WM, KRR, CCW, IAU x 3, ORS, ODV, MAI, MIRL
For the last few years, Wallbridge Mining aka WM has concentrated on drilling up resources and reserves on its Fenelon and Martiniere gold projects in Quebec, and they were very successful, proving up over 5.5M oz between Inferred and Indicated. This year, they have turned their focus to exploration at Fenelon, identifying 8 priority targets around the Fenelon MRE. Today they released results of drilling at two of these targets.
Target 1 is located 700m NW of the MRE, and drilling has found an extension of the Jeremia Diorite, which hosts much of the mineralization in the area. The headline result is 0.96 g/t Au over 21.05m, including 3.45 g/t Au over 2.20m.
At Target 5, located about 2 km east of the MRE, they have found a splay of the Sunday Lake Deformation Zone located at depths of less than 100M below surface, with the headline assay being 14.90 g/t Au over 0.50m.
Both these targets will be followed up later, but for now the drills are moving on to Target 8, located north of and showing similar characteristics to Target 1, and Target 7, located further along the same splay that hosts Target 5.
Message 34284379
I've been known to poke fun at companies exploring for other metals suddenly promoting potential lithium deposits they had ignored for years. IMO today's announcement by Karora Resources aka KRR and their fellow Australian gold miner Kalamazoo Resources aka KZR does it right.
Both KZR and KRR are focused on gold (plus some nickel for the latter), so they have reached an agreement to create a new lithium-focused company into which each of them is going to contribute their potential lithium assets. These comprise a number of properties in various parts of Australia, some located next to existing lithium mines, some greenfield. Once the transaction is done, the idea is to do an IPO and list on the ASX under the Kali Resources.
This does raise one problem for me. If the plan is to spin out the Kali shares to existing KRR shareholders, some, like me, will be left with shares that are basically worthless due to the high transaction fees for trading ASX-listed stocks. I plan to follow this up with the company.
Message 34284424
Canada Silver Cobalt Works aka CCW has announced the start of this year's exploration programme at their past-producing Castle East property near Cobalt, Ontario. They are following a procedure which has worked well on this property in the past, looking for surface extensions of silver and gold mineralization already identified by past drilling. Stripping in prospective locations will begin next week.
Message 34284551
I mentioned earlier this year that Nevada gold miner/developer i-80 Gold aka IAU would have a lot of news flow this year, and sure enough, we just got three PRs in two days. But these are not the puff pieces you get from promotionally oriented companies; each of these have real meat in it.
First, IAU announced they have completed the buyout of Paycore Minerals, whose FAD property adjoins IAU's Ruby Hill property to the south. There has already been quite of bit of drilling on FAD, which has defined extensive high grade Au/Ag/Pb/Zn mineralization that is the down dip extension of the original Ruby Hill mine. It is about 2km south of IAU's original Hilltop discovery on the Ruby Hill property, and they now control over 2.5km of the mineralized structure.
This is a perfect bolt-on to IAU's properties, and will be the focus of an intensive drilling campaign and will become part pf IAU's planning for future production.
Message 34284556
Next, we get IAU's quarterlies. During Q1 they sold 2349 oz Au, most of it from residual leaching at Lone Tree and Ruby Hill, but also, for the first time, ore from Granite Creek which is being loaded onto the Lone Tree leach pads. At this point, the company's emphasis is one development and exploration rather than production, so it is a important that they ended the quarter with plenty of capital, including a cash stash of $57M and another $33m in restricted cash.
Message 34285630
And finally, IAU brings up an update from their other development project, McCoy-Cove, where a large drilling programme is underway at Cove. The drilling is designed to fill the gap between the Helen and CSD Gap zones, with results from the first holes including outstanding assays like 12.9 g/t Au over 36.1m and 13.0 g/t Au over 6.0m. There will be a total of 40km of drilling, which along with metallurgical testwork will feed into a revised Resource Report and an FBS on what is one of the highest grade Au deposits in North America.
Message 34285644
Orestone Mining aka ORS brings us an update from the Captain property in north central BC, where they are looking for giant Au/Cu porphyries similar to those found at the nearby Mt. Milligan mine. A fresh look at already-drilled core has revealed the presence of alteration and Au/Cu mineralized dikes in close proximity to the chargeability anomaly that is going to be drilled shortly. This finding greatly increase the chance that that anomaly could be one of the porphyries they are looking for.
Message 34285663
I have added a new puppy to the stable, Osisko Developmetn aka ODV. Their main focus is restarting production at the Tintic Au/Ag mine in Utah on a property with a lot of exploration upside. They are also waiting for permits to start construction on the Cariboo gold mine in BC, and are producing Au and Ag by processing tailing on their San Antonio property in Sonora, Mexico.
But I don't won a single ODV share. Rather, I am playing the long life ODV.WT.A warrants. The warrants expire on Mar. 2, 2027 with a strike price of $14.75, so there is plenty of time for them to make it into the money if ODV can bring both Tintic and Cariboo into production as planned. There is also a $US-denominated version of the warrant which trades using the symbol ODV.WT.U and expires on the same day with a strike price of $US10.70.
If you are not familiar with trading warrants, proceed with caution! Yes, they offer more potential leverage to the upside but also to the downside, and if you are not careful they will end up at the dreaded value of half a cent per warrant and then expire worthless. Although much of the information on the header of the board at the following link is out of date because the person who created it is no longer posting, there are some useful calculators that still work and you can get advice just by asking with a post.
Subject 27370
The IKN newsletter this weekend featured a long update on Mexican gold miner Minera Alamos aka MAI, which remains their top pick. I will share a few items of note. First, the rains have returned so Santana can start producing again, even as they wait for permits to secure a long term water supply. Second, on the financial side, this quarter took a hit because 5.5k oz of gold they have already produced was delivered to a middleman who then refines it before passing it on to the final customer, and only then can it be booked as income. Hence, that Q1 inventories are way up while income was down is striclty an accounting measure -- they already have the cash they received for the 5.5k oz -- that will resolve itself when the sale is completed by the third party.
Hence, MAI is still in fine financial shape even as they work through the operational issues at Santana and prepare to build Cerro de Oro. Now they need to get production at Santana up to the 5000k oz Au per quarter as promised.
IKN also brought us news about Mineral IRL aka MIRL. April production at their Corihuarmi gold mine in Peru was a bit better at 1634 oz, but still no better than break-even. And the auditors still have not signed off on the books so the management CTO remains in place, even as time ticks ever closer to MIRL losing its flagship asset Ollachea to foreclosure. |
