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Proven Probable
VANCOUVER, British Columbia, Dec. 07, 2018 (GLOBE NEWSWIRE) — Millrock Resources Inc. (MRO.V) (“Millrock” or “the Company”) announces that it plans to raise gross proceeds of up to $1,000,000 through a non-brokered private placement of up to 10,000,000 units (the “Units”) priced at $0.10 per Unit. Each Unit will consist of one common share and one share purchase warrant (the “Unit Warrants”). Each Unit Warrant will entitle the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:
- During the first year from the closing date the Unit Warrants will be exercisable at $0.14 per share;
- Thereafter, during the second year from the closing date, $0.17 per share; and
- Thereafter during the third year from the closing date, $0.20 per share.
Finder’s fees of 6% cash and 6% finder’s warrants (Finder’s Warrants”) may be paid in connection with this financing. The Finder’s Warrants have the same terms as the Unit Warrants.
The Company reports it has closed a portion of the non-brokered private placement. A total of 7,000,000 units at a price of $0.10 per unit have been issued for gross proceeds of $700,000. Each unit consists of one common share of Millrock and one share purchase warrant (the “Unit Warrants”). Each Unit Warrant entitles the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:
- During the first year from the closing date the Unit Warrants are exercisable at $0.14 per share;
- Thereafter, during the second year from the closing date, $0.17 per share; and
- Thereafter during the third year from the closing date, $0.20 per share.
Finder’s fees of $38,400 and 384,000 Finder’s Warrants are payable to Red Plug Capital Corp. in connection with this portion of the financing.
The common shares issued under this financing and any common shares issued pursuant to exercise of Unit Warrants or Finder’s Warrants are subject to a hold period and may not be traded until April 8, 2019.
This financing is subject to receipt of TSX Venture Exchange acceptance.
Proceeds from the financing will be used for project generation and general corporate purposes. The financing is subject to final approval from the TSX Venture Exchange.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorers PolarX Limited. and Sojourn Exploration Inc.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
(604) 638-3164
(877) 217-8978 (toll-free)
Some statements in this news release contain forward-looking information. 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 the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
Vancouver, British Columbia–(Newsfile Corp. – December 6, 2018) – EMX Royalty Corporation (TSXV: EMX) (NYSE American: EMX) (the “Company” or “EMX”) is pleased to announce the execution of a Regional Strategic Alliance agreement (the “Agreement”) between its wholly-owned subsidiary Bronco Creek Exploration, Inc. (“BCE”), and South32 USA Exploration Inc. (“South32”), a wholly-owned subsidiary of South32 Limited. The Agreement provides annual funding for generative work and acquisitions over a two year period, as well as a framework to advance projects of interest. Generative work will focus on copper and other base metal projects within the Laramide and Tertiary magmatic arcs of Arizona, New Mexico and Utah. Projects advanced to the drill program stage may be selected as Designated Projects. Designated Projects will advance under separate option agreements providing for work commitments and cash payments to EMX during South32’s earn-in period, and upon earn-in, a 2% net smelter return (“NSR”) royalty interest and pre-production and milestone payments to EMX’s benefit. South32 has initially selected five EMX copper projects in Arizona to begin advancing toward the drill program stage. Please see the attached map and www.EMXroyalty.com for more information.
Alliance and Commercial Terms Overview (all dollar amounts in USD). Under the terms of the Agreement, which has an initial term of two years, South32 will provide annual funding for generative work performed by EMX personnel to identify properties for exploration work (“Alliance Exploration Properties” or “AEPs”) within the Regional Strategic Alliance Area of Interest (“AOI”) that consists of the states of Arizona, New Mexico, and Utah, but excludes South32’s Hermosa project in southern Arizona. EMX personnel will conduct exploration activities on AEPs with additional funding from South32 in order to identify projects suitable for designation as Designated Projects. Each Designated Project will be covered by a separate option agreement pursuant to which South32 can acquire 100% of the project on the terms described below. All generative and AEP exploration activities will be guided by a Technical Committee consisting of two members from each company.
South32 will provide $800,000 per year to cover the generative work and the salaries of EMX personnel involved in AEP exploration work. South32 will also provide a separate annual acquisition fund of $200,000 to pay for the acquisition of new properties as approved by the Technical Committee. AEP exploration work will be funded separately through cash calls to South32 in amounts directed by the Technical Committee.
Designated Project Option Agreement Terms (all dollar amounts in USD). Each option agreement covering a Designated Project will provide that South32 can earn 100% interest in the project by reimbursing EMX’s holding costs upon execution of the option agreement, and making option payments totaling $525,000 and completing $5,000,000 in exploration expenditures during the five-year term of the option agreement.
Upon exercise of the option by South32, EMX will retain an uncapped 2% NSR royalty on the project (not subject to purchase or buy down) and receive annual advance royalty (“AAR”) payments equivalent to 50,000 pounds (“lbs”) of copper commencing on the first anniversary. All AAR payments are set off against 80% of future royalty payments. In addition, South32 will make milestone payments as follows (project milestones are to NI 43-101 reporting requirements):
- 166,000 lbs of copper (or the cash equivalent) upon the completion of an initial resource estimate,
- 333,000 lbs of copper (or the cash equivalent) upon completion of a prefeasibility study, and
- 666,000 lbs of copper (or the cash equivalent) upon completion of a feasibility study.
Initial Alliance Exploration Projects. Five Arizona porphyry-copper projects have been selected as AEPs by South32, including Midnight Juniper, Jasper Canyon, Sleeping Beauty, Dragons Tail, and Lomitas Negras. EMX and South32 are commencing work programs on the initial AEPs, as well as initiating a generative program to identify new projects for acquisition. Note, in the following project descriptions, although the referenced nearby mines and deposits provide geologic context for EMX’s properties, this is not indicative that the EMX properties host similar endowments of mineralization.
