Author: Gold News Club

Source: Ron Stewart 12/23/2024

NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) recently announced the merger completion with Signal Gold, which brought in the 3.1-million-ounce Goldboro gold deposit, according to a Red Cloud Securities research note.

In a December 19, 2024 research note, Red Cloud Securities analyst Ron Stewart maintained a Buy (Speculative) rating on NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) with a CA$2.50 target price, following the company’s merger completion with Signal Gold which brought in the 3.1-million-ounce Goldboro gold deposit.

The Goldboro property, located on the eastern shore of Nova Scotia, has seen historic mining activity since 1862. According to the report, “Mining in 1893-1910 is estimated to have recovered 54.9k oz [gold] Au at an av. grade of 4.11 [grams per tonne] g/t Au.” Signal Gold acquired the project in 2017, conducting extensive exploration including “56km of expansion and infill drilling in 2017-2021 as well as an underground bulk sample in 2018.”

The project currently hosts significant resources, with open pit Measured and Indicated resources of “15.7Mt grading 2.822 g/t Au for 1.4M oz Au” and underground resources of “5.9Mt grading 6.085 g/t Au for 1.2M oz Au.” These form the basis for Probable reserves of 15.8Mt grading 2.26 g/t Au containing 1.2 million ounces.

The Feasibility Study demonstrates robust economics with a post-tax NPV5% of CA$328 million and IRR of 25.5% at US$1,600/oz gold. Stewart noted that “the post-tax NPV5% and IRR increase to CA$556M and 37.5%, respectively, at US$2,400/oz Au.” The study outlines initial capex of CA$271 million and AISC of US$849/oz.

The analyst sees significant upside potential, noting that “Infill drilling has the potential to reduce the strip ratio by upgrading and incorporating Inferred resources, expanding the optimized pit design.” Furthermore, “With ~1.5M oz Au already in underground M&I+I resources, further exploration at depth could demonstrate the potential to develop an underground operation and significantly increase the mine life.”

Major shareholders include management and insiders at 9.2%, Sprott Inc. at 6.9%, and First Mining Gold Corp. at 2.72%.

The share price at the time of the report of CA$0.69 represents a potential return of 262% to Red Cloud’s CA$2.50 target price.

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Important Disclosures:

1. NexGold Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp.
3. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Disclosures for Red Cloud Securities, NexGold Mining Corp., December 19, 2024

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosure Details

1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.

2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.

3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.

Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon. Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA,
)

Source: Adrian Day 12/23/2024

Global Analyst Adrian Day reviews recent developments, good and bad, at several companies on his list. He is not adding to many gold stocks right now, given concerns about a possible pullback in the immediate future.

Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) is buying O3 Mining Inc. (TSXV:OIII; OTCQX:OIIIF), whose Marban project is just eight miles from Agnico’s Canadian Malartic, whose mill has excess capacity which Marban could fill. O3 has agreed to the acquisition of just over CA$200 million.

The project offers synergies with a low capex due to the nearby mill facilities. It is anticipated that production could start in 2033.

Although Agnico has other deposits in the area that could produce ore for the Malartic mill, this acquisition makes sense, given the low cost, and the timing is appropriate before O3 starts to develop the project.

Agnico is the gold standard of major gold producers, with strong management, a good balance sheet, and a low political risk profile, but we are holding for now.

Wheaton Spreads Its Wings With High-Return Investment

Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) has acquired for $175 million a stream onAllied Gold Ltd.’s (ALG:TSX; AGLD:LSE; ALD:ASX) advanced exploration Kurmuk project in Ethiopia.

The stream offers above-average returns, almost 14% IRR on known reserves alone, commensurate with the political risk. With $700 million in cash (as well as an undrawn $2 billion credit facility), Wheaton has had to expand its horizon in the last couple of years, making a series of very small transactions (often to get a foothold into a potential project); to earlier stage projects; and to royalties (as opposed to streams); as well as to higher risk jurisdictions.

We are very long-term holders, given the balance sheet, the management, and the business model well-executed, but holding off adding right now.

Arrest Warrant Issued for Barrick’s CEO

Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) refused to comment on reports that Mali had issued an arrest warrant for CEO Mark Bristow, alleging money laundering, ratcheting up pressure on the company to pay back taxes it alleges are owed. Barrick disputed the claims but offered $370 million to settle the claim.

