Search Results for "Africa"

Silver Bull’s Mitzic Iron Ore License in Gabon, Central Africa Renewed

Silver Bull Resources, Inc. (TSX:SVB) was granted renewal of its 2,000 square kilometer Mitzic license by the Ministry of Mines in Gabon for an additional 3 years. Silver Bull also reported results of the work program on the Mitzic License completed over the last 2 years.

As quoted in the press release:

The Mitzic license lies 180km northeast of the capital city of Libreville and is accessed via a paved road directly to site and lies 60km to the north of a functioning railway. In addition to the Mitzic license, Silver Bull also recently renewed its 2,000 square kilometer “Ndjole” license which is highly prospective for gold and manganese.

Mitzic License – Iron Results: A regional reconnaissance work program on the Mitzic license targeting over 70 kilometers of magnetic highs has confirmed the widespread presence of a coarse grained, magnetite rich, Banded Iron Formation “BIF” averaging approximately 40% Fe. Localized supergene and hypogene enrichment in excess of 65% Fe is seen in the field but is thus far poorly constrained. Geological mapping shows the BIF forms a series of topographic highs with up to 300m of relief and has localized evidence of thickening through folding and faulting. The steep dipping nature of the BIF’s also suggests they continue at depth.

Click here to read the Silver Bull Resources (TSX:SVB) press release

See this press release on Marketwire
Click here to see the Silver Bull Resources (TSX:SVB) profile


Silver Bull Announces Termination of Ndjole-Mevang and Ogooue Joint Ventures in Central Africa

AngloGold Ashanti Holdings has notified Silver Bull Resources, Inc. (TSX:SVB) on terminating the Ndjole-Mevang and Ogooue joint venture agreements in Gabon, Central Africa.

As quoted in the press release:

Under the terms of the joint venture, AngloGold earned a 20% interest by paying to Dome US $400,000 upon signing of the joint venture agreement in October 2009. AngloGold could then earn an additional 40% interest by paying Dome US $100,000 per year over the next three years and by spending US $3.7 million on exploration over this period. By terminating the joint venture AngloGold forfeits all its interests in these licenses and 100% of these licenses return to Dome.

In addition to the Ndjole-Mevang joint venture, AngloGold, aided by Dome, also acquired a reconnaissance license under its own name over an area comprising 8,295 square kilometers in Gabon, West Africa. Dome retained a 20% interest in the license with AngloGold making a firm commitment to spend US $100,000 on exploration and to solely fund the first US $3 million of exploration expenditures, after which the parties would contribute on an 80/20 basis.

Silver Bull Resources President and CEO Tim Barry said:

We wish to thank AngloGold for the professional manner in which it carried out its obligations under the joint venture agreements and for significantly advancing the projects. We remain very positive about the exploration opportunities that exist in Gabon, especially on the manganese and gold potential we see in the Ndjole area, and the iron ore potential of our Mitzic license – which was not part of the AngloGold joint venture.

Click here to read the Silver Bull Resources (TSX:SVB) press release

See this press release on Marketwire
Click here to see the Silver Bull Resources (TSX:SVB) profile


Rockgate Announces Positive Metallurgy Results with Recoveries of 90% for Uranium and 77.5% for Silver, Falea U-Ag-Cu Project, Mali, West Africa

Rockgate Capital Corp. (TSX VENTURE:RGT) reported positive results from preliminary metallurgical testwork completed on the North Zone at the Falea Uranium Silver Copper project by SGS South Africa Mineralogical Services.

The press release is quoted as saying:

Silver leach recoveries can likely be improved using a finer grind and/or employing a stronger cyanide solution. Further testwork is required to optimize silver leach recoveries. Similarly, further flotation testing will focus on optimization of copper and silver concentrates.

Click here to access the entire press release

Click here to access Rockgate Capital Corporate Site


Barrick: Pricing of African Barrick Gold plc Initial Public Offering

Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) reported the pricing of the initial public offering of African Barrick Gold plc , a new company whose equity will be admitted to the Official List of the Financial Services Authority and to trading on the London Stock Exchange’s main market for listed securities.

The press release is quoted as saying:

An offer price of GBP 5.75 per ordinary share has been set and the net proceeds of the offering are expected to be approximately $834 million, which will be paid to Barrick.

