JERICHO OIL
The Rodney Dangerfield of the Junior Oil & Gas Sector
In my humble opinion… Jericho Oil (JCO) is one of the least respected and most misunderstood companies in the Junior Oil & Gas Sector. Let’s learn and have a few laughs along the way.
I asked my old man if I could go ice skating on the lake. He told me wait till it gets warmer.
A barrel of Crude Oil a few years ago was cheaper than a bucket of Kentucky Fried Chicken. I kid you not!!! Those days are over. Oil has more than doubled and is hovering around $65. This means ever increasing profits in upcoming quarters, which should significantly boost share price.
I TELL YA THEY GET NO RESPECT!!!
I told my doctor I swallowed a bottle of sleeping pills. He told me to have a few drinks and get some rest.
Jericho Oil’s share price is CAD 52 cents, almost at its 52-week low and off over 60% from its yearly high. With oil prices rising significantly this year… something is definitely wrong with this picture.
I TELL YA THEY GET NO RESPECT!!
This morning when I put on my underwear, I could hear the Fruit of the Loom guys laughing at me.
Invest with the smart money…Jericho has world-class, patient shareholders (cornerstone investors include the Breen [Ed Breen, CEO, DowDuPont] and Belzberg families…(google them, very savvy investors and business titans). They got in at the company’s inception and provided all important strong equity financing support during the lean years 2015-2017 when others were fleeing the market. Follow the smart money. Money begets money !!!
I TELL YA – HE GETS NO RESPECT!!!
My wife made me join the Bridge Club … I jump off next Tuesday.
The stock is very tightly held…JCO insiders hold ≈ 46% of the 128 Million of the issued and outstanding shares. The top 10 investors own ≈ 70% of the company and are in it to win it !!!
I TELL YA – HE GETS NO RESPECT!!!
I could tell my parents hated me. My bath toys were a toaster and a radio.
Jericho with zero net debt, JCO had the cash and foresight during the downturn to acquire a very high-quality portfolio of assets from distressed sellers… at the bottom of the market. Today JCO owns and operates ≈55,000 net acres in Oklahoma… including an interest in ≈16,000 in the prolific STACK Play, which was acquired well below the current market prices.
I TELL YOU THIS COMPANY GETS NO RESPECT!!!
I looked up my family tree and found 3 dogs using it.
JCO is laser focused. Its assets are all within close radius in Oklahoma Basin and its team of experts are all based locally, which will keep costs down significantly as the company grows.
Last week I told my psychiatrist “I keep thinking about suicide”. He told me from now on you have to pay in advance.
Jericho Oil operates in a very pro-oil, pro-growth jurisdiction—Oklahoma is ranked as one of the top 2 jurisdictions globally for oil and gas investment (source: Fraser Institute). As Texas oil fields dry up the smart money is heading north to Oklahoma.
I TELL YA – WE GET NO RESPECT!!!
What a childhood I had, when I took my first steps my old man tripped me.
Oil is here to stay- Elon Musk and his exploding cars assures that? The World runs on Oil and JCO has it in spades. Oil is the lubricant that keeps the World Economy humming. Problems in Venezuela and many Middle Eastern nations assure the prosperity and popularity of US Crude Oil and any company with land packages in oil rich Mid -America will thrive for years to come.
I TELL YA THIS COMPANY GETS NO RESPECT!!!
My wife and I were happy for 20 years. Then we met!!!
Management is young, experienced and most importantly extremely business savvy as witnessed by the scooping up of tremendous assets at fire sale prices. CEO Brian Williamson sheepishly proclaimed “Never let a good crisis go to waste.” That my friends and fellow investors, is how fortunes are made !!!
In closing … I hope his article made you smile and perhaps laugh out loud. Trust me – I’m serious as a heart attack when I say this investment game is really no laughing matter. We have been through close to 15 years of a bull market in Tech and Fortune-100 stocks. It is high time to position yourself in high quality junior resource stocks which should boom when money flows into this neglected sector. It sure seems the Dow Jones bull is on its last legs and ran its course.
While I am relatively new to the Oil and Gas sector after years investing in Gold and Silver Miners. The same investment principles hold true. Buy Low…Sell High. Sounds simple but 90% of investors can’t seem to embrace that concept. You must be a contrarian investor and seek out the unloved and undervalued companies. The cream always rises to the top… In my humble opinion Jericho Oil fits this to a tee.
Oklahoma is nicknamed the “Sooner State”. I suggest you get into JCO sooner than later ?. Jesse Livermore considered the greatest stock trader of all-time wisely advised “Buy Right & Sit Tight”.
Symbol JCO- Can
JROOF- OTC
Share Price 52 cents Can
Market Cap $ 67 Million
Shares Outstanding 128 M
52 week Low/High .49-$1.38
VANCOUVER, Nov. 5, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE, NYSE:NXE) is pleased to announce the results of an independent Pre-Feasibility Study (“PFS” or the “Study”) and Mineral Resource update of the basement-hosted Arrow Deposit, located on the Company’s 100% owned Rook I project (“Arrow” or the “Project”) in the Athabasca Basin in Saskatchewan, Canada. The PFS was completed jointly by Wood Group, and Roscoe Postle Associates Inc. (“RPA”), with other technical inputs completed by sub-consultants.
Pre-Feasibility Study Highlights
Table 1 – Summary of Arrow Deposit Pre-Feasibility Study (based on US $50/lb U3O8)
PEA (July 31, 2017)
PFS
Variance
After-Tax Net Present Value (8% discount)
CAD $3.49 Billion
CAD $3.7 Billion
+6%
After-Tax Internal Rate of Return (IRR)
56.7%
56.8%
–
After-Tax Payback
1.1 Years
1.2 Years
+9%
Initial Capital Costs (“CAPEX”)
CAD $1.19 Billion
CAD $1.25 Billion
+5%
Average Annual Production (Life of Mine)
18.5 M lbs U3O8
25.4 M lbs U3O8
+37%
Average Annual Production (Years 1-5)
27.6 M lbs U3O8
29.0 M lbs U3O8
+5%
Average Daily Throughput
1,448 tonnes per day
1,039 tonnes per day
-28%
Average Annual Grade
1.73% U3O8
3.09% U3O8
+79%
Mine Life
15 Years
9 Years
-6 years
Average Annual After -Tax Net Cash Flow
(Life of Mine)
CAD $553 Million
CAD $909 Million
+64%
Average Annual Operating Cost (“OPEX”,
Life of Mine)
CAD $8.37
(US $6.70)/lb U3O8
CAD $ 5.81
(US $4.36)/lb U3O8
-31%
Operating Margins (Life of Mine)
85.5%
90.6%
+6%
Note:PEA based on CAD $1.00 = US $0.80, PFS based on CAD $1.00 = US $0.75
CAPEX – Increased due to the introduction of Provincial Sales Tax (PST) applicable to capital projects. Excluding PST, initial capital costs reduced by approximately CAD $64 Million to CAD $1.18 Billion (0.5% lower than PEA). Additionally, due to the reallocation of tailings management to operating costs, the sustaining capital component of capital expenditures has been significantly reduced.