This is idiotic behavior by the military junta that governs Mali. Apart from putting off foreign investors— one small company has already announced it is leaving the country, and others will certainly be less enthusiastic in putting new money there — this action makes it more difficult to come to an agreement.

Bristow has negotiated many disputes with rapacious governments over the years in face-to-face talks, but the issuance of an arrest warrant makes such talks unlikely. Barrick (and predecessor Randgold) has invested over $10 billion in Mali. The Loulo-Gounkoto mine contributed almost 14% of Barrick’s total production last year, but the stock price reflects this dispute.

Barrick has the most adventurous management among larger producers, a strong balance sheet, and several Tier 1 assets around the world. It has a far higher political risk profile than its peers. If Barrick misses its full-year earnings, when released in January, after reiterating guidance throughout the year, the stock would fall on a further loss of confidence. But if they meet guidance, then the reverse is true, and the stock could pop.

It is the least expensive of the big miners, and for the more adventurous investor, Barrick is a buy.

Resources Jump at Fortuna’s Key Asset

Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) announced updated reserves and resources at its Séguéla mine in Cȏte d’Ivoire. Though reserves fell by 12%, resources increased, measured and indicated by 4% and inferred by 176%.

The jump in indicated resources reflects maiden resource estimates at several nearby deposits to the main pit. Fortuna is a favorite of mine among the intermediate producers, with strong, conservative management, a solid balance sheet, and diversified assets in Latin America and West Africa.

If you do not own, this is a good price, but we would look for any additional pullback to add to positions.

Metalla Adds To Board

Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American) has added Chris Beer to its board. Mr. Beer was a top resource fund manager during his 24 years at RBC.

He has agreed to buy 40,000 shares in the market. Metalla is very undervalued on an asset basis. It has a portfolio of over 100 royalties on gold, silver, and copper projects.

The size and breadth of this portfolio is not being recognized in the market, particularly since production at most of the company’s assets, including most of its cornerstone assets, are years into the future. However, as many of these assets hit development milestones and production comes into view, the stock price will be re-rated.

At this price, Metalla is a Strong Buy.

Orogen Sells Another Project for Cash and Royalty

Orogen Royalties Inc. (OGN:TSX.V) has sold its Celts property in Nevada to Eminent Gold for US$400,000 in cash and shares plus a 3% royalty (of which 1% can be bought back for $1.5 million). Celts was generated under the alliance Orogen has with Altius looking for “Silicon lookalikes” in southern Nevada.

The proceeds and royalty will be split with Altius, who funds the exploration. It is the fourth project thus generated and the second to be sold. With a strong balance sheet, ongoing royalty revenue, and a business model that allows it to earn revenue from its prospect-generating business, Orogen is in an enviable position of not needing to raise additional equity.

It owns a 1% royalty of the Silicon and Merlin deposits of AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE), which it is currently seeking offers. The outcome is uncertain, but in any event, the royalty is a very valuable asset. The stock price has fallen from its late-October high of over $170 on fatigue among some short-term traders who bought for a quick sale of the royalty, aggravated in the past few weeks by a well-known fund that had to sell this year.

This pullback makes Orogen a Good Buy.

Altius Completes Renewables Transaction

Altius Minerals Corp. (ALS:TSX.V) said the plan to take Altius Renewable Royalties private has been concluded. Altius retains 57% of ARR; the value of that business is expected to be enhanced as a private company.

Separately, Vale announced it had completed construction on the underground expansion at its Vale’s Voisey’s Bay nickel mine, on which Altius holds a royalty.

Altius is a core holding for us, with top management among the most insightful and imaginative of all resource management and a diversified asset base. The value of neither ARR nor its royalty on Anglo’s Silicon property in Nevada is fully recognized in Altius’s share price.

If you do not own it, take advantage of last week’s pullback to buy.

More Positive Results From Midland

Altius Minerals Corp. (ALS:TSX.V) released soil sample results from the La Peltrie project, on which Probe Gold has an earn-in option. La Peltrie is on the Detour Trend. Although early stage, the results are encouraging, with extensive samples identifying copper and molybdenum.

