Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.
The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.
For much of the rest of the world, however, the results could be disastrous. A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.
“The most obvious and likely risk with a price cap is that Russia might choose not to participate and instead retaliate by reducing exports,” the analysts wrote. “It is likely that the government could retaliate by cutting output as a way to inflict pain on the West. The tightness of the global oil market is on Russia’s side.”
Goal: To Create the Next Tier One Asset in Ontario, Canada.
Flagship Project: The Moss Lake Property located in Ontario, Canada has 1.47 M oz of Indicated and 2.51 M oz of Inferred historical gold resources, along with a robust Preliminary Economic Assessment conducted in 2020.
Joining us for our conversation is Brett Richards, the CEO of Goldshore Resources.
Maurice Jackson: Mr. Richards, it’s a pleasure to be speaking with you today as Goldshore Resources has some exciting news for shareholders, as the company continues on its path to creating the next Tier One asset in Ontario, Canada. Mr. Richards, for someone new to the story, please introduce us to Goldshore Resources and the exciting opportunity the company presents to shareholders.
Brett Richards: Goldshore is a company that was formed last year. We’ve been trading for just over a year now, and on the back of acquiring the Moss Lake Project from Wesdome Gold Mines for $52 million in cash and shares last year, we have put together a strategy over the last nine months to drill this up to let’s call it critical mass. What we acquired in the Moss Lake Project was a 4 million-ounce historic resource, and our view is that the extensions of this resource, both laterally along strike and at depth, are significant, particularly along strike.
Our original strategy was let’s put together a 100,000-meter drill program. Let’s get financed and let’s get on with it, and that’s what we’ve been doing for the past nine months, and most recent results are starting to I’ll say support the original thesis we had about Moss Lake being much bigger than first thought.
Maurice Jackson: Before we deep dive into the press release, some important competitive advantages distinguish Goldshore Resources from its peers and truly make the Moss Lake property a unique value proposition. Mr. Richards, for someone new to the flagship Moss Lake property, please acquaint us with the deposit, beginning with your location and some of your neighbors in the region.
Brett Richards: TheMoss Lake Propertyis about 120 kilometers northwest of Thunder Bay in Ontario. We are probably in the most mining-friendly jurisdiction in the world, plus we are on the Trans-Canada Highway, Yonge Street in Toronto, which happens to be the longest street in the world, going all the way to Manitoba. Our concession is adjoined to Trans-Canada Highway.
And why is that important? It’s important for several reasons, particularly about infrastructure. When I look at mining projects, at the end of the day, obviously there’s the technical side of things, but there’s also what I call the do-ability factor. Is this mine really doable? Can you get this into production easily? And the answer for Moss Lake is yes.
Being on the Trans-Canada Highway means we’re afforded 10-cent kilowatt-hour power, which goes right by our doorstep. We have a four-lane highway, so access to our site is as good as it gets. We have power, water, rail, people, consultants, contractors, and government, all within nothing more than an hour’s drive into the City of Thunder Bay, and an international port and an international airport. So, we tick all the boxes when it comes to infrastructure, so that is kind of, I’ll say the description of where we are, and why I think it’s so compelling to be where we are.
There are a lot of people around us as well. The Shebandowan Greenstone Belt where we’re located has been a bit under-explored over the years because low-grade bulk tonnage style deposits were not in favor when gold was $1,500. But now gold is kind of trading on a floor of $1,800, they seem to be much more appealing to investors. Certainly, after the success of Detour Lake, I think you’ll see these types of deposits more and more come into production.
Maurice Jackson: You referenced Goldshore Resources as having a historical resource, and the company also completed a robust Preliminary Economic Assessment (PEA) back in 2020. Can you share some of those highlights with us?
Brett Richards: Historically the area has been, let’s, so-called cobbled together as a big land package. There are three distinct areas within our domain, the Moss Lake area being kind of the flagship. It is what carries three and a half million ounces of that historical resource. Up in the Northeast, up near the highway, we have Coldstream and North Coldstream and Iris Lake against all kinds of compartmentalized land packages that were cobbled together by Wesdome.
There’s a 500,000-ounce historical resource on Coldstream, and a former actual operating mine at North Coldstream that ran for about 30 years in the, about 40 or 50 years ago. We have a very interesting kind of, I’ll say land package, and the work that has been done on this culminated in 2013 when a PEA was done on the property by Moss Lake Gold Mines.
Again, the PEA was updated in 2020 by WesDome before kind of launching a sale process and let’s face it, PEAs are a snapshot in time, and the time in 2013 and the time in 2020, and the time today are all very, very different, knowing that we are in a hyperinflationary environment today, what CAPEX might have been $500 million back in 2020, might be 600 million or $650 million today.
We have to keep that in mind as we go through. But I think back in 2013, and back in 2020, this project, at these gold levels, at $1,800 to $2,200 gold, and trades between a 27% and a 40% IRR. So, after-tax, the internal rate of return, is very, very compelling. We can look at the new present values of these projects, but again, they’re snapshots in time. What that tells me is that this is a robust project that when tested, even with inflation, even with different input assumptions, relative to the economic circumstances at the time, it is going to be a robust project.
Maurice Jackson: Goldshore Resources currently is embarked on a 100,000-meter drill program. Are you twinning the holes, and conducting step-out drilling on this?
Brett Richards: We are doing some verification drilling of the existing historical resource. We are stepping out laterally. We are stepping out along strike, and we have identified a parallel zone to the Moss Lake deposit, which is very exciting, and some high-grade structural areas within the deposit, which we’ll look to improve the overall grade and volume as we get further down the road, and get closer to a resource estimate.
Maurice Jackson: Speaking of your drill program, some of the initial assay results have just been released. What do they seem to indicate thus far?
Brett Richards: Well, I think they, we’ve always been trying to test our thesis that this is bigger and much more robust as a deposit than the historical resource illustrates. We’ve done that through a geophysical survey, and you can see that on our website, the 3D model of it, where you can see the potential for future mineralization up along strike, that goes 7 to 12 kilometers further than where Moss Lake is now.
But I think the results that we started to put out from the very beginning show between one, 1.1, 1.2, and 1.3 grams over long intervals, long intercepts of 50, 60, 70, 100, and 120 meters in some cases. I’ll say, some good intercepts, but I think what the surprise has been where we have gone kind of not twining holes, but stepping out a little bit, and stepping into an area that might be classified as inferred.
We’ve hit some high-grade structures, and I think that’s simply because of the geophysical work we’ve done, the structural work we’ve done with a structural geologist by the name of Brett Davis, who’s on-site currently. Pete Flindell, who is our VP of Exploration, he and the team have kind of figured this out. Targeting of some of these higher grade holes has been something that we wanted to do, because ultimately when we kind of go to, I’ll say, interpret all of this data, I don’t think the market is going to want another kind of $1.5 or $2 billion project that does 60,000 tons a day and produces 600,000 ounces of gold. That’s just not viable in this current economic environment.
You’re not going to be able to raise that kind of money. You’re not going to be able to get traction on that type of project. I think we have to start pivoting and looking at alternatives, and what are those? Is there a higher-grade starter pit alternative here within the deposit? I think that’s what we’re going to try and kind of focus on over the next little while. Therefore, there will be more infill and more delineation drilling than anything. But, we are still doing some step-out as well.
Maurice Jackson: All right. Well, let’s get to the press release. Goldshore Resources just received some welcoming news from the assay labs, which identify significant downhole gold intercepts. What can you share with us, Sir?
Brett Richards: We just announced, 78 meters at 1.17 grams from about 170 meters depth. This is a great hole. It’s all going to get contained within an open-pit mine. It’s going to pull a lot of tonnage in. I think, there were some high-grade areas within that, including 22 meters at 2.3 grams and 5.6 meters at 5.69 grams, in and around the 200 to the 220-meter range.
