Quebec Precious Metals announces a ‘very promising gold discovery’ in James Bay

Given the current very strong gold price —- any gold juniors that can find gold are sure to do well! One of the most exciting gold juniors in Quebec announced a very promising gold discovery at their 100% owned Sakami Project.

That company is Quebec Precious Metals Corporation (TSXV: CJC | OTCBB: CJCFF | FSE: YXEP) (QPM). QPM is an early stage Canadian junior miner exploring for gold in the James Bay region of Quebec, Canada. QPM holds a prospective and large land package of 1,100 km2 located in the new gold mining camp region of James Bay. Their flagship project is the Sakami Project which allows for all year round drilling and is showing excellent exploration potential for gold.

Quebec Precious Metals projects in James Bay Quebec Canada

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The Sakami Project

The Sakami Project covers 140 square km and lies about 90 km northwest of Newmont Corporation’s Éléonore Mine. QPM’s strategy for 2020 involves a ‘fully funded’ 25,000 meter drill campaign at Sakami and perhaps nearby deposits, culminating in a late 2020/early 2021 maiden resource estimate for the Sakami Project.

The main focus so far at the Sakami Project has been the La Pointe deposit, Simon deposit, and more recently the La Pointe Extension. Results are shown below and some highlights include a very promising recent drill result at La Pointe Extension (see discussion below).

A summary of drill results so far at the Sakami Project (La Pointe and La Pointe Extension)

Source 

The April 21, 2020 announcement by QPM stated:

“La Pointe Extension discovery: 1.15 g/t Au over 80.1 m at Sakami Project, extends deposit 2 km in step-out drilling…….

  • Mineralization is identified to a depth of 215 m, and remains open. True widths are estimated to range from 75% to 90% of the down-hole length;
  • The La Pointe and La Pointe Extension, located in the central portion of the Project, has potential kilometre-scale strike that remain underexplored extensions; and
  • The Simon area with results that include 14.20 g/t Au over 2 m, 5.05 g/t Au over 5.06 m, and 4.66 g/t Au over 3.50 m demonstrates the potential of the Project. It is located 3 km NE and part of a larger 13-kilometre-long mineralized trend.”

A continuous 80.1 meter strike averaging 1.15g/t is very significant due to its length. Furthermore the 2 kilometer extension to the already very promising past discoveries is also highly significant. Furthermore the La Pointe deposit, Simon deposit, and new La Pointe Extension discovery are part of a larger 13-kilometre-long mineralized trend on the Sakami Project. Further drilling will be needed, but if this level of success continues then QPM should be able to announce a very significant maiden gold resource.

CEO of QPM, Normand Champigny, stated:

The discovery of the La Pointe Extension is the most significant development on the Project since the creation of the Company. We look forward to start drilling again and demonstrate the very significant exploration potential of the Project.

QPM will be announcing further assay results in the coming weeks. By June additional drilling will begin and then by late 2020/early 2021 QPM plan to announce a maiden resource estimate for their Sakami Project.

For investors it is reassuring to know that Newmont Corporation is a major share holder in QPM, holding 15.6% of the Company’s shares. Clearly Newmont has a sense that the region is very prospective for gold as they have learned from their nearby Éléonore Mine. Quebec Institutional investors hold 12.9%, and insiders hold 5%.

The QPM stock price has responded to the recent good news with the stock rising 50% from C$0.20 to C$0.30, but still has a market cap of only C$20 million. Analyst’s price target is C$0.55 so clearly they significant potential upside from here.




MI3 Tech Note on Treasury Metals Inc. (TSX: TML | OTCQX: TSRMF)

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on Treasury Metals Inc. (TSX: TML | OTCQX: TSRMF)  for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Treasury Metals Inc.:

  • 1.5 M ounces deposit – Open Pit and Underground Mine at Goliath project in Ontario, Canada
  • Valuation bounced back since COVID-19.
  • Exploration upside with significant expansion potential at depth and along strike.
  • MACD bullish, RSI @ 63,
  • TML traded over 54 Million shares since January 1 between $0.15 and $0.33
  • Support: S2; $0.28   S1; $0.31   Resistance:   R1; $0.35   R2; $0.39 breakout: $0.42

About Treasury Metals

Treasury Metals Inc. is a gold focused exploration and development company with assets in Canada and is listed on the Toronto Stock Exchange (“TSX”) under the symbol “TML” and on the OTCQX® Best Market under the symbol TSRMF. Treasury Metals Inc.’s 100% owned Goliath Gold Project in northwestern Ontario is slated to become one of Canada’s next producing gold mines. With first-rate infrastructure currently in place, Treasury Metals plans on the initial development of an open pit gold mine to feed approximately 2,500 tonne per day processing plant with subsequent underground operations in the latter years of the mine life. The Environmental Assessment has been completed for the Goliath Gold Project, a major step in the permitting process.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.




