Burbanks gold mine gets new lease on life amid Coolgardie renaissance and WA’s latest boom ABC News
Month: May 2022
- Gold prices ease as Fed affirms aggressive policy stance CNBC
- Gold prices slip as Fed affirms aggressive policy stance Reuters
- Gold ekes out gain Thursday as dollar pulls back and stocks rally MarketWatch
- Gold Price Analysis: XAUUSD holds above 200-DMA near $1850 as focus turns to Friday’s US inflation data FXStreet
- $1,850 gold maybe more important than ever | Kitco News Kitco NEWS
- View Full Coverage on Google News
Gold prices are good for miners, including juniors; Huge profits can be made – Dan Wilton Kitco NEWS
How to get Gold Ingots in V Rising | Where to farm Gold Jewelry VG247
Source: Streetwise Reports 05/24/2022
Red Metal is fitting together the puzzle pieces of a promising copper project in Chile.
A last-minute impulse to drill an intercept visible on the surface, but not included in its 2020 drill program at its flagship Carrizal project, produced a welcome surprise for Red Metal Resources Ltd. (RMES:CSE; RMESF:OTCBB).
“Copper is a very visual thing. If you have copper that you care about, you can see it in the rock,” Red Metal’s CEO, Caitlin Jeffs, told Streetwise Reports. “We had seen this intercept and, without any prep, decided to drill it as we were moving the rig off the property on the last day of our 2020 drill program at Carrizal.”
That hole, FAR-22-020, previously sampled on the surface in 2012, was a six-meter quartz vein with visible chalcopyrite and chalcocite mineralization. Jeffs said, “FAR-22-020—which we’ve named the Gordal vein—is a different host-rock type from our previous vein intercepts. We drilled just 150 meters and got this beautiful intersect.”
Upcoming geological mapping will focus on careful examination of the strike extents of the Gordal vein to develop future drill targets, along with detailed structure and alteration mapping across the entire Carrizal property to further delineate other veins and alteration corridors on the property.
The Carrizal project is in the prolific Candelaria iron oxide copper-gold belt of Chile’s coastal Cordillera. Jeffs described the property as “pockmarked with holes from decades of artisanal mining that you can even see on Google Earth.” Equally important, the property is adjacent to a historical mine, and Red Metal can track its veins “right onto the historical mine site.”
As previously reported, the 2020 drill program included nine holes and 2,010 meters of drilling. It targeted down-dip extensions of known mineralized zones and tested new zones.
What Sets Red Metal and Chile Apart
Unlike other copper explorers working in the Chilean Andes, part of Red Metal’s property is at a low elevation in the coastal Cordillera. According to Jeffs, this has several advantages: First, the property is closer to infrastructure and can be mined during the winter months. “June and July are the two best months for us. Explorers at higher elevations are not working then, so everything is cheaper and easier to access.”
Second, Carrizal is only 23 kilometers from the Pacific Ocean. This is important for both logistical and resource reasons. Chile is in a long-term drought, with residents, agriculture, and industries of all sorts competing for a scarce resource. Increasingly, all sectors are looking to desalination to ease supply concerns. Some mines are building their own desalination plants or partnering with specialty firms. (One example is World Copper’s partnership with Desaladora Rosario SpA, recently explored in Streetwise Reports. Others are investigating the potential to use treated saltwater directly in their operations.
“Desalination technology is changing very quickly, and even though we are still early in the exploration process, we are keeping an eye on how technology and the law are changing in Chile,” Jeffs said. “But in any case, getting water from the ocean up to 5,000 meters elevation will be very challenging. In that respect, our low-elevation location is an advantage, and we still have a few years before we get to the advanced stage, when we will need to make water-supply decisions.”
On the topic of the changing legal landscape in Chile, Jeffs is optimistic. “A lot of people look at South America only as a continent, but these are very distinct countries. Some of the legal changes in Chile have been very beneficial to us.
