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

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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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

Project Generator Looks to Partner on Alaskan Prospect

Source: Maurice Jackson for Streetwise Reports 10/14/2019

Maurice Jackson of Proven and Probable discusses the latest developments in the Goodpaster District with this company’s chief executive and senior geologist.

Maurice Jackson: Joining us for a conversation are Gregory Beischer, the president, director and CEO, along with special guest, senior project geologist, Chris van Treek, of Millrock Resources Inc. (MRO:TSX.V; MLRKF:OTCQB), a premier project generator.

Pleasure to have you here to discuss the latest developments from Millrock Resources’ successes in the Goodpaster District of Alaska, which is becoming one of the most highly contested mining districts in the world.

Mr. Beischer, before we delve in today’s interview, please introduce us to Millrock Resources and share the investment opportunity that the company presents to the market.

Gregory B.: We are a project generator company, Alaska-based and focused. We come up with lots of early-stage exploration projects and then invite other companies to come in and earn their way into our projects.

We’ve stuck to this business model since our inception. The Goodpaster Project is our latest one, and one we’re particularly proud of to have in our property bank. Millrock has been pulling it together for almost five years now, and we have successfully made some really big moves the past spring to stake up the entire district. Now we’re really making some advancements on the project.

Maurice Jackson: Mr. Beischer, for first-time listeners who may not be familiar with the Goodpaster District of Alaska, please provide us with some background on the district and why Millrock Resources has been strategically positioning itself within the district.

Gregory B.: The Goodpaster District has been mined on a small scale by placer miners or alluvial gold miners. Around 1994, a big discovery was made that became the Pogo gold mine, operated for many years by Sumitomo Metal Mining Co. Ltd. (STMNF:OTCPK).

But more recently—just a about a year ago now—Australian midtier producer, Northern Star Resources Ltd. (NST:ASX), bought up the mine from Sumitomo and it’ll be making continuous improvements in the mine’s operation.

I believe that the Goodpaster District will be a gold mining camp of major proportions one day—multiple mines, ultimately, with an endowment measured in many millions of ounces of gold, and Northern Star has made some fantastic successes in the first year of operation.

Recently they have made new discoveries, recalculated the global resource and it’s now known that there’s 6 million ounces of resource and reserves on top of the approximate 4 million that have already been mined previously by Sumitomo.

So it’s a great mine. It’s a high-grade mine. Northern Star’s already made more discoveries, and they announced even more discovery holes northwest of the mine last week, which we’re quite excited about because we own ground to the northwest of the mine.

Maurice Jackson: Chris, how did Northern Star find their Goodpaster deposit?

Chris van T.: After acquiring the mine, they took a look back at the …read more

Prominent Gold Stock at 'Buy Spot'

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Source: Clive Maund for Streetwise Reports 10/14/2019

Technical analyst Clive Maund’s charts explain why he sees this stock as a buy.

Tanzanian Gold Corp. (TRX:NYSE; TNX:TSX) looks like it is at an optimum buy spot right now, for reasons that are set out on its latest 6-month chart below.

Because the nearby strong support is sharply defined, there is the option to set a close stop just beneath it, which risks being shaken out, of course.

Tanzanian Gold website.
Tanzanian Gold Corp., trading at $0.78; CA$1.03 at 12.32 p.m. EDT on 7 October 2019.
Originally posted on CliveMaund.com at 1.05 p.m. EDT on 7 October 2019.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) 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 …read more

Target Raised on Gold Miner 'On Track to Meet Overall Guidance'

Source: Streetwise Reports 10/14/2019

Q3/19 production totals from the company’s various assets are discussed in a CIBC report.

In an Oct. 10 research note, analyst Cosmos Chiu reported that CIBC raised its price target on Kirkland Lake Gold Inc. (KL:TSX; KL:NYSE) to CA$67 per share from CA$64 to reflect the company’s “outlook for near-term cash flow generation.” In comparison, the gold explorer’s stock is currently trading at around CA$59.14 per share.

Chiu reviewed Kirkland Lake’s reported production in Q3/19. Total production of 248,000 ounces (248 Koz) during the quarter was a miss, as CIBC expected 255 Koz. The 240 Koz, however, took total H1/19 production to 695 Koz, which is “on track to meet overall guidance of 950 Koz to 1 million ounces.”

