Category: Natural Resources

Thursday, September 10, 2020

Comstock Mining (LODE)

Pelen Purchase Option Could Enhance LODE’s Growing Royalty Portfolio

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.

Lease extension and purchase option. LODE executed an assignable lease agreement with the Sutro Tunnel Company that includes patented mining claims and exploration rights in the Gold Hill and Virginia City Mining District in Storey County, NV and includes properties that are part of the Lucerne mining properties and a portion of the mineral exploration lease with Tonogold Resources (OTC: TNGL, Not Rated). The lease has an initial term of 5 years but is renewable for 15 years or longer and includes a 4% net smelter royalty payable to Sutro, along with minimum monthly payments. Recall that Sutro is owned by Pelen LLC, of which Comstock owns 25% and now has a three-year option to acquire the remaining 75% interest for $3.75 million if exercised within one year, with an increasing purchase price in the second and third years, with 50% of the option payments cumulatively applied to the purchase price. Assuming LODE exercises its purchase option, which we think is likely, it would be entitled to a 5.5% net smelter royalty on the associated properties.


Tonogold commences initial drilling program.  Tonogold’s initial drilling program commenced this month and will test the 3-kilometer strike length of the main Comstock Lode. The program will have a two-tier focus, including drilling above and below the Sutro Tunnel and targeting areas where historic records indicate the potential for high-grade intercepts. The initial program is expected to take …

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 Extends Mineral Leases; Secures Strategic Purchase Option

 

Virginia City, NV (September 9, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) and Comstock Northern Exploration, LLC (“Comstock”), a wholly-owned subsidiary of the Company, entered into a Mineral Exploration and Mining Lease Agreement (the “Lease”) with the Sutro Tunnel Company (“Sutro”), in order to lease certain patented mining claims, exploration rights and town lots in the Gold Hill and Virginia City Mining District in Storey County, Nevada (collectively, the “Sutro Properties”). The Company previously had exclusive rights to explore and mine these same properties and mineral claims beginning in 2008.

The Lease is assignable by Comstock and these properties make up part of the Lucerne mine properties and part of the Mineral Exploration lease with Tonogold Resources Inc. (“Tonogold”). Tonogold is a strategic partner and investee of the Company, and they recently announced the commencement of an initial and major exploration and evaluation of Comstock Lode properties including the Occidental Lode, the Lucerne and many of the most historic bonanza’s including but not limited to the Collar Potosi, Belcher, Overman, Gould & Curry, Consolidated Imperial, Woodville, Crown Point and Yellow Jacket mineral properties, where historic production recovered over 8 million ounces of gold and almost 200 million ounces of silver. The Company has preferred shares convertible to 33.2 million Tonogold common shares.

Tonogold has also announced that it recently completed a $4.25 million equity capital raise, over $6 million in cash and an additional $3.5 million in drilling equity credit, fully funding an estimated $7 million initial drill program, in one of the most historically significant portions of the Comstock Lode. Tonogold’s initial drill program will focus on the nearly 2-mile mineralized strike where most of the historical production came from above approximately 1,600 feet in depth, where more favorable mining conditions were enabled by the dewatering of the Sutro Tunnel. Tonogold has conducted extensive research and uncovered mining reports and data that indicate significant potential for higher grade discoveries, at depths consistent with and below 1,600 feet.

The Lease has a term of up to 20 years or longer, with a 4% net smelter royalty payable to Sutro. The Sutro Tunnel Company is a wholly-owned subsidiary of Pelen Limited Liability Company (“Pelen”). The Company previously acquired and owns 25% of the outstanding equity of Pelen. In connection with entering into the long-lived Lease, the Company purchased an option (the “Option”) to acquire the remaining 75% of the equity of Pelen (the “Pelen Equity”). The Option has a term of up to three years. The Option is exercisable so long as the Company makes payments of $100,000 per year ($100,000 of which was paid by the Company upon signing the Option). Pursuant to the Option, the Company is entitled to purchase the Pelen Equity for $3,750,000 if exercised within one year, with an increasing purchase price for the second and third years, with half of the option payments being cumulatively applicable to the purchase price.

Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our collaboration with Tonogold has expanded from their initial purchase of Lucerne, that we anticipate completing in the near term, to an expansive exploration drilling program targeting some of the highest grade sections of the Comstock Lode. We remain an owner, investor and royalty holder, and we very much look forward to the exploration results over the next few months and well into next year. There is a genuine sense of excitement seeing these rigs mobilized and drilling on the Comstock.”

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.

Contact information

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

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

 

Golden Predator Acquires 20% of Group 11 Technologies

Environmentally-Friendly Solutions and In Place Mining to Extract Precious Metals

 

Vancouver, BC, September 2nd, 2020: Golden Predator Mining Corp. (TSX-V: GPY) (OTCQB: NTGSF) (the “Company“) announced today that the Company has entered into final Agreements for a 20% ownership positions in Group 11 Technologies Inc., (“Group 11”) a United States-based private company committed to testing and implementing non-invasive in-situ recovery (ISR) of precious metals with the use of environmentally-friendly solutions. Effective August 28th, 2020 Group 11 has finalized all necessary Organizational, Shareholder, and Licensing documentation with its founding partners and will now commence formal operations. Group 11’s initials steps will include acquisition and subsequent testing of gold projects, already identified, that demonstrate specific qualities lending themselves to the Company’s environmentally and economically superior processes. Group 11 is committed to providing commercially viable, sustainable alternatives to conventional mining for the extraction and processing of precious metals.

Group 11 was founded and is owned by enCore Energy Corp. (“enCore”) (TSXV: EU; OTCQB: ENCUF) with 40% of the common stock, EnviroLeach Technologies Inc. (“EnviroLeach”) (CSE : ETI; OTCQB: EVLLF) with 40% of the common stock and Golden Predator Mining Corp. (“Golden Predator”) (TSXV: GPY; OTCQB: NTGSF) with 20% of the common stock. EnCore has contributed $750,000 in initial funding and will provide in-situ extraction expertise, EnviroLeach has entered into a license agreement with Group 11 for the use of its environmentally friendly metal recovery process and will provide chemical and metallurgical expertise, Golden Predator will contribute mobile processing equipment and expertise in utilizing EnviroLeach’s environmentally friendly solution for recovery of gold from sulphide concentrates. Group 11, a private company, will finance all ongoing research and development expenditures for in-situ and secondary recovery applications.

About Group 11 Technologies Inc.

Sustainable metals extraction is a serious challenge for the mining industry which faces mounting concerns over its environmental and carbon footprint, energy consumption, operational safety and especially its impact on water use and water quality while responding to an ever-increasing need for metals in our daily lives. Each Group 11 owner brings a vital skill set to address these challenges and create a unique business opportunity. Group 11 is backed by a first-class staff of scientists and engineers; an extraordinary data set; independent technical validations; strategic relationships; over $20 million in research and development; and commercially proven processes and technologies.

Janet Lee-Sheriff, Chief Executive Office said: “We are extremely proud of the contribution our processing plant’s batch processing unit (SRU™) has contributed to Group 11’s team. With the world’s first on-site test of the EnviroLeach cyanide-free metals recovery process we have demonstrated that their process and our mobile plant can economically recover gold from sulfide concentrates, which is a valuable business opportunity.”

Background on Non-Invasive Extraction Technology

Non-invasive extraction of minerals has been successfully implemented in the mining sector with many innovators and patent holders in the field on the team at enCore, one of the Group 11 partners. These innovators pioneered In-situ Recovery (“ISR”) which has been successfully utilized to recover metals including uranium and copper using liquid solutions other than cyanide. Group 11 is committed to the development and application of ISR extraction for gold and other metals using EnviroLeach’s patented environmentally friendly process along with enCore’s expertise in ISR extraction. This combination of expertise will advance a business model that has potential to disrupt the conventional mining industry.

