Nouveau Monde graphite mine wins community backing

Nouveau Monde Graphite Inc. [NOU-TSXV; NMGRF-OTCQX, NM9-FSE] has released an update on social acceptability efforts related to its Matawinie graphite mining project, which is located in Saint-Michel-des-Saints, Que., approximately 150 km north of Montreal.

Matawinie is expected to be the first of its kind to operate as an all-electric, zero-carbon mine.

The company said a recent survey conducted by Leger confirms favourable reception of the project in Upper Matawinie, with 82% of the respondents calling the project positive or very positive.

Nouveau Monde says the survey follows the one conducted in the fall of 2018 regarding the community’s opinion about the project. Noveau Monde mandated Leger to repeat the exercise using the same methodology to measure perceptions of the project over time.

It said the results have remained consistent, with an equivalent rate of support (83% in 2018 and 82% in 2019) and viewpoints that remain positive regarding economic benefits (89%), and community integration with respect to quality of life (76%) and environment (70%).

“Like any other natural resource, graphite represents a source of collective wealth, and we must take care to develop it with the agreement and in the interest of the local community and all Quebecers,” said Nouveau Monde President and CEO Eric Desaulniers.

“In addition to informal discussions with our fellow citizens and partners, the survey results show that we have been able to reconcile social, environmental and economic factors to develop a project that holds promise for the region,” he said.

Nouveau Monde is planning to establish a large-scale secondary graphite transformation facility that caters to the needs of the booming lithium-ion battery industry.

Two years ago, the company published the results of a bankable feasibility study, which it said envisions production of 100,000 tonnes per year, purity of over 97%, and project payback of 2.6 years.

The company is aiming for commercial production by 2022.

Currently, Nouveau Monde operates a demonstration plant where it expects to produce 2,000 tonnes of concentrated flake graphite, material that is being sent to potential North American and international clients for qualification of its products.

Meanwhile, Nouveau Monde has said it expects 2020 to be a busy year as it moves to obtain the required permits for the Matawinie Project, begin construction of its commercial facilities, and launch demonstration operations for its value-added graphite products.

“While we built a strong foundation four our company in 2019, 2020 will be a pivotal year for us to deploy our business strategy in a concrete and productive way,” said Desaulniers. “Thanks to the expertise of our team and the commitment of our business and community partners, we can start generating value for our shareholders, employees and milieu.”

In 2019, Nouveau achieved a number of key milestones, including:

The signing of an offtake and joint marketing agreement with global commodities trader Traxys Group for 25,000 tonnes of flake graphite concentrate.

It received a $4.2 million grant from the Sustainable Development Technology Canada program to fund construction of a pilot plant for purified spherical graphite.

The company also raised $22 million in combined capital, including a private placement with leading global mining investor Pallinghurst Group for the operation of the existing flake graphite plant, the construction of a demonstration value added products plant, and working capital.

Another 2019 highlight was the submission of the environmental and social impact study for the Matawinie Project and continuation of the environmental assessment process with the Quebec government.

On Tuesday, Nouveau Monde shares advanced 8.3% or $0.02 to 26 cents. The shares are currently trading in a 52-week range of 17 cents and 28 cents.

Gold Mining Investors Returning To High Grade in Quebec

Gold has been one of the top performers over the last year and finally inflows are returning to the gold mining stocks and emerging near term producers in safe and friendly jurisdictions.

 

The rise of terrorist attacks in West Africa and the illegal blockades of established mines in South America are motivating investors to look for mines in the more friendly and stable jurisdictions.

Recently Burkina Faso is in the news as a volatile spot for junior miners as the miners complained about their safety for months but were ignored.  I started warning readers on social media in early April as a geologist was killed, then I shared the US Embassy alert on Twitter in August and then there was the horrible November attack on Semafo where 39 miners were murdered.

Most of the investment community ignored my twitter posts.

Burkina Faso has been battling Islamic terrorists since 2016, thousands are dead and they have driven nearly 500K from their homes, mining operations have been attacked.

I was once bullish but started moving away in 2019 focused on North America.  One area that has been our favorite is Quebec especially the established Cadillac Break Trend where more than 75 million ounces of gold have been produced over the past 100 years.

The gold in this area has simple geology that goes from surface underground and straightforward metallurgy with over 10 mills nearby looking for ore to process.

There is an established mining labor camp and high powered electricity that runs right through the major intersection of the mills and mines.

