Category: Natural Resources

 

Palladium One Intersects 87.2m @ 1.43 g/t Palladium Equivalent (“Pd_Eq”) at the Murtolampi Zone of the Open Pit Läntinen Koillismaa PGE-Cu-Ni Project, Finland

August 25, 2020 – Vancouver, British Columbia – Palladium One Mining Inc. (TSX-V: PDM, FRA: 7N11, OTC: NKORF) (the “Company” or “Palladium One“) is pleased to report the first diamond drill hole results to test the Murtolampi zone, located 2.5 kilometers (“km”) north of the Kaukua Deposit, at the open pit Läntinen Koillismaa (“LK”) PGE-Cu-Ni Project (Figure 1). Starting at 5.8 meters downhole, Hole LK20-012 intersected 87.2m @ 1.43 g/t Pd_Eq* including 20.2 @ 2.26g/t Pd_Eq (Figure 2). Surface sampling by the Company, previously returned 4.9 g/t Pd_Eq (1.86 g/t Pd, 1.12 g/t Pt, 0.14 g/t Au, 0.78% Cu, & 0.13% Ni), see news release August 12th, 2019.

President and CEO, Derrick Weyrauch commented, “Murtolampi is a short distance north of the Kaukua Open Pit Deposit. We have now shown that both Murtolampi and Kaukua South have the potential to significantly add to the existing NI 43-101 open pit resource at Kaukua. Similar to Kaukua South, Murtolampi is associated with a strong Induced Polarization (“IP”) chargeability anomaly that is not fully tested. IP has proven to be an invaluable tool for outlining palladium-rich sulphide mineralization on the LK project, as evidenced by the success of Hole LK20-006 at Kaukua South. The current drill program will continue to test both the Murtolampi and the Kaukua South IP chargeability anomalies discovered earlier this year. We look forward to sharing further drill results with our shareholders in the near term.“

Highlights:

• 87.2m @ 1.43 g/t Pd_Eq, from 5.8m down hole in hole LK20-012, collared on the same drill pad as LK20-011.
  • Total platinum-group elements (“PGE”), (Pd + Pt + Au), 0.53 g/t
    • Including 20.2m @ 2.26 g/t Pd_Eq
      • Total PGE 1.05 g/t,
• 35.8m @ 1.66 g/t Pd_Eq, from 7.2m down hole in LK20-011, which was abandoned at 43m due to hole deviation.
  • Total PGE 0.63 g/t
    • Including 10.0m @ 2.94 g/t Pd_Eq, from 33.0 m to end of hole.
      • Total PGE 1.41 g/t
• Hole LK20-012 intersected a zone more than twice as thick as historical drilling at Murtolampi, by the Geologic Survey of Finland (“GTK”) in the 1990’s, demonstrating the potential for significantly more tonnage than previously thought.

The Murtolampi zone hosts a 750 long IP chargeability anomaly (see news release March 10, 2020). Six shallow GTK drill holes, conducted in the 1990s, all intersected mineralization and frequently ended in mineralization, but only tested the very outer edge of the newly discovered chargeability anomaly.

 

Figure 1. Greater Kaukua Area showing IP chargeability anomalies. Phase 1 drill hole locations showing in (black) and planned drill holes in (red).

 

Figure 2. Cross section showing hole LK20-012. Holes R368-371 are GTK holes drilled in the 1990’s

 

SEC Updates Old Mining Disclosure Requirements – A Win for Investors and US Mining Companies.

 

In October 2018, the U.S. Securities and Exchange Commission released new disclosure rules for mining company issuers, including royalty companies. The new disclosure requirements replace the SEC’s existing Industry Guide 7 which had not been updated since 1982. The new rules are intended to provide investors with a more comprehensive understanding of a registrant’s mining properties to help make more informed investment decisions and more closely align the Commission’s disclosure requirements and policies with industry and global practices and standards. Major mining jurisdictions outside the United States, including Canada and Australia, have mining disclosure standards based on the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) that differ in many respects from Industry Guide 7. SEC-registered mining companies must comply with the new rules for their first fiscal year beginning on or after January 1, 2021.

 

Out with the Old

Until the most recent changes go into effect, current SEC disclosure rules are governed by Regulation S-K and Industry Guide 7. The new rules rescind Industry Guide 7 as of January 1, 2021, and create a new Subpart 1300 of Regulation S-K, which contains the requirements for property disclosures by mining companies beginning January 1, 2021. Industry Guide 7 does not recognize mineral resources (i.e., inferred, indicated, and measured), only probable and proven reserves. Reserve requirements require ore to be economical to extract, requires an assessment of the likelihood of permitting, and economic analysis cannot use a commodity price greater than the three-year trailing average. Disclosure of mineral resources is limited to websites and press releases and are not allowed in SEC filings, including annual and quarterly reports, which places U.S. issuers at a disadvantage given that SEC reports do not contain information that is often reported in other jurisdictions such as Canada. There are other drawbacks as well, such as no requirement to publish technical reports or for a qualified person review of technical disclosures.

 

In with the New

SEC Chairman Jay Clayton stated that the new rules were intended to modernize the Commission’s mining property disclosure requirements by “improving the quality and reliability of information provided to investors and by harmonizing disclosures with international standards including removing the restriction on disclosure of mineral resource estimates that may have placed U.S. registrants and investors at a disadvantage.”

The new rules require companies to disclose mineral resources, mineral reserves, and material exploration results for their material mining operations in aggregate and for each material mining property, and to include supporting technical report summaries in the filings. The technical report summary must be filed as an exhibit when disclosing mineral resources or mineral reserves for the first time, or when there has been a material change in the mineral resources or mineral reserves from the last technical report summary filed for the property. Akin to Canadian NI 43-101 requirements and consistent with CRIRSCO standards, issuers’ disclosures of exploration results, mineral resources, or mineral reserves must be based on information prepared by an expert or qualified person. The SEC’s new mining disclosure rules provide flexibility in establishing the commodity price used in estimating resources, and inferred resources can be included in an initial assessment’s economic analysis. The technical report summary required to support the determination and disclosure of mineral resources is the “initial assessment.” A technical report required to support the determination and disclosure of mineral reserves in Commission filings may be either preliminary feasibility or a final feasibility study and include economic analysis, including a detailed discounted cash flow analysis.

