Archive for Metals

Miner Explores ‘Exciting Economics’ of Prospect in Northern Canada

Source: Maurice Jackson for Streetwise Reports   01/19/2021

In conversation with Maurice Jackson, the CEO of Rover Metals discusses the firm’s milestones achieved in 2020 as well as prospects for continued growth in 2021.

Rover

Maurice Jackson: Joining us for conversation is Judson Culter, the CEO and director of Rover Metals Corp. (ROVR:TSX.V; ROVMF:OTCQB).

A pleasure to be speaking with you today to provide us with an overview of some of the key milestones as we look back on the successes of 2020 and then take a look forward into 2021.

Mr. Culter, before we begin, for someone new to the story, what is Rover Metals, and what is the value proposition the company presents to the market?

Judson Culter: We are a precious metals mining company at the exploration stage. The value proposition is we’re about to bring our first resource as a mining company to the public markets sometime this year. And this is arguably the most valuable time to invest, and if you look at the lifecycle of a mining company investment, you want to get in when the company is undervalued, and that’s the value proposition that we’re bringing this year.

Maurice Jackson: Last year was a banner year for Rover Metals. Sir, please provide current and prospective shareholders with some of the key milestones that Rover Metals accomplished in 2020.

Judson Culter: Well, we knew we had a winner in northern Canada, and I’m speaking of the 60th parallel, which is the Northwest Territories in Canada, where we have our project portfolio, which has demonstrated some high-grade historical drilling dating back to the 1980s, and we just wanted to get to work and develop that project. And thankfully, in 2020, we were able to find the financing we needed. And we went in and not only did we rediscover some of the historical targets, but we doubled the length of any of the historical drill holes.

In our November press release (click here), the results of our drill program, we discovered 32 meters of continuous high-grade gold intercepts averaging 14 grams per ton. Now just think about 32 meters, and consider how long that is. There were only 15 meters of overburden, so that’s basically at the surface. Speculators should strongly consider the exciting economics of that for a second.

/rover1-1-21

Maurice Jackson: That’s truly impressive. Let’s look at 2021. Rover finished the year with an important press release that I think the market may have overlooked. Walk us through the press release (click here), because it exemplifies the business acumen of the management team.

Judson Culter: Well, the goal for the Cabin Lake Project is to conduct 70% of the annual exploration spend in the wintertime. And so the press release that you’re referring to was [about] the fact that we’ve made an application to have ice road access off of the existing highway system. So that negates the need to use a helicopter for exploration in the wintertime and brings our cost down in terms of our exploration bang for our buck. I think we’re a couple of weeks away from getting that permit, and that permit will be valid for the next four to five years. And again, our hope is this will be the window, sort of between January and April, where we do about 70% of our exploration work on this project each year.

rover2-1-21

Maurice Jackson: And any updates on the Uptown Gold Project?

Judson Culter: We’ve submitted an agreement with the Venture exchange on which we trade—and we are listed as our primary exchange in Canada—to sell 75% of the Uptown Gold Project to a new group. And we hope that we will mentor and work with that group in terms of the knowledge transfer of that project, and that when they have success, we have success, because we would like to joint venture with that newly listed company as they continue to put dollars into the ground on the exploration.

But really, what it did [for] us, was [enable us] to offload about $1.5 million in current liabilities to another group and share in the future success of that project on a non-dilutive basis, as they pay for the exploration, and then we have the right to acquire the remaining 25% interest in Uptown.

And that project is right in Yellowknife, close to where Newmont Corp. (NEM:NYSE) has options. The Con Mine claims to a competitor, and we’re on that Yellowknife Gold Belt, where there’s a lot of juniors working away just to give you one comparable. GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American) recently released an inferred resource of a couple of million ounces just north of us at the Discovery Project.

Maurice Jackson: Looking forward, what are the company’s goals for 2021?

Judson Culter: For 2021, we have three major objectives. The first one is to immediately get in and pick up where we stopped in October on our drilling. We want to replicate the great success of that program.

Also, we have 12 new targets, if you can believe that, based on the geochemistry, the correlation from the assays that we just received, understanding of what’s hosting this primary gold deposit. The existing target, which is now what we’re calling an ore shoot discovery—that needs to get tested at depth as well. And so we’re going to be in there, hopefully in February, mobilizing the site. So that’s a huge goal of ours. We would like to bring an Inferred category resource to market by this summer on the Cabin Lake Project.

Another goal we have is to go out and acquire another project. We are looking for something a little bit farther south, so that’ll be our summer project. And, so we’re still active on the M&A (merger and acquisition) side.

And other good news to share is, well, I think we’ll be announcing shortly the closing of a million-dollar financing at $0.10/share. And that money goes toward the mobilization here to Cabin Lake.

And any other corporate goals past Q2/2021. . .we’re just kind of chipping away at, really, the next six months. And I don’t think, much like lots of other juniors, we are looking past the six-month time frame.

Maurice Jackson: We’ve covered the goals. What is the next unanswered question for Rover Metals? When can we expect a response, and what will determine success?

Judson Culter: Well, I think the unanswered question for us is Cabin Lake. Are there 12 new ore shoots on the project? We’ve got one ore shoot. If it’s every 1 kilometer along a 10 to 15-kilometer iron formation that we have, because if these things will pinch and swell, do we have 10 ore shoots on this project? There’s a lot of blue sky here, we want to know what it is, and we’ll be here in the next three months.

Maurice Jackson: Switching gears, Mr. Culter, please provide us with an update on the capital structure for Rover Metals.

Judson Culter: We have 77 million shares outstanding today. The million-dollar financing that we’re about to close within the next week or so will add another 10 million, so 87 million shares outstanding.

Maurice Jackson: What is the burn rate?

Judson Culter: Burn rate outside of exploration season is roughly $40,000 to $50,000 a month. And, during exploration season it’s much higher, so we’re looking into a two-month program here from the February to April time frame. We’ll spend about $2 to $3 million just on exploration here in this next quarter.

Maurice Jackson: And you somewhat alluded to it, but how’s the treasury looking right now?

Judson Culter: Treasury is healthy. There’s still money from the last financing last year. And, the wires are already piling in here from the current financing. So, we’re in really good shape and able to execute our goals.

Maurice Jackson: Judson, any final words for shareholders?

Judson Culter: No, I think we’ve covered it on this. I think this is a company, certainly, where there’s going to be news coming in the next three months. I think a lot of other juniors and competitors are waiting for melt-off and to get summer programs going, so we’re ahead of the curve, and we will be bringing assays to market here in the May time frame. So, that’s an exciting opportunity right there.

Maurice Jackson: Sir, what keeps you up at night that we don’t know about?

Judson Culter: Oh, that’s a stumper of a question. Nothing right now. Things have been going well in 2020, and I think I’m sleeping pretty easily, and this is fun. There’s not a lot of stress in my life right now, and everything’s just really becoming fun. So not much; pretty much nothing keeps me up at night.

Maurice Jackson: I love the modest response because you and I correspond offline. And I know you’re very excited about the opportunity before you, so I’ll have to pick on you when we get offline here.

All right, sir, last question: What did I forget to ask?

Judson Culter: Well, I think you’re going to want to know where we’re going to acquire our next project, but I couldn’t tell you that right now. But I will say that we look at a new project every week, and we’re super picky, so when we do decide to announce a new acquisition that it should be a goody.

Maurice Jackson: Mr. Culter, if investors want to get more information about Rover Metals, please share the contact information.

Judson Culter: Encourage readers to visit our website, www.rovermetals.com.

Maurice Jackson: Mr. Culter, thank you for joining us today. Wishing you and Rover Metals the absolute, sir.

As a reminder, I’m a licensed broker for Miles Franklin Precious Metals Investments where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories, and precious metals IRAs. Call me directly at (855) 505-1900 or you may email [email protected].

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

 

Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Rover Metals. 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: Rover Metals is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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Go BIG or Go Home. Will NuLegacy Gold Crack the Rift Anticline Code in 2021?

Source: Peter Epstein for Streetwise Reports   01/19/2021

Peter Epstein of Epstein Research highlights the importance of NuLegacy Gold Corp.’s drill program this spring.

Significant drilling will commence again this spring on NuLegacy Gold Corporation’s (NUG:TSX.V; NULGF:OTCQB) highly prospective Rift Anticline target on its flagship 108-sq. km Red Hill gold property in Nevada’s prolific Cortez gold trend. The drilling of 12, perhaps 13 more holes will commence in April. These will be much deeper holes than have been drilled in the past.

