A couple weeks back we took a look at some of the more prospective (and active) exploration plays in Ontario and Quebec, particularly those along the prolific Abitibi Greenstone Belt.
Today we shift our focus further to the south, to Nevada.
If Nevada were a country, it would be the 4th largest gold producing nation on the planet.
Nevada also boasts Top Spot in the Fraser Institute’s Annual Investment Attractiveness Index.
A bit of Nevada gold history
It all started with the Carlin Trend—a belt of gold-rich sedimentary rock spanning some 64 kilometers long by 8 kilometers wide.
The Carlin Trend is legendary. The 26 mines peppered across the region have produced more than 84 million ounces of gold, with an additional 31 million ounces in the reserve category.
It’s believed that the trend was formed roughly 350 million years ago when a chunk of the Earth’s crust collided with the North American Plate. The pressure and temperatures generated from the collision created hot springs along a suture zone sending dissolved minerals towards the surface.
Brent Cook, co-publisher of the Exploration Insights and geologist extraordinaire:
“As Nevada was pulled and wrenched apart, deep cracks formed in the Earth’s surface. These cracks did two things; they drew the gold-bearing fluids toward them, and provided the conduits to move the fluids toward the surface.”
“Carlin-type” deposits are unique in the world of geology.
The gold distributed across the trend is often very low-grade, microscopic in fact. But where it lacks in grade it more than makes up for in rock volume. Example: the Goldstrike mine has produced well in excess of 40 million ounces and has current reserves of some 8.9 million ounces (proven and probable).
The Carlin Trend still has untold riches locked within its subsurface layers. Some peg current proven and probable gold reserves well north of 100 million ounces.
Due diligence
Before you shove hard-earned capital into these high-risk arenas, it’s essential that you hone your due diligence skills.
I cringe at the thought of people using online investment forums as their primary source of inspiration and guidance.
These online forms, though useful if you get to know the people involved, can be sinkholes for loose capital in the hands of lazy, undisciplined traders.
If you use these forums to generate ideas, get to know the characters behind the handles that dominate the discussion. But be aware that more often than not, these personalities are talking their book, or are just out looking to stir things up.
Learn the art of due diligence. Toss out the notion that investment decisions are best left to people that talk the talk.
Way back in the day, Doug Casey published his Eight Ps of resource stock evaluation. Despite what you might think of these resource sector gurus, this is how it’s done:
The Nevada ExpolrerCos
Our March 2019 Nevada ExplorerCo offering was a well-timed list. A good number of the companies we featured delivered respectable gains, a few tagged 100%-plus. One entity – BLACKROCK GOLD CORP– delivered a multi-bagger gain without reporting a single drill hole assay.
We’re going to narrow our focus somewhat from the 21 companies we originally featured.
Please note that this is not a comprehensive list, it’s an admittedly biased list—biased in the sense that these are the companies I follow personally.
Also, note that this is NOT a thorough deep-delve into the company’s fundamentals. This might best be characterized as a meaningful peek under the hood.
In a sector where JOY has been doled out with an eye-dropper of late, these companies stand out.
Enough with the preamble…
Barrian Mining (BARI.V)
- 44.39 million shares outstanding
- $9.77M market cap based on recent trading patterns
We’ve had our finger on the pulse of Barrian since before it began trading on the TSX Venture Exchange.
The company’s 3,332-acre Bolo Project boasts the following fundamentals:
- Good, year-round road access – critical infrastructure lies within easy reach.
- Though exploration dollars have been spent on the project in the past, Bolo is vastly under-explored.
- Up until Barrian entered the fray, NO modern geophysical or geochemical surveys were conducted on the property.
- Bolo is a Carlin-type setting – its mineralization is similar to the Pinson, Lone Tree/Stonehouse, and Turquoise Ridge/Getchell gold deposits – all multimillion-ounce orebodies defined by high-angle structures.
- Surface sampling has defined widespread gold mineralization along two parallel north-south trending faults: the Mine Fault and the East Fault.
- Significantly, alteration along the Mine Fault has been traced for 2,750 meters – outcrop samples returned gold values of up to 8.6 g/t gold.