The two strong project performers during Q3/19 were Fosterville and Macassa, Chiu noted, “demonstrating the quality of both assets that generate about 90% of the company’s overall production.” In Q4/19, production from those assets should more than offset any production shortfall from the Holt complex.

Fosterville’s Q3/19 production was 158 Koz, a 13% quarter-over-quarter (QOQ) increase, driven by head grades of 42 grams per ton (42 g/t), which exceeded CIBC’s 41 g/t projection. Year-to-date production at Fosterville was 427 Koz; annual guidance is 570–610 Koz. “We expect Q4/10 production of 171 Koz.”

Q3/19 production at Macassa, where grades and throughput exceeded those in Q2/19, was 63 Koz, reflecting a 30% QOQ increase. “The strong throughputs demonstrate to us the water ingress challenges from Q2/19 were indeed temporary,” Chiu indicated. Having produced 185 Koz so far in 2019, Macassa, too, is well on its way to meeting the year’s guidance of 240–250 Koz.

Chiu commented that “the strong performance at Fosterville and Macassa should carry Kirkland Lake comfortably into its overall guidance range.” Thus, CIBC raised increased its full-year production estimate on the miner to about 960 Koz.

Production at the Holt complex came in at 27 Koz, below CIBC’s forecasted 39 Koz. This resulted from a slower ramp-up at Holloway than anticipated. The complex’s H1/19 production was 82 Koz versus 2019 guidance of 140–150 Koz. CIBC expects Q4/19 production there to be about 30 Koz.

As for the balance sheet, Chiu reported that Kirkland Lake ended Q3/19 with $615 million in cash, a $146 million QOQ increase. CIBC expects the company to finish 2019 with more than $750 million in cash.

CIBC has an Outperformer rating on this Canadian gold producer.

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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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click

Junior Gold Stock 'On the Up'

Source: Clive Maund for Streetwise Reports 10/11/2019

Technical analyst Clive Maund charts a junior explorer and explains why he sees it as a speculative buy.

Although we are generally aiming to gravitate towards the large and mid-cap gold stocks during the early stages of the sector bull market, it is worth considering smaller stocks from time to time, if they measure up fundamentally and technically. Goldcliff Resource Corp. (GCN:TSX.V) is one such stock, and it has just successfully completed a round of financing.

On its latest 21-month chart we can see that about a week ago it tried and failed to break out of a large Cup & Handle base pattern. This failure was not negative, for several reasons. One is that the attempt occurred on strong volume, which is bullish, especially as this was the culmination of a build up in upside volume for a couple of months prior to it. Another is that the reaction back into the base was on much lighter volume—so it looks like it needs to do a little more work in the base pattern before it makes a sustainable breakout. Several factors support a successful breakout attempt soon. One is the buildup in upside volume already mentioned, another is the strong Accumulation line resulting from this, and still another is moving averages being in bullish alignment because the stock is trending higher.

We can see the breakout attempt and subsequent reaction back in more detail on the 6-month chart.

The long-term 18-year chart is also interesting, not just because it shows that Goldcliff is historically very cheap here, but also because it reveals that the Cup and Handle base that we looked at on the 21-month chart fits within a much larger Cup and Handle base that dates back to 2012–2013, which can be “opened out” using a log chart.

The conclusion is that Goldcliff is a speculative buy here after its reaction back of recent days to support in the vicinity of its rising 50-day moving average. The stock trades in light volumes on the US OTC market where limit orders should always be employed.

Goldcliff Resource Corp. website.

Goldcliff Resource Corp. GCN.V, GCFFF on OTC, closed at C$0.13, $0.095 on 4th October 2019.

Originally posted on CliveMaund.com at 4.15 pm EDT on 6th October 2019.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies …read more

East-West Trade War: Never Take a Knife to a Gunfight

Source: Michael Ballanger for Streetwise Reports 10/10/2019

Sector expert Michael Ballanger’s take on this week’s news from the financial markets informs his most recent investment decisions.

