RRI x 2, WGX, CEE x 2. WRLG, KDK, NTH, SNAG
A LOT of news today; I didn't manage to get to everything.
Project generator Riverside Resources aka RRI has once again illustrated how it's done with their latest PR.
RRI acquired the La Union prospect in Sonora Mexico in 2019 as part of a package of five properties for a very small expenditure. A few years later they optioned it out to Hochschild who paid for $550k in exploration before dropping the option. Then in 2023 RRI added the past-producing La Union mine to the property for under $300k, meaning the total amount paid for the properties was around $500k.
This brings us to today's announcement that Questcorp will be acquiring the La Union prospect over 5 years by paying RRI $100k, along with the issuance of 19.9% of the outstanding common shares of Questcorp, and the incurrence of no less than $5,500,000 of exploration expenditures on the Project by Questcorp.
If La Union is anywhere near as prospective as Riverside thinks, those Questcorp shares will generate a hefty profit for RRI when sold. And if Questcorp can't complete the requirements, Riverside gets the property back and keeps the cash and whatever Questcorp shares they have earned.
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A few days later RRI announced that after a summer programme of geophysics on its Cecilia prospect in Sonora Mexico, JVed out to FVI, a drill programme targeting three prospects is underway. If things go as expected, there will be a follow-up drill programme on these three targets and four others.
I case you're wondering, FVI has not released a corresponding PR.
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It was announced that West Australian gold miner Westgold Resources aka WGX will be added to the S&P/ASX 200 Index on Sept. 25. This should trigger some buying from funds that match the index.
westgold.com.au
African gold producer Centamin aka CEE released two updates in quick succession.
The important one tells us that the board of CEE has agreed to a buyout by Anglogold Ashanti. For each CEE share, you will get 0.06983 New AngloGold Ashanti shares and $0.125 in cash. (Oddly, the PR does not say which currency the cash will be in, but it is safe to assume it is $c given where the shares are listed.) As well, current CEE shareholders will still receive the already announced dividend.
The other PR is an update on how the first two months of Q3 have gone, which is well, as planned. The Sukari mine in Egypt continues to run on rails, generating large amounts of free cash flow.
I am very disappointed by this acquisition, as I had hope of CEE reaching much higher prices. I do not intend to hold through the takeover, but for now will hold as I wait to see how thins unfold. It is interesting to note that on both the LSE and TSE this morning, Centamin is trading about 10% lower than the what the PR values the offer at.
On the bright side, I am currently not far from a triple compared to what I paid for my CEE shares, and if you add in the dividends I have collected I am at the triple. OTOH, my personal long term target is close to double that.
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Message 34816609
There is a new horse in the stable, West Red Lake Gold Mines aka WRLG. Their main asset is the Madsen Gold Mine in the Red Lake area of Ontario, which profitably produced a lot of gold in the past but which most recent owners Pure Gold ran into bankruptcy. With the backing of bigwigs like Frank Giustra, the new owners were able to pick it up at a bargain price, and they think they can run it profitably They also own a large inearby property called Rowan with multiple past-producing mines with even hugher grade resources.
Madsen currently has an Indicated Resource of 1.65M oz Au @ 7.4 g/t and an Inferred Resource of 370k oz @ 6.3 g/t, but several of the deposits remain open in multiple directions, and based on the drill results in their latest drill results from the Austin Zone they should be able to grow that substantially
The intercepts are all relatively narrow, up to 6m in width, but as is usual in Red Lake, high grade, e.g. 4m @ 54.19 g/t Au including 1m @ 215.61 g/t Au, 3.53m @ 23.73 g/t Au including 1m @ 79.81 g/t Au, and 6m @ 11.65 g/t Au including 1m @ 10.86 g/t Au and 1.05m @ 47.27 g/t Au. It should be noted that all these intersections are within 40m of existing workings, some much closer.
I am playing WRLG through the A warrants, which have a strike price of 95 cents expiring Mar 19, 2029. I am betting that before that date the WRLG common shares will trade well above a loonie.
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Kodiak Copper aka KDK released results from the Adit zone on their MPD property in SE BC, targeting coincident 3D IP chargeability and copper-in-soil anomalies, Adit is one of a number of Cu/Au/Ag porphyries they are exploring, and first indications are good, with an intersection of 357m assaying 0.43% Cu, 0.02 g/t Au, and 10.05 g/t Ag (0.46% CuEq), all within 200m of surface. If these assays seem low, be aware that a number of mines in the area have done very well with similar mineralization. Encouragingly, this hole included some higher grade segments, including 1.24 % Cu, 0.02 g/t Au, 5.36 g/t Ag (1.13% CuEq) over 21m. They also found a zone with high silver values, including 0.66% Cu, 0.03 g/t Au, and 840 g/t Ag over 3m within a wider 13m high-grade interval assaying 1.74% Cu, 0.03 g/t Au and 194.98 g/t Ag (2.77 % CuEq).
Adit remains open in multiple directions and drilling continues. So far it looks like KDK are well on the way to establishing Adit as the third established porphyry at MPD along with Gate and West.
This PR also included results from initial holes at several other zones which included indications of Cu/Au/Ag mineralization but nothing yet of significance.
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Nord Precious Metals aka NTH released the results of reanalysis of historic drill core on the Miller Creek tailings on its Castle Mine property near Cobalt, Ontario. Silver assay values in the 14 holes from 49 to 370 g/t, with AuEq values ranged from 248 to 411 g/t Ag. For the first time, significant Mg are mentioned, though the rocks also contain cobalt, copper and nickel which were ignored in the silver mining that created the tailings.
Next up is metallurgical testing. NTH envisages using the tailings to generate enough money to restore the underground Castle mine, and then processing loose ore left in piles inside the mine itself.
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Silver North Resources aka SNAG released more details about the drill programme now underway on their Haldane Ag/Pb/Zn property in the Keno silver district in Yukon. They plan to further test the West Fault, plus a deeper hole that will target both the West Fault and Main Fault where they intersect. In addition, a hole will follow up the single hole drilled at the Bighorn target. Meanwhile, we wait assays from the recently completed drilling at the Tim property JVed to Coeur further south in Yukon.
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