Wednesday, December 15, 2021

Coeur Mining (CDE)
Exploration Activities Offer a Gold Lining

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

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.

Exploration update. Coeur provided an update on its exploration activities at Rochester in northern Nevada and the Crown properties in southern Nevada. Through October 2021, Coeur drilled 307,925 meters at six different locations and expects full year exploration expenditures of $65 million to $75 million. In late 2021, the company turned its attention to West Rochester, specifically the Gold Ridge and Lincoln Hill zones which could be a source of future higher-grade gold resources and to provide greater optionality for processing material from the larger Rochester district. The West Rochester property includes Lincoln Hill, Independence Hill, and Gold Ridge, and is west of infrastructure under construction as part of the Rochester expansion.


Expanding the scope at Rochester.  Mapping, sampling, and geophysical surveys supported a focused drilling program over a much larger area at Rochester than undertaken previously. Through October, Coeur drilled 74 holes in the Rochester pit and NV Packard areas. Two rigs recently began drilling at Lincoln Hill and Gold Ridge. In early 2022, Coeur expects to receive approval for a 250-acre drilling …

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

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

Friday, December 10, 2021

Great Bear Resources (GTBAF)(GBR:CA)
Great Bear Shares Rise on Acquisition Announcement; Rating Lowered to Market Perform

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

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.

Kinross Gold Corporation to acquire Great Bear Resources. Great Bear announced a definitive agreement to be acquired by Kinross (TSX: K, NYSE: KGC) by way of a court-approved plan of arrangement. The transaction is expected to be completed in the first quarter of 2022, subject to approval by Great Bear shareholders, receipt of court and regulatory approvals, and satisfaction of certain closing conditions. We think the transaction is a win for both companies who have a shared vision of the potential for a multi-deposit mine complex at Dixie, including a potential high-grade open pit mine and a long-life underground mine.


Terms of the transaction.  Great Bear shareholders will have the option to receive either: 1) C$29.00 in cash, or 2) 3.8564 Kinross shares per Great Bear share, subject to pro-ration, up to aggregate maximums of 75% cash and 40% Kinross shares on a fully diluted basis. The agreement also provides contingent consideration for Great Bear shareholders based on certain milestones …

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. 

Friday, December 10, 2021

Great Bear Resources (GTBAF)(GBR:CA)
Great Bear Shares Rise on Acquisition Announcement; Rating Lowered to Market Perform

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

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.

Kinross Gold Corporation to acquire Great Bear Resources. Great Bear announced a definitive agreement to be acquired by Kinross (TSX: K, NYSE: KGC) by way of a court-approved plan of arrangement. The transaction is expected to be completed in the first quarter of 2022, subject to approval by Great Bear shareholders, receipt of court and regulatory approvals, and satisfaction of certain closing conditions. We think the transaction is a win for both companies who have a shared vision of the potential for a multi-deposit mine complex at Dixie, including a potential high-grade open pit mine and a long-life underground mine.


Terms of the transaction.  Great Bear shareholders will have the option to receive either: 1) C$29.00 in cash, or 2) 3.8564 Kinross shares per Great Bear share, subject to pro-ration, up to aggregate maximums of 75% cash and 40% Kinross shares on a fully diluted basis. The agreement also provides contingent consideration for Great Bear shareholders based on certain milestones …

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. 

Thursday, December 09, 2021

Aurania Resources (AUIAF)(ARU:CA)
Moving Closer to a Discovery?

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.

Tiria-Shimpia drill results may require follow-up. Drill hole SH-004 at the Tiria-Shimpia silver-zinc target returned a high-grade intercept of 12.4% zinc, 5.4 grams of silver per tonne, 61 grams of gallium per tonne, and 9 grams of indium per tonne over 2.0 meters at a depth of 52.0 meters. The mineralized interval lies within an 8.5-meter halo of 3% zinc. Management may consider drilling deeper and below weathered sulphide mineralization to intersect higher grade zinc-silver shoots at depth.


Hole TSN1-009 at Tsenken in progress.  Drilling recently commenced at Hole TSN1-009 with a planned depth of approximately 500 meters. The target of Hole TSN1-009 is copper-silver mineralization in evaporite mineral beds within sedimentary layers. Because Hole TSN1-009 has reached 350 meters depth and penetrated numerous salt layers in the red bed, management believes there is significant potential …

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. 

Kinross to Acquire Great Bear for C$29.00 per Share, Plus a Contingent Value Right

 

• Significant premium of 40% to Great Bear’s 20-day VWAP on the TSX-V for Great Bear shareholders
• Option to select cash or Kinross common shares as consideration, subject to pro-ration
• Opportunity for continued economic participation in the future potential of the Dixie project while gaining exposure to Kinross’ diverse portfolio of high-quality operating mines, sector-leading production growth and free cash flow generation in a robust gold price environment
• Kinross has the technical, development, operating and financial capabilities to advance Dixie as a top growth priority building on and further enhancing its top tier potential
• Unanimously recommended by Great Bear’s Board of Directors
• Kinross is committed to the highest standards of ESG and will be a responsible steward for all Dixie stakeholders, continuing the long-term partnership with Wabauskang and Lac Seul First Nations
• Investor conference call at 5:00 a.m. PST (8:00 a.m. EST) on Thursday, December 9, 2021

December 8, 2021 – Vancouver, British Columbia, Canada – Great Bear Resources Ltd. (the “Company” or “Great Bear”, TSX-V: GBR; OTCQX: GTBAF) today announced that it has entered into a binding agreement (the “Arrangement Agreement”) with Kinross Gold Corporation (“Kinross”, TSX: K; NYSE: KGC) under which Kinross has agreed to acquire all of the outstanding common shares of Great Bear (the “Transaction”).

