Continental Gold drills visible gold at Buriticá; stock at 9-month high

Continental Gold Inc. (TSX:CNL) today announced assay results from initial exploration at its Buriticá project in Antioquia, Colombia. Visible gold was encountered in all four drill holes.

Highlights of the latest drill results include 44.90 g/t gold over 1.20m, 582.00 g/t gold over 0.50m and 47.20 g/t gold over 0.50m. The company points out that these intercepts are grading “significantly higher” than the current inferred mineral resource estimate for this target area.

Shares of Continental Gold jumped nearly 5% on Monday morning to a 9-month high of C$3.47. Its market capitalization stands at C$647.6 million.

The Toronto-based gold miner is currently in the process of completing a 73,500m definition and exploration drill program at Buriticá this year. Construction of the project was 67% complete as of May 31, 2019, and the first gold pour is earmarked for H1 2020.

The Buriticá project, with an estimated 3.71 million ounces in mineral reserves, has attracted the interest of major miners such as Newmont, which earlier this year backed the company with a $50 million financing.

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Falling cobalt prices add fresh challenges to DRC’s economy

A dramatic fall in prices for cobalt, a key element in the production of electric vehicles (EVs) and the main commodity mined in the Democratic Republic of Congo, is forcing the country to speed up efforts towards diversifying its economy away from mineral resources.

Prices for the metal last summer exceeded $40 per pound, but have since declined to $12.70, according to MINING.COM Markets, hindering the DRC’s economic growth.

The situation is set to get worse as expectations of even poorer demand from the power battery market will extend the decline not only in prices for cobalt, but also for lithium

Shanghai Metals Market

The Central African country generates about two thirds of the global supply of cobalt and it also is one of the top miners of coltan.

Mining, in turn, accounts for 80% of its export revenues, making the DRC economy extremely dependant on the prices of its main raw material shipments.

According to a report by the International Monetary Fund released earlier this month, GDP growth in the DRC, one of the world’s poorest countries, is expected to fall to 4.3% this year from 5.8% in 2018, due to a slowdown in mining activity triggered mainly by lower cobalt prices.

In November last year, Prime Minister Bruno Tshibala and Mines Minister Martin Kabwelulu declared the commodity a “strategic mineral resource”. Through that decree, royalties on cobalt and two other minerals almost tripled to 10%.

Higher royalties, however, have not been enough to offset the decline in cobalt prices, especially as the market continues to get flooded by small-scale individual miners, who normally dig up the metal by hand and who react quickly to prices changes.

Another factor weighing on the commodity’s present weakness are, as reported by FT.com, increasing stockpiles of the metal at the port of Durban in South Africa and in China, and a cut in subsidies to electric vehicle producers in China this year, which has also reduced demand for batteries in the world’s largest car market.

According to Shanghai Metals Market, the situation is set to get worse as expectations of even poorer demand from the power battery market will extended the decline not only in prices for cobalt, but also for lithium.

While the current cobalt market is depressed, there’s still rosy views about the future. Automakers are still planning to roll out electric-car models and Glencore, one of the top producers of the coveted metal, could start clearing its cobalt backlog in 2020, by which time car sales are expected to start picking up.

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Acacia pokes holes in Barrick’s takeover bid, still open to “fair” offer

Acacia Mining (LON:ACA) laid down Monday a long list of reasons why it disagrees with majority shareholder Barrick Gold’s (TSX:ABX)(NYSE:GOLD) stance on a proposed takeover of the company, but noted an offer at a “fair” price would be attractive.

The miner, Tanzania’s No.1 gold producer, said the Canadian gold giant “appears to have ignored the value of [Acacia’s] portfolio of exploration and development assets, and the strategic value of the company’s pre-emption rights pursuant to the relationship agreement between [the two parties].”

The company also noted it continued to believe that, subject to an offer price that was “fair and which commands the requisite support of shareholders”, the acquisition bid would be an appealing solution for key stakeholders.

The African miner said it “strongly disagreed” with Barrick’s valuation of the company and that the proposal appears to have ignored the value of its exploration and development assets

Barrick, which owns about 64% of Acacia, made an informal proposal in May to buy out Acacia’s minority shareholders with its own shares, at a ratio that implied a discount to the unit’s market value. That offer, worth about $285 million, was considered by the African miner’s investors and some analysts as low.

The Toronto-based miner originally had until June 18 to come up with a formal, perhaps better offer, but UK regulators had extended the deadline until July 9.

The dispute over Acacia’s situation in Tanzania came to a head last week, when Barrick’s chief executive, Mark Bristow, said Acacia’s mine plans were not appropriately risked or supportable and needed revising.

