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Oil & Gas

Oil & GAS | Jericho Oil (JCO.V): a Moneyball play in the STACK – Anadarko Super Basin

Original Source: https://bit.ly/2AovUyu

To state that Oil has been through some tough sledding in recent sessions would be a colossal understatement. After recently hitting the skids for an unprecedented twelve consecutive sessions, this decline represents a rout never before witnessed.

chart courtesy of Stockcharts

Looking at this chart, you’d think global demand had fallen off a cliff.

Aside from Trump telegraphing warnings to OPEC not to cut production, there seems to be a perception out there that oil is fast becoming obsolete, that it’s going away, that the global shift toward a greater reliance on EV’s (electric vehicles) will render it a useless commodity overnight.

Not true. Not by a highway mile. The Big Three automakers continue to crank out traditional gas-powered vehicles, producing more in a single day than Tesla will in an entire year. Global oil consumption could top 100 million barrels per day going into 2019.

This next oil chart depicts the last five years of trading. The $50 level looks as if it could represent a fairly decent support zone. It’s also a big round number.

The market often succumbs to these big round numbers as if by some powerful gravitational pull.

My take of this support zone (horizontal line drawn in blue): a decent bounce from here, if not a bottom, could be in the cards short term.

chart courtesy of Stockcharts

For sure, the rumblings coming out of the Whitehouse and OPEC will continue in the weeks and months to come. For sure, the volatility we’ve witnessed recently will have made its masterpiece by year-end (Bill Shakespeare voice). But this current situation could represent a rare opportunity to back up the truck on asset rich companies at deeply discounted prices.

As the Chinese have been preaching for centuries…

image courtesy of Edward Dreyfus

The evolution of an aggressive small-cap oil company…

Jericho Oil Corp (JCO.V), a micro-cap in the oil space, is one of those rare company’s that had the foresight to stoke up its treasury while the going was good, before the market imploded several years back. With roughly $13M in the company coffers, it went looking for the right opportunity.

That opportunity came along in the mid-continent of the US – Oklahoma. Today, the company boasts an enviable land position of some 55,000 acres, including 16,000 acres in the Anadarko basin STACK play of Oklahoma.

According to the Fraser Institute’s list of the Most attractive jurisdictions for petroleum development, Oklahoma ranks number 2.

Jericho’s philosophy…

If you are small – relative to the size of the true giants in the industry – you need to be focused. You need to appreciate the opportunity-set in front of you. And you need to know the marketplace you plan to execute in.

By focusing on Oklahoma, they’ve completely mitigated the risk of any sudden systemic governmental shift that could take away their business. Local and state governments are more apt to move Heaven and Earth to see that wells get drilled, and assets get developed.

Nearby communities are tied to oil production. They’re immersed in the culture and fully appreciate the many dividends oil production can generate.

image courtesy of StockyardPHOTOS

Deep value / strong hands…

Jericho acquired their position in the STACK for an average of $2,300 per acre. Today, those acres are fetching better than $15k per.

All of the these acquisitions have been drilled in the past. Jericho know there’s a significant resource there. They know the field is productive. They know the oil is extractable.

While the company was in the process of picking off properties on the cheap, they gained the support of three significant shareholders, each taking down a > 10% interest in the company. The names include the likes of…

Make no doubt about it, this 10% plus club represents solid votes of confidence in Jericho’s underlying fundamentals. They represent long-term shareholders, smart money, and strong hands.

Another benefit of engaging these strategic shareholders: No investment banks. No finders fees. With this management team, every penny is a prisoner.

The STACK…

Named after the counties of Sooner, Trend, Anadarko, Canadian, and Kingfisher, the STACK has evolved into a premier North American horizontal development play.

The acronym also represents the multiple, stacked productive formations present in the area:Chestermanning, Meramec, Osage, and Woodford.

This a prolific hydrocarbon system. The STACK’s hallmark: high oil and liquids-rich natural gas content, multiple horizontal target horizons, extensive production history, and historically high drilling success rates.

It’s important to understand that the area is dominated by a handful of large producers – Continental Resources, Devon Energy, Marathon Oil, Alta Mesa Resources, Newfield Exploration, and Chesapeake Energy. These companies have poured billions of dollars into developing their STACK assets. Jericho has positioned itself in the land of giants.

Actually, the above list needs revision…

Encana to buy Newfield Exploration for $5.5B US

The recent takeover involving Newfield’s assets pound home the intrinsic value here – the price producers are willing to pay for these STACK assets.

The chart below helps demonstrate why these assets are so damn desirable…

The STACK is among the lowest cost basins on the entire continent. The region is flush with infrastructure. The area has good takeaway capacity – there are good pipes in the ground. Good takeaway capacity means exacting the best possible price for extracted oil.

Another factor driving investment in the region: your typical 1-mile horizontal well produces approximately 500,000 to 1,000,000 barrels of oil equivalent with rates of return greater than 75%. These are serious numbers.

The shift…

The pennies-on-the-dollar bargains Jericho scooped up in 2015 thru 2017 are not there today. As the market for acres shifted from dirt cheap to overpriced, so has the company’s focus. There have been no acquisitions since September of last year. The company’s focus is now on development. And they have heaps of development runway.

Developing a well is not an overnight process. From a scientific POV, a lot of thought and methodical planning need to go into it. Be that as it may, the company has two wells in the bag and two more coming on.

The wells…

Producing Operations:

Wardroom (Meramec formation):

  • Jericho holds a 47.5% Working Interest.
  • currently producing at 220 Gross BOE per day (40% oil; 227 days since first oil production)

Swordspear (Osage formation):

  • Jericho holds a 47.5% Working Interest.
  • currently producing at 351 Gross BOE per day (50% oil; 128 days since first oil production)

Drilling operations:

Trebuchet (Operator: Armor Energy; Major County – Osage formation)

  • Jericho holds a 48.0% Working Interest.
  • Drilling ahead and building the curve from vertical to lateral section.

Valkyrie (Operator: Staghorn Petroleum; Blaine County – Meramec formation)

  • Jericho holds a 23.5% Working Interest.
  • Drilling ahead and nearing total measured depth of approximately 13,500 feet

The company also has a small working interest in two additional Osage formation wells, Ula and Hilltop, operated by ExxonMobil and Alta Mesa Resources respectively. Jericho’s participation in these wells is primarily to gain a greater understanding of the underlying subsurface geology.