- The East Fault has been traced for 2,200 meters and has sampled up to 4.7 g/t gold.
- Widespread anomalies offer numerous zones and targets for further exploration.
- More recently, an induced-polarization (IP) and resistivity geophysical survey identified multiple high-priority anomalies which boast a +1.1 kilometer geophysical signature.
Having recently conducted and concluded a reverse circulation (RC) drill program on the project, results are beginning to flow, and from what the company has tabled thus far, Bolo is beginning to look like the real deal.
Note the 1.2 kilometers trend between the various mineralized zones.
Bolo is all about connecting the dots along this 1.2-kilometer mineralized corridor. It’s all about establishing continuity between zones, tying in historic drilling with this current phase.
Equity Guru’s Lukas Kane was on top of the first assays to flow from Bolo:
“Hole BL19-02 intersected 32.0 metres of 2.01 grams-per-tonne (g/t) gold starting at 67 metres down hole, within a broader zone of mineralization averaging 1.01 g/t gold over 85 metres starting at 49 metres down hole.
These results extend the footprint of gold mineralization approximately 60 metres vertically below the previous drilling on section.”
The second hole from this 1,838 meter RC drilling campaign was trotted out last week, and it’s a good one:
Drill hole BL19-04 intersected two gold zones: an upper zone of 2.10 grams-per-tonne (g/t) gold over 36.6 metres starting at 80.8 metres downhole (including 3.25 g/t gold over 15.2 metres starting at 96.0) metres, AND, a lower zone of 3.32 g/t gold over 12.2 meters starting at 79 meters downhole.
The upper and lower zones occur within a broader envelope of mineralization averaging 1.19 g/t gold over 122 metres starting at 79 metres downhole BL-19-04.
At 200 metres below surface, the lower zone represents the deepest gold intercept in current or historic drilling and is among the highest-grade gold intercepts reported to date at Bolo. The lower zone is considered to be a new discovery, and of high priority for follow up drilling. Both zones remain open at depth and the lower zone is open along strike.
Though I have heard some debate over what constitutes “high-grade”, there’s no arguing that drill hole BL19-04 is a solid hit—a super solid hit.
Note that drill hole BL19-04 bottomed in mineralization – a yummy detail for those who appreciate geometry
Barrian anticipates additional drill results over the coming weeks. The remaining unreported drill holes intersected significant mineralized intersections that will provide potential to expand the South Mine Fault Zone and Uncle Sam Zone. The drilled areas form part of a greater mineralized trend that extends for over 1.2 kilometres along strike. The 2019 Induced Polarization (IP) ground geophysical program generated targets that correspond well with new results. The IP anomalies indicate mineralized areas may extend to depth and along strike, providing additional growth potential across the Bolo Project area.
Additional Bolo assays are pending. Judging by the share price volume generated in recent sessions, this project is being watched very closely.
(Barrian can earn an initial 50.01% interest in Bolo by incurring exploration expenditures of US$4 million and making staged option payments in shares to Allegiant Gold (AUAU.V) totaling US$1 million over the next 3 years. An additional 25% (for a total 75%) can be earned by completing an additional US$4 million in expenditures over an additional 2 years)
Barrian shares, which have only been trading for 6 months, are up over 100% off their recent lows.
This just in…
This is a good hole.
Hole BL19-01 represents one of the highest-grade gold intercept to date at Bolo, yielding 3.34 grams per tonne (g/t) gold over 29.0 metres, including a higher-grade zone of 4.97 g/t gold over 13.7 metres1. The intercept occurs within a broader envelope of mineralization averaging 1.37 g/t gold over 84 metres starting from surface.
We’ll revisit hole BL19-01 in the coming days.
Blackrock Gold (BRC.V)
- 60.48 million shares outstanding
- $14.82M market cap based on its recent close
Blackrock is up a solid 500% since we featured it back in early March 2019. The stock was nearly a 10-bagger earlier this month.