So, this is encouraging, and there are some other intercepts on some other holes that we announced, but it’s all more of the same. There’s anywhere from 20 to a hundred meters at over a gram.
Our objective is to try to maximize the grade. A little bit of grade, 0.1 grams here is going to add 10% to our resource. Even 1 gram or 1.1 gram, it’s quite meaningful at the end of the day. We’ll figure all this out once we get all the data and get towards a mineral source update at the end of the year. But I think right now, and I can talk a lot about the current market dynamics, but sadly, putting good results out into the market has not moved our share price. It’s actually, we have been impacted like all the other junior minors and we’ve been trading downwards.
Maurice Jackson: Looking forward, what can you share with us regarding optionality and economic open pit shells as you model your resource?
Brett Richards: I think we’re going to see a lot of results come out over the next six months or more of the same, illustrating our thesis that this is going to be a real project. Also, I think better delineation on defining this higher-grade starting project, but we can’t lose sight that this is, I think, this is a Tier One asset. This is going to be 10 million ounces by the time the drilling has wrapped up. Whether that’s a year or two or three from now. This is such a large area. There’s probably going to be another 100,000 meters as this gets towards a feasibility study.
Like I’ve said, we’ve got a footprint here that is a Tier One asset at the end of the day, but I think we need to start focusing on what the market is going to respond to. The market is going to respond to, is this a project that has a smaller CAPEX option, a smaller starter with that positive cash flow as soon as possible. Those types of questions need to be addressed and need to be presented to the market. So, we’re going to be looking at some permutations at the end of the day, when we do a PEA next year.
Maurice Jackson: Let’s get into some numbers. Mr. Richards, please provide the capital structure for Goldshore Resource.
Brett Richards: Goldshore Resources has about 143 million shares outstanding today, and only 5 million out warrants outstanding, and we’ve got about $13 million in the bank as of June. We’re well-positioned here and can ride this out.
As I’ve said before, we got caught in a bit of the whole market dynamics. We wanted to play a bit of catch-up, and get ahead of the curve on drilling, so we ramped up our drilling just before the whole market started crashing.
Our team took our foot off the pedal, and we put the brakes on it a little bit. We did scale up to seven rigs, but we’ve pulled back now to a couple of rigs. I want to ride this out. Preservation of cash and preservation of this company is first and foremost.
The capital markets are so volatile and so unpredictable right now, I’m very comfortable just burning a couple of million dollars a month and just watching this, or less than a couple of million dollars a month, and just watching how this unfolds to the fall because we don’t want to be in a situation where, where we have to go to the market and the market is not there for us.
Maurice Jackson: Speaking of being comfortable, I just want to share with everyone that I am a proud shareholder, and I’m looking to add to my position under these circumstances. The value proposition is extremely compelling, and I’m not discouraged by the price. I understand how markets work, and I never complain about a sale when it comes to capital goods. Now, since we’re covering numbers, how does Goldshore Resources compare with some of your peers?
Brett Richards: Well, we’ve never been able to kind of figure this one out, but we’re trading today somewhere kind of in order of magnitude around $10 an ounce, it’s crazy, but that is kind of where we are today. Our peers have also been impacted, but they also had a higher starting point. We’ve got a trading comparable sheet in our presentation that has us at the bottom of our peer group, and this is a peer group put together by a bank. At trading at $10 today, and our peers trading anywhere from $15, $20, $25, all the way up to $100 an ounce for Marathon.Looking at a pure comparison basis, Goldshore Resources is the least expensive among our peers. When you start looking at what it costs to bring ounces onto a resource statement, to put ounces into the inferred category costs about $30 an ounce. If you have a million ounces of inferred resource, it’ll probably cost $30 million to get there, then drilling in other activities.
So we’re trading at a third of that, a third of what it costs to do it. So, I think from an investment opportunity standpoint, there’s one way here, and it’s up.
Maurice Jackson: In closing, Sir, what would you like to say to shareholders?
Brett Richards: I think the really compelling investment case here is how we have performed against the general market, and where we are today. I’ll say the leverage that we have on the way back up. This is not going to go on forever. We may still feel some pain in the capital markets going forward, but we are going to recover, and commodities and equity, gold equities are going to accelerate, and probably much faster than the market when it does turn around, and when it does come back. We are actually leveraged to that even greater than the normal gold equity market, because of our size and our scale, and our potential to bring this up to a Tier One status.
So, there are some compounding, compelling investment reasons why to choose Goldshore, and I am also a major shareholder of this company. I have never continued to lose sight of the fact that this is a real project, and this is going to get into production one day.
Maurice Jackson: Mr. Richards, it’s been a pleasure speaking with you today. Wishing you and Goldshore Resources, the absolute best, Sir.
Brett Richards: Thanks, Maurice.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will improve the world.
Whoa! Joining us for an action packed interview is the legendary Bob Moriarty the founder of http://www.321gold.com/, as we will cover a lot of ground in this interview! Topics ranging from Market Conditions, Bitcoin, the Colorado River, Junior Mining Companies, and Precious Metals. This is an absolute must watch!
Joining us for a conversation is Jayant Bhandari the Founder of Capitalism and Morality and highly sought out advisor to institutional investors. As we will travel the globe today to get some insights on geopolitical events that are taking shape that may impact you, along with some arbitrage opportunities for your portfolio, and see how philosophy impacts the aforementioned
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project located in the Golden Triangle of British Columbia, Canada, 25kms by road to deep 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, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The 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).
Maurice: Before we deep dive into company specifics, Mr. Sussman, please introduce us to Collective Mining and the exciting opportunity the company presents to shareholders.
Ari Sussman: Collective Mining was born as a result of the COVID lockdowns, so just some background, my previous company was named Continental Gold, which was responsible for discovering and constructing the largest and most modern gold mine in Colombia, which was sold one week before the global lockdowns to a large Chinese mining company named Zijin Mining in March 2020, for a total sum of approximately $2 billion.
Within a month, my core team and I were bored at home like we all were, and said, “Let’s get back to the drawing board.”
And that is how Collective Mining was born.
Just some background on Collective, the name Collective Mining represents our business model. It’s a collective mining model, meaning, yes, we’re going to build, we hope to make a big discovery, and we’re hopefully going to build a mine and, or, sell the company and then reward our shareholders for being involved. But it’s also going to reward the local stakeholders involved in this project. We want to ensure that people living in the area of influence of the project, benefit, learn and grow with us. As we advance, they advance.
Maurice: Well, quite the pedigree of success here. Let’s find out more. Mr. Sussman, take us to the mining-friendly department of Caldas and Colombia, and please acquaint us with the region, potential mineral endowment, and the mining jurisdiction.
Ari Sussman: Let’s start with Colombia and then work our way inwards.
Colombia is a mining jurisdiction, for a country in South America that has the infrastructure in place, and there is no more prospective mining environment to be in. This is the Andes Mountain chain continuation, which starts in Chile and works its way northward, and goes right through Colombia. In theory, all of the large-scale types of discoveries will be made in Colombia that countries like Peru and Chile currently enjoy.
With that said, I don’t want readers to think that Colombia is an early stage country for mining because, it is in terms of discoveries in commodities that we care about (copper, gold, silver, et cetera), but it’s quite mature in the mining of coal.
Colombia is one of the world’s top largest coal producers and most of those mines have been in production for 50 years or more. So as a result, it’s a mature destination for companies to go and make discoveries in.
What I mean by mature destination, is there’s a very strong mining code in place. Royalty rates have been stable for decades on end. There is a mining association, well established in place that represents the mining industry and will lobby the government on behalf of the industry. These are things that we expect to see in countries like the United States where I am, or Canada, but this is also in Colombia. From that perspective, it’s stable and it’s great.