Canada Silver Cobalt Works announces new name and maiden resource with high-grade silver

Silver prices have recovered ~45% since their low yet they are still about 50% below where they should be. This means silver miners right now represent extraordinary value, and should do well if the current silver price recovery continues as history would suggest is likely.

The gold-silver ratio is near an all-time high and currently at 98.5 to 1. This means gold is today worth a staggering 98.5 times more than silver. History tells us that the gold-silver ratio should be about 50:1. This is based on the 20th century average gold-silver ratio of 47:1. This means that silver is currently extremely undervalued to gold right now. Or put another way, based on the historical rate of 50:1, that would mean silver should be trading at US$ 34.34/oz (US$ 1,717 gold price/50). The current silver price is just US$ 17.45. Silver prices should be almost double based on the historical average gold-silver ratio, or about US$ 34/oz.

Based on the gold to silver historical ratio of 50, silver prices should now be about double

Source & Source

One very promising junior silver and cobalt miner is Canada Silver Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF). The Company is developing three 100% owned, past-producing, high-grade silver-cobalt mines in the prolific Northern Ontario Silver-Cobalt Camp.

Canada Silver Cobalt Works three key historic mines in Northern Ontario, Canada

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The Castle Mine

Canada Silver Cobalt Work’s flagship Castle Mine and 78 sq. km Castle Property features strong exploration upside for silver, cobalt, nickel, gold and copper including exceptionally high grade veins of silver. Canada Silver Cobalt Works released yesterday a strong maiden resource estimate for the Castle East Robinson Zone.

The result was: Zones 1A and 1B have an average silver grade of 8,582 g/t (250.2 oz/ton) in a combined 27,400 tonnes of material for a total of 7,560,200 Inferred ounces of contained silver using a cut-off grade of 258 g/t AgEq. After adding in the lower grade Zone 2A the total is 7,567,000 inferred ounces of contained silver.

Source

Note: High grade is anything above 50 g/t silver (Ag). The above resource average grade was an exceptional 8,582 g/t.

Given the outstanding silver grades and strong maiden resource it helps explain the recent name change from Canada Cobalt Works Inc. to Canada Silver Cobalt Works Inc.

The Castle Property also has some gold potential. The only gold-focused drill hole at Castle East completed in 2019 (CS19-19) cut 4.3 g/t Au over 4 meters and 1.5 g/t Au over 12.5 meters within a 30-meter mineralized zone grading 0.70 g/t Au (vertical depth approximately 240 meters). This broad interval included 1 meter that returned 15.2g/t Au.

Matt Halliday, VP-Exploration, commented:

“We’re excited to continue drilling numerous remaining exploration targets. We’re seeing some phenomenal grades at Castle East, consistent with historical discoveries in the broader district going back to the early 1900’s. We see strong potential to expand and upgrade the known Inferred resource estimate, including higher up in the diabase, given the multiple targets we have.”

Canada Silver Cobalt Works is on track to be a vertically integrated silver producer with very valuable by-products. As well as planned silver production from Castle Mine material and processing of mine tailings, Canada Silver Cobalt Works intend to be a vertical integrated silver producer due to their strategic acquisition of PolyMet Resources Inc.’s Processing Facility located in the nearby town of Cobalt. The company has already demonstrated silver production capability from Castle Mine material with the pouring of silver bars at the PolyMet facility. Added to this is the Company’s proprietary Re-2OX Process that has produced cobalt sulphate exceeding battery industry specifications.

Canada Silver Cobalt Works has a First Nations agreement in place, and permitting is already underway. Other next steps include:

  • Continued exploration for silver, cobalt, gold and other metals in various vein structures at Level 1 underground at Castle Mine as well as surface drilling and a potential ramp in the Castle East Robinson Zone and further surface exploration in the new gold zone 1.5 km east of mine shafts and adit. Only a fraction of Castle East has been drill-tested and it is open in all directions. New drilling has commenced now on this high priority exploration zone.
  • Proceed with assaying, bulk sampling and bullion pouring operations at the newly acquired Temiskaming Testing Labs.
  • Tailings Program –Test work using gravity separation spiral concentrators towards establishing a mill for the processing of 600 tonnes of tailings per day.
  • Continued permitting work for the tailings program, a ramp at Castle East, and for constructing a state-of-the-art 600 t/d gravity, flotation, cyanidation mill.
  • Ongoing metallurgical testing using the proprietary Re-2OX process aimed at producing cobalt, nickel and manganese sulphates for end-buyer evaluation.

