Vancouver, British Columbia–(Newsfile Corp. – January 25, 2022) – Playfair’s (TSXV: PLY) (FSE: P1J1) (OTC Pink: PLYFF) extensive drill program on its large (201 square kilometers) 100% owned RKV Copper Project in South Central Norway to test targets identified by using a combination of Artificial Intelligence (CARDS) and Mobile Metal Ion (MMI) geochemistry was partially completed in late 2021. In an abbreviated program, shortened by Covid-19 and logistical issues, a total of 539.7 metres was drilled in 11 holes.
In 2022 a total of 26 holes are planned for a total of 1,300 metres. Drilling will be completed at Storboren and the Røstvangen, Kletten and Sæterfjellet high MMI copper targets also will be drilled. The order of drilling will be dictated by logistics. The Municipality of Tynset has given Playfair permission to access the drill areas by helicopter. The logistics and schedule of drilling in several of the target areas will be eased by use of a helicopter.
All seven drill targets, as noted in the maps, show compelling coherent MMI Cu anomalies with multiple MMI Cu values greater than 6,000 ppb. The highest value recorded was 53,300 ppb MMI Cu. A short MMI Report by SGS states that values greater than 6,000 ppb MMI Cu “are likely to be associated with weathering copper sulphides”.
In keeping with Playfair’s intent to minimize the impact of its exploration on the natural environment Playfair is using a lightweight drilling machine which can be disassembled and hand-carried to the drill sites. Although lightweight the drill is capable of drilling to 150m depth using BQ sized rods (36.5 mm or 1.437 inches core diameter) and to 100m depth using NQ sized rods (47.8mm or 1.872 inches core diameter).
2021 Drill Results
Four holes were drilled at Rødalen and all were collared on a steep slope. A previously unknown amphibolite with sulphide mineralization was discovered though the unit showed no significant copper or cobalt values.
Results from the partially completed drill program at the Storboren High Copper MMI anomaly indicate the bedrock source of the copper is located upslope from the seven holes drilled in 2021. The immediate source of the part of the anomaly tested by drilling is interpreted as downslope migration of copper in overburden due to a combination of soil creep, sulphide weathering and local acid drainage. The drilling was carried out late in the year and the onset of snowy winter conditions coupled with the very steep terrain required the remaining drilling to be postponed to Spring 2022.
The first 6 holes at Storboren were on the lower part of the slope and encountered mostly unmineralized rocks of sedimentary origin. The last hole drilled, SBN-21-07, location shown on the map and image, encountered intrusive mafic to ultramafic rocks mixed with inclusions of sedimentary rocks similar to those drilled downslope to the southeast. There were several intervals of sulphide mineralization showing anomalous copper, cobalt, and nickel. Of the 11 holes drilled in 2021 at Storboren and Rødalen SBN-21-07 contains the 10 highest copper values, the 10 highest cobalt values and 8 of the 10 highest nickel values. 102 samples of drill core were analyzed. Copper values range from 1.8 to 1355 ppm with a mean of 144 ppm, cobalt values ranged from 15.4 to 97 ppm with a mean of 38 ppm and nickel ranged from 32.9 to 377 ppm with a mean of 157 ppm.
Of particular interest is the occurrence of an area devoid of vegetation at the northern edge of the high copper MMI anomaly. The usual overgrown vegetation is intersected by a 10 – 15 m long 1 – 2 m wide exposure originating from a water outflow near the base of the upper, steeper slope.
Within this unvegetated area many angular to sub-rounded blocks (10 to 50 cm) are present, some of local origin, some non-local and some of undetermined origin. One block, visually unlike the rocks in nearby outcrops and drillholes, was sulphide-rich and assayed 1.265% copper, 3.24% zinc, 0.199 gpt gold and 16.45 gpt silver.
This polymetallic mineralized block supports the interpretation of the upslope location of the bedrock source of the MMI anomaly.
Playfair plans continued shallow drilling to trace the MMI copper anomaly upslope to its bedrock source.
Samples from the 2021 drilling were cut and sent for analysis. Preparation was at the Malå, Sweden ALS laboratory with analysis at the Loughrea, Ireland ALS laboratory.
ALS Minerals is internationally recognized as the global leader in providing geochemical sample preparation, analytical procedures, and data management solutions, with its European hub lab based in Loughrea, Co. Galway.
Playfair Mining uses a quality assurance/quality control (QA/QC) program that monitors the chain of custody of samples and includes the insertion of blanks, duplicates, and reference standards in each batch of samples sent for analysis. Drill core is photographed, logged, and cut in half with one half retained in a secured location for verification purposes and one half shipped for analysis. Sample preparation (crushing and pulverizing) is performed at ALS Geochemistry, an independent ISO 9001:2001 certified laboratory, in Malå, Sweden and pulps are sent to ALS Geochemistry in Loughrea, Ireland for analyses.
The entire sample is crushed to 70% passing -2 mm and a riffle split of 250 grams is taken and pulverized to better than 85% passing 75 microns (PUL-31). Samples are analyzed by multi-acid (4-acid) digestion/ICP-MS Package for 48 Elements (ME-MS-61). Additionally, samples are analyzed for Au, Pt and Pd using a standard fire assay from a 30-gram pulp (PGM-ICP23). Overlimit sample values for silver (>100 g/t), lead (>1%), zinc (>1%), and copper (>1%) are re-assayed using a four-acid digestion overlimit method with ICP-AES (ME-OG62). No QA/QC issues were noted with the results reported herein.
The technical contents of this release were approved by Greg Davison, PGeo, a qualified person as defined by National Instrument 43-101.
The road to a cleaner environment includes electric vehicles. Electric vehicles need copper, nickel, and cobalt. There is no green future without minerals.
Forward-Looking Statements: This Playfair Mining Ltd News Release may contain certain “forward-looking” statements and information relating to Playfair which are based on the beliefs of Playfair management, as well as assumptions made by and information currently available to Playfair management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.
