Drill Results Show Extending Mineralization with ‘Relatively High’ Grades

Source: Streetwise Reports   09/13/2018

An Echelon Wealth Partners report reviewed the initial assays from this gold explorer’s current drill program.

In a Sept. 5 research note, analyst Gabriel Gonzalez with Echelon Wealth Partners reported that results from the first three drill holes at Revival Gold Inc.’s (RVG:TSX.V) Beartrack South Pit “show a continuation of mineralization at depth over good widths and grades that compare favorably with resource grades.”

These findings are the first from the company’s 8,000 meter (8,000m) drill program to determine if the Beartrack resource can be expanded at depth and along strike. They are:

  1. Hole BT18-207D: 1.38 grams per ton (g/t) gold (Au) over 18.3m (10m true width) from 392.9–411.2m
  2. Hole BT18-208D: 1.38 g/t Au over 105.2m (62m) from 383.7–488.9m
  3. Hole BT18-209D: 1.89 g/t Au over 69.5m (36m) from 527.9–597.4m, including 2.48 g/t Au over 24.7m (15m) from 556–580.7m.

As for continuity, the three holes hit mineralization that covers a strike length of about 300m and extends below the resource estimate pit shell by 50–130m. With respect to grade, it is “relatively high” versus those of the resource, Gonzalez noted, which are 1.13 g/t for the Indicated and 1.41 g/t for the Inferred.

Gonzalez expressed optimism about Revival growing the resource even further. He wrote, “We believe that there is still potentially low hanging fruit for resource extensions, particularly at the North Pit along strike and toward the south along the South Pit to Joss where drilling is currently underway.”

Along with drilling at Beartrack, the company intends to conduct 2,000m of core drilling at its adjacent Arnett Creek property once it receives the necessary permits, likely this year. “Revival is ultimately targeting a 3 million ounce, Beartrack-Arnett Creek resource by 2019 before potentially beginning a preliminary economic assessment,” Gonzalez explained.

Looking forward, three catalysts are expected for the company this year: the release of further drill results and metallurgical test results from Beartrack and the launch of exploration drilling at Arnett Creek.

Echelon has a Speculative Buy and a CA$1.90 per share target price on Revival, whose stock is currently trading at around CA$0.81 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. 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.
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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.
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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 Revival Gold, a company mentioned in this article.

Disclosures from Echelon Wealth Partners, Revival Gold Inc., September 5, 2018

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Garbriel Gonzalez, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Issuer.

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No

Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes [12/6/18-14/6/18: Beartrack-Arnett Creek (Idaho) Deposit, Core Shack, Plant. Transport from Denver, and local incidentals paid by issuer.]

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

( Companies Mentioned: RVG:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/13/drill-results-show-extending-mineralization-with-relatively-high-grades.html

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Gold Explorer Features Projects at Opposite Sides of the Globe

Source: Maurice Jackson for Streetwise Reports   09/12/2018

Christopher McFadden, CEO of NxGold, discusses with Maurice Jackson of Proven and Probable his company’s two far-flung exploration projects.

Maurice Jackson: Joining us today is Christopher McFadden, the president, CEO, and director of NxGold where the focus is on high-grade gold in world-class districts.

Mr. McFadden, for someone new to the story, who is NxGold Ltd. (NXN:TSX.V) and what is the thesis you’re attempting to prove?

Christopher McFadden: NxGold is a relatively new junior gold explorer listed on the TSX. We are looking to make significant discoveries in good mining jurisdictions with large volumes of high-grade gold that we could eventually convert into mining operations to improve, and increase shareholder value.

Maurice Jackson: Let’s discuss NxGold’s project portfolio, beginning in Western Australia with Mt. Roe. Where in Western Australia is Mt. Roe located?

C. McFadden: Our projects in Western Australia are in a region called the Pilbara. Western Australia is obviously a very large state in Australia. The Pilbara is northern Western Australia, not quite all the way to the top. It’s about 1,500 kilometers north of Perth where not far from the coast there’s a fairly large rural town, called Karratha on the coast, and we’re 30 kilometers to the south of Karratha.

Maurice Jackson: Now, how many hectares is Mt. Roe, and what type of lithology is prevalent there?

C. McFadden: It’s a relatively small project area. We have two blocks; the total land package is 1,200 hectares. In terms of the lithology, there’s lots of different basalt flows, and in some cases some felsic flows that are being interpreted to be eroded and then covered with various sequences of the Roe style sediments and basalt flows.

What I say to people is this part of the world’s crust is some of the oldest rocks that are known on the planet. Some of these rocks I believe are two to three billion years old. That it’s perhaps a bit like a deck of cards that have been shuffled and moved, and changed over time and over geological history. So, it’s quite a complex geological setting on our project area.

Maurice Jackson: Maybe it is too early to determine, but would you define Mt. Roe as a placer deposit, and if yes, what does that mean for shareholders?

C. McFadden: I think it probably is too early to say. I think it’s fair to say the project area has potential for the paleo-placers style of mineralization, but it is too early to determine if it’s the dominant style on the property. An interesting point that will be of interest to shareholders is that our geologists have recently been focused on an older interpreted epithermal type vein mineralization on the property as well, that may have been the source of the recently announced stream sediments anomalies.

I think it was the 8th of August we put out a release showing some of the findings of some stream sediment work that we’ve done. We’ll probably talk about the nuggets later on in our discussion, but there we have found what we call hackly or rough textured gold nuggets on the property, which may have come from epithermal veins. So that, I think, is of great interest, and a strong potential for us on this project in that we possibly have a number of different types of nuggets, and therefore types of their potential sources of those nuggets.

Maurice Jackson: Speaking of those nuggets, do they appear to be generously sprinkled throughout Mt. Roe?

C. McFadden: What’s very interesting is that we’ve been able to find nuggets in a number of places. We’ve been collecting them in the northeast of the project area, and also down the northwest. Down the western side of a ridge, our project has a ridge line that passes down the length of the project area, and that ridge is probably two kilometers or a bit longer. And, we’ve been finding nuggets quite consistently along that ridge line, and in some pockets they seem to be a lot more concentrated, but as I mentioned previously, the number of the nuggets particularly those in the northern areas, are these flattened, what others in that area are calling melon seed like nuggets, and they are like watermelon seeds in terms of even their size and their shape, and that they’re squashed and they’re flat. And, if you look at them very closely, and look at them under a magnifying glass you can see little divots in them where they’ve been pressed and pushed against little grains of sand, and other material. And, they do look exactly like a watermelon seed.

What we’ve also got, and these are the nuggets we’ve been collecting along the western side of the project area, they tend to be rough and hackly. Very different style of nugget, where you can see that they haven’t been squished, they haven’t been squashed and rolled between this other material. So, that’s what making us think that perhaps that they’re coming out of epithermal veins, and we’ve been finding them hopefully close to their source.

Maurice Jackson: You alluded to the nuggets having the watermelon seed shape, which is alluvial. How does that factor into the thesis that this may be an extension of the Witswaterand?

C. McFadden: Well, that’s a very interesting academic argument that others in the area are leading. I mean, it would be wonderful if the Pilbara was the same as the Wits, and was able to produce the same levels of gold. That would be a magnificent result, but I think it’s probably too early to say that we have a similar area or similar geology, or the same style, or same size region. We’re aligned with the thinking of our peers in the area that the melon seed nuggets are part of what looks like potentially a marine paleo-placers system, but there’s a long way to go in the work to be done in the area. It’s less than two years since the comparison was first made, so I think there’s a lot of academic and geological work that needs to be done first.

Maurice Jackson: NxGold is approximately 30 kilometers south of Karratha, a well-known mining town; tell us about the infrastructure surrounding Mt. Roe.

