2020 Forecast Issue Revisited: Precious Metals Are in the Danger Zone

Source: Michael Ballanger for Streetwise Reports 08/11/2020

Sector expert Michael Ballanger runs the numbers on current and future values of gold and silver given current economic conditions.

“I’d rather be a gold bug then a paper worm.” —Anonymous

In late 2019, as I was laying out the framework for the 2020 GGMA Forecast Issue, there was only one four-letter word that kept cropping up and that word was D-E-B-T (actually there were two, but one was what I mutter every time the auto spellcheck completes a word I do not intend to type).

Long before COVID-19 and government-imposed lockdowns cratered the global economy, I was formulating the future price of gold based upon the layers upon layers of sovereign, corporate and household debt sloshing around the world. I deduced that since faith in fiat currencies was rapidly evaporating, then the only remaining collateral left carrying the ability to underpin the gargantuan sovereign debt beast was gold.

In the 2020 GGMA Forecast Issue, I showed the world how, by using the United States as an example, one could actually put a U.S. dollar “fair value” on the price of gold by turning to the official stated reserves held by the world central banks (shown below) as measured against total national debt (which stood at approximately US$25 trillion in late 2019).

This calculation does not tackle the conspiratorial question of, “Is the gold really there?”, which dogs discussion groups constantly, citing multiple hypothecations of the U.S. reserve over the past five decades.

For purposes pertinent to this discussion, I assume that the U.S. owns the 8,134 metric tonnes of gold, which represents 17,927,336 pounds, or 286,837,376 ounces, of the shiny metal.

Fed Balance Sheet July 2020

Using pre-Repo and pre-COVID numbers for U.S. total national debt of US$25 trillion, that figure represents US$87,157. Using the same ratio of minimum debt to equity demanded by the mortgage industry of 10%, for U.S. debt to be properly collateralized, you would need a gold price of US$8,715.70 per ounce.

Now, here are a couple of items to consider:

1. Since Fed REPO operations commenced a tad over a year ago, the Fed balance sheet, which had “normalized” from US$4.5 trillion to US$3.8 trillion in 2018 and 2019 until the Powell REPO “pivot,” has exploded higher here in 2020 and stands at around $7 trillion, an 84% increase in one year.

2. Total U.S. debt, while impossible to get a reliable figure, has added a minimum of US$10 trillion and a maximum of US$20 trillion in that same one-year timeline, bringing us to an estimated US$35–45 trillion, thanks largely to the actions of both the U.S. Treasury and the Fed.

So, based on my formula of 10%, the new figure is found in a range between US$12,202 and US$15,688 per ounce. With gold at $2,048.90, it today trades between 13.06% and 16.8% of levels required to collateralize the total U.S. debt load at 10% equity. …read more

NOVO Resources: Australia's Next Gold Producer

Source: Maurice Jackson for Streetwise Reports 08/11/2020

Quinton Hennigh, CEO of NOVO Resources, sits down with Maurice Jackson of Proven and Probable to discuss how the company’s latest acquisition puts it on the fast track to production.

Maurice Jackson: Joining us for a conversation is the chairman and president of Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX), Dr. Quinton Hennigh.

What a delight to have you back on the program today as Novo Resources has just positioned itself ‘On the Fast Track to Production.’ Dr. Hennigh, before we begin, please introduce Novo Resources and the opportunity the company presents to the market.

Quinton Hennigh: Maurice, you and I have interviewed several times over the past three years, and I’ve always talked about NOVO being an explorer, but now I get to talk about NOVO going into production. So, here we are! We are moving towards production through a new acquisition. We are focused in Northwest Australia, in a region called the Pilbara. The Pilbara is better known for iron ore, perhaps, but we’ve discovered conglomerate gold deposits, which are unusual with respect to most gold deposits, but they’re what we think is a very, very big prize, and we’re just delighted to be able to now put these into production.

Maurice Jackson: Speaking of the Pilbara, let’s go to the 100%-owned Beatons Creek Project where Novo Resources has some breaking news. Dr. Hennigh, what would you like to tell shareholders?

