Category: Natural Resources

Wednesday, July 15, 2020

Endeavour Silver (EXK)(EDR:CA)

EXK Unveils Final Terronera Preliminary Feasibility Study

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

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.

Highlights of the study. The final preliminary feasibility study (PFS) highlights enhanced project economics, including cumulative after-tax free cash flow of $217.4 million and a 30% internal rate of return based on silver and gold prices of $15.97 and $1,419 per ounce, respectively. The previous study released in 2018 forecast cumulative after-tax free cash flow of $193.2 million and a 23.5% IRR. Part of the difference is due to a 6.7% increase in processing capacity to 1,600 tons per day. Expected life of mine payable silver and gold ounces produced increased 6.8% and 22.4%, respectively, relative to the 2018 study.


Next steps. Endeavour will proceed with a feasibility study over the next 12 months to bolster confidence in the project and enhance access to financing alternatives. Once a development decision is made, the project could …








Click to get the full report

This 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 Resumes Drilling at The Läntinen Koillismaa PGE-Cu-Ni Project in Finland

July 14, 2020 –
Vancouver, British Columbia – Palladium One Mining Inc. (
TSX-V: PDM, FRA:
7N11, OTC: NKORF) (the “Company” or “Palladium One“) is pleased to report that it is preparing to resume its drill program, in August, at the Läntinen Koillismaa (“LK”) PGE-Cu-Ni Project, located in north central Finland.  Initial drilling will be focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South zone, which hosts a greater than four (4) kilometer long Induced Polarization chargeability anomaly. (Figure 1)

In March 2020, the Phase 1 exploration program was suspended due to the COVID-19 pandemic (see news release – March 24, 2020). Initiated in January 2020, the Phase 1 program completed several tasks prior to being suspended, including:

• 85 kilometers of high-resolution 3D Induced Polarization (IP) survey, covering 12 kilometers (5-survey grid areas) of the 38-kilometer favourable basal contact,
• 385 kilometers of high-resolution drone-based Magnetic (Mag) survey, covering 17 kilometers of the favourable basal contact,
• 1,920 meters of a 5,000-meter planned diamond drilling program.

At the LK project, IP has proven very reliable in identifying PGE-Ni-Cu mineralization. During the winter program, multiple new and significant IP chargeability anomalies were outlined – see below for highlights.  The high-resolution magnetic survey, which was also undertaken earlier this year, proved invaluable for structural interpretation and in outlining prospective peridotitic rocks, which commonly host PGE-Cu-Ni mineralization. Integration and 3D modelling of this data has produced numerous high-quality drill targets for testing.

President and CEO, Derrick Weyrauch commented “To date our exploration program has been very successful.  We identified an abundance of large, high-quality drill targets throughout the LK project. With
the large number of excellent drill targets at hand, we are taking a very disciplined approach to drilling prioritization.  A prime example is Kaukua South (Figure 1.), when we began the winter program this was an interesting but poorly understood zone. As multiple IP results
demonstrated, we learned that Kaukua South extends for over 4 kilometers of strike length, of which 3.5 kilometers has never been drill tested. Considering that Kaukua South has known PGE-rich mineralization similar to the Kaukua
deposit, it will be a primary focus of our resumed drill program“.

 

Figure 1. Plan view of the 2008 and 2020 (current) IP survey in the Kaukua Area. The 2008 IP survey area is outlined in blue, while the 2020 survey is outlined in green. The Kaukua deposit’s optimised open pit is outlined by a dashed black line. The Kaukua deposit hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq (see press release September 9, 2019). The newly expanded Kaukua South Zone is outlined by a dashed orange line. The 2008 IP survey was instrumental in identifying the Kaukua Deposit. Note that the 2008 survey used different equipment, consisting of a 3-line 3D system, whereas the 2020 survey used a 5-line 3D system, as a result the two surveys are not exactly comparable.