But the market yawned. Midland has strong management, a solid balance sheet, and a broad portfolio of properties being explored along or in joint ventures with the likes of Rio, BHP, Agnico, and Barrick.

The market is suffering from fatigue on the lack of a major discovery, in my view, aggravated by tax-loss selling, with the stock trading close to its annual — and indeed all-time — low. But Midland is in as strong a position to make a discovery as an exploration company, and we should take advantage of this depressed tax-loss selling price to buy.

TOP BUYS this week, in addition to the above, include Nestle SA (NESN:VX; NSRGY:OTC), Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Lara Exploration Ltd. (LRA:TSX.V), and Fox River Resources Corp. (FOX:CNSX). We are holding (not buying) most gold equities for now, given the possibility of further retracement in the gold price.

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Important Disclosures:

1. O3 Mining Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd., Barrick Gold Corp., Fortuna Mining Corp., Metalla Royalty & Streaming, Orogen Royalties Inc., Altius Minerals Corp., Franco-Nevada Corp., Lara Exploration Ltd., and Fox Riv Res Corp. and
3. Adrian Day: I, or members of my immediate household or family, own securities of:All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. 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. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Adrian Day Disclosures

Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. www.AdrianDayGlobalAnalyst.com. 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. © 2023. 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: AEM:TSX; AEM:NYSE,
ALS:TSX.V,
ABX:TSX; GOLD:NYSE,
FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE,
MTA:TSX.V; MTA:NYSE American,
OGN:TSX.V,
WPM:TSX; WPM:NYSE,
)

Source: Streetwise Reports 12/23/2024

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has reported promising results from ongoing metallurgical testing at the La Romanera deposit, part of its wholly-owned Iberian Belt West Project in Spain. Read on to learn how innovative recovery methods are unlocking the potential of this promising polymetallic deposit.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has reported promising results from ongoing metallurgical testing at the La Romanera deposit, part of its wholly-owned Iberian Belt West (IBW) Project in Spain. Utilizing a two-stage process, the company has significantly enhanced recoveries of both base and precious metals. The initial stage employs conventional flotation, while the second stage, termed the Post Flotation Process (PFP), incorporates pyrometallurgical and leaching methods to recover residual metals, including gold, silver, copper, and zinc.

The PFP method has demonstrated a notable impact, boosting total estimated gold recovery to 64.3%, marking a significant improvement over the initial flotation results. Emerita’s testing involved a high-grade gold sample from La Romanera, processed in collaboration with Wardell Armstrong International in the UK and Dundee Sustainable Technologies in Quebec, Canada. The PFP utilizes the CLEVR™ non-cyanide gold leaching technology, aligning with the company’s commitment to environmentally sustainable mining practices.

According to Jorge Blanco, Emerita’s Director of Metallurgy, in the news release, the company is focused on maximizing the value of La Romanera’s mineralization. “We are very pleased with the progress using the CLEVR TM technology,” Blanco explained. “As our testing has progressed, we have continued to improve on the gold recovery for La Romanera mineralization to realize our objective of maximizing [the] La Romanera deposit’s value. In addition, this process would also gather much of the copper and zinc that was not collected in the initial flotation process. We are continuing to test other technologies with the aim of identifying the most efficient and optimal solution to maximize the value recovery at La Romanera while minimizing the overall environmental impact at the IBW Project.”

Understanding Polymetallic Mining

In a report dated December 13, The Globe and Mail highlighted advancements in polymetallic mining exploration. Projects such as Power Nickel’s Lion Zone extended mineralized zones deeper into the earth, reflecting the immense potential for resource growth. The findings at this project underscored how exploration continues to enhance the sector’s role in providing essential metals like nickel, copper, and precious metals for modern technologies.

According to Mining.com, on December 13, copper markets experienced a turbulent 2024, highlighted by speculative trading that pushed Comex copper to an all-time intraday high of US$5.20 per pound in May. Despite setbacks from geopolitical tensions and a stronger U.S. dollar, the long-term outlook for copper remains robust. Analysts point to ongoing growth in green energy projects and electrification as key demand drivers. The Chilean mining association forecasts production in 2025 will range between 5.4 million and 5.6 million tonnes, bolstered by major expansions such as Uzbekistan’s Almalyk mine and Congo’s Tenke Fungurume. Goldman Sachs, maintaining a bullish stance, predicts copper will average US$10,160 per tonne in 2025, reflecting its critical role in global energy transitions.