We appreciated the high-grade potential of Blackrock’s 4,537 hectare Silver Cloud Project—located near the confluence of the Carlin Trend and the Northern Nevada Rift—but we grew cautious of company management, especially after the tragic passing of company president Brian Morris back in November of last year.
That all changed when Andrew Pollard stepped up to the plate and assumed the role of CEO.
Andrew wasn’t looking for a mere walk (baseball metaphors anyone?). He promptly stacked management positions with some of the best in the business—Bill Howald is a name that stands out—and with a rapid round of geochemical and geophysical work, advanced Silver Cloud to the drill-ready stage.
People who know their low-sulphidation epithermal rocks are looking for an out-of-the-park home run here.
I’m getting ahead of myself…
Silver Cloud boasts an exclusive address:
A few particulars:
- Project hosts low-sulphidation epithermal Au-Ag banded veins;
- Historic drilling (1999 – 2001) by Teck (TECK.T) cut multiple high-grade intercepts including 1.5 meters of 157.7 g/t Au;
- Drilling by Placer Dome (2001) tagged 12.2 meters of 5.53 g/t Au (including 1.5 meters of 12.5 g/t Au);
- Previous operators of the project believed the mineralized veins ran North to Northwest;
Pollard’s crew, after examining the geochemical and geophysical data, now believe the low-sulphidation epithermal vein system runs East to West, between the above noted high-grade hits representing a strike of some 2 kilometers.
If these geological sleuths are right regarding this East-West orientation, this could get real good, real fast.
While conducting property wide exploration over the summer, the team discovered 8 new veins outcropping at surface.
We’ve talked about ‘data stacking’ in previous Guru offerings (in order to divine high-priority drill targets). These new veins sit atop a large geophysical and geochemical anomaly.
What does this new discovery tell us? It tells us Silver Cloud’s exploration upside is wide open.
On Humdinger Ridge and Honey Hill, several outcropping veins have been identified and mapped. The veins cut Miocene-age volcanic rocks which lie immediately above the Ordovician Upper Plate sediments. The geologic setting is significant since the Hollister mine lies just 3 kilometres east of the target area and has similar geology. Six opal/chalcedony veins have been identified on Humdinger Ridge. The veins are purple, a result of cinnabar and hematite minerals, and strike northerly, northwesterly to northeasterly, dip steeply and vary from less than 0.5 metres to greater than 5 metres in thickness. These veins occur over a one square kilometer area. Approximately 400 metres north of Humdinger Ridge, mapping at Honey Hill has identified two similar veins that are oriented in a west-northwest direction. All veins lie within an east-northeast oriented structural and alteration corridor that is 1200 metres long and 575 metres wide. The structural zone is open to the east and west.
Earlier this summer the company added additional acreage to their Northern Nevada Rift land position with the acquisition of the West Silver Cloud Property.
The truth machine
Blackrock began drilling Silver Cloud—the first drill program in more than 15 years—in early October.
Just last week the company announced it had completed the first drill hole, pushing the bit down some 470 meters.
William Howald, Executive Chairman:
“The first hole drilled at Silver Cloud in over 15 years has intercepted an intensely silicified interval with up to 10% sulphide in a strongly altered porphyry intrusive. Placer Dome previously intersected high-grade gold, including 1.5 metres grading 12.5 g/t gold, from a similar altered porphyry unit at the Northwest Canyon Target located 1.5 kilometres to the west. Hole SBC19-002 is currently being drilled in this area. Naturally, this is a very encouraging result and supports our view that a high-grade gold deposit may exist at depth at Silver Cloud. We look forward to the drill results from Hole SBC19-001 as we continue to make good progress towards completing the additional three holes that are planned as part of this drill campaign.”
This Carlin Trend-Northern Nevada Rift drilling campaign is being watched closely by the market.
Of interest, CEO Pollard occasionally chimes in on BRC channel over at the house Tommy Humphreys built.
Assays from the first hole could come any day, any hour (we stand to watch).
Coral Gold Resources (CLH.V)
- 47.29 million shares outstanding
- $22.22M market cap based on its recent close
I’ve been following this one since forever. The stock is up roughly 25% since we first featured it back in early March 2019.
