| | | KDK, ARK x 2, KTN, WRLG, IAU, ZNC
Last year, Kodiak Copper aka KDK acquired a 119 sq km package of claims bordering their MPD property in south central BC where they are looking for large copper/gold porphyries like those being mined nearby. The renamed the property to MPD Northwest, and based on further exploration, have now added two more blocks of claims, one to the north that has a number of showings, and another to the south where MPD Northwest adjoins MPD, The key aspect of the second one is that it may host an extension of the Ketchan Zone, which is expected to make a meaningful contribution to the MPD Resource Estimate currently underway. (While watching the accompanying video, it was hinted that we can expect that initial Resource Estimate by the end of 2025.)
Between exploration at both MPD and MPD Northwest and the Resource Estimate, it is guaranteed to be a busy year for KDK filled with news flow.
Message 35023746
Arras Minerals aka ARK released the assays from the final five holes of its initial drill campaign on the Berezski target its 100%-owned Elemes prospect in Kazakhstan, where it is looking for large porphyries similar to those being mined nearby. Based on the share price increasing by more than a third on huge volume, it's fair to say They Dun Good.
The headline assay was 547m @ 0.70% CuEq (0.23% Cu & 0.48 g/t Au) starting from 14m depth. This was quite the hole, starting with 44m @ 1.15% CuEq (0.48% Cu & 0.64 g/t Au) and ending in mineralization with 64.8m @ 0.68% CuEq (0.16% Cu & 0.55 g/t Au). ARK's geologists believe this has defined another porphyry centre similar to the recently discovered one 5 km south, and the other holes also found significant mineralization.
Planning is underway for followup exploration including mapping and sampling, geophysics and drilling at both Berezski and the nearby Aimandai target. They will need to raise the necessary funds first. If it's via a PP I am glad it will be done at the new higher share price, but it would not surprise me to see them attract a partner to form a JV. It is notable that ARK already has an exploration alliance with Teck governing a number of their other properties in Kazakhstan
Kazakhstan is getting hot. Most of the majors are now involved there, and IVN announced today they are farming into a large copper prospect in southern Kazakhstan.
Message 35023766
In addition, ARK announced they are accelerating the expiry date of more than 10M warrants to Mar. 14, which they can do because the share price has exceeded 60 cents for 15 trading days. If all these warrants are exercised, which would not surprise me, that will add more than $4M to ARK's cash stash.
finance.yahoo.com
Kootenay Silver aka KTN released more drill results from its Columba project in Chihuahua, Mexico. Although the main focus remains the ongoing drilling on the E Vein, the drilling reported in this PR is from the E, F, and I Veins plus a new zone they are calling La Preciosa.
Drilling in the F Vein recording mostly narrow high grade intercepts, though they also found an intersection of 522 g/t Ag, 0.46% Pb, and 0.8% Zn over 2.33m core length within 21m of 126 g/t Ag. The I vein also returned a number of impressive intercepts,, while preliminary drilling at La Preciosa indicates that, as with the other veins in the area, mineralization will increase with depth.
These holes filled a large hole in the F Vein and established the I Vein and La Preciosa as prime targets for followup. In the meantime we wait for more assays from the D and E Veins.
Message 35023894
West Red Lake Gold Mines aka WRLG delivered an update on progress at the Madsen gold mine in Ontario they are about to bring back into production. They have now extracted about a third of the 10kt bulk sample they are mining from three sites in the mine, The mill will restart shortly by processing legacy low grade stockpiles to test operations, and then proceed to processing the bulk sample. The drift to connect the East and West portals, which WRLG says is essential to improving efficiency, is about 80% complete, with about 300m remaining to go.They also are continuing mine development and are aiming to have the camp ready to house personnel mid-March.
So far all the ducks seem to be in a row. We shall see whether their detailing planning, when executed, turns Madsen into a moneymaker. Having the gold price above $C4100 doesn't hurt....
Message 35025291
When new management took over at Nevada gold miner i-80 Gold aka IAU last year, their first step was to straighten out the finances and recapitalize the company, which is largely complete. Now we are on to the next stage, with the release of new financial studies on the various mines they plan to build.
First up -- a revised PEA for the Cove project. The new PEA, which uses a PoG of $2175/oz. foresees an 8-year mine life with average annual production of just under 100k oz Au at a cash cost of just over $1100/oz Au. The initial capex would be $175M with an IRR of 30%.
Through the remainder of this year, IAU will produce an updated Resource Report and a PFBS for Cove. They expect to receive permits to begin dewatering in 2027 and production in 2029.
Expect more new economic studies on their other development assets throughout the year. I have some IAU warrants that expire in April 2028 with a strike price of $2.15, and am becoming more optimistic about them actually getting in the money before they expire.
Message 35025329
In response, Scotia issued a new analyst report on IAU. They were pleased with the results of the PEA, and noted that the RRI would be over 50% at current gold spot prices, but kept IAU at Sector Outperform with a target of $1.50.
Recently Zincore aka ZNC announced it was leaving its past as a zinc explorer in Peru behind when it announced the purchase of the adjoining Ready Creek and Provenance gold prospects, which together cover 445 sq. km. and are situated 50km north of Melbourne in Victoria, Australia. The properties share a border with Sunday Creek, where SGXC has been making significant gold discoveries of late, and there are several operating gold mines located not far to the west.
As well, ZNC is also raising funding through a PP and is planning a share consolidation and a name change. Once all this is out of the way I expect to hear about their exploration plans for the properties.
Thanks to a previous consolidation when ZNC was trying to survive as a zinc explorer I am already way underwater, down more than 90$ on my small existing ZNC holdings. Once I see how things shake out, I will decide whether to add to them or sell.
Message 35025480
Saville reminds us that gold is the commodity least likely to experience a supply shortage because almost all the gold ever mined still exists in human hands. He goes on to note that once again there is talk of a supply shortage in silver, but that because so much of the silver ever mined remains in existence in spite of some industrial consumption, that silver is the commodity that is the second least likely to experience such a shortage. He (and I) suggest(s) that you ignore this talk just like the previous times it have come up and failed to materialize.
That said, he does expect silver to catch up to the move in gold at some point. |
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