Zooming in a little bit, we are in the department, which you mentioned, named Caldas. I don’t think most people have heard of Caldas. Colombia refers to states as departments, by comparison. But if any of your listeners are coffee experts or coffee aficionados, they will have heard of Caldas because it’s reputed to have the best coffee beans in the world. I, for one, am not the foremost coffee expert. I enjoy the coffee, Maurice, I do, but I don’t have a real comparison, but this is what it’s known for.
What makes Caldas so special, are two things. One is the coffee, and it’s got a large, big industrialized business in Caldas. This entire department is made up of more mom-and-pop-style coffee farms, very specialized and high end and each coffee farm competes with its neighbor to produce a better bean and that leads to excellent quality.
But secondly, there is a mine which is currently operating in Caldas, which happens to be next door to our main property, named Marmato. Why I’m mentioning this now is, that Marmato has helped to create a very mining-friendly environment in Caldas. The reason for that is that Marmato has been producing gold and silver continuously for more than 500 years, believe it or not, and is still producing today. Virtually every person that lives in the department of Caldas has or had, mining in their blood in one way, shape, or form. As a result, there’s a very strong comfort level with mining in this state and it’s an excellent place to be.
Maurice: Collective Mining currently has two projects with district-scale potential. It has identified 11 highly prospective targets in the Cauca belt. Let’s get acquainted with your flagship Guayabales project. Briefly walk us through the genetic and expiration model and share with us what has your team excited.
Ari Sussman: We are operating in the Cauca Belt. This is a well-known metal belt of Colombia, which runs along the Andes mountain chain. Just to understand how prospective it is. First off, let me back up. Colombia was not a mining destination due to security concerns in the 1980s and 90s, as everyone knows. Those were the horrible times for Colombia that have now resulted in many shows, like Narcos, et cetera, being made as a result of what happened in those times. But, the country turned around with the election of the former president Álvero Uribe in 2002. Now we’ve had 20 years of Colombia being open and prospective.
The Middle Cauca belt prospectivity. There has been somewhere in the neighborhood of three million meters of diamond drilling done since 2002, in this belt. That has resulted in the discovery of more than 100 million ounces of gold. Let me caveat that by saying that a lot of that gold is never going to come out of the ground. It’s not all economic gold, but if you look at the prospectivity, for example, in my former company, Continental Gold, we discovered and drilled off 11 million ounces of high-grade gold at around 8 grams per ton and that deposit was open to grow further.
It would be when we got taken out by Zijin, just starting to pour gold from finishing construction. AngloGold alone has drilled off more than 40 million ounces of gold over a series of projects, for an approximately 20-year period. Then there are many others. So prospectivity is remarkable and being in the Cauca belt is fantastic.
Zooming in, I mentioned this project named Marmato, which we do not own, that is in another company. Marmato is an approximate 8 million ounce resource with less than 8 million ounces of reserves, that is pushing toward production, as we speak. What we recognized that one of the best places to find a mine, is next to a mine?
Marmato is a porphyry-related vein system. I want readers to think of Chile because Chile is the world’s largest copper producer and the bulk of that copper production comes from porphyry deposits.
Porphyries are intrusions in the earth where individual fingers of porphyry rock come up, the pulse pushes them up and then you get these complexes, they are typically about, let’s say, up to four miles by four miles in circumference within which, you will have fingers of porphyries which can be very large, in the billions of tonnes. Then you have breccia’s related to the porphyry and you have vein systems related to the porphyries. A key feature of the porphyries, breccia related to porphyries, and vein systems related to porphyries, is the dimensions of these deposits can get very large.
I mentioned billions of tonnes for porphyries, vein systems, my former project Buriticá at Continental Gold contained 11 million ounces. It has been drilled off over about 2 kilometers, or call it almost 1.5 miles vertically. That is enormous, and whatever you end up having in vertical, you end up having in lateral dimensions about mile-long vein systems along with huge vertical dimensions.
Breccia’s, porphyry-related breccias are also huge. I’m sure readers are familiar with Filo Mining in Argentina, which has been a huge success. They have a porphyry deposit, but what is driving their value is a porphyry-related breccia which sits in the middle of their porphyry and that’s where those unbelievable grades we’ve seen of copper-gold and silver are coming out of this breccia.
Why is that relevant to Collective Mining? We recognize that Marmato is on the fringe of one of those four by four-mile circumference areas that have porphyry intrusion centers and they are our neighbor. We have come in with complete grassroots exploration, and I want to highlight that there are very few companies today doing grassroots exploration. Most companies are retreading old projects with new interpretations that have had lots of drilling and lots of work done. This is true grassroots exploration.
Collective Mining has generated 11 targets on two projects. Our flagship is called Guayabales. That is the one that is contiguous to the historic and current large resource the aforementioned Marmoto. And then we have another one calledSan Antonio. Although it’s a second project, it’s only about a mile away as the crow flies from the edge Guayabales to the concession edge of San Antonio. So, it’s part of the same geological complex. And what we have identified in those 11 targets are either porphyry targets for drilling, porphyry-related breccia targets, or porphyry-related vein systems for drilling. I mentioned grassroots, so we’ve brought all of those targets except for two of them up to the drill, ready status as we speak.
Our flagship Guayabales Project has generated eight targets. I’m going to say something that I don’t say lightly, but this is the best exploration project that I have ever seen or been involved with (period).
And I said that when my technical team identified it, and I iterate it much stronger today because I’m able to back that up with initial drilling success. Today at Guayabales, we have drilled or are currently drilling five of those eight targets.
Our Olympus Target may be on the cusp of a significant discovery, which is a vein system over-printing breccia, porphyry-related. And as a result, we’ve drilled big bulk intercepts, including the discovery hole of 302 meters at 1.1 grams per ton, gold equivalent, starting just below surface. We will find out it’s open-pitable as we do more work in the future and prove that up.
We think that Olympus has the earmarks of a multimillion-ounce gold and silver system. Looks similar to Marmato next door and similar to my previous project, Buriticá, which I previously mentioned, we drilled off 11 million total ounces.
The second target with assays is called Donut. Donut is a porphyry-related breccia. I don’t think this one is going to be huge. It doesn’t have the potential of Olympus, but it’s still significant. It starts right at surface and we have amazing intercepts in it, including up to 163 meters at 1.3 grams per ton, gold equivalent, beginning right at surface.
Why do I say modest? I don’t think this one has multimillion-ounce potential. But if it does turn into a mine, with further work, I think it’ll be a satellite operation that can feed a much larger complex for processing and it’ll be nice to have because it will add incremental ounces onto the total deposit.
The third target that we drilled was called the Box. I say ‘was’ because that one didn’t work for us. We drilled it, we published results, it doesn’t have large-scale potential like we’re looking for and therefore, we’ve concluded that Box is out.
Our fourth target, the Apollo, we are currently drilling and to say we’re over the moon on it is an understatement.
Now, I’m going to put a big caveat out there for readers. We do not have assay results for it yet. We are expecting the initial first assay results for the first drill into it in the next two to four weeks. That is a caveat. I want everyone to know that at the end of the day, the only truth in mining is the assay results. We can like what we see visually, but we need to prove it with the assay results.
With that said, we’re pretty good at identifying rocks and what we see at Apollo, visually, is a porphyry-related breccia. It has an abundance of chalcopyrite and pyrite in the breccia matrix. For those that don’t know what chalcopyrite is, that is a mineral that contains copper in it, so there’s going to be a copper component to this one.
And then we expect there to be gold related to both the chalcopyrite and the pyrite, as well as silver. But, what makes us excited about it is, that the breccia that is mineralized and then over-printing the breccia is a porphyry-related vein system.
How do we know this? We see the pathfinder minerals of porphyry-related veins.
