Impact: Positive On November 28th, we hosted a live webinar with Nick Mather, CEO of SolGold. The full replay is available online (click here replay), and our key takeaways were that Alpala could get bigger, operating costs could be better than expected and that there is expected to be lots of newsflow in 2019. The call confirmed our view that Alpala is a world-class copper-gold deposit and that its scale, grade (Figure 1) and continued growth potential puts it at the top of the shopping list for most major mining companies.
Impact: Mildly Positive NxGold’s exploration update provides highlights the increasing importance of the more traditional hard rock targets at its Mt. Roe Project in Australia. This exploration update along with our recent site visit supports our view that NxGold has the potential to make both a traditional hard rock gold discovery and a conglomerate gold discovery at its Mt. Roe project.
Impact: Positive Nicola has significantly de-risked its balance sheet with the full repayment of Senior Secured Debt owed to Waterton allowing the company to focus on its ongoing exploration efforts. We continue to view Nicola as a high-potential copper exploration story and await results from diamond drilling of the mineralized halo surrounding the existing pit and previously identified porphyry targets.
Impact: Mildly Positive Mawson has announced geophysical survey results at its Raja prospect, which have highlighted the potential doubling of its mineralized footprint. These results as well as exploration to date continue to support our thesis that the Rompas-Rajapalot project hosts a sizeable high-grade mineralized system in a tier one mining jurisdiction.
Impact: Mildly Positive SolGold has announced that Newcrest Mining has exercised its top-up rights, to maintain 13.7% ownership in the company (Figure 1), which follows a strategic investment by BHP and a significant increase in the resource at the company’s flagship Cascabel project. This update aligns with our view that Alpala, within the wider Cascabel project, is a world-class deposit with scale potential that separates it from the pack and is receiving ongoing interest from majors. We highlight that we will be hosting a live webinar with Nick Mather, CEO of SolGold, on Wednesday, November 28th.
Impact: Positive Tinka’s successful drilling program over 2018 has resulted in a positive resource update, ahead of the company’s plans to publish a maiden PEA by H1 2019. We believe that Ayawilca has reached the required critical mass to garner significant interest from base metal mid-tier producers looking to replenish production pipelines. With Ayawilca already on producers’ radar, we expect the upcoming maiden PEA to demonstrate to the market and producers that Tinka has a high-margin economic project with exploration upside.
Impact: Positive Bonterra has provided an exploration update on its Gladiator deposit following its Duke JV, where the company highlighted two new zones along strike from the current deposit. Results support our theory of a large high-grade system at Gladiator, which underpins the company’s ~190koz/year production potential by 2020E, with the addition of the nearby Moroy and Barry deposits.
Impact: Positive SolGold has exceeded expectations with its recent resource update for its Alpala deposit in Ecuador. The expansion of the high-grade core has exceeded our previous estimates, resulting in an increase to our NAVPS estimate. This resource update paves the way for company to publish initial economics on this world class project in early 2019E. We continue to view Alpala and the wider Cascabel project as a world-class deposit with scale potential that separates it from the pack.
Impact: MilldlyPositive Successful ore sorting of bulk samples at Novo’s Karratha Project should benefit grade definition efforts and long-term project economics. Using a new supplier, the company has re-tested ore sorting technology, with initial results suggesting exceptional mass pull (~0.3%). This has positive implications for both ongoing grade definition efforts, as it could make assaying larger samples simpler and has the likely benefit of simplifying mining at Karratha, by eliminating the need for selective open-pit methods, on the narrow gold-bearing conglomerate zones.
Impact: Positive GT Gold has announced results from two step-out holes drilled to the southeast and northeast, which intersected wide zones of Au-Cu mineralization and has expanded the mineralized envelope in both directions and at depth. These results demonstrate the size and grade potential of Saddle North and support our view that the company has made a significant porphyry discovery.