Some of these juniors have recently spent a fortune going through permitting and resource calculations but are still priced near bear market lows unlike gold which is at new all time highs in Canadian dollar terms.

This little junior recently has spent tens of millions developing a resource but recently hit a lot of high grade.

The little junior with just a $12 million market cap believes they have just hit something big and could expand the grade and size to be possibly up to 2 million ounces and up to 10 grams per ton is their near term goal.

Because this little junior has gone through a few cycles they are more advanced being fully permitted which took the company two years and six million dollars worth of studies.

There are eight mills in the area with three of them shut down as they are desperate for new growing discoveries.

This company has not only production potential and exploration potential but another unique aspect.  Because of the excellent technical team they have payed out dividends to  shareholders.

The little junior spun out an excellent silver play in Canada which has been a top performer.

This company could be a takeout target as they are permitted for production and can ship ore and make money yet are only valued at a $12 mil market cap.

They can also start drilling more aggressively with these higher gold prices as they have not yet really drilled this new high grade structure that they just found where they hit 33 meters of 11+ g/t material.

These Quebec miners are good at what they do and they just announced the start of a bulk sample and have lots more news pending…

The chart looks excellent with a breakout gap that has recently just been filled and a golden crossover of the 50 day and 200 day moving average.  The downtrend from $1 appears to have a good chance to break to the upside.

Stock is currently 15 cents but with gold breaking out into new highs and if it can get back into production and more high grade is found there is no reason it can't at least test those highs again???

Listen for yourself by clicking on the following Youtube link to an interview with the CEO who is world class metallurgist from McGill University.

PS...I just found another extremely rich gold mine on Cadillac Break that our friends and brilliant mining investors Rob McEwen and Michael Gentile are buying.  The cup and handle chart looks amazing and insiders have been buying.

They have $8.5 mil in cash and 20k meter drilling campaign underway with news starting to return and pending.  Management is confident that model is on its way to find the high grade bonanza area...Remember anything over 5 g/t is great in this area...this little junior is hitting over 50 g/t but no one knows about it yet.  This little junior is currently valued at pennies to the dollar when comparing to others in sector.  Listen to my recent interview by clicking here...

Disclosure:

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

Company Updates From Management – Mon 3 Feb, 2020

Maple Gold Mines – Outlining the exploration plans focused on past high grade results

Maple Gold Mines (TSX-V: MGM & OTCQB: MGMLF) had a busy year last year, updating the resource at its Douay Gold Project in Quebec, drilling new targets around the resource, and raising just short of $1.5 in December.

Joness Lang, VP Corporate Development at Maple Gold joins me to outline what is on tap in terms of exploration for this year. The Company will be following up on some higher grade results from last year as well as generating new targets to explore.

Click here to visit the Maple website and read the recent news release on the exploration underway.

Wallbridge up 17% on latest Fenelon results

Wallbridge Mining Co. Ltd. [WM-TSX; WC7-FWB] shares rallied Wednesday January 28 in active trading after the company tabled more impressive drill results from its 100%-owned Fenelon Gold property in Quebec.

The company said drilling has intersected 43.47 g/t gold (23.57 g/t gold cut) over 19 metres in the Lower Tabasco Zone at the 100%-owned Fenelon property. The interval is located approximately 120 metres  below a drill intersection of 22.73 g/t gold (18.87 g/t gold cut) over 48.01 metres in hole FA-19-086, which was announced in a press release on December 3, 2019. It highlights the excellent potential for similar exceptional, high-grade intersections within the Lower Tabasco Zone, the company said.

Wallbridge shares advanced on the new, rising 17.6% or 13 cents to 87 cents on heavy volume of 4.46 million shares traded, making Wallbridge the most actively traded stock on the TSX Venture Exchange on Wednesday. The shares are currently trading in a 52-week range of 18 cents and 99 cents.

Wallbridge has said it is establishing a pipeline of projects that will support sustainable production and revenue as well as organic growth through exploration and scalability.

Its portfolio includes the Fenelon Gold property, which covers 1,052 hectares and is located in northwestern Quebec, about 75 km northwest of Matagami. The project is proximal to the Sunday Lake Deformation Zone, which hosts the Detour Gold Mine in Ontario and Balmoral Resources Ltd.’s [BAR-TSX; BALMF-OTC] gold deposits at Martiniere.