Under the terms of the Transaction, Great Bear shareholders will receive upfront consideration of approximately C$1.8 billion, representing C$29.00 per Great Bear common share on a fully diluted basis. Great Bear shareholders will be able to elect to receive the upfront consideration as either (i) C$29.00 in cash or (ii) 3.8564 Kinross shares per Great Bear share, both subject to proration. The upfront consideration will be subject to maximum aggregate cash consideration of approximately C$1.4 billion (representing 75% of the upfront consideration) or maximum aggregate shares issuable of 95.8 million¹ (representing 40% of the upfront consideration), depending on the election of Great Bear shareholders. Great Bear shareholders who do not elect cash or Kinross shares will be deemed to have elected to receive cash, subject to pro-ration. The Transaction Price represents a premium of 31% and 40% to the closing price and the volume weighted average price (“VWAP”), respectively, of Great Bear’s shares on the TSX-V for the 20 day period ending December 7, 2021.

Great Bear shareholders will also receive contingent consideration in the form of contingent value rights (“CVRs”) providing for further potential consideration equal to 0.1330 of a Kinross share per Great Bear common share which represents approximately C$58.2 million in aggregate consideration, or C$1.00 per Great Bear common share, on a partially diluted² basis (based upon the closing price of a Kinross share on the TSX as at December 7, 2021). The contingent consideration will be payable in connection with Kinross’ public announcement of commercial production at the Dixie project, provided that at least 8.5 million gold ounces of measured and indicated mineral resources have been disclosed.

On closing, the Transaction is expected to result in Great Bear shareholders owning approximately 7% of Kinross, on a fully diluted basis, assuming full take-up of the share consideration. Upon satisfaction of the payment conditions under the terms of the CVRs, Great Bear shareholders would own approximately 8% of Kinross, on a fully diluted basis (based upon the number of Kinross shares outstanding following completion of the Transaction).

Chris Taylor, President and CEO of Great Bear said: “The acquisition of Great Bear by Kinross is an outstanding opportunity for our shareholders, partners at Wabauskang and Lac Seul First Nations, and the local communities of Northern Ontario.

“The Transaction delivers a compelling premium for Great Bear’s shareholders, reflecting the top tier nature of the Dixie project, while offering beneficial exposure as Kinross shareholders to a high-quality operating portfolio and growing production base.  Kinross’ Canadian identity and headquarters in Ontario will facilitate close ties between the Company and the Dixie project’s local communities, which will help to maximize benefits to the area, including employment and training.

“As a senior gold producer, Kinross has the financial strength, technical expertise, and commitment to the highest ESG practices to advance the Dixie project at the pace and scale that this industry-leading discovery deserves.  Dixie will remain a centrepiece project that will receive significant development and exploration focus, which will continue to unlock and maximize the project’s value, while mitigating our shareholders’ exposure to the risks of a single-asset developer.”

J. Paul Rollinson, President and CEO of Kinross Gold said: “The Dixie project represents an exciting opportunity to develop a potentially top tier deposit into a large, long-life mine complex.  In addition to the prospect of developing a quality, high-grade open pit mine, we also believe that a significant portion of the asset’s value is its longer-term potential, which includes the view of a sizeable underground operation. 

“Kinross has the strong technical expertise and experience to successfully advance the project from exploration to development and unlock considerable value for our shareholders.  Our extensive due diligence reinforced the scarcity of an asset of this quality and value.  The Dixie project has multiple high-potential mineralized zones which remain open along strike and at depth, and we are confident that the asset has strong untapped upside with numerous avenues for growth.

“We are pleased to achieve our goal of adding a high-quality asset in our home jurisdiction that further bolsters our global portfolio and can potentially provide long-term tax benefits.  The Dixie project is ideally located in the renowned Red Lake mining district in Northern Ontario near established infrastructure and in a province with a low-carbon energy grid.  We look forward to building strong relationships with the Wabauskang and Lac Seul First Nations and will work with them to ensure that the project delivers sustainable benefits to their communities and respects their way of life.”

 

Details of the Transaction

The Transaction, which is not subject to a financing condition, will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) and will require the approval of: (i) 66 2/3% of the votes cast by the holders of Great Bear’s common shares; (ii) 66 2/3% of the votes cast by holders of Great Bear common shares, restricted share units, deferred share units and options, voting together as a single class, and; (iii) “minority approval” in accordance with Multilateral Instrument 61-101, at a special meeting of Great Bear security holders to be held to consider the Transaction (the “Special Meeting”). In addition to approval by Great Bear security holders, the Transaction is also subject to the receipt of court approval, regulatory approvals including competition clearances in Canada, and other customary closing conditions for transactions of this nature. The Transaction is expected to be completed in the first quarter of 2022.

The Arrangement Agreement provides for customary deal-protection provisions, including a non-solicitation covenant on the part of Great Bear and a right for Kinross to match any Superior Proposal (as defined in the Arrangement Agreement). The Arrangement Agreement includes a termination fee of C$85 million, payable by Great Bear, under certain circumstances (including if the Arrangement Agreement is terminated in connection with Great Bear pursuing a Superior Proposal).  The directors and senior officers of Great Bear, in addition to certain securityholders, owning in aggregate approximately 20.04% of Great Bear’s voting securities have entered into voting support agreements pursuant to which they have agreed to vote all the securities they own or control in favour of the Transaction.

