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Release – Sierra Metals Announces a Measured and Progressive Restart to Operations at Its Yauricocha Mine

Posted on September 28, 2022September 28, 2022 by aweinsoff@channelchek.com

SEPTEMBER 28, 2022

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL or Bolsa de Valores de Lima: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) reports that an agreement has been reached with residents from the town of Alis following the blockade of the main access road to the Yauricocha Mine, operated by the Company’s subsidiary, Sociedad Minera Corona.

Efforts to ensure critical safety and maintenance have been ongoing at the mine throughout the blockade. The safety and well-being of its employees and contractors remains of utmost importance to the Company. Accordingly, safety inspections and reviews are underway to support a safe and progressive restart to the operations at Yauricocha Mine.

Sierra Metals will continue to collaborate with the host communities in its area of influence, in order to promote their development, while supporting long-term, stable operations at the Yauricocha Mine.

At this time, it is not clear when the mine will reach its pre-suspension production levels and as such, production and financial guidance will remain suspended.

About Sierra Metals

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

The Company’s Common Shares trade on the 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

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Forward-Looking Statements

This press release contains forward-looking information within the meaning of Canadian and United States securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management’s expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” 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” or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such 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 16, 2022 for its fiscal year ended December 31, 2021 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928005413/en/

Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Sierra Metals (SMTS) – Estimates Lowered to Reflect Near-Term Operational Challenges and Weaker Commodity Prices

Posted on September 27, 2022September 27, 2022 by cpatches

Tuesday, September 27, 2022

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

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

Activities at Yauricocha mine suspended. Following a mudslide at its underground Yauricocha mine, activities remain suspended and will resume once conditions are deemed safe and appropriate. Following the mudslide incident, a group of residents illegally blocked the main access road and the company, along with local authorities, continue to seek a resolution.

Company financial guidance suspended. Due to the timing uncertainty associated with resolving the road blockage and the restart of production at the mine, Sierra Metals suspended 2022 production and financial guidance.

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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.

Aurania Resources (AUIAF) – Drilling at Tatasham Expected to Commence in the Fourth Quarter

Posted on September 27, 2022September 27, 2022 by cpatches

Tuesday, September 27, 2022

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

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

Mapping program sets up for a productive drilling program. The “Anaconda method” mapping program at the company’s Tatasham and Awacha porphyry copper targets has revealed indications of porphyry-style mineralization at both locations. Highly prospective porphyritic felsic intrusive rock was discovered at Tatasham, while mapping confirmed diorite and other intrusive rock with local hydrothermal breccias in the Awacha target area.

Drilling to commence soon. While the mapping program at Awacha continues, it has been completed at Tatasham. Drilling at Tatasham is expected to begin in the fourth quarter of 2022 followed by Awacha.

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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).

How Do Gold Royalty Companies Work?

Posted on September 27, 2022January 16, 2024 by cpatches

Taking the Mystery Out of Gold Royalty Companies

Investors have many options to gain exposure to gold. They may purchase gold bullion, gold coins, gold exchange-traded funds (ETF) and mutual funds, gold mining companies, or gold futures and options. Publicly traded equities of gold producers and royalty companies may offer an attractive way to invest given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself. While most investors are likely familiar with mining companies and how they operate, royalty companies may be less familiar.

What is a Gold Royalty?

A gold royalty is a contract that gives the owner the right to a percentage of gold production or revenue. Since royalties typically cover the life of a mine, gold royalty companies benefit from the exploration upside that may extend the life of a mine and thus increase the amount of gold or revenue they receive from the mining company at no additional cost.

There are several ways to generate royalties. First, royalty businesses may help finance a development project in exchange for a royalty. Second, a royalty business may purchase existing royalties from third parties, and 3) a royalty company may take a property that they already own, sell it to a mining company, and retain a royalty on the property.

There are several types of royalties. The two most common are NSR and NPI royalties. A net smelter returns (NSR) royalty is an agreement where the mining company agrees to pay the royalty owner a percentage of the revenue, less refining and smelting costs. A net profit interest (NPI) royalty entitles the royalty owner to a percentage of the profit from a mine.

A stream is a purchase agreement that provides the owner of the stream, in exchange for an upfront payment, the right to purchase all or a portion of one or more metals produced from a mine at a negotiated price for the life of the agreement. The negotiated price is generally at a significant discount to the spot price.

Advantages of Owning Equity Shares of a Gold Royalty Company

Compared with investing in gold production companies, royalty businesses generally benefit from low overhead costs, geographically diversified asset portfolios, and exposure to multiple operators. Additionally, they avoid costly exploration expense which is borne by operators while sharing the benefit and upside of exploration investment in properties where they retain a royalty interest. Like mining companies, royalty businesses offer greater leverage to changes in gold prices than investing in bullion. Lastly, royalty businesses generally seek to build portfolios of producing royalties that support dividend payments to shareholders. It is important to keep in mind that revenues increase with rising gold prices, increasing production on its royalty properties, and a growing royalty portfolio, while costs remain relatively fixed and stable. This scenario positions royalty companies to thrive in good markets and weather more challenging sets of circumstances.

As a royalty company grows, it offers the potential for multiple expansion, dividend payments, and the ability to execute larger transactions which could accelerate its growth. Junior royalty companies generally perform well in their early years since they can grow rapidly based on an increasing capacity to transact larger deals. Additionally, junior royalty companies may become attractive acquisition candidates for a larger royalty company seeking to enlarge its royalty portfolio.

Investor Considerations:

It is important for investors to keep several factors in mind when conducting due diligence on prospective royalty company investments. These include: 1) management, 2) asset portfolio, 3) asset quality, 4) jurisdiction, and 5) valuation.

Management

Should you bet on the horse or the jockey? It is important to evaluate management’s history and track record of creating value for shareholders. Does the management team reflect a balance of technical, financial, legal, and capital markets expertise? Is the board of directors comprised mostly of independent directors who provide a diversity of relevant experience and perspectives? Do they articulate clear objectives, and is their business model sound? Most importantly, do they focus on areas they know and employ a disciplined growth strategy, or are they seeking growth at any price?

