Orestone Mining aka ORS released a brief PR, announcing they have completed a 774M hole at their Captain prospect in BC, and that they expect it will take 6-8 weeks for the assays to be received and released. This hole was aimed at a resistivity low which the geologists think is the large gold/copper porphyry underlying previously discovered minerlaization.
Message 33716219
Kootenay Silver aka KTN released results from the first drill hole on on the California target on the Cervantes Au prospect in Sonora, Mexico. The current drilling at California is aimed at extending the known Au mineralization found in a previous drill programme, particularly the near surface oxide cap, and the first hole makes that look like an achievable goal, with the headline intersection being 2.8 g/t Au over 24.4M within 1.1 g/t Au over 88.4M.
Mineralization remains open in all directions.
Message 33716264
I might try to gain some credit for repeatedly predicting that Sandstorm Gold aka SSL would divest its equity position in the Hot Maden copper project in Turkey, but, really, it was the obvious outcome. What did surprise me a bit -- okay, not really -- is that Hot Maden is only part of a larger deal that turns SSL back into the pure PM royalty/streaming play it started out as.
SSL is bundling together its 30% interest in Hot Maden, its holding of 25% of the shares of Entree Resources, which has a stake in part of the huge Oyu Tolgoi deposit in Mongolia, and $10M cash, which will go to an existing company called Royalty North Partners aka RNP.V through a reverse takeover. In return SSL will get a $200M Au stream on Hot Maden, a 34% stake in RNO (which I expect they will monetize), and a $95M debenture on which RNP will pay interest plus begin repaying the principal once Hot Maden is into production.
To be frank, properly evaluating this deal is probably beyond my pay grade; the deal is very complex and would require an accountant to fully analyze, plus they are many unknowns. SSL did trade up nicely after the announcement before dropping back today along on a general market-wide down day. And FWIW, TD sees the trans.cation as 'potentially positive', but kept them at Buy with a target of $11.50.
Message 33716292
Less than an hour after announcing the RNP transaction, SSL released their Q4 and annual results. The NR is larded with 'record this' and 'record that', but TD brings us back to earth by noting that Q4 EPS, although positive, came in slightly below consensus.
SSL also announced 2022 guidance of 65-70k AuEq deliveries, rising to 100k/yr if 2025, assuming the Hot Maden deal completes, which is expected to happen before year end 2022.
Message 33716376 |