November 12th STACK drilling and completion update…

Here, the company reported progress on the drilling, completion, and flowback of their most recent Osage and Meramec wells:

The highlights from this news release are as follows…

Drilling Operations:

Trebuchet (Operator: Armor Energy; Major County – Osage formation):

  • Jericho holds a 48.0% Working Interest.
  • Drilling ahead in the lateral section – ~90% of the planned total measured depth.
  • To date, the company has seen tremendous strides in the rate-of-penetration (“ROP”) on the Trebuchet relative to their first Osage formation well (the Swordpear) attributable primarily to an improved drilling-bit set-up and specific lateral geo-steering.
  • The ROP in the lateral on the Trebuchet is approximately 1.6x-1.8x the Swordspear at the same measured depth putting downward pressure on total rig days for the well.
  • The fracture stimulation of the well is expected to begin in late-November / early December.

Flowback Operations:

Valkyrie (Operator: Staghorn Petroleum; Blaine County – Meramec formation):

  • Jericho holds a 23.5% Working Interest.
  • 35 fracture stimulation stages successfully performed and currently in flowback.
  • After only a few days on flowback, the company is extremely pleased with the resulting downhole pressures and total fluid flowback.

Brian Williamson, CEO of Jericho Oil, had this to say regarding these recent developments:

“The Company continues to deliver on its two-pronged strategy of delineating and de-risking our STACK acreage for the Meramec and Osage formations,” adding, “our second Meramec and Osage formation wells have given our team the added knowledge and confidence in our world-class acreage position. We continue to learn from each well and have put forth best practices on our Trebuchet well to decrease drilling costs in the lateral section. We are excited to provide further updates on the production of these wells by year-end.”

Though Jericho’s current focus is in de-risking and proving-up its 16,000 acres in the STACK, significant upside also exists within the company’s asset portfolio – some 40,000 acres – outside of the STACK. Their drill ready Osage Extension play in northeast Oklahoma is the only one example of a project with significant upside potential.

image courtesy of roosterillusionreviews.com

Final thoughts…

Equity Guru’s Chris Parry, during a recent conference call with the company, offered this take on the company, its assets, and development strategy. To paraphrase Chris…

‘Jericho has taken a MONEYBALL approach. They got in when everyone else was getting out. They got some nice assets on the cheap. They saved themselves the trouble and expense by purchasing assets that had already been explored and tapped into. They have competitors coming into the area and purchasing assets next door at significantly higher valuations to the prices they paid. They’re treating their money like it’s valuable. All of the above lowers the risk and sets up a nice growth play, even if the price of oil doesn’t cooperate.’

Nice summary. Accurate too.

With 128.7 million shares outstanding and a sub-fifty cent share price, Jericho has an extremely modest market-cap of $61M. This price weakness is unlikely to last.

The company could be on the verge of dramatic production growth. Newsflow should be strong going forward.

Ultimately, Jericho’s goal, via a systematic and methodical approach to development, is to build a world-class blue-chip energy company.

We stand to watch.

END

~ ~ Dirk Diggler

Full disclosure: Jericho Oil is an Equity Guru client.

Greg Nolan, Equity.Guru

Feature gif courtesy of Giphy

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

Categories
Precious Metals

JUNIOR MINING | Treasury Metals Provides Corporate Update on Term Loan Maturity Date Extension and on the Weebigee Gold Project

TORONTO , Nov. 26, 2018 /CNW/ – Treasury Metals Inc. (TSX: TML) (“Treasury Metals” or the “Company“) is pleased to announce the Company has entered into a binding term sheet with Extract Capital Master Fund Ltd. and Extract Lending LLC (together “Extract”) to extend the maturity date of the Company’s existing convertible term loan (the “Term Loan”) for three years (the “Loan Amendment”).

The Loan Amendment will amend the maturity date of the Term Loan, extending it for a period of three years from the effective date of closing that is anticipated to be on or about November 30, 2018 . As part of the Loan Amendment, Extract has also agreed to assume the US$2.2 million portion of the US$4.4 million facility previously held by Loinette Company Leasing Ltd. which has agreed to an early payout without penalty. The terms of the Loan Amendment will be subject to TSX approval.

Pursuant to the terms of the Loan Amendment, the Term Loan shall be convertible at the election of Extract into common shares in the capital of the Company (the “Common Shares”) at a conversion price of C$0.36 per Common Share, representing approximately a 50% premium to the closing price of the Common Shares ( November 23, 2018 ), which is the closing date of entering into the binding term sheet.

All other terms of the Term Loan will remain unchanged.

As consideration to Extract for entering into the Loan Amendment, the Company will pay Extract the following: (a) an extension fee of US$110,000, and (b) issue to Extract an aggregate of 600,000 common share purchase warrants (the “Warrants”), entitling Extract to purchase Common Shares at an exercise price of C$0.40 per Common Share for a three-year term. The Company may compel Extract to exercise the Warrants if the volume weighted average price of the Common Shares of the Company is C$0.60 or greater for thirty (30) consecutive trading days.

Exploration Agreement for Weebigee Gold Project

In addition, Treasury Metals is pleased to announce that its wholly owned subsidiary Goldeye Explorations (“Goldeye”) and Sandy Lake First Nation (“SLFN”) have entered into a one-year extension of its Exploration Agreement (the “Exploration Agreement Extension”) on its Weebigee Gold Project to continue exploration activities. The Exploration Agreement has been in effect since November 2013 .

The Weebigee Gold Project is 100% owned by Goldeye/Treasury and subject to an earn-in agreement with current operator Sandy Lake Gold Inc. (“SLG”) effective since April 15, 2015 .

The Weebigee Gold Project is located 227 kilometres north of Red Lake in Northwestern Ontario . In 2014, a 21 drill hole program completed by Goldeye in the western part of the claim package returned significant near surface results, including high grade gold intercepts of 12.86 Au g/t over 6.85 meters and 12.17 Au g/t over 6.2 meters. Further details regarding SLG’s earn-in option agreement and Weebigee are available at Treasury’s website www.treasurymetals.com.

The Exploration Agreement Extension reflects the ongoing collaborative relationship between Treasury Metals and SLFN, within whose Traditional Territory the Project is located. The parties are committed to ongoing meaningful engagement and dialogue with a view to ensuring that the SLFN community participates and benefits as the Project progresses. The Exploration Agreement Extension does not pertain to the additional mineral claims staked by SLG which are outside Goldeye’s Weebigee Gold Project area.

To view further details about the Treasury Metals, please visit the Company’s website at www.treasurymetals.com.