In-Situ Recovery (meaning ‘in place’) is a non-invasive extraction method that has transformed the uranium industry. In ISR, diluted water-based solutions are circulated underground, dissolving the targeted metals, and returned to surface for further processing and recovery of the target metals. ISR means no open pits or underground tunnels, no tailings or large waste dumps and no discharge of noxious chemical at surface. It therefore has the potential to be a low-impact, low capital cost mining method. When many projects are burdened by remediation and rehabilitation requirements, ISR means substantially reduced mine-closure time and costs compared to conventional practices. In addition, energy requirements, water usage and the environmental footprint of mining projects can be significantly reduced using ISR technology.

About the Golden Predator Process

Golden Predator’s test processing plant, the first of its kind in Yukon, Canada, operated from 2016 -to 2020 providing increased metallurgical and geological understanding of one of the Company’s projects. A closed-circuit water system with no added chemicals due to the free-milling nature of the gold, Golden Predator partnered with EnviroLeach to utilize its patent pending environmentally-friendly cyanide-free solution in its custom-built mobile extraction unit (“SRU”) to process its sulphide concentrates. The cumulative testing resulted in a total calculated recovery of 93.17% of the gold contained in the concentrate. This work lead to the eventual combination of Golden Predator’s SRU™, enCore Energy Corp.’s ISR expertise and EnviroLeach’s technology in partnerships within Group 11 to consider alternate extraction technologies for precious metals.

Group 11 Technologies Inc. (‘Group 11’) is a private US-based company committed to the development and application of environmentally and socially responsible mineral extraction. Its combination of non-invasive extraction technology and environmentally friendly processes to recover gold and other metals provides an alternate solution to conventional open pit and underground mineral extraction. The goal of advancing sustainable extraction considers growing concerns surrounding water use and discharge, carbon footprint, energy consumption and safety while addressing a growing global need for metals in our daily lives.

Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading over 1.0 g/t Gold and a Bankable Feasibility Study underway to evaluate a restart of heap leach operations at the Brewery Creek Mine, 2020 proves to be a pivotal year for the Company. Golden Predator Mining Corp. has spearheaded and successfully applied the EnviroLeach technology to the recovery of gold from sulfide concentrates where cyanide is not feasible or permitted, using its proprietary mobile recovery unit.

For additional information:

Janet Lee-Sheriff
Chief Executive Officer
(604) 260-5029
info@goldenpredator.com
www.goldenpredator.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements express or implied regarding completion of the transactions described herein, the upcoming season at 3 Aces project, and projected grades and gold and silver recoveries from the 2018 and proposed 2019 bulk sample program, Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

 

Comstock Mining Contracts to Lease and Sell Daney Ranch for $2.7 Million; Positions Strategic Drilling Services for the Dayton Resource Area and Spring Valley Exploration Targets

 

Virginia City, NV (September 2, 2020) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced that it has contracted to lease and sell one of its three major non-mining assets, the Daney Ranch property, located near Dayton, Nevada, for a purchase price of at least $2.7 million. The Company entered into an agreement with the owner of an established exploration and mine development drilling services company, to lease the facility for $9,000 per month, for up to 24 months, and the assumption of all maintenance, upgrades and repairs as the responsibility of the lessor. If the transaction closes within two years, the lease payments are creditable to the purchase price. If not, the lease payments increase to $10,000 for a third year, and prior payments no longer apply to the $2.7 million purchase price.

Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “We now have all three major non-mining assets under contract with contracted sales prices totaling nearly $14 million. This transaction validates our assessment of the land values, while providing monthly cash income, reducing monthly expenses and freeing maintenance resources as we ramp up MCU. We have also created a truly strategic and local drilling partner for us, enhancing the liquidity, speed and likelihood of both closing this favorable transaction, and commencing exploration and development drilling on our Dayton Resource.”

The Daney Ranch is a 225-acre ranch in Dayton, NV, bordering the Company’s historic Daney patent, at the southern end of the Company’s three-mile contiguous mineralized trend starting at the Dayton resource area, near Silver City, down through the southern tip of the Spring Valley exploration targets.