Coral holds a sliding scale 1% to 2.25% net smelter royalty (NSR) on over 2.7 million ounces at Barrick Gold’s (now now Nevada Gold Mines, or NGM) Robertson Property located along the Cortez Gold Trend.
The installments are divvied out quarterly—advance payments have already come into play.
Back in March, we noted a watershed event for the company:
Under the agreement, concluded in June 2017, Barrick paid US$15.75 million (approximately Cdn $21.2 million based on the exchange rate at the time) to Coral. Barrick also returned 4,150,000 common shares of Coral, representing approximately 8.7% of the Company’s basic common shares outstanding for cancellation by the Company.
Earlier this past summer, the company reported progress at the Robertson Project, stating:
NGM continues to make steady, methodical progress at Robertson. They are gaining new insights into geology, grades and metallurgy, and we believe this thorough approach is the best way to bring the property onstream. We’re very pleased with both the results and the exceptional team developing the property.
On August 28th, believing its shares are not being given the respect they deserve, the company announced a Normal Course Issuer Bid for up to2,950,485 common shares representing roughly 10% of the current float.
They got to do something with all that cash, I guess.
Note that Coral, aside from their fat sliding scale royalty, controls three highly prospective projects in the vicinity of Robertson.
This is another company with a very good address.
Corvus Gold (KOR.V)
- 123.96 million shares outstanding
- $246.07M market cap based on recent trading patterns
Corvus’ primary focus is developing its North Bullfrog and Mother Load projects.
North Bullfrog, situated eight kilometers north of the Bullfrog Mine formerly operated by Barrick, encompasses some 86.6 square kilometers of prospective terrain.
The Mother Lode project covers an area of roughly 36.5 square kilometers.
Corvus is much further along the development curve than your average ExplorerCo.
Since we last featured the company, both North Bullfrog and Motherlode have undergone project optimization.
Lower Cost & Near-Term Production Potential
North Bullfrog Project
Initial deposit modeling work has shown potential for the North Bullfrog deposits to be developed as a multi-phase, low strip, open-pit heap leach project. Corvus is working on a Phase I project plan that it believes would have lower capex and a rapid start-up development phase, with a smaller footprint, near-term open-pit mining project focused on the YellowJacket and north Sierra Blanca area where baseline environmental permitting is well advanced and key infrastructure is in hand (power & water).
Mother Lode Project
Corvus is in the process of modelling a Phase I starter pit of ROM oxide only heap leach material that it believes has the potential to generate positive cash flow while the new bio-oxidation (“BiOx”) sulfide recovery system is tested with a large-scale pilot facility (high-grade sulfide material excavated in the Phase-I pit). The Company anticipates that the Mother Lode Phase-II project would focus on expanding sulfide processing to commercial scale in the years following Phase-I.
Both projects have also seen their geological footprints expand, the Motherlode project having delivered long drill intercepts including 126 meters of 1.85 g/t Au.
Newsflow delivered progress on multiple fronts since we last checked in, including a whopping $23M bought deal financing priced at $2.00 per share and a $1.3M strategic investment by AngloGold Ashanti at a price of $2.60 per share (this investment by AngloGold was well received by the market).
Corvus shares are basically flat since we first featured the company back in March, though they have been volatile.
Ely Gold Royalties (ELY.V)
- 100.25 million shares outstanding
- $40.1M market cap based on its recent $0.40 closing price
ELY has delivered a solid gain of 135% since we first featured the company earlier this spring.
As we noted back in March, Ely is an emerging royalty company with projects based in Nevada and the Western U.S. Its portfolio at the time included 27 deeded royalties and 24 optioned properties. There have been additions in recent months.
For those of you new to the gold-royalty business model, when a deposit is put into production, underlying royalty holders, like ELY, collect a check every quarter, without lifting a finger.
It’s a beautiful business model, particularly when the underlying projects represent significant ounces-in-the-ground.
If we are right about peak gold and the dearth of new gold deposits coming on stream in the years to come, the projects ELY is positioned in will likely receive a bigger push along the development curve.