About Treasury Metals Inc.:

Treasury Metals is a gold focused exploration and development company with assets in Ontario, Canada and is listed on the Toronto Stock Exchange (“TSX”) under the symbol “TML”. Treasury Metals Inc.’s 100% owned Goliath Gold Project in northwestern Ontario is slated to become one of Canada’s next producing gold mines. With first-rate infrastructure currently in place and gold mineralization extending to surface, Treasury Metals plans on the initial development of an open pit gold mine to feed a 2,500 tonne per day processing plant with subsequent underground operations in the latter years of the mine life. Treasury Metals is currently in the mine permit process on the Goliath Gold Project.

Follow us on Twitter @TreasuryMetals

Forward-looking Statements

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Actual results or developments may differ materially from those in forward-looking statements. Treasury Metals disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

SOURCE Treasury Metals Inc.

View original content: http://www.newswire.ca/en/releases/archive/November2018/26/c8504.html

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Blog

TOM WHEELWRIGHT | What You Need to Know About Who Prepares Your Tax Return

You can have the best tax strategy in the world and it wouldn’t matter if your tax return isn’t properly filed. Your tax return is THE place to capture your tax savings.

For this reason…

Your tax advisor should always be involved in your tax return preparation.

If someone other than your tax advisor prepares your tax return, then it is very likely the tax savings identified in your tax strategy will not be fully captured in your tax return.

ATTENTION CPAs!

You’re invited to The CPA-Revolution Masterclass with me.

This is a 3 day, transformative educational experience, custom-built for CPAs.

(Plus it includes 20 hours of CPE credit – for FREE!)

Click below (or click here) to learn more.

  • December 6-8, 2018
Learn More and Register

Do You Really Need a Tax Strategy?

If you are an investor or if you own a business, then you absolutely need a tax strategy. The tax law is designed to benefit investors and business owners. A tax strategy is designed so you know exactly what you need to do to maximize these benefits.

Many of you are thinking about starting a particular investment strategy or a business and you just aren’t sure if you should do your tax strategy before or after you start your investing or business.

I always recommend getting your tax strategy done before you start your investing or business because then the foundation can be in place and ready for your new venture. Plus, in most cases, it is possible to keep the foundation flexible enough so if your venture takes you in a different direction, your tax strategy can adapt to these changes.

Best of all, by doing your tax strategy before, you can get a jump start on the rules you need to know as an investor or business owner to legally maximize your tax savings. This is one area that most people neglect to focus on early and by the time they do focus on it, it is a huge project that requires a ton of catch up. In fact, most people in this situation never get caught up. As a result, they aren’t able to maximize their tax savings.

What if You Don’t Have a Tax Strategy?

If you don’t have a tax strategy, my recommendation is to get one in place beforeyou file your next tax return. Waiting to file your tax return until your tax strategy is created can provide more flexibility and opportunity.

Here’s how. When you file your tax return, you are taking a position. For example, claiming your home office as a deduction on your tax return is taking a position. You are taking a position on how the area of your home office is calculated.

Consider this scenario:

Pierre files his tax return claiming his home office as a deduction. He calculates the area of his home office to be 10%. After developing his tax strategy, Pierre learns that his home office area is actually 20%.

If Pierre has not filed his tax return, he can claim the larger deduction. If Pierre has filed his tax return, then claiming the larger deduction could be more challenging because when it comes to tax returns, consistency is very important. If Pierre files his tax return using 10% and then changes it to 20%, he will have more explaining to do.

Keep in mind that it is not only how a deduction is calculated that may change, but where a deduction is claimed. Your tax strategy identifies these key positions.

Keep Your Tax Strategy Up-to-Date

If you already have your tax strategy in place, be sure to review it at least once a year with your tax advisor. Tax strategies evolve and the tax law changes so it’s critical to update your tax strategy regularly to make sure it is still minimizing your taxes.

A good time to do this is when you prepare your tax return. You can make sure your tax savings are properly captured and identify opportunities for the future.

If you already have a trusted tax advisor…

..be sure to tell them about my FREE, 3 Day event just for CPAs, the CPA-Revolution Masterclass. Just forward this email, and click here to learn more about the event.

We’ve updated our Terms of Use – click here to review them now.
Tom Wheelwright, CPA

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. If you are not the original addressee of this communication, you should seek advice based on your particular circumstances from an independent advisor.
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Precious Metals

JUNIOR MINING | Irving Resources Announces Non-Brokered Private Placement

Vancouver, British Columbia, November 20,2018 (Globe Newswire) – Irving Resources Inc. (CSE:IRV) (“Irving” or the “Company”) announces that it intends to conduct a non-brokered private placement to raise approximately $2,083,000 by the issuance of approximately 1,894,000 units (the “Units”) at a price of $1.10 per Unit (the “Private Placement”). Each Unit will be comprised of one common share of the Company and one-half of a share purchase warrants (the “Warrants”). Each whole Warrant will be exercisable for one common share of the Company at a price of $1.75 per share for a period of two years from the date of issue, subject to an accelerated expiry provision.
The Company plans to use the net proceeds of the Private Placement to fund matters related to property exploration in Japan and for general working capital purposes.
About Irving Resources Inc.:
Irving is a junior exploration company with a focus on gold in Japan. Irving also holds, through a subsidiary, Project Venture Agreements with Japan Oil, Gas and Metals National Corporation (JOGMEC) for joint regional exploration programs in the United Republic of Tanzania, the Republic of Malawi and the Republic of Madagascar. JOGMEC is a government organization established under the law of Japan, administrated by the Ministry of Economy, Trade and Industry of Japan, and is responsible for stable supply of various resources to Japan through the discovery of sizable economic deposits of base, precious and rare metals.
Additional information can be found on the Company’s website: www.IRVresources.com.
Akiko Levinson,
President & Director
For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604) 641-1214
info@IRVresources.com
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This press release does not constitute, and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any “U.S Person” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “1933 Act”)) of any equity or other securities of the Company. The securities of the Company have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

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Precious Metals

PRECIOUS METALS | As Stock Markets Crash The Case For Gold and Silver Grows Stronger