C. McFadden: It’s an absolutely fantastic place to be. My past history, I used to work at Rio Tinto many, many years ago, and I think those that know the mining industry would understand that the Pilbara is the home of the Australian iron ore industry. There are three significant iron ore producers there: Rio Tinto, BHP, and Fortescue, producing huge volumes of iron ore out of the Pilbara.

Those companies have been developing infrastructure in Karratha, and around the Pilbara regions for 50–60 years now. So, Karratha is unique, in my view, and in terms of world mining. There’s a huge port there for iron ore shipments to Asia. There’s a huge railway line coming in from the Rio Tinto operations, and the railway line is, as the crow flies, probably five or six kilometers from our project area. We can drive to our project area on a sealed road except for the last two or three kilometers, which is a dirt road.

Karratha is a service and infrastructure home for the Pilbara, and for the iron ore industry. So, there’s huge numbers of service providers there, drilling companies, equipment hire. There’s a labor force. There’s accommodation, there’s services such as hospitals and schools, etc. Karratha is a wonderfully established town. For us, the beauty is that it means we can stay in Karratha; we don’t need to build a camp, which saves us a lot of money.

We can obtain all the services we need at very competitive rates in town, because there are so many providers there. There’s an airport that has a number of direct flights to Perth every day. As remote as Karratha, and as remote as the Pilbara is, it’s very, very well serviced. It’s a wonderful location, a wonderful place to be.

Maurice Jackson: One of the virtues you just alluded to is capital expenditures. There won’t really be an issue here, because the infrastructure’s already in place. I can attest to it myself; I was in Karratha last year, but it goes without saying here, but let’s just clear the air here. How would you define the mining jurisdiction?

C. McFadden: Western Australia one of the key mining states in Australia, where at the federal level Australia is a very safe and mining friendly country. So, the federal laws are very easy to operate in. Western Australia itself, and the state is responsible for licensing, is often listed as the top three to five mining jurisdictions in the world in terms of its security of tenure. It’s an environmental management and other regulations, it’s a great state in which to operate. For an exploration company, it’s one of the best plant places in the world to be, and that’s one of thesis: if you like of NxGold, we generally we try to operate in fertile countries in good jurisdictions where it’s safe. Where investment is protected, where there is rule of law, and a consistent and even-handed approach to regulation.

Maurice Jackson: How about community relations, and specifically with the indigenous people there?

C. McFadden: Yes, again, it’s given the work that’s been done by the majors on the iron ore front, and other explorers in the region. The indigenous groups in Australia are fairly sophisticated in terms of how they consider mining and exploration. They understand the industry, and they generally work in partnership with miners and explorers. Our peers in the area are making good progress with obtaining mining tenure, etc. So, we expect that our engagement with the indigenous groups will be of a similar ilk.

One of the challenges I think in that area is that, because of the recent interest in the area, there’s perhaps a capacity issue, and there’s a lot of applications and paperwork that is being done. So, there is a bit of a backlog in terms of the indigenous groups ability to deal with all the matters in front of them, but you know our dealings with the group so far have been excellent. We don’t have any particular heritage issues on our ground that we are aware of, but we’re working with the indigenous people to make sure that we’re operating the right way, and we’re not offending anybody, and that we’re working with them in partnership.

Maurice Jackson: Please provide us with an exploration update on Mt. Roe.

C. McFadden: We’ve had people in the field recently that was announced on the 8th of August. Now, our approach is to, even though we’ve ticked the main box, we’ve got gold on the licenses, you can go with a metal detector and you can pick up nuggets pretty much basically off the ground. It’s quite remarkable, and is new, too, in my experience. We’re taking a step back from that, and just trying to work out where this gold comes from.

So, we’re going back to basics. Our approach is to take a very systematic approach, follow a process of mapping of soil sample within sediment stream sampling. There’s quite a lot of drainage in the area that we’ve been taking some samples from. And we announced recently, that we’ve got over a kilometer of hits from some stream sediment. There’s been some panning of that, and visible gold in those samples. So, that’s all now in the laboratory getting a more detailed assessment of the material that was collected at the time. We’re hoping for those sampling tasks in the next few weeks.

The labs are very busy at the moment, so it is taking a bit longer than we’d hoped, but once we get those results, we’re in the process of doing some geophysics as well that it is being flown I think this week. So, we’ll get those results from the geophysics, we’ll get the geochemistry and then we’ll work out what we’re going to do next in the next phase if you like of the exploration on the ground. It may well involve some drilling to get a better understanding of what’s going on under the ground. We may consider looking at some large bulk samples, it just depends on the results that we get from the work that we’ve recently done. So, we’ll take a very systematic approach, one step at a time, and every dollar we spend has to be justified by the results that we have.

Maurice Jackson: Mr. McFadden, we’ve covered the flagship project, Mt. Roe; let’s discuss your second gold project, Kuulu. Where’s Kuulu located, and how many hectares is this project?

C. McFadden: It’s a fascinating case study if you like. Kuulu is the project that we basically recapitalized the company on about 18 months ago. The project is in Nunavut in northern Canada, so you could not get a more different place than Nunavut and the Pilbara region of Western Australia. Western Australia is always very hot and dry; Nunavut is almost Arctic conditions where our project is located, and so our geologists love going from one to the other. The temperature change can be extraordinary. The Kuulu project is larger, it’s about 4,000 square hectares. It’s just north about 40 kilometers north of Rankin Inlet in Nunavut.

Maurice Jackson: What can you share with us regarding the lithology there?

C. McFadden: The interesting part of this project, and what got us so excited about it initially, was that it’s directly a long strike from the Agnico Eagle Meliadine project that is currently being constructed, and will be in operation I think next year; 2019 they’re looking to commence production. That is a world-class deposit, and it will be a significant mine producing I believe, 400,000 to 500,000 ounces a year, possibly more. It’s a large deposit, many millions of ounces at a significant grade. So, we are up strike along the fault that Meliadine is located on.

Maurice Jackson: And are the drills turning there?

C. McFadden: They’re not at the moment. We have some challenges with that project from an access point of view. We don’t have a surface rights license at this stage from the Inuit Association that’s based in Rankin Inlet. We’re working with them to try to obtain that, we have numbers of walk-up drill targets there. We have been able to take advantage of previous work done on the license area, and some of our own geophysics that we did last year, to identify some very exciting targets where we’re hoping to drill as soon as we can, but working with the local people we’ve been able to identify that they are concerned about drilling during the hunting season. And the impact that increased activity, particularly with helicopters and drill rigs, the impact that may have on caribou, in particular, and other animals that they hunt.

So, given the concerns that the local people have about hunting, and the impact on the animals, and their hunting activities, we have agreed that at this stage, we will drill over winter only. We’re still in discussions with the local people, and we have a number of visits and the meetings planned over the next few months to try to achieve that goal. But, we have all the other permits that we require in order to undertake exploration activities on that license area.

Maurice Jackson: Mr. McFadden, before we discuss the management team, are there any reversionary interests on these projects?

C. McFadden: With Mt. Roe, we have an 80% interest in that project. The vendors from whom we acquired the project have a 20% interest in that project. We are currently funding all of the exploration work ourselves, and we have an obligation to fund 100% of the work through to completion of any feasibility study that may be undertaken on that project should it get to that point.

For the Kuulu Project, we are currently earning into that project from the vendors. We have to meet certain expenditure obligations in order to earn our interest, but given the difficulties we’re having with the surface licenses those spending obligations and requirements are currently on hold, pending the satisfactory conclusion of the license situation.

Maurice Jackson: Now, realizing that you are an exploration company, what is management’s philosophy? Are you looking to build a mine or arbitrage?

C. McFadden: We’re looking to build a mine. Certainly, my background in the majors is to make a significant discovery, and then progress that discovery through to development and operations. Of course, who can predict what happens along that journey; it’s a long journey. So, we’ll just have to see what happens at the time, and take all interest into consideration, and obviously the interest of shareholders.

