AMC Theatres CEO Calls Gold Mining Investment “truly terrific opportunity”




AMC is Thinking Outside the Box Office and Diversifying

 

AMC Entertainment (AMC) has just taken business diversification in a surprising direction. The company known for movie theatres announced that it has taken a 22% stake in a gold and silver mining company. The company, Hycroft Mining Holdings (HYMC), has a 71,000-acre gold mine in Northern Nevada. AMC’s announcement explains that an equal and simultaneous stake in Hycroft was also taken by Eric Sprott. Sprott is a major investment player in gold, silver, and other metals.

 

The Deal

AMC will invest $27.9 million in cash in Hycroft in exchange for 23.4 million warrant units, with each unit consisting of one common share of Hycroft and one common share purchase warrant. The units are priced at $1.193 a share, while each purchase warrant is priced at about $1.07 a share and carries a five-year term. HYMC had been trading in the $0.30 to $0.33 range during the first week of March. As of 10 am the day after the announcement (March 17), HYMC is trading at $1.40 per share.

AMC also was granted the right to appoint someone to Hycroft’s board.

Eric Sprott’s investment was made through a holding company for Sprott, not the alternative investment manager owned by Mr. Sprott, Sprott Inc. The holding company will make an equal investment in Hycroft with the same terms.

Together, AMC and Sprott are investing $56 million in the mining company.

The chairman and CEO of AMC said “Our investment to buy 22% of Hycroft Mining Holding Corporation, and to receive an additional 23.4 million warrants in Hycroft at $1.07 per share is a truly terrific opportunity to potentially strengthen and enrich our company, and thereby create significant value for AMC Entertainment shareholders.It is appealing that the investment requires the commitment of only a nominal amount of AMC cash.”

Diane Garrett, President, CEO and Acting Chairman of Hycroft, commented, “We couldn’t be more

pleased to announce this transformational investment in the future of Hycroft, anchored by Eric Sprott,

one of the world’s leading precious metals investors, and AMC Entertainment Holdings, which has proven its expertise and ability to address liquidity challenges and to raise capital to optimize the value of significant underlying assets.

 

About the Mine

Hycroft Mining Holding Corporation is a US-based gold and silver development company that owns the Hycroft Mine. This is a well-established asset located 54 miles West of Winnemucca, Nevada. The 71,000-acre property (Manhattan, NY is 15,000 acres) is an open-pit leach operation.

According to the company website, the Hycroft mine is one of the world’s largest precious metals deposits. The mineral resources include:

  • Gold – 9.65 million ounces M&I / 5.0 million ounces inferred
  • Silver – 456 million ounces M&I / 150.4 million ounces inferred
  • Gold equivalent – 15.3 million ounces M&I / 6.9 million ounces inferred

Permits are in place for both heap leach and milling operations. There is substantial equipment and infrastructure in place.

Management is focused on transforming Hycroft into a large-scale mining operation by developing a process capable of extracting the large sulfide gold and silver mineral resources on site, in addition to existing oxide processing capabilities.

 

Thinking Outside the Box Office

“To state the obvious, one would not normally think that a movie theatre company’s core competency includes gold or silver mining,” said AMC CEO Adam Aron. The company is using the capital acquired during the meme stock short squeeze climb to strategically help a company in an uncorrelated industry navigate liquidity issues.

This is not the first time AMC has taken an untraditional step. In August of 2021, AMC made the business decision that its theatres would
accept
bitcoin
and three other cryptocurrencies for online ticket sales and concessions.

During the big meme stock trading frenzy, silver had a significant rally that lasted a few days, otherwise precious metals producers have been ignored by the retail investors embracing the r/wallstreetbets style. This announcement may put the significant opportunities in small miners on their radar at a time when resources are top performers.

Channelchek has a wealth of data and in-depth research on small publicly traded companies in the mining sector. Following this link then clicking “Metals & Mining” is an excellent way to become acquainted with North American mining companies and their underlying fundamentals.

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

http://www.hycroftmining.com/wp-content/uploads/03-14-2022-Hycroft-Investment-by-Sprott-and-AMC.pdf

https://investor.amctheatres.com/newsroom/news-details/2022/AMC-Entertainment-Holdings-Inc.-Announces-Significant-Investment-Buying-22-of-Hycroft-Mining-Holding-Corporation/default.aspx

 

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Element79 Gold to Provide Further Insight and Analysis on High-Grade Peruvian Gold Portfolio



Element79 Gold to Provide Further Insight and Analysis on High-Grade Peruvian Gold Portfolio

News and Market Data on Element79 Gold

 

VANCOUVER, BC / ACCESSWIRE / March 17, 2022 / Element79 Gold Corp. (CSE:ELEM)(OTC PINK:ELMGF)(FSE:7YS) (“Element79 Gold“, the “Company“) is pleased to present further insight and analysis on its recently acquired high-grade Peruvian gold portfolios. In a news release dated March 10th, 2022 (or the “Prior Release), The Company announced it signed a Letter of Intent (“LOI) to acquire all of the issued and outstanding securities of Calipuy Resources Inc. (“Calipuy”) and all of its assets and undertakings. Calipuy holds 100% interest in two past-producing high-grade gold-silver mines: The past-producing Lucero Mine (“Lucero”), one of the highest-grade underground mines in Peru’s history(1) at grades averaging 19.0g/t Au Equivalent (“Au Eq”) (14.0 g/t gold and 373 g/t silver)(2), as well as the past-producing Machacala Mine (“Machacala”) which averaged production grades of 10.5 g/t Au Eq (6.0 g/t gold and 340 g/t silver)(5). Operations were suspended in 2005 at Lucero and 1991 at Machacala due to the persistence of low gold and silver prices at the time.

The purpose of this corporate update is to provide a comprehensive discussion and analysis on the strategic reasoning behind the acquisition of the Lucero and Machacala projects, and why Element79 Gold believes that the integration of this new portfolio will help elevate the Company amongst its junior resource exploration peers. Details of the LOI and NSR can be found in the Prior Release. The Prior Release additionally highlights material and technical details of the Lucero and Machacala properties, including a recent 43-101 report on Lucero compiled by Mining Plus.

Diversification of Element79 Gold

Having a portfolio of previously-producing assets that have the near-term potential to be brought back into production provides the Company with a pathway to revenue, which would fund day-to-day administration and offset future exploration and development plans. In completing this acquisition Element79 Gold would now have a well-diversified portfolio of assets including greenfield, advanced 43-101 resource stage, and historic high-grade past- producing mines that have the potential to become producers again in the near term. The cycle of self-reliance and cash flow generation will continue to elevate Element79 Gold to a premiere resource exploration company.

Unique Features of the Lucero and Machacala Past-Producing Mines

Formerly operated as the Shila mine from 1989 to 2005, Lucero consists of 10,805 hectares located in the Shila range of southern Peru, which contains several historic high grade gold-silver mines(1). Lucero consistently delivered high grades during 16 years of operations, and between 1998 and 2004 reported production averaging approximately 18,800 ounces of gold and 435,000 ounces of silver per year at grades of 19.0 g/t Au Eq (14.0 g/t gold and 373 g/t silver),(2) with recoveries at the ore processing facility averaging 94.5% for gold and 85.5% for silver(1).

Infrastructure highlights for the past-producing Lucero Mine include three-phase electrical energy from the national grid that’s available in the town of Chachas 40km from the property. Subject to permitting, surface water is available in streams and small lakes throughout the year. Structures endowed with precious metals have been exploited at Lucero and surrounding areas by artisanal and formal miners over many years. Mining activity targeting high-grade veins is thought to date back to the Inca period(2).

“Lucero offers a rare opportunity to explore for not only an underground high-grade low sulphidation system but potentially an open pit-able high sulphidation system as well,” commented Neil Pettigrew, M.Sc., P.Geo, Director of Element79 Gold. “This past-producing mine has never experienced modern exploration techniques and I am very confident that significant gold-silver resources are to be found.”

The past-producing Machacala mine was first commercially mined in the 1950s before being acquired and operated by Minera Santa Isabel, S.A. from 1979 to 1991 which mined 230,000 metric tonnes averaging 10.5 g/t Au Eq (6.0 g/t Au and 340 g/t Ag) representing 78,000 Au Eq ounces.(6) Operations were suspended in 1991 due to the persistence of a low gold ($360/oz) and silver ($3.81/oz) price.. Machacala hosts multiple low-sulphidation epithermal Au-Ag veins, of which only four have been only modestly exploited.(4)

In addition, Machacala includes 200,000 tonnes of historic, non-43-101 compliant tailings, which were estimated in 1997 by Gold Hawk to contain grades of 1.26 g/t gold and 74 g/t silver.(8) Previous metallurgical studies by Gold Hawk show 87% recoveries of gold and 50%+ recovery of silver in 24 hours of leaching of un-milled tailings, with re-milling able to increase recoveries to 90% of gold and 73% of silver in 24 hours of leaching.(9)

ESG Initiatives

Element79 Gold is committed to the highest levels of corporate governance, and continues to make improvements towards social responsibilities. The Company believes it’s their duty as a global company to be a pioneer in relation to their ESG policies. Over the past few decades, the resource exploration sector has been met with some well-warranted environmental and social criticisms. Our goal is to stop the stigmatization that all resource exploration companies are the same, and that the Company can actually do some “net good”.