 

Take-Away

One of the key differences is the ability to disclose mineral resources, instead of just proven and probable reserves, in SEC filings such as Form 10-K and quarterly reports, which aligns the new disclosure requirements more closely with reporting standards in other major mining jurisdictions. The ability to disclose mineral resources, in addition to proven and probable reserves, is important because it provides investors with a fuller picture and understanding of the company’s properties, enabling them to make more informed investment decisions. It is especially important for junior mining companies, whose assets may be comprised mostly of mineral resources, that need to raise capital to expand and upgrade their resources. It could also help investors to better evaluate the potential of each stage of a mining project. The new disclosure requirements could make the United States a more attractive choice for incorporation and make it easier for mining companies to raise capital in the United States.  

 

Sources:

SEC Adopts Rules to Modernize Property Disclosures Required for Mining Registrants, Press Release, Securities and Exchange Commission, October 31, 2018

Final Rule: Modernization of Property Disclosures for Mining Registrants, Securities and Exchange Commission, October 31, 2018.

SEC
Overhauls Disclosure Requirements for Mining Companies, Shearman & Sterling Perspectives, Shearman & Sterling, November 5, 2018.

SEC
Overhauls Mining Property Disclosure Regime, SEC Update, Hogan Lovells, January 16, 2019.

Understanding
SEC’s New Mining Disclosure Rules, Dorsey & Whitney LLP, Christopher Doerksen and Kimberley Anderson, February 26, 2019.

 

Suggested Reading

Are Mining Companies Facing a Shrinking Opportunity Set?

Do Analyst Price Targets Matter?

Metals & Mining Second Quarter 2020 Review and Outlook

 

Thursday, August 27, 2020

Comstock Mining (LODE)

Taking a Methodical Approach Toward Advancing Dayton and Spring Valley

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, Noble Capital Markets, Inc.

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

Planned airborne geophysical survey of Dayton and Spring Valley. Geotech Ltd of Aurora, Ontario, Canada will conduct an airborne geophysical survey of the Dayton resource area and Spring Valley exploration targets in mid-September and will provide Comstock with three dimensional interpreted results by mid-October. The results will enhance management’s understanding of the resource expansion potential at Dayton and Spring Valley. Management will finalize targets for an upcoming drill program based on results from the geophysical survey and a detailed structural interpretation of the Dayton resource.


Advancing to full feasibility study and mine plan. By year-end 2020, Comstock plans to publish a Securities and Exchange Commission (SEC)-compliant S-K 1300 technical report for the Dayton resource area and Spring Valley targets that will support a later preliminary economic assessment. The new technical report is expected to provide a new resource estimate and a phased drilling plan which is likely to …

Click to get the full report

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. 

 

Resource Nationalism Risk When Evaluating Mining Companies

 

Country risk is generally a key consideration for multinational corporations as they evaluate asset portfolios and where to invest. To most, country risk connotes the stability of political regimes and policies such as taxation. The problem for mining companies is that some of the mining locations with the highest resource potential are in countries that are perceived as high-risk.  While various firms provide rankings, the Fraser Institute has conducted an annual survey since 1997 of mining and exploration companies to assess how mineral potential and public policy factors such as regulation affect exploration investment.

 

Investment Attractiveness Index

In 2019, the survey was based on 263 responses that provided enough data to evaluate 76 jurisdictions. In 2018, enough responses were generated to evaluate 91 mining jurisdictions. The investment attractiveness index reflects a jurisdiction’s mineral potential and geologic attractiveness and public policy considerations such as taxation and regulation. The table below summarizes the top ten and bottom ten rankings in the 2019 survey.

 

 

In 2019, Western Australia ranked first based on investment attractiveness, moving up from second place in 2018. Finland moved into second place after ranking 17^th in 2018, while Nevada fell from first place in 2018 to third place in 2019. However, investors should keep in mind that investment attractiveness and the extent of the jurisdiction’s resource potential are not always perfectly aligned.

 

Mr. Warren Pearce, CEO of the Association of Mining and Exploration Companies noted that rankings have moved around substantially, reflecting a need for greater stability from government in the setting of policy and the treatment of the industry.

 

Take-Away

While the rankings do not tell the whole story, they are an important and informative aid not just for investors and mining company managements, but policymakers as well who are interested in making their jurisdictions more conducive to investment. Importantly, increasing environmental regulation is having an impact on the company’s investment decisions, which has partly contributed to Canada’s slip in the rankings despite stronger showings in past surveys.

 

Additionally, it is helpful to know which jurisdictions are moving up or down in the rankings and why. There are examples of countries, such as Ecuador, with significant mineral endowments but whose past policies discouraged investment and exploration. However, with a shift to more supportive policies, Ecuador’s ranking has improved in recent years, and those paying attention have been rewarded by gaining early entry to significant opportunities.

 

Suggested Reading:

U.S. Capitalism and Public Funds to Reduce Reliance on China Rare Earth Production

Metals & Mining: 2020-2Q Review and Outlook

Investors
Should Pay More Attention to ATM Offerings

 

Enjoy Premium Channelchek Content at No Cost

Each event in our popular Virtual Road Shows Series has a maximum capacity of 100 investors online. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.

 

Sources:

Fraser
Institute Annual Survey of Mining Companies 2019, Fraser Institute, Ashley Stedman, Jairo Yunis, and Elmira Aliakbari, February 25, 2020.

