This Morning in Metals: Wisconsin Ends Mining Moratorium

This morning in metals news, Wisconsin Gov. Scott Walker signed a bill ending the state’s moratorium on gold and silver mining, Chile approaches a busy year for mine union negotiations, and Chinese steel futures drop. Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up Going for the Gold in…

The post This Morning in Metals: Wisconsin Ends Mining Moratorium appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/12/12/wisconsin-scott-walker-governor-mining-moratorium-chile-copper-union-china-steel-futures/

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Cryptojunkies: Beware the Ides of December

Source: Michael J. Ballanger for Streetwise Reports   12/11/2017

As Bitcoin futures are set to begin trading next week, precious metals expert Michael Ballanger discusses movements in gold and cybercurrencies.

It was two years ago this week that I proclaimed that we were witnessing the final lows in the 2011–2015 bear market in the precious metals as gold traded down to $1,045 amidst total capitulation by the Large Specs and after massive short-covering by the Commercial traders. The weekly COT for that week showed an aggregate short position of a miniscule 2,911 contracts down from the earlier highs of over 300,000 contracts. About six weeks later, despite the earlier bottom in gold, the HUI (NYSE Arca Gold BUGS Index) got mauled mercilessly and closed at 99.19 on January 19th 2016. What followed was the best rally in a decade as the HUI peaked the following August at 286.05. The 2.88 times move in the HUI was paltry compared to the moves in the leveraged ETFs NUGT (Direxion Daily Gold Miners Bull 3X ETF) and JNUG (Direxion Daily Junior Gold Miners Bull 3X ETF). The NUGT moved from $13.92 in January to $143.06 in August for an advance of 927%. Based on what I saw in the latest COT report, the set-up is in progress for a repeat performance. And it will be a BIG one.

The recent Nov. 27 commentary was entitled “Bullion bank short-covering will become year-end profit-taking,” and that is EXACTLY what transpired this past week as the bullion bank traders (loosely termed “Commercials”) covered 22% of their shorts into the decline. To wit, since the COT week ends on a Tuesday, the Wednesday–Friday projectile emesis of unwanted longs was a perfect example of the longstanding opinion voiced by this author that in gold and silver, you BUY breakdowns and you SELL breakouts. Why do I violate the basic trading rules for technical analysis? It is because unlike most other markets, the precious metals markets are “rigged.” The bullion banks waited for the hedgies (Large Specs) to gather en masse on the long side of the trade before crushing price down through 50 and 200 DMAs, triggering a full-scale liquidation into the ever-greedy and welcoming arms of the bullion banks. It was a complete no-brainer as you can see below with the profit taken on a notional value of $7 billion allows for a very Merry Christmas indeed for the serial manipulators manning the desks of the most corrupted, compromised markets on earth. I figure they took $50 per ounce out last week on 5,665,100 “ounces” of fabricated, phony, counterfeit “gold” for a tidy year-end profit of $283,255,000, which has got to be the best (and easiest) job in all of finance. Backstopped by the CFTC and the central banks, this rigging exercise is surpassed in history by none except perhaps the masterful importing of bootleg liquor by Capone from the mighty Canadian Bronfman family back in the days of Prohibition. The only real difference is the utility of self-medication associated with booze versus the blatant robbery committed by the bullion banks.

Now, simply because the Commercials trimmed their shorts by 22%, it doesn’t mean that price is going to suddenly vault forward because back in late 2015, it took six weeks for them to cover 122,000 net shorts before arriving at that fateful $1,045 low, but the good news is that we are heading at least in the right direction. Accordingly, the proper action for me will be to add to positions—SLOWLY—with the JNUG and NUGT ETFs containing maximum leverage (and risk) in advance of the “turn.” For the retirement account, I will stick to physical silver (no leverage) and for the taxable accounts, I will move next week to accumulate an additional position to the tiny option purchases made the week of Nov. 27. Remember that we still have tax-loss selling to get through so the optimum acquisition period should be the last two weeks of December unless of course the big money decides to preempt the retail bargain hunters, which I view as a distinct possibility.