It’s a funny thing that happens when the stress of financial insolvency bubbles up to the surface. Decisions once considered “routine” (like brushing one’s teeth or walking one’s dog) suddenly have life-or-death outcomes, complete with cold sweats, sleepless nights and self-prescribed medicinal relief. Whenever I turn on the financial news stations, such as Fox, Bloomberg or CNN, I get the impression that I am watching Kabuki theatre, with exquisitely-designed puppets playing out exquisitely crafted scripts. I am immediately faced with the ageless problem of whether or not to consider the content “news,” or should I view it as simple “entertainment.”

By example, the saber-rattling of the United States of America in its anti-China rhetoric is playbill material of the highest order. You have in the red corner the aging heavyweight champion, long seated on the throne of global military and economic dominance, while in the blue corner, you have the spry young contender, hungry from decades of communist suppression and poverty with a highly motivated populace and a powerful and rapidly growing military. As much as the world may loathe it, it appears that the bell is soon to sound and the battle for global supremacy is about to begin.

The problem lies not in the war itself but in the collateral damage about to be inflicted upon the those close to the battlefield. However, at the end of the day, as the night when a youthful Rocky Marciano knocked an over-the-hill Joe Louis through the ropes, 330 million Americans trying to engage 1.433 billion Chinese is like taking a knife to a gunfight, and by that, I do not refer to an altercation of armies. I refer to an altercation of willpower.

For thousands of years, Chinese culture has taught people to think in terms of generations, while American culture has been trained in terms of days, hours and minutes. Since the end of WWII, America has fancied itself as the rightful heir to the hegemonic throne, aided and abetted by Hollywood, and its educational system that has promoted the concept that the only soldiers fighting on the side of freedom and against the Axis of Evil were the Yankees. All through the Cold War and now into the New Millennia, the Teddy Roosevelt concept of “speak softly but carry a big stick” has been replaced with “shoot first and ask questions later,” with the American forces, for the first to time invading a foreign nation—unprovoked (remember the imaginary weapons of mass destruction of the second Iraq Invasion?).

By contrast, the Chinese have opted for symbolic power, and as a result, the world is now ablaze with confrontations, literally everywhere, as the result of American-led imperialism. Only just recently has China flexed its muscle with the …read more

Analyst: Royal Gold's 'Q1 FY20 Sales Top Expectations'

Source: Streetwise Reports 10/09/2019

The details regarding those metals sales are provided in a BMO Capital Markets report.

In an Oct. 8 research note, BMO Capital Markets analyst Andrew Kaip reported that Royal Gold Inc.’s (RGLD:NASDAQ; RGL:TSX) Q1 FY20 revenue was higher than anticipated and costs, lower. Accordingly, “we expect positive revisions to Q1 FY20 earnings and cash flow,” he added.

Kaip highlighted the U.S. firm’s sales during the quarter, which amounted to about 60,000 ounces (60 Koz) of gold equivalent. The total was 13% higher than BMO’s estimate despite expectations for lower streaming sales resulting from production limitations at Mt. Milligan during calendar Q1/19.

The total gold equivalent ounces sold with respect to Royal Gold’s streaming agreements constituted 50 Koz gold, 510 Koz silver and 1,100 tons of copper.

Of the three metals, only gold sales were higher, thus primarily accounting for the beat. The reason for that was a drawdown and sellout of gold inventory, leaving the company with 18 Koz of the precious metal currently in inventory.

Royal Gold intends to release its Q1 FY20 results on Nov. 6, 2019, after the market closes and hold a conference call the following day at noon EST.

BMO has a Market Perform rating on Royal Gold. It is currently trading at around $129.88 per share.

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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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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 directors, officers, employees or members of their families, as well …read more

Great Bear's Drills Creating 'Large Continuously Mineralized Gold Zone' in Red Lake District

Source: Maurice Jackson for Streetwise Reports 10/09/2019

Chris Taylor, CEO of Great Bear Resources, speaks to Maurice Jackson of Proven and Probable about what the drills are turning up at the Dixie Gold Project in Ontario’s Red Lake District.

Maurice Jackson: Joining us for our conversation is Chris Taylor, the president, director and CEO of Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX).

