Vancouver, British Columbia–(Newsfile Corp. – January 22, 2019) – Miramont Resources Corp. (CSE: MONT) (OTCQB: MRRMF) (FSE: 6MR) (“Miramont” or the “Company”) is pleased to announce that it has commenced drilling on its Cerro Hermoso project in southern Peru. Up to 5,000 meters will be drilled in this first phase to test three priority targets.
Bill Pincus, Miramont’s President and CEO said, “We have worked hard over the past year to get to this point and we are tremendously excited to see what we will find with this drilling program. As we continued to investigate the property further we have found new and stronger evidence supporting our prospect model. Our exploration work to date has strengthened expectations that a significant ore deposit is ready to be discovered.”
THE CERRO HERMOSO PROJECT
Cerro Hermoso is a large diatreme-hosted system with various styles of copper, gold and silver mineralization found in a four square kilometer area. It has many similar characteristics to other diatreme systems that are known to host large bulk-tonnage polymetallic deposits.
The three priority drill targets have been identified by a combination of geologic mapping, geochemical sampling and geophysical prospecting. These are known as the Central Breccia Zone (Gold), the Stockwork Zone (Copper/Silver) and the Carbonate Replacement Zone (Polymetallic). All three targets will be tested in the upcoming program.
PRIORITY TARGETS
The three priority targets will all be tested with multiple drill holes. A brief description of each is given below and the reader is referred to the Company’s website (Link) for more information.
Central Breccia Zone
This zone is found within the heart of the diatreme. The formation of gold-bearing hydrothermal breccia, the potential host-rock for mineralization, is extensive. Selective sampling by Miramont has confirmed widespread gold mineralization in this zone with values up to 18 grams per tonne of gold. An IP geophysical study has outlined a significant chargeability anomaly potentially indicating the presence of sulfides at shallow depths.
Stockwork Zone
The Stockwork Zone lies just outside the northern rim of the diatreme. It is a 500 by 400 metre area of widespread stockwork veining and alteration developed within the volcanic flow units. The Stockwork Zone has prominent silver, copper, and gold mineralization throughout the area. Values as high as 500 g/t Ag, 3.9% Cu and 10 g/t Au have been found here. Coincident magnetic and conductivity anomalies indicate the potential for a buried intrusion near surface.
Carbonate Replacement Zone
This zone is known from a review of historic underground mapping. Development on lower levels (approx. 200 metres below surface) encountered carbonate replacement deposits (CRD’s) within an underlying limestone beds. Coincident resistivity and conductivity anomalies may indicate the presence of sulfide bearing limestone units continuing to the northwest.
National Instrument 43-101 Disclosure
The technical content of this news release has been reviewed and approved by Mr. William Pincus, CPG, President and CEO of Miramont and a Qualified Person as defined by National Instrument 43-101.
About Miramont Resources Corp.
Miramont is a Canadian based exploration company with a focus on acquiring and developing mineral prospects within world-class belts of South America. Miramont’s two key projects are Cerro Hermoso and Lukkacha, both located in southern Peru. Cerro Hermoso is a diatreme-hosted copper dominant polymetallic prospect. Lukkacha is a classic copper-porphyry prospect.
On behalf of the Board of Directors,
MIRAMONT RESOURCES CORP.
This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, British Columbia, Jan. 22, 2019 (GLOBE NEWSWIRE) — Novo Resources Corp.(“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to provide an update on near-term exploration progress.
Karratha Gold Project:
In its news release dated December 20, 2018, Novo discussed encouraging preliminary results from test work using a TOMRA mechanical rock sorter on gold-bearing conglomerate material from its Karratha gold project. High-grade assays from sorted rock concentrates provided a first indication that the technique is effective at upgrading gold into small volume concentrates. Novo anticipates receiving complete assays from all fractions of test material by the end of January at which time it will present a complete assessment of the efficacy of mechanically sorting Karratha gold-bearing conglomerates.
Novo is currently generating a mineralization report covering exploration results on the Comet Well and Purdy’s Reward exploration licenses. This report forms the basis for conversion of an exploration license to mining leases. Submission of this report to the Western Australian Department of Mines, Industry Regulation and Safety is targeted for the first quarter of this year.