The two precious metals junior we own, Stakeholder Gold Corp. (SRC:TSX.V) and Canuc Resources Corp. (CDA:TSX.V), are holding their own in a particularly difficult environment with both issues trading well-off their respective 52-week highs but still ahead for the year-to-date performance numbers. Mind you, when I look at the action in the metals whether they be in the mania-driven zinc space or the high-expectation copper space or the must-own-it lithium space, the precious metals explorcos were challenged all year long by competition from the hot sectors to the extent that when Fido hears a commentator use the words “Bitcoin” or “blockchain,” he lets out a bloodcurdling howl and makes a beeline for the attic (which is particularly curious given that we don’t even HAVE one).

Both SRC and CDA have completed small fundings in the interest of keeping the projects cooking and Stakeholder has actually begun to drill Goldstorm in the northern Carlin trend of Nevada this past week. CDA awaits results from a comprehensive sampling program designed to delineate the breccias where in two zones, Carranza and Cerro Colorado, 11-meter outcrops yielding 260-gram Ag (∞ 8 oz) are present. I am hopeful that exploration success in the early new year will be rewarded by investors because in the world in which I reside, nothing is more devastating than a negative market response to a positive exploration result.

The bottom line for many of us that have been accumulating physical precious metals is this: We correctly foresaw this coordinated global currency debasement at an alarmingly accelerated pace after every crisis since that DotCom meltdown in 2000. We enjoyed vindication from 2001 until 2013 with rising precious metal prices until the central banks decided to forever cripple investor sentiment for gold and silver by way of orchestrated carpet bombings carried out via the derivative markets (Crimex) with increased and predictable frequency after the bank bailouts in 2009. Like dutiful and obedient canines, we came back time after time to the “master” (gold ownership) only to be rebuked with physical, emotional and financial sadism. Always believing that 5,000 years of economic, political and financial history would once again reassert itself vaulting gold and silver to the forefront of investor urgency, we have been undermined with malicious fervor at every turn by the “moneychangers in the temple” that refuse to accept the fact that physical ownership as opposed to digital ownership is the only true “safe haven.”

As a result, here we are in the final month of 2017 with bubbles arising everywhere, be they cryptocurrencies or real estate or lithium deals where investors have indeed been trained in a manner not unlike my beloved Fido that flees from the room the minute my voice rises point-zero-three octaves to AVOID gold because it has been rendered “obsolete.” “You WILL avoid gold and you WILL love paper assets or suffer the consequences!” roar the price managers in Washington and London and Brussels and indeed that is what drove the younger and infinitely more pragmatic breed of investors to avoid fiat currencies in favor of the digitally generated stores of value.

This need for fiat sanctuary, insulated (or so they assume) from the devious tentacles of bankers and governments, will be tempered by the introduction of Bitcoin futures by the CME Group on Dec. 18. Just as precious metals futures are the tail by which governments and bankers wag the dog through unimpeded interventions, it is, in my opinion, the very tail by which the moneychangers are going to “reel in” cryptocurrencies. So, between now and the end of the month, the Commercials (bullion bank traders) will reduce their aggregate short position as gold’s major competition comes under the smothering blanket of intervention and manipulation.

As I wrote about in the commentary entitled “The True Meaning of Bitcoin’s Success” this is all about the arrival of the hyperinflationary melt-up characterized by various asset classes going into systemic price spikes. Stated another way, it is about the purchasing power of fiat currencies experiencing sudden and dramatic crashes. This recent narrative of a digital currency replacing gold as a store of value is as non-sensical as the idea that “dollars” whether from the U.S., Canada, or Zimbabwe will maintain their purchasing power over time. The bankers reeled in gold in 2013; they will reel in the Bitcoin as well. What both have in common is the medium of control.

Beware the Ides of December.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Stakeholder Gold Corporation and Canuc Resources Corp. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Stakeholder Gold and Canuc Resources, companies mentioned in this article.

All charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: CDA:TSX.V,
SRC:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/11/cryptojunkies-beware-the-ides-of-december.html

Jack Chan’s Weekly Precious Metals Market Update

Source: Jack Chan for Streetwise Reports   12/11/2017

Technical analyst Jack Chan charts the latest movements in the gold and silver markets.

Our proprietary cycle indicator is down.

chanhui112-9
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

chanhui212-9
The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.

chanopenint12-9
Open interests have dropped drastically from the current pullback, now reaching levels of previous bottoms.

chanusd12-9
USD—a potential head-&-shoulder topping pattern is in progress. A breakdown on the dollar will be very supportive to the metals.

chansilver12-9
Silver is on a long-term buy signal.

chanslv12-9
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

chansilverspec12-9
Speculation in silver is now at levels of previous bottoms.