Mine Life – PFS is based on Indicated Resources only and does not include the current additional Inferred Resources 91.70 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8 or further potential increases in the resource base at Arrow that remains open in many directions (Figure 1).
Leigh Curyer, Chief Executive Officer, commented: “An assessment across all of the PFS metrics, results in a substantial improvement to the PEA with a 64% increase in average annual after tax net cash flow. Incorporating only the Indicated Mineral Resource, the life of mine drops from 15 to 9 years, yet the increase in average annual grade – whilst maintaining a consistent capex and lower opex – results in an after tax NPV of $3.7BN. In addition, the 43% increase in Indicated Mineral Resource growth during 2017 demonstrates with closer spaced drilling, Arrow improves and optimizes mine production plans.
With these strong PFS results, the Company is expediting Arrow to Feasibility by initiating a 2 stage 125,000m (10 rig) high density drilling program. This will be the largest drilling, geotechnical and hydrogeological focused program in the history of NexGen. Preparations are well underway with the program brought forward and scheduled to commence in early December 2018.
I would like to take the opportunity to congratulate the entire NexGen team, key consultants, local communities and Government departments for their outstanding commitment and execution of Arrow’s development.”
Conference Call
NexGen will host a conference call today, Monday November 5, 2018 at 11.00 AM Eastern Standard Time.
To join the call please dial (+1) 416 764 8688 (local/international) or (+1) 888 390 0546 (North America toll free) with passcode 49399985 and an operator will assist.
A recorded version of the proceedings will be available on NexGen’s website (www.nexgenenergy.ca) shortly after the conference. The playback numbers are (+1) 416 764 8677 (local/international) and (+1) 888 390 0541 (North America toll free) and the playback passcode is 399985 #. The playback will be available until Tuesday, February 05, 2019.
Table 2 – PFS Sensitivity to Uranium Price
Uranium Price ($ USD/lb U3O8)
After-Tax NPV8
After-Tax IRR
After-Tax Cash Pay Back
$80/lb U3O8
CAD $6.62 Billion
80.4%
0.8 Years
$60/lb U3O8
CAD $4.65 Billion
65.5%
1.0 Years
$50/lb U3O8
CAD $3.66 Billion
56.8%
1.2 Years
$40/lb U3O8
CAD $2.67 Billion
46.9%
1.5 Years
$30/lb U3O8
CAD $1.69 Billion
35.6%
1.9 Years
$25/lb U3O8
CAD $1.19 Billion
28.9%
2.3 Years
Key Updates of the 2018 PFS from the 2017 PEA
Reduction in CAPEX due to a reduced mine footprint as a result of higher head grades and also the reallocation of the underground tailings to operating costs. If the recently introduced PST is ignored for an apples-to-apples comparison on capital cost estimates from the PEA to the PFS, the PFS capital cost would be even lower.
31% reduction in average annual OPEX to CAD $5.81/lb U3O8(from CAD $8.37/lb U3O8) despite the PFS recategorizing the underground tailings to OPEX instead of sustaining capital as per the PEA. These costs account for 21% of OPEX.
43% increase in Indicated Mineral Resources from 179.5 M lb of U3O8 contained in 1.18 M tonnes grading 6.88% U3O8 from the March 2017 Mineral Resource estimate to 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8.
Average Annual Production increase from 18.5 M lbs U308 in the PEA to 25.4M lbs U308 due to higher head grades increasing from 1.73% U308 in the PEA to 3.09 % U3O8 in the PFS.
Average mining rate decrease from 1,448 tonnes per day to 1,039 tonnes per day.
Metallurgical pilot plant and bench scale testing optimized recovery resulting in increased total processing recovery rate to 97.6% versus 96.0% in the PEA.
Metallurgical process was updated resulting in ammonia being eliminated entirely from the process which strengthens the environmental performance of the envisioned Rook I Project.
Metallurgical paste-fill test work confirmed proof of concept for uranium tailings to be used for cemented paste backfill underground.
Lateral development reduced from 78,805 metres to 39,908 meters due to a reduced mine footprint.
Vertical development was reduced from 3,832 in the PEA to 3,059 due to the elimination of a fresh air raise which has been redesigned and combined with the primary production shaft.
Mineral Resources
The Arrow Deposit Mineral Resource estimate was updated, and the Indicated Mineral Resources form the basis for the PFS. The Indicated portion of the resource has increased by 43% from the previous resource estimate (see News Release dated: March 6, 2017). The updated estimate comprises an Indicated Mineral Resource of 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8, including the A2 High Grade Core of 181.0 M lbs of U3O8 contained in 0.46 M tonnes grading 17.85% U3O8 and an Inferred Mineral Resource of 91.7 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8.
The tonnes, grades, and classification of the Mineral Reserves defined in the PFS mine design are summarized below in Table 4.
