release on their GD web site. I shall chastise them severely. 2019-11-07 08:49 ET – News Release Mr. Walter Berukoff reports LION ONE EXPANDS NAVILAWA ALKALINE GOLD SYSTEM Lion One Metals Ltd. has provided an update on recent exploration progress at its 100-per-cent-controlled Navilawa alkaline gold project in Fiji. Drilling Highlights: The first of a series of four deep diamond drill holes, TUDDH493 oriented eastward at an inclination of 55 degrees, is nearing its target depth of approximately 600 m after undercutting the entire Tuvatu lode network near the bottom of the current delineated resource. This hole targets a particular area where several high-grade structures appear to be converging. Multiple mineralized intercepts are apparent in core from TUDDH493, most notably: a 11.3 m interval of quartz … Continue reading

For Skyharbour Resources, the Answers May Lie in the Basement

Source: Streetwise Reports 11/07/2019 The company is moving ahead with uranium exploration in the high-grade Athabasca Basin amid a changing supply and demand paradigm. Uranium development company Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB) holds six projects in the Athabasca Basin in northern Saskatchewan, home of the highest grade depository of uranium in the world. The company has been actively exploring and drilling the flagship Moore Lake project over the last several years and is planning an upcoming program that holds the potential to be a key catalyst in the near term. It acquired the project from the company’s largest shareholder and strategic partner, Denison Mines. Denison CEO David Cates sits on Skyharbour’s board. For its other five projects, Skyharbour employs prospect generation, bringing in partner companies to advance and fund exploration. Currently Skyharbour has deals on two projects. Orano, France’s largest uranium mining and nuclear company, is spending up to $8 million to earn up to a 70% interest on the Preston project. That project is located next to Fission Uranium and Nexgen’s high-grade properties. Plans for a 2020 exploration program are expected to be announced shortly. “Orano has been pretty aggressive with the exploration carrying out several drill and work programs over the past few years. They are a large company with a long history in the Athabasca Basin making them a great strategic partner to have,” Skyharbour CEO Jordan Trimble told Streetwise Reports. Skyharbour’s other partner is Azincourt Energy, which is smaller, and in a 2017 deal, the company … Continue reading

Base Metals Miner Posts 'Strong Operating Performance' in Q3/19

Source: Streetwise Reports 11/06/2019 The short-term outlook for the Canadian company is provided in a CIBC report. In an Oct. 25 research note, CIBC analyst Oscar Cabrera wrote that Lundin Mining Corp. (LUN:TSX) “continues to offer investors an attractive combination of a strong balance sheet, operating execution and financed brownfield growth.” This view comes after the metals producer posted “strong operating performance” in Q3/19, “supporting completion of expansion projects” and CIBC adjusted its model accordingly, Cabrera added. Upcoming near- and medium-term catalysts for Lundin Mining are development progress at Candelaria and Neves Corvo and expansion progress at Chapada via exploration. Lundin has a site visit scheduled at Chapada on Nov. 8, Cabrera reported. The analyst commented that how Lundin Mining next allocates capital, whether to continued growth or to shareholders, “will be important to rerate” the company’s shares. Further, expansion potential at Chapada should improve Lundin’s valuation that currently trails that of its peers. CIBC has an Outperformer rating and a CA$8 per share target price on Lundin, whose stock is currently trading at around CA$7.33 per share. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are … Continue reading

Q3/19 Active, 2020 Outlook Positive for Canadian Oil Company

Source: Streetwise Reports 11/06/2019 The producer’s Q3/19 financial and operating results are reviewed in an iA Securities report. In an Oct. 31 research note, iA Securities analyst Michael Charlton reported that Whitecap Resources Inc.’s (WCP:TSX) Q3/19 production was a beat and its new joint venture adds potential upside. In Q3/19, Whitecap produced about 68,255 barrels of oil equivalent per day (68,255 boe/d), which surpassed iA Securities’ estimate and was within guidance, Charlton noted. This resulted from Whitecap spending less capital than expected. The company is on pace to meet its average annual production of 70,000–72,000 boe/d with capital spending at about $400 million. “The quarter was active as Whitecap drilled 104 (89.9 net) wells, advancing all its core areas and enhancing and expanding its assets to maximize shareholder value, supportive of its long-term dividend and growth model,” Charlton commented. As for Q3/19 cash flow, it was about $154.3 million, or $0.37 per share, reflecting a sequential decrease of about 12% “but tight (within 1%) to our forecasts,” indicated Charlton. This resulted from, one, lower realized prices of $52.76 per barrel of oil equivalent (boe), down about 10% from Q2/19. Lower netbacks was a second contributor. They dropped by about 15% to $27.92 per boe due to reduced realized prices and slightly higher operating and transportation costs. Looking forward, Whitecap’s 2020 budget is between $360 and $380 million, annual production guidance is about 71,000–72,000 boe/d and plans are to drill about 150 wells, Charlton pointed out. “With the 2020 capital budget … Continue reading