Click here to access the entire press release

Click here to access Barrick Gold Corporate Site


Top 10 Junior Mining Stocks of 2013

As the countdown begins to Christmas holidays, at least here in North America, resource investors will be taking measure of their portfolios — likely with a stiff drink in hand. Many will not like what they see. Mining stocks, along with most commodity prices, have taken a precipitous slide over the past 12 months, with a number of macroeconomic factors and negative supply-demand equations playing into the cloudy picture. 

Casting our minds back to a year ago, we recall that the most pressing issue on the minds of investors was how the United States was going to avoid a “fiscal cliff.” At that time, gold was still hovering around $1,750 an ounce. While that issue was resolved, albeit amid considerable hand-wringing among US politicians, it wasn’t long before mining was plunged into the next crisis: gold. In April, the precious metal jumped off its own fiscal cliff, falling $200, or 13 percent, in just two sessions to land at $1,361 an ounce. It was the biggest one-day drop for gold in 33 years, and it spooked resource investors like no event in recent memory. Other metals followed suit, including silverplatinum and palladium. The reason for gold’s sudden drop has never been made abundantly clear, but most observers blame bullion banks for taking a massive short position in gold that caused a ripple effect among gold traders, effectively cratering the price.

Since the April catastrophe for precious metals, both gold and silver have been buffeted by oscillations by the US Federal Reserve over whether or not it will partially withdraw or “taper” its $85 billion a month stimulus package designed to keep interest rates low and avoid the US economy going into recession.

A recent report by PwC shows that silver has earned the dubious distinction of being 2013′s worst-performing metal. As Silver Investing News reported, the white metal began the year at about $32 per ounce, and by July had sunk to $18 or so — a drop of around 40 percent, and miles away from the white metal’s inflation-adjusted record of just below $50 in 2011.

Copper, the usual bellwether of worldwide economic health, has not fared much better, starting the year around $3.70 a pound and now sitting just above $3.30 — a fall of roughly 40 cents, or 8 percent. Growth in copper has been sluggish due to slower economic growth in China — the metals’s largest consumer — along with lagging demand from other primary buyers, the Eurozone and the United States.

All told, it’s been a challenging year, to put it mildly, for mining stocks, as investors fled resource equities in search of safer sectors and higher growth. As proof, look no further than the S&P/TSX Global Mining Index (INDEXTSI:TXGM), which is showing a year-to-date loss of 24.1 percent.

However, it was not all bad news in 2013; some companies still managed to raise financings, make acquisitions and advance their exploration projects. Here are 10 mining stocks that weathered the storm and netted investors some healthy returns:

1. TerraX Minerals (TSXV:TXR); current price: $0.40; year-to-date gain: 788.8 percent; 52-week high: $0.69.

TerraX Minerals is a Canadian gold explorer focused on its recently acquired Northbelt gold property, covering a 13-kilometer strike about 15 kilometers north of Yellowknife, Northwest Territories. Nearby gold deposits include the past-producing 6.6-million-ounce Giant and 5.5-million-ounce Con gold mines. TerraX’ stock started climbing in September when the company announced assay results from Northbelt that included 13.07 grams per tonned gold over 6.87 meters, 67.69 g/t over 2 meters, and 11.69 g/t over 6 meters, near surface. The company also announced a non-brokered private placement of $765,000 in November.

2. Nevada Clean Magnesium (TSXV:NVM); current price: $0.06; year-to-date gain: 333.3 percent; 52-week high: $0.11.

Nevada Clean Magnesium is aiming to become a low-cost producer of high-grade magnesiummined from its Tami-Mosi property in Nevada. In October of this year, Nevada Clean and Norwegian company ScanMag formed a joint venture partnership to produce magnesium for the North American and European industrial markets. Under the terms of the agreement, Nevada Clean and ScanMag negotiated a 51-49 percent ownership split of the Tami-Mosi property, with ScanMag paying Nevada Clean US$5 million, in return for Nevada Clean taking a 5 percent equity stake in ScanMag. Nevada Clean’s three-month stock chart performance shows a whopping 550 percent gain.

3. Atlatsa Resources (TSXV:ATL); current price: $0.55; year-to-date gain: 292.8 percent; 52-week high: $0.61.

Atlatsa Resources is a platinum group metals company with four assets in the Bushveld Igneous Complex of South Africa, including the producing Bokoni mine. Upward movement in the stock price coincided with an announced restructure plan in July, whereby the company sold shares and hived off a portion of its Ga-Phasha property to Anglo American Platinum (OTCMKTS:AGPPY). The restructure netted Atlatsa US$171 million from the property disposition and $76 million from the share issue, and reduced its debt by 75 percent.

