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Oreninc Index Update: June 26th, 2017

ORENINC INDEX up as gold shows promise of growth spurt

 

ORENINC INDEX - Monday, June 26, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week’s index score: 73.66

This week: 86.47

 

Avrupa Minerals (TSXV: AVU) recovered 100% ownership of the Alvalade VMS copper-lead-zinc project in the Iberian pyrite belt in southern Portugal.

Prospero Silver (TSXV: PSL) started drilling at the Matorral project in in the Santa Maria del Oro camp, Durango state, Mexico.

NuLegacy Gold (TSXV: NUG) announced results from the 40-hole, 10,500m drilling campaign on the Red Hill property in the Cortez gold trend of Nevada, USA.

Zinc One (TSXV: Z) plans drilling and PEA

 

The Oreninc Index increased in the week ending June 22th, 2017 to 86.47 from 73.66 the previous week.

Total fund raises announced jumped to C$219.7 million, a 16-week high, which included four brokered financings for a total of C$110.0 million, an 18-week high, within which there were two bought-deal financings for C$30.0 million, a two-week low. The average offer size grew to C$5.4 million, a 16-week high, whilst the total number of financings announced increased to 41, a two-week high.

Gold posted a robust week on the back of weaker US treasury yields and the US dollar index falling to close the week at 97.3 from 97.5 the previous week. The ten-year Treasury Inflation Protected Securities (TIPS) yields also peaked and started moving down again, which in recent history has seen the gold price strengthen.

Gold closed at US$1,256/oz, up from US$1,253 the previous week, but will this upward move see it break through the US$1,300/oz mark?

With its rebalance firmly under its belt the van Eck managed GDXJ put in some good growth as the gold price improved and is now up 8.4% so far in 2017. The inventory of the SPDR GLD ETF remained flat at 854 tonnes, the same as the previous week.

In other commodities, silver spot price mirrored gold’s trajectory and closed the week at US$16.71/oz from US$16.70 the previous week. The Comex copper price had an up-and-down week recovering strongly to close at US$2.63 per pound from US$2.57 the previous week, after falling to US$2.57 mid-week. Oil is the commodity that cannot get a break continuing its losing streak as WTI crude fell to US$43.17 per barrel from US$44.74 last week, but ending the week on an up-tick after hitting a low of US$42.53.

The Dow Jones Industrial Average continued to climb to close up at 21,394 although it ended the week on a down trend after peaking at 21,528. Canada’s S&P/TSX Composite Index saw a stronger week to close at 15,319 up from 15,192 the previous week. The S&P/TSX Venture Composite Index was in growth mode again to close at 777.25.

 

Summary:

  • Number of financings increased to 41, a two-week high.
  • Four brokered financings were announced for $110.0m, an 18-week high.
  • Two bought-deal financing were announced for $30.0m, a two-week low.
  • Total dollars jumped to $219.7m, a 16-week high.
  • Average offer size grew to $5.4m, a 16-week high.

 

 

Financial news highlights

North American Palladium (TSX:PDL) opened a C$40 million offering and C$10 million in flow-through shares by a syndicate coled by Scotiabank, BMO Capital Markets and CIBC Capital Markets and including RBC Capital Markets and TD Securities.

  • The net will be used to repay a portion of the C$123 million debt owed to Brookfield Capital Partners and The Bank of Nova Scotia, exploration, the advancement of open pit pre-stripping and the tailings management facility at its 15,000 tpd Lac des Iles palladium mine in Ontario, Canada that has reserves of 38Mt @ 2.25 g/t palladium.

Major Financing Openings:

  • Oryx Petroleum (TSX:OXC) opened a C$59.37 million offering on a strategic deal basis.
  • Oronova Energy (TSXV: ONV) opened a C$40 million offering underwritten by a syndicate led by Peters and Co on a best efforts basis. The deal is expected to close on or about August 17th.
  • North American Palladium (TSX:PDL) opened a C$40 million offering underwritten by a syndicate led by Bank of Nova Scotia on a best efforts basis.
  • Newcastle Gold (TSXV:NCA) opened a C$15.01 million offering underwritten by a syndicate led by Beacon Securities on a bought deal basis. The deal is expected to close on or about July 13th.

Major Financing Closings:

  • Oryx Petroleum (TSX:OXC) closed a C$ =INT( 59,369,952.00 )/1000000 59.37 million offering on a strategic deal basis.
  • Oryx Petroleum (TSX:OXC) closed a C$13.46 million offering on a strategic deal basis.
  • Standard Lithium (TSXV: SLL) closed a C$7.42 million offering on a best efforts basis.    
  • Aldridge Minerals (TSXV: AGM) closed a C$6.62 million offering on a strategic deal basis.  

