Vancouver, British Columbia–(Newsfile Corp. – January 15, 2024) – Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY)(“Riverside” or the “Company”) is proud to outline its 2024 milestones and highlights from the past year. The Company continues to advance its 100% owned portfolio leveraging its proprietary databases, exploration expertise, and on-the-ground knowledge to identify, stake, or acquire high-quality prospects. Riverside has over C$6,000,000 in cash, zero debt, no warrant overhang, and a tight share structure with fewer than 75,000,000 shares outstanding. Positioned with a strong balance sheet, Riverside is well-prepared to capitalize on opportunities in 2024.
Riverside’s President and CEO, John-Mark Staude, stated: “We are in a good position for the New Year with a strong balance sheet, excellent projects and the key transactions that Riverside completed in 2023, setting us up now for an excellent 2024. To our knowledge, Riverside is one of the better positioned companies, compared to our peers, to benefit from a potential incoming general commodities sector upside.”
Our plan is to expand upon the growth of the past year with the following 2024 goals and potentially newsworthy events:
Transaction of mineral assets and value capture from its growing portfolio of exploration assets in Canada (Ontario & British Columbia) including gold (Pichette, Oaks & Elly) and rare earth element projects (Revel).
Sale or farmout transactions with gold and copper assets in Mexico including the Cecilia and Union Projects.
Work towards a new Strategic Alliance with a major base metal producer.
Maximize value from Riverside’s Royalty Portfolio through a targeted marketing/sales process.
2023 Recap:
The Company has experienced a busy year marked by the continued development of high-quality mineral exploration portfolio in Canada, expansion into British Columbia and several high-quality acquisitions. Additionally, in Mexico new consolidations have been pursued to capitalize on market opportunities, positioning Riverside for a robust upcoming year. Some of the key milestones include:
Canada
Ontario
Completed the acquisition of the Duc Project, strategically located in Ontario’s Porcupine Mining District. This significant land area is recognized for its gold mineralization and is near a former phosphate mine, which offers potential for rare earth elements.
Successfully completed detailed interpretations of advanced helicopter magnetic surveys at the Duc Project utilizing the state-of-the-art SHA Geophysics’ Heli-3G system. These surveys have been instrumental in identifying and developing promising near-surface drill targets. A successful acquisition of the P.A.T. Gold Mine, within the Pichette Project, demonstrating substantial gold potential and a key step in the consolidation and preparation for 2024. To that effect the company is currently progressing a new NI 43-101 for Q1 2024 on the project.
The Pichette Project, now a top priority for Riverside given the high-grade gold results. The project boasts excellent road access and is situated near Canada’s third largest open pit gold producing mine at Greenstone Gold Mine owned by Equinox Gold and Orion.
British Columbia
The generation/acquisition of the Elly Gold Project, in southern British Columbia, has expanded Riverside’s footprint in southwestern British Columbia. The Company has been continuing with its prospecting and integrating databases, laying the groundwork for partnering and potential drilling in 2024.
Acquisition of the Revel Carbonatite Rare Earth Element (REE) Project in British Columbia was a key strategic move to add REE and critical metals to the company portfolio of assets. The Revel area is a key district Riverside now has and will be progressing in 2024 with partners.
Mexico
The Company continued with its ongoing efforts in Mexico by reaching key milestones and preparing for the upcoming fall season through the acquisition of updated drill permits. This crucial development ensures that the properties will maintain their compliance and good standing for a period of up to three years.
On the Ariel Project, we are focusing on porphyry copper, crucial consolidation of land, encouraging copper results, and strides in securing drill permits and transferring titles to Riverside, positioning the Company for potential joint venture opportunities.
Continuing with its acquisition of the Union Mine in Sonora, Mexico, situated in the high-grade Union District, the site has shown promising results, with discoveries of up to 1 ounce of gold and over 30% zinc, highlighting the potential for further expansion in the area.
The Cecilia Project in Sonora, Mexico has a large dome complex which has already yielded significant gold intercepts from previous drilling efforts. Riverside is poised to progress with partners for a potential next phase of drilling in 2024.
Upcoming Events:
Riverside Resources Inc. has received and accepted invitations to present at the Vancouver Round Up conference in late January and will exhibit in early March, at the Prospectors & Developers Association of Canada (PDAC) in Toronto.
About Riverside Resources Inc.:
Riverside is a well-funded exploration company driven by value generation and discovery. The Company has over $6M in cash, no debt, and less than 75M shares outstanding with a strong portfolio of gold-silver and copper assets and royalties in North America. Riverside has extensive experience and knowledge operating in Mexico and Canada and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has properties available for option, with information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
“John-Mark Staude”
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude President, CEO Riverside Resources Inc. info@rivres.com Phone: (778) 327-6671 Fax: (778) 327-6675 Web: www.rivres.com
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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.
We offer herein an investment rationale for gold mining equities that rests primarily on investment fundamentals particular to the mining sector. Speculation on the future course of the gold price takes a back seat. A tailwind from higher metal prices would, of course, be helpful but in our view would only add heft to an already powerful investment case.
1. Extreme Undervaluation
Gold mining stock valuations are the lowest in 25 years. The spread between the gold price and the discount implied to spot based on the market price of the equities is a massive $700+ per ounce. In other words, cash flow from a gold price 65% of the current spot price would return the entire market value of the group based on existing reserves. BMO calculates an average return on capital of 14.4% for mid-capitalization producers and 25.8% for small-cap producers in a semi-liquidation scenario (see Figure A2). We believe investment returns would be substantially greater in a full liquidation scenario, which would assume the elimination of all discretionary capital spending. In essence, the theoretical returns from taking many of the mid- and small-cap producers private would be compelling from the perspective of a corporate raider. The “corporate raider” perspective is of course only a notional concept to illustrate the extreme undervaluation of the sector. The risk typically associated with extreme undervaluation is the amount of time required for the investment thesis to prove out, not loss of capital.
Figure A1. Gold Price Discounted by the Market @ 0% Discount Rate
Source: BMO Capital Markets. Data as of 12/31/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
Figure A2. Return on Capital for Gold Miners
2. Divergence from Gold Price
The average annual gold price has increased over 20% since 2011. The gold price is the single most important fundamental driver of earnings and returns on capital. However, gold stocks have declined over 40% (based on GDX1) since 2011. We have enumerated several reasons for this 60% performance divergence in an earlier commentary, Gold vs. Gold Stocks, An Unresolved Incongruity. In our view, those factors have been excessively discounted. In our opinion, there is near-term potential for a substantial mean reversion trade even assuming no further rise in the gold price.
Figure B. Gold Mining Equities vs. Average Gold Price2
Source: BMO Capital Markets. Data as of 12/31/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
3. 2024 Profitability Set for Sharp Improvement
Profit margins will improve even in a flat gold price environment. Inflation has started to cool off thanks to the Federal Reserve’s (Fed’s) tight money campaign. More importantly, this capital-intensive industry has made significant advances in productivity that will drive margin expansion. BMO Research forecasts a decline in production costs (All In Sustaining Costs or AISC) of 14%, 11% and 25% for large-, mid- and small-cap producers, respectively. These projections are based on BMO’s “bottoms up” analysis of each company’s 2024 outlook. The improvement can be explained by general cost deflation, across-the-board productivity advances and, for smaller producers, the normal post-start-up improvement in recently completed mine construction.
Figure C. Gold Miners: All In Sustaining Costs Estimates
Source: BMO Capital Markets, Bloomberg, FactSet. Included for illustrative purposes only. Past performance is no guarantee of future results.
4. Chronic Underinvestment Sets Up Potential Demand/Supply Squeeze
According to Bloomberg, the reserve life of the top 10 miners has declined 33% in the last 10 years. As noted in #1 above, the gold mining industry is in a quasi-liquidation mode.
Figure D. Gold Reserves by the Top 10 Miners
Source: Bloomberg. Data as of 12/31/2022. Included for illustrative purposes only. Past performance is no guarantee of future results.
5. Understatement of Book Value
According to anecdotal inputs from industry management, the replacement cost of existing capacity is substantially above (50% or more) stated book value. That observation suggests a consistent metal price range of $2,500 to $3,000 would be necessary to sustain the current annual mine production of 3,500 metric tonnes. The response of production to higher gold prices has been non-existent, with little rise since 2018.
Figure E. Annual Gold Mine Production Has Been Relatively Flat
Source: World Gold Council. Data as of 12/31/2022. Included for illustrative purposes only. Past performance is no guarantee of future results.
6. Classic Contrarian Setup
Gold mining equities represent a classic contrarian setup, especially if gold prices continue their steady historic rate of increase. GDX (passive) and active managers have experienced minimal inflows in recent years. In fact, GDX has seen outflows of nearly 17% over the past five years. Peak assets under management for GDX were $18.4 billion in 2020, versus $13 billion at the end of 2023. The market cap of the entire gold mining sector is ~$300 billion, less than the market caps of individual companies like The Home Depot, Costco and Mastercard.