4. Zenyatta Ventures (TSXV:ZEN); current price: $2.19; year-to-date gain: 177.2 percent; 52-week high: $5.00.

Zenyatta Ventures made significant progress this year on its Albany hydrothermal graphite deposit in Ontario, Canada, which was reflected in its stock performance. The run in the stock started in May when Zenyatta announced assay results showing the first drill hole intersected 360.8 meters of graphite from 49 to 409.7 meters, yielding an average grade of 5.1 percent carbon — the widest zone of graphite mineralization intersected at the deposit to date. Zenyatta in December announced the much-anticipated initial resource estimate at Albany, showing 25.1 million tonnes of indicated resources grading 3.89 percent carbon, and inferred resources of 20.1 million tonnes graded 2.2 percent carbon.

5. Barisan Gold (TSXV:BG); current price: $0.23; year-to-date gain: 142.1 percent; 52-week high: $0.23.

Barisan Gold is focused on gold and gold-copper properties in Indonesia’s Aceh province. In mid-July, Barisan restarted exploration drilling at its Upper Tengkereng porphyry prospect. The company mobilized a drill rig and started drilling in late August after the Ramadan holiday. It planned to drill up to 3,000 meters, targeting high-grade zones intercepted in Hole UTD-002. In November Barisan said it intersected 262 meters of 1.0 percent copper equivalent in the first hole of its drill program.

6. Reservoir Minerals (TSXV:RMC); current price: $5.48; year-to-date gain: 127.3 percent; 52-week high: $5.50.

Reservoir Minerals has a portfolio of 8 exploration licenses including gold, silver, copper, lead and zinc exploration in Serbia. It is also developing a portfolio of projects in West Africa, targetting greenstone belts that host gold and iron ore mines. The most recent news from Reservoir Minerals is an update on its drill program at the Timok project in Serbia, a joint venture with U.S. copper producer Freeport McMoRan (NYSE:FCX). Highlights included 166 meters grading 11.29 percent copper equivalent and 128.7 meters grading 8.41 percent copper equivalent.

7. Lucara Diamond (TSX:LUC); current price: $1.43; year-to-date gain: 116.6 percent; 52-week high: $1.69.

Lucara Diamond is a new diamond producer whose key assets are the Karowe mine in Botswana and the Mothae mine in Lesotho. Lucara had an exceptional year for diamond discoveries. In January the company announced it recovered two more rare blue diamonds from its Karowe mine, and then, three months later, a 239.2-carat stone from Karowe was revealed. The good news didn’t stop there for Lucara, with the announced recovery of a 257-carat diamond in September, bringing to 47 the number of diamonds in 2013 that were larger than 50 carats, and 14 bigger than 100 carats.

8. Saint Jean Carbon (TSXV:SJL); current price: $0.03; year-to-date gain: 100 percent; 52-week high: $0.03.

Saint Jean Carbon, formerly Torch River Resources, is an exploration company focused on becoming a pure-play lump graphite enterprise. The company has acquired graphite properties in Quebec and Sri Lanka. Saint Jean Carbon’s two most important projects are the Walker mine lump graphite project in Quebec and the Han Tal lump project in Sri Lanka. Metallurgical test results from the past-producing Walter mine showed 99.1 percent carbon, prompting the company to look at better defining the scope of the deposits. At Hal Tan, an NI 43-101 technical report is expected in the next few months.

9. North Arrow Minerals (TSXV:NAR); current price: $0.66; year-to-date gain: 88.5 percent; 52-week high: $0.70.

North Arrow Minerals is identifying diamond exploration opportunities in Canada. Key projects include the Qilalugaq and Pikoo projects currently under option from Stornoway Diamond (TSX:SWY), the Lac de Gras project, a joint venture with Dominion Diamond (NYSE:DDC,TSX:DDC), and the Redemption project optioned from Arctic Star Minerals. In October North Arrow closed a $5.4 million financing, followed by a high microdiamond count at its Pikoo project in Saskatchewan.

10. Solid Resources (TSXV:SRW); current price: $0.14; year-to-date gain: 86.6 percent; 52-week high: $0.14.

Solid Resources, a Canadian junior focused in Spain, is advancing the Cehegin iron ore mine and applying for an exploration permit at its Alberta-1 tin-tantalum-lithium property. In October, Solid formed a joint venture with a subsidiary of Glencore Xstrata (LSE:GLEN) to develop the Cehegin mine, under which Glencore would be granted a 20 percent interest and Solid would retain 80 percent. Glencore Xstrata would also purchase the entire production take from the iron ore mine.