The Best Places to Mine Are Still in the Developed World, and that’s a Problem, Reuters, Clyde Russell, March 5, 2020.

WA
Leads the World as Fraser Institute Survey Sees Australia’s Fortunes Rise, Association of Mining and Exploration Companies, Press Release, February 26, 2020.

Picture: Abandoned Russian mining colony in Pyramiden.

Monday, August 24, 2020

Aurania Resources (AUIAF)(ARU:CA)

Near-Term Focus Turns to Copper

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

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

Scout drilling ready to commence at Tsenken copper target. Drilling is likely to begin the last week of August or the first week of September. Scout drilling will start at the Tsenken N2 target, followed by the Tsenken N3 and N1 targets. Following field mapping and soil sampling, scout drilling could also commence at Tsenken A, a fault-related breccia with high-grade copper and silver, and Tsenken B which contains sediment hosted copper and silver. We note that copper and silver have been confirmed over an area that extends 6 kilometers north from Tsenken A.



The search for gold continues.  While we expect the company to focus on copper and silver targets during the third quarter, the epithermal gold and silver targets are located nearer to where COVID cases are more prevalent. Scout drilling at epithermal gold and silver targets could follow additional …










Click to get the full report

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. 

 

Jaguar Mining Reports Updated Mineral Reserves and Mineral Resources for the Pilar Mine, Brazil as at May 31, 2020

Proven and Probable Mineral Reserve Ounces increased 40% year-over-year
(net of mined depletion) including a 12% increase in reserve grade to 4.0 g/t Au

Toronto, Canada, August 18, 2020 – Jaguar Mining Inc. (“Jaguar” or the “Company”) (TSX: JAG) is pleased to report updated Mineral Resources and Mineral Reserves (“MRMR”) estimates as at May 31, 2020 for the Pilar Gold Mine located in Minas Gerais, Brazil.

Highlights

• Pilar Proven and Probable Mineral Reserves (“2P”) as at May 31, 2020 were 240,000 ounces of gold contained within 1.86 Mt at a weighted average grade of 4.0 g/t Au, representing a 12% increase in reserve grade. This reflects an ounce increase of 58% year-over-year before mined depletion, and an increase in 2P Mineral Reserves of 40% year-over-year, net of January-May, 2020 mined depletion (21,000 ounces).

• Probable Mineral Reserves increased 99% to 133,000 ounces of gold at a weighted average grade of 4.11 g/t Au

• Proven Mineral Reserves remained constant at 106,000 ounces of gold at a weighted average grade of 3.86 g/t Au

Pilar Mineral Reserves and Resources are reported as at May 31, 2020 have been prepared in accordance with CIM definitions (2014) as in National Instrument 43-101 (“NI 43-101”) and are reported along with an updated Technical Report dated August 17, 2020 and will be filed shortly.

Vern Baker, CEO of Jaguar Mining stated; “While our Pilar mine has steadily increased production to record levels, the Pilar Geology team has spent the last 18 months focused on increasing our understanding of the complex structures that incorporate our orebodies. Through the utilization of good basic geologic efforts – mapping, sampling, drilling, and modeling – the team has once again replaced and added to our reserves and have demonstrated that the grade our orebodies can deliver is higher than prior reserves indicated. We continue to have a solid resource base under our Reserves, and the work has identified some significant opportunities to add ounces in structures higher up in our mine. Pilar has now added drilling capacity to drive reserves down plunge and to delineate new opportunities. With this additional effort, we look forward to expanding our resource base and reserve inventory and to grow our operation through successful drilling and solid mining practices.

Pilar Gold Mine Mineral Reserves and Mineral Resources summary as at May 31, 2020 compared to December 31, 2019:

Table 1

 

Table 2

 

Table 3

 

For the May 31, 2020, Mineral Reserve and Mineral Resource estimates, the Company prepared an updated geological and block model and a supporting Technical Report under the supervision of RPA´s Qualified Persons Mr. Sepp and Mr. Pressacco.

• For comparison purposes, Gold Price and Cut-Off Grade assumptions used in this press release are the same as those previously reported in Jaguar´s 43-101 Technical Report on the Caeté Mining Complex published May 28, 2019 (SEDAR) effective date 5th, April 2019. There is a potential for increases in assumptions due to higher gold prices and/or more favorable BRL exchange rates.

• Infill Drilling and Secondary Development has successfully replaced year to date (January-May) 2020 mined depletion of some 21,000 ounces Au and added significantly to the Mineral Reserves which are now equivalent to more than four years of production at current production rates.

• Total 2P Mineral Reserves are 240,000 ounces of gold (1,866 Mt at a weighted average grade of 4.00 g/t Au) (net of 2020 year to date depletion (January-May) of 21,000 ounces, which are 40% higher compared to 2P Reserves of 173,000 ounces at a weighted grade of 3.56 g/t Au as at December 31, 2019.

• Total Probable Mineral Reserves increased 99% to 133,000 ounces of gold, at a weighted average grade of 4.11 g/t Au which reflects a 17% increase in weighted average grade year on year.

• Total Proven Mineral Reserves remained constant at 106,000 ounces of gold, at an increased weighted average grade of 3.86 g/t Au which reflects an 8% increase in weighted average grade year on year.

• The database used to prepare the estimates, with a cut-off date of April 31, 2020, comprises 1,941 drill holes and 22,716 samples. The estimate was generated from a block model constrained by three-dimensional (3D) wireframe models. Capping values are applied as appropriate for each orebody. The wireframe models of the mineralization, block model, and excavated material for Pilar were constructed by Jaguar and reviewed by RPA. Separate wireframes were built for each mineralized lens for each orebody and were used to constrain the grade estimates into the block model.

• The Mineral Resources and Mineral Reserves for May 31, 2020 Technical Report will be published on SEDAR by the end of August 2020.

Table 4.

 

Table 5.