Asset Portfolio

How is the company’s asset portfolio balanced between royalties that are producing cash flow streams versus royalties that are expected to produce cash flow within five years and/or longer?

Asset Quality

Because royalty companies have little control over the decisions of the mining companies that control the properties on which the royalty interest is held, it is important for investors to evaluate the operators associated with the properties in the royalty portfolio. Are they well-capitalized major mining companies or small start-ups? Additionally, it is helpful to evaluate mineral resource estimates associated with properties in the portfolio and the operators’ plans for development.

Jurisdiction

While geographic diversity is a selling point for most royalty companies, it is often helpful to consult the Fraser Institute’s Annual Survey of Mining Companies to check if royalty interests are in favorable mining jurisdictions versus high-risk areas.

Valuation

Royalty companies are often valued based on price to net asset value. Net asset value is the net present value (NPV) or discounted cash flow (DCF) of all future cash flow of a mining asset, less any debt plus cash. Price to net asset value is the company’s market capitalization divided by the net present value of all mining assets minus net debt. For those that pay a dividend, investors may also compare dividend growth rates and yield. Larger companies generally trade at higher valuation multiples which generally increase with scale due to lower perceived risk due to greater asset diversification and a proven track record of growth. As royalty companies grow, they may be able to establish and grow dividends to shareholders, offer greater liquidity due to listings on major exchanges, and benefit from broader research. Some may also benefit from their inclusion in stock indices. For those that pay a dividend, it is important to know whether the dividend is paid from operating cash flow or whether the company is borrowing to pay the dividend.

Take Away

Investors have many options to gain exposure to gold. Royalty companies may be worth considering as a vehicle for exposure to gold. However, it is important for investors to understand their risk tolerance and return objective. The universe of royalty and streaming companies represents a broad range of market capitalizations, and many differences exist among their asset portfolios. Channelchek offers a starting point for investors to conduct due diligence and dig deeper.

For questions or comments, contact Channelchek.

Sources:

4 Reasons Why We Believe in Royalty Companies

How Precious Metals Royalty and Streaming Companies Create Value

Streaming & Royalty Companies: Mutually Beneficial Arrangements for Everyone, including Investors

Release – Endeavour Silver Continues to Intersect High-Grade Mineralization at the Guanacevi Mine including 3.54 g-t Gold and 1,129 g-t Silver for 1,412 g-t Silver Equivalents over 7.28 meters

Posted on September 26, 2022September 26, 2022 by aweinsoff@channelchek.com

Research, News, and Market Data on EXK

VANCOUVER, British Columbia, Sept. 26, 2022 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) (“Endeavour” or the “Company”) is pleased to report positive drill results from its ongoing drill program at the Guanacevi Mine in Durango state, Mexico. Drilling continues along the prolific Santa Cruz vein in two areas (view Santa Cruz Vein longitudinal section), with the objective to convert, expand, and discover new resources.

The 2022 drill program has continued to focus on the El Curso property, establishing lateral and vertical extents of the mineralized zone between the Porvenir Cuatro and Milache mines. The exploration and exploitation rights to the El Curso property were obtained in 2019 from Ocampo Mining S.A. de CV., and have become an integral contributor to the operation. Recently, under the same agreement terms, the Company has tested the northwest extension of the Porvenir Dos orebody with encouraging results from initial drilling.

Highlights from Recent El Curso Drill Results

3.50 gpt Au and 1,150 gpt Ag for 1,430 gpt AgEq over a 1.16 m ETW, including 12.80 gpt Au and 4,240 gpt Ag for 5,264 gpt AgEq over 0.24 m (UCM-102)
3.54 gpt Au and 1,129 gpt Ag for 1,412 gpt AgEq over a 7.28 m ETW, including 25.40 gpt Au and 7,080 gpt Ag for 9,112 gpt AgEq over 0.43 m (UCM-106)

Highlights from Recent Porvenir Dos Drill Results

1.43 gpt Au and 967 gpt Ag for 1,081 gpt AgEq over a 2.43 m ETW, including 3.64 gpt Au and 5,120 gpt Ag for 5,411 gpt AgEq over 0.23 m (APD-03)
1.60 gpt Au and 1,460 gpt Ag for 1,589 gpt AgEq over a 1.17 m ETW, including 2.91 gpt Au and 3,340 gpt Ag for 3,573 gpt AgEq over 0.25 m (APD-04)

Abbreviations include: gpt: grams per tonne; Au: gold; Ag: silver; ETW: estimated true width; m: metre; HW: hanging wall. Silver equivalents are calculated at a ratio of 80:1 silver:gold.

“We are encouraged by the drill results at Guanacevi, as we continue to delineate high grades in areas which are proximal to the mill and historic working areas. The results announced today demonstrate both growth and steady improvement of the deposit and mine plan,” stated Dan Dickson, Chief Executive Officer. “Our focus remains on delineating mineralized extensions to mining horizons and resource growth.”

Latest Drill Results

The Guanacevi drill results are summarized in the following tables:

Guanacevi – Santa Cruz Vein – El Curso

Hole	Structure	From	To	True Width	Au	Ag	AgEq
(m)	(m)	(m)	(gpt)	(gpt)	(gpt)
UCM-101	Santa Cruz	219.90	221.90	1.10	0.36	101	130
Including	220.55	221.15	0.33	0.29	137	160
UCM-102	Santa Cruz	202.80	205.45	1.16	3.50	1,150	1,430
Including	203.55	204.10	0.24	12.80	4,240	5,264
UCM-103	Santa Cruz	195.00	210.25	6.08	0.97	234	311
Including	208.90	209.35	0.18	5.77	699	1,161
UCM-104	HW Santa Cruz	217.85	221.35	1.25	0.64	310	361
Including	218.55	219.30	0.27	1.12	490	579
UCM-105	Santa Cruz	204.00	210.00	1.80	1.08	508	595
Including	208.45	209.05	0.18	3.06	1,600	1,845
UCM-106	Santa Cruz	202.60	216.15	7.28	3.54	1,129	1,412
Including	208.15	208.95	0.43	25.40	7,080	9,112
UCM-107	Santa Cruz	229.70	232.20	1.32	0.70	123	179
Including	231.50	232.20	0.37	0.62	164	213
UCM-109	Santa Cruz	267.50	269.80	1.01	1.20	521	617
Including	269.30	269.80	0.22	0.93	707	782
UCM-110	Santa Cruz	248.05	253.00	2.47	1.25	321	421
Including	248.95	249.90	0.48	2.43	565	759