Since acquiring the property in late 2016, Wallbridge has completed an updated resource estimate and a positive pre-feasibility study (PFS) on the existing gold resource, which consists of 38,000 ounces in the Measured and Indicated category, plus a further 1,900 ounces of Inferred material.

Subsequent drilling, along with geological and structural modelling combined with a reinterpretation of the deposit, have led to an expanded exploration target of an additional 70,000-120,000 ounces of gold.

Two additional holes from the ongoing 2020 drill program also intersected intervals of visually strong mineralization with abundant visible gold in the Lower Tabasco Zone.

Six drill rigs are currently active on the property. The company said five are focusing on exploration drilling from surface, doing large spaced step-outs to defined the footprint of the Fenelon gold system, and one underground drill rig is doing more closely-spaced definition drilling on the Main Gabbro zones near the existing mine workings.

At total of 75,000 metres were drilled in 2019 and the program continues this year with the same drilling rate of approximately 9,000 metres per month. The projected total this year is 100,000 to 120,000 metres. So far 6,500 metres have been drilled in 2020.

“Today’s announcement continues to confirm the presence of significant high-grade gold mineralization in the Lower Tabasco Zone which remains open at depth and on strike,” said Wallbridge President and CEO Marz Kord.

“A known strike length of 300-400 metres, uncapped weighted average gold grades in excess of 10 g/t over average core lengths of about 15 metres, the approximate 500 metre down-dip extent identified thus far and indications from drill holes like FA-20-110 and FA-20-115, highlight the potential for a significant underground resources,” he said.

8 Gold Miners Showing Relative Strength Despite Coronavirus Scare

As the #coronavirus hits global #stockmarkets investors look to #gold and the highest quality #goldminers showing great relative strength on a cloudy day!

Files crossing my desk showing flight of quality capital into some gold miners we follow including $FNV $LUG $TGZ $GCM $BTO $YRI $KNT $GTT...all these companies are larger cap situations and not many juniors are participating with the gain in safe haven gold and US treasury bonds.  

Investors are obviously looking for liquidity is cash and gold today due to the outbreak of the Corona Virus, bombings at the US Embassy in Iraq and the major push of the Democratic party to impeach Trump before next election.  

I did notice recent insider buying some juniors like $BRC $RDS and insider selling in $TSG.  Insider buying could be a good signal of positive things to come!

The rally in gold is just getting started after a four month bull market consolidation.  Some of the traders I speak to think we could be near $1800 USD by PDAC.  Notice the recent decline in equities from the coronavirus scare.  Any little Black Swan could send equities from these lofty levels and reverse the algorithms to hit sell button.  That is what happened once during a flash crash.  The downtrend of gold stocks versus the Dow stocks could be ending.

 


Look at some recent financings by smart investors like Rob McEwen, Ross Beatty and Eric Sprott.  These are not young men but they are taking big risks according to the mainstream who are just encouraging equities and fixed income.

1)These are the gentleman with deep pockets that can resurrect companies from the dust.  Notice Rob McEwen just made major strategic investment in one that I have followed all year.  Listen to me speak to this great Quebec team where insiders are buying.  Its the highest grade undeveloped gold project along the #cadillacbreak in #quebec.  I think they are onto an area of the mine that could produce blockbuster results in 2020.  They are in the midst of the biggest drilling campaign ever on the project.

2)Another area which I've highlighted for months palladium has attracted the interest of billionaire Eric Sprott.  He recently invested in a junior I featured for months in Ontario which recently came out with a PEA with a Value of close to $900 million at $1,275 an ounce Palladium.  Palladium is trading over $2k recently and could go past $3k.

3)Coeur Mining has now come into 3 juniors after I have featured them to my readers.  Coeur is a NYSE producer and has one of the smartest mine development teams especially when it comes to gold and silver.  They recently came into this micro cap juniors project which could be another mine right down the road from their Silvertip Project which Coeur bought 2 years ago for around $200 million.  Its trading around 5 cents now!

Assume Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

 

 

X-Terra steps up New Brunswick gold drilling

X-Terra Resources Inc. [XTT-TSXV; XTR-FSE] shares rallied on Wednesday January 22 after the company said it is planning to do additional drilling on high priority targets on its Grog and Northwest properties, located in Restigouche County, New Brunswick.

The targets were defined as a result of the fieldwork and data processing completed during exploration in 2019.