Examples of new initiatives is the onboarding of a community ambassador. This person will act as a liaison between the neighbouring communities that the Company will be operating in, and Element79 Gold. This individual will ensure that all local concerns are addressed, and that they will always feel like they have a voice at the table.

Another example will be the hiring of local geologists and operating companies. The purpose of this will be to not only stimulate the local economy and provide jobs for the communities, but to also consider their professional insights as these groups have a lifetime of knowledge to offer Element79 Gold areas that they’re well-familiarized in.

Lastly the Company will look towards commencing philanthropic initiatives such as donating to clean drinking water and other giveback programs in late 2022. These programs will be designed to ensure that Element79 Gold is well integrated to the communities they’ll be working beside.

All gold Equivalent calculations were performed using $1,650/oz gold, and $22/oz silver in line with the Company’s Maverick Springs 43-101 resource estimate, (see news release January 31st, 2022).

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director of Element79 Gold and a “qualified person” as defined by National Instrument 43-101.

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 grading 0.92 Au Eq (0.34 g/t Au and 43.5 g/t Ag) with an effective date of Feb. 4, 2022. 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 has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the 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

Contact Information

For corporate matters, please contact:

James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com

For investor relations inquiries, please contact:

Investor Relations Department
Phone: +1 (604) 200-3608
E-mail: 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 Company’s business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and 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.

Sources

  1. https://web.archive.org/web/20220308020414/https://condorresources.com/portfolio/lucero/
  2. https://web.archive.org/web/20220308020532/https://www.sandstormgold.com/our-royalties/lucero/
  3. https://web.archive.org/web/20220308020649/https://www.sec.gov/Archives/edgar/data/1397970/000118374013000409/f8k08162013ex99-2.htm
  4. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
  5. https://www.bnamericas.com/en/news/Gold_Hawk_Buys_Machala_Project
  6. Gold Hawk Resources Inc News Release, 2004-04-26
  7. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
  8. Gold Hawk Resources Inc News Release, 2004-06-28
  9. Affinity Gold Corp. Corporate Presentation March 2013.

SOURCE: Element79 Gold Corp.

Sierra Metals Reports 2021 Consolidated Financial Results And Announces 2022 Guidance



Sierra Metals Reports 2021 Consolidated Financial Results And Announces 2022 Guidance

Research, News, and Market Data on Sierra Metals

 

CONFERENCE CALL MARCH 17, 2022 – NEW TIME – NOW AT 11:00 AM (EDT)

(All $ figures reported in USD)

  • Revenue from metals payable of $272.0 million in 2021, an increase of 10% from 2020 annual revenue of $246.9 million, largely a result of the increase in realized prices for all metals as compared to 2020;
  • Adjusted EBITDA(1) of $104.7 million for 2021, which is a 2% increase from the adjusted EBITDA of $102.8 million for 2020. The increase in adjusted EBITDA is due to the increase in gross margins at the Yauricocha and Cusi mines;
  • Net loss attributable to shareholders for 2021 was $27.4 million or of $(0.17) per share compared to a net income of $23.4 million or $0.14 per share in 2020. Net losses for the year ended 2021 include a non-cash impairment charge of $35 million related to the Cusi mine;
  • Adjusted net income attributable to shareholders of $21.6 million or $0.13 per share for 2021;
  • Operating cash flows before movements in working capital of $93.4 million for 2021, a 4% decrease from $97.8 million in 2020, due to higher G&A costs in 2021;
  • 2021 consolidated annual ore throughput of 2,902,220 tonnes, an increase of 3% over 2020, mainly driven by the higher throughputs from the Yauricocha and Cusi mines, offset by a decline in the Bolivar annual throughput due to a reduced workforce;
  • Consolidated copper equivalent production of 90 million pounds, a decrease of 24% as compared to 2020, due to a combination of production issues at Bolivar and lower grades at Yauricocha, where a 12% increase in annual throughput at Yauricocha, did not compensate for the lower grades:
  • Consolidated All-In sustaining costs (“AISC”) (1) per copper equivalent pound (2) sold of $3.40 in 2021, or 60% higher than AISC in 2020, driven by higher sustaining capital and the 27% decrease in copper equivalent payable pounds in 2021 compared to 2020;
  • $34.9 million of cash and cash equivalents as at December 31, 2021;
  • Net Debt of $45.9 million as at December 31, 2021.
  • A shareholder conference call to be held Thursday, March 17, 2022, at 11:00 AM (EDT)
    (1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A. (2) Copper equivalent pounds and silver equivalent ounces for Q4 2021 were calculated using the following realized prices: $23.41/oz Ag, $4.40/lb Cu, $1.55/lb Zn, $1.06/lb Pb, $1,795/oz Au. Copper equivalent pounds and silver equivalent ounces for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2021 were calculated using the following realized prices: $25.21/oz Ag, $4.23/lb Cu, $1.37/lb Zn, $1.00/lb Pb, $1,796/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au.

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS) (“Sierra Metals” or the “Company”) today reported revenue of $272.0 million and an adjusted EBITDA of $104.7 million on the throughput of 2.9 million tonnes and metal production of 89.9 million copper equivalent pounds for the year ended December 31, 2021.

The following table displays selected financial and operational information for the three months and year ended December 31, 2021:

Three Months Ended Year Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Operating
Ore Processed / Tonnes Milled

 

590,057

 

 

778,236

 

2,902,220

 

 

2,828,877

Silver Ounces Produced (000’s)

 

805

 

 

922

 

3,527

 

 

3,465

Copper Pounds Produced (000’s)

 

6,071

 

 

10,626

 

31,757

 

 

44,262

Lead Pounds Produced (000’s)

 

6,011

 

 

7,630

 

30,816

 

 

32,972

Zinc Pounds Produced (000’s)

 

14,913

 

 

21,612

 

79,281

 

 

81,868

Gold Ounces Produced

 

1,863

 

 

3,363

 

9,572

 

 

13,771

Copper Equivalent Pounds Produced (000’s)1

 

17,841

 

 

29,267

 

89,926

 

 

118,214

 
Cash Cost per Tonne Processed

$

58.21

 

$

44.42

$

48.69

 

$

40.81

Cash Cost per CuEqLb2

$

2.29

 

$

1.31

$

1.81

 

$

1.13

AISC per CuEqLb2

$

4.13

 

$

2.56

$

3.40

 

$

2.12

 
Cash Cost per CuEqLb (Yauricocha)2

$

1.61

 

$

1.16

$

1.46

 

$

1.01

AISC per CuEqLb (Yauricocha)2

$

3.09

 

$

2.47

$

2.77

 

$

2.11

Cash Cost per CuEqLb (Bolivar)2

$

5.29

 

$

1.35

$

2.18

 

$

1.13

AISC per CuEqLb (Bolivar)2

$

8.58

 

$

2.34

$

4.22

 

$

1.88

Cash Cost per AgEqOz (Cusi)2

$

11.80

 

$

15.70

$

16.71

 

$

16.62

AISC per AgEqOz (Cusi)2

$

21.09

 

$

28.18

$

28.15

 

$

25.26

Financial
Revenues

$

62,240

 

$

76,218

$

272,014

 

$

246,888

Adjusted EBITDA2

$

18,843

 

$

33,725

$

104,732

 

$

102,833

Operating cash flows before movements in working capital

$

15,419

 

$

32,259

$

93,405

 

$

97,757

Adjusted net income attributable to shareholders2

$

5,443

 

$

8,670

$

21,571

 

$

30,817

Net income (loss) attributable to shareholders3

$

(34,716

)

$

7,603

$

(27,363

)

$

23,419

Cash and cash equivalents

$

34,929

 

$

71,473

$

34,929

 

$

71,473

Working capital

$

17,321

 

$

70,885

$

17,321

 

$

70,885

 
(1) Copper equivalent pounds and silver equivalent ounces for Q4 2021 were calculated using the following realized prices: $23.41/oz Ag, $4.40/lb Cu, $1.55/lb Zn, $1.06/lb Pb, $1,795/oz Au. Copper equivalent pounds and silver equivalent ounces for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2021 were calculated using the following realized prices: $25.21/oz Ag, $4.23/lb Cu, $1.37/lb Zn, $1.00/lb Pb, $1,796/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au.
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(3) Net loss attributable to shareholders for Q4 and year 2021 includes an impairment charge of $35.0 million on the Cusi mine.

Luis Marchese, CEO of Sierra Metals, stated:“Despite the unprecedented difficulties of 2021, the Company reported a slight increase to Adjusted EBTIDA of $104.7 million. While consolidated annual ore throughput increased, Yauricocha and Cusi metal production did not fully compensate for the lower throughput and grades at Bolivar, resulting in a marked decline in consolidated copper equivalent production of 24% year over year. We are taking significant steps to improve operations at our Bolivar Mine, including a substantial allocation of 2022 budgeted capital expenditures toward reducing backlog of infill drilling and mine development, improved availability of equipment and controls, detailed review of processes and a thorough review of the current organization. We are focused on Bolivar’s operational turnaround so that it can deliver on its potential, by H2 2022.

He continued, “In addition to an emphasis on operational improvements at Bolivar, the Company is committed to delivering on the goals outlined in its new strategy in Q4 of 2021. A strategic review of Cusi is underway, changes have been made to the organizational structure to better align all operations and achieve goals, and with a heightened focus on ESG, the Company’s inaugural sustainability report is planned for completion in 2022.”