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.
VANCOUVER, British Columbia, Jan. 25, 2022 (GLOBE NEWSWIRE) — Rover Metals Corp. (TSXV: ROVR) (OTCQB: ROVMF) (FRA:4XO) (“Rover” or the “Company”) is pleased to report on the Phase 2 Exploration Program at its 100% owned Cabin Gold Project, NT, Canada. In Q4-2021, Rover tested a ground induced polarized survey (“IP Survey”) over proven high-grade gold zones on the property. The test results indicated a positive correlation between IP Survey chargeability and the sulfide content in the Bugow Iron Formation. High-grade gold at Cabin is associated with elevated-sulfide concentration. The Company followed up the successful test survey, with an extensive ground IP Survey that covered the Beaver Zone, Andrew Zone, and the Camp Target. The Company is pleased to announce that one of the highlights of the IP Survey is a large anomaly that appears to extend the Beaver Zone 200 meters to the southeast (of the final drill hole of the 2021 drill program, CL-21-40), trending towards the high-grade Arrow Zone. On December 7, 2021 the Company released the results of its drilling at the Beaver Zone. Highlights from drilling at the Beaver Zone included 6.4 meters of 4.63 g/t Au (from 42.6m to 49.0m), including 2.6 meters of 7.80 g/t Au. Highlights of 2020 drilling at the Arrow Zone included 32 meters of 13.6 g/t Au.
IP Survey Comprehensive Results The Company is also pleased to be reporting on the discovery of three prominent IP anomalies: (1) the aforementioned Beaver Zone; (2) the Andrew South IP Target, and (3) the Camp IP Target. The dipole-dipole IP Survey comprised 25m station spacing along lines spaced 25 meters apart, with a 40m depth slice of chargeability.
Beaver Zone IP Anomaly The IP anomaly extending 200 meters to the southeast of drill hole CL-21-40 has never been drilled historically and provides exciting blue sky discovery potential to the project.
Andrew South IP Anomaly The Andrew South IP anomaly is located approximately 350 meters northeast of the Beaver Zone, close to the southern tip of the Andrew Zone. The IP anomaly appears to indicate the discovery of a new mineralized limb of the Bugow Iron Formation, and a new chargeable zone along that limb, trending from southeast to northwest parallel to both the Beaver Zone and the Andrew Zone. The Andrew South IP Anomaly has never been drilled historically and is another example of blue sky discovery potential at the project.
Camp IP Anomaly The historic Camp area exists along the primary limb of the Bugow Iron Formation, to the northwest of the Beaver Zone. This new IP anomaly has never been drilled historically, and again provides exciting blue sky discovery potential to the project.
Technical information in this news release has been approved by David White, P.Geo., Technical Advisor of Rover and a Qualified Person for the purposes of National Instrument 43-101.
Judson Culter, CEO at Rover Metals, states “we’re thrilled to have made the discovery of three new large IP anomalies at the Cabin Gold project. We’re hoping to test these new targets as part of our Phase 3 Exploration Program planned for Q1 of this year. None of these targets have been drilled historically. The possible extension of the Beaver Zone 200 meters to the southeast, presents us with an opportunity for another high-grade gold discovery.”
About Rover Metals Rover is a precious metals exploration company specialized in North American precious metal resources, that is currently advancing the gold potential of its existing projects in the Northwest Territories of Canada (60th parallel). The Company commenced Phase 2 Exploration at its 100% owned Cabin Gold Project in Q3-2021, and the analysis and reporting of the Phase 2 Exploration work at Cabin Gold continues through to the date of this release.
You can follow Rover on its social media channels:
ON BEHALF OF THE BOARD OF DIRECTORS “Judson Culter” Chief Executive Officer and Director
For further information, please contact: Email: info@rovermetals.com Phone: +1 (778) 754-2617
Statement Regarding Forward-Looking Information This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Rover’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. There can be no assurance that such statements prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Rover’s expectations. Rover undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
North Vancouver, British Columbia–(Newsfile Corp. – January 25, 2022) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company”) is pleased to announce additional results from the infill drill program undertaken in the near-surface portion of the Tuvatu deposit. This program was designed to further strengthen the database in the portion of the deposit earmarked for earliest production, from the Company’s 100% owned Tuvatu alkaline gold project in Fiji.
