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Company News – Wed 23 May, 2018

By Cory FIREWEED ZINC ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT WITH PRE-TAX IRR OF 32% AND NPV8 OF C$779M ON MACMILLAN PASS PROJECT

Here is the PEA that we have been waiting for out of Fireweed Zinc (TSX.V:FWZ). There is a lot of information in the release so please take your time to read over it and let me know what you think.

I will be chatting with Brandon McDonald, Fireweed President and CEO tomorrow so please send me any questions to have to Fleck@kereport.com.

Click here to listen to the most recent interview with Brandon and I.

…Here’s the news…

Vancouver, British Columbia: FIREWEED ZINC LTD. (“Fireweed” or the “Company”) (TSXV: FWZ) is pleased to announce the positive results of an independent Preliminary Economic Assessment (“PEA”) for its Macmillan Pass Project (the “Project”) in Yukon, Canada. The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by JDS Energy and Mining, Inc. (JDS) with work on tailings and water by Knight Piesold Consulting, both of Vancouver, Canada.

Production and Economic Highlights:

  • Long mine life and large-scale production:
    • 18-year mine life with 32.7Mt of mineralization mined at 4,900 tonne-per-day average processing rate.
    • 1.54Mt of Zinc, 0.88Mt of Lead, and 37Moz of Silver in concentrate shipped.
    • Average yearly contained-metal production of 85kt Zinc, 48kt Lead and 2Moz Silver.
  • Robust economics using metals prices of $1.21/lb Zn, $0.98/lb Pb, and $16.80/oz Ag:
    • Pre-Tax NPV at 8% of $779M CAD and IRR of 32%.
    • After-Tax NPV at 8% of $448M CAD and IRR of 24%.
  • Manageable CAPEX and rapid payback:
    • Pre-production CAPEX of $404M CAD.
    • Payback period of 3.9 4 years.
    • Starter-pits on Tom West and Jason Main zones reduce up-front capital.
  • Significant Upside
    • Numerous opportunities for significant economic improvement.
    • Known zones remain open for expansion, including into high-grade areas.
    • Highly prospective and large land package untested with modern exploration methods.

“This first NI43-101-compliant PEA on the Macmillan Pass Project represents a significant step for the Company as we progress the Project towards production. Project economics in the PEA demonstrate that Macmillan Pass is not just viable at the zinc, lead and silver prices levels contemplated in the study, but highly robust,” commented Brandon Macdonald, Chief Executive Officer. “With consideration of the exploration upside not just at the known zones, but also within the broader land package, the Project is steadily shaping up to be a premiere district-scale zinc mining camp in the mining-friendly Yukon Territory.”

Overview of PEA Results and Assumptions

Summary Table of Economic Inputs and Results

Unit Base Case Spot Prices2
Inputs Zinc Price US$/lb $1.211 $1.42
Lead Price US$/lb $0.981 $1.05
Silver Price US$/oz $16.801 $16.38
Exchange Rate CAD/USD 0.77 0.78
Economics Cash Flows (Undiscounted) C$M $1,735 $2,581
Pre-Tax NPV at 8% C$M $779 $1,214
IRR % 32% 42%
Payback Period years 3 2.4
Economics Cash Flows (Undiscounted) C$M $1,119 $1,669
Post-Tax NPV at 8% C$M $448 $729
IRR % 24% 31%
Payback Period years 4 3
Unit Parameters Net Smelter Return3 C$/tonne $167.38 $193.28
Per Tonne Mined Pit Mining Costs C$/tonne $4.45 $4.45
Underground Mining Costs C$/tonne $52.02 $52.02
Processing Costs C$/tonne $22.92 $22.92
Site G&A C$/tonne $10.37 $10.37
Total OPEX C$/tonne $82.00 $82.00
Operating Margin C$/tonne $85.38 $111.28
Sustaining Capital & Closure C$/tonne $19.88 $19.88
Adjusted Operating Margin C$/tonne $65.50 $91.40

1. Base case prices for zinc, lead and silver are the average of three years past and projected two years forward by analysis of London Metal Exchange futures as of April 30, 2018.