Table 3 – Arrow Mineral Resource Estimate
March 2017 Arrow Mineral Resource Estimate
2018 Arrow Mineral Resource Estimate
Diff. Between Arrow 2018 & 2017 Mineral Resource Estimate
Structure
Tonnage (Tonnes)
Grade (U3O8%)
Metal
U3O8
(U3O8 lb)
Tonnage (Tonnes)
Grade (U3O8%)
Metal U3O8 (U3O8 lb)
Tonnage (Tonnes)
Grade (U3O8%)
Metal
U3O8
(U3O8 lb)
Indicated Mineral Resources
A2
790,000
0.84
14,500,000
1,240,000
0.79
21,700,000
450,000
(0.05)
7,200,000
A2 HG
400,000
18.87
164,900,000
460,000
17.85
181,000,000
60,000
(1.02)
16,100,000
A3
No Indicated in 2017
1,010,000
0.70
15,500,000
1,010,000
0.70
15,500,000
A3 HG
No Indicated in 2017
180,000
9.68
38,400,000
180,000
9.68
38,400,000
Total:
1,180,000
6.88
179,500,000
2,890,000
4.03
256,600,000
1,700,000
(2.85)
77,200,000
Inferred Mineral Resources
A1
860,000
0.75
14,300,000
1,510,000
0.72
23,900,000
650,000
(0.04)
9,600,000
A2
1,100,000
0.76
18,500,000
1,290,000
0.70
19,900,000
190,000
(0.06)
1,400,000
A2 HG
30,000
13.00
8,600,000
5,000
12.70
1,400,000
(25,000)
(0.30)
(7,200,000)
A3
1,460,000
1.16
37,300,000
1,230,000
1.11
30,000,000
(230,000)
(0.05)
(7,300,000)
A3 HG
150,000
8.53
28,200,000
1,000
9.07
200,000
(149,000)
0.54
(28,000,000)
A4
550,000
1.06
12,900,000
800,000
0.92
16,300,000
250,000
(0.14)
3,400,000
180
110,000
0.95
2,300,000
Combined into A3 & A4
(110,000)
(0.95)
(2,300,000)
Total:
4,260,000
1.30
122,100,000
4,840,000
0.86
91,700,000
580,000
(0.44)
(30,400,000)
Notes:
1.
CIM Definition Standards were followed for Mineral Resources, Mineral Resources are reported inclusive of Mineral Reserves.
2.
Mineral Resources are reported at a cut-off grade of 0.25% U3O8 based on a long-term price of US$50 per lb U3O8and estimated costs.
3.
A minimum mining width of 1.0 m was used, with a Mineral Resource effective date of May 25th, 2018.
4.
Numbers may not add due to rounding.
5.
Mineral Resources that are not Mineral Reserves do not have demonstrated economics.
Mineral Reserves
The PFS defines Probable Mineral Reserves of 234.1 M lbs of U3O8 contained in 3.43 Mtonnes grading 3.09% U3O8 from the Indicated Mineral Resources. The Probable Mineral Reserves include diluting materials and allowances for losses which may occur when material is mined.
Table 4 – Arrow Probable Mineral Reserves
Probable Mineral Reserves
Structure
Tonnage (Tonnes)
Grade (U3O8%)
Metal U3O8 (U3O8 lb)
A2
2,057,600
4.13%
187,400,000
A3
1,375,500
1.54%
46,700,000
Total
3,433,100
3.09%
234,100,000
Notes:
1.
CIM definitions were followed for Mineral Reserves.
2.
Mineral Reserves are reported with an effective date of May 25, 2018.
3.
Mineral Reserves include transverse and longitudinal stopes, ore development, and incremental ore.
4.
Stopes and ore development were estimated at a cut-off grade of 0.25% U3O8.
5.
Incremental ore is material between 0.03% U3O8 and 0.25% U3O8 that must be extracted to access mining areas. 0.03% U3O8 is the limit for what is considered benign waste and material that must be treated and stockpiled in an engineered facility.
6.
No by-product credits have been included in the Mineral Reserve statement.
7.
Mineral Reserves are estimated using a long-term metal price of US$45 per pound U3O8, and a 0.75 US$/C$ exchange rate (C$1.00 = US$0.75).
8.
A minimum mining width of 3.0 m was applied for all longhole stopes.
9.
The density varies according to the U3O8 grade in the block model. Waste density is 2.464 t/m3.
10.
Numbers may not add due to rounding.
RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource or Mineral Reserve estimates.
Mine Plan and Production Profile
A detailed mine plan based on conventional long-hole stope mining was engineered using Indicated Mineral Resources only. Geotechnical studies during Pre-Feasibility supported the conventional longhole stoping mining method including the use of longitudinal and transverse stopes, 30 m level spacing, and the nominal stope strike length of 15 metres to 30 metres. This represents an excellent stope stability range for underground mining in highly competent conditions. The geometry of the Arrow Deposit enables decoupled production areas in both the A2 and A3, allowing flexibility of mine sequencing. The PFS production profile is underpinned by longhole stopes in the transverse orientation through A2 High Grade mineralization. Arcadis was engaged in the modeling and assessment of radiological effects of underground uranium mining, and they fully endorsed the proposed mining methods and overall plans. The ability to mine transverse longhole stopes through the A2 High Grade will support significant scheduling flexibility enabling NexGen to correlate supply quickly and inexpensively to market conditions.
Furthermore, given the competency and conditions of the underground environment, all waste streams from the process plant are planned to be stored underground.
The PFS mine plan, using a 0.25% U3O8 cut-off grade, includes Probable Mineral Reserves consisting of 234.1 M lbs of U3O8 contained in 3.43 M tonnes grading 3.09% U3O8 that will be extracted by underground mining in an initial nine (9) year mine life. The mine production schedule envisions a life of mine rate of 1,039 tonnes per day. The underground workings will be accessed by two shafts, the first supporting personnel movements, materials, ore, waste and fresh air. The production shaft will have divided compartments, ensuring that fresh air, and personnel entering the mine, remain isolated from ore being skipped to surface. The second shaft will be used for exhaust air and secondary egress. Mining extraction is estimated to be 95% of mineralized tonnes for both ore development and stopes. Planned dilution was included in the generation of the stope shapes, and additional backfill dilution (at zero grade) was included where appropriate. Overall rock dilution is estimated to be 31%, with additional backfill dilution applied on secondary stopes only. Figure 3 below presents the annual mining schedule based on set assumptions.
Processing and Underground Tailings Management Facility (“UGTMF”)
The PFS confirmed processing and production of Yellowcake from the Arrow Deposit with conventional processing technology. The main components of the processing plant are:
Grinding
Leaching
Liquid-Solid Separation via Counter Current Decantation
Solvent Extraction
Yellowcake Precipitation
Yellowcake Packaging
Paste Tailings Plant
A detailed metallurgical study resulted in process recovery increasing to 97.6% (versus 96% in the PEA). In addition, the ammonia strip process envisioned in the PEA was updated to an acid strip process in the PFS, resulting in the complete elimination of ammonia in the processing facility. Elimination of ammonia from the processing facility will ultimately lead to improved effluent discharge performance.
