Comstock Mining Announces 2020 Year End Results and Recent Updates; Launches Climate Smart Mining and Valorization to Fuel Clean Energy Transition

 

VIRGINIA CITY, Nev., March 11, 2021 (GLOBE NEWSWIRE) — Comstock Mining Inc. (“Comstock” and the “Company”) (NYSE American: LODE), a diversified natural resource production and processing company, announced its full year 2020 results and its plans for meeting the rapidly escalating demand for natural resources and increasingly scarce metals for clean energy technologies.

Select Strategic Highlights

• Acquired majority stake rights in LiNiCo, a lithium-ion battery recycling company;
• Acquired an indirect strategic stake in Green Li-Ion, innovator of 99.9% pure cathode recycling technology.
• Launched Philippine-based mercury remediation and gold reclamation (“MCU-P”) joint venture.
• Launched MCU’s Nevada-based mercury remediation pilot and gold reclamation project.
• Secured exploration lease with historic Sutro Tunnel Company, targeting gold and silver resources.
• Acquired option to purchase all properties, rights, and royalties associated with Sutro’s properties.
• Completed full scale geophysical surveys and initial interpretations for the entire Comstock Lode District.
• Executed agreements to sell two non-mining properties in Silver Springs for $10.1 million in 2021.
• Executed a lease with the option to sell the Daney Ranch property for $2.7 million.
• Completed a mine sale to Tonogold Resources, Inc., recording a gain of $18.3 million.
• Launched a three-year strategic plan and aligned 100% performance incentives with the Company’s goal.
• Raised $15 million in net equity proceeds in 2021, extinguishing all debt obligations and funding new growth initiatives.

Select Financial Results

• Net income was $14.9 million, or $0.49 per common share, due to an $18.3 million gain on Tonogold sale.
• Debt obligations were $3.6 million at December 31, 2020, all of which was extinguished in 2021.
• Cash and equivalents was $2.4 million on December 31, 2020, and $12.1 million on March 5, 2021.

On March 4, 2021, the Company closed on a $16 million registered direct sale of 4 million common shares at a price of $4.00 per share. Net proceeds were approximately $15 million, after commissions and expenses. The Company now has 42,455,515 common shares outstanding, including the 4 million registered shares sold in the March 2021 offering, and 3 million restricted shares issued as consideration to LiNiCo in connection with the LiNiCo share acquisition. On March 5, 2021, the Company extinguished all of its debt obligations totaling $3.6 million, saving over $0.3 million in interest expense over the next 6 months.

“We have successfully restructured our business over the past three years by eliminating debt and dramatically reducing costs, while repositioning our assets to build stakeholder value with transformative, high value, high impact, climate smart mining and valorization projects, in large part to meet rapidly escalating demand for the increasingly scarce metals and other raw materials needed to fuel the global transition to clean energy,” stated Corrado DeGasperis, Executive Chairman and CEO. “Our first valorization project launched in 2020 with the MCU global mercury remediation system. Our second valorization project recently closed, with our entry into lithium-ion battery recycling through our large stake in LiNiCo, and we are only just beginning, as we are currently evaluating several very exciting, strategically aligned, high-growth, high-impact, valorization projects.”

Outlook Moving Forward

The Company’s strategic plan is designed to deliver significant shareholder value over the next three years. The plan objectives include operating and growing existing and new Environmental, Social and Corporate Governance (“ESG”) driven projects, including MCU and LiNiCo, while monetizing over $20 million more in non-strategic assets, and funding this new growth.

Mr. De Gasperis continued: “We have directly linked employee compensation incentives with performance objectives designed to increase shareholder value. If we do not perform, then our shareholders are not rewarded, and neither are we. The objectives are designed to deliver $500+ million in equity value by 2023, or more than $12 per share, while positioning the Company for accelerated growth and cash flows thereafter. We will provide updates regarding our progress in the coming weeks and months.”

Additional Disclosure on the Company’s Valorization Projects

Comstock Secures Majority Stake in LiNiCo; Indirect Stake in Green Li-Ion

On February 17, 2021, the Comstock announced transactions securing a large equity stake in LINICO Corporation (“LiNiCo”), a lithium-ion battery (“LIB”) recycling company who recently acquired a state-of-the-art battery metal recycling facility from Aqua Metals, Inc. (“Aqua Metals”) located in the Tahoe Reno Industrial (“TRI”) Center in Storey County, Nevada. The Company will pay up to $4,500,000 in cash and delivered 3,000,000 restricted common shares, representing up to $10,750,000 in consideration for up to a 64% stake in LiNiCo while Aqua Metals is investing $2,000,000 for a 10% stake.

LiNiCo has used a portion of those proceeds to increase its direct strategic investment in Green Li-ion Pte, Ltd. (“Green Li-ion”) to just over 20%, acquire the state-of-the-art battery metal recycling facility from Aqua Metals, and purchase Green Li-ion’s patented process equipment enabling the production of 99.9% pure lithium-ion cathodes in the U.S. LiNiCo’s new facility was designed for, and well situated to, receive, crush, and separate battery materials into black mass. Green Li-ion’s technology has been proven to convert black mass into rejuvenated, high purity, battery grade metals and essentially pure cathodes for a fraction of the cost and time of conventional solutions.

