This is Zazzle Canada’s unique coll
GRM : TSX-V : C$0.64
Goldrock Mines (formerly Mansfield Minerals) is a development stage gold company advancing their fully permitted (Oct 2011), Lindero heap leach project located Salta, Argentina. Recent management changes have brought the relevant expertise (financing and technical execution) required for the company to execute the development of the project and realize the future cash flows from it.
The company released FQ3/12 (ending February 2013) financial results with an end of period cash position of C$3.4 million. We maintain our
SPECULATIVE BUY recommendation and target price of C$0.90.
The company’s previous cash position (FQ2/12) was C$5.30 million. During FQ3/12, operating expenditures were ~C$0.46 million with an additional ~C$1.70 million related to investing activities (Lindero FS) and ~C$0.23 million in positive FX adjustments resulting in a ~C$3.35 million cash position at the end of FQ3/12 versus our estimate of C$4.1 million. We estimate that GRM will close its fiscal year (May 2013) with a cash position of ~C$3 million.
Following the release (April 17) of its feasibility study (FS) on its wholly owned, fully permitted Lindero open pit/heap leach project in northwest Argentina (Salta province), we anticipate the company to redouble its efforts to crystallize financing sources to fund its development ($160 million).
We have modeled a debt facility for ~C$100 million (five year, 12%, FQ2/13), allowing for initial construction and purchasing long lead items, followed by an assumed equity raise of ~C$56 million (80 million shares at C$0.70/share, FQ2/14) and a WC facility (C$40 million, 15%) to enable commercial production by FQ1/15 (August 2015).
Additional potential catalysts include the maiden resource estimate on the Arizaro copper-gold porphyry (3-4 km from Lindero) expected by fiscal year-end (May 30, 2013). Arizaro represents upside potential to not only extend the mine life of Lindero, but to offset processing the lower grade stock pile to a later date.
TSX : $0.83
A mining company named Sue!
Vote of confidence. Sulliden Gold announced that Agnico-Eagle Mines (AEM) has entered into a subscription agreement to
make a strategic investment of $24,000,000 into SUE through a non-brokered private placement of units. As a result of the
transaction, AEM will own 9.96% of SUE’s issued and outstanding shares on a non-diluted basis. Under the terms of the
subscription agreement, AEM will purchase a total of 26,966,292 units at a price of $0.89 per unit. Each unit comprises one
common share and 0.7 of a common share purchase warrant. Each whole share purchase warrant will entitle AEM to acquire
one common share of SUE at a price of $1.31 for a period of two years from the date of issuance.
Commenting on the deal, AEM’s President and CEO, Sean Boyd, stated, “Our investment highlights the quality and potential of SUE’s Shahuindo
Project. We also view this as an opportunity to gain exposure to another jurisdiction with a well-established mining culture. We look forward to participating in the advancement of Shahuindo towards production.”
SUE’s Shahuindo Project is located in a world-class gold producing belt in northern Peru. In September 2012, SUE completed a Feasibility Study highlighting a straightforward open pit mine with heap leach recovery, with capital requirement estimated at $131.8 million, supporting a
mining rate of 3.65 million tonnes per year and annual production of ~90,000 gold equivalent ounces at average cash operating costs of $552 per ounce.
- Hedge Funds Aren’t Crazy About Agnico-Eagle Mines Limited (USA) (NYSE:AEM) Anymore (insidermonkey.com)
TSX : $1.63)
. While many junior gold companies are struggling to survive and are desperately looking for capital, that is not the case for Pilot Gold. Thanks to the company’s success through the drill bit, experienced management team and prudent financing last year, Pilot has a strong balance sheet and on Tuesday announced its next phase of aggressive plans.
Management highlighted that the 2013 drilling campaign at the TV Tower property in northwestern Turkey commenced on March 23 with a total of 30,000 m of drilling planned property-wide, including 15,000 m on the KCD target and 7,500 m each on the Kayali and Columbaz targets. Currently, three diamond core drills are in operation, while one additional reverse circulation (RC) drill may be activated later in the season.