Quinton Hennigh: Novo has been advancing Beatons Creek now for 10 years. We acquired the project through an earn-in joint venture with Millennium Minerals, the neighboring company when we first started. Mark Creasy also put in some ground into NOVO through a joint venture. It was a ground that surrounded the Beatons Creek area. So, that’s really where we got our start. We started drilling there way back in 2011. We advanced it to a point where we had an initial resource in 2013. We upgraded that resource in 2015, and we’ve been diligently working on this deposit since. We’ve been doing a lot of hard yards around things like native title, getting a commercial agreement with the native corporations. We’ve also gotten our permitting done. We have our oxide permitted and so forth. These are things that we’ve been ticking away at on the background. They’re all done. They’re ready. Why are they ready? Because we wanted to put this in production.

There’s a mill very nearby, belonged to Millennium Minerals, which was an operating company until late last year. They mined their oxide deposits, depleted those. Got into their sulfide, had some struggles around recoveries around the sulfide mineralization. So, they had cash flow issues and went into administration around November 2019. The company then went through receivership, and came out the other end in May. We’ve just announced that we’re acquiring the Millennium company in its entirety, out of the private current …read more

Fastest Growing Precious Metals Royalty Company Scoops Up Overlooked Assets

Source: Streetwise Reports 08/10/2020

Vox Royalty sees its intellectual property and years of experience in the royalty industry as major competitive advantages.

Vox Royalty Corp. (VOX:TSX.V) has been around since 2014 and went public in May, and it has moved quickly to amass a precious metals weighted portfolio of 42 royalties and streams, 37 of which were acquired over the last 18 months across 16 separate transactions.

“We set about building a company that could create strategic advantages in the royalty and streaming markets,” CEO and Chairman Kyle Floyd told Streetwise Reports. “Even though the company is only six years old, we’ve been around longer than most of the new entrants, and that’s allowed us to build the competitive advantages that we sought: intellectual property, deal sourcing networks around the world, and a team that is very technically savvy on the front lines of our business.”

Analyst Derek Macpherson of Red Cloud Securities has been following Vox and wrote on July 13, “We are encouraged by Vox’s pace and disciplined growth strategy. The ongoing acquisition of overlooked royalties at bargain prices highlights what makes Vox a unique new entrant in the royalty space.”

Vox concentrates on acquiring existing royalties—third-party royalties—rather than buying new royalties to finance mining companies. “Finding these third-party royalties allows us to uncover royalties that have better value and better attributes because we’re not constrained by going out to companies that need capital to finance a project,” Floyd said.

“Typically, we buy from holders of royalties that see the asset as non-core. Think about a mining company that holds a few royalties it doesn’t see any value in, or royalties that are held by telecommunications companies, technology companies, hearing aid companies, automotive companies, and others that don’t have a long-term or core interest in holding them,” Floyd explained, adding, “Sometimes they don’t even know that they’re holding these royalties.”

Vox’s deal sourcing efforts are led from the head office in Grand Cayman by Simon Cooper, who is both a geologist and mining engineer who has worked from Australia to the Congo to Kyrgyzstan and has been instrumental to Vox’s exponential growth since 2016.

One of Vox’s secret weapons is its proprietary database of over 7,000 royalties that it acquired when it purchased Mineral Royalties Online (MRO). With that merger, MRO’s co-founders Spencer Cole and Riaan Esterhuizen joined Vox. “Spencer and Riaan are two of the most impactful executives in the royalty industry; adding the two co-founders of Mineral Royalties Online to the Vox team added technical expertise as well as a lot of firepower to our deal sourcing engine,” Floyd said.

To create the proprietary royalty database, “we reviewed tens of thousands of public filings. We reviewed terabytes worth of private exploration reports. Our team worked on arrangements with different mining departments to access proprietary exploration reports and other primary data,” Spencer Cole, Vox’s Executive Vice President, North America, explained. “That resulted in a database …read more

Resource Firm Selects Experienced CEO for Royalty Subsidiary

Source: Streetwise Reports 08/10/2020

A Haywood Securities report states GoldMining’s management “continues to impress with its ability to attract high-profile talent.”

In an Aug. 5 research note, Haywood analyst Colin Healey reported that GoldMining Inc. (GOLD:TSX; GLDLF:OTCQX) appointed a new chairman and CEO for its royalty subsidiary, Gold Royalty Corp.

