IPT x 2, MAI, GQC, RIO
Mexican miner Impact Silver aka IPT released more drill results from ongoing drilling in the Tres Amigos zone of its producing Plomosas Zn/Pb/Ag mine in Chihuahua. One of the holes was infill, with the rest testing extensions of mineralized areas for future mining.Thanks to intersections like 8.86% Zn, 2.65% Pb, and 12 g/t Ag over 5.6m true width including 1.1n @ 27.50% Zn, 3.43% Pbm and 19 g/t Ag, as well as 16.60% Zn, 8.04% Pb, and 35 g/t Ag over 2.5m and 14.95% Zn, 0.72% Pb, and 16 g/t Ag over 2.3m, they are calling this drilling campaign a success.
Drilling will continue at Tres Amigos and then move on to other prospective areas. IPT also reiterated that the Plomosas mill will complete the ramp up to commercial production in Q1.
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Before the release of the above PR, IKN ran a detailed analysis on IPT's recent quarterlies showing how leveraged it is to the price of silver, i.e. the main reason for owning it. He argues that if the silver price holds up next year and IPT can increase milled volumes at both Zacualpan and Plomosas as expected, their financials will become much more attractive giving a boost to the share price.
Minera Alamos aka MAI released its Q3 results and an operation update.
Q3 should be the final quarter before operations at the Santana gold mine in Mexico turn cash flow positive. This is now almost guaranteed because the ~1000 oz Au they produced in Q3 were still being refined at quarter end so the revenue will be counted in Q4. In addition, the company is steadily increasing mining and stacking rates at Santana, and will initiate a 40% increase in the size of the Santana heap leach in Q4, though they are still waiting for the permits for the larger expansion.
After completing the payments for the Cerro de Oro mine in Zacatecas, next in line for development, MAI ended Q3 with a cash stash of $6.0M, so it is clear why subsequent to month end they completed a PP which carry them comfortably to the company becoming cash flow positive.
With the recent purchase of the Copperstone development project in Arizona, 2025 is stacking up to be pivotal year for MAI.
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Okay, I am now convinced by the evidence piling up that the recent change in regulations in the Dominican Republic's permitting regime will allow Goldquest Resources aka GQC to finally resume development of its Romero Au/Cu mine. We had already heard from GQC and UGD regarding the change, and now the third junior active in the DR, PRG, has released a similar PR.
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The IKN newsletter brings us news that we can expect a PR out of Rio2 aka RIO shortly, because building of the Fenix gold mine in Chile has begun now that the permits and financing are in place. Given how straightforward the build is, by this next year they could be producing gold. |
