Pangaea ups stake in First Quantum Minerals, shares jump

First Quantum Minerals (TSX:FM) shares were up 17% on Thursday after Pangaea Investment Management, a firm backed by Chinese state-owned Jiangxi Copper upped its stake in the Canadian miner.

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Pangaea bought an additional 6 million shares in First Quantum, bringing its stake in the company to 74.64 million shares, or 10.8%.

First Quantum has been in discussions with Jiangxi Copper since September regarding a possible investment in the company’s Zambian assets, it said in a statement.

First Quantum operates six mines, including Kansanshi, the biggest copper mine in Africa. The company also controls Cobre Panama, a massive mining and processing complex in Panama, the largest copper operation coming to market over the next couple of years and the biggest single private sector investment in the nation’s history. 

First Quantum’s shares were up slightly again Friday morning. The company has a C$7.6 billion market capitalization.

(With files from Reuters)

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Asanko Gold reaches record production in Ghana

Asanko Gold (TSX: AKG) announced on Friday production results for Q3 2019 from its Asanko gold mine in Ghana, West Africa. The mine is a 50/50 joint venture with Gold Fields Ltd (NYSE: GFI), managed and operated by Asanko.

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During the quarter, gold production at Asanko reached a quarterly record of 62,440 oz. Average gold grade achieved was 1.4 g/t from 1.44 million tonnes milled. The mine is on track to meet its yearly guidance of 225,000- 245,000 oz.

The Vancouver-based gold producer also generated record revenue of $91 million from selling 63,009 oz of gold in the quarter, realizing an average price of $1,443/oz.

“During the third quarter, we substantially completed the Cut 2 pushback at the Nkran pit of the mine, concluding a significant capital program that allows the mine to focus on generating meaningful free cash flow,” Greg McCunn, Asanko Gold CEO, commented on the latest production results.

McCunn added that the company received $10 million from JV partner Gold Fields during the quarter, and is expected to receive another $10 million on or before December 31 to further boost the corporate balance sheet.

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Chile’s Environmental Service asks for more time to review Maricunga project

The Chilean Environmental Service notified Minera Salar Blanco, the operating company for the Maricunga joint venture, that it has extended the Environmental Impact Assessment evaluation process for 60 days.

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The lithium mining JV is 51% owned by Lithium Power International (ASX: LPI), 18% by Bearing Lithium (TSXV: BRZ) and 31% by a private local company.

Over $40 million has been spent on the project to date to advance and de-risk it

According to the owners, they were expecting the time extension, as they had no news by October 15th, when the initial evaluation was due. They also predicted the delay because it is customary among large and/or complex projects in the South American country.

Chilean regulations set a timeframe of 120 business days for the final environmental evaluation of any project submitted in the country. It also grants the Environmental Service a one-time extension, at its own discretion during the process, if needed to complete the evaluation.

“This request by the Environmental Service for an extension is a result of no specific question or query, but rather to grant more time to review the comprehensive data that has already been provided by MSB. A resolution from the Environmental Service is expected in Q1/20,” the firms involved in the project said in a media statement.

The 4,463-hectare Maricunga property is located 170 kilometres northeast of Copiapó in the III Region of Atacama in northern Chile at an elevation of 3,800 metres above sea level.

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Ivanhoe encouraged by rise in palladium prices

Ivanhoe Mines’ (TSX: IVN) co-chairmen Robert Friedland and Yufeng “Miles” Sun issued a communiqué this week stating that recent increases in the price of palladium, nickel, rhodium and gold have resulted in the weighted price of the ‘basket’ of metals contained in the ore at the company’s Platreef project to rise to a new, multi-year high.

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“While many investors are focused on gold, palladium has been far and away the best performing precious metal for the past several years,” Friedland wrote in the press brief. “The strong, upward price appreciation since 2016 of the collective basket of metals to be produced by Platreef when commercial operations commence at the Tier One discovery is encouraging.”

At current prices, palladium and nickel comprise more than 60% of the weighted price of the ‘basket’ of metals in Platreef’s ore

Located near Mokopane in South Africa, Platreef is a massive, high-grade, long-life deposit.

