Gold Springs and Clayton Valley

Tri-Metals reports on work in the Gold Springs area (NV-UT border). 

Secures a lease on the Etna Mine from Utah. [Junior Mining Network]  …on their Jumbo Trend.

Announces results from Jumbo Trend. [Junior Mining Network]  14 holes / 3100 m.  Splashiest hit was 118 g/t Au over 1.5 m but there were some longer, low grade hits including 7.6 m @ 2.24 g/t Au.


Nevada Sunrise buys water rights in Clayton Valley. [Junior Mining Network]

In December 2015, Nevada Sunrise received a written appraisal from an independent appraiser certified in the State of Nevada, which valued the Permit at US$1.42 million. According to the appraisal report, the Clayton Valley basin is currently “over-appropriated”, with Albemarle Corp.’s Silver Peak lithium mine being the largest consumer of water in the area. The report further states that any new application for water use in an over-appropriated basin would be carefully reviewed by the Nevada Division of Water Resources, and it is uncertain if any new applications would be granted. Nevada Sunrise believes that its acquisition of the existing Permit will be a key factor in future lithium exploration and development by the Company for brines in the Clayton Valley.

They’re paying US$1.3M plus stock so there’s clearly some expectation of appreciation here.

Aston Bay and DDC

Patrick Evans on the DDC shareholders revolt. [CEO.ca]  James Kwantes cornered him after the CEO breakfast for this one.

“From our perspective, it’s mission accomplished, and the group has been disbanded.”

Sure.


Aston Bay signs a LOI with BHP to explore Storm. [Junior Mining Network]  The most determined guy on Howe Street pulls it off.  A $40M deal ($2.5M in the first 2 years) to explore Storm in which BHP would net a 75% interest.

Triumph


Metallurgical results from 3 Aces. [Stockwatch]  Golden Predator announces 80% & 90% recoveries from two samples, just in time for Roundup.


Peregrine Diamonds completes its rights offering.  [Junior Mining Network]  It looks like CEO Eric Friedland took down a lot and now owns about 20% of the company in this sale, characterized by John Kaiser as something of a rout.

TMX Roundup roast

Hot time in YVR at the TMX town hall. [Stockwatch]   300+ packed a standing room only meeting at the Pan Pacific to launch tomatoes at the TMX honchos over the state of the capital markets.  They must have known what they were in for but nonetheless it couldn’t have been pleasant.  Don Mosher from the Venture Capital Association gave Kip Keen what sounds like a balanced summary.  [Soundtrack.com]  IIROC and the provincial regulators may have had moles in the audience and hopefully they were listening as much of what is wrong with the markets can be laid at their feet.  Hot button issues raised included the Zombies, costs of transactions, the up-tick rule / short selling and the overall throttling of the market by the regulators (eg. qualified investor rules).    Meanwhile back on the floor at Roundup,  you could hear the crickets….

Roundup


Rick Rule on a market turn-around. [Resource Clips]  Good news: He sees signs of market capitulation among the issuers.  They’re realizing they have to face the music and sell equity for whatever they can get to stay in the game.  The bad news:  It will take 18 month to 2 years before this results in a market turnaround.   The worst part? Probably longer for the juniors.


Catepillar sees no signs of a mining turnaround.  [Mining.com]  Forecasting a 10% drop in sales this year.


Diamond producers show the rest how to deal with  a slump. [Mineweb]  They cut production by 25% last year.

Mostly northern stuff

Busy couple of days down here and time’s been scarce.   Some news of note (bit of a bouillabaisse):

Kennady Diamonds announces Faraday bulk sample grade results. [Junior Mining Network]  and they were very good:  4.48 and 3.0 ct/t.

Freegold Ventures PEA on Golden Summit released. [Junior Mining Network]  With a bit of a shake-up at Kinross  there might be an opportunity for this deposit.  Kudos to Christina Walcott – a real trouper in promoter land.

BC Gold options the Wels Property.  [BC Gold]  Now in the hands of a can-do guy (Brian Fowler).  There’s a corporate re-org in progress too.  A few years ago, this was a classic buy-in-May-and-go-away company that did well by the fall.  Hope springs eternal….

Copper North updates Carmacks Copper resource. [Junior Mining Network]  And to make sure you can figure out how much better it is, the old resource is in the PR too.  Looks like a new PEA is in the works; it would be interesting to see what this looks like with $2.00 copper.

Crystal Exploration Muskox bulk sample underway. [Junior Mining Network]  .. well.. sort of.  They bought some old core  in Edmonton and are sending it in for caustic fusion.

Economics 101?  De Beers drops prices by 7% and doubles their top line at their January diamond sight. [Junior Mining Network]  Sounds like they got a cash-call from Anglo.

North Arrow sells a royalty on Redemption. [Junior Mining Network]  Chris Jennings is paying $800K for this.  Now … the only thing left to do is find the diamonds.

 

VRIC

So… time for the Cambridge House Vancouver Resources Investment Conference.  Registration this year was a snap – even during the mid-morning rush.

Registration

An organizer noted that the packed speaker’s hall must be a sign we’ve turned the corner.