Great Bear Board of Directors and Special Committee Recommendations

A special committee comprised entirely of independent directors of Great Bear (the “Special Committee”) unanimously recommended the Transaction to the board of directors of Great Bear (the “Great Bear Board”).  The Great Bear Board has evaluated the Arrangement Agreement with the Company’s management and legal and financial advisors and, following the receipt and review of a unanimous recommendation from the Special Committee, the Great Bear Board has unanimously approved the Arrangement and determined that the Arrangement is in the best interest of the Company, and the Great Bear Board has resolved to recommend that the Company’s shareholders vote in favour of the Transaction, all subject to the terms and conditions contained in the Arrangement Agreement.

GenCap Mining Advisory Ltd. and CIBC World Markets Inc. have provided opinions to the Great Bear Board and BMO Capital Markets has provided an opinion to the Special Committee and Board, stating that, as of the date of such opinions and based upon and subject to various assumptions, limitations and qualifications therein, the consideration to be received by the Great Bear shareholders pursuant to the Arrangement Agreement is fair, from a financial point of view, to such holders.

Further details regarding the terms of the Transaction are set out in the Arrangement Agreement, which will be publicly filed by Great Bear under its profile at www.sedar.com.  Additional information regarding the terms of the Arrangement Agreement, the background to the Transaction, the rationale for the recommendations made by the Special Committee and the Great Bear Board and how Great Bear shareholders can participate in and vote at the Special Meeting to be held to consider the Transaction will be provided in the management information circular for the Special Meeting which will be mailed to shareholders and also filed at www.sedar.com.  Shareholders are urged to read these and other relevant materials when they become available.

Advisors and Counsel

CIBC World Markets Inc. and GenCap Mining Advisory Ltd. are acting as co-advisors to Great Bear, and Blake, Cassels & Graydon LLP is acting as Great Bear’s legal counsel. BMO Capital Markets is acting as financial advisor to the Special Committee.  Cormark Securities Inc. provided capital markets advice to Great Bear.

Webcast and Conference Call

Great Bear and Kinross will host an investor conference call and webcast to discuss the Transaction on Thursday, December 9, 2021 at 5:00 a.m. PST (8:00 a.m. EST), followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – (833) 968-2237; Passcode: 8144017

Outside of Canada & US – (825) 312-2059; Passcode: 8144017

Replay (available up to 14 days after the call):

Canada & US toll-free – (800) 585-8367; Passcode: 8144017

Outside of Canada & US – (416) 621-4642; Passcode: 8144017

About Great Bear

Great Bear Resources Ltd. is a Vancouver-based gold exploration company focused on advancing its 100% owned Dixie project in Northwestern Ontario, Canada.  A significant exploration drill program is currently underway to define the mineralization within a large-scale, high-grade disseminated gold discovery made in 2019, the LP Fault.  Additional exploration drilling is also in progress to expand and infill nearby high-grade gold zones, as well as to test new regional targets. 

Great Bear is a committed partner to all stakeholders, with a long-term vision of sustainable exploration to advance the Dixie project in a manner that demonstrates good stewardship of land, operational excellence and accountability.

About Kinross

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana.  Kinross’ focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).

Investor Contact

Cautionary note regarding forward-looking statements

This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic. Forward-looking statements include, but are not limited to statements with respect to the consummation and timing of the Transaction; approval by Great Bear’s shareholders; the satisfaction of the conditions precedent to the Transaction; the strengths, characteristics and potential of the Transaction; growth potential and expectations regarding the ability to advance the project, timing, receipt and anticipated effects of court, regulatory and other consents and approvals; the impact of the Transaction on local stakeholders and other anticipated benefits of the Transaction.  By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to failure to receive approval by Great Bear shareholders, the required court, regulatory and other consents and approvals to effect the Transaction, the potential of a third party making a superior proposal to the Transaction, the possibility that the Arrangement Agreement could be terminated under certain circumstances.

Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Such factors, among other things, include: impacts arising from the global disruption caused by the Covid-19 coronavirus outbreak, business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold or certain other commodities; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); discrepancies between actual and estimated metallurgical recoveries; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties.

Great Bear undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

	Image Credit: TORLEY (Flickr)

Will Copper Keep Motoring and Will Silver Lose its Tarnish in 2022?

 

Silver and copper seem to have been swimming in different economies this year. Silver is on track to decrease by its largest percentage since 2014, while copper is experiencing a third straight year of gains. What are the driving factors for the two different paths? Can copper continue its march higher? What would cause a reversal in silver’s dip?

Background

A big upward spike in silver during the last days of January 2021 seemed to be part of a r/wallstreetbets user effort to short squeeze equities that had short positions growing- in this case, silver ETFs and mining companies. It was a short-lived spike but managed to temporarily push the price of silver to an eight-year high. Since then, silver futures have been trading sideways to downward. Currently, the metal is down 17% on the year. The white metal has both industrial uses and is used as a store of value, this makes it popular during periods of inflation.  It’s also the second most popular metal for jewelry.

The ten-year chart below visually demonstrates how silver and copper loosely have tracked each other’s direction. Copper began its ascent halfway through last year, and the direction has only recently paused to consolidate. Silver began consolidating about the same time copper turned upward.

 

 

Historically it can be said that when copper outperforms silver, expectations for global economic growth are high and inflation expectations are low. Both global growth and current expectations for inflation are now growing.

Copper

Copper demand benefits from construction, electronics, and energy generation and storage. One key theme that has grown during 2021 is the redesigning and rebuilding of the world’s energy infrastructure. Copper is one of the key elements required to deliver change to this infrastructure. The U.S., China, and the rest of the industrialized world have become very economically active following the slowdown from the pandemic. All are now committing huge sums on infrastructure projects that will require the highly conductive, low corrosive metal. The Made in China 2025 and China Standards 2035 initiatives include spending US$1.4 trillion on copper-heavy infrastructure programs. This would include 5G networks, industrial internet, inter-city transportation and rail, ultra-high-voltage power transmission and EV charging stations.