7. Fed Pivots Precede Outsized Performance
Every Fed pivot has been followed by outsized gains in gold mining equities. GDX gains:
Period 5/00-1/08: 400%
Period 1/16-8/16: 238%
Period 3/20-7/20: 208%
The current Fed pivot, telegraphed at the December Federal Open Market Committee (FOMC) meeting, appears related to pressure from U.S. Treasury Secretary Yellen (and the Biden administration) due to election-year politics. In a December 12, 2023, interview, just ahead of the December FOMC meeting, Treasury Secretary Yellen stated, “Of course, as inflation comes down, other things equal, real interest rates tend to rise, which causes a tightening of monetary policy in a sense. So that’s one factor that could weigh in a decision that the Fed makes about the path of interest rates.”
A subtle hint, to be sure, but there is no doubt that the administration views current Fed policy as too restrictive. Could the subsequent Fed pivot amount to a premature declaration of victory over inflation? We must wait and see, but wage settlements, a major component of manufacturing costs, have been rising at an accelerating rate, as shown in Figure F.
Figure F.
Source: Bloomberg Law labor. Data as of Q1 2023. Note: Starting with Q1 2016, averages are based on each contract’s ratification date. Prior to 2016, averages are based on the date each contract was added to Bloomberg Law’s database. Included for illustrative purposes only. Past performance is no guarantee of future results.
Productivity gains notwithstanding, it is not a stretch to suggest that another Fed policy mistake may be in the cards.
8. New Geopolitical Landscape Favors Gold
The emerging geopolitical landscape favors gold and outweighs the traditional inverse relationship of gold to restrictive central bank monetary policy. Central bank buying of gold bullion increased 14% through Q3 2023 versus 2022 and easily exceeded the record level established the previous year. Importantly, official purchases are not sensitive to market prices. Such purchases are integral to a strategy recently formulated by the BRICs (Brazil, Russia, India and China) trading block to recycle trade surpluses through channels other than U.S. Treasuries, which have lost luster as safe, neutral assets. Even though the realignment of geopolitical forces that has become obvious in recent months has been gestating for several years, the actions taken to reduce U.S. dollar exposure are, in our opinion, in their infancy. In December, JPMorgan Chase estimated that 20% of oil is now traded in currencies other than the U.S. dollar. (Luke Gromen, 1/5/2024 Ten Interesting Things We Have Read Recently.)
Figure G. Gold Buying by Central Banks Has Reached All-Time High
Source: State Street Global Advisors, Metals Focus, Refinitiv GFMA, World Gold Council. Data as of 12/31/2022. Included for illustrative purposes only. Past performance is no guarantee of future results.
9. Western Investment Absent from Gold Ascent to Record High
Under 1% of all global AUM is allocated to gold versus 8% at the peak in 1980. Is it not somewhat astonishing that gold is managing to trade at record highs with virtually no participation from Western investors? These same investors helped drive gold to its previous record high in 2011 of $1,921 per ounce by piling into SPDR Gold Trust ETF (GLD)3 and other fledgling gold-backed ETFs whose AUMs grew from infancy in (2004) to over 2,500 tonnes at the peak in 2012. In our view, a gold rush proportional to 2008-2011 could easily double the gold price from current levels. What might drive allocation, as reflected in Figure H, to 2% or even 3%? The 8% of 1980 might be a stretch as there was no Bitcoin, little private equity, AI or other exotic options for portfolio “diversifiers” in those ancient days. However, it doesn’t take much to imagine that these overcrowded trades (the opposite of gold) could become discredited and/or played out, somewhat similar to the dot-com bust of 2000.
Figure H. Gold’s % Share of Global Equity and Bond Securities
Source: BIS, ICE Benchmark Administration, Metals Focus, Refinitiv GFMS, World Bank, World Federation of Exchanges, World Gold Council. Included for illustrative purposes only. Past performance is no guarantee of future results.
10. Catalyst = Higher Gold Prices
Value trades can drag on endlessly without a spark. What is the catalyst to ignite performance in gold mining equities? The simple answer is the continuation of the rising trend of gold prices. The chart below instructs that gold has soundly outpaced the S&P 5004 over the past 25 years, excluding income, and more than kept pace with income included. The gold price is not in nosebleed territory. One must simply expect the 25-year trend to continue for gold stocks to combust spontaneously. The simple explanation for the trend is the long-term devaluation of the US dollar against physical assets.
Figure Ia. Gold vs. S&P 500 for 25 Years Ended 12/31/2023
Cumulative Returns
Gold Bullion 617%
S&P 500 Index 288%
S&P 500 Total Return Index (Dividends Reinvested) 518%
Source: Bloomberg. Data as of 12/31/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
The optically flashy $2,035 per ounce gold price of yesterday’s closing, is well below the peaks set in 2011 and 1980 on an inflation-adjusted basis.
Figure Ib. Inflation Adjusted Gold Price, Adjusted to Today’s Dollar
Source: GuruFocus. Data as of 12/31/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
Taking only the past decade into account, most would agree that the macroeconomic landscape for the U.S. dollar, the principal competitor for gold, is materially worse. Our view that the metal would be more properly priced in the range of $2,500-$3,000 does not seem farfetched.
Our expectation of further upside for gold and related mining stocks is corroborated by technical analysis:
Figures J.
Source: Worth Charting. Data as of 12/31/2022. Included for illustrative purposes only. Past performance is no guarantee of future results.
11. M&A Activity Set to Accelerate
The present-day investment case for gold stocks echoes that for quality industrial stocks of the late 1970s. In essence: solid, cash flow generating companies that in many instances could be worth more in liquidation than as going concerns. Corporate raiders acquired investment stakes to pressure management to “surface” values for the benefit of long-suffering shareholders. We do not think this highly specialized sector will attract corporate raiders. However, we do think impatient shareholders could welcome predatory M&A (mergers and acquisitions). A perfect example is the recently announced takeover of Marathon Gold by Calibre Mining. The related information circular states that as many as 20 counterparties expressed potential interest in acquiring Marathon. We believe that many of the rejected suitors are likely to be actively considering other takeover targets. On this note, we saw yet another opportunistic acquisition of Osino Resources by Dundee Precious Metals near the end of 2023.
The Investment Case: Clear and Compelling
In our opinion, the investment case for gold mining equities is clear and compelling. It is based on considerations of value and circumstances. The unknown element is the requisite patience before investors discover the attraction. In our view, that uncertainty is easily outweighed by the asymmetric proposition of minimal downside offset by outsized upside potential.
1
VanEck Vectors Gold Miners ETF (GDX) tracks the overall performance of companies involved in the gold mining industry.
2
Gold bullion is measured by the Bloomberg GOLDS Comdty Spot Price.
3
The SPDR Gold Shares ETF (GLD) tracks the price of gold bullion in the over-the-counter (OTC) market.
4
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
Important Disclosure
Past performance is no guarantee of future results. You cannot invest directly in an index. Investments, commentary and statements are unique and may not be reflective of investments and commentary in other strategies managed by Sprott Asset Management USA, Inc., Sprott Asset Management LP, Sprott Inc., or any other Sprott entity or affiliate. Opinions expressed in this content are those of the author and may vary widely from opinions of other Sprott affiliated Portfolio Managers or investment professionals.
This content may not be reproduced in any form, or referred to in any other publication, without acknowledgment that it was produced by Sprott Asset Management LP and a reference to sprott.com. The opinions, estimates and projections (“information”) contained within this content are solely those of Sprott Asset Management LP (“SAM LP”) or its affiliates and are subject to change without notice. SAM LP makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, SAM LP and affiliates assume no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. SAM LP and affiliates are not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by SAM LP or its affiliates. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.
The information contained herein does not constitute an offer or solicitation to anyone in the United States or in any other 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.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.
This attractively designed book published by the world’s largest copper mining company describes and illustrates copper’s use and heritage from antiquity to the 21st century, all around the world. Learn how civilizations used copper to make jewelry, ornaments, utensils, weapons, religious objects, money, scientific and musical instruments, machinery and artwork – as well as myriad new uses for copper that are innovating our world today. Click the image to read 65 pages.
The next couple of years were supposed to be a time of plenty for copper, thanks to a series of big new projects starting up around the world. The expectation across most of the industry was for a comfortable surplus before the market tightens again later this decade, when surging demand for electric vehicles and renewable energy infrastructure is expected to collide with a lack of new mines.
Instead, the mining industry has highlighted how vulnerable supply can be, whether due to political and social opposition, the difficulty of developing new operations or simply the day-to-day challenge of pulling rocks up from deep beneath the earth.