The Miles Franklin Newsletter
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Chris Marcus-Contributing Writer For Miles Franklin
As Stock Markets Crash The Case For Gold and Silver Grows Stronger
Written by Chris Marcus of Miles Franklin
With the stock market selling off again on Monday, the Dow Jones, S&P, and NASDAQ have all declined to near the levels they started the year at.
Which to those who have been following the precious metals markets comes as little surprise. In fact to most who have been following the monetary policy of the Federal Reserve over the past decade, in some ways it’s shocking that it’s taken this long.
Just as the Austrian Economic theory clearly states, while easy cheap money is flowing, the financial asset markets get propped up as the money looks for a home. Yet as the theory also states, when the easy money is removed, the malinvestment and misallocation of capital is exposed.
So now as interest rates have risen, the stock markets are declining. While signs of slowdown in the real estate market are there for anyone who does a simple Google search. Let alone does further research or takes note of the stories that continue to emerge evidencing the stress in the market.
And if Donald Trump thinks the Fed is being too aggressive in raising interest rates up to 2.25% after a decade of near 0% rates and unprecedented quantitative easing, how is he going to feel if the Fed even approaches any sort of normal interest rate?
Which God could only imagine what that would be. Although keep in mind that back in 1980 Paul Volcker raised the Fed’s short-term rate to 20%. And following one year of 1% interest rates, Alan Greenspan raised rates as high as 5.25% before reversing course when the mortgage bubble started to pop. And now both the government debt load and central bank money supply are both substantially larger.
Meanwhile, the banking sector, which owns many of the mortgage and government bonds that are all set to devalue as interest rates continue to rise looks shakier than ever. With the latest news being that Deutsche Bank, which has been rumored to be a trade or to away from real liquidity issues for years is now being implicated in a $150 billion dollar money laundering scheme.
All of which is adding to an already shaky financial infrastructure. That foreign trading partners are increasingly walking away from. And while many see what’s happening, yet are frustrated by stagnant gold and silver prices, these events are also occurring at the same time that an ex-J.P. Morgan Trader plead guilty to manipulating the gold and silver markets. While also stating that it was done with the knowledge of his supervisors, andwas widespread practice within the bank.
Which means that for those who invested in precious metals and have had their faith shaken, every single reason you initially invested is not only still intact. But also playing out at this moment exactly as expected.
The markets did get inflated with all of the printed money. And now as that money is being taken away (albeit at an incredibly slow and minuscule pace), the exact problems that the Austrian Economists forecast are manifesting as expected.
And while many have grown tired of hearing about the manipulation and wondering if it was just conspiracy theory, now that has been confirmed as well. So despite that the break-point has not yet occurred, the exact reasons why you invested in gold and silver are now demonstrating their influence on the markets.
I watched The Big Short again this past weekend. Perhaps because during the times when I wonder if there’s something I may have missed, the movie helps remind me about how when markets get out of line, sometimes it just requires time before nature, supply, and demand re-exert their influence.
Could gold and silver trade lower from here? It’s only appropriate for me as an analyst and trader to factor in that anything is possible. And in an environment where investors are panicking and selling, it’s a good idea to expect that any sort of chaotic outcomes can happen.
Yet given how Deutsche Bank, UBS, HSBC, the Bank of Nova Scotia, and J.P. Morgan have now all been caught manipulating gold and silver, verifying that those who have asserted that the prices are being distorted by illegal behavior were indeed correct, it makes a lot more sense to own precious metals that are at their lows instead of stocks that are in a bubble that’s collapsing. And which current conditions indicate have every reason to continue declining further.
Perhaps what The Big Short also points out is that making large gains in chaotic situations requires understanding what’s happening. And also then having the fortitude to stay with your trade. Which is exactly how I see the current market for gold and silver.
I certainly understand this is a challenging time for investors. Which is why if you have any questions about the contents of this article, or buying or selling gold or silver, as always you’re welcome to email me at cmarcus@milesfranklin.com.
The last note I’ll mention is that when I was recently at the Silver and Gold Summit, as well as the New Orleans Investment Conference, all of the folks I spoke with like Rick Rule, Doug Casey, and Peter Schiff mentioned how their most successful trades have been by buying assets that are cheap and out of favor. And then having the courage of their convictions to be patient until the inevitable plays out.
That certainly describes the current environment. And if you want to take the advice of the folks who saw the subprime bubble in advance, rather than the banks and Wall Street who completely missed it, just know that they all continue to advocate owning physical gold and silver.
-To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).
-Or get Miles Franklin’s detailed report on why the price of silver is set to explode.
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About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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Categories
Precious Metals

JUNIOR MINING | Pacton Gold Signs Definitive Agreement on Hong Kong Project

VANCOUVER , Nov. 23, 2018 /CNW/ – Pacton Gold Inc. (TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the “Company” or “Pacton“) is pleased to announce that further to its news release of October 11, 2018 , it has entered into a Tenement Sale and Purchase Agreement (the “Agreement“) to acquire a 70% equity interest in the Hong Kong project (the “Hong Kong Project“) from Clancy Exploration Ltd (“Clancy“), an Australian Securities Exchange Listed exploration company.  The Hong Kong Project consists of a single granted exploration license covering 40.15 km2 and directly adjoins the Friendly Creek and Golden Palms projects held by Pacton.

Under the terms of the Agreement, the Company will pay CDN$175,000 and issue 3,780,613 common shares of the Company.

Upon completion of the acquisition, Pacton’s wholly-owned Australian subsidiary, Pacton Pilbara Pty Ltd (“Pacton Pilbara“) and Clancy will enter into a joint venture, with Pacton Pilbara acting as operator of the Hong Kong Project.  A minimum of CDN$500,000 must be spent by Pacton Pilbara within two years of completion of the transaction.  Clancy will be free carried with respect to expenditures until a decision to mine is made unanimously by both parties.

A finder’s fee will be payable to Geonomics Australia Pty Ltd. in respect of the transaction as permitted by the policies of the TSX Venture Exchange.

This transaction is subject to the acceptance of the TSX Venture Exchange.

About Pacton Gold

Pacton Gold (PAC: TSXV; PACXF: US) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia.

On Behalf of the Board of Pacton Gold Inc.

Alec Pismiris
Interim President & CEO

This news release contains or refers to forward-looking information based on current expectations, including, but not limited to the Company acquiring an interest in the Hong Kong Project and completion of the proposed transaction described herein, the prospect of the Company achieving success in exploring the Hong Kong Project and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.

Neither TSX Venture Exchange, the Toronto Stock Exchange nor their 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.

Cision
Cision

View original content:http://www.prnewswire.com/news-releases/pacton-gold-signs-definitive-agreement-on-hong-kong-project-300754806.html

SOURCE Pacton Gold Inc.