 

Company news

NuLegacy Gold (TSXV: NUG) announced results from the 40-hole, 10,500m drilling campaign on the Red Hill property in the Cortez gold trend of Nevada, USA.

  • Every drill hole drilled to date has encountered gold mineralization.
  • Near surface gold mineralization intercepted at Iceberg South with 4.5m @ 0.6 g/t Au opening a ~1,000m as yet undrilled area to the west and northwest.
  • Iceberg Central was drilled as a 70m step out and encountered multiple gold values that opens a corridor that it is anticipated connects to the North zone, with an intercept of 20.5m @ 0.3g/t Au.
  • NuLegacy plans to drill the gold-in-soil anomaly at the VIO claim area some 4km west of the Iceberg's Central zone, as well as the Jasperoid Basin area in the near future.

Analysis

Drilling continues to intercept gold mineralization that will potentially add to the size of NuLegacy’s existing deposits and build its story by showing that there is potential for additional ounces to be added to its overall resources at the Iceberg project from other targets in the area.

 

Prospero Silver (TSXV: PSL) started drilling at the Matorral project in in the Santa Maria del Oro camp, Durango state, Mexico.

  • Drilling is part of a planned 6,900m program to test three projects under the terms of a strategic investment from Fortuna Silver Mines (TSX: FVI).
  • Four holes are planned at Matorral, followed by eight at the Petate project and eight holes at Pachuca SE.
  • The first hole at Matorral is laid out to pin the dip of what is believed to be the controlling structure on potential mineralization at depth. Matorral has over 7km of prospective structures

Analysis

This drilling program is proof of concept drilling that will test the company’s hypothesis of locating potentially large-scale blind silver deposits that are under geological cover.

Avrupa Minerals (TSXV: AVU) recovered 100% ownership of the Alvalade VMS copper-lead-zinc project in the Iberian pyrite belt in southern Portugal.

  • Avrupa signed agreements with two former partners that transfer the outstanding 60% ownership of the project back to the company for debt forgiveness and future payments.
  • An initial drill hole into the Sesmarias target intersected 10.85m @ 1.81% Cu, 2.57% Pb & 4.38% Zn.
  • Drilling hit mineralization over a 1.8km strike length.
  • Subsequent drilling at Sesmarias extended a massive sulphide lens to +300m length with a 20-40m thickness.

Analysis

Recovery of Alvalade means Avrupa is in full control of the highly prospective VMS project. Expect a future plan to be announced once the company has reviewed all project data.

 

Zinc One (TSXV: Z) plans drilling and PEA

  • Plans to collect core for metallurgical testing from an upcoming drill programme as part of a preliminary economic assessment.
  • Drill-platform permit applications being submitted with the intent to begin drilling in the third quarter.
  • The drill program will involve low-cost shallow drilling and tight drill spacing in zones of known mineralization, and test zones on the periphery of the known mineralization.
  • Drilling to be completes by year end with a PEA technical report to be completed shortly thereafter.

Analysis

An independent report on zinc oxide production prepared by Pascal Briol and Noel Masson said that the zinc-oxide ore Bongará in Peru shares a similar mineralogy and general geochemistry of the zinc-oxide ore at the Shaimerden deposit in Kazakhstan that is treated at the Ridder Smelter complex in Kazakhstan with a reported zinc recovery of 95% utilizing a Waelz kiln. As the previous operator of the Bongará mine processed the zinc-oxide mineralization with a Waelz kiln this bodes well for the processing option for a future production scenario.

 

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Oreninc Index Update: June 19, 2017

ORENINC INDEX falls as the GDXJ rebalance finally happens

 

ORENINC INDEX - Monday, June 19, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 84.81 (Updated)

This week: 73.66

 

Castle Silver Resources (TSXV: CSR) reported that chip sampling returned 1.8% cobalt, 8.6% nickel and 25.2g/t silver at its Castle mine in Ontario, Canada.

 

The Oreninc Index fell in the week ending June 16th, 2017 to 73.66 from an updated 84.81 the previous week.

Total raises announced fell to C$139.5 million, a two-week low, which included six brokered financings for a total of C$91.5 million, a 13-week high, within which there were two bought-deal financings for C$60.0 million, a 13-week high. The average offer size fell slightly to C$4.0 million, a two-week low, whilst the total number of financings announced decreased to 35, a two-week low.

