FenixOro Commences Drilling on Highly Prospective Southeast Block

Research, News, and Market Data on FenixOro Gold

 

TORONTO, Jan. 19, 2022 (GLOBE NEWSWIRE) — FenixOro Gold Corp (CSE:FENX, OTCQB:FDVXF, Frankfurt:8FD) is pleased to announce that a second drill has been mobilized to begin exploration drilling on the highly prospective southeast block.  

• The southeast block has a principal significant soil anomaly that is 600 m long of greater than 1 g/t gold-in-soils. In drilling to date, soil anomalies have been an excellent indicator of the presence of high-grade gold bearing structures where there are no visible outcrops on surface.
• The southeast block hosts the highest-grade channel sample on the entire project, 146 g/t gold taken from inside an historic artisanal mine
• Veins in the Southeast block are exposed at an elevation of nearly 2800 m, adding at least 400 m of additional vertical potential to the scale of the deposit
• Veins in the southeast have a significantly higher silver content than in the northern block, adding another potentially interesting element
• Specific targets in the southeast license include a series of northwest and east-west trending gold bearing veins that appear similar in scale to those in the north
  

FenixOro VP Exploration Stuart Moller stated: “We are very excited to be back in pure exploration mode in the southern block on some of the most highly prospective locations at Abriaqui. Preliminary exploration data is extremely promising and has generated very large target areas which we know have historically produced high grade gold. With two drills now operating, both the rate of drilling and the frequency of assay results will be increasing. We certainly have a very busy and exciting first half of the year in front of us.”

This next phase of drilling will focus on reconnaissance scale drilling of all new targets. As shown in Figure 1, a pattern of four holes will test a series of NW and E-W trending veins near the currently drilled area. Several of these veins have 20+ g/t gold assays in shallow mine workings. A second pattern of holes one kilometer to the southeast will provide the first drill test of a second group of highly prospective veins. Soil sampling indicates that there may be significantly more veins in the area than are shown on the figure and that the largest may be more than 600 meters in strike length. The veins are exposed at a higher elevation than those to the northwest (an average of 2500 meters vs. 2100 meters) giving them a minimum one vertical kilometer of mineralization potential. The geochemical signature in the area is different with the equally high grade gold being accompanied by significantly higher silver (silver/gold ratio of 16 vs. 1.5) with higher copper and lead.

Figure 1. Currently completed 7000+ meters of drilling (blue) and planned early 2022 drill plan (yellow).

To date, the 15 holes totaling more than 7000 meters of drilling at Abriaqui have focused on evaluation of the dozens of veins in the northwestern part of the property (Figure 1). Two main corridors of northwest and east-west trending veins have been delineated by mapping, soil sampling, ground magnetics, and diamond drilling. The most significant veins in the northwest corridor appear to have continuous gold mineralization along 500–800 meters of strike and a minimum of 700 vertical meters and all veins are open at depth. Thickness in these principal veins ranges up to 15-20 meters and gold grades range from 2-20+ g/t with a silver/gold ratio of about 1.5/1. These main families of veins in the northwest have been drilled at an average 200 meter spacing along strike and their geometry is fairly well understood.

Technical Information

Stuart Moller, Vice President Exploration and Director of the Company and a Qualified Person for the purposes of NI 43-101 (P.Geo, British Colombia), has prepared or supervised the preparation of the technical information contained in this press release. Mr. Moller has more than 40 years of experience in exploration for precious and other metals including ten in Colombia and is a Fellow of the Society of Economic Geologists.

Drill core sampling is done in accordance with industry standards. The HQ and NQ diameter core is sawed, and half core samples are submitted to the laboratory. The other half core along with laboratory coarse reject material and sample pulps are stored in secure facilities on site and/or in the sample prep lab. Following strict chain of custody protocols, the samples are driven to the ISO 17025:2017 certified ALS Laboratory sample preparation facility in Medellin and ALS ships the prepared pulps to their assay laboratory in Lima, Peru. Blanks, duplicates, and certified reference standards totaling 15% of the total samples are inserted into the sample stream. To date, no material quality control issues have been detected. Gold is analyzed by fire assay with 50 gram charges for grades in excess of 10 grams per tonne and the additional elements are analyzed by ICP with appropriate follow-up for over-limits.

Reported grade intervals are calculated using uncut gold values. Maximum sample length is one meter. Intervals which include multiple samples are calculated using the full geologic interval of mineralization and are not subject to specific rules for cutoff grades and internal low grade. As such, quoted thickness and grade of these intervals do not necessarily represent optimized economic intervals in a potential future mine. Reported sample and interval widths are based on lengths of individual samples in core and do not necessarily represent true widths of mineralization. True widths will sometimes be less than the quoted interval lengths.

There are currently no NI 43-101 compliant resources or reserves in the project area. The analysis of drill results is intended to estimate the potential for future resources which will require significant additional drilling to define.

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 located 15 km west of Continental Gold’s Buritica project 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. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui following surface and underground geological mapping and sampling, as well as a magnetometry survey.

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.

Forward Looking Information

This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Specifically, this news release contains forward looking information regarding the significance of Phase 1 drill results at the Abriaqui Project, conclusions as to resource potential derived from that data set, potential results of the Phase 2 drill program, and implied assumptions as to the potential future economic viability of the gold grades and vein thicknesses reported. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Although FenixOro has no reason to believe otherwise, there can be no assurance that the planned drill program will be completed as uncertainties exist related to future project financing and future environmental permitting. Although FenixOro has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be additional factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.

FenixOro Gold Corp

John Carlesso, CEO

Email: info@FenixOro.com 

Website: www.FenixOro.com

Telephone: 1-833-ORO-GOLD 

FenixOro Commences Drilling on Highly Prospective Southeast Block

Research, News, and Market Data on FenixOro Gold

 

TORONTO, Jan. 19, 2022 (GLOBE NEWSWIRE) — FenixOro Gold Corp (CSE:FENX, OTCQB:FDVXF, Frankfurt:8FD) is pleased to announce that a second drill has been mobilized to begin exploration drilling on the highly prospective southeast block.  

• The southeast block has a principal significant soil anomaly that is 600 m long of greater than 1 g/t gold-in-soils. In drilling to date, soil anomalies have been an excellent indicator of the presence of high-grade gold bearing structures where there are no visible outcrops on surface.
• The southeast block hosts the highest-grade channel sample on the entire project, 146 g/t gold taken from inside an historic artisanal mine
• Veins in the Southeast block are exposed at an elevation of nearly 2800 m, adding at least 400 m of additional vertical potential to the scale of the deposit
• Veins in the southeast have a significantly higher silver content than in the northern block, adding another potentially interesting element
• Specific targets in the southeast license include a series of northwest and east-west trending gold bearing veins that appear similar in scale to those in the north
  

FenixOro VP Exploration Stuart Moller stated: “We are very excited to be back in pure exploration mode in the southern block on some of the most highly prospective locations at Abriaqui. Preliminary exploration data is extremely promising and has generated very large target areas which we know have historically produced high grade gold. With two drills now operating, both the rate of drilling and the frequency of assay results will be increasing. We certainly have a very busy and exciting first half of the year in front of us.”

This next phase of drilling will focus on reconnaissance scale drilling of all new targets. As shown in Figure 1, a pattern of four holes will test a series of NW and E-W trending veins near the currently drilled area. Several of these veins have 20+ g/t gold assays in shallow mine workings. A second pattern of holes one kilometer to the southeast will provide the first drill test of a second group of highly prospective veins. Soil sampling indicates that there may be significantly more veins in the area than are shown on the figure and that the largest may be more than 600 meters in strike length. The veins are exposed at a higher elevation than those to the northwest (an average of 2500 meters vs. 2100 meters) giving them a minimum one vertical kilometer of mineralization potential. The geochemical signature in the area is different with the equally high grade gold being accompanied by significantly higher silver (silver/gold ratio of 16 vs. 1.5) with higher copper and lead.

Figure 1. Currently completed 7000+ meters of drilling (blue) and planned early 2022 drill plan (yellow).

To date, the 15 holes totaling more than 7000 meters of drilling at Abriaqui have focused on evaluation of the dozens of veins in the northwestern part of the property (Figure 1). Two main corridors of northwest and east-west trending veins have been delineated by mapping, soil sampling, ground magnetics, and diamond drilling. The most significant veins in the northwest corridor appear to have continuous gold mineralization along 500–800 meters of strike and a minimum of 700 vertical meters and all veins are open at depth. Thickness in these principal veins ranges up to 15-20 meters and gold grades range from 2-20+ g/t with a silver/gold ratio of about 1.5/1. These main families of veins in the northwest have been drilled at an average 200 meter spacing along strike and their geometry is fairly well understood.