The Study also confirmed that all processed waste streams can be stored in an Underground Tailings Management Facility (“UGTMF”). The Study also confirmed the geotechnical design, size and sequencing of the UGTMF included in the PFS mine plan. The UGTMF will significantly reduce the surface footprint of the Project and represents continued and ongoing reclamation during operations, allowing for industry leading environmental sensitivity.
PFS test work confirmed paste fill strength meets or exceeds all requirements set in the original design for a potential Paste-Backfill to be used for underground stope stability. The Study confirmed the suitability of the tailings from Arrow Uranium Deposit for use as cemented paste backfill.
NexGen is committed to advancing the Project with innovative approaches to mine design, management and operation in order to deliver enhanced environmental, social and economic performance.
Capital Costs
A capital cost estimate (Class 4 – AACE International classification guidelines) was produced for the PFS. The pre-production CAPEX for the contemplated underground mine, process plant and supporting infrastructure at Arrow are estimated at CAD $1.247 billion with sustaining capital costs of CAD $262 million (including $48 Million for decommissioning). Wood and RPA estimated the capital costs based on a three-dimensional civil model, a mechanical equipment list, material takeoffs, vendor budget quotations on major and secondary equipment, and inputs from leading expert service providers who have experience in construction projects and cost estimation both in the Athabasca Basin and globally. Pre-production construction is envisioned to be complete in three (3) years, the construction phase will be supported by a labour force consisting of skilled labour, trades people, professionals and administration. The Study determined the total personnel hours required for pre-production construction is 3,557,000 hours. The CAPEX is summarized below in Table 5.
Table 5 – Summary of Capital Cost Estimates
PEA 2017
PFS 2018
Capital Cost Estimates ($ CAD Millions)
Pre-Production
Sustaining
Total
Pre-Production
Sustaining
Total
Variance
Mine
324
205
529
303
194
497
-6%
Process Plant, Infrastructure & Indirects
627
199
826
736
20
756
-9%
Decommissioning
0
64
64
0
48
48
-25%
Contingency
237
0
237
208
0
208
-12%
Total Capital Costs
1,188
468
1,656
1,247
262
1,509
-9%
Notes on Variances
Mine – Reduced mining extents due to increase in mining head grades as a result using Indicated Resources only.
Process Plant, Infrastructure & Indirects -Tailings management costs re-allocated to operating costs.
Decommissioning – Higher resolution on decommissioning costs.
Contingency – Increased confidence level of cost estimates.
Operating Costs
The OPEX estimate outperformed the PEA and is based on a shaft-accessed underground mine with a conventional longitudinal and transverse long-hole stope mining method, conventional processing facility and underground processed waste management facility. While in operation the PFS defines a required workforce of 491 persons, the expertise required ranges from skilled labour, equipment operators, mining professionals, technical professional, management and administrative. NexGen’s community-first approach ensures opportunities are prioritized within the local region. The OPEX is summarized below in Tables 6 and 8, and the per unit all-in sustaining cost is summarized in Table 7.
As of September 30, 2018, the Company had $133 million in the treasury which fully funds NexGen for the the upcoming and planned programs.
Immediate initiation of a 10 rig diamond drilling 2 stage program of 125,000 m focusing on conversion of Arrow Indicated Mineral Resources to Measured of 70,000 m aimed at conversion of Inferred to Indicated Mineral Resources; and 55,000 m to enable additional optimisation of mine production plans.
Continued UGTMF study to optimise tailings density and further reduce tailings volume.
The capital costs associated with the process plant and associated infrastructure will now undergo an evaluation to review opportunities for capital cost optimization.
Project schedule and timeline are also being reviewed to identify opportunities to advance the development.
Automation and electric mining equipment continue to evolve rapidly, and opportunities for inclusion are currently being pursued.
Detailed evaluation of alternative energy solutions which will further offset electricity costs and support NexGen’s environmental initiatives.
About NexGen
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017.
Technical Disclosure
The technical information in this news release with respect to the PFS has been reviewed and approved by Paul O’Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101“).
The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA and Mr. David Ross, P.Geo., Director of Resource Estimation and Principal Geologist at RPA. Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein. All other technical information in this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen. Mr. Boisjoli is a qualified person for the purposes of NI 43-101 and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.
A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of this news release.
SEC Standards
Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United Statesfederal securities laws and the rules and regulations thereunder.
Technical Information
For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Technical Report on the Preliminary Economic Assessment of the Arrow Deposit, Rook 1 Property, Province of Saskatchewan, Canada” dated effective September 1, 2017 (the “Rook 1 Technical Report”) prepared by Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G., David A. Ross M.Sc., P.Geo., Val Coetzee, M.Eng., Pr.Eng., and Mark Wittrup, M.Sc., P.Eng.,P.Geo. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at www.sedar.com. A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of this news release providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource.
Forward-Looking Information
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 31, 2017 under “Risk Factors”.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
Micro-cap oil explorer/producer Jericho Oil (TSX-V:JCO, OTC: JROOF) has spent the last three years assembling an impressive package of oil producing assets in Oklahoma. Jericho boasts a portfolio consisting of ~55,000 net acres in one of the hottest basins in the United States, including an interest in ~16,000 net acres in the STACK Play, one of the world’s top resource plays for horizontal development. While Jericho’s portfolio churns out nearly 1,000 barrels/day of oil production it’s the potential for growth through exploration where the real upside for Jericho shareholders exists.
In 2018 Jericho has been exploring more aggressively on its properties including drilling 3 STACK wells. Recently Jericho has begun talking about what it calls its “hidden gem”; Jericho’s “Osage Extension” play in northeast Oklahoma has company management very excited about the next few months. The Osage Extension is listed 3rd in Jericho’s “playbook” (its list of assets), however, this hidden gem could deliver substantial upside. Jericho has been studying the Osage Extension from a geological standpoint for many months and they are finally ready to drill it. Because the holes in the Osage Extension are shallower it will be cheaper to drill (sub-$3 million) than the STACK wells that Jericho has already completed this year.
Jericho feels that there is at least as much upside on its Osage Extension play and they will be tapping into this upside for roughly ½ the drilling cost of the STACK. The market has been focusing on Jericho’s STACK property package for much of 2018 and I believe most investors have forgotten about this hidden gem in the Osage Extension – it’s not something that Jericho has talked about a lot (because they were working to get a better understanding of it) and it’s not something which Jericho gives itself much reserve value for. That could change drastically over the next several months after Jericho begins drilling its hidden gem by the end of November.