On January 15th, management announced the rapid (five business days) subscription for a 100 million unit private placement, (gross proceeds = $12.5 mllion), expected to formally close any day now. Will 2021 be the year that NuLegacy cracks the code of the Rift Anticline formation on its large property?

Go BIG or go home drill program starts in AprilÖ.

CEO and co-founder of NuLegacy, Albert Matter commented,

“Completing the financing is critical as it allows NuLegacy to start contracting for the much bigger and more expensive deep drilling rigs, and the superior drill teams needed, that will soon be in short supplyÖ. enabling us to accelerate our expanded Spring/Summer drill programÖ.”

Readers may recall that management is laser-focused on confirming high-grade Carlin-style gold deposits over the roughly 6 sq. km Rift Anticline target on its flagship Red Hill property. This target is on trend and adjacent to Barrick Gold’s three multimillion-ounce, Carlin-type deposits (Pipeline, Cortez Hills and Goldrush).

Across the district, the Rift Anticline hosts giant, high-grade deposits such as the 10M+ ounce, 10 g/t gold, advanced-stage Goldrush project, located ~10 km northwest of Red Hill.

Over the years, NuLegacy has enlisted eight former Barrick employees, board members and/or advisers. Including the very well-respected Roger Steiningerówho led teams that discovered the South Pipeline and Long Valley gold depositsóthis world-class group of nine is credited with discovering >50M ounces of gold in Nevada.

A powerhouse technical team unleashed, no holes barred!

Dating back to the mid-1980s, NuLegacy’s team and advisors (while at Barrick and at other companies before joining NuLegacy) have greatly advanced the understanding of Carlin-style gold systems.

Modeling the geochemical, geophysical and drill data of the Rift Anticline in north-central Nevada has evolved to the point that NuLegacy’s team is confident the Wenban5 unit hosts mineralization. The question is: how uniform and what grade?

On December 15th, a corporate update was delivered on the first four drill holes. Wide intervals of the Wenban5 stratigraphic unit were confirmed. Holes 1 and 2 were drilled to an average depth 607.5 meters, and holes 3 and 4 to an average depth of 850.5 meters.

These deeper holes are expensive, which is why the company raised additional funds. Assays from the first two holes contained numerous intercepts of anomalous gold values, but no flashy grades to brag about.

However, Ed Cope, Director, Exploration remains enthusiastic,

“I’m very impressed with these results. There are numerous subtle signs in the geology and geochemistry of these results that are difficult to articulate in a brief news release, and might appear inconsequential to the uninitiated, that indicate there’s a significant gold deposit ‘lurking nearby.'”

The Wenban5 horizon hosts 75% of the gold in Nevada Gold Mines’ giant, high-grade Goldrush project. Importantly, the presence of a thick section of Wenban5 underneath basalt cover was predicted by NuLegacy’s geologic team to within 10 meters ó an impressive feat of interpretative geology!

There’s gold on the 6 sq. km Rift Anticline, but how much? What grade?

The presence of a Carlin-type system was intercepted at an average depth of ~332 m with an average thickness of ~173.5 m.

Management notes that it appears none of the Wenban5 horizon has been eroded or faulted off as was the case in prior holes over the years that produced smoke, {11.0 g/t over 12.2 m, 16.9 g/t over 8.7 m, 9.6 g/t over 5.1 m, found well to the east of the Rift Anticline}, but no fire.

The reason why Quinton Hennigh and others are so excited with events unfolding at NuLegacy’s portion of the Rift Anticline is that a close analog is none other than Barrick’s 10M+ ounce Goldrush deposit.

I mentioned Mr. Hennigh because he’s been talking about this for months. {Please click on video clip above}.

In the comparison slide above, select metrics of the Rift Anticline, as expressed on NuLegacy’s property, compare favorably to that of the Goldrush project with respect to deposit width, Wenban5 thickness and depth. Grades and continuity of mineralization are critical unknowns that will make or break the NuLegacy Gold story.

Regarding the importance of understanding the structure at Red Hill, Mark Bradley, VP Exploration, commented,

“Our advanced structural modeling of the Rift Anticline is a very powerful exploration tool, permitting us to prioritize our initial drilling efforts within the large, 6 sq. km Rift Anticline surface area, thus optimizing our chances for discovery.”

One might look at this Rift Anticline target “up close” slide, and wonder if the Wenban5 horizon at Red Hill is too small.

No! Management and advisors have been explaining that the dimensions of the Wenban5 horizon on NuLegacy’s property are sufficiently large to (potentially) host millions of ounces (if the grade is reasonably strong and there’s decent continuity).

Twelve, perhaps 13 more (deep) drill holes this spring/summer

Once width, average thickness and grade are reasonably well established, some preliminary estimates of the potential volume of the gold-bearing Wenban5 unit can be made.

The remaining 12 holes of a 16-hole (11,500 m) drill program are fully funded and scheduled for completion in the upcoming spring/summer drill program. However, with the newly raised cash, the holes may be drilled deeper and possibly faster (multiple rigs).

Listening to the podcast embedded aboveówhich walks through the reasoning behind the bullish Rift Anticline thesisóit’s clear there’s potential (but, no certainties) of a very large gold system.

I have no insights into how much gold the Rift Anticline on NuLegacy’s property might contain, but management and advisors believe that the dimensions make millions of ounces a possibility.

Readers should note that due to size, grade, depth and continuity factors, the vast majority of gold-prospective properties around the world have 0% probability of hosting a potentially economic 5M+ ounce deposit.

Even a 2 to 5M ounce resource in Nevada would be quite valuable. In the chart below are seven companies from high-quality jurisdictions in North America.

Multi-million ounce deposits in Nevada are quite valuable

Resource estimates range from 0.67M to 3.7M ounces. Enterprise Value {market cap + debt ñ cash} (“EV”) divided by ounce values range from C$45ñ$195. The average EV/oz. figure = C$89/oz.

All else equal, if NuLegacy were to delineate 2M ounces, it would be trading at just C$29/oz. While we’re not there yet, line of sight beyond the number of ounces contained in a maiden resource will hopefully come into view. There might be a conceptual multi-million ounce resource target to contemplate later this year.

These peers are more advanced than NuLegacy, however readers can imagine what a multi-million ounce resource could potentially be worth if management has drilling successes this year. The average EV of these peers is ~C$191M vs. ~C$58M for NuLegacy.

Conclusion

All eyes are on NuLegacy’s drill program this year. It will be a substantial program. While no one knows what the drill bit might find, the company’s expert technical team is optimistic about the potential of unlocking new clues in the Rift Anticline.

NuLegacy Gold (TSX-V: NUG; OTCQB: NULGF) has proven that it’s not easy to find a needle in a haystack, but 2021 could be the year that it happens. No matter what unfolds, 10 years of exploration on the Red Hill project will never go to waste. This is very valuable data, increasingly so in a gold bull market.

Ideally, NuLegacy can find significant smoke, or fire! that warrants continuing to advance the project. However, if given a chance, a mid-tier or major gold player would very likely pick this project up and run with it.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

 

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about NuLegacy Gold, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of NuLegacy Gold are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, NuLegacy Gold was an advertiser on [ER] and Peter Epstein owned shares in the Company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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. 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) 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 as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NuLegacy, a company mentioned in this article.

The Silver Roadmap

Peter Krauth, the editor of Silver Stock Investor, looks at silver’s bull markets since the 1970s and discusses what he thinks lies ahead.

Source: Peter Krauth for Streetwise Reports   01/19/2021

There’s no consensus on whether silver is in its second or third secular bull market since the 1970s. That’s because people define bull markets in different ways.

But as I’ll show you, it’s not that important.

What we do know is that silver enjoyed a huge bull market from about 1971 until 1980, and then another major bull run from about 2001 until 2011.

Most secular bull markets run through a period, usually about half-ways on the time scale, where the commodity’s price falls by about 50%, sometimes more. This is an observation by the legendary commodities investor Jim Rogers.

In my own experience that’s in fact often the case, although sometimes the price correction is less severe if it’s drawn out over a longer time. Corrections are typically short and deep, or long and shallow. There is no rule, and it’s never the same.

Let’s dig into these previous bull markets to give us an idea of how silver has behaved. This will provide somewhat of a roadmap for what may lie ahead. Spoiler alert: looking back on how silver performed in the past points to much bigger gains ahead.

Past Is Prologue: Silver Bull Markets

In the 1970s silver rose from a low near $1.40 in 1971 to peak at $49 in 1980. That produced a whopping 36 times return, or 3,600%. Every $1,000 became $36,000.