Technical Information

Stuart Moller, Vice President Exploration and Director of the Company and a Qualified Person for the purposes of NI 43-101 (P.Geo, British Colombia), has prepared or supervised the preparation of the technical information contained in this press release. Mr. Moller has more than 40 years of experience in exploration for precious and other metals including ten in Colombia and is a Fellow of the Society of Economic Geologists.

Drill core sampling is done in accordance with industry standards. The HQ and NQ diameter core is sawed, and half core samples are submitted to the laboratory. The other half core along with laboratory coarse reject material and sample pulps are stored in secure facilities on site and/or in the sample prep lab. Following strict chain of custody protocols, the samples are driven to the ISO 17025:2017 certified ALS Laboratory sample preparation facility in Medellin and ALS ships the prepared pulps to their assay laboratory in Lima, Peru. Blanks, duplicates, and certified reference standards totaling 15% of the total samples are inserted into the sample stream. To date, no material quality control issues have been detected. Gold is analyzed by fire assay with 50 gram charges for grades in excess of 10 grams per tonne and the additional elements are analyzed by ICP with appropriate follow-up for over-limits.

Reported grade intervals are calculated using uncut gold values. Maximum sample length is one meter. Intervals which include multiple samples are calculated using the full geologic interval of mineralization and are not subject to specific rules for cutoff grades and internal low grade. As such, quoted thickness and grade of these intervals do not necessarily represent optimized economic intervals in a potential future mine. Reported sample and interval widths are based on lengths of individual samples in core and do not necessarily represent true widths of mineralization. True widths will sometimes be less than the quoted interval lengths.

There are currently no NI 43-101 compliant resources or reserves in the project area. The analysis of drill results is intended to estimate the potential for future resources which will require significant additional drilling to define.

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 located 15 km west of Continental Gold’s Buritica project 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. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui following surface and underground geological mapping and sampling, as well as a magnetometry survey.

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.

Forward Looking Information

This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Specifically, this news release contains forward looking information regarding the significance of Phase 1 drill results at the Abriaqui Project, conclusions as to resource potential derived from that data set, potential results of the Phase 2 drill program, and implied assumptions as to the potential future economic viability of the gold grades and vein thicknesses reported. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Although FenixOro has no reason to believe otherwise, there can be no assurance that the planned drill program will be completed as uncertainties exist related to future project financing and future environmental permitting. Although FenixOro has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be additional factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.

FenixOro Gold Corp

John Carlesso, CEO

Email: info@FenixOro.com 

Website: www.FenixOro.com

Telephone: 1-833-ORO-GOLD 

CanAlaska Partner to Spend AUD$5M for 60% of Two Uranium Projects in the Athabasca Basin

Research, News, and Market Data on CanAlaska Uranium

 

Terra Uranium has Staged Option to Earn up to 80% Interest in McTavish and Waterbury East Projects, subject to Resource definition

Focus on High-Grade Eastern Athabasca Uranium Discovery

Vancouver, Canada, January 19, 2022 – CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) (“CanAlaska” or the “Company”) is pleased to announce it has entered into Purchase Option Agreements (“POA”) with Terra Uranium Limited (“Terra”), an Australian public limited corporation, and Terra’s wholly-owned Canadian subsidiary Terra Uranium Canada Limited, to allow Terra to earn up to an 80% interest in CanAlaska’s 100%-owned Waterbury East and McTavish projects. These projects total 4,202.21 hectares in the Eastern Athabasca Basin in Saskatchewan, Canada (the “Projects”) (Figure 1).

Figure 1: McTavish and Waterbury East Project Locations

 

Waterbury East and McTavish Projects

Terra may earn up to an 80% interest in each of the Waterbury East and McTavish projects by undertaking work, milestone payments to CanAlaska and resource definition in three defined earn-in stages on each project as set out below:

• Terra may earn an initial 40% interest (“40% Option”) in each of the projects by paying the Company AUD$37,500 cash per project and issuing 9% worth of ordinary shares in Terra’s capital structure as at listing on the Australian Securities Exchange (“ASX”) by March 31, 2022 per project.
• Terra may earn an additional 20% interest (“60% Option”) in each of the projects by paying a further AUD$200,000 per project and incurring AUD$2,500,000 in exploration expenditures within 18 months of the ASX listing date per project.
• Terra may earn an additional 20% interest (“80% Option”) in the projects by delivering and filing a JORC compliant resource of at least 30,000,000 pounds U₃O₈ on any of the Waterbury East or McTavish claims, and granting to the Company a 2.25% net smelter returns (NSR) royalty on all products derived from any of the claims, within 36 months of the ASX listing date.

CanAlaska will be Operator of the projects through the 60% Option threshold and charge an operator fee to Terra.

The POA envisages conversion to a Joint Venture. Under the terms of the POA, after successful completion of either of the 40% Option or 60% Option stages of the agreement, and where Terra elects to not enter the next respective option stage as applicable, or on successful completion of the 80% Option stage, a joint venture will be formed and the parties will co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. If either party dilutes to a 10% interest, the diluting party will automatically forfeit its interest in the respective project and in lieu thereof will be granted a 2.0% net smelter returns (NSR) royalty on the respective project. If the 80% Option NSR of 2.25% had been previously granted to CanAlaska, CanAlaska would not be entitled to this 2.0% NSR provision on dilution to 10% interest.

An area of mutual interest has been established that extends two kilometres from the boundary of the claims.

Under the terms of the POA, if the Conditions Precedent are not met or if Terra elects to terminate prior to exercise of the 40% Option, a break fee of AUD$12,500 per project is due to CanAlaska.

 

First Programs

The parties have established a Joint Technical Operating Committee (“JTOC”) under the terms of the POA to discuss exploration and development strategies, review and comment on programs and budgets submitted by the Operator, review the progress and results of activities conducted under the current programs and to discuss other issues in respect to the properties. The final binding decision with respect to establishing Programs to be carried out by the Operator (including any changes or amendments to Programs) shall be made by Terra Uranium. The preliminary work programs and budgets for each project have been laid out for the next 2 years. Once the 40% Option threshold has been met, it is anticipated the first exploration programs under the POA with Terra will be conducted in early 2022.

 

About Terra Uranium Ltd and Terra Uranium Canada Limited

Terra Uranium Ltd is an Australian public limited corporation that is in the process of undergoing an initial public offering and concurrent listing on the Australian Securities Exchange (“ASX”). The POA agreements are subject to a number of Conditions Precedent, including that Terra has received conditional approval from the ASX to be listed on the ASX and raising sufficient funds to carry out the programs

Terra Uranium Canada Limited is a wholly-owned Canadian subsidiary of Terra Uranium Ltd, incorporated in Saskatchewan, Canada.

CanAlaska CEO, Cory Belyk, comments, “Completion of the definitive agreements with Terra Uranium represents significant funding for exploration on the highly prospective Waterbury East and McTavish projects in the Eastern Athabasca Basin, without dilution of CanAlaska shareholders interest in our core properties. We look forward to working closely with Terra and its management team toward a common goal of tier 1 uranium deposit discovery.”

Other News

The Company has just commenced drilling on its 100% owned Waterbury South project and is currently undertaking  a  detailed Stepwise Moving Loop Time Domain Electromagnetic (TDEM) Survey on its West McArthur project, in advance of the planned summer drill program.

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) holds interests in approximately 300,000 hectares (750,000 acres), in Canada’s Athabasca Basin – the “Saudi Arabia of Uranium.”  CanAlaska’s strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company’s properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world’s richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds.

The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska’s Vice President, Exploration.

For further information visit www.canalaska.com.

On behalf of the Board of Directors

“Peter Dasler”
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.

Contacts:

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: info@canalaska.com

Cory Belyk, CEO and Executive Vice President
Tel: +1.604.688.3211 x 138
Email: cbelyk@canalaska.com

Neither 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 release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated

Tuesday, January 18, 2022

Aurania Resources (AUIAF)(ARU:CA)
Exploration Resumes at Awacha; Awaiting Tsenken Drill Results

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

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

Closing in on high-grade areas at Tiria-Shimpia. Based on feedback from Professor Gregor Borg, a specialist in sediment-hosted copper, zinc, and lead, management is gaining a better understanding of the sediment-hosted silver-zinc and copper-silver targets at Tiria-Shimpia and Tsenken, respectively. Information from Hole SH-004 results at Tiria-Shimpia were considered along with information from sampling of the mineralized zone at surface to provide an initial understanding of the pattern of mineralization representing a significant step toward identifying where high-grade zones are likely to be found. Management may consider drilling deeper to intersect higher grade zinc-silver shoots at depth.