He concluded,“We entered 2022 with a renewed motivation to address major challenges and deliver meaningful returns to our shareholders. COVID-19 safety protocols remain in place and with operations returning to normal, the Company expects to be able to fully catch up and meet its operational and growth initiatives in 2022. Major growth projects at the Yauricocha Mine include the expansion of the tailings dam and sinking of the Yauricocha shaft. At the Bolivar mine, growth will be focused around the expansion of plant capacity and the integration tunnel which will link the mine to the mill, creating efficiencies and cost reduction by eliminating truck haulage of ore to the mill. Both projects are planned for completion by the end of Q4 2022. Additionally, we are committed to continuing to grow our reserve and resource base. An intense infill drilling program is planned for the year and we expect to complete MRMR updates and include the Technical Reports for the Yauricocha and Bolivar Mines in 2022. We are optimistic that these updated reports will provide for expanded reserves and resources at the mines.”

12M 2021 Operating Highlights

Consolidated annual ore throughput of 2,902,220 tonnes, an increase of 3% over 2020, mainly driven by the higher throughputs from the Yauricocha and Cusi mines, offset by a decline in the Bolivar annual throughput.

The Yauricocha mine received its Informe Tecnico Minero (“ITM”) permit in June 2021, allowing for an operating capacity of 3,600 tpd. Achieving the maximum annual permitted capacity, throughput at Yauricocha was 1,256,847 tonnes, or an increase of 12% from the 2020 annual production.

Annual throughput of 295,771 tonnes at Cusi was 28% higher as the mine operated throughout the year, as compared to the year 2020, when almost four months of production was lost during the care and maintenance period resulting from the government mandated shutdown.

The Bolivar mine achieved annual throughput of 1,349,602 tonnes, which was 9% lower than the 2020 throughput, as the mine continued to face manpower issues such as reduced workforce due to COVID and high turnover in middle and senior management.

Consolidated copper equivalent production dropped 24% as compared to 2020 due to the aforementioned production issues at Bolivar and as higher throughput at Yauricocha could not compensate from lower grades during the year. Metal production was higher at Cusi, driven by higher throughput and grades.

Yauricocha’s cash cost per copper equivalent payable pound was $1.46 (2020 – $1.01), and AISC per copper equivalent payable pound of $2.77 (2020 – $2.11).

Bolivar’s cash cost per copper equivalent payable pound was $2.18 (2020 – $1.13), and AISC per copper equivalent payable pound was $4.22 (2020 – $1.88).

Cusi’s cash cost per silver equivalent payable ounce was $16.71 (2020 – $16.62), and AISC per silver equivalent payable ounce was $28.59 (2020 – $25.26).

Click here to review the full details of the Q4 2021 production highlights.

Q4 and 12M 2021 Financial Highlights

Revenue from metals payable of $272.0 million in 2021, an increase of 10% from 2020 annual revenue of $246.9 million. Higher revenue was largely a result of the increase in realized prices for all metals as compared to 2020;

Adjusted EBITDA(1) of $104.7 million for 2021, which is a 2% increase from the adjusted EBITDA of $102.8 million for 2020;

Net loss attributable to shareholders for 2021 was $27.4 million (2020: $23.4 million) or $(0.17) per share (basic and diluted) (2020: $0.14) Net losses for Q4 and the year ended 2021 included an impairment charge of $35.0 million related to the Cusi mine;

Adjusted net income attributable to shareholders (1) of $21.6 million, or $0.13 per share, for 2021 was lower than the adjusted net income of $30.8 million, or $0.19 per share for 2020;

Cash flow generated from operations before movements in working capital of $93.4 million for 2021 was lower than the $97.8 million in 2020, mainly due to higher G&A costs in 2021; and

Cash and cash equivalents of $34.9 million and working capital of $17.3 million as at December 31, 2021 compared to $71.5 million and $70.9 million, respectively, at the end of 2020. Cash and cash equivalents decreased during 2021 as the $70.9 million used in investing activities and $36.9 million used in financing activities exceeded cash generated from operating activities of $71.4 million.

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

Project Development

On August 16, 2021, the Company reported the inclusion of iron ore production in the 10,000 tonnes per day (“tpd”) Preliminary Economic Assessment (“PEA”) for its Bolivar Mine. The updated PEA indicated an incremental benefit of after-tax NPV (@8%) of $78.2 million and IRR of 69.0% versus the NPV of $57.4 million and IRR of 27.9% reported in the original PEA. A National Instrument 43-101 (“NI 43-101”) technical report was filed on SEDAR and with the U.S. Securities and Exchange Commission on September 29, 2021. Click here to review the press release containing highlights of the Bolivar PEA.

After the close of the year, the Company announced positive results of the updated PEA on expansion of its Yauricocha Mine. This updated PEA included the last reported resource dated March 31, 2021 and revised Prefeasibility Study (“PFS”) level operating and capital expenditure. The Technical Report was filed on March 3, 2022. Click here to review the press release containing highlights of the updated Yauricocha PEA.

Exploration Highlights

Peru:

  • During the year, 9,719 meters of surface exploration using diamond drills were carried out in the Kilkasca, El Estacion, Yauricocha Medio, Fortuna and Exito zones. Further, 18,509 meters of underground exploration was completed with the aim of replacing and increasing the mineral resources exploited during the year.

Mexico:

   Bolivar

  • During the year, 19,804 meters of infill drilling program was carried out at Bolivar including 13,072 meters in the El Gallo zone and 4,422 meters in the Bolivar West zone; and
  • 25,260 meters of brownfield exploration was completed in the Bolivar West and La Montura zones.

   Cusi

  • The Infill Drilling program was carried out in the NorthEast and the North-NorthWest system, with the objective to define the continuity and the grades of both systems. 21,059 meters of drilling was completed, including 4,702 meters of definition drilling into these systems with the termite rig; and
  • Brownfield exploration drilling program started at San Juan, San Antonio and Gallo Back veins and 4,703 meters of drilling was completed during the year.

IMPAIRMENT CHARGE

In Q4 2021, the Company announced its increased focus on copper and other steel-making products, including the strategic review process for the silver-producing Cusi Mine in Mexico. As part of this process, the carrying value of Cusi was reviewed. As a result, a non-cash impairment charge of $35 million was recognized for the year ended December 31, 2021.

2022 Guidance

Production Guidance

The year 2021 was a challenging year for the mining operations of the Company due to the decrease in grades at Yauricocha and Bolivar, and availability of ore, as lack of equipment and decrease in manpower impacted development mainly at the Bolivar mine. Despite the COVID related issues, operations at Yauricocha and Cusi are gradually returning to normalcy. However, the Company anticipates that the backlog of ongoing operational challenges at Bolivar will be overcome during the year, leading to much improved production starting Q3 2022. During this period, the Company’s focus will be on increasing the infill drilling and development and the expansion of the plant facility with the objective to gradually achieve an average Q4 2022 throughput rate at Bolivar of 5,600 tpd, as compared to the 3,000 tpd in Q1 2022. With addressing of these development issues in the mine and plant infrastructure expansion, a much-improved performance is anticipated in the second half of the year. In view of this, full year guidance for the year has been split into H1 and H2 2022.

A table summarizing 2022 production guidance has been provided below:

H1 2022 H2 2022 2022 Guidance
Low High Low High Low High
 
Silver (oz)

1,490,500

1,591,500

1,712,000

1,769,000

3,202,500

3,360,500

Gold (oz)

5,000

6,000

10,500

11,500

15,500

17,500

Zinc (000 lbs)

23,500

27,500

25,500

27,000

49,000

54,500

Lead (000 lbs)

8,500

9,500

8,000

8,000

16,500

17,500

Copper (000 lbs)

13,500

16,500

21,000

24,500

34,500

41,000

 
 
Copper equivalent pounds (000’s)(1)

34,000

39,500

45,500

50,100

79,500

89,700

 

(1) Copper equivalent guidance is calculated using the March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

2022 Cost Guidance

A mine by mine breakdown of 2022 production guidance, cash costs and all-in sustaining costs (“AISC”) are included in the table below. All costs are in USD. Cash costs and AISC guidance is shown per copper equivalent payable pound at Yauricocha and Bolivar, and silver equivalent payable ounce at Cusi.

Equivalent Production

Cash cost range per

AISC(2) range per

Range (1)

CuEqLb or AgEqOz

CuEqLb or AgEqOz

 
Yauricocha

Cu Eq Lbs (000s)

45,000 – 49,000 $2.00 – $2.15 $2.90 – $3.10
Bolivar

Cu Eq Lbs (000s)

23,800 – 29,900 $2.15 – $2.30 $3.50 – $3.85
Cusi

Ag Eq Oz (000s)

1,750 – 1,850 $16.45 – $16.50 $22.00 – $23.00
 
 

(1) Copper equivalent guidance is calculated using the March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

(2) AISC includes treatment and refining charges, selling costs, G&A costs and sustaining capital expenditure.