2. Spot prices at close of London Metal Exchange on April 30, 2018.

3.Net smelter returns are net of off-site costs including TC/RCs, freight and penalties

Capital & Operating Cost Estimates

Table of Initial and Sustaining Capital Costs

Area Initial (C$000) Sustaining (C$000) Total (C$000)
Mining 30,300 378,400 408,700
Site Development 12,000 1,100 13,100
Mineral Processing 70,600 5,500 76,100
Tailings Management 32,700 113,900 146,600
On-site Infrastructure 51,400 14,800 66,200
Off-site Infrastructure (Canol Road) 78,300 6,700 85,000
Project Indirects 43,000 43,000
Engineering & Project Management 20,500 20,500
Owner Costs 7,000 7,000
Closure 56,700 56,700
Contingencies1 58,600 72,300 130,900
TOTAL PROJECT 404,400 649,400 1,053,800

1. Note on contingencies: Contingencies were assigned according to the level of engineering in the various project areas as follows: mining infrastructure 20%, process plant/site infrastructure/indirects 20%, tailings 35%, off-site infrastructure 10%. JDS terms this method “fit for purpose.” An example is the process equipment cost. JDS used vendor quotes on nearly all the equipment. Vendor quotes can generally be assessed a contingency of 5-10%. On the other hand, Knight Piesold had little data on the soils to be excavated for the tailings management facility embankment. They applied a contingency of 35% in that case.

Off-site Charges

Off-site charges include concentrate transport to Skagway for loading onto ocean-going cargo ships bound for smelter destinations yet to be determined but assumed to be in Asia. The charges also include treatment charges and penalties as shown in the table below.

Table of Off-site Charges

Off-site Charges Units Zinc Concentrate Lead Concentrate
Transport to Smelter CAD/wmt conc. $211.85 $211.85
Smelter Treatment Charge US$/dmt conc. $190.00 $170.00
Silver Refining US$/oz $1.50 $1.50
Mercury (Hg) Penalty US$/dmt conc. $0.96 NA
Silica (SiO2) Penalty US$/dmt conc. $2.00 NA

Operating Costs

The estimated operating costs, over the life of the Project, are presented below:

Table of Operating Costs (OPEX)

Open Pit Mining C$/tonne mined $4.45
Underground Mining C$/tonne mined $52.02
Processing C$/tonne $22.92
G&A C$/tonne $10.37
All-In OPEX C$/tonne 82.00

Mineral Resources

This PEA is based on a mine plan for delivery of 32.66 Mt at a diluted head grade of 9.07% zinc equivalent (5.31% zinc, 3.56% lead and 43.41g.t silver) delivered to the processing plant. The table below outlines the total base case Indicated and Inferred Mineral Resources, including those that were not included in this mine plan.

Table of Base Case Mineral Resource Estimates (at NSR cutoff grade of $65 CAD)

Category Tonnes (Mt) ZnEq % Zn % Pb % Ag g/t B lbs Zn B lbs Pb MOz Ag
Indicated 11.21 9.61 6.59 2.48 21.33 1.63 0.61 7.69
Inferred 39.47 10.00 5.84 3.14 38.15 5.08 2.73 48.41

Details, supporting information and Qualified Person statements for these Mineral Resources are described in the Company’s news release and the Technical Report both dated January 10, 2018 and both filed on www.sedar.com.

Mining

Initial material will be recovered at a rate of about 5,000 tonnes per day …read more

From:: The Korelin Economic Report

O’Leary and Holmes Are both Right on Gold & Gold Stocks

 

Mr. Wonderful, Kevin O’Leary, and Frank Holmes recently took different side the gold(bullion) vs. gold stocks. Gold and gold stocks are two different asset classes and saying which one is better. One is a commodity (Gold) and the other is equity (Gold Stocks). It’s like comparing multiple championships winning athletes, Sydney Crosby (NHL), Lebron James (NBA), and Tom Brady (Football) and saying one of these players is the best athlete of all-time. Gold and gold stocks offer two different purposes for an investor’s portfolio.

WHY OWN GOLD BULLION?

You own gold in bullion form and keep it in storage as an insurance policy for your other financial assets. It acts as a counterbalance against other assets in your portfolio. Investors flock to gold as a “safe-haven” asset, just like cash because they aren’t willing to take on risk. Gold is like a cash position in your portfolio, you don’t get paid to own it. Think of Gold as another currency (cash position) that you have exposure too, and you can use it as a counterbalance against your riskier assets. If gold isn’t important, then why do Central Banks own it on their balance sheet? For investors, it’s a way of being your own Central Bank.