The way to build a big oil company is through drilling and production growth. After spending 2 ½ years building a valuable portfolio of oil assets in Oklahoma (when oil prices were much lower than today’s US$67/barrel), Jericho is committed to unleashing the potential that these assets hold. JCO has begun to tap into this potential with its STACK wells and now the Osage Extension is next.
Jericho shares have strong support in the C$.50-$.55 area which roughly correlates to a US$50 million market cap (JCO has 128.6 million shares outstanding [~46% held by insiders]):
JCO.V (Daily)
As Jericho progresses with its growth plans I expect to see a move back up to the next area of resistance near C$.75 (almost 50% above current levels) followed by a rally back to all-time highs (C$1.38) reached earlier this year after Jericho announced initial results from its first STACK well.
The market loves exploration news, especially exploration news that indicates production growth. Jericho’s hidden gem might be about to deliver just what the market wants. Shrewd investors have the opportunity to use the recent market weakness which has resulted from a tumultuous broader market environment to pick up Jericho shares at support just before Jericho begins drilling its hidden gem.
Disclaimer
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Jericho Oil Corp. is a high-risk venture stock and not suitable for most investors.. Consult Jericho Oil Corp’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated to cover Jericho Oil Corp. and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
TORONTO, Oct. 30, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT) today announces that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standard of Disclosure for Mineral Projects for its 90% owned Wheeler River Project in Saskatchewantitled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 with an effective date of September 24, 2018.
The technical report is posted on the Company’s website at www.denisonmines.com and is available under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml. This report supports the disclosure made by the Company in its news release dated September 24, 2018 (the “News Release”) and there are no material differences contained in the technical report from the information previously disclosed in the News Release.
As outlined in the News Release, the PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits. The high-grade Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison’s 22.5% owned McClean Lake mill.
Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC’s (“UxC”) annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).
Using the same price assumed for the project’s 2016 Preliminary Economic Assessment (“2016 PEA”), a fixed uranium price of US$44/lb U3O8 (“PEA Reference Case”), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing roughly 275% of the $513 million pre-tax project NPV estimated in the 2016 PEA.
Pre-Feasibility Study Highlights
Phoenix delivers exceptional operating costs and manageable initial capex with ISR
Mine life
10 years (6.0 million lbs U3O8 per year on average)
Probable reserves(1)
59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)
Average cash operating costs
$4.33 (US$3.33) per lb U3O8
Initial capital costs
$322.5 million
Base case pre-tax IRR(2)
43.3%
Base case pre-tax NPV8%(2)
$930.4 million
Base case price assumption
UxC spot price(3) (from ~US$29 to US$45/lb U3O8)
Operating profit margin(4)
89.0% at US$29/lb U3O8
All-in cost(5)
$11.57 (US$8.90) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;
(3)
Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated in constant (not-inflated) dollars;
(4)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(5)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Gryphon leverages existing infrastructure and provides additional low-cost production
Mine life
6.5 years (7.6 million lbs U3O8 per year on average)
Probable reserves(1)
49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)
Average cash operating costs
$15.21 (US$11.70)per lb U3O8
Initial capital costs
$623.1 million
Base case pre-tax IRR(2)
23.2%
Base case pre-tax NPV8%(2)
$560.6 million
Base case price assumption
US$50 per pound U3O8
Operating profit margin(3)
77.0% at US$50/lb U3O8
All-in cost(4)
$29.67 (US$22.82) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Gryphon operation in 2026;
(3)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(4)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Selection of ISR mining method for high-grade Phoenix deposit – Following the completion of the 2016 PEA, the Company evaluated 32 alternate mining methods to replace the high-cost Jet Bore Mining System (“JBS”) assumed for the Phoenix deposit in the 2016 PEA. The suitability of ISR mining for Phoenix has been confirmed by significant work completed in the field and laboratory – including drill hole injection, permeability, metallurgical leach, agitation, and column tests. Results demonstrate high rates of recovery in both extraction (+90%) and processing (98.5%) following a simplified flow sheet that precipitates uranium directly from the uranium bearing solution (“UBS”), without the added costs associated with ion exchange or solvent extraction circuits.
Novel application of established mining technologies – Given the unique geological setting of the Phoenix deposit, straddling the sub-Athabasca unconformity in permeable ground, the project development team has combined the use of existing and proven technologies from ISR mining, ground freezing, and horizontal directional drilling to create an innovative model for in situ uranium extraction in the AthabascaBasin. While each of the technologies are well established, the combination of technologies results in a novel mining approach applicable only to deposits occurring in a similar geological setting to Phoenix – which now represents the first deposit identified for ISR mining in the Athabasca Basin.
Environmental advantages of ISR mining at Phoenix – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the mining solution used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with regulatory agencies and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.
The PFS has been completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (CIM) standards and best practices, as well as other standards such as the AACE Cost Estimation Standards.
Wheeler River Project
The Wheeler River project is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada. The project is situated in close proximity to important regional infrastructure, including the Provincial electrical transmission grid and an all-season Provincial highway. Since Denison became the operator of the project in 2004, two high-grade uranium deposits have been discovered and now account for combined Mineral Reserves and Mineral Resources (100% Basis) as follows:
Probable Mineral Reserves of 109.4 million pounds U3O8
Deposit
Classification
Tonnes
Grade
Lbs U3O8
Phoenix
Probable
141,000
19.1%
59.7 million
Gryphon
Probable
1,257,000
1.8%
49.7 million
Total
Probable
1,398,000
3.5%
109.4 million
Notes:
(1)
Reserve statement is as of September 24, 2018;
(2)
CIM definitions (2014) were followed for classification of mineral reserves;
(3)
Mineral reserves for the Phoenix deposit are reported at the mineral resource cut-off grade of 0.8% U3O8. The mineral reserves are based on the block model generated for the May 28, 2014 mineral resource estimate. A mining recovery factor of 85% has been applied to the mineral resource above the cut-off grade;
(4)
Mineral reserves for the Gryphon deposit are estimated at a cut-off grade of 0.58% U3O8 using a long-term uranium price of USD$40/lb, and a USD$/CAD$ exchange rate of 0.80. The mineral reserves are based on the block model generated for the January 30, 2018 mineral resource estimate. The cut-off grade is based on an operating cost of CAD$574/tonne, milling recovery of 97%, and 7.25% fee for Saskatchewan royalties;
(5)
Mineral reserves include diluting material and mining losses;
(6)
Mineral reserves are stated at a processing plant feed reference point;
(7)
Numbers may not add due to rounding.