It’s important to note, that porphyry-related veins are known for being gold and silver-rich, which they typically are, but they also have byproducts of lead-zinc and to some extent, copper. So, what we see in the minerals that bring lead-zinc into the matrix are sphalerite for zinc and galena for lead.
These are very easy to identify, sphalerite is typically a brownish color and galena is a grayish color, and you get blobs of them. Why we know it’s over-printed is, instead of being veins that are typically narrow anywhere in the world, when they get into the breccia, the metal blows out from the veins and fills up the matrix of the breccia.
Think of it like this, when you’ve tried to complete a puzzle, there’s a lot of porosity or space between the individual pieces of the puzzle when they’re put together. Metal fluids will come into a breccia structure that looks similar to that, and it will fill up those spaces. Because it’s porous, the metal will spread out into those spaces. What’s happened with the veins is they’ve come into the breccia and there’s been room for the metal to spread. These have spread out into the breccia matrix, which suggests that we may have two overlapping systems.
Why I think this is significant, with the caveat that we don’t have assays, is, in my experience, that big deposits in the world are very rarely found when there’s only one style of mineralization dumping metal into the system. You typically need to see two or more styles. And here we have two very distinct styles.
So, stay tuned on Apollo, quite excited for the results. Then the first hole will be out soon. And, I should add that we are drilling thick visual intercepts at Apollo. This is not one or two meters we’re drilling intercepts of the three holes that are completed so far, visually, between 85 meters and over 200 meters. We’re hoping for long, big intercepts, and with some luck, with the assay, if mother nature is generous to us, we’ll have some decent grade in that breccia.
Maurice: Well, speaking of visually, that was a good analogy there. Can you conclude by taking us north for a victory lap and talk to us about the Victory Targets? What are you exploring there?
Ari Sussman: The Victory is the Northern complex of targets located in copper-gold country. We have identified a series of intrusions that are outcropping at surface, particularly at the Victory East Target. That is the one that excites us the most in the victory complex.
Victory has a Victory East, a Victory West, and something called Trap, which is in the middle. Trap is called Trap because it’s trapped porphyry-related veins within a structurally controlled corridor. Victory West, I won’t spend any time on it. It’s a blind target that has interesting geophysics, there may be a porphyry below.
Regarding Victory East, we have identified multiple porphyry intrusion centers that are outcropping and continue to collect and see a significant amount of rocks that are very enriched with magnetite, which in this kind of porphyry setting will contain gold or should contain gold and some silver, as well as chalcopyrite, which is that copper mineral that I mentioned before.
Noteworthy of mention, chalcopyrite is typically about 34% copper. Therefore, when logging a core in a drill hole, indicating there’s 2% chalcopyrite, assuming your logging’s correct, you can multiply by 0.34 and that should give you an approximation of what your copper content is.
We see a mineral that will contain copper and an element that will contain gold and a little bit of silver, over a very large area. We’re working diligently to have Victory East drill-ready for Q4 of this year. I think we have another four hard months of work ahead of us. It’s very big and the dimensions of the area, we’re in the plus mile range in every direction. Our team is trying to figure out where the end of the system is, to be frank, before we zero in and decide where we’re going to drill. That’s what we’re doing right now.
Maurice: To summarize this, early days. But Collective Mining may be on the cusp of at least two potential tier-one deposits before us.
Ari Sussman: Look, mining is a very difficult business. The professionals that are smarter than me, estimate you have about a one in 1,000 chance of making a discovery that ever becomes a mine. Making a discovery is very rare in a grassroots exploration program, and a huge compliment to the geological acumen of our technical team.
We are optimistic that we have two major discoveries under our belt already at Olympus and Apollo, subject to a lot more work. And they’re going to require a lot of proving up. But we’re seeing all the right indications of two big systems and Victory is indicating an enormous, grassroots discovered outcropping porphyry complex that we’re looking forward to seeing if that offers the kind of potential that Apollo and Olympus have already shown us from initial drilling,
Maurice: Leaving the Guayabales, let’s visit Collective Mining’s secondary project, the San Antonio, which has over 4,300 meters of drilling completed along with a significant discovery. Sir, please introduce us to the San Antonio, along with the genetic and exploration model.
Ari Sussman: OurSan AntonioProject is about a mile as the crow flies from the edge of its concession to Guayabales. It’s a peripheral part of this same complex of porphyry intrusions. We got into San Antonio in mid-2020. We did a lot of surface work. We did some additional geophysics and were able to generate three targets.
The northern target is called Pound, the middle target is called COP, and the southern target is called Dollar. We got busy drilling it, it was an easy one to drill. It came with water permits in place, it was ready to go. So, we put a bunch of holes into the Dollar Target and two holes into Pound. We have not drilled COP as we speak.
This was in late 2020 into early 2021, and those that follow the mining space know that there’s been a significant problem with assay delays plaguing the industry, resulting from COVID.
I think that was probably the peak of the problem at that point. To date, we have built 4,300 meters of core and had no assays and we were frustrated and shut down the program and said, “Well, we can’t drill more until we wait and get assays.” It took months and lo and behold, we got assays. I would say the results, we got a mixed bag. The mixed bag is as follows: Dollar, we drilled the most beautiful looking porphyry core you could imagine.
I urge any geologists to look at the photos of Dollar core. It is remarkable. However, we’re in the very upper portions of a porphyry system where the metal content is leached, indicating that it needs to be drilled deeper, and that is something we plan to do in 2023 to see if we find the portion that contains the metal.
The surprise for us is known as the Pound Target. At the time that we drilled Pound, I can honestly say that the two holes that we put in were more of a Hail Mary attempt. We had done very little work on Pound.
We had found a porphyry-related breccia with a very small footprint, at the time it surfaced, and said, “Let’s put two holes into it and see what happens.”
And the discovery you alluded to is as follows. We drilled two long holes, both slightly more than 700 meters in length, and both hit. They hit about a .5 gram gold equivalent in each. That’s not a grade that I think you’re going to build a mine on in the future, it’s too low. But anytime you drill a system that has two intervals with more than 700 meters of mineralization, and I should add, that both of those holes ended in mineralization, then there’s a big system somewhere there.
Subsequently went in and conducted some surface work. We have outlined a zone that’s over a mile to the north-south by about a half a mile east-west, and open in each direction. And that is worth going back and drilling one or two or three more holes.
The San Antonio is our secondary project, and it doesn’t offer the near-surface, exciting grades visually and with assays, that we’re seeing at Guayabales, but it offers big scale. So our plan is, let’s poke a few more holes into both of these targets. If we get lucky, we’re going to be talking again about it in great deal. If we don’t, I think the business plan would be to bring in a joint venture partner, which would be a major who’s excited about drilling deeper porphyry-style targets. Who’s willing to fund long drill holes and let someone spend that money and to earn a majority interest in the project and Collective Mining shareholders will get carried along for the ride and the potential upside.
Maurice: Before we leave the project sites, a multi-layered question. What is the next unanswered question for Collective Mining? When can we expect a response? What determines success? And what can we expect as far as news flow?
Ari Sussman: Anyone that invests in us wants the excitement of a drill hole. That is why you would invest in us. You are going to see a steady flow of drilling assay results beginning later this month, which would be the first hole from Apollo.
Then we will have a series roughly every month between now and year-end coming out of Apollo. Additionally, our phase two drill program at Olympus. We are going to be drilling from underground to test the high-grade center of the Olympus area. Olympus is characterized by having approximately a hundred artisanal miners that are mining very high-grade veins.
We’ve reported assay results close to 500-gram gold, and well over 1 kilo silver from these veins in channel samples. We want to drill that area because we know there’s a large vein system there. We don’t know how large, but we’re going to prove it out with drilling.
We also think that it could be a bulk tonnage target. The first results from that will start to flow in August or September. So, if you invest in us today, you’re going to see heavy news flow and particularly heavy beginning in August, and it will continue through the balance of the year.