On December 16, Ahead of the Herd discussed geopolitical tensions that have prompted a renewed focus on domestic mineral production. Bipartisan efforts in the United States under both the Trump and Biden administrations allocated billions of dollars to bolster critical minerals supply chains, aiming to reduce dependency on nations like China. Michael Goehring of the Mining Association of British Columbia stated that Canada and the United States could establish secure and reliable supply chains. He emphasized that British Columbia’s critical minerals output, including zinc, lead, and aluminum, could “make a meaningful contribution to North America’s future.”

As covered by Midas Touch Consulting on December 16, silver has demonstrated remarkable resilience amid market volatility. The metal was trading around the US$30 mark for much of 2024. The report highlighted silver’s 31.75% annual gain in USD terms and emphasized its dual role as an industrial and investment metal. Key technical levels, such as support at US$29.68, are seen as “pivotal for silver’s ongoing uptrend,” while a bullish wedge pattern points to a potential breakout in 2025. Furthermore, silver’s role in green technologies and increasing industrial demand create a favorable supply-demand dynamic. Midas Touch Consulting maintains a bold price target of approximately US$50 by late spring 2025, driven by anticipated shifts in monetary policy and projected supply constraints.

According to Stockhead on December 20, gold’s position as a hedge against economic uncertainty remains solid, even as prices dipped below US$2,600 per ounce following the U.S. Federal Reserve’s recent policy meeting. While the Fed reduced its projected rate cuts for 2025, dampening short-term optimism, analysts continue to highlight gold’s long-term appeal. Gavin Wendt, founder of MineLife, stated that “gold remains the standout commodity for 2025, as the factors that have driven it to record highs in 2024 remain prevalent.” He also emphasized gold’s strong 92% correlation with rising U.S. sovereign debt, which has surpassed US$36 trillion. This alignment, combined with increased investment demand, particularly in China, positions gold as a compelling choice for investors.

The Forces Driving Emerita

Emerita believes that the IBW Project is poised for growth, with several milestones that could drive investor interest, as outlined in the company’s investor presentation. The ongoing Phase 2 metallurgical testing program continues to refine recovery processes, with additional results expected in early 2025. These advancements, combined with the integration of environmentally friendly technologies like CLEVR™, position the IBW Project as a model for modern, sustainable mining practices.

The company is preparing an updated MRE, which will incorporate recent drilling results and the outcomes of the metallurgical program. This update, expected in Q1 2025, includes data from the El Cura deposit for the first time, potentially increasing the project’s resource base and economic viability. [OWNERSHIP_CHART-10036]

Emerita’s designation of IBW as a project of “Strategic Interest” by the Andalusian government adds another layer of potential. This designation expedites permitting processes and reinforces government support for the project. With plans to finalize engineering studies and progress toward a preliminary economic assessment, Emerita feels it is well-positioned to transition the IBW Project from exploration to development.

The company’s financial health, bolstered by a US$15 million financing agreement with Nebari Resources, ensures that it has the capital to sustain exploration and development activities. As Emerita continues to demonstrate technical and operational milestones, the IBW Project could become a cornerstone in the Iberian Pyrite Belt, known for its rich polymetallic deposits.

Ownership and Share Structure

According to Reuters, Michael Lawrence Guy owns 1.53% of the company, David Patrick Gower owns 1.37%, Joaquin Merino-Marquez owns 1.10%, Catherine Stretch owns 0.74%, and Marilia Bento owns 0.5%.

Reuters reported that institutions own 1.18% of the company, including Merk Investments LLC, with 1.10%.

According to Refinitiv, there are 249.66 million shares outstanding with 234.92 million free float traded shares, while the company has a market cap of CA$289.48 million and trades in a 52-week range of CA$0.38 and CA$1.43.

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Important Disclosures:

1. Emerita Resources is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

( Companies Mentioned: EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE,
)

Source: Streetwise Reports 12/23/2024

AbraSilver Resource Corp. (ABRA: TSX.V; ABBRF:OTCQX) recently finalized a US$1 million non-brokered private placement with Teck Resources Ltd at a significant share price premium. Read on to discover how this strategic partnership advances exploration at the La Coipita project.

