Advanced Zinc Explorer in Ireland Looks 'Attractive'

Source: Clive Maund for Streetwise Reports 03/21/2019

Technical analyst Clive Maund explains why he sees this zinc explorer as a good value.

To be sure, Group Eleven Resources Corp.’s (ZNG:TSX.V; GRLVF:OTCQB) stock looks cheap here and good value. It is an advanced zinc explorer based in Ireland, the Emerald Isle, and it is understood that it is very much liked by Peter Megaw, of MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) fame. MAG Silver in fact owns 21.4% of its stock (fully diluted) while Teck Resources Ltd. (TCK:TSX; TCK:NYSE) owns 4.3% fully diluted.

An 18-month chart is sufficient to show the entire history of the stock. After starting trading in December of 2017 it wasted no time in going straight into a bear market, which persisted until last November when a trading range started to form that is believed to have evolved into a Triple Bottom. With the current quite tight bunching of the price and its moving averages, the conditions are ripe for a reversal here, with the stock trading at less than a third of its price at inception. We would like to see stronger volume indicators, but these sometimes improve with the price rather than ahead of it.

Although it is of limited use technically, the 6-month chart shows recent action in more detail, and on it we can see that the stock is oversold here near to the bottom of its trading range and cheap. It is completely “off the radar” of most investors, which is a big reason why it is good value.

The attractive and interesting Corporate Presentation includes pages showing the long-term course of the zinc price and current low LME inventories as well as the capital structure and usual details about projects, management etc.

The conclusion is that Group Eleven is an attractive, good value zinc investment here, which due to its low price must be classed as speculative Because it is still in a basing phase, we cannot and do not expect it to go storming out of the gate two days after we buy it, but on the other hand it is certainly not overvalued, and when it does decide to move it should make good percentage gains from the current price.

A disadvantage for company employees recruited from overseas is the rotten cloudy damp maritime climate in Ireland, but this can be mitigated by listening to Irish music in pubs, assisted by drinking Irish beer, songs such as The Orange and the Green, which is about a lad who turns the apparent misfortune of having a Catholic (Irish Republic) mother and a Protestant (Ulster) father to his advantage. Here is a clearer version with lyrics and a version including the U.S. Army Band in Florida.

Group Eleven Resources website.

Group Eleven Resources Corp ZNG.V, GRLVP on OTC, closed at C$0.12 on 18th March 2019.

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Target Price Raised on Metals Firm 'Growing Substantial High-Grade Project'

Source: Streetwise Reports 03/21/2019

The newly announced resource update and what it means in terms of project economics is captured in a ROTH Capital Partners report.

In a March 18 research note, analyst Jake Sekelsky reported that ROTH Capital Partners raised its target price on Buy-rated SilverCrest Metals Inc. (SIL:TSX.V) to CA$5.50 per share from CA$5 because its “positive resource update sets the stage for a robust preliminary economic assessment (PEA).”

Sekelsky reviewed the updated Las Chispas resource estimate and how it compares to the previous one.

The new estimate encompasses Indicated resources of 1 million tons (1 Mt) at average grades of 6.98 grams per ton (6.98 g/t) gold and 710.6 g/t silver, or 1,234 g/t silver equivalent (Ag eq), for a total of 39.8 million ounces (39.7 Moz) Ag eq.

Inferred resources now total 3.6 Mt at average grades of 3.32 g/t gold and 332.5 g/t silver, or 68.1 Moz Ag eq.

The entire Las Chispas resource grew 24% to 108 Moz Ag eq, in line with ROTH’s estimate of 110 Moz. Sekelsky purported that SilverCrest could potentially add another 25 Moz to the resource by 2020, taking the total to 135 Moz Ag eq, in light of its “aggressive exploration plans and past hit rate.”

The increase in ounces along with a boost in grades since the previous resource estimate are reflected in the update, highlighted Sekelsky. That should make for a robust maiden PEA, expected in Q2/1, which depicts a “high-grade, low-capex project generating significant free cash flow.”

Sekelsky concluded, “Las Chispas is a rare asset that has the potential to generate positive cash flow at even lower metals prices, an attribute we believe majors would gravitate toward in a lower price environment.” As such, the project is a prime takeout candidate, particularly as SilverCrest continues derisking it and growing its resource.