ELY has reported developments on a number of fronts over the past seven months.
- Apr 18th – Ely Gold Royalties Announces Purchase of Additional of Fenelon Royalty
- Apr 24th – Ely Gold Royalties Announces Purchase of Lincoln Hill Royalty
- May 2nd – Ely Gold Royalties Closes First Producing Royalty
- July 2nd – Ely Gold Closes Royalty Sale and Private Placement with Eric Sprott
- July 24th – Ely Gold Royalties Signs Much Anticipated Option Agreement with Contact Gold
- Aug 20th – Ely Gold Royalties Announces Sale of Gold Canyon Option to McEwen Mining
- Sept 9th – Ely Gold Royalties Purchases Jerritt Canyon Production Royalty
- Sept 16th – Ely Gold Royalties Purchases Gold Bar Royalty
- Oct 17th – Ely Gold Royalties Announces C$6.0 Million Line of Credit Agreement with Eric Sprott
There’s a lot going on here—a lot of moving parts—that could create significant shareholder value as the next up-leg in gold unfolds.
Fiore Gold (F.V)
- 97.78 million shares outstanding
- $37.64M market cap based on recent trading patterns
Fiore, a new producer in the gold space, is up roughly 20% since we featured it back in early March, though it has traded significantly higher in recent weeks.
The company’s Pan Mine in Nevada—a Carlin-style, open-pit, heap-leach mine on the prolific Battle Mountain-Eureka Gold Tend—is just the beginning of what the company hopes will evolve into a 150,000 oz-per-year production scenario.
Building production is the goal of every small producer with development assets on deck…
Pan has an interesting history—the project was acquired on the cheap when the previous operators bankrupted their company…
The Rise and Fall of Midway Gold and the Resurrection of the Pan Mine in Nevada
Give credit to the company for maintaining a reasonably tight share structure as it ramped up production—a difficult task, even under the best of circumstances.
In late May, the company delivered Q2 production numbers that caught the attention of the market—a 68% increase in operating cash flow over the prior years quarter.
Then, on July 16th, the company announced record quarterly gold production at Pan.
After a powerful spring-summer rally that saw Fiore common top out in the sixty-cent range, the stock has since given some back.
Fiore has two very decent (consecutive) quarters of production under its belt and a number of development projects that could drive the company’s share price significantly higher, especially if (when) the next upleg in gold kicks in.
Gold Standard Ventures (GSV.T)
- 277.45 million shares outstanding
- $288.55M market cap based on its recent $1.05 close
Gold Standard, another Nevada ExplorerCo positioned much further along the development curve, has lost ground since we first featured the company earlier this spring.
The Company’s flagship Railroad-Pinion Project is located along the Piñon mountain range of the Railroad Mining District of Nevada.
The Pinion and Dark Star gold deposits offer a potential near-term development option for the company.
Pinion has an Indicated resource of 31.61 million tonnes grading 0.62 g/t Au for 630,300 ounces of gold and an Inferred resource of 61.08 million tonnes grading 0.55 g/t Au for 1,081,300 ounces of gold. This resource is due for revision to include recent success with the drill bit.
Dark Star, 2.1 kilometers to the east of Pinion, has an Indicated resource of 15.38 million tonnes grading 0.54 g/t Au for 265,100 ounces of gold and an Inferred resource of 17.05 million tonnes grading 1.31 g/t Au for 715,800 ounces of gold. This resource is also due for revision to include highly favorable results from a 2018 drilling campaign.
Last week the company tabled a prefeasibility study (PFS) for its Dark Star and Pinion oxide gold heap leach projects:
Though the news was greeted with a yawn, the after-tax Net Present Value (NPV) of $241.5 and Internal Rate of Return (IRR) of 27.8% represent respectable numbers. The initial CapEx of $194M is agreeable for a project this size.
Newrange Gold (NRG.V)
- 96.98 million shares outstanding
- $11.64M market cap based on its recent $0.12 closing price
Newrange’s shares are trading roughly flat since we first looked in, though there has been a great deal of volatility on the price chart.