2022 EBITDA Guidance

Consolidated EBITDA Guidance including corporate expenses, at consensus prices(1), is expected to be between $90.0 million and $105.0 million, which is broken down as follows:

EBITDA Range H1 2022 EBITDA Range H2 2022 Full Year EBITDA Range
(Amounts in $M) Low High Low High Low High
 
Yauricocha

22.1

 

26.2

 

30.9

 

33.8

 

53.0

 

60.0

 

Bolivar

3.3

 

5.8

 

31.7

 

36.2

 

35.0

 

42.0

 

Cusi

3.0

 

3.4

 

4.0

 

4.6

 

7.0

 

8.0

 

Corporate

(2.4

)

(2.4

)

(2.6

)

(2.6

)

(5.0

)

(5.0

)

Total

26.0

 

33.0

 

64.0

 

72.0

 

90.0

 

105.0

 

 

(1) March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

2022 Capital Expenditures

A breakdown by mine of the throughput and planned capital investments is shown in the following table:

CAPEX Range (Amounts in $M)
Sustaining Growth Total
 
Yauricocha

12

17

29

Bolivar

23

10

33

Cusi

6

6

Greenfield Exploration

1

1

 
Total

41

28

69

Total sustaining capital for 2022 is expected to be $41.0 million, mainly comprising of mine development ($5.3 million), ventilation infrastructure ($2.5 million) and mine camp ($1.3 million) in Yauricocha, and infill drilling ($5.5 million), mine development ($7.2 million) and tailings dam ($6.9 million) at the Bolivar mine. The intensive infill drilling program of approximately 80,000 meters is planned for the year with the objective of increasing the reserves. Sustaining capital at Cusi is expected to be $6.0 million, including $3.0 million for mine development and the remainder for equipment replacement and tailings dam.

Growth capital for 2022 is projected at $28.0 million. Major growth projects at the Yauricocha mine include tailings dam expansion ($7.7 million), Yauricocha shaft and related integration access ($5.8 million) and exploration ($3.0 million). At the Bolivar mine, growth capital is mainly focused around the afore-mentioned expansion of plant capacity ($6.2 million) and the integration tunnel ($3.5 million), with planned completion of both projects by the end of Q3 2022.

Management will continue to review metal prices and its EBITDA performance throughout the year, while continuing to explore value enhancing opportunities. The management also retains the option to adjust the 2022 capital expenditure plan should business conditions experience any dramatic changes within the year.

Annual SEC Filing completed by Sierra Metals

Sierra Metals has completed its annual SEC filing. Copies of these documents can be found at www.sierrametals.com on the Investors Page under Financial Information. Shareholders may request a hard copy of the complete audited financial statements free of charge upon request.

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Thursday, March 17, 2022, at 11:00 AM (EDT) to discuss the Company’s financial and operating results for the three months and year ended December 31, 2021.

Via Webcast:

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

https://event.on24.com/wcc/r/3574382/FCCE4F2A0F9D10DD9ADA273BDF220BF7

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

Via phone:

For those who prefer to listen by phone, dial-in instructions are below. To ensure your participation, please call approximately five minutes prior to the scheduled start time of the call.

US/CAN dial-in number (Toll Free): 1 844 200 6205
US dial-in number (Local): 1 646 904 5544
Canada dial-in number (Local): 1 226 828 7575
All other locations: +1 929 526 1599
Participant access code: 017137

Press *1 to ask a question, *2 to withdraw your question, or *0 for operator assistance.

Quality Control

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

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 or contact:

Continue to Follow, Like and Watch our progress:

Webwww.sierrametals.com | Twittersierrametals | FacebookSierraMetalsInc | LinkedInSierra Metals Inc | Instagramsierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 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.

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

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

Source: Sierra Metals Inc.

FenixOro Plans Production of Special Edition Gold Coins Mined from Abriaqui



FenixOro Plans Production of Special Edition Gold Coins Mined from Abriaqui

Research, News, and Market Data on FenixOro Gold

 

TORONTO, March 16, 2022 (GLOBE NEWSWIRE) — FenixOro Gold Corp. (CSE: FENX; OTCQB: FDVXF; Frankfurt: 8FD) is pleased to announce plans for production of special edition collectible gold coins using gold mined legally by local miners from veins within the boundaries of the Company’s Abriaqui project.

The origins of gold mining in Colombia date back to the Spanish colonial period. In Abriaqui, gold has been mined and produced legally for generations through mills using water-and-gravity techniques, without the use of chemicals or explosives. Abriaqui sits in an historic area where pride in artisanal mining has been a significant part of the culture and community for over one hundred years. The work of multiple generations of artisanal miners was instrumental in the discovery of many of the more than 140 veins that FenixOro has mapped, sampled and is exploring today. Through the development of strong relationships built over many years, FenixOro enjoys the full support of miners locally and in surrounding areas.

FenixOro CEO John Carlesso commented: “Gold is being produced today at Abriaqui using the same simple, environmentally sound mining methods and recovery techniques that have been employed for generations. The rich history of this region and its unique cultural heritage is recognized around the world. Commemorating these stories on collectible coins is a perfectly suited means to celebrate and benefit our local partners while generating revenue from a strong and growing precious metals specialty market. We are keen to bring this opportunity to market as quickly as possible.”

The global Numismatic (Coin) market is approximately USD 12 Billion in size and according to Professional Coin Grading Services (PCGS) average prices have increased over 16% in the past year as investors have increasingly looked for ways to gain exposure to precious metals such as gold and silver. Collectible coins typically command a premium to the equivalent price of gold.

About FenixOro Gold Corp.
FenixOro Gold Corp is a Canadian company focused on acquiring and exploring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is the closest project to Continental Gold’s Buritica project. It is located 15 km to the west in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are similar. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui resulting in a significant discovery of a high grade, “Buritica style” gold deposit. A Phase 2 drilling program has recently commenced.

FenixOro’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. At the time of its latest public report, the Buritica Mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources Buritica began formal production in November 2020 and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.

Cautionary Statement on Forward-Looking Information
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of FenixOro’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “will”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the closing of the Private Placement, and Abriaqui. Although FenixOro believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. In particular, there is no guarantee that Abriaqui will produce viable quantities of minerals, that the Company will pursue Abriaqui or that any mineral deposits will be found, or that the Private Placement will close. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and FenixOro does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

FenixOro Gold Corp
John Carlesso, CEO
Email: info@FenixOro.com
Website: www.FenixOro.com
Telephone: 1-833-ORO-GOLD

Defense Metals (DFMTF)(DEFN:CA) – Preparing to Take A Leading Role in the North American and Global REE Supply Chain

Wednesday, March 16, 2022

Defense Metals (DFMTF)(DEFN:CA)
Preparing to Take A Leading Role in the North American and Global REE Supply Chain

Noble Capital Markets research on Defense Metals Corp. is published under ticker symbols DFMTF and DEFN:CA. The price target for DFMTF is in USD and the price target for DEFN:CA is in CAD. 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 of Natural Resources, Noble Capital Markets, Inc.

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

    Initiating coverage with an Outperform rating. We are initiating coverage of Defense Metals Corp. with an Outperform rating and a price target of US$0.70 or C$0.90 per share. The company is advancing its 100%-owned Wicheeda rare-earth project located near Prince George, British Columbia. The project has several competitive advantages, including a mining friendly location, well-developed infrastructure, and a strong technical team.

    Well positioned to meet growing demand for REEs.  In January 2022, Defense Metals released a preliminary economic assessment NI 43-101 technical report which highlighted 5.0 million tonnes of indicated resources averaging 2.95% total rare earth oxides (TREO) and 29.5 million tonnes of inferred resources averaging 1.83% TREO within a conceptual pit shell. The study affirmed the economic value of …


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. 

Allegiant Gold (AUXXF)(AUAU:CA) – Gaining Momentum

Tuesday, March 15, 2022

Allegiant Gold (AUXXF)(AUAU:CA)
Gaining Momentum

Allegiant Gold is a mid-stage exploration stage company with 10 highly prospective projects in the southwest United States, including 7 projects in the State of Nevada. Allegiant’s flagship project is Eastside, a district-scale project in Nevada with inferred resources of 1.4 million gold and 8.8 million silver ounces of inferred resources and significant potential to add size and scale. The company’s shares trade on the TSX Venture Exchange under the ticker symbol “AUAU” and on the OTCQX under the ticker symbol “AUXXF.”

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.

    Strategic partnership with Kinross Gold. Allegiant Gold announced a financing and strategic investment by Kinross Gold Corporation (NYSE: KGC, TSX: K) which is expected to accelerate exploration and development activities at Allegiant’s Eastside gold project in Nevada. Upon transaction close, Kinross will own 9.9% of Allegiant’s outstanding shares. Allegiant and Kinross will enter into an investor rights agreement, including the grant of standard anti-dilution and equity participation rights to Kinross. The transaction is subject to certain conditions and is expected to close on or about March 18, 2022.

    Transaction terms.  Kinross executed a C$4,014,414 subscription agreement with Allegiant to acquire 10,036,034 units at C$0.40 per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant may be exercised to purchase one common share at a price of C$0.70 for two years following the closing date …


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. 

Release – Allegiant Gold Announces A C$4.0 Million Strategic Investment By Kinross Gold Corporation For Exploration At The Eastside Property



Allegiant Gold Announces A C$4.0 Million Strategic Investment By Kinross Gold Corporation For Exploration At The Eastside Property

Research, News, and Market Data on Allegiant Gold

 

Reno, Nevada /March 14, 2022 – Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is pleased to announce a C$4,014,404 financing and strategic investment by Kinross Gold Corporation (“Kinross”) (NYSE: KGC, TSX: K) which will accelerate the exploration and development activities at the Eastside property in Nevada. On closing Kinross will own 9.9% of the then issued shares of Allegiant.