X-Terra shares advanced on the news, rising 19% or $0.02 to 12.5 cents on active volume of almost 1.5 million. The shares are trading in a 52-week range of $0.07 and 18 cents.

X-Terra is a Quebec-focused gold exploration company. Its flagship Veronneau Project lies on the Colomb-Chaboullie greenstone belt about 200 km north of Matagami.

X-Terra currently has the option to acquire an interest in 34 mining claims that included the Grog, Rim, Dome and Bonanza mining properties, which are located approximately 30 km southwest of the town of Campbellton. It can acquire a 70% stake in the properties over four years.

Under an agreement, X-Terra pledged to issue 7.0 million shares to the optionor and spend $3.1 million on exploration. Three of the mining claims are known as the Grog property, which is subject to a 1% net smelter return royalty payable to the former owner. Dome, Bonanza and Rim are collectively known as the Northwest property.

X-Terra said it completed its due diligence over the properties in October, 2018, which it said confirmed the potential of a large disseminated gold system at Grog Brook. It said the best gold values were obtained over the Northwest property and include 1,205.06 g/t gold at the Rim section of the Northwest property, 149.97 g/t gold at Bonanza and 47.88 g/t at the Dome section.

X-Terra recently said geochemical surveys, a high-resolution magnetic survey and induced polarization were completed last year across the Grog and Northwest properties, in addition to the trenching and structural mapping that produced a first drilling plan.

The company said Grog gold mineralization targets correspond to an area of about six km along the Northeast McKenzie Fault Zone.

The Northwest veins system is located about 25 km further south in a distinct geological environment composed of wacke sediments metamorphosed to the greenschist metamorphism facies.

In this context, low sulfides, free gold-bearing quartz veins are hosted in strongly-dipping shear zones marked locally by drag folding.

The objective of the first drill holes was to confirm the position of gold-bearing structures, evaluate the geometrical parameters such as dip and thickness, and recover information that will validate geological controls on gold mineralization.

X-Terra has previously said that six distinct high-priority targets were modelled to be tested first with one or two shallow drill holes. The company was planning to drill between one and three shallow holes per target.

However, based on the success and observations in the field, the company said it has decided to add additional holes to certain targets in order to gain a better understanding of the underlying geological system and mineralized corridors.

QMX up 18% on Eldorado placement news

QMX Gold Corp. [QMX-TSXV; QMXGF-OTCQX] shares rallied in active trading Thursday January 16 after the company said it has raised over $4 million  from a private placement offering with Eldorado Gold Corp. [ELD-TSX; EGO-NYSE].

In connection with the offering, QMX issued 68.1 million common shares at $0.06 per share. QMX said it intends to use the net proceeds from the offering to fund its exploration activities on its Val d’Or mining camp property in Quebec. All securities issued under the offering are subject to a statutory hold period that ends four months and one day after the date of closing.

QMX advanced on the news, rising 18.7% or $0.095 on volume of 1.15 million.  The shares are trading in a 52-week range of $0.04 and 11 cents.

Eldorado now owns 68.1 million common shares of QMX, which has the backing of a shareholder group that also includes Osisko Gold Royalties Ltd. [OR-TSX, NYSE] and Probe Metals Inc. [PRB-TSXV; PROBF-OTCQB]. The company is applying a systematic and methodical approach to targeting, drilling, and evaluating an extensive land package across 200 km2.

In addition to the land package, QMX owns the Aurbel gold mill and tailings facility, which is located 15 km east of Val d’Or. In October, 2018, the company said it had entered into a custom milling agreement with Gowest Gold Ltd. [GWA-TSXV; GWSAF-OTC; 1GW-FSE]. Under the agreement, QMX said the Aubel mill would be the focus of an initial pilot program involving the processing of up to 120,000 tonnes of ore from Gowest’s Bradshaw deposit for one year. QMX said Gowest pledged to fund the restart of the crushing, grinding and flotation circuits, which were winterized in mid-2016 following the termination of mining activities at the Lac Herbin Mine.

In July, 2019, QMX announced a NI 43-101-compliant resource estimate for its Bonneford South property, which is located on the eastern portion of QMX’s land package, and about 25 km east of Val d’Or and less than 25 km from the Aurbel mill. According to the estimate, the property hosts an Indicated Resource of 4.75 million tonnes at 1.69 g/t gold or 258,700 ounces. On top of that is Inferred Resources of 2.4 million tonnes at 1.87 g/t gold or 145,100 ounces.