In the past two weeks, one of the world’s biggest copper mines was ordered to close in the face of fierce public protests, while a slew of operational setbacks has forced one of the leading miners to slash its production forecasts.
The sudden removal of around 600,000 tons of expected supply would move the market from a large expected surplus into balance, or even a deficit, analysts say. And it’s also a major warning for the future: copper is an essential metal needed to decarbonize the global economy, which means mining companies will play a key role in facilitating the shift to green energy.
While the price reaction to the supply disruptions has so far been muted — amidst ongoing worries about China’s property sector — any sign of demand recovery would hit a tight market.
Last week, Panama’s government formally ordered First Quantum Minerals Ltd. to end all operations at its US$10-billion copper mine in the country. The order followed weeks of protests and political wrangling that came to a head when the country’s Supreme Court invalidated the law that underpinned its mining licence. The giant Cobre Panama mine can produce about 400,000 tons of copper a year.
As the market was digesting the news that one of the biggest mines was closing (at least for now), Anglo American PLC delivered its own production bombshell on Dec. 8 by announcing it will slash production from its flagship copper business in South America.
Problems at its platinum and iron ore mines in South Africa were well publicized, but the copper cuts caught investors off guard, sending the company’s shares plunging by 19 per cent. Anglo has reduced its copper production target for next year by about 200,000 tons, essentially removing the equivalent of a large copper mine from global supply. Production will fall even further in 2025.
BMO Capital Markets Corp., which was forecasting a large surplus of refined copper next year, now sees a small deficit instead. Goldman Sachs Group Inc. — which has been much more bullish on copper and already forecast a deficit of refined metal for 2024, now sees that shortfall ballooning to more than half-a-million tons. Jefferies Financial Group Inc. also now expects a major deficit next year.
“The supply cuts reinforce our view that the copper market is entering a period of much clearer tightening,” Goldman analysts including Nicholas Snowdon said.
The expectation for a looser market in the near term has weighed on prices for much of this year, leaving copper drifting sideways. In early October, the International Copper Study Group said it expects a surplus of 467,000 tons next year — its largest forecast for a glut since 2014.
Live copper inventories on the London Metal Exchange had surged since mid-year to a two-year high, but have now retreated for three straight weeks.
“Disruptions have significantly increased, and a market deficit is now increasingly likely,” Jefferies said. “We could be at the foothills of the next copper cycle.”
Vancouver, British Columbia–(Newsfile Corp. – January 10, 2024) – Emperor Metals Inc. (CSE: AUOZ) (OTCQB: EMAUF) (FSE: 9NH) (“Emperor“) is pleased to announce additional assay results from the summer 2023 drilling campaign at the Duquesne West Gold Project. Using Artificial Intelligence (A.I.) to model the deposit and plan our drill program, a total of 14 diamond drillholes have been completed which represents 8,579meters.
Full results for DQ23-02 extension and DQ23-07 have been released from SGS Laboratories (see Table 1 intercept highlights). These results indicate the potential for resource expansion within and outside the open pit concept. Emperor is targeting a multi-million-ounce resource in a combination of conceptual open pit and underground mining scenarios.
Highlights
DQ23-07 intersects 15.7 metres (m) of 0.8 grams per tonne (g/t) gold (Au) (including 7.0 m of 1.08 g/t Au) and 7.2 m of 2.8 g/t Au within the open pit concept (see Figure 1).
Drilling adds incremental ounces outside known high-grade areas in the open pit scenario. These intercepts will reduce the stripping ratio; due to gold endowment in areas that were overlooked and historically unsampled.
DQ23-02 intersected 3.65 m of 6.25 g/t Au (including 1.2 m of 12.2 g/t Au). Expanded mineralization in footwall zone.
CEO John Florek commented:
” Emperor is the first company to sample all intervals in our drilling to evaluate the additional potential for bulk tonnage open-pit mining at Duquesne West. We’re excited to see positive assay results for rocks within a conceptual open-pit domain that were not sampled by previous explorers who lacked an open-pit strategy on this property and did not examine the additional lower-grade bulk tonnage opportunity.
Historical sampling focused on the extensive underground potential for high-grade gold, so only 30% of the core from historical drilling was sampled by previous operators. Our discovery of these lower grade bulk tonnage ounces within our open-pit conceptual model is very significant for reducing strip ratio and for improving overall economics in a combination type open-pit and under-ground mining scenario.
Our vision to develop a multimillion-ounce deposit with multiple mining scenarios on the Duquesne West property continues to grow. Our use of A.I has enabled us to quickly process extensive historical data and integrate it with new information to model exploration targets with a high degree of confidence and success. The proximity to multiple mills and infrastructure in a Tier 1 mining district makes the production potential of this project highly valuable within the global junior mining space. The current price of gold certainly helps promote this vision.”
Image 1: Figure showing DQ23-07 intercept within the conceptual open pit model. Broad scale mineralization confirming incremental grade outside existing high-grade lenses in areas previously unsampled by historical workers. These intercepts may add ounces to the deposit.
DQ23-02 was a step-out hole and originally drilled to test the eastern margin of a mineralized zone, with an intersection of 10.65 m of 3.97 g/t Au (see press release dated September 12, 2023) that is expected to extend the footprint of mineralization. The grades and thickness intersected were as expected. However, the hole was extended due to assays identifying a broad thickness of mineralization at the bottom of the hole; 25.0 m of 1.69 g/t Au (see press release dated September 12, 2023). This extension of DQ23-02 tested further into the footwall because of indications of mineralization by Emperor’s AI modeling; this extension encountered gold values and expanded the mineralized footprint of the deposit (3.65 m of 6.25 g/t Au); see Figure 2
DQ23-07 was designed to intersect mineralization in both the near-surface ultimate pit scenario and the underground mining scenario. Intersection within the open pit scenario contained 15.7 Metres of 0.8 g/t Au (including 7.0 m of 1.80 g/t Au) and 7.2 m of 2.8 g/t Au; additional broad scale mineralization was seen as well (21.5 m of 0.40 g/t Au). Mineralization deeper in the footwall and within the underground mining scenario intercepted a footwall zone containing 2.0 m of 2.42 g/t Au.
The open pit concept in Figure 1 shows an ultimate pit with a depth extent of 400 meters; the footprint is 1.8 km by 0.8 km. Initial exploration in 2024 will strategically focus on the area of the phase 1 pit design. This will allow us to determine the potential economics as we progress through the phases having the necessary assay results for resource evaluation and eventually for economic evaluations. Currently, Emperor is also sampling near-surface core from the historical core library that was not assayed by previous explorers. Up to 70% of this core has not been assayed. So far, over 3,000 meters have been sampled and will be sent to the laboratory for analysis.
In General, mineralization is within and proximal to a fertile, gold endowed, quartz-feldspar porphyry intrusion (QFP), which appears to enrich the greenstone belt along this structural corridor that hosts the Duquesne West Gold Deposit. Apophyses of this intrusion are more endowed and are close to the most highly replacement type mineralization. Competency contrasts between rock types within this mineralized corridor are good sites for additional mineralization.
High and low-grade mineralization are important in Open Pit Mining:
Highest grade intercepts are within mafic (+/- ultramafic) breccia zone carapaces mantling the QFPs or highly deformed replacement style structural zones (in the mafic volcanics) that are highly strained and completely replaced by ankerite, sericite, and quartz.
The broadest low-grade zones are located within the QFPs.
Some lower-grade broad zones mantle higher-grade intercepts in the mafic volcanics. This usually occurs at the margin between mafic volcanics and QFP (low grade in both units surrounding a high-grade intercept.)
This mineralizing system is significantly large in length, width and depth. These broad zones will aid in lowering strip ratios when Emperor has enough data to support a new resource estimate for both open pit and underground conceptual mining scenarios.
Approximately 75% of the assays have been returned from the laboratory, Emperor is awaiting additional assays results.
Samples were sent to SGS Laboratories in Lakefield, ON.
Image 2: DQ23-02 intercept of 3.65 m of 6.25 g/t Au. Intercept expands footprint of the minable stope model in footwall zone; potential adding ounces to the deposit.
The Quality Assurance and Quality Control (QAQC) was conducted by Technominex, a geological contractor hired by Emperor Metals, which adheres to CIM Best Practices Guidelines for exploration related activities conducted at its facility in Rouyn Noranda, Quebec. The QA/QC procedures are overseen by a Qualified Person on site.
Emperor Metals QA/QC protocols are maintained through the insertion of certified reference material (standards), blanks and lab duplicates within the sample stream totaling approximately one QA/QC sample per 7 samples. Drill core is cut in-half with a diamond saw, with one-half placed in sealed bags with appropriate tags and shipped to the SGS Lakefield laboratory and the other half retained on site in the original core box. A dispatch list consists of 88 or 176 samples along with their corresponding QA/QC samples for a single batch. This allows complete batches (88 samples) for fire assay. A file for sample tracking records tags used and weights of sample bags shipped to the SGS Lakefield. Shipment is done by Manitoulin Transport and coordination by Technominex staff in Rouyn-Noranda.