 

• Measured and Indicated Mineral Resources at Pilar at a cut-off grade of 1.46 g/t Au comprise 4.01 Mt at a weighted average grade of 4.34 g/t Au – containing 561,000 ounces of gold.

• This reflects a decrease of 9% in Measured and Indicated Category gold ounces year-over-year but with 5% higher grades.

• The Inferred Mineral Resource at Pilar is 1.254 Mt at an average grade of 4.52 g/t Au which reflects a grade increase of 25%, containing 182,000 oz. of gold which reflects an overall 13% increase in contained ounces in this category.

 

 

 

Qualified Persons
The scientific and technical information contained in this press release has been reviewed and approved (i) in respect of the estimated Mineral Reserves and the Life of Mine Plan (LOM) by Jeff Sepp, P.Eng., of Roscoe Postle Associates Inc. (“RPA”), and (ii) in respect of the estimated Mineral Resources by Reno Pressacco, P.Geo., of RPA. RPA is an independent mining consultant and Mr. Sepp and Mr. Pressacco are each Qualified Persons within the definition of NI 43-101.

Quality Control
All sampling and samples utilized at Jaguar for Mineral Resource and or Mineral Reserves estimation uses a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.

HQ, NQ, and BQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration. Rock channel sampling of the underground development follows the same standard intervals as for the drill core.

Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is stored in a secure location. The drill core and rock chip samples for resource-reserve conversion and grade control samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the company´s Caeté Complex, Caeté, Minas Gerais. Growth exploration samples are sent to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil. The analysis of these exploration samples is conducted at ALS Global’s respective facilities (fire assay is conducted by ALS Global in Lima, Peru, and multi-elementary analysis is conducted by ALS Global in Vancouver, Canada). ALS has accreditation in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.

For a complete description of Jaguar’s sample preparation, analytical methods and QA/QC procedures, please refer to “Technical Report on the Roça Grande and Pilar Operations, Minas Gerais State, Brazil“, a copy of which is available on the Company’s SEDAR profile at www.sedar.com.

Mineralized material for each orebody was classified into the Measured, Indicated, or Inferred Mineral Resource categories based on the search ellipse ranges obtained from the variography study, the observed continuity of the mineralization, the drill hole and channel sample density, and previous production experience from these orebodies.

The Mineral Resources are inclusive of Mineral Reserves. For those portions of the Mineral Resources that comprise the Mineral Reserve, stope design wireframes were used to constrain the Mineral Resource reports.

The Iron Quadrangle
The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar Mining is the second largest operating gold company tenement holder in the Iron Quadrangle, holding just over 25,000 hectares.

About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes, and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares. The Company’s principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex. The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Additional information is available on the Company’s website at www.jaguarmining.com.

For further information, please contact:

Forward-Looking Statements

Certain statements in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements and information are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking information set forth in this news release is qualified by the cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information contained in forward-looking statements can be identified by the use of words such as “are expected,” “is forecast,” “is targeted,” “approximately,” “plans,” “anticipates,” “projects,” “continue,” “estimate,” “believe,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” or “will” be taken, occur or be achieved. All statements, other than statements of historical fact, may be considered to be or include forward-looking information. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. This news release contains forward-looking information regarding potential and, among other things, expected future mineral resources, potential mineral production opportunities, geological and mineral exploration statistics, ore grades, current and expected future assay results, and definition/delineation/exploration drilling at the Pilar Gold Mine and the Turmalina Gold Mine in Brazil, as well as forward-looking information regarding costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, capital requirements, project studies, mine life extensions, and continuous improvement initiatives. The Company has made numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated timeline and for the development of the drill program at the Pilar Gold Mine (and its expanded exploration footprint) and the Turmalina Gold Mine; its mineral properties; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained and renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general business and economic conditions. Forward-looking information involves a number of known and unknown risks and uncertainties, including among others: the risk of Jaguar not meeting its plans regarding its operations and financial performance; uncertainties with respect to the price of gold, labour disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, development and production industry, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company and described herein. In addition, there are risks and hazards associated with the business of gold exploration, development, mining and production, including without limitation environmental hazards, tailings dam failures, industrial accidents and workplace safety problems, unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Tuesday, August 18, 2020

Comstock Mining (LODE)

Laying the Groundwork for Growing Shareholder Value

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, Noble Capital Markets, Inc.

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

LODE swings to second quarter profitability. Comstock Mining reported second quarter net income of $0.05 per share compared with losses of $(0.13) and $(0.01) per share during the prior year period and prior quarter. The variance to our estimate of $0.01 was largely due to other income of $2.2 million, including unrealized gains associated with an increase in value of the company’s holdings of Tonogold Resources preferred and common shares. Operating expenses declined 15.9% versus the prior year period and were flat sequentially.


Extinguishment of senior secured debt. Comstock extinguished the remaining balance of its senior secured debenture with proceeds from the issuance of unsecured promissory notes and recent payments received from Tonogold Resources associated with the purchase of interests in the Lucerne property. The new promissory notes offer flexible terms and are expected to be paid down with proceeds from the expected …

Click to get the full report

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 Extinguishes Senior Secured Debenture Via Favorable Refinancing

Virginia City, NV (August 17, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) filed its Quarterly Report on Form 10-Q last week and announced selected strategic and financial results for the fiscal quarter ended June 30, 2020, including the arrival and assembly of our first mercury remediation system.

 

Recent 2020 Selected Strategic Highlights
• Extinguished the current Senior Secured Debenture from a combination of $0.9 million in accelerated cash proceeds from Tonogold and new, unsecured promissory notes, with favorable, extended terms;
• Investments in Tonogold Resources Inc. (“Tonogold”) valued at $10.4 million at June 30, 2020, a $1.6 million increase in fair market value driving positive net income for the three months ended June 30, 2020;
• Investment in Mercury Clean Up LLC (“MCU”) increased to $1.75 million (in cash and stock) at June 30, 2020, with on-site installation of the Comstock mercury remediation system underway (pictured below);
• Extended agreements for the sale of Comstock’s two non-mining properties in Silver Springs, NV, for total expected proceeds of $10.1 million, with the closings expected this quarter; and
• Consummated the April acquisition of 25% of PELEN LLC, owner of the historic Sutro Tunnel Company.