Drill holes UCM-108 and UCM-111 returned no significant results

Guanacevi – Santa Cruz Vein – Porvenir Dos

Hole	Structure	From	To	True Width	Au	Ag	AgEq
(m)	(m)	(m)	(gpt)	(gpt)	(gpt)
APD-03	Santa Cruz	286.85	292.60	2.43	1.43	967	1,081
Including	287.85	288.40	0.23	3.64	5,120	5,411
APD-04	Santa Cruz	246.50	248.80	1.17	1.60	1,460	1,589
Including	246.80	247.30	0.25	2.91	3,340	3,573
APD-05	Santa Cruz	190.70	195.05	2.80	1.38	489	599
Including	193.20	193.75	0.35	2.59	943	1,150
APD-06	Santa Cruz	156.05	157.65	1.29	0.34	214	241
Including	157.15	157.65	0.40	0.45	339	375

Drill holes APD-01, APD-02, APD-07 and APD-08 returned no significant results

Notes to Tables

Silver equivalents are calculated at a ratio of 80:1 silver:gold.
All widths are estimated true widths.
No capping has been applied but high-grade intervals have been highlighted.

Qualified Person and Quality Assurance/Quality Control – Dale Mah, P.Geo., Vice President, Corporate Development of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in this news release. A quality control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS Labs, where they are dried, crushed, split and 250-gram pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption finish and silver by aqua regia digestion with ICP finish, over-limits by fire assay and gravimetric finish.

About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal of becoming a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.

Contact Information
Galina Meleger, VP, Investor Relations
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (together, “forward-looking statements”). Such forward-looking statements and information herein include but are not limited to statements regarding future prospects of the Company’s mines and projects. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include but are not limited to the ultimate impact of the COVID 19 pandemic on operations and results, changes in production and costs guidance, national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices, operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development and risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the Securities and Exchange Commission . and available at www.sec.gov, and Canadian securities regulatory authorities available at www.sedar.com.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued exploration and mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Garibaldi Resources Corp (GGIFF) – On the Right Path

Posted on September 23, 2022September 23, 2022 by cpatches

Friday, September 23, 2022

Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in British Columbia and Mexico.

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

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

2022 diamond drill program. The 2022 diamond drill program at the company’s E&L nickel-copper-cobalt project is testing targets from the 2021 Geotech deep penetrating Z-Axis Tipper Electromagnetic (ZTEM) survey. These include several large-scale low resistivity ZTEM anomalies that are within a plane that contains massive and disseminated sulphide zones.

Off to a promising start. The first deep hole completed at Nickel Mountain in 2022, EL-22-97b, intersected two intervals of E&L gabbro more than 200 meters down plunge from previous drilling and intersected nickel-bearing disseminated and semi-massive sulphide mineralization. The mineralization is hosted by gabbro and peridotite 205 meters down-trend of the previous deepest mineralized intercept at E&L on Nickel Mountain. The drill hole targeted the down plunge extension of the eastern zone of the E&L Intrusion, coincident with a large-scale low resistivity/elevated conductivity ZTEM anomaly.

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Defense Metals Corp. (DFMTF) – Diamond Drilling Nearing Completion

Posted on September 23, 2022September 23, 2022 by cpatches

Friday, September 23, 2022

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

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

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

Drilling nearing completion. Defense Metals released results for the first two drill holes, representing 720 meters of drilling, associated with the company’s ongoing 2022 diamond drill program. To date, 15 drill holes, representing 4,800 meters of drilling, have been completed. In aggregate, the company expects to complete 5,000 meters of drilling in 18 holes to upgrade existing resource categories. The company is completing remaining pit slope geotechnical and hydrogeological holes. The initial results were favorable and demonstrate continuity of mineralization over significant widths. Investors should expect a steady flow of assay results from the company in the weeks and months ahead.

Encouraging drill results. Hole WI22-64 returned a broad mineralized intercept of high-grade dolomite carbonate in the upper portions of the hole, and mixed mineralized xenolithic dolomite carbonate and syenite at depth averaging 1.78% total rare earth oxide (TREO) over 192 meters, including 3.13% TREO over 73 meters. The partial assays reported for WI22-64, one of the deepest holes drilled to date, are from surface to a depth of 284 meters. Results for the remaining 101 meters to the end of hole at 384.5 meters are expected shortly. Hole WI22-62 collared 120 meters to the north of WI22-64, intersected a 109-meter interval of mineralized dolomite carbonatite returning 1.39% TREO over 167 meters, including 2.29% TREO over 48 meters.

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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).

Release – Defense Metals Corp. Initial Drilling Results Yield 1.78% Over 192 Metres Total Rare Earth Oxide at Wicheeda; Including 3.13% Over 73 Metres

Posted on September 22, 2022September 22, 2022 by aweinsoff@channelchek.com

Research, News, and Market Data on DFMTF

VANCOUVER, BC, Sept. 22, 2022 /CNW/ – Defense Metals Corp. (“Defense Metals” or the “Company“) ( TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce results for the first two drill holes totalling 720 metres from the Company’s 2022 diamond drill program that is still underway. To date, a total of 15 drill holes totalling 4,800 metres have been completed of a planned 18 holes totalling 5,000 metres (96% complete) designed to upgrade existing resource categories. Drill holes WI22-64 and WI22-62, the first and third holes drilled, were collared from the two sites within the northern area of the Wicheeda Rare Earth Element (REE) deposit.