Tsenken drill results expected shortly.  We anticipate results of Hole TSN1-009 drilled at the Tsenken copper-silver target to be available shortly. The target of Hole TSN1-009 is copper-silver mineralization in evaporite mineral beds within sedimentary layers. Professor Borg reviewed all the core drilled at Tsenken. Drilling penetrated salt layers in the red bed which would have made the basin …

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. 

	Image Credit: Richard Masoner (Flickr)

Who Benefits if Oil Price Increases are Not Transitory?

 

One of the sectors worst hit and slowest to recover during the first year of the pandemic was oil. Since 2020 oil prices have more than recovered. In fact, gasoline use is now near its pre-pandemic level, and oil prices are at a seven-year high. What’s more, analysts at top Wall Street shops are expecting crude to reach even higher. As with other natural resources, the increase in the price is not just positive for those trading the commodity, it’s typically good for producers as well.

Background

Just before the holiday’s last year, President Biden announced plans to bring down oil prices by releasing up to 50 million barrels of oil from the strategic petroleum reserve. Analysts then forecasted the impact this would have on price reductions would be fleeting. Prices did first head down beginning Thanksgiving; however, they have since topped not only their high for all of last year, but also since October 2014. 

 

 

Expectations are that crude prices will move even higher. Although OPEC+ has plans to increase output by 400,000 barrels each month, they have not been meeting this target. With this and other price pressures in mind, Morgan Stanley recently said it expects Brent crude to reach $90 per barrel later this year. Goldman Sachs has the same price forecast, while JP Morgan believes oil could go as high as $100 this year. JP Morgan’s forecast is predicated on OPEC+ capacity issues. Even with rising U.S. production, global supply remains short of demand. 

 

Winners from Oil Rising

Among others, two noteworthy microcap producers in the oil sector have been benefitting from the price increases. One with operations in Canada and the other overseas. This morning (January 18), while XLE (energy sector SPDR) rose 0.25%, Indonesia Energy (INDO) rose 12.06%. InPlay Oil (IPOOF) climbed 2%.

Over the past week, the XLE increased a healthy 2.20%. Indonesia Energy lagged at up 1.06%, and  InPlay Oil rose 32.36% over the seven days. Noble Capital Markets provided an updated view on InPlay  in its report titled What
to do when everything’s going well? Do more!

 

Indonesia Energy Corp Ltd (INDO) is an oil and gas exploration, and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). In a December 21^st report issued by Noble Capital Markets, written by Senior Energy Analyst Michael Heim,  a price target was set on Indo, along with information regarding output, growth plans, and a late-year setback during monsoon season. Get the report
here.

InPlay Oil (IPOOF, IPO:CA) is a junior oil and gas exploration, and production company with operations in Alberta focused on light oil production. InPlay operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential. It also operates undeveloped lands with exploration potential. IPOOF was up 600% last year; read Noble Energy Senior Analyst’s most recent note on the company, including price target, direction, and discussion.

Information and analysis concerning other junior oil producers and small and microcap stocks are searchable
here on Channelchek.

Take-Away

Just how strong the upside potential for oil prices is right now is evident in the fact that although global output is rebounding and covid omicron cases are peaking, prices are not declining. The experts in this area are calling for further double-digit increases in the price of oil that should have an impact on producers. Small producers could have added potential to continue following or beating oil prices.

An excellent place to research smaller companies involved in this industry is Channelchek.

 Paul Hoffman

Managing Editor, Channelchek

Suggested Content

Virtual Roadshow, Indonesia Energy (Video)

Virtual Roadshow, InPlay Oil (Video)

Industry Report – Energy Stocks Level Out but Pricing is Still Attractive

Why Some Forecasters are Bullish on Oil in 2022

 

 

Sources:

www.Koyfin.com

https://oilprice.com/Energy/Energy-General/White-House-Helpless-As-Oil-Prices-Climb-Higher.html

https://www.sharewise.com/us/news_articles/Oil_Smashing_Stocks_ValueWalk_20220117_1753

 

Stay up to date. Follow us:

	Image Credit: Richard Masoner (Flickr)

Who Benefits if Oil Price Increases are Not Transitory?

 

One of the sectors worst hit and slowest to recover during the first year of the pandemic was oil. Since 2020 oil prices have more than recovered. In fact, gasoline use is now near its pre-pandemic level, and oil prices are at a seven-year high. What’s more, analysts at top Wall Street shops are expecting crude to reach even higher. As with other natural resources, the increase in the price is not just positive for those trading the commodity, it’s typically good for producers as well.

Background

Just before the holiday’s last year, President Biden announced plans to bring down oil prices by releasing up to 50 million barrels of oil from the strategic petroleum reserve. Analysts then forecasted the impact this would have on price reductions would be fleeting. Prices did first head down beginning Thanksgiving; however, they have since topped not only their high for all of last year, but also since October 2014. 

 

 

Expectations are that crude prices will move even higher. Although OPEC+ has plans to increase output by 400,000 barrels each month, they have not been meeting this target. With this and other price pressures in mind, Morgan Stanley recently said it expects Brent crude to reach $90 per barrel later this year. Goldman Sachs has the same price forecast, while JP Morgan believes oil could go as high as $100 this year. JP Morgan’s forecast is predicated on OPEC+ capacity issues. Even with rising U.S. production, global supply remains short of demand. 

 

Winners from Oil Rising

Among others, two noteworthy microcap producers in the oil sector have been benefitting from the price increases. One with operations in Canada and the other overseas. This morning (January 18), while XLE (energy sector SPDR) rose 0.25%, Indonesia Energy (INDO) rose 12.06%. InPlay Oil (IPOOF) climbed 2%.

Over the past week, the XLE increased a healthy 2.20%. Indonesia Energy lagged at up 1.06%, and  InPlay Oil rose 32.36% over the seven days. Noble Capital Markets provided an updated view on InPlay  in its report titled What
to do when everything’s going well? Do more!

 

Indonesia Energy Corp Ltd (INDO) is an oil and gas exploration, and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). In a December 21^st report issued by Noble Capital Markets, written by Senior Energy Analyst Michael Heim,  a price target was set on Indo, along with information regarding output, growth plans, and a late-year setback during monsoon season. Get the report
here.

InPlay Oil (IPOOF, IPO:CA) is a junior oil and gas exploration, and production company with operations in Alberta focused on light oil production. InPlay operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential. It also operates undeveloped lands with exploration potential. IPOOF was up 600% last year; read Noble Energy Senior Analyst’s most recent note on the company, including price target, direction, and discussion.

Information and analysis concerning other junior oil producers and small and microcap stocks are searchable
here on Channelchek.

Take-Away

Just how strong the upside potential for oil prices is right now is evident in the fact that although global output is rebounding and covid omicron cases are peaking, prices are not declining. The experts in this area are calling for further double-digit increases in the price of oil that should have an impact on producers. Small producers could have added potential to continue following or beating oil prices.

An excellent place to research smaller companies involved in this industry is Channelchek.

 Paul Hoffman

Managing Editor, Channelchek

Suggested Content

Virtual Roadshow, Indonesia Energy (Video)

Virtual Roadshow, InPlay Oil (Video)

Industry Report – Energy Stocks Level Out but Pricing is Still Attractive

Why Some Forecasters are Bullish on Oil in 2022

 

 

Sources:

www.Koyfin.com

https://oilprice.com/Energy/Energy-General/White-House-Helpless-As-Oil-Prices-Climb-Higher.html

https://www.sharewise.com/us/news_articles/Oil_Smashing_Stocks_ValueWalk_20220117_1753

 

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Metals & Mining Fourth Quarter 2021 Review and Outlook

Noble Capital Markets Natural Resources Sector Review

Source: Capital IQ as of 12/31/2021

Source: Capital IQ as of 12/31/2021; Company Filings

METALS AND MINING INDUSTRY OUTLOOK

Metals & Mining Fourth Quarter 2021 Review and Outlook

Mining companies post a strong finish.

During the fourth quarter, mining companies (as measured by the XME) appreciated 7.3% compared to a gain of 10.6% for the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 8.7% and 9.4%, respectively. Gold, silver, copper, and zinc futures prices were up 4.0%, 6.1%, 9.1%, and 8.5%, respectively, while lead was down 2.4%. For the full year, gold and silver prices declined 4.5% and 12.1%, respectively, while copper, lead, and zinc prices were up 26.4%, 21.3%, and 33.6%. Performance in 2021 was driven by base metals equities as underscored by the 33.9% price return on the XME versus -11.1% and -22.7% for the GDX and GDXJ, respectively. The S&P 500 appreciated 26.9%.

Outlook for precious metals.