The third-party laboratory, SGS prep laboratory in Lakefield Ontario, processes the shipment of samples using standard sample preparation (code PRP91) and produces pulps from the specified samples. The pulps are then sent off to SGS Burnaby for analysis. Chain of custody is maintained from the drill to the submittal into the laboratory preparation facility all the way to analysis at the SGS Burnaby B.C. laboratory.
Analytical testing is performed by SGS laboratories in Burnaby, British Columbia. The entire sample is crushed to 75% passing 2mm, with a split of 500g pulverized to 85% passing 75 microns. Samples are then analyzed using Au – ore grade 50g Fire Assay, ICP-AES with reporting limits of 0.01 -100 part per million (ppm). High grade gold analysis based on the presence of visible gold or a fire assay result exceeding 100 ppm, are analyzed by Au – metallic screening, 1kg screened to 106μm, 50g fire assay, gravimetric, AAS or ICP-AES of entire plus fraction and duplicate analysis of minus fraction. Reporting limit 0.01ppm.
About the Duquesne West Gold Project
The Duquesne West Gold Property is located 32 km northwest of the city of Rouyn-Noranda and 10 km east of the town of Duparquet. The property lies within the historic Duparquet gold mining camp in the southern portion of the Abitibi Greenstone Belt in the Superior Province.
Under an Option Agreement, Emperor agreed to acquire a one hundred percent (100%) interest in a mineral claim package comprising 38 claims covering approximately 1,389 ha, located in the Duparquet Township of Quebec (the “Duquesne West Property”) from Duparquet Assets Ltd., a 50% owned subsidiary of Globex Mining Enterprises Inc. (GMX-TSX). For further information on the Duquesne West Property and Option Agreement, see Emperor’s press release dated October 12, 2022, available on SEDAR.
The Property hosts a historical inferred mineral resource estimate of 727,000 ounces of gold at a grade of 5.42 g/t Au.1,2 The mineral resource estimate predates modern CIM guidelines and a Qualified Person on behalf of Emperor has not reviewed or verified the mineral resource estimate, therefore it is considered historical in nature and is reported solely to provide an indication of the magnitude of mineralization that could be present on the property. The gold system remains open for resource identification and expansion.
Reinterpretation of the existing geological model was created using Artificial Intelligence (A.I) and Machine Learning. This model shows the opportunity for additional discovery of ounces by revealing gold trends unknown to previous workers and the potential to expand the resource along significant gold-endowed structural zones.
Multiple scenarios exist to expand additional resources which include:
Underground High-Grade Gold
Open Pit Bulk Tonnage Gold
Underground Bulk Tonnage Gold.
1 Watts, Griffis, and McOuat Consulting Geologists and Engineers, Oct 20, 2011, Technical Report and Mineral Resource Estimate Update for the Duquesne-Ottoman Property, Quebec, Canada for XMet Inc.
2 Power-Fardy and Breede, 2011. The Mineral Resource Estimate (MRE) constructed in 2011 is considered historical in nature as it was constructed prior to the most recent Canadian Institute of Mining and Metallurgy (CIM) standards (2014) and guidelines (2019) for mineral resources. In addition, the economic factors used to demonstrate reasonable prospects of eventual economic extraction for the MRE have changed since 2011. A qualified person has not done sufficient work to consider the MRE as a current MRE. Emperor is not treating the historical MRE as a current mineral resource. The reader is cautioned not to treat it, or any part of it, as a current mineral resource.
Table of Significant Drilling Intercepts
Hole No.
From (m)
To (m)
Interval (m)
Au (g/t Au)
1DQ23-02
909.35
910.5
1.15
12.17
910.5
913
2.5
3.52
Wt. Avg.
3.65
6.25
Including:
1.15
12.17
1DQ23-07
54
55
1
0.76
55
56
1
0.17
56
57
1
0.02
57
58
1
0.87
58.0
58.8
0.75
0.35
58.75
59.3
0.55
0.84
59.3
60
0.7
1.23
60
61
1
0.75
61
62
1
1.17
62
63
1
0.48
63
64
1
2.16
64
65
1
0.57
65
66
1
1.09
66
67
1
1.05
67
68
1
1.01
68
69
1
0.55
69
69.7
0.7
1.00
Wt. Avg.
15.7
0.82
Including:
7
1.08
228.1
229.1
1
3.33
229.1
230.1
1
6.33
230.1
231.2
1.1
5.70
231.2
232.4
1.2
2.74
232.4
233.85
1.45
0.26
233.85
235.3
1.45
0.38
Wt. Avg.
7.2
2.80
Including:
4.3
4.47
Including:
2.1
6.00
343.5
344.5
1
0.78
344.5
346
1.5
0.5
346
347
1
0.78
347
348
1
0.18
348
349
1
0.13
349
350
1
0.39
350
351
1
0.47
351
352
1
0.36
352
353
1
0.19
353
354
1
0.02
354
355
1
0.23
355
356
1
0.32
356
357
1
0.09
357
358
1
0.01
358
359
1
0.03
359
360
1
0.13
360
361
1
0.05
361
362
1
0.04
362
363
1
2.93
363
364
1
0.005
364
365
1
0.77
Wt. Avg.
21.5
0.40
563.6
564.6
1
3.35
564.6
565.6
1
1.48
Wt. Avg.
2
2.42
1Host Structures are interpreted to be steeply dipping and true widths are generally estimated to 90%.
QP Disclosure
The technical content for the Duquesne West Project in this news release has been reviewed and approved by John Florek, M.Sc., P.Geol., a Qualified Person pursuant to CIM guidelines.
About Emperor Metals Inc.
Emperor Metals Inc. is an innovative Canadian mineral exploration company focused on developing high-quality gold properties situated in the Canadian Shield. For more information, please refer to SEDAR (www.sedarplus.ca), under the Company’s profile.
ON BEHALF OF THE BOARD OF DIRECTORS
s/ “John Florek” John Florek, M.Sc., P.Geol President, CEO and Director Emperor Metals Inc.
CERTAIN STATEMENTS MADE AND INFORMATION CONTAINED HEREIN MAY CONSTITUTE “FORWARD-LOOKING INFORMATION” AND “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF APPLICABLE CANADIAN AND UNITED STATES SECURITIES LEGISLATION. THESE STATEMENTS AND INFORMATION ARE BASED ON FACTS CURRENTLY AVAILABLE TO THE COMPANY AND THERE IS NO ASSURANCE THAT ACTUAL RESULTS WILL MEET MANAGEMENT’S EXPECTATIONS. FORWARD-LOOKING STATEMENTS AND INFORMATION MAY BE IDENTIFIED BY SUCH TERMS AS “ANTICIPATES”, “BELIEVES”, “TARGETS”, “ESTIMATES”, “PLANS”, “EXPECTS”, “MAY”, “WILL”, “COULD” OR “WOULD”.
FORWARD-LOOKING STATEMENTS AND INFORMATION CONTAINED HEREIN ARE BASED ON CERTAIN FACTORS AND ASSUMPTIONS REGARDING, AMONG OTHER THINGS, THE ESTIMATION OF MINERAL RESOURCES AND RESERVES, THE REALIZATION OF RESOURCE AND RESERVE ESTIMATES, METAL PRICES, TAXATION, THE ESTIMATION, TIMING AND AMOUNT OF FUTURE EXPLORATION AND DEVELOPMENT, CAPITAL AND OPERATING COSTS, THE AVAILABILITY OF FINANCING, THE RECEIPT OF REGULATORY APPROVALS, ENVIRONMENTAL RISKS, TITLE DISPUTES AND OTHER MATTERS. WHILE THE COMPANY CONSIDERS ITS ASSUMPTIONS TO BE REASONABLE AS OF THE DATE HEREOF, FORWARD-LOOKING STATEMENTS AND INFORMATION ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON SUCH STATEMENTS AS ACTUAL EVENTS AND RESULTS MAY DIFFER MATERIALLY FROM THOSE DESCRIBED HEREIN. THE COMPANY DOES NOT UNDERTAKE TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR INFORMATION EXCEPT AS MAY BE REQUIRED BY APPLICABLE SECURITIES LAWS.
KELOWNA, BC / ACCESSWIRE / January 10, 2024 / Diamcor Mining Inc. (TSXV.DMI)(OTCQB:DMIFF)(FRA:DC3A), (“Diamcor” or the “Company”), a well-established Canadian diamond mining company with a proven history in the mining, exploration, and sale of rough diamonds is pleased to provide a brief overview of the significant events which shaped the diamond industry in 2023, their implications for the sector, and the actions taken to allow the industry to move forward in 2024 with a sense of optimism. Additionally, we are pleased to provide an overview of the Company’s main operational focus for the coming year.