– ~6735m of drilling completed in 38 holes since the start of infill program (~85% of the proposed program completed)
Highlights from near-surface infill drilling include:
TUDDH555
126.62 g/t Au over 0.70m from 133.00-133.70m, including
294.50 g/t Au over 0.30m from 133.40-133.70;
8.25 g/t Au over 2.90m from 137.60-140.50m, including
28.67 g/t Au over 0.60m from 139.10-139.70m, 15.72 g/t Au over 0.30m from 139.40-139.70m,
9.31 g/t Au over 1.70m from 145.00-146.70m, including
31.63 g/t Au over 0.40m from 145.90-146.30m
TUDDH557
17.60 g/t Au over 5.0m from 113.80-118.80m, including
125.50 g/t Au over 0.60m from 115.3-115.9m
35.63 g/t Au over 0.30m from 150.40-150.70m
TUDDH559
14.21 g/t Au over 1.20m from 119.8-121.0m;
6.23 g/t Au over 3.7m from 142.50-146.20, including
22.44 g/t Au over 0.60m from 143.1-143.7m, and 14.48 g/t Au over 0.30m from 145.6-145.9m
TUDDH562
111.40 g/t Au over 0.40 from 164.7-165.1m (Figure 3B, 3C in previous press release)
TUDDH563
20.41 g/t Au over 0.30 from 13.66-13.96m (Figure 3A in previous press release)
63.26 g/t Au over 0.30 from 52.49-52.79m
68.50 g/t Au over 0.30 from 164.55-164.85m
TUDDH565
35.64 g/t Au over 0.40m from 63.8-64.2m
359.76 g/t Au over 1.80m from 70.8-72.6m, including
1616.0 g/t Au over 0.40m from 71.1-71.5m (Figures 3-4, this release)
13.34 g/t Au over 1.70m from 92.9-94.6m, including
42.09 g/t Au over 0.40m from 93.3-93.7m
4.28 g/t Au over 5.10m from 117.3-122.4m
10.03 g/t Au over 0.60m from 141.9-142.5m, including
17.75 g/t Au over 0.30m from 142.2-142.5m
18.61 g/t Au over 0.70m from 154.8-155.5m
TUG136
16.19 g/t Au over 0.60m from 75.7-76.3m, including
30.97 g/t Au over 0.30m from 76.0-76.3m
4.71 g/t Au over 4.20m from 77.9-82.1m, including
10.76 g/t Au over 0.30m from 77.9-78.2, and 12.62 g/t Au over 0.6 from 78.5-79.1m
TUG137
16.44 g/t Au over 4.20m from 106.4-110.6m, including
26.11 g/t Au over 0.60m from 107.6-108.2m, and
22.80 g/t Au over 2.10m from 108.5-110.6m, which includes
45.35 g/t Au over 0.30m from 109.4-109.7m, and 37.40 g/t Au over 0.30m from 110.0-110.3m
Infill Drilling Program Multiple bonanza-grade intercepts have been returned from the ongoing near-surface infill/definition drill program which is aimed at a thorough re-appraisal of the database in portions of the resource earmarked for earliest production. The current ~8000m infill drill program was initiated in June of 2021 with the aim of infilling areas of low data density within parts of the resource currently categorized as Inferred. To date, a total of ~6735m of diamond drilling over 38 holes have been completed, with ~15% of the proposed program remaining. Final results are here reported from a total of 10 holes, 7 of which were drilled specifically as part of the infill program (TUDDH555-562, 565) and three of which were drilled as part of the deep program testing the 500 Zone, but which intersected high grade mineralization in the near-surface (TUDDH563, TUG136, 137). Figures 1-3 illustrate schematically the location of drill holes reported here, and mineralized intervals relative to modelled lodes.
The exceptional grades returned from hole TUDDH565 at a downhole depth of ~71.2m, of 1616.0 g/t Au corresponds to a complex vein of centimetric width at low to moderate angle to core axis, consisting of coarse, subhedral honey sphalerite, fine skeletal marcasite and coarse visible gold in a groundmass of amorphous gray quartz. The vein also contained coarse vugs lined by clear crustiform euhedral quartz crystals and abundant delicate wire native gold. Figures 4 and 5 show some of the coarse visible gold intersected at this interval as well as other mineralogical characteristics. A complete set of results for all near-surface drill intersections reported here is included as Table 1; drill hole parameters are included as Table 2. Results from deeper drill intersections will be reported in a subsequent news release.
The Company is currently undertaking two tiers of drilling: 1) the completion of shallow resource infill drilling from surface and underground, 2) deep exploration drilling from surface and underground targeting lode extensions and additional feeders under the Tuvatu resource. Regional drill programs requiring access to remote parts of the Navilawa caldera has been interrupted during the wet season, but will resume in early 2022.
Sergio Cattalani, Lion One’s Senior Vice President Exploration, commented, “Exceptionally high grade mineralization has been defined in the near-surface portion of the deposit. High grade mineralization is showing to be more consistent and appears to form wider zones with good continuity than what had been previously modelled. I am increasingly confident that once underground mining is underway, the average head grade of the ore earmarked for early production will be higher than previously modelled. The additional data generated by the infill drilling and resampling programs currently underway are indicating that portions of the orebody return higher grades over multiples of minimum mining widths that are not defined by the current resource model.
Our objective remains clear: to work toward a near-term modest production start, concomitant with an aggressive exploration program aimed at the continued expansion of bonanza-grade resources both near-surface and along defined feeder conduits at greater depths, for the eventual scaled-up development of a larger and more valuable resource.“
Figure 1:Left) schematic cross-section across the northern part of Tuvatu showing the location of some infill drill holes, with selected results. Right) Plan view of Tuvatu orebody as a block model, showing the trace of the Tuvatu decline and the location of the vertical section on the left. The different colors represent ore blocks of different grade forming the various lodes. Note that many of the mineralized intervals do not correspond with the previously modelled lodes, suggesting the possibility of previously unrecognized mineralization.
Figures 2, 3:Left) schematic cross-sections across the northern part of Tuvatu showing the location and selected results from some of the drill holes reported here. Right) Plan view of Tuvatu orebody as a block model, showing the trace of the Tuvatu decline and the location of the vertical section on the left. The different colors represent ore blocks of different grade forming the various lodes.
Figures 2, 3:Left) schematic cross-sections across the northern part of Tuvatu showing the location and selected results from some of the drill holes reported here. Right) Plan view of Tuvatu orebody as a block model, showing the trace of the Tuvatu decline and the location of the vertical section on the left. The different colors represent ore blocks of different grade forming the various lodes.