Then, silver eventually bottomed in 2001 at $4.20, before rising all the way back to $49 in 2011. Investors who had positioned themselves early enjoyed a 1,160% return.

Now let’s dissect both of these bull markets in more detail, because understanding how they behave can help you better prepare. As you’ll see, silver is volatile. But if you want to benefit from its big gains, you have to be willing to hold on through what is sometimes a wild ride.

As I said, silver bottomed near $1.31 in October 1971. That’s when its 1970s secular bull market began.

It then peaked at $5.78 in February 1974. That was a 340% gain in less than 3½ years. But then silver started to lose ground.

That correction took it from $5.78 to $3.97 in January 1976. It was a relatively shallow, but drawn-out correction. By October 1978 silver had surpassed $5.78, and eventually went onto a blow off mania high near $49 in January 1980, gaining 1,130% from its 1976 low. (Note that the $49 high in 1980 doesn’t appear in this chart because it shows monthly prices).

Silver’s gain from the 1971 low of $1.31 to its $49, 1980 high was an astounding 3,640%.

Two decades later, it would do something similar…again.

In November 2001, silver bottomed at $4.14. No one was paying attention, and no one wanted it. Silver was the perfect contrarian trade. It then launched into a new bull market, rising to $19.89 by February 2008, producing a 380% gain.

Silver then corrected from $19.89 to $9.73 in October 2008, putting in a relatively short but sharp 50% correction. It then went on to climb all the way to $49, reaching that level in April 2011, for a 403% gain from its 2008 low.

But during its decade-long run that started in 2001 up to its peak in 2011, silver gained 1,080%. That’s a tenfold gain.

Prepare for Silver Corrections

Silver is volatile. There’s no denying it. But that’s also part of its appeal.

Between 2002 and 2006, silver dropped 10% or more four separate times.

Then, between 2006 and 2011, more short but sometimes deep corrections came, with silver dropping 13% or more three times.

Overall, from 2001 until its peak in 2011, silver gave back 20% or more four times. But the real takeaway is that anyone who held on from the beginning enjoyed an astounding 1,080% gain.

And one final point to consider; silver stocks offer tremendous leverage to silver itself.

This chart compares the performance of SLV, a silver ETF that mimics the price of silver, with SIL, a silver ETF made up of mostly large silver miners. The chart runs from mid-January to early August 2016.

The black line is SLV and the blue line is SIL. During this six-month period, SIL was up 240%, dramatically outperforming SLV which gained a very respectable 48%. Silver stocks were up by five times as much as silver itself in just six months.

That’s why I want to own silver stocks, as well as silver itself. The leverage can be tremendous.

Where Silver Stands Today

Given the extreme and unprecedented levels of stimulus, money-printing and debt in the last few decades, my view is that we are still in the midst of the silver bull market that started in 2001.

I think silver’s bull could run for a total of about 25 years starting from 2001. With that in mind, we could have another 5-6 years in front of us, maybe more.

From silver’s $49 peak in 2011 to its $12 bottom this past March, silver lost 75%.

The fact that silver bottomed at $12, which was almost triple the $4.14 low in 2001, suggests to me that we are still in the same powerful multi-decade bull market.

My target price over the next few years is for silver to reach at least $300. How I reach that number is a topic for a future article. But before you think I’m crazy, I can assure you that it’s an estimate relating to the gold price, and based on how gold and silver have performed in previous bull markets.

If silver reaches my target of $300, that will be a 1,150% return from its current price near $25.

While that’s a tremendous return, you need to expect volatility and future corrections. But you’ll only benefit if you’re willing to stay the course. There will be opportunities to lock in profits along the way, especially in silver stocks, but you need to have a core position you’re willing to hold through corrections for maximum gains.

I’ve written a detailed Silver Report (click here) explaining why silver has tremendous upside, and is heading much higher in the years ahead. In it I cover both the demand and supply side dynamics for silver, showing why the metal is fundamentally still very cheap, but how the outsized opportunity is in explosive silver stocks.

Bull markets do their best to bring along the fewest participants. Just don’t let the silver bull shake you off.

–Peter Krauth

Peter Krauth is a former portfolio adviser and a 20-year veteran of the resource market, with special expertise in precious metals, mining and energy stocks. He is editor of two newsletters to help investors profit from metal market opportunities: Silver Stock Investor, www.silverstockinvestor.com and Gold Resource Investor, www.goldresourceinvestor.com. In those letters Peter writes about what he is buying and selling; he takes no pay from companies for coverage. Peter has contributed numerous articles to Kitco.com, BNN Bloomberg, the Financial Post, Seeking Alpha, Streetwise Reports, Investing.com, TalkMarkets and Barchart, and he holds a Master of Business Administration from McGill University.

 

Disclosure:
1) Peter Krauth: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Global X Silver Miners ETF (SIL). 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. 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. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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. 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 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 and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Miner with Projects in Canada and Mexico Looks Forward to 2021

Source: Maurice Jackson for Streetwise Reports   01/20/2021

In conversation with Maurice Jackson of Proven and Probable, the CEO of Riverside Resources outlines the “sunglasses needed” future he sees for the company in the coming year.

Maurice Jackson: Joining us for a conversation is Dr. John-Mark Staude of Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB), where “knowledge is golden.” Dr. Staude, on behalf of all the shareholders, happy new year, and glad to be speaking with you today, sir.

Riverside has just consummated a banner year for shareholders in 2020. And today, the company released the corporate outlook for 2021. Before we look forward, John-Mark, let’s take a look back on the strategic successes of 2020, as shareholders profited from a share price increase from $0.10 up to $0.54, to include a spin-out, which was just the icing on the cake. Take us through 2020 and share some of the key highlights for us.

Dr. John-Mark Staude: For us, 2020 saw us accomplish several milestones under very difficult circumstances. We’ve focused on being COVID-focused and careful. We were already been operating in Mexico, and our property portfolio was already in hand. So for us, the success with BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK): Working with them in the field allowed us to move ahead on copper. On the gold side, we were able to do a deal with Hochschild Mining Plc (HOC:LSE), in which we then were able to drill. And we’ve been very excited about going forward with them.

The third thing, of course, was the spin-out that we were able to do. And that’s been excellent, as you say, the icing on the cake. And now we get the benefits of a fourth deal that we got last year on the Cecilia project, where we’ll now see drilling in 2021.

So 2020 was a great year and it sets us up well for going forward. I’m excited about where we’re going.

Maurice Jackson: I’m excited about all of the catalyst going forward here, in particular, Cecilia. I’ve been there with you so I’m looking forward to seeing what the future brings there.

Dr. Staude, all of the aforementioned was accomplished during a global pandemic. Share with us some of the internal adjustments that Riverside made that contributed to the accomplishments last year.

Dr. John-Mark Staude: It was very tough. First off, we had to focus on our staff. And it was hard. We had to leave our offices and go and work from home. We also had to go and work with protocols and work with the Mexican government and in Canada, as well to put forth all the required steps. We, therefore, went through training and worked on it. And now we’ve got a very clean office setup, we’ve set up new rules to operate in a safe environment. And we’ve also made coordination with doctors, where we can get rapid tests done, and we can monitor our camp situation.

Running a drill program with over 40 people in the camp was a quite significant event for us. And we were able to do that without any COVID cases, being careful and monitoring it. Also, we’ve taken things to the community, masks in protective areas. We’ve set up new houses that we’re staying in, instead of hotels. We’ve hired cooks and are working in our setting instead of going to restaurants. We modified our work to have as little impact on the communities and to be as careful as we can for all of our staff and clients. I’m very excited about managing this in 2021.

Maurice Jackson: Looking forward, Riverside just released the corporate outlook for 2021. And you’ve referenced in previous interviews that the future for Riverside is very bright. Let’s find out just how bright. John-Mark, walk us through some of the objectives and timelines the company’s outlined for this year

Dr. John-Mark Staude: For us, one of the things is partner drilling. I have a rock sample here from the Cecilia project. And what we’re excited about at Cecilia is this breccia; this breccia will be one of the many things that we’re going to get to drill. We’re going to finally get the drill results from Cecilia. In the coming weeks, that’s happening.

A second thing I’m excited about is our work in Mexico with BHP. Working with BHP—the world’s largest mining company, which has a mega focus on copper, operates large copper mines—we see copper as a key commodity. And operating with them, [we will] be able to meet the key standards of COVID and the key standards of a global major company and working and operating for and with them, even in these times. I predict we’ll be able to extend our alliance going forward for more years. And that’s going to be great. So, that’ll be fun to see that in the news flow.