2023 Diamond Industry Overview The year 2023 proved to be a year of adaptation and strategic realignment for the diamond industry as the world continued to emerge from the global COVID-19 pandemic. The significant events which shaped the year included:
Changes in consumer spending habits and their allocation of funds as countries began to open up and the world entered a post-COVID 19 environment.
The continued purchasing of rough diamonds at the previously elevated levels of 2022 by many in the industry despite changes in consumer spending, resulting in the short-term creation of excess rough diamond inventories and downward pressure on pricing.
Significant reductions of new rough diamond sales by the world’s largest producers in the second half of 2023 to aid in rebalancing the above excess inventories and support price recovery.
The decision by the world’s largest cutting and polishing country, India, to temporarily suspend the import of rough diamonds from October 15, 2023 to December 15, 2023.
Continued geopolitical concerns surrounding the ongoing Russia/Ukraine conflict and recent Israeli-Palestinian conflict.
Economic uncertainties which continued in the industry’s most important market of the USA, as well as slower than expected post-COVID-19 economic recovery in China.
The initial G7 sanctions on rough diamonds originating in Russia proved largely ineffective throughout the year, however several revisions by the G7 to increase the effectiveness of these sanctions came into effect on January 1, 2024.
Additional sanctions on rough diamonds originating in Russia were also announced by the European Union on January 3, 2024.
The industry demonstrated its ability to implement proactive changes in 2023 to strengthen itself for 2024, and the Company reaffirms its belief in the unique value proposition of its Krone-Endora at Venetia project given its ability to provide non-conflict natural rough diamonds to the world market moving forward. Unlike their lab-grown counterparts, natural diamonds are treasured for their rarity, provenance, and the timeless allure they hold, and with limited supplies of natural diamonds remaining, the revised sanctions on Russia (~30% of annual global production), many mines reaching the end of their lives, the general sentiment in the industry is that yearly production levels are expected to continue to drop in the years to come. The adjustments made by the industry in 2023 appear to have been effective, with price recoveries in various categories becoming apparent later in the year. The Company believes this trend of increasing prices will continue into 2024 and moving forward, with the level of increases ultimately being driven by combined elements such as: consumer spending, increased shortages due to revised sanctions on Russia, potential reductions in yearly production from existing mines, and increased demand due to the recovery and growth of emerging markets such as China and India.
2024 Operational Focus After successfully navigating its way through various complex global and industry issues of recent years, the Company sees 2024 as a year of significant opportunity in which it can return its primary focus back to the advancement and growth of its Krone-Endora at Venetia project (the “Project”). The Project has always presented a compelling opportunity given its direct relationship with De Beers’ Venetia diamond mine, which is widely accepted as one of the most prolific diamond mines in the world. The Company’s primary areas of focus for 2024 will be:
The continuation of trial-mining exercises and optimization of operational efficiencies, with ancillary diamond recoveries and sales revenue which will assist in supporting the advancement of the Project’s recommended work programs and continued advancement.
The concurrent advancement of additional bulk sampling on key areas of interest within the remaining 85% of the property to determine the potential extent and location of the known displacement of material from Venetia into these areas.
The finalization of planned additions to the Project’s processing plant and final recovery systems, as well as additional heavy equipment assets to support significant increases in processing volumes and the potential for increased ancillary revenues while reducing operating costs at the Project for the long-term.
The continued identification and evaluation of opportunities which demonstrate the potential for additional near-term production of natural gem quality rough diamonds from non-conflict areas to support the Company’s future growth and shareholder value.
The Company has successfully advanced the Project from its inception into the fully permitted Project with significant infrastructure and the growth potential it represents today. We believe with the recent events of the past few years now largely behind us, we are well-positioned in 2024 to now take advantage of the compelling opportunity that companies such as Diamcor have with the ability to provide gem quality natural rough diamonds from non-conflict areas moving forward.
Results of the Annual General Meeting The Company also announces that shareholders passed each of the resolutions described in the Company’s proxy materials by the required majority of voting at the Company’s Annual General Meeting (the “AGM”) held on December 20, 2023.
The total number of votes cast for each resolution is set out in the table below.
MOTIONS
NUMBER OF SHARES
PERCENTAGE OF VOTES CAST
FOR
AGAINST
WITHHELD/ ABSTAIN
SPOILED
NON VOTE
FOR
AGAINST
WITHHELD/ ABSTAIN
Number of Directors
70,372,338
1,503,286
0
0
0
97.91%
2.09%
0.00%
Dean H. Taylor
60,540,849
0
198,100
0
11,136,675
99.67%
0.00%
0.33%
Darren Vucurevich
60,498,630
0
240,319
0
11,136,675
99.60%
0.00%
0.40%
Sheldon Nelson
60,716,049
0
22,900
0
11,136,675
99.96%
0.00%
0.04%
Dr. Stephen Haggerty
60,716,349
0
22,600
0
11,136,675
99.96%
0.00%
0.04%
Appointment of Auditors
71,875,624
0
0
0
0
100.0%
0.00%
0.00%
TOTAL SHAREHOLDERS VOTED BY PROXY: 56
TOTAL SHARES ISSUED & OUTSTANDING: 128,512,937
TOTAL SHARES VOTED: 71,875,624
TOTAL % OF SHARES VOTED: 55.93%
About Diamcor Mining Inc. Diamcor Mining Inc. is a fully reporting publicly traded Canadian diamond mining company with a well-established proven history in the mining, exploration, and sale of rough diamonds. With a long-term strategic alliance with world famous Tiffany & Co, the Company’s primary focus is on the mining and development of its Krone-Endora at Venetia Project which is co-located and directly adjacent to De Beers’ Venetia Diamond Mine in South Africa. The Venetia diamond mine is recognized as one of the world’s top diamond-producing mines, and the deposits which occur on Krone-Endora have been identified as being the result of shift and subsequent erosion of an estimated 50M tonnes of material from the higher grounds of Venetia to the lower surrounding areas in the direction of Krone and Endora. The Company focuses on the acquisition and development of mid-tier projects with near-term production capabilities and growth potential and uses unique approaches to mining that involves the use of advanced technology and techniques to extract diamonds in a safe, efficient, and environmentally responsible manner. The Company has a strong commitment to social responsibility, including supporting local communities and protecting the environment.
About the Tiffany & Co. Alliance The Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of world-famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at market prices. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with financing in an effort to advance the Project as quickly as possible. Tiffany & Co. is now owned by Moet Hennessy Louis Vuitton SE (LVMH), a publicly traded company which is listed on the Paris Stock Exchange (Euronext) under the symbol LVMH and on the OTC under the symbol LVMHF. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.
About the Krone-Endora at Venetia Project Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ flagship Venetia Diamond Mine in South Africa. The Company subsequently announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project’s total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade “Alluvial” basal deposit which is covered by a lower-grade upper “Eluvial” deposit. These deposits are proposed to be the result of the direct-shift (in respect to the “Eluvial” deposit) and erosion (in respect to the “Alluvial” deposit) of an estimated 1,000 vertical meters of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine, which is widely recognised as one of the top producing diamond mines in the world.
Qualified Person Statement: Mr. James P. Hawkins (B.Sc., P.Geo.), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor’s exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). Mr. Hawkins has reviewed this press release and approved of its contents.
On behalf of the Board of Directors: Mr. Dean H. Taylor President & CEO Diamcor Mining Inc. www.diamcormining.com
For further information contact: Mr. Dean H. Taylor Diamcor Mining Inc DeanT@Diamcor.com +1 250 862-3212
For Investor Relations contact: Mr. Rich Matthews Integrous Communications rmatthews@integcom.us +1 (604) 355-7179 +1 (647) 258-3310
This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
WE SEEK SAFE HARBOUR Neither 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.
VANCOUVER, BC / ACCESSWIRE / January 10, 2024 / Metallic Minerals Corp. (TSXV:MMG)(OTCQB:MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce results from its fall 2023 exploration drilling campaign at the Company’s 100%-owned, 171 square kilometer (“km2″) Keno Silver project, adjacent to Hecla Mining (“Hecla”) in the high-grade Keno Hill silver district of Canada’s Yukon Territory. The 2023 exploration program included 1,112 meters (“m”) in four diamond drill holes focused on expansion of the Formo target in the West Keno area, which is on trend with the 100 million-ounce (“Moz”) historic Hector-Calumet mine controlled by Hecla.
