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Resource Clips

All posts by Kevin Michael Grace - Resource Clips

First Majestic appoints Guillermo Lozano VP Exploration

August 30th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningFirst Majestic Silver Corp TSX:FR announced the appointment of Guillermo Lozano as Vice President of Exploration. Lozano holds a BSc degree in geology from the National Polytechnic Institute in Mexico City, an MSc in geology from the Missouri University at Columbia and an MBA in Finance from the University of Texas at El Paso. He has 30 years experience in Mexico and worked previously for Canplats, Kennecott, the Peñoles group and, most recently, spent 10 years with Silver Standard as Country Manager for Mexico and Exploration Director.

Previously this month, First Majestic announced 2Q net earnings of $15.3 million, $0.14 per share, on revenue of $54.8 million. Earnings were down 50% from 2Q 2011, and revenue was down 19% from that time period, developments attributed to the lower cost of silver. Silver-equivalent production was up 14% to 2.1 million ounces, and silver production was up 6% to 1.92 million ounces. Cost of production was $8.83 per ounce, up 6% from a year earlier.

I think the fundamentals for silver are much better than the fundamentals for gold… There is a major problem with the supply of silver, and I believe we’re going to see much higher silver prices, north of $100 an ounce—Keith Neumeyer

President/CEO Keith Neumeyer tells Resource Clips, “Guillermo Lozano is a very well-known and respected geologist in Mexico. He spent the last 10 years at Silver Standard as their man in Mexico. There were several companies trying to get him, and we were fortunate in having him join us. We hadn’t had a VP Exploration before and actually created the position for him. It allowed us to reorganize the entire geological department, which has become quite large. We’ve got over 50 geologists now spread around our mines and over 100 support staff. We needed to divide our staff into two separate groups, operations and regional explorations, and Guillermo will be in charge of both.”

With regard to the 2Q results, Neumeyer comments, “We did lose some production at the San Martin Silver Mine, which is our smallest operation. We lost about 100,000 ounces as a result of the Bolaños River drying up, which is quite an unusual event. We had to build a pipeline from about 13 kilometers away to supply water to the community, and obviously the community was very happy that we were able to do that. The pipeline remains in place today, even though it’s not currently being used, because there is plenty of water now in the region.

“Overall, production was up, and it would have been nice to have that 100,000 ounces we lost, but it wouldn’t have been enough to take care of the reduction in silver prices. If you at our press release, you’ll see that the silver price is down 27%, but the revenue is down only by 17%. So we were able to make up a significant amount of the revenue due to the increase in production. So you’ll continually see that increase in production and metal prices have turned around.”

Neumeyer says of that turnaround, “I put together First Majestic in 2002 for the sole reason that I was a big believer in silver. I think the fundamentals for silver are much better than the fundamentals for gold. As we become more reliant on technology, we become more reliant on silver. It’s one of those very important metals in our lives, and most people don’t realize this. Without it, most everything we do on a daily basis simply wouldn’t happen. So we’re depleting stocks of silver, and it’s becoming quite dramatic. The BBC came out with a report just last week saying there were only 17 years of silver left on the planet. There is a major problem with the supply of silver, and I believe we’re going to see much higher silver prices, north of $100 an ounce.

“There are so many derivatives in the market that in a single day on the Comex we have an entire year of physical metal traded in the form of paper, which tells you that the amount of leverage in the system is out of control. I’m a big believer in supply and demand, and I believe it will prevail in the silver market and force the paper market to unleverage.”

Neumeyer is bullish on Mexico as well, explaining, “It’s a very easy place to do business. Geographically, it’s easy to get to, and geologically, it’s a very exciting environment. The tip of the iceberg has been discovered in Mexico, and I think you’re going to see a lot more mines open there over the next 10 to 20 years. There is a lot more metal to be found in Mexico. Politically, it’s a very easy environment to deal in. You’ve got a good system in place, and we’re protected under NAFTA. It’s good regulatory environment, and permitting there is not too difficult. You’ve got local communities who are very supportive of mining, unlike many regions around the world. You have workforces in these towns that are used to having a mine in their backyard, and they’ve relied on these mines for their livelihood for generation after generation. So we come in as Canadian mining companies with investment and new tools for modernization, and these communities grow. Then you really see the wealth of Mexico occurring as a result of mining, and it’s a very exciting thing to witness.”