A third thing I’m very much excited about is, again, drilling and that’s actually in Ontario, with our Longnose Project, the drilling of our Oakes Project. Here we see some of the vein systems that’ve been previously been mined at the neighboring property adjacent to us. And we see the potential of continuing the mineralization on our ground and a drill program to work at our Ontario projects in drilling.

Important to note, Equinox Gold Corp. (EQX:TSX; EQX:NYSE.A) recently bought out Premier Gold Mines Ltd. (PG:TSX) for over $600 million, adjacent to Riverside’s tenure. So, our Oakes Project, our Longrose Project, our Pichette Project are three projects that we see as catalysts for the new year.

Another thing we see is more growth in our Mexican portfolio. We see more deals coming out in our La Silla Project and are working on things there.

And a fourth thing we see is the work going in our High Lake Greenstone Gold Belt Project. There, last summer, we did work and worked up targets.

And so, I think, we’ll see news flow in 2021, potentially with partners and going forward with exploration there. So we have a rich history, but we have a great “sunglasses needed” future. The drilling at Cecilia, the going forward with BHP, the great work we have on additional projects in Mexico, and of course, the whole portfolio in Canada. Definitely a good year coming ahead.

Maurice Jackson: And all that with the metal prices moving strategically in your favor—gold and copper. And one of the things about copper, I think, that gets overlooked, that many people may not be aware of and I’m not sure we’ve highlighted it before—the global demand in the next 25 years for copper is going to be more than all of the entire consumed copper in recorded history in the next 25 years. And those are one of the two key elements that you’re looking for here. And again, thank you for highlighting that and making us aware of it. When can shareholders begin to see news flow in 2021 in Mexico and Canada respectively?

Dr. John-Mark Staude: So I think in the next three weeks, we’ll have news flow coming out of Mexico. I predict we’ll see an expansion of our alliance with BHP going forward, with another year of work at least. That’s going well.

I think also, we’ll see news flow from Mexico coming out in the next few weeks for our Cecilia Project. The people are in the field right now. Our teams are working on getting it. We’re waiting on the signing of a drill contract there. That’ll be a good news flow. And we’re excited about the potential there.

And in Canada, we’re working on the portfolio there. And I think we’ll see news flow in the first quarter coming out of our Canadian projects and some of the transactions we’re working on.

We’re super busy and excited. It’s been so tough with COVID. People are working from their homes, but it has made them available to contact. And we, operating on the ground, being boots on the ground, working in our local communities, can be the implementers and taking action during this time to make discoveries. So with the commodity prices going up, Riverside was positioned well. And now we’re able to take advantage of it; excited about 2021.

Maurice Jackson: Right. Switching gears, let’s look at some numbers. John-Mark, what is the capital structure for Riverside Resources?

Dr. John-Mark Staude: Riverside continues to have a tight capital structure. We haven’t put out shares very often. We have fewer than 69 million shares out. We also have a good cash position, over $3.5 million in cash. Of course, no debt, never debt for Riverside. And the thing we like is the income we’re getting from the sale of shares, but also the income we’re getting from our joint venture programs we’re having. We see the capital structure continue to be tight and good for the coming year and two.

Maurice Jackson: In closing, sir, what would you like to say to shareholders?

Dr. John-Mark Staude: Thank you so much for hanging with us this year in 2020. And we’re so excited about the ride for 2021. We also look forward to being available if anyone does wish to reach out. Come to our website www.rivres.com. We are working very actively and we look forward to sharing on social media as well as in our news releases, the steps, and excitement that we have for what’s happening going forward.

Maurice Jackson: Dr. Staude, it’s been a pleasure speaking with you today. Wishing you and Riverside Resources the absolute best, sir.

Before you make your next precious metals purchase, make sure you contact me. I’m a licensed representative to buy and sell physical precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio from physical delivery of gold, silver, platinum, palladium and rhodium directly to your home or office, to offshore depositories and precious metal IRAs. Call me directly at (855) 505-1900 or email [email protected].

Finally, please subscribe to Proven and Probable, where we provide mining insights and bullion sales. Subscription is free.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

 

Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Riverside Resources. 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: Riverside Resources is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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 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 as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Riverside Resources and Equinox Gold, companies mentioned in this article.

Disclosures for Proven and Probable: Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

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Metals Break Higher On “Biden Bounce”

By Orbex

Gold

The yellow metal surged higher over the last 24 hours in response to the swearing-in of the 46th president of the United States, Joe Biden.

With Biden’s inauguration comes the expectation of a big shift in US policy towards more expansive fiscal policy and less influence over the Fed and the US dollar.

During the course of Trump’s presidency, he was often heard talking the dollar down. He also criticized the Fed and called on the need for more and greater rate cuts.

Under the new era of Biden and former Fed chair Yellen as treasury secretary, the market is expecting major new stimulus along with less of a focus on the exchange rate.

Consequently, the US dollar looks likely to come under pressure as the government increases its borrowing to ramp up fiscal spending. This is keeping the outlook for gold bullish.

With the government attempting to pass a $1.9 trillion stimulus package, the Fed has been given some breathing room for the time being.

However, with the pandemic still at a critical point, the likelihood of further Fed easing in the coming months remains high, again creating support for gold.

Gold Rises Off Key Support

Following a period of consolidation along the 1826.71 level support, buyers have now taken price back up on the level.

Price is now close to retesting the bearish trend line from 2020 highs following a break above the trend line earlier this month.

If price breaks the trend line once again, focus will turn back to the 1919.92 level resistance next. To the downside, should price reverse and break below the 1826.71 level, the next major support to watch is down at the 1700 level.

Silver

Silver prices have tracked gold higher this week with the market moving back above the 25.1018 level.

Along with the upside in gold which is lending support, silver prices have also been boosted by the strong rally in US equities.

This rally has seen the S&P and the Dow both breaking out to fresh, record highs.

The boost in industrial stocks is particularly encouraging for silver bulls. And, along with USD weakness, this should keep silver prices supported in the medium term.

Silver Prices Turn Higher

Following the dip back below the 25.1018 level, silver prices found buying interest as they approached the broken bearish trend line from 2020 highs.

While the 25.1018 level holds as support, the focus is on further upside with a fresh challenge of the 27.4502 resistance the next key test for bulls.

By Orbex

Analyst: Mining Project in Quebec Boasts ‘Zone Showing Promise’

Source: Streetwise Reports   01/18/2021

Troilus Gold’s new drill results and their implications are discussed in a Haywood Capital Markets report.

Troilus Gold

In a Jan. 12 research note, Haywood Capital Markets analyst Pierre Vaillancourt noted that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) announced the findings from the two initial holes drilled at the Troilus property as part of its fall-winter 2020 campaign. “The drill results demonstrate promising potential for the Southwest zone to become the center of gravity for the Troilus deposit,” he added.

Vaillancourt noted that the two holes showed extension of gold mineralization inside and outside of the Southwest zone open pit as defined in the 2020 preliminary economic assessment (PEA).

TLG-ZSW20-204, a 200 meter (200m) stepout hole, encountered broad gold mineralization between 50 meters and 450 meters from surface, outside of the resource envelope and the proposed pit.

Hole TLG-ZSW20-201 confirmed that mineralization extends into an undrilled area in the PEA pit. Mineralization, located 3 kilometers (3 km) from the main resource area, extends for more than 1 meter and remains open.

Further, the holes returned highlight intercepts, the grades of which were higher than those in the existing resource. Specifically, hole TLG-ZSW20-204 showed 1.95 grams per ton gold equivalent (1.95 g/t Au eq) over 20m and 1.5 g/t Au eq over 9m, and included higher grade intervals.

TLG-ZSW20-201 demonstrated 2.48 g/t Au eq over 6m and 2.5 g/t Au eq over 5m, within a broader intersection of 1.74 g/t Au eq over 21m.

Vaillancourt pointed out that mineralization of Southwest, while lithologically similar to that of the other zones at Troilus, contains “more intense alteration, with stronger silica alteration and more veining.” This alteration, considered with the recent drill results, suggests that the Southwest mineralization could have higher grades than the other zones and, therefore, potentially become larger than the other Troilus deposits, the analyst noted.

To further delineate this Southwest mineralization and drill test the recently discovered Beyan and Testard target areas, Vaillancourt noted, Troilus Gold plans to carry out 50 km of drilling at Troilus this year.