“For example, it used to be that an owner could hold its mining properties forever without working the claim and pay a relatively cheap annual land tax. Now, the land tax is based on what—if any—work the owners are doing on the property. If you are not exploring or mining your land, taxes go up significantly. This has sparked a lot of mining companies to raise their hands and look for partners for their projects; others are selling claims. It is a kind of use-it-or-lose-it situation. This will be very good for foreign investment.”
There also will be changes to Chile’s mining act and stricter environmental laws. Jeffs points to similar changes and challenges being raised by governments and citizens in the U.S. and Canada. “A lot of people got their knickers in a twist about Chile’s constitutional convention putting forward the idea of nationalizing the mines. That has been voted down. Chile has had a stable government for 40 years, and mining contributes a lot to the national economy,” she said. “I don’t think they will shoot themselves in the foot.”
Looking for a “Huge” Catalyst
Red Metal’s immediate goal is to drill 20,000 meters in the next year. “Behind those 20,000 meters is the real goal of putting together a maiden resource,” Jeffs said. “Of course, that depends on our finding a consistent enough deposit because that’s what deposits are all about: consistency. We believe a resource estimate in the next 18 months will be a huge catalyst.”
Describing Red Metal as “long in the tooth at 15 years of age,” Jeffs said the explorer has a very low share count, at just under 52 million shares outstanding. Insiders own about 30%.
In 2021, Red Metal listed on the Canadian Securities Exchange, a move Jeffs noted is always a “bit risky,” but Red Metals won that bet. It raised CA$1 million at a CA$0.15 share price and has not strayed far from that range.
It is too soon to tell whether Red Metal will remain an explorer or move into developing a working mine. “I believe that there are explorers and there are developers. I’m attracted by the puzzle of figuring things out and building something new. So, if Red Metal decides to develop Carrizal, my job will be to add to or adapt the management team to find brilliant, qualified developers who believe in the project,” Jeffs concluded.
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Disclosure:
1) Diane Fraser compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: None. He/she or members of his/her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Red Metal Resources Ltd. Click here for important disclosures about sponsor fees. Please click here for more information.
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Red Metal Resources Ltd., a company mentioned in this article.
( Companies Mentioned: RMES:CSE; RMESF:OTCBB,
)
Source: Adrian Day 05/24/2022
Adrian Day recaps the recent news at some of his favorite resource companies, noting several good buys that emerged after the recent sector pullback.
Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) released its first-quarter earnings, in line with expectations and with no negative surprises. Full-year guidance was also reiterated, notwithstanding inflationary pressures on costs. In the first quarter, inflation was estimated to add less than 5% to total costs, with its largest single item, diesel at Lindero, more than half of which is hedged. Significantly, the new mine Séguéla is now 48% complete as of the end of March, on track for the mid-2023 first gold pour.
The balance sheet is strong, with $110 million cash after drawing down another $40 million on its credit revolver; it drew down an additional $20 million since quarter-end. This should be sufficient for the completion of the Séguéla mine build. Fortuna also initiated a share repurchase program at the beginning of the month which it says it “intends to use” this year.
The drama-free quarter saw a modest bounce in the stock, but Fortuna, with a strong balance sheet, conservative management, and a diversified asset base, remains very inexpensive, essentially at its lowest price before the last couple of weeks.
It is a buy.
Counter-cyclical Altius Invests in Project Generators
Altius Minerals Corp. (ALS:TSX.V) released financials for the quarter after already announcing royalty revenue. Earnings were slightly lower than expected, with no major surprises. Thermal coal and potash were the strongest units. Because of the lag effect in receipt of royalties, Altius expects higher potash revenues this quarter and next. The major news was that the company’s litigation for compensation over its coal assets was dismissed; the company is appealing the Alberta Court’s decision.