 

 

SIlver

Silver also has its place in the global energy infrastructure buildout. Although it is considered a precious metal and is popular for jewelry, the scarce metal is seeing increased industrial use including, solar panels, cell phones, thermal electrical connections, to name a few. Medically,  Its non-toxic, antimicrobial properties make it a top choice in medicine and other products where being sanitary is imperative.

The pandemic did little for the silver jewelry market; however, the post-pandemic, where more will be treating themselves, dressing up, and being seen, could spark demand for jewelry. The infrastructure buildout continued growth to all things electronic and move to EVs will not impact silver demand as much as it does the more abundant copper but could still cause a meaningful demand increase. At the present cost of over $22 an ounce, most silver miners and junior miners benefit from continuing and expanding operations, even if the price remains stagnant. An increase in output to meet any increase in demand could be positive for these stocks.

Take-Away

The massive changes in infrastructure and expected post-pandemic consumer behavior has caused copper and silver prices to be less closely correlated. While copper has gotten most of the attention, silver may begin to benefit as well. While mining stocks tend to trend with the minerals they mine, an increase in demand without an increase in price can produce more output and higher revenue. Research on both copper and silver stocks can be found here. Analysis of individual mining companies can be reviewed by following this link and then clicking “metals and mining.”

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Content:

Copper Facing an Onslaught of Demand

Why is the Silver Price Rising? (1/29/21)

Sierra Metals Virtual Roadshow Replay (Video)

Chakana Copper Virtual Roadshow Replay (Video)

 

Sources:

https://www.nasdaq.com/articles/metals-copper-prices-dip-as-omicron-variant-firmer-dollar-weigh

https://geology.com/articles/uses-of-silver/

https://www.providentmetals.com/knowledge-center/precious-metals-resources/inflation-precious-metals.html

https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/when-will-copper-go-up/

https://www.barrons.com/articles/inflation-risks-stocks-retirees-housing-51638999866

https://www.marketwatch.com/story/silver-gets-the-gamestop-treatment-rallies-by-as-much-as-13-11612203674

 

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Kinross to Acquire Great Bear for C$29.00 per Share, Plus a Contingent Value Right

 

• Significant premium of 40% to Great Bear’s 20-day VWAP on the TSX-V for Great Bear shareholders
• Option to select cash or Kinross common shares as consideration, subject to pro-ration
• Opportunity for continued economic participation in the future potential of the Dixie project while gaining exposure to Kinross’ diverse portfolio of high-quality operating mines, sector-leading production growth and free cash flow generation in a robust gold price environment
• Kinross has the technical, development, operating and financial capabilities to advance Dixie as a top growth priority building on and further enhancing its top tier potential
• Unanimously recommended by Great Bear’s Board of Directors
• Kinross is committed to the highest standards of ESG and will be a responsible steward for all Dixie stakeholders, continuing the long-term partnership with Wabauskang and Lac Seul First Nations
• Investor conference call at 5:00 a.m. PST (8:00 a.m. EST) on Thursday, December 9, 2021

December 8, 2021 – Vancouver, British Columbia, Canada – Great Bear Resources Ltd. (the “Company” or “Great Bear”, TSX-V: GBR; OTCQX: GTBAF) today announced that it has entered into a binding agreement (the “Arrangement Agreement”) with Kinross Gold Corporation (“Kinross”, TSX: K; NYSE: KGC) under which Kinross has agreed to acquire all of the outstanding common shares of Great Bear (the “Transaction”).

Under the terms of the Transaction, Great Bear shareholders will receive upfront consideration of approximately C$1.8 billion, representing C$29.00 per Great Bear common share on a fully diluted basis. Great Bear shareholders will be able to elect to receive the upfront consideration as either (i) C$29.00 in cash or (ii) 3.8564 Kinross shares per Great Bear share, both subject to proration. The upfront consideration will be subject to maximum aggregate cash consideration of approximately C$1.4 billion (representing 75% of the upfront consideration) or maximum aggregate shares issuable of 95.8 million¹ (representing 40% of the upfront consideration), depending on the election of Great Bear shareholders. Great Bear shareholders who do not elect cash or Kinross shares will be deemed to have elected to receive cash, subject to pro-ration. The Transaction Price represents a premium of 31% and 40% to the closing price and the volume weighted average price (“VWAP”), respectively, of Great Bear’s shares on the TSX-V for the 20 day period ending December 7, 2021.

Great Bear shareholders will also receive contingent consideration in the form of contingent value rights (“CVRs”) providing for further potential consideration equal to 0.1330 of a Kinross share per Great Bear common share which represents approximately C$58.2 million in aggregate consideration, or C$1.00 per Great Bear common share, on a partially diluted² basis (based upon the closing price of a Kinross share on the TSX as at December 7, 2021). The contingent consideration will be payable in connection with Kinross’ public announcement of commercial production at the Dixie project, provided that at least 8.5 million gold ounces of measured and indicated mineral resources have been disclosed.

On closing, the Transaction is expected to result in Great Bear shareholders owning approximately 7% of Kinross, on a fully diluted basis, assuming full take-up of the share consideration. Upon satisfaction of the payment conditions under the terms of the CVRs, Great Bear shareholders would own approximately 8% of Kinross, on a fully diluted basis (based upon the number of Kinross shares outstanding following completion of the Transaction).

Chris Taylor, President and CEO of Great Bear said: “The acquisition of Great Bear by Kinross is an outstanding opportunity for our shareholders, partners at Wabauskang and Lac Seul First Nations, and the local communities of Northern Ontario.