According to Friedland, the mine is expected to produce a suite of vital metals. “The nickel and copper by-products are essential in the electric car revolution, and platinum and palladium are equally vital for hydrogen fuel cell technology and catalytic converters to clean the air,” he wrote.

Based on independent analysis prepared in the 2017 definitive feasibility study, Platreef is projected to have a cash cost of $351 per ounce of 3PE+Au, net of nickel and copper by-products, and including sustaining capital costs. The DFS estimated that the project’s initial, average annual production rate will be approximately 219,000 ounces of palladium, 214,000 ounces of platinum, 30,000 ounces of gold and 14,000 ounces of rhodium, plus 21 million pounds of nickel and 13 million pounds of copper

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Canadian Gold Miner Delivers 'Strong Quarter,' Raises Guidance

Source: Streetwise Reports 10/18/2019

The production numbers are reviewed in a BMO Capital Markets report.

In an Oct. 15 research note, BMO Capital Markets analyst Andrew Mikitchook reported that Wesdome Gold Mines Ltd.’s (WDO:TSX) Q3/19 production was a beat and management raised full-year production guidance. “Eagle continues to outperform, delivering strong cash flows,” the analyst added, referring to the company’s Ontario mine.

During Q3/19, Wesdome produced 28,910 ounces (28.91 Koz) of gold at Eagle, which exceeded BMO’s forecast of 19 Koz and the company’s Q2/19 production by 29%, indicated Mikitchook. This beat was due to positive grades that averaged 13.3 grams per ton (13.3 g/t). In comparison, reserve grades at Eagle are about 12 g/t. Thus far in 2019, the gold miner produced 70.3 Koz.

Mikitchook relayed that Wesdome’s management increased full-year 2019 production guidance to 88–93 Koz gold from 72–80 Koz but did not change cost guidance, which is a cash cost of US$640 per ounce or an all-in sustaining cost of US$985 per ounce. Costs for the year are expected to come in at the low end of guidance.

The company’s strong cash flows continue to fund Wesdome’s ongoing exploration at its Eagle and Kiena mines, Mikitchook pointed out.

BMO has an Outperform rating and a CA$9 per share target price on Wesdome. The company’s current share price is around CA$6.49.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its …read more

Explorer in Canada's Red Lake District Moves Ahead with Three Projects

Source: John Newell for Streetwise Reports 10/18/2019

John Newell of Fieldhouse Capital Management explores the investment opportunities presented by this project generator in a district rich with historic mine strikes.

If the adage in the mining business is “that the best place to find a mine is next to an old mine,” then by extension, the best place to explore for gold is next to a successful exploration play, and GoldON Resources Ltd. (GLD:TSX.V) is a company that we believe deserves a closer look.

Background
In our first Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX) article, linked here, we saw a company that checked a lot of the boxes when looking at potentially investing in a gold exploration company. Great historical gold-producing district, where discoveries have been turned into mines for the past century. Great management and geologists. It is also helpful to have tight share structure, with management owning shares so that their goals were aligned with the other shareholders.

When we first started following Great Bear Resources, like most juniors it was hard to raise money. The shares bounced around with the volatility that comes with sector, the company did not have any big investors championing the story, and while we researched the story, we had no idea that everything was about to change.

The now-famous drill results came out, and the famed Red Lake investor and former Goldcorp chairman and founder stepped in and bought ~10%, coupled and with continuous better results, and the rest as they say is history. Great Bear’s share price went from $0.50 to over $9/per share in less than 18 months.

So, we are motivated to look for other companies that could also mirror that kind of success, while recognizing that mineral exploration is a high-risk business, and replicating Great Bears success is a mighty tall order. However, it is also true that it has been success in the discovery phase of a mining project’s lifespan that has created the greatest shareholder wealth in the resource sector. We look for those companies for a part of our portfolio on mining companies, knowing the odds are 1 in 1,000. Our research led us to GoldON Resources Ltd., and we decided to have a closer look.

