August 2019

Gran Colombia Gold Corp. (TSX:GCM) – Cost Guidance Lowered; Segovia Ramping Up

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Impact: Mildly Positive Gran Colombia has released Q2/19 financial results on the back of strong operating results that were roughly inline with our forecast. Additionally, after a strong start to the year the company has decreased cost guidance for 2019. We maintain our fair value estimate of C$6.00/sh which is based on US$1,300/ oz Au and highlight that if we were to use US$1,500/oz Au our fair value would increase to over C$9.00/sh.

RNC Minerals (TSX:RNX) – Guidance is Coming; Q3 Starts Strong

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Impact: Neutral RNC has released Q2/19 financial results, which was a transformational quarter for the company. The company noted that Q3 was off to a strong start which we believe could help shore up the balance sheet. Most importantly, the company plans to release an updated mine plan/guidance in the very near-term which should provide investors some guidance on the path to profitability. With a new resource at Beta Hunt together with the processing capacity of the Higginsville Mill, we believe that RNC is well positioned to grow to a +100koz/year steady state producer as early as 2021.

Fission Uranium Corp. (TSX:FCU) – Drilling Points to Resource Growth

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Impact: Mildly Positive Fission Uranium Corp has announced positive drill results from the Patterson Lake South (PLS) project which suggest this high-grade uranium resource has room to grow around the existing deposit. Results continue to suggest that the PLS project has the potential to be one of the larger and lowest operating cost uranium projects in the world and is well positioned for a potential turn in the uranium market.

RNC Minerals (TSX:RNX) – Resource Complete; Mine Plan Pending

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Impact: Positive RNC has announced another positive resource update at Beta Hunt, this time for the A Zone, which has come in larger than expected. We believe the resource update demonstrates Beta Hunt’s steadystate production potential and is another step towards reaching +100koz/year production by 2021.

Gran Colombia Gold (TSX:GCM) – Drilling Points to Resource Growth at Segovia

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Impact: Mildly Positive Gran Colombia has released directionally positive drill results from drilling at the three of its core deposits (Providencia, Sandra K and El Silencio) at Segovia. These results suggest the company is poised to increase reserves at what appears to be higher grades. Gran Colombia’s share price performance reflects its significant leverage to the gold price. Our C$6.00/sh fair value estimate is based on US$1,300/oz Au; however, using US$1500/oz it would increase to over C$9.00/sh (Figure 2).

Novo Resources Corp. (TSXV:NVO) – Egina Yields Nuggety Gold

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Impact: Mildly Positive Novo has announced results from its first trench at the Egina project which turned out numerous large gold nuggets. With a recently announced US$30M farm-in with Sumitomo Corp, Novo is well positioned with the technical knowledge and financial support to develop Egina in to an economic deposit. We expect the market could price in the potential at Egina with successful bulk sampling.

Fiore Gold Ltd. (TSXV:F) – Results Point to Resource Growth at Gold Rock

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Impact: Mildly Positive Fiore released drill results from its step-out and infill drill campaign at Gold Rock in Nevada that suggest the resource is poised to expand. The planned PEA is expected shortly thereafter in CQ4/19. We reiterate our view that Fiore is on the path to becoming +100koz by 2022 fueled by steady operations at Pan alongside organic growth from Gold Rock.

Minera Alamos Inc. (TSXV:MAI) – Big Step Forward; Construction in Q4/19

Impact: Positive Minera Alamos has announced the timely receipt of an Environmental Impact statement from Mexican authorities for the development of Santana, positioning the project for construction in Q4/19. Drawing on the extensive operating experience in Mexico, Minera is quickly acting on its strategy to build a mid-tier gold producer with its first mine, Santana on-track to be in production by mid-2020.

Orford Mining Corp. (TSXV:ORM) – Bringing Qiqavik in to Focus

Impact: Mildly Positive Orford has announced the beginning of the third phase of exploration for its Qiqavik property where it is begun drill testing targets identified through detailed surface work and geophysics. We continue to view Orford as an inexpensive call option on district scale exploration, which we believe could re-rate the company’s share price on the first hint of drilling success. Having Alamos Gold validate the investment thesis earlier this year only adds to our certainty that it is only a matter of time.

SolGold Plc (TSX:SOLG; LON SOLG) – Bonanza Grades at Blanca Adds to the Bigger Story

Impact: Mildly Positive SolGold has announced high-grade sample results from its Blanca tenement, located ~5.1km from Casacbel, where exploration continues to point to a high-grade epithermal system with significant scale potential. With extensive work programs currently underway ahead of MRE#3 for Cascabel, this update offers a reminder of SolGold’s potential for upside beyond its flagship project.