Closing remarks

Sometimes the stars all just align and everything comes together in a positive way.

With Canada Silver Cobalt Works we have a low market cap (C$51 million) vertically integrated miner with not one, but three promising projects in Canada with very high silver grades and exploration upside; all when the silver price looks set to surge. The Company also has other high value metals such as cobalt, nickel, gold and copper. The cobalt price is also currently very low with demand expected to surge and lift prices over the next few years as the EV boom takes off.

Investors should definitely have Canada Silver Cobalt Works on their radar as the company continues to progress very well.




John Kontak on West Red Lake Gold Mines and the impact of COVID-19 on Gold Market Sentiment

“The main macroeconomic factors that create a positive global environment (for gold sector) include negative real interest rates, increasing money supply and increasing budget deficits and national debts…in general, it is positive for the gold sector.” States John Kontak, President and Director of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF), in an interview with InvestorIntel’s Tracy Weslosky.

John went on to say that West Red Lake Gold intends to take advantage of the positive gold sentiment and be busy with their property in Red Lake Gold District of Northwest Ontario, Canada. John continued, “We have a high-grade deposit with an inferred resource of 7.57 grams per ton at the Rowan Mine deposit. It is 1.1 million ounces of gold all within 500 meters of surface…with experienced management like ourselves at West Red Lake Gold Mines in well developed mining jurisdiction and mining camp like Red Lake, Ontario – these assets are going to be outperforming over the next two to three years.”

To access the complete interview, click here

Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.




MI3 Tech Note on Cornerstone Capital Resources Inc. (TSXV: CGP)

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on Cornerstone Capital Resources Inc. (TSXV: CGP) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Cornerstone Capital Resources Inc.:

  • Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile.
  • Only 32M shares outstanding
  • CGP own 15% Interest in the Alpala Deposit & almost 9% of SolGold shares own own the other 85% of what is consider to be the biggest Copper-Gold discovery on the planet
  • Alpala deposit updated Mineral Resource Estimate # 3 (MRE#3) reports 2,663 Mt @ 0.53% copper equivalent (CuEq) (containing 9.9 Mt Cu, 21.7 Moz Au, and 92.2 Moz Ag) in the Measured plus Indicated categories, at a 0.21 CuEq cut-off grade.
  • GCP trending higher … RSI at 75 … moving in tandem with Copper price $2.41lbs
  • Support: S2; $3.00   S1; $3.50      Resistance:   R1; $3.75   R2; $4.05

About Cornerstone:

Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including a 22.2% interest in the Cascabel gold-enriched copper porphyry joint venture in north west Ecuador, composed of a 15% direct equity interest in Exploraciones Novomining S.A. (“ENSA), the Ecuadorian company that holds title to the Cascabel concession, financed by joint venture partner and project operator SolGold Plc through to completion of a feasibility study and repayable at Libor plus 2% out of 90% of Cornerstone’s 15% share of earnings or dividends from an operation at Cascabel, plus 8.5% of the shares of SolGold.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.




Harte Gold – The good and the bad news with this great potential high-grade gold producer

Investors patience has definitely been tested with the slow ramp and high AISCs of gold production from January 2019 until now, and again recently with the COVID-19 mine closure since the end of March 2020.

Harte Gold Corp. (TSX: HRT) is a relatively new gold producer with its primary focus on its 100% owned Sugar Zone property 24 km north of White River, Ontario, Canada. Exploration on the Sugar Zone property includes 83,850 hectares encompassing a significant greenstone belt with a 35 kilometre strike length.

The property has huge exploration upside with ~90% yet to be explored. The 10% explored has already found 1.67 million gold ounces in the Indicated and Inferred categories. Harte Gold’s Sugar Zone property has a M&I Resource estimate of 1.1 Moz contained Au @ 8.1 g/t, and Inferred Resource of 558 koz contained Au @ 5.8 g/t.

Gold production began in January 2019 but there has been some ramp up problems resulting in lower production and higher costs, which helps explain the current low stock price.

The Good news

The good news for Harte Gold right now is the high gold prices, especially when converted to CAD. In fact gold is currently trading at USD 1,728, which equates to CAD 2,410. The CAD gold price is up 41.09% over the past one year.