“The Transaction delivers a compelling premium for Great Bear’s shareholders, reflecting the top tier nature of the Dixie project, while offering beneficial exposure as Kinross shareholders to a high-quality operating portfolio and growing production base.  Kinross’ Canadian identity and headquarters in Ontario will facilitate close ties between the Company and the Dixie project’s local communities, which will help to maximize benefits to the area, including employment and training.

“As a senior gold producer, Kinross has the financial strength, technical expertise, and commitment to the highest ESG practices to advance the Dixie project at the pace and scale that this industry-leading discovery deserves.  Dixie will remain a centrepiece project that will receive significant development and exploration focus, which will continue to unlock and maximize the project’s value, while mitigating our shareholders’ exposure to the risks of a single-asset developer.”

J. Paul Rollinson, President and CEO of Kinross Gold said: “The Dixie project represents an exciting opportunity to develop a potentially top tier deposit into a large, long-life mine complex.  In addition to the prospect of developing a quality, high-grade open pit mine, we also believe that a significant portion of the asset’s value is its longer-term potential, which includes the view of a sizeable underground operation. 

“Kinross has the strong technical expertise and experience to successfully advance the project from exploration to development and unlock considerable value for our shareholders.  Our extensive due diligence reinforced the scarcity of an asset of this quality and value.  The Dixie project has multiple high-potential mineralized zones which remain open along strike and at depth, and we are confident that the asset has strong untapped upside with numerous avenues for growth.

“We are pleased to achieve our goal of adding a high-quality asset in our home jurisdiction that further bolsters our global portfolio and can potentially provide long-term tax benefits.  The Dixie project is ideally located in the renowned Red Lake mining district in Northern Ontario near established infrastructure and in a province with a low-carbon energy grid.  We look forward to building strong relationships with the Wabauskang and Lac Seul First Nations and will work with them to ensure that the project delivers sustainable benefits to their communities and respects their way of life.”

 

Details of the Transaction

The Transaction, which is not subject to a financing condition, will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) and will require the approval of: (i) 66 2/3% of the votes cast by the holders of Great Bear’s common shares; (ii) 66 2/3% of the votes cast by holders of Great Bear common shares, restricted share units, deferred share units and options, voting together as a single class, and; (iii) “minority approval” in accordance with Multilateral Instrument 61-101, at a special meeting of Great Bear security holders to be held to consider the Transaction (the “Special Meeting”). In addition to approval by Great Bear security holders, the Transaction is also subject to the receipt of court approval, regulatory approvals including competition clearances in Canada, and other customary closing conditions for transactions of this nature. The Transaction is expected to be completed in the first quarter of 2022.

The Arrangement Agreement provides for customary deal-protection provisions, including a non-solicitation covenant on the part of Great Bear and a right for Kinross to match any Superior Proposal (as defined in the Arrangement Agreement). The Arrangement Agreement includes a termination fee of C$85 million, payable by Great Bear, under certain circumstances (including if the Arrangement Agreement is terminated in connection with Great Bear pursuing a Superior Proposal).  The directors and senior officers of Great Bear, in addition to certain securityholders, owning in aggregate approximately 20.04% of Great Bear’s voting securities have entered into voting support agreements pursuant to which they have agreed to vote all the securities they own or control in favour of the Transaction.

Great Bear Board of Directors and Special Committee Recommendations

A special committee comprised entirely of independent directors of Great Bear (the “Special Committee”) unanimously recommended the Transaction to the board of directors of Great Bear (the “Great Bear Board”).  The Great Bear Board has evaluated the Arrangement Agreement with the Company’s management and legal and financial advisors and, following the receipt and review of a unanimous recommendation from the Special Committee, the Great Bear Board has unanimously approved the Arrangement and determined that the Arrangement is in the best interest of the Company, and the Great Bear Board has resolved to recommend that the Company’s shareholders vote in favour of the Transaction, all subject to the terms and conditions contained in the Arrangement Agreement.

GenCap Mining Advisory Ltd. and CIBC World Markets Inc. have provided opinions to the Great Bear Board and BMO Capital Markets has provided an opinion to the Special Committee and Board, stating that, as of the date of such opinions and based upon and subject to various assumptions, limitations and qualifications therein, the consideration to be received by the Great Bear shareholders pursuant to the Arrangement Agreement is fair, from a financial point of view, to such holders.

Further details regarding the terms of the Transaction are set out in the Arrangement Agreement, which will be publicly filed by Great Bear under its profile at www.sedar.com.  Additional information regarding the terms of the Arrangement Agreement, the background to the Transaction, the rationale for the recommendations made by the Special Committee and the Great Bear Board and how Great Bear shareholders can participate in and vote at the Special Meeting to be held to consider the Transaction will be provided in the management information circular for the Special Meeting which will be mailed to shareholders and also filed at www.sedar.com.  Shareholders are urged to read these and other relevant materials when they become available.

Advisors and Counsel

CIBC World Markets Inc. and GenCap Mining Advisory Ltd. are acting as co-advisors to Great Bear, and Blake, Cassels & Graydon LLP is acting as Great Bear’s legal counsel. BMO Capital Markets is acting as financial advisor to the Special Committee.  Cormark Securities Inc. provided capital markets advice to Great Bear.

Webcast and Conference Call

Great Bear and Kinross will host an investor conference call and webcast to discuss the Transaction on Thursday, December 9, 2021 at 5:00 a.m. PST (8:00 a.m. EST), followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – (833) 968-2237; Passcode: 8144017

Outside of Canada & US – (825) 312-2059; Passcode: 8144017

Replay (available up to 14 days after the call):

Canada & US toll-free – (800) 585-8367; Passcode: 8144017

Outside of Canada & US – (416) 621-4642; Passcode: 8144017

About Great Bear

Great Bear Resources Ltd. is a Vancouver-based gold exploration company focused on advancing its 100% owned Dixie project in Northwestern Ontario, Canada.  A significant exploration drill program is currently underway to define the mineralization within a large-scale, high-grade disseminated gold discovery made in 2019, the LP Fault.  Additional exploration drilling is also in progress to expand and infill nearby high-grade gold zones, as well as to test new regional targets. 