Table 1: Drilling Intervals Reported (intervals greater than 3.0 g/t Au cutoff and wider than 2.0m are bolded)
Drill Hole
From (m)
To (m)
Interval (m)
Au (g/t)
TUDDH-225 (resampled)
52.7
53.7
1.0
9.62
including
52.7
53.4
0.7
14.1
TUDDH-408 (resampled)
83.7
85.7
2
6.12
including
83.7
84.3
0.6
14.2
TUDDH-555
24
24.9
0.9
0.67
118
118.9
0.9
1.41
133
133.7
0.7
126.62
including
133.4
133.7
0.3
294.5
137.6
140.5
2.9
8.25
including
137.6
138
0.4
12.93
and
139.1
139.7
0.6
28.67
which includes
139.1
139.4
0.3
41.61
and
139.4
139.7
0.3
15.72
141.8
143.1
1.3
8.56
including
141.8
142.2
0.4
12.34
and
142.5
143.1
0.6
8.81
145
146.7
1.7
9.31
including
145.9
146.3
0.4
31.63
150.8
151.3
0.5
0.63
TUDDH-556
124
125.2
1.2
3.23
127.3
127.9
0.6
0.9
147
147.4
0.4
0.59
173.4
174
0.6
1.54
176.7
177
0.3
2.46
TUDDH-557
102.7
104.2
1.5
1.02
105.7
112.6
6.9
3.89
including
108
108.6
0.6
26.56
113.8
118.8
5.0
17.6
including
115.3
115.9
0.6
125.5
including
118.2
118.8
0.6
9.69
133.6
134.9
1.3
0.57
144.4
144.8
0.4
2.6
150.4
150.7
0.3
35.63
TUDDH-559
22.6
22.9
0.3
4.39
101
101.9
0.9
1.09
115.7
116.6
0.9
1.18
119.8
121.0
1.2
14.21
131.3
131.6
0.3
5.78
135.9
138.3
1.2
4.09
including
137.7
138.3
0.6
7.42
142.5
146.2
3.7
6.23
including
143.1
143.7
0.6
22.44
and
144.7
145.00
0.3
9.34
and
145.6
145.9
0.3
14.48
155.4
155.7
0.3
2.99
181.1
181.7
0.6
5.38
TUDDH-560
24.4
24.8
0.4
0.62
144.3
144.7
0.4
1.44
TUDDH-562
42.1
42.5
0.4
5.58
129.9
130.3
0.4
3.88
132
132.3
0.3
2.89
158.4
158.8
0.4
3.7
164.7
165.1
0.4
111.4
166.7
167.1
0.4
1.17
218.3
218.6
0.3
1.37
TUDDH-563
13.66
13.96
0.3
20.41
14.86
15.1
0.24
0.83
18.8
19.1
0.3
0.57
21.8
22.4
0.6
5.13
25.2
26.4
1.2
1.58
52.49
52.79
0.3
63.26
58.1
58.5
0.4
6.48
125.25
125.55
0.3
0.58
164.55
164.85
0.3
68.5
300.15
300.65
0.6
1.04
TUDDH-565
45.5
46.1
0.6
0.86
52.8
54.3
1.5
0.52
56.4
57.6
1.2
2.84
59.1
61.5
2.4
1.73
63.8
64.2
0.4
35.64
66.6
67.8
1.2
0.59
70.8
72.6
1.8
359.76
including
71.1
71.5
0.4
1616.0
73.8
74.3
0.5
1.36
75.8
79.4
3.6
2.73
88.7
90.3
1.6
8.52
92.9
94.6
1.7
13.34
including
93.3
93.7
0.4
42.09
99.5
100.1
0.6
1.79
117.3
122.4
5.1
4.28
including
119.4
120.0
0.6
7.22
139.5
140.7
1.2
0.68
141.9
142.5
0.6
10.03
including
142.2
142.5
0.3
17.75
152.4
153.6
1.2
1.37
154.8
155.5
0.7
18.61
TUG-136
3.4
4.0
0.6
0.5
65.5
65.8
0.3
0.59
69.4
69.7
0.3
6.34
75.7
76.3
0.6
16.19
including
76
76.3
0.3
30.97
77.9
82.1
4.2
4.71
including
77.9
78.2
0.3
10.76
and
78.5
79.1
0.6
12.62
and
80.6
80.9
0.3
6.57
and
81.2
81.5
0.3
7.63
102
102.3
0.3
1.89
103.6
103.9
0.3
0.53
TUG-137
5.0
5.7
0.70
0.5
29.3
30.0
0.70
2.32
106.4
110.6
4.20
16.44
including
107.6
108.2
0.60
26.11
which includes
107.6
107.9
0.30
40.65
and including
108.5
110.6
2.10
22.8
which includes
109.4
109.7
0.30
45.35
and also includes
110
110.3
0.30
37.4
161.4
161.7
0.30
1.43
169.3
169.6
0.30
1.97
Table 2: Survey details of diamond drill holes referenced in this release not previously reported
Hole No
Coordinates (Fiji map grid)
RL
final depth
dip
azimuth
N
E
m
(TN)
TUDDH555
3920724.8
1876385.7
237.0
239.50
-74
274
TUDDH556
3920725.3
1876384.4
237.0
182.30
-48
285
TUDDH557
3920725.2
1876385.0
237.1
241.00
-64
284
TUDDH559
3920724.8
1876385.7
237.0
188.70
-75
270
TUDDH560
3920723.1
1876385.2
237.0
220.90
-60
240
TUDDH562
3920723.3
1876385.5
237.0
244.20
-70
248
TUDDH563
3920796.3
1876351.1
209.7
875.00
-63
121
TUDDH565
3920779.0
1876396.0
219.8
200.50
-59
253
TUG136
3920759.6
1876459.2
139.1
617.40
-58
151
TUG137
3920759.0
1876459.0
139.1
686.70
-68
163
TUDDH225
3920737.3
1876336.3
222.8
300.25
-60
330
TUDDH408
3920767.2
1876336.5
225
140.6
-65
320
Figure 4:A) Photo of a portion of uncut drill core from TUDDH565, with a vuggy quartz vein of centimetric width at 71.20m depth. This 0.40m sample returned 1616 g/t Au. B) Close-up of a portion of the vein showing subhedral sphalerite, dendritic marcasite and coarse visible gold. C) Closer view of dendritic marcasite clusters suggesting rapid growth and conditions of supersaturation, in a groundmass of amorphous gray silica.
Drilling and Assay Processes and Procedures The Company is utilizing its own diamond drill rig, using PQ, HQ and ultimately NQ sized drill core rods. Drill core is logged by Company geologists and then is sawn in half and sampled by Lion One staff.