LiNiCo has commenced securing permits, feedstock arrangements and 99.9% pure sample cathode materials and plans on commencing production late this year, building toward cathode production capacity of about 10,000 tons per year. At just 33% of that rate and 60% of applicable commodity prices, the LiNiCo facility should generate more than $100 million in sales with pre-tax operating income margins exceeding 30%, adding 40 good paying Nevada jobs and making a landmark contribution to Comstock’s ESG-based Product and Process Stewardship and Climate Smart Mining objectives.

Mercury Clean Up LLC (“MCU”) and the Launch of MCU Philippines Inc. (“MCU-P”) Operations

During 2019, the Company entered into a Mercury Remediation Pilot, Investment and Joint Venture Agreement (the “MCU Agreement”) with MCU. Pursuant to the MCU Agreement, the Company paid $2 million of capital contributions in exchange for 15% of the fully-diluted membership interest of MCU. The Company also has a 50% in MCU Philippines Inc., the first international mercury remediation joint venture in the Philippines (MCU-P) that officially commenced processing this week in the province of Davao D’ Oro, Philippines, with a full political and regulatory support of the eco-system-wide mercury clean up.

The Company has exercised it rights to coordinate up to an additional $3 million in secured financing for MCU-P, and recently completed the first $2 million of loans to MCU-P, earning another 10% of MCU (for a total of 25%), resulting in the Company securing the rights to 62.5% of the economics for all of the mercury remediation projects.

Gold and Silver Developments

Dayton and Spring Valley Gold and Silver Mineral Property Development

The Dayton resource area ranks as the Company’s top exploration and potential mine development target. Our geology team has been completely updating the interpretive model of the Dayton resource area, continuing into Spring Valley. The Company plans to generate a resource estimate based on a standalone, S-K 1300 technical report summary, and then follow up with additional drilling and technical work leading to an economic feasibility report.

During the third quarter of 2020, the Company engaged Geotech Ltd (“Geotech”) of Aurora, Canada, to conduct an airborne geophysical survey of the Dayton resource area, Spring Valley exploration targets, and the rest of the Company’s Comstock District properties. The survey included both magnetic and Geotech’s proprietary Versatile Time-Domain Electromagnetic (“VTEM”) surveys. The survey was flown from September 19 through October 3, 2020, with 1,161 line-kilometers. The interpreted, three-dimensional results are scheduled to be delivered in early 2021. The results will greatly increase the Company’s understanding of the Dayton resource area and Spring Valley resource expansion potential, along with the Company’s other exploration targets in Lyon and Storey Counties.

Lucerne Gold and Silver Mineral Properties – Revenue and Royalties

On September 8, 2020, the sale of Comstock Mining LLC, the entity that owed the Lucerne properties was closed, and Tonogold acquired 100% of the membership interests. The Company recorded a gain on the sale of the transaction of $18.3 million, agreed to receive reimbursements of approximately $2 million per annum from a lease option agreement for future processing of Lucerne mine ores, and also retained a 1.5% Net Smelter Return (“NSR”) royalty on all of the Lucerne mineral properties. Tonogold plans on publishing an initial NI 43-101 resource report for the Lucerne properties during 2021.

Occidental and Gold Hill Gold and Silver Mineral Properties – Exploration and Mining Lease

The Occidental and Gold Hill group of exploration targets represent longer-term exploration target areas that contain many historic mining operations, including the Overman, Con Imperial, Caledonia, and Yellow Jacket mines. The Company entered into a renewable mineral lease with Tonogold for these mineral properties owned or controlled by the Company in Storey County, Nevada (the “Exploration Lease”). The Exploration Lease grants the right to use these properties for mineral exploration and development, and ultimately the production, removal and sale of minerals and certain other materials. The lease requires exploration spending, permitting, and engineering commitments for a minimum of $1.0 million per year and a cumulative total of $20.0 million over 20 years. Tonogold has committed to specific milestones for issuing technical and feasibility reports on their results. Tonogold pays a quarterly lease fee of $10 thousand, in advance. The lease fee escalates by 10% each year plus reimbursing the Company for all costs associated with owning the properties. The lease also provides for royalty payments after mining operations commence starting at the rate of 3% of NSR for the first year following the commencement of mining and 1.5% of NSR thereafter for all of the properties.

Mr. DeGasperis continued: “While we have historically focused on metals, our philosophy has always been about extracting and processing precious and strategic natural resources, where the words “precious” and “strategic” were defined to include high value metals based on market drivers and prevailing commodity prices. Today, however, as we think through the inevitabilities of the “perfect storm” of demand from the world-wide transition to clean energy, increasing population, and increasing natural resource scarcity, our targets are expanding to encompass additional and emerging high value commodities. We are currently evaluating several very exciting ESG-based, nature-based, highly accretive, valorization projects and investments.”

