Jay Currie’s Motherlode: Newlox Gold, Eloro Resources & Labrador Iron Ore Royalty

This is a casual column. It is not investment advice. It is about what I have “eyes on” weekly. You might want to take a look. Assume I am invested or would like to be invested in any company I mention. Do your own due diligence and get advice from an investment professional.

Newlox Gold Ventures Corp.

Artisanal gold mining is a huge business. An estimated 20% of worldwide gold production comes from this sector. Unfortunately, many artisanal operations use mercury to recover the gold. This leads to toxic tailings piles all over the world.

When he was going to university doing environmental studies, Ryan Jackson, the young CEO of Newlox Gold Ventures Corp. (CSE: LUX), spent part of a year in Costa Rica as an intern for a mining company. He met the artisanal miners and saw piles of tailings. He arranged for some samples from the tailings piles to be assayed and saw there was still a lot of gold left to be recovered.

Working with mining engineers at UBC, Ryan came up with a small scale, low CAPEX, tailings reprocessing plant. 80 tonnes a day of material and, fully optimized, over 90% recovery of the gold present. The tailings run a minimum of 9 grams per ton. The artisanal miners are paid for their tailings but there is a significant margin left for Newlox. Plus, once processed, the tailings cease to be toxic.

Newlox was blown a little off course by COVID but its first plant is now back online. Small scale, but, at full production, that’s 80 tons a day of 9 gpt rock with a 90% recovery for 4.5KG of gold per week. At current prices that is about US$250,000 per week. Newlox is en route to making $1,000,000 gross a month on what looks to be a $2 million CAPEX.

Newlox is also getting ready to commission a second plant which will operate as a mercury-free, toll milling, facility for a community of artisanal miners also in Costa Rica.

Newlox is producing gold right now but the market is not yet acknowledging that production. When it does, Newlox will be re-rated and it will be rerated again as its second facility comes online.

Eloro Resources Ltd.

Tom Larsen, CEO of Eloro Resources Ltd. (TSXV: ELO | OTCQX: ELRRF) had a problem a couple of years ago. Work on the company’s gold-silver property in Peru was progressing slowly because of the need to get “community” support for the project. This would happen, but it was taking a while. Tom looked for other projects and his go-to South American geologist, Osvaldo Arce knew of a potential project in Bolivia.

Iska Iska is a privately held large property which already hosted a producing tin mine. But the geology suggested there was a much larger, polymetallic, set of structures with really significant potential tonnages. Iska Iska is located in Bolivia’s prolific South Mineral Belt which includes world-class deposits as Chorolque, Tasna, Choroma, Siete Suvyos and San Vicente.

Eloro began mapping, sampling and drilling and, in the Fall of 2020, announced that it had located not one but two breccia pipes hosting high-grade silver, gold, lead, zinc and copper mineralization. The stock, which had been trading at under $1.00 took off. It didn’t hurt that star geologist, Quinton Hennigh had signed on as the Senior Technical Adviser. The stock ran to over $5.00 and I missed the run completely.

The key thing about Iska Iska is that it has two major breccia pipes with the potential for more. These pipes are large – 400 meters across – and potentially hosts to bulk tonnages of material. At depth, there are significant tin showings leading the company to comment, “Eloro considers that this style of mineralization is more closely aligned with large tin porphyries in the region and that a similar porphyry potentially underlies the CBP and perhaps more of the Iska Iska project area.”

My takeaway is that Iska Iska is potentially a huge polymetallic deposit which is only going to get more valuable as it is defined by Eloro’s aggressive drilling program. I have bought shares on the recent dip and I also have exposure through another Tom Larsen company, Cartier Iron which holds a little over 2 million shares of Eloro. Cartier trades around $0.15 for a market cap of $10 million. If Eloro trades at $4.00, Cartier’s shares are worth $8 million. Something to think about.

Labrador Iron Ore Royalty Corporation

Every so often you make a bit of money on a junior trade. Most of the time you need that money or have another junior to buy, but there is virtue in putting a bit of your profit into a less volatile investment. The problem being that current interest rates make that very unattractive. So, I went scouting.

I found Labrador Iron Ore Royalty Corporation (TSX: LIF). At the time I bought it TMX-Money reported the yield was 19.2%. What??  Well, TMX was actually wrong, at $1.00 per quarter, the yield is actually a very respectable 10.47%.

LIF is a royalty company which has a 7% royalty and $0.10 per ton commission on every ton of iron ore produced by the Iron Ore Company of Canada (IOC). It also owns 15% of IOC. Its very distinguished Board of Directors has a general policy of paying out 99% of the company’s income in dividends.

IOC is running smoothly and while I don’t anticipate big capital gains with LIF, the worldwide iron ore market is firming…something else to think about.




Drolet Stock Note: Newlox Gold Ventures Corp. – Developing Costa Rican gold projects by recovering precious metals from mining waste

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released his Stock Notes on Newlox Gold Ventures Corp. (CSE: LUX) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Newlox Gold Ventures Corp.:

  • Profitable Gold Recovery Through Environmental Remediation in Costa Rica.
  • Developing gold projects through precious metals recovery from mining waste.
  • Newlox has completed the design & construction of its first 80 tonnes per day processing facility in Costa Rica. Construction is complete, with all significant CAPEX invested, and final ramp-up and optimization is underway.
  • LUX surge in July … having traded over 12 Million shares between $0.05 & $0.145
  • Support: S2; $0.085    S1; $0.125   Resistance:   R1; $0.145     R2; $0.175

About Newlox Gold Ventures Corp.

Newlox Gold Ventures Corp. is an environmental remediation company recovering contaminants and residual precious metals from historical waste left behind over more than a century of inefficient artisanal and small-scale mining in politically and socially stable jurisdictions in Latin America.

The Newlox environmentally and socially responsible business model has been deployed after extensive experience in the region and with the help of the Company’s technical advisors at the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia (“UBC”) which, provides the Company with unique advantages, such as not having to undertake exploration work or mining, resulting in dramatically reduced overall costs.

Newlox also benefits from the high grades characteristic of artisanal mine tailings due to the inefficient processing techniques used by the original miners.

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 report.