Drill hole FOR23-03 represents one of the best intercepts to date for the Keno Silver project, returning grades of 256 grams per tonne (g/t) silver equivalent recovered (“Ag Eq”) over 46 m. This is also the deepest intercept to date on the Formo vein structure (only 275 m vertically from surface) and mineralization remains fully open down dip and along strike. Formo is anticipated to be one of the highest grade and largest contributors to the forthcoming inaugural NI-43-101 mineral resource estimate for the Keno Silver project, currently nearing completion by SGS Geological Services.
2023 West Keno Exploration Highlights
High-grade silver (“Ag”), lead (“Pb”), zinc, (“Zn”) and significant gold (“Au”) mineralization was encountered in all four 2023 drill holes (See Table 1) which will contribute to the pending NI 43-101 Mineral Resource Estimate for the project.
Both high-grade Ag-Au-Pb-Zn vein-style mineralization and broader zones of bulk tonnage Ag-Au-Pb-Zn mineralization comprised of high-grade vein intervals and associated stringers and stockwork veining were encountered.
FOR23-03 returned 256.8 g/t Ag Eq (99.1 g/t Ag, 0.52 g/t Au, 0.65% Pb, 2.62% Zn) over 46.05 m with multiple internal higher-grade zones including, 3.3 m of 1,413.45 g/t Ag Eq (562.4 g/t Ag, 0.20 g/t Au, 2.35% Pb and 20.3% Zn). The bulk tonnage interval of this hole represents one of the highest gram-meter (g/t Ag Eq x interval thickness) intervals on the Keno Silver project to date, and extended mineralization by 140 m from the nearest 2022 and historic drill holes.
FOR23-04, a large step-out hole, drilled nearly 250 m west of the nearest Formo vein drilling, returned four separate silver-dominant vein structures of considerable width providing additional confirmation of the potential for on-strike expansion of the Formo target.
The Formo target remains open to further expansion, down-dip and on-trend, and shows potential for new discoveries within the Formo property footprint.
Metallic Minerals President, Scott Petsel, stated, “The Formo target is an exciting, advanced exploration stage “resource-ready” target with significant room to grow featuring both high-grade and bulk mineable widths that make it amenable to lower-cost mining methods. The Formo target is ideally located near infrastructure as it is adjacent to the Silver Trail highway (Highway 11) and power lines that feed the central Keno Hill mill. It also directly adjoins Hecla’s Keno Hill property, where Hecla is actively mining the nearby Bermingham mine. We are excited to be able to include these new drill results in our upcoming inaugural resource for the Keno Silver project as these results at Formo continue to demonstrate our ability to build a significant resource base for the project. The resource estimate is expected to be complete in Q1 2024.”
“In addition, the Company looks forward to meeting with interested investors at the upcoming Vancouver Resource Investment Conference, AMEBC Mineral Roundup and Prospectors and Developers annual conferences where Metallic Minerals has been invited to display drill core from its 2023 exploration programs at La Plata and Keno Silver. We anticipate reporting additional results from the Keno Silver project and La Plata projects over the next few weeks.”
Upcoming Events
Vancouver Resource Investment Conference (VRIC) Metallic Minerals and fellow Metallic Group members, Granite Creek Copper and Stillwater Critical Minerals, in Booth #112 at the 2024 VRIC event, January 21 and 22, 2024. For more information click here.
AMEBC Mineral Roundup Core Shack Metallic Minerals will be displaying core from the 2023 drill season at the upcoming AMEBC Mineral Roundup event held in Vancouver, BC January 22 to 25, 2024. For more information click here.
Prospectors and Developers Association of Canada Annual Convention (PDAC) Metallic Minerals will be displaying core from the 2023 drill season at the La Plata project during the PDAC convention held in Toronto, March 3 to 6, 2024. For more information click here.
Table 1 – Highlights of 2023 Drill Results from the West Keno – Formo Target Area
DDH Hole ID
From (m)
To (m)
Length (M)
Recovered Ag Eq (g/t)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
FOR23-001
148.74
149.43
0.69
499.23
3.6
6.20
0.00
0.01
and
196.95
215
18.05
234.45
121.4
0.05
1.22
2.06
including
196.95
198.9
1.95
513.39
300.3
0.07
2.71
3.74
also incl
208.4
214
5.6
478.25
241.0
0.10
2.41
4.43
with
208.4
211.2
2.8
687.57
367.9
0.18
4.02
5.37
FOR23-002
172.3
173.35
1.05
67.04
3.5
0.79
0.01
0.01
and
218
221
3
131.42
51.9
0.38
0.35
1.07
incl
218.75
219.75
1
277.81
137.0
0.00
0.96
3.08
FOR23-003
239.95
286
46.05
256.82
99.1
0.52
0.65
2.62
including
239.35
263.65
23.7
462.37
176.0
1.0
1.13
4.67
with
239.35
245.5
5.5
406.57
46.6
4.07
0.49
0.60
and with
255.8
263.65
7.85
899.27
392.4
0.13
2.06
11.68
including
260.35
263.65
3.3
1,413.45
562.4
0.20
2.35
20.30
with
260.75
261.5
0.75
1,411.76
994.0
0.03
3.01
7.36
and with
262.05
263.65
1.6
1,769.44
416.0
0.39
2.64
32.32
and
284
286
2
302.55
116.5
0.03
1.07
4.07
FOR23-004
122
124.46
2.46
76.62
43.7
0.11
0.33
0.43
and
153.5
154.1
0.6
284.52
154.0
0.09
1.67
2.14
and
177.5
183
5.5
72.95
61.2
0.00
0.28
0.18
including
179
180.75
1.76
144.67
130.0
0.00
0.46
0.21
and
300.3
301
0.7
83.26
5.6
0.97
0.01
0.00
Notes to reported values:
Ag equivalent is presented for comparative purposes using conservative long-term metal prices (all USD): $22.0/oz silver (Ag), $1,850/oz gold (Au), $1.00/lb lead (Pb), $1.40/lb zinc (Zn).
Recovered Silver Equivalent in Table 1 is determined as follows: Ag Eq g/t = [Ag g/t x recovery] + [Au g/t x recovery x Au price/ Ag price] + [Pb % x 10,000 x recovery x Pb price / Ag price] + [Zn% x 10,000 x recovery x Zn price / Ag price].
In the above calculations: 1% = 10,000 ppm = 10,000 g/t.
The following recoveries have been assumed for purposes of the above equivalent calculations: 95% for precious metals (Ag/Au) and 90% for all other listed metals, based on recoveries at similar nearby operations.
Intervals are reported as measured drill intersect lengths and do not represent true width.
Figure 1. Keno Silver District Geology and Deposits
West Keno and the Formo Target Area The Western Keno Hill district is host to the largest historic production and current resources in the prolific Keno Hill silver district. The Formo target is located at the intersection of a north-easterly structural zone extending from the Hector-Calumet mine, which was the largest producer in the district producing nearly 100 million ounces of silver and the Elsa structural trend, which was the second largest silver producer in the district (see Figure 2).
The Formo property, which includes the historic Formo Mine, was acquired by Metallic Minerals in 2017. The historic Formo mine produced high-grade silver at various times since the 1930s from high-grade vein structures that graded over 1,000 g/t silver1. Significant underground exploration drifts were developed in the 1950s with most of the historic production from an open pit located alongside of the Silver Trail highway between the Elsa townsite and Keno City and last mined in the 1980s.
The primary Formo vein structure is exposed at surface in an open cut. Multiple veins have been encountered in the target area that demonstrate an association with Triassic greenstones in the Earn group schist, similar to the Sadie Ladue deposit which produced 12.7 Moz silver at a grade of 1,620 g/t Ag1. In addition to the mineralization at the known Formo target, two new surface targets have been identified through soil and rock sampling along the same structural corridors that show potential to host high-grade and bulk tonnage Keno-style Ag-Au-Pb-Zn veins on the Formo property (Figure 2).
Since 2020, Metallic Minerals has drilled 26 holes (4,419 m) at the Formo target building on the six core holes and 54 percussion holes drilled by previous owners between 1980 and 1981. The Formo target is open to significant expansion down dip and along trend with several newly identified targets for drill testing (Figure 2 and 3 below).