I have a 5% weighting in gold. The GLD and physical bullion. Which I store and pay for the storage. The value of the commodity is whatever it is every day. Kevin O’Leary (Kitco)

Kevin O’Leary isn’t the only one who has gold as a counterbalance in their portfolio. Here is what Ray Dalio of Bridgewater thinks about gold:

“We can also say that if… things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit, so if you don’t have 5% – 10% of your assets in gold as a hedge, we’d suggest that you relook at this.” – Ray Dalio

Egyptian billionaire Naguib Sawiris investing half his net worth in gold

“And people also tend to go to gold during crises and we are full of crises right now. Look at the Middle East and the rest of the world and Mr. Trump doesn’t help.” (Marketwatch)

JP Morgan

“Underweight equities, long duration, long gold, and long the yen as Fed policy slows the economy and real rates collapse.” JP Morgan via ZH

GOLD IS TRADING LIKE A COMMODITY

After the dollar-gold window was broken in the 1970’s gold trades more like a commodity because it isn’t pegged to the US dollar. That is why gold, has better matched the cycle of the commodity booms since that time. Will it be treated again like before? We think that “Yes, gold will more than likely be pegged in some form to a currency at some point in the future”. Will it be more like past gold standards? Maybe, history repeats, just not exactly the same as before. It could be in a digital format because that is the way the world is going. We aren’t sure. But we follow the worldview that there are cycles and history repeats. We think that the mantra, “This could never happen” means it can happen again and probably will happen, just in a different twist. Everything has a time when it gets center stage. Gold standards will come, and then they will go. For now gold trades more like a commodity.

GOLD STOCKS AND CYCLE

When O’Leary says gold miners are horrible investments is a bit of hype and bluster.

O’Leary: “The history of mining has been abysmal… I don’t need to have a manager in the middle screwing up his capital cost allowance, not controlling his costs. (Kitco)

This is like saying all technology stocks are profitable like Apple.  

The gold sector has one major commonality with every other sector. They are all cyclical! The question is, what cycle do they follow? Gold mining stocks and gold are part of the larger commodity cycle. If you understand the cycle, you understand that there is a time to buy and a time to sell. Gold miners generate an incredible amount of free cash flow once the sector has bottomed. Why? Management teams are forced to really look at their costs and focus on generating profits because investors demand it. Just like after the Dotcom bust, investors started to demand revenue, not just user growth. Let me say that again…Revenue! Profits were demanded as well.

Kevin O’Leary is right when he says “More and more investors are thinking the way I do. They are thinking about return of capital.”

But you are seeing it some darling tech stocks right now, particularly in the private tech side focusing aggressively on growth. Look at Wayfair, an e-commerce company sells home goods online. Revenues have increased by more than 4X, yet $0 in profits over the past three years. 

During the last gold peak, investors demanded growth in terms of ounces at all cost from management, and in the bottom, investors reversed course and realized profits are essential for survival. You know its approaching a top when its ounces at all costs. The technology sector has recently been like this, companies like Tesla(TSLA), Wayfair (W), where it has been growth at all costs. As the tech cycle turns, investors will demand profits from these companies, not just customer growth on Wayfair and auto deliveries from Tesla. This is a 100% guarantee because investors will get spooked when the cycle turns and expect profits. Right now, investors have been rewarding gold miners for delivering on production and showing profitability. In 2017, gold miners delivered record dividends. Gold miners are set to show strong revenues in 2018 because of the continued elevated gold price above $1,300.

“Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money,” tweeted Musk

OTHER WAYS TO INVEST THAN ROYALTY STOCKS & GOLD MINERS?

But there is more than one way to play the gold sector. I am always amazed, when I speak with portfolio managers and receive emails, they always bring up explorers, producers, and royalty stocks to invest in stocks. Seek where the profits are, and you will find the gold. Look at Apple, it generates the most profits in the cell-phone industry over the past 8 years, its revenue grew incredibly over that same time-period. So why not repeat the same process in the gold sector?

We think there is a better way to think about investing in gold & silver stocks, and commodity stocks in general. Does the company generate a percentage of their sales related to gold and silver? It opens you up to many different companies with exposure to other commodities or other industries. Seek companies that are growing revenue, but still, give you exposure to gold and silver.