The U.S. Dollar Index rose 1.7% during the fourth quarter and 6.4% in 2021. The yield on the 10-year rose modestly during the fourth quarter to 1.51% and was up 59.5 basis points compared to year-end 2020. While a rise in the U.S. dollar and treasury yields are headwinds for gold, we believe investors may view precious metals more favorably in 2022 to protect portfolio values from potential volatility in equity markets, an uncertain path for inflation, and the risk of Federal Reserve monetary policy errors. While the Federal Reserve has signaled that it will end monthly bond purchases in March and could raise interest rates three times in 2022, we think market expectations are partially baked in and investors will likely focus on real interest rates which are expected to remain low.

Can industrial metals continue their ascent?

While U.S. and global economic growth is expected to moderate and we don’t expect the same level of gains for industrial metals in 2022, cash flow generation should remain strong for industrial metals companies while supply and demand fundamentals remain favorable. Improving supply chains, inventory re-stocking, and greater capital spending could be supportive of pricing, and we believe the long-term investment case for owning industrial metals mining companies remains favorable. Weaker growth abroad, particularly in China, remains a near-term threat.

Putting it all together.

We remain constructive on the Metals and Mining sector. While precious metals underperformed industrial metals in 2021, we believe precious metals mining equities could outperform in 2022. Valuations, particularly among junior companies, remain attractive while current gold and silver prices are sufficient to be profitable. Additionally, we are beginning to observe an increase in M&A activity which highlight value in the sector based on acquisition premiums.

Source: Capital IQ as of 12/31/2021

Gold Mining – Comparable Tables 

Source: Capital IQ as of 12/31/2021

Gold Mining – LTM Equity Performance 

Source: Capital IQ as of 12/31/2021

Silver Mining – Comparable Tables 

Source: Capital IQ as of 12/31/2021

Silver Mining – LTM Equity Performance 

Source: Capital IQ as of 12/31/2021

Gold & Silver – LTM Global M&A Activity 

Source: Capital IQ as of 12/31/2021

Diversified Mining – Comparable Tables 

Source: Capital IQ as of 12/31/2021

Diversified Mining – LTM Equity Performance 

Source: Capital IQ as of 12/31/2021

Diversified Mining – LTM Global M&A Activity 

Source: Capital IQ as of 12/31/2021

LTM Mining Industry M&A Summary 

Source: Capital IQ as of 12/31/2021

NOBLE QUARTERLY HIGHLIGHTS

Brazil Minerals Inc. (OTCPK:BMIX)

Industry: Metals and Mining – Precious gems; Gold

Brazil Minerals, Inc. (OTCQB: BMIX) is a lithium company with projects in other highly strategic minerals such as rare earths, titanium, nickel and cobalt. In addition, Brazil Minerals owns stakes in both Apollo Resources Corporation, a private company developing its first iron mine, and Jupiter Gold Corporation, a publicy-traded company developing a quartzite mine and advancing two large gold projects.

4th Quarter News Highlight:

December 8, 2021: Brazil Minerals announced the addition of a new board member with substantial capital markets expertise. Stephen Petersen, new independent director of the company, has over 40 years of experience in the capital markets and investment management. Since 2013, he has been a Managing Director and member of the Investment Committee at Prio Wealth, an independent investment management firm with over $3 billion in assets under management. Previously, Mr. Petersen served as Senior Vice President, Investments at Fidelity Investments for approximately 32 years.

Summa Silver Corp. (TSXV:SSVR)

Industry: Metals and Mining – Precious metals; Silver

Summa Silver Corp is a Canadian junior mineral exploration company. The Company owns a 100% interest in the Hughes property located in central Nevada and has an option to earn 100% interest in the Mogollon property located in southwestern New Mexico. The Hughes property is host to the high-grade past-producing Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The mine has remained inactive since commercial production ceased in 1929 due to heavily depressed metal prices and little to no modern exploration work has ever been completed.

4th Quarter News Highlight:

December 14, 2021: The Company announced the intersection of 50-meter vein zone with visible mineralization in first hole at Mogollon, New Mexico. Drilling is still in progress at the property and Summa Silver expects a minimum of 15,000m additional drilling. Galen McNamara, CEO, stated: “Although we don’t expect the entire intersection to carry grade, the wide zone of classic low-sulfidation veining in our first hole attests to the prospectivity of the Queen Vein and the significance of the mineralizing system in general.”

Chakana Copper Corp. (OTCQB:CHKKF)

Industry: Metals and Mining – Diversified metals and mining

Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project is notable for the high-grade copper-gold-silver mineralization that is hosted in tourmaline breccia pipes.

4th Quarter News Highlight:

November 18, 2021: The company provided results from the remaining twelve resource definition holes drilled in Bx 5 totaling 2,541m at the Soledad project, Ancash, Peru. This resource drilling is part of the fully funded 26,000m exploration and resource drilling program planned for 2021. These results will further increase confidence in the initial resource estimate, anticipated to be completed by the end of 2021. Gradient-array induced-polarization (IP) surveys have been completed over the entire 12km2 footprint of the Soledad mineral system as well.

Source: Company Press Releases

DOWNLOAD THE FULL REPORT (PDF)

Noble Capital Markets Metals & Mining Newsletter Q4 2021

This newsletter was prepared and provided by Noble Capital Markets, Inc. For any questions and/or requests regarding this newsletter, please contact >Francisco Penafiel

DISCLAIMER

All statements or opinions contained herein that include the words “ we”,“ or “ are solely the responsibility of NOBLE Capital Markets, Inc and do not necessarily reflect statements or opinions expressed by any person or party affiliated with companies mentioned in this report Any opinions expressed herein are subject to change without notice All information provided herein is based on public and non public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on their own appraisal of the implications and risks of such decision This publication is intended for information purposes only and shall not constitute an offer to buy/ sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice Past performance is not indicative of future results.

Please refer to the above PDF for a complete list of disclaimers pertaining to this newsletter

Endeavour Silver to Acquire the Pitarrilla Project, One of the World’s Largest Undeveloped Silver Projects¹, Leveraging Regional Platform and Operating Expertise in Mexico

Research, News, and Market Data on Endeavour Silver

 

VANCOUVER, British Columbia, Jan. 13, 2022 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) has entered into a definitive agreement to purchase the Pitarrilla project (“ Pitarrilla ”) in Durango State, Mexico by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. (the “ Transaction ”) from SSR Mining Inc. (NASDAQ/TSX: SSRM; ASX: SSR) (” SSR Mining “) for total consideration of $70 million and a 1.25% net smelter returns royalty (“ NSR Royalty ”). All references to dollars ($) in this news release are to United States dollars (US$).

Pitarrilla is a large undeveloped silver, lead, and zinc project located 160 kilometres north of Durango City, in northern Mexico. The Pitarrilla property consists of 4,950 hectares across five concessions and has significant infrastructure in place with direct access to utilities. SSR Mining filed a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) titled “NI 43-101 Technical Report on the Pitarrilla Project” dated December 14, 2012 (the “ 2012 Technical Report ”). The 2012 Technical Report provided a feasibility study outlining a large, mainly open-pit operation and a mineral resource estimate, which has since been updated by SSR Mining for its Annual Information Form for the financial year ended December 31, 2020 (the “ SSR Mining 2020 AIF ”) (together, the “Historical Estimate” ) 2 .

“The acquisition of Pitarrilla, one of the world’s largest undeveloped silver projects 1 , accelerates our vision to become a premier senior silver producer,” said Dan Dickson, Endeavour’s Chief Executive Officer. “We now have a tremendous growth pipeline, which in addition to Pitarrilla includes the Terronera and Parral projects, in a country where we have extensive experience and expertise. While Terronera is the next project to be developed, we anticipate that Pitarrilla will be a significant asset in our portfolio and may take priority over the advancement of Parral. We will be in a position to make such a decision once we complete further drilling and analyze the economics of various scales and options for production.”

Total Consideration

Total consideration payable on closing of the Transaction is $70 million, consisting of $35 million in Endeavour shares and a further $35 million in cash or in Endeavour shares at the election of SSR Mining and agreed to by Endeavour. The number of Endeavour shares to be issued will be based on a deemed price of $4.0805 per share, being the volume weighted average price of Endeavour’s common shares on the New York Stock Exchange (“ NYSE ”) for the 10 business days immediately preceding the date of signing the definitive agreement. The shares will be subject to a hold period of four months and one day following the date of closing.

SSR Mining will retain a 1.25% NSR Royalty on Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it.

Any cash component will be satisfied with cash on hand. As at September 30, 2021, Endeavour had $101 million in cash and cash equivalents and $129 million in working capital.