Maurice: Leaving the project site, let’s discuss some important topics germane to your projects. Do you own your projects 100%?
Ari Sussman: So we have an option to earn 100% undivided interest in both projects by making a series of option payments over a number of years. The payments will culminate in 2031. No private royalties are underlying the property. There are no streams, et cetera. We will be clean and clear for 100% pathway to production. Colombia as a jurisdiction, as far as if you were to build a mine, is favorable from a tax perspective. If you’re in the gold business, the royalty rate is 3.2%. That’s below the Latin American average, which is in the +5 something percent range, as we speak. And taxes are in the low 30% which is kind of common for any country. We are in a good jurisdiction, favorable potential economics based on success and constructing a mine and we are excited to be there, 100% ownership is the only way to go on these things.
Maurice: Are you fully permitted?
Ari Sussman: Currently, Collective Mining is permitted for exploration. We are not permitted to build a mine. That is something that you will do once you complete a feasibility study and then follow the procedures in Colombia. Keep in mind, that I have permitted in Colombia, it’s an excellent jurisdiction to permit. We permitted a gold mine, as I mentioned, and it’s not an overbearing process in terms of timeline. It’s very detailed in terms of the workload. It is first class in terms of the government’s ability to assess permits and evaluate them, but they give you a reasonable timeline. You can permit a project in under one year to construct a mine in Colombia. You compare that to the United States where I think the average now is about 10 years. So much more favorable, but it’s a lot of work. But, as far as exploration goes, yes, we are permitted to explore for several years.
Maurice: Is the ultimate goal to build a mine or arbitrage?
Ari Sussman: Having been through this, you need to plan to build a mine. Because, what we can’t control, any of us, is the cycle itself. We all know commodities are cyclical. And so there are periods in the cycle where M&A is very active. Then there are periods where it’s slow. You must build your company as if you’re going to build a mine. But you keep the option open to be taken out. And if someone wants to acquire the cycle’s right, you do that.
That is how we’re going to proceed. If I have a choice in the matter, and I can determine my future, I don’t know if I’d want to build a mine again. I enjoyed the experience, but at its peak, we had about 5,000 people working at our former project Buriticá, between employees and contractors at the peak of construction. It’s a lot to manage, so we are willing to do it again? Yes. Would we want to do it again? I think ideally we would like to sell before we commence construction,
Maurice: We’ve discussed the good, let’s address the bad. What can go wrong and what are your action plans to mitigate that wrong?
Ari Sussman: Colombia. For good or bad, Colombia is very similar to investing in Peru. We all know Peru is one of the world’s largest producers of silver, gold, and copper. But not all projects work in Peru and the reason for that is Peru has a lot of population, similar to Colombia. virtually anywhere that you’re going to find a project that you want to explore and hopefully construct a mine on, you’re going to be dealing with populations, whether it’s villages, towns, or even larger. And what I mean by that, is why it’s like Peru is, that we see projects in Peru that succeed and then we see others that fail. The typical failure is based on having opposition from the locals that are in your area of influence on your projects. So, if you do that part well, you should succeed. If you don’t, you’re going to have problems. And that is critical.
Environment, Social, and Governance (ESG), is a big buzzword that all industries are talking about today. Having been in Colombia for more than a decade, this was critical for us more than 10 years ago when it wasn’t as popular a topic because we would not have succeeded if we didn’t have a good program.
What does a good program mean in ESG? Everyone throws it around like, “How do we do it?” But what does it mean?
It means many things. One, it’s education. People need to understand that mining can be beneficial for their communities and not a detriment.
Two, in Colombia you’re dealing in an agriculture-based economy, so it’s educating people that Colombia and mining are not competitors. They coexist well and are good for the economy because they’re cyclical but at different points in the cycle. So, it’s always nice to have one industry that’s strong while the other one has a low point in the cycle and struggling, to offset each other. That’s very good.
And three, make sure that you strengthen local businesses. I’ve seen this all over the world, a company comes and says, “Hey, we’re going to hire thousands of people locally and that’s great. And indirectly, we’re going to impact thousands more.” And of course, that’s great. But if the businesses that aren’t going to be solely focused on selling to the mine, don’t understand what mining is and how to strengthen their businesses to succeed in that environment, they’re going to fail.
Companies must be willing to spend money, help, and time. Helping small businesses evolve and mature so that they can continue to service the area for whatever goods and products they service, plus accommodate the mining company coming in there, because there’s a big change coming where there are areas of mining, in terms of the number of people. Populations grow due to the needs of a mine. Those are just some of the elements. ESG is the critical thing to focus on. If we don’t do this well, if our sustainability program isn’t strong, it doesn’t matter how many great drill holes or scales of deposit we find, we will get stopped.
Maurice: One of the virtues of Collective Mining is the pedigree of commercial success of building those relationships your team has a proven track record of, it may not make headwinds by saying that you’re permitted and you have the buy-in of the community, but it makes the difference of whether you can proceed or not. That’s one of the virtues, again, that Collective Mining brings to the table.
Switching gears, let’s discuss the people responsible for increasing shareholder value. Please introduce us to your board of directors, management team, and, technical teams, which bring along a vast amount of intellectual capital and have a track record of creating value.
Ari Sussman: Let’s start with the Board of Directors. We have one Colombian representative on our Board, an amazing woman named Maria Constanza. She brings something very strong to the table for us. Although she doesn’t work in the mining business today, she’s been very involved in mining over her career, including being the original president of the A&M, which is the Colombian mining agency that is the division of the government in charge of titling for the country from an exploration standpoint, as well as from an operating standpoint, not environmental permits, but a mining license.
So, we have a deep knowledge of both the private sector and the public sector with her and she’s been involved in numerous companies and has lots of experience.
We come out of Colombia, and on our board of directors is an individual named Ken Thomas. Ken, in the mine building business, is extremely well known, has been around a long time, won many awards over his long and illustrious career, including being one of the original engineers of Barrick Gold when it used to be known as American Barrick. He was around when Goldstrike, which is the largest mine in the Americas, in Nevada, was founded and evolved and grew. So, excellent experience.
We have another individual on our board named Paul Murphy. He’s also the chairman of Alamos Gold Inc. (AGI:TSX; AGI:NYSE), which I’m sure some of your readers are familiar with. But, importantly, he was the national mining leader of PricewaterhouseCooper for a quarter of a century. Paul’s experience in leading the audit committee team in financing projects, he’s an amazing person for that.
And lastly, we have a Swiss national named Ashwath Mehra who is a fantastic guy, and readers probably remember GT Gold, which Newmont purchased for $311 million about two years ago. Ashwath founded that company, brought it forward, and led the sale to Newmont. So, success breeds success, and we’re happy to have him involved on our management team.
We have a big management team. Allow me to begin with myself, I’m the executive chairman of the board of directors, meaning I’m involved in management. Omar Ossma is the president and CEO of the company. Omar is a Colombian, accomplished, and very smart lawyer trained and based in Colombia.
One of the things we wanted to do this time around is to make sure that the President and CEO must have boots on the ground on a full-time basis because the challenges that a company will face will be in the host country in which you operate.
We have an executive vice president named Ana Milena Vásquez, who is recognized as one of the top 100 most influential women in mining, by a prominent UK organization in 2020. And more importantly, she is a sustainability expert as well as government relations. So, ESG is synonymous with Ana and she’s a very powerful force representing our company.
Paul Begin is our chief financial officer. He was the chief financial officer for almost the entire evolution of Continental Gold, so been there, done that, and helped finance and build our former mine Buriticá.
