Weekend Show – Sat 30 Nov, 2019

Hour 1 – A Focus on Resource Stocks and Building a Hit List For Tax Loss Selling
Full First Hour

I hope everyone had a very happy Thanksgiving down in the US!

On the first hour I focus on the resource sector. Topics range from metals to energy and thoughts on the two multi-million to billion dollar deals in the resource sector. Please keep in touch by emailing me at Fleck@kereport.com.

Exclusive Company Interviews and Commentary This Week


Segment 1 and 2 – Jesse Felder
Segment 3 – Josef Schachter
Segment 4 – John Kaiser

John Rubino over at Dollar Collapse – Mon 25 Nov, 2019

Big news out of Kirkland Lake and Detour Gold. Also comments on Great Bear and Novo

John Rubino joins me today to discuss some of the resource companies that are catching his eye. We start with the news today of Kirkland Lake buying Detour Gold for $4.9billion in an all cash deal. We then look down the food chain to some of the more advanced explorers. Great Bear Resources and Novo both released news recently that we comment on.

Please send me any company questions and I will do my best to get them answered. My email is Fleck@kereport.com.

Click here to visit John’s site.

Craig Hemke from TF Metals Report – Fri 11 Oct, 2019

Making Light Of The Major Drivers In Gold and Gold Stocks

Craig Hemke kicks off today with a look at the major drivers in the gold market currently. We discuss the back and forth in trade and recent comments from Powell at the Fed. There is also an example of what seems like good news for a gold Company that is being sold.

Click here to visit Craig’s site – TF Metals Report.

Weekend Show – Sat 11 May, 2019

Hour 1 – Trade vs US Markets and Comments On Specific Metals Stocks

It was a week dominated by trade and tariff talk. As Friday hit we saw additional tariffs implemented on good from China as a deal was not reached. This continues to be the overwhelming story for investors as the lack of clarity is keeping everyone guessing as to how this will all play out.

Be sure to go back and listen to the daily editorials focusing on the trade issue as well as the company interviews (there were a lot of them this week) that were posted on the site.

  • Segment 1 – Marc Chandler, Managing Partner at Bannockburn Global ForEx recaps the trade news and market reaction throughout the week. We also look at the pullback in the USD this week.
  • Segment 2 – Dana Lyons weighs in on the buy the dip mentality for the US markets and the sectors that could add a boost to the broad averages.
  • Segment 3 – I switch the focus to the resource sector with John Kaiser, Founder of Kaiser Research. We look into three stocks that have drill programs this year following up on positive results from last year.
  • Segment 4 – Erik Wetterling, Founder of The Hedgeless Horseman wraps up the first hour with comments on how he is managing his portfolio in this sideways metals market.

Exclusive Company Interviews This Week


Marc Chandler
Dana Lyons
John Kaiser
Erik Wetterling

Record earnings, free cash flow for Kirkland Lake Gold in Q1

According to Q1 results, Kirkland Lake Gold is headed for a profitable 2019. The company said its cash position was up 25% to reach $83.9 million. Operating cash flow grew 95% to $174.4 million, and that resulted in record free cash flow of $93.1 million, an 85% jump from Q1 2018 and up 8% over Q4 2018.

During the first quarter of this year, the company’s revenue grew 54% to a record $304.9 million, compared to the same quarter a year earlier. Record net earnings of $110.1 million – up 120% from Q1 2018 – and adjusted net earnings were $112.1 million, 114% higher than a year earlier.

Kirkland Lake also recorded production of 231,879 oz. of gold at an all-in sustaining cost of $560/oz. Reserves at both the Macassa mine in Ontario and the Fosterville mine in Australia grew by 11% and 60%, respectively. At the end of 2018, reserves at all properties were 5.75 million oz. at 15.8 g/t gold, compared to 4.64 million oz. at 11.1 g/t gold at the end of 2017.

So much good news allowed the company to raise its quarterly dividend by 34% to $0.4 per share. At market close Tuesday Kirkland's shares had jumped 6.3%, priced at C$44.17 on the TSE. The company has a C$9.29B market capitalization.

(This article first appeared in the Canadian Mining Journal)

The post Record earnings, free cash flow for Kirkland Lake Gold in Q1 appeared first on MINING.com.