Samples are analyzed at the Company’s own geochemical laboratory in Fiji, whilst pulp duplicates of all samples with results >0.5g/t Au are re-assayed, as well as sent to ALS Global Laboratories in Australia for check assay determinations. All samples for all high-grade intercepts reported here are will be sent to ALS Global Laboratories for check assays shortly. All samples are pulverized to 80% passing through 75 microns. Gold analysis is carried out using fire assay with an AA finish. Samples that have returned grades greater than 10g/t Au are then re-analyzed by gravimetric method. For certain high-grade samples for which results for duplicate assay are within 10% of the initial results, the average of duplicate runs is presented. Lion One’s laboratory can also assay for a range of 71 other elements through Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), but currently focuses on a suite of 9 important pathfinder elements. All duplicate anomalous samples sent to ALS Townsville, Queensland, Australia are analyzed by the same methods (Au-AA26, and also Au-GRA22 where applicable). ALS also analyze for 33 pathfinder elements by HF-HNO3-HClO4 acid digestion, HCl leach and ICP-AES. (method ME-ICP61).
Qualified Person The scientific and technical content of this news release has been reviewed, prepared, and approved by Mr. Sergio Cattalani, P. Geo, who is a qualified person pursuant to National Instrument 43-101 – Standards of disclosure for Mineral Projects (“NI-43-101).
About Tuvatu The Tuvatu gold deposit is located on the island of Viti Levu in the South Pacific island nation of Fiji. The mineral resource for Tuvatu as disclosed in the technical report “Tuvatu Gold Project PEA”, dated June 1, 2015, and prepared by Mining Associates Pty Ltd of Brisbane Qld, and subsequently updated in January 2018 as disclosed in the technical report and PEA by Tetra Tech “Technical Report and Preliminary Economic Assessment Update for the Tuvatu Gold Project, The Republic of Fiji” dated September 2020, comprises 1,007,000 tonnes Indicated at 8.48 g/t Au (274,600 oz. Au) and 1,325,000 tonnes inferred at 9.0 g/t Au (384,000 oz. Au) at a cut-off grade of 3.0 g/t Au. The technical report is available on the Lion One website at www.liononemetals.com and on the SEDAR website at www.sedar.com.
About Lion One Metals Limited Lion One’s flagship asset is 100% owned, fully permitted high grade Tuvatu Alkaline Gold Project, located on the island of Viti Levu in Fiji. Lion One envisions a low-cost high-grade underground gold mining operation at Tuvatu coupled with exciting exploration upside inside its tenements covering the entire Navilawa caldera, an underexplored yet highly prospective 7km diameter volcanic edifice of alkaline affinity. Lion One’s CEO Walter Berukoff leads an experienced team of explorers and mine builders and has owned or operated over 20 mines in 7 countries. As the founder and former CEO of Miramar Mines, Northern Orion, and La Mancha Resources, Walter is credited with building over $3 billion of value for shareholders.
On behalf of the Board of Directors of Lion One Metals Limited “Walter Berukoff“ Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.
This press release may contain statements that may be deemed to be “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Vancouver, British Columbia–(Newsfile Corp. – January 13, 2022) – Provenance Gold Corp. (CSE: PAU) (OTCQB: PVGDF) (the “Company” or “Provenance“) is pleased to announce the closing of a non-brokered private placement for 5,000,000 units (each, a “Unit“) at a price of $0.16 per Unit for gross proceeds of $800,000. Each Unit consists of one common share of the Issuer (each, a “Share“) and one common share purchase warrant (each, a “Warrant“) with each Warrant entitling the holder thereof to purchase one additional common share (each, a “Warrant Share“) of the Issuer at a price of $0.24 per Warrant Share until January 13, 2025.
Proceeds of this private placement are earmarked for the drilling and subsequent initial resource estimate on the Eldorado property in addition to advancing work on the Company’s Nevada properties, particularly the White Rock property as well as general working capital.
Provenance plans to generate resource estimates on both its White Rock property in Nevada and its Eldorado property in eastern Oregon during 2022, which will be detailed in technical reports prepared by the Company in accordance with National Instrument 43-101. The White Rock property will be a maiden resource calculation while the Eldorado property will begin to substantiate historical resource estimates.
As referenced in a previous news release, the Eldorado project hosts three different historical resource estimates done by reputable engineering firms based. The first was done by Billiton Minerals USA after 150 holes had been drilled. The second resource estimate was calculated by Ican Minerals after they completed an additional 49 drill holes in between the original 150. The final resource estimate which was inferred by Ican indicated an ore body approximately 762 meters wide (2500 feet) and 914 meters long (3000 feet). Provenance hopes to have a good portion of the historical resource qualified through data collection and drilling in 2022.
Historical Resource Estimates Completed on the Eldorado Property
COMPANY
RESOURCE ESTIMATE
CONTAINED TONS
GRADE
Billiton Minerals USA
776,000 Ounces Gold
36,000,000
0.75 g/t Gold (0.0219 ounces per ton)
Ican Minerals
1,860,000 Ounces Gold
90,000,000
0.76 g/t Gold (0.022 ounces per ton)
Ican Minerals
4,000,000 Ounces Gold (Inferred)
200,000,000
0.76 g/t Gold (0.022 ounces per ton)
The Company anticipates the maiden resource estimate on its White Rock property over the next few months and is actively in the data collection and planning stage in anticipation of its upcoming drill program at Eldorado following the winter thaw and necessary permitting. This drill program, along with detailed historical data collection, compilation and modeling will be a key driver in producing a current and comprehensive resource estimate for the Eldorado property.
Provenance’s CEO, Rauno Perttu states, “with this funding, the Company is in an excellent position to advance its projects without diluting any more than is necessary at this time. With two cornerstone projects we believe we are in a very enviable position as a junior exploration company to potentially have two significant gold discoveries. We are fortunate to have experienced and influential funding partners that believe in the long-term outlook for the Company.”
No finders’ fees or commissions were paid in connection with completion of the private placement. All securities issued in connection with the private placement are subject to restrictions on resale until May 14, 2022 in accordance with applicable securities laws.
