WGX, ktn, MTA, CLCO
Australian gold/nickel miner Westgold aka WGX announced a new Recourse Estimate for their Meekatharra properties in Western Australia. For the first time this included the South Junction deposit, which is about to go into production and which is expected to allow the Bluebird mill to increase production to 1.2Mta starting in Q3 2025, a huge increase from current levels.
Since the MRE released in March, the total number of ounces contained in Bluebird/South Junction has increased by 137k oz to a total of 960k oz Au, and is expected to increase further due to ongoing drilling, The orebody remains open at depth and along strike.
Message 34781529
Kootenay Silver aka KTN released more skookum drill results from the D Vein on its Columba property in Chihuahua, Mexico. With the 11 holes delivering assays like 98.7m @ 211 g/t Ag, 0.1% Pb, and 0.4% Zn, they have extended the strike length of the D Vein to1080m, still open in several directions. Most intriguingly, a 400m stepout to the projected intersection of the B Vein and D Vein revealed a new style of mineralization which requires further drilling to fully understand.
Drilling continues. and all the results being fed into a first Resource Estimate expected before year end.
Message 34781649
Metalla Royalty & Streaming aka MTA released its Q2 results. We already knew that their deliverables were weighted toward H2, but Q2 came in even below those lower expectations, delivering GEOs of only 0.4k thanks to several assets underperforming. That said, MTA seem confident of a very strong performance for the rest of the year, as they reiterated 2024 guidance of 2.5-2.5k GEOs.
It is also notable that a number of their currently non-performing assets are scheduled to come on line next year, so this might actually be the perfect time to acquire shares in MTA as long as you have a loner term horizon.
I also would not be surprised to see MTA bought out next year if they meet expectations.
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FWIW, BMO issued a new analyst report on MTA. Citing the expected stronger H2 and 2025, the kept MTA at Market Perform with a target of $7.
The final piece of the merger between KRR and WGX is now settled with the listing of the spinout company Culico Metals aka CLCO on the TSX-v. CLCO is essentially a shell company with some cash and a lithium royalty, so they only got listed under the 'Sandbox' rules for companies that wouldn't ordinarily qualify for a listing. This means CLCO will have to do something material with that cash in the next few years or they will get delisted.
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