TV Tower drilling in 2012 and early 2013 focused entirely on testing the high-grade KCD target in the northeastern part of the property. Drilling confirmed the presence of a 250 by 400 m gold zone, which remains open down-dip to the north, and established the presence of a large, 400 by 600 m stratabound silver zone that overlies the gold zone and is open to the west and northwest. TV Tower is a JV between PLG and Teck Resources (TCK.B), with Pilot as project operator.
- Pilot Gold Reports Year-End Financial Results (sys-con.com)
- Pilot Gold Update : high-grades and aggressive plans. (ampgoldportfolio.com)
(AEM : TSX : $40.85)
(URS : TSX-V : $0.24)
FINALLY, the majors are buying!
Junior gold investors have been rewarded for their patience with news that gold major Agnico-Eagle is buying gold junior Urastar Gold for $0.25 per share, which is a 42.9% premium to the previous day’s closing price.
The offer values the URS, on a fully-diluted basis, at $10.75 million. Out-of-the-money share purchase warrants and options will be cancelled as part of the transaction. Agnico-Eagle has agreed to advance approximately $1.6 million to the company on closing to fund the payment of the company’s transaction expenses and severance costs. The board of directors of Urastar has unanimously approved the transaction and each of the directors and officers of URS, as well as certain other URS securityholders, collectively holding approximately 27.12% of the number of Urastar securities entitled to vote at the meeting, have entered into support agreements with Agnico-Eagle and agreed to vote their securities in favor of the arrangement.
- Agnico-Eagle Mines swings to fourth quarter profit of $82.8 million (vancouverdesi.com)
TSX : $6.16
Two new discoveries.
Osisko announced that new drilling at its 100%-owned Upper Beaver gold project located in Kirkland Lake, Ontario has led to the discovery of two new gold-copper zones, the East Basalt Zone and the North Q Zone.
Basalt Zone is located ~700 m north-east of the Upper Beaver deposit, while the North Q Zone is located 400 m to the northwest of the Upper Beaver deposit. Highlight high-grade results from the two new discoveries, include: i) East Basalt Zone Discovery: 9.3 g/t Au with 1.7% Cu over 18.1 m (Hole UB13-284), and 2.2 g/t Au with 0.5% Cu over 17.8 m (Hole UB13- 287); ii) North Q Zone Discovery: 11.0 g/t Au with 1.6% Cu over 2.0 m (Hole UB13-282).
Management also stated that infill drilling continues to confirm the continuity of the mineralization in the western portion of the main Upper Beaver deposit. An updated mineral resource at Upper Beaver was announced on September 2012, demonstrating an Indicated resource of
6,870,000 t at 6.6 g/t Au (1,461,000 oz) and 0.37% Cu (56 M lbs), and an Inferred resource of 4,570,000 t at 4.9 g/t Au (712,000 oz) and 0.32% Cu (32 M lbs).
Osisko’s focus at Upper Beaver for 2013-2014 will be on the development of the 1,300 m exploration shaft, including engineering, design and fabrication of the head frame and hoisting facilities budgeted at $70 million. The shaft collar has now been established to a depth of 26 m and exploration on the deposit continues with six drills.
PLG : TSX : $1.82
The results released Tuesday were from the 15 remaining diamond core holes from the Phase 1 drilling program. Management noted that the holes are wide-spread across the property and targeted KCD”s gold and silver zones. Infill drilling highlights included: i) 25.7 g/t Au, 47.2 g/t Ag and 2.12% Cu over 16.5 m in hole KCD-102, including 142 g/t Au, 141 g/t Ag and 3.39% Cu over 2.0 m; and, ii) 13.9 g/t Au over 6.3 m in hole KCD-99. While highlights from Exploration drilling included 4.71 g/t Au and 71.7 g/t Ag over 8.5 m and 2.93 g/t Au over 8.0 m in hole KCD-95.
Commenting on the results, PLG’s President and CEO, Matt Lennox-King, stated, “Our first program as operator has confirmed a large, central gold zone overlain by a robust silver blanket. Both remain open in multiple directions and will be aggressively followed-up in our upcoming drill program.” Going forward, the company plans an additional 25,000- 30,000 m of drilling at TV Tower with a focus on KCD, Kayali and Columbaz targets in 2013. TV Tower is a JV between PLG and Teck Resources (TCK.B), with PLG as project operator.