First Majestic shares have risen by about half since spring. Neumeyer comments, “Silver prices have helped. We saw silver reach below the $26 range a couple of times this year, and there has been a lot of negative feeling in the equity markets. I think stocks generally on a global basis have been sold off regardless of how good fundamentally they are. You saw some good-quality companies trading at some very low valuations, and I think there was some panic out there. People have excuses to sell, so they sell. So that created an opportunity for others who believed that it was a good time to step in. Our stock is around $19 today but is still undervalued based on our growth. Our stock was $26 about 18 months ago, and that was when the company was much smaller. I think once the market believes the silver price is going to be stable or at least on its way back to higher prices, combined with our growth production over the next couple of years, the future is pretty bright for people who own First Majestic stock.”

Neumeyer concludes, “By 2014, our production will be in the 14 million to 15 million ounce area. I am very proud of our cost structure. We’re one of the lowest-cost producers in this space and one of the fastest-growing silver companies in the world.”

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Keith Neumeyer

by Kevin Michael Grace

Vista reports Australia Gold Assays up to 1.03 g/t over 206m, 2.46 g/t over 33.3m

August 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningVista Gold Corp TSX:VGZ announced results from its Mt Todd gold project in Northern Territory, Australia. Highlights include

0.54 grams per tonne gold over 28.1 metres
0.99 g/t gold over 24.9 metres
0.67 g/t gold over 34 metres
1.15 g/t gold over 18 metres
2.46 g/t gold over 33.3 metres
(including 4.29 g/t gold over 14.1 metres)
1.88 g/t gold over 10 metres
(including 4.22 g/t gold over 4 metres)
0.68 g/t gold over 44.1 metres
1.03 g/t gold over 206 metres
4.15 g/t gold over 12.8 metres
(including 9.06 gold over 4.6 metres)
0.56 g/t gold over 31 metres
0.7 g/t gold over 40 metres
0.49 g/t gold over 32.9 metres

President/CEO Fred Earnest commented, “Our resource-conversion drilling program continues to successfully intersect mineralization in the inferred mineral resource category. Of the 24 holes drilled to date, we have received assays results on 18 holes and are incorporating the results into an updated resource estimate which is expected to be completed next week. Results from the remainder of the ongoing drilling program will subsequently be incorporated into the resource estimate that will form the basis of the definitive feasibility study that we expect to complete early next year.”

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Connie Martinez
Manager, Investor Relations

by Kevin Michael Grace

Pretium reports BC Assays: 150 g/t Gold, 114 g/t Silver over 17m, 1668 g/t Gold over 0.9m

August 28th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPretium Resources Inc TSX:PVG announced assays from the Valley of the Kings and Mammoth Zones of its Brucejack Project in northwest BC. Results include