Strategic Rationale for Acquisition

• Acquiring One of the World’s Largest Undeveloped Silver Projects
  • As outlined in the 2012 Technical Report and updated in the SSR Mining 2020 AIF, Pitarrilla has the following mineral resource estimate which Endeavour is treating as a Historical Estimate 3 :
    • a measured & indicated mineral resource (open-pit and underground) of 525.27 million ounces (oz) silver (Ag) in 164.79 million tonnes grading 99.1 grams per tonne (gpt) Ag.
    • an open-pit inferred mineral resource of 21.21 million oz Ag in 8.52 million tonnes at an average grade of 77.4 gpt and underground inferred mineral resource of 5.46 million oz Ag in 1.23 million tonnes at a grade of 138.1 gpt.
  • By way of comparison, Endeavour Silver has the following mineral reserve and resource estimates 4 as outlined in its Annual Information Form for the year ended December 31, 2020:
    • a proven and probable mineral reserve of 86.3 million oz silver equivalent (AgEq) from 6.99 million tonnes at 380 gpt AgEq.
    • a measured & indicated mineral resource of 43.7 million oz AgEq in 4.40 million tonnes at an average grade of 309 gpt AgEq.
    • an inferred mineral resource of 87.13 million oz AgEq in 8.04 million tonnes at an average grade of 337 gpt AgEq.
• Pitarrilla Leverages Endeavour’s Platform and Experience in Mining-Friendly Mexico
  • Acquisition is an excellent fit for Endeavour’s experienced regional team, which has a successful development, exploration and underground mining track record.
• Accretive Acquisition at an Attractive Valuation
  • Once a current resource is defined, Pitarrilla is expected to be substantially accretive on a silver equivalent resource per share metric — anticipate announcing a current resource in 2022.
  • Endeavour expects to maintain significant silver exposure, silver beta and trading multiples.
  • Pitarrilla provides additional optionality in a rising silver price environment.
• Enhances Endeavour’s Attractive Growth Pipeline
  • Pitarrilla, together with Endeavour’s Terronera and Parral projects, form the key cornerstones of Endeavour’s mid to long-term growth profile.
  • Over the next several years, analyze the economics of various scales of production, including underground option, and then advance towards potential development and production to strengthen Endeavour’s long-term production and free cash flow profile.
  • Currently categorized as a development asset, Pitarrilla has been de-risked by SSR Mining as follows:
    • several key exploration and mining permits have been obtained; and
    • collaboration agreements are in place with the local community.
• Potential Exploration Upside as Land Package Remains Largely Underexplored
  • Deposit remains open with minimal drilling completed to explore the deposit at depth.
  • Significant underexplored land package with an opportunity to make new discoveries.
  • The geology at Pitarrilla and at Endeavour’s underground mines – Guanacevi and Bolanitos – is broadly similar.
  • Upside potential from upper oxide resource as well as open-pit and underground optionality.

Approvals and Timing

The Transaction has been approved by the board of directors of Endeavour.

Closing of the Transaction remains subject to TSX and NYSE regulatory approvals and receipt of Mexican Federal Economic Competition Commission approval, as well as customary closing conditions for a transaction of this kind, which is expected to occur in the first half of 2022.

On closing, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

Advisors and Counsel

PI Financial acted as Endeavour’s financial advisor. Koffman Kalef LLP acted as the Company’s legal counsel.

Conference Call and Webcast

Management will host a live conference call and audio webcast later today to discuss the highlights of the Transaction as follows:

Endeavour Qualified Person and QA/QC

The scientific and technical data contained in this news release relating to the Pitarrilla project has been reviewed and approved by Dale Mah, P.Geo., a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Mah is Vice President Corporate Development of Endeavour.

About Endeavour Silver

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

SOURCE Endeavour Silver Corp.

Contact Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@edrsilver.com
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook , Twitter , Instagram and LinkedIn

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the timing and completion of the Transaction, estimates of mineral resources including the Historical Estimate, future plans and objectives of the Company, proposed operations of the Company at Pitarrilla including mine development and future events and conditions that are not historical facts. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

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

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the inability or failure of the Company or SSR Mining to satisfy the conditions for closing the Transaction including regulatory approvals; the availability of funds; the financial position of the Company, timing and content of work programs; results of exploration activities and development of mineral properties; the calculation of mineral resources including the Historical Estimate; the receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses; currency fluctuations; the ultimate impact of the COVID 19 pandemic on operations and results; national and local governments’ legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development and risks in obtaining necessary licenses and permits.

Although the forward-looking statements contained herein reflect management’s current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Endeavour cannot be certain that actual results will be consistent with such forward-looking information. As a result, the Company cannot guarantee that the Transaction will be completed on the terms and within the time disclosed herein or at all.

_______________________________________________
1 One of the world’s largest undeveloped silver deposits is based on publicly filed data available on SNL Metals and Mining and company disclosure as at December 31, 2021 and includes the following projects: Navidad project (Argentina), Cordero (Mexico) and Escobal (Guatemala). Other companies may calculate their respective resource base differently.

2 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and the SSR Mining 2020 AIF, which are available at www.ssrmining.com and on SEDAR at www.sedar.com. The economic analysis presented in the 2012 Technical Report is not considered current, is not being relied upon by Endeavour and should not be considered as representing the expected economic outcome under Endeavour’s ownership. A qualified person has not done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves. The Company is not treating this information as current mineral resources or reserves, has not verified this information and is not relying on it. Following closing of the Transaction, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

3 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and SSR Mining’s 2020 AIF, which are available at www.ssrmining.com and on SEDAR at www.sedar.com. The economic analysis presented in the 2012 Technical Report is not considered current and is not being relied upon by Endeavour and should not be considered as representing the expected economic outcome under Endeavour’s ownership. A qualified person has not done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves. The Company is not treating this information as current mineral resources or reserves, has not verified this information and is not relying on it. Following closing of the Transaction, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

4 For more information regarding Endeavour’s mineral reserve and mineral resource estimates and related notes, please refer to the Company’s annual information form for the year ended December 31, 2020 dated February 25, 2021 available on the Company’s website at www.edrsilver.com and SEDAR at www.sedar.com.

Bunker Hill Geophysics Survey Identifies Large-Scale, Near-Surface Anomalies to the South of Existing Mine Footprint

Research, News, and Market Data on Bunker Hill Mining

 

HIGHLIGHTS:
 

• First ever high-resolution model of Induced Polarization (“IP”) geophysical data completed, revealing multiple large-scale, near-surface anomalies matching known responses of historically mined sulfide mineralization
• Rockford Target displays similar lithologic setting to the historical March stope, the single largest producing region of the Bunker Hill Mine, and is located 250’ south of the existing mine footprint
• Government Gulch (“GG”) Target includes several zones, with the largest having a similar scale and orientation to the Quill-Newgard zone, the largest ever continuously mineralized zone identified at the mine
• Shallow nature of target areas (<400 ft depth) allows for low-cost surface drilling from existing roadways
• Significant potential to increase mineralized resource above the water table through further exploration

TORONTO, Jan. 13, 2022 (GLOBE NEWSWIRE) — Bunker Hill Mining Corporation (the “Company”) (CSE: BNKR; OTCQB: BHLL) is pleased to announce the final results of its ground geophysical program.

Sam Ash, CEO, stated “We are excited to announce the final results of our ground geophysical survey, which indicates that Bunker Hill’s mineral endowment may extend well beyond the historic mine footprint and into the expansive 5,800 acre land package. Our analysis has identified multiple large scale, near-surface zones of potential new mineralization similar to what was historically mined, giving us confidence of possible success in future exploration campaigns.”

The geophysical program, which ended in September of 2021, has now been run through multiple inversion modeling processes to create a high-resolution 3D block model. Previously identified lithologic and structural features are well represented in the data and have allowed for Bunker Hill geologists to further refine geologic models over the program area previously generated from historic mapping programs.

Two key targets have been identified for further exploration: the Rockford Target and Government Gulch Target.

Mineralization at the Bunker Hill Mine is generally associated with 2 main structural orientations: a WNW strike for Zn-Pb-Ag massive to disseminated mineralization, (known locally as the “Bluebird” style mineralization) and a NE trend for Pb-Ag Quartz-Galena vein mineralization. 3D data collection and processing allowed for the survey to investigate both orientations in the same program. The two key anomalies identified are both tabular in nature and have WNW strikes. This orientation, along with their size and close association to known large-scale fault structures, make them similar to the mineralization identified in Bunker Hill’s current Mineral Resource Estimate, effective November 29, 2021.

