Quadruple-Witching Leading into Saint Paddy's Day

Source: Michael J. Ballanger for Streetwise Reports 03/16/2019 Precious metals expert Michael Ballanger riffs on St. Patrick’s Day, COT reports, quad-witching weeks and gold. I was sitting in our local Port Perry pub this week when I overheard a couple of the local senior citizens discussing the upcoming arrival of the Saint Patrick’s Day celebration where everybody dons a green shirt or a green tie or a green glass of beer and announces to the world that they have “Irish blood” flowing through their veins. Seizing upon yet another excuse for the initiation of “unnecessary drinking,” Canadians of all shapes, sizes, colors, creeds and denominations are suddenly transformed into quasi-Leprechauns to the extent that even my Jamaican ex-classmate from the 1970s would call himself an “overdone Irishman” in order to qualify for stupefaction. It never ceases to amaze me how my Canuck brethren will leap upon any and all excuses with which to justify inebriation, present company of course excluded. In fact, I proudly declared to the world and in fact, to all of my actual friends of Irish lineage, that only true Canadians of colonial fiber and soul will raise a glass with nary a hint of excuse nor heed of time of day. The Canadian “Clarion Call To Imbibe” has been best described as “The Leafs won last night!” or “There was a goose on the lawn this marnin’” or “I woke with a pulse!” but what is truly memorable is the feeling you get when it’s March … Continue reading

Firm's British Columbia Property Returns 4.81% Light Rare Earth Oxide

Source: Streetwise Reports 03/16/2019 This Canadian company intends to build upon these initial positive results. Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB) announced in a news release the initial composite head assay results of the 30-ton bulk sample taken from its Wicheeda property in British Columbia. Highlight assay results, determined by the firm SGS Canada Inc., included 1.77% lanthanum oxide, 2.34% cerium oxide, 0.52% neodymium oxide and 0.18% praseodymium oxide—for a total of 4.81% light rare earth oxides. The significant presence of praseodymium could impact advancement of Wicheeda from an economic standpoint, “given recent indicative light rare earth elements oxide prices and their potential impact on Wicheeda, which has been historically viewed as a cerium-lanthanum-neodymium deposit,” the release noted. Defense Metals will use these findings when analyzing results of subsequent tests, such as bench-scale flotation optimization and hydrometallurgical work. The company will follow those efforts with larger-scale pilot plant testing on the entire 30-ton sample to better understand the deposit and potential development of it. Max Sali, CEO and director of Defense Metals, stated, “We look forward to building on these positive initial results, which will form the basis from which to gauge the success of subsequent test phases including bench-scale flotation optimization and hydrometallurgical testing, which are preparatory to initiation of larger scale pilot plant testing on the full 30 tonne sample.” The company explained that neodymium/praseodymium is used to create “high-power neodymium-iron-boron (NdFeB) magnets,” which are a key technology in the defense, clean energy, consumer electronics and electric vehicle sectors. … Continue reading

Resource Firm Confirms Graphite Carbon Below Surface Saprolite at Guinea Deposit

Source: Streetwise Reports 03/16/2019 The next step for the Canadian company is a mineral resource update for this asset. SRG Graphite Inc. (SRG:TSX.V) announced in a news release the final results from its 2018 drilling campaign at its Lola graphite deposit in Guinea, West Africa. These results are from 71 boreholes, ten of which were drilled at depth to confirm the presence of graphitic carbon (Cg) within the rock assemblage below the weathered, graphite-rich saprolite at the surface. The new findings confirmed that to be the case. SRG reported these highlight assays: Hole LL39-162665: 0 meters (0m) at 7.74% Cg including 10.50m at 13.46% Cg, from surface Hole LL36-369056: 44m at 5.56% Cg including 20.46m at 7.93 % Cg, from 2.6m Hole LL36-384159: 72m at 6.50% Cg including 19.00m at 9.25% Cg, from surface Hole LL39-085636: 45m at 4.94% Cg including 91.85m at 6.90% Cg, from 8.4m Hole LL42-037030: 65m at 4.16% Cg including 116.81m at 6.18% Cg, from 4.8m The 2018 drill program encompassed 638 boreholes for 22,239m. Drilling conducted to date covers about 60% of the deposit’s surface footprint, roughly on average the first 30m of depth from the surface. Results from all of these boreholes will be included in an updated resource estimate for the feasibility study anticipated in H1/19. “We are very pleased with the 2018 drilling campaign. The results of these latest drill holes continue to show the size potential of the deposit,” said Dr. Marc-Antoine Audet, lead geologist. “We are also excited with the … Continue reading