Rauno Perttu, P. Geo., a Qualified Person (as defined by National Instrument 43-101), and the Chief Executive Officer of the Company, has reviewed and approved the technical contents of this News Release.
The above-referenced resource estimates are considered historical in nature and as such are based on prior data and reports prepared by previous property owners. A qualified person has not done sufficient work yet to classify the historical estimates as current resources in accordance with current CIM (Canadian Institute of Mining, Metallurgy and Petroleum) categories and the company is not treating the historical estimates as current resources. Significant data compilation, redrilling, resampling and data verification may be required by a qualified person before the historical estimates on the project can be classified as a current resource. There can be no assurance that any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. Even if classified as a current resource, there is no certainty as to whether further exploration will result in any inferred mineral resources being upgraded to an indicated or measured resource category.
About Provenance Gold Corp.
Provenance Gold Corp. is a precious metals exploration company with a focus on gold and silver resources within North America. The Company currently holds interests in four properties, three in Nevada, and one in eastern Oregon, USA. For further information please visit the Company’s website at https://provenancegold.com or contact Rob Clark at rclark@provenancegold.com.
On behalf of the Board,
Provenance Gold Corp.
Rauno Perttu, Chief Executive Officer
Neither the Canadian Securities Exchange, nor its regulation services provider, accepts responsibility for the adequacy or accuracy of this press release. This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
· New drill results from the Cortadera copper-gold porphyry deposit in Chile confirm growth of shallow resources at both Cuerpo 1 and 2. These include:
· Exploration drilling commenced across the Productora central porphyry target, immediately adjacent to the Productora Mineral Resource – several large copper-gold targets scheduled for testing this year
· Further assay results from Cortadera being compiled for release in advance of a major resource upgrade in Q1 this year, following over 46,000m of additional drilling completed in 2021
Hot Chili’s Managing Director, Christian Easterday, said 2022 is shaping up to be an exciting year following a very strong set of achievements in 2021.
“We commence the year with $34 million in treasury, 100 percent ownership of Cortadera, Glencore as a strategic investor and our Company now consolidated and dual-listed in Canada.”
To access the announcement please click on the link below.
Cortadera’s maiden Mineral Resource positions Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company.
The Cortadera maiden Mineral Resource of 451Mt at 0.46% copper equivalent (CuEq) takes the total Mineral Resource estimate for Costa Fuego (Cortadera, Productora & El Fuego) to 724Mt at 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum. Cortadera also contains a higher grade component of 104Mt at 0.74% CuEq, and this has strong potential to continue growing rapidly with further drilling.View the Cortadera Copper Deposit
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Vancouver, British Columbia–(Newsfile Corp. – January 4, 2022) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce results from recently completed geochemical surveys at EMX’s 100% owned Mt Steadman and Yarrol gold projects in central Queensland, Australia. Numerous gold-in-soil anomalies have been identified by surveys conducted on both projects, with several anomalies extending to the edges of the survey grids, meaning that they remain open for expansion. A total of 895 samples were collected, with results including 2.17 ppm gold in a new target area at Mt Steadman. Results from the Yarrol project also delineated several robust gold-in-soil anomalies, as well as a new target area with high levels of cobalt and nickel in rock chip samples. These results highlight the additional exploration potential of both projects.
EMX will continue executing exploration programs on both projects in the coming year, and both projects are currently available for partnership.
Mt Steadman Project. The 5,700 hectare Mt Steadman project is an intrusion-related gold system (“IRGS”) in the New England Orogenic Belt in Queensland, Australia, a province that hosts IRGS-type gold, porphyry and epithermal deposits. Mt Steadman is located along the Perry Fault system, a major structural feature in the area (see Figure 1). The Mt Steadman project was the focus of exploration in the 1990’s when shallow reconnaissance drilling programs led to the recognition and definition of historical gold resources. However little exploration has taken place since (see EMX News Release dated April 26, 2021).
In Q3 and Q4 2021, EMX conducted a broad soil geochemical survey to the north of the Fitzroy historical resource (see Figure 2). A total of 351 samples were collected on 200 meter and 400 meter spaced traverses with samples collected every 50 meters along each line. This program resulted in the delineation of multiple anomalous gold-in-soil trends. The most prominent anomaly extends for 400 meters along trend and reaches a maximum width of 200 meters at its northern extent. The anomaly remains open to the north and includes a sample of 2.17 ppm gold. This new soil anomaly is similar in scale and tenor to those around the historic Fitzroy prospect located 1km to the southeast. This anomaly also exhibits coincident anomalous molybdenum and tellurium geochemistry, similar to geochemical signatures seen at Fitzroy, and closely correlates with the mapped extent of a zone of hydrothermal breccias, quartz veining and alteration.
Yarrol Project. The 17,500 hectare Yarrol project is located between EMX’s Queensland Gold royalty property and Evolution Mining’s Mt Rawdon gold mine, and is positioned along the regional scale Yarrol Fault. Several other historical mines and active exploration projects lie along the Yarrol Fault structural trend. EMX’s Yarrol Project was the site of historical mining activities from the late 1800’s through the 1930’s. Further exploration carried out in the 1980’s and 1990’s led to the definition of two historical gold resources on the Yarrol Project, but little exploration activity has taken place since that time (see EMX news release dated April 26, 2021).
EMX’s 2021 programs at Yarrol included the collection of 544 soil samples, which identified two new gold-in-soil anomalies (see Figure 3). The northern anomaly, known as the Limestone Creek area, lies approximately five kilometers northwest of the historical Yarrol gold resources. This new anomaly has dimensions of 200 by 600 meters, with the strongest results along the southernmost line. The area was identified as a target by EMX on the basis of magnetic inversion geophysical models, previous geochemical results and the presence of numerous historical prospecting pits. The Limestone Creek anomaly also coincides with a zone of albite-silica-goethite alteration developed adjacent to a monzonite porphyry and remains open to the south. The anomaly has a scale and tenor that resembles those over the historical gold resources on the Yarrol Project.
