Gold in Bulgaria? Drilling Says ‘Yes’

Source: Streetwise Reports 01/11/2018

It’s been full speed ahead for this TSX.V-listed gold explorer in Bulgaria, and the drill bit is showing results.

Velocity Minerals Ltd. (VLC:TSX.V) began drilling its Rozino gold project in southeastern Bulgaria in August, and has now drilled more than 7,000 meters. The company’s most recently released drill results show diamond drill hole RDD-040 returning “144.7m grading 1.52g/t gold, including 24.0m grading 4.05 g/t gold.”

“This is the thickest continuous drill intersection ever returned from the property averaging greater than 1.0g/t gold,” the company noted. Assay results have expanded the near-surface mineralization beyond the Main Zone to the East and North Zones.

“Velocity’s shares look set to turn higher soon.” – Clive Maund

Keith Henderson, Velocity’s president and CEO, stated, “Exploration at East Zone has been particularly successful with hole RDD-040 intersecting continuous high-grade gold mineralization from surface over a 144-meter drill intersection. The most recently completed drilling at Rozino has stepped beyond Main Zone, seeking to define additional zones of near-surface mineralization at North Zone and East Zone.”

Henderson also noted that “since closing the acquisition of Bulgarian assets in late July 2017, Velocity has rapidly advanced the project and based on positive results added a second rig in October to complete more than 7,000m in total. Our stated aim has been to define potentially open-pittable epithermal gold mineralization and the program has clearly met that objective.”

The Rozino project is located about 20 kilometers from Ada Tepa, which Dundee Precious Metals is developing.

“With 7,000m of drilling completed, we anticipate conducting another 7,000 to 10,000m of drilling, which will enable us to release a preliminary economic assessment (PEA). Our option agreement grants us 70% of the project upon delivery of the PEA, which we hope to complete by late summer,” Henderson told Streetwise Reports.

“Velocity closed a successful financing at the end of September.” – Clive Maund

“We are delivering on what we’ve said we were going to do,” Henderson said. “We’ve drilled and have gotten really good results. The results at Rozino point to near-surface gold mineralization, which makes the project potentially open-pittable. We will continue to release drill results as we receive them.”

Technical analyst Clive Maund charted Velocity Minerals on CliveMaund.com on Jan. 10 and noted “the stock looks cheap here, as it looks set to reverse to the upside soon.” Another positive factor to take into consideration, Maund stated, “is that the company closed a successful financing at the end of September, making it less likely that there will be another one soon.”

Maund concluded that “Velocity Minerals is close to a cyclical low and looks set to turn higher soon.” The stock, he said, is ‘completely ‘off the radar’ so the emphasis is on quiet accumulation without the expectation that it will go roaring up 2 days after we buy it. Nevertheless, once the trend reverses it could make good percentage gains from here.”

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Velocity Minerals.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Velocity Minerals, a company mentioned in this article.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Mr. Maund does not own shares of Velocity Minerals.

( Companies Mentioned: VLC:TSX.V,
)

The role of exotic animals in California’s Gold Rush

By analyst

By Valentina Ruiz Leotaud

A recent study published in the journal California History reveals that, together with hundreds of people, exotic animals arrived in California during the Gold Rush of the 1850s.

According to the study’s author, Ph.D. candidate in the Department of Anthropology at The University of New Mexico Cyler Conrad, the men and women who landed in the northwestern state with the dream of striking it rich carried with them exotic and non-native animals on a regular basis because they were hungry, and during the early years of the Gold Rush there was simply not enough local food to feed everyone.

Thus, Conrad says, Galápagos tortoises, sea turtles, turkeys and Atlantic cod were imported. Other animals, such as cats from Mexico, were brought in to deal with pests. The most exotic in the pack, however, was the kangaroo.

Shipped from Australia by boat, the first kangaroo set foot in California in September 1852. Prior to that, kangaroo rugs and skins were sold with other leather and calf-skins as a textile to meet the high-demand for clothing for the exploding population. The living animal, on the other hand, was brought for entertainment, the researcher found. Emus and dingos joined the Australian animal-expats later on.

“Gold Rush Argonauts consumed native and non-native wild animals in great abundance, but new evidence suggests that, instead of serving on an epicure’ s plate, the few kangaroos imported to California were used by Australians to make a quick profit in the dramatic and turbulent Gold Rush-era,” Conrad explains in a press release.