Summary
The precious metals sector is on major buy signal. The cycle is down, as the multimonth consolidation continues. COT data is now supportive for a bottom in metal prices. We are holding gold-related ETFs for long-term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/11/jack-chans-weekly-precious-metals-market-update-4.html

Rare Earths MMI: Basket of Metals Slides as Prices Drop

The Rare Earths MMI took a three-point drop for the month, falling to 18 for our December reading. 
Save for an 11-cent increase in the Chinese yttrium price, the heavier hitters in this basket of metals  — terbium oxide, neodymium oxide, europium oxide and dysprosium oxide — posted price drops.

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Australian Rare Earths Miner Makes a Comeback

An article by Forbes chronicles the major bounceback of Australian rare-earths miner Lynas Corp., which rebounded after losing 99% of its share price.

The reason for the revival? The electric-car wave and environmental cleanup efforts in China, the Forbes article reports.

Surviving an oversupplied market that saw rare-earths prices plummet in recent years, a tightening of the market by China — the dominant global producer of rare earths — saw the firm’s fortunes reverse.

“Lynas, a former gold miner, somehow survived, and today it’s enjoying a rerun of the rare-earths shortage as China’s tougher pollution laws and the growing popularity of electric cars are boosting prices,” Forbes reports.

Namibia Rare Earths Acquires Portfolio of Metal Properties

In other recent news, Namibia Rare Earths announced in November the acquisition of a portfolio of critical metal properties in Namibia.

According to a release from the firm, it agreed to acquire a “majority interest in seven projects ranging from exploration opportunities to near term feasibility stage” from Gecko Namibia (Pty) Ltd.

“The Gecko Namibia portfolio of properties will expand the Company’s commodity base from solely rare earths to a variety of highly critical commodities including cobalt, copper, zinc, lithium, graphite, tantalum, niobium, nickel, and gold,” the release continues. “Ground holdings in Namibia will increase from 221 km2 (Lofdal) to over 6,850 km2.”

Instability, Violence in Congo

The Democratic Republic of Congo is rich with rare-earths, like cobalt, used in things like computers, cellphones and electric car batteries.

However, political instability and violence in the country this year have understandably had significant effects on the rare-earths market in the central African country. (Of course, as has been mentioned in this space before, the market effects of the instability and violence is not the primary takeaway of these events, but is relevant insofar as we are talking about metals.)

Recently, at least 14 United Nations peacekeepers were killed after an attack in the eastern portion of the country Friday, the Washington Post reported.

In a statement Friday, U.N Secretary-General António Guterres condemned the attack, saying it constituted a war crime.

“This is the worst attack on UN peacekeepers in the Organization’s recent history,” Guterres said.

While the price of metals is a small consideration compared with the bloodshed in the country this year — in August, the U.N. reported approximately 250 people were killed in ethnic-based massacres — instability and violence certainly have an effect on production capabilities and, thus, metal prices for rare earths mined in the DRC (like cobalt).

Free Sample Report: Our Annual Metal Buying Outlook

Actual Metal Prices and Trends

The post Rare Earths MMI: Basket of Metals Slides as Prices Drop appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/12/11/rare-earths-lynas-corp-china-yttrium-terbium-dysprosium-europium-oxide-congo-namibia/

Zinc Explorer Finally Hits; How Big Can the Resource Get?

Source: The Critical Investor for Streetwise Reports   12/09/2017

The Critical Investor provides an update on this zinc explorer’s latest drill results.

118.jpgAyawilca project; drilling location

After several attempts in vain, it seems like Tinka Resources has finally found what it was looking for: mineralization on the highly anticipated target Zone 3. Drilling in Zone 3 isn’t easy as the terrain in this area is steep, and the drilling itself took longer than usual, causing earlier hole 091 to be abandoned after no less than six weeks of drilling it. The rig was also badly needed for resource drilling at the time, so it was of better use elsewhere (South Ayawilca). Notwithstanding this, CEO Graham Carman didn’t forget the significant green alteration appearing at the very end of the drill core of another abandoned drill hole in Zone 3, hole 081, caused by chlorite, which is a strong indicator mineral for zinc. He needed a definitive answer from Zone 3, and deepened hole 091 another 145 meters. This time he and his crew had more luck and finally hit economic grade mineralization. What this could mean for the resource will be explained in this update.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in U.S. dollars, unless stated otherwise.