 

Second Quarter 2020 Selected Financial Highlights
• Total operating costs were $1.3 million in Q2 2020, a $0.2 million or a 15.9% improvement over Q2 2019;
• Interest expense was $0.1 million in Q2 2020, a $0.1 million or a 49.6% improvement over Q2 2019;
• Other income, net was $2.2 million, primarily driven by gains of $1.6 million on equity investments in Tonogold and $0.4 million on the contingent forward assets receivable still committed to us by Tonogold;
• Net income was $1.3 million, or $0.05 per share for three-months ended June 30, 2020, as compared to a prior period net loss of $2.1 million, or ($0.13) loss per share, driven by investment gains and lower costs;
• Net income was $1.0 million, or $0.04 per share for six-months ended June 30, 2020, as compared to a prior period net loss of $3.9 million, or ($0.24) loss per share, driven by investment gains and lower costs; and
• Cash and cash equivalents at June 30, 2020, were $1.0 million.

Mr. Corrado DeGasperis, Executive Chairman and CEO stated, “We have grown and strengthened our balance sheet, extinguished our secured debt, and deployed and installed the first MCU – Comstock system as we prepare for material testing within the boundaries of the Carson River Mercury Superfund Site (“CRMSS”). We have also reserved shipping containers as we prepare to ship our first international unit to the Philippines.”

The entire press release can be read here:
https://www.comstockmining.com/latest-developments/comstock-mining-announces-full-second-quarter-2020-results-increased-strategic-investment-values-drives-positive-net-income-deploying-mercury-systems/

Contact information for Comstock Mining Inc.:

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

1200 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

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

Monday, August 17, 2020

Sierra Metals (SMTS)(SMT:CA)

Better-Than-Expected Second Quarter; Increasing 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, Noble Capital Markets, Inc.

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

Better-than-expected second quarter earnings. Sierra Metals reported adjusted earnings per share of $0.01 compared with $0.01 during the prior year period and our estimate of $(0.02). The variance to our estimate was largely due to lower-than-expected operating costs. Adjusted EBITDA amounted to $12.6 million which was even with the prior year period despite lower production due to COVID-19 related work restrictions. Due in part to low capital expenditures amounting to $3.2 million, Sierra generated free cash flow of $4.9 million. Despite a challenging operating environment due to COVID-19, the company proved its resilience and performed well operationally and financially.

Updating estimates. We are increasing our 2020 EPS and EBITDA estimates to $0.13 and $82.0 million from $0.07 and $71.6 million, respectively. Additionally, we have increased our 2021 EPS and EBITDA estimates to …









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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. 

Keith Barron’s Straight Talk on Mining
Module 1 – Epithermal Gold-Silver Deposits

 

At the request of Aurania shareholders, Dr. Keith Barron, Chairman and CEO, created an educational video series about epithermal gold-silver deposits on his website Straight Talk on Mining. There are eight modules in this series which will be released individually in the coming weeks.

We recommend that viewers watch the introduction video before viewing this module which is Module 1.

Aurania Resources Ltd.
36 Toronto St, Suite 1050
Toronto, ON, Canada, M5C 2C5

Phone: (416) 367-3200
Email: ir@aurania.com

Sierra Metals Reports Solid Consolidated Financial Results For The Second Quarter Of 2020, Despite Covid-19 Interruptions

Issuing Revised Production Guidance

Conference Call August 14, 2020 At 10:30 AM (EDT) Registration Link Below

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(All $ figures reported in USD)

• Adjusted EBITDA of $12.6 million in Q2 2020 in-line with Q2 2019, as lower revenues due to COVID government mandated curtailments were partially offset by reduced operating costs
• Operating cash flows before movements in working capital of $13.2 million in Q2 2020 increased from $12.8 million in Q2 2019
• Revenue from metals payable of $41.9 million in Q2 2020 decreased from $50.7 million in Q2 2019 as the COVID-19 pandemic impacted quarterly production and metal prices
• Q2 2020 consolidated copper production of 9.7 million pounds was consistent with Q2 2019; consolidated silver production of 0.6 million ounces, consolidated zinc production of 13.7 million pounds and consolidated lead production of 6.4 million pounds declined by 32%, 17% and 21% respectively; consolidated gold production of 2,762 ounces increased 9% as compared to Q2 2019
• Quarterly silver production declined as Cusi remained under care and maintenance throughout the quarter. The Company announced restarting of Cusi operations on July 28, 2020
• Revised production guidance issued which anticipates that 2020 copper equivalent production will now range between 110.1 to 122.3 million pounds; or silver equivalent production will range between 17.4 to 19.4 million ounces; or zinc equivalent production will range between 286.8 to 318.7 million pounds.
• The Board of Directors has approved studies to be completed for potential expansions of all mines, as per ongoing Company strategy
• $40.7 million of cash and cash equivalents as at June 30, 2020
• $49.4 million of working capital as at June 30, 2020
• Net Debt of $58.7 million as at June 30, 2020
• Shareholder conference call to be held Friday, August 14, 2020, at 10:30 AM (EDT) – Preregistration required please see link below

(1) Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q2 2019 were calculated using the following realized prices: $14.88/oz Ag, $2.75/lb Cu, $1.20/lb Zn, $0.85/lb Pb, $1,323/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2020 were calculated using the following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2019 were calculated using the following realized prices: $15.23/oz Ag, $2.80/lb Cu, $/1.22lb Zn, $0.90/lb Pb, $1,314/oz Au.