View original content: http://www.newswire.ca/en/releases/archive/November2018/23/c7285.html

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Blog

TREY REIK | Everything is Cool

By Trey Reik, Senior Portfolio Manager, Sprott Asset Management USA, Inc.
On Nov. 14, Fed Chair Jerome Powell and Dallas Fed President Robert Kaplan conducted an onstage question and answer session at the Dallas Fed. Responding to President Kaplan’s questions, Chair Powell’s cool-and-collected delivery made U.S. monetary policy seem like an absolute snap. The upbeat message from the Dallas stage was best summed by Mr. Powell’s observation that “Fed policy is part of the reason the economy is in such a good place right now.” However, because U.S. financial markets have remained noticeably rattled ever since Mr. Powell’s seemingly innocuous “long way from neutral” comment on Oct. 3, 2018, we find it constructive to parse cautious nuggets in Chair Powell’s copacetic narratives.
Along these lines, Chair Powell seemed to imply from the Dallas stage a subtle downshift in telegraphed Federal Open Market Committee (FOMC) tightening in stating “we have to be thinking about how much further to raise rates and the pace at which we will raise rates.” After referencing potential headwinds of slowing growth abroad, fading fiscal stimulus and lagged effects of eight Fed hikes, Chair Powell eventually narrowed in on one specific area of growing Fed concern: excessive corporate leverage. In Mr. Powell’s soft-spoken words, “There is some significant corporate borrowing and we have our eyes on that.” Having subsequently refreshed our focus on U.S. corporate debt levels, we can only characterize Chair Powell’s matter-of-fact depiction as dramatic understatement.

Corporate Leverage Locomotive

We have suggested that improving U.S. bank balance sheets foster false investor confidence that the excessive leverage at the root of the financial crisis has been repaired. In reality, as the Fed has dedicated eight years and trillions of dollars to nursing systemically important banks back to health, QE (quantitative easing) and ZIRP (zero interest rate policy) have progressively compromised the financial strength of the U.S. corporate sector. Not only have share buybacks imperiled countless balance sheets in the name of ephemeral EPS (earnings per share) gains, but the bulk of U.S. corporate governance has eroded into a culture of undisciplined borrowing and zombie credits.
Low rates and high share prices have distracted investors from the post-crisis explosion in corporate leverage. The total U.S. corporate bond market has almost tripled from $2.4 trillion in December 2006 to $6.7 trillion today. The junk portion of that total represents a startling $1.2 trillion. As the purview of hedge funds and aggressive investors, the junk market is essentially cordoned off from the far more relevant $5.4 trillion investment grade market, in which the vast majority of institutions are restricted by charter to focus their investments. After years of relaxed financial conditions, however, almost half the investment grade universe is now composed of bonds rated Triple-B, the lowest investment-grade category (up from one-third in 2006). This means that roughly $2.6 trillion of investment grade debt hovers just one category above junk status. Further, as rating agencies have factored in declining debt-service in a ZIRP world, the average ratio of total debt-to-EBITDA in the BBB universe has soared from 2.0x in December 2006 to 3.3x today.
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Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment.  Because of significant volatility,  large dealer spreads and very limited market liquidity, typically you will  not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
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Categories
Precious Metals

JUNIOR MINING | Group Ten Completes $1.2 Million Private Placement Financing

VANCOUVER, British Columbia, Nov. 23, 2018 (GLOBE NEWSWIRE) — Group Ten Metals Inc. (TSX.V: PGE; OTC: PGEZF, FSE: 5D32) (the “Company” or “Group Ten”) announces that it has completed a private placement for aggregate proceeds of $1,200,000 through the issuance of eight million units at a price of $0.15 per unit. Each unit consists of one common share of the Company and one half-share purchase warrant. Each full warrant (a “Warrant”) entitles the holder to acquire one common share of the Company at an exercise price of $0.225 per Warrant share for a period of 36 months following the closing date of the private placement. If the closing price of the Company’s common shares on the TSX Venture Exchange is greater than 30 cents per share for a period of 10 consecutive trading days, the company may elect to accelerate the expiry date of part or all of the Warrants, at any date that is four months and one day after the closing date, by giving notice thereof to the holders of the Warrants. In such case, that portion of the Warrants would be subject to an expiry date that is 30 business days after the date on which such notice is given by the Company.

President and CEO Michael Rowley stated: “We are pleased with the level of interest from new shareholders alongside the support from our existing shareholders in completing this private placement. Our newest asset, the Stillwater West Project, continues to receive significant interest based on the potential for discovery of large-scale ‘Platreef-style’ PGM-Ni-Cu systems, based on parallels with the Bushveld Complex in South Africa. The team has been working hard on both the exploration and corporate fronts, and we look forward to reporting results in the coming weeks and months.”

Greg Johnson, Chairman of both Group Ten and the Metallic Group said: “We are pleased to complete the Group Ten financing, which was undertaken concurrently with independent private placements at the two other companies that make up the Metallic Group, being Metallic Minerals and Granite Creek Copper. In aggregate, the Metallic Group companies anticipate raising in excess of $3 million in new financing despite what continues to be challenging market conditions.”

Mr. Johnson continued: “The Metallic Group founders and team members include a number of highly successful explorationists formerly with some of the industry’s leading explorers/developers and major producers. Over the past two years the team has been building a platform of exploration companies focused on consolidating large brownfields assets adjacent to some of the industry’s highest-grade producers of platinum group metals, silver and copper. We believe this strategy creates the opportunity for discovery of large, high-quality deposits in these historic and politically stable mining districts through the application of new models and technology by our experienced exploration teams.”

“By acquiring these low political risk, high potential properties in the low part of the metal price cycle, we are creating value for shareholders that would not likely be available during other parts of the cycle. With the acquisition of these key, district-scale assets complete, our experienced teams are undertaking a systematic approach to exploration to facilitate new discoveries in these proven brownfields districts, where existing road, power and other infrastructure may allow for greatly reduced capital costs and faster timelines for development when compared to remote greenfields deposits.”

“Based on the geologic target models for each of the Metallic Group companies’, along with the current depressed stage of the metal price cycle, we believe that each of the three companies in the group has the potential for significant growth over the next several years, through the potential discovery and advancement of new resources in the Stillwater PGM-Ni-Cu district, Keno Hill silver district, and Carmacks Copper district. We look forward to reporting results of our 2018 work programs in the coming weeks and months.”

The proceeds of the financing will be primarily used on the Company’s Stillwater West project and for general working capital purposes.  All securities issued pursuant to the placement are subject to a statutory four month and one day hold period from the date of issuance.

The Company also reports that it has granted 450,000 incentive stock options to certain officers and consultants.