Kirkland Lake drills more bonanza grades at Macassa

Toronto-based Kirkland Lake Gold can’t seem to miss drilling high grades at its Macassa gold project in the town of Kirkland Lake. Recent excellent results highlight the potential for growing resources and new discoveries, says the company.

Drilling east of the South Mine Complex (SMC) has returned 118.8 g/t gold over 2.0-metres core length, 62.7 g/t over 1.9-metre true width, and 73.8 g/t over 2.7-metres true width.

Drilling 250 metres west of the current SMC resources returned 4,772.2 g/t gold over 2.0-metres core length, a pair of 436.9 g/t over 2.8-metres core lengths in separate zones, and 158.0 g/t over 2.4-metres true width.

Drilling also expanded the Lower SMC to the east and at depth, returning 2,458.6 g/t gold over 1.8-metres true width, 523.2 g/t over 2.0-metres core length, and 20.0 g/t over 3.8-metres true width.

At the amalgamated break, new drilling to the east returned true widths of 429.1 g/t gold over 2.7 metres, 164.8 g/t over 2.1 metres, and 26.7 g/t over 1.2 metre. KLGold geologists also reinterpreted historic holes to the west and relogged core lengths of 827.9 g/t gold over 2.0 metres, 360.9 g/t over 2.0 metres, and 333.8 g/t over 2.0 metres.

Kirkland Lake says the amalgamated break has substantial exploration potential largely untested by historic drilling. A previously unidentified area of bonanza grades was recently drilled from the 5700 level ramp development. The reinterpretation of old cores from the break resulted in the identification of a new steep north-dipping zone north of – and likely associated with – the amalgamated break.

(This article first appeared in the Canadian Mining Journal)

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RANKED: Top 10 lowest cost gold mines on the globe

In 2018, global gold mining companies' average all-in sustaining costs (AISC) fell 6% across the board as miners reacted to a gold price in steady decline for most of the year.

The AISC metric serve as a benchmark of a mine’s operating efficiency. They provide a more comprehensive look at mine economics than the traditional "cash costs" approach that many companies may interpret arbitrarily – and it includes important expenses such as overhead outlays and capital used in ongoing exploration, mine development and production.

Mining Intelligence, a MINING.com sister company, looked at costs at primary gold mines and ranked them based on AISC. Primary gold operations are defined by Mining Intelligence as “mines where gold contributed to 80% or more of revenues from operating activities generated last year.”

The data used by Mining Intelligence represents companies reporting quarterly production and listed on the following stock exchanges: TSX (+TSX-V), ASX, LSE (+LSE-AIM), NYSE, and JSE. The ranking excludes privately-owned mines, tailings, re-processing operations, mines where the precious metal is produced as a by-product, and operations where companies report gold-equivalent output.


Falling out of the top ten list compiled by Mining Intelligence in 2018 are two Barrick mines that were on the Mining Intelligence list compiled in 2018: Lagunas Norte in Peru, where costs have gone up from $483 to $636/oz, and Pueblo Viejo, in the Dominican Republic, where costs rose from $525 to $623/oz. The Barrick mines made way for two recently commissioned mines: B2Gold's Fekola mine in Mali, and Atlantic Gold's Moose River mine in Nova Scotia.

1 Svetloye – $425/oz

Svetloye mine. Image from Polymetals.

Polymetal’s Svetloye mine is an open-pit gold operation that located in the far east region of Russia. Despite the remote location and lack of infrastructure, high-grade ores and heap-leaching technology help this mine to produce gold at the lowest costs possible.

2 Fosterville – $442/oz

Fosterville mine. Image from Kirkland Gold.

Fosterville is the largest gold producer in the state of Victoria, Australia. The underground mine is owned by Toronto-based Kirkland Lake Gold. Production in 2018 totalled 356,230 ounces. Recently the company raised the production guidance to 550,000-610,000 ounces for 2019-2020, up from the previous guidance of 390,000–430,000 ounces.

3 Olimpiada – $468/oz

Olimpiada mine. Image from Polyus.

Located in one of Russia’s most prolific gold mining provinces, Olimpiada is Polyus’ largest operation.To treat Olimpiada’s sulphide ores, Polyus employs BIONORD, the company’s proprietary bio-oxidation technology. Successful exploration activities in the area indicate the potential for substantial extension of the life of this mine.

4 Voro – $477/oz

Voro mine. Image from Polymetal.