“We remain positive as the 2021 drilling program gets underway, which we believe could be transformative for the resource and the outlook of the project,” Vaillancourt concluded.

Haywood has a Buy recommendation on Troilus Gold and a target price on it of CA$4 per share. The stock is currently trading around CA$1.09 per share.

 

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 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 as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Haywood Securities, Troilus Gold Corp, January 12, 2021

Analyst Certification: I, Pierre Vaillancourt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report, the following Important Disclosures:
▪The Analyst(s) preparing this report (or a member of the Analysts’ households) have a financial interest in Troilus Gold (TLG-T).

▪ Haywood Securities, Inc. has reviewed lead projects of Troilus Gold (TLG-T) and a portion of the expenses for this travel have been reimbursed by the issuer.

▪ Haywood Securities, Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Troilus Gold (TLG-T) in the last 12 months.

▪ Haywood Securities, Inc. or one of its subsidiaries currently provides market making services to Troilus Gold (TLG-T), for which Haywood is compensated by the issuer on a monthly basis.

This Canadian Exploration Play Already Has a Resource

Source: Ron Struthers for Streetwise Reports   01/18/2021

Ron Struthers of Struthers Resource Stock Report profiles this explorer and explains why he sees low downside risk.

Clarity Gold Map

This chart compares gold (GLD) to gold mining stocks, measured by GDX, the seniors and GDXJ, the more junior producers, since the bull market topped out in 2011. It is easy to see that while gold has recovered to its 2011 highs and did break higher, the gold stocks are a long ways from that. The GDX is about -35% below 2011 levels and the GDXJ -65%. This is an opportune time to accumulate still undervalued gold stocks.

One of our most successful junior explorers last year was Amex Exploration in the Abitibi Greenstone Belt in Canada. For a quick refresher, the Abitibi is the world’s largest mineral-rich greenstone geological belt, hosting many major gold and base metal deposits. It is a 450 km long by 150 km wide geological structure that runs through the Canadian Shield, from west of Timmins, Ontario, then eastward to Chibougamau, Quebec.

Gold was found in the area in the late 1800s, but significant gold mining activity accelerated with the discovery of the Dome, Hollinger and McIntyre mines near what is now Timmins, Ontario, around 1909. Since that time, more than 100 mines have produced in excess of 170 million ounces of gold. While the belt is known primarily for its prolific gold mining history, base metals mines in the region have produced over 400 million ounces of silver, 15 billion tons of copper and 35 billion tons of zinc.

The above map comes from a great article on the Abitibi Belt here.

We bought Amex Exploration (AMX) on a pull back, just a couple months after its discovery at a market valuation of C$70 million. Just two months earlier it was only valued at C$10 million. For sure I wanted to get in my next pick in the belt early with Clarity Gold. It has a current market valuation of C$24 million.

Clarity Gold Corp. (CLAR:CSE; CLGCF:OTC) Recent Price $1.20

Shares outstanding: 20.37 million, fully diluted, 23.24 million

The next graphic shows that Clarity is on the same break/fault as Amex Exploration. What is unique about this break/fault is that it does not have as much gold surface showings as the Destor Porcupine and Cadillac Larder Lake to the south and the Detour and Casa Berardi to the north. The Chicobi break where Amex and Clarity are located has some over burden, so it has had much less exploration. That is a good thing as much more potential remains as proven by Amex Exploration.

Another important point is that Clarity has a head start over what Amex Exploration had because it has a 43-101 resource of 360,000 Indicated gold ounces and 247,000 Inferred ounces on one small area of the project. And just like Amex when it started out, most of the previous drilling was at shallow depths when the Abitibi is known to go down to deep depths.

Management

James Rogers, Director, CEO, is a resource professional and entrepreneur active in the exploration and mining sector for over 13 years, and has developed projects in the Americas, Europe and Africa. Rogers is the principal of Longford Exploration Services. Since 2017, James and his teams have identified and vended over 90 resource properties to public and private companies. James specializes in generating projects through focused-area selection from large databases. Results are achieved by employing a number of GIS, 3D software and remote sensing solutions, along with the timely execution of field exploration.

Andrew Male, Director, is an experienced director and executive officer of public and private companies in the resource and investment sectors. A former founder and CEO of a TSX Venture Top 50 company ranked 9th, Male guided the company through the initial financing phases, project acquisitions, deployment of exploration programs, development financing, transitioning mining assets from greenfield to brownfield and the acquisition of adjacent producers and eventual sale to Private Equity. As a seasoned director and officer, Male has sat on a number of boards and worked with multiple companies in varying capacities.

Theo Van Der Linde, Director, is a Chartered Accountant with 20 years extensive experience in finance, reporting, regulatory requirements, public company administration, equity markets and financing of publicly traded companies. He has served as a CFO and director for a number of TSX Venture Exchange and Canadian Securities Exchange (CSE) listed companies over the past several years.

Ian Graham, Advisor, has over 20 years of experience in the development and exploration of mineral projects, corporate transactions, project evaluations and exploration. Graham’s experience is mostly at major mining companies, namely Rio Tinto and Anglo American, including as chief geologist with the Project Generation Group at Rio Tinto. He has been involved with evaluation and predevelopment work on several projects in Canada and abroad, including Resolution Copper (Arizona, USA), Diavik Diamond Mine (Northwest Territories, Canada), Eagle Nickel (Michigan, USA), Lakeview Nickel (Minnesota, USA) and Bunder Diamonds (India).

Michel Robert, Advisor, (B.A., B.A.Sc. (Hons), M.A.Sc (Hons)) is a metallurgist and mining engineer with over 45 years of diverse technical experience in the mining industry, both identifying assets for acquisition and then putting those mines back into production. Robert’s experience in mining operations with major companies, include Quebec Cartier Mining Ltd., Teck Corp., SNC, Lac Minerals (now Goldcorp), AMEC, Minero Peru, Fluor Daniel and Pan American Silver Corp., where Michelıs roles have ranged from foreman to President. As senior vice president for Pan American Silver Corp. from 1995 to 2001, Michel managed operations in Latin America including the expansion of the company into Peru, Mexico and Bolivia.

Michael Williams, Advisor, has over 24 years of experience as a senior mining executive. He has held the role of executive chairman with several different public companies, including Underworld Resources Ltd, which was sold to Kinross Gold Corp in 2010 for $138 million.

Rory Kutluoglu , Advisor, is a professional geologist with over 15 years of international mineral exploration experience and executive management roles in North American and European companies. Kutluoglu was the exploration manager for Kaminak Gold Corp., leading their team to deliver the maiden and updated resources on the Coffee Gold Project prior to Kaminak’s acquisition by Gold Corp. in 2016.

Properties: Destiny, 100% option, 5,013 hectares

Being in a prolific gold belt, there is very good infrastructure with road access to the project. It is located 75 km NNE of Val d’Or Quebec.

Previous work on the property includes:

  • 172 Diamond drill holes comprising approximately 50,400 meters
  • Reconnaissance till sampling from 11 Sonic drill holes
  • 2,430 MMI geochemical samples
  • 982 line km of airborne VTEM surveys
  • 171 line km of ground magnetics surveys
  • 128 line km of IP

There are numerous historical high grade intersects, such as:

  • 23.95 g/t over 3.1 meters from 118.8m (Dac zone)
  • 22.14 g/t over 1.4 meters from 161.8m (Dac zone)
  • 19.49 g/t over 2.7 meters from 166.0m (Dac zone)
  • 167.0 g/t over 1.0 meter from 221.7m (Dac zone)
  • 25.65 g/t over 1.1 meter from 372.9m (Daria zone)
  • 90.3 g/t over 1.0 meter from 87.5m (Gap zone)

Dac deposit: the 2011 NI 43-101 Resource consists of Indicated resources of 360,000 oz Au at 1.05 g/t and Inferred resources of 247,000 oz Au at 0.92 g/t

This next graphic is from CLAR’s presentation that gives a very good picture how this could easily grow into a multimillion ounce deposit. There is at least 3.5 km of strike that has sporadic drill holes that have assayed grades similar to the Dac deposit. You can see how small the area is that makes up the Indicated resources of 360,000 oz Au and Inferred resources of 247,000 oz Au at Dac. Most of the drilling is relatively shallow so there is lots of potential at depth, especially when we know mines in the Abitibi go to depths to a thousand meters and more. The largest mine in the Abitibi is Agnico Eagle’s LaRonde mine, about 50 kms from CLAR’s Destiny and has produced over 6 million ounces and still has 2.9 million ounces of reserves. The current underground mining operation are through the 2.2-km-deep Penna Shaft, the deepest single-lift shaft in the Western Hemisphere. The LaRonde mine extension (“LaRonde 3”) allows access to even deeper ore at the lower part of the ore body. All the high grades hits I quoted on the previous page on CLAR’s Destiny project were at intervals of 222 meters and less. Most drill holes are on angles, so actual depth would be far less.