About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA.  Group Ten also holds the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario and the Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.

About Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver, platinum group metals and copper. Member companies include Metallic Minerals (MMG.V) in the Yukon’s Keno Hill silver district, Group Ten Metals (PGE.V) in the Stillwater PGM-Ni-Cu district of Montana, and Granite Creek Copper (GCX-H.V) in the Yukon’s Carmacks copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development, including strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers and are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven historic mining districts.

The Metallic Group is headquartered in Vancouver, BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director
Email: info@grouptenmetals.com Phone: (604) 357 4790
Web: http://grouptenmetals.com Toll Free: (888) 432 0075

Forward-Looking Statements
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.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.

Categories
Energy

URANIUM | NexGen Releases Project Development-Focused Summer 2018 Drilling Results

VANCOUVER, Nov. 22, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to report geotechnical and radioactivity results for twenty-nine holes comprising 20,482.31 m on the Company’s 100% owned Rook I property, in the Athabasca Basin, Saskatchewan. The primary objective of the program was the geotechnical characterization of areas within Arrow’s footwall, lateral development and potential underground infrastructure locations of which results were incorporated into the Pre-Feasibility Study (“PFS”) released on November 5th, 2018. The exploration results of this release which encountered strong mineralized intervals in key areas were not incorporated into the updated Mineral Resource Estimate and PFS results, released on November 5, 2018.

Highlights:

Geotechnical Characterization of the A2 Sub-Zone

Two holes drilled to geotechnically characterize the rock mass within the A2 sub-zone, underwent dedicated geotechnical logging and packer tests throughout the ore zone to obtain data and analysis of sub-surface conditions within the mine plan. Both holes were collared at a steep inclination, then shallowed out to a dip of approximately 57°.

  • GAR-18-016 intersected 38.5 m of total composite mineralization including 10.7 mof total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 75 msection (552.0 to 627.0 m) and featured 1.5 m of continuous massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.

Geotechnical Characterization of the Footwall

Holes targeting the footwall successfully characterized the geotechnical and hydrogeological conditions of the rock-mass proximal to the potential mine infrastructure and Underground Tailings Management Facility (“UGTMF”). Additionally, drilling focused on the sterilization of uranium mineralization within areas that will host project development infrastructure and were all geotechnically logged incorporating packer tests at regular intervals.

  • Holes drilled within the footwall of Arrow, in areas of envisioned underground mine infrastructure intersected suitable rock-mass and hydraulic conductivity to facilitate underground development.
  • Similarly, holes drilled within the proximity of the UGTMF positively indicated the area contains suitable rock-mass and low hydraulic conductivity to facilitate underground development.
  • Importantly, negligible alteration and structure were intersected in proximity of envisioned underground mine infrastructure and UGTMF.

Shaft Pilot Hole Program

Three shaft pilot holes were successfully completed to a depth of between 650 m and 702 m. The vertically drilled shaft holes were kept within a 3.0 m radius from surface through to their termination depths, intersected minimal structure and showed low hydraulic conductivity throughout via packer testing at regular intervals.

  • GAR-18-010 targeted shaft location option 1. The hole was successfully completed to a depth of 650 m, intersecting minimal structure within proximity of targeted area in the footwall. A total of 6.0 m of composite uranium mineralization was intersected (549.0 m to 550.0 m) with a maximum radioactivity of 3,900 cps.
  • GAR-18-013 targeted shaft location option 2. The hole was successfully completed to a depth of 650 m. Preliminary results indicate the area contains suitable rock-mass and low hydraulic conductivity to facilitate future shaft design.
  • GAR-18-015 targeted shaft location option 3. The hole was successfully completed to a depth of 702 m, intersecting minimal structure within designed underground mine infrastructure. Preliminary results indicate the area contains suitable rock-mass and low hydraulic conductivity to facilitate a future shaft design.

Exploration, A2 High-Grade Domain

Drilling focused on an under-explored area to the northeast boundary of the currently defined A2 high-grade domain at variable elevations. Drilling resulted in the identification of mineralization between the A2 and A3 shears as well as demonstrating the continuity of high-grade mineralization beyond the currently defined A2 high-grade domains.

  • AR-18-220c1 (located 50 m along strike to the northeast of AR-14-30 (10.32% U3O8over 46.0 m)) intersected 55.5 m of total composite mineralization including 2.25 mof total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 109.5 msection (438.5 to 548.0 m) in the A2 shear. The hole demonstrates the continuity of high-grade mineralization beyond the currently defined A2 high-grade domains in the A2 shear.

Drill hole locations and schematics are shown in Figures 1 to 4. Drill hole descriptions can be found at www.nexgenenergy.ca

Leigh Curyer, Chief Executive Officer, commented: “The successful completion of the geotechnical and hydrogeological drilling was highly positive and reflected in the Arrow Project PFS released on November 5, 2018. In addition, the exploration results  at Arrow this last summer continue to provide strong upside with respect to areas of potential future resource growth. These results have positively set the foundation for our largest campaign to date at Arrow – a two staged 125,000 m drill program commencing mid-December 2018through to Q3 2019. The results of this program will then be incorporated into a Feasibility Study scheduled to be released in H1 2020.”

Troy Boisjoli, Vice-President, Operations and Project Development, commented: “The Summer 2018 drill program demonstrated the highly competent geotechnical chartateristics of the Arrow deposit. The team is looking forward to the approaching 125,000 m drill program to further advance and optimize Arrow’s potential mine development profile. Further, the high grade mineralization encountered northeast of the A2 High Grade Domain is a great result providing additional areas to test in the future for potential resource growth.”

Development, Activities & Financial

  • Expediting Arrow to Feasibility by initiating a 2-stage 125,000m (10 rig) high density drilling program commencing in mid-December 2018 to focus on mine optimization plans based on Measured and Indicated mineral resources.
  • As of October 31, 2018, the Company had cash-on-hand of approximately $125 million which fully funds NexGen for all programs throughout 2019.