Egina 2019 Exploration Program:
Novo announced encouraging results from processing of its first bulk sample at its new Egina gold project in a news release dated December 20, 2018. A total of 107.88 grams of raw gold were recovered from 95 cubic meters of gravel. Gold was found to be dominantly coarse suggesting simple processing techniques can likely be employed during potential future large-scale gold recovery at Egina. Novo thinks lag gravels mantling the vast erosional terrace at Egina could host a significant gold deposit, the shallow nature of which makes it a particularly attractive target.
Work at Egina is on hold during the rainy season lasting until late March. Plans are currently being made to resume aggressive bulk sampling and processing on the Egina mining lease to evaluate the geologic potential of the terrace gravels as well the best means of processing. Current permitting allows for up to 50,000 tonnes of gravel to be excavated and processed at Egina, subject to appropriate heritage clearances.
Beatons Creek Bulk Samples and Resource Estimation
A suite of 58 +2 tonne bulk samples was collected from gold-bearing conglomerates at Beatons Creek in 2018. Processing of these samples is expected to be complete in early February at which time Novo will present results. Although Novo recently announced an upgraded resource at Beatons Creek (please refer to the Company’s November 21, 2018 news release), its intention is to generate a further expanded resource utilizing bulk sample data coupled with recently collected diamond drill and down-hole imaging data. The next resource estimate is expected to be completed during the first quarter of this year.
“Novo’s team is working diligently across many fronts to progress our advanced projects,” commented Mr. Rob Humphryson, CEO and a Director of the Company. “In 2019, we aim to make great strides in demonstrating the potential large size and viability of these unique deposits. We are becoming increasingly excited as we unlock their geologic intricacies and develop the technology to advance them.”
Dr. Quinton Hennigh, P. Geo., the Company’s, President, Chairman, and a Director, and a qualified person as defined by National Instrument 43-101, has approved the geological content of this news release.
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, statements as to planned exploration activities and the expected timing of the receipt of results, as well as the expected timing of completion of an updated resource on Novo’s Beatons Creek property. 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.
· Buy gold for insurance against fiscal and monetary predations of central bankers, commercial banking and government. Yes – certainly!
· Buy silver for insurance, profit and beautiful coins. Yes!
· Buy both to own real money that has no counter-party risk.
WHEN?
· The simple answer is buy silver when the gold to silver ratio (G/S) is high and buy gold when the ratio is low. The problem is defining “low” and “high.”
· Silver prices move higher and lower, faster and farther, than gold prices so the ratio moved between 20 and 100 over the past 50 years. The historical ratio is lower, ten to twenty.
PURPOSE?
· Maintain physical ownership of precious metals which have no counter-party risk.
· Enlarge your stacks of silver and gold by trading between gold and silver timed with ratio extremes.
· Sleep well knowing you own real money – gold and silver – not dodgy over-priced stocks at the end of a gigantic credit expansion and stock boom.
REALLY? SHOW ME!
The above graph of the ratio (weekly data) shows an idealized scenario for trading between gold and silver. Buy gold when the ratio is low and silver is relatively expensive. Sell gold when the ratio is high and silver is relatively inexpensive. The red arrows show 13 trades since 1971 that could have drastically increased total ounces in your metal stacks.
Begin in 1971 with $1,000 invested into gold – 23 ounces. Trade back and forth between gold and silver. By late 2018 your $1,000 in gold grew to over 177,000 ounces of silver, worth over $2,000,000 in a perfect trading world.
These theoretical trades were executed with perfect hindsight – about as likely as:
· Everyone is above average.
· The wind is always at your back.
· Politicians are truthful and care about you.
· Central bankers are good-hearted souls motivated to protect the best interests of common people.
· Debt and deficits don’t matter.
· The COMEX is an honest physical exchange.
IN A MORE REAL WORLD:
· The future is unknowable.
· Timing a market is difficult.
· Greed and fear inhibit making good decisions.
· Trend changes are difficult to see in real time.
· All markets are manipulated.
· Every transaction includes a cost.
TRADING IS BENEFICIAL EVEN IN THE REAL WORLD!