18.31 grams per tonne gold, 21.32 g/t silver over 6 metres
9.32 g/t gold, 13.43 g/t silver over 4.5 metres
18.45 g/t gold, 23.45 g/t silver over 9.5 metres
(including 58.5 g/t gold, 55.4 g/t silver over 1.5 metres)
10.86 g/t gold, 29.83 g/t silver over 6.01 metres
(including 75.6 g/t gold, 75.5 g/t silver over 0.63 metres)
23.06 g/t gold, 20.28 g/t silver over 14.16 metres
(including 201 g/t gold, 124 g/t silver over 1.5 metres)
21.44 g/t gold, 15.33 g/t silver over 9.3 metres
(including 95.3 g/t gold, 46.1 g/t silver over 1.8 metres)
127.96 g/t gold, 64.31 g/t silver over 9.27 metres
(including 902 g/t gold, 245 g/t silver over 0.87 metres)
26.48 g/t gold, 20.77 g/t silver over 10.89 metres
(including 372 g/t gold, 216 g/t silver over 0.52 metres)
12.14 g/t gold, 17.43 g/t silver over 8.15 metres
717 g/t gold, 611 g/t silver over 0.5 metres
13.63 g/t gold, 15.5 g/t silver over 5.06 metres
17.89 g/t gold, 57.3 g/t silver over 9.57 metres
90.43 g/t gold, 38.98 g/t silver over 11.84 metres
(including 1,350 g/t gold, 677 g/t silver over 0.5 metres)
19.61 g/t gold, 23.17 g/t silver over 14.13 metres
150.39 g/t gold, 113.75 g/t silver over 16.97 metres
(including 1,751 g/t gold, 1,250 g/t silver over 1.19 metres)
1,668 g/t gold, 493 g/t silver over 0.85 metres
828 g/t gold, 511 g/t silver over 0.5 metres
0.62 g/t gold, 344.75 g/t silver over 6 metres

The Valley of the Kings Zone has an April 2012 indicated resource estimate of 8.9 million tonnes grading 17.3 g/t gold and 14.5 g/t silver for 4.9 million ounces gold and 4.1 million ounces silver. The inferred category shows 12.7 million tonnes grading 25.5 g/t gold and 11.6 g/t silver for 10.4 million ounces gold and 4.7 million ounces silver. The estimate uses a cutoff of 0.5 g/t gold equivalent.

View Company Profile

Robert Quartermain

Michelle Romero
Corporate Relations Director

Read an interview with President/CEO Robert Quartermain

Read a feature story about Pretium Resources

by Kevin Michael Grace

Marathon reports Nfld Gold Assays up to 13.2 g/t over 13m, 4.64 g/t over 16m

August 27th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningMarathon Gold Corp TSX:MOZ announced assays from its the Hanging Wall and Main Zones in the central area of the Leprechaun Gold Deposit at its 100%-owned Valentine Lake Project in Newfoundland. Highlights include

2.91 grams per tonne gold over 5 metres
(including 10.83 g/t over 1 metre)
4.64 g/t over 16 metres
(including 20.16 g/t gold over 2 metres)
4.2 g/t gold over 5 metres
(including 15.78 g/t gold over 1 metre)
13.2 g/t gold over 13 metres
(including 63.08 g/t gold over 1 metre)
8.51 g/t gold over 3 metres
(including 25.52 g/t gold over 1 metre)
14.22 g/t gold over 3 metres
(including 42.46 g/t gold over 1 metre)
4.64 g/t gold over 4 metres
(including 14.4 g/t gold over 1 metre)
3.17 g/t gold over 4 metres
(including 11.69 g/t gold over 1 metre)

President/CEO Phillip Walford commented, “These recent results are very significant for Marathon, as the high-grade intercepts at depth confirm the continuity of the southwest plunging high-grade material. The continuation of high-grade Main Zone mineralization to depth is exciting, as it exemplifies that there is the potential for an underground resource. The zone of mineralization in the Hanging Wall is also very encouraging, as it further supports the potential for an open pit. We will be continuing to develop the Leprechaun Gold Deposit, and with 24,442 meters of drilling completed in 2012, we anticipate a new resource update by year end.”

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Jennie Guay
Investor Relations

Read an interview with Marathon President/CEO Phillip Walford

Read a feature story about Marathon Gold

by Kevin Michael Grace

Sandstorm announces $130M Bought-Deal Financing

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandstorm Gold Ltd TSXV:SSL announced it has increased its previously announced bought-deal financing from C$75 million to C$130 million. Lead underwriter Cormark Securities Inc along with National Bank Financial Inc, Paradigm Capital Inc, BMO Capital Markets Inc, Casimir Capital Ltd, Canaccord Genuity Corp and TD Securities Inc have agreed to buy, on a bought deal basis, 13,050,000 units at C$10 for gross proceeds of approximately C$130 million. Sandstorm has granted to the underwriters an option to buy up to an additional 15% of the number of units. If that option is wholly exercised, the aggregate gross proceeds will be approximately C$150 million. Each unit consists of one common share of Sandstorm and one-third of one common share purchase warrant, which will entitle the holder to acquire one common share of Sandstorm at a price of US$14 up to five years following completion of the offering.