Maurice Jackson: Switching gears, I learned from Rick Rule and Doug Casey that the people running the business are equally, if not more important, than the latent material in the ground. Mr. McFadden, please introduce us to your Board of Directors, and what unique skill sets do they bring to NxGold?

C. McFadden: We have a board that has vast experience in the mining sector. Let’s start with our chairman, Leigh Curyer. Leigh is currently the CEO of NexGen Energy, and was the founder of that entity. I think a lot of investors will be aware of NexGen Energy, and the great success that company has had in the uranium space in Saskatchewan with the Arrow deposit. He worked in private equity and reviewed numerous mining opportunities in the uranium space, and prior to that he worked in a precursor to Uranium One, and was heavily involved and was responsible for permitting one of Australia’s uranium mines. So, Leigh has close to 20 years of experience in the resources sector. He is a great leader of NexGen. Perhaps I’m a bit biased there, but I remain the chairman of NexGen, so I managed to see Leigh operate on a regular basis, and he’s got a great team and great leadership, and he’s a very strong strategic thinker in terms of project developments and community relations, etc. So, Leigh’s great to have on our board, and he’s a great leader of our board.

Trevor Thiele. He is an Australian, and he’s based in South Australia. He’s quite close to our Mt. Roe Project. Trevor is our leader of our Audit Committee, he’s a financial veteran in the resources, and primary industry sector in Australia. Very detailed, focused leader in the accounting sphere, and has a great business mind, and great business acumen and is a very strong director.

We have Richard Patricio, who is based in Toronto. Richard’s a lawyer by training, and again he’s a very strong strategic thinker, particularly on the legal side and awareness, and he’s switched on and plugged in to the Toronto market, and the people there.

And finally, we have Karl Laufmann, who is a recent addition to our board. He’s based in Perth, and Karl is in the financial industry. He has over 20 years of experience in capital markets in Australia, and internationally and is very well connected. And again, very strong on his strategic thinking and he’s awareness of the market, and the gold, particularly the gold industry in Australia and in Western Australia in particular.

Maurice Jackson: Tell us about Christopher McFadden, what makes him qualified for the task at hand?

C. McFadden: I’ve been in the mining industry for over 20 years now. I’m a lawyer by training, and I started out in the Melbourne legal sector, particularly working in natural resources and energy. And initially, I worked as an in-house lawyer with Rio Tinto in Melbourne, and also in London. So in that 15 years, I was with Rio Tinto initially as a lawyer, and then for the last seven or eight years as a commercial general manager leading teams to transact large acquisitions, and large disposals, but also large joint ventures on the exploration sphere.

I managed to work across the globe in many commodities at various stages of exploration and development. So, I would say that with my global experience, and my experience negotiating joint ventures and managing joint ventures, and managing exploration projects in many places with many different people, and many different cultures with many different challenges, because no two projects are the same. I’ve been able to develop a very strong skill set in mining and exploration in particular.

Maurice Jackson: What can you share with us about the technical team?

C. McFadden: As a small company we have only one technical team member on full-time staff, and that’s our VPX, Darren Lindsey. Darren is highly experienced in gold exploration around the world, with particular experience in Northern Canada, and Nunavut in particular. Darren has worked in across the all spheres of the gold sector. He’s worked in majors, he’s worked in juniors, and he’s worked in development projects, and he’s also been a CEO in a past life. So, he clearly understands capital markets, and what drives shareholders and what drives interest in juniors so, he’s a wonderful member of our team. He’s technically very experienced, and highly skilled, and very methodical and a clear thinker. So, he’s a wonderful person to work with, and he’s very excited about our projects and on working very hard to make that discovery.

Maurice Jackson: Let’s get into some numbers here. Tell us about your share structure.

C. McFadden: It’s a relatively simple structure. The company was recapitalized in early 2017; it was previously a shell company. We have done two capital raisings since that time so, we currently have approximately 80 million shares issued and outstanding. We have quite a number of warrants, there’s about 45 million warrants, and about 7 million options. So, fully diluted, the total is roughly 130–135 million on a fully diluted basis.

Maurice Jackson: How much cash or cash equivalents do you have?

C. McFadden: At this stage, about CA$5 million. We’ve completed a capital raise a couple of months ago, which has restocked us very nicely. So, we’re quite well funded at this stage.

Maurice Jackson: And, what is your burn rate?

C. McFadden: We try to run very lean. Obviously, we don’t have huge full-time staff so, our burn rate all in including my salary is just over a $1 million a year subject to travel requirements. And obviously, with projects in different parts of the world that can be one of our higher costs, but relatively low costs.

Maurice Jackson: Talk to us about the cash flow distribution, what is the ratio between cash spent, and tangible assets on the balance sheet?

C. McFadden: The primary focus is to put money into the ground into exploration. So, at least 70–75% of our cash is spent on exploration.

Maurice Jackson: How much debt do you have?

C. McFadden: We have $0 debt.

Maurice Jackson: Who are some of your institutional investors?

C. McFadden: Primarily most of our shareholders are high net worth and we have individuals we know from our NexGen experience. So at this stage, we don’t have any really large, dominating institutional shareholders.

Maurice Jackson: What is the float?

C. McFadden: It’s relatively small because we have some very loyal and long-term shareholders, and so at this stage, I suggest perhaps a 20–25% of the market cap would be the float.

Maurice Jackson: Are there any redundant assets such as a patent mining claim?

C. McFadden: No, there are not. At this stage, we really just have the two projects so it’s very clean.

Maurice Jackson: Are there any change of control fees, and if there are what are the terms?

C. McFadden: No, there aren’t.

Maurice Jackson: Alright, sir, you survived the storm. Mr. McFadden, multilayered question here. What is the next unanswered question for NxGold? When should we expect results, and what will determine success?

C. McFadden: It is a multilayered question there, that’s a challenging question. We have a systematic approach to exploration. So, we’re looking for results out of Mt. Roe in the next couple of weeks in terms of the lab results to just follow-up on our last announcement. And then, from there that will determine the work that’s done, and then I suspect that if we’re drilling or bulk sampling, there’ll be results that will flow from that.

In terms of success, obviously, success would be a significant discovery, but it’s probably a bit early to get there. If we’re drilling, success will be a better understanding of our geological setting, and if we are pursuing those epithermal veins, well then if we can make some hits with those, that’ll be incredibly successful and very powerful.

Maurice Jackson: Mr McFadden, what keeps you up at night that we don’t know about?

C. McFadden: As a long-term mining person, one thing that does keep me up at night, obviously, is the safety where we get people in helicopters or working heavy machinery, that’s all obviously a consistent stress. A big one for me is really Kuulu and getting land access there. That is one that is very important to us, because that is a significant project with great potential. That’s what keeps me awake at night other than the constant concern about share price and share performance, which I think is a minute by minute concern for every mining industry professional.

Maurice Jackson: And last question, what did I forget to ask?

C. McFadden: That was a very comprehensive interview, Maurice, I’m not sure you forgot to ask anything, but one thing perhaps is just in terms of our market cap and the potential that we represent by being in the Pilbara, and also being with our Kuulu Project. If you compare us to some of the other players in the Pilbara, I think it’s arguable that we are undervalued. With success I think there’s great potential for our market cap to rise significantly. I think that’s where the interest probably lies in our company, and the opportunity that our current, relatively low share price represents.

Maurice Jackson: Mr. McFadden, for someone listening that wants to get more information on NxGold, please share the contact details?

C. McFadden: I think the best place to start would be our website http://www.nxgold.ca. We have our corporate presentation on the website you can access. We obviously have access to past results, and we have profiles of our directors and senior management there as well, and hopefully it’s comprehensive and easy for prospective investors, and those that are interested to follow.