We can see the day when companies that derive a percentage of their revenue from precious metals will be added to ETFs.

  • Mining Services
    • Major Drilling
    • KGHM
    • Swick Services
  • Financial Services
    • Sprott
    • GoldMoney
    • Canaccord Genuity
    • CME Group
  • Commodities Trading
    • Glencore
  • Refining & Distribution
    • Johnson Matthey
    • Umicore SA

Some of these companies are directly involved in operating mines, by providing useful services to the mining industry. While still being able to get exposure to the gold and silver. The additional value is you may be getting exposure to multiple commodities and in some case entirely different industries outside of mining that are growing.

YOU NEED REVENUE GROWTH

Frank Holmes taking a more factor-based approach, with one-factor, focused on revenue growth. This factor is important because revenue growth attracts investor money.

.  “The royalty companies have done well and those stocks that basically show better revenue per share, reserves per share, production per share, they far outperform.” Holmes.

And if the company can grow revenue per share and/or cash flow per share this help share prices higher. Would you invest in a company that isn’t growing its revenue? This is why royalty stocks attract investors because they are able to grow revenue consistently over longer periods than the miners. The ability to add cash flowing royalties every year is like adding a new mine but a lot faster than a miner can.

Gold miners’ revenues are tied primarily to two items: 1. Production and 2. Gold Price. Investors are willing to pay up for anticipated growth in productionbecause a new mine is starting up or an existing mine is ramping up for further production. Investors are not willing to pay up for growth, they will sell. The higher the expected growth potential, the higher the anticipated returns. But, watch out if the company slips up. Investors will punish the share price like we recently saw with Pretium Resources and New Gold. When the commodity price is falling faster than the production growth, this will take down all stocks in the sectors. This is why it’s important to focus on higher quality companies, with low AISC or have high operating margins. It minimizes your risks on the downside because they can maintain dividends, and their revenue is less impacted.

You can see why royalty and streaming companies like Franco-Nevada and Royal Gold are so popular because they offer fairly consistent revenue per share and cash flow per share growth relative to gold miners.

PROTECTION & GROWTH

Gold and gold stocks provide investors with two very different sets of risks and opportunities to protect and grow their wealth. You own gold primarily as an insurance policy against your portfolio and the financial system. You own gold stocks as a way to potentially increase your wealth by focusing on growth, management ownership and catalysts. Two different asset classes that are part of the overall portfolio. By understanding the cycle that they both follow, you can enjoy the ups and take money off the table when the crowd is all in.

Written by Paul Farrugia, BCom. Paul is the President & CEO of First Macro Capital. He helps his readers identify mining stocks to hold for the long-term. He provides a checklist to find winning gold and silver miner stocks and any commodity producer.

Get the exact checklist that Professionals use to find winning Gold mining producer stocks.
Apply this to any mining producer stock in under 30 minutes!

Fireweed files a PEA with a pre-tax IRR of 32%

By Michael Allan McCrae

Yukon-based junior Fireweed Zinc (TSXV: FWZ) filed a preliminary economic assessment today showing a pre-tax net present value at 8% of Can$779M and an internal rate of return at 32%.

Company stock was largely unchanged at $2.01 a share. The 52-week high is $2.12 and the low is 67 cents.

The pre-production capital expenditure is $404M, which includes $105 million of capital cost required to upgrade the government-owned North Canol Road.

Study highlights were the following:

  • 18-year mine life with 32.7Mt of mineralization mined at 4,900 tonne-per-day average processing rate.
  • 1.54Mt of Zinc, 0.88Mt of Lead, and 37Moz of Silver in concentrate shipped.
  • Average yearly contained-metal production of 85kt Zinc, 48kt Lead and 2Moz Silver.

Metal prices used for the study were $1.21/lb Zn, $0.98/lb Pb, and $16.80/oz Ag

“This first NI43-101-compliant PEA on the Macmillan Pass Project represents a significant step for the Company as we progress the Project towards production. Project economics in the PEA demonstrate that Macmillan Pass is not just viable at the zinc, lead and silver prices levels contemplated in the study, but highly robust,” commented Brandon Macdonald, Chief Executive Officer, in a news release.

“With consideration of the exploration upside not just at the known zones, but also within the broader land package, the Project is steadily shaping up to be a premiere district-scale zinc mining camp in the mining-friendly Yukon Territory.”