Indicated Mineral Resources (inclusive of Reserves) of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8); plus
Inferred Mineral Resources of 3.0 million pounds U3O8(82,000 tonnes at an average grade of 1.7% U3O8).
The PFS does not include any economic analysis based on estimated Inferred Mineral Resources.
The project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (“JCU”) (10%).
Qualified Persons
The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and / or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the AthabascaBasin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at www.sedar.com and its Form 40-F available at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.
TORONTO, Oct. 29, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML.TO) (NYSE American: DNN) is pleased to announce that it has completed the previously announced transaction (the “Transaction”) with Cameco Corporation (“Cameco”), whereby Denison has acquired all of Cameco’s minority interest in the Wheeler River Uranium Project (“Wheeler River” or the “Project”). Denison now holds a 90% participating interest in the Project (directly and indirectly through its subsidiary Denison Mines Inc.).
Denison’s joint venture partner in the Project, JCU (Canada) Exploration Company Limited (“JCU”), waived its right of first refusal to pro rata participation in the Transaction, and retained its 10% participating interest in the Project.
Denison acquired Cameco’s approximately 24% interest in the Wheeler River Joint Venture, in exchange for the issuance of 24,615,000 common shares of Denison, representing approximately 4.2% of the Company’s issued and outstanding common shares.
About Wheeler River
Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of 132.1 million pounds U3O8 at an average grade of 3.3% U3O8, plus combined Inferred Mineral Resources of 3.0 million pounds U3O8 at an average grade of 1.7% U3O8. The project is host to the high-grade Phoenix and Gryphon uranium deposits (discovered by Denison in 2008 and 2014, respectively), and is a joint venture between Denison (90% and operator) and JCU (10%).
A Pre-Feasibility Study (“PFS”) was completed, considering the potential economic merit of co-developing the high-grade Gryphon and Phoenix deposits, the results of which were announced on September 24, 2018. Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture (“WRJV”) are subject to different tax and other obligations. Additional scientific and technical information relevant to the PFS, as well as after-tax results attributable to Denison’s ownership interest, are described in greater detail in the September 24, 2018 press release announcing the results of the PFS. A NI 43-101 technical report supporting the PFS results is in the process of being finalized and will be filed under Denison’s profile on SEDAR within 45 days of the initial press release.
The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
Further details regarding the Wheeler River project are provided in the NI 43-101 Technical Report for the Wheeler River project titled “Technical Report with an Updated Resource Estimate for the Wheeler River Property, Northern Saskatchewan, Canada” dated March 15, 2018 with an effective date of March 9, 2018. A copy of this report is available on Denison’s website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and/or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the following: Denison’s percentage interest in its properties and its plans and agreements with its joint venture partners; the interests of JCU and its rights under the terms of the Wheeler River JV; estimates of Denison’s mineral resources; the results of its PFS assessing the potential for project development; and outlook for the industry and uranium mining in the Athabasca Basin. Statements relating to “mineral reserves” or “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Denison to be materially different from those expressed or implied by forward-looking statements. Denison believes that the expectations reflected in this forward-looking information are reasonable but no assurance can be given that these expectations will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the factors discussed in Denison’s Annual Information Form dated March 27, 2018 under the heading “Risk Factors”.
These factors are not, and should not be construed as being exhaustive. Accordingly, readers should not place undue reliance on forward-looking statements.
The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This press release may use the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
TSX VENTURE SYMBOL: FUU
KELOWNA, BC , Oct. 25, 2018 /CNW/ – Fission 3.0 Corp. (“Fission 3” or the “Company“) announces that it has granted incentive stock options (the “Options“) to Directors, Officers, employees and consultants entitling them to purchase up to 8,100,000 shares in the capital of the Company subject to the policies of the TSX Venture Exchange. The Options are exercisable until October 25, 2023 at a price of $0.19 per share. The Options were granted in accordance with the Company’s Stock Option Plan approved by the shareholders on December 14, 2017 . The Options will vest as follows: 1/3 on the October 25, 2018 and 1/6 will vest every six months thereafter, until all Options have vested. About Fission 3.0 Corp.
Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia . That Company’s common shares are listed on the TSX Venture Exchange under the symbol “FUU.” ON BEHALF OF THE BOARD “Dev Randhawa” Dev Randhawa, CEO Fission 3.0 Corp. Cautionary Statement: Fission 3.0 Corp. Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission 3.0 Corp. which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fission 3.0 Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
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 release.
TORONTO, ON / ACCESSWIRE / October 24, 2018 / DNI Metals Inc. (CSE: DNI; OTC PINK: DNMKF) (“DNI” or the “Company”). New Madagascar Team
DNI has terminated its relationships with Steven Goertz, previously DNI’s country manager, and his team. Dan Weir, the CEO of DNI, is taking charge of all of DNI’s Madagascar operations which includes, but is not limited to, obtaining the environmental licenses for its Vohitsara and Marofody properties. Mr. Weir is putting together a new team, which will include inhouse legal counsel, government relations personal, an office manager and an accountant.
As DNI constructs its pilot plant and ultimately larger scale production, additional team members will be required. Upgraded OTC Listing
DNI has been approved to upgrade to a QB quotation on the OTC markets in the USA.
DNI applied to have its shares trade on the OTCQB because some DNI investors found it difficult to trade our stock, particularly through discount brokers.
The OTCQB Venture Market offers early stage and developing international companies the benefits of being publicly traded in the U.S. with lower cost and complexity than a U.S. exchange listing. According to the OTC, the key benefits a quotation on the OTCQB are: Efficient Market Standards: Companies may leverage their local market disclosure (SEC Exchange Act Rule 12g3-2(b)). There are no Sarbanes-Oxley and SEC Reporting requirements to trade on OTCQB, bypassing burdensome, costly and duplicative NYSE and NASDAQ listing requirements. Transparency: OTCQB is recognized by the SEC as an established public market. OTCQB companies provide current company information and meet financial standards that enable brokers to more easily quote and trade a security. Visibility: Companies engage a far greater network of U.S. investors, data distributors and media partners, ensuring U.S. investors have access to the same high-quality information that is available to investors in their local market, but through U.S. platforms and portals used to conduct research. New Mauritian Companies
DNI has completed the process of forming two Mauritian companies, DNI Mauritius Vohitsara and DNI Mauritius Marofody in which the ownership of DNI’s Malagasy subsidiaries, will be transferred to the Mauritian entities.