Figure 2 – West Keno and Formo Target Plan Map
Figure 3 – Formo Target Cross Section (Looking East)
Pending 43-101 Mineral Resource Estimate for Keno Silver Project The upcoming inaugural independent 43-101 mineral resource estimate is focused on four initial deposits across the Keno Silver project, including: Formo, Caribou, Fox and Homestake. These four deposits are the most advanced of over 40 identified target areas, each of which is characterized by a kilometric scale Ag in soil anomaly, exposed outcropping high-grade veins, and varying levels of exploration activity or historic production. Metallic Minerals has completed 165 drill holes totalling 18,983 m of combined reverse circulation and diamond core drilling at the Keno Silver project since 2017 on a total of 11 targets, all of which have returned encouraging results. The four most advanced “resource-ready” targets will be part of the upcoming mineral resource estimate being completed by SGS Geological Services and include:
Formo Target – In the West Keno District, it demonstrates potential for lower-cost bulk tonnage mining or high-grade selective methods with drill highlights including:
Hole FOR22-04 – 20.87 m @ 220.5 g/t Ag Eq (144.6 g/t Ag, 0.70% Pb, 1.59% Zn), and 1.63 m @ 1,487.19 g/t Ag Eq (1,049 g/t Ag, 4.21% Pb, 9.45% Zn)
Hole FOR21-05 – 19.8 m @ 216.26 g/t Ag Eq (70 g/t Ag, 0.41 g/t Au, 0.30% Pb, 2.07% Zn) and 0.7 m @ 1,405 g/t Ag Eq (421.0 g/t Ag, 0.15 g/t Au, 1.53% Pb, 24.2% Zn)
Hole FOR20-003 – 3.0 m @ 2,954.52 g/t Ag (1,568 g/t Ag, 29.45% Pb, 1.35% Zn)
Caribou Target – In the Central Keno target area the Caribou target historically produced very high-grade material from a shallow surface pit grading more than 6,000 g/t silver.
Fox Target – Discovered by Metallic Minerals in 2020 in the East Keno target area, the Fox target is characterized as a newly recognized bulk tonnage style of mineralization with shallow-dipping sheeted vein sets up to 177 m in width. Drilling since 2020, has defined a bulk-tonnage mineralized block over 300 m along strike and 150 m down-dip from surface which is open in all directions.
Homestake Target – A historic producer, the Homestake target in the Central Keno area is fractally spatial with the districts’ giant past producers and current resources (Silver King, Elsa, Bermingham, Hector Calumet, Flame & Moth and Bellekeno) near the contact of the Keno Hill Quartzite and Sourdough Hill formations. With only 88 drill holes (slightly over 5000 m of drilling), and a strike length over 2 km the Homestake target represents considerable resource opportunity and exploration potential.
Metallic Minerals sees considerable opportunity for resource growth from target expansion and new discovery with the further systematic application of exploration, including the expansion of detailed soil geochemical grids, “resource-ready” target expansion through drilling and reconnaissance drilling of early-stage targets.
About Metallic Minerals Metallic Minerals Corp. is focused on copper, silver, gold, and other critical minerals in the La Plata mining district in Colorado, and silver and gold in the high-grade Keno Hill and Klondike districts of the Yukon. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources, and advancing projects toward development.
At the Company’s La Plata project in southwestern Colorado, the new 2023 NI 43-101 mineral resource estimate identifies a significant porphyry copper-silver resource containing 1.21 Blbs copper and 17.6 Moz of silver3. The 2022 expansion drilling provided the basis for the updated resource, including the longest and highest-grade interval ever encountered at La Plata and one of the top intersections for any North American copper project in the past several years. In May 2023, the Company announced a 9.5% strategic investment by Newcrest Mining Limited (acquired by Newmont Mining in 2023) to accelerate the advancement of the Company’s La Plata project. In the 2023 Fraser Institute’s Annual Survey of Mining Companies, Colorado ranked 5th globally for investment attractiveness and 2nd in the USA.
In Canada’s Yukon Territory, Metallic Minerals has consolidated the second-largest land position in the historic high-grade Keno Hill silver district, directly adjacent to Hecla Mining Company’s (“Hecla”) operations, with more than 300 Moz of high-grade silver in past production and current M&I resources. Hecla, the largest primary silver producer in the USA and third largest in the world, is anticipating full production at its Keno Hill operations by the end of 2023. An inaugural mineral resource estimate on the project is expected in early 2024, with an 1,112-meter expansion drill program completed at the Formo target during fall of 2023.
The Company is also one of the largest holders of alluvial gold claims in the Yukon and is building a production royalty business by partnering with experienced mining operators, including Parker Schnabel of Little Flake Mining from the Discovery Channel television show, Gold Rush.
All of the districts in which Metallic Minerals operates have seen significant mineral production and have existing infrastructure, including power and road access. The Company is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits in the region, as well as having large-scale development, permitting and project financing expertise. The Metallic Minerals team has been recognized for its environmental stewardship practices and is committed to responsible and sustainable resource development.
Footnotes:
Cathro, R. J., Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience Canada, Sept. 2006. ISSN 1911-4850.
Alexco Resource Corp Technical Report, titled “NI 43-101 Technical Report on Updated Mineral Resource and Reserve Estimate of the Keno Hill Silver District” with an effective date of April 1, 2021, and issue date of May 26, 2021.
See news release dated July 31, 2023. The Mineral Resource has been estimated in conformity with CIM Estimation of Mineral Resource and Mineral Reserve Best Practices Guidelines (2019) and current CIM Definition Standards. The constrained Mineral Resources are reported at a base case cut-off grade of 0.25% Cu Eq, based on metal prices of $3.75/lb Cu and $22.50/oz Ag, assumed metal recoveries of 90% for Cu and 65% for Ag, a mining cost of US$5.30/t rock and processing and G&A cost of US$11.50/t mineralized material. The current Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured. However, based on the current knowledge of the deposits, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
FOR FURTHER INFORMATION, PLEASE CONTACT: Website: www.mmgsilver.com Phone: 604-629-7800
Qualified Person The disclosure in this news release of scientific and technical information regarding exploration projects on Metallic Minerals’ mineral properties has been reviewed and approved by Taylor Haid, P. Geo, Project Manager for TruePoint Exploration, who is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
Quality Assurance / Quality Control All samples were prepared by Bureau Veritas’ (BV) Whitehorse, Yukon facility and geochemically analyzed at the BV laboratory in Vancouver, British Columbia. All samples were prepared using BV code PRP70-250, which crushed, split, and pulverized 250 grams of core to 200 mesh pulps. These pulps were then analyzed by 37 Element 1:1:1 Aqua Regia Digestion followed by Inductively Coupled Plasma Mass Spectrometry (ICP-ES/MS) analyses (BV Code AQ202). Over-limit silver, lead, and zinc samples were further analyzed with multi-acid digestion and atomic absorption spectrometry (BV Code MA404). Samples with over-limit gold (and silver when over-limit was reached via multi-acid) were re-analyzed using a 30-gram fire assay fusion with gravimetric finish (BV Code FA530).
All results have passed the QAQC screening by the lab and the company utilizes a quality control and quality assurance protocol for the project, including insertion of blanks, duplicates, and certified reference materials approximately every tenth sample. Certified reference materials were acquired from OREAS North America Inc. of Sudbury, Ontario, and CDN Resource Laboratories Ltd. Of Langley, British Columbia for the 2023 drill program at the Keno Silver project.
Forward-Looking Statements This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, statements about expected results of operations, royalties, cash flows, financial position and future dividends as well as financial position, prospects, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, unsuccessful operations, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration, development of mines and mining operations is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Vancouver, British Columbia–(Newsfile Corp. – January 9, 2024) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce that, further to its news release dated December 20, 2023, it has completed the issuance of 275,000 common shares of the Company (the “Consideration Shares“) to Libero Copper & Gold Corporation (“Libero“) as consideration for the acquisition by Dolly Varden of an option agreement (the “Option Agreement“) from Libero entitling Dolly Varden to earn-in a 100% undivided interest in the property known to Libero as the Big Bulk Property, comprised of seven mineral claims in the Golden Triangle, British Columbia (the “Acquisition“). In connection with the issuance of the Consideration Shares to Libero, the Company has filed a prospectus supplement to its base shelf prospectus dated April 25, 2023 to qualify the distribution thereof.
In connection with the Acquisition, Dolly Varden also entered into a further amending agreement to the Option Agreement clarifying that Dolly Varden may only elect to issue common shares of the Company to satisfy any option payments under the Option Agreement so long as the deemed price of the common shares at the time is equal to or greater than $0.64, as required by the rules of the TSXV. Whether Dolly Varden chooses to make such payments is cash or common shares is otherwise at the discretion of Dolly Varden.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this news release include, among others, the potential future issuances of common shares of the Company and other statements that are not historical facts. These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the receipt of final approval of the Acquisition from the TSXV, use of proceeds of the Acquisition, the adequacy of the Company’s current financial position, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the Company on desirable and permitted terms, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the risk that the Company may not be able to complete the Acquisition due to failure to receive regulatory approval; the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; and the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance. The risk factors identified herein are not intended to represent a complete list of factors that could affect the Company. For additional information on risks and uncertainties, see the Company’s annual information form dated April 11, 2023 for the year ended December 31, 2022 and the Company’s base-shelf prospectus dated April 25, 2023, both available on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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.