It was a week of turbulence for many gold stocks with the VanEck Vectors Junior Gold Miners ETF (GDXJ) rebalance finally happening on Friday June 16th. The rebalance was necessary as the success of the ETF meant that it was approaching 20% significant shareholder status in many companies. To continue to grow, therefore, it will now buy gold miners in the C$75-million to C$2.9-billion market cap, up from C$75-million to C$1.6-billion. As a result, smaller names in the index have been sold off, creating market turbulence.

Gold began the week strongly, hitting a peak of US$1,275 per ounce on Wednesday before falling off to close the week at US$1,256 per ounce, down from the previous week’s US$1,271 per ounce close, as the US Federal Reserve raised interest rates again from 1% to 1.25% and indicated that rate increases could continue. This was the third consecutive quarterly increase in interest rates and came as US jobs growth continued, pushing the unemployment rate down to its lowest level in 16 years. The Fed also said it plans to reduce bond holdings to unwind the huge economic stimulus plan brought in after the great recession.

With the rebalance taking place the van Eck managed GDXJ improved slightly to now be up 4.6% so far in 2017. The inventory of the SPDR GLD ETF pulled back to close at 854 tonnes, from 867 tonnes the previous week.

In other commodities, silver followed gold’s trajectory but with a harder fall to close down on the week at US$16.67. Copper also had a tough week to close at US$2.58 per pound from US$2.64 per pound the previous week. Oil continued to weaken with WTI crude falling to US$44.70 per barrel from US$45.83 per barrel last week.

The Dow Jones Industrial Average continues to climb to close up at 21,383 whilst Canada’s S&P/TSX Composite Index fell to 15,160. The S&P/TSX Venture Composite Index continued to fall to close at 775.91.

 

Summary:

  • Number of financings decreased to 35, a two-week low.
  • Six brokered financings were announced for $91.5m, a 13-week high.
  • Two bought-deal financing were announced for $60.0m, a 13-week high.
  • Total dollars dropped to $139.5m, a two-week low.
  • Average offer size slipped to $4.0m, a two-week low.

 

 Financial news highlights

Nemaska Lithium (TSX:NMX) announced C$50 million bought deal financing to fund ongoing development of its Whabouchi lithium mine and spodumene concentrator and the Shawinigan hydrometallurgical plant.

  • Nemaska aims to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market
  • Spodumene concentrate that will produced at the Whabouchi mine will be shipped to its lithium compounds processing plant to be completed in Shawinigan, Québec from H218.

 

Cordoba Minerals (TSX-V: CDB) announced a C$10 million bought deal financing to provide funds to continue exploration of its San Matias copper-gold project in Colombia.

  • The financing comes as the company converted its joint venture agreement with Robert Friedland’s High Power Exploration company into direct ownership in Cordoba Minerals.

 

Fiore Exploration (TSXV: F) announced a C$17 million private placement financing as part of a business combination with GRP Minerals.

  • The net proceeds will be used for expansion of the leach pads at the Pan mine on the Battle Mountain-Eureka trend in Nevada, drilling at both Pan and Gold Rock in Nevada.
  • Fiore was founded by Frank Giustra and Lithium X founder Brian Paes-Braga
  • It also has a strategic land position surrounding Yamana’s El Peñon mine complex in Chile

 

Major Financing Openings:

  • Nemaska Lithium (TSX-V:NMX) opened a C$50 million offering underwritten by a syndicate led by National Bank Financial on a bought deal basis. The deal is expected to close on or about June 29th.
  • Fiore Exploration (TSX-V:F) opened a C$17 million offering underwritten by a syndicate led by GMP Securities on a best efforts basis.
  • Orca Gold (TSX-V:ORG) opened a C$15 million offering on a best efforts basis.  Each unit includes half a warrant that expires in 12 months.
  • BonTerra Resources (TSX-V:BTR) opened a C$12.91 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. The deal is expected to close on or about June 29th.

Major Financing Closings:

  • Candelaria Mining (TSX-V:CXX) closed a C$9.77 million offering on a strategic deal basis.
  • White Gold (TSX-V:WGO) closed a C$8.76 million offering on a strategic deal basis.
  • Jaguar Mining (TSX:JAG) closed a C$7.75 million offering on a best efforts basis.
  • Skeena Resources (TSX-V:SKE) closed a C$5.68 million offering underwritten by a syndicate led by RBC Capital Markets on a best efforts basis.