Highlights of Phase 1 Exploration Program Results, Before
Suspension Due to COVID

• IP Survey Grid #1 @ Kaukua
  South (~400 meters south of the Kaukua deposit)
• Discovered a chargeability anomaly over 4,000 meters long, including 3,500 meters which has never been drill tested (Figure
  1), (see news release -April 14, 2020).
• Extending the known PGE-rich mineralization is a top priority when drilling resumes (e.g. 32.95m @ 1.05g/t PGE (0.74g/t Pd, 0.24g/t Pt, 0.07g/t Au), and 0.17% Cu, 0.13% Ni) in hole KAU08-035).
• IP Survey Grid #2 @ Murtolampi (~2,000 meters northeast of the Kaukua deposit)
• Discovered a 750-meter long chargeability anomaly the core of which has never been drill tested.
• This anomaly is associated with high PGE prospecting samples collected in 2019 (e.g. prospecting sample NP-LK-003 which returned 3.11g/t PGE (1.86g/t Pd, 1.11 g/t Pt, 0.14 g/t Au), and 0.78% Cu, 0.13% Ni) (see news release August 12, 2019).
• The anomaly is proximal to limited, shallow (~40-meter deep), historic drill holes having high PGE values from the 1990’s, that were never followed up with more drilling, (see news release – March 10, 2020).
• IP Survey Grid #3 @ Haukiaho (~12,000 meters south of the Kaukua deposit and host to the historic Haukiaho resource)
• Discovered three new chargeability anomalies (see news release – May 7, 2020). 
• The western anomaly corresponds with the 2013 historic Haukiaho resource.
• The central anomaly occurs underneath the bulk of the historic drilling in this area, suggesting the best mineralization has not been tested.
• The eastern anomaly is associated  with sparse shallow historic drilling and occurs underneath 2019 prospecting sample NP-LK-002 which returned 0.96 g/t PGE (0.18 g/t Pt, 0.56 g/t Pd, 0.21 g/t Au) 0.51% Cu, 0.33% Ni  (see news release August 12, 2019)
• IP Survey Grid #4 @ Haukiaho East (~7,500 meters east of the historic Haukiaho resource)
• Discovered a 1,600-meter long chargeability anomaly (see news release – May 26, 2020)
• The anomaly is coincident with a strong magnetic high suggesting peridotitic rocks, which are characteristic of Haukiaho-style PGE-Ni-Cu mineralization.
• IP Survey Grid #5 @ Tilsa (~6,000 meters west of the historic Haukiaho resource)
• Discovered a new 1,000-meter long chargeability anomaly (see news release – June 11, 2020).
• The strongest part of the newly identified chargeability anomaly has never been drill tested.
• The survey also identified two other parallel chargeability and magnetic anomalies possibly representing fault repetitions of the favourable basal phase of the Koillismaa complex.
• Diamond Drilling
• The Company completed twelve (12) drill holes (1,920 meters), prior to the suspension of drilling in March 2020, located in the following zones:
• Kaukua Deposit Area, 6 holes.
• Kaukua South Extension, 1 hole.
• Murtolampi, 2 holes.
• Haukiaho, 3 holes
• All assay results are pending.

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

About Palladium One
Palladium One Mining Inc.
is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Läntinen Koillismaa (“LK”) and Kostonjarvi (“KS”) PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. All projects are 100% owned and are of a district scale.  LK is an advanced project targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly.  Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 3,100-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

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

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

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

This press release is not an offer or a solicitation of an offer
of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …









Click to get the full report.

This 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. 

Friday, July 10, 2020

Endeavour Silver (EXK)(EDR:CA)

Higher Commodity Prices Expected to Benefit 2H Performance

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

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.

Second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 43.7% and 39.1% to 596,545 ounces and 5,817 ounces, respectively. Sequentially, silver and gold production declined 30.4% and 31.4%, respectively. Second quarter production was negatively impacted by the temporary suspension of mining operations in Mexico due government-mandated work restrictions. Mining operations resumed in late May. The bright spot for the quarter was the improvement at the Guanacevi mine as a result of access to new higher grade ore bodies. We expect improvement at the Bolanitos mine beginning in the third quarter.


Updating estimates. We have narrowed our 2020 loss per share estimate to $(0.14) from $(0.15) based on higher gold and silver prices. Additionally, we have increased our 2021 EPS estimate to …








Click to get the full report

This 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. 