Who is GoldON?
GoldON Resources Ltd. is a mineral exploration company with a project generator business model. GoldON, as the name reflects, is a company focused on exploration in Ontario, Canada. It is focused on discovery-stage properties with a goal of adding value by defining, or redefining, using new exploration methods and exploration opportunities, and then sourcing a well-financed partner to advance the project by way of option or joint venture participation.

The company has, and continues to, seek and acquire properties by staking or [acquiring an] option in mining-friendly jurisdictions, and is geographically focused on some of the prolific gold mining districts of Ontario, Canada, notably the famous and prolific …read more

Edumine launches new training platform to serve mining companies

Edumine, a leading mining industry training platform, has launched with new design, functionality and a focus on training the next generation of miners.

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Edumine is the sister product of MINING.com and The Northern Miner and delivers online training programs for engineers and mining professionals.

“Mining companies are struggling to train tomorrow’s workforce without compromising today’s operations,” said Marc Borbas, VP of Talent Solutions for Glacier Resource Innovation Group, which runs the Edumine platform. “The new Edumine gives us a new platform to solve this problem at scale by providing convenient, comprehensive and credible online training.”

“Mining companies are struggling to train tomorrow’s workforce without compromising today’s operations”

Marc Borbas, VP, Talent solutions, edumine

Within the mining industry, there is widespread recognition that current training programs and approaches are failing to generate a large enough pool of skilled geologists and mining engineers. As a result, companies are increasingly trying to hire skilled talent from their competitors at great cost, instead of developing their own talent.

Edumine makes it easy for:

Learners to fit training into a schedule and progress towards their goals;Instructors to share their expertise and earn money from doing so;Talent development teams to deliver valuable training,

“Across the training industry in general,
there is a growing trend towards continuous learning, where individuals want to
squeeze small chunks of training into each day, rather than dedicating hours or
days to course completion,” added Borbas. “This is also welcomed by employers
who seek to minimize downtime and the logistics challenges of sending employees
out on lengthy training programs.

“Our self-paced online learning model allows training to fit into the “corners of day” and can be extended with scheduled training sessions to reinforce key concepts. We will re-imagine Edumine in 2020 as a provider of tailored training programs aimed at specific groups of employees. The first step in this journey is migrating our content and users to a new platform that allows us to control and drive learner engagement and to divide learning up into bite-sized pieces.”

For more information, visit Edumine.

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McEwen Mining shares up on Q3 production results

McEwen Mining (NYSE, TSX: MUX) on Thursday reported consolidated production for Q3 2019 of 35,043 gold ounces and 947,146 silver ounces, or 45,930 gold-equivalent ounces (GEOs). For the nine months ended September 30, the company produced 128,125 GEOs, or 74% of its revised guidance midpoint of 172,500 GEOs.

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Highlighted in the company’s results is the Gold Bar mine in Nevada, which continued to improve during the third quarter, achieving several key performance benchmarks for ore production, crushing throughput, and gold production.

The mine, located in the southern Roberts Mountains of the Battle Mountain-Eureka-Cortez gold trend in Eureka county, produced almost 5,000 GEOs in September, which is in line with the company’s plan and approaching the designed capacity of the process plant.

Highlighted in the company’s results is the Gold Bar mine in Nevada, which continued to improve during the third quarter, achieving several key performance benchmarks

“Drilling at Gold Bar South returned several new drill holes showing broad intervals of grades better than twice that of the current resource, which should enhance the project’s economics,” chairman and owner Rob McEwen said.

The San José and El Gallo mines, located in Argentina and Mexico respectively, also performed well, both meeting their production targets. At the Black Fox complex in Ontario, underground mining operations continued to be challenging. However, McEwen adds that high-grade exploration results at both the Black Fox and Stock properties are providing reason for excitement in the future.

Latest exploration drilling from Stock East returned impressive intercepts, such as: 83.5 g/t gold over 5.6 m, including 417 g/t over 1.1 m; and 34.7 g/t gold over 5.9 m, including 74.1 g/t over 2.7 m.

Shares of the Toronto-based precious metals miner jumped over 3% at market open. Its current market capitalization is $564.7 million.