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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 …read more

Update on Tanzanian Royalty Exploration Company

Source: Clive Maund for Streetwise Reports 03/21/2019

Technical analyst Clive Maund charts this exploration company and explains why he believes it is at an “excellent entry point.”

Tanzanian Royalty Exploration Corp. (TNX:TSX; TRX:NYSE.MKT) is a good performer technically and we have traded it well, buying it on the 20th January, scaling back positions when it got very overbought on 29th January, bought back what we’d sold at a better price on the 8th February, scaled back positions again on the 15th Feb. after another rally, and bought it back after another dip on 22nd Feb. as you will see on its latest 3-month chart shown below. We could have done what we did on two prior occasions and sold some at the late February peak and bought back on the dip to the lower boundary of the range about a week ago, but we never got round to it, and also because there is an increasing risk that such aggressive trading will result in missing “The Big One,” which is where it breaks out of the top of the pattern to commence its next upleg.

Speaking of upside breakouts, Tanzanian Royalty now looks about ready to break out of this trading range and embark on the next upleg, which is likely to be big and could be huge if the deep drill rig now working its way through the planned open pit at Buckreef to probe what lies beneath strikes it rich—if it does we could be looking at a world-class gold mine here, and at a time when the long sector malaise is coming to an end. The technical chart setup looks very positive indeed as we can see on the range of charts presented below. The upward skew of the current trading range makes it a very bullish “Running Flag,” an interpretation that is supported by the now strongly bullish volume pattern, with volume having ebbed away to a low level as the Flag pattern approaches completion. The duration of this Flag has allowed the overbought condition of various oscillators resulting from the spike higher in January (which we rode) to almost fully unwind, and the rising 50-day moving average to almost catch up with the price, which means that the stock is “gassed up” for the next run.

The 6-month chart allows us to view a less cluttered picture over a timeframe twice as long, and enables us to look at additional indicators like the Accumulation line and On-balance Volume line added to this chart. They look OK with the latter indicator being the strongest of the two.

On the 4-year chart we gain a broader perspective and you can see why we were wary of a deeper correction in recent weeks—the strong upleg in January stalled out exactly where one would expect, at the resistance at the 2018 highs, which is why we sold almost …read more

Rise Gold Drills 90.4 g/t Gold over 4.7 Meters

Source: Bob Moriarty for Streetwise Reports 03/19/2019

Bob Moriarty of 321 Gold provides an update on a company with a past-producing gold mine in California.

Rise Gold was the subject of a piece by me back in early 2017. Anyone interested in the company should read the piece. The purchase by the company of the Idaho-Maryland gold mine for $2 million was an extraordinary deal for Rise.

Rise just released the most interesting results. Remember, this is a former gold mine shut down in 1942 as a result of the war. At the time it was the 2nd highest-grade gold mine in the US showing a head grade of over ½ ounce gold per ton. The latest assays showed 90.4 g/t over 4.7 meters and another assay of 35.6 g/t Au over .90 meters. Historic records show the mines had reserves of 705,000 ounces of gold at a grade of about 23 g/t in 1942. The gold hasn’t gone anywhere since.

This would be just another boring story about a former high-grade gold mine in California that some promoters are pushing in a pipe dream about going into production again except for one tiny factor. In their March 1, 2019 press release Rise reported that Yamana (YRI-T) bought an additional 10 million shares bringing their total up to 28 million shares and 14 million warrants.

Yamana is not buying shares in some pipe-dream junior with grandiose ideas about the future in the hope of making a profit on trading the shares. At some point they will make an offer. Look for it to be a lot higher than today’s price.

Rise Gold was an advertiser two years ago. They are not an advertiser today. I participated in a private placement years ago and have picked up shares in the open market. I am biased. Do your own due diligence.

Rise Gold Corp.
RISE-C$0.115 (Mar 19, 2019)
RYES OTCQB 116.1 million shares
Rise Gold 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 more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Rise Gold. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed …read more

Testing Shows Firm's Formulas Extract Palladium, Gold in High Percentages

Source: Streetwise Reports 03/19/2019

The company continues to optimize the chemical and leaching conditions for its recovery process.

EnviroLeach Technologies Inc.’s (ETI:CSE; EVLLF:OTCQB) proprietary formula can extract palladium out of a multi-metal source and reduce it to an aqueous solution, it announced in a March 18, 2019 news release.

Specifically, on initial testing, the company’s product recovered 90% of contained palladium from ceramic-based catalytic converters in about two hours’ time. Electrowinning tests showed, on one sample, an 83% palladium recovery from a solution, which was achieved within 40 minutes.