Maurice Jackson: And as a reminder, NxGold trades on the TSXV symbol NXN. For direct inquiries, please contact Travis McPherson at 604.816.2686. He may also be reached at tmcpherson@nxgold.ca. NxGold is a sponsor of Proven and Probable and that we are proud shareholders for the virtues conveyed in today’s interview.

And last but not least, please visit our website http://www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.

Christopher McFadden of NxGold, thank you for joining us today on Proven and Probable.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
1) Christopher McFadden: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: NxGold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: NxGold.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: NxGold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: NxGold is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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5) This 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.
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from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/12/gold-explorer-features-projects-at-opposite-sides-of-the-globe.html

Mining Prospects in Newfoundland

Source: Ron Struthers for Streetwise Reports   09/12/2018

Sector expert Ron Struthers takes a trip to Newfoundland and reports on companies working in the province.

It was a wonderful day and perfect weather for the ferry ride from Sidney, Nova Scotia, to Channel-Port aux Basques, Newfoundland.

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One thing I noticed strange on my first several days of travel in Newfoundland were all the high voltage electrical transmission lines. They seemed numerous and going everywhere, although nothing is really there. For the most part Newfoundland is barren land with only around 550,000 people across the whole province. And Newfoundland/Labrador is larger than New Brunswick, Nova Scotia, and Prince Edward Island combined, although you could eliminate half of it (Labrador) as there is little development other than resources. About 95% of the people live on Newfoundland, and the island has about 25% of the population of the other three eastern provinces I’ve mentioned.

As you know I have a keen interest in energy and alternate energy. I could not help but wonder, where is all this power going in a province where growth is stagnant and the population has been stuck in the 500-550,000 range for decades.

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The most positive outcome is this new high voltage transmission line, which runs through the northern part of Zonte Metals Inc.’s (ZON:TSX.V)’s Cross Hills project. This picture is not from Zonte’s property but elsewhere, but it is the same transmission line.

Newfoundland’s Electrical Boondoggle

Electricity prices are a hot topic in Ontario, but Ontario folk may take some comfort that Newfoundland will soon join them and probably see rates way higher. Ontario has the third highest rates in Canada, and Newfoundland is about $0.01 per kilowatt hour (kWh) lower.

After several days speaking with locals and seeing local news I learned all the transmission lines were, in part, about a project called Muskrat Falls. About 3,200 transmission towers were built because the project is far away from where any power is required. In fact, all this power is not required in Newfoundland either.

In Newfoundland, Hydro is a provincial crown corporation under the umbrella of a company called Nalcor Energy, and is the primary generator of electricity in Newfoundland and Labrador, with an installed generating capacity of 1,637 megawatts (MW). In 2008, more than 80% of this energy was clean, hydroelectric generation. Hydro’s power-generating assets include nine hydroelectric plants, one oil-fired plant, four gas turbines, 25 diesel plants, and thousands of kilometers of transmission and distribution lines.

The diesel plants are small and for remote areas. Why would a province with no growth need a huge new 3,000 MW hydro-generator, almost twice current capacity? Just considering the first phase, at 824 MW, is about a 50% increase over current capacity. The answer: it is not needed.

Muskrat Falls is probably a bigger boondoggle than the likes we have witnessed in Ontario. Phase one at Muskrat Falls includes construction of an 824 MW hydroelectric-generating facility, over 1,600 km of transmission lines across the province, and the maritime link between Newfoundland and Nova Scotia.

The original Muskrat Falls deal was designed to supply the island with low-cost hydro power to replace power generated at the oil-fired Holyrood power station, and to sell Emera 20% of the output for use by its Nova Scotia Power subsidiary. The balance was going to be sold to “lucrative U.S. power markets.” There is no doubt the original projected cost, between $5 and $6 billion, was low-balled because of either engineering incompetence or political posturing—or some of both. The project got the go-ahead during the 2011 election campaign when Stephen Harper, desperate to win seats in the province, promised federal loan guarantees to get the dam and its lengthy transmission system from Labrador to the island, and on to Nova Scotia, built, despite an unconvincing economic case.

The latest estimate for the project completion is $12.7 billion, more than double the original. There are estimates between $0.22–0.24 per kWh for the cost of generation. This is about double current rates in Newfoundland and no doubt makes this the most expensive large electrical generation in Canada.

Muskrat Falls has actually become cheap power for Nova Scotia at Newfoundland’s expense. What a win for Nova Scotia. Think of it. Newfoundland said, “If you (Nova Scotia) connect to our grid, we will give you one-third of Muskrat Falls power free for 35 years.” Since there is no market for the rest of Muskrat Falls power, Nova Scotia is going to get another third at market prices of $0.03–0.04 per kWh. In essence, Nova Scotia will be getting two-thirds of Muskrat Falls power for a few pennies or less/kWh, while the cost to Newfoundland will be $0.22–0.24 per kWh. What a boondoggle.

This is very sad for a province already saddled with huge taxes. Provincial fuel taxes are more than double almost anywhere else in Canada. Practically everything costs 10% to 25% more because it has to be shipped to Newfoundland by sea, since not much is produced there. However, the beautiful scenery and laid-back way of life is free.

I love Newfoundland, and the people there are second to none. Mining discoveries and new mines would be very well received as the jobs are badly needed and the extra revenues to government coffers from the additional tax base are badly needed also.

That said, let’s get into the mining mania that is gripping the province. The best explanation is the graphic.

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The circular structure outlined by the air magnetic in red is the intrusive outlining epithermal vein activity. Practically all the ground is now staked around this, and on the epithermal trend that continues to the northeast indicated by the red arrow, toward Zonte’s Wings project, and the arrow to the southwest, toward Marathon’s Valentine project.

I found most of the projects are early stage and private. There is a good private project that will soon be vended into a public company, and I believe that will be a good one to jump on. It is advanced and drill-ready. As soon as news is out on that acquisition I will send out an alert. RJK Explorations acquired it.

Sokoman Iron Corp. (SIC:TSX.V): Recent price $0.17; sold at average of $0.38

I was looking forward to visit the Sokoman project to gain a better understanding. However, when I spoke with the CEO, he came across quite unusual. He was not interested in me visiting the project, I was told there was nothing going on until September, there was nothing to see and there was no outcrops. The company’s presentation and news releases say otherwise. I spoke with him a day after I commented about the misleading news release and I would be surprised if SIC saw that; perhaps they did. A site visit would be an opportunity for a better understanding of the project—who turns down free newsletter coverage?

Something smells here, and it is not good. Misleading drill news that hyped a 11.9-meter intersect when it was only 1.35 meters. There has been trenching, 111 drill holes and no resource yet. I think the drill hit was simple luck. For now I will still follow it and let the chart and/or the next drill results make my decision on what to do next. We took profits out twice at higher prices, and sold the remaining position in the high $0.20s, so I will use an average of $0.38 as the selling price.

This is how to calculate the grades outside the 1.35-meter high-grade intersect. First, find the total grams over the long intersect: 44.96 X 11.90 = 535.02 g/t. Next the high-grade portion: 385.85 X 1.35 = 520.90 g/t. Next, subtract the two-gram numbers and average over the outside portion of the high-grade intersect which is 11.90 – 1.35 = 10.55 meters. 535.02 – 520.90 = 14.12 g/t, so 14.12 g/t / 10.55 M = 1.34 g/t over 10.55 meters.

This 1.34 g/t would not be economic in an underground mining scenario, and that is what we are looking at here, because it is under a lake. Really, there is no long intersect. The real result is 385.85 g/t over 1.35 meters, and this is high grade but a narrow intersect and most likely a lucky hit on that vein.

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In my update to sell a couple weeks back, I noted the stock will probably move down and continue to fill the gap from $0.24 to $0.42. It actually went lower and shows signs that it might be consolidating between $0.15 and $0.20. I will wait for next drill results before I decided whether to jump back in or not.