 


10 Top Silver-producing Countries

Worldwide silver production increased during 2014 despite reduced demand for the metal across several industries. Specifically, the US Geological Survey (USGS) states in its most recent report on silver6 that mine output rose to 26,100 metric tons (MT) last year.

The USGS notes that the need for silver in photographic applications has been greatly reduced in recent years, and highlights declining interest in the metal from the jewelry and electronics industries. Despite those shifts, new uses for silver in medical applications and improving demand for the metal in other sectors could buoy future demand for silver.

With those figures in mind, it’s worth looking at which countries produced the most of the white metal in 2014. Here’s a brief overview of the 10 top silver-producing countries of 2014.

1. Mexico

Mine production: 4,700 MT

Mexican silver production dipped by 160 MT in 2014, but the country remained the world’s largest silver producer, mining 4,700 MT of the white metal.

The country is home to one of the most productive silver-mining companies in the world, Fresnillo (LSE:FRES8). Fresnillo mines silver and gold9 at six different projects throughout Mexico, and has several other mines in various states of development; it’s aiming to increase its silver production to more than 65 million ounces by 2018.

Goldcorp (TSX:G10) is the country’s other large producer, and its Peñasquito mine posted the second-highest silver production in 201311. Like many silver mines, Peñasquito is primarily a gold project. Silver is often coincident with other resources, and is regularly mined as a by-product.

2. China

Mine production: 4,200 MT

As of 2002, the Silver Institute ranked China as the world’s fourth-largest silver producer12. Over the past 12 years, the country’s silver production has steadily increased, and it now produces just 500 MT fewer than Mexico, the world’s leader. The Silver Institute attributes a large part of this rise to China’s development in other mining operations — as of 2012, nearly 95 percent of Chinese silver production was a by-product of other mining projects.

Silvercorp Metals (TSX:SVM13,NYSE:SVM) bills itself as the largest primary silver producer in China. The company has two projects in the Asian nation, though one is currently in development.

3. Peru

Mine production: 3,700 MT

In addition to being the world’s third-biggest silver producer, Peru features the largest-known silver reserves, according to the USGS. With 98,900 known MT of silver, the country has a massive amount of untapped silver potential that could allow it to move up the rankings in the future.

The majority of Peru’s silver comes from the Antamina mine14 in Northern Peru, according to Kitco News. The mine began as a joint venture between BHP Billiton (ASX:BHP15,NYSE:BHP,LSE:BLT), Glencore (LSE:GLEN16), Teck Resources (TSX:TCK.B17,NYSE:TCK) and Mitsubishi (TSE:805818). While the mine produces more silver than any other in the country, it is primarily a copper19 mine, and silver is produced as a by-product.

4. Australia

Mine production: 1,900 MT

There’s a pronounced difference between the amount of silver produced by the top three global producers and the countries that fill in the rest of the top 10. Australia sits in fourth place and produced 1,900 MT of silver in 2014. Silver mining has a rich history in Australia, and BHP Billiton began as a silver-mining operation20 in the 1920s, according to the Australian Mines Atlas.

Today, BHP Billiton is a multinational mining company with projects located around the world. It remains the largest silver producer in Australia, and operates the Cannington mine in Queensland, which produces more silver than any other project in the country.

5. Russia

Mine production: 1,700 MT

Russian silver production held steady last year at 1,700 MT. The country’s silver reserves are unknown, but it has remained on the top 10 list of silver producers for many years.

The country’s largest silver producer21 is Polymetal International (LSE:POLY22). Polymetal dominates silver mining in Russia and operates four of the top five silver mines23 in the country.

6. Bolivia

Mine production: 1,300 MT 

While Bolivian silver output remained relatively consistent between 2013 and 2014, the mining industry has room to continue expanding. The country is home to several silver mines, particularly in the Potosi region, and Mining-Technology.com reported that the San Cristobal mine features the third-largest silver reserves24 of any mine.

7. Chile

Mine production: 1,200 MT 

Mines in Chile churned out 1,200 MT of silver last year, and the future could bring a rise in production. The country’s Economic Development Agency recently announced a new program aimed at increasing the country’s mining production25 by raising energy26 efficiency and cutting costs. During the next three years, officials will discuss a plan that should increase the country’s competitiveness through 2035.