Back in December, QMX announced the first results from a planned 6,000-metre fall drilling campaign on the Bonneford deposit. Highlights included 44.95 g/t gold over 5.6 metres and 10.7 g/t gold over 11.2 metres in an area called the Bonneford intrusive.

In connection with the $4 million offering, QMX has stuck an agreement which grants certain rights to Eldorado as long as it maintains a certain percentage ownership of shares in QMX. They include the right to appoint a member of QMX’s technical committee.

Under the agreement, if Eldorado owns more than 15% of QMX, it has the right to be represented on the QMX board of directors. If Eldorado owns more than 10% QMX, it has the right to name an observer to the QMX board. Eldorado will also have the right to participate in future equity offerings.

Balmoral raises $4.5 million for Quebec drilling

Balmoral Resources Ltd. [BAR-TSX, BALMF-OTC] said Monday it has raised $4.5 million from a non-brokered private placement of 8.93 million Quebec flow-through common shares at 51 cents per share.

Net proceeds will be used for exploration at the company’s Quebec projects, where Balmoral is focused on the high-grade Martiniere gold system and the large H3 (Grasset) nickel-copper-PGE discovery. Both are located on the Sunday Lake-Detour Trend in central Quebec.

Balmoral shares advanced on the news, rising 1% or $0.005 to 47 cents. The shares are currently trading in a 52-week range of $0.095 and 49 cents.

The 100%-owned Martiniere property is located centrally within the Detour Gold Trend Project, approximately 45 kilometres east of, and along geological trend from Detour Gold Corp.’s [TSX: DGC] Detour Lake mine and a similar distance from Hecla Mining’s [HL-NYSE] Casa Berardi gold mine.

In March of 2018, Balmoral published an initial resource estimate for the Martiniere Gold System on the property, which is thought to contain 591,000 ounces in the indicated resource category and 54,000 ounces in the inferred category.

The Martiniere Gold System features two prominent deposits, the Bug and Martiniere West gold deposits as well as a number of other structurally-controlled gold occurrences, including a series of discoveries in the Lac du Doigt area 2.0 kilometres northeast of the main deposits.

The Martiniere property also hosts indications of VMS (volcanogenic massive sulphide) style mineralization which have locally been shown to host gold.

Balmoral also holds a 100% interest in the Grasset Property, which covers the southern portion of the Grasset Ultramafic Complex (GUC), which extends across the company’s adjacent Fenelon and Jeremie properties for a distance of at least 10 kilometres.

The GUC hosts numerous magnetic nickel-copper-cobalt-PGE discoveries made since 2012. The most significant of these to date is the Grasset deposit, a Type 2 komaltite-hosted nickel sulphide deposit.

Grasset is one of the largest nickel sulphide deposits in Canada’s Abitibi region, and the only North American nickel deposit with at least 50,000 contained tonnes of nickel and an average nickel grade of over 1.5% not controlled by a major mining company.

The project is estimated to contain an indicated resource of 3.5 million tonnes, grading 1.56% nickel, 0.17% copper, 0.03% cobalt, 0.34 g/t platinum and 0.84 g/t palladium. The deposit remains open to depth and along strike for further expansion

In addition to the magmatic nickel potential of the GUC, Balmoral has identified a number of zones of gold mineralization on the Grasset property both within the regional-scale Sunday Lake deformation zone, which transects the property, and within secondary structures marginal to the GUC.

The company also says it recognizes the potential for copper-zinc-gold-silver VMS deposits on the property.

On December 16, 2019, Balmoral said it has commenced its largest ground geophysical survey in over four years, targeting the Area 51 gold system on its 100%-owned Fenelon Property.

To date, well over 500 drill holes have tested the Fenelon-Area 51 gold system on the adjacent Fenelon Mine property. Only 16 drill holes have tested the three target areas on Balmoral’s much larger Fenelon property, with 14 of the 16 drill holes having returned gold mineralization.

“We have only just begun to scratch the surface on the potential of the Area 51 gold system at Fenelon,” said Balmoral President and CEO Darin Wagner. “With geophysical surveying underway, data arriving daily, funds in place, and drilling set to commence in the next few weeks, we are looking to continue to build on the positive momentum along the Detour Gold Trend,” he said.