The global automotive catalytic converter market report is expected to reach $183.4 billion by 2022, for a resulting CAGR between 2016 and 2022 of 7.7%, the release cited from an Allied Market Research report.

EnviroLeach will conduct further in-house testing to optimize chemistry and leach components, after which an external laboratory will evaluate them for validation.

Study also is being conducted on the use of EnviroLeach’s technology to extract other platinum group metals, such as platinum. Testing on a pilot scale in that regard could take place in Q3/19 or Q4/19.

A news release from March 11, 2019 announced results of testing by the outside firm SGS on the ability of EnviroLeach’s technology to extract gold. EnviroLeach contracted with this inspection, verification, testing and certification entity to conduct validation testing on its proprietary formulas.

SGS did the first set of leach tests on high-grade gravity concentrate tails and flotation concentrates. On tests using oxidized material resulting from autoclaving and roasting, the firm achieved more than 94% recoveries within two hours. It extracted 85% gold from the table tails and 90% from the flotation concentrate, both within 24 hours.

The second set of tests resulted in 96% recoveries on the autoclaved sample and 94% on the roasted sample, both within two hours.

“These positive, impartial test results are similar to hundreds of previous tests performed by our company and independent metallurgical labs all across North America,” EnviroLeach Executive Vice President Ish Grewal said in the release. “These test results also highlight the accelerated leach kinetics using EnviroLeach formulas on both the autoclave and roasted samples.”

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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 sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Enviroleach. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or …read more

'Multi-Million-Ounce Gold Giant' Is Stirring. . .and the Stock Is at an All-Time Low

Source: Knox Henderson for Streetwise Reports 03/19/2019

Knox Henderson explains why he believes Terraco Gold, with two big catalysts coming and a royalty in a large Nevada gold deposit, should be trading at three times its current share price…at the very least.

The beauty of running a private equity (PE) firm is the “private” component. So, in late 2015 when a subsidiary of PE firm Waterton acquires the 5.1-million-ounce Spring Valley gold deposit in Nevada from a very public Barrick Gold—and its then junior partner, Midway Gold—the flow of information comes to a grinding halt. This leaves other stakeholders, like the shareholders of Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK), which has an up-to 3% royalty on the lion’s share of the deposit, lost in the dark.

In downward markets PE firms have the deep pockets to buy out, outbid and outlast their adversaries for the assets they so desire. Back in 2015, Waterton was able to capitalize on a bankrupt Midway Gold, and a much-in-debt Barrick Gold that decided to sell its majority stake in Spring Valley as part of bundle to eliminate US$720 million of debt. Remember late 2015 when gold was free-falling down to $1,050? Well that is especially problematic for the majors, never mind the juniors.

So, an opportunistic Waterton, which manages in the range of $US 2.5 billion, got a sah-aawwweeeeeet deal to pay only US$25 million for Midway’s 30% stake out of bankruptcy court. This is prime Nevada real estate with 4.1 million ounces of gold in the Measured and Indicated category and about 1 million in the Inferred category as defined by stringent NI 43-101 standards. Separately, it also paid Barrick US$110 million for Ruby Hill and its 70% of Spring Valley. We believe the bulk of this purchase price was allocated to Spring Valley (in the US$85–90 million range) as Ruby Hill is in the sunset stage of life. Waterton, through its subsidiaries, thus paid somewhere north of US$100m for 5 million ounces at Spring Valley—that’s $20 per ounce of gold!—all in Nevada’s crazy-rich Humboldt Trend.

Spring Valley is nestled in a producing trend that has seen a lot of activity. It lies just north of Coeur Mining’s Rochester Mine that has produced 139 million ounces of silver and 1.5 million ounces of gold to date and is still producing. The trend also includes serveral other notable past producing and current development projects subject to recent acquisition (2018/2019) by larger companies, such as Relief Canyon where Americas Silver is in process of acquiring Pershing Gold; Florida Canyon, recently acquired by Alio Gold; and the Lincoln Hill and Wilco projects purchased from Rye Patch in 2018 by Alio Gold in March and then “flipped” to Coeur in the same year for US$19 million.

It’s a long-and-winding tale how all this came to be, but today, in early 2019, it is only important to know this: …read more

Target Price Raised on Report of Possible Mine Throughput Increase

Source: Streetwise Reports 03/19/2019

A BMO Capital Markets report discussed this gold company’s 2019 production guidance and the potential impact of greater capacity.