RJK Explorations Ltd. (RJX.A:TSX.V): Recent price $0.17; Opinion—sold at $0.19, buy back under $0.15

RJK announced its acquisition of its MGD project just as I was leaving for Newfoundland, and I did not have a chance to arrange a visit. There was probably nothing going on anyway, so soon after acquiring. I have a feeling I will be back to Newfoundland soon so will try a site visit then. This map gives a good idea of where RJK’s project is and location relative to SIC. In that regard the location is awesome.

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The MGD project is located within a northeast-trending belt of Silurian volcanic, volcaniclastic and sediment rocks. The project has considerable coverage of the large regional fault structure located in the area. The MGD project consists of approximately 12,896 acres (5,200 hectares).

RJK paid quite a bit for this, and a 20-million share financing is quite dilutive. The good news is that Sprott and Palisades came into financing. The stock jumped higher and quickly, so often you see a correction back to the gap, weakness down to around $0.11 was no surprise.

What really interests me about RJK is its second acquisition, Rolling Pond, announced last week. The Rolling Pond property consists of 3,550 hectares of highly prospective ground containing a large epithermal system within a structural corridor that extends for a distance of eight kilometers. Historical exploration work performed by Altius Minerals Corp. (ALS:TSX.V) in 1998 included prospecting, mapping, ground-induced polarization/resistivity and high-resolution airborne magnetometer surveying. The results of this work successfully delineated a high-level sinter zone over a strike length of 1,100 meters, with an approximate width of 50–60 meters along a small portion of the structural corridor. A follow-up, five-hole program not only confirmed the presence of the epithermal system at depth, but also successfully identified the presence of the boiling zone, as defined by the presence of bladed calcite and lattice textures.

It was also noted that gold and base metal values increased at depth in the system and additional deeper drilling was recommended. Boiling zones are of significant importance in epithermal systems as they indicate the proximal locality for precipitation of gold-bearing fluids. RJK has applied for exploration and drilling permits with the intention of using the historical high-resolution airborne magnetics and induced polarization/resistivity surveys, along with the drilling data from historical drilling, to test the system below the boiling zone. A 3-D analysis of the historical drill data is currently in progress and field crews have been mobilized to site to begin preparatory work.

RJK can earn a 100% interest in the Rolling Pond property by paying $50,000 cash and 350,000 shares on signing, and $50,000 and 350,000 shares on the first, second and third anniversaries of the agreement. The property is subject to a 2% net smelter return royalty, with the ability to buy back 1% for $1 million at any time.

I went over this property with Dean Fraser and like the potential much more than what they have around Sokoman, mainly because Rolling Pond is more advanced and we will soon see some drilling. I marked the Rolling Pond property on the regional map I used preceeding Sokoman.

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We did well selling around $0.20 and the stock came back down and started filling the gap between $0.08 and $0.15. It has been trading thin since that bottom at $0.11. I would try bids under $0.15 to buy back positions.

The issue with all these projects around Sokoman is that they are epithermal vein systems and one has to do a lot of drilling to find the veins and see if they carry any good grades. Once orientation, strike and depth of the veins are determined, then infill drilling has to be done to prove resources. Often these veins have to be drilled on 250-foot centers. You’re looking at a lot of drilling, and if it is down deeper, even more costly. These can be very worthwhile if you have high grades, but as in the case of Sokoman, there’s 111 drill holes and no resource yet.

Zonte is exploring a much different target at Cross Hills, a bulk tonnage iron-oxide copper gold (IOGC) system. White Metal Resources Corp. (WHM:TSX.V) is also exploring a different type of system.

While Sokoman’s news brought a lot of attention to Newfoundland, perhaps the best is yet to come. Wait until Zonte makes a discovery at Cross Hills this year and the staking rush will go into an even higher gear.

Zonte Metals Inc. (ZON:TSX.V): Recent price $0.30; opinion—strong buy

I met with Terry Christopher and Dean Fraser the night before we were going to head out to the project. Both are a wealth of knowledge. Terry has two discoveries under his belt and is a native of eastern Canada, and Dean, a native of Newfoundland, has also participated in large discoveries. I met Dean many years ago when he worked with another company and he is an intense, hard-working geologist and an expert geophysicist. Both Terry and Dean have a hard work ethic and work well together. Earlier in the summer, Bill Carson, a prospector, also aided in the systematic exploration on parts of the property.

A key to understanding these IOGC systems is the magnetite, which is really the iron oxide that carries the other metals like copper, gold and silver. It is very easy to identify with a magnet and when I tested this sample the magnetic pull was strong. You can also do this in the field and keep in mind that the iron adds value to an IOGC system, but usually the copper is the key metal.

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I spent the next day investigating Zonte’s Cross Hills project and my timing was very fortunate. Christopher and his team have been working relentlessly and meticulously since the beginning of January overturning every rock and running high resolution ground magnetic surveys on this large project. It has paid off big time as the previous press releases have identified numerous large targets, many of which Zonte has yet to field check. Others, such as Dunns Mountain and K6, have delivered copper coincident with the large magnetic targets. Since early July the company has expanded the land position significantly to 123.25 square km and has submitted numerous samples to the assay labs.

It appears, through its meticulous process culminating in these past several weeks, Zonte has figured out the controls of the system, orientation of known anomalies and how they tie together in an IOGC system. With this knowledge the company has been revisiting anomalies. There is very little experience in Canada on these systems, but Zonte does have some outside consultation. Previously it found little copper outcropping because surface rock was very weathered. Unraveling the alteration pattern, geologic setting and system controls at Cross Hills, the company discovered where and what rock types and surface features to look for. At one target I visited, I was able to observe surface copper showings throughout the anomaly and it appears the company has not sampled many of them, which is upcoming when assays are received.

The pic below is an example of a magnetite vein on top of the Dunns Mountain anomaly. The color does not show well in this picture, but the vein is about as wide as the pen on each side—what looks blue-ish is actually green, indicating copper.

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With IOGC systems you have the main massive/breccia ore body down deep with mineral pulses creating veins above it, and above the veins the disseminated mineralization. It is very rare to find the veining exposed as indicated above—most cases they are buried and you find the disseminated at best. Most anomalies in these systems are often blind or drilled in very little more than alteration. At the Cross Hills project copper mineralization is found at surface and at Dunns Mountain as veining throughout the target area.

It pays to do all the long, detailed and hard work, and hats off to the Zonte team in doing this, and putting this puzzle together.

As I mentioned, the iron oxide is key, and this is what Zonte’s magnetic surveys have been identifying. This is the Dunns target, and it shows the magnetite as very intense just 50 to 100 meters below surface. When you have magnetite veins running copper above this, there is little doubt the magnetic anomaly carries stronger copper values. The only question is what grades and what lengths of mineralization will be revealed by the drills.

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Zonte is planning more sampling, tightening up the magnetic surveys and might run IP surveys to help pin point drill targets.

This picture is from Zonte, and shows Dunns Mountain, K6, Nine Mile and Carols Hat anomaly positions. It points out how vast the project is and that it might contain more than one deposit.

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After seeing this all for myself, and going over all the geology and data with Terry Christopher, I am convinced this will be a major discovery.

Here is a little background on IOGC and what public info we know on Cross Hills so far. Most often IOGC systems are large, hosting billions of pounds of copper and millions of ounces of gold with iron. Zonte’s magnetic anomalies show up very large and strong. Typically you will see long intersects (hundreds of meters) of mineralization in these systems, and they are large open-pit operations. Grades can vary.

