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Oreninc Index: January 14, 2019

 

ORENINC INDEX all but evaporates despite strong news flow

 

ORENINC INDEX - Monday, January 14th 2019

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Last week index score: 25.07

This week: 9.88

 

Nexus Gold (TSXV:NXS) reported initial sampling results its recently acquired Dakouli gold project in the Boromo-Goren Greenstone Belt in Burkina Faso.

Nexus Gold (TSXV:NXS) completed the acquisition of the New Pilot gold project in the Bridge River mining camp in British Columbia, Canada.

Avrupa Minerals (TSXV:AVU) closed the second tranche of its private placement of C$232,000 comprised of 4.6 million.

 

The Oreninc Index all but evaporated in the week ending January 11th, 2019 to 9.88 from 25.07 despite a strong week for news releases.

With gold consolidating shy of the US$1,300/oz mark, mining stocks continued to see growth, with a flood of production and exploration results hitting the wires during the first full work year of 2019. This flood of activity, combined with the dire figures of the Oreninc index, could be interpreted as a sector clamouring for investor attention now that it is perceived that the gold market is turning up. The question remains however, when (or if) will the apparently strengthening market convert into funds coming back into the market for equity raises?

Oil also began 2019 with some energy, putting in a significant growth spurt to lift it from 18-month lows after OPEC officials said Saudi Arabia plans to cut its crude exports to 7.1M barrels a day by the end of January.

On the political front, the showdown between US President Donald Trump and the Democrat controlled House of Representatives continued, with both sides digging in their heels. Democrats are adamant that they will not fund the construction of a wall on the Mexican border to keep out illegal immigrants, with Trump threatening to invoke executive emergency powers in order to do so if the impasse continues. The impasse continues.

The UK is witness to another political impasse with disagreement about how (or if) the UK should leave the European Union. Prime Minister Teresa May will take the deal she negotiated with the EU for debate in Parliament the week of the 14th January even though it looks as though it will be rejected by parliamentarians. If it is, which is widely expected, the government will have three days to present a plan B, whilst May’s government could face a vote of no confidence that could ultimately trigger a general election.

On to the money: a dire week for the index with several metrics reporting their lowest ebb for more than one hundred weeks. Total fund raises announced dropped to single digits to C$5.2 million, a 209-week or four-year low, that included no brokered financings and no bought-deal financings. The average offer size fell again to C$0.52 million, a 418-week or eight-year low, whilst the number of financings halved to ten, a 155 or three-year low.

Gold continued its growth—although the curve is flattening—closing up at US$1,290/oz from US$1,286/oz a week ago. The yellow metal is up 0.61% this year. The US dollar index fell again to close down at 95.67 from 96.17 last week. The van Eck managed GDXJ could not sustain the momentum of the gold price and closed the week down at US$30.69 from US$31.28 a week ago. The index is up 1.56% so far in 2019. A similar tale at the US Global Go Gold ETF that closed down at US$11.61 from US$11.66 a week ago. It is up 1.75% so far in 2019. The HUI Arca Gold BUGS Index closed down at 159.40 from 162.32 last week. The SPDR GLD ETF inventory lost its recent momentum to close down at 797.71 tonnes from 798.25 tonnes a week ago, pulling back from a mid-week high of 799.18 tonnes.

In other commodities, silver shed some cents to close down at US$15.60/oz from US$15.70/oz a week ago. Copper continues to hover in the $2.60s/lb closing up at US$2.66/lb from US$2.64/lb a week ago. Oil continues to bounce WTI closed up at US$51.59 a barrel from US$47.96 a barrel a week ago.

The Dow Jones Industrial Average continued in growth mode to close up at 23,995 from 23,433 last week. Canada’s S&P/TSX Composite Index also continued to grow as it closed up at 14,939 from 14,426 the previous week. The S&P/TSX Venture Composite Index also closed up at 601.77 from 587.44 last week.

 

Summary

·      Number of financings decreased to 10, a 155-week low.

·      No brokered financings were announced this week.

·      No bought-deal financings were announced this week.

·      Total dollars plummeted to C$5.2m, a 209-week low.

·      Average offer size diminished further to C$0.52m, a 418-week low.

 

                                                          

Major Financing Openings

·      International Corona Capital (TSXV:IC) opened a C$1.0 million offering on a best efforts basis.

·      Surge Exploration (TSXV:CPV) opened a C$0.75 million offering on a best efforts basis. Each unit includes a warrant that expires in two years.

·      Nevada Exploration (TSXV:NGE) opened a C$0.5 million offering on a best efforts basis. Each unit includes half a warrant that expires in two-and-a-half years.

 

Major Financing Closings

·      Argo Gold (TSX:ARQ) closed a C$1.19 million offering on a best efforts basis.

·      Frontier Lithium (TSXV:FL) closed a C$1.1 million offering on a best efforts basis. Each unit included half a warrant that expires in two-and-a-half years.

·      Silver One Resources (TSXV:SVE) closed a C$0.62 million offering on a best efforts basis. Each unit included half a warrant that expires in three years.

·      Debut Diamonds (CNSX:DDI) closed a C$0.6 million offering on a best efforts basis.

 

Company News

Nexus Gold (TSXV:NXS) reported initial sampling results its recently acquired Dakouli gold project in the Boromo-Goren Greenstone Belt in Burkina Faso.

·      Ground reconnaissance identified new near surface workings being exploited by artisanal miners. Rock samples returned assays up to 29.5g/t Au with several containing visible gold.

·      12 samples were taken from the Northeast Zone. Six returned grades with values between 2.90g/t Au and 29.5g/t Au.

 

Analysis

The size of the artisanal workings and the coarse nature of the gold seen makes this an exciting prospect for the company. Nexus plans to continue with ground work towards defining a maiden drill program to test the potential of Dakouli.

 

Nexus Gold (TSXV:NXS) completed the acquisition of the New Pilot gold project in the Bridge River mining camp in British Columbia, Canada.

·      Exploration-stage gold-copper property covering about 509 hectares.

·      Nexus issued 3.5 million shares to vendor Warren Robb.

·      Three styles of mineralization have been identified on the project: siliceous fractures containing sulphides, carbonate altered shears and quartz veins containing arsenopyrite.

 

Avrupa Minerals (TSXV:AVU) closed the second tranche of its private placement of C$232,000 comprised of 4.6 million.

·      C$732,000 of the private placement has now been closed.  

·      Each unit is comprised of one share and one warrant exercisable @ $0.10 for three years.

 

 

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