Sesmarias Stepout Drilling Successful So Far for Avrupa Minerals

Source: The Critical Investor for Streetwise Reports 03/16/2019 The Critical Investor discusses insights management has gleaned from recent drilling and why they have the potential to cause a share re-rating. It took Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) a few weeks longer than anticipated to release the first drill results of the Q4 2018 program on the Sesmarias project, part of its Alvalade license located in Portugal, as bringing good news right before PDAC usually generates healthy attention, but the numbers came out pretty interesting anyway in my view. The self-funded 2018 drill program appears to be a real eye-opener for management, as the recently completed 2,498 meters of drilling (6 holes) not only changed their insights on the position of the mineralized lenses discovered so far, but also showed other potentially mineralized structures by intercepting stockwork besides lenses. Step-out drilling of the known 10 Lens is also going according to plan, adding decent tonnage rapidly. Here is an overview of the identified mineralized envelopes/zones at Sesmarias:   The 10 Horizon as defined on this map from the February 11, 2019, news release has been promoted to the 10 Lens now, as sufficient drill results have been obtained so far. Management also provided investors with a schematic long section in the same news release, which is a conceptual drawing of geology and mineralized bodies: Highlights from the program include the following results according to the latest March 11, 2019, news release: SES026 intercepted 28.95 meters of 0.48% copper, 0.77 g/t … Continue reading

Takeaways from MAG Silver's Annual Event at PDAC

Source: Streetwise Reports 03/15/2019 A Macquarie report discussed a handful of highlights from management’s presentation. In a March 6 research note, Macquarie analyst Michael Gray reported the key points from MAG Silver Corp.’s (MAG:TSX; MAG:NYSE.MKT) technical luncheon at the PDAC Conference. MAG President and CEO George Paspalas and Chief Exploration Officer Peter Megaw made the presentation, which took place “only days after Fresnillo’s strong signaling of an imminent positive Fresnillo board approval for Juanicipio,” Gray pointed out. A primary message at the luncheon was that the Juanicipio operation could start sooner and last longer, Gray noted. The infrastructure being built there is for a mine life that well exceeds the scenario outlined in the preliminary economic assessment and for a 4,000-tonne-per-day (4 Ktpd) operation. Whereas Macquarie modeled first production for Q1/21, MAG noted that it could happen even before H2/20. A second significant point is the Upper Mine design would potentially allow for 5,000 tpd of production from the Bonanza zone, which Macquarie considers likely achievable, indicated Gray. Such a scenario needs to be assessed for potential upside risk and added costs. Third, recent infill and expansion drilling at Juanicipio yielded “solid results,” Gray wrote, and “a new Pre-Anticipada hanging wall vein—this is a bonus.” Pre-Anticipada, which ranges from 0.6–3.2 meters in thickness and has “very good silver grades,” is interpreted to be a “second, deeper, “silver-rich vein outboard of Valdecanas.” Anticipada returned 3.8 meters at 227 grams per ton gold and 2.1 grams per ton gold, for instance. The … Continue reading

Rare Earth Element Project in Canada Advances

Source: Peter Epstein for Streetwise Reports 03/14/2019 Max Sali, CEO of Defense Metals, speaks with Peter Epstein of Epstein Research about the latest developments at his company’s REE project in British Columbia. Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB) is a great name. The company is defending against Chinese dominance of Rare Earth Elements (REEs), and Defense Departments require select REEs to defend their countries! Several REEs are very difficult or impossible to replace in critical applications, yet enable products essential to modern civilization. Any company outside of China that can reliably produce a few key REEs will have a license to print money. This week, SGS Canada provided select head assay results from a 30-tonne bulk sample. Four REE assays were reported in this press release. (See chart below.) Using the price/kg of each metal, the in-situ value is ~US$ 535/t. That’s equivalent to ~ 0.41 troy ounces gold or ~12.8 g/t gold. In the following interview of CEO Max Sali, readers will learn more about REEs and about Light Rare Earth Elements (LREEs), which REEs are in highest demand, and for which applications. Spoiler alert, neodymium and praseodymium are in the top four or five. I asked Max why his team believes that its deposit of LREEs might be economically viable given the odds stacked against any deposit becoming a mine. To finish off, we discussed some early-stage uranium assets the company picked up in the famous Athabasca basin. (See corporate presentation.) –Peter Epstein Please give readers the latest snapshot … Continue reading

Target Price Lowered on Goldcorp to Reflect Updated Model

Source: Streetwise Reports 03/14/2019 A CIBC report itemized the revisions and noted their cumulative impact. In a March 11 research note, analyst Anita Soni reported that CIBC lowered its price target on Goldcorp Inc. (G:TSX; GG:NYSE) to US$12 per share from US$12.50 (current share price is about US$10.93) after adjusting its model on the major “to reflect 2019 guidance, year-end results and technical reports.” Soni noted CIBC made three changes to its standalone model of Goldcorp and described what they were. In one, the analyst relayed, CIBC lowered its projected 2019 total production to 2.279 million ounces (2.279 Moz) from 2.324 Moz due to Goldcorp intending to lower output at Cerro Negro, Musselwhite and Porcupine. CIBC’s adjusted figure still falls within the miner’s guidance of 2.2–2.4 Moz of production in 2019. A second model revision involved increasing costs and all-in sustaining cost (AISC) to $503 per ounce ($503/oz) and $886/oz, respectively, up from $490/oz and $858/oz. Spurring this change, Soni indicated, were actual Q4/18 figures, 2019 guidance and recently obtained technical reports on Éléonore and Red Lake. CIBC’s new estimates are higher than Goldcorp’s projected ranges of $400–500/oz for actual costs and $750–850/oz for AISC. Third, CIBC raised its 2019 capex estimate on Goldcorp, to $936 million from $803 million to reflect increases at Cerro Negro and Peñasquito, Soni explained. Unlike the previous, the new dollar amount falls within Goldcorp’s guidance of $865–975 million. The result of CIBC’s new financial model on the gold miner lowered the net present value … Continue reading

