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1. Gold has traded between $1,492 and $1,511 so far today…as of 7:00 am Pacific, bullion is off $10 an ounce at $1,495…2 of the biggest Gold purchasers this year – Russia and China – have bought a total of 251 tonnes of the yellow metal combined…China has added 106 tonnes of Gold to its official reserves so far this year while Russia has acquired an additional 145 tonnes…globally, central banks around the world have added more than 500 tonnes of Gold to their reserves through September, which puts 2019 on track to become another record year for central bank Gold buying…the biggest buyers aside from China and Russia have been Turkey, Poland and Kazakhstan…Silver has slipped 27 cents to $17.43…Nickel has climbed 8 cents to $8.08…Copper is 3 cents higher at $2.58 while Zinc has added 4 pennies to $1.08…Crude Oil has gained 69 cents a barrel to $53.28 despite the fact that OPEC has trimmed its forecast for Oil demand growth for the 3rd month in a row, citing weaker-than-expected data in the Asia Pacific region as well as advanced economies in the Americas…the move is likely to add to growing pressure on the Middle East-dominated group to impose a deeper round of production cuts at its December meeting…in a closely-watched monthly report, OPEC cut its forecast for global Oil demand growth for the remainder of this year to 0.98 million barrels per day (b/d)…that’s down 40,000 b/d from its September estimate…
2. The prolific and under-explored Eskay Camp is capable of all sorts of geological surprises…an extensive field program carried out at Crystal Lake’s (CLM, TSX-V) Chachi Corridor, where there has been major glacial retreat, has revealed an entirely new multi-element hydrothermal system (including Nickel) over an area 8 km long x 4 km wide east of the Newmont Lake Gold Corridor…at least 3 different styles of mineralization have been confirmed through assays from surface samples (in-situ grab and chip samples) at multiple occurrences…assays ranged up to 21 g/t Au, 2,350 g/t Silver, 5.4% Copper, 7.7% Nickel, 0.85% Cobalt, 15.2% Zinc and 6.2% Lead…mineralization runs along the eastern side of the McLymont Fault and is coincident with a large geochemical anomaly, a continuous >2 km-long chargeability IP anomaly and an aeromagnetic anomaly entered on a major fault system associated with high-grade Gold mineralization to the southwest…Mars Napoli, President and CEO, commented, “The presence of high-grade VMS style and Ni-Co-Cu arsenide mineral occurrences highlights the potential for the discovery of base metal deposits along this richly endowed metal corridor”…CLM is the early volume leader on the Venture, up 4.5 cents at 21 cents as of 7:00 am Pacific…
3. Great Bear Resources (GBR, TSX-V) has released more results from its continuing 90,000-m drill program at its 100%-owned Dixie Project in the Red Lake district…drill hole BR-043, located between the Bear-Rimini and Yuma sub-zones, intersected multiple Gold intervals along 253.9 m of core length including 125 m of 1.08 g/t…drill hole BR-035, located between the Auro and Yuma sub-zones, also cut multiple Gold intervals including 15 g/t over 2.5 m within a broader interval of 26 m of 2.5 g/t…Chris Taylor, President and CEO of Great Bear, stated, “In a district where Gold is usually mined from discontinuous veins averaging a few metres in width, often at kilometre-scale depths, the near-surface, multi-kilometre extent of our LP Fault discovery instead resembles other Archean-age Gold deposits across Ontario and Quebec. We continue to intersect high-grade Gold intervals with comparable widths and grades to what have been mined at the major high-grade deposits in Red Lake, however these occur within wide envelopes of moderate to low grade Gold mineralization, which we observe projecting to surface. During September and October, mapping crews discovered outcrop exposures of our felsic target geology, similar to what we’re drilling from Bear-Rimini to Auro, along approximately 15 km of strike length. We have also now drilled the same units 1 km to the southeast of the Auro zone, with assays pending, and through examination of historical drill core we see that Noranda in 1993, drilled similar rocks 8 km to the southeast of the Auro zone”…
4. Gran Colombia Gold (GCM, TSX), one of the top-performing Gold stocks this year, produced a total of 19,395 ounces of Gold in September, bringing the total for the 3rd quarter to 56,271 ounces…for the 1st 9 months of 2019, the company has churned out 174,754 ounces, up 7% over the first 9 months last year…CEO Lombardo Paredes commented, “Our 3rd quarter production continued to be steady as we incorporated our expanded plant capacity at Maria Dama and opened up new areas within our company mines through our ongoing development programs at Segovia. Based on our results to date, and expectations for the remainder of the year, we remain well positioned to meet our full year production guidance of between 225,000 and 240,000 ounces for 2019. Our solid operating performance and better spot Gold prices in the 3rd quarter of 2019 positively impacted our free cash flow and balance sheet, raising our cash balance at the end of September to $63 million (U.S.), up from $51 million at the end of the 2nd quarter. The aggregate principal amount of our Gold Notes outstanding decreased to $73.6 million (U.S.) at the end of September and we have $20 million (CDN) of convertible debentures currently outstanding”…