Midnight Juniper. The Midnight Juniper project lies at the north end of the Clifton-Morenci mining district, approximately one kilometer northwest of the Morenci open pit copper mine. The project geology consists of a dissected plateau of Tertiary age volcanic cover rocks overlying a series of Paleozoic sedimentary and Proterozoic metamorphic rocks that are exposed in an arcuate pattern at lower elevations along stream courses. Paleozoic carbonate rocks contain a number of manganese oxide-rich base metal occurrences in northeast oriented vein, replacement, and breccia bodies typical of the distal expression of porphyry copper systems. EMX’s reconnaissance mapping shows that these occurrences appear to vector towards a suspected porphyry source lying under Tertiary cover rocks in the center of the Midnight Juniper land position.
Jasper Canyon and Sleeping Beauty. The Jasper Canyon and Sleeping Beauty projects are located in the Globe-Miami mining district. Both properties lie on the flanks of the Schultz Granite intrusive complex, which is associated with numerous past and current producing copper mines and deposits in the Globe-Miami and Superior mining districts. Porphyry copper deposits in this region have been dismembered by numerous post-mineral faults that displace upper levels of the mineralized systems northeastward. The Jasper Canyon and Sleeping Beauty projects lie at the east end of a northern trend of fault bounded deposits that include Pinto Valley, Diamond H and Copper Cities. The Jasper Canyon project lies along the easternmost portion of this trend and represents a fault-bounded and largely covered portion of the suspected upper levels of a porphyry copper system in a previously unexplored portion of the district. The Sleeping Beauty project lies to the west of Jasper Canyon, and directly north of the Copper Cities open pit copper mine, and is interpreted to contain down-dropped blocks of mineralization north of the Sleeping Beauty fault. Other fault-bounded copper deposits in the district at similar structural levels include Copper Cities, Miami East, Van Dyke, and Old Dominion.
Dragons Tail. The Dragons Tail project is located in the Superior mining district, approximately eight kilometers north of the Resolution copper deposit and five kilometers southwest of Pinto Valley. EMX identified a 1.6 kilometer long zone of quartz-sulfide alteration within Proterozoic sedimentary rocks during reconnaissance work. The outcrops of quartz-sulfide veining lie beneath tilted Tertiary age volcanic and conglomeratic cover rocks. Historic drilling on the east side of the property intercepted transported copper-oxide mineralized clasts within Tertiary conglomerates, which suggests the source of the copper lies to the west of the drilling and likely down dip of the mineralized exposures.
Lomitas Negras. The Lomitas Negras project is located approximately ten kilometers southeast of the town of San Manuel, in a broad area of post-mineral cover rocks. The property is ringed by Laramide-age intrusive rocks and porphyry copper/skarn deposits that include San Manuel-Kalamazoo (~20 kilometers north), Copper Creek (~25 kilometers northeast), and Oracle Ridge (~10 kilometers southwest). Nearby outcrops exhibit alteration and anomalous base metal mineralization that characteristically occurs on the margins of porphyry copper systems. EMX’s recognition of the altered outcrops, combined with a new interpretation of the extensional structural setting of the area, led to the identification of concealed porphyry copper targets beneath the post-mineralization pediment cover.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.
The Regional Strategic Alliance Agreement with South32 is an excellent example of the execution of EMX’s royalty generation business model. The Company’s organically generated porphyry copper projects were acquired on open ground in productive mining districts, with value established through low cost, early-stage exploration work. The Agreement’s provisions for generative funding are coupled with the future upside potential for project work commitments, pre-production payments and retained royalty interests based upon exploration success to EMX’s and South32’s mututal benefit.
Mr. Dean D. Turner, CPG, a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
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For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: Dave@EMXroyalty.com
Scott Close
Director of Investor Relations
Phone: (303) 973-8585
Email:SClose@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward looking statements“ that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,“ “intend,“ “expect,“ “anticipate,“ “will“, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company‘s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2018 (the“MD&A”), and the most recently filed Form 20-F for the year ended December 31, 2017, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
Figure 1: AEP projects and RSA AOI (Arizona, Utah, and New Mexico) with South32.
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T
oronto, Ontario–(Newsfile Corp. – December 6, 2018) – U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company“) is pleased to report initial results of test work on the extraction of uranium and vanadium from almost a metric tonne of mineralized gravel from the wholly-owned Laguna Salada deposit in Argentina.
The test work has been designed, and results monitored, by Mr. David Marsh, director of U3O8 Corp. whom, as former General Manager – Technical Project Development at Paladin Energy, was intimately involved in the design, construction and operation of two uranium production plants in Africa. This work represents a complete overhaul of the preliminary economic assessment (“PEA”) carried out by Tenova Mining and Minerals (Australia) Pty Ltd. in 2014. Mr. Marsh, with his vast practical experience, reviewed the PEA and felt that there was room for improvement and simplification of the flowsheet and processing plant design, resulting in potential to reduce estimated capital costs (“capex”) and operating costs (“opex”).
David Marsh commented, “I am delighted with the initial results from our test work on Laguna Salada gravel. The work program was designed to test ways of reducing estimated production costs by simplifying the former PEA process flow sheet. Our first step was to optimize the washing of the fine, uranium-vanadium – bearing material off the barren pebbles. The test results show that “scrubbing” the gravel for 5 minutes produces similar results as scrubbing for the 15 minutes modelled in the PEA. This two-thirds reduction in processing time could potentially reduce the cost of the associated equipment which was estimated at US$6.2 million in the PEA.”