Three Prospect Generators Have Exciting Year Ahead

Source: Adrian Day for Streetwise Reports 03/13/2019 Fund manager Adrian Day looks at three junior resource companies that are following the prospect-generator model. Midland Exploration Inc. (MD:TSX.V, 1.30) reported an early-stage copper-gold-molybdenum discovery in James Bay based on grab samples taken just prior to the end of the exploration season. Now, following soil testing and an IP geophysical survey at the 100%-owned Mythril, which seems to confirm and extend the possible discovery, Midland has announced a 2,000-meter drilling program to commence next week. The month-long program will consist of 12–14 shallow holes to test the various IP anomalies and showings, and which should be sufficient to confirm the mineralization from the grab samples. Though the stock price has moved up since the initial announcement, it has much further to go if drilling confirms the initial testing. Aggressive investors can add to positions ahead of the drilling. Meanwhile, Midland is advancing other projects, including a drilling program underway on the Jouvex joint-venture with Soquem to test new targets. Rare financing provides firepower for activities Lara Exploration Ltd. (LRA:TSX.V, 0.48) saw its stock move up, unusually, after announcing an above-market equity raise for C$2 million. Lara has traditionally had very little stock dilution for an exploration company, but a delay in receipt of $1 million expected last October pushed the company to raise money to avoid missing a field season of work. Several projects are active, with three expected to see drilling before summer. These include the Panalto project into which Capstone … Continue reading

Deposit's Updated Resource Estimate Increases Size, Confirms High Grades

Source: Streetwise Reports 03/13/2019 The company noted that the results justify moving the deposit into an early position in the British Columbia’s project’s mining sequence. Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced in a news release that the March 7 updated resource estimate for Iron Cap contains shows a size increase and confirmed the high-grade zones in the overall resource. The independent study, prepared by RMI, for this northwest British Columbia deposit encompasses all previous drill results along with findings from 18 holes and 20,341 meters of diamond core drilling done last year. The current total resources are 423 million tons (423 Mt) in the Indicated category and 1,899 Mt in the Inferred, which compare to 370 Mt and 1,297 Mt, respectively, on the previous estimate of February 2018. The update reflects an increase in Indicated resources by 0.46 million ounces (0.46 Moz) of gold and 177 million pounds of copper. Inferred resources also grew, by 7.45 Moz gold. As for grades, the Indicated category contains 0.41 grams per ton (0.41 g/t) gold, 4.6 g/t silver, 0.22% copper and 41 parts per million (41 ppm) molybdenum. The Inferred category encompasses 0.45 g/t gold, 2.6 g/t silver, 0.30% copper and 30 ppm molybdenum. The size and grade of Iron Cap’s resource, as reflected in the update, are such that Seabridge could move this deposit ahead of the Kerr and Sulphurets deposits in the mine plan’s sequence. Also, Iron Cap is closer to existing infrastructure and could be developed more quickly and at … Continue reading

New Results from Portugal Project Suggest Presence of 'Robust Mineralizing Event'

Source: Streetwise Reports 03/12/2019 This junior explorer will use these data to determine its next drill targets at the asset. Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) announced in a news release that the recent drill results from its Sesmarias project in southern Portugal demonstrate significant additional potential to upgrade the known mineralized system there. The drill program, which consisted of six holes totaling 2,498 meters (2,498m), explored new areas and “confirmed a new exploration and mineralization model for the district,” the release noted. The findings included intersection of mineralization in hole SES026 consisting of 28.95m of 0.48% copper and 0.77 gram per ton gold. This hole also extended the 10 lens to the north by 300 meters, taking its dimensions to 600m long by 300m wide by 25m thick. SES026 also identified possible new mineralization above the 10 lens, which both holes SES027 and SES029 also intercepted. Hole SES028, under the 8 lens, hit the border of a significant feeder zone stockwork that revealed anomalous gold, silver, copper, lead and zinc mineralization throughout its entire length, from 373.4m to 460.8m in depth. This further “supports that the Sesmarias system is a robust mineralizing event,” President and CEO Paul Kuhn said in the release. Finally, results confirmed the high-grade 2 lens is a “fault-bounded fragment of massive sulphide mineralization”; its origin has not yet been determined. Read what other experts are saying about: Avrupa Minerals Ltd. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article … Continue reading