AbraSilver Resource Corp. (ABRA: TSX.V; ABBRF:OTCQX) recently finalized a US$1 million non-brokered private placement with Teck Resources Ltd. This transaction involved the issuance of 408,163 common shares at a price of US$2.45 per share, a 25% premium to the 20-day volume-weighted average price of AbraSilver’s shares.

This private placement aligns with Teck’s obligations under an option and joint venture agreement signed in January 2024. Under this agreement, Teck can acquire an 80% interest in the La Coipita project by investing US$20 million in exploration over five years, making staged cash payments and equity placements totaling US$3 million, and optionally paying up to US$6.3 million to project vendors. Notably, the US$1 million payment satisfies one of Teck’s required contributions, with an additional payment of US$1 million already made to the underlying project vendors. Shares issued in the placement are subject to a statutory hold period of four months and one day.

AbraSilver CEO John Miniotis highlighted the strategic nature of this partnership, stating in the news release, “We are delighted to welcome Teck as a key shareholder through this strategic investment. Their ongoing partnership highlights the potential of the La Coipita project and reflects confidence in our team’s ability to deliver significant shareholder value.”

This placement coincides with the December 2024 release of AbraSilver’s updated prefeasibility study (PFS) for the Diablillos silver-gold project. The PFS reported a net present value (NPV5%) of US$747 million, supported by a robust production profile and low all-in-sustaining costs (AISC) of US$12.67 per ounce of silver equivalent. The company’s strong financial position, with an estimated cash balance of US$10 million as of September 30, 2024, bolsters its capacity to advance key projects.

Insights on Silver’s Market Dynamics

The silver market demonstrated a strong and resilient performance throughout 2024, driven by robust fundamentals and technical developments. Midas Touch Consulting, in their December 16 Silver Chartbook, analyzed the sector’s technical progress. They noted that silver prices surged by 31.75% in USD terms during the year, outperforming gold’s gains. The report described silver’s journey to a 12-year high of US$34.86 in October, followed by a pullback to strong support near US$30. “The weekly silver chart presents a bull market in progress, which started back in March 2020 at US$11.58,” they explained, highlighting the emergence of a bullish wedge pattern that signals [the] potential for an upward breakout. Midas Touch also emphasized silver’s seasonal strength, stating, “The seasonal trend for precious metals typically turns bullish from mid-December through spring.”

Building on these observations, on December 14, Shad Marquitz of Excelsior Prosperity highlighted opportunities within the junior silver exploration and development space. The report emphasized the sector’s inherent volatility. He stated that investing in pre-revenue silver stocks requires patience, but the potential for returns in a bull market remains significant. Marquitz further underscored the importance of critical minerals, noting that silver’s growing role in industrial applications and green technologies enhances its relevance alongside other critical commodities.

On December 19, Bob Moriarty of 321Gold provided additional context on silver’s seasonal dynamics and sentiment indicators. He observed that silver’s Daily Sentiment Index (DSI) peaked at 90 earlier in the year, well below historical highs, suggesting further room for price growth. Moriarty pointed out that the ten-week period from mid-December to February has historically been favorable for silver, describing it as “the best time of the year for gold and silver.”

Upcoming Milestones and Opportunities For AbraSilver

AbraSilver believes it is poised for value creation, driven by strategic partnerships and upcoming milestones outlined in its investor presentation. The La Coipita project benefits from district-scale potential in a copper-gold belt that hosts prominent projects such as Filo del Sol and Los Azules. AbraSilver’s partnership with Teck Resources provides financial backing and technical expertise to unlock this potential.

On December 18, Christopher Ecclestone of Hallgarten & Co. highlighted AbraSilver’s Diablillos project as “one of the most important silver projects coming down the pike at a global level.”

In parallel, the Diablillos project offers compelling economics with significant exploration upside, according to the company.

The PFS projects average annual production of 13.4 million ounces of silver equivalent over the mine’s 14-year life, with peak production reaching 20.8 million ounces in year two. Ongoing exploration around the high-grade JAC target could further enhance project resources and returns.

Upcoming catalysts include continued drill results, key permit approvals, and the completion of a feasibility study by late 2026, positioning AbraSilver to transition into the construction phase. Additionally, Argentina’s favorable mining policies, such as tax reductions and export duty exemptions under the RIGI program, enhance the project’s financial metrics, potentially saving US$430 million over the mine’s life.