Table 1: Arrow Drill Hole Data

Drill Hole

Athabasca

Group –

Basement

Unconformity

Depth (m)

Handheld Scintillometer Results (RS-120)

Hole ID

Azimuth

Dip

Total

Depth

(m)

From (m)

To (m)

Width (m)

CPS Range

AR-18-210c1

327

-70

876.50

115.00

606.50

607.00

0.50

<500 –  1710

AR-18-210c2

327

-70

957.50

N/A

584.50

585.00

0.50

<500 –  510

AR-18-210c3

327

-70

946.00

N/A

No Anomalous Radioactivity

AR-18-211c1

327

-70

1128.50

N/A

865.50

866.00

0.50

<500 –  1300

869.50

870.00

0.50

<500 –  610

876.00

876.50

0.50

<500 –  570

961.50

962.00

0.50

<500 –  650

1089.00

1089.50

0.50

<500 –  650

AR-18-211c2

327

-70

1014.50

N/A

660.50

661.00

0.50

<500 –  680

AR-18-211c3

327

-70

1063.50

N/A

No Anomalous Radioactivity

AR-18-212c1

325

-67

807.50

97.70

No Anomalous Radioactivity

AR-18-213c1

327

-65

765.50

98.85

No Anomalous Radioactivity

AR-18-214c1

327

-65

891.50

111.00

157.00

161.50

4.50

<500 –  4250

337.00

337.50

0.50

<500 –  970

AR-18-215c1

327

-70

990.50

N/A

No Anomalous Radioactivity

AR-18-216c1

327

-65

483.50

107.40

No Anomalous Radioactivity

AR-18-217c1

327

-73.5

1233.50

122.50

910.00

910.50

0.50

<500 –  560

965.00

966.00

1.00

610 –  20000

969.50

971.00

1.50

<500 –  5200

977.50

978.50

1.00

<500 –  4600

AR-18-218c1

327

-65

827.00

97.80

No Anomalous Radioactivity

AR-18-219c1

327

-65

663.50

133.95

342.50

347.00

4.50

<500 –  1300

353.00

354.00

1.00

<500 –  3200

359.00

369.50

10.50

<500 –  4300

375.00

375.50

0.50

<500 –  650

387.00

416.00

29.00

<500 –  3300

430.00

433.00

3.00

<500 –  1275

442.00

445.00

3.00

<500 –  1550

447.50

470.50

23.00

<500 –  5350

572.00

573.50

1.50

<500 –  4200

578.50

579.50

1.00

<500 –  680

586.50

590.00

3.50

<500 –  61000

594.00

594.50

0.50

<500 –  570

602.00

605.00

3.00

<500 –  10500

611.50

612.00

0.50

1100 –  26700

621.00

625.50

4.50

<500 –  16500

631.00

631.50

0.50

<500 –  2310

AR-18-220c1

327

-68

744.50

130.35

597.00

598.00

1.00

<500 –  1200

624.50

625.00

0.50

<500 –  1500

644.50

646.50

2.00

<500 –  1100

681.50

682.00

0.50

<500 –  660

335.50

336.00

0.50

<500 –  1150

359.50

362.00

2.50

<500 –  630

368.50

373.00

4.50

<500 –  11000

375.50

380.50

5.00

<500 –  8600

383.00

392.00

9.00

<500 –  9400

396.00

410.00

14.00

<500 –  61000

419.00

419.50

0.50

<500 –  720

423.50

424.00

0.50

510 –  850

438.50

441.00

2.50

<500 –  1280

444.50

446.50

2.00

<500 –  1100

449.00

452.50

3.50

<500 –  2200

483.00

486.00

3.00

<500 –  570

488.50

491.00

2.50

<500 –  1240

502.00

508.50

6.50

<500 –  2200

512.50

548.00

35.50

<500 –  61000

579.50

594.50

15.00

<500 –  61000

AR-18-

220c1a

327

-68

441.00

448.00

445.50

446.00

0.50

<500 –  530

GAR-18-006

147

-80

737.40

100.80

518.00

520.50

2.50

<500 –  7000

576.00

578.00

2.00

<500 –  13000

600.00

600.50

0.50

<500 –  520

GAR-18-

006a

147

-80

155.40

101.00

No Anomalous Radioactivity

GAR-18-007

147

-68

671.40

93.00

No Anomalous Radioactivity

GAR-18-008

147

-65

629.60

96.05

597.00

598.50

1.50

<500 –  3500

617.50

618.00

0.50

<500 –  4250

GAR-18-009

147

-70

641.40

101.00

No Anomalous Radioactivity

GAR-18-010

147

-90

650.44

98.00

549.00

555.00

6.00

<500 –  3900

GAR-18-011

147

-65

799.50

95.05

No Anomalous Radioactivity

GAR-18-012

327

-75

1043.40

N/A

564.50

565.50

1.00

<500 –  840

589.00

589.50

0.50

<500 –  530

602.50

605.00

2.50

<500 –  7550

767.00

767.50

0.50

<500 –  510

GAR-18-013

147

-90

650.40

108.90

No Anomalous Radioactivity

GAR-18-014

327

-80

659.40

101.00

346.00

346.50

0.50

<500 –  520

350.00

351.00

1.00

<500 –  1050

GAR-18-015

147

-90

701.47

96.35

No Anomalous Radioactivity

GAR-18-016

327

-65

660.00

128.85

492.00

493.00

1.00

<500 –  1380

534.50

536.50

2.00

<500 –  830

552.00

553.00

1.00

<500 –  660

579.50

607.00

27.50

<500 –  61000

617.50

627.50

10.00

<500 –  54000

GAR-18-017

327

-65

717

127.75

406.50

407.50

1.00

<500 –  3600

503.50

504.00

0.50

<500 –  1100

514.50

515.00

0.50

<500 –  31000

517.50

518.00

0.50

<500 –  4800

521.50

522.00

0.50

<500 –  700

530.50

531.00

0.50

2100 –  47700

535.50

536.50

1.00

<500 –  1300

564.00

564.50

0.50

<500 –  1800

577.50

578.50

1.00

<500 –  1900

581.50

584.00

2.50

<500 –  1700

586.50

589.50

3.00

<500 –  2500

594.50

597.00

2.50

<500 –  1500

618.50

624.00

5.50

<500 –  61000

627.00

629.50

2.50

<500 –  3400

650.50

651.50

1.00

<500 –  720

654.00

656.50

2.50

<500 –  1920

660.00

661.00

1.00

<500 –  1350

666.00

667.50

1.50

<500 –  1650

Parameters:

  • Maximum internal dilution 2.00 m downhole
  • All depths and intervals are metres downhole, true thicknesses are yet to be determined
  • “Anomalous” means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
  • “Off-scale” means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
  • Where “Min cps” is <500 cps, this refers to local low radiometric zones within the overall radioactive interval
  • Directional drilling has often resulted in mineralization intersected at a more favourable and shallower dip

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017. NexGen is the recipient of the PDAC’s 2018 Bill Dennis Award and the 2019 Environmental and Social Responsibility Award.