The post Fireweed files a PEA with a pre-tax IRR of 32% appeared first on MINING.com.

…read more

From:: Infomine

Comstock Proposes to Extend Warrant Expiry Date

By Hamza Ghaznavi

Comstock Metals (TSXV:CSL) is pleased to announce that, subject to receipt of TSX Venture Exchange approval, it will be extending the expiry date of the common share purchase warrants issued in connection with the private placement of 12,506,671 units that was completed in two closings on June 9, 2016 and June 27, 2016. Each of the 12,506,671 warrants permit the holders thereof to acquire one common share at an exercise price of $0.18 and originally expired on June 9, 2018 or June 27, 2018, depending on which closing they were issued under. The Company is proposing to extend the expiry date by 18 months to December 9, 2019 or December 27, 2019, as applicable. Approximately 9% of the warrants are held by insiders of the Company.

The exercise price of $0.18 and all other terms of the warrants will remain unchanged for the extended exercise period. The Company will be applying to the TSX Venture Exchange for approval of the proposed extension.

About Comstock Metals Ltd.

Comstock Metals Ltd. is a Canadian-focussed mineral exploration company with various resource projects located in Canada.

For more information about Comstock Metals Ltd., please visit www.comstock-metals.com or contact:

Steven H. Goldman

Interim President, CEO and Director

COMSTOCK METALS LTD.

Phone: (416) 867-9100

Email: s.goldman@goldmanhine.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.

Click here to connect with Comstock Metals (TSXV:CSL) and receive an Investors Presentation.

The post Comstock Proposes to Extend Warrant Expiry Date appeared first on Investing News Network.

…read more

From:: Investing News Network

Upside Dow Breakout May Be Just The Beginning

 

 

At this point, all we can say is “Wow – did you see that breakout?”.  If you have been following our analysis, you already know we’ve been predicting this upside price move for over 4 weeks with our specialized price modeling systems, cycle analysis models and other specialized trading tools.  Last weekend, we posted very detailed analysis of the Elliot Wave and Fibonacci price levels that suggest we could see another upside price move that no one is expecting.

Please take a minute to read our two recent Elliot Wave research posts before you continue reading this post.  We want to make sure you understand the components of this price setup and what we believe will be the most likely outcome.

The upside breakout in price on Monday actually originated with an upside gap Sunday night.  This upside gap was likely the result of a combination of factors, yet it supported our analysis that the US major markets are poised for a dramatic upside price move soon.  Our Elliot Wave analysis suggested we could be setting up for a Wave 3-d upside price move that will end with a corrective price move sometime in early/mid 2019.  In order to confirm this analysis, we have to see new all-time price highs established before the end of 2018 with a solid upside price rally in place.

While the YM (DOW) was the only US major to show a clear upside price breakout, we believe the other US major markets will follow along soon enough.  We have highlighted what we believe is a critical support zone on this YM chart to try to illustrate that price rotation is normal.  We expect to see a 1~2% price rotation throughout this upside move that is completely natural and healthy for the markets.

 

Again, this is completely natural as the YM (Dow Jones index) is tied to the DOW Industrials and the Transportation Index which are breaking out this week. A breakout move like this in the YM suggests that the overall US economy is strengthening and that the future expectations are good that increased levels of transportation of goods will unfold. In our next post we will go into detail on these two sectors and show you some new opportunities emerging.

Additionally, we wanted to show you this NQ chart that is waiting for breakout confirmation from price.  Sometimes, the US majors do not always move in unison.  There are times when the S&P or the Nasdaq will move with greater velocity while the other US majors appear to move in a more muted manner.

The NQ, being tech-heavy, relies more on earnings and revenues from the FANG group.  A move higher in the NQ would indicate that future earning and revenue expectations are strengthening.  This is something we believe will happen in the near future as we expect the NQ to follow the YM with an upside price breakout very soon.

We are still very early in this trading week and we have lots of time for this move to unfold.  We can help you find and execute better trades with our advanced market timing and trade setups for active traders.  Our members already know what our predictive modeling systems are suggesting for the next 5+ weeks.

Our 53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

BECOME A PROFITABLE TECHNICAL TRADER TODAY!