Bristow also said Acacia’s relationship with the Tanzanian government was so damaged that it could no longer function as an independent public company and warned of a “catastrophic” loss of value if minority shareholders opposed the deal.

Barrick has been negotiating with the Tanzanian government
on behalf of Acacia to resolve an ongoing row over taxes the East African
nation claims is owed.

Acacia, which spun off from Barrick in 2010, says the parent
company’s intervention has undermined its position in Tanzania, noting it had
never been invited to the negotiation table.

The miner also said it was “continuing its own engagements with the highest levels” of the government, adding it had “no reason to believe that these engagements would not continue.”

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Liberty Begins Gold Recycling Program

Source: Bob Moriarty for Streetwise Reports 06/24/2019

Bob Moriarty of 321 Gold looks at the latest moves of this company with projects in Nevada, Utah and Idaho.

The nice thing about having been visiting hundreds of projects in almost two decades is that I find myself talking about properties I know quite well but are now under new management.

Liberty Gold Corp. (LGD:TSX) used to be named Pilot Gold. As a pilot, I thought that was a wonderful name. Their primary projects were in Turkey. No one wants to invest in Turkey until the nut cases there settle down so Pilot/Liberty Gold shifted direction to Nevada, Utah and Idaho.

I first visited the Kinsley Mountain gold mine with Nevada Sunrise back in 2003. Liberty Gold did a deal with Nevada Sunrise in 2011 and drilled off a small but high-grade gold resource. Liberty Gold owns 79% of the project, Nevada Sunrise the remaining 21%. Kinsley has a gold resource of about 525,000 ounces. Drilling will begin again in Q4 of 2019.

The primary focus for Liberty Gold right now is to recycle the Black Pine Gold Mine previously operated by Pegasus until 1998 when they went bankrupt. Pegasus mined 435,000 ounces of gold at a 2 g/t grade in an open pit using heap leaching. Later a new company called Western Pacific Resources staked the ground and began exploration. I told that story nine years ago.

Alas their timing was terrible. Gold peaked in early September of 2011 and the funds necessary to keep young juniors in business dried up. Western Pacific turned the project over to Liberty Gold in 2016 for a cash payment of $800,000 and a 0.5% NSR.

Liberty has the data from 1,874 short drill holes with a total of 191,500 meters. The “Rock Whisperer” Moira Smith is supervising the exploration and drill program. Results to date have been excellent showing 1.78 g/t Au over 47.2 meters including 3.24 g/t gold over 22.9 meters.

The Black Pine deposit is on the same trend as the Long Canyon mine being put into production by Newmont. The newly discovered zone of mineralization is in between the open pit and a known area of high-grade mineralization.

Mark O’Dea was the 2nd place winner in the 2000 Goldcorp Challenge. He was a bright young geo with some grandiose ideas. Now he’s an older and wiser geo running a stable of interesting companies, of which Liberty Gold is just one. He founded and later sold Fronteer Gold, owner of the Long Canyon project, to Newmont in 2009 for $2.3 billion.

Liberty Gold’s next most important project is the Goldstrike deposit with about 1.2 million ounces of gold at a .2 g/t cutoff. This project is located in Western Utah, just east of the Nevada border. It is a Carlin style deposit and past producer of 209,000 ounces of gold in a heap leach operated from 1988 until 1994.

Again Liberty has …read more

Gold Is Starting to Look Toppy

Source: Bob Moriarty for Streetwise Reports 06/23/2019

Bob Moriarty of 321gold urges caution as the gold bulls revive.

Gold bulls are coming out of hibernation, with even billionaires talking about how much they like gold. That tends to happen just before a correction. The gold bulls get frothy around the mouth; speculators pour money into gold contracts just in time to get whacked once more so they can whine about how gold and silver are manipulated and no one saw it coming.

I’ve written a number of times about the importance of understanding bullish sentiment. I find the DSI of Jake Bernstein the single most valuable indicator I use. On both Thursday and Friday last, the DSI for gold hit 94. That doesn’t suggest a major high marking a top for the next 200 years but it does say caution would be merited. Too many people turned bullish all of a sudden.

The COTs agree. Gold sentiment is excessive.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Statements and opinions expressed are the opinions of Bob Moriarty and not of Streetwise Reports or its officers. The auther is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This 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.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market …read more

Keith Barron of Aurania Hasn't Found the Lost Cities. Yet.

Source: Bob Moriarty for Streetwise Reports 06/23/2019

Bob Moriarty of 321gold examines the potential of a new discovery in Ecuador.