“Our second step aimed to extract more of the uranium and vanadium contained in the gravel, and this proved successful with vanadium recovery increasing by 23%, and uranium marginally by 2%, over the PEA.”
The original Laguna Salada PEA reported life-of-mine cash costs of approximately US$22 per pound of uranium, net of vanadium, and a net present value of US$55 million at a 7.5% discount rate, with a US$136 million capital cost.
A PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment will be realized.
Next Steps:
There are two main components to ongoing metallurgical test work:
- Continued simplification of the Laguna Salada process flow sheet:
- The life-of-mine operating cost, including royalties due to the State, were estimated at US$22 per pound of uranium, net of vanadium, in the PEA. Approximately 40% of this cost estimate is related to the management of sulphate (gypsum) that is present in the gravel, that competes with uranium and vanadium for the reagents used to leach the metals. So, finding a more cost-effective way of dealing with the sulphate is a priority in driving down production cost estimates. Alternative ways of controlling sulphate levels were examined and these results will be reported shortly;
- The PEA modelled the processing of uranium and vanadium that was concentrated in very fine-grained (<0.075 millimetre (“mm”)) powder that proved to be relatively costly to process since excess water had to be squeezed from it in filter presses that are not only expensive, but are costly to operate. The PEA design included six filter presses at a cost of US$2.1 million per unit. The current work tested a much coarser (0.85mm grain size) uranium-vanadium – bearing component of the gravel from which excess water should drain much more readily, thereby likely reducing the number of filter presses required. Results of this work are also expected shortly;
- Test work is now planned for the uranium/vanadium separation and refining processes where there is further potential to reduce capex and opex. More efficient and proven processes and equipment successfully employed elsewhere on similar types of uranium/vanadium mineralized bodies will be tested and the expectation is that they will prove every bit as efficient with the Laguna Salada material; and
- Initial metallurgical test work is being done on unconsolidated sand and gravel samples from the relatively high-grade channels discovered beneath the layer of gravel on which the PEA was based. This will provide the first data as to how efficiently uranium and vanadium can be extracted from the channel fill. Results are expected in early January.
Technical Details of Test Work:
1. Bulk Sample
Approximately 950 kilograms of gravel was excavated from within three metres of surface from five locations within the resource footprint in the Guanaco sector of the Laguna Salada Deposit. Guanaco contains 94% of the total Laguna Salada resource tonnage (an Indicated and Inferred resource) and 87% of the contained Uranium. The material was bagged and shipped to Australian Nuclear Science and Technology Organisation (“ANSTO”) in Australia. The sample was homogenized prior to commencing the test work.
2. Test Work Aimed at Simplifying the Process Flow Sheet
Scrubbing at Laguna Salada refers to removal of fine uranium-vanadium – bearing powder that coats barren pebbles in the gravel. The scrubbed material was then screened to separate the pebbles from the fine component into which most of the uranium and vanadium is concentrated.
The flowsheet generated for the PEA involved a gravel-scrubbing process followed by screens and cyclones to separate the extremely fine (0.075mm) material from the gravel, along with two stages of filtration ahead of the uranium/vanadium leach circuit. David Marsh commented, “There is scope to simplify the process flowsheet making the future plant easier to operate.”
The recent work at ANSTO suggests that this circuit can be greatly simplified as follows:
- Refining of the scrubbing process has reduced the residence time in the scrubbers from 15 minutes to only 5 minutes which will make the equipment smaller, cheaper and easier to operate as well as making the units more mobile;
- Changing the cut-point after scrubbing to a 0.85mm screen separates the coarse, pebbly component of the gravel that constitutes 77% of its mass, from the <0.85mm material that represents 23% of the gravel’s mass. Although using the <0.85mm material involves processing almost three times the volume of material contemplated in the PEA, the size of the downstream equipment would increase only marginally because of the shorter residence time in each component of the equipment. Subsequent filtration and dewatering processes are likely to be simpler and should result in an overall cost reduction and improved process efficiencies (filtration results will be reported on shortly);
- The <0.85mm material contains 89% of the original gravel’s uranium compared with 85% in the <0.075mm material modelled in the PEA. Alkaline leach extracted 94% of the contained uranium versus a marginally better 95% in the test work incorporated in the PEA. Overall, 84.5% of the gravel’s uranium was extracted from the 0.85mm material, compared with 82.5% in the PEA – an increase of 2%.
- 46% of the gravel’s vanadium was concentrated into the <0.85mm component against 29% in the 0.075mm component used in the PEA model. Alkaline leach at ANSTO extracted 55% of the vanadium, lower than the 71% extraction used in the PEA. However, processing of the coarser 0.85mm material still led to a better vanadium recovery: 25% of the gravel’s vanadium was recovered from the 0.85mm material against 21% for the 0.075mm material used in the PEA – an increase of 23%;
Table 1. Summary of beneficiation and alkaline leach tests on <0.85mm material from a bulk sample of gravel from the Guanaco sector of the Laguna Salada Deposit.
| Study | % of gravel’s mass in fine-screened component | Uranium | Vanadium | ||||
| % of metal in fine-grained component of gravel | % of metal extracted by alkaline leach | % overall extraction | % of metal in fine-grained component of gravel | % of metal extracted by alkaline leach | % overall extraction | ||
| PEA | 9% | 85% | 95% | 82.5% | 29% | 71% | 21% |
| Bulk sample | 23% | 89% | 94% | 84.5% | 46% | 55% | 25% |
| Difference | 260% | 2% | 23% | ||||
3. Alkaline Leach
The alkaline leach was done at a temperature of 80 degrees Celsius (175 degrees Fahrenheit) for 8 hours and maximum extraction of 94% was achieved after 6 hours.