Please note: the views, opinions, estimates or forecasts regarding Tinka’s performance are those of the author alone and do not represent opinions, forecasts or predictions of Tinka or Tinka’s management. Tinka has not in any way endorsed the information, conclusions or recommendations provided by the author.

Things are getting interesting again for Tinka on the exploration front, after the company outlined the resource on South Ayawilca and updated the total Ayawilca resource estimate to 42.7Mt @7.3% ZnEq on a US$55/t cut-off (about 3.6% ZnEq cut-off grade). As Zone 3 is a large target, and mineralization is abundantly found at Ayawilca, I wasn’t too concerned about the first misses. The current resource already indicates a pretty economic and sizable project, but investors (and management) were hoping for more, which might have been one of the reasons the share price didn’t hold on to higher levels as much as anticipated after the resource update on November 8:

122.jpg</

Base metal sentiment in general has been lower as well during the last few weeks, although zinc prices are slightly above $1.40/lb, which is well above long-term forecasts. LME zinc inventories are sinking close to 10-day supply levels now, which is deemed to be critical by experts, and could cause a spike in prices, as happened in 2007. Besides this, although I was attending a mining conference in London (Mines&Money) a week ago, a lot of conversations involved things like the inevitable blockchain technologies, cryptocurrencies and electric vehicles (EV), and the general feeling was that these developments are draining capital from junior mining stocks at the moment, which could also be a factor. I am not too worried about the prospects for Tinka though, as it already is one of the best zinc deposits on the market, with likely excellent economics, and markets usually tend to reward quality sooner or later.

The latest exploration news could improve these prospects even further in my view, and management is eager to do a lot more drilling. With the warrant conversion executed by Sentient and IFC, the treasury is estimated to be C$8M at the moment, and this is enough cash to do a lot of drilling in the first half of 2018, update the resource again and complete the PEA most likely in Q2 2018. For now there is a “rain” slow down, so just one rig is at work until February–March, with one idle rig located on site, which considerably shortens the period to activate it. When the rainy period ends in March/April, the plan is to increase drill production again.

Eyecatcher of the latest batch was, of course, drill hole A17-091A (previously A17-091, which was deepened from 480 meters to 625 meters depth), which was drilled in Zone 3, the most anticipated target after South Ayawilca. A map with drill collar locations can be found a bit later in this article.

It was a very interesting hole with lots of different kinds of mineralization, but on first glance the 10.3m @10.5% ZnEq with 5.9% Zn stood out. More on this later. In addition, drill hole A17-100 has extended the known South Ayawilca zinc mineralization by about 200 meters eastward, with mineralization still open. The intercept of just 3m with a true width being at least 85% of this is at the edge of economic mining methods as it is near horizontal. The full table of results can be seen here:

120.jpg

CEO Graham Carman was very pleased with the results from A17-091A, and disclosed some of his plans as well in his comments which can be found in the news release:

“We believe the new intercepts in drill hole A17-091A are very significant, as they open up the Zone 3 area for potential resource expansion in an area that has seen little drilling. The same magnetic anomaly that outlines the Ayawilca Zinc and Tin Zones continues into Zone 3, extending the prospective zone by hundreds of metres to the northeast. A drill rig will continue to operate in the Zone 3 area following-up on this exciting discovery. Drilling is now expected to continue well into 2018 without a break, other than for the Christmas period.”

“These holes are the first to be released following our zinc and tin resource update (see Press Release Nov 8, 2017). Already, new results are indicating that the project is likely to continue to grow with additional drilling. Drill hole A17-100 intersected 3 metres grading 9.1 % zinc in a 200-metre step-out hole from the resource at South Ayawilca. A large 750-metre gap remains undrilled between significant zinc intersections at South Ayawilca and Zone 3. While exploration drilling continues with the goal of expanding the project resources, we are concurrently working on de-risking the project through metallurgical tests of the two main styles of mineralization as well as beginning preliminary desktop mining studies. We look forward to providing updates on these programs as they progress.”

