Kinross proceeds with smaller $150m Tasiast expansion

Canadian miner Kinross Gold has announced a $150-million investment to incrementally expand the throughput capacity at its Tasiast mine, in Mauritania, to 24 000 t/d. The Tasiast 24k project comes at a significantly lower capital cost than the original 30 000 t/d Phase 2 expansion and was announced about a month-and-a-half after the country inaugurated a new President.

Gold rallies on concern Saudi Attack may presage wider conflict

Gold and silver rallied after a strike against Saudi Arabian oil facilities raised the possibility of retaliatory US military action in the Middle East, with investors seeking haven assets at the start of a week that’ll also see critical policy decisions from central banks including the Federal Reserve. Bullion jumped more than 1.5% as investors gauged the ramifications from the assault against the world’s biggest crude-processing facility in Abqaiq and kingdom’s second-biggest oil field in Khurais. Secretary of State Michael Pompeo blamed Iran for the disruption, a charge that was rejected by Tehran.

Gold rallies on concern Saudi attack may presage wider conflict

Gold and silver rallied after a strike against Saudi Arabian oil facilities raised the possibility of retaliatory US military action in the Middle East, with investors seeking haven assets at the start of a week that’ll also see critical policy decisions from central banks including the Federal Reserve. Bullion jumped more than 1.5% as investors gauged the ramifications from the assault against the world’s biggest crude-processing facility in Abqaiq and kingdom’s second-biggest oil field in Khurais. Secretary of State Michael Pompeo blamed Iran for the disruption, a charge that was rejected by Tehran.

Weekend Show – Sat 14 Sep, 2019

Hour 1 – Recapping The Beaver Creek Conference and Change In Investing Money Flows

It was a busy week for me at the Beaver Creek conference. I had over 30 meetings which impeded me from recording daily editorials. I’ll be back to it next week with my full slate of guests. 

I managed to record this weekend show’s full hour before traveling home on Friday morning. Most of the show this week is focused on the previous metals and resource stocks. I hope you all enjoy and have a great weekend!

Keep on touch by emailing me at Fleck@kereport.com.

  • Segment 1 – Chris Temple, Founder of the National Investor, kicks off the show by recapping the week. We discuss trade “developments” and the new ECB QE program. We also look ahead to the Fed next week as well as the shift in markets. 
  • Segment 2 and 3 – David Erfle, Founder of the Junior Miner Junky, and I recap the Beaver Creek investment conference we attended this week. We look at the expectations for gold and the stocks that caught out eye… Please note we recorded this in Friday morning. The comments Dave made regarding silver and the levels he was watching were all made before the breakdown happened. It makes the numbers all the more important.
  • Segment 4 – Jayant Bhandari wraps up the show by sharing his trading strategy and a couple stocks he likes. 

Chris Temple
David Erfle
Jayant Bhandari

Fortuna Silver achieves production milestone

Fortuna Silver Mines Inc. [FVI-TSX; FSM-NYSE] said Friday September 13 that it has started pre-production mining at its 100%-owned Lindero gold project in Argentina.

Initial blasting on mineral reserves commenced in early September (2019) and the company said it is planning to build stockpiles of reserves ahead of stacking on the leach pad.

“The start of pre-production mining is one of the important milestones of the project as we go into the final stretch of construction,” said Fortuna President and CEO Jorge Ganoza.

“The Lindero mineralized body presents us with important economic benefits that can be captured right from the start of mining,” he said. “There is no pre-stripping required and high-grade gold mineral reserves will be accessed with a low strip ratio below one in the first year.”

In its first full year in operation, Lindero is expected to produce between 145,000 and 160,000 ounces of gold.

Fortuna is a fast-growing precious metals producer. It already operates two low-cost mines in Peru and Mexico.

The San Jose Mine in Mexico is located in Oaxaca State. It produced 8.0 million ounces of silver and 53,517 ounces of gold in 2018. The Caylloma Mine in Peru, produced 911,309 ounces of silver in 2018.

This year, the company is forecasting consolidated production of up to 9.0 million ounces of silver, up to 54,000 ounces of gold, up to 29 million bounds of lead, and up to 44 million pounds of zinc.