Relocating these animals to North America was not incident-free, though. In his study, the archaeologist found that on December 7, 1859, a kangaroo escaped from a menagerie near Visalia, where a local entrepreneur had been exhibiting the animal at one ‘bit per sight.”

The post The role of exotic animals in California’s Gold Rush appeared first on MINING.com.

…read more

Source:: Infomine

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Klondex shrinks Manitoban operations

By analyst

By Valentina Ruiz Leotaud

Klondex Mines Ltd. (KDX:TSX) announced this week the immediate reduction of underground mining operations and workforce at its True North mine, located about 165 kilometres northeast of Winnipeg, in the Canadian province of Manitoba.

Although Klondex had big hopes for the 43,000-hectare complex when it acquired it in January 2016, the mine didn’t make as much money as it was supposed to in 2017. Preliminary full-year 2017 gold ounce production is estimated to be between 24,000 – 27,000 ounces, which is less than the expected 35,000 – 45,000-ounce range.

Given these results, the Vancouver-based firm decided to limit underground mining to areas already developed. Once such areas are depleted, underground mining will be suspended and the operation will be placed on care and maintenance status, at least until metal prices are higher. “The Company will continue to process tailings, as contained in its reserve estimate, through the mill for the foreseeable future in order to maximize cash flow and offset expected care and maintenance costs,” a corporate press release reads.

President and CEO Paul Huet recognized that the strategy for the site didn’t go as planned. “Following the True North acquisition, the Company implemented an aggressive plan to start up production. We have extensively evaluated our progress to date and have determined that it is in the best interest of the Company and our shareholders to revise our plans for the True North mine,” he said in the media statement. “We regret the implications these actions will have on our workforce and other stakeholders but must ensure the long-term sustainability of the Company,” he added.

On a more positive note, the brief indicates that True North’s 2017 drilling campaign was successful and that a new resource estimate should be out in the first quarter of 2018. Also, Klondex said it is assessing the potential of using the True North mill to process ore from both the True North mine and its recently acquired Ogama-Rockland property, which has an inferred resource of 337,000 gold equivalent ounces.

The post Klondex shrinks Manitoban operations appeared first on MINING.com.

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Source:: Infomine

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Lundin Gold to start building Ecuador’s largest underground mine

By analyst

By Valentina Ruiz Leotaud

Together with Ecuador’s Ministry of Mines, Canadian Lundin Gold (TSE:LUG) officially inaugurated two tunnels at its Fruta del Norte gold-silver project, located in the southeastern province of Zamora Chinchipe. The tunnels were named Kuri, which means gold in the Indigenous language Shuar, and K’isa, which means fruit in Quechua.

Following the completion of soft tunneling in December 2017, mine development moved into hard rock, the company explained in a press release. To reach this stage, Lundin staff had to work through 77 metres of saprolite or soft clay in the first decline and 69 metres in the second. Drilling and blasting in hard rock started on December 7, 2017, in the first decline and December 17, 2017, in the second. Currently, the advance in hard rock has reached 100 metres and 78 metres, in the first and second declines, respectively.

These milestones mark the beginning of construction of the underground mine, which is expected to produce 340koz of gold per year over 13 years. Probable Mineral Reserves are of 4.8 million ounces of gold and 6.34 million ounces of silver, which make it Ecuador’s largest gold project.

“Tunneling through soft clay was a significant risk factor to underground mine development due to the potential for ground failure. We were able to get through this challenging task, and the mine development is now advancing at a quicker pace,” said Ron Hochstein, President and CEO of Lundin Gold, in the media brief. “We are also ramping up other major projects, including the process plant and powerline.”

According to Hochstein, the EIA for the 43.83-kilometre powerline received final approval at the end of 2017. The company, he added, is waiting for a few easement agreements with affected landholders to be completed. Meanwhile, earthworks on the process plant are 13% complete with concrete mill foundations planned to start in the first quarter of 2017.

“Regardless of difficult ground conditions, site earthworks are on schedule,” the Vancouver-based miner said in the statement.

Lundin has paid $45 in anticipated royalties and should pay additional $20 million in 2018. Ecuador expects to receive $1 billion from royalty payments throughout the 13 years of mine life.

The post Lundin Gold to start building Ecuador’s largest underground mine appeared first on MINING.com.

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Source:: Infomine

The post Lundin Gold to start building Ecuador’s largest underground mine appeared first on Junior Mining Analyst.