CLICK HERE

      

Telson Mining Corporation Clarifies Definition of Cash Flow in News Release Declaring Commercial Production at its Campo Morado Mine

By Hamza Ghaznavi

Telson Mining Corporation (TSXV:TSN, OTCBB:SOHFF) By news release disseminated earlier today (the “Production News Release”), Telson announced the start of commercial production at its 100% owned Campo Morado Mine (“Campo Morado”) located in Guerrero State, Mexico.

In the Production News Release Telson stated amongst other production data:

Campo Morado Production Milestones

  • Telson generates US7.7M Cash Flow in Final Month and a Half (April 1 to May 15, 2018) of pre-production.
  • We generated approximately US$7.7M in cash flow during the three months of Q1, and increased to US$5.2M in April alone, which based on costs of approximately US$3.5M resulted in net cash flow for the month of US$1.7 million.
  • Concentrate pre-production April 1 – May 15, 2018, management’s estimated 100% concentrate sale value for 45 days ending May 15, 2018 (start of commercial production) – US $7.7 million.
    April 1 – 30th – US $5.2 million
    May 1 – 15th – US $2.5 million

On further review of the pre-filed Production News Release, this morning the Investment Industry Regulatory Organization of Canada (“IIROC”) determined that additional clarification was required and halted trading in the Company’s shares.

We wish to clarify that the term cash flow as used in the Production News Release is the cash receipts for concentrates delivered to the buyer of such concentrates. It is cash receipts and does not include cash payments for goods, services or payments to or on behalf of employees or any expenditures associated with the costs of production. The costs of production are calculated at month end. As stated in the Production News Release, in April 2018, Telson generated cash from the sales of concentrates of US$5.2M with costs of production of US$3.5M for net cash of US$1.7M. For the first 15 days of May (ending on the date of the commencement of commercial production) Telson generated cash receipts from the sales of concentrates of US$2.5M, however has not determined the costs of production for that interim period.

Now that Telson has declared commercial production cash receipts from sales of concentrate will be reported as revenues and Telson will be in a position to report net income/loss on a quarterly basis.

Telson reiterates that all of the figures in the Production News Release are correct.

About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base metal mining projects.

Telson is currently in production at its 100% owned Campo Morado Mine in Guerrero, Mexico. Telson acquired Campo Morado in June 2017, re-commenced mining and processing operations in October 2017 with pre-production from mine development on a trial basis that commenced at an average 1,400 tonnes per day and has just declared commercial production based on operating for 60 consecutive days at 75% of the Campo Morado mill’s nameplate capacity of 2,500 tonnes per day.

Telson’s Tahuehueto Project, located in north-western Durango State, Mexico is currently in pre-production at approximately 100 tonnes per day utilizing a toll mill for processing, and has entered a construction phase with a timeline to be producing on site in its own mineral processing plant capable of milling at least 1,000 tonnes per day in Q1, 2019. Regular metal concentrate delivery and sales are underway from both projects.

Visit: www.telsonmining.com

On behalf of the board of directors

(signed) “Ralph Shearing”

Ralph Shearing, P.Geol, President and Director

Qualified Persons
This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President and Director of Telson Resources Inc., a Professional Geologist registered in Alberta as a member of the professional association APEGA, and a Qualified Person as defined by NI 43-101. Data verification by Mr. Shearing includes personal inspection of the Campo Morado mine site, reviewing mining facilities, drill core, underground development and discussing work programs and results with geology and mining personnel.

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

It should be noted that Telson has declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Telson’s production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study was completed and relied upon to make a production decision. Telson has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017 and April 4,2018). This will soon be replaced by a pre-feasibility study (“PFS”) that will allow the application of modifying factors to the mineral resources to allow a portion of them to be converted to mineral reserves.

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties, such as production rates and increases; success of exploration, development and bulk sample processing activities and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved, the continuity of the price of gold, zinc, lead and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may …read more

From:: Investing News Network

Nemaska closes $280M to develop Whabouchi lithium mine

By Michael Allan McCrae

Quebec-based Nemaska Lithium (TSX:NMX) announced on Tuesday it had raised Can$280M to help bring its lithium mine to production.

Nemaska sold off on the news, declining 15% today to 98 cents a share. The 52-week high for Nemaska was $2.44 a share.