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Avesoro Resources to go private if insider takeover bid successful

West Africa-focused gold miner Avesoro Resources (TSX, AIM:ASO) said on Thursday that its majority shareholder has formally submitted an offer to acquire shares in the company it doesn’t already own.

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The bidder, Avesoro Jersey, already has a 72.9% stake in the bullion producer and is offering £1 (about $1.20) per share of Avesoro Resources.

Company has faced several issues at its Youga mine in Burkina Faso and New Liberty in Liberia this year.

Minority investors have until Nov. 22 to let go of their
shares in Avesoro Resources, which has faced several issues at its Youga mine
in Burkina Faso and New Liberty in Liberia this year.

In August, a security guard at Youga shot and killed an
illegal miner found on the premises, which led to a break-in by an armed group
of fellow artisanal miners.

The Toronto-based miner had to halt operations as a
precautionary measure and government security forces currently remain in order to protect the company’s
assets.

Avesoro also had to suspend work at its New Liberty mine this
year due to heavy rainfall flooding the pit, which hindered gold shipments from
the mine.

In early October, a pit wall collapse forced the company to
halt again production at the Liberian mine.

As a result, Avesoro cut annual output guidance for both mines and said its gold production and cost guidance remained under review.

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Megastar interested in Gunpoint’s Cerro Minas project in Mexico

Megastar Development (TSXV:MDV) entered into an option agreement with fellow Canadian miner Gunpoint Exploration (TSXV: GUN) to acquire a 100% interest in the Cerro Minas mineral concession located in the state of Oaxaca, Mexico.

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The 899-hectare property lies within the Oaxaca epithermal Au-Ag belt, approximately 130 kilometres southeast of Oaxaca City, and 30 kilometres southeast of Gold Resource Corporation’s (NYSE American: GORO) Arista-Switchback polymetallic mine. 

Megastar reports that Cerro Minas contains polymetallic skarn-style mineralization (Ag-Au-Cu-Pb-Zn) that is the subject of historical reports by the Mexican Consejo de Recursos Minerales which document small-scale artisanal mining

According to Megastar, Cerro Minas is an inlier to its principal Yautepec project concession and covers 5 kilometres strike length of highly prospective ground along a northwest-trending caldera structural margin.

“Given the extremely exciting results we have announced to date from our Yautepec property, the addition of this land is very compelling for us,” David M. Jones, exploration manager and director of Megastar Development, said in a media statement. “Completely surrounded by our current land holdings, Cerro Minas displays similar epithermal characteristics to targets that we have already identified and, given our early-staged success, adding this land is a natural as we look to enlarge our foot-print in, what we believe, is a very prospective area.”

Under the terms of the agreement, Megastar may earn a 100% interest in the property by paying Gunpoint $100,000 and issuing 800,000 common shares in a series of instalments.

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Vancouver’s QMC to produce lithium oxide concentrate in China

Vancouver-based QMC Quantum Minerals (TSXV: QMC) announced that it has partnered with a public company in China with the idea of targeting the battery metals market.

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In detail, QMC shipped mineralized samples from its Irgon lithium mine in Manitoba, central Canada, to China-based Guangxi Non-Ferrous Limu Mining to have them test and produce a 6% battery-grade lithium oxide concentrate, under a non-disclosure agreement.

With a market value of $1 billion, Guangxi is 51% state-owned by the Guangxi Provincial Government with the balance of ownership being private equity

The shipped spodumene was extracted from the Irgon, Irgon West, Mapetre and Central Dikes. The shipment consists of pulps and previously analyzed samples.

“As part of the negotiated agreement between QMC and Guangxi, on completion of the testing process, Guangxi will provide the company with a report which will include test results and a flow-sheet for the production of concentrate,” QMC management said in a media statement.

QMC’s flagship project, the Irgon lithium mine, is located in Manitoba, 20 kilometres from the Tanco mine, North America’s most successful lithium mine to date.

The project has a shaft already drilled and a historic non-NI 43-103-compliant resource estimate of 1.2 million tonnes grading 1.51% Li20 over a strike length of 365 metres and to a depth of 213 metres.

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