Pancontinental in the quest for “blue gold”

By analyst

By Valentina Ruiz Leotaud

Canada’s Pancontinental Gold Corporation (TSXV: PUC), a company whose focus is on the Jefferson gold project in South Carolina, wants to expand its presence in the market for key battery metals.

The Toronto-based firm announced today that it has entered into an option agreement with 2522962 Ontario Incorporated to acquire a 100% interest in the Montcalm West Nickel-Copper-Cobalt Project, located 65 kilometers northwest of Timmins, Ontario.

In a press release, the company explained that the Montcalm West Project is comprised of two separate properties, the Montcalm and Nova Properties. The Montcalm Property is contiguous and surrounds the western portion of the former Montcalm Mine, which had historical production of 3,931,610 tonnes of ore grading 1.25% nickel, 0.67% copper, and 0.051% cobalt, and which produced in excess of 4 million pounds of cobalt. The Nova Property, on the other hand, is located approximately 19 kilometers southwest of the mine and consists of four contiguous mining claims.

Pancontinental wants to purchase the Montcalm West Project in its entirety for cash payments of $140,000. The company would also have to issue 1,200,000 common shares in four equal payments over a three-year period.

In the statement, the miner said that the West Project’s potential for cobalt or “blue gold” is what makes it so attractive. “Cobalt prices increased 120% in 2017, and cobalt is forecast to experience up to a 4,500% surge in global demand from now to 2030. Cobalt, primarily mined as a by-product of nickel and copper, is important as a key input for batteries, and thus electric vehicles. A laptop computer contains approximately one ounce of cobalt, while an average electric car battery typically contains more than 30 pounds of cobalt,” the release reads.

Canada is, to date, the world’s No. 3 cobalt producer, after the DRC and China, accounting for about 6% of global supply.

Once it receives the needed permits, Pancontinental intends to fly a VTEM or electromagnetic survey and airborne gravity survey to detect potential targets at depth, as documentation from the Montcalm Mine shows that the deeper lenses in the mine start at 250 meters below surface. Following this work, the company will start drilling.

At the Nova Property, the plan is to conduct preliminary prospecting efforts over key portions of the property to fully evaluate known cobalt mineralization. This work will be conducted with a mobile metal ion geochemical survey, which would evaluate the Nova Property for a potential near-surface bulk tonnage deposit.

Following the announcement of the acquisition, Pancontinental’s shares closed Wednesday’s session with gains of 22.22%.

The post Pancontinental in the quest for “blue gold” appeared first on MINING.com.

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Source:: Infomine

The post Pancontinental in the quest for “blue gold” appeared first on Junior Mining Analyst.

Chris Temple from The National Investor – Wed 10 Jan, 2018

By Cory More News Driven Moves In Treasuries… But What About The US Equity Markets

Chris Temple is with me to wrap up the markets for today. Another day where news was moving bonds all thanks to a report out of China that they will curb purchases of US treasuries. Even though the bond market sold back down throughout the day we are seeing a consistent shift by the major players away from bonds. The real takeaway is the lack of a sell of in the US markets. With good reason to sell off today markets were only slightly down and the VIX actually ended the day in negative territory.

Download audio file (2018_01_10-Chris-Temple.mp3)

Click here to visit Chris’s site for his further commentary.

…read more

Source:: The Korelin Economics Report

The post Chris Temple from The National Investor – Wed 10 Jan, 2018 appeared first on Junior Mining Analyst.

Company News – Wed 10 Jan, 2018

By Cory Fireweed Zinc – Announces Macmillan Pass Mineral Resource Estimate with Substantial Increase in Size: 11.2Mt at 9.6% ZnEq Indicated plus 39.5Mt at 10.0% ZnEq Inferred

Fireweed Zinc is a Company I introduced to everyone at the tail-end of November. The Company has a tight share structure with only 23.5million shares outstanding and cash int he bank to continue toward a PEA. This updated 43-101 comes on the back of some nice drill results that were released in December.

I will be having the CEO Brandon Macdonald on the show tomorrow to further outline the improvements in this resource.

Click here to listen to the introduction interview posted back in November.

Vancouver, British Columbia: FIREWEED ZINC LTD. (“Fireweed” or the “Company”) (TSXV: FWZ) is pleased to announce new combined mineral resource estimates in accordance with NI43-101 for the Tom and Jason zones on the Macmillan Pass Project (Yukon, Canada). The new Base Case updated resource is reported in Table 1.