Specific Moving Forward Objectives for Existing Projects

Specific performance objectives for the Company’s existing operations include:

Commercialize a global, ESG-compliant, profitable, mercury remediation and other critical mineral systems:

• Establish the technical efficacy of MCU’s Comstock Mercury System, and protect the intellectual property;
• Deploy and operate the first international mercury remediation project by deploying MCU’s first, second and at least third mercury remediation systems into the Philippines;
• Identify, evaluate and prioritize a pipeline of potential mercury remediation projects; then deploy the third and fourth mercury remediation projects, producing extended, superior cash flow returns; and,
• Assess and acquire accretive, ESG-based, strategic expansion opportunities.

Establish and grow the value of our mineral properties:

• Establish the Dayton Resource area’s maiden, stand-alone mineral resource estimate;
• Expand the Dayton-Spring Valley Complex through exploration drilling and geophysical modelling;
• Develop the expanded Dayton-SV Complex toward full economic feasibility, supporting a decision to mine;
• Entitle the Dayton-SV Complex with geotechnical, metallurgical, environmental studies and permitting; and,
• Validate the Comstock NSR Royalty portfolio, i.e., Comstock and Occidental Lodes, Lucerne, etc.

Monetize non-strategic assets and build a quality organization:

• Monetize our third-party, junior mining securities responsibly, for $12.5 million or more;
• Monetize our non-mining assets for $12.5 million, excluding the Gold Hill Hotel;
• Grow the value of our Opportunity Zone investments to over $30 million; and,
• Deploy a systemic organization, capable of accelerating growth and handling complexity.

Mr. De Gasperis concluded, “We have directly linked our strategic performance objectives with our goal of delivering $500 million in shareholder value (or at least $12 per share) and then aligned all of our people with 100% performance-based, stock-based compensation based on both delivering these objectives, funding them and delivering at least that value to our shareholders. Again, if our shareholders are not rewarded, then neither are we.”

See press release with images at https://www.comstockmining.com/press-releases/comstock-mining-announces-2020-year-end-results-and-recent-updates-launches-climate-smart-mining-and-valorization-to-fuel-clean-energy-transition/

Conference Call

The Company will host a conference call today, March 11, 2021, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time. The live call will include a moderated Q&A, after the prepared comments by the Company. The Webcast will include a moderated Q&A, after the prepared remarks. Please join the event 5-10 minutes prior to the scheduled start time. The link and/or dial-in telephone numbers for the live Webcast are as follows:

Join Zoom Meeting

https://us02web.zoom.us/j/7437013377

Meeting ID: 743 701 3377

One tap mobile

+12532158782,,7437013377# US (Tacoma)

+13462487799,,7437013377# US (Houston)

Dial by your location

+1 253 215 8782 US (Tacoma)

+1 346 248 7799 US (Houston)

+1 669 900 9128 US (San Jose)

+1 301 715 8592 US (Washington DC)

+1 312 626 6799 US (Chicago)

+1 646 558 8656 US (New York)

Meeting ID: 743 701 3377

Find your local number: https://us02web.zoom.us/u/kGBcBXcOw

The recording of the Webcast will be available, within 24 hours of the call, on the Company website:

http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging leader in sustainable mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation, gold and silver extraction facilities. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

Wednesday, March 10, 2021

Sierra Metals (SMTS)(SMT:CA)
Copper Prices Strengthen in 2021; Updating Estimates

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Updating estimates. While our 2020 estimates are unchanged, we are increasing our 2021 EPS and EBITDA estimates to $0.40 and $180.1 million from $0.38 and $175.2 million, respectively. Our revised estimates reflect changes to our 2021 price deck including higher copper prices, along with lower gold prices. We have also made modest adjustments to our production estimates within the company’s guidance range.


Fundamentals appear favorable.  Base metals prices appear to be responding to increased demand expectations as markets recover and economic growth accelerates. Year to date through March 9, copper futures prices are up 14%. Secular themes including trends toward electrification favor metals used in electric vehicle batteries, charging stations, and solar and renewable …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

 

David Kelley of Chakana Copper presents at the Virtual Metals Investor Forum on March 4-5, 2021

 

 

SOURCE: Chakana Copper

Tr’ondëk Hwëch’in Chief & Golden Predator CEO Present at 2021 Annual PDAC Conference

 

Please join Chief Roberta Joseph, Tr’ondëk Hwëch’in, and Janet Lee-Sheriff, Golden Predator Mining Corp’s Chief Executive Officer, as they present at the 2021 Annual Prospectors & Developers Association of Canada (PDAC) Conference. The session will be held online on Wednesday March 10, 2021 from 11:30AM -12:30PM EST and is focused on planting the seeds for engagement, looking at engagement from the lens of both the First Nation government and the exploration/mining company.

PDAC hosts the world’s premier mining and exploration conference annually in Toronto, this year attendees from around the world will attend online due to Covid travel restriction. For more information on the session and on the PDAC Annual Conference please visit:

https://www.pdac.ca/convention/programming/sustainability-program/sessions/sustainability-program/planting-the-seeds-to-grassroots-engagement-what-does-engagement-look-like-at-each-stage-of-the-mining-sequence

About Tr’ondëk Hwëch’in

The Tr’ondëk Hwëch’in are a Yukon First Nation based in Dawson City, Yukon. The citizenship of roughly 1,100 includes descendants of the Hän-speaking people, who have lived along the Yukon River for millennia, and a diverse mix of families descended from Gwich’in, Northern Tutchone and other language groups. Yukon First Nations set the land-claims process in motion during the 1970s. Tr’ondëk Hwëch’in began negotiating their individual land claim in 1991. The Tr’ondëk Hwëch’in Final Agreement was signed on July 16, 1998, and came into effect on September 15, 1998.