· Buy silver when the ratio is high—40s before 1980 bubble and over 60 after the 1980 bubble. Sell silver and buy gold when the ratio is low—below 30 before the bubble and below 50 after the bubble. AND…
· Calculate the five week moving average of the ratio. Trade positions only after the ratio has FALLEN BELOW moving average highs or CROSSED ABOVE moving average lows in the ratio. AND…
· Calculate the 12 period Relative Strength Index (RSI). Trade positions only after the RSI has reached extreme levels—below 25 or above 75—and reversed. AND…
· Assume each trade costs 5 percent in transaction expenses.
· Taxes on income are NOT considered.
This simple trading strategy is less emotional because it’s mechanical. Many other sophisticated systems are possible.
Using this simple system the trades are:
Begin with $1,000 in gold in 1971 – 23 ounces. Trade weekly closing prices 15 times in 40+ years based on the above (or similar) rules. Your stash grows to over 34,000 ounces of silver, worth about $500,000, after transaction costs. This is a good increase but far less than ideal trades made with hindsight.
WHY?
· Gold and silver prices have risen in 48 years because the banking cartel devalued dollars. Higher prices and further dollar devaluations are inevitable.
· Each trade roughly doubled total ounces of metal. For perspective, twenty doubles creates a 1,024 factor increase.
Even facing real world difficulties your stack of metal will increase with careful exchanges between gold and silver every two to four years when the G/S ratio moves to extremes.
Miles Franklin discussed gold to silver exchanges and the ratio here and here. The current ratio is 83—high. An exchange from gold into silver remains sensible at this ratio.
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.
For your protection, we are licensed, regulated, bonded and background checked per Minnesota State law.
The U.N. Sustainability Development Goals and Silver
The Silver Institute periodically issues Backgrounders to provide a closer look at various components of the silver market. Today, we have posted to our website a Backgrounder on The U.N. Sustainability Development Goals and Silver. You can view the Backgrounder here.
We trust you will find it of interest and please share with us any feedback or let us know if you have any questions, by email at info@silverinstitute.org.
My experience based on having run three companies in India is that there is not much, if anything, you can do about those in the Third World. Fear of ghosts, and superstitions—and an over-whelming irrationality—is hardwired in them.
They simply have no passion to do well in life, accumulate, and build a civilization. They want to make money quickly and use it for decadence. They have no gratitude, and you can do nothing about it. They have no capability to be respectful. The only thing that makes them toe the line is the fear of the higher-ups. If you remove this fear, they go wild. Carrots and sticks do not work, for they cannot calculate. You can give them all you can, and they will merely expect more, as a right.
Europeans brought written language to sub-Saharan Africa; and railways, science and enlightenment to India. Without European management, all the benefits the Third World got are getting rapidly neutralized. Without Europeans running them, the Third World will revert back to the dark ages.
None of the above stops the compulsive virtue-signalers—the World Bank, the IMF, main-stream media, big corporations, etc.—from claiming that the Third World will have the biggest economies in the near future. In a recent report, Standard Chartered Bank claims that by 2030 India’s economy will be $46 trillion large, while US’s will be only $31 trillion. I tried all sensible tricks possible on my spreadsheet to see what growth rate India would require to get from a country where half the population poops in the open to become an economy 50% larger than the US, all in a mere 12 years. Reports like these can be reasonably assured to go unchallenged. Who wants to look racist by suggesting that India cannot be such a big economy if at all India will still be a single country by 2030?
On investments…
Today, I gave a presentation on building a “speculator’s portfolio,” at the just concluded Vancouver Resource Investment Conference. Here is the list that I gave, with my preferred buying prices:
Keras Resources (KRS.LON; £0.0032)
Lorraine Copper (LLC; C$0.115)
Nkwe Platinum (NKP; A$0.064)
G-Resources (1051.HKG; HK$0.048)
Condor Resources (CN; C$0.05)
IDM Mining (IDM; C$0.055)
FPX Nickel (FPX; C$0.105)
Amarillo Gold (AGC; C$0.23)
Globex Mining (GMX; C$0.29)
Miramont Resources (MONT; C$0.30)
VR Resources (VRR; C$0.16)
Altus Strategies (ALTS; C$0.045; in the “watch-list”)
Energold (EGD; C$0.125; in the “watch-list”)
Half of the seats of the next Capitalism & Morality are gone. Please register now if you would like to be assured a seat.