Standard Lithium Arranges C$5 Million Convertible Loan Financing

Source: The Critical Investor for Streetwise Reports 11/05/2019 The Critical Investor delves into a lithium company’s financing and its implications. It seems more and more likely that Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX; FRA: S5L) is displaying a serious commitment of giant JV partner Lanxess these days, with construction of the demonstration plant advancing rapidly along the way. Standard managed to arrange a C$5 million (US$3.75 million) convertible loan and guarantee agreement with Lanxess AG (LXS:DE) on October 30, 2019, and has already been paid out to Standard. The proceedings will be used for the ongoing development of the mentioned demonstration plant, which is capital intensive. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in US Dollars, unless stated otherwise. According to the news release, the terms are as follows: “The principal amount of the Loan will be convertible at the option of the Lender at a rate such that for each C$0.80 of principal converted, the Lender will receive one common share of Standard Lithium (each, a “Common Share”) and one-half of a warrant to purchase an additional Common Share with an exercise price of C$1.20 per Common Share and a term of three years (each whole warrant, a “Warrant”). Assuming full conversion of the Loan principal, the Lender would receive 6,251,250 Common Shares and 3,125,625 Warrants. All securities issued upon conversion of the Loan will be subject to four-month-and-one-day statutory hold period from the date the … Continue reading

Bravada Gold: Checking Wind Mountain Economics at $1,500 Gold

Source: Thibaut Lepouttre for Streetwise Reports 11/05/2019 With gold prices above $1,500/ounce, Thibaut Lepouttre of Caesars Report runs the numbers to see whether this mine might be worth taking another look at. Introduction When the gold price started its move during the summer, someone asked us, “Do you know any ‘old and forgotten’ projects that aren’t very appealing at $1,250 gold but have a lot of leverage on the gold price that would make it viable at $1,500 gold?” An interesting question. As a lot of projects get recycled during good years in the mining sector, you tend to see the same projects again and again and again. Sometimes the projects have a different name, sometimes the focus is on a different commodity, sometimes there is a new management team with a genuine desire to look at something with a different perspective. Quite often projects get recycled for a quick promotion tour and subsequent pump to offload paper into the hands of unsophisticated shareholders. But sometimes projects are just gathering dust on the shelves—forgotten by investors and placed on the backburner by management teams while waiting for better market conditions. One of those projects that is “okay but not appealing” at $1,250 gold is the Wind Mountain project in northwestern Nevada, owned by Bravada Gold Corp. (BVA:TSX.V). Revisiting the Wind Mountain project at $1,500 gold and $17 silver As the market still isn’t too keen on funding pure exploration stories, perhaps Bravada Gold could also revisit its Wind Mountain project, … Continue reading

Defense Metals Drills High Grade REOs

Source: Bob Moriarty for Streetwise Reports 11/05/2019 Bob Moriarty of 321gold dives into rare earth elements and one company exploring a high-potential property in British Columbia. I know of no sector in the resource space as hard to get a handle on as that of the Rare Earths or REOs, AKA REEs. In the last twenty years I have only come across one investor who actually understood which companies had red meat and which were pushing tofu. Since 321gold is a tofu free zone, I’ve been hesitant to even start writing about the sector. Months ago one of my advertisers, Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTC; 35D:FSEQB), approached me about writing a piece about them and their potential. More or less I agreed since I haven’t written anything about REEs for the longest time but I insisted they hand me something that would make it clear to my readers just what their potential was. To be clear, REE or REOs are not rare. There are seventeen elements called Rare Earths and while they are quite common, it is not common for them to be concentrated sufficiently to justify the expense of exploration and building a processing facility for mining them. Defense Metals has a project they call the Wicheeda property located in central British Columbia about eighty km north of Prince George. The property has excellent infrastructure, is on a primary forest service road connecting to a major highway and has experienced mining professionals located nearby. My primary problem was a … Continue reading