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Month: October 2018

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Avidian Gold Corp. (TSXV:AVG) – Hot Smoke; Signs of Burning Fire!

Impact: Positive

Early signs of a major discovery at Copper King. Avidian released impressive drill and trenching results from this summer’s program, highlighted by 9.1m of 9.78% CuEq (or 15.48 g/t AuEq) in hole CK18-01. In our view, these results combined with previously released surface work and geophysics, suggest that Avidian is closing in on a larger porphyry source. We believe the market is giving the company no value for a potential major discovery in the prolific Tinitina Gold Belt (see detailed discussion for supporting thesis). We believe that Avidian’s Copper King and Long Creek targets have similar potential to GT Gold’s Saddle North.

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Bonterra Resource Ltd. (TSXV:BTR) – Gladiator Resource Update Coming in the Next Month

Impact: Potentially Positive

Bonterra Resources announced that it plans to release an updated Gladiator resource in November. In our view, this should be a material catalyst for Bonterra, as the company’s resource base is expected to significantly increase with this update. We believe Bonterra trades at a discount to peers, suggesting that the addition of new ounces with this update should drive the share price materially higher.

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Pacton Gold Inc (TSXV:PAC) – Living on the Egina!

Impact: Mildly Positive

Pacton Gold announced that it has entered into an LOI to acquire additional conglomerate ground in the Egina region. We believe this to be a positive development, as it is an area of the Pilbara that has now been identified as prospective for conglomerate gold by Novo Resources. This pending acquisition is in line with the company’s strategy to use the valuation difference between Canadian and Australian conglomerate gold players, to acquire prospective ground for exposure to conglomerate gold exploration. It is important to highlight that the company has started work on its 100% owned Arrow project; thus, transitioning Pacton from an acquisition strategy to one with some exploration.

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Anaconda Mining Inc (TSX:ANX) – Strong H2/18 Ramp Up in Line with Our Forecast

Impact: Mildly Positive

Anaconda Mining reported a strong increase in gold production in Q3/18 that supports our view for a robust finish to 2018. Financials have yet to be released but we expect these results to generate cash that would support the development efforts at the Goldboro project. We believe the company is on track to beat 2018 guidance by approximately 9%.

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Novo Resources Corp. (TSXV:NVO) – Bulk Sample Results Coming in October

Impact: Mildly Positive

Novo Resources announced an improved resource at Beatons Creek and has guided to an October release of the bulk samples results from its Karratha project. While we view the resource update as positive, we believe the market has been disappointed by the frequency and amount of data from the conglomerate target so far. Ultimately, we expect the results of the bulk sample to support our thesis of +10Moz Au at Novo’s Karratha project. We also believe results from the bulk samples will have an impact on all conglomerate gold players in the Pilbara.

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RNC Minerals (TSX:RNX) – Another Large Specimen from Beta Hunt

Impact: Mildly Positive

RNC Minerals announced another impressive gold specimen stone (90kg or ~1000oz Au) from the Father’s Day Vein at Beta Hunt, supporting the company’s forecast to extract a total of 30-35k oz Au from the initial discovery area. While this news is directionally positive, the key to demonstrating the potential of Beta Hunt should be ongoing exploration and development work. With the balance sheet repaired, we expect ongoing exploration and development work that demonstrates the potential of these ultra-high-grade shoots as the key catalysts for the stock.as 2021.

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Red Pine Exploration Inc. (TSXV:RPX) – Minto South Resource Incoming

Impact: Mildly Positive

Red Pine Exploration announced results from 19 holes at its Wawa Gold Project, 2 km west of Wawa, Ontario. Drilling continues to test the southern extension of the Minto Mine South Zone ahead of the resource update for the zone, which is expected Q4 2018. The high-grade drill results continue to support our thesis that the Wawa corridor hosts a large gold system where we see the company building a high-grade underground resource.

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SolGold Plc (TSX:SOLG; LSE:SLG) – Results Suggest Alpala NW Could Be a 2nd Porphyry

Impact: Positive

SolGold Plc. has provided an exploration update which highlights the expansion of its high-grade core. Expanding the high-grade core, should increase the overall grade of the deposit and likely improve project economics. The company is expected to release a resource update later this year that we believe should materially increase the current global resource of 16.18Blb CuEq. In addition, hole 64 shows evidence of a potential second porphyry system that could accelerate the company’s growth profile. These results continue to support our view that this world class deposit is poised to grow materially with its late 2018 resource update.

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Lion One Metals Ltd. (TSXV:LIO, ASX:LLO) – Exploration Potential Mirrors 7 Moz Neighbor

Impact: Positive

We recently had the opportunity to visit Lion One’s (TSXV:LIO, ASX:LLO) Tuvatu project in Fiji. The key takeaway is that the company may be on cusp of demonstrating the significant exploration upside inherent within its 20,000 hectare property. The high-grade Tuvatu gold deposit (739koz grading 9.5 g/t Au) within the Navilawa caldera shares geologic similarities to the operating Vatukoula gold mine (7 Moz Au) and other giant epithermal deposits within the Pacific Ring of Fire, like Newcrest’s Gosowong deposit (6 Moz Au – Figure 5). These similarities along with the work completed to date suggest there is significant “Blue Sky” potential at Tuvatu.

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