The benefits are twofold:
Mauritius and Madagascar have an Investment Promotion and Protection Agreement (“IPPA”) in place since late 2010. See details below.
A double-taxation treaty is in force between Madagascar and Mauritius.
Mauritius Investment Promotion and Protection Agreements
While much of Mauritian success as a well‐established international financial center can be attributed to its continually expanding network of double taxation avoidance agreements (“DTAAs”), there is another significant advantage to investing through Mauritius. Mauritius has entered into Investment Promotion and Protection Agreements (“IPPAs”) with various African countries that, while less well‐known than DTAAs, are potentially of great importance to investors seeking to invest in the developing markets of Asia and Africa.
IPPAs are bilateral agreements between countries designed to promote and protect the interests of investors from one country in the territory of the country where the investment is being made. Among other things, IPPAs increase investor confidence by ensuring a fair and equitable protection of investments. Mauritius has concluded 34 IPPAs, of which 18 are in force. Each agreement provides the following guarantees to investors:
Fair and equitable protection of investments
Fair and equitable treatment of investments and returns of investors
Free transfer of monies relating to investments and returns
Non-expropriation guarantee – investments shall not be nationalized, expropriated or subjected to measures (having effects equivalent to nationalization or expropriation) except for public purposes, under due process of law, on a non‐ discriminatory basis and against prompt, adequate and effective compensation (which shall be made without delay, and be effectively realizable)
Most favoured nation rule with respect to treatment of investments and compensation for losses (in case of war or armed conflict, revolution, a state of national emergency, revolt, insurrection or riot) – investors who, suffer losses in the territory of the other contracting party resulting from the following shall be accorded restitution or adequate compensation:
Requisitioning of their property by the forces or authorities of the latter contracting party
Destruction of their property by the forces or authorities of the latter contracting party, which was not caused in combat action or was not required by the necessity of the situation of the observance of any legal requirement.
Provisions for settlement of disputes between investors and the contracting states.
Provisions for settlement of disputes between contracting states.
Mauritius’ network of IPPAs with various African countries makes it an ideal investment platform. In these countries, there is often pressure to redistribute wealth to local indigenous populations, which have historically been both politically and economically disenfranchised. This has resulted in a perceived threat of nationalization of assets (such as mines and natural resources) in certain of these countries. In these circumstances, it is useful to invest via a country that has an IPPA with the relevant African country, in order to take advantage of the guarantees offered by the IPPA. Source: Conyers Dill & Pearman.
Madagascar and Mauritius entered into an IPAA titled: « Accord De Promotion et de Protection Réciproque des Investissements entre le Gouvernement de la République de Maurice et le Gouvernement de la République de Madagascar » on 06th April 2004. The IPAA was fully ratified by both countries at the end of 2010. This instrument utilises the International Centre for Settlement of Investment Disputes (ICSID) for dispute resolution. It has been proven to be an effective recourse for investors in Madagascar. Environmental Licenses
DNI had been promised the environmental licenses would be completed early in 2018. DNI had been given receipts and documents to show that the licenses were progressing and that the fees had been paid. Through an ongoing investigation, the Office National pour l’Environnement Madagascar, ONE,has determined and informed DNI that the many of the receipts and documents were falsified, and that the fee payments had not been paid. In fact the Cahier d’Charge and the environmental impact study for Marofody had not been filed with the ONE.
DNI is now aware of what needs to be completed in order to obtain the licenses and is rectifying the situation.
DNI – CSE
DMNKF – OTC
Issued: 120,698,403
For further information, contact:
DNI Metals Inc. – Dan Weir, CEO 416-595-1195 DanWeir@dnimetals.com
Also visit www.dnimetals.com Forward-looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law. SOURCE: DNI Metals Inc.
Original Source: https://energyandresourcesdigest.com/oil-companies-ditch-permian-oklahoma-plays-nfx-eog-scoop-stack-merge-score/
If you follow the oil markets as I do, you might have heard that the Permian Basin in West Texas is the most prolific oil basin in the U.S. But the Permian has a big problem.
Producers are unable to get any more oil out.
Yes, there’s plenty more oil there. But the Permian has run out of takeaway pipeline capacity.
New pipeline projects won’t be ready until 2020. That means producers have had to severely discount their Permian crude destined for Gulf Coast refineries. For instance, on September 4, WTI Midland oil traded a discount of $23.95 per barrel to Magellan East Houston oil.
Those discounts come right off of a producer’s bottom-line profits. If you’re an investor, think of it as coming right off of your share price.
Oklahoma producers don’t have those problems. Sooner State exploration and production companies are laughing all the way to Cushing, Oklahoma.
Today there are several major oil plays in Oklahoma, referred to as the SCOOP, STACK, SCORE and Merge plays.
The STACK play acronym comes from the Sooner Trend oil field, Anadarko Basin, and Canadian and Kingfisher counties. Unlike the Granite Wash, Eagle Ford or Bakken, STACK isn’t a geological formation but a geographic area.
The SCOOP (South Central Oklahoma Oil Province) play is a geological formation. It’s also located in the Anadarko Basin.
The SCORE (Sycamore, Caney, Osage Resource Expansion) play is the sole idea of Newfield Exploration. Steve Campbell, a senior VP at Newfield, said Newfield was currently leasing 350,000 acres in the Anadarko Basin.
“It is the equivalent of 1 million net effective acres when all the multiple stacked horizons are considered,” he said. Newfield plans to invest $365 million to further delineate its SCORE acreage and different play levels.
Lastly, the Merge play is where STACK and SCOOP come together – hence “merge.”
Pipelines in the Right Places
Unlike West Texas’ pipeline-limited Permian, Oklahoma pipeline companies are staying ahead of producer capacity demand. They are doing this in the face of initial production rates that are similar to those in the Eagle Ford and Permian plays.
Since 2013, Oklahoma producers have invested in higher production well completions. They are also focused on the core acreage in the Oklahoma plays. That has resulted in a 70% increase in initial production rates.
Currently there are 139 rigs operating in Oklahoma. Most of them are in the SCOOP and STACK formations. And I think we’re going to see rapid growth in Oklahoma’s other plays as well.