USD gold price (now US$1,728) and CAD gold price (now $2,410) 1 year price chart

The other good news is that Harte’s gold production (prior to the COVID-19 stoppage) was trending higher. Gold production for the three months ended March 31, 2020 (“Q1”) totaled 8,597 ounces, the highest quarterly production result to-date. Q1 production was 7% higher than Q4, 2019, and 42% higher than Q3 2019. Once back into full production the mine should be on track for a minimum run rate of 35,000 ounces pa, which should ramp steadily towards a 60,000 ounces pa run rate in 2021.

Combine rising gold production, reducing AISC’s and we should start to see some profits later in 2020 or early 2021, assuming gold prices hold, and the mine reopens soon. As economies of scale kick in 2021 should be a significantly better year for Harte Gold.

Other good news was the December 2019 discovery of high grade gold that showed initial sampling returned grades of up to 247 g/t. This potential new high grade gold zone (the TT8 Discovery) is approximately 17 km southeast of the Sugar Zone Mine in an area previously mapped by OGS geologists as granite and not known to host gold mineralization. The TT8 Discovery is believed to be an extension of an existing known greenstone belt to the east. The Company reported that “17 chip samples across a 40 metre strike extent have returned gold values from 11.1 g/t to 247.0 g/t Au.”

Q1 2020 performance – Increased gold production, reduced costs, improved grades

The bad news

The bad news for investors is that the stock price has fallen over the past year as the company has struggled to yet meet previous Feasibility Study targets for production and costs. AISCs in Q1 were still too high at USD 1,951/oz, despite falling 20% YoY (and 4% QoQ). Production whilst improving is well below the previous 60,000 ounces pa target.

The other bad news is the mine had to close due to COVID-19 at the end of March 2020. This will mean Q2 production will be negatively impacted. Harte Gold has stated:

“The Company is in constant review of the situation and will make a decision on restart in due course. Detailed planning is underway that will allow the Company to mobilize and resume operations in an efficient manner once the decision to restart is made. Higher grade stope material expected later this year should have a positive impact on gold production. Further guidance will be provided once detailed planning is complete.”

Wrap up

Investors patience has definitely been tested with the slow ramp and high AISCs of gold production from January 2019 until now, and again recently with the COVID-19 mine closure since the end of March 2020. The May 2020 announcement that BNP Paribas has agreed to defer debt payments removes any short-term liquidity concerns.

Despite a very testing start the fact remains the Sugar Mine and property has enormous potential. Grades are improving and get higher as they go deeper, with the average grade of the M&I Resource at 8.1 g/t, compared to the Q1 2020 mined grades of 5.5 g/t. Put another way, grades should steadily improve another 47% only to reach the average 8.1 g/t level. Combine this increased grade over the next few years with growing production to meet the mill’s capacity of 60,000 ounces pa, then AISCs should have dropped very significantly towards the forecast AISC of US$845 in the April 2019 Feasibility Study. The December 2019 new high-grade gold discovery reminds investors again of the huge exploration potential across the vast 83,850 hectares Sugar Zone Property.

It appears that investors will still need some more patience in 2020; however with an experienced new management and operations team Q1 2020 has shown they are slowly turning things around. Q2 results will be poor due to the COVID-19 shutdown, but H2 2020, and 2021 should see great improvements.




MI3 Tech Note on Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF)

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open yesterday on Troilus Gold Corp. (TSX: TLG | OTCQB: CHXMF) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Troilus Gold Corp.:

  • Past-producing gold and copper mine located northeast of the Val-d’Or district in Quebec, Canada.
  • Production infrastructure in place, includes an extensive network of roads, sub-station and power lines, permitted tailings facility and an operational water treatment facility.
  • April 28, 2020 News Release: Troilus Becomes Largest Claim Holder in Frôtet-Evans Greenstone Belt; Expands Land Position by More than 67,000 Hectares — click here
  • April 21, 2020 News Release: Troilus Intersects 1.56g/t AuEq over 73 Metres in Southwest Zone Representing One of the Best Results Ever on the Troilus Property — click here
  • Great rebound from $0.415 to almost the high of the year (last July at $0.90)
  • TLG traded over 17 Million shares over the last three months between $0.57 & $0.88
  • Support: S2; $0.75    S1; $0.80   Resistance:   R1; $0.90   R2; $0.97 next target!

About Troilus Gold Corp.

Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine. The 16,000-hectare Troilus property is located northeast of Chibougamau, within the Frotêt-Evans Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.