Extensive Analysis

Tinka Resources: Ayawilca Resource Update Confirms Expectations; Upcoming PEA Could Surprise Markets

Ayawilca project; drilling location

1. Introduction

It is a busy and exciting time for top zinc junior Tinka Resources. Drill results are rolling in all year now, Tinka is the talk of the town at many conferences, the team got a much deserved accolade by receiving the Mining Journal "Explorer of the year 2017" award, and the company got listed on the Peruvian stock exchange (Lima Stock Exchange or BVL). I liked this move, as it made the company less dependent on for example Canadian brokers/banks to raise money in the future.

Rise Gold: A Tiny Junior Targeting 1-3Moz High Grade Gold, Left Behind In Past-Producing Idaho-Maryland Mine

Former Idaho-Maryland Mine, Nevada County, California

1. Introduction

Sometimes I come across mining stories that read like an old fashioned treasure hunt of sorts. Rise Gold (RISE:CSE, RYES:OTC), a small junior headquartered in Vancouver, falls neatly into this category in my view. CEO Ben Mossman found the past-producing high grade Idaho-Maryland gold mine after intensely searching the internet for about 5 months, scanning eligible projects up for sale, historic databases and other leads. When he started doing his due diligence, which meant sifting through a basement full of old documents, it soon dawned on him that this project could host huge exploration potential, besides the considerable historic (2002) high grade estimate of 0.4Moz @ 9.1g/t Au M&I and 0.9Moz @12.7g/t Au Inf, as the Idaho-Maryland had to halt production in 1954 when it was nowhere near depletion.

A Critical Q & A With MGX Minerals CEO Jared Lazerson

Oil wells; source

According to the significant number of news releases and different projects and activities going on at the moment, MGX Minerals (XMG.CSE) must be one of the busiest junior mining companies I know. A few of those activities definitely have the potential to be company makers on a vast scale in my view. However, as most activities are still relatively early stage, not verified and sometimes seem to compete for strategy focus, it could be difficult at times to follow what's exactly going on for investors, let alone adequately value the company. As a consequence, the share price has been side-ranging for quite a while now, as can be seen here:

The Fiore-GRP Deal: Giustra Builds Another Gold Producer

Pan Mine, Nevada

1. Introduction

In December 2016 I introduced Fiore Exploration, a new company backed by Frank Giustra, and it has been a relatively quiet 6 months. Fiore completed some drilling on the Pampas El Peñon project in Chile and an IP survey on the newly acquired Cerro Tostado.

But behind the scenes, things were in motion. Earlier this year, Fiore began exploring the idea of merging with GRP Minerals, a private company ramping up the PAN heap leach operation  in Nevada. GRP bought Pan and other Midway Gold assets for US$5.5M and spent another US$18 million on upgrading and restarting the operation. Midway had spent more than US$100 million constructing the Pan mine but in the end failed to execute. The demise of Midway Gold is a whole other story, one I will touch on later.

Upcoming Pegmont Resource Update Will Probably Indicate Lots Of Upside For Vendetta Mining

Pegmont; step out drilling

1. Introduction

As I have already explained before in a recent article on sponsoring company Tinka Resources, the zinc market is on the verge of a potentially huge supply deficit as several large mines have been shut down with more zinc producers to follow suit.

The uptrend in the new zinc cycle has already started when the zinc price moved from less than $0.70/lb  to a recent high of $1.32/lb, consolidating around $1.12/lb at the moment, so it is interesting to focus on interesting projects which could be brought into production in the current zinc cycle which is expected to last 2-3 years.

Tinka Resources: Ayawilca Could Grow Into A World Class Zinc Asset After Successful First Stage Of Step Out Drilling

Ayawilca project; drilling location

The extended version of this article will be published soon on www.criticalinvestor.eu

1. Introduction

When a zinc junior manages to hit 63.9m @ 5.6% Zn and 51.9m@ 10.1% Zn in the very first step out drill hole of a new exploration program, you know they could be on to something very special. Until then, the markets were largely unaware of Tinka Resources and its Ayawilca zinc project in Peru, but this changed very quickly after this, and other intercepts. They were even one of the hottest exploration stories at this year's PDAC.

After doing my due diligence, talking to management, comparing the company with peers, and calculating different scenarios, it appears to me that Tinka could become one of the best zinc juniors around, and the strong drill results so far seem to be underlining my opinion.

Leagold Mining: Woodyer & Giustra Are Building Endeavour Mining 2.0

 

Executive Summary:

  • After Neil Woodyer left Endeavour Mining as a CEO in 2016, he teamed up with mining titan Frank Giustra, to set up Leagold
  • They managed to buy the Los Filos gold mine from Goldcorp in Mexico for US$350M
  • After giving this a closer look, it seems a profitable acquisition for Leagold
  • Development potential provides significant upside in a few years
  • Management is aiming at aggressive growth in order to build the next mid tier producer

Chevrier Gold Project: A New District-Scale Start With Lots Of Upside For Genesis Metals

Chevrier Gold project

1. Introduction

Being established at the peak of the last precious metals bull market as its predecessor Entourage Metals, junior explorer Genesis Metals didn't have the most easiest of times to make a name for itself. Despite a set of very prospective claims and a very experienced team of well-known geologists, things went south during the bear market as significant new discoveries couldn't be made at the time.

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