| | | WM, KTRI, ORS, MTA
Wallbridge Mining aka WM released an updated PEA for its Fenelon Gold Project in Quebec, and I would call the new numbers okay. The saving grace is that they use a base case POG of $2200.
Based on an Indicated Resource of 2.1M oz Au @ 3.30 g.t and an Inferred Resource of 2.0M oz Au @ 3.35 g/t Au, the PEA envisages a mine life of 16 years, with average annual production of 107k oz AU, 127k oz the first five years. Capex remains relatively high at $579M, with cast costs relatively low at $851/oz Au. However, RRI remains barely acceptable at 21%, increasing only to 34$ at a POG of $3000.
For the numbers to improve, WM needs to add more ounces and thereby improve the economics, a million more ounces at least. Or maybe high gold prices will move the numbers enough to interest AEM, who by taking over KL.TO acquired a JV with WM on a nearby gold prospect as well as a 9.9% stake in WM.
Message 35080375
Kootenay Resources aka KTRI, which was spun out from KTN a few years ago to hold some of their properties in BC, has released an update on one of their best prospects, the Two Times Fred property on the Nechako Plateau which contains a large swarm of Au/Ag veins. Between 2020 and 2023 it was JVed out to CG, who spent over $4.3M on exploration, defining multiple veins, including blind drill hits, over a 1 km by 3 km area, with all veins remaining open at depth and along strike.
KTRI plans to complete reviewing CG's work on Two Times Fred and then will announce an exploration programme of their own including drilling. I expect they are also trying to find another JV partner.
Message 35080406
Orestone Mining aka ORS released the results of an initial sampling programme completed on their Francesca AU prospect in southern Argentina, on which they recently acquired 85% ownership from a local company. ORS is looking for an open pit deposit amenable to heap leaching -- the least expensive way to mine gold -- and they have made a good start, with 20 samples from the South Zone averaging 5.78 g/t Au and 29.2 g/t Ag, and similar promising results from the North Zone. The total strike length has grown to 1100m.
ORS will shortly announce a follow-up exploration programme expected to include drilling.
Message 35080421
Metalla Royalty & Streaming aka MTA released its Q4 and annual results, which I would call okay. Their portfolio delivered 808 GEOs in Q4, allowing MTA to almost reach the bottom end of 2024 guidance, while 2024 costs of $19 per GEO were in line. Revenue was slightly below expectations in Q4, while depending on which number you use they either broke even or suffered a slight loss. As a result, MTA's cash stash decreased by $500k in Q4 to $9.7M at year end.
MTA also released 2025 guidance calling for the production of 3.5-4.5 GEOs, weighted to H2.
Message 35081646
FWIW, In response, BMO released a new analyst report on MTA calling the results largely in line and kept MTA at Market Perform with a target of $7.
FWIW Scotia also released a very similarly worded analyst report on MTA which kept them at Sector Perform with a target of $US4.50 = $C6.43. |
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