Generally, the company—always counter-cyclical—sees this as a period for organic growth rather than for acquisitions. It continues to invest actively in early-stage prospects within its project generation division, recently increasing its ownership in Orogen as well as making a new investment in another of our favorite juniors. The balance sheet is reasonably strong with $35 million in cash at the corporate level (and another $87 million held by Altius Renewables), with shares in juniors valued at $67 million.
Altius is our favorite company for broad exposure to resources other than gold, with top, forward-thinking management, a strong balance sheet, and both long-life producing royalty assets and a deep pipeline of early projects.
The pullback in the stock price from almost $26 a month ago, gives us an opportunity to buy.
Three Potential Triggers for Pan American
Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) reported another quarter with lower earnings than estimated, this on the back of both gold and silver production being lower than expected, largely due to COVID-related workforce issues. The company said that the workforce deployment was now back to normal and it reiterated guidance for the full year, expected to be weighted towards the second half.
The company continues aggressive drilling at La Colorada Skarn. The balance sheet is strong with $326 million in cash, net cash of $225 million, plus a $500 million line of credit, which will be used for the CAPEX on La Colorada.
With strong management and balance sheet, diversified assets, and three major assets that could provide significant upside—La Colorada, Escobal in Guatemala, and Navidad in Argentina—Pan American is a solid buy here.
A Flurry of Positive News Ahead of Equity Raise for Lara
Lara Exploration Ltd. (LRA:TSX.V) reported a string of positive news ahead of an insider private placement. Earlier in the month, it increased its interest in a stalled phosphate project in Peru from 33% to 70% for a commitment to invest $500,000 by the end of 2025. The absence of any upfront payment is positive. Lara needs to convince the local community of the benefits of the project, given the poor community relations of the previous owners.
Separately, the company released initial results on the newly optioned ground adjacent to its main deposit at the Planalto joint-venture project with Capstone in Brazil. The main
Homestead deposit has returned positive results but was thought to be too small for Capstone and Lara’s option of the adjacent ground potentially changes the outlook.
While the grades are short of spectacular, the mineralization suggests the potential to increase the overall size of the Planalto deposit.
Settlement of Lawsuit Ahead?
Lastly, Lara and its partner Codelco received a favorable court ruling upholding its Liberdade exploration license; the rule is being appealed by the Brazilian Mining Agency. Lara originally obtained the license in 2010 and brought in Codelco as a partner in early 2011. It has been tied up in court since 2015, with exploration activity suspended, after Vale claimed its 1986 permit remained valid. We expect an appeal, but also expect that Vale, Codelco, and Lara will seek an agreement that would be to the benefit of Lara.
Immediately following the release of this news, Lara announced a private placement to raise CA$4 million from insiders and a new corporate investor. The placement was priced at a nice discount with an attractive warrant.
Lara is a hold for now.
Value Disconnect for Vista
Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX)is in the transaction phase, actively seeking a partner for its Mt Todd gold project in the Northern Territories of Australia. In a one-on-one conversation, CEO Fred Earnest said that multiple companies have visited the data room while a couple so far have conducted site visits.
The level of interest is more or less what was expected, but because of the current state of Sino-Australian relations, no Chinese companies are expected to bid. The company is seeking offers and there will not be any news on the deal front until the company announces a transaction.
The deadline for offers to be submitted has not been announced publicly. Should no acceptable offer be received, Earnest mooted building a smaller project, with lower CAPEX. All permits are renewable so there is no time pressure to commence construction.
The company is well-financed, ending the quarter with almost $13 million in cash.
With exploration and other intensive work on-site concluded—final exploration results will be released over the coming weeks—the cash spend will decline significantly. After final bills
are paid, the cash spend is expected to run at about $1.5 million a quarter, approximately 50/50 G&A and local site expenditures.
Terms of a deal are critical, but there is room for maneuver. Clearly, the terms of any transaction will be critical for shareholders, but with the market cap at only $93 million, and the net present value of Mt Todd at $1 billion, there is plenty of cushion for shareholders to win even with a less-than-perfect transaction.
