Quebec

Genesis Metals Continues To Prove Up Chevrier Mineralization; Further Drilling About To Start

Chevrier Gold project; core shack Main Zone

After having completed a 10,150m 58 hole drill program on the Main Zone, plus 25 new trenches and re-sampling of 11 historic cores, it seems that Genesis Metals is well on its way to get more insight in the complex geology of Chevrier, therefore an update is warranted. Follow up drilling on a new Main Zone extension is about to commence in this spring, and a maiden resource estimate is scheduled for Q3, 2018. On top of that, the company is contemplating drilling other geological targets as well, as the property has abundant exploration potential.

All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

Genesis Metals: Chevrier Phase I Drilling Completed, Phase 2 Program Commencing

Chevrier Gold project; IP anomaly

In between exploration success stories (for example GT Gold) or possible myths in the making (Novo Resources) taking center stage, Genesis Metals quietly completed the Phase I drill program, consisting of 4,900m of diamond drilling. Results were announced on October 3rd of 9 drill holes, and channel sampling. Management received two separate batches of results of the Phase I drill program, reporting 8 out of 9 holes testing greenfield IP anomalies in 2 target areas in (see image above in red) now in the first batch, and the remaining 13 drill holes focused on the Main Zone will come out in the second batch in about 3 weeks.

A Critical Q & A With Nemaska Lithium CEO Guy Bourassa

It has been relatively quiet around Nemaska Lithium the last 6 months or so, after it started construction on the Phase I plant and completed several early stage parts of the Whabouchi Mine, besides looking for capex financing packages along the way. Although lithium product prices held up very well at relatively high levels and are even slowly rising again:

Source: Galaxy Resources/CJ Securities by Seekingalpha

the Canadian stock market sentiment turned a bit soft/neutral, so an advanced and permitted lithium development story looking for major funding often doesn't get the most love from investors in this kind of climate, as can be seen in this chart:

Genesis Metals Raises C$4M, Welcomes Eric Sprott And Osisko Mining As Significant Shareholders, Drilling At Chevrier Starts In July

After compiling, interpreting and modelling all available data and surveys, and defining targets, Genesis Metals needed cash to advance their flagship Chevrier Gold project to the next stage: commencing of drilling. Management worked hard to gain interest, and it seemed they succeeded in their aim to get the company funded to drill well into 2018. On top of this, they welcomed two of the most respected and well-known names in the business, Eric Sprott and Osisko Mining as significant shareholders, which is impressive. The company completed 2 rounds of financing to achieve this. 

On June 5, 2017, Genesis Metals closed its C$3.25-million non-brokered private placement previously announced on May 24, 2017. Eric Sprott, Delbrook and other large, strategic institutional investors also participated in this first big round.

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.

Balmoral Resources: Flagship Asset Martiniere Definitely Looks Like It's Heading In The Right Direction

Executive Summary:

  • Balmoral Resources is advancing two interesting discoveries, the Martiniere gold project and the Grasset nickel/copper/PGE deposit
  • Grasset is one of very few nickel deposits available in safe jurisdictions, decent grade but small
  • Martiniere is the flagship project, and continuing high grade drill results seem to define a collection of several interesting mineralized envelopes, all starting near surface
  • The company was too optimistic in the recent past about timelines of the maiden resource estimate, but I believe Q3 2017 to be my own realistic estimate for Martiniere this time
  • Martiniere could very well top 2M ounces of high grade gold, partly open pittable which could generate very interesting economics, making it one of the premier exploration plays in the Abitibi Greenstone Belt

After Closing Of C$69M Equity Financing, Nemaska Lithium Remains On Track For Q2 2018 Production

Whabouchi Project; pegmatites

Nemaska Lithium (NMX.TO) reached two important milestones on July 8, 2016, as it completed its previously announced public offering for aggregate gross proceeds of $69M, and got uplisted from the Venture to the TSX. This financing was important, as the company needed cash to proceed with down-payments for long lead items for the main project, which in turn were needed to stay on course with the time schedule leading to production in Q2 2018.

Nemaska Lithium On Its Way To Become A Lithium Powerhouse

Executive summary

  • Nemaska Lithium has one of the best hard rock lithium deposit worldwide
  • The Whabouchi project, located in mining friendly Quebec, is fully permitted, and has the second highest grade of lithium oxide and second largest hard rock reserves globally behind the Greenbushes deposit in Australia
  • An updated Feasibility Study has been completed this year, generating solid results with an after tax NPV8 of US$928M (C$1.2B) and IRR of 30.3% based on a $439M capex and conservative $9500/t lithium hydroxide price, making it the most advanced lithium project around, and indicating lots of upside left after the recent run up
  • Nemaska just finalized the $12M Johnson Matthey Battery Materials off take agreement which was the last building block needed to complete the $38M funding needed for the important Phase 1 plant, and expects to start production from the Phase 1 Plant in Q1 2017
  • Through a series of catalysts, commercial production of the Whabouchi Mine and commercial Hydromet plant is planned to commence in H2 2018, which makes it the first new lithium producer in the Americas after Orocobre, and is in time to profit from the rapidly developing global EV/energy storage/fossil free trend

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