Technical Information & Cautionary Note
The technical report referred to in this press release is entitled:
September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium Vanadium Deposit, Chubut Province, Argentina.” The report is available on www.sedar.com and www.u3o8corp.com.
Dr. Richard Spencer, P.Geo., CGeol., President and CEO of U3O8 Corp. and a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada Deposit and the related PEA.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company’s mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:
- Laguna Salada Deposit, Argentina – a PEA shows that this near surface, free-digging uranium-vanadium deposit has low production-cost potential; and
- Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.
Additional Information
Information on U3O8 Corp., its resources and technical reports are available at www.u3o8corp.com and on SEDAR at www.sedar.com. Follow U3O8 Corp. on Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and YouTube: www.youtube.com/u3o8corp.
For further information, please contact:
Carolina Diaz at carolina@u3o8corp.com or phone (416) 868-1491 or Richard Spencer, President & CEO, U3O8 Corp., Tel: (647) 292-0225 richard@u3o8corp.com
Forward-Looking Statements
This news release includes certain “forward looking statements” related with the development plans, economic potential and growth targets of U3O8 Corp’s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana and (d) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii) economic, political and industry market conditions will be favourable, and (iv) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company’s ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled “Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina” and the January 18, 2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”
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VANCOUVER, Dec. 5, 2018 /PRNewswire/ – Pacton Gold Inc. (TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the “Company” or “Pacton“) is pleased to provide a brief corporate update on the Company’s Pilbara Gold strategy and plans going forward into 2019. Throughout 2018, Pacton strived to build a premium land package of the most promising gold prospects throughout the Pilbara basin of NW Australia. The Pacton team believes the Company’s strategy has been highly successful to date on securing the most economical and accessible gold deposits in the region. This was a primary objective of our team in our effort to meet the expectations of major stakeholders and for all of Pacton’s investors. This objective continues to be a key part of the Pacton strategy going forward into 2019.
Pacton Gold Inc. (CNW Group/Pacton Gold Inc.)
As a result of the Company’s success in implementing its strategy over the past year, Pacton is now ready to commence the next phase of its corporate growth plan. Pacton is determined to become a premier player in the exploration, discovery and production of Pilbara gold from all prospective and licensed tenements. This requires Pacton to grow its team and attain further expertise in the areas of jurisdictional regulations, native issues and existing infrastructural opportunities.
Pacton is pleased to announce that Johnathon Campbell has been appointed Field Logistics Manager of the Company. Mr. Campbell has worked in the mining industry for over 18 years for some of Australia’s leading miners. He has held roles with companies such as BHP, Newmont and Anglo Ashanti and is most well-known for his discovery and pegging of leases that started what is now known as the Pilbara gold rush. Pacton is confident that Mr. Campbell will bring his local expertise to the team, further enhancing the Company’s effectiveness in meeting its commitments to shareholders and its strategic goals throughout the Pilbara.
“Securing the services of Johnathan will enhance Pacton’s ability to execute its future exploration programs in the Pilbara. Johnathan’s considerable experience in the mining industry and his understanding of native title issues in the Pilbara will benefit Pacton significantly. The Board of Pacton welcomes Johnathon to Pacton’s management team and looks forward to further developments with his participation as a leader in an official capacity. He has been integral in putting the Pilbara gold story on the map and his knowledge of the Pilbara region will resonate positively with the members of the Pacton team,” stated Alec Pismiris, Interim President and CEO.
About Pacton Gold
Pacton Gold is a well-financed Canadian explorer with key strategic partners focused on the exploration and development of high grade conglomerate and orogenic 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
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
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Original Source: http://www.321gold.com/editorials/moriarty/moriarty120318.html
Bob Moriarty
Archives
Dec 3, 2018
Early in 2018 someone named Kevin Vecmanis contacted me asking my thoughts on an AI platform he was setting up to help investors track various investing opportunities. The idea intrigued me and I encouraged him to continue. What he came up with is interesting to say the least. I think he is on to something.
The platform is named VanAurum. It contains a lot of data and he tracks those markets that appear to have the best risk/reward potential. Certainly it is slanted to contrarian thinking, as any successful financial site will always do.
Kevin has been kind enough to offer 321gold & 321energy readers both a 14 day free trial and a 25% discount. I highly suggest all investors take a look and at least try the 14 day trial. I don’t have a dog in the fight. I’d like him to succeed and keep improving the product and to do so he needs to make money. I have no financial relationship of any sort with VanAurum.
Go here to read about what he offers.
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Bob Moriarty
President: 321gold
Archives
321gold Ltd
VANCOUVER, British Columbia, Dec. 05, 2018 (GLOBE NEWSWIRE) — Calibre Mining Corp. (CXB.V) (the “Company” or “Calibre”) is pleased to report additional results for the on-going 2018 diamond drilling program on the Eastern Borosi Gold-Silver Project, Nicaragua (the “Project”). Exploration and drilling on the Project is being funded by Calibre’s JV partner IAMGOLD Corporation (“IAMGOLD”).
Highlights
- Drill holes on the La Luna gold-silver vein-structure include additional high-grade intercepts with drill hole LL18-020 returning;
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- 8.71 metres grading 6.78 g/t Au and 5.3 g/t Ag (6.86 AuEq) including 4.38 metres grading 13.22 g/t Au and 9.5 g/t Ag (13.37 AuEq) from the Main structure (124.24 – 132.95m) and,
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- 26.8 metres grading 1.23 g/t Au and 30.1 g/t Ag (1.69 AuEq) including 4.45 metres grading 4.96 g/t Au and 151.5 g/t Ag (7.29 AuEq) from a newly discovered Sulphide-Rich Zone (142.5 – 169.27m).