Readers should note last month we conducted a very thorough, comprehensive interview with Mr. Taylor, highlighting the value proposition before us in Great Bear Resources.

Great Bear Resources has some important updates for current and prospective shareholders regarding the company’s continued progress from the ongoing 90,000-meter drill program on his 100%-owned Dixie Gold Project in the Red Lake district of Ontario. Before we address today’s exciting press release, Mr. Taylor, for someone new to the story, please introduce us to Great Bear Resources and what is the opportunity you present to the market?

Chris Taylor: Great Bear is a Canadian gold-focused exploration company and our project, the Dixie Property, is located in one of Canada’s best high-grade gold mining jurisdictions. That’s the Red Lake area of the province of Ontario. The Dixie Gold Project is 100% owned, and it’s located immediately adjacent to a highway beside power lines and about a 20-minute drive from other existing gold mines in this area. In addition to that, it’s an infrastructure-rich, high-grade gold project with gold results that go right to the surface beside a highway.

Maurice Jackson: Mr. Taylor, we have updates regarding drill fences and the consolidation of three zones. To have a better context on the successes of today’s press release, provide us with some highlights of the LP fault drill program to date.

Chris Taylor: The LP fault is a very large gold target on our project and this is about 20 kilometers long tip to tip. From the perspective of other projects in this area, this LP fault target is about the same strike length as all the other mines in the Red Lake District put together. If you stack them up all beside each other, those mines would be about the same size as the target that we’re working on now. What we’re seeing and what we’ve announced in our most recent news release is that we’ve been drilling along many kilometers of this fault, we continue to hit gold mineralization in every area. Initially in our exploration program we thought we had different gold zones developed along the fault and we called those the Bear Rimini, the Yuma and the Auro zones.

With the recent results, what we see is that drilling between and around these areas is successfully hitting the same styles of gold mineralization. That means instead having normal sized gold zones, what we have is a very large, an unusually large, and unusually continuous gold zone that goes right to surface. This truly is a very exciting …read more

Brazil Mine 'Demonstrates Growth is Real'

Source: Streetwise Reports 10/08/2019

Conclusions from a recent site visit are delivered in a CIBC report.

In an Oct. 4 research note, analyst Anita Soni reported that CIBC raised its valuation of Yamana Gold Inc.’s (YRI:TSX; AUY:NYSE; YAU:LSE) Jacobina mine in Brazil to $968 million from $925 million following a visit to the site.

“The mine showed well, with phase 1 optimization on track to be completed ahead of the scheduled mid-2020 commissioning and on budget of $5.3 million,” Soni commented. With the changes already made, the mill achieved 6,400 tpd (6.4 Ktpd) in Q3/19. The goal is 6.5 Ktpd. That rate would increase production to 180,000 ounces (180 Koz) by 2022, noted Soni.

Yamana is considering a phase 2 expansion to 7.5–8.5 Ktpd, which CIBC incorporated into its model on the company. This throughput rate would boost production to 200–225 Koz in 2022-2023. Capex for phase 2 is now an estimated $75 million, down from about $150 million. The company is targeting Q1/20 for releasing the phase 2 prefeasibility study.

“We believe the company may be able to achieve the 200–225 Koz level at 7.5 Ktpd with higher throughput grade of 2.5–2.6 grams per ton (2.5–2.6 g/t), currently at about 2.4 g/t,” Soni highlighted.

During the visit, management emphasized the exploration potential and long-term expansion opportunities at Jacobina, Soni reported. The current reserve estimate is 2.28 million ounces at 2.4 g/t, and all deposits there remain open along strike and downdip. Recent drill intercepts from the Canavieiras and Morro do Vento areas were positive, “including encouraging high-grade results near to mine infrastructure.”

She added, “Ultimately, the company is targeting raising the overall reserve grade of the deposit from the current 2.4 g/t at 13 years of mine life to over 2.6 g/t with a 20-year reserve life.”

CIBC has an Outperformer rating and a CA$4.40 per share price target on Yamana, whose stock is currently trading at around CA$3.46 per share.

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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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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 …read more

Analyst: Gold Explorer Warrants Top Pick Status

Source: Streetwise Reports 10/07/2019

The rationale for this view of the company is provided in an Echelon Wealth Partners report.