Voro is one of Polymetal's very first key gold assets, acquired in 1998. The mine and processing facility is located in the Sverdlovsk region of Russia. The open-pit and heap leach operation started in 2000 and has another nine years of life.

5 South Arturo – $478/oz

South Arturo mine. Image from Premier Gold Mines.

The South Arturo open-pit gold mine in Nevada is a high-grade oxide deposit amenable for highly efficient heap leaching mineral processing and extraction technology. This deposit is of the prominent Carlin-type widely known as being one of the most productive and cost efficient geological formations worldwide. Premier Gold Mines holds a 40% interest in the South Arturo property with Barrick owning the remaining 60%. Barrick processes South Arturo ore at its Goldstrike plant 5 km south of the mine.

6 Long Canyon – $505/oz

Long Canyon mine. Image from Newmont.

Newmont’s Long Canyon open-pit mine is of the same mineralization style as the South Arturo deposit, and the only significant discovery made in Nevada in the last decade. The nature of the deposit, application of a heap leach technology and tapping into existing infrastructure keep costs at Long Canyon at some of the lowest levels in the industry.

7 Fekola – $533/oz

Fekola mine. Image from B2Gold.

B2Gold first acquired the world-class Fekola gold project in Mali through a merger with Papillon Resources back in 2014. First gold pour at the Fekola mine took place three years later. The company recently decided, based on a positive PEA study, to invest $50 million into expanding the mine's capacity.

8 Cerro Negro – $535/oz

Goldcorp’s Cerro Negro mine.

Sitting 600 metres above sea level on the Patagonian plains in southern Argentina, Goldcorp’s Cerro Negro underground mine has 4.86 million ounces in proven and probable gold reserves. Commercial production began on January 1, 2015.

9 Blagodatnoye – $547/oz

Blagodatnoye mine. Image from Polyus.

Polyus commissioned Blagodatnoye in Krasnoyarsk, eastern Siberia in July 2010. Processing capacity at the open pit, located 25 km from the Moscow-based company's flagship Olimpiada mine, is 8.1 million tonnes of ore per year, which makes it one of the largest facilities of its kind in Russia.

10 Moose River – $564/oz

Atlantic Gold's Moose River mine.

Atlantic Gold’s Moose River open-pit mine is located in Nova Scotia that has a long history of gold mining. Commercial production was declared in March 2018, and in the first year production reached 90,500 ounces. Atlantic expects its phase two expansion plans will have gold production ramping up to more than 200,000 ounces per annum.

(Based on research compiled by Vladimir Basov of Mining Intelligence)

The post RANKED: Top 10 lowest cost gold mines on the globe appeared first on MINING.com.

Kirkland Lake files updated Macassa 43-101 report

Toronto-based Kirkland Lake Gold has filed an updated 43-101 resource report for its Macassa gold mine in the town of Kirkland Lake. The report includes resources at Dec. 31 ,2018.

Two important zones – Main/04 break and South mine complex – are detailed. The Main/’04 break has 775,000 measured and indicated tonnes averaging 17.9 g/t gold and containing 447,000 oz. The South mine complex has 1.0 million tonnes grading 16.4 g/t gold and containing 536,000 oz. Together they contain 1.8 million tonnes averaging 17.1 g/t gold.

Inferred resources total 610,000 tonnes averaging 16.7 g/t gold for 328,000 contained oz. of gold. Two zones together contain 1.8 million tonnes averaging 17.1 g/t gold

The company will also be considering the numerous recommendations in the report. Underground drilling should continue to test the east and west strike extension of the South mine complex, the Amalgamated Kirkland Break, east of the Main Break below 5800 level, and east into the Kirkland Minerals and Teck Hughes properties. The potential to expand the refinery throughput with the addition of certain components may be examined.

Kirkland Lake has already begun work on the new shaft No.4 near the mill. It will be sunk in two phases, the $240-million first phase will be done in 2022, and the $40-million phase two in 2023. The finished depth will be 1,735 metres with five shaft stations. The No.4 shaft will allow the Macassa mine to produce 400,000 oz. of gold annually.

Work is also underway to expand the North tailings storage facility, add a pair of ventilation raises at the South mine complex, and consider at what point the paste fill system needs to be enlarged.