I believe he could be on to something as well. Four things stood out for me about hole A17-091A:

  1. mineralization was at a greater depth of >500m
  2. zinc intercept wasn’t wide but occurred in a much wider zone of massive sulphide
  3. nearby drill hole A14-031 had also comparable mineralization
  4. the hole also contained a tin and copper intercept

To get the picture, the locations of the drill holes can be seen here. Note the earlier mentioned A17-081 to the far right, and also A17-073, which didn’t return significant results, indicating a potential upper boundary for mineralization:

119.jpg

Please note the earlier holes that I labelled A, B and C. C is A14-031 with economic grade zinc mineralization, as shown in the figure, and hole A14-028, containing 63m @0.26%tin and 0.2% copper. Hole B (A15-050) had 8m @2% zinc. Hole A, which is hole A14-24, intercepted 40 m @4.1% zinc with some silver/indium and 5m @0.9% tin and 0.4% copper at the edge of East Ayawilca from 320 m depth. So clearly, mineralization is wide open to the east, and may even connect with hole A14-031 and A17-091A on both sides of the fault (dotted line F trending SE-NW), but time will tell. This connection isn’t too far-fetched, as both holes drilled into limestone, which is the principal carrier of mineralization (limestone in blue):

123.jpg

This is actually a pre-drilling cross section, but the basic concept behind it still seems to hold up very well. The upwards folded limestone structure is called a “syncline” in geology. As the thickness of the limestone at Zone 3 is at least double the thickness of other mineralized zones at Ayawilca, the massive sulphides in this thicker limestone could be more extensive as well. The airborne magnetics show strong anomalies as well at Zone 3 (see map further below).

Because of the copper and tin mineralization at Ayawilca as well as the zinc, the porphyry intrusive (red zone in the cross section) about 3km to the east that outcrops at Los Pinos could be the source of the mineralization overall. The zinc mantos (horizontal mineralized envelopes) themselves (which have to be fed by faults as well of course, probably coming through the basement rock below) could have been the feeders for the thicker “chimney” style mineralization at West and South Ayawilca. The thick chimney mineralization could have been caused by the manto mineralization being trapped near fault structures, and had nowhere to go but up.

Another subject is that zinc and copper often appear on the same location, with zinc settling on the outer edges of copper mineralization. This could be the case here. When I asked Carman about plans/drill permits to look into the intrusive to find this possible main feeder it appeared this was a bit too farfetched for now, as he indicated the intrusive itself was probably not a target for now. The magnetics do support ongoing sulphides to the east so who knows:

121.jpg

It is also interesting that the highest magnetic intensity is not always being located at the center of mineralization, like at South and West. This seems to be consistent with the current mineralization being positioned around the edges of the strongest magnetics. Therefore, magnetics aren’t a direct indicator of mineralization.

What could these new results imply for Tinka? The area east of Central to the northeast where A17-091A is drilled is virtually unexplored and could contain connecting mantos, or chimneys. If I would assume a 500m long, 200m wide and 10m thick mineralized envelope there, this could result in another hypothetical 3Mt. If A17-100, which indicates a thinning out manto to the east, could materialize into a 500m long, 200m wide and 3m thick envelope, this could also add a hypothetical 1Mt. As a number of thin mantos more to the surface (depth of 200-250m) could connect West, East, South and Central, this could add another hypothetical 2–5Mt at most I believe.

If A17-081 can be deepened (which may not be possible) or redrilled, and generates the same results like A17-091A, things could get interesting, as for example a 500m x 300m x10m envelope could add a hypothetical 4.5Mt. When mineralization continues along the fault to the north and south, and/or to the east, much more is possible of course. An area of roughly 300m x 100m x 10m could add a hypothetical 1Mt, and Zone 3 is a large target. All in all, I do believe Tinka is on its way to a potential 50Mt plus. Depending on how things unfold at Zone 3, this number could get considerably bigger, of course.

In order to see how Tinka ranks among its peers, I updated the comparison table, added the 50Mt target and applied a longer minelife in my DCF model, adding to the NPV:

125.jpg
See Full Size Image

As I have indicated before, Tinka isn’t cheap but the stock deserves a premium in my view because of the quality and size of the project and people, and the takeover potential with several producers nearby looking for new zinc assets. The upcoming PEA (probably in Q2 2018) could potentially initiate a re-rating to C$1.00–1.25 levels if zinc prices could hold $1.40–1.50/lb levels, as a market cap of about 30–35% of NPV for a premium project isn’t anything out of the ordinary, as for example Arizona Mining traded at 36–60% of NPV since the PEA came out.