Sandstorm provides upfront financing for gold-mining companies seeking capital in return for agreements giving it the right to buy percentages of life-of-mine gold produced at fixed prices. Sandstorm has completed gold purchase or royalty agreements with Luna Gold Corp TSXV:LGC, SilverCrest Mines Inc TSXV:SVL, Rambler Metals and Mining plc TSXV:RAB, Brigus Gold Corp TSX:BRD, Metanor Resources Inc TSXV:MTO, Donner Metals Ltd TSXV:DON, Magellan Minerals Ltd TSXV:MNM, Solitario Exploration & Royalty Corp TSX:SLR and Ely Gold & Minerals Inc TSXV:ELY. The net proceeds of the offering will be used for general corporate purposes including potential future purchases of precious-metal streams and working capital.

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Nolan Watson

by Kevin Michael Grace

MDN reports Tanzania Gold Assays up to 1.73 g/t over 12.4m, 9.88 g/t over 4.2m

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningMDN Inc TSX:MDN announced assays from its Nikonga Project in Tanzania. Results include

1.73 grams per tonne gold over 12.4 metres
(including 17.35 g/t over 1.1 metres)
9.88 g/t over 4.2 metres
(including 36.05 g/t over 0.5 metres)
1.39 g/t over 2.6 metres
2.6 g/t over 3 metres
3.2 g/t over 5 metres
5.6 g/t over 1 metre

VP Exploration Marc Boisvert commented, “We are very satisfied with the drilling results obtained as of today on this property, which until our involvement in 2011 had not been the object of any drilling programs. Additional exploration works could indicate that the Kezeria Main and Kezeria North zones may be part of the same corridor of deformation measuring 900 to 1000 metres in width, which makes it an important structure able to contain several gold-bearing shear zones adjacent of one another. We believe that this property offers good potential justifying the pursuit of further exploration works.”

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Serge Bureau
514.866.6500 x 221

Robert LaValliere
VP Corporate Development
514.866.6500 x 222

by Kevin Michael Grace

Premier reports Nevada Gold Assays up to 11.75 g/t over 20.4m, 7.09 g/t over 24.4m

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPremier Gold Mines Limited TSX:PG announced assays from the Helen Zone on its Cove Gold Project, located in the Eureka-Battle Mountain Trend in Nevada. Results include

4.82 grams per tonne gold over 10.97 metres
(including 8.01 g/t over 5.94 metres)
7.09 g/t over 24.38 metres
(including 10.02 g/t over 10.67 metres)
9.67 g/t over 11.89 metres
11.75 g/t over 20.42 metres
(including 49 g/t over 1.55 metres)

VP Exploration Brian Morris commented, “Drill results from the stepout drilling along the strike of the axial plane of the Cove anticline continue to support our geologic model that the Helen Zone is a bedding-controlled Carlin-style deposit which is punctuated by areas of high-grade where feeder structures intersect the axial plane of the anticline. Historic data suggest that this trend could continue for several hundred metres to the southeast underneath the Cove pit in the relatively untested favourable rocks which are host to the Helen Zone.”

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Ewan Downie

Read an interview with Premier President/CEO Ewan Downie

Read another interview with Premier President/CEO Ewan Downie

by Kevin Michael Grace

Terraco reports Idaho Gold Assays up to 1.11 g/t over 38.1m, 1.03 g/t over 39.6m

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTerraco Gold Corp TSXV:TEN announced drill results from its Almaden project in Washington County, Idaho. Highlights include