In the post-Christian world, the assumption is that prosperity and education must automatically lead to enlightenment. The results have, however, been quite the opposite, as these factors have instead provided leverage to the underlying irrational, amoral “system.” A foundation of rational, moral fabric must first be laid to have any hope of building a civilization. That is where attempts to enlighten the Third World have failed:
Here is a discussion on how Canada (and the rest of the West) did hara-kiri by bringing in so many Third World immigrants:
On Investments
92 Energy (ASX.92E; A$0.495) is being acquired. It owns uranium projects in the Athabasca region of Canada. The arbitrage is 30% based on a recent financing that the acquiree did. Based on the current share price of the acquiree, the upside is 60%. The merged entity will trade only in Canada. I understand some Australian shareholders are getting out because their brokers likely do not offer trading in Canada. The ideal choice to trade such stocks is brokers that offer trading on ASX and Canadian exchanges. I prefer Interactive Brokers. (This is a referal link).
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 recommendations. I will not and cannot be held liable for any actions you take resulting from anything you read here. Conduct your due diligence, or consult a licensed financial advisor or broker before making any investment decisions. Any investments, trades, speculations, or decisions made based on any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
A Virtual Event | JAN 6, 2024 – 8:00 AM – 4:00 PM (PST)
YOU WON’T FIND IT ANYWHERE ELSE
And certainly not at this price.
Right now, you can attend this exclusive event for 50% off the retail price, for just $99USD ($199 after January 6, 2024)
Dear Investor,
SOMETIMES BORING PAYS BIG BUCKS
A quiz for any of you football fans. Which position group in the National Football League earns the highest salary on average?
That’s easy you say — quarterback? Nope.
Wide receiver? Try again.
Running back? Not even close.
The answer is left tackle (one of the big boring guys up front). Surprised? It’s true. According to Spotrac, the average salary for an NFL left tackle in 2023 was $8,137,061. Quarterbacks, receivers, and running backs (the so-called skill positions) on average earned $5,767,724, $3,244,312, and $2,151,733, respectively.
It’s hard to believe but despite the headline-grabbing sums paid to quarterbacks such as Justin Herbert ($52.5 million per year), when all players, including back-ups and third stringers, are considered, the league paid more on average to left tackles than to quarterbacks. There’s a good reason for this.
Offensive tackles play a vital role; they protect the team’s quarterback from opposing attackers. One missed assignment can result in a negative play or worse — a season- or career-ending injury to a $50 million quarterback.
The risk is too high, so teams gladly pay up. Laremy Tunsil, the highest paid offensive tackle, takes home $20 million per year, which is more than most quarterbacks — and he rarely, if ever, touches the ball.
Sometimes, real value appears where you least expect it.
THE UNSUNG HEROES: FROM DISCOVERY TO MINE
A lot happens between mineral discovery and the first extraction of valuable ore (and the long-awaited cash flow). During this lengthy process, a number of factors, including changing risk factors and capital flows, alter the market value of the project.
Franco-Nevada co-founder Pierre Lassonde captured the general trend in his widely referenced Lassonde Curve.
Mining speculators are naturally drawn to the first hump of the Lassonde Curve, the discovery period, where exploration pays off and excitement reaches its peak. No doubt the profits here can be mind blowing, but speculators face another big opportunity to profit (the second hump), and that is the development / pre-production period.
Like our indispensable left tackle, development-stage companies are the unsung heroes of the game. They engage in what some dismiss as the “boring engineering phase” of development to production (the blocking and tackling, if you will): namely, the financing, engineering, permitting, and construction.
Are you still awake? Yes, it’s boring, yet critical. A misstep at this stage can nullify a decade or more of investment and hard work.
The good news is that at each successive stage, the odds of success improve. Only a small fraction of exploration companies make it this far. The end is in sight!
SURPRISINGLY REWARDING
While many early speculators prefer to cash out following the initial discovery boom, other investors join in. The maturing project, with risk and reward now clearly defined, attracts a different class of investor, including institutions.
These investors aim to profit from the difference between the market value and the net asset value (NAV) of the company. In the optimal case, the market value converges to near 100% of the NAV.
One might think that at this stage of the mineral discovery lifecycle, the prospect for large gains is slim. But that’s not the case according to Lobo Tiggre, founder of The Independent Speculator, and whose firm studied 124 cases going back to the 1980s.
According to Tiggre, these investments often double in value and in some cases deliver 600% returns or higher. Furthermore, 75.4% of all cases delivered positive gains.
At the same time, he is quick to point out that averages are just that — averages. They tell you little about the performance of individual companies. Despite the encouraging numbers, some companies still fail miserably.
His conclusion: Due diligence still matters.
DON’T GO AT IT ALONE — LET RICK BE YOUR GUIDE
Investing in development stage and pre-production companies can be extraordinarily rewarding, but there are risks.
That’s why I created the Rule Bootcamp Series with my partner, renowned natural resource investor Rick Rule.
When it comes to junior resource investing, Rick is the real deal with over 40 years of experience and hundreds of privately placed debt and equity deals under his belt. He has researched and funded companies around the world, including those domiciled in Australia, Canada, Chile, Great Britain, New Zealand, Switzerland, and the United States.
This bootcamp is your opportunity to capitalize on the lifetime’s worth of experience of a celebrated professional.
Among the topics we’ll discuss are:
An overview of developers and pre-production companies
Red flags to watch out for when evaluating potential investments
How to read an NI 43-101 report on a developer or pre-producer
The ‘ten disciplines’ that every investor must understand and review prior to investing
How you can make impressive returns without taking excessive risk
The questions you must ask development-stage mining CEOs before you invest
How Rick Rule selects his own development-stage and pre-production investments
About your host, Rick Rule, and his company, Rule Investment Media.
Rick Rule is a highly experienced investor and speculator who began his career in the securities business in 1974 and has been principally involved in natural resource security investments ever since.
He has structured, led, and participated in hundreds of privately placed debt and equity issuances for resource companies operating globally.
Rule Investment Media strives to produce the highest quality and most reliable market news and commentary in the natural resources sector. The goal: to connect scarce knowledge with the people who seek it and inspire intelligent investing decisions with insightful analysis and thought-provoking interviews.
MEET OUR DISTINGUISHED SPEAKER LINEUP
Douglas Silver CEO, Balfour Holdings, LLC
Douglas has had a diverse career in the mining industry ranging from prospecting geologists to being a founder and portfolio manager for the largest mining private equity fund. He is especially known for his work in mining royalties, having sold his company, International Royalty Corp, for C$745 million as well as a mineral royalty portfolio to Osisko Gold for C$1.1 billion. Mr. Silver is one of only three people to be inducted into both the U.S. and Canadian Mining Halls of Fame.
Nick Michael VP Technical Services (retired), Orion Resource Partners
Recently retired from Orion Resource Partners where he held the position of VP Technical Services, Nick was involved in the design/construction process as well as technical diligence and independent engineer (for investors) of many mines throughout the globe. He has a working understanding in all disciplines related to mining, proficient in mining, metallurgy, and engineering. This skillset, developed over years of experience and provided insight to efficiently evaluate, engineer, and manage greenfield, brownfield, and operating mines.
Lobo Tiggre Founder, Louis James, LLC
Lobo Tiggre is the founder, CEO, and principal analyst and editor of Louis James, LLC. He researched and recommended speculative opportunities in Casey Research publications from 2004 to 2018, writing under the name “Louis James” for privacy reasons. While at Casey Research, he learned about the newsletter business from Casey co-founder David Galland, and resource speculation from the legendary speculator Doug Casey himself.
Prior to his work at Casey Research, Mr. Tiggre was a writer and publisher involved in numerous ventures. In 1998, he published his first novel, Y2K: The Millennium Bug. In 2012, he co-authored Doug Casey’s first book in almost two decades, Totally Incorrect. This was followed by another book co-authored with Doug Casey in 2014, Right on the Money. Tiggre has plans for several new books going forward, both fiction and non-fiction.
Louis-Pierre Gignac President & CEO, G Mining Ventures Corp.
Mr. Gignac has more than 20 years of experience in the mining industry. His expertise includes managing project development studies, providing open-pit expertise, financial modeling, and economic evaluation of projects. He has coordinated many mandates with numerous major mining companies ranging from early exploration evaluations to operations optimization involving all fields of mining and geology. He is a member of the Ordre des Ingénieurs du Québec (“OIQ”) and the Canadian Institute of Mining (“CIM”). He holds a Bachelor of Mining Engineering from McGill University and a Master’s degree of Applied Science in Industrial Engineering from the École Polytechnique de Montréal and is a CFA Charterholder. Mr. Gignac also serves as a director of Major Drilling Group International.
YOU WON’T FIND IT ANYWHERE ELSE
And certainly not at this price.
Right now, you can attend this exclusive event for 50% off the retail price, for just $99USD ($199 after January 6, 2024)
Douglas Silver