Great Bear is a committed partner to all stakeholders, with a long-term vision of sustainable exploration to advance the Dixie project in a manner that demonstrates good stewardship of land, operational excellence and accountability.

About Kinross

Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana.  Kinross’ focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).

Investor Contact

Cautionary note regarding forward-looking statements

This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic. Forward-looking statements include, but are not limited to statements with respect to the consummation and timing of the Transaction; approval by Great Bear’s shareholders; the satisfaction of the conditions precedent to the Transaction; the strengths, characteristics and potential of the Transaction; growth potential and expectations regarding the ability to advance the project, timing, receipt and anticipated effects of court, regulatory and other consents and approvals; the impact of the Transaction on local stakeholders and other anticipated benefits of the Transaction.  By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to failure to receive approval by Great Bear shareholders, the required court, regulatory and other consents and approvals to effect the Transaction, the potential of a third party making a superior proposal to the Transaction, the possibility that the Arrangement Agreement could be terminated under certain circumstances.

Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Such factors, among other things, include: impacts arising from the global disruption caused by the Covid-19 coronavirus outbreak, business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold or certain other commodities; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); discrepancies between actual and estimated metallurgical recoveries; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties.

Great Bear undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Thursday, December 09, 2021

Great Bear Resources (GTBAF)(GBR:CA)
An Exciting Outcome for Kinross and Great Bear Shareholders

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

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.

Kinross Gold Corporation to acquire Great Bear Resources. Great Bear announced a definitive agreement to be acquired by Kinross (TSX: K, NYSE: KGC) by way of a court-approved plan of arrangement. The transaction is expected to be completed in the first quarter of 2022, subject to approval by Great Bear shareholders, receipt of court and regulatory approvals, and satisfaction of certain closing conditions. We think the transaction is a win for both companies who have a shared vision of the potential for a multi-deposit mine complex at Dixie, including a potential high-grade open-pit mine and a long-life underground mine.


Terms of the transaction.  Great Bear shareholders will have the option to receive either: 1) C$29.00 in cash, or 2) 3.8564 Kinross shares per Great Bear share, subject to pro-ration, up to aggregate maximums of 75% cash and 40% Kinross shares on a fully diluted basis. The transaction price is modestly above our price target of C$28 or US$22 per share. Great Bear shareholders who do not elect cash …

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. 

Thursday, December 09, 2021

FenixOro Gold (FDVXF)
Private Placement Provides Financial Flexibility to Accelerate Drilling Program

FenixOro Gold Corp is a Toronto based company acquiring and exploring high grade gold projects in Colombia. The company’s flagship Abriaqui Project is the nearest exploration project to Continental Gold’s Buritica Mine.

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.

First tranche of financing closed. FenixOro closed the first tranche of its previously announced non-brokered private placement. The company has issued a total of 7,725,531 units at a subscription price of $0.31 per unit for gross proceeds of $2,394,914.61 in the first tranche. Each unit consists of one common share of the company and one common share purchase warrant, with each warrant being exercisable for one additional common share at an exercise price of $0.34 for a period of two years from their date of issuance. During the next few weeks, FenixOro expects to close a second tranche of the private placement bringing aggregate gross proceeds up to C$3,000,000.


Enhanced flexibility to accelerate drilling.  Net proceeds of the private placement will be used to accelerate the company’s Phase 2 drilling program at the Abriaqui project by adding one or two drill rigs and identifying and drilling new discovery targets, particularly on the highly prospective southeast license area …

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. 

Thursday, December 09, 2021

Aurania Resources (AUIAF)(ARU:CA)
Moving Closer to a Discovery?

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.

Tiria-Shimpia drill results may require follow-up. Drill hole SH-004 at the Tiria-Shimpia silver-zinc target returned a high-grade intercept of 12.4% zinc, 5.4 grams of silver per tonne, 61 grams of gallium per tonne, and 9 grams of indium per tonne over 2.0 meters at a depth of 52.0 meters. The mineralized interval lies within an 8.5-meter halo of 3% zinc. Management may consider drilling deeper and below weathered sulphide mineralization to intersect higher grade zinc-silver shoots at depth.


Hole TSN1-009 at Tsenken in progress.  Drilling recently commenced at Hole TSN1-009 with a planned depth of approximately 500 meters. The target of Hole TSN1-009 is copper-silver mineralization in evaporite mineral beds within sedimentary layers. Because Hole TSN1-009 has reached 350 meters depth and penetrated numerous salt layers in the red bed, management believes there is significant potential …

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

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

Aurania Reports High-Grade Drill Intercept of 12% Zinc & 61g/t Gallium

Research, News, and Market Data on Aurania Resources

 

Toronto, Ontario, December 8, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports that drilling from hole 4 at Tiria-Shimpia returned a high-grade intercept of 12% zinc (approximately 273 pounds per metric tonne), 5 grams per tonne (“g/t”) silver and 61g/t gallium over 2.0 metres.  The drill intercept is from a 5.5-kilometre-long area of elevated metal values in soil – one of many such zones in the 22 kilometre-long, 3 kilometre wide, Tiria-Shimpia target area (Figure 1) in the central part of the Company’s Lost Cities – Cutucu Project area (“Project”) in southeastern Ecuador. Context and further details of these high-grade drill results are provided below.