A description at Investing News on copper: “IOCG ore bodies range from around 10 million tonnes of contained ore, to 4,000 million tonnes or more, and have a grade of between 0.2 percent to 5 percent copper, with gold contents ranging from 0.1 to 3+ grams per tonne. The tremendous size, relatively simple metallurgy and relatively high grade IOCG deposits can produce extremely profitable mines.” And that is why Zonte is focused on Cross Hills.

The advantages Zonte has are location and infrastructure. There is paved road access to the project and a major high-voltage transmission line was put through the northern area of the project last year. Access to an Atlantic seaport is only about one hour away. This means a lower grade project could be economic. I am not saying this will be lower grade. At this point we don’t know and don’t have a deposit yet.

Zonte released news Monday. It increased the land position significantly from 81.75 to 123.35 square kilometers after identifying controls of the mineralization. Christopher commented that the company will advance drill targets with about a month of additional work. Therefore it sounds like it will be drill-ready later in October.

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I often commented that the stock would fill the gap between $0.25 to $0.32 or so and has now done that. It may continue to trade there longer, just no way to be certain. On the topic of gaps, we also have a breakaway gap from $0.18 to $0.25. They are identified with higher volume and we can see that higher volume. The good news is these breakaway gaps often repeat themselves a few times. For example, with Garibaldi (GGI:TSX.V), last year, it had four gaps. The first from around $0.25 to $0.60, the second gap $0.80 to $1.50, the third at $2.00 to $3.60 and a fourthfrom $3.75 to $4.75.

White Metals Resources Corp. (WHM:TSX.V): Recent price $0.13

In some cases timing did not work out well. In August many were on holidays and with the bear market on the TSX.V, many juniors have little funds to do any work. I headed up the peninsula to St. Anthony, probably the most beautiful part of Newfoundland. I believe I found WHM’s property but there was a very thick fog that day, even though the forecast was sunshine. We also planned to go whale-watching and the fog usually lifts by the afternoon, but not that day. I waited to 5 p.m. and the thick blanket of fog persisted, but when leaving, just 5 to 10 km down the highway, there was no fog. Unbelievable.

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But it was all fog, and that dam foghorn went off about every three minutes. It was no use taking any pictures so I used this pic from WHM’s presentation. WHM’s Gunners Cove project looks quite interesting and I have known its geo, Dr. Scott Jobin Bevans, for many years. White Metals announced a financing Sept. 5 and has begun an important channel sampling program on seven priority targets at its Gunners Cove gold property. To date, 120 channel samples have been submitted to Eastern Analytical Laboratories in Springdale, Newfoundland, and a further 300 samples are expected to be taken in the coming weeks.

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The Gunners Cove gold project is a new unexplored gold system that has now been traced intermittently for 18 kilometers along strike (north-south) and from 1.3 to 3 kilometers in width (east-west). It is quite a large project at 59,402 hectares and has good road access.

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It has some similarity to Zonte’s Wing’s project because it is sedimentary-based and in WHM’s case gold is hosted in black shales. This is much different than the Sokoman area, focused on veins. To date, 15 new areas of gold mineralization have been discovered, of which seven have been identified as high-priority targets. The seven priority targets that will be channel sampled include the Thompson zone, the East and West Gunners pit (discovery pit) and the Hidden pit, which is also located in the Gunners pit area. Also included in the program are the Stephens zone, the Totem zone and the Bazooka zone. Grab samples taken across strike at the Bazooka zone area yielded anomalous gold concentrations over 1,000 meters across strike.

Technical personnel for the company have designed the channel sampling program as the best way to properly evaluate the gold tenure and continuity on the various gold zones, as well as assist in the delineation of targets for a future diamond drilling program.

Since the initial gold discovery in September 2017, the company has had excellent success not only in making new discoveries, but extending the area of gold mineralization substantially at the Gunners Cove gold project.

Anomalous and moderate-grade gold assays are associated with 2–10% pyrite nodules, discontinuous stringers, fragments and cubic crystals. The gold zones are hosted in a geological distinctive unit of chaotic, multilithic breccia with a predominately graphitic and mudstone matrix. This unit is associated with regional thrust faulting and referred to as a melange. Anomalous silver, copper and molybdenum are also associated with the gold mineralization.

I am going to look at this in some more detail and wait for channel sample results before deciding on whether to buy the stock. On the chart, there is resistance around $0.15 to $0.17, and higher around $0.23 cents. Support is around $0.08 to $0.11, and it appears it will probably trade between $0.10 and $0.15 cents ahead of channel sample results.

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Ron Struthers founded Struthers’ Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 – $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.

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Disclosure:
1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Zonte Metals, RJK Exploration. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This 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.

Charts and images provided by the author.

Struthers’ Resource Stock Report Disclaimer:
All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

( Companies Mentioned: RJX.A:TSX.V,
SIC:TSX.V,
WHM:TSX.V,
ZON:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/12/prospects-in-newfoundland.html

Case Study: Pretium Short and Distort Attack

Source: Lobo Tiggre for Streetwise Reports   09/12/2018

Lobo Tiggre of Independent Speculator discusses an attack piece by short sellers against Pretium Resources.

On Thursday, September 6, 2018, a group of short sellers called Viceroy Research published an attack piece against Pretium Resources Inc. (PVG:TSX; PVG:NYSE). The stock dropped 10% on a day when gold was up. What follows is an analysis of what was said and why it’s wrong.

FULL DISCLOSURE: I own 1,377 shares of Pretium Resources (PVG), bought at an average price of $7.26 on April 13, 2018, at 12:59 p.m.

If you think I’d sell my soul and trash my reputation to protect a $10,000 investment, then you should discount everything I’m about to say. But if you do, you should keep the same skepticism in mind when you consider Viceroy’s claims, as they admit that they were short the stock at the time they published their attack.

As of the publication date of this report, you should assume that the authors have a direct or indirect interest/position in all stocks (and/or options, swaps, and other derivative securities related to the stock) and bonds covered herein, and therefore stand to realize monetary gains in the event that the price of either declines.

At the same time, Viceroy claims to be acting in the public interest—even though they say everything in their report might be wrong.

All expressions of opinion are subject to change without notice, and we do not undertake to update or supplement any reports or any of the information, analysis and opinion contained in them. We believe that the publication of our opinions about public companies that we research is in the public interest. We are entitled to our opinions and to the right to express such opinions in a public forum. …

Any investor interested in the truth should keep this in mind.

Meanwhile, I read all 47 pages of the report, trying to be as objective as I can.

I found one issue that seemed to require clarification.

A central thesis to the attack is that Pretium used the bonanza-grade Cleopatra vein within the Valley of the Kings zone to bias the bulk sample taken in 2013.

If true, the entire project was a fraud. The company would have to be desperately scrounging around for high-grade ore now to maintain the illusion, as the short sellers claim.

Before we get into that, it’s worth nothing that management couldn’t pull off a fraud like this on their own. They couldn’t sneak down into the mine when no one was looking and take a pick to some ultra-high-grade material lying around to skew the results. It would take hundreds of employees working for several different companies to join the conspiracy. It would take even more to keep the illusion going now that the mine is in operation.

That this could happen with no leaks over the last five years is very hard to believe. It’s also contradicted by the lack of significant insider selling (apart from exercising options) that one would expect to see if management was desperately trying to cash in before the fraud is exposed. And that’s not to mention a court examination of the issue that concluded that Pretium was right.

At any rate, this is the central thesis of the short sellers’ attack. They included one of Pretium’s slides as evidence in their report. It seems to show the 2013 bulk sample selectively following the super-high-grade Cleopatra vein. Without context, this looks bad. Here is the slide the short sellers used and marked up.