5. The Dow, trying to snap a 3-week losing skid, is up 135 points as of 7:00 am Pacific while the TSX has gained 21 points…futures were volatile overnight with investors’ heads spinning due to conflicting headlines regarding U.S.-China trade talks…Fidelity Investments has eliminated trading commissions on its online brokerage, matching a step some of its biggest rivals unveiled last week…beginning this morning, Fidelity stopped charging individual investors commissions on online trades of U.S. stocks, exchange-traded funds and options trades…for investment advisers, commissions will be cut to zero by early November…Fidelity’s online brokerage has 21.8 million accounts…New Gold (NGD, TSX) has reported Q3 production of 129,000 Gold equivalent ounces (91,000 ounces of Gold, 168,000 ounces of Silver and 20.1 million pounds of Copper)…2019 production now sits at 384,000 Gold equivalent ounces and is on track to meet annual guidance of 465,000 to 520,000…high-grade producer Ero Copper (ERO, TSX) has reported a 106% increase in Proven and Probable mineral reserves to approximately 38 million tonnes and a 69% increase in Measured and Indicated resources to approximately 72 million tonnes…the Venture is off 1 point a 552…Discovery Metals (DSV, TSX-V) has been halted pre-market, pending news…cannabis stocks are under renewed pressure with the Canadian Marijuana Index down sharply in early trading…since recreational cannabis became legal on October 17, 2018, the shares of what were then the 10 largest Canadian cannabis producers by market capitalization have been bludgeoned, yielding an average negative return of more than 57% for investors…
6. Marijuana stocks have taken a tumble from their highs a year ago, and the skid isn’t just spooking investors…earlier this week, MedMen Enterprises (MMEN, CSE)- a seller of legal cannabis in California and 11 other states – announced they were backing out of a blockbuster deal to buy PharmaCann, a Chicago-based marijuana company that has operations in 8 states…in its announcement, MedMen, which is based in Los Angeles, cited the steep pullback in U.S. and Canadian cannabis stocks this year…it noted the Horizons Marijuana Life Sciences Index, a Canadian exchange-traded fund that tracks cannabis stocks, is down 47% since March…MedMen closed yesterday at $1.85, which is a steep decline from its 52-week high of $7.57...“The underperformance has made it increasingly more critical to allocate capital efficiently, given the current industry headwinds,” MedMen said in a news release…the company also said it intends to focus on building its retail brand and online business…in exchange for forgiving some debt, MedMen is taking certain cannabis licenses and other assets in Illinois and Virginia from PharmaCann…“Looking at the PharmaCann portfolio today, Illinois has emerged as the most attractive opportunity for our longer-term, strategic growth plan,” said Adam Bierman, MedMen co-founder and CEO…“The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current macro-environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our company’s reach”…Medmen still has access to $170 million (U.S.) of capital as it works towards profitability…however, the company does not expect to break even on adjusted EBITDA until the end of calendar 2020…
7. 19% of mines run 100% over budget due to unrealistic feasibility studies, according to consulting firm McKinsey & Company…McKinsey classified mines that were 15% to 100% over-budget as project disasters, and mines 100% over-budget were corporate disasters….only 20% of mines surveyed actually came in at or under budget…McKinsey blames the feasibility study process, which “lacks rigor. Many mining executives still rely on the same FS processes they did years ago, when resources were more accessible and projects less risky to plan and execute,” said the study’s authors…“That’s a problem because today’s projects are becoming larger, more complex, and often more remotely located—making them more susceptible to cost overruns.”…feasibility studies could be improved with better and more comprehensive data…“While some standards exist for resource estimation and reporting at FS stage, companies have few benchmarks to go by for a wide swath of other elements, such as engineering definition, execution and operational readiness, business objectives, or commodity price predictions – all of which can change a project calculus significantly. Other culprits driving up costs are sub-par management practices, lack of proper contractor incentives and poor familiarity with the current state of technology”…McKinsey said old methodologies no longer suffice when only a fifth of mines built meet their predicted financial returns….fixing the feasibility problem could be an economic win with McKinsey estimating that a change could be worth over $100 billion to the mining and metals project industry over coming 5 years…
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BMR Team, how soon do you think we will hear from Steve/GGI?