David Garofalo, a highly visible and successful executive who has overseen the development of numerous projects into producing mining operations, will head Gold Royalty and will serve on the advisory board of GoldMining Inc., Healey noted. “Mr. Garofalo’s reputation and credibility are major assets to GOLD.”

“GoldMining’s management team is one of its core strengths, with its creativity and capital markets experience. Today’s announcement furthers this as Mr. Garofalo brings significant experience to the Company’s recently formed Gold Royalty Corp. and the GoldMining Advisory Board with an impressive resume which includes oversight of the development of ‘over a dozen projects into producing mine,'” Healey wrote.

The analyst noted “Gold Royalty Corp, was formed earlier this summer as GoldMining took the first step in positioning its portfolio for increased visibility to investors of royalty streaming companies which tend to trade at substantial premiums to their respective NAVs (average of 2.0x NAV).”

The addition of Garofalo, Healey commented, will garner Gold Royalty more exposure and accelerate development of its royalty portfolio.

“We expect Mr. Garofalo to continue to build out Gold Royalty’s portfolio, tapping extensive relevant expertise,” added Healey.

Haywood has a Buy rating and a CA$4.25 per share target price on GoldMining, the stock of which is currently trading at around CA$2.26 per share.

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GoldMining 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.
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3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Target Price Raised on Firm Exploring Past-Producing Gold Mine in Quebec

Source: Streetwise Reports 08/10/2020

The recent revisions Laurentian Securities made to its model on Troilus Gold are presented and the effects are described in a report from the financial services firm.

In an Aug. 6 research note, analyst Jacques Wortman reported that Laurentian Securities revised its model on Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) in anticipation of the preliminary economic assessment (PEA) on the Troilus project expected in September and to reflect a higher gold price assumption.

Consequently, Laurentian increased its target price on Buy-rated Troilus to CA$4.70 per share from CA$2.85. The current share price is about CA$1.39.

Wortman outlined the changes Laurentian made to its Troilus model and their effects. As far as PEA-related revisions, Laurentian removed its prior assumptions about potential underground operations, expanded the scope of the mill and open-pit operations to 10,000,000 tons (10 Mt) per year from 7.2 Mt, increased initial capex for the open pit-only scenario to CA$450 million (CA$450M) from CA$350M, raised open pit, per ton mining costs and lowered per ton milling and general and administrative costs, decreased gold recovery to 85% from 86%, and shortened the mine life assumption to 13 years from 16.

The net results of these changes indicate that the “project economics could potentially still be robust despite delivering a lower gold head grade to the mill (0.89 g/t life of mine versus our prior blended underground/open-pit head grade of 1.1 g/t life of mine),” commented Wortman.

Regarding the gold price, Laurentian raised the estimate it is using in its Troilus model to US$1,850/oz from US$1,600/oz. This increased the net present value of Troilus Gold to US$354.8 million from US$200.3 million and boosted the net asset value of the Troilus project to $4.72/share from $2.88.

“As expected, lower grade projects generally demonstrate higher leverage to changes in commodity price,” Wortman commented.

He noted that upcoming catalysts for Troilus Gold regarding its Troilus project include results from metallurgical tests late this month and a maiden PEA in late September. “On the broader property, significant exploration drilling is planned with a focus on the area between the past-producing pits and the new Southwest Zone, as well as the Allonge Zone to the NE.”

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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: Troilus Gold. Click here for important disclosures …read more

Falcon Gold Hits Pay Dirt on Its Spitfire-Sunny Boy Claims in British Columbia

Source: Peter Epstein for Streetwise Reports 08/07/2020

Peter Epstein of Epstein Research provides his investment thesis for this company that just confirmed high-grade mineralization at its past-producing mine.

Falcon Gold Corp. (FG:TSX.V; FGLDF:OTCQB) announced channel sample results confirming high-grade gold mineralization on the past-producing Master Vein of its Spitfire-Sunny Boy (“S-SB”) project near Merritt, B.C. The samples come from a blasted trench along strike with the best sample averaging 59.8 g/t gold (1.74 oz./ton) over 2.2m, including 1.0m of 122 g/t gold (3.56 oz./ton). This is BIG news, in the middle of an epic bull market in precious metals.