- The 2018 diamond drilling program has to date completed 44 holes totaling 9,276.5 metres with results for six holes reported in this news release. Drilling with two diamond drill rigs is on-going with additional drill results pending.
- Work on the northern extension to the La Luna South structure has also included a detailed surface rock sampling program. A total of 19 rock samples have been collected with individual samples including 110.3 g/t Au, 18.3 g/t Au, 17.0 g/t Au, 12.8 g/t Au, and 12.4 g/t Au. Drill hole LL18-020 is the northernmost drill hole on the high-grade zone with the anomalous rock samples extending a further 400 metres to the north.
President and CEO Greg Smith stated: “These additional drilling results at the La Luna gold-silver deposit have extended the high-grade portion of the vein-structure intersected early this year 100 metres to the north and the discovery remains open. Additionally, the latest drilling includes a sulphide-rich zone intersected below the main structure which is a new discovery providing further potential at La Luna. Recent surface rock sampling has returned high grade results up to 110.3 g/t Au from similar sulphide rich material extending several hundred metres to the north of discovery drill hole LL18-020 providing immediate step-out drill targets.”
Highlights of the recent H2 2018 Diamond Drilling
| Hole ID |
Target | From m |
To m |
Length (m) |
AuEq (g/t) |
Au (g/t) |
Ag (g/t) |
Pb (ppm) |
Zn (ppm) |
| LL18-020 | Main Structure | 124.24 | 132.95 | 8.71 | 6.86 | 6.78 | 5.34 | 40 | 142 |
| incl. | 127.16 | 131.54 | 4.38 | 13.37 | 13.22 | 9.48 | 70 | 158 | |
| Sulphide Zone | 142.50 | 169.27 | 26.77 | 1.69 | 1.23 | 30.05 | 8896 | 9688 | |
| incl. | 155.36 | 159.81 | 4.45 | 7.29 | 4.96 | 151.5 | 52210 | 54630 |
| Notes: | – H2 2018 Drilling Highlights. See final table for complete recent results. | |||||
| – Intervals are core lengths / true width are estimated to be 80-90% of lengths | ||||||
| – Length weighted averages from uncut assays. | ||||||
| – g/t AuEq calculated using $1300/oz gold and $20.0/oz silver |
H2 2018 Diamond Drilling Program
Drilling to date in 2018 has consisted of step out holes following up on previous high grade intercepts on a series of structures. Total holes completed to date: 44 – (3 Veta Loca “B”, 3 Guapinol, 12 Cadillac-Jaguar, 6 East Dome, 4 Main Blag, 12 La Luna, and 4 San Cristobal). Total meterage to date 2018 (completed holes): 9,276.5 metres – (468.17m Veta Loca “B”, 590.17m Guapinol, 2,414m Cadillac-Jaguar, 2,052.72 East Dome, 1,238.29m Main Blag, 1,994.88m La Luna, and 518.49m San Cristobal). The complete assay results for the recently received six drill holes are provided in the Table 2 below. Drill hole details and maps can be found on Calibre’s website www.calibremining.com.
Recent results have expanded on the high-grade discovery at the La Luna Zone. Drill hole LL18-020 on the La Luna South Structure intersected 8.71 metres grading 6.78 g/t Au and 5.3 g/t Ag (6.86 AuEq) including 4.38 metres grading 13.22 g/t Au and 9.5 g/t Ag (13.37 AuEq) from the Main structure (124.24 – 132.95m) and, 26.8 metres grading 1.23 g/t Au and 30.1 g/t Ag (1.69 AuEq) including 4.45 metres grading 4.96 g/t Au and 151.5 g/t Ag (7.29 AuEq) from a second Sulphide-Rich Zone (142.5 – 169.27m). The new intersects are approximately 100 metres north of LL18-012 which intersected 15.9 metres grading 6.28 g/t AuEq (5.75 g/t Au and 34.3 g/t Ag between 53.0 and 68.9 metres) including 4.65 metres grading 17.78 g/t Au and 32.5 g/t Ag (18.28 AuEq). Previous drilling on the structure also includes LL10-002 which intersected 11.0 metres grading 3.96 g/t Au and 33.6 g/t Ag (4.48 g/t AuEq). The high grade portion of the La Luna South structure is now defined by a series of drill holes over a strike length of 250 metres and down to a vertical depth of 150 metres. Mineralization remains open along strike and down dip. The g/t AuEq calculated using $1300/oz gold and $20.0/oz silver.
H2 2018 drilling also tested the La Luna North Zone located 800 metres to the north on what is interpreted to be a sub-parallel structure with intercepts including LL18-021 with 1.10 metres at 1.59g/t AuEq (1.01 g/t Au and 37.4 g/t Ag) and LL18-022 with 5.85 metres at 0.60 g/t AuEq (0.56 g/t Au and 2.7 g/t Ag). Results are pending for a third hole LL18-023.
Work on the northern extension to the La Luna South structure has also included a detailed surface rock sampling program. A total of 19 rock samples have been collected and analyzed with 16 samples returning greater than one gram per tonne gold and nine samples returning greater than five grams per tonne gold including individual samples grading 110.3 g/t Au, 18.3 g/t Au, 17.0 g/t Au, 12.8 g/t Au, and 12.4 g/t Au. The samples define two linear trends interpreted to be the extension of the two mineralized structures intersected in drill hole LL18-020. LL18-020 is the northernmost drill hole on the high-grade zone and the anomalous rock samples extend a further 400 metres north providing immediate drill targets along the Main Structure. The second trend of anomalous samples include several samples with high base metal concentrations and this NE trending, 200 metre long zone is interpreted as the extension of the deeper Sulphide-Rich structure intersected in LL18-020.