Lindero will be the company’s third mine, and the first in Argentina.

The project is a gold-rich porphyry system located in the Argentinian puna at an elevation of approximately 3,500 to 4,000 metres and 260 km west of Salta City. It takes about 7.5 hours to drive over a road distance of 420 km to the mine city from Salta City.

Lindero is an open pit, heap leach gold project with a completed feasibility study that has received all environmental and other major permits necessary for development. It has been designed as an 18,750 tonne-per-day owner-operated open pit mine with a pit life of 13 years, based on existing reserves.

Power will be generated on site, through an eight megawatt power plant, operated by a local contractor. More than 1,000 people are currently working on construction at the mine site.

For the first year of commercial production, Lindero’s mine plan has been optimized so that the operation will benefit from mining the higher grade mineralization out-cropping that was identified through infill drilling completed in 2018.

The feasibility study is based on a measured and indicated resource of 18.9 million tonnes, grading 0.50 g/t gold, 0.11% copper or 302,000 ounces of contained gold. On top of that is an inferred resource of 8.6 million tonnes, grading 0.38 g/t gold and 0.10% copper, or 106,000 ounces of contained gold. Proven and probable reserves stand at 1.7 million ounces gold.

Lindero remains on track with placement of mineral reserves on the leach pad scheduled for the fourth quarter of 2019 and the first doré bar planned for the first quarter of 2020.

As a result, Fortuna’s consolidated precious metals annual production is forecast in 2020 at between 7.5 million and 8.3 million ounces of silver and between 189,000 to 209,000 ounces of gold. That amounts to between 293,000 to 324,000 ounces of gold equivalent, the company said.

The overall project is 70% complete, and has provided employment for a work force of 2,350 people so far. The operational permits for the explosives magazine and the explosive delivery trucks were received in August, 2019.

All mine equipment is on site and is fully operational.

On Friday, Fortuna shares eased 0.21% or $0.01 to $4.58. The shares are trading in a 52-week range of $3.22 and $6.12.

Triumph drills 400.48-metres of 1.21 g/t AuEq at Freegold Mountain

By Peter Kennedy

Triumph Gold Corp. [TIG-TSXV] has announced impressive drilling results from its 100%-owned Freegold Mountain property in the Yukon Territory, where the company has encountered buried porphyry gold-copper mineralization.

Assays release on September 12, 2019, are from the first two of seven holes that the company is planning to drill on the road accessible property, which covers 200 km2, and is located 70 kilometres northwest of Carmacks.

The two drill holes (1,664.21 metres) were completed at the WAu Breccia, a south-dipping tabular body of polymetallic mineralization which has been intersected by eight historic drill holes that tested to a maximum depth of 200 metres below surface.

Drill hole RVD19-01 was oriented northwards to test for a depth extension of the WAu Breccia, 250 metres beneath the previous intersection. RVD19-02, was drilled southward along the same section and was designed to drill down the dip-plane of the WAu mineralized zone. RVD19-02 was also designed to efficiently test continuity of the WAu mineralization to depth, while also using the breccia body as a vector towards an underlying porphyry system.

“At the WAu Breccia, the first of three areas being drill tested in 2019 for buried porphyry mineralization, we have discovered a porphyry copper-gold system,” said Dr. Tony Barries, Vice-president, exploration with Triumph Gold. “The discovery intersection is long, high grade, gold-rich and closer to surface than we had expected,” he said.

“We also more than doubled the known depth of the near surface, gold-rich, epithermal style WAu Breccia,” Barries said. Based on positive results from those two drill holes, an additional hole has been added to the program to further test for high grade porphyry mineralization beneath the WAu Breccia.

Highlights from the latest round of drilling include drill hole RVD19-02. It returned a 400.48-metre intersection of epithermal-style mineralization (77.52 to 478 metres) at the WAu Breccia. It assayed 1.21 g/t of gold equivalent (AuEq), containing 0.73 g/t gold and 0.23% copper, more than doubling the previously known depth of the mineralization.

RVD19-02 also returned a 102.50-metre intersection of gold-rich porphyry related mineralization that assayed 1.26 g/t AuEq equivalent, containing 0.73 g/t gold and 0.18% copper (from 560.50 to 663.00 metres).