The Rockford Target

The Rockford target is hosted at the intersection of the Rockford and Midland faults. Host lithology is the Revett quartzite, here identified by its relatively low IP and high resistivity values. Disseminated pyrite, a dominant feature of the Zn-Pb-Ag mineralization shows an elevated IP response, with a decrease in resistivity. Normal fault wedge-hosted mineralization is known to have existed in multiple locations throughout historic development at Bunker, specifically the March stope which was the single largest producing region of the Bunker Hill mine recording ~4.7Mt of material at 12.03% Pb, 5.22 OPT Ag, and 2.25% Zn. Top of the target zone lies only 150’ from surface, 250’ from the historical mine footprint and is located adjacent to an existing roadway with excellent access for future drill testing.

A historic down-hole IP geophysical survey on the 21-level of Bunker Hill shows the IP/resistivity characteristics of both massive and finely disseminated sulfide mineralization within Revett rocks to match those of the Rockford target zone.

The Government Gulch (“GG”) Target

The Government Gulch fault brings the deeper Belt series rocks into contact with the Revett quartzites. The GG target zones lie approximately 900’ in the hanging wall of the Government Gulch fault structure and both strike NW with an approximately vertical, slightly NE dip. The tabular nature of the targets shows well defined, along-strike truncation of the combined high IP response with very low resistivity values, separating the target zone from other similar response characteristics of the Prichard thought to identify stratigraphically constrained beds with elevated pyrite content. The larger of the zones measures approximately 1000’ along strike, 250’ wide and 700’ down dip, placing it on the same scale as the largest-ever identified, continuously mineralized zone at Bunker Hill, the Quill-Newgard.

The top of the GG target zone lies less than 400’ surface and directly adjacent to the already established road network used for the mobilization of the geophysical program. Bunker Hill is currently developing options to mobilize an exploration program to advance and delineate both the Rockford and GG target zones.

QUALIFIED PERSON

Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an independent “Qualified Person” as defined by NI 43-101 and is acting as the Qualified Person for the Company. He has reviewed and approved the technical information summarized in this news release.

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership the Bunker Hill Mining Corp, intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional information contact:

David Wiens, CFA

CFO & Corporate Secretary

+1 208 370 3665

ir@bunkerhillmining.com

Cautionary Statements

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information.

Forward looking information in this news release includes, but is not limited to, the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability 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; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; the Company’s ability to restart and develop the Bunker Hill Mine and the risks of not basing a production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, resulting in increased uncertainty due to multiple technical and economic risks of failure which are associated with this production decision including, among others, areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit with no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved; failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations; failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits contained in our website may not be comparable with information made public by companies that report in accordance with U.S. standards.

CanAlaska Commences Drill Program at Waterbury South Property

Research, News, and Market Data on CanAlaska Uranium

 

4,000 m program focused on extension of polymetallic uranium, nickel, zinc, cobalt mineralization

Shallow depth targets 10 km southeast of Cigar Lake uranium mine

Similarities to the Cigar Lake polymetallic uranium deposit

 Vancouver, Canada, January 13, 2022 – CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) (“CanAlaska” or the “Company”) is pleased to announce the commencement of a 4,000 m, winter drill program at the Waterbury South uranium project in the northeastern Athabasca Basin. The project is located approximately 10 km southeast of the Cigar Lake uranium mine and is 100% owned and operated by CanAlaska. The drill program will focus on the extension of polymetallic unconformity uranium mineralization associated with nickel, arsenic, cobalt, and zinc, intersected during the previous 2021 winter drill program (see News Release dated June 17, 2021).

During the 2021 drill program, the Company completed three drillholes for a total of 1,347.5 m. Results of this program highlighted sandstone alteration and structure indicative of a mineralizing uranium event along the drill fence containing WAT-008 and WAT-009 which were drilled near failed Cameco drill hole SOD-253 (Figure 2).

WAT-008 intersected a pyrite-rich zone associated with a fault in the mid-sandstone column well above the unconformity, followed by a thick graphitic unit in the basement which was the target for WAT-009.

WAT-009 intersected bleaching throughout the lower 100 m of the sandstone column that increases in intensity near the unconformity where a 3.3 m wide interval of intense clay alteration with associated sooty pyrite, nickel-sulfides, and chlorite straddles the unconformity. The strongly altered lower sandstone column is associated with polymetallic uranium mineralization characterized by 0.5 m with 405 ppm uranium, 2.42 % nickel, 2.34 % arsenic, 0.5 % zinc, and 801 ppm cobalt from 349 – 349.5 m (see News ARelease dated June 17, 2021). In the upper basement of WAT-009, 20 m below the unconformity, a seven-metre-long structure of broken rock with intense clay and hematite alteration was intersected. The basement below this structure consists of several intervals of clay and chlorite altered graphitic pelite with well-developed re-activated semi-brittle fault zones that show evidence for strong fluid-rock interaction and represent targets at the unconformity that have not yet been drilled.

The Company has started mobilization to the field with 6 to 8 drillholes planned for the winter program. Equipment is currently being moved into site and drilling is expected to begin next week. The first drillholes will focus on following up the encouraging results in WAT-009.

CanAlaska VP Exploration, Nathan Bridge, comments “The results from the 2021 drilling program on the Waterbury South project have set us up for a much larger program in 2022, effectively doubling the meterage from the previous campaign. The polymetallic unconformity uranium mineralization with associated nickel, arsenic, cobalt, and zinc in WAT-009 is reminiscent of metal associations documented at the nearby Cigar Lake deposit. In addition, nickel-sulfide zonation along the margins of high-grade uranium deposits has been well documented in several other high-grade unconformity uranium deposits in the Athabasca Basin, including Fox Lake, Hurricane, Key Lake, and Midwest. This metal zonation provides the team with vectors in the system and has us excited to begin testing our follow-up drill targets in the 2022 program.”

CanAlaska CEO, Cory Belyk, comments “The Company and the team are excited to get this program underway for CanAlaska shareholders. The alteration and mineralization similarities to other known tier 1 uranium deposits in the eastern Athabasca Basin is striking and must be paid attention to, which is why we have chosen to start the 2022 drilling campaign on the Waterbury South project.  We look forward to the months ahead as we move this program forward.”

Other News

 The Company has mobilized to its West McArthur project to begin a 200 line-km Stepwise Moving Loop Time Domain Electromagnetic Survey (TDEM). The geophysical survey is part of the approved 2022 exploration program, budgeted at $5 Million. The goal of the TDEM survey is to outline and prioritize drill targets along the remainder of the Grid 5 conductive corridor southwest of the strong alteration and fault structures intersected during the recently completed 2021 exploration program. The Company anticipates the program will take approximately two months to complete and targets from the survey will be ready for drill testing during the upcoming summer exploration program.

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) holds interests in approximately 300,000 hectares (750,000 acres), in Canada’s Athabasca Basin – the “Saudi Arabia of Uranium.”  CanAlaska’s strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company’s properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world’s richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds.

The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska’s Vice President, Exploration.

For further information visit www.canalaska.com.

On behalf of the Board of Directors

“Peter Dasler”
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.

Contacts:

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: info@canalaska.com

Cory Belyk, CEO and Executive Vice President
Tel: +1.604.688.3211 x 138
Email: cbelyk@canalaska.com

Neither 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 release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

CanAlaska Commences Drill Program at Waterbury South Property

Research, News, and Market Data on CanAlaska Uranium

 

4,000 m program focused on extension of polymetallic uranium, nickel, zinc, cobalt mineralization

Shallow depth targets 10 km southeast of Cigar Lake uranium mine

Similarities to the Cigar Lake polymetallic uranium deposit

 Vancouver, Canada, January 13, 2022 – CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) (“CanAlaska” or the “Company”) is pleased to announce the commencement of a 4,000 m, winter drill program at the Waterbury South uranium project in the northeastern Athabasca Basin. The project is located approximately 10 km southeast of the Cigar Lake uranium mine and is 100% owned and operated by CanAlaska. The drill program will focus on the extension of polymetallic unconformity uranium mineralization associated with nickel, arsenic, cobalt, and zinc, intersected during the previous 2021 winter drill program (see News Release dated June 17, 2021).

During the 2021 drill program, the Company completed three drillholes for a total of 1,347.5 m. Results of this program highlighted sandstone alteration and structure indicative of a mineralizing uranium event along the drill fence containing WAT-008 and WAT-009 which were drilled near failed Cameco drill hole SOD-253 (Figure 2).

WAT-008 intersected a pyrite-rich zone associated with a fault in the mid-sandstone column well above the unconformity, followed by a thick graphitic unit in the basement which was the target for WAT-009.