“Today marks a big day in the life of Nemaska Lithium, as we are announcing the last piece of financing required to start the commercial development of the Whabouchi lithium mine project,” said Guy Bourassa, President and CEO of Nemaska Lithium, in a news release.

The Whabouchi property is located about 300 km from Chibougamau. The company’s feasibility study outlines a combined open pit and underground mine. During the first 20 years, production will be derived from an open-pit developed to a maximum depth of 190 meters and with an average strip ratio of 2.2 to 1. The open pit will be mined using a standard fleet of off-road mining trucks and hydraulic excavators at a rate of 2,740 tonnes of ore per day. Mine life is 33 years.

“This project financing package, which covers capital expenditures of both the Whabouchi mine and Shawinigan electrochemical plant, project contingencies, working capital requirements and financing costs will ensure the future of Nemaska Lithium,” says Bourassa.

“This will also allow the Corporation to stay on target to initiate the commissioning of the Whabouchi mine by second half of calendar year 2019 and start commissioning the Shawinigan electrochemical plant during the first half of calendar year 2020”.

Co-lead underwriters of the financing were National Bank Financial, BMO Capital Markets and Cantor Fitzgerald Canada.

Written with material from Nemaska Lithium website.

The post Nemaska closes $280M to develop Whabouchi lithium mine appeared first on MINING.com.

…read more

From:: Infomine

Creative Destruction: An Alternate View

By Brian Maher

This post Creative Destruction: An Alternate View appeared first on Daily Reckoning.

“Universal basic income (UBI) is so silly on its face,” begins reader Roger A, “even a middle school kid would at least know to ask, “What’s the catch?””

Yesterday’s reckoning on universal basic income drew a heavy mail… and we thank you for your participation.

Ron B said:

There are a lot of jobs that would not be done if UBI is adopted, and there will be serious problems eventually… UBI is a big, big, big mistake!

Adds Maria R:

When I first heard the term I thought it meant the lowest annual wage salary to survive on. But having read the more about it, I realize that it is just another incentive to keep people on welfare.

These comments were typical.

But not every reader stood in harsh opposition.

Dave S, for example:

Though I don’t believe UBI ‘s time has come it will in the future as automation technologies hit an inflection point… The rapid shift in technology will leave many behind with incompatible skills so UBI will really be a social program to keep the barbarians away from the gates.

Meantime, George B — a UBI booster — gave us a good hard slating:

Your diatribe on UBI makes many unfounded assumptions, utilizes examples that arrive at false conclusions and is short of actual facts. Under Nixon the United States was a hair’s breath [sic] from UBI. It was derailed by one of his advisors who was an Ayn Rand adherent and presented him with some very poor quality evidence later debunked.

The UBI was supported by 1,200 economists, many of them world renowned… There is abundant newer research all disproving the “people will become lazy if given free money” canard that you promulgate. If you are open minded than [sic] actually read someone who has looked at the research and covers it…

We might remind George that Finland recently had a go at UBI — and dropped it quick as a wink.

But let us recall the reason universal basic income is receiving any hearing at all:

Automation.

Some estimate artificial intelligence (AI) and robotics will replace half of all jobs in 20 years.

These are not limited to trucking, taxi-driving or manufacturing and construction.

To these we must add white-collar jobs in law, finance, medicine, accounting, etc.

What will become of the attorney-at-law, we wonder — and the human pilot of the ambulance he chases?

We are unconvinced automation will proceed at the projected gallop.

But let us suspend all assumption for the moment… and drive on to the inevitable question:

What happens when robots are brainy enough to perform all human labor?

Economist Joseph Schumpeter (1883–1950) put the term “creative destruction” into wide circulation.

For Schumpeter, capitalism was the “perennial gale” of creative destruction.

Capitalism blows away the old and inefficient. In comes the new and improved.

Because of capitalism’s perennial gale… today’s plebe lives better than yesteryear’s king.

Innovation and technology have always allowed humans to mine fresh sources of productive employment.

The 19th century farmer became the 20th century factory worker… became the 21st century computer programmer.

But a fully capable robot would likely mean the end of the line.

A brute of a robot that can strike home a rivet is one thing.

But a genius robot that can do anything a human can do — only better — is quite another.

This intelligent robot would tower over the human as the human towers over the ape.

An Aristotle, an Einstein, would be a pygmy next to it.

What human ability would lie beyond this unnatural beast?