Friday, July 10, 2020

Minerals Industry Report

Metals & Mining: 2020-2Q Review and Outlook

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

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

• Mining equities outperform the broader market. During the second quarter of 2020, mining companies (as measured by the XME) gained 31.4% compared to 20.0% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 59.2% and 76.4%, respectively. During the second quarter, gold futures prices increased 12.8%, while silver futures prices increased 31.3%. With respect to base metals, copper, lead, and zinc futures prices increased 21.5%, 10.5%, and 6.0%, respectively.
• Outlook for precious metals remains favorable. In our view, the outlook for gold remains constructive based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe-haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions. While silver generally lags gold during periods of rising demand for precious metals, silver finally caught a bid in May and finished the month up almost 24%. At this time, we think silver may offer more immediate upside potential relative to gold.
• Base metals should benefit from a rebound in industrial activity. Following a challenging first quarter, base metals prices, led by copper, responded to a more optimistic industrial demand outlook that was driven by supportive fiscal and monetary policies. Positive demand signals from China, the first country to begin recovering from the negative impacts of COVID-19, rippled across various commodities, including crude oil.
• Mining equities provide leverage to rising commodity prices. In our view, the backdrop is uniquely constructive for both precious and base metals since both are likely to benefit from a rising tide of fiscal and monetary stimulus and their repercussions. Publicly traded equities of mining & metals equities are an attractive way to gain metals exposure due to their leverage to commodity prices.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	88%	43%
Market Perform: potential return is -15% to 15% of the current price	12%	3%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …









Click to get the full report.

This 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. 

Friday, July 10, 2020

Endeavour Silver (EXK)(EDR:CA)

Higher Commodity Prices Expected to Benefit 2H Performance

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

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.

Second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 43.7% and 39.1% to 596,545 ounces and 5,817 ounces, respectively. Sequentially, silver and gold production declined 30.4% and 31.4%, respectively. Second quarter production was negatively impacted by the temporary suspension of mining operations in Mexico due government-mandated work restrictions. Mining operations resumed in late May. The bright spot for the quarter was the improvement at the Guanacevi mine as a result of access to new higher grade ore bodies. We expect improvement at the Bolanitos mine beginning in the third quarter.


Updating estimates. We have narrowed our 2020 loss per share estimate to $(0.14) from $(0.15) based on higher gold and silver prices. Additionally, we have increased our 2021 EPS estimate to …








Click to get the full report

This 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. 

Friday, July 10, 2020

Minerals Industry Report

Metals & Mining: 2020-2Q Review and Outlook

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

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

• Mining equities outperform the broader market. During the second quarter of 2020, mining companies (as measured by the XME) gained 31.4% compared to 20.0% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 59.2% and 76.4%, respectively. During the second quarter, gold futures prices increased 12.8%, while silver futures prices increased 31.3%. With respect to base metals, copper, lead, and zinc futures prices increased 21.5%, 10.5%, and 6.0%, respectively.
• Outlook for precious metals remains favorable. In our view, the outlook for gold remains constructive based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe-haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions. While silver generally lags gold during periods of rising demand for precious metals, silver finally caught a bid in May and finished the month up almost 24%. At this time, we think silver may offer more immediate upside potential relative to gold.
• Base metals should benefit from a rebound in industrial activity. Following a challenging first quarter, base metals prices, led by copper, responded to a more optimistic industrial demand outlook that was driven by supportive fiscal and monetary policies. Positive demand signals from China, the first country to begin recovering from the negative impacts of COVID-19, rippled across various commodities, including crude oil.
• Mining equities provide leverage to rising commodity prices. In our view, the backdrop is uniquely constructive for both precious and base metals since both are likely to benefit from a rising tide of fiscal and monetary stimulus and their repercussions. Publicly traded equities of mining & metals equities are an attractive way to gain metals exposure due to their leverage to commodity prices.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

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Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	88%	43%
Market Perform: potential return is -15% to 15% of the current price	12%	3%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

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Monday, July 6, 2020

Newrange Gold (NRGOF)(NRG:CA)

Initial 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.

Drilling advances at Pamlico. In May, Newrange commenced drilling at its Pamlico project in Nevada. The initial portion of the program entails drilling 30 to 35 holes for a total of 3,000 to 3,500 meters, primarily along Pamlico Ridge. Reverse circulation (RC) drilling is being used to test the continuity of near-surface gold around and between historic workings of the Pamlico, Gold Bar and Good Hope mines. Once additional sites are permitted and roadwork is completed, drilling will continue with a combination of RC and diamond drilling at identified targets. The program is expected to result in up to 10,000 meters of drilling over the next several months.


Initial Pamlico assay results expected shortly. To date, the company has drilled 15 holes, representing approximately 1,600 meters of drilling. Samples have been submitted to the laboratory and management expects to begin receiving assay results shortly. Once received, management will …








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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. 

Wednesday, July 1, 2020

Ely Gold Royalties (ELYGF)(ELY:CA)

Still Early Days in an Emerging Growth Story

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.

Gold prices continue to strengthen. Year-to-date, the gold futures price has increased 17.2% to close at $1,799.30 per ounce on June 30 and is up 12.7% since the end of the first quarter. In our view, the outlook for gold remains favorable based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions, including China and Hong Kong. Ely Gold offers shareholders leverage to gold prices through its growing portfolio of long-term gold royalties.