CLAR has three other projects in British Columbia, but the focus for now is the Destiny project in the Abitibi Belt. There is more info on the website here. The Empirical project had a drill intersect of 21 meters at 3.67 g/t Au. The other two projects have some high-grade surface assays.

Financial

Last financials show $790,000 in cash and no long-term debt. Since then Clarity completed a first tranche of a non-brokered private placement, issuing 1,563,956 units at a price of 96 cents per unit for gross proceeds of C$1,501,397.76. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant is exercisable into one additional share at a price of C$1.25 per share for a period of one year from the closing date. The company expects to close a second tranche shortly. The company is planning a minimum of C$3 million in financing and a maximum of C$9.6 million that will go along way funding the first round of exploration and drilling.

Conclusion

The stock is cheap and the story not well known yet, an ideal time to buy. This will be an exploration play, but they already have 360,000 ounces in the indicated category. At C$1.20 per share, the value on these indicated ounces is about US$50 per ounce, not very much for a project in the Abitibi with strong upside potential.

Amex Exploration hit C$4.00 per share within 18 months of their discovery hole. This was a market valuation of about C$310 million. If we assume another financing after this one, for a total than of 30 million shares out, a C$310 million valuation would be about C$10 per share. I think a reasonable target for 2021, with successful drill results would be between C$5 and C$7 per share, If the gold bull market continues and gold prices go higher as I expect, than we could easily see higher prices on the CLAR stock.

The historical drilling means that downside risk is very low. It also means that targets are already well defined and I doubt there will be too much surface exploration before drilling begins. The company has a good handle on the gold zones and their orientation.

I am only showing a 6 month chart because the stock just started trading beginning of July. It has been consolidating between C$1.15 and C$1.30 since October making a good base here. A break above C$1.30 will be a clear sign the stock is going up to the next level. It is probably still in this range because of the C$0.96 financing announced and that will probably close soon. This project will have no trouble getting financed.

Ron Struthers founded Struthers’ Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 – $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.

 

Disclosure:
1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Clarity Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Clarity Gold is a paid advertiser at playstocks.net. Additional disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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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 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 as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts and images provided by the author.

Struthers Disclosure: All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

First Vanadium Pivots to Gold at Carlin Trend Project

Source: Streetwise Reports   01/18/2021

The company is targeting gold under its vanadium deposit, giving the company the potential for optionality.

First Vanadium

Digging deeper has seemed to do the trick: First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQX; 1PY:FSE) is drilling a Carlin-style gold system below its vanadium deposit on the Carlin Trend in Nevada.

First Vanadium originally explored for vanadium on the property and in 2020 released a positive preliminary economic assessment resource estimate of 180 million pounds of V2O5 flake mined over 11 years and processed over 16 years.

But the Carlin Trend is known for high-grade gold, and more than 84 million ounces have been produced there since the 1960s, with plenty more to come: The Carlin complex, operated by Nevada Gold Mines, the joint venture between Barrick Gold and Newmont Corp., is home to 30 million ounces in the Measured and Indicated category.

“We linked up with Dave Mathewson, the well-known geologist, a former Newmont regional exploration manager and probably one of the best explorers in the world for these types of projects; he has made six gold discoveries himself and tens of millions of ounces of gold,” First Vanadium CEO Paul Cowley told Streetwise Reports.

Mathewson, who now serves as a geological advisor to First Vanadium and is spearheading the gold drilling program, “conceptualized a gold target underneath the vanadium resource, and we’ve drilled on it in the late summer and announced in November that Dave was right; we have indeed intersected a gold system in a prolific world-class gold trend,” Cowley said.

The company has drilled seven holes to date and noted on December 22 that the first three holes “define a Carlin-style gold system with dimensions of at least 500 meters vertically and 1.4 kilometers in length.” First Vanadium expects to receive the assay results for the remaining four holes this month and next; the seventh hole was drilled to a depth of 2,500 feet.

“The first three holes were a pilot test of the system, which proved successful,” Cowley explained. “The subsequent four holes are to start to give us a better understanding of the system.”

The company plans to conduct induced polarization (IP) this month that should help define how big the system is; the results of that along with assays of the remaining drill holes will help guide further drilling.

“The combination of drilling plus geophysics, those tools will help us find the sweet spots in the system. What we’re trying to do now with this program, as well as subsequent programs, would be vectoring in on sweet spots, and that would be high-grade gold,” Cowley said.

The gold system starts at a depth of around 300 meters and goes to at least 760 meters. Cowley explains that this is a fairly intermediate depth for underground high-grade deposits in Nevada. “Two decades ago it was all about low-grade, open-pit mines in Nevada, but now probably 90% of the ounces in Nevada come from deeper, high-grade deposits. So this is realistic and not excessively deep.”

The area has extensive infrastructure: the project is located about 13 miles away from Newmont’s gold processing facility, about 6 miles from the town of Carlin and is easily accessible by road. “We are surrounded by claims owned by Newmont and Barrick,” Cowley noted.

First Vanadium

“We are beyond the proof of concept now. It’s a very exciting pivot from vanadium to gold, and a very real and substantial opportunity for First Vanadium shareholders,” Cowley said.

A gold resource would give the company optionality. The price of vanadium went sky high in 2018 after the Chinese government mandated its use in steel production, driving it to $34 per pound, but the price has since come down and now sits at around $7 per pound. “Vanadium prices should rebound with the deployment of vanadium redox flow batteries in large renewable energy projects around the world,” Cowley noted.

First Vanadium has on option agreement to earn 100% of the Carlin property. “We’ve completed all the terms except for the final payment of $1.9 million,” Cowley said. “That is due in about a year and a half.”

First Vanadium has also just added to its gold portfolio by optioning the AVP property from Dave Mathewson. This property, made up of 40 unpatented lode claims, is located on the southern extension of the Battle Mountain – Eureka Trend, and more specifically, on the southern extension of the Cortex-Gold Bar Trend, 23 kilometers east of Eureka, Nevada.

“We are very pleased to add this high-quality opportunity from Dave Mathewson who obviously has a proven eye for good gold prospects in Nevada. The terms are modest to manage, still allowing us to focus the bulk of our treasury on drilling the Carlin Vanadium-Gold Project,” Cowley said.

In the spring, the company plans to conduct a ground magnetics and gravity survey on the AVP property, followed by reverse circulation drilling in 5-10 holes in 1,500m (5,000 ft) this summer. “Drilling in the 1980s on AVP suggests mineralization remains open in almost all directions and, according to Dave Mathewson, may represent the tip of the iceberg,” Cowley stated.

First Vanadium has approximately 57 million shares outstanding and 76.2 million fully diluted.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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: First Vanadium. 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 as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Vanadium, a company mentioned in this article.

Lithium Developer Benefitting ‘Handsomely’ from Renewed EV Interest

Source: The Critical Investor for Streetwise Reports   01/18/2021

The Critical Investor takes a look at recent developments at Standard Lithium and speaks with CEO Robert Mintak.

LiSTR demonstration plant at Lanxess project site

LiSTR demonstration plant at Lanxess project site

1. Introduction

Despite COVID-19 gearing up for a second wave, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) continues to raise money in very significant quantities for a typical lithium developer. I continue to be impressed by CEO Robert Mintak, who raised C$34.5 million in December of last year, after completing a heavily oversubscribed C$12.1 million round in February of that same year. Although COVID-19 is feared to have an impact on real world economics again, optimism seems to vaporize these sentiments quickly, fueled by a US$900 billion stimulus package signed by Trump at the last minute on December 27, 2020, and maybe even more importantly, two authorized vaccines, being allocated to frontline health care workers worldwide at the moment, and later on to the general public.