Artistic expression perhaps.

An evolved robot might run its circles around the human antique you say.

But it cannot appreciate beauty — much less express it.

The robot has a brain… but no soul.

No, the kingdom of the arts belongs to man alone.

Well, please introduce yourself to Avia…

Avia is a computerized musical composer.

Programmers “introduced” it to the music of Bach, Beethoven, Mozart, and other such colossi of the classical canon.

It proceeded to acquire musical theory based on the inputs… and taught itself to compose original music.

Its tunes have been featured in cinematic soundtracks, advertisements and computer games.

No human composer has yet proven able to distinguish its music from a carbon-based professional’s.

Will the next Mozart be a computer?

Not even the oldest profession is safe from robotic competition — if you can believe it.

But let it pass for now.

Return your mind instead to Schumpeter’s creative destruction…

The obvious benefits of capitalism are why most see only the “creative” part of the equation.

But we must never forget the equally critical “destruction” side of the ledger.

Capitalism thumbs a mocking nose at tradition.

It uproots communities.

Capitalism sends the human being careening around hairpin turns of social and technological change for which he may be unprepared.

Within a generation, the centuries-old farming community is given over to the assembly line and the punch clock.

A generation later that factory goes dark as the gales of creative destruction blow the jobs clear across to China… or Vietnam… or wherever the labor is cheapest.

Have you visited the Rust Belt?

It is the “Rust Belt” for a reason.

Furthermore, Americans must constantly upend themselves and their families to follow the jobs — which yanks apart the bonds of community.

And advancing technology makes today’s job obsolete tomorrow.

Not everyone can take up new lines of employment.

Many are simply left behind, broken… and can never catch up.

Today’s unemployment figure is officially 3.9%.

But that does not include the millions of forgotten and hopeless Americans who have simply thrown up the sponge.

As Jim Rickards noted yesterday, roughly 10 million able-bodied working age adults have abandoned the search for work.

Adjust for those “missing workers,” Jim says… and the real unemployment rate is about 10% — a depression level figure.

The river of progress carries forward, as it must.

And yes — it must.

But let us at least recognize…

The advancing river of progress sometimes takes the human note with it.

Within the cold economic data, behind the dense forests of statistics… exist living human beings with beating hearts.

And many with broken hearts.

To these, our fellow Americans — our fellow human beings — we lift a toast of acknowledgment today…

Regards,

Brian Maher
Managing editor, …read more

From:: Daily Reckoning

Desert Gold Closes Non-Brokered Private Placement

By Hamza Ghaznavi

Further to its news release of April 26, 2018, Desert Gold Ventures Inc. (TSXV:DAU, OTC:DAUGF, FKFT:QXR2.F) has closed its non-brokered private placement and has noted that the offering is oversubscribed. The company has raised an aggregate of $647,500 from the sale of 4,676,668 units at a price of 15 cents per unit.

Pursuant to the terms of the financing, each unit consists of one common share in the equity of the company and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the company at a price of 20 cents per share for a period of five years from the closing of the offering.

All securities issued as a result of this offering are subject to a statutory hold period. There are no finders’ fees payable in connection with this offering. This offering is subject to exchange approval.

The proceeds of the offering will be used for exploration activities at the company’s projects in western Mali and for general working capital.

The company also announces that it has amended the exercise price of its stock options announced on May 2, 2018, from 19 cents to 25 cents.

We seek Safe Harbor.

Click here to connect with Desert Gold Ventures Inc. (TSXV:DAU, OTC:DAUGF, FKFT:QXR2.F) for an Investor Presentation.

The post Desert Gold Closes Non-Brokered Private Placement appeared first on Investing News Network.

…read more

From:: Investing News Network

Chris Temple from The National Investor – Wed 23 May, 2018

By Cory Recapping The FOMC Minutes, Italian Politics, and Oil Reports

Chris Temple is with us today to recap some of the major news events from this week. We start with the recent FOMC minutes in terms of the comments regarding inflation and the flattening of the yield curve. We then look to Italy and the impact the current political situation is having on Italian bonds and Euro expectations. Finally the oil market is discussed as recent inventories grew but did not impact price to any great extent.

Download audio file (2018_05_23-Chris-Temple.mp3)

Click here to visit Chris’s site for more great commentary.

…read more

From:: The Korelin Economic Report