Impact: Positive Minera Alamos has received technical approval for the change of land use permit by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT), which should pave the way for full approval in Q3/19. This in turn would allow construction to start shortly thereafter once funding is in place (expected in Q4/19). Minera Alamos’ combination of quick to production, low-capex projects in Mexico, together with a management team that has done it before, has the company well positioned to be the next production growth story that should rerate as management achieve respective growth milestones.
Impact: Positive RNC has announced a positive resource update for the Western Flanks Zone which is larger than we anticipated (especially when A zone is still pending). We believe the resource update demonstrates Beta Hunt’s steady-state production potential and is another step towards the company becoming a +100koz/year producer as early as 2021.
Impact: Mildly Positive Fission 3.0 has announced first pass drill result from its Cree Bay uranium exploration property in the Athabasca Basin of Saskatchewan, Canada. As highlighted in our recent uranium report, we believe Fission 3.0 provides excellent exposure to a potential uranium discovery in Canada. Management has a track record of discovery and the company as a portfolio of prospective properties.
Impact: Positive Aurion has released the first two drill holes of its 2019 drill campaign from the Aamurusko NW target where it has discovered a new highgrade shallow area. With 10,000 m of drilling planned for 2019, we believe Aurion is on the path to grow Risti into a potential gold camp.
Impact: Mildly Positive Appia has announced the completion of ground gravity survey results at its higher grade Alces Lake REE property in Saskatchewan, Canada. The company is now doing follow up drilling (3,000m). We believe a successful program would uniquely position the company to emerge as one of the few high-grade rare earth element (REE) explorers in North America. We continue to believe Appia provides significant exposure to REE price momentum at Alces Lake project and underpinning value with a large uranium resource at the Elliot Lake Camp.
Impact: Positive Lion One has commenced its 2019 drill program and announced results from the first six holes testing high grade structures within the HT Corridor north of its Tuvatu deposit (739Koz at 9.5 g/t Au). We believe that the company’s Tuvatu property sits within an expansive alkaline epithermal gold system. These systems can form some of the largest gold deposits on earth, such as the nearby Vatukoula deposit (7Moz Au). With drilling underway Lion One could be on the cusp of demonstrating the world class potential of its Tuvatu project in Fiji.
Impact: Mildly Positive SolGold has announced a positive Constitutional Court decision resulting in a favourable outcome for the company. This news follows a positive PEA update for Cascabel moving the project one step closer to production. With a strong inventory of regional targets and underpinning value at Cascabel, we believe that the company continues to be a likely takeout target.
Recent events suggest that a Presidential decision on Section 232 investigation into Uranium is coming soon, which in our view should be a catalyst for the entire uranium space. We have summarized our thoughts below.
Impact: Mildly Positive Chalice announced the acquisition of the Ruins Project which expands its King Leopold Nickel Project holdings in Western Australia’s Kimberley region to ~1,800km2. As recently noted in our exploration update we view this acquisition as an inexpensive option on making a major discovery and additive to Chalice’s Pyramid Hill gold project, also in Australia. The news reinforces our thesis that Chalice is poised to rerate on the first hint of drilling success at either of its projects.
Impact: Very Positive Standard Lithium has announced excellent PEA results for its Southern Arkansas Lithium Brine Project, which highlights a high-margin and economically robust project in Arkansas, which we visited last month (site visit note here). Standard Lithium’s unconventional approach continues to create significant value for investors, which is not reflected in the company’s share price.