Early days in the Ely Gold Royalties growth story. Junior royalty companies generally offer greater growth and higher returns during their early years. Ely has announced 12 transactions in 2020 and has ample financial flexibility for additional …








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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. 

BATTERIES INCLUDED – Tesla’s EV Revolution and Materials Suppliers

While Tesla is perhaps best known for its electric cars, its solar panel, solar roof, and Powerwall product offerings make it a leader in advancing and commercializing distributed energy technologies. The key to its products is raw materials. Because batteries are a central part of the electric car revolution, Tesla has been working to optimize the design of its batteries to achieve high energy density at decreasing costs while maintaining safety, reliability, and increasing longevity. At the company’s Gigafactory in Nevada, Tesla works with suppliers to integrate battery material, cell, module, and battery pack production in one location. The company may scale up its factories using automated manufacturing processes to reduce labor costs and increase scale.  While electric vehicles are in their infancy, improved battery technology could be key to increased customer adoption, much as improved battery technology helped expand the market for mobile communications.

What are the Components of an EV Battery?

Most electric vehicle batteries are lithium-based and include a mix of cobalt, manganese, nickel, graphite, and other components. Based on the growth potential, many companies are researching different battery chemistries to optimize battery technologies using components that are the most widely available at the lowest cost. For example, the Democratic Republic of Congo supplies roughly 60% of the global supply of cobalt. This is problematic for many companies, given that the DRC has a poor human rights track record. Many companies, including Tesla, are thinking hard about the importance of securing future supplies of raw materials and how their supply chains are configured. In the past, Tesla has committed to sourcing materials only from North America for its battery production facility. Battery supplier LG Chem claims to have stopped using conflict-sourced cobalt and seeks to produce cathodes with lower proportions of cobalt such as 80% nickel and 10% cobalt, known as NMC 811. Tesla now produces nickel-cobalt-aluminum (NCA) batteries with Panasonic in Nevada and purchases NMC batteries from LG Chemical. Tesla’s first Model S, launched in 2012, was built with an average of 11 kilograms of cobalt per vehicle. The Model 3, launched in 2018, used about 4.5 kilograms of cobalt. The reduction was achieved using nickel-cobalt-aluminum chemistry.  Earlier this year, Tesla executed an agreement with Contemporary Amperex Technology Co. Ltd. (CATL) to supply batteries for the Model 3 produced at the company’s Gigafactory in Shanghai where cars are produced for the local market. 

What Could Disrupt Tesla’s Vision?

The United States is increasingly dependent on imports to meet its raw materials. China now dominates the production of many critical minerals, including graphite and magnesium. China is the third-largest supplier of natural resources to the United States behind Canada and Mexico. While Australia accounts for over 40% of global lithium production, China has been increasing its influence in the global lithium market by making deals to secure future supplies. As mentioned earlier, the DRC is the largest source of cobalt supplies. As part of a strategy to ensure secure and reliable supplies of critical minerals, the U.S. Department of the Interior identified 35 critical minerals, including aluminum (bauxite), cobalt, graphite, and lithium. Tesla executives have expressed concerns about underinvestment in the mining sector and its impact on future supplies of nickel, copper, and other electric-vehicle battery components. Securing long-term supplies of critical raw materials will help protect both the United States and Tesla’s ability to lead in distributed energy advancements.  

What Will Be Tesla’s Big Reveal?

While we expect Tesla to showcase advancements in its battery and powertrain technologies, we think investors will also want the company to address its plans for sourcing key raw materials and designing its supply chain to avoid disruption. Tesla’s products use various raw materials, including aluminum, steel, cobalt, lithium, nickel, and copper. The prices for these materials fluctuate, and supplies may be unstable depending on market conditions and global demand for these materials.  Assuring reliable supplies of raw materials while meeting ethical considerations with respect to sourcing, meanwhile advancing a battery design that minimizes environmental impact, may be just as important as the battery’s commercial aspects. Recycling may also be a theme in addition to integrating the car battery with the electric grid and Tesla’s other products, including the Powerwall.  Tesla’s “Battery Day” (September 15), which should unveil new battery technologies,  could also be the catalyst for investors to begin paying more attention to long-term supply and demand trends for the materials that underpin its products.    

 

Suggested Reading: 

Virtual Power Plants and Tesla Car Batteries

Is
Elon Musk’s Battery Day Losing its Charge?