Warm regards,
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
St. John’s – Altius Minerals Corporation (“Altius”) (TSX: ALS; OTCQX: ATUSF)reports that it has entered into an agreement to acquire a 2% Net Smelter Return Royalty covering the Curipamba copper-gold-zinc project (the “Curipamba Project”) from Resource Capital Fund VI L.P. and RCF VI SRL LLC (collectively, “RCF”) for US$10 million in cash.
The Curipamba Project, located in central Ecuador, is being developed under a 75:25 partnership between Adventus Zinc Corporation (“Adventus”) (TSX-V: ADZN; OTCQX: ADVZF), and Salazar Resources Ltd. (TSX-V: SRL). Altius currently holds 21% of the outstanding shares of Adventus.
The Curipamba Project includes the resource stage El Domo deposit, a near-surface, copper and gold rich massive sulphide deposit that has seen more than 50,000 metres of drilling to date, including approximately 18,000 metres in 2018. On January 31, 2018 Adventus announced the El Domo resource consists of Indicated Mineral Resources of 8.8 million tonnes grading 1.62% copper, 2.42% zinc, 0.27% lead, 2.34 g/t gold, and 48 g/t silver and Inferred Mineral Resources of 2.6 million tonnes grading 1.29% copper, 1.51% zinc, 0.14% lead, 1.09 g/t gold, and 29 g/t silver. An updated mineral resource estimate and Preliminary Economic Assessment is currently underway and is expected to be released during the first half of 2019. The Curipamba Project also encompasses more than 22,000 hectares of mineral rights that host several other prospective targets, many of which are expected to be advanced and tested during 2019.
Lawrence Winter, Ph.D., P.Geo., Vice‐President of Exploration for Altius, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed, prepared and approved this release.
Further detailed information regarding the project can be found by visiting www.adventuszinc.com and the most recent National Instrument 43-101 Technical Report relating to the project, dated March 9, 2018, is available at www.sedar.com. About Altius Altius directly and indirectly holds diversified royalties and streams which generate revenue from 15 operating mines. These are located in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore, potash, and thermal (electrical) and metallurgical coal. The portfolio also includes numerous predevelopment stage royalties covering a wide spectrum of mineral commodities and jurisdictions. Altius also holds a large portfolio of exploration stage projects which it has acquired for future transactions with industry partners that are anticipated to result in royalties and equity and minority interests for Altius. Altius has 42,851,726 common shares issued and outstanding that are listed on The Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices. For further information, please contact Flora Wood (fwood@altiusminerals.com) or Chad Wells at 1.877.576.2209
Rover Metals (TSXV: ROVR) (OTCQB: ROVMF) will be showcasing its 3D Exploration Model for its Cabin Lake Gold Project today at the Vancouver Resource Investor Conference. Come by our booth (#911) and talk to our VP of Exploration, Raul Sanabria, about the Cabin Lake project.
You can also watch the 3D video rendering of our exploration model on our website by clicking here. The Cabin Lake Gold Project has a historical resource with high grade drill intercepts at or near surface.
Jan 18, 2019 04:43 pm
By Shree Kargutkar Part 2 in our palladium series explores the unique supply/demand fundamentals that support our bullish outlook; Part 1 provided a primer.
Palladium has been a standout performer, more than doubling in price in three years 2016 to 2018. YTD the white-hot metal is up more than 10% as of January 16, 2019. Palladium’s rise is best understood by analyzing its unique supply-demand dynamics. Russia and South Africa account for nearly 80% of the world’s production, and a chronic supply deficit keeps pushing prices higher. Read on » Read in browser »
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Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
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Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
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.
VANCOUVER, Jan. 21, 2019 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to announce that the largest drill program in the Company’s history focused on optimizing mine development has begun at our 100% owned, Rook I property, in the AthabascaBasin, Saskatchewan. The drill program results will be incorporated into a NI43-101 Bankable Feasibility Study (“FS” or the “Study”), building on the successful outcomes highlighted in the Company’s Pre-Feasibility Study (“PFS”) (see News Release dated November 5, 2018) which demonstrated the Arrow Project to be an exceptional development opportunity for NexGen, Saskatchewan and Canada.