Kinross operates the Round Mountain gold mine, located across the valley from Allegiant’s Eastside project. Round Mountain is one of the largest open pit gold mines in the United States.

Peter Gianulis, CEO of Allegiant Gold, commented: “We are very excited to have Kinross as a strategic partner, given their experience and prominent presence in Nevada, and the relative close proximity of their flagship Round Mountain Mine, which shares many similar geological characteristics to Eastside. Allegiant and Kinross have developed an excellent rapport over the years, and we look forward to a productive and collaborative working relationship with them.”

Kinross has entered into a $4,014,414 subscription agreement with Allegiant to acquire 10,036,034 units (the “Units”) in a non-brokered private placement at C$0.40 per Unit with each Unit consisting of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase one Common Share at a price of $0.70 exercisable over two years following the closing date, subject to customary adjustments.

The strategic investment by Kinross calls for the formation of a four-person Technical Advisory Committee comprised of two members from each company. The Technical Advisory Committee will provide advice and guidance on the upcoming core-drilling program at the high-grade zone (“HGZ”) within the Original Pit Zone at Eastside. Allegiant has agreed to allocate no less than 80% of the investment by Kinross to a work program specifically designed for the HGZ.

In connection with the transaction, Allegiant and Kinross will enter into an investor rights agreement providing each party with customary rights, including the grant of standard anti-dilution and equity participation rights to Kinross. The transaction is subject to certain conditions including, but not limited to, acceptance by the TSX Venture Exchange and is expected to close on or about March 18, 2022.

Allegiant has engaged Cormark Securities Inc. as its financial advisor and Stikeman Elliott LLP as its legal advisor in connection with the strategic investment by Kinross.

ABOUT ALLEGIANT

Allegiant owns 100% of ten highly-prospective gold projects in the United States, seven 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.Forward-looking statements in this press release include, without limitation: statements pertaining to Allegiant Gold Ltd.’s (“Allegiant”) exploration plans for its gold exploration properties and the drill program at Allegiant’s Eastside project; and statements pertaining to the proposed private placement transaction with Kinross Gold Corporation (including the timing of completion thereof). 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 on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the section entitled “Risk Factors” in Allegiant’s Annual Information Form dated June 11, 2021, as filed with applicable Canadian securities regulators and available on SEDAR under Allegiant’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. Allegiant undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

Allegiant Gold Announces A C$4.0 Million Strategic Investment By Kinross Gold Corporation For Exploration At The Eastside Property



Allegiant Gold Announces A C$4.0 Million Strategic Investment By Kinross Gold Corporation For Exploration At The Eastside Property

Research, News, and Market Data on Allegiant Gold

 

Reno, Nevada /March 14, 2022 – Allegiant Gold Ltd. (“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is pleased to announce a C$4,014,404 financing and strategic investment by Kinross Gold Corporation (“Kinross”) (NYSE: KGC, TSX: K) which will accelerate the exploration and development activities at the Eastside property in Nevada. On closing Kinross will own 9.9% of the then issued shares of Allegiant.

Kinross operates the Round Mountain gold mine, located across the valley from Allegiant’s Eastside project. Round Mountain is one of the largest open pit gold mines in the United States.

Peter Gianulis, CEO of Allegiant Gold, commented: “We are very excited to have Kinross as a strategic partner, given their experience and prominent presence in Nevada, and the relative close proximity of their flagship Round Mountain Mine, which shares many similar geological characteristics to Eastside. Allegiant and Kinross have developed an excellent rapport over the years, and we look forward to a productive and collaborative working relationship with them.”

Kinross has entered into a $4,014,414 subscription agreement with Allegiant to acquire 10,036,034 units (the “Units”) in a non-brokered private placement at C$0.40 per Unit with each Unit consisting of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase one Common Share at a price of $0.70 exercisable over two years following the closing date, subject to customary adjustments.

The strategic investment by Kinross calls for the formation of a four-person Technical Advisory Committee comprised of two members from each company. The Technical Advisory Committee will provide advice and guidance on the upcoming core-drilling program at the high-grade zone (“HGZ”) within the Original Pit Zone at Eastside. Allegiant has agreed to allocate no less than 80% of the investment by Kinross to a work program specifically designed for the HGZ.

In connection with the transaction, Allegiant and Kinross will enter into an investor rights agreement providing each party with customary rights, including the grant of standard anti-dilution and equity participation rights to Kinross. The transaction is subject to certain conditions including, but not limited to, acceptance by the TSX Venture Exchange and is expected to close on or about March 18, 2022.

Allegiant has engaged Cormark Securities Inc. as its financial advisor and Stikeman Elliott LLP as its legal advisor in connection with the strategic investment by Kinross.

ABOUT ALLEGIANT

Allegiant owns 100% of ten highly-prospective gold projects in the United States, seven 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.Forward-looking statements in this press release include, without limitation: statements pertaining to Allegiant Gold Ltd.’s (“Allegiant”) exploration plans for its gold exploration properties and the drill program at Allegiant’s Eastside project; and statements pertaining to the proposed private placement transaction with Kinross Gold Corporation (including the timing of completion thereof). 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 on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the section entitled “Risk Factors” in Allegiant’s Annual Information Form dated June 11, 2021, as filed with applicable Canadian securities regulators and available on SEDAR under Allegiant’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. Allegiant undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

Endeavour Silver (EXK)(EDR:CA) – Keeping an Eye on Terronera

Friday, March 11, 2022

Endeavour Silver (EXK)(EDR:CA)
Keeping an Eye on Terronera

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

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

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

    Fourth quarter and full year 2021 results. Endeavour reported adjusted fourth quarter and full year 2021 losses per share of $(0.00) and ($0.05) per share, respectively, compared to fourth quarter and full year 2020 EPS of $0.13 and $0.01. We had forecast fourth quarter earnings of $0.03 per share and a full year loss of $(0.01) per share. Adjusted fourth quarter and full year EBITDA were $11.5 million and $36.0 million, respectively. While revenue was largely in line with our estimates, costs were higher. At quarter end, Endeavour held 1,028,340 ounces of silver and 1,044 ounces of gold in bullion inventory, and 54,270 ounces of silver and 2,630 ounces of gold in concentrate inventory.

    Updating estimates.  We are maintaining our 2022 and 2023 EPS estimates of $0.14 and $0.16, respectively. We forecast 2022 and 2023 EBITDA of $57.5 million and $67.9 million, respectively. While we had previously assumed the company sells down its inventory in 2022, the timing could accelerate within quarters due to recent strength in commodity prices …


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

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

Release – Comstock Releases Shareholder Letter 20220310



Comstock Releases Shareholder Letter

Research, News, and Market Data on Comstock Mining

 

Company’s Cellulosic Fuels Technologies Unlock Massive New Feedstock Model for Net Zero Energy Independence

VIRGINIA CITY, NEVADA, MARCH 10, 2022 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced that its executive chairman and chief executive officer issued the following shareholder letter.

Dear Shareholders:

On behalf of our Board of Directors, our employees, and partners, we thank each of you for participating in a pivotal year for Comstock, in which we completed a series of strategic transactions that acquired intellectual property, management, employees, and the facilities needed to transform our business and establish a platform of breakthrough renewable energy products. We have aligned on a precise goal, and we are eager to summarize our business plans and our outlook for you, here and now.

The Comstock

The Comstock Lode is one of world’s most important mineral discoveries. It has a rich history, steeped in grit and innovation. Its pioneers innovated new technologies and mined over $20 billion in gold and silver (in today’s dollars), infusing extraordinary wealth into America’s burgeoning economy at the dawn of the industrial revolution. We have been proud to inherit and contribute to that legacy throughout our own history, as we enabled an unprecedented consolidation and operation of the historic Comstock Lode mining district, including 10-square miles of land with many miles of known mineral claims and exploration targets. We mined and produced about 60,000 ounces of gold and 735,000 ounces of silver from just one of those targets between 2012 and 2016. We believe that far more remains, a bonanza with billions of dollars of gold and silver, unavailable to the century-old mining practices of our predecessors. Our strategic partners are working to unlock that value.

Accordingly, we shifted our focus during 2020 and 2021 to new investments in renewable energy, where we have differentiated technology and core competencies, while monetizing our non-strategic assets. Our objectives are to maximize the value from our mineral estate while introducing breakthrough, decarbonizing lines of business with the capacity for rapid growth.

Enabling Systemic Decarbonization – Cellulosic Fuels

Renewable fuels provide a critical pathway for decarbonization, however, most current forms of renewable fuel draw from the same pool of conventional feedstocks, including corn and various vegetable oils in the U.S., and the entire universe of those feedstocks only represents a tiny fraction of the global motor fuel burn. Further, the lifecycle carbon benefits of growing, harvesting, and using conventional feedstocks are extremely limited, even in comparison to fossil fuels. Any plan to meaningfully decarbonize using renewable fuels must involve abundant and available feedstocks that no one else is using today.