WAT-009 intersected bleaching throughout the lower 100 m of the sandstone column that increases in intensity near the unconformity where a 3.3 m wide interval of intense clay alteration with associated sooty pyrite, nickel-sulfides, and chlorite straddles the unconformity. The strongly altered lower sandstone column is associated with polymetallic uranium mineralization characterized by 0.5 m with 405 ppm uranium, 2.42 % nickel, 2.34 % arsenic, 0.5 % zinc, and 801 ppm cobalt from 349 – 349.5 m (see News ARelease dated June 17, 2021). In the upper basement of WAT-009, 20 m below the unconformity, a seven-metre-long structure of broken rock with intense clay and hematite alteration was intersected. The basement below this structure consists of several intervals of clay and chlorite altered graphitic pelite with well-developed re-activated semi-brittle fault zones that show evidence for strong fluid-rock interaction and represent targets at the unconformity that have not yet been drilled.

The Company has started mobilization to the field with 6 to 8 drillholes planned for the winter program. Equipment is currently being moved into site and drilling is expected to begin next week. The first drillholes will focus on following up the encouraging results in WAT-009.

CanAlaska VP Exploration, Nathan Bridge, comments “The results from the 2021 drilling program on the Waterbury South project have set us up for a much larger program in 2022, effectively doubling the meterage from the previous campaign. The polymetallic unconformity uranium mineralization with associated nickel, arsenic, cobalt, and zinc in WAT-009 is reminiscent of metal associations documented at the nearby Cigar Lake deposit. In addition, nickel-sulfide zonation along the margins of high-grade uranium deposits has been well documented in several other high-grade unconformity uranium deposits in the Athabasca Basin, including Fox Lake, Hurricane, Key Lake, and Midwest. This metal zonation provides the team with vectors in the system and has us excited to begin testing our follow-up drill targets in the 2022 program.”

CanAlaska CEO, Cory Belyk, comments “The Company and the team are excited to get this program underway for CanAlaska shareholders. The alteration and mineralization similarities to other known tier 1 uranium deposits in the eastern Athabasca Basin is striking and must be paid attention to, which is why we have chosen to start the 2022 drilling campaign on the Waterbury South project.  We look forward to the months ahead as we move this program forward.”

Other News

 The Company has mobilized to its West McArthur project to begin a 200 line-km Stepwise Moving Loop Time Domain Electromagnetic Survey (TDEM). The geophysical survey is part of the approved 2022 exploration program, budgeted at $5 Million. The goal of the TDEM survey is to outline and prioritize drill targets along the remainder of the Grid 5 conductive corridor southwest of the strong alteration and fault structures intersected during the recently completed 2021 exploration program. The Company anticipates the program will take approximately two months to complete and targets from the survey will be ready for drill testing during the upcoming summer exploration program.

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSX-V: CVV; OTCQB: CVVUF; Frankfurt: DH7N) holds interests in approximately 300,000 hectares (750,000 acres), in Canada’s Athabasca Basin – the “Saudi Arabia of Uranium.”  CanAlaska’s strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company’s properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world’s richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds.

The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska’s Vice President, Exploration.

For further information visit www.canalaska.com.

On behalf of the Board of Directors

“Peter Dasler”
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.

Contacts:

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: info@canalaska.com

Cory Belyk, CEO and Executive Vice President
Tel: +1.604.688.3211 x 138
Email: cbelyk@canalaska.com

Neither 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 release.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

Bunker Hill Geophysics Survey Identifies Large-Scale, Near-Surface Anomalies to the South of Existing Mine Footprint

Research, News, and Market Data on Bunker Hill Mining

 

HIGHLIGHTS:
 

• First ever high-resolution model of Induced Polarization (“IP”) geophysical data completed, revealing multiple large-scale, near-surface anomalies matching known responses of historically mined sulfide mineralization
• Rockford Target displays similar lithologic setting to the historical March stope, the single largest producing region of the Bunker Hill Mine, and is located 250’ south of the existing mine footprint
• Government Gulch (“GG”) Target includes several zones, with the largest having a similar scale and orientation to the Quill-Newgard zone, the largest ever continuously mineralized zone identified at the mine
• Shallow nature of target areas (<400 ft depth) allows for low-cost surface drilling from existing roadways
• Significant potential to increase mineralized resource above the water table through further exploration

TORONTO, Jan. 13, 2022 (GLOBE NEWSWIRE) — Bunker Hill Mining Corporation (the “Company”) (CSE: BNKR; OTCQB: BHLL) is pleased to announce the final results of its ground geophysical program.

Sam Ash, CEO, stated “We are excited to announce the final results of our ground geophysical survey, which indicates that Bunker Hill’s mineral endowment may extend well beyond the historic mine footprint and into the expansive 5,800 acre land package. Our analysis has identified multiple large scale, near-surface zones of potential new mineralization similar to what was historically mined, giving us confidence of possible success in future exploration campaigns.”

The geophysical program, which ended in September of 2021, has now been run through multiple inversion modeling processes to create a high-resolution 3D block model. Previously identified lithologic and structural features are well represented in the data and have allowed for Bunker Hill geologists to further refine geologic models over the program area previously generated from historic mapping programs.

Two key targets have been identified for further exploration: the Rockford Target and Government Gulch Target.

Mineralization at the Bunker Hill Mine is generally associated with 2 main structural orientations: a WNW strike for Zn-Pb-Ag massive to disseminated mineralization, (known locally as the “Bluebird” style mineralization) and a NE trend for Pb-Ag Quartz-Galena vein mineralization. 3D data collection and processing allowed for the survey to investigate both orientations in the same program. The two key anomalies identified are both tabular in nature and have WNW strikes. This orientation, along with their size and close association to known large-scale fault structures, make them similar to the mineralization identified in Bunker Hill’s current Mineral Resource Estimate, effective November 29, 2021.

The Rockford Target

The Rockford target is hosted at the intersection of the Rockford and Midland faults. Host lithology is the Revett quartzite, here identified by its relatively low IP and high resistivity values. Disseminated pyrite, a dominant feature of the Zn-Pb-Ag mineralization shows an elevated IP response, with a decrease in resistivity. Normal fault wedge-hosted mineralization is known to have existed in multiple locations throughout historic development at Bunker, specifically the March stope which was the single largest producing region of the Bunker Hill mine recording ~4.7Mt of material at 12.03% Pb, 5.22 OPT Ag, and 2.25% Zn. Top of the target zone lies only 150’ from surface, 250’ from the historical mine footprint and is located adjacent to an existing roadway with excellent access for future drill testing.

A historic down-hole IP geophysical survey on the 21-level of Bunker Hill shows the IP/resistivity characteristics of both massive and finely disseminated sulfide mineralization within Revett rocks to match those of the Rockford target zone.

The Government Gulch (“GG”) Target

The Government Gulch fault brings the deeper Belt series rocks into contact with the Revett quartzites. The GG target zones lie approximately 900’ in the hanging wall of the Government Gulch fault structure and both strike NW with an approximately vertical, slightly NE dip. The tabular nature of the targets shows well defined, along-strike truncation of the combined high IP response with very low resistivity values, separating the target zone from other similar response characteristics of the Prichard thought to identify stratigraphically constrained beds with elevated pyrite content. The larger of the zones measures approximately 1000’ along strike, 250’ wide and 700’ down dip, placing it on the same scale as the largest-ever identified, continuously mineralized zone at Bunker Hill, the Quill-Newgard.

The top of the GG target zone lies less than 400’ surface and directly adjacent to the already established road network used for the mobilization of the geophysical program. Bunker Hill is currently developing options to mobilize an exploration program to advance and delineate both the Rockford and GG target zones.

QUALIFIED PERSON

Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an independent “Qualified Person” as defined by NI 43-101 and is acting as the Qualified Person for the Company. He has reviewed and approved the technical information summarized in this news release.

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership the Bunker Hill Mining Corp, intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional information contact:

David Wiens, CFA

CFO & Corporate Secretary

+1 208 370 3665

ir@bunkerhillmining.com

Cautionary Statements

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information.

Forward looking information in this news release includes, but is not limited to, the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability 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; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; the Company’s ability to restart and develop the Bunker Hill Mine and the risks of not basing a production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, resulting in increased uncertainty due to multiple technical and economic risks of failure which are associated with this production decision including, among others, areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit with no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved; failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations; failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits contained in our website may not be comparable with information made public by companies that report in accordance with U.S. standards.

Endeavour Silver to Acquire the Pitarrilla Project, One of the World’s Largest Undeveloped Silver Projects¹, Leveraging Regional Platform and Operating Expertise in Mexico

Research, News, and Market Data on Endeavour Silver

 

VANCOUVER, British Columbia, Jan. 13, 2022 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (“Endeavour” or the “Company”) (TSX: EDR, NYSE: EXK) has entered into a definitive agreement to purchase the Pitarrilla project (“ Pitarrilla ”) in Durango State, Mexico by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. (the “ Transaction ”) from SSR Mining Inc. (NASDAQ/TSX: SSRM; ASX: SSR) (” SSR Mining “) for total consideration of $70 million and a 1.25% net smelter returns royalty (“ NSR Royalty ”). All references to dollars ($) in this news release are to United States dollars (US$).