The development optimization program consists of a minimum 125,000 m using 10 diamond drill rigs focusing on three objectives:
Convert High Grade Indicated Mineral Resources to Measured Mineral Resources: Approximately 71,000 m will be drilled at a spacing sufficient to support the conversion of the currently defined high-grade (“HG”) Indicated Resource (currently 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8)to Measured Resource. Measured Mineral Resources represent the highest level of mineral resource estimate, providing a significant amount of technical detail on the FS mine plan, design and economics.
Covert Inferred Mineral Resources to Indicated Mineral Resources: Approximately 54,000 m will be drilled to support the conversion of part of the currently defined Inferred Resource (currently 91.7 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8)to an Indicated Resource. Further conversion of Inferred to Indicated Mineral Resources will optimise the usable mineral inventory for the FS mine plan which can only incorporate Indicated or higher classification resources in compliance with the NI 43-101 guidelines. Given the strong continuity of mineralization seen at Arrow, the conversion of Inferred to Indicated resources since delineation drilling commenced has been very efficient and predictable.
Geotechnical and Hydrogeological Characterization: Approximately 12,500 m of the 125,000 m will also incorporate the geotechnical and hydrogeological characterization of the rock mass in the areas of potential mine development and Underground Tailings Management Facility (“UGTMF”). This additional analysis will build upon the significant geotechnical, hydrogeological and metallurgical testing that has been incorporated into the PFS.
The 125,000 m of drilling outlined above will be added to the existing 296,000 mof drill data collected to date by NexGen to form the basis of an FS which will incorporate an updated Mineral Resource Estimate and scheduled for release in H1/2020. The FS will increase design detail to a resolution necessary to support at a minimum a Class 3 cost estimate (AACE International standard). The objectives of the FS are as follows:
Further optimization of the proposed development of the Arrow Deposit with respect to mine design (stope layouts, development, and production schedule) based on only Measured and Indicated mineral resources,
Defining a level of design to support the comprehensive Environmental Assessment applications,
Engaging with construction experts to optimize construction sequencing, utilization of pre-fabrication, offsite module assembly, and identify alternative opportunities to advance project development timelines,
Continuing the advancement of the UGTMF design to optimize tailings density and further reduce tailings volumes enabling the opportunity to minimize the surface footprint of the mine,
Leveraging opportunities for capital cost optimization while increasing confidence in the capital and operating cost estimates,
Integrating innovative but proven mining, milling and environmental technologies and sustainable practices including the evaluation of alternative energy solutions to further increase NexGen’s sustainability commitment.
Drilling program target areas can be found in the figures 1 and 2.
Financial
The Company has cash on hand of approximately ~$110 million.
Leigh Curyer, President and Chief Executive Officer, commented: “This year’s drill program will be the largest in the Company’s history to date, and reportedly, in Canada for a uranium project in 2019. The team has focused considerable effort into the planning of the drill program and technical studies, which leverages our experience in optimizing mine development, processing and elite environmental management practices. With the opening this week of the new Saskatoon project office, which has been designed at a capacity to take NexGen through to reaching its objective of becoming a major producer of uranium on the world stage, it is very exciting times for the NexGen team and Saskatchewan.”
Troy Boisjoli, Vice-President, Operations and Project Development, commented: “The technical characteristics of the Arrow deposit has allowed for rapid growth and increased confidence through each successive drill program. This is an exciting time at NexGen, focussing on continued advancement of the Arrow deposit through the requisite development stages.”
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
Split core samples will be taken systematically, and intervals will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples sent to SRC will be analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples are analyzed for U3O8 by ICP-OES and select samples for gold by fire assay. Assay results will be released when received and after stringent internal QA/QC protocols are passed.
All scientific and technical information in this news release has been prepared by or reviewed and approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen. Mr. Boisjoli is a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“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.
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 from the date 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.
U.S. investors are advised that while the terms “indicated resources” and “inferred resources” are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize these terms. U.S. investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into mineral reserves.