Other key developments on the Project include:

• Drilling started at hole 9 at Tsenken and is currently at a depth of approximately 350 metres (“m”). The hole is planned to run to a depth of approximately 500m. The target of hole TSN1-009 is copper-silver mineralization in evaporite mineral beds within the sedimentary layering.
• An access agreement has been signed at the Company’s Awacha target and work has commenced. The goal of field work will be to refine the porphyry targets in the Awacha area.
• Professor Gregor Borg is preparing a summary of his findings following his recent visit to site, and we expect that a video summary will be available in the coming weeks for all to view.

Results from Tiria-Shimpia Hole TS-004

Drill hole SH-004 at Tiria-Shimpia intersected a grade of 12.4% (approximately 273 pounds per metric tonne) zinc, 5.4g/t silver, 61g/t gallium, and 9g/t indium over 2.0m at a down-hole depth of 52.0m.  The mineralized interval lies within an 8.5m halo of 3% zinc.  For context, the resource grade at Glencore’s McArthur River Mine (formerly known as the HYC deposit), a large base metals deposit in Australia, is reported to be 237 million tonnes of 9.2% zinc, 4.1% lead and 41g/t silver, arranged in eight layers that are 1.0m to 5.0m thick. The McArthur River base metals deposit extends over an area of approximately 2 square kilometres (0.8 square miles).

Despite the intercept being at a depth of approximately 37.0m vertically below surface, the sulphide minerals have been weathered, indicating that deeper drilling would be required to intersect unweathered sulphide mineralization. A long section – a profile in which the viewer looks onto the plane of the mineralized layer, is shown in Figure 1.  This initial data suggests that zinc is concentrated in shoots that contain high-grade material.  Silver values delineate a more complex pattern than zinc, and additional data is required before a clear trend can be delineated.

The next step at Tiria-Shimpia would be to consider drilling deeper to intersect the zinc-silver shoots at depth, well below the depth of weathering.  The shoots are expected to contain high-grade silver and zinc.

Figure 1. a. Vertical profile of the mineralized structure showing the distribution of zinc grade in surface sampling as well as in drill hole SH-004.  Preliminary interpretation of these data suggest that zinc is concentrated in steeply-inclined shoots within the vein.  B. Map view of the location of the vein shown in a. within the Tiria-Shimpia area.

Drilling at Tsenken

The target being tested in hole TSN1-009 at Tsenken is copper-silver in sedimentary layers that originally contained salt and associated sulphate minerals that accumulated in salars similar to the salt-lakes present in the desert in Chile, Argentina and Bolivia today.  Under certain conditions, salt will fluidize and flow, leaving behind collapsed layering – so-called collapse breccias – that are permeable and provide pathways for mineralizing fluids to pass along sedimentary layering that otherwise has poor permeability and is inaccessible to mineralizing fluids.  Sulphate minerals that originally accumulated with the salt tend to be left behind after the salt has flowed away, leaving a source of sulphur that traps metals as sulphides in the collapse breccias.

Hole TSN1-009 was sited such that it would intersect salt within the sedimentary red-beds near the fault system that fed metals into the sedimentary strata.  Hole TSN1-009 has cut numerous salt layers in the red-beds – a feature that is encouraging in terms of there being a sulphate-rich evaporite layer that could have provided sulphur for copper precipitation as copper sulphide minerals.

Awacha

Survey teams have been deployed to the Awacha target area to work with communities to establish the limits of each community. This is the first step that is taken after any community access agreement has been signed. Once territorial limits have been established to the satisfaction of adjoining communities, exploration work can commence.  Exploration teams are expected to begin work mid-December on the target at Awacha, which appears to be a cluster of porphyries. The planned field work includes mapping of alteration minerals that are typically arranged in a concentric fashion around many porphyries, as well as soil sampling in a regular grid over the geophysical features and stream systems in which sediment sampling detected elevated metal content.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: Soil samples consisted of approximately one kilogram of clay from the iron-rich “B” horizon at each sample point. The soil samples were dried and subsequently screened through 80 mesh (using screens with apertures of approximately 0.18 millimetres).  A 250 gram (“g”) split of the material that passed through 80 mesh was pulverized to 85% passing 0.075mm and was packaged for shipment to the analytical facility.

The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure:  A 0.5g split of the -0.075mm fraction of soil samples underwent digestion with aqua regia, and the liquid was analyzed for 48 elements by ICP-MS. Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% copper, zinc and lead, and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

 

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its 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 Aurania, Aurania 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 Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, 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, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, 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, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania 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. Aurania 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.

Aurania Reports High-Grade Drill Intercept of 12% Zinc & 61g/t Gallium

Research, News, and Market Data on Aurania Resources

 

Toronto, Ontario, December 8, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports that drilling from hole 4 at Tiria-Shimpia returned a high-grade intercept of 12% zinc (approximately 273 pounds per metric tonne), 5 grams per tonne (“g/t”) silver and 61g/t gallium over 2.0 metres.  The drill intercept is from a 5.5-kilometre-long area of elevated metal values in soil – one of many such zones in the 22 kilometre-long, 3 kilometre wide, Tiria-Shimpia target area (Figure 1) in the central part of the Company’s Lost Cities – Cutucu Project area (“Project”) in southeastern Ecuador. Context and further details of these high-grade drill results are provided below.

Other key developments on the Project include:

• Drilling started at hole 9 at Tsenken and is currently at a depth of approximately 350 metres (“m”). The hole is planned to run to a depth of approximately 500m. The target of hole TSN1-009 is copper-silver mineralization in evaporite mineral beds within the sedimentary layering.
• An access agreement has been signed at the Company’s Awacha target and work has commenced. The goal of field work will be to refine the porphyry targets in the Awacha area.
• Professor Gregor Borg is preparing a summary of his findings following his recent visit to site, and we expect that a video summary will be available in the coming weeks for all to view.