Combined the two mineralized zones form an impressively long and rich intersection, 601.80 metres averaging 1.1 g/t AuEq equivalent, with 0.67 g/t of actual gold.

As well, RVD19-01 intersected a 52-metre thick down dip extension of the WAu Breccia. The best interval returned 0.40 g/t gold, 7.1 g/t silver, 0.20% copper and 0.025% molybdenum over 15.64 metres.

Triumph shares rallied on the news, rising 7.36% or $0.035 to 51 cents Thursday September 13 on volume of 367,050. The 52-week range is 30.5 cents and 70 cents.

Triumph is a mineral explorer which is focused on its Freegold Mountain Project in the Dawson Range gold-copper belt. The area also hosts Western Copper and Gold’s [WRN-TSX] Casino Project as well as Newmont Goldcorp Corp.’s, [NGT-TSX, NEM-NYSE] Coffee deposit. Newmont Goldcorp recently gained exposure to the road-accessible Freegold Project by taking a 19.9% stake in Triumph for $6.3 million.

Since Triumph Gold acquired the property in 2006, more than 20 mineralized zones have been identified, and NI 43-101-compliant mineralized resources have been delineated in the Revenue, Nucleus, and the Tinta Hill deposits

Within the last three years, exploration has been focused on the six-kilometre-long intense multi-element soil and geological anomaly that encompasses the Revenue and Nucleus deposit areas.

The Nucleus and Revenue deposits are known to be components of a larger porphyry-related mineralizing system.

The 2019 exploration program at Freegold Mountain was designed to test for a buried copper-gold porphyry system beneath the six-kilometre-long Revenue-Nucleus soil and geophysical anomaly.

With the addition of the third drill hole to the WAu Breccia area, the 2019 exploration program now includes seven drill holes totalling 6,000 metres, the company said Thursday. The current results indicate success at the WAu Breccia, the first area tested. Triumph said it now looks forward to receiving drill results from the other two target areas.

Meanwhile, Triumph has said the terms copper and gold equivalent are used for illustrative purposes to express the combined value of copper, gold, silver and molybdenum as a percentage of either copper or gold. No allowances have been made for recovery losses that would occur in a mining scenario.

Chaarat completes Çiftay JV

Aim-quoted Chaarat has concluded the previously announced joint venture (JV) agreement with Turkish contractor Çiftay İnsaat Tahhüt ve Ticaretthe Turkish, in terms of which the parties will collaborate on the Tulkubash and Kyzyltash projects in the Kyrgyzstan. Based on an agreed valuation of $252-million for Tulkubash and Kyzyltash, Çiftay will progressively invest up to $31.5-million in cash for a corresponding 12.5% equity stake in these two project assets.

Newmont Goldcorp says Red Lake is for sale

The world’s largest gold miner, Newmont Goldcorp, is continuing to streamline its portfolio and the company confirmed on Friday that its Red Lake mine, Canada, is up for sale. Confirmation of the potential sale of Red Lake, which is a former Goldcorp mine, comes only a week after an announcement of its divestment of a 45.5% stake in the Nimba iron-ore project, in Guinea, to a company controlled by mining investor Robert Friedland.

Majestic achieves full production at Songjiagou underground

TSX-V-listed Majestic Gold has achieved full production at its Songjiagou underground gold mine, in China’s Shandong province, after successfully meeting the requirements of a comprehensive government certification programme. Commenting on the achievement, Majestic president Steve Kenwood said in a statement on Thursday that the new mine, which he described as a modern, high-grade operation, would allow for a significant increase in low cost gold production, in addition to providing an exploration platform for defining new gold resources at depth and along strike.

PNG demands Wafi-Golpu gold stays in-country, urges Newcrest, Harmony talks

Papua New Guinea wants to keep 40% of gold produced from the proposed Wafi-Golpu project, the country's commerce minister said, creating a potential hurdle to an agreement with co-owners Newcrest Mining and Harmony Gold. The miners had been hoping to secure a mining lease over the major gold and copper deposit earlier this year, before a change in PNG's leadership and a shift in minerals policy led to delays.