Additional drilling has been completed on the Main Blag Deposit and first pass drilling has tested the San Cristobal Structure with results pending. The 2018 Diamond Drilling program is on-going with additional drilling to be completed on the high-grade Cadillac Discovery.
IAMGOLD / Calibre – Eastern Borosi Project
Exploration to date on the Eastern Borosi Project has outlined several tens of kilometres of highly prospective mineralized structures located in an historic gold-silver mining district. Low sulphidation epithermal gold-silver mineralization intersected on the Eastern Borosi Project is hosted within porphyritic andesite and consists of structurally controlled, high energy quartz-carbonate vein breccias, vein-stockworks and discrete smokey quartz veins containing fine grained sulphide minerals. Targets have been defined by surface soil and rock sampling, trenching and previous drilling.
IAMGOLD has completed the First Option having made US$450,000 in payments to Calibre and completed US$5 million in expenditures and has vested a 51% interest in the Eastern Borosi Project. IAMGOLD has entered the Second Option with the right to earn a further 19% in the Project (by completing additional cash payments totalling $450,000 and further exploration expenditures totaling $5 million) having paid the first and second installments of $150,000 each and funding the on-going 2018 work program. The total potential investment by IAMGOLD to earn a 70% interest in the Project is US$10.9 million.
2018 Exploration and Drilling Program
The 2018 exploration and drilling program continues. Additional drilling has been completed in 2018 on existing zones and new targets with holes completed on the Main Blag Deposit, first pass drilling on the San Cristobal Structure, and current drilling consisting of step out holes on the Cadillac Discovery. In addition to the drilling, target generative exploration is on-going consisting on wide-spaced soil sampling and surface rock sampling over selected areas.
Calibre Mining Best Practice
Calibre is committed to best practice standards for all exploration, sampling and drilling. Drilling was completed by independent firm Continental Drilling. Analytical quality assurance and quality control includes the systematic insertion of blanks, standards and duplicates. Samples are placed in sealed bags and shipped directly to Bureau Veritas Lab in Managua, Nicaragua for sample preparation and then to Vancouver, Canada for 50 gram gold fire assay and ICP-MS multi element analyses. The technical content in this news release was read and approved by Gregory Smith, P.Geo, President and CEO of the Company who is the Qualified Person as defined by NI 43-101.
About Calibre Mining Corp.
Calibre owns a 100% interest in over 413 km2 of mineral concessions in the Mining Triangle of Northeast Nicaragua including the Primavera Gold-Copper Project and Santa Maria Gold Project. Additionally the Company has optioned to IAMGOLD (176 km2) and Centerra Gold (253 km2) concessions covering an aggregate area of 429 km2 and is party to a joint venture on the 33.6 km2 Rosita D gold-copper-silver project with Rosita Mining Corporation and Century Mining. Major shareholders of Calibre include gold producer B2Gold Corp, Lukas Lundin and management.
Calibre Mining Corp.
“Greg Smith”
Greg Smith, P.Geo.
President and CEO
For further information contact:
Ryan King
604 628-1012
www.calibremining.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.
Cautionary Note Regarding Forward Looking Statements
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Calibre to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Table 2 Eastern Borosi Project – H2-2018 Drilling Results
| Hole ID |
Target | From m |
To m |
Length (m) |
Au (g/t) |
Ag (g/t) |
Pb (ppm) |
Zn (ppm) |
| LL18-017 | La Luna S. Ext. | No significant Values | ||||||
| LL18-018 | La Luna South | 103.70 | 104.60 | 0.90 | 0.24 | 1.8 | 20 | 26 |
| LL18-019 | La Luna South | 187.41 | 212.03 | 24.62 | 0.46 | 2.4 | 43 | 161 |
| including | 202.41 | 212.03 | 9.62 | 0.74 | 3.1 | 72 | 126 | |
| with | 202.41 | 205.15 | 2.74 | 1.25 | 5.2 | 132 | 184 | |
| 253.15 | 254.67 | 1.52 | 0.41 | 5.3 | 28 | 110 | ||
| LL18-020 | La Luna South | 23.68 | 29.16 | 5.48 | 0.37 | 1.7 | 32 | 206 |
| 124.24 | 132.95 | 8.71 | 6.78 | 5.3 | 40 | 142 | ||
| including | 127.16 | 131.54 | 4.38 | 13.22 | 9.5 | 70 | 158 | |
| with | 127.16 | 130.10 | 2.94 | 18.31 | 11.6 | 72 | 96 | |
| 142.50 | 169.27 | 26.77 | 1.23 | 30.1 | 8896 | 9688 | ||
| including | 143.66 | 150.60 | 6.94 | 0.87 | 11.6 | 332 | 587 | |
| and | 152.13 | 159.81 | 7.68 | 3.09 | 89.7 | 30270 | 31710 | |
| with | 155.36 | 159.81 | 4.45 | 4.96 | 151.5 | 52210 | 54630 | |
| LL18-021 | La Luna North | 162.00 | 163.17 | 1.17 | 0.33 | 2.6 | 1142 | 1984 |
| 167.75 | 169.27 | 1.52 | 0.56 | 1.4 | 868 | 526 | ||
| 202.00 | 203.10 | 1.10 | 1.01 | 37.4 | 1897 | 6034 | ||
| 208.00 | 210.25 | 2.25 | 0.23 | 0.9 | 12 | 69 | ||
| 213.75 | 219.75 | 6.00 | 0.25 | 2.9 | 36 | 153 | ||
| LL18-022 | La Luna North | 123.15 | 123.52 | 0.37 | 0.35 | 1.4 | 27 | 59 |
| 136.00 | 137.00 | 1.00 | 1.54 | 2.3 | 26 | 124 | ||
| 174.68 | 175.08 | 0.40 | 1.59 | 5.7 | 981 | 1457 | ||
| 205.40 | 211.25 | 5.85 | 0.56 | 2.7 | 489 | 968 | ||
| 217.00 | 222.75 | 5.75 | 0.12 | 3.7 | 2333 | 5921 | ||
| 226.20 | 227.22 | 1.02 | 1.94 | 6.6 | 1049 | 2280 | ||
| LL18-023 | La Luna North | results pending | ||||||
| Notes: | – H2 2018 recent results. | |||||
| – Intervals are core lengths / true width are estimated to be 80-90% of lengths | ||||||
| – Length weighted averages from uncut assays. |
M
Recently Viewed
| Symbol | Last Price | Change | % Change |
|---|---|---|---|
| WUC.CN
Western Uranium & Vanadium Corp.