Adding to this is the recovery of the Chinese economy, which seems to be immune to second pandemic waves that are sending many countries into lockdown again and is ramping up production and commodity imports to pre-COVID levels, and by doing so seems to function as a kickstarter of the world economy. Following this news were extremely high PMI figures coming in very recently from Europe, indicating strong future recovery sentiments triumphing current lockdown fallouts. I am still amazed by the ongoing disconnection of real world economics and stock markets, as many companies are at the brink of bankruptcy and massive lay-offs, identifying the K-type recovery of stock markets, sending selected stocks to unimagined and unprecedented highs (Amazon and numerous other internet/delivery companies), while others go down the drain (for example, airlines).The remarkable news flow sent stock markets across the globe to multiyear and sometimes all-time highs, and regained enthusiasm for anything electric vehicle (EV) related. Tesla boss Elon Musk declared he was going after his own lithium projects last year, and among other things called for nickel contracts. Besides this, as Tesla performed well and locked in five quarters of profits, its share price went through the roof.

This all fueled a craze in lithium stocks in the fourth quarter of last year, with supply showing signs of tightening after several years of oversupply and the resulting low lithium product pricing in both spot pricing and contract pricing. A quick clarification: contract pricing is the actual price industrial scale off-takers are paying to industrial scale mining companies for large amounts of lithium products, but the pricing is very hard to track, and spot pricing is the price smaller off-take parties pay to small scale producers, but which is better to track for market watchers like Fastmarkets, Asian Metals and Benchmark Minerals. As with uranium, another opaque market handling spot and contract prices, Standard Lithium benefitted handsomely as well from the renewed EV interest almost singlehandedly generated by Tesla, as can be seen in its chart:


Share price 1 year timeframe; Source tmxmoney.com

I must say CEO Robert Mintak has a sixth sense for timing of financings related to COVID-19 outbreaks, as the first raise was closed right before the first wave, and the current one right before the second wave. As it seems Standard Lithium is cashed up now to complete and optimize both the already functional and lithium products producing LiSTR and SiFT demonstraton (pilot) plants, it definitely was time to catch up with Mintak about the current state of affairs.

All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise

2. Financing

Standard Lithium recently announced the closing of the aforementioned C$34.5 million public offering, at a price of C$2.20 with no warrants, which was impressive to say the least, as no lithium junior comes even close. As it was a short form prospectus, there is no holding period, but this didn’t keep the share price from exploding higher. It never dropped to C$2.20 levels after announcing the closing news, which really is a sign of strength. On the contrary, existing warrant holders exercised their warrants to the tune of C$5.5 million since October 1, 2020, so the company added about C$40 million to the treasury since then.

The net proceeds from the offering will be used to fund ongoing work programs like ongoing testing and optimization work at the SiFT lithium carbonate crystallization pilot plant and the LiSTR Direct Lithium Extraction demonstration plant, preliminary engineering work to advance commercial development of the proprietary lithium extraction process, negotiation and development of a joint venture with LANXESS, and for working capital and general corporate purposes. CEO Mintak was particularly happy to welcome BNP Paribas Energy Transition Fund, which did extensive due diligence before coming on board. It seems everything is back on track and going smoothly after COVID-19 caused delays in execution over the summer. Even the lithium product prices seem to have just turned a corner, let’s have a quick look for an update in this department first.

3. Lithium product pricing update

I usually use three sources to determine the current state of affairs with lithium product pricing. These are:

1. Presentation of Lithium Americas, an advanced lithium developer that usually has one or more useful charts on pricing developments to show for:

Please note the significantly higher pricing out of Japan and Korea, as opposed to China, that are leading at the moment for spot prices.

2. Sale prices of Orocobre, an actual lithium carbonate producer, which can be found in its financials (it also has very interesting further information regarding lithium market fundamentals on its website, which is recommended reading material). The H1 FY2020 sales price was US$6,157/t FOB, and the expected Q3 FY2020 sales price was US$5,000/t FOB. However, the realized sales price was just US$3,102/t FOB. Sales volumes were approximately 22% battery grade lithium carbonate and the remainder primary grade lithium carbonate.

3. The monthly update for lithium product pricing and status of lithium developers/explorers, written by fellow writer Matt Bohlsen on SeekingAlpha, who continues to diligently track the entire EV suite of metals, and apparently has access to recent available data:

“During December, 99.5% lithium carbonate China spot prices were up 6.4%. Lithium hydroxide prices were up 0.74%. Spodumene (6% min) prices were up 0.21%. Fastmarkets (formerly Metal Bulletin) reports 99.5% lithium carbonate battery grade spot midpoint prices cif China, Japan & Korea of US$6.75/kg (US$6,750/t), and min 56.5% lithium hydroxide battery grade spot midpoint prices cif China, Japan & Korea of US$9.00/kg (US$9,000/t). Benchmark Mineral Intelligence has November global weighted average prices at US$5,700/t for Li carbonate, US$8,837/t for Li hydroxide, and US$380/t for spodumene (6%).”

The trend for lithium products finally seems to have bottomed. This cannot be observed in this latest chart coming from Fastmarkets (paid for link, chart provided by author Bohlsen on SeekingAlpha.com):

but when looking more into detail as Bohlsen does, all product prices are going up recently:

For the long term I have seen market scenarios contemplating US$9,000–10,000/t LCE, which is a price more than half the current development projects need in order to be economic, including, in my view, Standard Lithium, but we aren’t there yet. Therefore, I again reworked the lithium sensitivity, where three scenarios are presented, the 20.9kt LCE pa (per annum) base case, and the hypothetical 30kt LCE pa expansion scenarios as I calculated them in my first article on the company:

Afbeelding met tafel

Automatisch gegenereerde beschrijving

A current US$6,200/t LCE price, which is roughly a midpoint of Fastmarkets and BMI estimates, would generate a hypothetical NPV8 of below zero, and a hypothetical post-tax IRR of 5.2–7.3%, which would render the project not economic, as lithium projects usually need an internal rate of return (IRR) of at the very least 20%. This is something Mintak will address further along this article. As a reminder, these figures are based on 100% project ownership economics, and Lanxess is committed to provide project finance to the JV when testing and the preliminary feasibility study (PFS) are successful in their view, and Standard will probably be an estimated 30% JV partner. As I am curious about the current state of affairs, especially the status of the PFS, I prepared several questions for Mintak, some are softballs, others curveballs, some fastballs, here we go.

4. Interview with CEO Robert Mintak

The Critical Investor (TCI): Congratulations with the closing of this financing, very impressive. Could you tell the audience how you found BNP Paribas, and are there other new big insto names coming into the story as well, although in that case you are not at liberty to disclose their names? I love the fact BNP didn’t need warrants, but why did you have to do a short form offering without a holding period, was it either warrants or a holding period, and you chose to avoid dilution?

Robert Mintak (RM): While the company has a strong core group of investors that has funded the company when required over the past four years, it has always been our objective to broaden our institutional shareholder base. The recently closed financing was the result of a significant amount of outreach work over the past six months. U.S.-based Roth Capital Partners, which has covered Standard for several years now, approached us with a brokered offering in early December that aligned with our capital requirements and investor objectives. A short form prospectus offering with no warrant that targeted institutional investors would be the most well received. Echelon Wealth Partners came on as co-lead and both did a terrific job. The financing was well oversubscribed, and we are very happy to have added BNP Paribas ESG focused New Energy Transition Fund as a significant shareholder of the company.

TCI: With this kind of cash on hand, Standard Lithium should be positioned well in order to complete optimization of demonstration/pilot plants and the resulting PFS. I have several questions regarding these subjects. First of all I noticed the news release of December 3, 2020, announcing the successful completion of the start-to-finish proof of concept of the proprietary lithium processing technology: “The culmination of the proof-of-concept was to convert and crystallise the LiCl solution produced by the Company’s first-of-its-kind Direct Lithium Extraction (DLE) Demonstration Plant.” I wasn’t really aware of the need for the conversion of LiCl into battery quality (or even better quality according to the news release) lithium carbonate, in my view this was an option. Focus of attention has always been, as far as I know, the LiSTR DLE Demonstration Plant, which had to produce verification data for the PFS. Could you elaborate on this news release, and the current strategy of Standard in this regard?

RM: You are correct in that the LiSTR direct extraction technology is the key to unlock the globally significant Smackover lithium resource, and the successful performance of the LiSTR Demonstration Plant is of course paramount, there would be no project without the extractive technology. The LiSTR technology extracts lithium from the Smackover brine in a modern, environmentally friendly and scalable way. The output from the extraction process is lithium chloride, LiCl. Basically, the same output as the evaporative process. The conversion of the LiCl produced by the LiSTR process to a battery quality lithium carbonate is the broader proof of concept of an integrated lithium chemical project.

TCI: As the 99.9% battery quality lithium carbonate production was achieved on a pilot plant scale, it seems the SiFT system is successful. As you just mentioned, a conventional crystallization plant will be the main strategy, does this mean the SiFT system is likely to be integrated at a later stage, assuming it will still be useful?