The Company recently announced its plans to conduct airborne geophysical surveys of its wholly owned Dayton resource area and adjacent Spring Valley exploration targets. Geotech expects to begin flying its proprietary Versatile Time-Domain Electromagnetic (“VTEM”) geophysical system later next week and plans to deliver three-dimensional interpreted results by mid-October. 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 County.

The entire press release can be read here.

 

Contact information

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

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, September 02, 2020

Newrange Gold (NRGOF)(NRG:CA)

Next Wave of Pamlico Drilling Results Expected Shortly

As of April 24, 2020, Noble Capital Markets research on Newrange Gold is published under ticker symbols (NRGOF and NRG:CA). The price target is in USD and based on ticker symbol NRGOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

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.

Additional drilling results expected shortly. To date, the company has drilled 34 holes for a total of 3,462 meters of drilling. Results have been reported for 14 holes representing only 450 meters of strike length along the central portion of Pamlico Ridge between the historic Pamlico and Gold Bar Mines. Results from the first 14 holes, announced on July 30, revealed higher grade structures, up to 9.5 grams of gold per tonne, surrounded by an envelope of lower grade material. We expect the company to release results for the remaining 20 holes shortly.


Drilling program advances.  In its entirety, the program will entail over 10,000 meters of drilling and utilize reverse circulation rigs for shallow targets and diamond drilling for targets at greater depth. The remainder of the initial drilling program will continue to test around historic mine workings on Pamlico Ridge and several other targets identified by an induced polarization (IP) survey …

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. 

Wednesday, September 02, 2020

Ely Gold Royalties (ELYGF)(ELY:CA)

Poised to Broaden Its Horizon?

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.

Transactions expected to close soon. We expect Ely to close on several announced transactions this month. First is the acquisition of an additional one percent NSR royalty on Coeur Mining’s Lincoln Hill property announced on July 21. Second is the acquisition of a package of three net smelter returns (NSR) royalties on properties in Nevada announced on August 11.


Ready to expand its opportunity set?  Ely Gold Royalties has largely focused its efforts on Nevada. However, based on an expanding universe of royalty companies and an increasingly competitive acquisition environment, we would not be surprised if the company expands its opportunity set by considering other mining jurisdictions, including in Latin America. While we would expect gold royalties to …

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. 

 

This Is What Could Slam the Brakes on EV Growth

 

According to the International Energy Agency (IEA), sales of electric cars hit a record 2.1 million globally in 2019, increasing the total EVs sold to 7.2 million electric cars. Electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase. And this growth is only projected to continue. BCG’s (Boston Consulting Group) latest global automotive powertrain forecast shows sales of electrified vehicles growing even faster than expected. EV cars are now projected to be one-third of the global car market by 2025 and 51% by 2030, surpassing sales of vehicles powered purely by internal combustion engines (ICEs). If accurate, such growth would result in some 35 million EVs being sold worldwide in 2025 and over 55 million in 2030.

But will the raw materials that makeup EV batteries be a limiting factor on projected growth of the market? The estimated material demand for the batteries of the electric vehicles sold in 2019 was about 19 kilotons (kt) for cobalt, 17 kt for lithium, 22 kt for manganese, and 65 kt for nickel, according to the IEA. In the IEA Sustainable Development Scenario, which incorporates the targets of the EV30@30 Campaign3 to collectively reach a 30% market share for electric vehicles in all modes except two-wheelers by 2030, annual demand for the key materials would be 360 kt of cobalt, 370 kts of lithium, 354 kt of manganese, and 1,850 kts of nickel. Obviously, the demand for the materials used in electric vehicle batteries will depend on changing battery chemistries, nickel cobalt aluminum oxide (NCA), nickel manganese cobalt oxide (NMC), and lithium iron phosphate (LFP) cathodes for lithium-ion (Li-ion) batteries being the most widely used today.

For the next decade, the Li-ion battery is likely to dominate the electric vehicle market, according to the IEA. For the period after 2030, however, a number of potential technologies might be able to push the boundaries beyond the performance limits imposed by current Li-ion battery technology. These include the lithium-metal solid-state battery, lithium-sulfur, sodium-ion, or even lithium-air, which could represent an improvement from Li-ion on indicators such as cost, density, cycle life, and benefits from more widely available materials than Li-ion technologies.