Our renewable fuels division, Comstock Fuels, acquired a portfolio of pioneering technologies that resolve conventional feedstock limitations by efficiently converting wasted, unused, widely available, and rapidly replenishable woody biomass into advanced cellulosic fuels.  These technologies unlock vast quantities of historically unused and underutilized feedstocks with enough renewable carbon to permanently offset billions of tons of fossil fuel emissions.

According to the U.S. Department of Energy, America can produce upwards of one billion tons per year of biomass feedstock for renewable fuels. That’s enough to produce 1.7 billion barrels of carbon neutral fuels with our technologies, or more than a third of the U.S. transportation demand.  In addition, more than 27% of American soil, or about 540 million acres, is comprised of forestland that was previously more than twice as large, before being clear cut for less productive uses. Those under-utilized resources could be restored and used to sustainably grow, harvest, and replant billions of tons of fast-growing trees and energy crops for conversion into billions of barrels of renewable fuels with our technologies. The combined output could exceed 50% of America’s current annual output of fossil crude, and it’s 100% renewable. Canada has even more. It’s the equivalent of an oil well that will never run dry, a bonanza hidden in plain sight, and our technologies are effectively the drill.

Enabling Systemic Decarbonization – Electrification Products

Electrification and continued advancements in energy storage are vitally necessary to reduce reliance on fossil fuels while shifting to and increasing use of renewable fuels. Our 90% owned lithium-ion battery (“LIB”) recycling business, LiNiCo Corporation (“LiNiCo”), holds the rights to a portfolio of innovative processes that efficiently crush and separate LIBs, extract lithium, nickel, cobalt, and graphite, and reuse the recovered metals to produce 99% pure cathode active precursor products. Collectively, these technologies give LiNiCo, and its existing 137,000 square foot battery metal recycling facility, differentiating competitive advantages, including the ability to process upwards of 100,000 tons of LIB and related feedstocks per year into an array of electrification products, including lithium, nickel, cobalt, graphite, and cathode materials.

According to International Energy Agency (“IEA”), there were more than 10 million electric vehicles (“EVs”) on the road in 2020, with new EV registrations increasing by 41% over 2019 and another 140% during the first quarter of 2021. Meeting the increased EV demand is estimated to require about five times more lithium carbonate equivalent (“LCE”) than the entire lithium mining industry produces today. Miners and manufacturers can scale up to meet that demand, however, according to a January 2021 USGS mineral commodity summary, there are only about 86 million tons of identified lithium reserves worldwide, and LIBs are typically landfilled after eight to ten years of useOur technologies meet the realities of that demand by enabling profitability at the earliest stages of production, thereby positioning our LIB recycling business to contribute billions to our enterprise value from LiNiCo based on existing valuations of comparable public companies.

Our Outlook – A Net Zero Carbon World

This is our new platform for growth. We will innovate and commercialize technologies that contribute to global decarbonization and net zero circularity by efficiently converting natural resources, including wasted and unused materials, into valuable renewable energy products that shift supply chains away from and reduce reliance on fossil fuels. We will also lead and support the adoption and growth of a balanced net zero ecosystem based on the feedstocks unlocked by our technologies, with powerful embedded economic incentives for our clients, their industries, and the populations they serve to decarbonize.

We will rapidly achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. Our goal is to generate over $16 billion in revenue on an annualized basis by 2030, by producing and selling renewable energy products that enable us, our clients, and their downstream stakeholders to reduce greenhouse gas emissions by at least 100 million metric tons per year. Meeting that objective would offset more than 234 million barrels per year of fossil fuel, or about 6% of the U.S. transportation burn, and require an estimated 8% of the existing biomass residues produced annually in the U.S.

Such scales are achievable by tapping into and leveraging existing infrastructure. Our expanded team has extensive experience in the renewable fuels industry, having designed and built several dozen renewable fuel production facilities in the U.S. Notably, our team invented and commercialized pioneering processes used by more than 95% of the U.S. corn ethanol industry to produce distillers corn oil, a value-added feedstock that offsets more than 20 million barrels of fossil fuel per year and has played a disruptive role in the growth and development of the renewable fuels industry.

We have already made remarkable progress. We are currently building commercial pilot scale cellulosic fuels and LIB facilities, and we are preparing to commence operations at our full-scale LIB recycling facility later this year. We have also made significant strides in developing and establishing our new facilities and forging new revenue and licensing streams that we will soon share. We have also made meaningful progress and will complete the monetization of our non-strategic assets, as quickly as possible, while funding our new businesses and limiting our focus to the objectives outlined above.

The Comstock Lode’s history of relentless grit and innovation and pioneering and prospecting against all odds will always be part of our identity. Moving forward, we will drop the word “mining” from our name and rebrand the company as “Comstock” to reflect our new mission of enabling systemic decarbonization. Additional information in that regard will be made available in the coming weeks as we launch our new website and file our Form 10-K for our fiscal year ended December 31, 2021.

We look forward to our next communication and seeing those of you that can attend this year’s Annual General Meeting, on May 26, 2022, where we plan on showcasing our renewable energy businesses, employees, and partners, including the results of our business plans, schedules, and near-term revenues. Until then, thank you for your continued interest and support.

Kindest regards,
Corrado De Gasperis
Executive Chairman and Chief Executive Officer
Comstock Mining Inc.

 

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by shifting the consumption patterns of industries and populations. The Company’s technologies are designed to do so by efficiently converting wasted and unused natural resources into valuable renewable energy products, which the Company intends to use to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral natural resource extraction and refining facilities, by selling an array of complementary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future changes in our research and development; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in reports that we file with the Securities and Exchange Commission, including Item 1A, “Risk Factors” in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q, and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with mercury remediation, metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

Neither this press release nor any related call or discussion constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

 

 

 

Contact information:
Comstock Mining Inc.
P.O. Box 1118
Virginia City, NV 89440
ComstockMining.com
Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com
Zach Spencer
Director of External Relations
Tel (775) 847-5272 Ext.151
questions@comstockmining.com

Release – Defense Metals Corp. Drills 2.50 Total Rare Earth Oxide Over 176 Metres



Defense Metals Corp. Drills 2.50% Total Rare Earth Oxide Over 176 Metres; Including 6.14% Over 20 Metres From Surface at Wicheeda

News, and Market Data on Defense Metals

 

News Release – Vancouver, British Columbia –March 10, 2022:Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce results for an additional four diamond drill holes totalling 615 metres from the Company’s 29 hole, 5,349 metre diamond drill program completed during fall 2021. Drill holes WI21-45 through WI21-48 were collared from the same site and within the northern area of the Wicheeda Rare Earth Element (REE) deposit.

Drill hole WI21-48 returned 2.50% TREO (total rare earth oxide) over 176 metres; including 6.14% TREO over 20 metres from surface[1]The drill hole terminated on the east side of the deposit 30 metres beyond the mineral resource block model.

The Company continues to receive additional assay results from the 2021 Wicheeda REE Deposit resource expansion and delineation campaign that will be released in the next days and weeks.

Luisa Moreno, President, and Director of Defense Metals commented: “Drilling within the north central area of the Wicheeda Deposit has returned some of our most significant intercepts of REE mineralization on a grade X width basis in WI21-48 while also yielding some of the highest grade REE mineralization to date near surface.”

Delineation drill holes WI21-45 (-75o dip / 240o azimuth) and WI21-47 (-45o dip / 145o azimuth) established the northwest margin of the Wicheeda Deposit in the near surface intercepting mixed syenite and xenolithic carbonatite rocks above resource cut-off grade averaging 1.46% TREO over 116 metres; including 2.27% TREO over 42 metres1; and 0.58% TREO over 81 metres1, respectively (Table 1 and Figure 1).

Infill drill holes WI21-46 (-50o dip / 190o azimuth) and WI21-48 (-60o dip / 280o azimuth) targeting the north central area of the depositboth yielded broad REE mineralized dolomite carbonatite interceptsconsistent with nearby drill holes. WI21-46 drilling southwest and exiting the interpreted structural footwall of the deposit returned 1.66% TREO over 116 metres; including 2.27% TREO over 42 metres, and 2.32% TREO over 18 metres1Drilling southeast WI21-48 returned 2.50% TREO over 176 metres; including 6.14% TREO over 20 metres1from surface (Figure 2).

