OGC x 2, WGX, QRC, CAPT, RIO
OceanaGold aka OGC released the latest results from the ongoing drill campaign on its Halle gold mine in South Carolina, encompassing infill and exploration drilling on a number of deposits.
At Ledbetter Phase 4, which is currently modelled as part of the open pit but also being considered for underground mining, resource conversion drilling returned assays like 28.9 m @ 18.33 g/t Au and 8.7 m @ 22.30 g/t Au.
At Horseshoe, conversion drilling returned a number of excellent assays, including 16.1 m @ 16.33 g/t Au and 14.6 m @ 10.33 g/t Au, while holes stepping out from the current Resource included assays like 6.1 m @ 16.33 g/t Au and 14.6 m @ 10.33 g/t Au.
OGC also reported more holes from initial drilling at two exploration targets.
At Pisces, located 300m from Horseshoe, assays included 7.6 m @ 10.39 g/t Au and 6.6 m @ 3.34 g/t Au extended minjeralization, which remains open in several directions.
At Clydesdale, located 100m from Palomino, initial drilling returned a feature assay of 26.2 m @ 4.11 g/t Au, promising enough that 2 more holes are planned at Clydesdale in the coming months.
It is worth visiting the VRIFY link to get a visual representation of these deposits.
OGC keeps on blowing through price targets, so I am starting to continue selling another tranche of my holdings.
Message 35256900
I've been keeping half an eye on Carolina Rush and its Brewer Au/Cu prospect in South Carolina because it is located close to OceanaGold aka OGC's producing Halle gold mine in South Carolina. Now comes the news that OGC can earn up to 80% ownership of Brewer by 2030 through several different paths involving OGC either exercising Carolina Rush's option or spending $12M on exploration.
Brewer looks prospective. The price is expensive but I trust OGC's judgment that it is worth the expenditure. I look forward to hear more about their plans for Brewer.
By the time of this second PR, four days later, I was reconsidering the idea to sell any OGC shares, but I reserve the right to change my mind again, and maybe again...
Message 35263158
Queen's Road Capital aka QRC, which generates and distributes income by selling convertible debentures to miners, issued an update. The main news is that they have issued another #20M convertible debenture into Moxico Mining, a public but unlisted UK company who main asset is a producing copper mine in Zambia. QRC already held a $70M denebenture in Moxico.
QRC also announced they have converted their debenture on Isoenergy into shares, and that they are working through the process of converting their debenture on Adraitic Metals after its takeover by Dundee Precious Metals into DPM shares.
With the current high high prices in metals and mining shares, QRC is sitting pretty with $223M of convertible debentures and $130M in equity investments. With its NAV at an all time high and annual interest income of $22M, it would not be a surprise to see QRC increase its dividend.
In response, QRC's share price continued its recent run and set another 52-week high.
Message 35263017
West Australian gold miner Westgold Resources aka WGX posted a new presentation. I didn't see anything new, but it served to remind us that if WGX can carry out their plans, there will be a marked increase in FCF in this fiscal year. What will they do with all the resulting cash? My first priority would be to pay off that $50M drawn on their line of credit while gold prices remain high.
westgold.com.au
Capitan Silver aka CAPT signalled that they are serious about developing the Cruz de Plata silver property in Durango, Mexico into a mine by getting the band back together, so to speak. They added a director and made an internal promotion to VP Exploration, but the signal was sent when they brought on board three people who had worked with CAPT's current management when they collectively brought 3 mines into production.
ca.finance.yahoo.com
The IKN newsletter brought us a detailed update on Rio2 aka RIO based on the presentation the company made at Beaver Creek. Even as they prepare for their first gold pour early next year, they are preparing for Phase 2 at their Fenix gold mine in Chile. Phase 2 will increase production by a factor of four, which will require a lot of water. Apparently RIO is working on a $4000M JV with a Chilean company or companies to access desalinated water.
FWIW, Scotia released a report on the recent Beaver Creek PM Summit. Among the key points they made is that though there is no shortage of silver -- silver inventories in Comex are at a record, and LME inventories continue to rise -- there is a shortage of silver only miners after the recent wave of M&A in the space. Pick your developer seeking to become a stand alone producer -- Scotia's recommendation is ABRA.
Saville continues to expect gold to reach a 3-6 month top in the next month or two, but warns that a blow-off top might move the peak forward. Likewise, the fundamentals for HUI are very supportive, but sentiment is overwhelmingly negative. Similarly, PGMs appear to be entering correction mode after some strong moves. |