Other gold-in-soil anomalies have been delineated immediately northwest of the historical Yarrol resources, along a contact zone between geological formations within folded and faulted sediments, which also merit follow-up exploration.
In the process of carrying out the sampling programs at the Yarrol Project, EMX geologists also noted boulders of dark manganiferous material in several drainages in the northern part of the exploration license. The boulders were traced back to an outcropping stratigraphic horizon of dark, manganiferous material that has the appearance of a conglomeratic unit.
Nine rock chip samples collected from various boulders, float materials and outcrop exposures averaged 1.1% cobalt, 0.15 % nickel and 10.0% manganese, with a high of 1.6% cobalt with 0.25% nickel. EMX considers this to be a significant discovery of additional mineral potential on the Yarrol Project, as previous efforts had strictly focused on Yarrol’s intrusion-related gold mineralization. Additional sampling programs are underway to better quantify the extent of this unit and its degrees of enrichment in cobalt, nickel and manganese. Barium is also enriched in this material, with eight of the nine samples submitted for analysis exceeding the upper analytical limit of 1% barium.
Upcoming Exploration Plans. Additional geochemical sampling programs will be carried out at both the Mt Steadman and Yarrol projects in the coming months with the goal of extending the soil anomalies and identifying additional drill targets. Drill programs are being planned for mid-2022.
EMX’s Australian Royalty Generation Program. EMX maintains an active royalty generation program and continues to review new project opportunities throughout Australia. The Company currently holds two royalty projects in Australia (Koonenberry and Queensland Gold) and has three exploration projects in Queensland that are available for partnership. More information on these projects can be found on the EMX website (www.EMXroyalty.com).
Comments on Sampling, Assaying, and Nearby Mines and Deposits. EMX’s exploration samples were collected in accordance with industry standard best practices. EMX conducts routine QA/QC analysis on its exploration samples, including the utilization of certified reference materials, blanks, and duplicate samples. All samples were submitted to ALS Brisbane for sample preparation and analysis (ISO 9001:2000 and 17025:2005 accredited).
The soil samples were analyzed using the AuME-TL-44 method which is a trace level gold and multi-element technique consisting of an aqua-regia digest and an ICP-MS finish.
The rock chip samples were analyzed with a four-acid super trace technique (ME-MS61) with an ICP-MS finish. The rock chip samples were also analyzed with a lithium borate fusion prior to acid dissolution (three-acid) and an ICP-MS finish (ME-MS81). Over limit cobalt and manganese samples were analyzed by a HF-HN03-HCL04 digest, HCL leach and ICP-AES (OG62) finish.
The nearby mines and deposits discussed in this news release provide context for EMX’s properties, which occur in a similar geologic setting, but this is not necessarily indicative that the properties host similar mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and 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 the TSX Venture Exchange under the symbol EMX, as well as on the Frankfurt 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 Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, 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.
Figure 1. Location map for the Yarrol and Mt Steadman projects.
The summary of historic production at Mt Morgan is cited from Mt. Morgan: A. Taube; The Mount Morgan gold-copper mine and environment, Queensland; a volcanogenic massive sulfide deposit associated with penecontemporaneous faulting. Economic Geology; 81 (6): 1322-1340.
Figure 2. 2021 Soil Results from the Mt Steadman Project.
Higher highs are on the horizon in 2022 for three critical reasons
A favorable jurisdiction in Nevada- Momentum build and the value proposition is improving
Two groups in the know have made significant investments
The shares continue to offer value, risk-reward favors the upside for Nevada Copper
The leading stock market indices have been bumpy over the past weeks. The prospects for higher interest rates and taxes in 2022, new COVID-19 variants, inflation at the highest level in decades, and other factors have created uncertainty, which tends to cause indigestion in the stock market. However, many leading stocks remain near or at record highs.
Copper is a bellwether commodity that many market participants look to for clues about the health and wellbeing of the global economy. Copper’s nickname is Dr. Copper because it tends to move higher during economic expansion and lower when the global economy contracts. In May 2021, copper rose to its highest price in history when nearby COMEX futures rose to just shy of $4.90 per pound, and LME forwards moved to over $10,700 per ton for the first time. Over the past year, copper has taken on a new role, increasing the demand side of its fundamental equation. The red nonferrous metal is a critical requirement for decarbonization, leading Goldman Sachs to call copper “the new oil.”
In the world of commodities, higher prices and growing demand lead to more production. However, the global copper market faces a challenge as it will take years for new supplies to come to market, creating deficits that push the price higher. While copper corrected since the May high, the price remained around $4.40 per pound level as of December 24.
Locating value in the US stock market is not easy these days. Nevada Copper Corp. (NEVDF) is a promising emerging US producer. Two seasoned commodity groups recently invested in NEVDF, seeing tremendous value in the burgeoning producer.
Copper reached a new high in 2021 Copper closed 2020 at the $3.52 per pound level on the nearby COMEX futures contract and $7,757 per ton on the three-month LME forwards.
Source: CQG
The chart highlights COMEX copper futures move to a high of $4.8985 in May. With the active month March contract at the $4.40 level on December 24, the price moved 25% higher in 2021 with only one week until 2022.
Source: LME
Three-month copper forwards rose to a high of $10,724.50 in 2021 and was at the $9,568 level on December 24, 23.35% higher than at the end of 2020.
While copper is closing 2021 below the year’s high, the trend remains bullish with impressive gains since the end of last year.
Higher highs are on the horizon in 2022 for three critical reasons
Three reasons support higher highs and new all-time peaks in the copper market in 2022 and beyond:
Copper is critical for electric vehicles (EVs), wind turbines, and other clean energy initiatives. The red metal is a crucial ingredient for decarbonization, making the fundamental equation’s demand-side grow.