The Tr’ondëk Hwëch’in government ensures a strong and healthy future for citizens while maintaining connections to traditional knowledge and the land. The First Nation is governed by an elected Chief and one Deputy Chief and three Councilors, who rely on direction from the Elders’ Council, a body comprising all Tr’ondëk Hwëch’in people aged 55 and over. The General Assembly—all voting-age citizens—gather at least once a year to pass extraordinary resolutions, approve legislation and provide direction to political leaders.

About Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities in Canada’s Yukon. With established resources grading over 1.0 g/t gold the Company is completing a Bankable Feasibility Study for the restart of heap leach operations. The Brewery Creek Mine project operates with a Socio Economic Accord with the Tr’ondëk Hwëch’in.

For additional information on Golden Predator Mining Corp.:

Janet Lee-Sheriff
Chief Executive Officer
(604) 260-8435
info@goldenpredator.com
www.goldenpredator.com

Source: Golden Predator Mining

Ely Gold Royalties Sells Claim located on the Hercules Gold Property, Nevada

 

Strategic District Scale Property Currently Being Explored by Northern Vertex Ely Gold Retains 2% NSR on J & M Lode Claim

Vancouver, British Columbia–(Newsfile Corp. – March 9, 2021) – Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (“Ely Gold“) is pleased to announce that through its wholly-owned subsidiary, Nevada Select Royalty Inc, it has completed a Sale Agreement with Northern Vertex Mining Corp (“Northern Vertex” formerly Eclipse Gold Mining Corporation) whereby Northern Vertex has purchased one lode mining claim (the “J & M Claim“) within their Hercules Gold Property ( “Hercules” or the “Property“) located in the Walker Lane Trend, Nevada. Eclipse Gold Mining merged with Northern Vertex Mining Corp effective February 12, 2021.

Ely Gold had previously purchased the J & M Claim from a third party for US$20,000 and sold it to Northern Vertex for the same amount with Ely Gold retaining a 2.00% Net Smelter Royalty (“NSR”).

Hercules Gold Property

Northern Vertex is exploring the district-scale Hercules Gold Property which is located approximately a one hour drive from Reno and has all the characteristics of a large, low-sulphidation epithermal gold system.

Ely Gold’s strategic claim is located between the West Cliffs and Hercules structural zones (see Figure 1) of Hercules. Both zones are east dipping and south plunging with potential for additional mineralization down dip on the faults and veins exposed at surface within these zones. The West Cliffs structural zone is the most continuous zone of alteration in the project area and potential for additional mineralization exists to the east of this zone. The J & M Lode claim is located in an area of post mineral cover with the potential for a southwestern extension to the Hercules structural zone to exist beneath the cover as well as deeper mineralization associated with the down dip extension of the West Cliffs zone. Mineralization in both zones plunges southward and possibly indicates an additional structural intersection zone in the vicinity of the J & M claim.

Jerry Baughman, President of Nevada Select commented, “We are very pleased to add Northern Vertex to our list of experienced counter-parties exploring our Nevada asset portfolio. This transaction is a testament to our ability to make third-party property purchases due to our long-standing relationships throughout Nevada.”

Gold mineralization in both the West Cliffs and Hercules zones primarily occurs as banded and brecciated quartz veins indicating multiple episodes of faulting and hydrothermal activity related to gold deposition. Stockwork zones and strongly silicified rocks occur adjacent to the high-angle quartz veins and host disseminated gold mineralization as well. Low angle zones of gold mineralization occur between the high angle veins and structures indicating additional mineralization potential to the east and west of the outcropping high angle veins and structures.

Reverse circulation (RC) drilling at West Cliffs returned 74.68 meters of 0.54ppm gold and 4.78 ppm silver. At Hercules, RC drilling returned 89.92 meters of 0.65 ppm gold and 12.51ppm silver 1.

1.MDA Amended Technical Report Lyon County, Nevada at the following link: https://eclipsegoldmining.com/site/assets/files/1497/eclipse-43101.pdf

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com

972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com

647-964-0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Figure 1

Source: Ely Gold Royalties

 

What Metals Prices Can Tell Us About the Economy

 

Mining investors are often lumped into one of two camps. First are investors that seek to capitalize on cyclical stories, such as for base metals whose prices generally respond to increasing demand because of accelerating economic growth. Second are precious metals investors that tend to invest in gold or silver as a store of value or hedge against inflation. For these investors, monetary and fiscal policies, along with relative currency values, are important. Perhaps more so than silver, gold is often a safety play in times of uncertainty. Silver straddles both spheres since it is prized for its industrial properties but is also considered an alternative to gold for precious metals investors on a smaller budget since it generally follows upward moves in the gold price.