Newrange is looking at near to intermediate term production opportunities in Nevada’s Walker Lane Trend.
Pamlico is the company’s flagship project.
Over 53 million oz’s of gold and 519 million oz’s silver have been extracted from Walker Lane historically.
Pamlico’s 1,670 hectares covers the historic Pamlico group of mines, as well as the nearby Good Hope, Gold Bar, and Sunset mines.
Newsflow in recent months has reflected progress on the following fronts:
- Property-wide magnetic, radiometric and gravity geophysical surveys
- Sampling of the Merritt decline
- Surface mapping, sampling & trenching
- Underground surveying, mapping, and sampling
- Multi-phase RC drilling – 5,660.8 meters in 47 holes
- Preliminary metallurgical testwork
- Permitting for underground development and continued bulk sampling
The company is currently trading at the low end of its yearly range.
NV Gold (NVX.V)
- 46.42 million shares outstanding
- $8.12M market cap based on its recent close at $0.175
NVX shares are up roughly 20% since our last peek at the company.
NV Gold is a junior ExplorerCo focused on delivering shareholder value by utilizing the prospector generator business model on its extensive portfolio of Nevada based projects.
In-house technical knowledge—take a close look at the management line-up—and a decades-in-the-making geological database of research and exploration serve as NVX’s vehicle to create opportunities for lease or joint venture.
Two new properties—Slumber and Sandy Gold—were acquired over the past few months using this exclusive database.
The company’s 100% owned Roots Spring Project located in the East Range of Pershing County, received a thorough round of surface work recently.
Highlights from this program include:
- 39 rock-chip samples were collected and submitted for assaying.
- 28% returning silver assays greater than 150 g/t, and up to 1,495 g/t silver.
- 41% of samples returned greater than 0.5 g/t gold, 23% of samples returned greater than 1 g/t gold, and up to 8.02 g/t gold.
- Positive base metal results up to 0.51% copper, 0.68% lead, and 0.89% zinc.
The company is currently considering a fall drill program for the project.
Drill rigs were also mobilized to the company’s Frazier Dome and Slumber projects.
On September 25th, the company announced that significant alteration and silicification had been encountered at the Slumber project in a 7-hole RC drill program.
Assays are pending.
This is an interesting ExplorerCo backed by a top-shelf management team. One to watch.
Renaissance Gold (REN.V)
- 68.46 million shares outstanding
- $18.48M market cap based on its recent close at $0.27
Renaissance shares are up a good 65% since we first featured the stock last March—the stock tested significantly higher ground only a few weeks back.
For those familiar with Long Canyon, you’ll remember Renaissance emerged as a spin-out from the 2010 acquisition of AuEx Ventures by Fronteer Gold.
Early AuEx shareholders were treated to a double stroke of fortune when Frontier was subsequently taken out by mining giant Newmont.
I stated (lamented) the following in our early coverage of the company last spring:
I remember these transactions all too well. I held AuEx for well over a year and dumped my entire position only hours before the FAT takeover offer was announced. Be right – sit tight… there’s a topic worthy of some discussion.
Renaissance—another Nevada based ExplorerCo deploying the prospect generator business model—boasts a project portfolio of Carlin-type, epithermal, and intrusive-related projects.
Since our last visit, the company announced a $1.4M strategic investment by Altius Metals (this is a highly significant transaction—a real vote of confidence by a real deal crew).
On October 18th, the company released an exploration update from what appears to be a very active field season consisting of geochemical and geophysical surveys, mapping, and multiple drill campaigns.
There is a lot of information in this exploration update. The following excerpt covers only half of it:
2019 Drill Programs
Silicon
The Silicon Project, Nye County Nevada is subject to an option to purchase agreement with AngloGold Ashanti (AngloGold). AngloGold conducted drilling through May, 2019 and to date have completed 28 reverse circulation holes totaling 11,156 meters (36,591 feet) and 19 core holes totaling 7,863 meters (25,791 feet). AngloGold has paid RenGold US$600,000 of the total purchase price of US$3,000,000, with the final payment of US$2,400,000 due in June, 2020. AngloGold is currently working to obtain a Plan of Operations permit to allow further drilling.