Macintosh HD:Users:Lobo:Documents:A Companies:1-LJ:1-Publications:1-SD:2018:01 September:180908 SDWR Screen Shot shortseller PVG Cleopatra slide.png

The yellow areas on the map are places where material was taken for the bulk sample. Blue areas were for access and exploration. Material from the blue areas was not included in the bulk sample. Note the blue tunnel at a different angle than the rest. It follows the Cleopatra vein, which seems to curve around and get included in the only yellow area that goes east-west instead of north-south. That exceptional orientation of the area sampled sure looks suspicious… unless you know that it was planned all along, well before Cleopatra was discovered.

Below is a diagram of the planned bulk sample area, published by Pretium on August 21, 2013.

Macintosh HD:Users:Lobo:Documents:A Companies:1-LJ:1-Publications:1-SD:2018:01 September:180908 SDWR Screen Shot PVG 130821 presentation sl 19.png

It shows the resource model blocks in green, orange, red and purple. This clearly shows Pretium’s intention to sample material from high-, low-, and no-grade areas to test its model. This was drawn before Cleopatra was discovered, which is why there are no purple blocks where we now know Cleopatra was. It’s hard to see, but the vital point is that the east-west sample area that looks so exceptional in the previous chart is already there in the plan. This next slide, from the same 08/21/2013 presentation, shows that east-west sample area more clearly.

Macintosh HD:Users:Lobo:Documents:A Companies:1-LJ:1-Publications:1-SD:2018:01 September:180908 SDWR Screen Shot PVG 130821 presetnation sl 17.png

As is clearly shown, the east-west sample was already planned. The drill traces on this slide also show some purple-coded hits that would later be seen as part of Cleopatra—but Pretium did not move the 615E sample area a bit to the east to try to capture more of this material. You can see that in the next slide taken from Pretium’s October 30, 2013, The Bulk Sample: Questions and Answers presentation. It shows the actual areas Pretium mined for its bulk sample.

Macintosh HD:Users:Lobo:Documents:A Companies:1-LJ:1-Publications:1-SD:2018:01 September:180908 SDWR Screen Shot PVG 131030 BSQA sl 20.png

This is busier than the previous slide, as it includes a lot of the underground drilling Pretium did once it got into the deposit underground. It shows all the bulk sample areas taken as planned, including the east-west zone highlighted by the short sellers—but only the eastern half of this area.

I understand that this was because the density of the rock mined for the bulk sample was higher than expected. If Pretium had mined all of the areas completely as planned, the sample would have exceeded the 10,000 tonnes contracted. The company stopped when it reached 10,000 tonnes. If they had mined the western half of the east-west area, it could have taken a bunch more of the purple- and red-coded (very high-grade) rock found in later drilling. This would have made the sample deliver even more gold, exceeding expectations even more than it did.

Experts can, did, and I’m sure will argue about whether Pretium’s bulk sample was done correctly for years. My point at the moment is that the short sellers’ slide doesn’t tell the whole story—and the part it does tell is misleading.

I know this because I was there at the time. I remember that the bulk sample was deliberately designed to extract material from areas with a range of grades, from almost nothing to super-high-grade. That’s reasonable, because such bonanza-grade areas exist scattered throughout the deposit.

When I visited the bulk sample area after it was mined, I saw visible gold in the tunnel walls adjacent to the bulk sample areas. This was high-grade gold left in place because it was not in the tonnage planned for the bulk sample. This included portions of the Cleopatra vein. This is an important part of why I did not believe then and do not believe now that management was cheating.

The short sellers make a big deal of Strathcona (the first contractor running the bulk sample) resigning. I wrote about that at the time. The dispute was over method. The short sellers claim Pretium and its conspirators in other companies got eight times the gold out of the same sample that Strathcona did. That’s not how I remember it. Strathcona never finished the job, walking out over methodological differences. When the whole job was done, the results supported Pretium, not Strathcona.

This held up in court when a bunch of unscrupulous lawyers sued Pretium, using Strathcona’s departure as a basis for a class-action lawsuit.

The short sellers also make a big deal of Pretium’s management not releasing all the details of the allegations made by the company’s critics, like Strathcona. That management would not want to spread false or inaccurate information seems understandable to me, but more important is that the court surely saw all of it, and it sided with Pretium.

As for the rest of the claims against Pretium, I found none of merit.

There’s a lot of innuendo and smearing that can’t technically be disproved, because it’s not presented as fact, but as opinion and belief. Other statements combine known facts with the short sellers’ negative interpretations, which are not facts, but seem compelling because they contain facts. In other cases, the conclusions drawn from known facts seem unfounded, or the math is done using the wrong numbers.

Here are other key arguments and my rebuttals:

  • The short sellers imply that Pretium founder and chairman Bob Quartermain is a known scoundrel because his previous company, Silver Standard Resources (now SSR Mining), restated mineral resources at its Pirquitas project after Bob left. This happens a lot in exploration, especially when one goes from exploration to building and operating a mine. I was also covering this story at the time, and I remember that there was a technical issue with the part of the ore that contained mostly tin. After careful study, they decided not to mine this, and to this day, Pirquitas has no official tin listed among its resources. The projects resource model underwent other changes as the company went from exploration to production, as well, which is quite common. The mine went on to make a lot of money, making SSR into the major producer it is today—a point the short sellers neglected to mention.
  • They imply that there’s something fishy about the large increases in the size and grade of the deposit after an initial 2011 resource estimate. That’s silly, since Pretium kept finding more super-high-grade mineralization—all verified by independent third-party labs. Of course it got bigger. And of course the numbers changed in various ways as more drilling increased understanding of the deposit.
  • They say that since starting commercial production, Pretium selectively mined the super-high-grade Cleopatra vein to make whole mine look better. They say the company is now “frantically” expanding mining to try to find more such veins. I’ve seen the Cleopatra vein underground. It’s a twisty little thing. I don’t think Pretium could have mined it very selectively with the bulk equipment they use. But if they did concentrate on it initially to deliver unsustainable numbers, what are they mining now that grades have improved again? Also, the company has long said it was increasing “development” mining to access more stopes to give it more flexibility. This explains the company’s actions without invoking a conspiracy that would require hundreds of employees of many different companies to keep silent.
  • The short sellers make a big deal out of a difference between the tonnes of ore Pretium reported mining and the actual amount mined as estimated by the short sellers. As I read it, the short sellers are conflating the amount of ore reported mined in Q3 and Q4 2017 with the total amount of rock mined in 2017—which included a large amount of development mining in waste rock. The company has since issued a press release correcting the amount reported in 2017, which accidentally included all the rock excavated in previous years. That was a mistake, but not a material one, and not one that unduly benefitted Pretium. Regardless, it’s true that Pretium has mined more than projected in the 2014 feasibility study. Those changes and their reasons (to access more stopes for more flexibility, as above) were announced and are public knowledge.
  • The short sellers constantly reference the 2014 feasibility study as the basis for many calculations and interpretations. But a feasibility study is not a current mine plan and is never intended to be. Detailed engineering is done after publication of a feasibility study (the cost of that engineering is one of the things in the study), and even that always changes once shovels hit dirt. Feasibility studies are just as the name implies: documents that can show a banker or other funder that a project should work. It’s just a theory. Every mine deviates from it in reality. That’s not suspicious; it’s normal. And applying numbers in a study to calculations regarding actual mining conditions can produce a lot of errors. That’s all the more so in cases like this in which the company has already announced major departures from the study, aimed at improving results. In short, pretty much all the math that bulks out the short sellers’ report and makes it look so authoritative can be thrown out.

If Pretium is in trouble, this report doesn’t show it.

That’s enough for me to side with management. But aside from that, consider how many people would have to either be duped or be in on a criminal conspiracy for the short sellers’ claims to be true:

  • The many independent contractors that work with Pretium, and all their technical employees.
  • Pretium’s hundreds of employees who see what’s really going on.
  • The regulators and their inspectors.
  • The financiers and their due diligence teams.
  • The royalty holders and their due diligence teams.
  • The many independent analysts who have visited the mine.
  • The local First Nations bands who are important stakeholders.