In a March 13 research note, analyst Andrew Mikitchook reported that BMO Capital Markets increased its target price on Wesdome Gold Mines Ltd. (WDO:TSX) to CA$6 per share from CA$4.75 on news of a potential throughput increase at its Eagle mine. The Outperform-rated stock is currently trading at around CA$4.36 per share.

The boosted throughput that may be feasible, up to 800 tons per day, would come from a newly discovered eastern parallel zone that is close to the shaft infrastructure, Mikitchook explained. At that higher throughput rate, the underground mine could produce more than 100,000 ounces a year (100 Koz/year) versus the 72–80 Koz/year that management guided to for 2019.

The analyst highlighted that this new eastern parallel zone demonstrated initial high-grade intercepts of 41.4 grams per ton (41.4 g/t) over a 4.2 meter (4.2m) width and 24.3 g/t over 1.5m. The zone remains open up and down plunge and along strike. Wesdome intends to further test it this year.

For 2019, management has guided to a year-over-year production increase and “some of the highest grades mined at Eagle,” at 15.5–16.5 g/t, moving toward stronger grades in H2/19, Mikitchook pointed out. For these reasons, “mining performance from Eagle will be topical in 2019.”

Mikitchook also noted exploration remains a priority and catalyst for Wesdome with 114,000m planned for Eagle plus 59,000m for Kiena.

He concluded with, “Wesdome remains a compelling name for a takeover target as it gains visibility to producing 200 Koz annually in a top mining jurisdiction, with a track record of exploration success.”

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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 …read more

Company on Target to US Copper Production by Q4 2019

Source: Maurice Jackson for Streetwise Reports 03/18/2019

Matt Gili, CEO of Nevada Copper, talks with Maurice Jackson of Proven and Probable about his company’s progress toward beginning copper production by the end of the year.

Maurice Jackson: Joining us for a conversation is Matt Gili, president, CEO and director of Nevada Copper Corp. (NCU:TSX), which is on target to U.S. copper production by Q4 2019.

Nevada Copper has a number of successes to share with reader. But, before you share the unique value preposition of Nevada Copper, Mr. Gili, for readers who may not be familiar with the supply and demand fundamentals regarding copper, please provide us with a 10,000-foot overview.

Matt Gili: When you look at the copper fundamentals, we see a very steady and predictable increase in demand of copper, modest amount, 1.5% per year. We see the move towards electrification of vehicles consuming more copper. We see other things that are offsetting that, but overall, a steady predictable 1.5% increase in the global demand for copper. Where the story really gets exciting, from the Nevada Copper standpoint, is with regards to the supply for copper. What we’re seeing is a lot of restrictions in future supply. We’re seeing a lot of difficulties on bringing on a future supply and backed up by work done by Wood Mackenzie and others, we’re projecting that by 2025, the world will be in a supply deficit of upwards of 6 million tonnes of copper per year. This just really supports what we’re doing in Nevada Copper in setting up the next copper mine.

Maurice Jackson: Now that we have an overview of the supply and demand fundamentals for copper, Matt, let’s discuss how someone listening may position himself prudently as a beneficiary. For someone new to the story, can you give us a very quick overview of Nevada Copper?

Matt Gili: Certainly. Nevada Copper, who’s Nevada Copper? We have an asset in Nevada called Pumpkin Hollow. This is our chief asset. It consists of two deposits: an underground deposit and an open-pit deposit for copper. We’re currently in the construction phase for the underground project with production from that underground project coming online later this year. I think we’ll talk more about that later. Regarding the open pit, we’re currently in the process of wrapping up the prefeasibility study for the open pit. You’ll see that being published in April of this year. Then, we have a regional land package of well over 15,000 acres that we are looking at really understanding, really unlocking the full value from that land package. That’s really Nevada Copper, building a copper mine coming into production later this year, with a lot of expansion into an open-pit mine, as well as regional exploration.

Maurice Jackson: Let’s provide readers the latest updates on Nevada Copper, as the company has been very proactive on a number of fronts. Please provide us with …read more

Firm's British Columbia Property Returns 4.81% Light Rare Earth Oxide

Source: Streetwise Reports 03/16/2019

This Canadian company intends to build upon these initial positive results.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB) announced in a news release the initial composite head assay results of the 30-ton bulk sample taken from its Wicheeda property in British Columbia.