 

Toronto, ON – August 13, 2020 – Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported solid consolidated financial results despite the effects of the COVID-19 pandemic, including a strong performance from the Bolivar Mine.  Results included revenue of $41.9 million and adjusted EBITDA of $12.6 million on throughput of 511,485 tonnes and metal production of 22.7 million copper equivalent pounds, or 3.3 million silver equivalent ounces, or 61.4 million zinc equivalent pounds for the three month period ended June 30, 2020.

 

Revenues were negatively impacted by the COVID-19 pandemic on production and metal prices during the quarter. Average realized prices in Q2 2020 for copper, zinc and lead were 13%, 26% and 11% lower, respectively as compared to realized prices in Q2 2019. Silver and gold prices were 11% and 30% higher than their respective average realized prices in Q2 2019. Adjusted EBITDA generated during Q2 2020 was in-line with Q2 2019 however, as lower operating costs offset lower revenues.

 

Yauricocha’s cash costs declined 22% quarter over quarter due to lower operating costs per tonne.  AISC per copper equivalent pound decreased 9% as lower cash costs were partially offset by higher treatment and refining charges and lower copper equivalent pounds sold as compared to Q2 2019. The Yauricocha Mine generated positive EBITDA during the quarter, despite the 20% lower throughput as compared to the same quarter of 2019. The mine resumed normal operations on June 5, 2020, as the Peruvian Government included mining and related activities in phase two of its economic recovery plan. The management team believes that the mine has operational flexibility to recover part of the production lost during the quarter.

 

Cash costs at Bolivar for Q2 2020 dropped 32% as compared to the same quarter of 2019, as the mine operated at lower operating costs and achieved mill throughput that was just 5% lower than Q2 2019, despite the impact of the COVID-19 related shutdowns in Mexico. The increase in revenues from the Bolivar Mine more than compensated for the loss of revenues from the Cusi Mine that remained closed throughout the quarter.  Bolivar generated $6.6 million in EBITDA during the quarter. The mine resumed normal operations on June 1, 2020, as the Mexican Government deemed mining an essential activity effective that date.

 

Cusi remained in care and maintenance throughout Q2 2020 due to its proximity to urban communities and hence there was no production during the quarter. Cusi generated EBITDA of $0.2 million on revenue of $1.7 million during the quarter resulting from the sale of silver concentrate remaining at the end of Q1 2020. Cusi production recommenced on July 28, 2020 and a process has been implemented at the mine to mitigate the risk of COVID-19 to employees at the site through a testing and quarantine methodology. During the period of care and maintenance, the management team has had the time to complete an optimised view of the entire mine operation. Mine development is ongoing at Cusi to provide access to higher-grade economic ore and feed ore to the mill at the targeted rate of 1,200 tpd. Production will include ore from Santa Rosa de Lima zone, the Promontorio zone, as well as from a series of east-west vein systems including the new high-grade zone, Northeast-Southwest system of Epithermal Veins (“NSEV”) announced on June 18, 2020 that cross the Cusi fault near the Santa Rosa de Lima zone.

 

The Company expects to continue development and infrastructure improvements at Bolivar with the aim to push throughput close to 5,000 tonnes per day (“tpd”) before end of the year. At Cusi, mine development will continue to provide access to the higher-grade economic ore and feed ore to the mill at the targeted rate of 1,200 tpd. Additional drilling is also planned to better understand the extension of the NSEV zone at depth and to the Northeast. Further, the Company intends to commence studies on the potential expansion of Cusi and begin work on a new tailing dam near the Mal Paso mill, providing for deposition capacity for the foreseeable future.

 

“The Company was able to maintain essential activities while fully complying with the government protocols during the state of emergency,” stated Luis Marchese, CEO of Sierra Metals. “We achieved remarkable results and reported solid revenue, cashflow and positive EBITDA in the second quarter despite the negative implications of the COVID-19 related shutdowns. We also achieved lower costs at the Bolivar and Cusi mines which are attributable to higher operating efficiency and the prudent management of capital expenditures to protect the balance sheet, while also realizing improved head grades and more favorable foreign exchange rates. A good portion of the credit for these results is owed to the employees at Yauricocha and Bolivar who were able to maintain a high level of productivity with a reduced workforce. Also, to the management team, who led the Company through what we consider its biggest challenge in its history, while all operations were curtailed or placed into care and maintenance during the quarter as metal prices dropped sharply during the crisis. We are currently running our three operations at high operating rates.  However, we remain cognizant that COVID-19 cases remain high in Peru and Mexico. As such, we continue proceeding cautiously, adhering to strict health protocols to protect our employees and the communities in which we operate, as well as to mitigate the potential for further work stoppages.”

 

He continued, “looking ahead to the second half of the year, due to our operating flexibility, we have the potential to recover some of the lost production experienced during the shutdowns at Yauricocha. We are also excited to see Bolivar continue in its strides towards the 5,000 tpd throughput level.  Cusi having restarted earlier than anticipated is on track and performing well on its way to the 1,200 tpd throughput level. Metals prices have strengthened at the start of the third quarter especially for copper and precious metals. We are optimistic that with improved operating efficiencies and potential higher metal prices we will see a stronger second half for 2020.  Furthermore, we will continue seeking the required permits to increase Yauricocha’s throughput to 3,600 tonnes per day for next year.”

 

He concluded, “Sierra Metals’ balance sheet, working capital and cash position remain strong. Considering that we remain in a vulnerable environment due to the COVID-19 pandemic, we are optimistic that further cash flow and liquidity improvements should be realized in the second half of 2020, due to higher production rates and improved metal prices.  This would allow the Company to complete more of the deferred required capital expenditures and potential returns of capital which had been originally planned for this year. Management remains committed to the prudent and sustainable growth plan for the Company and more importantly to improving the per share value benefiting all shareholders now and, in the years to come.”