Pitarrilla is a large undeveloped silver, lead, and zinc project located 160 kilometres north of Durango City, in northern Mexico. The Pitarrilla property consists of 4,950 hectares across five concessions and has significant infrastructure in place with direct access to utilities. SSR Mining filed a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) titled “NI 43-101 Technical Report on the Pitarrilla Project” dated December 14, 2012 (the “ 2012 Technical Report ”). The 2012 Technical Report provided a feasibility study outlining a large, mainly open-pit operation and a mineral resource estimate, which has since been updated by SSR Mining for its Annual Information Form for the financial year ended December 31, 2020 (the “ SSR Mining 2020 AIF ”) (together, the “Historical Estimate” ) 2 .

“The acquisition of Pitarrilla, one of the world’s largest undeveloped silver projects 1 , accelerates our vision to become a premier senior silver producer,” said Dan Dickson, Endeavour’s Chief Executive Officer. “We now have a tremendous growth pipeline, which in addition to Pitarrilla includes the Terronera and Parral projects, in a country where we have extensive experience and expertise. While Terronera is the next project to be developed, we anticipate that Pitarrilla will be a significant asset in our portfolio and may take priority over the advancement of Parral. We will be in a position to make such a decision once we complete further drilling and analyze the economics of various scales and options for production.”

Total Consideration

Total consideration payable on closing of the Transaction is $70 million, consisting of $35 million in Endeavour shares and a further $35 million in cash or in Endeavour shares at the election of SSR Mining and agreed to by Endeavour. The number of Endeavour shares to be issued will be based on a deemed price of $4.0805 per share, being the volume weighted average price of Endeavour’s common shares on the New York Stock Exchange (“ NYSE ”) for the 10 business days immediately preceding the date of signing the definitive agreement. The shares will be subject to a hold period of four months and one day following the date of closing.

SSR Mining will retain a 1.25% NSR Royalty on Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it.

Any cash component will be satisfied with cash on hand. As at September 30, 2021, Endeavour had $101 million in cash and cash equivalents and $129 million in working capital.

Strategic Rationale for Acquisition

• Acquiring One of the World’s Largest Undeveloped Silver Projects
  • As outlined in the 2012 Technical Report and updated in the SSR Mining 2020 AIF, Pitarrilla has the following mineral resource estimate which Endeavour is treating as a Historical Estimate 3 :
    • a measured & indicated mineral resource (open-pit and underground) of 525.27 million ounces (oz) silver (Ag) in 164.79 million tonnes grading 99.1 grams per tonne (gpt) Ag.
    • an open-pit inferred mineral resource of 21.21 million oz Ag in 8.52 million tonnes at an average grade of 77.4 gpt and underground inferred mineral resource of 5.46 million oz Ag in 1.23 million tonnes at a grade of 138.1 gpt.
  • By way of comparison, Endeavour Silver has the following mineral reserve and resource estimates 4 as outlined in its Annual Information Form for the year ended December 31, 2020:
    • a proven and probable mineral reserve of 86.3 million oz silver equivalent (AgEq) from 6.99 million tonnes at 380 gpt AgEq.
    • a measured & indicated mineral resource of 43.7 million oz AgEq in 4.40 million tonnes at an average grade of 309 gpt AgEq.
    • an inferred mineral resource of 87.13 million oz AgEq in 8.04 million tonnes at an average grade of 337 gpt AgEq.
• Pitarrilla Leverages Endeavour’s Platform and Experience in Mining-Friendly Mexico
  • Acquisition is an excellent fit for Endeavour’s experienced regional team, which has a successful development, exploration and underground mining track record.
• Accretive Acquisition at an Attractive Valuation
  • Once a current resource is defined, Pitarrilla is expected to be substantially accretive on a silver equivalent resource per share metric — anticipate announcing a current resource in 2022.
  • Endeavour expects to maintain significant silver exposure, silver beta and trading multiples.
  • Pitarrilla provides additional optionality in a rising silver price environment.
• Enhances Endeavour’s Attractive Growth Pipeline
  • Pitarrilla, together with Endeavour’s Terronera and Parral projects, form the key cornerstones of Endeavour’s mid to long-term growth profile.
  • Over the next several years, analyze the economics of various scales of production, including underground option, and then advance towards potential development and production to strengthen Endeavour’s long-term production and free cash flow profile.
  • Currently categorized as a development asset, Pitarrilla has been de-risked by SSR Mining as follows:
    • several key exploration and mining permits have been obtained; and
    • collaboration agreements are in place with the local community.
• Potential Exploration Upside as Land Package Remains Largely Underexplored
  • Deposit remains open with minimal drilling completed to explore the deposit at depth.
  • Significant underexplored land package with an opportunity to make new discoveries.
  • The geology at Pitarrilla and at Endeavour’s underground mines – Guanacevi and Bolanitos – is broadly similar.
  • Upside potential from upper oxide resource as well as open-pit and underground optionality.

Approvals and Timing

The Transaction has been approved by the board of directors of Endeavour.

Closing of the Transaction remains subject to TSX and NYSE regulatory approvals and receipt of Mexican Federal Economic Competition Commission approval, as well as customary closing conditions for a transaction of this kind, which is expected to occur in the first half of 2022.

On closing, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

Advisors and Counsel

PI Financial acted as Endeavour’s financial advisor. Koffman Kalef LLP acted as the Company’s legal counsel.

Conference Call and Webcast

Management will host a live conference call and audio webcast later today to discuss the highlights of the Transaction as follows:

Endeavour Qualified Person and QA/QC

The scientific and technical data contained in this news release relating to the Pitarrilla project has been reviewed and approved by Dale Mah, P.Geo., a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Mah is Vice President Corporate Development of Endeavour.

About Endeavour Silver

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

SOURCE Endeavour Silver Corp.

Contact Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@edrsilver.com
Website: www.edrsilver.com

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Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the timing and completion of the Transaction, estimates of mineral resources including the Historical Estimate, future plans and objectives of the Company, proposed operations of the Company at Pitarrilla including mine development and future events and conditions that are not historical facts. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

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

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the inability or failure of the Company or SSR Mining to satisfy the conditions for closing the Transaction including regulatory approvals; the availability of funds; the financial position of the Company, timing and content of work programs; results of exploration activities and development of mineral properties; the calculation of mineral resources including the Historical Estimate; the receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses; currency fluctuations; the ultimate impact of the COVID 19 pandemic on operations and results; national and local governments’ legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development and risks in obtaining necessary licenses and permits.

Although the forward-looking statements contained herein reflect management’s current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Endeavour cannot be certain that actual results will be consistent with such forward-looking information. As a result, the Company cannot guarantee that the Transaction will be completed on the terms and within the time disclosed herein or at all.

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1 One of the world’s largest undeveloped silver deposits is based on publicly filed data available on SNL Metals and Mining and company disclosure as at December 31, 2021 and includes the following projects: Navidad project (Argentina), Cordero (Mexico) and Escobal (Guatemala). Other companies may calculate their respective resource base differently.

2 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and the SSR Mining 2020 AIF, which are available at www.ssrmining.com and on SEDAR at www.sedar.com. The economic analysis presented in the 2012 Technical Report is not considered current, is not being relied upon by Endeavour and should not be considered as representing the expected economic outcome under Endeavour’s ownership. A qualified person has not done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves. The Company is not treating this information as current mineral resources or reserves, has not verified this information and is not relying on it. Following closing of the Transaction, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

3 For more information on the Historical Estimate and related notes, please refer to the 2012 Technical Report and SSR Mining’s 2020 AIF, which are available at www.ssrmining.com and on SEDAR at www.sedar.com. The economic analysis presented in the 2012 Technical Report is not considered current and is not being relied upon by Endeavour and should not be considered as representing the expected economic outcome under Endeavour’s ownership. A qualified person has not done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves. The Company is not treating this information as current mineral resources or reserves, has not verified this information and is not relying on it. Following closing of the Transaction, Endeavour plans to prepare a current mineral resource estimate for Pitarrilla, develop exploration targets and analyze the economics of various scales of production.

4 For more information regarding Endeavour’s mineral reserve and mineral resource estimates and related notes, please refer to the Company’s annual information form for the year ended December 31, 2020 dated February 25, 2021 available on the Company’s website at www.edrsilver.com and SEDAR at www.sedar.com.