Obviously, the lack of an acceptable offer and a decision to go alone would be disappointing. It is surprising that the stock did not move further, nor sustain its gains, following the release of the definitive feasibility study in early February, but that gives us more opportunity to accumulate.
At this level, Vista is a strong buy.
Top Buys
This week in addition to those above include Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE); Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX); Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE); Barrick Gold Corp. (ABX:TSX; GOLD:NYSE); Orogen Gold Ltd. (ORE:LSE); Gladstone Investment Corp. (GAIN: NASDAQ); Ares Capital Corp. (ARCC:NASDAQ); and Hutchison Port Holdings Trust (HPHT:Singapore). If you do not yet own it, Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) can be bought.
Which Assets Perform Best in Difference Economic and Market Environments?
Little surprise that during inflationary periods, gold and “inflation-indexed bonds” perform best of seven asset categories, followed by developed market real estate. The study, by the World Gold Council, looked at consistency and other factors as well as purely at returns.
In fact, as we have discussed many times, though gold performs well in nominal terms during inflations, in real terms, and on a relative basis, gold does better during deflationary periods, particularly where accompanied by monetary turmoil.
Bear Markets and Stagflations Also Good for Gold
During equity bear markets, if accompanied by inflation, gold is again a top performer, number one this time, followed by “safe-haven” currencies Swiss franc and Japanese yen. Bonds are the worst performer. In a bear market without inflation, all returns—except for bonds—are lower, and gold slips below foreign currencies.
During stagflation, energy followed by gold is one of the two standouts (up an average of 26% and 21%) followed by emerging market stocks and bonds and other commodities. U.S. stocks and bonds were the worst performers. Gold stocks sometimes follow the stock market more than they follow gold, but in the 1970s, they rose (basis the Barron’s Gold Stock Index) by 1,322%, while in the period from 1876 to 1980, they were up over 1,000%.
In the period from the end of 2008 to the end of 2010, they (basis XAU Index) almost quadrupled.
Note: each of these different studies looked at a different group of asset classes (though all included U.S. stocks, U.S. bonds, and gold). Gold and gold stocks set to outperform in likely scenario ahead A stagflation is our default outlook for the economy, while a bear market for equities is long overdue.
Such augers well for gold. There are always other factors apart from the primary condition being studied (inflation, bear market, etc.) that can affect the returns of one or other assets. In the stagflation of the 1970s, for example, the Arab oil embargo propelled the oil price to its top spot.
The overall conclusions hold true, however, given the different time periods looked at.
Quotes of the Day
HSBC’s “head of responsible investment” appeared to dismiss the importance of climate change, saying “there’s always some nut job telling me about the end of the world,” adding that he is concerned about the amount of regulation coming down the line.
He noted that “human beings have been fantastic at adapting to change.”
He took specific aim at former Bank of England Governor Mark Carney, commenting “I completely get that at the end of your central bank career, there are still many, many years to fill. You’ve got to say something, you’ve got to fly around the world to conferences, you’ve got to out-hyperbole the next guy.”
But, he added, “it is getting a little bit out of hand.”
The bank was not amused.
ESG Mania
On two recent “investor days” held by major gold royalty companies, each led with discussions, not of their assets, their financial conditions, or their business plans, but on burnishing their ESG credentials, each consuming over one-quarter of the total time on this topic.
Cart and horse come to mind.
In answer to the question (asked by your humble scribe) of how much time senior management was spending on formulating ESG policies and completing numerous surveys submitted by various “green” organizations, one company’s General Counsel, said 30-40% of his time was devoted to the topic, while across management is was “north of 20%.” And this is before the SEC’s new regulations on the topic.
Originally published on May 21st, 2022.
Adrian Day, London-born and a graduate of the London School of Economics, is the editor of Adrian Day’s Global Analyst. His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”
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Disclosures
1) Adrian Day: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: All. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management, which is unaffiliated with Adrian Day’s newsletter, hold shares of the following companies mentioned in this article: All. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan American Silver Corp., a company mentioned in this article.