Comment by Danny — October 10, 2019 @ 12:37 pm
I think very soon, Danny…sort of overdue, actually, can’t imagine it won’t be within a few trading days from now…
Comment by Jon - BMR — October 10, 2019 @ 2:30 pm
News just out (finally) from Canada Cobalt, but definitely worth the wait – blockbuster deal is a game-changer for CCW…will elaborate on in detail in a separate post later this afternoon/early evening…
CANADA COBALT SIGNS BINDING LOI TO ACQUIRE STRATEGIC ASSETS
COQUITLAM, BC, Oct. 10, 2019 /CNW/ – Canada Cobalt Works Inc. (TSXV: CCW) (OTC: CCWOF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to announce that the Company has signed a binding Letter of Intent (the “Transaction”) to acquire the assets of PolyMet Resources Inc. (“PolyMet”), owner of PolyMet Labs (ISO certified) and the Northern Ontario Silver-Cobalt Camp’s only permitted and operating mineral and precious metal processing facility.
The Transaction, consummated at a strategic time in the precious metals cycle, provides Canada Cobalt with multiple immediate and long-term advantages including a high capacity bullion melting furnace to pour payable silver and gold dore bars. The 23,400 sq. foot facility with district leading sampling and analytical capabilities can also host the Company’s proprietary Re-2OX Process for environmentally friendly extraction of cobalt, precious and base metals.
Highlights:
– The lab and mineral processing facility will become the new headquarters of Canada Cobalt and is located in the town of Cobalt, immediately adjacent to a rail line and just a short distance from the Company’s Castle mine and Beaver Property;
– This well-established sampling and analytical facility, specializing in high-grade mineralization, provides commercial assaying, crushing, screening, grinding, bulk sampling, upgrading and smelting services all in one location, driving multiple revenue streams at a time when gold prices in Canadian dollars have hit new record highs. PolyMet has demonstrated that in an 8-hour shift it can pour up to 10 dore silver bars of 1,000 ounces each (90% to 95% fine);
– PolyMet is currently making inroads into the potentially lucrative e-waste business that can be leveraged through Canada Cobalt, its extensive relationships and its Re-2OX Process. Material from mixed computer boards is being processed through the facility’s shredder and ball mill to recover precious and base metals.
Mr. Frank Basa, President and CEO of Canada Cobalt, stated: “This deal builds dramatically on Canada Cobalt’s current competitive advantages and opportunities – technological, on the ground and underground – in a rejuvenated silver-cobalt district recognized as the birthplace of Canadian hard rock mining. With such a unique and fully operational facility in the town of Cobalt, so close to the Castle mine and other properties, Canada Cobalt achieves a key goal of becoming a vertically integrated leader in Canada’s silver-cobalt heartland while it also exploits a powerful new cycle in precious metals.”
Mr. Gino Chitaroni, majority owner of PolyMet Resources Inc., commented: “We see some really exciting synergies here. Canada Cobalt’s track record of success in this district made them the perfect fit to take the PolyMet Lab and facility to the next level while I remain involved to assist Canada Cobalt from an operational standpoint.
“We appear to have entered a dynamic new cycle for silver and gold, which could really help to ignite this business in terms of its traditional drivers, while we’re seeing exciting new opportunities in the e-waste sector that can be more fully exploited through this Transaction,” Chitaroni continued. “Bullion pouring, bulk sampling, commercial assaying and e-waste are PolyMet’s four key immediate profit centers that merge with Canada Cobalt, creating powerful new synergies. Hosting Re-2OX and accelerating the development of such a unique and environmentally friendly process at this facility is a major coup for the town of Cobalt and the broader district.”