 

Company news

Castle Silver Resources (TSXV: CSR) reported that chip sampling returned 1.8% cobalt, 8.6% nickel and 25.2g/t silver at its Castle mine in Ontario, Canada.

  • Previous mine operators only assayed for silver
  • Underground sampling covering multiple target areas continues

Conclusion

Sampling is the first step to determining the cobalt, nickel and silver potential at high-grade Castle silver mine, and developing targets for a future drilling program as the company aims to become a player in the cobalt space.

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Top 10 Financings of May 2017

 

May saw 125 financings close in the Canadian financial markets for C$366.5 million including 64 financings for gold totalling $228.9 million, some 62.5% of the total. The top ten gold financings totalled $174.86 million representing 47.7% of the gold total. 11 brokered gold financings closed in May for $113.7 million at an average size of $9.1 million, including four bought deals for $51.6 million at an average size of $12.9 million.

 

#1 Continental Gold C$34.36 million

Continental Gold (TSX: CNL) closed a US$109 million non-brokered private placement with Newmont Mining (NYSE: NEM) and a US$25 million private placement with RK Mine Finance Master Fund I at a price of C$4.00 per share to raise the equity component of the US$389 million funding required to build out a gold mine at its Buritica deposit in Antioquia, Colombia. Newmont and Red Kite now own about 19.9% and 4.6%, respectively, of the issued and outstanding common shares of Continental. Construction of Buritica is due to commence later this year with first gold pour scheduled for early 2020. As part of the financing, Newmont and Continental will form a strategic alliance to evaluate opportunities to partner on exploration of Continental’s other properties in Colombia.

 

#2 Barkerville Gold Mines C$27.08 million

Barkerville Gold Mines (TSXV: BGM) closed a bought deal private placement financing of $23.5 million led by Haywood Securities at C$0.95 per unit and a non-brokered private placement with Osisko Gold Royalties and Osisko Mining for C$15.8 million. The net proceeds will be used for exploration and development of the company’s properties in the historical Cariboo mining district of central British Columbia.

 

#3 North Empire Resources C$20.00 million

Northern Empire Resources (TSXV: NM) completed a private placement of C$19.56 million at a price of C$0.25 led by Cormark Securities on behalf of a syndicate of agents that included GMP Securities, Haywood Securities and PI Financial that saw Coeur Mining (NYSE: CDE) invest C$4.0 million. The funds were used to complete the acquisition of the Sterling gold project, the Hoodoo Canyon property and various royalty rights on mineral properties in Nevada and California, USA from Imperial Metals subsidiary Sterling Gold Mining.

 

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Oreninc Index Update: June 12, 2017

ORENINC INDEX jumps as gold gets political again

 

ORENINC INDEX - Monday, June 12, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

 

Last week index score: 37.34

This week: 81.01

 

The Oreninc Index increased in the week ending June 9th, 2017 to 81.01 from 37.34 as gold had a roller coaster week, with politics once again dominating the news agenda.

Total raises announced increased to C$180.2 million, a nine-week high, which included five brokered financings for a total of C$83.0 million, a twelve-week high within which there was one bought-deal financing for C$20.0 million, a three-week high. The average offer size doubled to C$4.2 million, an eleven-week low, whilst the total number of financings announced increased to 43, a nine-week high.

In the US, all eyes were on former Federal Bureau of Investigation (FBI) director James Comey who testified before a senate committee about conversations he had with US president Donald Trump prior to being fired. Meanwhile, in the UK, a general election returned Teresa May as prime minister, reaffirming her mandate to lead the UK in its exit from the European Union, although the Conservative Party that she leads lost its overall majority.

Gold began the week strongly hitting US$1,297 per ounce Tuesday and then trailing off for the rest of the week to close at US$1,271 per ounce on Friday, marginally up on the previous week.

The marginal improvement in gold was reflected in the van Eck managed GDXJ that improved slightly to now be up 3.93% so far in 2017. The inventory of the SPDR GLD ETF saw a marked gain to fall close at 867 tonnes, from 851 tonnes the previous week.

In other commodities, silver followed gold’s trajectory but with a harder fall to close down on the week at US$17.22. Copper had a mirror opposite to the two precious metals, starting weak and ending with a bang to close at US$2.64. Oil continued to weaken with WTI crude falling to US$45.83 per barrel.

The Dow Jones Industrial Average experienced another record week to close up at 21,271 whilst Canada’s S&P/TSX Composite Index had an up-and-down week before closing slightly higher at 15,473. The S&P/TSX Venture Composite Index on the other hand, fell below 800 to close at 791.20.