Base Metals Take the Lead in 2021

In 2020, precious metals prices performed their role as a haven when the global pandemic upended markets and severely crimped economic growth. While silver and gold have retained much of their gains, base metals appear to have taken the lead in 2021 as markets recover and economic growth accelerates. While silver and gold futures prices are down 11.3% and 4.5% year-to-date, respectively, copper, lead, and zinc futures prices are up 16.2%, 5.6%, and 1.9%, respectively. With metals production impacted by COVID-related work restrictions in 2020, supply and demand fundamentals appear supportive of prices. Secular themes, including trends toward electrification, favor metals used in electric vehicle batteries, charging stations, and solar and renewable power technologies. These include copper, nickel, and silver, among others.

Gold as a Hedge Against Inflation and Black Swans

While precious metals, notably gold, worked as a flight to safety play in 2020, gold prices have yet to signal deep concern about inflation despite record monetary and fiscal stimulus. In early March, the U.S. Senate passed a $1.9 trillion relief package, with the U.S. House of Representatives expected to vote on the bill this week. For its part, the Federal Reserve remains committed to accommodative monetary policies as it seeks to achieve its goals with respect to price stability (inflation) and employment.

The Federal Reserve has already indicated a desire for inflation to average 2% and a willingness to go above to meet the target. As a result, bond yields have risen, with the 10-year Treasury yielding 1.6% versus 0.92% at the end of 2020. This is likely a function of economic and growth expectations. So far, the Fed seems unconcerned about the prospect of runaway inflation, and Treasury Secretary Janet Yellen, formerly Chair of the Federal Reserve, noted that inflation was not increasing prior to the pandemic when the unemployment rate was a low 3.5%. She said policymakers will be monitoring the situation closely and will be prepared to act if inflation becomes a problem.

Another headwind for gold has been a strong U.S. dollar. Despite falling 6.7% in 2020, the U.S. Dollar Index has risen 2.63% since the end of 2020 to finish at 92.31 on March 8. Given that countries around the globe are pursuing similar monetary and fiscal policies, the dollar is likely to remain strong relative to other currencies.

Conclusion

Taking these facts into consideration, investors could consider adding base metals mining stocks to their portfolios as a way to benefit from growing demand as global economic growth accelerates.  And for exposure to greater infrastructure spending and secular trends, changes which bode well for metals linked to the theme of electrification.

With respect to gold, the near-term outlook is a little less certain, with perhaps greater volatility on the horizon as speculative interest dissipates. While the Federal Reserve likely has the tools necessary to combat a sharp rise in inflation, interest rates are likely to remain relatively lower for longer, and gold’s value could be supported as investors seek it as a store of value. Because both inflation and nominal yields are expected to rise moderately in 2021, investors should pay more attention to real yields (nominal yield less inflation), which could in some cases be negative. Lastly, allocations to precious metals and associated equities make sense as a precaution against unexpected events that could materialize, including misjudgment by the Fed, a broad sell-off of equities, or any other events that increase uncertainty and angst among investors.

Additionally, metals prices are up when compared with year-end 2019, and mining companies should be profitable at these levels. Moreover, high-quality reserves in favorable mining jurisdictions are becoming increasingly scarce, and merger and acquisition activity could accelerate as larger producers seek to replenish and grow resources and reserves by acquiring juniors. Therefore, investors could benefit by allocating capital to both producers and junior exploration companies.     

Suggested Reading:

Can Mining be “Green” and Sustainable?

What is the Future of Entertainment Consumption?

The Correlation Between Stocks and Unemployment

Metals & Mining Fourth Quarter 2020 Review and Outlook

 

Sources:

House Set to Take Up $1.9 Trillion Stimulus, Putting Biden on Track to Sign This Week, The Washington Post, Tony Room and Jeff Stein, March 8, 2021.

Yellen Plays Down Inflation Fears, Associated Press, U.S. News & World Report, Martin Crutsinger, March 8, 2021.

Hedge Funds Continue to Unload Their Bullish Gold Bets as Fed Remains Indifferent to Rising Bond Yields, KITCO, Neils Christensen, March 8, 2021.

Relentless U.S. Dollar Rally Continues as Yields Top 1.6%, FXSTREET, Kathy Lien, March 8, 2021.

 

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Comstock Mining Announces Notice of 2020 Year End Results and Business Update Webcast Via Zoom

 

VIRGINIA CITY, Nev., March 08, 2021 (GLOBE NEWSWIRE) — Comstock Mining Inc. (the “Company”) (NYSE American: LODE), an emerging leader in climate-smart, sustainable mineral development and production, will host a conference call on Thursday, March 11, 2021 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report its 2020 year end results and provide a business update. The Webcast will include a moderated Q&A, after the prepared remarks. Please join the event 5-10 minutes prior to the scheduled start time. The link and/or dial-in telephone numbers for the live Webcast are as follows:

Join Zoom Meeting

https://us02web.zoom.us/j/7437013377

Meeting ID: 743 701 3377

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Meeting ID: 743 701 3377

Find your local number: https://us02web.zoom.us/u/kGBcBXcOw

The recording of the Webcast will be available, within 24 hours of the call, on the Company website:

http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging leader in sustainable mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation, gold and silver extraction facilities. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