 

The following table displays selected financial and operational information for the three and six months ended June 30, 2020:

 

Q2 2020 Financial Highlights

• Revenue from metals payable of $41.9 million in Q2 2020 decreased by 17% from $50.7 million in Q2 2019. Revenues declined due to the COVID-19 pandemic, which impacted mine production and metal prices during the quarter. Average realized prices in Q2 2020 for copper, zinc and lead were 13%, 26% and 11% lower respectively as compared to realized prices in Q2 2019. Silver and gold prices were 11% and 30% higher than their respective average realized prices in Q2 2019;
• Yauricocha’s cost of sales per copper equivalent payable pound was $0.94 (Q2 2019 – $1.27), cash cost per copper equivalent payable pound was $0.91 (Q2 2019 – $1.16), and AISC per copper equivalent payable pound of $1.80 (Q2 2019 – $1.98). The decrease in the AISC per copper equivalent payable pound for Q2 2020 compared to Q2 2019 was due to lower cash costs and lower sustaining costs, which were partially offset by increase in treatment and refining charges and lower number of equivalent copper pounds sold;
• Bolivar’s cost of sales per copper equivalent payable pound was $1.01 (Q2 2019 – $1.77), cash cost per copper equivalent payable pound was $1.02 (Q2 2019 – $1.51), and AISC per copper equivalent payable pound was $1.60 (Q2 2019 – $2.55) for Q2 2020. The decrease in the AISC per copper equivalent payable pound was largely due to lower cash costs, lower sustaining costs and higher copper equivalent pounds sold as compared to Q2 2019;
• Cusi’s cost of sales per silver equivalent payable ounce was $16.33 (Q2 2019 – $10.99), cash cost per silver equivalent payable ounce was $18.66 (Q2 2019 – $16.49), and AISC per silver equivalent payable ounce was $26.25 (Q2 2019 – $25.67) for Q2 2020. AISC per silver equivalent payable ounce increased largely due to lower amount of equivalent silver sold as compared to Q2 2019, as concentrate inventory at the end of Q1 2020 was sold during Q2 2020. There was no production at Cusi throughout the quarter;
• Adjusted EBITDA(1) of $12.6 million for Q2 2020 was in-line with Q2 2019;
• Net income (loss) attributable to shareholders for Q2 2020 was $0.2 million (Q2 2019: $(0.2) million) or $0.00 per share (basic and diluted) (Q2 2019: $(0.00));
• Adjusted net income attributable to shareholders (1) of $1.3 million, or $0.01 per share, for Q2 2020 compared to the adjusted net income of $1.6 million, or $0.01 per share for Q2 2019;
• A large component of the net income for every period is the non-cash depletion charge in Peru, which was $1.6 million for Q2 2020 (Q2 2019: $2.4 million). The non-cash depletion charge is based on the aggregate fair value of the Yauricocha mineral property at the date of acquisition of Corona of $371.0 million amortized over the total proven and probable reserves of the mine;
• Cash flow generated from operations before movements in working capital of $13.2 million for Q2 2020 increased compared to $12.8 million in Q2 2019. The increase in operating cash flow is mainly the result of COVID-19 related reductions in general and administrative costs (“G&A”), as gross margins remained in-line with Q2 2019; and
• Cash and cash equivalents of $40.7 million and working capital of $49.4 million as at June 30, 2020 compared to $43.0 million and $49.9 million, respectively, at the end of 2019. Cash and cash equivalents decreased due to $14.5 million of capital expenditures and interest payment of $2.3 million were partially offset by $14.7 million of operating cash flows.

 (1) This is a non-IFRS performance measure, see non-IFRS Performance Measures section of this MD&A.

Project Development

• Mine development at Bolívar during Q2 2020 totaled 1,296 meters. To offset impact of lower capacities, affected by COVID-19, major portion of this development (1,282 meters) was to prepare stopes for mine production. The balance of 14 meters were developed at the deepening of ramps and service ramps to be used for ventilation and pumping in El Gallo Inferior and Bolivar West orebody; and
• During Q2 2020, at the Cusi property, mine development totaled 146.0 meters to stope preparation in various zones within the mine;

Exploration Update

Peru:

In the Q2 2020, there was no surface exploration as a result of the Covid-19 emergency declaration. Underground exploration is planned to resume in September and surface exploration in October.

Mexico:

Bolivar

• Total 1,344 meters were drilled in Q2 2020. 558 meters of surface exploration included 9 meters at Bolivar West and 549 meters at Porphyry System. Additionally, 786 meters were drilled inside the mine as infill drilling.

Cusi

• During Q2 2020 the Company drilled 639.80 meters of surface diamond drilling to verify the settlement of the subsidence zone at the Promontorio area and to explore the extension of the NE veins system to the Northeast.

Guidance

The Company has issued revised 2020 production guidance and anticipates that 2020 copper equivalent production will range between 110.1 to 122.3 million pounds; or silver equivalent production will range between 17.4 to 19.4 million ounces; or zinc equivalent production will range between 286.8 to 318.7 million pounds. The decrease from the original 2020 guidance issued (see press release dated January 23, 2020) is related to work stoppages during the government mandated shutdowns due to the COVID-19 pandemic in Q2 2020. Please note that revised guidance assumes no further shutdowns or work stoppages as a result of the COVID-19 pandemic and is based solely on what management expects the Company’s operations can produce this year. 

A table summarizing 2020 production guidance has been provided below:

Approval to proceed with Expansion Studies

As per the ongoing strategy of the Company, the Board of Directors has approved a proposal by management for expenditure to study further expansions at all three mines beyond the current capacity ramp-up levels. These studies will incorporate the latest NI 43-101 mineral resource updates, including the significant mineral resource increases at Bolivar reported in December 2019 and in March 2020. We believe the Company has excellent land packages with tremendous resource growth potential to support further organic growth at all mines.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, August 14, 2020, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended June 30, 2020.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/2393587/AB458B2015EA9FEC98705CC780F49912

The webcast, along with presentation slides, will be archived for 180 days at www.sierrametals.com.

