January 2018

Anaconda Mining Inc (TSX:ANX) – ANX Expands Great Northern Project

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Anaconda Mining Inc. (TSX:ANX) has acquired the Rattling Brook Deposit located in northwest Newfoundland from Kermode Resources Ltd, expanding its Great Northern Project to ~10,000 ha (Figure 1). The company has paid C$25,000 in cash and issued C$500,000 (1,113,218) worth of shares to Kermode, on February 26, 2018 the company will pay an additional C$25,000. The deposit hosts a historical inferred resource estimate of 495,000 oz Au (18.3 million tonnes at 0.84 g/t Au) and is adjacent to the company’s Thor Deposit (Indicated Resource of 83,000 oz Au and Inferred Resource of 31,000 oz Au). Anaconda remains focused on developing Goldboro and extending mine life at Point Rousse, however, believe upside exists at the under-explored Great Northern to expand resources. Based on our preliminary estimates and the recent Goldboro PEA, we believe that at its current market cap (C$47.7 million), investors are either paying for Point Rousse (~value of C$40-50 million based on our preliminary DCF) or Goldboro (~after-tax value of C$61 million, using US$1240/oz Au, and 7% discount rate). Upcoming catalyst include ongoing exploration as well as engineering and development work at Goldboro and increased production and cash flow later in 2018 as mining at Point Rousse moves to the higher-grade Stog’er Tight deposit. In our view, these ongoing catalysts have the ability to cause the market to ascribe a fair value to both projects and re-rate the stock.

Lupaka Gold Corp (TSXV:LPK) – Lupaka Continues to Make Progress at Invicta

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Lupaka Gold Corp. (TSXV:LPK) provided an update regarding operational advancements at its Invicta Gold development project. Rehabilitation, preparation and development work has started and is expected to be completed mid-2018, mobilization is expected to be completed in 2-3 weeks. Road construction is ~20% complete after a brief break over the holidays.

Anaconda Mining Inc (TSX:ANX) – ANX’s Goldboro PEA Returns Good Results While Being Somewhat Conservative

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Anaconda Mining Inc. (TSX:ANX) has announced the results for the Preliminary Economic Assessment (PEA) of its 100% owned Goldboro Gold Project in Nova Scotia, Canada. At a gold price of C$1,550/oz Au ($1,240/oz Au), the project has a pre-tax NPV7% of C$120M with an IRR of 38% and a post-tax NPV7% of C$61M with an IRR of 26%. A total of 375,900 oz Au is planned to be mined by open pit and underground methods over a mine life of 8.8 years with average annual production of 41,770 oz Au.

Monarques Gold Corp. (TSXV:MQR) – MQR Reports First Production Results Since Beaufor Acquisition

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Monarques Gold Corp. (TSXV:MQR) reported FQ2 2018 (quarter-end December 31st) production results from its Beaufor Mine, the first set of production results since acquiring the asset in October 2017. Ore processed was 35,005 tonnes in Q2 2018 with production of 5,444oz Au, a 62% increase over the previous quarter (formerly operated by Richmont Mines Inc.), recording revenue of C$10.3 million.

Northern Vertex Mining Corp. (TSXV:NEE) – NEE to Begin Stacking Ore on Heap Leach Pad Next Week

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Northern Vertex Mining Corp. (TSXV:NEE) has commissioned the Moss Mine crushing plant, with subsequent programming and calibration work to follow, in order to begin first ore stacking on the leach pad by next week. In addition, the company has drawn US$3 million of the US$6 million non-revolving working capital facility with Greenstone Resources II L.P., which will be used for funding for the commissioning of the Moss Mine and exploration including general corporate and working capital requirements.

First Cobalt Corp (TSXV:FCC) – FCC Launches Property Wide 2018 Exploration

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First Cobalt Corp. (TSXV:FCC) has budgeted C$7 million for 26,500m of drilling and exploration throughout the Cobalt Camp, focusing on 13 targets to test the different styles of mineralization and the diverse geological settings realized during 2017 exploration. In Cobalt North area, targets include the pastproducing Drummond, Kerr, Silver Banner, Juno, Silverfields, Hamilton, Ophir, Lawson and Conisil mines where historically cobalt was not an area of focus, rather copper, zinc and lead.