The company will most likely announce the upcoming drill hole results (holes 103 – 108) early next year. Most important assays for me will be A17-107, which is being drilled from the same platform as 091A, but angled to the east. Tinka is also planning more holes from this same platform, to get a better understanding of geology/mineralization around the rather complex fault/syncline situation, interpreting the data, refine the concept and go from there. The company is also looking for deeper mineralized structures below South, and this will be explored next year.

Conclusion

Tinka delivered a very interesting intercept in hole A17-091A, creating the possibility for extended mineralization to the east in Zone 3. I see a real opportunity to take the resource to a potential 50Mt for now. Who knows what else Tinka might find in 2018, when it will increase drilling at Zone 3, besides stepping out of the current resource. As there is so much mineralization on the property, management is hoping Ayawilca could grow into something really substantial. They are hopefully on their way to solve a complex puzzle, and the first big pieces are put in place now. The discovery journey is fascinating and educational for me so far, and let’s see how big Ayawilca can get.

126.jpg
Ayawilca project surroundings

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter, in order to get an email notice of my new articles soon after they are published.

Disclaimer:
The author is not a registered investment advisor, and has a long position in this stock. Tinka Resources is a sponsoring company. The views, opinions, estimates or forecasts regarding Tinka’s performance are those of the author alone and do not represent opinions, forecasts or predictions of Tinka or Tinka’s management. Tinka has not in any way endorsed the information, conclusions or recommendations provided by the author.

All facts are to be checked by the reader. For more information go to http://www.tinkaresources.com and read the company’s profile and official documents on http://www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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Streetwise Reports Disclosure:
1) The Critical Investor’s disclosures are listed above.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Trevali Mining. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

<Charts and graphics provided by the author.

( Companies Mentioned: TK:TSX.V; TLD:FSE; TKRFF:OTCPK,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/09/zinc-explorer-finally-hits-how-big-can-the-resource-get.html

Global Precious MMI: Palladium Breaks Through $1,000 Barrier

 Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Here’s What Happened

  • MetalMiner’s Global Precious MMI, tracking a basket of precious metals from across the globe, ticked up another point to 88 for the December reading, a 1.1% increase.
  • Palladium flexed its muscles, officially busting through the $1,000 per ounce ceiling. The platinum-group metal’s (PGM) U.S. bar price has jumped nearly a whopping 50% since the beginning of the year.
  • Platinum crept closer to palladium’s level over the last month, ending up in the mid-$900s per ounce level. It has receded from its most recent high of March 2017, when it landed above $1,000 per ounce.
  • “We’ve got a trend, folks!” — this is the third straight month in which palladium is priced at a premium to platinum, which has not been the historical norm.
  • After breaking and holding above the $1,300 per ounce threshold at the beginning of September for the first time since October 2016, the U.S. gold price has been dropping for a couple months before leveling out for Dec. 1. Gold bullion is just about $4 per ounce higher than it was at the start of November.

What’s Going On in the Background?

  • Why has palladium been trading at a premium to platinum? A reminder: “Palladium has traded at a discount to platinum because of platinum’s greater cost of extraction and its wider scope of applications,” according to Stuart Burns, MetalMiner’s editor at large. But the fall of diesel (compared to gas) engines has bumped up palladium demand — which, coupled with anticipation of both palladium and platinum production falling, according to analysts from UBS and SP Angel, paints a picture of potentially sustained higher prices. For now, heading into the winter holidays, the current trend is making palladium investors feel pretty good.
  • Gold in the spotlight. Let’s pivot to gold a bit this month. A gold mine in Ireland is causing some controversy amidst the background of Brexit, with greater numbers of potential jobs and environmental impact all hanging in the balance.

What Metal Buyers Should Look Out For

Free Sample Report: Our Annual Metal Buying Outlook

Key Price Movers and Shakers

The post Global Precious MMI: Palladium Breaks Through $1,000 Barrier appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/12/08/global-precious-metals-eft-intelligence-firm-palladium-platinum-sp-500-gold/

A Gold Explorer’s Productive November Has Analysts Saying ‘Buy’

Source: Streetwise Reports   12/07/2017

Multiple projects are showing positive and possible expansions for this gold miner.