(This article first appeared in the Canadian Mining Journal)

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Appointment notices: Kirkland Lake Gold, Nemaska Lithium, and Skeena Resources

Toronto-based Kirkland Lake Gold has announced the retirement of board chairman Eric Sprott, effective after the annual meeting on May 7, 2019. He has been chairman since 2015. The vacancy will be filled by Jeff Parr as interim chairman until the AGM.

Ronald Bougie is joining Nemaska Lithium in Quebec City as VP engineering and construction. His appointment and certain other changes at the company will strengthen controls over construction work at the Whabouchi mine and Shawinigan plant.

Skeena Resources of Vancouver is strengthening its operating team with the nomination of Stacy Freudigmann as project manager for its Eskay Creek and Snip projects. He specializes in mining management, metallurgy and process engineering, project management, and development. He founded Canenco Consulting in 2010.

(This article first appeared in the Canadian Mining Journal)

The post Appointment notices: Kirkland Lake Gold, Nemaska Lithium, and Skeena Resources appeared first on MINING.com.

Rubicon boosts measured and indicated resources at Phoenix by 110%

After a 20,000-metre drill program last year at its Phoenix project in Red Lake, Rubicon Minerals (TSX: RMX) has increased measured and indicated resources by 110% to 589,000 oz. gold compared with the earlier estimate of 281,000 oz. gold, while gold grades fell 2% to 6.26 grams gold per tonne from 6.37 grams gold.

Inferred resources fell 28% to 540,000 oz. gold compared to the previous estimate of 749,000 oz. gold, while grades increased 9% to 6.53 grams gold from 6 grams gold, previously.

The company has started a preliminary economic assessment which it expects to complete by year-end.

Rubicon plans further infill drilling to expand the measured and indicated resources to a threshold of more than 650,000 oz. gold, a level that the company says is required to advance the project to the feasibility stage. The company plans to drill another 20,000 metres this year.

The company says its 35,000-tonne test trial mining and bulk sampling work at the end of 2018 validates its current geological model.

Exploration target areas with greater than 80-metre centres have the potential of between 0.9 million and 1.2 million tonnes of mineralizered material grading between 5 grams and 7 grams gold, mostly at depth, the company says.

The updated mineral resource model covers a strike length of about 1,200 metres and depths down to 1,403 metres, and remains open along strike and at depth. It excludes the crown pillar and depleted resources from test trial mining.

Rubicon is the second-largest property holder in the Red Lake gold camp of northwestern Ontario, with more than 28,000 hectares

At a base case cut-off grade of 3 grams gold per tonne, Phoenix contains 2.93 million measured and indicated tonnes grading 6.26 grams gold for 589,000 oz. gold and a further 2.57 million inferred tonnes grading 6.53 grams gold for 540,000 oz. gold.

Rubicon says that it has boosted measured and indicated resources by a total of 456% over the last two years.

In addition, surface infrastructure is ready for operations, the company says, including a fully operational hoist, civil and earthworks, an electric substation, upgrades to a 200-person camp, a tailings management facility and a water treatment plant.

Underground, more than 14,000 metres of development are also in place, including an operational shaft down to 730 metres below surface.

Rubicon is the second-largest property holder in the Red Lake gold camp of northwestern Ontario, with more than 28,000 hectares.

Trial mining of the project was called off in late 2015, when the company, under a previous management team, realized the geology was more complex than it had thought, and a new resource estimate revealed that contained gold ounces in the indicated resource category had plunged 91% from a 2013 resource estimate, while contained gold ounces in the inferred category had fallen 86%. The company halted all work and spent the rest of the year and much of 2016 staving off bankruptcy.

The company hired mining engineer George Ogilvie in July 2016 to restructure Rubicon and turn the Phoenix project around.

Ogilvie began his career in 1989 with AngloGold in South Africa working in the ultra-deep, high-grade gold mines in the Witwatersand basin. Before joining Rubicon, Ogilvie was the CEO of Kirkland Lake Gold (TSX: KLG) from 2013 to 2016, where his management team improved operations at the company’s Macassa mine and guided its acquisition of St Andrew Goldfields. Before joining Kirkland, Ogilvie was the CEO of Rambler Metals and Mining (TSXV: RAB), where for over seven years he guided the company from grassroots exploration to a profitable junior producer.

(This article first appeared in The Northern Miner)

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