Cobalt and Rare Earth Metals from the Ocean Floor Eyed to Meet Growing Battery Demand

 

Enjoy Premium Channelchek Content at No Cost

 

Sources:

Annual
Report, Form 10-K, Tesla, Inc., Fiscal Year Ended 2019.

Electric Vehicle Batteries:  Materials, Cost, Lifespan, Union of Concerned Scientists, March 9, 2018.

The
World’s Biggest Cobalt Producing Countries, NS Energy Staff Writer, May 4, 2019.

A Million Mile Battery from China Could Power Your Electric Car, Bloomberg, John Liu, Chunying Zhang, Martin Ritchie and David Stringer, June 7, 2020.

A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals, Executive Office of the President, December 20, 2017.

Final List of Critical Minerals 2018, Office of the Secretary, Interior, May 18, 2018.

The New Energy Era:  The Impact of Critical Minerals on National Security, Markets Insider, Nicholas LePan, April 28, 2020.

Cutting Battery Industry’s Reliance on Cobalt will be an Uphill Task, The Guardian, Jasper Jolly. January 5, 2020.

Tesla Expects Global Shortage of Electric Vehicle Battery Minerals, Reuters, Ernest Scheyder, May 2, 2019.

Tesla’s
Secret Batteries Aim to Rework the Math for Electric Cars and the Grid, Reuters, Norihiko Shirouzu and Paul Liebert, May 14, 2020.

Wednesday, June 24, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

Initial Tucano drilling results are encouraging. Initial drill results from the 2020 drill program at the Tucano mine included some high-grade gold intercepts. To date, 12,000 meters of drilling has been completed, including 6,000 meters of near-mine diamond and reverse circulation drilling at the Tapereba AB1 and AB3 open pits. The 2020 program at Tucano will entail 55,000 meters of drilling at near-mine and regional targets at a cost of $6.6 million. The company also plans to spend an additional $4 million this year on a 25,000-meter drilling program in Mexico to define new zones and develop high grade resources.

Mr. Nick Winer appointed Vice President of Exploration. Prior to joining Great Panther, Mr. Winer was Vice President, Exploration for AngloGold and was responsible for activities in South America. He is a resident of Brazil and was involved in the initial resource/reserve definition program …









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

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Sierra Metals Confirms New High-Grade Silver Zone At Its Cusi Mine, Mexico, Including 17 Meters True-Width Of 428 Grams Per Ton Silver, And Provides An Operational Update

New zone opens a new exploration horizon and will allow for innovative and highly productive operational design at Cusi

TORONTO—June 18, 2020 – Sierra Metals Inc. (TSX: SMT) (BVL:SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces the discovery of a new high-grade silver zone with significant widths in an area called Northeast – Southwest System of Epithermal Veins and is providing a corporate update for its Cusi Mine in Mexico.

The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling which is reported in this press release which includes true widths of 17.45 meters of 428 g/t silver (464 g/t silver equivalent), 9.35 meters of 304 g/t silver (327 g/t silver equivalent), 8.75 meters of 303 g/t silver (322 g/t silver equivalent) and 4.90 meters of 1,140 g/t silver (1,163 g/t silver equivalent).

Sierra Metals announced with a press release on June 29, 2018 the discovery of a 40-meter wide high-grade stockwork area within the Santa Rosa de Lima vein at Cusi.  As the area was developed for mining in the later part of 2019 and early 2020, our geologists re-interpreted the stockwork structure as a series of high-grade veins that had an orientation perpendicular to the Santa Rosa de Lima Structure.  The most important implication of this re-interpretation is that rather than a widening of the Santa Rosa de Lima zone, these veins extended further to the North East side of the Cusi fault, which was considered barren of silver mineralization before. Note that the Cusi fault coincides with The Santa Rosa de Lima structure. All the historic silver mineralization at the Cusi mine reported by Sierra Metals was in the South Western side of this regional fault.  The new discovery is an extension of the Cusi Vein systems in the North East of the fault and, rather than barren, the veins are reporting silver grades and widths above the average of the structures previously known at the mine in the South West to the Cusi fault.      

The Company has plans to drill an additional 1,000 meters to better understand the extension of the zone at depth and to Northeast. This mineralized zone is made up of multiple veins extending over 300 meters in length which are in proximity to the existing operations. The Cusi Mine is located within the municipality of Cusihuiriachi in the central portion of the State of Chihuahua, in Mexico. The Mine area encompasses 11,657 hectares at an elevation range of 1,950 to 2,460 meters above sea level in the Sierra Madre Occidental Mountain Range.