Friday, March 05, 2021

Comstock Mining (LODE)
Comstock Transforms Its Business Model to Accelerate Growth

Comstock Mining Inc is a mining company with a focus on gold and silver deposits in the Comstock and Silver City mining districts in Nevada. Its operations are divided into two segments, namely mining and real estate. Its mining projects include The Lucerne Resource area, the Dayton Resource area, the Spring Valley exploration target, the Northern Extension, Northern Targets and Occidental areas. The Real Estate segment involves land, real estate rental properties and a hotel, restaurant & bar provided by the Gold Hill Hotel located in Gold Hill, Nevada just south of Virginia City and the Daney Ranch, located just south of Silver City. The majority revenues are generated from the real estate segment.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Comstock invests in battery metal recycling. Comstock Mining recently secured the rights to a majority equity position in LiNiCo Corporation, a private lithium-ion battery recycling company that recently acquired a battery metal recycling facility from Aqua Metals, Inc. (NASDAQ: AQMS, Not Rated) located in the Tahoe Reno Industrial (TRI) Center in Nevada. LiNiCo’s battery recycling facility is near Tesla’s Gigafactory #1 in TRI Center.


Terms of the transaction.  Comstock will pay $4,500,000 in cash and 3,000,000 shares of its restricted common stock, representing up to $10,750,000 in consideration for up to a 64.02% ownership position in LiNiCo. Comstock’s investment represents diversification into critical electrification metals, including cobalt, lithium, nickel and silver thus complementing and expanding the company’s existing…

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Comstock Mining Announces Closing of Registered Direct Offering of Common Stock

 

Virginia City, NV (March 4, 2021) – Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today announced the closing of its previously announced $16 million registered direct offering representing 4 million shares at a price of $4.00 per common share. Net proceeds are approximately $15 million, after deducting underwriting commissions and offering expenses.

Noble Capital Markets, Inc. acted as placement agent for the offering.

“This equity placement enables the accelerated growth of all of our Climate Smart Mining initiatives, including global mercury remediation, lithium-ion battery recycling and our precious and critical metal portfolio said Corrado De Gasperis, Comstock’s Executive Chairman and CEO. “We have substantially enhanced our base of keen institutional investors and very much appreciate the coordination and execution by Noble Capital Markets in this transaction.”

The offering was made pursuant to an effective shelf registration statement (No. 333-229890) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). A final prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of the Company’s common stock, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging leader in sustainable mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation, gold and silver extraction facilities. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.

Thursday, March 04, 2021

Golden Predator Mining (NTGSF)(GPY:CA)
Is the Whole Greater than the Sum of its Parts?

Golden Predator Mining Corp is a Canada based exploration stage company engaged in the business of acquiring and exploring mineral properties. It owns properties primarily in Yukon, Canada. Some of the company’s projects located in Yukon are the 3 Aces, Sprogge, Reef, Brewery Creek, Marg, Sonora Gulch, Grew Creek, Upper Hyland and others.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Golden Predator to acquire Viva Gold. Golden Predator executed a definitive agreement to acquire Viva Gold Corp. (OTCQB, VAUCF, Not Rated) by way of a plan of arrangement in an all-stock transaction. Shareholders of Viva will receive 1.60 Class A common shares of Golden Predator for each common share of Viva Gold. Golden Predator has also proposed the distribution of 8.6 million shares of C2C Gold (CSE: CTOC) to Golden Predator shareholders as a return of capital prior to transaction close which is reflected in the exchange ratio. The combination is expected to close on or about May 3, 2021 and is contingent on approval by Viva shareholders, the TSX Venture Exchange and court approvals of the arrangement and return of capital. The companies will host an investor webinar on March 4, 2021 at 12:00 pm ET.


Transaction benefits.  Key transaction benefits include: 1) Greater size and diversification with consolidated ownership of the Tonopah Gold Project in Nevada and the Brewery Creek Mine in the Yukon, 2) a combined 1.8 million ounces of measured and indicated heap leachable gold resources, with an additional 0.8 million ounces of inferred gold resources, along with significant exploration potential …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Palladium One Expands 2021 Drill Programs to 27,000 Meters, Exploration Budget to $11.5 Million and Provides LK Project Update

 

March 3, 2021 – Toronto, Ontario – Planned exploration activities in 2021 have been expanded at both the palladium dominant Läntinen Koillismaa (“LK”) PGE-Ni-Cu project in Finland and the Tyko Nickel-Copper project in Ontario, Canada, said Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today.

Derrick Weyrauch, President and CEO of Palladium One said, “A cash balance of $19.7 allows for the acceleration of exploration activities and expansion of the initial 2021 exploration budget to $11.5 million. The expanded program in Finland lets us complete resource definition drilling at the Kaukua South and Haukiaho zones while also initiating drilling at potential eastern and western extensions of Kaukua South. At the Tyko project, our expanded program will be centered on new target development, infill drilling, and expansion of known high-grade nickel mineralization at the Smoke Lake zone.”