Aurania Resources Ltd. (ARU:TSX.V) seems to have turned into one of those bad news/good news stories. Keith hasn’t found the Lost Cities Gold mines. Yet. However his team of crack geologists led by Dr. Richard Spencer may have stumbled across something a lot bigger and more valuable.

They may have discovered the first Kupferschiefer copper/silver deposit found or at least recognized in the Western Hemisphere.

These sediment-hosted systems tend to be very big in lateral extent and rich. Much of the copper for the Bronze Age derived from Kupferschiefer mines in what is now Germany and Poland. Archeological artifacts from smelters and slag heaps indicate production going back as far as 4,000 years ago and written records date from 1199.

The KGHM Polska Miedz mining company in Poland ranks #8 in copper production worldwide and #6 for silver production. They are mining a Kupferschiefer copper/silver project.

These Kupferschiefer deposits were formed in shallow freshwater seas with lower saline-rich layers filled with hydrogen sulphides from rotting vegetation that dissolve the copper and silver from a mineral source. When those fluids combine with carbonaceous material in shales and sediments the copper and silver precipitate out of solution as copper oxides.

This is key for Aurania and Ecuador because these deposits tend to be so large. So far Aurania has tracked Kupferschiefer material as long as 22 kilometers (22 km) and 1 km wide. You can see in the picture above a classic Kupferschiefer material with over $400 rock. It’s oxide copper highly suitable for inexpensive processing with SX-EW techniques.

I would love to see Aurania and Keith Barron discover the Lost Cities and I have no doubt that in time they will. But if they screw up and stumble across a billion-dollar copper/silver prospect by accident, well, I’ll take that too.

The good news is that Aurania has a new highly potential target. The bad news is that big projects consume big money. Aurania is going to need to do a financing soon. I think the big boys understand that and are driving the share price down in order to get a lower price in a private placement. Not all sharks are found in oceans.

Aurania is an advertiser. I have participated in two private placements and will participate in more. I am biased, do your own due diligence.

Aurania Resources
ARU-V $2.99 (Jun 21, 2019)
AUIAF-OTCQB 32.9 million shares
Aurania Resources website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with …read more

Gold price barrels through $1,400

Gold hit an intra-day high of $1,415 an ounce on Friday

The rally in the price of gold went into overdrive on Friday with the metal hitting a near six-year high on a combination of a weaker dollar, slumping bond yields, geopolitical uncertainty, trade tensions and institutional money pouring into the sector.

Gold for delivery in August, the most active futures contract trading in New York, touched a high of $1,415.40 an ounce level overnight but by lunchtime was back just above the $1,400 level.

That’s up nearly $50 an ounce for the week and the highest since September 2013. Contracts representing 45m ounces had been traded by 1pm in New York on Friday meaning that over the last two days the equivalent of almost a year’s worth of gold mining exchanged ownership.

“There has been a dramatic change in sentiment,” Adrian Day, president of Annapolis, Maryland-based Adrian Day Asset Management told Bloomberg.

The wire service also quotes from a report by investment bank Citigroup saying “the enthusiasm is justified” and $1,500 to $1,600 an ounce is possible in the next 12 months under a bullish-case scenario that includes borrowing costs falling below zero.

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Chile’s Codelco has already lost $17.5 million on Chuquicamata strike

Chile’s Codelco, the world’s largest copper producer, has already lost $17.5 million due to an ongoing strike at its Chuquicamata copper mine, its largest operation, as the labour action enters week two.

About 3,200 unionized workers in
Chile downed tools on June 14, after failing to reach a deal with the state-owned
miner.

According to local mining consultant PLUSmining, the copper giant is losing about $2.5 million per day in missed production, estimated in 500 tonnes per day.

That means the impact on Codelco’s revenue is already of the tune of $17.5 million, while lost production amounts to about 3,500 tonnes.

The copper giant is losing about $2.5 million per day in missed production, equivalent to nearly 500 tonnes per day.

The company, which last month
reported an 18% year-on-year drop in its first-quarter copper output, is in the
midst of a $5.6 billion project to turn century-old
Chuquicamata, its second largest copper operation by size, into an
underground mine.

The last blast at the bottom of the
open pit was carried out in November, though copper extraction goes on.
The company has said it plans to gradually decrease activities

Chuquicamata’s switch is part
of Codelco’s 10-year, $39 billion-overhaul of its core assets, and is
expected to extend the iconic mine’s life by at least 40 years. It will also
allow the copper giant to keep up production rates, despite falling ore grades
and increasing costs at its operations.

Annual production from “Chuqui” —
as locals call it — once it has fully transitioned to underground extraction is
projected to be 320,000 tonnes of fine copper and 15,000 tonnes of molybdenum.