In an Oct. 3 research note, analyst Gabriel Gonzalez reported that Echelon Wealth Partners continues to consider Revival Gold Inc. (RVG:TSX.V) a Top Pick, as the company’s 2019 exploration program results “firm up the Beartrack-Arnett Creek thesis.”

That thesis is that potential exists for restarting a mining operation on the properties, perhaps first launching a heap-leach operation that capitalizes on the existing infrastructure at Beartrack and then moving to a larger-scale milling operation at Beartrack.

“We believe the combined Beartrack-Arnett Creek properties could yield a potentially compelling mining project for any intermediate to senior gold producer,” commented Gonzalez.

Through its 2019 exploration program, Revival extended mineralization at Arnett Creek, and a geophysics survey suggested further attractive potential there. As such, the explorer is updating its geological model such that it will inform additional Arnett Creek exploration.

As for what’s next, Revival should release phase 2 metallurgical test results on Beartrack’s mill feed before year-end 2019. Then in Q1/20, the company intends to complete a resource update that should outline additional growth potential at both properties. “On a headline basis, we expect the new resource to provide a maiden NI 43-101 compliant resource for Arnett Creek,” Gonzalez indicated.

Echelon has a Speculative Buy rating and a CA$1.90 per share 12-month price target on Revival. Its current share price is about CA$0.67.

“We believe that beyond 12 months, Revival could delineate a 3,000,000-plus ounce resource to support a preliminary economic assessment,” Gonzalez concluded.

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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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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 …read more

Avrupa Minerals Options Alvalade VMS Project to Trafigura-Mubadala JV Company

Source: The Critical Investor for Streetwise Reports 10/07/2019

The Critical Investor digs into what the proposed joint venture means for this junior project generator.

Despite being a hybrid prospect generator, meaning self-funding projects and also being funded by joint venture (JV) partners, Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) has finally succeeded in signing a nonbinding letter of intent (LOI), on Oct. 1, for a nice JV deal on its Alvalade project in Portugal. The deal is with a Spanish private mining company called Minas de Aguas Teñidas, S.A.U. (MATSA), owned in joint venture by juggernauts Mubadala and Trafigura.

This is an important development, as Avrupa wasn’t exactly in the position to raise enough cash to drill out Alvalade themselves, as management estimated the costs of a decent program on all targets at about CA$10 million (CA$10M). The new JV doesn’t provide this amount of financial budget either, but the initial CA$2.4M is enough for a solid start, and prevents a lot of dilution for Avrupa, whose market cap has gone down to a very tiny CA$3.3M. A financing of that size would have added 73% dilution.

Share price; 3-year time frame

After a decent start to 2019, with encouraging drill results, the company has had to wait for a new exploration permit, which is taking longer than expected. Also, the general base metal sentiment went down as the US-China trade war intensified and the global economy started lagging, making things difficult for Avrupa on the financing front. However, with this latest deal, if finalized, and with the permit hopefully being granted soon, the company can continue at full speed, at least for 2020. Let’s look into this JV in some more detail.

Avrupa Minerals has signed a LOI with MATSA to form an earn-in exploration and exploitation joint venture on its Alvalade copper-zinc massive sulfide project in the Iberian pyrite belt of southern Portugal. MATSA isn’t just your average Spanish company, as it is a 50:50 joint venture company of powerhouses Mubadala Investment Company, a very large Abu Dhabi-based global investment company with US$400 billion in assets, and Trafigura, one of the world’s leading independent and privately owned commodity trading and logistics houses, with an annual turnover of US$180 billion. MATSA owns and operates three mines in the province of Huelva (Andalusia, Spain), and holds 1,000 square kilometers of exploration licenses in the Iberian pyrite belt.

Management told me they have known MATSA for at least five years, having them coming over as early as in 2014 to check out projects for a potential JV at the time, to no avail. After the Sesmarias drill results came out earlier this year, they contacted CEO Paul Kuhn in April and showed new interest. Completion of technical and financial due diligence resulted in the latest announcement.

At the moment, according to management, the companies are working together to complete a definitive agreement …read more