Expanded 2021 Program Details

• Initial budget $11.5 million.
• Planned drilling 27,000 meters (Finland – 23,000 meters, Canada – 4,000 meters)
• Planned drilling in Finland includes completion of the 17,500-meter Phase II drill program in preparation of an initial NI43-101 resource estimate at the Kaukua South zone (H1 2022), 2,000 meters of infill drilling at the Haukiaho zone in preparation for an initial NI43-101 resource estimate and 6,500 meters of reconnaissance drilling for potential strike length expansions at Kaukua South.
• Induced Polarization and Magnetic surveys on potential west and eastern strike extension of Kaukua South.
• Phase II metallurgical testing at LK project.
• Borehole Electromagnetic (“BHEM”), horizontal loop EM and regional airborne Magnetic and EM surveys at the Tyko project.
• Expected cash balance in excess $8 million at yearend, thereby providing sufficient funding for additional 2021 program expansions as may be appropriate, and program extension into 2022.

The Company is also planning to undertake regional exploration work during 2021 including soil surveys and mapping and may further modify its 2021 plans as results are received.

Exploration Update – Finland

In late February, assay results for holes LK21-034 through 036 from the Kaukua South zone were received but are currently under review due to assay results being above three standard deviations on QA/QC standards for nickel and copper analysis. These holes will be released once QA/QC issues have been resolved.

Additional drilling at Murtolampi continues to delineate significant at surface mineralization, indicating potential for a valuable satellite pit two kilometers northeast of the Kaukua deposit. Three holes were drilled on the Murtolampi zone (LK20-039 through 041) and returned at or near surface mineralization, including drill hole LK20-041 which returned 64.0 metres at 1.38 g/t Pd_Equivalent (“Pd_Eq.”), from 1.5 meters down hole and having a core interval of 6.0 m at 3.19 g/t Pd_Eq starting 54.5 meters down hole.

The core Murtolampi zone has now been delineated over 150 meters and is interpreted to extend over 600 meters (Figure 1 and 2). with intercepts of up to 78.5 metres at 2.0 g/t Pd_Eq. in hole LK20-026, (press release November 16, 2020).

Murtolampi remains open for expansion to the southwest. Induced Polarization and Magnetic surveys suggest that favourable peridotite hosts rocks continue toward hole LK20-024 which returned 3.0 m at 1.41 g/t Pd_Eq. within 21.0 m at 0.85 g/t Pd_Eq. (press release November 16, 2020) (Figure 2). Further drilling is planned to infill this area.

Holes LK21-037 and LK21-038 were reconnaissance holes drilled to test IP and/or magnetic anomalies away from known mineralized areas. Hole LK21-037 intersected mafic to intermediate volcanic rocks, and LK21-038 granophyric altered felsic volcanic rocks. Neither hole intersected the target mafic-ultramafic rocks of the Koillismaa Complex.

Figure 1. Greater Kaukua area plan map, showing current NI 43-101 Kaukua Deposit conceptual pit outline (dashed yellow), Kaukua South and Murtolampi IP chargeability anomalies, and Palladium One drill hole locations.

Figure 2. Murtolampi Long section looking northwest, showing IP Chargeability isoshells and Pd_Eq. grade, resumed Phase I drill holes labelled in red.

Table 1: Murtolampi and Reconnaissance Phase 2 Drill Results

* Reported widths are “drilled widths” not true widths.
** Orange shaded values previously released (see press release August 25, 2020, November 16, 2020)

*Palladium Equivalent

Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate.

QA/QC

The Phase I drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored indoors in a secure facility, in Taivalkoski, Finland. The drill core samples were transported by courier from the Company’s core handling facility in Taivalkoski, Finland, to ALS Global (“ALS”) laboratory in Outokumpu, Finland. ALS, is an accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43- 101.

About Palladium One

Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-coppernickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladiumdominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email:
info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release includes “forward-looking information” that is subject to a few assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding listing of the Company’s common shares on the TSXV are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements represent management’s best judgment based on information currently available. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions and general business conditions. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in the Company’s annual information form dated April 29, 2020 and filed under the Company’s profile on SEDAR at www.sedar.com. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.

Source: Palladium One Mining Inc.

 

 

Chakana Copper Extends Huancarama Mineralization 290m Below Surface – Soledad Project, Peru

 

Vancouver, B.C., March 3, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to release results for two additional drill holes from the Huancarama Breccia Complex, within the Soledad Project in Ancash, Peru (Fig. 1). One hole (SDH20-165) was designed to test beneath the exposed H4 breccia, and a second hole (SDH20-166) was designed to explore a deeper extent of the Huancarama East breccia discovery (see figure 2, and news releases dated January 12, 25, and February 9, 2021). Since initiating drilling at Huancarama in late October 2020, thirty HQ diamond core holes have been completed.

Mineralized intervals from two additional holes at Huancarama include:

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Both drill holes intercepted high-grade intervals (Figs. 2 and 3). Hole SDH20-165 was set up southeast of the H4 surface breccia and drilled to the northwest encountering a high-grade breccia interval of 0.27 g/t Au, 1.63% Cu, and 305.0 g/t Ag (4.41% Cu-eq) over 6.5m starting at 79m depth. This intercept is believed to be related to the H4 breccia exposed at surface and is interpreted to be a breccia dike, related to a larger, adjacent breccia body. Breccia dikes adjacent to larger breccia pipes are a common feature of the breccia pipes at Soledad.