0.608 grams per tonne gold over 12.2 metres
(including 1.3 g/t over 1.5 metres)
0.998 g/t over 38.7 metres
(including 2.123 g/t over 4.6 metres)
1.034 g/t over 39.6 metres
(including 1.942 g/t over 4.6 metres)
1.114 g/t over 38.1 metres
(including 2.454 g/t over 6.1 metres)
0.754 g/t over 81.4 metres
0.61 g/t over 15.2 metres
0.517 g/t over 15.2 metres

VP Exploration Charles Sulfrian commented, “Drill results continue to meet or exceed expectations at our Almaden (Nutmeg Mountain Gold) Project. Upon receipt of the last batch of assays (expected shortly) from the spring 2012 drill program, emphasis will be shifting to metallurgical testing and initial project economic review and evaluation.”

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Todd Hilditch
604.443.3831 or tollfree 1.877.792.6688 x 2

Read an interview with Terraco President/CEO Todd Hilditch

by Kevin Michael Grace

Scorpio Mining reports Mexico Assays up to 439 g/t Silver, 1.87% Copper over 20.5m

August 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningScorpio Mining Corp TSX:SPM announced results from its 100%-owned El Cajón Deposit near Cosalá, Sinaloa, Mexico. Highlights include

0.34 grams per tonne gold, 108 g/t silver, 0.486% copper, 0.032% lead, 0.133% zinc over 4.3 metres
0.259 g/t gold, 132 g/t silver, 0.458% copper, 0.013% lead, 0.07% zinc over 4.5 metres
0.083 g/t gold, 74 g/t silver, 0.301% copper, 0.001% lead, 0.052 % zinc over 13.05 metres
0.217 g/t gold, 82 g/t silver, 0.335% copper, 0.015% lead, 0.057% zinc over 15 metres
0.338 g/t gold, 116 g/t silver, 0.541% copper, 0.007% lead, 0.107% zinc over 11.4 metres
0.11 g/t gold, 94 g/t silver, 0.388% copper, 0.015% lead, 0.061% zinc over 7.5 metres
0.186 g/t gold, 224 g/t silver, 0.799% copper, 0.017% lead, 0.049% zinc over 17.9 metres
0.251 g/t gold, 73 g/t silver, 0.133% copper, 0.13% lead, 0.145% zinc over 14.15 metres
0.173 g/t gold, 99 g/t silver, 0.515% copper, 0.009% lead, 0.158% zinc over 10.65 metres
0.572 g/t gold, 439 g/t silver, 0.515% copper, 0.009% lead, 0.158% zinc over 10.65 metres

According to a December 2009 43-101 technical report, El Cajón contains (at a 50 g/t silver-equivalent cutoff) indicated resources of 2.44 million tonnes grading 129.4 g/t silver, 0.44% copper and 0.19 g/t gold and inferred resources of 996,000 tonnes grading 97.2 g/t silver, 0.34% copper and 0.13 g/t gold.

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Victoria Vargas
VP Investor Relations and Corporate Communications

by Kevin Michael Grace

PMI reports Ghana Gold Assays up to 3.33 g/t over 5m, 1.39 g/t over 8m

August 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPMI Gold Corp TSXV:PMV announced assays from its Kubi South Prospect, 1.5 kilometres south of the Kubi Main Deposit at its Kubi Project in Ghana. Highlights include

5.23 g/t gold over 1 metre
2.42 g/t over 2 metres
(including 4.1 g/t over 1 metre)
1.39 g/t over 8 metres
(including 2.56 g/t over 2 metres)
3.33 g/t over 5 metres
5.3 g/t over 2 metres
0.68 g/t over 4 metres
1 g/t over 2 metres
1.5 g/t over 2 metres
0.67 g/t over 10 metres
2.72 g/t over 1 metre
1.01 g/t over 3 metres

Managing Director/CEO Collin Ellison commented, “Assays from the exploration drive from the first half of 2012 continue to come in, with some very encouraging numbers. The results from each of the prospects will be evaluated, with further followup drilling on high-priority targets planned for the second half of 2012.”

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Marion McGrath
Corporate Secretary

Collin Ellison
Managing Director/CEO

by Kevin Michael Grace