Category: Natural Resources

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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U.S. Rare Earth Mining gets Boost from Government

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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.

 

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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.

 

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Sources:

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

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

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

Picture: Abandoned Russian mining colony in Pyramiden.

Monday, August 24, 2020

Aurania Resources (AUIAF)(ARU:CA)

Near-Term Focus Turns to Copper

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

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

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

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



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










Click to get the full report

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

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

 

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

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

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

Highlights

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

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

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

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

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

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

Table 1

 

Table 2

 

Table 3

 

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

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

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

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

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

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

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

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

Table 4.

 

Table 5.

 

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

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

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

 

 

 

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

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

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

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

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

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

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

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

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

For further information, please contact:

Forward-Looking Statements

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

Tuesday, August 18, 2020

Comstock Mining (LODE)

Laying the Groundwork for Growing Shareholder Value

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

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

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

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


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

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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. 

 

Comstock Mining Extinguishes Senior Secured Debenture Via Favorable Refinancing

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

 

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

 

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

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

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

Contact information for Comstock Mining Inc.:

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

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

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

Monday, August 17, 2020

Sierra Metals (SMTS)(SMT:CA)

Better-Than-Expected Second Quarter; Increasing Estimates

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

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

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

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

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









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

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

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

 

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

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

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

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