Talks

But he may have forgot that there was only one speakers hall this year and the overall venue is half the size of last year’s .  Plenty of room for refreshment stands and non-revenue-generating displays however.

bull

On the floor, lots of companies were double or triple booked in the same space.   One CEO told me he got a government grant to pay for his stall.   Yukon and Alaska were back with dueling pavilions.

Lots of geologists, chopper pilots, drillers, and IR types.   Not much sign of the mythical retail investor.

 

Another good reason to steer clear of B.C.

A long time Yukon prospector now working further afield sent me a copy of an email he received from the B.C. Government.  I didn’t believe it at first but some fact checking suggests it’s legit.  If you’re a prospector or junior mining company trying to sell a property in B.C., take note:

BC Notice


Look like in some deep dark basement in Victoria, Dr. Frankenstein has grafted a BC Securities Commission regulator with a mine inspector and the result isn’t pretty.  Doubtless this is being done in the name of “protecting the public” which seems to justify just about any BS from government these days.  What’s next?  Are prospectors going to have to fill out PIF’s and get an RCMP clearance?   Will they only be able to sell properties to Qualified Investors.

After the bureaucrats have finished chasing down the few two-bit prospectors left in this business, will they going to turn their attention to real prey?   How about the 250 or so juniors with properties in BC?     There will be a lot of website designers out of work in Vancouver if all a junior vending a property can post is name, rank and serial number.

B.C. – Beyond Comprehension.

Smothering

“I’m protecting the public damn it!”

Back in Dodge…

Things are grim in YVR. [Vancouver Sun]  With Roundup and Cambridge House about to start, a biz reporter surveys the sad state of the exploration industry at World Corporate Headquarters.  If you’ve been living in a cave for the past year, this isn’t a bad overview.


The old one-two-three punch….

  1. Moody’s “reviews” miners; downgrade to junk possible. [Bloomberg] [Mineweb] and we’re talking about Barrick,  Newmont, Rio Tinto, AngloGold Ashanti, and Gold Fields etc.  This isn’t exactly news to Mr. Market.  An example:“Freeport McMoRan bonds maturing in 2043, which were issued at 99.54 cents on the dollar, are now trading at around 41 cents.”
  2. Exits are jamming  for bond holders. [Bloomberg]  … so now all those investment grade investments are about to become junk.   Time to sell but everybody else wants out too.  With declining prices, it’s going to be painful for companies to service debt.  Shareholders will be first in line for any cutbacks as dividends are slashed so it’s now time to….
  3. “Sell the miners”. [Bloomberg]  The same guys who put you in are advising you to get out.

Punch


But hope springs eternal.   Cambridge House (VRIC) starts tomorrow. [Resource Clips]   Sounds like getting around the trade floor will be easy:

Martin estimates about 150 exhibitors and 5,000 attendees will show up. The numbers obviously pale compared to peak years but “those 5,000 attendees are the people who still invest in this sector despite the downturn.

At $6K for 2 days, it’s not hard to see why there are no exhibitors.  Attendance might be better than expected though.  This year (unlike last) they’re not double booked with the Vancouver Sex Show.

What to prospect for in 2016

Time to stop fooling around in a crappy market.  Don’t waste your time looking for base metals or gold, check this out: The world’s most valuable substances by weight. [Visual Capitalist]

California


The Gray Lady takes note of the commodity crash. [NY Times]

“Lower oil prices have not proven to be as stimulative as economic theory once had it,” said Daniel Yergin, the energy historian and vice chairman of the IHS consultancy. “The question is what are weak commodity prices telling us: Is it overinvestment in the past, or signaling a weaker global economy forward? My own feeling is the answer is both.”


We’re from the TSX and we’re here to help. [CNW]  Town hall meeting in Vancouver for broke junior miners at UBC Robson Square, 2PM Jan 28.  Should be lively.

tar and feathers


Norilsk Nickel sees $4.09 / lb nickel in 2016. [Mineweb]


Don’t trust central banksters to manage money?  You’re in luck: There’s now an alternative.  PinkCoin – a cryptocurrency backed by diamonds. [Diamond.net]

PinkCoin is based on the Ethereum cryptocurrency platform and backed by a pool of fixed colored-diamond assets kept in trust by BAM. All escrowed diamonds have been independently appraised and certified and are insured by Lloyds of London, the statement said.

PinkCoins are redeemable for Bitcoins, a digital currency introduced in 2009, or individual gems, based on the diamond pool’s most current valuation. Holders of the currency will be able to trade it for other assets and for asset pool-backed tokens on the BitGem Decentralized Marketplace, anticipated to be available in the second quarter of 2016.

“Pink and other fancy grade colored diamonds are the only asset class that have consistently increased in value well over 10 percent per year,” said Dr. Nataliya Hearn, chief executive officer of Precious Investments. “They are the only commodity that has not decreased in price since they began being tracked in 1959. This will only enhance the validity of PinkCoins in the marketplace.”

Paper money and diamonds share one unfortunate characteristic however.

Burning diamond


Man the pumps

With Fission closing their deal with the Chinese and virtually all other commodities in the tank, it looks like uranium might be the buzz at Cambridge House this year.  [Junior Mining Network]

An active week for Athabasca Basin juniors. [CEO.ca]

How the Basin is shaping up in 2016. [CEO.ca]

Nothing yet from Zimtu.