Figure 1. Drill Section Holes WI22-64 (CNW Group/Defense Metals Corp.)

Figure 2. Drill Section Holes WI22-62 (CNW Group/Defense Metals Corp.)

Infill drill hole WI22-64 (-65^o dip / 204^o azimuth) drilled southwest to depth within central area of the deposit yield a broad mineralized intercept of high-grade dolomite carbonate higher in the hole, and mixed mineralized xenolithic dolomite carbonate and syenite at depth averaging 1.78% total rare earth oxide (TREO) over 192 metres; including 3.13% TREO over 73 metres¹ (Figure 1). The assays reported for WI22-64, one of the deepest holes drilled to date on the Wicheeda Project are partial from surface to a downhole depth of 284 metres. Assay results for the remaining 101 metres to end of hole at 384.5 metres are expected in the coming days.

Drill hole WI21-64 (-50^o dip / 204^o azimuth) collared 120 metres to the north of WI21-64, intersected a 109 metre drilled interval of mineralized dolomite carbonatite above a mixed xenolithic dolomite carbonatite and syenite at depth returning 1.39% TREO over 167 metres; including 2.29% TREO over 48 metres¹ (Figure 2).

Kristopher Raffle, P.Geo. and Director and QP of Defense Metals stated: “We are pleased to have started receiving assays for our ongoing 2022 Wicheeda REE Deposit infill drilling campaign. These initial results compare very favourably to our PEA mineral resource cut-off of 0.5% TREO and continue to demonstrate continuity of mineralization over significant widths. We expect additional results in the coming days, weeks, and months ahead. With the 2022 drill campaign now 96% complete, we look forward to finishing a small number of remaining pit slope geotechnical and hydrogeological holes designed to inform any Preliminary Feasibility Studies.”

Table 1. Wicheeda REE Deposit 2022 Diamond Drill Intercepts

About the Wicheeda REE Property

The 100% owned 4,244-hectare Wicheeda REE Property, located approximately 80 km northeast of the city of Prince George, British Columbia, is readily accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway, and major highways.

The Wicheeda REE Project yielded a robust 2021 preliminary economic assessment technical report (PEA) that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR³. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade flotation-concentrate. The PEA contemplates a 1.8 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life producing and average of 25,423 tonnes REO annually. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and payback of $440 million initial capital within 5 years.

____________________________

³ Independent Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project, British Columbia, Canada, dated January 6, 2022, with an effective date of November 7, 2021, and prepared by SRK Consulting (Canada) Inc. is filed under Defense Metals Corp.’s Issuer Profile on SEDAR (www.sedar.com).

Methodology and QA/QC

The analytical work reported on herein was performed by ALS Canada Ltd. (ALS) at Langley (sample preparation) and Vancouver (ICP-MS fusion), B.C. ALS is an ISO-IEC 17025:2017 and ISO 9001:2015 accredited geoanalytical laboratory and is independent of the Defense Metals and the QP. Drill core samples were subject to crushing at a minimum of 70% passing 2 mm, followed by pulverizing of a 250-gram split to 85% passing 75 microns. A 0.1-gram sample pulp was then subject to multi-element ICP-MS analysis via lithium-borate fusion to determine individual REE content (ME-MS81h). Defense Metals follows industry standard procedures for the work carried out on the Wicheeda Project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate, and standard samples were inserted into the sample sequence sent to the laboratory for analysis. Defense Metals detected no significant QA/QC issues during review of the data.

Qualified Person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE Project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and a “Qualified Person” as defined in NI 43-101. Mr. Raffle verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained therein.

About Defense Metals Corp.

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

Cautionary Statement Regarding “Forward-Looking” Information

This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, statements relating to advancing the Wicheeda REE Project, drill results including anticipated timeline of such results/assays, the Company’s plans for its Wicheeda REE Project, expanded resource and scale of expanded resource, expected results and outcomes, Wicheeda site visit and expected outcomes, the technical, financial and business prospects of the Company, its project and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company’s profile on SEDAR at www.sedar.com. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of personnel, materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological and engineering assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to, the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, loss of key employees, consultants, or directors, increase in costs, delayed drilling results, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

SOURCE Defense Metals Corp.

For further information: Todd Hanas, Bluesky Corporate Communications Ltd., Vice President, Investor Relations, Tel: (778) 994 8072, Email: todd@blueskycorp.ca

Release – Garibaldi Intersects Semi-Massive Nickel Sulphides

Posted on September 22, 2022September 22, 2022 by aweinsoff@channelchek.com

Research, News, and Market Data on GGIFF

VANCOUVER, BC, Sept. 22, 2022 /CNW/ – Garibaldi Resources ( TSXV: GGI) (the “Company” or “Garibaldi“) is pleased to announce that diamond drill-hole EL-22-97b has intersected nickel-bearing disseminated and semi-massive sulphide mineralization. The mineralization is hosted by taxitic and orbicular-textured gabbro and pyroxene peridotite 205 meters down-trend of the previous deepest mineralized intercept at E&L on Nickel Mountain. The drill hole targeted the down plunge extension of the eastern zone of the E&L Intrusion, coincident with a large-scale low resistivity / elevated conductivity ZTEM anomaly identified last season by Geotech’s deep-penetrating ZTEM survey.

Figure 1 – West facing section showing drill trace EL-22-97b which intersected two intervals of E&L gabbro 200m down plunge of previous drilling . Both intersections of gabbro contain sections of well mineralized E&L gabbro with disseminated, blebby, and semi massive sulphide. The gabbro sections occur along the plane of the E&L intrusion coincident with a large scale ZTEM resistivity anomaly more than 3 km in depth. (CNW Group/Garibaldi Resources Corp.)