Lastly, I’ll mention two names, two special advisors to the company from a technical perspective. David Reading, David is an internationally recognized economic geologist. Importantly, he was the founding partner of Mark Bristow for Randgold, which is now part of Barrick, to create the largest gold company. And David was instrumental in making multiple multimillion ounce discoveries in West Africa as the team leader of the exploration team of Randgold.
Then lastly, we have another special advisor named Richard Tosdal, better known as Dick. In our view, this is one of the world’s top porphyry experts. I mentioned to you that we have a porphyry complex. We always make sure we bring the best technical talent to the geology end of it to ensure we have the best chance of success and having Dick’s leadership is paramount. That oversees our Colombian team. We have a strong group of vice presidents.
Carlos Rios is our vice president of exploration. This is a geologist who thinks like a business person and has a resource modeling background, not just a pure explorationist. Rodolfo Higuera is our vice president of sustainability, he is responsible for ensuring that on the ground, where we operate, our relationship with all the area of influence communities is sound and solid, and they’re transparently educated on what we’re doing and able to speak. We want to remain in good standing with the communities, and this is key to the platform. Transparency is paramount for our success.
Maurice: Well, let’s get into some numbers. Mr. Sussman, please provide the capital structure for Collective Mining.
Ari Sussman: Collective Mining has approximately 47 million shares outstanding and slightly more than 50 million fully diluted. No warrants are outstanding from any financings. The difference between the outstanding and fully diluted is simply stock options to employees, which everyone will hold long-term.
We are well-financed, meaning we’re fully financed for the calendar year, 2022. And that’s financed for a 20,000 to 25,000-meter diamond drill program. We are going to spend $13.5 million this year, and then we will need money to advance the plans for 2023. That’s something we will look to do toward the end of the year, is to raise additional capital. And that will be done on the back of what we hope is going to be a significant success from drilling at Olympus and Apollo.
Maurice: And how much debt do you have?
Ari Sussman: We have no debt. So we’re very clean. There’s no intent to take on any debt for a very long time. The only time I would ever consider debt is if it’s part of a financing package to construct an actual mine.
Maurice: What percentage of ownership does management have and who are the major shareholders?
Ari Sussman: Management controls approximately 40% of the 47 million shares that are outstanding. We put our money where our mouth is. Management intends to do well as we have confidence that our share price will appreciate, not by drawing exorbitant salaries out of the company to maintain a lifestyle. In addition to that, we have very strong support from a group named PowerOne Capital, who was intimately involved with me at my predecessor company, as well as today.
They are long-term shareholders and they own about 25%. We don’t expect their stock to ever come out into the market and be sold. I can confidently say that the founding partner of PowerOne Capital group invested in Continental Gold previously, held his stock through our sale, to Zijin Mining, and participated in all financing rounds along the way. If you invest with us, you not only have our money where our mouth is, so to speak, because we’re very large shareholders of the company, but you will see management and strong supporters participate in subsequent financings that come as we evolve the business and advance.
Maurice: Well, that 40% ownership is very positive. That’s not common.
Ari Sussman: I would agree with you that 40% ownership is not common.
Maurice: I’m used to hearing about 10%.
Ari Sussman: Collective Mining is a tightly held stock. This is an ideal and more advantageous position for retail investors at this point, more than the institutions. Junior Mining companies, have to do a series of financings over the next number of years to get from today to a production decision. And so, the stock float will loosen up in time and that’s by design because we want to make sure we have a structure that works in the market today and can withstand downturns in the cyclical business we’re in, but will also benefit us in the future as we evolve and leave.
The whole point is to get the share price up as high as possible, and hopefully sold, based on the success of the company. And we don’t want to ever be in the position where we’re in a financing spiral where the market cap grows, but the share price doesn’t. Many mining companies seem to fit that bill, unfortunately, we don’t plan to subscribe to that business model.
Maurice: In closing, what keeps you up at night that we don’t know about?
Ari Sussman: Well, it keeps me up at night. It’s 100% making sure that we maintain the strong sustainability-based program and meaningful relationships with the local communities that we currently enjoy. It’s making sure that we apply our collective model properly so that it is collective for everyone. Everybody needs to jointly benefit together in our success, as well as take the risk with the project. If you want the upside, you have to be involved in the risk too.
Maurice: Last question. What did I forget to ask?
Ari Sussman: I just want to remind readers that Collective Mining expects strong news flow with lots of drilling activity. We are a discovery-based company with already significant results under our belt, and I hope everyone either tries to participate by buying shares, or at least watches us continue to put out news, and hopefully, we’ll end up convincing the naysayers in a short time with what we have in the ground.
Maurice: And for the record, I am a proud shareholder. Mr. Sussman, for someone who wants to learn more about Collective Mining, please share the website address.
Maurice: Mr. Sussman, it’s been a pleasure speaking with you today, wishing you and Collective Mining, the absolute best, sir.
And as a reminder, I am a licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum, palladium, and rhodium, to offshore depositories, and precious metals IRA’s. Give me a call at 855.505.1900 or you may email: Maurice@MilesFranklin.com. Finally, please subscribe to www.provenandprobable.com, where we provide: Mining Insights and Bullion Sales, subscription is free.
Dr. Amy Wax recently appeared on Tucker Carson’s show, in which she called India a shithole. In the following talk with RBM, I disagree. India is a rotting, bubbling shithole that is rapidly falling apart under the rule of a thoroughly incompetent, crooked, and venal bunch of politicians and bureaucrats, who are backed by tribal, superstitious masses:
These days, on a daily basis people get arrested in India for posting anything negative about Modi, the PM of India. A friend, a freedom-fighter, and the National Vice President of Swatantra Bharat Party, the only libertarian party in India, Sanjay Garg, has been arrested without bail by the Indian government apparently for his social media posts. He has been deemed to be such a terrorist that the police report has not been made public.
On Investments
GCM Mining Warrant (GCM.WT.B; C$1.83) has fallen significantly over the last few weeks, perhaps because of the fear to do with the likelihood that the next president of Colombia might be a leftist. While this might happen, my view is that the market valuation of the company is sufficiently underpinned by its project in Guyana and the stock investments it has. Its investments with a marked-to-the-market value on 31st March 2022 of C$160 million have gone up by about 15%, something the market has perhaps forgotten to take note of. The Colombian project continues to make a good profit, which enables a 4.5% dividend yield.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
VANCOUVER, BC / ACCESSWIRE / June 9, 2022 / Sandy MacDougall, CEO of Noram Lithium Corp. (“Noram” or the “Company“) (TSXV:NRM | OTCQB:NRVTF | Frankfurt:N7R) is pleased to announce the successful completion of CVZ-77 (PH-04) and CVZ-78 (PH-11) and release of the final assay results. The Company completed core hole CVZ-77 at a depth of 458 feet (139.6 m). Sampling for assays began at 20 ft (6.1 m) and continued to the bottom of the hole, an interval thickness of 240 ft (73.2 m) was intersected from 48 ft (14.6 m) to 288 ft (87.8 m). The weighted average lithium values present are summarized below with a high of 2140 ppm. The Company completed core hole CVZ-78 at a depth of 451.5 feet (137.6 m). Sampling for assays began at 26.8 ft (8.2 m) and continued to the bottom of the hole, an interval thickness of 231.3 ft (70.5 m) was intersected from 26.8 ft (8.2 m) to 258 ft (78.6 m). The weighted average lithium values present are summarized below with a high of 2100 ppm present.
Noram Lithium Corp., Thursday, June 9, 2022, Press release picture
Noram Lithium Corp., Thursday, June 9, 2022, Press release picture
Figure 1 – Location of all past drill holes (Phase I to Phase V) previously completed in addition to the 12 proposed holes for Phase V1. Phase VI holes are indicated in purple.