Adrian Day’s Disclosures
Adrian Day’s Global Analyst is distributed by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. Publisher: Adrian Day. Owner: Investment Consultants International Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. ©2021. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.
( Companies Mentioned: ALS:TSX.V,
FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE,
LRA:TSX.V,
PAAS:TSX; PAAS:NASDAQ,
VGZ:NYSE.MKT; VGZ:TSX,
)
Source: The Critical Investor 05/20/2022
The Critical Investor reviews the latest updates with Alianza Minerals Ltd., including their closing of a CA$750K private placement.
As Alianza Minerals Ltd. (ANZ:TSX.V; TARSF:OTCQB) is looking to do at least 2,000m of diamond drilling at their fully owned Haldane Silver project this year, they needed to fill up the treasury before the winter break was over, and it appeared they did that just in time. On May 19, 2022, they announced the closing of a financing of CA$750K, consisting of 10M shares with a half three-year warrant, with an exercise price of CA$0.125 until May 19, 2025. It was good to see Chairman Mark Brown buying 1.7M shares again, topping up to an impressive 13.2M shares, almost 9% of outstanding shares. This financing was the first step, with another one sufficient to fund the Haldane program to follow. Being a hybrid prospect generator, they have other projects in the works as well, paid for by JV partners.
The company is eying potentially up to five different drill programs this year at their various projects, as the optioned out (Allied Copper) Klondike and Stateline copper projects in Colorado, operated by Alianza, are both in the targeting phase now, with drilling likely to start in July. Coeur Mining, which has optioned the Tim Silver project in the Yukon, has notified Alianza Minerals that the results of the 2021 program have been compiled, and once Alianza has reviewed the data, a news release will detail the results of that work. Alianza expects to hear more about 2022 activities in early summer. The Twin Canyon gold project in Colorado also has seen its fair share of prioritizing drill targets, and a drill permit for a 10-hole RC drill program is also expected in June. Alianza has the intention to seek a partner for this drill program.
As a reminder, this is why Alianza thinks there is great potential, as the Haldane area very much resembles the geological make-up of the eastern part of Keno Hill, containing several significant high-grade silver deposits and mines:
Recent exploration of the past few years by Alianza has focused on the Mount Haldane Vein System (MHVS), and considering high-grade results (HLD20-19: 1.78m @ 818g/t Ag and HLD21-24: 1.26m @ 3,267g/t Ag) at the West Fault target, management is narrowing its focus at this specific target even more:
According to CEO Weber, their insights on Haldane mineralization are improving, and they are looking to delineate a deposit here. He regularly talks to nearby exploring Alexco geologists, and they have confirmed to him that they are on the right track, as Alianza has hit the right type of geology, veins, and structures. Weber expects to drill further step-outs at the West Fault and Middlecoff targets around June, depending on the availability of drill rigs, and targeting for the Bighorn and Ross targets will be finalized in the spring, and drilling will probably commence later this year as it is a combination of crew and drill availability.
Alianza Minerals is working on a drill permit for Twin Canyon, which is expected within weeks, and are looking for a JV partner, with discussions still ongoing.
Conclusion
The latest financing is lower than expected, but nevertheless sufficient to provide adequate funding for Haldane drilling for this year. Besides Alianza’s flagship project, Klondike and Stateline copper projects in Colorado have drilling coming up for both projects this year. The Tim Silver project will very likely also see drilling this year by JV partner Coeur Mining. After the first CA$750k was raised, drilling at Haldane can begin soon, and I am curious if Alianza can expand the known mineralization into something significant, which leads to an economic deposit. But they have more irons in the fire for this year. 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.
All pictures are company material unless stated otherwise.
All currencies are in U.S. Dollars unless stated otherwise.
The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed, and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high-quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.