Strong confirmation of high-grade gold at Spitfire-Sunny Boy

A second channel sample of the Master Vein, 125m southeast along strike, returned 11.4 g/t gold over 1.0m. In addition, a new potential vein structure, the Cliff Vein, was discovered down slope from the Master Vein. A grab sample of the Cliff Vein assayed up to 22.8 g/t gold.

Importantly, the geological team sampled outcrops across the entire property. These samples are undergoing whole rock geochemical analyses to provide further insights into the deposit’s scale and potential for more gold occurrences.

CEO Karim Rayani commented,

“The Merritt area has a long history of exploration & gold discoveries. Explorers focused on narrow high-grade veins while not seeing the less obvious geological indications of broader mining widths. The Company’s field crew has dedicated their work this season to studying the structure & geochemistry. The project continues to impress us as results come in. We believe the Nicola Lake area hosts the makings of a significant new gold camp.”

The first discoveries at S-SB were in 1908. Early exploration focused on quartz veins hosting gold, copper and silver. High-grade values have been reported, including 124 to 127 g/t gold, plus 309 to 514 g/t silver. These ultra-high-grade veins have been trenched, pitted, blasted and drilled but never commercially mined. The Master Vein has high-grade mineralization up to 50.53 oz./t gold, as sampled by Ken Sanders, P. Eng in 1974.

Spitfire-Sunny Boy near red-hot Golden Triangle and Westhaven Ventures

The gold mineralization and geological setting of the project bear strong similarities to other more advanced projects in the region such as the epithermal gold projects, Prospect Valley and Shovelnose, being explored by Westhaven Ventures. A number of excellent drill results from Shovelnose in 2018–19 included 1.0m at 561 g/t gold equiv., and 12.7m at 41 g/t gold equiv.

Falcon’s due-diligence work last year at S-SB confirmed gold mineralization over 300m along the Master Vein. Samples ranged from 0.33 to 2.74 oz./t. Based on sporadic past exploration, the company has identified EM and IP geophysics, structural mapping, and excavating large surface blast pits to expose in-situ bedrock as the best approach for identifying new mineralized structures for both gold & base metals discoveries.

With gold >$2,000/oz., currently at an all-time high of $2,045/oz., Falcon Gold’s high-grade showings are increasingly valuable as stand-alone projects or as satellite deposits …read more

The Craziest Mining Story I've Ever Heard

Source: Matt Badiali for Streetwise Reports 08/06/2020

Independent financial analyst Matt Badiali tells a mind-bending tale about a gold project in Montana.

This story is the stuff of myth. It will be retold, inflated, and gilded…especially if there’s a discovery.

It’s a story about gold, a historical mining district, seizing opportunity and psychedelic mushrooms.

I heard about it from a good friend. It was so far-fetched, I reached out to Warwick Smith, CEO of American Pacific Mining Corp. (USGD:CSE; USGDF:OTC), a tiny, C$16 million Canadian junior, to get the truth.

You see, Warwick’s company bought the Madison Project for just 20 million of its shares—worth roughly C$7.6 million today.

And the Madison Project is special.

With the acquisition, came a built in partner. Rio Tinto has a joint venture agreement on the project. It will spend $30 million to acquire 70% of the project. American Pacific gets a “carried interest.” That means it doesn’t have to pay another cent and it still owns 30% of whatever Rio Tinto finds.

And the potential at Madison is enormous.

This is a past producing mine in a historical mining district in Montana. Between 2005 and 2011, the mine produced 7,570 ounces of gold and 3 million pounds of copper from rocks that averaged half an ounce of gold and 25% copper per ton.

That’s outrageous grade. And it justifies Rio Tinto’s interest. But that isn’t all. Madison is in the Butte Mining District in western Montana. It sits at the southern point of a triangle formed from the giant Anaconda mine and Barrick’s Golden Sunlight mine.

This is a region steeped in mining history. The rocks here have a rich mineral endowment. Historical drilling results at Madison included 30 meters of rock that ran 24.5 grams per ton gold and another that hit 11 meters of core with 41.7 grams per ton gold.