Noram Lithium Corp., Thursday, June 9, 2022, Press release picture
Figure 2. Comparative stratigraphy and assay results for drill holes CVZ-77 and CVZ-78 as compared to CVZ-65 which was drilled as part of a prior program. The histogram on the sides of the holes are the composited lithium grades in ppm Li. The cross section has a 4X vertical exaggeration.
“As we continue to receive results that meet and/or surpass our expectations, our level of confidence in the resource model continues to increase. This program is providing us with vital information that will allow us to upgrade a significant portion of the resource from the Inferred Category to the Indicated Category. We could not be more proud of the team we have diligently advancing the Project. Noram management is focused on enhancing shareholder value as we continue to develop the resource” comments Brad Peek, VP of Exploration and geologist on all six phases of Noram’s Clayton Valley exploration drilling.
Hole ID
Sample No.
From (ft)
To (ft)
From (m)
To (m)
Li (ppm)
CVZ-77
1748459
20
28
6.1
8.5
610
CVZ-77
1748460
28
38
8.5
11.6
850
CVZ-77
1748461
38
48
11.6
14.6
870
CVZ-77
1748462
48
58
14.6
17.7
1010
CVZ-77
1748463
58
68
17.7
20.7
840
CVZ-77
1748464
68
78
20.7
23.8
910
CVZ-77
1748465
78
88
23.8
26.8
840
CVZ-77
1748466
88
98
26.8
29.9
940
CVZ-77
1748467
98
108
29.9
32.9
600
CVZ-77
1748468
108
118
32.9
36.0
1160
CVZ-77
1748469
118
128
36.0
39.0
980
CVZ-77
1748471
128
138
39.0
42.1
1540
CVZ-77
1748472
138
148
42.1
45.1
1340
CVZ-77
1748473
148
158
45.1
48.2
1400
CVZ-77
1748474
158
168
48.2
51.2
1510
CVZ-77
1748475
168
178
51.2
54.3
1860
CVZ-77
1748476
178
188
54.3
57.3
2140
CVZ-77
1748477
188
198
57.3
60.4
1300
CVZ-77
1748478
198
208
60.4
63.4
1290
CVZ-77
1748479
208
218
63.4
66.4
1450
CVZ-77
1748480
218
228
66.4
69.5
1630
CVZ-77
1748481
228
238
69.5
72.5
1250
CVZ-77
1748482
238
248
72.5
75.6
1060
CVZ-77
1748483
248
258
75.6
78.6
1080
CVZ-77
1748484
258
268
78.6
81.7
950
CVZ-77
1748485
268
278
81.7
84.7
1020
CVZ-77
1748486
278
288
84.7
87.8
990
CVZ-77
1748487
288
298
87.8
90.8
790
CVZ-77
1748488
298
308
90.8
93.9
620
CVZ-77
1748489
308
318
93.9
96.9
870
CVZ-77
1748490
318
328
96.9
100.0
760
CVZ-77
1748491
328
338
100.0
103.0
430
CVZ-77
1748492
338
348
103.0
106.1
610
CVZ-77
1748493
348
358
106.1
109.1
550
CVZ-77
1748494
358
368
109.1
112.2
550
CVZ-77
1748495
368
378
112.2
115.2
720
CVZ-77
1748496
378
388
115.2
118.3
540
CVZ-77
1748497
388
398
118.3
121.3
790
CVZ-77
1748498
398
408
121.3
124.4
780
CVZ-77
1748499
408
418
124.4
127.4
600
CVZ-77
1748500
418
428
127.4
130.5
550
CVZ-77
1748501
428
438
130.5
133.5
500
CVZ-77
1748502
438
448
133.5
136.6
379
Table 1 – Sample results from CVZ-77 from 20 ft (6.1 m) to depth of 448 ft (136.6 m).
Hole ID
Sample No.
From (ft)
To (ft)
From (m)
To (m)
Li (ppm)
CVZ-78
1748508
26.75
37.25
8.2
11.4
920
CVZ-78
1748509
37.25
48
11.4
14.6
1090
CVZ-78
1748510
48
58
14.6
17.7
910
CVZ-78
1748511
58
68
17.7
20.7
910
CVZ-78
1748512
68
78
20.7
23.8
980
CVZ-78
1748513
78
88
23.8
26.8
2100
CVZ-78
1748514
88
98
26.8
29.9
1160
CVZ-78
1748515
98
108
29.9
32.9
1190
CVZ-78
1748516
108
118
32.9
36.0
1640
CVZ-78
1748517
118
128
36.0
39.0
1830
CVZ-78
1748518
128
138
39.0
42.1
1240
CVZ-78
1748519
138
148
42.1
45.1
1180
CVZ-78
1748520
148
158
45.1
48.2
1380
CVZ-78
1748521
158
168
48.2
51.2
1350
CVZ-78
1748522
168
178
51.2
54.3
1280
CVZ-78
1748523
178
188
54.3
57.3
1000
CVZ-78
1748524
188
198
57.3
60.4
1060
CVZ-78
1748525
198
208
60.4
63.4
910
CVZ-78
1748527
208
218
63.4
66.4
960
CVZ-78
1748528
218
228
66.4
69.5
1020
CVZ-78
1748529
228
238
69.5
72.5
830
CVZ-78
1748530
238
248
72.5
75.6
580
CVZ-78
1748531
248
258
75.6
78.6
1110
CVZ-78
1748532
258
268
78.6
81.7
790
CVZ-78
1748533
268
278
81.7
84.7
650
CVZ-78
1748534
278
288
84.7
87.8
750
CVZ-78
1748535
288
298
87.8
90.8
890
CVZ-78
1748536
298
308
90.8
93.9
680
CVZ-78
1748537
308
318
93.9
96.9
730
CVZ-78
1748538
318
328
96.9
100.0
930
CVZ-78
1748539
328
338
100.0
103.0
740
CVZ-78
1748540
338
348
103.0
106.1
720
CVZ-78
1748541
348
358
106.1
109.1
560
CVZ-78
1748542
358
368
109.1
112.2
490
CVZ-78
1748543
368
378
112.2
115.2
560
CVZ-78
1748544
378
388
115.2
118.3
560
CVZ-78
1748545
388
398
118.3
121.3
670
CVZ-78
1748546
398
408
121.3
124.4
660
CVZ-78
1748547
408
418
124.4
127.4
460
CVZ-78
1748548
418
428
127.4
130.5
460
CVZ-78
1748549
428
438
130.5
133.5
530
CVZ-78
1748550
438
447
133.5
136.2
388
CVZ-78
1748551
447
451.5
136.2
137.6
399
Table 2 – Sample results from CVZ-78 from 26.8 ft (8.2 m) to depth of 451.5 ft (137.6 m).
All samples were analyzed by the ALS laboratory in Reno, Nevada. QA/QC samples were included in the sample batch and returned values that were within their expected ranges.
The technical information contained in this news release has been reviewed and approved by Brad Peek., M.Sc., CPG, who is a Qualified Person with respect to Noram’s Clayton Valley Lithium Project as defined under National Instrument 43-101.
About Noram Lithium Corp.
Noram Lithium Corp. (TSXV:NRM | OTCQB:NRVTF | Frankfurt:N7R) is a well-financed Canadian based advanced Lithium development stage company with less than 90 million shares issued and a fully funded treasury. Noram is aggressively advancing its Zeus Lithium Project in Nevada from the development-stage level through the completion of a Pre-Feasibility Study in 2022.
The Company’s flagship asset is the Zeus Lithium Project (“Zeus”), located in Clayton Valley, Nevada. The Zeus Project contains a current 43-101 measured and indicated resource estimate* of 363 million tonnes grading 923 ppm lithium, and an inferred resource of 827 million tonnes grading 884 ppm lithium utilizing a 400 ppm Li cut-off. In December 2021, a robust PEA** indicated an After-Tax NPV(8) of US$1.3 Billion and IRR of 31% using US$9,500/tonne Lithium Carbonate Equivalent (LCE). Using the LCE long term forecast of US$14,000/tonne, the PEA indicates an NPV (8%) of approximately US$2.6 Billion and an IRR of 52% at US$14,250/tonne LCE.