It simply makes no sense.

Am I biased? Perhaps, but I have seen dismissal of the Viceroy report from those who do not stand to gain from higher share prices, including geologists who have long been critical of Pretium’s mine plan and an investor who is short Pretium himself (who fears that the Viceroy report will give short sellers a bad name).

This whole thing looks like a classic “short and distort” campaign. Viceroy was already short the stock. Even if others like me debunk all their claims, it won’t matter, because they were able to make a killing on the first day their report hit the market.

What to do?

Should one sell and get out of harm’s way? Maybe. Between this and the potential for lower precious metals prices in the near term, it could be rough going for Pretium shareholders for a while.

But the last time this happened, in the wake of the Strathcona debacle, it turned out to be the best buying opportunity in years. Many of my readers back then made a lot of money buying while the stock was down.

As for myself, if it gets any cheaper, I just might do the same.

For more original research like this, please visit IndependentSpeculator.com and sign up for our free, no-spam email digest.

Lobo Tiggre, aka Louis James, is the founder and CEO of Louis James LLC, and the principal analyst and editor of IndependentSpeculator.com. He researched and recommended speculative opportunities in Casey Research publications from 2004 to 2018, writing under the name “Louis James.” While with Casey Research, he learned the ins and outs of resource speculation from the legendary speculator Doug Casey. A fully transparent, documented, and verifiable track record is a central feature of IndependentSpeculator.com services going forward. Another key feature is that Mr. Tiggre will put his own money into the speculations he writes about, so his readers will always know he has “skin in the game” with them.

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Disclosure:
1) Lobo Tiggre: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Pretium Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This 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 Pretium Resources, a company mentioned in this article.

Charts courtesy of the author.

( Companies Mentioned: PVG:TSX; PVG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/12/case-study-pretium-short-and-distort-attack.html

Jack Chan’s Weekly Precious Metals Market Update

Source: Streetwise Reports   09/11/2018

In his weekly precious metals market update, technical analyst Jack Chan charts the latest moves in the gold and silver markets.


Our proprietary cycle indicator is down.


The gold sector is on a long-term sell signal. Long-term signals can last for months and years and are more suitable for investors.


The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.


Our ratio between gold and gold stocks is on short-term sell signal.


Speculation is now at net short for the first time since 2001.


Silver is now on a long-term sell signal.


SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.


Speculation is at net short again.


Our ratio between gold and stocks is now at the same oversold level as in July 2015, the start of the multimonth bottoming process before the 150%+ rally in early 2016.

Summary
The precious metals sector is now on a long-term sell signal, which is suitable for trading and not for long-term holding. Short-term is on mixed signals. The cycle is down. COT data is at extreme levels, which suggests that a recovery will occur soon. We are looking to exit our long-term positions upon a recovery rally.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

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Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This 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.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/11/jack-chans-weekly-precious-metals-market-update-19.html

Coverage Initiated on Gold-Silver Miner with ‘Significant Upside,’ ‘Compelling Investor Appeal’

Source: Streetwise Reports   09/11/2018

A CIBC report provided the rationale for adding this Canadian company to its covered stocks.

In a Sept. 5 research note, analyst Bryce Adams reported that CIBC initiated coverage on Osisko Mining Inc. (OSK:TSX) with an Outperformer rating and a price target of CA$2.50 per share. The company is currently trading at around CA$2.34 per share.

Adams reviewed the company’s high-quality merits. One, he said, is that the miner’s Windfall project offers “significant upside well beyond the conservative preliminary economic assessment (PEA)” and CIBC’s base case using spot prices, which offers a NAV5% of CA$318 million.

Upside at Windfall could come in the form of grade and/or tonnage, explained Adams, both of which are near-term catalysts. “Our NPV5% would increase by roughly 80% in our upside scenario,” Adams indicated.

The way the grade was estimated in the PEA “limited the area of influence of mineralized intersections.” Thus, the additional infill drilling that now is underway could result in a roughly 15% higher resource grade.

As for tonnage, the use of narrower, less than 3.5 meters wide stopes, which were excluded from the PEA, could “nearly double the mineable resource,” Adams noted. Further, exploration drilling would also likely increase its size.

Along with Windfall’s “significant resource upside potential,” Adams noted, its other “high-quality merits” are the moderate risk associated with it and the company’s strong management team and its chances of being taken out, all of which “offer compelling investor appeal.”

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. 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 company mentioned in this article is a billboard sponsor of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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.

Disclosures from CIBC, Osisko Mining Inc., September 5, 2018

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Osisko Mining Inc. (OSK)

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Osisko Mining Inc. in the next 3 months.

This company is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months.

CIBC World Markets Inc. has managed or co-managed a public offering of securities for this company in the past 12 months.

CIBC World Markets Inc. has received compensation for investment banking services from this company in the past 12 months.

( Companies Mentioned: OSK:TSX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/11/coverage-initiated-on-gold-silver-miner-with-significant-upside-compelling-investor-appeal.html

Kimberlite Intersected on Australia Diamond Project

Source: Streetwise Reports   09/10/2018

This is the first kimberlite discovery in the area in 20 years.

Lithoquest Diamonds Inc. (LDI:TSX.V; CWVWF.OTCPK) announced that the company has intersected kimberlite in the first drill hole at target 1804 on its 100%-owned North Kimberley Diamond Project in Western Australia.

“The discovery of kimberlite during the Company’s first drill program is a significant success given that no discoveries have been made in the area for 20 years,” said Bruce Counts, CEO of Lithoquest. “Results confirm the prospective nature of the North Kimberley Diamond Project and highlight the potential for additional discoveries in the area.”

The company drilled two holes into target 1804, according to the company.

“The first drill hole targeted coincident ground magnetic and gravity anomalies where indicator minerals, including diamonds, were recovered in historical loam samples,” noted the company. “The drill hole was oriented at an azimuth of 114° degrees and inclined at -75°. Extensively clay-altered basalt was intersected from the top of the hole at 5.7 meters to 100.5 meters, followed by kimberlite breccia to 124.3 meters. Immediately following the kimberlite intersection was a carbonatized basalt which grades to a fresh basalt at 138.4 meters. Fresh basalt was present to the end of the hole at 156.6 meters.”

The second hole at 1804 was drilled at an inclination of -50 degrees, and collared 10 meters from the first drill hole along the same 114° azimuth.

“”The second hole encountered sandstone from 6.9 meters to 11.1 meters followed by clay-altered basalt to 61.7 meters and fresh basalt to the end of the hole at 69.1 meters,” stated the company. “The kimberlite breccia is characterized by xenoliths of the local volcanic and sedimentary sequence. The core will be shipped to Canada for detailed observation, laboratory analysis and diamond testing. Diamond results are expected during Q4 of 2018.”

The results from ground geophysical surveys over target 1804 and textures observed in the kimberlite suggest the occurrence is a pipe. But additional drilling and petrographic work will be required to definitively determine the geometry and nature of the body.

No kimberlite was intersected in target 1805, which was also tested with one drill hole during the second phase of drilling. The drilling marks the completion of the current field program and field crews have been demobilized from the property.

“In addition to drilling, the 2018 field program included rock, loam and stream sediment sampling as well as ground geophysical surveys and mapping,” stated the company. “Field samples will be submitted for laboratory analysis with results expected in Q4. The next phase of work will be determined once laboratory results are received and the Company has analyzed the 2018 field data.”

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Disclosure:
1) John McPhaul compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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: Lithoquest Diamonds. Click here for important disclosures about sponsor fees.
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 Lithoquest Diamonds, a company mentioned in this article.

( Companies Mentioned: LDI:TSX.V; CWVWF.OTCPK,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/09/10/kimberlite-intersected-on-australia-diamond-project.html