With a strategic shareholder base, robust exploration targets, and well-funded operations, AbraSilver believes it remains well-positioned for long-term growth in the silver and gold markets.

AbraSilver Analysis

On October 28, Peter Krauth of Silver Stock Investor highlighted the progress of AbraSilver’s 20,000-meter drill program at the Diablillos project in Argentina. He noted that the drilling efforts, particularly in the Oculto northeast area and the JAC zone, had successfully expanded shallow mineralization and extended mineral resources beyond the current conceptual open pit boundary. Krauth pointed to notable results such as Hole DDH 24-017, which intersected 28.5 meters grading 87 grams per tonne (g/t) silver, including 7.5 meters grading 190 g/t silver. He also emphasized the significance of step-out drilling, such as Hole DDH 24-020, which demonstrated resource potential with intervals like 53 meters grading 58 g/t silver.

Krauth further highlighted the TITAN geophysical survey conducted northeast of Oculto, which identified a large chargeability anomaly beneath Cerro Blanco. This anomaly, interpreted as a potential porphyry intrusion, was supported by historical sampling that revealed anomalous gold, copper, and molybdenum. He described this finding as pivotal, suggesting it could mark the beginning of a new exploration phase and significant resource growth for the Diablillos project.

Adding to these insights, AbraSilver’s President and CEO, John Miniotis, commented on the success of the drilling and geophysical survey. “The survey indicates strong geophysical anomalies that suggest the potential for a substantial porphyry system, which could unlock an exciting new phase of exploration moving forward,” he stated. Miniotis also emphasized that the ongoing campaign reflects the company’s dedication to unlocking the full exploration potential of Diablillos.

On December 18, Christopher Ecclestone of Hallgarten & Co. highlighted AbraSilver’s Diablillos project as “one of the most important silver projects coming down the pike at a global level.” He attributed this status to rising silver and gold prices, Argentina’s improved investment climate under the Milei administration, and significant infrastructure growth in the region. Spanning 7,919 hectares, the project holds an estimated 210 million ounces of silver equivalent in Proven and Probable mineral reserves.

Ecclestone emphasized the strong economic potential revealed in the second prefeasibility study (PFS), which showed an after-tax NPV5% of US$747 million, an IRR of 27.6%, and a two-year payback period at base-case pricing. He noted that current spot prices could boost the NPV5% to US$1.29 billion with an IRR of 39.3%. He also highlighted the benefits of Argentina’s Promotional Regime for Large Investment (RIGI), which reduces taxes and export duties, significantly enhancing the project’s financials. [OWNERSHIP_CHART-9164]

Ecclestone pointed to exploration upside, citing new high-grade zones near the JAC zone, including a drill intercept of 31.5 meters grading 277 grams per tonne (g/t) silver. He described these zones as top-priority exploration targets. While Diablillos is an attractive acquisition target, management continues to advance the project independently.

With additional drill results and a feasibility study expected in H1 2026, Ecclestone assigned a target price of CA$4.90 per share, reflecting a 100% upside potential.

Ownership and Share Structure

According to Refinitiv, the top six strategic entities own 21% of AbraSilver. The top 3 shareholders are: Eric Sprott with 9.9%, Kinross Gold with 4.0% and Central Puerto with 4.0%. Additionally, the top 3 insiders are Chief Executive Officer (CEO) John Miniotis with 1.0% or 1.3M shares, Director Hernan Zaballa with 0.86% or 1.08M shares, and Chairman and Director Robert Bruggeman with 0.74% or 0.93M shares.

Nine institutions hold 6.84% or 8.58M shares. The Top 3 are Mirae Asset Global Investments (USA) LLC with 2.1% or 2.63M shares, ETF Managers Group LLC with 1.74% or 2.18M shares, and Sprott Asset Management LP with 1.2% or 1.51M shares.

The company has 122.29M outstanding shares and 121.09M free float traded shares. Its market cap is CA$323M. Its 52-week high and low are CA$3.18 and CA$1.30 per share, respectively.

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Important Disclosures:

1. AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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( Companies Mentioned: ABRA: TSX.V;ABBRF:OTCQX,
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