Codelco, which hands over all of its profits to the state, holds vast copper deposits, accounting for 10% of the world’s known proven and probable reserves and about 11% of the global annual copper output with 1.8 million metric tonnes of production.

Ugly trend

The world’s main copper producing
nations have been showing output declines this year, according to the
International Copper Study Group
(ICSG).

Global production declined 2.4% in
February 2019, when compared to the same month last year, with 1,515kt
(19,749ktpa) of contained copper produced globally.

Chile led the pack with output down
7.1 % y/y to 415.9kt (5,412ktpa) while Peru, the second main global producer,
saw its output fall by 5.1% y/y to 176.1kt (2,296ktpa).

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Adani begins construction at Carmichael coal complex

Adani Group has kicked off construction at its controversial Carmichael coal and rail project in Australia’s Galilee Basin after receiving last week approval from the Queensland government to break ground.

The company said it already had around 60 workers at the
location, in charge of surveying and clearing for access to the mine site.

Announcement triggered rally in the Queensland’s capital on Friday evening, which more that 700 people calling on the state government to “tear up the contracts” and “revoke” approvals for the mine.

They are also undertaking fencing, geotech and water management activities which “are being conducted safely and in line with environmental approvals,” the company tweeted.

Queensland’s Department of Environment and Science (DES) approval of Adani’s groundwater management plan (GDEMP) for the mine last week, marked the end of an almost 10-year wait, during which the proposed mine faced steady resistance by environmental groups

But opponents to the project are not resting. More than 700 people rallied in the Queensland’s capital on Friday evening, calling on the state government to “tear up the contracts” and “revoke” approvals for the mine.

Local and international detractors, including the
scientific, educational and cultural arm of the United Nations, (UNESCO), worry about the impact on marine ecosystems,
particularly by the Great Barrier Reef.

The Carmichael project, acquired by the Indian conglomerate
in 2010, is expected to produce 8-10 million tonnes of thermal coal a year and
cost A$2 billion ($1.4 billion) during its initial phase.

According to official estimations, the mine will contribute
$2.97 billion each year to Queensland’s economy and will create 1,500 direct
and 6,750 indirect jobs during ramp up and construction.

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Canada’s Trans Mountain pipeline work greenlighted for fall

Providing there are no excessive regulatory delays, work on the Trans Mountain pipeline expansion should resume in late summer or early fall, and oil should be flowing through a new pipeline by the second or third quarter of 2022, says Ian Anderson.

The former Kinder Morgan Canada (TSX:KML) president, who is now CEO of the Trans Mountain Corporation – a Crown-owned company – spoke to the media Wednesday, June 19, one day after Prime Minister Justin Trudeau once again gave the pipeline twinning project the green light.

Work on the expansion project was halted in August 2018 by the Federal Court of Appeal.

The expansion project involves the twinning of the existing Trans Mountain pipeline, which runs 1,150 kilomtres from Edmonton to Burnaby, and the expansion of the Westridge Marine Terminal in Burnaby.

The new second line will be dedicated to crude oil, while the existing pipeline will remain a batched pipeline that can move a variety of petroleum products, including refined fuels.

Before work can recommence, Anderson said the company needs a certificate from the National Energy Board (NEB). Hundreds of permits are also needed from the province and municipalities.

“If things go according to plan, I can see shovels in the ground in September – early September”

CEO, Trans Mountain Corporation

Prior to the work being halted last year, there were a number of NEB condition filings that had to be made, variances approved, and route hearings to determine specific route locations.

“The process we’ve got to go through now with them is how to, in effect, bring forward or reinstate all of that work so we can commence again from a place we were before,” Anderson said. “That process will take, hopefully, some number of weeks, and not months, to solve.

“If things go according to plan, I can see shovels in the ground in September – early September,” Anderson said.

Timing is important, since there are seasonal construction windows that limit when the work can be done. There are, for example, migratory bird and fisheries windows the company must work within. And the season for work on the Coquihalla is short, because winter comes early and stays late at higher elevations.

Delays add to costs. Anderson confirmed that the project will likely exceed the last capex estimate of $7.4 billion, but could not say if it will come closer to the $9.3 billion that the Parliamentary Budget Officer estimated in January.

“I can give you some certainty that the number will north of 7.4 (billion) and I’ll disclose a final number in due course,” he said.

“Once there’s more certainty on that regulatory process and we know when we can get back to work, we’ll be in a better position to provide an update on both the specific schedule and project costs. As you can appreciate those two are connected.

“We all know that delays are going to push up costs. We’re also hitting a different market in terms of competing projects and access to labour.”

Indeed, the project will be competing with the $40 billion LNG Canada project for workers, …read more