Mars
The Mars Project, Lincoln County, Nevada is subject to an earn-in agreement with Hochschild Mining plc. Hochschild funded a soil geochemistry survey, additional geologic mapping and an induced polarization (IP) survey. These new data were combined with existing gravity data to design several new, district scale structural and stratigraphic targets on the project. A ten (10) hole, 2320 meter (7610 feet) reverse circulation drill program was completed in early October, 2019. Drill samples have been submitted to the laboratory for analysis and will be reported when they become available.
Jupiter
The Jupiter project, Nye County, Nevada is subject to an earn-in agreement with Ramelius Resources Ltd. The third drill campaign under this agreement began in mid-October, 2019 and is designed to test “Long Canyon-type” targets occurring along the Cambrian-Ordovician unconformity. One earlier hole drilled in 2017 tested this target and encountered jasperoidal alteration at the unconformity. The current program is designed to further test this horizon in the vicinity of mapped mineralized structures containing gold in rock-chip assays up to 0.98 g/t.
Ferguson Mountain
The Ferguson Mountain project, Elko County, Nevada is subject to an earn-in agreement with Hochschild Mining plc. A seven (7) hole, 1415 meter (4640 feet) reverse circulation drill program was completed in September, 2019 testing several favorable structural and stratigraphic targets associated with mapped, mineralized high-angle structures. No reportable intercepts were encountered in the drilling, and the results are being reviewed with Hochschild to determine the next step for this project.
Fat Lizard
The Fat Lizard project, Nye County, Nevada is subject to an earn-in agreement with OceanaGold Corp. A three (3) hole, 1303 meter (4275 foot) oriented core program was completed in September, 2019. The program was designed to test deeper levels of an exposed high-level alteration system. No reportable intercepts were encountered in the drilling, and the results are being reviewed with OceanaGold to determine the next step for this project.
Newsflow promises to be steady over the coming months.
VR Resources (VRR.V)
- 57.71 million shares outstanding
- $17.31M market cap based on its recent $0.30 close
VRR shares are trading roughly 100% higher from when we first featured the company back in March.
In mid-July, VRR spiked higher on big ass’d volume for no apparent reason.
The discussion over on the VRR channel at ceo.ca labeled the move a “buygasm” (well crafted).
As it turns out, it was a buy recommendation from an investment newsletter that goosed the stock.
Normally, these out-of-the-blue price spikes give back the ground claimed shortly after the excitement dies down. This one stuck… and continued to stair-step higher on the charts.
The company is currently focused on its Big Ten Project in Nevada
A recent acquisition in northern Ontario—VR Confirms IP Anomaly at its Ranoke Copper-gold Property in Ontario, and Prospecting Discovers Iron Oxide Breccia in the Area—will also see a first pass drill program in the not-too-distant future.
West Kirkland Mining (WKM.V)
- 408.67 million shares outstanding
- $26.56M market cap based on its $0.065 share price
WKM continues developing its 75% owned advanced stage Hasbrouck Gold Project outside of Tonopah Nevada.
Hasbrouck sports 784,000 ounces of gold in the Mineral Reserve category.
The project is fully permitted.
This is a simple mining scenario, as simple as it gets.
A pre-feasibility study tabled in 2016 shows a CapEx of US$47M, an after-tax NPV of US$120M, and an IRR (after tax) of 43%… all based on a $1275.00 gold price assumption. These are solid numbers—the project’s CapEx is very modest.
The only real piece of news out of the Hasbrouck camp in recent we months, aside from a permitting update, has been a revised strategic plan.
Key objectives of the company’s revised strategic plan include:
- Holding permitted gold reserves in Nevada;
- Minimizing holding and overhead costs;
- Protecting and enhancing shareholder value;
- Developing the Hasbrouck Project if and only if market conditions are compelling and financial risks are low;
- Returning capital to shareholders.
There you have it. That’s it for our tour of Nevada.
END
—Greg Nolan
Full disclosure: of the companies featured above, only Barrian Mining is an Equity Guru marketing client.