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Disclaimer
The author is not a registered investment advisor, and currently has a long position in this stock. Alianza Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.alianzaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.
Streetwise Reports Disclosures
1) The Critical Investor’s disclosures are listed above.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
( Companies Mentioned: ANZ:TSX.V; TARSF:OTCQB,
)
Source: Clive Maund 05/20/2022
Analyst Clive Maund reviews Trailbreaker Resources’ latest rating with the acquisition of their Eagle Lake property.
Trailbreaker Resources Ltd. (TSX-V: TBK;OTC: APRAF;FRA: KCG) was not unduly affected by the recent rout afflicting the sector and technically looks ready to advance following several months of corrective action on the back of a sector recovery from oversold in sympathy with an expected broad market bounce. However, in addition to this, we have the news just out from the company this morning that it has succeeded in acquiring the highly prospective Eagle Lake property from Teck Resources. Helping the cause is the fact that Trailbreaker stock is at a historically low price within a long base pattern and only has 12 million shares in issue, and thus clearly has big upside potential from here.
On the six-month chart, we can see that we are at a good entry point now after the orderly downtrend from late February which looks rather like a bull flag. It is oversold here and the Accumulation line is positive…
On the 10-year chart, we can see that the stock looks amazingly cheap on a historical basis, as it got to over CA$14 back in 2012, which is about 56 times the current price! At first, I suspected that the current low price might be at least partly due to stock dilution, but that is not the case as there are only 12 million shares in issue.
In conclusion, Trailbreaker stock looks like a very good value here with a very favorable risk/reward ratio since the downside is limited while the upside is unlimited, with a good chance that its improving fundamentals, especially with the news of the acquisition of the Eagle Lake property will get it moving against the background of a sector recovery move, and may trigger a breakout from the Pan base show non its long-term chart above. Therefore rated an immediate speculative buy.
Trailbreaker Resources website
Trailbreaker Resources Ltd, TBK.V, APRAF on OTC, closed at C$0.23, $0.18 on 17th May 22.
Originally posted on CliveMaund.com on May 18, 2022.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers, and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
[SMNLINSERT]
Disclosures
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures are below. I determined which companies would be included in this article based on my research and understanding of the sector.
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Charts are provided by the author.
CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals, or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
( Companies Mentioned: TSX-V: TBK;OTC: APRAF;FRA: KCG,
)
Source: The Critical Investor 05/20/2022
Aztec Minerals goes from strength to strength it seems; after a myriad of excellent drill results at Cervantes, mid-tier producer Alamos Gold, operating the Mulatos Gold mine nearby got interested and is working on a CA$3M strategic investment at the moment.
Just after releasing intriguing drill results at Cervantes, Aztec Minerals Corp. (AZT:TSX.V; AZZTF:OTCQB) announced a CA$3M non-brokered private placement with Alamos Gold, which can be called intriguing for sure as well. Alamas Gold is operating Mulatos, one of the largest heap leach gold mines in Mexico, not that far away from Cervantes. Although Mulatos still has about 10 years of reserves, and there do not yet appear to be any direct synergies between the Cervantes project and Mulatos operation, it still is a stamp of approval and a sign of strong interest in what Aztec Minerals is accomplishing at the moment.