RM: I will point everyone to our news release on Sept 9th, 2020, that highlights the Dual Track Program we are undertaking for the conversion of lithium chloride to lithium carbonate. 1. Using an existing conventional OEM process and 2. Utilizing our proprietary SiFT process. Any initial commercial production would utilize an OEM supplied conventional carbonation plant, the SiFT process will continue to be de-risked and proven out for commercial success with a target to be deployed in subsequent stages of the projects development to address the higher purity requirements of next generation batteries.

TCI: The news release further mentioned, “a further concentration using industry-standard reverse osmosis technology” before the LiCl concentrate was converted at the SiFt pilot plant in BC, Canada. Does this mean this is an additional step that will be outsourced in the future, or are you planning on integrating this in the Lanxess project when going into construction?

RM: Nothing will be outsourced. The work that is being done today at different campuses would all be done at the same commercial project location. The concentration of LiCl using an R.O. technology is part of our flow sheet. The R.O. process is a cost-effective step to produce high purity LiCl with optimal concentration for conversion to lithium carbonate.

TCI: Some of the interesting aspects of the LiSTR plant are: it produces lithium chloride (LiCl) directly from un-concentrated raw brine; it reduces recovery time from months to less than a day, and it vastly increases recovery efficiencies to as much as >90%. I was wondering if these objectives are already achieved, or what the status is on each of them as far as you can disclose?

RM: I can only comment on aspects that have been released to the market. What I can state is that we are very happy with the results to date.

TCI: An even more important subject for me is costs as you know, indicating if the recovery process is economically viable at a certain lithium carbonate price or not. I realize this is material information, and we have been discussing optimization in order to lower the PEA base case price for lithium products, but I am still wondering if you could state something in terms of achievements or developing trends?

RM: The purpose of our LiSTR demonstration plant is to prove technical scale up validation, economic process validation and test ways for optimization. Chemical reagents make up 70% of the opex as reported in our PEA, reagent optimization is of course something we are working at improving. I will also highlight the scale of our demonstration plant; 1/60th commercial scale. That may sound small but compare that to any of our peers that operate pilot plants that are typically 1/500th to 1/1000th commercial in size.

TCI: As we have discussed earlier, the PEA uses very high base case pricing for LCE (non-battery quality). Your reaction to the low Chinese spot prices was it wasn’t the correct pricing reported, and we should look at Japanese/Korean prices, which hover around US$9–10k/t LCE. Why is there such a difference in prices between these countries?

RM: Regarding price levels: I strongly believe lithium carbonate prices will return to prices above $13,000 USD per tonne after 2023. It is important to also consider the importance of localizing supply of raw materials. COVID has taught us a lot about localizing supply chains, there are also geopolitical considerations and legislative policies that will further define pricing. Look at the USMCA, the United States, Mexico, Canada trade agreement for automobiles. In order for vehicles to qualify, these require 70% domestically North America sourced materials, or suffer from tariffs. From a global perspective, virtually every large car maker has begun making investments and allocating budgets to enter the EV space. The lack of investment in the upstream supply chain for critical minerals will come at a price, a higher price for battery materials.

TCI: Something else. I noticed that you wouldn’t confine yourself to the Lanxess/Arkansas bromine brine feed, but would like to be able to process different brines. How does this work, would you like to review options to export the technology and do JVs with current brine producers worldwide, or is this way too early to contemplate, as the IP is simply owned by the JV in the current Lanxess partnership, and any decision on this will be a joint decision?

RM: The Smackover brine in south Arkansas and to a greater extent the Gulf region is a globally significant resource. Initial commercial production from post bromine extraction tailbrine gets the project up and running quickly compared to any of our peers followed by expansion and decoupling from the bromine tail brine moving westwards across the production fairway. The Smackover brines have the potential to be the Permian Basin of lithium. Our attention will be focused on the lowest hanging fruit and working in the best possible jurisdiction to build a lithium chemical business.

TCI: Going a bit further on IP, it is my understanding that the patents for the LiSTR demonstration plant are still pending. Could you give us an indication when these patents will be granted? Is this in any way a threshold for a potential JV with Lanxess?

RM: The full application of the LiSTR patents was filed in 2018/19 and for multiple countries as required. I really can’t say much on timelines as that is outside of my control. I don’t expect it to be a roadblock for the JV negotiations.

TCI: In case a JV is initiated and finalized with Lanxess, they will be building the project. You have indicated you will be looking at further opportunities, to grow the resource as useful brine runs under the surface for hundreds of miles. How could you monetize an expanding resource, is Lanxess providing expansion capex and returning increased cash flow, how does this work?

RM: I cannot comment on anything that has not been announced or finalized and I can never speak on behalf of our partners. We have been very careful to avoid the problems the industry has faced with developers and even existing producers promising and not delivering. What I will say and I am repeating myself, the Smackover brines are a globally significant lithium resource that, with the application of the appropriate extractive technology and a responsible development strategy, offer an unparalleled business opportunity.

TCI: We have come to an end of this interview. Do you have anything else to add for the audience?

RM: After several false starts, the tens of billions of dollars committed and billions invested by auto OEMs, the legislative policy implementations by governments across the global and a broader acceptance of EVs by consumers will make 2021 an inflection point in the lithium industry. The timing could not be better for Standard Lithium. We are well funded, have a terrific project partner and we are working in the absolute best place to build a fully integrated lithium project anywhere on the planet. It is going to be an exciting year; we are just getting started.

5. Conclusion

Despite COVID-19 going into its second wave, Standard Lithium raised another C$34.5 million, and arrived at the endgame of their optimization process, and according to CEO Mintak, is already into discussions with Lanxess about the intended JV. Lithium product prices finally seem to have turned the corner in conjunction, so the timing is impeccable, combined with Tesla and recovered China car demand, rocking the EV markets and everything connected to it. As a result, the share price of Standard Lithium is going through the roof, although it isn’t exactly clear how to value the company and its project at this point, due to unknown actual cost profiles and opaque lithium contract pricing.

If Mintak is correct and a healthy Japanese/Korean US$10k/t can be used for battery quality lithium carbonate, the Lanxess project is economically viable at the moment if the LiSTR plant opex profile follows specifications laid out in the PEA.

For now, Standard has gathered the data to underpin production costs. It remains to be seen if Lanxess will just finalize a JV or simply could buy Standard Lithium outright, as it would own all IP as well in that case. Either way, it seems Standard Lithium is positioned well these days.

Afbeelding met buiten, grond, natuur, gras

Automatisch gegenereerde beschrijving

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

 

Disclaimer: The author is not a registered investment advisor, and currently has a long position in this stock. Standard Lithium is a sponsoring company. All facts are to be checked by the reader. For more information go to www.standardlithium.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

Streetwise Reports Disclosure:
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Will gold’s double bottom trigger a 15% rally higher?

By Admiral Markets

Gold prices enjoyed an impressive +40% rally higher during the coronavirus pandemic before falling for the last few months of 2020. After a push higher in late December, buyers could still not break the 1,950.00 level sending gold prices crashing lower to 1,819.00.

However, at this level, the price of gold has put in a double bottom pattern which is seen as a bullish technical sign. On 11 January and 18 January, the price of gold tried to break through the 1,819.00 price level but failed to close below it.

Source: Admiral Markets MetaTrader 5 Web, Gold, Daily – Data range: from May 27, 2020, to Jan 20, 2021, performed on Jan 20, 2021, at 7:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

Last five-year performance: 2020 =  +25.13%, 2019 = +18.30%, 2018 = -1.60%, 2017 = +13.17%, 2016 = +8.55%, 2015 = -10.30%.

This could be a sign that sellers are now struggling to push the market lower, allowing the opportunity for buyers to step in.

  • A close above the recent swing high at 1,864.00 would be a sign buyers are willing to take control of the market where initial targets would be previous horizontal resistance at around the 1,950.00 level.
  • A close below the double bottom pattern at around 1,803.00 would invalidate the bullish scenario and may encourage sellers to push the market lower, with traders targeting the next swing low at around the 1,764.00 price level.

Much of the flows may depend on the direction of the US dollar. The greenback has been one of the weakest currencies in recent months but has started to stage a potential reversal. If US dollar bulls take control of the US dollar it could spell trouble for gold. However, with new Treasury Secretary Janet Yellen and her new policies, some analysts are forecasting more downside for the US dollar which could help lift gold prices.

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INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter “Author”) based on personal estimations.

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By Admiral Markets