That’s the kind of grade and length that make me sit up and take notice. These aren’t narrow little shoots of high grade. If Rio Tinto’s geologists can repeat that success, this project has enormous potential.

But Madison’s ownership tells another interesting story.

In 2019, Broadway Gold owned the Madison Project. The company had over 12 miles of drill core. All the data went into a Vulcan 3D model. The high grade gold and copper numbers pushed the market cap of the company over C$75 million.

Suddenly, Broadway made a radical change in direction. In April 2019, they brought in Rio Tinto as a partner.

And then in June 2019, Broadway Gold made a crazy announcement. It became Mind Medicine, a “neuro-pharmaceutical company” developing psychedelic medicines.

I couldn’t make this story up…

Mind Medicine spun out the Madison project and American Pacific snapped it up. In January 2020, American Pacific announced the signed agreement, which just closed in June 2020.

That’s how we got here…with a tiny junior miner holding a 30% carried interest in a project that Rio Tinto is …read more

Adrian Day: Huge Value Gap Presents Buying Opportunity

Source: Adrian Day for Streetwise Reports 08/05/2020

Money manager Adrian Day discusses developments at four disparate companies affected to varying degrees by the economic consequences of COVID-19, with two buys among them.

Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX, US$1.15) continues to raise non-dilutive funds by monetizing non-core assets as it focuses on and advances the Mt. Todd gold project in the Northern Territories, Australia. The company is in a financially strong position and appears poised for negotiations that make it “reasonable to think that by early next year we will have an agreement with a partner,” according to CEO Fred Earnest. Indeed, the company had a marketing trip to Asia planned for late February, but it was cancelled due to COVID-19-related travel restrictions throughout the region.

Now, with a higher gold price, the largest undeveloped gold property in Australia and one of the largest in the world, in a safe jurisdiction, must be attractive to many senior mining companies. Vista is not necessarily looking to sell the project outright but looking for any kind of partnership to maximize value for shareholders, including a financial partner to enable Vista to build the mine. (Vista has made clear it does not intend going it alone to raise the capital and build the mine.) The company is awaiting its final permit—the mine operating permit—with no apparent major obstacle, and it now expects to receive that in coming months.

Vista raises cash from various transactions
At today’s gold and Australian dollar prices, the mine has a NAV (net asset value) of over $2 billion, with a potential 20-year mine life. The stock, even after its recent run, has a market cap of less than $120 million, so there is an enormous gap, sufficient for an incoming partner to pay a hefty premium for a stake and still make money.

Currently with $6.3 million working capital, the cash has been bolstered recently by two recent payments: $2.4 million to cancel a portion of royalties on the Awak Mas project in Indonesia; and $1.5 million from an option payment on Guadalupe de los Reyes project in Mexico. At a run rate of about $6 million a year, this is sufficient for the next 12months.

In addition, over the next 12 moths, Vista is due to receive a final $2.1 million from Prime Mining Corp. (PRYM:TSX.V)on the de los Reyes project, and another $2.5 million to cancel remaining royalties on Awak Mas; in that latter payment is not made, Vista may then sell the royalty to a third party. Vista also owns very liquid shares in Midas Gold Corp. (MAX:TSX), valued at almost $5 million, and a used mill, potentially worth $8 million to $10 million. So, even without a sale on the mill, Vista is reasonably certain to have cash for the next two years of expenses. An “at-the-market” (ATM)program can top up cash as needed.

Exploration upside remains
Vista is also continuing exploration at …read more

Bob Moriarty: From Coronavirus to Gold to Goats on the Roof

Source: Maurice Jackson for Streetwise Reports 08/05/2020

Bob Moriarty of 321gold and Maurice Jackson of Proven and Probable discuss the effects of pandemic fears on markets, government and society, as well as the status of a number of gold and precious metals juniors, including one whose stock Moriarty expects will take off like a “rocket ship.”

Maurice Jackson: Joining us for a conversation is Bob Moriarty, a world-renowned best-selling author and Founder of 321gold and 321energy.com.

Bob Moriarty: Thank you. It’s good to be back, Maurice.