Via phone:

To pre-register for this conference call, please use the registration link provided below. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you have trouble registering, and need extra assistance please dial: +1 (888) 869-1189 or +1 (706) 643-5902.

Registration is open throughout the live call, however, to ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

 

Conference Call Registration Link:

http://www.directeventreg.com/registration/event/3580728

 

Qualified Persons

All technical production data contained in this news release has been reviewed and approved by:

Americo Zuzunaga, FAusIMM (CP Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

 

Augusto Chung, FAusIMM (CP Metallurgist) and Vice President Special Projects and Metallurgy and a chartered professional qualifying as a Competent Person on metallurgical processes.

 

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

 

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

 

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact any of the following at +1 416 366 7777 or by email at info@sierrametals.com:

 

Mike McAllister, CPIR V.P., Investor Relations

Ed Guimaraes CFO

Luis Marchese CEO

 

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc  | Instagram:
sierrametals | LinkedIn: SierraMetals

 

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

 

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 30, 2020 in respect of the year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

 

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

 

 

Comstock Mining Extinguishes Senior Secured Debenture Via Favorable Refinancing

 

Virginia City, NV (August 12, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced today it completely paid off, yesterday, its remaining $4 million Senior Secured Debenture from a combination of recent cash proceeds from Tonogold and new, unsecured promissory notes, with favorable terms.

 

The Company entered into three promissory notes (the “Promissory Notes”) that refinanced its existing, secured indebtedness, on more favorable terms, through a known group of existing LODE investors. The Promissory Notes are unsecured and have an aggregate principal amount of $4,475,000 (net of an original discount of $255,000), and a maturity date of September 20, 2021, with no prepayment penalties, and a portion of which that can be extended for an additional two years.  The Promissory Notes were designed to mirror the amount still receivable from Tonogold, including the maturity date of September 20, 2021, and the 12% interest rate payable monthly.

 

The Promissory Notes also permit other indebtedness but contain covenants that prohibit the Company from incurring debt that matures prior to  September 20, 2021, or that is senior in right of their payment.  The Company must also prepay the Promissory Notes, without penalty, with at least 80% of the net cash proceeds received by the Company with respect to the sale of the Company’s non-mining assets in Silver Springs, NV.

 

The Company recently received $0.9 million in two payments from Tonogold, one in late June and one in early August, that was otherwise maturing on October 15, 2020.  These payments reduced the remaining amounts due to Comstock from Tonogold to $4,475,000, and when coupled with the $4,220,000 of net proceeds from the Promissory Notes, enabled the full, early extinguishment of the Senior Secured Debenture due  later this year.

 

Mr. Corrado DeGasperis, Executive Chairman and CEO stated, “This represents a major milestone by eliminating the overhang created by the Senior Secured Debenture, releasing all of our assets from restrictive security encumbrances and covenants and positions us to fully consummate the 100% sale of Lucerne, by allowing the perfecting of the security interest on that now unsecured asset. We are also focused on closing the sale of our $10 million plus non-mining assets in Silver Springs, NV, and funding our growth with more flexibility and speed.”

 

Mr. George Melas, Concorde and Bean Trustee said,  “We are pleased to provide flexible financing to Comstock Mining Inc. that enables and facilitates the company’s meaningful, precious-metal based growth initiatives and accelerates the creation and delivery of sustained value for all of its stakeholders.”

 

The Company is also permitted to defer payment of up to 34% of the principal payment due on the maturity date for an additional two years (i.e., until September 20, 2023), solely at its option, in exchange for two year warrants to purchase the Company’s stock based on a 10% discount to a then VWAP of the Company’s common stock.

 

Mr. DeGasperis concluded, “The debt reductions, maturity extensions and releases of restrictive security and covenants, coupled with the ability to accelerate and consummate the Lucerne sale, positions us to focus on exploration, development, mercury remediation and the sale of the remaining non-mining assets, all of which unlock and/or create sustained value for our shareholders.  We are pleased to conclude these transactions and advancing growth.”

 

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining that is currently commercializing environment-enhancing, precious-metal-based technologies, products and processes for precious metal recovery. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The Company’s goal is to grow per-share value by commercializing environment-enhancing, precious-metal-based products and processes that generate predictable cash flow (throughput) and increase the long-term enterprise value of our northern Nevada based platform.

 

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 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; the possible redemption of debentures 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.

 

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

Contact information for Comstock Mining Inc.:
1200 American Flat Rd
PO Box 1118
Virginia City, NV  89440
http://www.comstockmining.com

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

Wednesday, August 12, 2020

Ely Gold Royalties (ELYGF)(ELY:CA)

Expands Nevada Portfolio with Acquisition of Three Royalties

As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.

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.

Ely adds three Nevada royalties. Ely Gold Royalties executed a purchase agreement for a package of three net smelter returns (NSR) royalties on properties in Nevada from a third party for US$350 thousand. The royalties include a 0.33% NSR on the Sleeper Gold Mine Project owned by Paramount Gold Nevada Corp., a 1.0% NSR on 38 mining claims associated with Coeur Mining’s Lincoln Hill and Gold Ridge properties and a 1.0% NSR on 40 acres of ground associated with Waterton Global’s Mt. Hamilton project. The transaction is expected to close on or around September 15, 2020.


Outlook for precious metals prices remains favorable. On August 11, gold and silver futures fell 5.5% and 14.6%, respectively, following gains of 12.8% and 57.0% since the end of the second quarter through August 10. A stronger U.S. dollar, higher Treasury yields and factors, such as potential remedies associated with COVID-19, favoring risk assets were all cited as causes for …








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*Analyst certification and important disclosures included in the full report. 
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