It takes eight to ten years to bring new copper production online from exploration to output. Copper is still in the early phases of expanding global production, with the leading mining companies scrambling to find new ore deposits. As demand increases, supplies will struggle to keep pace over the coming years.
Inflationary pressures will continue to rise, putting upward pressure on all commodities, and copper is no exception. At the latest December FOMC meeting, the US central bank forecast a 0.90% Fed funds rate for 2022 and a 1.60% rate for 2023. Even if inflationary pressures recede, real interest rates are likely to remain negative, which is bullish for raw material prices in the coming years.
Copper faces an almost perfect bullish storm for the coming years. Goldman Sachs’s forecast of $15,000 per ton by 2025 would put nearly COMEX futures over the $6.80 per pound level. While higher prices will encourage more production, existing mines cannot keep pace with the rising demand.
Chile is the world’s leading copper producer. The recent election of Gabriel Boric, a 35-year-old former student activist who carries a new generation’s socialist dreams to the presidential palace, threatens Chile’s capitalist economy fueled by copper output. Taxes are likely to rise along with wages and addressing climate change could cause a new wave of regulations that weigh on copper output over the coming years. Moreover, the new Chilean government could move to nationalize copper mines, which would impact output and efficiency. The bottom line is that a supply-demand deficit in the global copper market is likely to widen over the coming years, putting upward pressure on the red nonferrous metal’s price.
A favorable jurisdiction in Nevada- Momentum build and the value proposition is improving
The world’s leading copper producers are searching the globe for new reserves and output. Australian mining giant BHP recently said it is considering a challenging Democratic Republic of Congo copper project. The DRC is notorious for political and regulatory issues.
Meanwhile, the US remains a friendly mining environment, and Nevada is a state that supports the industry and is mineral-rich.
Nevada Copper (NEVDF) is an emerging producer with a lot going for it these days. The company mines copper in Nevada in the USA, and the Canadian Fraser Institute ranks the state as the world’s #1 mining jurisdiction. In 2021, momentum has been building for NEVDF:
Underground mine operation improvements have resulted in 100% growth in development rates.
New equipment in the second half of 2021 has accelerated development.
An operational efficiency plan took effect in the second half of 2021 and is forecasted to increase output in H1, 2022.
To put more meat on the bone, in a December 21 press release, the company provided updates on its Pumpkin Hollow underground mine project:
Nevada Copper is on track to advance over 1,100 lateral equivalent feet of development in December 2021.
Development is running at the highest rate for 2021, with December nearly 50% higher than November and almost 100% above the level in August 2021.
New equipment should enhance further development and growth in January 2022.
Ventilation fan infrastructure should be completed in Q1 2022.
Mining of the Sugar Cube, the first high-grade area in the East North Zone of the underground mine, is on schedule for Q1 2022.
In December, CEO Randy Buffington said, “We are on track to complete 1,100 feet of lateral development this month, which puts the Company in a position to mine the first stope of high-grade Sugar Cube as planned next month.”
Accelerated development increases NEVDF’s value proposition:
The current enterprise value is less than the value of the company’s machinery and equipment.
NPV at current prices is close to the US $3 billion level.
The company will be cash-flow positive in 2022.
Open-pit mining development will accelerate in 2022.
The company’s prospects are compelling, leading two influential groups to invest in NEVDF.
Two groups in the know have made significant investments
Solway Investment Group is a private international mining and metals group with headquarters in Switzerland. Solway specializes in nickel production with mines and smelting plants in Guatemala, Ukraine, Russia, Indonesia, and Macedonia. The group has over 5,000 employees, is expanding its focus in battery metals, and recently invested US$30 million for a 10% stake in Nevada Copper.
Mercuria Energy Group Ltd. is a multinational commodity trading company active in global energy, metals, and agricultural markets. The company dates back to 2004 when two ex-Phibro executives, Marco Dunard and Daniel Jaeggi departed after Citigroup sold Phibro to Occidental Petroleum. The company recently closed an oversubscribed $2.2 billion multi-year secured borrowing base credit facility with a collection of international financial institutions. Mercuria is one of the world’s leading and growing commodities trading companies, with core exposure in energy. Mercuria’s goal is a 50% portfolio in renewable energy over the coming five years and invested US$30 million for a 10% stake in Nevada Copper.
Solway and Mercuria are top organizations in the international commodities business, with tentacles reaching across the globe. Both companies put their capital up as they see the compelling potential for Nevada Copper’s properties and business plan.
The shares continue to offer value, risk-reward favors the upside for Nevada Copper
Nevada Copper shares remain inexpensive at the end of December 2021. Aside from the Solway and Mercuria investments, insider buying is another bullish sign for the company. After a recent blackout period, CEO Randy Buffington purchased 200,000 shares, and the company’s directors have been buyers of the shares. Nevada Copper shares (NEVDF) peaked at $2.40 value in May when copper prices reached the high at nearly $4.90 per pound. Copper closed around the $4.40 level on December 23, and NEVDF shares having fallen dramatically in early December hitting yearly lows, could be a golden opportunity for investors that see the same potential as Solway and Mercuria.
Source: Barchart
The chart shows that NEVDF shares corrected to a low of 38.78 cents on October 1 as nearby copper futures moved to test the $4 per pound level. At 53.0 cents per share on December 23, Nevada Copper had a $236.328 million market cap.
Development companies are risky businesses as their future depends on delivering from their mines. The backing of two well-established commodities trading and investment companies, insider buying, and accelerated progress are positive signs for the company as we head into 2022.
New copper production is scarce, and mining companies are scouring the globe for new reserves. Nevada copper’s location, proven and probable reserves, management, progress, and investors bode well for the company’s future. Further progress could transform NEVDF from an emerging producer to a takeover candidate or established producer as the world’s leading miners are hungry for output. Risk is always a function of reward with any investment. At 53.0 cents per share, NEVDF’s potential compensates for the risk.
Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