Producers with acreage in the SCOOP, STACK, SCORE and Merge plays will begin to shift drill rigs there from the backlogged Permian.
Both Newfield Exploration Co. (NYSE: NFX) and EOG Resources Inc. (NYSE: EOG) are a great way to play the growing oil boom in Oklahoma.
Good investing,
Dave
Toronto, Ontario–(Newsfile Corp. – October 22, 2018) – U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company“) is pleased to announce that further to its news release dated October 1, 2018, it has completed its previously announced non-brokered private placement. Due to increased investor demand, the Company increased the size of the private placement to $573,500 from $400,000. The Company issued 2,294,000 units (“Units“) at a price of $0.25 per Unit, for total gross proceeds of $573,500 (the “Offering“).
Each Unit consists of one (1) common share in the capital stock of U3O8 Corp. (“Common Share“) and one (1) common share purchase warrant (“Warrant“). Each Warrant entitles the holder to purchase one Common Share at a price of $0.40 per Common Share until the date which is thirty-six (36) months following the closing date of the Offering, whereupon the Warrants will expire.
Proceeds of the Offering will be used for metallurgical test work on the Company’s Laguna Salada uranium-vanadium deposit in Argentina, for general corporate and administrative purposes, and to enable the Company to consider exercising its right to maintain its 39% holding in the private frac sand company, South American Silica Corp. (“SAS“), should SAS undertake a private placement in light of positive developments in the frac sand industry.
In connection with the Offering, the Company paid to certain eligible finders compensation consisting of cash commissions of $7,000 and 28,000 compensation warrants (“Broker Warrants“). The Broker Warrants will be exercisable into Common Shares of the Company at $0.40 and will be valid for a period of twenty-four (24) months from the date of closing of the Offering.
All securities issued and issuable pursuant to the Offering are subject to a four month and one day statutory hold period.
Closing of the Offering is subject to the receipt of all regulatory approvals, including the Toronto Stock Exchange.
Securities for Debt Transaction
The Company has agreed to settle outstanding cash debts in the amount of $51,500 to certain service providers and former employees (the “Creditors“) through the issuance of an aggregate of 206,000 Units at a price of $0.25 per Unit.
Additionally, the Company has agreed to settle $88,268 with the Creditors through the issuance of 304,371 common shares at a price of $0.29 per common share (the “Debt Shares“) (together, the issuance of the Units and Debt Shares to Creditors, the “DebtSecurities“).
The issuance of the Debt Securities is subject to the receipt of all applicable regulatory approvals, including the Toronto Stock Exchange. The Company is choosing to settle the outstanding indebtedness through the issuance of the Debt Securities as the Company will require cash for working capital and continuing operations.
The Debt Securities and securities issuable thereunder are subject to a four month and one day statutory hold period.
Related Party Transactions
Dr. Richard Spencer (CEO of the Company) and Mr. John Ross (CFO of the Company) participated in the Offering (the “Insider Participation“) and their participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101“).
Dr. Spencer acquired 140,000 Units for proceeds of $35,000 and Mr. Ross acquired 140,000 Units for proceeds of $35,000.
In the absence of exemptions, the Company is required to obtain a formal valuation for, and minority shareholder approval of, the related party transaction. The related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of the Company’s market capitalization.
U.S. Registration
The securities offered pursuant to the Offering and the issuance of the Debt Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Warrant Extension and Amendment
The Company and holders of 759,250 common share purchase warrants (“Original Warrants“) issued pursusant to a previous private placement have agreed to extend the expiry date and amend the exercise price of the Original Warrants.The Original Warrants will expire twelve months from the original expiry date and be exercisable into a common share of the Company at $0.50, as depicted in the table below:
Issue Date
Issued Exercise
Price
Original
Expiry
Date
Amended
Expiry
Date
Amended Exercise
Price
Effective Date
Original # of Warrants Issued
November 3,
2015
$0.70
November 3, 2018
November 3, 2019
$0.50
November 3, 2018
759,250
None of the Original Warrants are held by insiders of the Company.
The Toronto Stock Exchange has provided conditional approval for the extension of the expiry date and amended exercise price with an effective date for the amendments of November 3, 2018.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company’s mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:
Laguna Salada Deposit, Argentina — a PEA shows that this near surface, free-digging uranium-vanadium deposit has low production-cost potential; and
Berlin Deposit, Colombia — a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.
This news release includes certain “forward looking statements” related with the development plans, economic potential and growth targets of U3O8 Corp’s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana and (d) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii) economic, political and industry market conditions will be favourable, and (iv) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company’s ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled “Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina” and the January 18, 2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”
Don Luskin likes what he sees. The economy, he says, is strong and poised for growth. The tax cuts are working, particularly in the small cap segment. Furthermore, the President’s approach to trade negotiations is sound.
In short, Keynesian animal spirits for risk are back and the future looks bright.
But, he adds, “Don’t be an idiot about it. Like in a plane, you always want to know where the exits are.”
The Chief Investment Officer of Trend Macrolytics recently visited our Southern California studio for a wide-ranging discussion on politics, central banks, trade wars and markets. It was my first opportunity to sit down with the author and columnist, who is also a regular on Fox Business Network.
For starters, there is no mistaking it: Luskin is an uncompromising stock bull. The economy, he insists, “… is in a cusp period, where the world has the potential to get out of the era of secular stagnation, and the new normal, and get back to growth rates and productivity rates that look like the old normal.”
He is also not shy about his support of the President’s economic policy and, in particular, tough stance on China and trade. “China is interfering with free trade more than we are,” he explains.
In Luskin’s assessment, the pros of Trump’s tough stance outweigh the cons, even if the tactic means higher consumer prices for Americans. “[Free trade is] the morally right thing to do,” he adds.
Yet, despite his unwavering optimism, when pressed, Luskin concedes that diversification is a worthy end in itself. Don’t be an idiot about it — remember the plane analogy?
But what if the nearest exit is behind you — like at Dow 26,000?
“Believe me … I own lots of gold,” he admits. “I also have lots of guns and ammunition … and penicillin.”
After all, what good is an exit without a parachute?
To watch the video interview with Donald Luskin, chief investment officer of Trend Macrolytics, click here. To download the Trend Macro special report, “One Sell-Off, So Many Causes” click here (pdf) Read in browser »
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