Table 1. Wicheeda REE Deposit 2021 Diamond Drill Intercepts

Hole ID From (m) To (m) Interval (m) TREO[2] (%) Ce2O(%) La2O(%) Nd2O(%) Pr2O(%) Sm2O(ppm) Gd2O3 (ppm) Eu2O3 (ppm) Dy2O3 (ppm) Tb4O7 (ppm) Ho2O3 (ppm)
WI21-45 (240/-75) 47.8 106.9 59.1 1.46 0.67 0.51 0.17 0.06 230 134 83 43 13 6
including 47.8 74 26.2 2.48 1.13 0.88 0.29 0.10 384 225 151 67 21 8
WI21-46 (190/-50) 18.9 135.3 116.4 1.66 0.80 0.56 0.20 0.06 229 108 47 28 9 3
including 48 90 42 2.27 1.09 0.79 0.25 0.09 271 112 48 22 8 2
including 117.55 135.3 17.75 2.32 1.12 0.74 0.30 0.09 350 170 75 42 14 5
WI21-47 (280/-60) 17 98.36 81.36 0.58 0.28 0.18 0.08 0.02 108 67 30 29 7 4
WI21-48 (145/-45) 12 188 176 2.50 1.22 0.84 0.29 0.10 306 130 57 27 10 3
including 12 32 20 6.15 2.98 2.11 0.69 0.24 669 311 142 80 25 9
WI21-33 (350/-80) 5.00 201.00 196 3.17 1.52 1.07 0.37 0.13 382 181 81 42 14 4
including 5.00 55.25 50.25 3.63 1.74 1.26 0.41 0.14 396 181 84 52 16 6
including 146.00 201.00 55.00 4.29 2.07 1.48 0.47 0.17 489 232 112 52 18 5
WI21-34 (040/-55) 3.00 117.00 114.00 2.97 1.46 1.02 0.33 0.11 323 134 58 23 9 2
including 3.00 70.00 67.00 3.84 1.89 1.34 0.41 0.15 379 160 69 29 11 3
WI21-35 (080/-55) 1.20 121.00 119.80 3.87 1.87 1.34 0.43 0.15 434 200 88 52 17 6
WI21-36 (108/-80) 1.10 174.00 172.90 2.34 1.14 0.78 0.27 0.09 293 134 59 35 11 4
including 1.10 35.65 34.55 3.45 1.66 1.21 0.38 0.13 374 170 72 37 13 4
including 136.00 174.00 38.00 3.02 1.46 1.05 0.33 0.12 337 157 68 40 13 4
WI21-37 (108/-45) 2.00 139.85 137.85 3.19 1.56 1.10 0.35 0.12 351 144 66 30 11 3
including 2.00 57.00 55.00 4.00 1.96 1.38 0.42 0.15 427 164 76 35 12 3
WI21-38 (220/-70) 1.35 82.00 80.65 3.08 1.50 1.07 0.33 0.12 346 154 70 40 13 4
including 1.35 24.75 23.4 6.01 2.91 2.14 0.62 0.23 607 246 114 60 20 6
WI21-39 (285/-60) 4 114 110 2.62 1.28 0.87 0.30 0.10 320 158 73 42 13 5
and 114 224.8 110.8 0.72 0.35 0.21 0.10 0.03 129 75 31 30 8 4
WI21-40 (345/-65) 2.75 165 162.25 3.23 1.57 1.11 0.36 0.13 370 158 70 39 13 4
including 2.75 47.5 44.75 4.21 2.05 1.46 0.46 0.16 452 197 92 61 18 7
including 96 167 71 3.67 1.79 1.26 0.41 0.14 411 173 75 35 13 3
WI21-43 (045/-85) 10.75 124.1 113.35 0.55 0.26 0.17 0.07 0.02 121 84 33 35 9 5
WI21-44 (240/-60) 17.5 125.6 108.1 1.72 0.83 0.57 0.20 0.07 266 141 69 47 14 6
including 35 89 54 2.59 1.24 0.87 0.29 0.10 384 205 102 70 20 9

[1] The true width of REE mineralization is estimated to be 70-100% of the drilled interval.

[2]TREO % sum of CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3 and Ho2O3.

Figure 1. Drill Section Holes WI21-45, WI21-47, and WI21-48

Figure 2. Drill Section Holes WI21-38, WI21-40, and WI21-46

About the Wicheeda REE Property

The 100% owned 2,008-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 PEA that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR[1]. 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.

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.

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”.

For further information, please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.

Vice President, Investor Relations

Tel: (778) 994 8072

Email: todd@blueskycorp.ca

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, 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 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.


[1] 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).

Defense Metals Corp. Drills 2.50% Total Rare Earth Oxide Over 176 Metres; Including 6.14% Over 20 Metres From Surface at Wicheeda



Defense Metals Corp. Drills 2.50% Total Rare Earth Oxide Over 176 Metres; Including 6.14% Over 20 Metres From Surface at Wicheeda

News, and Market Data on Defense Metals

 

News Release – Vancouver, British Columbia –March 10, 2022:Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce results for an additional four diamond drill holes totalling 615 metres from the Company’s 29 hole, 5,349 metre diamond drill program completed during fall 2021. Drill holes WI21-45 through WI21-48 were collared from the same site and within the northern area of the Wicheeda Rare Earth Element (REE) deposit.

Drill hole WI21-48 returned 2.50% TREO (total rare earth oxide) over 176 metres; including 6.14% TREO over 20 metres from surface[1]The drill hole terminated on the east side of the deposit 30 metres beyond the mineral resource block model.

The Company continues to receive additional assay results from the 2021 Wicheeda REE Deposit resource expansion and delineation campaign that will be released in the next days and weeks.

Luisa Moreno, President, and Director of Defense Metals commented: “Drilling within the north central area of the Wicheeda Deposit has returned some of our most significant intercepts of REE mineralization on a grade X width basis in WI21-48 while also yielding some of the highest grade REE mineralization to date near surface.”

Delineation drill holes WI21-45 (-75o dip / 240o azimuth) and WI21-47 (-45o dip / 145o azimuth) established the northwest margin of the Wicheeda Deposit in the near surface intercepting mixed syenite and xenolithic carbonatite rocks above resource cut-off grade averaging 1.46% TREO over 116 metres; including 2.27% TREO over 42 metres1; and 0.58% TREO over 81 metres1, respectively (Table 1 and Figure 1).

Infill drill holes WI21-46 (-50o dip / 190o azimuth) and WI21-48 (-60o dip / 280o azimuth) targeting the north central area of the depositboth yielded broad REE mineralized dolomite carbonatite interceptsconsistent with nearby drill holes. WI21-46 drilling southwest and exiting the interpreted structural footwall of the deposit returned 1.66% TREO over 116 metres; including 2.27% TREO over 42 metres, and 2.32% TREO over 18 metres1Drilling southeast WI21-48 returned 2.50% TREO over 176 metres; including 6.14% TREO over 20 metres1from surface (Figure 2).

Table 1. Wicheeda REE Deposit 2021 Diamond Drill Intercepts

Hole ID From (m) To (m) Interval (m) TREO[2] (%) Ce2O(%) La2O(%) Nd2O(%) Pr2O(%) Sm2O(ppm) Gd2O3 (ppm) Eu2O3 (ppm) Dy2O3 (ppm) Tb4O7 (ppm) Ho2O3 (ppm)
WI21-45 (240/-75) 47.8 106.9 59.1 1.46 0.67 0.51 0.17 0.06 230 134 83 43 13 6
including 47.8 74 26.2 2.48 1.13 0.88 0.29 0.10 384 225 151 67 21 8
WI21-46 (190/-50) 18.9 135.3 116.4 1.66 0.80 0.56 0.20 0.06 229 108 47 28 9 3
including 48 90 42 2.27 1.09 0.79 0.25 0.09 271 112 48 22 8 2
including 117.55 135.3 17.75 2.32 1.12 0.74 0.30 0.09 350 170 75 42 14 5
WI21-47 (280/-60) 17 98.36 81.36 0.58 0.28 0.18 0.08 0.02 108 67 30 29 7 4
WI21-48 (145/-45) 12 188 176 2.50 1.22 0.84 0.29 0.10 306 130 57 27 10 3
including 12 32 20 6.15 2.98 2.11 0.69 0.24 669 311 142 80 25 9
WI21-33 (350/-80) 5.00 201.00 196 3.17 1.52 1.07 0.37 0.13 382 181 81 42 14 4
including 5.00 55.25 50.25 3.63 1.74 1.26 0.41 0.14 396 181 84 52 16 6
including 146.00 201.00 55.00 4.29 2.07 1.48 0.47 0.17 489 232 112 52 18 5
WI21-34 (040/-55) 3.00 117.00 114.00 2.97 1.46 1.02 0.33 0.11 323 134 58 23 9 2
including 3.00 70.00 67.00 3.84 1.89 1.34 0.41 0.15 379 160 69 29 11 3
WI21-35 (080/-55) 1.20 121.00 119.80 3.87 1.87 1.34 0.43 0.15 434 200 88 52 17 6
WI21-36 (108/-80) 1.10 174.00 172.90 2.34 1.14 0.78 0.27 0.09 293 134 59 35 11 4
including 1.10 35.65 34.55 3.45 1.66 1.21 0.38 0.13 374 170 72 37 13 4
including 136.00 174.00 38.00 3.02 1.46 1.05 0.33 0.12 337 157 68 40 13 4
WI21-37 (108/-45) 2.00 139.85 137.85 3.19 1.56 1.10 0.35 0.12 351 144 66 30 11 3
including 2.00 57.00 55.00 4.00 1.96 1.38 0.42 0.15 427 164 76 35 12 3
WI21-38 (220/-70) 1.35 82.00 80.65 3.08 1.50 1.07 0.33 0.12 346 154 70 40 13 4
including 1.35 24.75 23.4 6.01 2.91 2.14 0.62 0.23 607 246 114 60 20 6
WI21-39 (285/-60) 4 114 110 2.62 1.28 0.87 0.30 0.10 320 158 73 42 13 5
and 114 224.8 110.8 0.72 0.35 0.21 0.10 0.03 129 75 31 30 8 4
WI21-40 (345/-65) 2.75 165 162.25 3.23 1.57 1.11 0.36 0.13 370 158 70 39 13 4
including 2.75 47.5 44.75 4.21 2.05 1.46 0.46 0.16 452 197 92 61 18 7
including 96 167 71 3.67 1.79 1.26 0.41 0.14 411 173 75 35 13 3
WI21-43 (045/-85) 10.75 124.1 113.35 0.55 0.26 0.17 0.07 0.02 121 84 33 35 9 5
WI21-44 (240/-60) 17.5 125.6 108.1 1.72 0.83 0.57 0.20 0.07 266 141 69 47 14 6
including 35 89 54 2.59 1.24 0.87 0.29 0.10 384 205 102 70 20 9

[1] The true width of REE mineralization is estimated to be 70-100% of the drilled interval.