Table 1: Base Case Mineral Resource Estimate (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

Fireweed CEO Brandon Macdonald stated, “These new Mineral Resource Estimates for Tom and Jason represent a substantial increase over the previous 2007 Mineral Resource Estimates. Building on this major milestone, we will now use these Mineral Resource Estimates along with pending new metallurgical test results, toward completion of a Preliminary Economic Assessment in the coming months to assess project economics. Next summer we will execute a larger drill program to expand on these mineral resources and test other targets for new discoveries within our large project area. We have made excellent progress in the short seven months since our IPO and plan an even more aggressive program in 2018 to drive this world-class project forward.”

Table 2: Mineral Resource Estimate NSR Cutoff Sensitivity (Base Case $65/t CAD)

NSR Cut Off ($)
Tonnes (Mt)
ZnEq %
Zn %
Pb %
Ag g/t
B lbs Zn
B lbs Pb
MOz Ag

Indicated

45
11.43
9.49
6.52
2.44
20.96
1.64
0.61
7.70

65
11.21
9.61
6.59
2.48
21.33
1.63
0.61
7.69

85
10.30
10.04
6.81
2.65
22.92
1.55
0.60
7.59

105
7.63
11.48
7.49
3.22
29.77
1.26
0.54
7.30

Inferred

45
43.14
9.44
5.55
2.95
35.45
5.28
2.80
49.17

65
39.47
10.00
5.84
3.14
38.15
5.08
2.73
48.41

85
33.18
11.01
6.26
3.56
43.99
4.58
2.61
46.92

105
24.48
12.83
6.82
4.50
56.34
3.68
2.43
44.34

Notes for Tables 1 & 2:

The Mineral Resource Estimates in this disclosure were estimated by CSA Global Canada Geosciences Ltd. (“CSA Global”), an international independent mining industry consultancy.
The effective date of this Mineral Resource Estimate is January 9, 2017 and includes all drill results to the end of 2017.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability but are required to have reasonable prospects for eventual economic extraction.
The NSR values were calculated using estimated metallurgical recoveries, assumed metal prices, transportation costs and smelter terms including payable factors, treatment charges and refining charges. No penalties were included. Metal price assumptions were: US$1.17/lb Zn, US$0.99/lb Pb, and US$16.95/oz Ag and an exchange rate of US$0.77 = $1 CAD. Metal recovery assumptions were: 79% Zn, 82% Pb and 85% Ag (12% to Zn concentrate and 73% to Pb concentrate). Based on these assumptions the formula for the NSR on each block was calculated as:

NSR $/t CAD =

$16.16 * Zn(%) (Zn NSR from Zn …read more

Source:: The Korelin Economics Report

The post Company News – Wed 10 Jan, 2018 appeared first on Junior Mining Analyst.

Societal Commentary from Big Al and others. – Wed 10 Jan, 2018

By Big Al I have a right to my privacy and, Dammit, so do you!

How do you feel about totally loosing your privacy through your computer or even you smart television set? I personally don’t like it at all!

Download audio file (Genesis-Segment-6-Jan-13-We-continue-our-discussion-about-cyber-security-with-Adam-Levin-1.mp3)

…read more

Source:: The Korelin Economics Report

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Richard Postma – The Doctor Is In – Wed 10 Jan, 2018

By Cory A Focus On Uranium and Uranium Stocks

On the back of a couple requests for Doc’s comments on the Uranium sector here we go. We look at the URA chart as well as Uranium Energy Corp, UEC. With the complete washout in uranium stocks over the the past few years when this sector turns there are only a few companies left to invest it. We also follow up on the comments made earlier today by David Erfle regarding his bullish stance for the precious metals.

Download audio file (2018_01_10-Doc.mp3)

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Source:: The Korelin Economics Report

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David Erfle – Gold Market Commentary – Wed 10 Jan, 2018

By Cory A Bullish Case For The Continued Move Up In PM Stocks

David Erfle, The Junior Miner Junkie is very encouraged by the moves he is seeing in junior metals stocks. With stocks leading the way this is a different environment than we saw last year. He also points to the lack of overall bullishness even after this move as a sign that there is more room to run. The USD is again key for the next more significant move higher in metals on a broad sense.

Download audio file (2018_01_10-David-Erfle.mp3)

Click here to visit David’s site and sign up for his newsletter.

…read more

Source:: The Korelin Economics Report

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