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Oreninc Index: November 19, 2018

 

ORENINC INDEX inches up again

ORENINC INDEX - Monday, November 19th 2018

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Last week index score: 29.73

This week: 24.70

 

NuLegacy Gold (TSXV:NUG) reported it has a core rig and a reverse circulation (RC) rig drilling on its Red Hill property in Nevada, USA. 

Nexus Gold (TSXV:NXS) entered into a mineral property acquisition agreement to acquire the New Pilot gold-copper exploration project in the Bridge River Mining Camp in British Columbia.

Zinc One Resources (TSXV:Z) announced drill results from the remaining unreported holes in the Mina Grande Centro zone of its Bongará zinc mine project in north-central Peru. It also appointed COO Dr. Bill Williams as interim CEO.

 

The Oreninc Index fell in the week ending November 16th, 2018 to 24.70 from 29.73 a week ago as brokered financings again disappeared.

Many MPs (Members of Parliament) in the UK are in open revolt as Prime Minister Teresa May delivered what she believes is the definitive agreement for the nation to withdraw from the European Union. The document produced widespread opposition from across all parties as well as those that are for or against leaving the EU.

Gold flirted with falling below the US$1,200/oz mark through most of the week before recovering to put some daylight between it and that level. The US Dollar Index continues to show strength and with US inflation rising in October, the US Federal Reserve will likely raise interest rates in December.

M&A surprises continue to come as the week saw Pan American Silver seek to take over Tahoe Resources, which has suffered a litany of setbacks in recent years.

A tough week for oil as OPEC warned that crude demand is falling faster than expected.

On to the money: total fund raises announced increased to C$60.6 million, a four-week low, which included no brokered financings or bought-deal financings. The average offer size increased to C$3.6 million, an eight-week high, whilst the number of financings decreased to 17, a two-week low.

Gold survived a tough start to close the week up at US$1,223/oz from US$1,209/oz a week ago. It is now down 6.10% this year. The US dollar index pulled back slightly to close down at 96.46 from 96.90 last week. The van Eck managed GDXJ saw growth as it closed up at US$27.51 from US$27.13 a week ago. The index is down 19.40% so far in 2018. The US Global Go Gold ETF closed down however at US$10.37 from US$10.48 a week ago. It is now down 20.29% so far in 2018. The HUI Arca Gold BUGS Index also closed up at 148.56 from 143.41 last week. The SPDR GLD ETF added to its inventory closing up at 759.68 tonnes from 755.23 a week ago.

In other commodities, silver saw some long-awaited growth to close up at US$14.42/oz from US$14.16/oz a week ago. Copper also saw growth to close up at US$2.81/lb from US$2.68/lb last week. Oil continued its slide as WTI closed down at US$56.46 a barrel from US$60.19 a barrel a week ago.

The Dow Jones Industrial Average saw a losing week as it closed down at 25,413 from 25,989 last week. Canada’s S&P/TSX Composite Index also closed down at 15,155 from 15,274 the previous week. The S&P/TSX Venture Composite Index also closed down at 624.51 from 651.42 last week.

 

Summary

·      Number of financings decreased to 17, a two-week low.

·      No brokered financings were announced this week, a two-week low.

·      No bought-deal financings were announced this week, a two-week low.

·      Total dollars increased to C$60.6m, a four-week high.

·      Average offer size increased to C$3.6m, an eight-week high.

 

 

Financing Highlights

Seabridge Gold (TSX:SEA) secured a non-brokered private placement of 1.0 million shares @ C$14.00 for gross proceeds of C$14.0 million.

·      The proceeds will be used to fund general working capital requirements and a 2019 drill program at the Snowstorm project in Nevada, USA.

·      The private placement is expected to close on or about November 23rd.

 

 

Major Financing Openings

·      Seabridge Gold (TSX:SEA) opened a C$ 14 million offering on a best efforts basis.

 

Major Financing Closings

·      Great Bear Resources (TSXV:GBR) closed a C$ 3.5 million offering on a bought deal basis.

·      ZincX Resources (TSXV:ZNX) closed a C$ 1.22 million offering on a best efforts basis.    

·      Viva Gold (TSXV:VAU) closed a C$ 1.11 million offering on a best efforts basis.  Each unit included a warrant that expires in two years.

·      East Asia Minerals (TSXV:EAS) closed a C$ 1.01 million offering on a best efforts basis.

 

 

Company News

NuLegacy Gold (TSXV:NUG) reported it has a core rig and a reverse circulation (RC) rig drilling on its Red Hill property in Nevada, USA. 

·      A third, deep RC drill will be added later in November to drill deeper targets to recover from permitting and drill rig availability delays and complete the ten-hole fall exploration program.

·      The ten-hole program includes holes in the Serena zone to expand on the results from earlier in the season and widely spaced step-out holes 1,000m west of the South Iceberg zone, 1,500m west of the Avocado zone and 2,000m west of the Serena zone.

 

Analysis

Nulegacy is ramping up exploration to make up for lost time earlier in the season in order to have plenty of information to process over the winter shutdown. Step-out drilling is aggressive as it seeks to extend the footprint of the mineralized bodies it has discovered so far and put more meat onto their bones.

 

Nexus Gold (TSXV:NXS) entered into a mineral property acquisition agreement with Warren Robb to acquire the New Pilot project, a gold-copper exploration property in the Bridge River Mining Camp, 180km north of Vancouver, British Columbia.

·      Payment of 3.5 million shares.

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

 

Analysis

The acquisition represents geographic diversification away from Africa and into a lower risk jurisdiction, where there is increasing exploration interest.

 

Zinc One Resources (TSXV:Z) announced drill results from the remaining unreported holes in the Mina Grande Centro zone of its Bongará zinc mine project in north-central Peru.

·      The holes delineated the northern and western perimeters of mineralization previously mined.

·      Highlights included 28.1m @ 24.1% Zn in hole MGC18051.

·      The company also appointed COO Dr. Bill Williams as interim CEO. Former CEO James Walchuck will remain a consultant to the company.

 

Analysis

The drill results provide a better perspective of the deposit geometry and size, with the 64 holes drilled in the sector having outlined the extent of mineralization not mined to the north, west and south. This sector should make an important contribution to the overall resource estimate.

 

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