Maurice Jackson: Always an honor to have you join us on the program. We have several items to discuss, so let’s get started. Beginning in the United States, what are your thoughts on the prospect of postponing the election because of the coronavirus?

Bob Moriarty: Oh boy. When you went through training, did they ever teach you how to throw a hand grenade?

Maurice Jackson: No, sir.

Bob Moriarty: Okay. Are you familiar with the basics?

Maurice Jackson: Yes, sir. You pull the pin and throw it as soon as you can in the right direction.

Bob Moriarty: Okay. Now, you got it in exactly the right order, but what happens if you pull the pin and you don’t let go?

Maurice Jackson: Oh, that’s not a favorable outcome.

Bob Moriarty: That’s an unfavorable outcome. The protests in U.S. scare the hell out of me. Let me give you some numbers. Fifty-three million Americans have lost their jobs and applied for unemployment compensation. A lot of them were getting an extra $600 a week; that stops today. They were getting paid not to work, so they didn’t work. Now, many of those 53 million Americans are not going back to work, and that includes the travel industry, it includes the airlines, it includes hotels, it includes restaurants. When the dust finally settles, Americans are going to be shocked to see how much of a change has happened since March.

Now, then, when you have a country with 53 million people out of work and the government stops giving them free money and there are 395 million guns in the country and the deep state has been running a three-year coup against the President, what happens if the President says, “Well, we don’t need to vote, we got a President.”?

Maurice Jackson: Again, it’s not a favorable outcome. I believe that the losing party from the election is going to be a sore loser. What are your thoughts there?

Bob Moriarty: I don’t think there’s going to be an election.

Maurice Jackson: I’m shaking my head in disbelief. That’s something I never thought I’d hear coming from the United States.

Bob Moriarty: Well, yeah, but you can look around. I mean, the strange thing is, you’ve been interviewing me for years and nothing that is happening is a surprise to me. It’s something that I said was coming years ago. I was writing books four years ago …read more

Firm Prepares for Drilling, Bulk Sampling at BC Gold Project

Source: Streetwise Reports 08/04/2020

Omineca Mining & Metals aims to locate the bedrock sources of placer gold it encountered on bulk sampling in 2012.

In a news release, Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) (OMM:TSX.V; OMMSF:OTCMKTS) provided an update on its flagship Wingdam gold project in British Columbia’s Cariboo, a historical mining district.

The Saskatchewan-based mining company noted it is completing work in preparation for two programs: maiden lode gold drilling program at the Wingdam gold project and the recommencement of the placer gold bulk sampling program in the Cariboo Mining District.

Regarding drilling, Omineca stated it intends to launch maiden drilling at Wingdam once it continues the necessary field work and receives the required permits. A diamond drill rig is already at the site.

“The central focus of Omineca’s lode gold exploration program is to locate the presumed multiple bedrock sources of placer gold recovered by Omineca in the 2012 underground bulk sampling program which yielded 173.5 ounces of gold across the width of the Deep Lead Paleochannel beneath Lighting Creek. The preliminary results from the current field programs are validating Omineca’s hypothesis that the sources of the placer gold at Wingdam are likely in very close proximity upstream to where the gold was recovered,” the company stated.

At the start, that program will consist of 27 holes over about 8,000 meters (8,000m), and the results will be used to delineate future drill targets.

As for its planned placer gold bulk sampling program at Wingdam, once it gets the rest of the necessary equipment at the property and the water level of Lightning Creek subsides, the company stated it will commence dewatering and re-entering the decline to the underground workings. It then will pick up with bulk sampling in the paleochannel where the first crosscut left off.

The first phase of the underground placer recovery will comprise 125 crosscuts that are similar in size and scope to those of the 2012 sampling. Samples will be taken from the first 300m of the 2,400m of the paleochannel that have been fully investigated with three-dimensional seismic and drilling, recent and historical. Eventually, Omineca noted it would like to explore all roughly 17 kilometers of the paleochannel within its claims.

As far as the timeline of the bulk sampling, dewatering should take about three to four weeks. Another four weeks will be needed for rehabilitation and underground preparation work. Following that, sampling will begin, the company stated.