Sandy MacDougall Chief Executive Officer and Director C: 778.999.2159
For additional information please contact: Peter A. Ball President and Chief Operating Officer peter@noramlithiumcorp.com C: 778.344.4653
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. This news release may contain forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the completion transactions completed in the Agreement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, regulatory approval processes. Although Noram believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Noram disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws. *Updated Lithium Mineral Resource Estimate, Zeus Project, Clayton Valley, Esmeralda County, Nevada, USA (August 2021) **Preliminary Economic Assessment Zeus Project, ABH Engineering (December 2021).
Vancouver, British Columbia–(Newsfile Corp. – June 9, 2022) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce that it will receive a royalty payment of approximately US$2.7 million (pre-tax) from the Company’s effective 0.7335% net smelter return royalty (“NSR“) interest covering the Caserones Copper-Molybdenum Mine (“Caserones“) in Chile. This royalty payment distribution to EMX, anticipated later this month, is based upon first quarter (“Q1”) (i.e., January-March, 2022) copper and molybdenum production.
EMX initially acquired a 0.418% NSR royalty interest on Caserones in 2021 and acquired an additional 0.3155% NSR royalty interest in April of this year, bringing the Company’s total (effective) NSR royalty interest to 0.7335% (see EMX news release dated April 14, 2022). Although the recent royalty purchase was completed after the end of Q1, the agreement contained provisions for EMX to receive the Q1 distributions for the newly acquired interest. This new royalty interest (0.3155% NSR) accounted for US$1.2 million of the US$2.7 million (pre-tax) Q1 total. The higher-than-expected Q1 royalty distributions reflect strong copper prices and robust production throughput at higher grades.
In addition to Caserones, EMX receives production royalty payments from its Leeville royalty in Nevada, and expects addition cash flow in 2022 from the Cukaru Peki Mine in the Bor Mining District in Serbia, as well as the Gediktepe and Bayla royalty properties in Turkey. Together, these interests provide commodity diversity that includes base metals (i.e., copper, molybdenum, lead, and zinc) and precious metals (i.e., gold and silver) in key mining districts of Chile, the U.S., Serbia, and Turkey.
Since the acquisition of the initial royalty interest at Caserones, royalty distributions to EMX total US$6.3 million (pre-tax). This has provided meaningful positive cash flow in a very short time (four quarters). This performance reflects the quality of Caserones as a cornerstone Company asset that resulted from EMX’s royalty acquisition initiatives.
EMX has a unique approach to the royalty business which is based upon a combination of royalty purchases, sustainable organic royalty growth, and strategic investments. Royalties are financial instruments that grow in value via ongoing investments by operators, and at no expense to royalty holders. This upside optionality occurs throughout the life cycle of a royalty as further exploration leads to resource and reserve growth, while technological and engineering advancements lead to more efficient mining, all to the benefit of royalty holders. As inflation fears have roiled global financial markets in 2022, this is a time when royalties stand out the most, with no exposure to exploration, production, and development cost increases yet full exposure to commodity price inflation. As a result, royalties are a key hedge that will become increasingly important as the current inflationary cycle plays out.
Caserones Overview. The Caserones open pit mine is developed on a significant porphyry copper-molybdenum deposit in the Atacama Region of northern Chile’s Andean Cordillera, 162 kilometers southeast of the city of Copiapó. The mine has been in operation since 2014, and is owned and operated by SCM Minera Lumina Copper Chile SpA (“Minera Lumina”), which is 100% indirectly owned by JX Nippon Mining & Metals Corporation of Japan.
Caserones produces copper and molybdenum concentrates from a conventional crusher, mill and flotation plant, as well as copper cathodes from a dump leach, solvent extraction and electrowinning plant. The mine produced 94,846 tonnes of fine copper in concentrate, 2,287 tonnes of fine molybdenum in concentrate, and 14,829 tonnes of fine copper in cathodes in 20211.
In addition to currently defined zones of mineralization, considerable exploration upside exists on the Caserones property, and exploration for additional resources has been ongoing and continues at present.
Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed, verified, and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt Stock Exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 973-8585 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) 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 completion of the transaction, perceived merits 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”, “upside” 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. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
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 March 31, 2022 (the “MD&A”), and the most recently filed Annual Information Form (the “AIF”) for the year ended December 31, 2021, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF 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.
VANCOUVER, BC / ACCESSWIRE / June 9, 2022 / Metallic Minerals (TSX.V:MMG)(OTCQB:MMNGF) (“Metallic Minerals“, or the “Company“) is pleased to report that it has closed its previously announced non-brokered private placement financing for aggregate proceeds of $4,032,000 through the issuance of 9,600,000 units at a price of $0.42 per flow-through unit (the “Private Placement”). Each Unit consists of one flow-through common share and one-half purchase warrant where each whole warrant is exercisable into a flow-through common share for 30 months at a price of $0.50 on the TSX Venture Exchange (“TSX-V”).
Greg Johnson, CEO and Chairman, noted, “We are pleased to complete this premium-to-market Private Placement and to strengthen our shareholder base with new institutional investors. These new funds will be primarily directed toward the ongoing exploration and development of our Keno Silver Project in the high-grade, Keno silver district of Canada’s Yukon Territory. Final planning is underway for the initiation of our 2022 exploration programs at Keno Silver, as well as at our La Plata silver-gold-copper project in Colorado, USA. We look forward to meeting with existing and potential shareholders during PDAC 2022 in Toronto June 13-15, as well as during the Yukon Property Tours and Conference June 20-24 in Dawson City.”
Proceeds from the Private Placement will be used toward eligible Canadian Exploration Expenses, within the meaning of the Income Tax Act (Canada). The Private Placement is subject to the final approval of the TSX-V. The flow-through shares will be subject to a hold period of four months and one day from their date of issuance under applicable Canadian securities law.
The flow-through shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
An officer of the Company participated in the private placement for an aggregate of 4,400 FT Units. The participation by the insider in the private placement is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid exceeds 25% of the Company’s market capitalization.
Upcoming Events
PDAC 2022 – Metallic will join fellow Metallic Group members, Stillwater Critical Minerals (formerly Group Ten Metals) and Granite Creek Copper, at PDAC in Toronto, June 13-15 (Booth IE2851).
Yukon Property Tours & Conference – Metallic will be in Dawson City June 20-24 for the 2022 Yukon Property Tours, with President, Scott Petsel, and CEO, Greg Johnson, both visiting the Keno Silver Project for exploration planning.
About Metallic Minerals
Metallic Minerals Corp. is an exploration and development stage company, focused on silver, gold and copper in the high-grade Keno Hill and La Plata mining districts of North America. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources and advancing projects toward development. Metallic Minerals has consolidated the second-largest land position in the historic Keno Hill silver district of Canada’s Yukon Territory, directly adjacent to Alexco Resource Corp’s operations, with more than 300 million ounces of high-grade silver in past production and current M&I resources. In addition, the Company recently announced the inaugural resource estimate for the La Plata silver-gold-copper project in southwestern Colorado. All of the districts in which the Company works have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration and development companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Granite Creek Copper in the Yukon’s Minto copper district, and Stillwater Critical Minerals (formerly Group Ten Metals) in the Stillwater PGM-nickel-copper district of Montana, USA and Kluane district in the Yukon. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration and development using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. Members of the Metallic Group have been recognized as recipients of awards for excellence in environmental stewardship demonstrating commitment to responsible resource development and appropriate ESG practices. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTCQB and Frankfurt stock exchanges.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although 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, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on 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.