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What to Read Next
Keith Schaefer, publisher of Oil & Gas Investments Bulletin, profiles a small-cap oil and gas firm active in the Oklahoma STACK that he believes stands out from the pack.
Oil stocks will be a screaming buy sometime between now and Dec. 31. Tax loss selling pressure will add to the pressure of lower oil prices, and some crescendo of selling will hit in the coming weeks, if not days.
So where do I look to buy into this fear?
I’ll tell you why I’m looking at Jericho Oil Corp. (JCO:TSX.V; JROOF:OTC)
They’ve hit on a couple monster wells in the last quarter, validating all their acreage. They’re in Oklahoma, which enjoys some of the best oil prices in North America. And Encana’s $5.5 billion buyout of Newfield tells me the industry loves this play.
All these producers will have a reflex bounce up come January—just from the mindless selling pressure of tax loss time ending. There is a “gimme” of 20-30% coming in early January.
But I think you have to be analytical to figure out where The Big Winners will be.
Pricing power has actually become A Big Deal for oil producers. Oklahoma is getting GREAT pricing, just $1.50/b off WTI.
The Big Oil Plays in North America are suffering from severe price discounts. Permian producers got scorched early this year as the amount of oil being produced overwhelmed infrastructure and West Texas oil prices tumbled to first $8, then $12 and finally $20/b lower than WTI pricing.
The Bakken in North Dakota had been enjoying a premium to WTI after the Dakota Access Pipeline went into service last year—but surging production there has already filled it and that premium has rapidly fallen to a $20/b discount on some days recently.
One of the largest producing basins is the Canadian oil sands, and those barrels have had a $50/b discount some days. That’s really ugly.
So I’m looking to invest where I can get the best bang for my buck—and that’s the U.S. midcontinent.
STACK Drilling Results Far Better Than Lofty Expectations
Jericho got into the STACK play in textbook fashion—it spent 2015/2016 patiently buying assets for pennies on the dollar, a rare company armed with cash in a world full of desperate sellers.
2018 was the inflection point where Jericho Oil switched from asset accumulation mode to production growth mode. The early results for Jericho’s STACK wells have vastly exceeded management’s own lofty expectations.
Jericho’s first well was the Wardroom 13-19N-13W #1H well, which was put on production early this summer.
The well targeted the Meramec formation within the STACK and the results knocked the ball out of the park.
This was a monster well.
Where Jericho Has Been Drilling
Source: Jericho Oil Corporate Presentation
The Meramec well came on production at an eye-popping 950 boe/day. That was a top decile result for the entire basin and Jericho did it on their very first attempt. Today—after 230 days—the well has verified the quality of Jericho’s acreage.
Jericho’s second well was the Swordspear 15-23N-10W location. This well targeted a second formation within the STACK which called the Osage. The Osage is quite different than the Meramec because it is a conventional reservoir.
Conventional means lower rates of initial production, but also much lower decline rates. This is the kind of production that generates stable cash flows that most junior growth companies don’t have access to.
Jericho’s Swordspear well came on at an excellent production rate of 500 boe/day. Since then production from the well has remained exceptionally strong. After 30 days the well was still doing 450 boe/day.
Just yesterday they said the well has averaged 330 boepd after 160 days. Having the Osage as a low-decline, second formation provides the perfect complement to the big initial production rates of the Meramec.
These 2018 drilling results from Jericho really couldn’t have been better. And while the results have been excellent they really aren’t all that surprising.
Competitors including Alta Mesa, Chaparral, Devon, Continental, Newfield, Exxon Mobil and Staghorn have been drilling excellent wells all around Jericho.
The economics of this acreage are equal to the best in the industry.
Source: Newfield Exploration Presentation
Not surprisingly, leasing activity in the play has increased by 1,800% over last year. . .making STACK acreage more highly coveted. The industry wants this play badly.
We don’t have to look any further than the $5.5 billion that Encana (ECA-NYSE/TSX) just agreed to pay for Newfield Exploration (NFX-NYSE) for proof of that.
So we’ve got:
So where do I look to buy into this fear?
I’ll tell you why I’m looking at Jericho Oil Corp. (JCO:TSX.V; JROOF:OTC)
They’ve hit on a couple monster wells in the last quarter, validating all their acreage. They’re in Oklahoma, which enjoys some of the best oil prices in North America. And Encana’s $5.5 billion buyout of Newfield tells me the industry loves this play.
All these producers will have a reflex bounce up come January—just from the mindless selling pressure of tax loss time ending. There is a “gimme” of 20-30% coming in early January.