Garibaldi’s 2022 drill program is focused on testing several large-scale low resistivity ZTEM anomalies within the Company’s 100% owned E&L nickel-copper-cobalt massive sulphide project. E&L mineralization also contains gold, silver, platinum group metals platinum, palladium (PGM’S) together with rhodium, iridium, and ruthenium (collectively termed PGEs). The 180 sq. km. claim group is centered in the heart of the Eskay District within the Golden Triangle of Northwest British Columbia.

The latest intercept is in the plane of the E&L Intrusion, and rests immediately below the Eastern Extension mineralization associated with a differentiated sequence of peridotitic and gabbroic rocks. The complex orbicular textures in the gabbros are characteristic of the E&L Intrusion in both the Eastern Extension and the newly identified root zone ~200m below. The target was drilled as a major step-out from the known intrusion to establish whether a low resistivity ZTEM anomaly beneath E&L corresponds to the plane of additional mineralized segments of the intrusion within the plane of prospective geology. The discovery of mineralized taxitic and orbicular-textured gabbros and pyroxene peridotite expands the potential scale of mineralization well below the previously drill tested 600 x 650 meter plane of the mineralized E&L Intrusion. Most importantly, drill hole EL-22-97b demonstrates the potential for mineralization coincident with the plane of the E&L intrusion at depth within the anomalous zone identified by the ZTEM survey.

Exploration Highlights:

Hole EL-22-97b extends E&L mineralization more than 205 meters down trend from previous drilling. The drill hole was collared 383m downslope from EL-20-91 and 92, and 216m east of and below the adit, cutting through the plane of the E&L Intrusion, allowing for more efficient drilling operations and providing an optimal Bore-hole Electro-Magnetic (BH-EM) platform for surveying.
E&L intrusion rock types were intercepted from 440 – 480m, and 589 – 609m with semi-massive sulphides occurring at 472.2 and 597.3m. Portable XRF measurements taken on these sulphide grains returned 2.8% Ni and 1.1% Ni, respectively. *
The sulphide-bearing rocks of the intrusion plunge for more than 800 meters and remain open beneath the E&L Intrusion.
These intercepts of mineralized E&L type rocks are in the plane of the E&L Intrusion, and coincide with the footprint of the previously modelled ZTEM anomaly, which extends for more than 3 km.
The drill hole was designed to test the plane of the E&L Intrusion at depth below previous drilling and successfully intercepted two intervals of E&L gabbro, which contain sections of disseminated, blebby and semi massive sulphides.
The hole has been lined from top to bottom with PVC to facilitate Borehole Electromagnetic surveys.

Jeremy Hanson, Garibaldi VP-Exploration, stated: “We are very encouraged by the results from EL-22-97b, we took a 200m step-out down plunge and intercepted multiple intervals of mineralized E&L type intrusive rocks with disseminated and semi-massive nickel bearing sulphides. Typically, when we find disseminated and semi-massive sulphides, massive sulphides are not too far away.”

Dr. Peter Lightfoot, Technical Advisor to Garibaldi, stated: “The complex assemblage of taxitic and orbicular-textured gabbros together with olivine pyroxenite encountered in drill hole EL-22-97b indicates that the E&L mineral system extends to depth along the predicted planar path. Significant exploration step-outs to test this plane will greatly improve our efforts to locate extensions of mineral zones using borehole EM methods.”

Nickel Mountain Section

Steve Regoci, Garibaldi CEO stated “This first hole, provides strong support for the proposition that ZTEM responses may represent the expression of a mineralized system. We’re anxious to drill test the deep seated ZTEM targets along the 15km base metal corridor of the NMGC to Mount Shirley for sulphide minerals.”

EL-22-97 was initially collared upslope of the adit at 396390 mE 6271118mN, 1567 masl, at 367°/-70° but failed to progress through difficult ground at 232m. The hole was abandoned well before target depth. EL-22-97b was recollared 213m downslope at 396442 mE, 6270938mN, 1463m masl at 342°/-50°. This hole succeeded to target depth and encountered mineralization at the initial area of interest targeted in EL-22-97.

Quality Assurance/Quality Control (QA/QC)

Garibaldi Resources has applied a rigorous quality assurance/quality control program at the E&L Nickel Mountain Project using best industry practice. All core is logged by a geoscientist and selected intervals sampled. HQ and NQ drill core is sawn in half and each sample half is placed in a marked sample bag with a corresponding sample tag then sealed. The remaining half core is retained in core boxes that are stored at a secure facility in Smithers, British Columbia. Chain of custody of samples is recorded and maintained for all samples from the drill to the laboratory.

All diamond drilling sample batches included 5% QA/QC samples consisting of certified blanks, standards and field duplicates. Multiple certified ore assay laboratory standards and one blank standard were used in the process. Samples were submitted to SGS Canada Inc. in Vancouver, British Columbia, an ISO 9001: 2008 certified lab, for base metal, sulphur and precious metal analysis using Inductivity Coupled Plasma (ICP), Fire Assay (FA) and Leco methods. Samples were prepared by crushing the entire sample to 75% passing 2mm, riffle splitting 250g and pulverizing the split to better than 85% passing 75 microns. Gold, platinum and palladium were analyzed using a 30-gram fire assay and ICP-AES. Total sulphur and total carbon were analyzed using a Leco method. Nickel, copper, cobalt, silver and base metals were analyzed by sodium peroxide fusion and ICP-MS. The performance on the blind standards, blanks and duplicates achieved high levels of accuracy and reproducibility and has been verified by Jeremy Hanson, a qualified person as defined by NI-43-101. *XRF measurements were taken with a Niton XL5. XRF measurements analyze a very small, select section of material approximately 0.16cm²per measurement and results are not representative of the overall rock or material.

Qualified Person & Data Verification

Jeremy Hanson, P.Geo., a qualified person as defined by NI- 43-101, has supervised the preparation of and reviewed and approved of the disclosure of information in this news release. Mr. Hanson has verified the data, including drilling, sampling, test and recovery data, by supervising all of such procedures. There are no known factors that could materially affect the reliability of data collected and verified under his supervision. No quality assurance/quality control issues have been identified to date.