Drill Hole Highlights include:

*The metallurgical recoveries used were based on averages obtained from production data provided by Sierra Metals. The metallurgical recoveries used are: 87% Ag, 57% Au, 86% Pb, 51% Zn.

**Metal prices used were based on consensus are: $17.86/Oz Silver, $1,431/Oz Gold, $0.93/lb Lead, and $1.06/lb Zinc.

“This exploration program confirms the existence of high-grade silver mineralization and demonstrates the
important potential of this new zone.  It will also allow the Company to use a mining method which results in high
productivity thus achieving the planned objectives for the Cusi Mine” stated J. Alonso Lujan, Vice President Exploration of Sierra Metals. He continued, “Intercepts such as those shown especially in holes DC20M658, DC20M677, DC20M686 and DC20M687 are common in high-grade epithermal deposits, and demonstrate further potential.  As such, they give us a reason to continue exploration in the Cusi fault area at depth and along strike, as well as at other high-value zones such as the San Rafael, San Nicolas and the Bordo fault. We look forward to an exciting future as we explore the Cusi district”.

Luis Marchese, CEO of Sierra Metals commented, “Today’s drilling results demonstrate the potential for further development of high-grade zones at Cusi. We are excited for further drill results, as they along with today’s results will potentially increases the value of the asset and play an important role in our growth strategy for the Cusi Mine”.

A plan map is shown below of the Cusi area in Figure 1. Figure 2 shows the distribution of the NE – SW System veins.

 

Figure 1: Cusi Project:  NE – SW System Area

 

Figure 2:  NE- SW System Veins – Plan View

 

 

 

Cusi Mine Operation Update

The Cusi Mine remained in care and maintenance during the government-mandated shutdowns due to its proximity to urban centers with large populations.  During this period of care and maintenance, the management team has had the time to complete an optimised view of the entire mine operation.  Changes on the interpretation of the geological system have been made based on updated information from a stockwork tonnage system to a vein model system, which is expected to help better control and improve head grades, dilution, and make better use of Cusi’s silver mineral resources.  The Company plans to use a sublevel stoping method for extraction, which is better suited to the rock/mineral environment.  Additionally, the main access ramp has been extended to an opening of four meters by four meters, which will allow for the use of larger 30-ton capacity trucks into the mine and improve the efficiency of ore haulage coming from the mine.

Mine development is currently starting at Cusi in a zone that will bypass the previously announced area of subsidence (see press release dated May 13, 2020) and provide access to higher-grade economic ore to provide feed for the mill.  Cusi production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the Company’s other operations. 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 zone announced today that cross the Cusi fault near Santa Rosa de Lima zone. Management is targeting a ramp-up to 1,200 tonnes per day by the end of the year, at which point the Cusi mine is expected to become self-sustainable and cash flow positive.

Additionally, during the second half of the year, studies will commence on the potential expansion of Cusi.  Work will begin on a new tailing dam near the Mal Paso Mill, providing for tails deposition capacity for the foreseeable future.  Furthermore, infill drilling will take place at the Santa Rosa de Lima, Promontorio, and San Nicolas zones to improve and build on mineral resources at the mine.  Management also believes there is further brownfield potential in areas not previously explored but which are very close to the Santa Rosa de Lima zone such as those announced earlier in this press release.

 

Quality Control

The quality assurance-quality control (QA-QC) program employed by Sierra Metals has been described in detail in the NI-43-101 report for Cusi dated June, 2018, prepared by SRK Consulting in Denver, which is available for review on Sedar (Sections 10 and 11). The lithologies logged are used in combination with the assay data to identify mineralization for the geologic model. Both geochemistry and assays feature the analyses for the primary elements to be reported at Cusi (Au, Ag, Pb, Zn).

 

Qualified Persons

All technical 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 is a Canadian based growing polymetallic mining company with production from its Yauricocha Mine in Peru, and it’s 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 discoveries and still has additional brownfield exploration opportunities at all three mines in Peru and Mexico that are within or close proximity to the existing mines. Additionally, the Company has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The common shares of the Company are listed and posted for trading on the Bolsa de Valores de Lima and on the Toronto Stock Exchange 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:

 

Mike McAllister, CPIR VP, Investor Relations +1 (416) 366-7777 info@sierrametals.com

J. Alonso Lujan Vice President, Exploration +51 630-3100 +52 614-426-0211

Luis Marchese CEO +1 (416) 366-7777

 

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information“). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. 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 the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is 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 such 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.