Technical Disclosure

The technical information in this news release with respect to the PFS has been reviewed and approved by Paul O’Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101“).

The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA and Mr. David Ross, P.Geo., Director of Resource Estimation and Principal Geologist at RPA.  Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein. All other technical information in this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen.  Mr. Boisjoli is a qualified person for the purposes of NI 43-101 and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.

A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of this news release.

SEC Standards

Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “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. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; 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 measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United Statesfederal securities laws and the rules and regulations thereunder.

Technical Information

For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Technical Report on the Preliminary Economic Assessment of the Arrow Deposit, Rook 1 Property, Province of Saskatchewan, Canada” dated effective September 1, 2017 (the “Rook 1 Technical Report”) prepared by Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G., David A. Ross M.Sc., P.Geo., Val Coetzee, M.Eng., Pr.Eng., and Mark Wittrup, M.Sc., P.Eng.,P.Geo. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at www.sedar.com. A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of the PFS  news release (November 5th, 2018) providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource.

Forward-Looking Information

The information contained herein 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. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.

Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 31, 2017 under “Risk Factors”.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.

Cision
Cision

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Categories
Precious Metals

JUNIOR MINING | Novo Files Updated Beatons Creek Technical Report

VANCOUVER, British Columbia, Nov. 21, 2018 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has filed a technical report prepared pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) related to its October 10, 2018 news release announcing the updated resource estimate for its Beatons Creek Gold Project, Western Australia (the “Beatons Creek 2018 Resource Estimate”). The independent technical report, entitled “NI 43-101 Technical Report Resource Update, Beatons Creek Gold Project, Pilbara Region, Australia” (the “2018 Technical Report”), with an effective date of August 10, 2018 and an issue date of November 20, 2018, was prepared for Novo by Leonel Lopez (AIPG- Geol. Eng. QP, SME-RM) of Tetra Tech, Golden, Colorado. Mr. Lopez is a qualified person as defined under NI 43-101. The 2018 Technical Report is available through the Internet under the Company’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com (filing date: November 21, 2018) and on the Company’s website at www.novoresources.com.

Highlights:

  • The Beatons Creek 2018 Resource Estimate includes a 17% increase in near surface measured and indicated Au ounces over the 2015 estimate supported by a technical report entitled “NI 43-101 Technical Resource Report, Beatons Creek Gold Project, Pilbara Region, Australia” dated August 31, 2015 prepared by Arnand van Heerden, Pri.Sci.Nat, PGeo, Principal Geologist of Tetra Tech, Inc. which was filed under Novo’s SEDAR profile on October 13, 2015 (the “2015 Estimate”).
  • Inferred near surface Au ounces increase by 40% over the 2015 Estimate.
  • In management’s view, this resource upgrade along with Beatons Creek’s very high metallurgical recovery (+97% gravity + carbon-in-leach; please refer to the Company’s news release dated March 7, 2017 for further details) make it one of the premier gold deposit in the Nullagine mining camp.
  • Management believes that significant room for resource expansion remains.

Beatons Creek 2018 Resource Estimate:

Near Surface Mineral Resources
  Cut-off
Grade		 Tonnes Grade Ounces Troy Au
Classification Au g/t (x1000) Au g/T  (x1000)
Measured 0.5 816 2.5 65
Indicated 0.5 3,749 2.3 277
Measured +
Indicated		 0.5 4,565 2.3 342
Inferred 0.5 3,448 2.5 282
Underground Mineral Resources
  Cut-off
Grade		 Tonnes Grade Ounces Troy Au
Classification Au g/t (x1000) Au g/T  (x1000)
Measured 2 0.39 2.9 0.04
Indicated 2 29 3.1 3
Measured +
Indicated		 2 29 3.1 3
Inferred 2 342 3.6 40
Global Mineral Resources
  Cut-off
Grade		 Tonnes Grade Ounces Troy Au
Classification Au g/t (x1000) Au g/T  (x1000)
Measured 0.5, 2 816 2.5 65
Indicated 0.5, 2 3,778 2.3 280
Measured +
Indicated		 0.5, 2 4,594 2.3 345
Inferred 0.5, 2 3,790 2.6 322

Notes:
1. Near surface mineral resources contain oxide and sulphide material within an optimized shell and within a mineralized wireframe.
2. Optimized shell estimated using Lerch-Grossam algorithm with the following indicative parameters:
(a) $USD 1,246/troy ounce;
(b) Recoveries of 95% oxide and 90% sulphide;
(c) $USD 2.4/T mining cost for oxides, and 3/T for sulfides;
(d) $USD 15/T oxide and $USD 17/T sulphide processing cost; and
(e) $USD 2/T general & administrative costs.
3. Underground mineral resources contain sulphide resources outside of an optimized shell and within a mineralized wireframe.
4. Columns may not total due to rounding.
5. One troy ounce is equal to 31.1034768 grams.

Resource Modelling:

Mineral resources were estimated by multiple pass Ordinary Kriging (OK) method within modelled reef domains. Mineral resources are currently defined in seven reef domains each divide into oxide and sulphide mineral type by a shallow weathering profile.

The majority of assays used for the estimate were determined using LeachWELL® methodology, which was statistically determined to be the most reliable method. Assays were capped at 25 Au g/T prior to compositing and were statistically evaluated on a reef domain and mineral type basis.

Mineral resources were estimated from 35,063 samples, sourced from 32,549 samples from reverse circulation holes, 681 samples from diamond holes, and 1,833 costean samples.  Capping was analyzed for each reef’s oxide and sulfide portions using histograms and probability plots to determine where high-grade distribution tails became erratic and deviated from lognormal.  Sampled intervals from all data sources were composited to 1 m.  Compositing initiated and terminated at the top and bottom of the reef contacts.

Mineral resources that are not mineral reserves do not have demonstrated economic viability, and it is uncertain if applying economic modifying factors will convert measured and indicated mineral resources to reserves. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, however, no issues are known at this time. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this news release were estimated using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, definitions and guidelines.

Reference should be made to the 2018 Technical Report in its entirety.

Quinton Hennigh (Ph.D., P.Geo.) is the qualified person pursuant to NI 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is President, Chairman, and a director of Novo Resources Corp.

About Novo Resources Corp.

Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”
Quinton Hennigh
President and Chairman

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 news release.

Forward-looking information 
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the statement that significant room for resource expansion remains in respect of the Company’s Beaton’s Creek project. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the performance of services by third parties.