But I think you have to be analytical to figure out where The Big Winners will be.
Pricing power has actually become A Big Deal for oil producers. Oklahoma is getting GREAT pricing, just $1.50/b off WTI.
The Big Oil Plays in North America are suffering from severe price discounts. Permian producers got scorched early this year as the amount of oil being produced overwhelmed infrastructure and West Texas oil prices tumbled to first $8, then $12 and finally $20/b lower than WTI pricing.
The Bakken in North Dakota had been enjoying a premium to WTI after the Dakota Access Pipeline went into service last year—but surging production there has already filled it and that premium has rapidly fallen to a $20/b discount on some days recently.
One of the largest producing basins is the Canadian oil sands, and those barrels have had a $50/b discount some days. That’s really ugly.
So I’m looking to invest where I can get the best bang for my buck—and that’s the U.S. midcontinent.
STACK Drilling Results Far Better Than Lofty Expectations
Jericho got into the STACK play in textbook fashion—it spent 2015/2016 patiently buying assets for pennies on the dollar, a rare company armed with cash in a world full of desperate sellers.
2018 was the inflection point where Jericho Oil switched from asset accumulation mode to production growth mode. The early results for Jericho’s STACK wells have vastly exceeded management’s own lofty expectations.
Jericho’s first well was the Wardroom 13-19N-13W #1H well, which was put on production early this summer.
The well targeted the Meramec formation within the STACK and the results knocked the ball out of the park.
This was a monster well.
Where Jericho Has Been Drilling
Source: Jericho Oil Corporate Presentation
The Meramec well came on production at an eye-popping 950 boe/day. That was a top decile result for the entire basin and Jericho did it on their very first attempt. Today—after 230 days—the well has verified the quality of Jericho’s acreage.
Jericho’s second well was the Swordspear 15-23N-10W location. This well targeted a second formation within the STACK which called the Osage. The Osage is quite different than the Meramec because it is a conventional reservoir.
Conventional means lower rates of initial production, but also much lower decline rates. This is the kind of production that generates stable cash flows that most junior growth companies don’t have access to.
Jericho’s Swordspear well came on at an excellent production rate of 500 boe/day. Since then production from the well has remained exceptionally strong. After 30 days the well was still doing 450 boe/day.
Just yesterday they said the well has averaged 330 boepd after 160 days. Having the Osage as a low-decline, second formation provides the perfect complement to the big initial production rates of the Meramec.
These 2018 drilling results from Jericho really couldn’t have been better. And while the results have been excellent they really aren’t all that surprising.
Competitors including Alta Mesa, Chaparral, Devon, Continental, Newfield, Exxon Mobil and Staghorn have been drilling excellent wells all around Jericho.
The economics of this acreage are equal to the best in the industry.
Source: Newfield Exploration Presentation
Not surprisingly, leasing activity in the play has increased by 1,800% over last year. . .making STACK acreage more highly coveted. The industry wants this play badly.
We don’t have to look any further than the $5.5 billion that Encana (ECA-NYSE/TSX) just agreed to pay for Newfield Exploration (NFX-NYSE) for proof of that.
So we’ve got:
- Good oil prices
- Great wells
And now for 3. . .a land value underpinning the stock that’s worth 2-5x what the stock is trading for. This kind of valuation is really only relevant on a buyout, but it’s the kind of valuation that lets me sleep at night.
Jericho and Partners’ 16,000 Net Core Acres in the STACK
Source: Jericho Oil Corporate Presentation
Today Jericho and its partners are sitting on 16,000 net acres of highly coveted STACK acreage. On average, Jericho was able to acquire that land for $2,300 per acre.
What is that land worth today? It isn’t hard to determine.
With companies now rapidly acquiring acreage all around Jericho we have a steady flow of documented arm’s length data points available to do such a calculation.
Documented STACK Transactions
Source: Chaparral Energy
Adjusted for production, STACK acreage has been trading hands at prices ranging from $8,500 to $20,938 per acre.
That is hard, verifiable, data.
This provides us with a range of values, many of which were established when oil prices were much lower than today and when the play was much less proven.
What these data points show us is that acreage today is worth 4 to 10 times what Jericho paid for it. Jericho’s “buy when there is blood in the streets” strategy has allowed the company to make multiples on their investment.
That’s why I’m looking to increase my position in Jericho.
To conclude, I would add a couple soft points. JCO has a smart, deep-pocketed and tightly held shareholder base. These shareholders include unusually heavy hitters like Ed Breen, the CEO of Dow DuPont. It is a shareholder group that screams of credibility and long-term thinking.
These insiders own a full 46% of Jericho’s shares. These people all get paid one way. . .if Jericho’s share price goes up over the long term.
All of this is a recipe for commodity development success. Buy good assets when commodity prices are low, then develop those assets and sell the production when commodity price rise.
Keith Schaefer is editor and publisher of the Oil & Gas Investments Bulletin, which finds, researches and profiles growing oil and gas companies that Schaefer buys himself, so Bulletin subscribers know he has his own money on the line. He identifies oil and gas companies that have high or potentially high growth rates and that are covered by several research analysts. He has a degree in journalism and has worked for several Canadian dailies but has spent over 15 years assisting public resource companies in raising exploration and expansion capital.
Read what other experts are saying about:
Disclosure:
1) Keith Schaefer disclosures are below.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Jericho Oil, a company mentioned in this article.
Keith Schaefer and Oil and Gas Investments Bulletin Disclosures:
DISCLOSURE: I am long Jericho Oil.
Management at Jericho Oil has reviewed and sponsored this story. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.
Charts provided by the author.