Hole SDH20-166 was set up on the east side of the main Huancarama East breccia pipe and drilled steeply across the pipe in a west-northwest direction. This hole entered the main breccia body at 107.2m down hole (102m below surface) and exited the breccia pipe on the northwest side at 308.2m depth (290m below surface). A continuous mineralized interval of 175.6m with 0.42 g/t Au, 0.48% Cu, and 35.9 g/t Ag (1.06% Cu-eq) was encountered starting at 132.0m. Within this interval, a high-grade zone of 1.21 g/t Au, 1.35% Cu, and 95.6 g/t Ag (2.96% Cu-eq) over 29.0m starting at 132.0m depth was also encountered. Two additional breccia intercepts, also interpreted as breccia dikes related to the Huancarama East breccia pipe, were encountered at 402.7m and 483.4m depth, with the breccia pipe open at depth. Examples of mineralized drill core from these holes are shown in Figure 4.

David Kelley, President and CEO commented, “Hole SDH20-166 was successful in increasing the Huancarama East
breccia pipe to a depth of 290m below surface with mineralization open at depth. We had previously established
mineralization starting at surface and continuing to a depth of approximately 225m depth. As we have seen in the
other breccia pipe discoveries, these pipes are vertically extensive, and all are still open at depth. The high-grade
intercept of 29.0m with 1.21 g/t Au, 1.35% Cu, and 95.6 g/t Ag is particularly noteworthy as it provides additional
confirmation of the high-grade potential of this new discovery and is consistent with intercepts recently reported. It is
also encouraging to encounter high-grade mineralization in the first hole drilled around H4 on the western side of the complex. As we have seen in drilling other breccia pipes at Soledad, these high-grade intercepts are normally related
to adjacent larger mineralized breccia bodies. More drilling is warranted on the western side of Huancarama. and
drilling is ongoing at both Huancarama and Paloma with two drill rigs; we look forward to reporting additional results
soon.”

Huancarama Target Area and the Current Drill Program

The Huancarama Breccia Complex is located 300m south of and 400m above the deepest breccia intercept at Paloma. Within the complex there are five principal breccia bodies exposed at surface over approximately 200m horizontally (Fig. 5). There is a distinctive feature believed to be a collapse zone with dimensions of 50m by 30m. Unverified reports suggest that this may be due to small-scale mining. Two historic adits are in the complex, one trending north-northeast for 170m along the western side of H1 (Fig. 2), and a second shorter adit of 21m at H2. Surface sampling from the breccia bodies and channel sampling of the adits yielded strongly anomalous gold results (see news release dated November 19, 2019). In addition to several targets within the complex, numerous additional targets exist in the Huancarama and Paloma area.

Results reported here are part of the recently expanded 2021 drill program of 26,000m that is fully funded from the Company’s current treasury of $9.3M. Combined with the drilling in 2020 that started last August, a total of approximately 32,000m is anticipated through 2021. Of this, 6,634m have been reported in 34 drill holes. For the 26,000m of drilling planned in 2021, the Company will complete 16,000m of resource definition drilling, and 10,000m of exploration drilling testing new targets. This drill program and additional targets will be integral to the publication of a maiden resource in 2021.

Corporate Update

The Company announces that its second tranche of financing announced February 10, 2021 has been extended in order to facilitate the receipt of funds already committed over the next few days.

About Chakana Copper

Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website a www.chakanacopper.com.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD
(signed) “David Kelley”
David Kelley
President and CEO

For further information contact:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: jjobin@chakanacopper.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Figure 1 – View looking north showing breccia pipes and occurrences within the northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Outcropping breccia pipes shown in green are the focus of the current drill campaign. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.

Figure 2 – Map of the Huancarama Breccia Complex and drill hole lithology in holes completed to date. Red shape projected to surface represents tourmaline breccia pipe based on all holes drilled to date and lithology mapped in the underground tunnel. Black dotted outlines show surface expression of mapped breccias (H1-H5); white dashed line shows collapse zone. Location of section line for Figure 3 indicated.

Figure 3 – Section looking north-northeast highlighting the drill holes at Huancarama reported in this release. Light red 3D shape shows preliminary shape of breccia based on all drill holes to date and lithology mapped in the underground tunnel.

Figure 4 – Core photos from Huancarama: SDH20-165 (83.0m) tourmaline breccia with semi-massive chalcopyrite replacement; SDH20-166 (128.43m to 136.25m) contact between feldspar porphyry (earlier) and tourmaline breccia with sections of massive sulfide replacement by chalcopyrite and pyrite. Core diameter is 6.35cm (HQ) in all instances.

Figure 5 – Drone image looking northeast at the Huancarama Breccia Complex showing the five principal tourmaline breccia bodies exposed at surface (H1-H5), historic adit portal, and drill platforms. Note drill rig in center of image.

SOURCE: Chakana Copper