Results from Tiria-Shimpia Hole TS-004

Drill hole SH-004 at Tiria-Shimpia intersected a grade of 12.4% (approximately 273 pounds per metric tonne) zinc, 5.4g/t silver, 61g/t gallium, and 9g/t indium over 2.0m at a down-hole depth of 52.0m.  The mineralized interval lies within an 8.5m halo of 3% zinc.  For context, the resource grade at Glencore’s McArthur River Mine (formerly known as the HYC deposit), a large base metals deposit in Australia, is reported to be 237 million tonnes of 9.2% zinc, 4.1% lead and 41g/t silver, arranged in eight layers that are 1.0m to 5.0m thick. The McArthur River base metals deposit extends over an area of approximately 2 square kilometres (0.8 square miles).

Despite the intercept being at a depth of approximately 37.0m vertically below surface, the sulphide minerals have been weathered, indicating that deeper drilling would be required to intersect unweathered sulphide mineralization. A long section – a profile in which the viewer looks onto the plane of the mineralized layer, is shown in Figure 1.  This initial data suggests that zinc is concentrated in shoots that contain high-grade material.  Silver values delineate a more complex pattern than zinc, and additional data is required before a clear trend can be delineated.

The next step at Tiria-Shimpia would be to consider drilling deeper to intersect the zinc-silver shoots at depth, well below the depth of weathering.  The shoots are expected to contain high-grade silver and zinc.

Figure 1. a. Vertical profile of the mineralized structure showing the distribution of zinc grade in surface sampling as well as in drill hole SH-004.  Preliminary interpretation of these data suggest that zinc is concentrated in steeply-inclined shoots within the vein.  B. Map view of the location of the vein shown in a. within the Tiria-Shimpia area.

Drilling at Tsenken

The target being tested in hole TSN1-009 at Tsenken is copper-silver in sedimentary layers that originally contained salt and associated sulphate minerals that accumulated in salars similar to the salt-lakes present in the desert in Chile, Argentina and Bolivia today.  Under certain conditions, salt will fluidize and flow, leaving behind collapsed layering – so-called collapse breccias – that are permeable and provide pathways for mineralizing fluids to pass along sedimentary layering that otherwise has poor permeability and is inaccessible to mineralizing fluids.  Sulphate minerals that originally accumulated with the salt tend to be left behind after the salt has flowed away, leaving a source of sulphur that traps metals as sulphides in the collapse breccias.

Hole TSN1-009 was sited such that it would intersect salt within the sedimentary red-beds near the fault system that fed metals into the sedimentary strata.  Hole TSN1-009 has cut numerous salt layers in the red-beds – a feature that is encouraging in terms of there being a sulphate-rich evaporite layer that could have provided sulphur for copper precipitation as copper sulphide minerals.

Awacha

Survey teams have been deployed to the Awacha target area to work with communities to establish the limits of each community. This is the first step that is taken after any community access agreement has been signed. Once territorial limits have been established to the satisfaction of adjoining communities, exploration work can commence.  Exploration teams are expected to begin work mid-December on the target at Awacha, which appears to be a cluster of porphyries. The planned field work includes mapping of alteration minerals that are typically arranged in a concentric fashion around many porphyries, as well as soil sampling in a regular grid over the geophysical features and stream systems in which sediment sampling detected elevated metal content.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: Soil samples consisted of approximately one kilogram of clay from the iron-rich “B” horizon at each sample point. The soil samples were dried and subsequently screened through 80 mesh (using screens with apertures of approximately 0.18 millimetres).  A 250 gram (“g”) split of the material that passed through 80 mesh was pulverized to 85% passing 0.075mm and was packaged for shipment to the analytical facility.

The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure:  A 0.5g split of the -0.075mm fraction of soil samples underwent digestion with aqua regia, and the liquid was analyzed for 48 elements by ICP-MS. Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES finish.

Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% copper, zinc and lead, and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

 

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its 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 Aurania, Aurania 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 Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, 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, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, 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, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania 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. Aurania 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.

Friday, December 03, 2021

Garibaldi Resources (GGIFF)(GGI:CA)
Expectations are Running High

Garibaldi Resources Corp is a Canadian-based junior exploration company. It is engaged in the acquisition, exploration, and evaluation of mineral properties located in Canada and Mexico. The company’s projects in Mexico include the La Patilla, the Rodadero, the Tonichi and the Iris project. Its projects in Canada include the PSP and King projects, The Cariboo Copper and Gold project, the Red Lion project, the Grizzly project, the Tora Tora project and the Black Gold project.

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

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

Drilling completed at Casper. Garibaldi has completed drilling 5 holes at the Casper quartz gold vein target north of Nickel Mountain. The goal is to locate the source of the high-grade gold veins and gold bearing volcanic rock. Recall that four shallow diamond drill holes tested the Casper quartz vein discovery in December 2020 with each hole intercepting mineralization. Rock samples were found to exceed 1.0 gram per tonne extending along trend for 330 meters within a 500-meter-wide gold-in-soil anomaly. The company is awaiting assay results.


Geophysical results expected shortly.  Garibaldi is expecting final 3-D Z-Axis Tipper electromagnetic (ZTEM) interpretation of a survey that was completed over the entire Eskay Claim Group. Preliminary 2-D ZTEM survey data identified several targets across the E&L and Palm Springs property that are near drill ready targets. The ZTEM survey will help to define, rank, and prioritize deeper conductive …

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.