Summary:

  • Number of financings jumped to 43, a nine-week high.
  • Five brokered financings were announced for $83.0m, a 12-week high.
  • One bought-deal financing was announced for $20.0m, a three-week high.
  • Total dollars grew to $180.2m, a nine-week high.
  • Average offer size doubled to $4.2m, a 11-week high.

 

Financial news highlights

Alphamin Resources (TSXV: AFM) announced a US$38 million equity raise to further construction activities at the Bisie tin project.

  • Sprott Capital Partners and Tamesis Partners are leading a best efforts private placement of up to 81,454,000 units priced at C$0.35 to raise about C$28.5 million
  • Simultaneously, the company intends to complete a non-brokered private placement with 44.4% shareholder, Tremont Master Holdings for an additional 65,046,000 units on the same terms to raise about C$22.8 million.
  • The aggregate raisings would be about C$51.3 million.
  • The net proceeds will be applied towards the equity requirement for the continued development of Alphamin’s 82.5% owned Bisie tin project in Democratic Republic of Congo.
  •  Alphamin previously entered into non-binding term sheets in connection with US$80 million of project debt.

Major Financing Openings:

  • Alphamin Resources (TSXV:AFM) opened a C$28.51 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Alphamin Resources (TSXV:AFM) opened a C$22.77 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Harte Gold (TSXV:HRT) opened a C$20 million offering underwritten by a syndicate led by Macquarie Capital Markets on a bought deal basis. The deal is expected to close on or about June 27th.
  • K92 Mining (TSXV:KNT) opened a C$16 million offering underwritten by a syndicate led by Clarus Securities on a best efforts basis. Each unit includes a warrant that expires in 12 months. The deal is expected to close on or about June 21th.

Major Financing Closings:

  • Lithium Americas (TSX:LAC) closed a C$54 million offering on a strategic deal basis.    
  • Delphi Energy (TSX:DEE) closed a C$35 million offering underwritten by a syndicate led by Raymond James on a best efforts basis.  
  • Falco Resources (TSXV:FPC) closed a C$28.75 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit included half a warrant that expires in 18 months.  
  • North American Nickel (TSXV:NAN) closed a C$10.88 million offering underwritten by a syndicate led by Paradigm Capital on a best efforts basis.  

 

Company news

Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

  • Project partner OZ Minerals provided funding for the first phase exploration that is designed to identify and refine IOCG drill targets. OZ Minerals owns two IOCG projects in South Australia:  the producing Prominent Hill mine and the Carrapateena project, currently in feasibility study.
  • Exploration is focused on an area containing a large copper-in-soil anomaly with a strike extent of 24km. The first phase will consist of geological mapping and prospecting, and large, license-wide, gravity and magnetic geophysical surveys. The results will be used to identify and rank drill targets for the second phase.

Conclusion

With exploration at Alvito beginning by IOCG expert partner Oz Minerals, Avrupa is taking the first steps to identifying its real potential.

 

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

  • A large sample was removed from a quartz-carbonate vein structure containing visible cobalt on the first mine level. Some mineralized material is being submitted for assaying while the remainder will be put through the company’s proprietaryRe-2OX hydrometallurgical process to produce high-purity cobalt powders for battery sector end buyer evaluation.
  • A series of bulk samples will be completed over the coming weeks in conjunction with the start of Phase I underground drilling.
  • Castle is also testing the Re-2OX process for recovery of cobalt and lithium from lithium-ion batteries. Re-2OX achieves recovery through stripping the casing, leaching the cathode of the batteries and forming a high-purity precipitate containing the valuable metals. Results from testwork by SGS Lakefield are due shortly.

Conclusion

Castle Silver has various testing programs underway to evaluate the potential of two different potential business streams: the mineral potential of its Castle mine and recycling potential of its Re-2OX process. Positive results would underscore the company’s potential to be a player in the cobalt space.

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Exclusive: Interview with Brent Cook & Mickey Fulp @ 121 NYC

June 7th, 2017 // An Oreninc Excklusive: Interview with Brent Cook & Mickey Fulp at the 121 Mining Investment Conference in New York


Topics:
- 121 Mining Investment Conference
- Current Market Sentiment
- Top Picks ;)

Participants:
- Brent Cook, Exploration Insights
- Mickey Fulp, Mercenary Geologist
- Kai Hoffmann, Oreninc

VISIT www.oreninc.com
VISIT www.goldgeologist.com
VISIT https://explorationinsights.com

 

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