About Garibaldi

We seek safe harbor.

GARIBALDI RESOURCES CORP.

Per: “Steve Regoci”
Steve Regoci, President

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

SOURCE Garibaldi Resources Corp.

For further information: GARIBALDI RESOURCES CORP., 1150 – 409 Granville Street, Vancouver, BC V6C 1T2, Telephone: (604) 488-8851, Website: GaribaldiResources.com

Allegiant Gold (AUXXF) – East Pediment Drilling Highlights Eastside’s Discovery Potential

Posted on September 22, 2022September 22, 2022 by cpatches

Thursday, September 22, 2022

Allegiant owns 100% of 10 highly-prospective gold projects in the United States, seven of which are located in the mining-friendly jurisdiction of Nevada. Three of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

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

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

Reverse Circulation (RC) drilling program. Allegiant completed a 32-hole RC drill program focusing on two areas outside the Original Pit Zone, including the East Pediment and Western Anomaly. Twenty-one holes were drilled on the East Pediment at an average depth of 203 meters and 11 holes were drilled on the Western Anomaly at an average depth of 223 meters. The company will conduct a follow-up RC drill program consisting of approximately 20 holes for a total of 5,000 additional meters of drilling. The rig is expected to arrive on site around October 20.

East Pediment discovery. Drilling on the East Pediment encountered mineralized rhyolite with assays returning values above 0.1 gram of gold per tonne over 51.5 meters of the 242-meter length of Hole ES-258. Intercepts include 86.4 to 93.9 meters averaging 1.3 grams of gold per tonne, including 86.4 to 87.9 meters averaging 4.4 grams of gold per tonne, along with 197 to 229 meters averaging 0.28 grams of gold per tonne. Allegiant intends to drill a grid pattern of offset holes in all directions around Hole ES-258 in late October 2022. The best intercepts associated with the West Anomaly were 34.8 to 45.4 meters averaging 0.93 grams of gold per tonne in Hole ES-268 and 76.7 to 83.8 meters averaging 1.4 grams of gold in Hole ES-264.

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).

Release – Allegiant Makes New Discovery At Eastside’s East Pediment and Stakes Additional Claims

Posted on September 21, 2022September 21, 2022 by aweinsoff@channelchek.com

News, Research, and Market Data on AUXXF

Reno, Nevada /September 21, 2022 – Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is very pleased to announce a new discovery of mineralized rhyolite at the East Pediment, Eastside Project, Tonopah, Nevada. The new discovery has led the Company to stake an additional 194 mining claims in the immediate vicinity near Hole ES-258 within an area of similar geology.

Eastside Project Highlights

Discovery of new mineralization with >0.1 g/t Au over 51.5m including 7.5m averaging 1.3g/t Au
Staking of additional 194 federal lode mining claims near hole ES-258
Follow-up reverse circulation (“RC”) drilling program to commence in October 2022
Ongoing deep diamond drill core program in the Original Pit Zone (“OPZ”)
Project wide airborne magnetic survey to be conducted in < 6 weeks

Peter Gianulis, CEO of Allegiant Gold, commented: “We are excited to have made a new discovery outside of the OPZ at Eastside from this recently completed RC drill program. In continuation to our philosophy that exploration drilling is key to making new discoveries, we were proud to have completed this extended exploration program intended to expand the resource potential at Eastside. The project continues to surprise us, we believe that additional discoveries will be made as we conduct additional exploration including the current 4,000m DDH program upon which we are focused.”

The Company has also staked an additional 194 claims that it believes are of strategic importance in relation to our new discovery (see Map 1).

The OPZ at Eastside presently hosts a current NI 43-101 pit-constrained Inferred resource of 1.1 million ounces of gold and 8.7 million ounces of silver* and is open at depth and to the south, east and west.

Allegiant completed a 31-hole, 7,800 metre RC drill program focusing on two areas outside the OPZ focusing on the East Pediment and Western Anomaly areas. 21 holes were drilled at the East Pediment at an average depth of 203 meters and 11 holes were drilled at the Western Anomaly at an average depth of 223 meters (see Map 2 for additional information). The Company has contracted Boart Longyear to conduct a follow-up RC program consisting of approximately 20 holes for a total of 5000 additional meters. The rig is expected to arrive on site on, or around, October 20, 2022.

Geological Comment

Andy Wallace, Chief Geologist of Allegiant Gold, commented “Allegiant returned to purely exploration drilling for the 2022 RC drilling campaign at Eastside after several years of drilling on the OPZ. To date, exploration targets at Eastside that had been defined by surface sampling, lithologic and alteration mapping, and geophysics, remained untested. The first two of these targets to be tested in 2022 were the East Pediment and the West Anomaly.

The drilling of 21 exploratory holes on the East Pediment focused on resistivity highs identified by CSAMT geophysical surveys; the OPZ is associated with resistivity highs. Most of the East Pediment resistivity highs were associated with dacite plugs which were unmineralized, however one high was formed by rhyolite identical to the principal host rock at the OPZ. This rhyolite was mineralized; assays returned gold values above 0.1 g/t over 51.5 meters of the 242-meter length of drill hole ES-258. Intercepts include: 86.4 to 93.9 meters averaging 1.3 g/t Au, including 86.4 to 87.9 meters averaging 4.4 g/t Au, along with 197 to 229 meters averaging 0.28 g/t Au. The mineralization in this hole is open in all directions with the other nearest drill holes being 500 meters to the northeast and southeast; gold mineralization is also open at depth as the bottom of hole ES-258 returned 4.5 meters averaging 0.25 g/t Au. Allegiant considers this hole to be a new gold discovery that has no offset drilling. The volume and grade of gold mineralization is not yet known and requires follow-up exploration drilling.”

Eleven holes were drilled at the West Anomaly; most of the holes encountered anomalous gold within thick zones of >35 meters of alteration associated with anomalous silver. The best intercepts were 34.8 to 45.4 meters averaging 0.93 g/t Au in ES-268 and 76.7 to 83.8 meters averaging of 1.4 g/t Au in ES-264.