It is not every day that you see a mid-tier producer like Alamos Gold Inc. (AGI:TSX; AGI:NYSE) (“Alamos”) indicating that it intends to purchase securities to obtain a 9.9% interest in a small exploration junior like Aztec Minerals, so the news release on May 16, 2022, definitely surprised the markets. I already contemplated a financing coming soon in my latest update, but I didn’t expect this for sure, and definitely not this soon. Well done by CEO Simon Dyakowski. I asked him to provide some background story to this financing as far as he could disclose, but unfortunately, he couldn’t share too much info as the deal hasn’t closed yet: ”Aztec is in a fortunate position to be able to finance in a tough market because of our strong exploration results in the Winter 2022 RC drilling Campaign at Cervantes. We are excited at the prospect of welcoming Alamos Gold as a large strategic shareholder of Aztec. The investment will allow Aztec to advance exploration at the Cervantes Project over the late Spring and into the Summer. ”
The non-brokered private placement would involve the issuing of up to 10M units at a price of CA$0.30 per unit for gross proceeds of up to CA$3.0M. Each unit consists of one common share and one warrant exercisable to purchase an additional common share at an exercise price of CA$0.40 for a two-year period following the closing of the private placement. As the Aztec shares were trading around CA$0.26 when this was announced, the shares would be issued at a premium, which is rare these days with lots of negative sentiment everywhere due to the Fed rate antics, reacting to multi-decade high inflation, fueled further by commodity shortages, initiated by COVID-19 which halted investments for almost two years, and exacerbated by the ongoing Russia-Ukraine conflict. Besides the premium, Alamos was able to negotiate a full warrant, which is something you don’t see very often anymore, but it seems only fair after paying the premium.
Aztec Minerals intends to use the net proceeds of the PP to conduct exploration work on its Cervantes Porphyry gold-copper project in Sonora, Mexico, and its Tombstone Epithermal gold-silver & CRD silver-lead-zinc-copper-gold project in Arizona, USA, as well for general working capital purposes. As a reminder, management is contemplating a 5,000m follow-up drill program at Cervantes in the second quarter. Not only will the near-surface heap leachable mineralization be explored, but a stronger diamond drill rig will finally be utilized to drill at depth for large porphyry targets, indicated by a large IP chargeability anomaly. Aztec is also carrying out channel sampling and geologic mapping of the new drill roads at the moment at California, California Norte, and Jasper, and is expanding surface sampling and mapping on the property in general, in order to continue the 2021 phase 1 surface program.
The last drill program has been completed, containing 26 holes with 4,649m drilled, and Aztec has still four more holes to report, located at the California Zone, and final assays for hole JAS22-001 and the remaining holes are expected over the coming weeks.
As another reminder, the exciting thing here is of course, that the Cervantes oxides already seem to account for an estimated 1Moz heap leachable gold, but aren’t the only thing Aztec is looking to explore, as it is also planning a drill program for their Tombstone gold-silver oxide project (subject to a 75/25 JV with Aztec as the operator) in Arizona for the summer, also enabling them to go after large porphyry/CRD potential at depth at both projects. With the financing cash, Aztec is enabled to continue its exploration activities.
Conclusion
Although I had already contemplated financing sooner or later, this latest announcement surprised investors and me by the speed and the involved party. It is always good to see a mid-tier like Alamos Gold taking a strategic interest of 9.9% in a junior. For me, it is a stamp of approval by a company that knows better than any other type of investor out there what the mineralized potential could be at Cervantes. There probably is a good reason they want to sit in the front row from now on. Besides this: keep in mind Cervantes isn’t the only project, and both Cervantes and Tombstone have near-surface oxides plus deep porphyry/CRD potential.
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 at www.criticalinvestor.eu, in order to get an email notice of my new articles soon after they are published.
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.
Please note: the views, opinions, estimates, forecasts, or predictions regarding Aztec’s resource potential are those of the author alone and do not represent views, opinions, estimates, forecasts, or predictions of Aztec or Aztec’s management. Aztec has not in any way endorsed the views, opinions, estimates, forecasts, or predictions provided by the author.
The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed, and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high-quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.
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( Companies Mentioned: AZT:TSX.V; AZZTF:OTCQB,
)
According to the seasonally adjusted data, M2 contracted by $83B in April. The Money Supply analysis last month highlighted the slowing money supply growth rate, but this is the first contraction seen since January 2010. The economy and stock market have been built on massive stimulus and liquidity from a rapidly expanding money supply. With M2 growth decelerating last […]
The post Monthly M2 Shrinks for the First Time in Over 12 Years first appeared on SchiffGold.