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.
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.
The New Year is off to a murky start. The broader market managed to ease off lows seen at the end of last year and recover key technical levels. Yet volatility continues to keep investors on their toes. Gone are the days when “minor” triple-digit moves for the Dow Jones Industrial Average elicit nary a raised eyebrow.
2018 came to an end with a sigh of relief. After a tumultuous December the U.S. stock indexes posted their worst performance since the financial crisis. For the year, the Dow closed down 5.6% while the S&P 500 index declined 6.2%. The Nasdaq Composite shed 3.9% in 2018 and bid adieu to the worst year in a decade.
Revelers rang in the New Year with a pause in global trading. The holiday season brought its ups and downs with the S&P 500 off by a double-digit percentage point on Christmas Eve from its record highs. With the index touching bear market territory, perhaps setting the precedent for an investor’s version of the Ghost of Christmas Past. Nonetheless, the market rally on the day after Christmas on Dec. 26 boosted the Dow to hit its biggest gain on record.
There are plenty of unanswered questions on the fundamental front. Uncertainty has set the tone and put a damper on overall investor sentiment. The headwinds of yesteryear remain steadfast in 2019. The potential fallout from the longest U.S. government shutdown in history coupled with the ongoing U.S.-China trade negotiations as well as Brexit woes are doing little to boost confidence in this year’s outlook. 2019 WORD OF THE YEAR: PARTIAL
We can’t have partial growth or expansion; we can’t have a partial recession. The partial U.S. government shutdown is having a complete and negative impact on the economy.
As the shutdown enters Day 28, the U.S. market averages have bounced back from the Christmas lows with the major indexes out of correction territory. The partial government shutdown has halted a myriad of government operations. The Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB), considered non-essential, has ceased the review of keg collars for beer. This means breweries can’t ship product outside state lines without regulatory approval. Bad news for small craft brewers with perishable IPA and seasonal releases.
The IPO traffic jam is also notable as the result of the shutdown. Companies planning to go public could face delays in launching. The SEC shutdown plan includes only essential staff who are keeping an eye on the markets and responding to emergency situations. The government furlough could stall the pipeline for IPOs in 2019.
With federal agencies such as the FDA working only on “imminent threats” and federal workers missing paychecks, the headlines about national security and disruptions to government programs are sure to evoke distress. BANKING ON INCENTIVES
As earnings season got underway, the major banks reported results that showed mixed results. Results marked by a mostly positive season for banks were hampered by underperformance by one of the big banks at the end of the week. Of course, one of the investment banks missing profit forecasts reflected the volatility in trading and dour capital-raising environment during the last month of 2018.
The drum beat of recession may be getting louder and it’s not just Main Street expressing concern over mounting risks.
According to the latest survey by the Conference Board, recession is a major concern for CEOs around the world. The business research group conducted the survey of over 800 chief executives and found that out of the 28 issues, recession risk ranked as the main concern. The fact that the survey was conducted in the autumn of 2018, before the turbulent pullback in equity prices points to risks to the world economies.
Trading incentives may be limited for the time being amid a backlog of economic data and lack of breakthroughs in the global political arena. At the same time, U.K. Prime Minister Theresa May survived a vote of no-confidence following her Brexit deal defeat in Parliament. As earnings season continues in earnest, keep an eye on any surprises that could shed light on industry or sector shifts. BAND-AID ON A BULLET WOUND
It’s not business as usual in the nation’s capital. With no end in sight for the partial government shutdown, key economic data including Q4 2018 GDP may not be released on schedule. Of course, the estimates for how the shutdown is already affecting the economy in Q1 2019 are nothing short of worrisome.
Market corrections can present opportunities, but prolonged uncertainty does little for economic growth. The domino effect of uncertainty on business investment amid murmurs of an end to the Federal Reserve’s tightening cycle will weigh on sentiment.
Should progress be swift on tariffs and a resolution reached on the partial shutdown, opportunity for growth remains a possibility. The risks to growth in the two largest economies can be characterized as self-inflicted ones. With government efforts to stimulate growth being dismantled by risks to stability, the recovery trajectory is fragile. Read in browser »
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The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
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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