The East Pediment discovery hole opens up a large area for future exploration and the Company is planning to drill a grid pattern of offset holes in all directions around ES-258 in late October 2022. The Company has also contracted an airborne magnetometer survey over the East Pediment, the OPZ, the West Anomaly area and South Zone targets, which have yet to have any drilling; the survey is scheduled to commence within the next six weeks.

Allegiant has also recently staked 194 new federal lode mining claims covering the parts of the pediment interpreted to have shallow overburden. The contiguous Eastside land package now totals 1,252 claims (25,040 acres or approximately 39.1 square miles) stretching from the OPZ south to the Boss/Castle area.

Map 1: Location Map with New Claims
https://allegiantgold.com/site/assets/files/2209/alg_eastsideproject_220920v2.jpg

Map 2: Location of RC drill holes incl ES-258
https://allegiantgold.com/site/assets/files/2209/alg_eastside_project_220919.jpg

* The updated resource estimate (“Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Project Technical Report, Esmeralda County, Nevada”) conducted by Mine Development Associates (“MDA”) of Reno, Nevada, with an effective date of July 30, 2021, contained a pit-constrained Inferred Resources (cut-off grade of 0.15 g/t Au) of 61,730,000 tonnes grading 0.55 g/t Au and 4.4 g/t Ag at the Original Pit Zone (1,090,000 ounces gold and 8,700,000 ounces silver) and 19,986,000 tonnes grading 0.49 g/t Au at the Castle Area (314,000 ounces gold). A copy of the Eastside Technical Report can be found on SEDAR at www.sedar.com.

QUALIFIED PERSON

Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101, Standards of Disclosure for Mineral Projects, who has reviewed and approved the scientific and technical content of this press release.

ABOUT ALLEGIANT

Allegiant owns 100% of 7 highly-prospective gold projects in the United States, 5 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

ON BEHALF OF THE BOARD

Peter Gianulis
CEO

For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com

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

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Allegiant Gold Ltd.’s (“Allegiant”) exploration plans for its gold exploration properties, the drill program at Allegiant’s Eastside project, the preparation and publication of an updated resource estimate in respect of the Original Zone at the Eastside project, Allegiant’s future exploration and development plans, including anticipated costs and timing thereof; Allegiant’s plans for growth through exploration activities, acquisitions or otherwise; and expectations regarding future maintenance and capital expenditures, and working capital requirements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance

Will Europe’s Natural Gas Dilemma Permanently Bring Manufacturing to the U.S.?

Posted on September 21, 2022September 21, 2022 by cpatches

Image Credit: Kateryna Babaieva (Flickr)

Natural Gas Intensive Manufacturing’s Latest Move from Europe to the U.S. is a “No-Brainer”

Is Europe moving manufacturing jobs to the U.S.?

As Russia’s Nord Stream 1 pipeline gas shipments have been curtailed by 89%, and European countries have agreed to sweeping cuts in natural gas consumption, some manufacturing in Europe has had to make difficult decisions. For them to stay in business or to protect profitability, moving to where the supply chain flows more freely may be a choice forced on companies.

The industries most impacted by unpredictable supply and skyrocketing gas prices are those that make steel, fertilizer, chemicals, and other feedstocks. Many of these same industries have been (unintentionally) incentivized to relocate operations to the U.S. by Washington’s growing menu of incentives for manufacturing and green energy. This government support, if their operations comply with certain standards, and the need for stable energy availability has already caused some businesses to cross over to the U.S.

Some economists have suggested that this could bring a new era of deindustrialization to Europe, and industrial jobs to the U.S.

The Decision to Make the Move

This month Ahmed El-Hoshy, chief executive of Amsterdam-based chemical firm OCI NV announced an expansion of an ammonia plant in Texas. “It’s a no-brainer to go and do that in the United States,” El-Hoshy told the Wall Street Journal.

Luxembourg-based ArcelorMittal SA, said this month it would cut production at two German plants, then reported better-than-expected performance by an investment earlier this year in a Texas facility. ArcelorMittal makes hot briquetted iron, a raw material for steel production. In their July earnings call, Chief Executive Aditya Mittal attributed the facility’s value in part to being in a “region that offers highly competitive energy and, ultimately, competitive hydrogen.” The facility that Mr. Mittal moved operations to has plenty of room for growth, Mr. Mittal explained to shareholders they own 100% of expansion rights.

Pandora A/S the Danish Jewelry maker, and Volkswagen AG announced U.S. expansions earlier in 2022. Even U.S. headquartered companies are making changes. Last week, The Wall Street Journal reported Tesla is pausing its plans to make battery cells in Germany as it reviews qualifying for tax credits under a new act signed by President Biden in August.

“We are increasing our investments [in the U.S.] also in order to stay with all of our partners who are investing,” said Stefan Borgas, chief executive of RHI Magnesita NV. The company, which makes materials used by factories such as steelmakers that must withstand intense heat, is spending $8 million on its European plants so that certain processes run on alternative fuel, such as coal or oil meet European guidelines. Borgas has said that they are also very positive about steel demand in the U.S., where incentives have helped pave the way for green-energy changes. Manufacturers like RHI Magnesita see hydrogen as the key to replacing fossil fuels and reducing emissions in plants. Promised spending on projects by Washington is expected to boost the production of hydrogen and eventually lower its price.

Many companies remain cautious about changing their strategies because of the cost, difficulty, and time involved in building projects such as smelters for aluminum production. But they are also realistic about the potential for natural gas to never again flow through the Nord Stream pipeline at levels previously experienced. Those that have decided to relocate are likely not moving operations back, it just wouldn’t be practical. This would lead to a permanent increase in North America for manufacturing requiring energy from natural gas and blue hydrogen produced by natural gas.