EV batteries use a whole host of materials. Gold and silver are used in the circuit boards, but in minute quantities, and both gold and silver are fully recyclable. Many other parts, such as nickel, steel, plastics, carbon fiber, etc., are also used in ICE vehicles, and as the production of ICEs decline these materials can be switched over to EVs.

The two key materials then become cobalt and lithium. Thankfully, both are not rare. Lithium is the 32^nd most common element on the planet, while cobalt can be found in most rocks and is typically a by-product of nickel and copper mining. Cobalt is expensive, with the cost subject to significant fluctuations. The adoption of batteries that use lithium-iron could eliminate a significant need for cobalt, however.

Although not particularly rare, both cobalt and lithium reserves are concentrated in a few countries, according to the Clean Energy Manufacturing Analysis Center (CEMAC). For example, about one-half of the global mined cobalt production comes from the Democratic Republic of Congo, which has a past of political instability. Some 80% of lithium production comes from Australia, Chile, and Argentina. The significant expected demand increase for these materials though could require $30-$45 billion of investment in mining capacity by 2025 to meet the demand. The often long-lead time to develop new mining sources could require such investment sooner rather than later to ensure ample supply of these key materials in the future.

A potential larger issue is more political. CEMAC notes that in addition to controlling major resources in natural graphite and manganese, China controlled nearly one-half global cobalt refining and a similar level of lithium carbonate refinery capacity. Such concentrated control of refining capacity could be a limiting factor in EV growth if political conditions deteriorate between China and other countries. Alternatively, other countries would need to invest in developing and expanding their own refinery capacity.

To end on a positive note, both cobalt and lithium are recyclable. So once a certain level of electric vehicles are on the road, recycling of existing batteries should lessen any of the potential limiting factors.

 

Sources:

https://www.linklaters.com/en-us/insights/thought-leadership/electric-vehicle-batteries/powering-the-future/sourcing-raw-materials

https://www.forbes.com/sites/woodmackenzie/2019/07/24/can-metals-supply-keep-up-with-electric-vehicle-demand/#5b5393586c9b

https://www.ucsusa.org/resources/comparing-electric-vehicles

https://new.engineering.com/story/what-you-need-to-know-about-batteries-for-electric-vehicles

https://www.mckinsey.com/~/media/mckinsey/industries/metals%20and%20mining/our%20insights/lithium%20and%20cobalt%20a%20tale%20of%20two%20commodities/lithium-and-cobalt-a-tale-of-two-commodities.ashx#:~:text=Raw%20materials%20used%20in%20the,from%203%20percent%20in%202010.

https://www.nrel.gov/docs/fy19osti/73374.pdf

https://www.leadingthecharge.org.nz/do_we_have_enough_rare_earth_metals_for_evs#:~:text=Critical%20earth%20elements%20typically%20found,reused%20over%20and%20over%20repeatedly.

https://www.bcg.com/en-us/publications/2020/drive-electric-cars-to-the-tipping-point

 

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Tuesday, September 01, 2020

Golden Predator Mining (NTGSF)(GPY:CA)

Updated Technical Report Provides Solid Foundation for Advancing to a Feasibility Study

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, Noble Capital Markets, Inc.

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

Updated Brewery Creek technical report. Golden Predator released highlights from a recently completed NI 43-101 technical report for the Brewery Creek mine. In addition to an updated mineral resource estimate, the company disclosed plans to conduct additional drilling in 2020 with the goal of connecting several deposits that will result in an enhanced mine plan to be included in a feasibility study which is expected to be completed by year-end 2020.


2020 drilling program.  The company will begin a 3,000-meter reverse circulation drilling program in September, along with a 1,000-meter metallurgical core drilling program. While the technical report confirmed the efficacy of combining four deposits (Canadian, Fosters, Golden and Kokanee) into one elongated pit now named “Keg”, drilling will focus on connecting these four with a fifth deposit known as …

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 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.