Impact: Positive First Cobalt released the results of an updated mineral resource estimate for its recently acquired Iron Creek Project in Idaho. We view the resource positively, as it delivers a 277% increase in tonnes (underground scenario) over the historic resource with 10,800m of drilling and starts the companies transition from explorer to developer, making it easier for investors to value to the company.
Impact: Positive The gold mining industry is notorious for dilutive mergers and destroying shareholder value. However, (too) rarely, a transaction occurs which actually makes complete and obvious sense and creates synergistic value. We believe that the merger of Bonterra and Metanor is one of those smart transactions and that “New” Bonterra will be a very attractive investment vehicle with plenty of news flow to attract attention from the market. We also expect the deal digestion to be relatively short and painless given the low complexity of the assets and obvious synergies between the two companies as detailed in this report. Another plus is that we estimate that the new company trades at a substantial discount to its peers as well.
Honey Badger Exploration Inc (TSXV:TUF) – Results Continue to Suggest this Could be Another Cobalt Camp
Impact: Positive Honey Badger announced additional exploration results from its Thunder Bay Silver-Cobalt project, which with splashy grades support our thesis that the company could be onto a “Cobalt Camp” scale project.
Impact: Positive Last week we visited Callinex Mines’ Nash Creek and Superjack properties in the Bathurst Mining Camp of New Brunswick, Canada. The highlight of the week’s visit was a combination of both the extensive mining infrastructure in the historic camp and the largely untapped mineral potential of Callinex’s 155km2 Nash Creek property.
Impact: Positive Pacton Gold has announced a binding LOI for the acquisition of another project in the Egina region of the Pilbara, which we view positively. The Golden Palms property adjoins Pacton’s Friendly Creek project adding 35 k𝑚2 to its growing land package in the Pilbara.
Impact: Positive Nicola Mining has announced the intersection of 73.6m grading 1.05% Cu, within a wider interval of 150m grading 0.54% Cu (CC-18-02) ~100m north of the historic Craigmont open pit, within the company’s active Mine Permit M-68.
Monarques Gold Corp. (TSXV:MQR) – Monarques Highlights FS Changes That Should Improve Wasamac Economics
Impact: Mildly Positive Monarques Gold has provided the initial parameters for the ongoing feasibility study (FS) on its Wasamac gold property in Quebec, which the company expects to complete by December 2018.
Impact: Positive Lupaka Gold has announced assay results from the ongoing underground channel sampling program from the new development headings on the 3400 level and 3430 sublevel at the company’s Invicta Project in Peru.
Impact: Positive Based on peers in the Cobalt Camp, we believe Brixton remains undervalued based on these assets alone. The company has demonstrated an ability to acquire prospective, undervalued assets and is working to surface value on all four its projects. In our view, continued exploration success in the Cobalt camp, along with planned work at the company’s other properties, should benefit shareholders through Brixton.
Impact: Mildly Positive Novo Resources has announced that it has entered into two property transactions in the Egina region of Western Australia, expanding its dominant land position, and bringing a new conglomerate are within the Pilbara into focus.