Highlight assay results, determined by the firm SGS Canada Inc., included 1.77% lanthanum oxide, 2.34% cerium oxide, 0.52% neodymium oxide and 0.18% praseodymium oxide—for a total of 4.81% light rare earth oxides.

The significant presence of praseodymium could impact advancement of Wicheeda from an economic standpoint, “given recent indicative light rare earth elements oxide prices and their potential impact on Wicheeda, which has been historically viewed as a cerium-lanthanum-neodymium deposit,” the release noted.

Defense Metals will use these findings when analyzing results of subsequent tests, such as bench-scale flotation optimization and hydrometallurgical work. The company will follow those efforts with larger-scale pilot plant testing on the entire 30-ton sample to better understand the deposit and potential development of it.

Max Sali, CEO and director of Defense Metals, stated, “We look forward to building on these positive initial results, which will form the basis from which to gauge the success of subsequent test phases including bench-scale flotation optimization and hydrometallurgical testing, which are preparatory to initiation of larger scale pilot plant testing on the full 30 tonne sample.”

The company explained that neodymium/praseodymium is used to create “high-power neodymium-iron-boron (NdFeB) magnets,” which are a key technology in the defense, clean energy, consumer electronics and electric vehicle sectors. Uses of these magnets include computer hard disk drives, wind turbine generators, speakers/headphones, MRI scanners, cordless tool motors and motors in hybrid and electric vehicles.

Read what other experts are saying about:

Defense Metals Corp.

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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: Defense Metals. 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 …read more

Resource Firm Confirms Graphite Carbon Below Surface Saprolite at Guinea Deposit

Source: Streetwise Reports 03/16/2019

The next step for the Canadian company is a mineral resource update for this asset.

SRG Graphite Inc. (SRG:TSX.V) announced in a news release the final results from its 2018 drilling campaign at its Lola graphite deposit in Guinea, West Africa.

These results are from 71 boreholes, ten of which were drilled at depth to confirm the presence of graphitic carbon (Cg) within the rock assemblage below the weathered, graphite-rich saprolite at the surface. The new findings confirmed that to be the case.

SRG reported these highlight assays:

Hole LL39-162665: 0 meters (0m) at 7.74% Cg including 10.50m at 13.46% Cg, from surface

Hole LL36-369056: 44m at 5.56% Cg including 20.46m at 7.93 % Cg, from 2.6m

Hole LL36-384159: 72m at 6.50% Cg including 19.00m at 9.25% Cg, from surface

Hole LL39-085636: 45m at 4.94% Cg including 91.85m at 6.90% Cg, from 8.4m

Hole LL42-037030: 65m at 4.16% Cg including 116.81m at 6.18% Cg, from 4.8m

The 2018 drill program encompassed 638 boreholes for 22,239m. Drilling conducted to date covers about 60% of the deposit’s surface footprint, roughly on average the first 30m of depth from the surface. Results from all of these boreholes will be included in an updated resource estimate for the feasibility study anticipated in H1/19.

“We are very pleased with the 2018 drilling campaign. The results of these latest drill holes continue to show the size potential of the deposit,” said Dr. Marc-Antoine Audet, lead geologist. “We are also excited with the results of the 10 at-depth boreholes, which confirm our thesis of continued mineralization at depth and further expands the deposit’s potential.”

Read what other experts are saying about:

SRG Graphite Inc.

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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: SRG Graphite. 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 …read more

Sesmarias Stepout Drilling Successful So Far for Avrupa Minerals

Source: The Critical Investor for Streetwise Reports 03/16/2019

The Critical Investor discusses insights management has gleaned from recent drilling and why they have the potential to cause a share re-rating.

It took Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) a few weeks longer than anticipated to release the first drill results of the Q4 2018 program on the Sesmarias project, part of its Alvalade license located in Portugal, as bringing good news right before PDAC usually generates healthy attention, but the numbers came out pretty interesting anyway in my view. The self-funded 2018 drill program appears to be a real eye-opener for management, as the recently completed 2,498 meters of drilling (6 holes) not only changed their insights on the position of the mineralized lenses discovered so far, but also showed other potentially mineralized structures by intercepting stockwork besides lenses. Step-out drilling of the known 10 Lens is also going according to plan, adding decent tonnage rapidly. Here is an overview of the identified mineralized envelopes/zones at Sesmarias:

 

The 10 Horizon as defined on this map from the February 11, 2019, news release has been promoted to the 10 Lens now, as sufficient drill results have been obtained so far. Management also provided investors with a schematic long section in the same news release, which is a conceptual drawing of geology and mineralized bodies:

Highlights from the program include the following results according to the latest March 11, 2019, news release:

SES026 intercepted 28.95 meters of 0.48% copper, 0.77 g/t gold, 15.7 ppm silver, 0.52% lead and 1.31% zinc, and extended the 10 Lens by 300 meters to the north from previous drilling.