Terms of the Transaction
Canada Cobalt and PolyMet have executed a binding Letter of Intent whereby PolyMet has agreed to sell 100% of its assets, including but not limited to the property, the plant and the equipment, all located at 1 Presley Street in Cobalt, Ontario, for total consideration of $650,000 (cash and shares of Canada Cobalt). Also included in the assets are all of the issued and outstanding shares of PolyMet.
The cash portion of the Transaction is $333,000 while Canada Cobalt will issue to PolyMet 932,353 shares at 34 cents per share for the remaining $317,000, payable upon completion of a due diligence review period not to exceed 90 days. During this due diligence review, PolyMet will make available to Canada Cobalt all environmental and title documents, maps, logs, books, papers, technical data and other pertinent documents related to the assets.
Current PolyMet personnel, including Mr. Chitaroni, will be retained on contracts with share-based incentive clauses related to certain business milestones over the next 12 months. Facility upgrades combined with an aggressive sales strategy are expected to help achieve a significant ramp-up in growth and profitability. These initiatives will be funded by revenues and an approximate $250,000 investment by Canada Cobalt over the next six months.
The Canada Cobalt-PolyMet Transaction is subject to TSX Venture Exchange approval.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
About Canada Cobalt Works Inc.
Canada Cobalt has 100% ownership of the Castle mine and the 78 sq. km Castle Property with strong exploration upside in the prolific past producing Gowganda high-grade Silver Camp of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Cobalt is strategically positioned to become a vertically integrated North American leader in cobalt extraction and recovery while it also exploits a powerful new silver-gold market cycle.
“Frank J. Basa”
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2019/10/c2944.html
Contact:
Comment by Jon - BMR — October 10, 2019 @ 2:34 pm
This is big–CCW just became a producer.
Comment by AFchief — October 10, 2019 @ 2:35 pm
CCW: Well they have put their stake in the ground with this move – set up as “one stop shop” in the area with a nice array of offerings including production capability. Well positioned as a leader in the area. Can really see where this is headed now. Wow!
Comment by Foz1971 — October 10, 2019 @ 2:37 pm
The King of Cobalt joins the winning team and CCW picks up some fabulous assets for pennies on the dollar…they’ll be pouring Silver from here almost faster than you can say “Happy Thanksgiving”…and it’s a home for the Re-2OX Process…amazing deal cut at the perfect time in the market cycle, just like when Basa got the Castle mine for $25,000…
Comment by Jon - BMR — October 10, 2019 @ 2:40 pm
I agree Jon, I was very impressed by the price paid. It’s like PolyMet’s Chitaroni just verified where this is going by jumping on board with 900K shares…
Comment by AFchief — October 10, 2019 @ 3:01 pm
I want ggi news…
Comment by Mack — October 10, 2019 @ 3:22 pm
I like this move by Basa…a foundationary step…
Comment by Jean — October 10, 2019 @ 3:47 pm
What a great Thanksgiving present from CCW . Have a great weekend all!
Comment by donald — October 10, 2019 @ 6:08 pm
How about a GGI Thanksgiving gift?
Comment by Jean — October 10, 2019 @ 6:22 pm
BMR team, seriously, been following ggi this year now and own shares. They seem to be late every time but much better than last year. Any comment on next NR as asked by other folks?
Comment by Mrs. Sarah — October 10, 2019 @ 8:10 pm
Great news for CCW. Is the ongoing PP price protected? Do they still have to get a trailing permit, if it is done off site now? Do they have to start from scratch for a different type of permit?
Comment by Don — October 11, 2019 @ 6:00 am
frank confirms in an email that GGM will have access to the polymet processing plant too. anyone care to share their thoughts?
Comment by marc — October 11, 2019 @ 3:19 pm
Of course GGM will have access, Marc – paying customers get access. Lots of opportunties to build business at this facility from companies throughout the area – assaying, bulk sampling, bullion pouring, etc…the Quebec border is very close to Cobalt…
Comment by Jon - BMR — October 11, 2019 @ 3:24 pm