On Nov. 20, Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) announced initial results from its Hatter Graben zone and recovery of Hollister ore at Midas Mill. The company highlighted a couple of key points:

  • Assays were received for the first five surface core holes at Hatter Graben. These are the first assays from an 11-hole drill program that was designed to infill drilling completed during 2008. The intent of this drill program is to develop an initial inferred resource at Hatter Graben.
  • Mineralization at Hatter Graben remains open in all directions. Drilling continues and is scheduled to be completed in early December. After which the company expects to receive final assays from the remaining six core holes by year-end.

Brian Morris, Klondex’s senior vice president, exploration, said, “I am extremely encouraged by the initial results from our first five holes at Hatter Graben. The most optimal drill sites are now fully permitted and drilling is ongoing from these locations. We are infilling and stepping to the east in the most desirable elevations where we fully expect robust results.”

Analyst Philip Ker with PI Financial stated in a Nov. 21 report that the “Hatter Graben target presents significant opportunity for Klondex to expand the Hollister mine and resource base in the future.” He explained that “management also reaffirmed the Hatter Graben displays less clay content than the main mineralized zone at Hollister resulting in more competent rock. The increased competency, steep dip of veins and increased vertical extent suggest that Hatter Graben is suitable to less dilutive mining techniques such as long-hole stoping.”

Ker concluded, “Our TOP PICK and BUY rating remains unchanged. We continue to derive our CA$4.85 target price with a 1.0x NAVPS multiple.

In a Nov. 15 announcement Klondex Mines updated its Fire Creek Mine exploration project. A few of the key points are:

  • Three surface drill holes totaling 4,171 ft (1,271 m) have been completed to-date on the Zeus target.
  • Drilling to-date has delineated a mineralized area within the structure approximately 650 ft (198 m) in length and 400 ft (122 m) vertically, within 400 ft (122 m) of surface and is open in all directions. Additional follow up holes are in progress to continue to expand and infill this significant high grade mineralization.
  • The up-dip underground drilling above the veins currently in production has returned significant assay results along a strike of 275 ft (84 m) and up-dip by 100 ft (31 m). The down-dip underground drilling below the Karen vein has returned significant assay results along a strike of 150 ft (46 m) and down-dip by 75 ft (23 m).

“The surface drill results are extremely exciting,” Klondex’s Morris stated. “These results demonstrate that the potential for high grade mineralization, similar to what is currently being mined at Fire Creek, exists within the Zeus structure about 4,000 feet northwest from our current underground development. Geophysics suggest this is a major 6,500 ft structure. We will continue step-out and infill drilling in this area to fully delineate this high grade structure with the intent to bring it into an inferred resource category in our year-end resource update to be released in Q1 2018.”

ROTH Capital analyst Jake Sekelsky stated in a Nov. 16 report that Klondex “is achieving exploration success from surface and underground, which we believe should have a positive impact on Fire Creek’s mine life.” He highlighted the Zeus target’s, “hole FCC-0092, which returned 1.27 opt over 14.0 feet including 8.25 opt over 1.7 feet. In our view, holes such as this serve as evidence that the program has uncovered significant additional high-grade mineralization outside of the existing areas being mined at Fire Creek.”

Sekelsky pointed out that although “recent drill results are not included in the existing resource, we believe recent underground drilling has the potential to significantly expand the near-mine resource base. We view this development as a strong positive as new resources outlined in this program could have near-term impacts to Klondex’s production profile at Fire Creek.”

The ROTH analyst concluded that “Following the success exhibited at the Zeus target, we believe additional discoveries are probable and look forward to further exploration updates at Fire Creek.” ROTH Capital rates Klondex as a Buy with a target rating of US$2.58.In a Nov. 16 report, PI Financial analyst Philip Ker, noted, “The success of up and down dip extensions of key veins, such as the Karen, Joyce and Honeyrunner veins, continue to demonstrate the potential for mine life and resource expansion at Fire Creek.”

“Considering our more favorable long-term view on Klondex, we continue to remain firm on the management and operations team to meet the lower end of its 2017 guidance. As Hollister expands and its production profile begins to integrate further with the Nevada operations and Midas team, we continue to expect operating cost declines, increased long-hole stoping and exploration upside—particularly from the Hatter Graben zone,” Ker concluded.

Klondex is currently trading at CA$2.86.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Klondex Mines Ltd. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: KDX:TSX; KLDX:NYSE.MKT,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2017/12/07/a-gold-explorers-productive-november-has-analysts-saying-buy.html