Take Away

Industries that rely heavily on natural gas or other products derived from natural gas are having a tough time in Europe. Some have moved operations to North America, and many more are considering the move. Helping to make the decision to locate manufacturing operations in the U.S. comes from the recently signed Inflation Reduction Act, which incentivizes building greener processes. These incentives would hep reduce the cost of building a new plant or factory in the U.S.

Paul Hoffman

Managing Editor, Channelchek

Sources:

https://www.wsj.com/articles/high-natural-gas-prices-push-european-manufacturers-to-shift-to-the-u-s-11663707594?mod=hp_lead_pos3

https://www.wsj.com/articles/europe-checks-its-thermostats-as-russia-crimps-natural-gas-supplies-11658827804?mod=series_europeenergyshortage

https://www.pbs.org/newshour/world/europe-is-facing-an-energy-crisis-as-russia-cuts-gas-heres-why#:~:text=DID%20RUSSIA%20CUT%20OFF%20GAS,a%20pillar%20of%20the%20economy.

https://corporate.exxonmobil.com/climate-solutions/hydrogen#:~:text=What%20is%20blue%20hydrogen%3F,that%20produces%20no%20CO2.

Release – Element79 Gold Confirms Debt Settlement and Promissory Note

Posted on September 20, 2022September 20, 2022 by aweinsoff@channelchek.com

Research, News, and Market Data on ELMGF

Vancouver, BC – TheNewswire – September 19, 2022 – Element79 Gold Corp. ( CSE:ELEM ) ( OTC:ELMGF ) (FSE:7YS) (” Element79 Gold “, the ” Company “) has entered into a debt settlement agreements (the “ Debt Settlement Agreements ”) with certain creditors (the “ Creditors ”) to settle an aggregate indebtedness of $951,166.69 the Creditors accept 1,654,552 Common Shares in the capital of Element79 Gold, subject to a four-month plus one day hold period. The effective date of the Debt Settlement Agreement was initiated on September 15, 2022.

Clarification of Previous Crescita Capital Drawdowns

On August 9, 2022, Element79 Gold entered into a letter agreement (the ” Letter Agreement “) confirming the agreement between Crescita and the Company with respect to the status of certain funds advanced pursuant to an investment and advisory agreement dated September 14, 2020 between the Investor and the Company (the ” Investment and Advisory Agreement “), as amended on May 2, 2022 (” Amendment to Investment and Advisory Agreement “, and together with the Investment and Advisory Agreement, the ” Amended Agreement “). Pursuant to the Amended Agreement, of the funds advanced to the Company during 2021, $2,500,000 have not, to date, resulted in a drawdown of common shares of the Company (” Common Shares “) under the Amended Agreement (the ” Outstanding 2021 Funds “).

The Investor and the Company have agreed that the Outstanding 2021 Funds will be treated as a reduction of the commitment under the Amended Agreement but that no Common Shares will be issued in respect of the Outstanding 2021 Funds and instead such funds shall be deemed to have been loaned to the Company on terms and conditions as set out in the form of the Promissory Note. In addition, to the Outstanding 2021 Funds, Crescita has advanced $950,000 to the Company under the original Investment and Advisory Agreement during 2022, prior to the Amendment to Investment and Advisory Agreement, and Common Shares will be issued in respect of these advanced funds. Since May 2 ^nd, 2022, Crescita has advanced an additional $720,000 under the Amended Agreement but no issuances of Common Shares have yet been made in respect of such advances. The total remaining commitment from Crescita to Element79 Gold amount under the Amended Agreement is $4,830,000.

Details of the Convertible Promissory Note

On July 18, 2022, the Company entered into a loan agreement (the ” Loan Agreement ” ) with Crescita for the principal sum of $2,500,000 (the ” Principal Amount “) via the sale of the Promissory Note. Element79 Gold shall pay interest on the Principal Amount at the rate of 6% per annum, accruing daily and payable in cash, or in shares at the maximum discounted price permitted by the Canadian Securities Exchange (the “Conversion Price”), on the date that is two years from the issue date of the Promissory Note (the “Maturity Date”). At any time after the issue date of the Promissory Note, but prior to the Maturity Date, the Principal Amount and any accrued and unpaid interest may be converted into shares, calculated at the Conversion Price. If any portion of the Principal Amount or any accrued interest remains outstanding fourteen days after the Maturity Date, then Element79 Gold will be required to convert all outstanding amounts into common shares, the total value of which, at the Conversion Price, shall equal the Principal Amount and all accrued and unpaid interest.

“Crescita has been a long-standing working partner, offering strong support for the Element79 Gold story since its inception, and has made tremendous contributions to the growth of the Company via their capital raising capabilities,” stated Mr. Tworek. “Their dedication has assisted Element79 Gold in confidently moving forward with the objective of achieving cash flow generation and self-sufficiency”.

All $ amounts herein are in Canadian dollars unless otherwise noted.

About Element79 Gold

Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent* “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag)) with an effective date of Feb. 4, 2022 (see news release January 31st, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold holds 100% interest in the past producing Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the past producing Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. For more information about the Company, please visit www.element79.gold or www.element79gold.com .

For corporate matters, please contact:

James C. Tworek, Chief Executive Officer

Email: jt@element79gold.com

For investor relations inquiries, please contact:

Investor Relations Department
Phone: +1 (604) 200-3608
Email: investors@element79gold.com

Cautionary Note Regarding Forward Looking Statements

This press contains “forward‐looking information” and “forward-looking statements” under applicable securities laws (collectively, “forward‐looking statements”). These statements relate to future events or the Company’s future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management’s experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the terms of the Offering price and the closing and perceived benefits thereof; the use of proceeds from the Offering; the Company’s plans for its portfolio of mining projects and properties; the Company’s business strategy; repayment and pricing thereof of loan proceeds; the effect on the dilution of the Company upon any repayment or future drawdown of the Amended Agreement; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; any potential future cash flow and the timing thereof; acquisition opportunities; the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward‐looking statements”.

Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company’s other public disclosure documents, available on www.sedar.com . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

Source: Element79 Gold

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

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.