The full table of results of hole SES026 looks like this:

This generates a copper equivalent grade of 1.86% CuEq, which is consistent with the other holes drilled into the 10 Lens, as can be seen here as a reminder:

 

It is also in line with the average grade of 1.5–1.7% CuEq management is looking for when building tonnage for an eventual deposit at Sesmarias.

The 10 Lens is now at 600 meters x 300 meters x 25 meters. Mise-à-la-masse (MALM) geophysical anomalism extends another 150 meters past SES026 location.

These dimensions generate 4.5 million cubic meters, which in turn result into 18 million tonnes (Mt), when using a conservative gravity of 4t/cubic meter (m3). Average gravity is estimated by management to be ranging from 4 to 4.4t/m3. Using a midpoint would render 18.9Mt. It is interesting to see that the follow-up downhole survey (MALM) detected a further 150m extension, which hypothetically could bring in another 4Mt if continuous. The minimum economic tonnage target of management is 25Mt, so things are progressing quite nicely so far.

Discovered a possible new mineralized horizon in SES026, located above the 10 Lens, and intersected it again in SES027 and SES029.

No economic mineralization has been hit there yet, but according to management the drill bit did hit sulfides, so there …read more

Quadruple-Witching Leading into Saint Paddy's Day

Source: Michael J. Ballanger for Streetwise Reports 03/16/2019

Precious metals expert Michael Ballanger riffs on St. Patrick’s Day, COT reports, quad-witching weeks and gold.

I was sitting in our local Port Perry pub this week when I overheard a couple of the local senior citizens discussing the upcoming arrival of the Saint Patrick’s Day celebration where everybody dons a green shirt or a green tie or a green glass of beer and announces to the world that they have “Irish blood” flowing through their veins. Seizing upon yet another excuse for the initiation of “unnecessary drinking,” Canadians of all shapes, sizes, colors, creeds and denominations are suddenly transformed into quasi-Leprechauns to the extent that even my Jamaican ex-classmate from the 1970s would call himself an “overdone Irishman” in order to qualify for stupefaction.

It never ceases to amaze me how my Canuck brethren will leap upon any and all excuses with which to justify inebriation, present company of course excluded. In fact, I proudly declared to the world and in fact, to all of my actual friends of Irish lineage, that only true Canadians of colonial fiber and soul will raise a glass with nary a hint of excuse nor heed of time of day. The Canadian “Clarion Call To Imbibe” has been best described as “The Leafs won last night!” or “There was a goose on the lawn this marnin'” or “I woke with a pulse!” but what is truly memorable is the feeling you get when it’s March 16 and you look down the aisle and your 90-somethin’ granny has an armful of Guinness on her way to the checkout counter, her green Paddy cap setting an early tone to the festivities.

Gold and silver put up decent numbers for the week with gold reclaiming the $1,300 barrier and going out with the second weekly gain since my Feb.20 sell signal and subsequent $50 per (gold) ounce correction. Both investor sentiment and RSI have collapsed back down into neutral territory after being dangerously high during the February run to $1,349.80 but both have now begun an ascent since I replaced all leveraged positions sold on March 6 and 7 with gold in a two-day range of $1,280–$1,291. The past COT week ended on Tuesday March 12 with Commercials continuing to wind down the aggregate short position to 108,474 from 131,242 on Feb. 19 when price peaked.

The COT is mildly improved but as I wrote about last week, the set-up for the metals and miners is merely sufficient to justify a rally to $1,320–$1,330 and silver to $15.65–$15.75, which is a decent trade but by no means ideal, as the poor action in the HUI and silver relative to gold remains problematic. To have the Gold-to-Silver-Ratio (GTSR) at 85 is a sad non-confirmation to the long term veracity of the gold rally, which I seized upon last August at around the …read more