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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 …read more

Industry Experts See Opportunity as Explorer Drills Nevada Gold Project

Regional Projects

Source: Streetwise Reports 08/04/2020

Fremont’s Griffon project in Nevada’s prolific Cortez Trend is being drilled for the first time since the 1990s.

Fremont Gold Ltd. (FRE:TSX.V; FRERF:OTCQB; FR2:FSE) went public in 2017 with the goal of making a new gold discovery in Nevada. Founded by geologists that have a track record of making multi-million-ounce gold discoveries, Fremont believes that the drill program underway at the Griffon property could help them realize that goal. Griffon is a past producing gold mine located in Nevada’s Cortez Trend, an area known for large gold mines such as Nevada Gold Mines’ Cortez Mine, which saw nearly 1 million ounces of gold production in 2019.

Fremont launched a phase I drill program at Griffon in June and has completed nine drill holes so far. The company reported the results from the first three drill holes several weeks ago and expects to release the next set of drill results sometime this month.

Although Fremont isn’t a well-known gold exploration company, the results from the first three holes have attracted the attention of several industry analysts, including Thibaut Lepouttre of Caesars Report and James Kwantes of Resource Opportunities.

“Hole three is clearly the best hole as it intersected just over 50 meters containing 1.05 g/t gold starting at a depth of just 29 meters; that’s excellent,” said Lepouttre. “We don’t have to wait long for news and as the remaining holes were located close to known mineralization, one could expect them to contain gold.”

Lepouttre added, “Fremont acquired Griffon just six or seven months ago, and this is the first time it is being drilled in about two decades. There are still plenty of drill targets and drill sites that have been permitted or will be permitted in the future. Fremont is really just getting started. This is the first time that anyone is giving it a really good look.”

“With gold at almost $2,000 an ounce, Nevada has become a hotbed of drilling activity and some stocks are already moving hard,” said James Kwantes of Resource Opportunities. “Shares of Resource Opportunities portfolio company Fremont Gold have not, despite some stellar drill results in the first three holes at their Griffon oxide gold project in Nevada. That spells opportunity at these price levels.”

A little background history on the property. “Griffon is a past producing Carlin gold mine that was last in production in 1999, when the price of gold was less than US$300 an ounce,” CEO Blaine Monaghan told Streetwise Reports. “Alta Gold, the previous operator, produced approximately 60,000 ounces gold from Griffon in 1998 and 1999. The Griffon mine was a very simple open-pit, heap-leach operation with cash costs below $200 an ounce of gold. Unfortunately, Alta Gold ran into operational issues at another mine, the gold price collapsed, and it went bankrupt. Although it hasn’t been drilled since that time, recent exploration work has …read more

Junior Explorer Confirms High-Grade Copper-Silver at Ecuador Property

Source: Streetwise Reports 08/03/2020

The mineralization at Aurania Resources’ flagship project is “resolving into specific targets.”

Aurania Resources Ltd. (ARU:TSX.V; AUIAF:OTCQB) announced in a news release it confirmed high-grade copper-silver in the Tsenken B target area of its flagship Ecuadorian Lost Cities–Cutucu project.

“We are very encouraged to see the copper-silver in the Tsenken area resolving into specific targets that we aim to drill test as soon as possible,” Chairman and CEO Dr. Keith Barron said in the release.

The explorer, headquartered in Toronto, reported that Tsenken B showed “sedimentary-hosted copper-silver mineralization in outcrop and boulders,” the release noted. Field mapping and soil sampling will be done there next to define drill targets.

To date, Aurania has tested and reported results for the Tsenken A, Tsenken B, Tsenken N1, Tsenken N2, Tsenken N3, Tsenken N4 and the Tsenken magnetic center targets, spanning from the intensely mineralized fault breccia at Tsenken A to the area 6 kilometers north of it.

Generally, “the copper-silver is hosted by sedimentary layers that contain fossilized, carbonized plant fragments within an enclosing stack of red-colored sandstone or red beds,” according to the release.

In the next few weeks, Aurania stated it will mobilize to the project site a lightweight rig, one with a maximum reach of 800 meters, for an upcoming drill program, in which Tsenken N2 and N3 will be tested first.

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Aurania Resources Ltd.

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