[2]TREO % sum of CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3 and Ho2O3.

Figure 1. Drill Section Holes WI21-45, WI21-47, and WI21-48

Figure 2. Drill Section Holes WI21-38, WI21-40, and WI21-46

About the Wicheeda REE Property

The 100% owned 2,008-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 PEA that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR[1]. 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.

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.

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”.

For further information, please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.

Vice President, Investor Relations

Tel: (778) 994 8072

Email: todd@blueskycorp.ca

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, 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 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.


[1] 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).

Comstock Releases Shareholder Letter



Comstock Releases Shareholder Letter

Research, News, and Market Data on Comstock Mining

 

Company’s Cellulosic Fuels Technologies Unlock Massive New Feedstock Model for Net Zero Energy Independence

VIRGINIA CITY, NEVADA, MARCH 10, 2022 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced that its executive chairman and chief executive officer issued the following shareholder letter.

Dear Shareholders:

On behalf of our Board of Directors, our employees, and partners, we thank each of you for participating in a pivotal year for Comstock, in which we completed a series of strategic transactions that acquired intellectual property, management, employees, and the facilities needed to transform our business and establish a platform of breakthrough renewable energy products. We have aligned on a precise goal, and we are eager to summarize our business plans and our outlook for you, here and now.

The Comstock

The Comstock Lode is one of world’s most important mineral discoveries. It has a rich history, steeped in grit and innovation. Its pioneers innovated new technologies and mined over $20 billion in gold and silver (in today’s dollars), infusing extraordinary wealth into America’s burgeoning economy at the dawn of the industrial revolution. We have been proud to inherit and contribute to that legacy throughout our own history, as we enabled an unprecedented consolidation and operation of the historic Comstock Lode mining district, including 10-square miles of land with many miles of known mineral claims and exploration targets. We mined and produced about 60,000 ounces of gold and 735,000 ounces of silver from just one of those targets between 2012 and 2016. We believe that far more remains, a bonanza with billions of dollars of gold and silver, unavailable to the century-old mining practices of our predecessors. Our strategic partners are working to unlock that value.

Accordingly, we shifted our focus during 2020 and 2021 to new investments in renewable energy, where we have differentiated technology and core competencies, while monetizing our non-strategic assets. Our objectives are to maximize the value from our mineral estate while introducing breakthrough, decarbonizing lines of business with the capacity for rapid growth.

Enabling Systemic Decarbonization – Cellulosic Fuels

Renewable fuels provide a critical pathway for decarbonization, however, most current forms of renewable fuel draw from the same pool of conventional feedstocks, including corn and various vegetable oils in the U.S., and the entire universe of those feedstocks only represents a tiny fraction of the global motor fuel burn. Further, the lifecycle carbon benefits of growing, harvesting, and using conventional feedstocks are extremely limited, even in comparison to fossil fuels. Any plan to meaningfully decarbonize using renewable fuels must involve abundant and available feedstocks that no one else is using today.

Our renewable fuels division, Comstock Fuels, acquired a portfolio of pioneering technologies that resolve conventional feedstock limitations by efficiently converting wasted, unused, widely available, and rapidly replenishable woody biomass into advanced cellulosic fuels.  These technologies unlock vast quantities of historically unused and underutilized feedstocks with enough renewable carbon to permanently offset billions of tons of fossil fuel emissions.

According to the U.S. Department of Energy, America can produce upwards of one billion tons per year of biomass feedstock for renewable fuels. That’s enough to produce 1.7 billion barrels of carbon neutral fuels with our technologies, or more than a third of the U.S. transportation demand.  In addition, more than 27% of American soil, or about 540 million acres, is comprised of forestland that was previously more than twice as large, before being clear cut for less productive uses. Those under-utilized resources could be restored and used to sustainably grow, harvest, and replant billions of tons of fast-growing trees and energy crops for conversion into billions of barrels of renewable fuels with our technologies. The combined output could exceed 50% of America’s current annual output of fossil crude, and it’s 100% renewable. Canada has even more. It’s the equivalent of an oil well that will never run dry, a bonanza hidden in plain sight, and our technologies are effectively the drill.

Enabling Systemic Decarbonization – Electrification Products

Electrification and continued advancements in energy storage are vitally necessary to reduce reliance on fossil fuels while shifting to and increasing use of renewable fuels. Our 90% owned lithium-ion battery (“LIB”) recycling business, LiNiCo Corporation (“LiNiCo”), holds the rights to a portfolio of innovative processes that efficiently crush and separate LIBs, extract lithium, nickel, cobalt, and graphite, and reuse the recovered metals to produce 99% pure cathode active precursor products. Collectively, these technologies give LiNiCo, and its existing 137,000 square foot battery metal recycling facility, differentiating competitive advantages, including the ability to process upwards of 100,000 tons of LIB and related feedstocks per year into an array of electrification products, including lithium, nickel, cobalt, graphite, and cathode materials.

According to International Energy Agency (“IEA”), there were more than 10 million electric vehicles (“EVs”) on the road in 2020, with new EV registrations increasing by 41% over 2019 and another 140% during the first quarter of 2021. Meeting the increased EV demand is estimated to require about five times more lithium carbonate equivalent (“LCE”) than the entire lithium mining industry produces today. Miners and manufacturers can scale up to meet that demand, however, according to a January 2021 USGS mineral commodity summary, there are only about 86 million tons of identified lithium reserves worldwide, and LIBs are typically landfilled after eight to ten years of useOur technologies meet the realities of that demand by enabling profitability at the earliest stages of production, thereby positioning our LIB recycling business to contribute billions to our enterprise value from LiNiCo based on existing valuations of comparable public companies.

Our Outlook – A Net Zero Carbon World

This is our new platform for growth. We will innovate and commercialize technologies that contribute to global decarbonization and net zero circularity by efficiently converting natural resources, including wasted and unused materials, into valuable renewable energy products that shift supply chains away from and reduce reliance on fossil fuels. We will also lead and support the adoption and growth of a balanced net zero ecosystem based on the feedstocks unlocked by our technologies, with powerful embedded economic incentives for our clients, their industries, and the populations they serve to decarbonize.

We will rapidly achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. Our goal is to generate over $16 billion in revenue on an annualized basis by 2030, by producing and selling renewable energy products that enable us, our clients, and their downstream stakeholders to reduce greenhouse gas emissions by at least 100 million metric tons per year. Meeting that objective would offset more than 234 million barrels per year of fossil fuel, or about 6% of the U.S. transportation burn, and require an estimated 8% of the existing biomass residues produced annually in the U.S.

Such scales are achievable by tapping into and leveraging existing infrastructure. Our expanded team has extensive experience in the renewable fuels industry, having designed and built several dozen renewable fuel production facilities in the U.S. Notably, our team invented and commercialized pioneering processes used by more than 95% of the U.S. corn ethanol industry to produce distillers corn oil, a value-added feedstock that offsets more than 20 million barrels of fossil fuel per year and has played a disruptive role in the growth and development of the renewable fuels industry.

We have already made remarkable progress. We are currently building commercial pilot scale cellulosic fuels and LIB facilities, and we are preparing to commence operations at our full-scale LIB recycling facility later this year. We have also made significant strides in developing and establishing our new facilities and forging new revenue and licensing streams that we will soon share. We have also made meaningful progress and will complete the monetization of our non-strategic assets, as quickly as possible, while funding our new businesses and limiting our focus to the objectives outlined above.

The Comstock Lode’s history of relentless grit and innovation and pioneering and prospecting against all odds will always be part of our identity. Moving forward, we will drop the word “mining” from our name and rebrand the company as “Comstock” to reflect our new mission of enabling systemic decarbonization. Additional information in that regard will be made available in the coming weeks as we launch our new website and file our Form 10-K for our fiscal year ended December 31, 2021.

We look forward to our next communication and seeing those of you that can attend this year’s Annual General Meeting, on May 26, 2022, where we plan on showcasing our renewable energy businesses, employees, and partners, including the results of our business plans, schedules, and near-term revenues. Until then, thank you for your continued interest and support.

Kindest regards,
Corrado De Gasperis
Executive Chairman and Chief Executive Officer
Comstock Mining Inc.

 

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by shifting the consumption patterns of industries and populations. The Company’s technologies are designed to do so by efficiently converting wasted and unused natural resources into valuable renewable energy products, which the Company intends to use to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral natural resource extraction and refining facilities, by selling an array of complementary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future changes in our research and development; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in reports that we file with the Securities and Exchange Commission, including Item 1A, “Risk Factors” in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q, and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with mercury remediation, metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

Neither this press release nor any related call or discussion constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

 

 

 

Contact information:
Comstock Mining Inc.
P.O. Box 1118
Virginia City, NV 89440
ComstockMining.com
Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com
Zach Spencer
Director of External Relations
Tel (775) 847-5272 Ext.151
questions@comstockmining.com