8. Poland

Mine production: 1,200 MT 

Poland’s output matched Chile’s at 1,200 MT, showing no change from a year prior. Poland-based KGHM Polska Miedsz (WSE:KGH27) is consistently one of the world’s top silver-producing companies, according to the Silver Institute, and the company could expand to become larger. The USGS places Poland in a tie with Australia for the world’s second-largest silver reserves.

9. United States

Mine production 1,170 MT 

The US features three dedicated silver mines and procures small amounts of silver from a variety of other projects. Production rose by 130 MT during 2014, hitting 1,170 MT overall. Alaska and Nevada produce more silver than the nation’s other states. The largest US-based primary silver producer28 is Coeur Mining (NYSE:CDE29). Coeur maintains projects in the US alongside other silver mines in South America and Australia.

10. Canada

Mine production: 646 MT 

While Canada is home to Silvercorp and several other silver miners, it does not produce an enormous amount of silver annually. Canadian companies generally maintain projects in countries with more robust silver production. There are significant silver deposits30 in British Columbia, according to government reports, but the highest-quality metal comes from polymetallic veins that do not necessarily target silver specifically.


(August 21, 2013)

Top 10 Silver-producing Countries in 2012

Silver mining is widespread among countries around the world, from South America to Asia and Africa. The white metal finds value as both a precious — used to make jewelry and coins — and industrial metal — used in cellphones and solar panels. What some investors might find interesting is that silver is produced by and large as a by-product of metal, mined alongside other commodities like copper, lead 31and zinc32, rather than coming from primary silver production.

Global silver production increased to 787 million ounces in 2012, according to the Silver Institute. Below are the 10 countries with the greatest production that year.

Mexico

Mine production: 162.2 million ounces

Silver production in Mexico increased 6 percent in 2012, up from 153 million ounces in 2011. The country has been a major producer of the precious metal for centuries.

Mexico-based precious metals company Fresnillo (LSE:FRES33) is the largest primary silver producer in the world, according to its website. With seven assets currently in operation, the company’s total proven and probable reserves34 is 497.96 million ounces.

However, according to Forbes, Goldcorp’s (NYSE:GG35Penasquito mine36 was vital in growing the country’s overall production in 2012. On that property, silver is mined as a by-product of gold, lead and zinc. Goldcorp expects its silver production to reach as much as 21 million ounces37 in 2013.

China

Mine production: 117 million ounces

In 2012, China surpassed Peru to become the second-largest producer of silver in the world. According to Kitco, the former’s production grew from 104 million ounces38 the year prior. Despite slight changes in its position over the years, China has always been a top producer of the precious metal.

Silvercorp Metals (NYSE:SVM39) is a Canadian mining company with multiple mines in China. According to its website, in fiscal 2012 it saw a silver production of 5.6 million ounces40.

Peru

Mine production: 111.3 million ounces

Peru was pushed out of its second-place spot by China in 2012, but it still remains at the top of global silver production. In 2011, Peru produced 110 million ounces of the precious metal. The South American country still has the largest in-ground reserves of silver in the world, at 120,000 tons, according to the US Geological Survey41.

The Antamina mine in north-central Peru is one of the greatest silver producers in the world. Its primary operator is Compania Minera Antamina , and its silver production as of Dec. 31, 2012 was 12 million ounces42.

Australia

Mine production: 56.9 million ounces

Like Peru, Australia also has sizable silver reserves of 69,000 tons. According to Geoscience​ Australia, most of the country’s supply of the metal comes from the silver-bearing lead mineral galena20.

In 2012, Australia’s multinational mining and petroleum company BHP Billiton (NYSE:BHP43,ASX:BHP,LSE:BLT) saw a silver output of 39 million ounces, making it the second-largest silver-producing organization that year.

Russia

Mine production: 45 million ounces

Along with China and Mexico, Russia was responsible for much of the global increase of silver supply in 2012. Polymetal International (LSE:POLY44) is the country’s greatest producer45 of the metal. In 2012, its output was 26.5 million ounces, according to the Silver Institute.

Poland

Mine production: 41.2 million ounces

Poland is home to the largest silver-producing company in the world, KGHM Polska Miedz (OTCMKTS:KGHPF46). In 2012, KGHM’s output reached 41 million ounces. Poland overall contains the second-largest silver reserves in the world, at 85,000 tons, as per the US Geological Survey.

Bolivia

Mine production: 39.7 million ounces

Bolivia hosts 22,000 tons of silver. Most of the nation’s supply of the commodity is found in conjunction with tin. Sumitomo47 (TSE:805348) is the primary silver company in Bolivia, with an output of 13, million ounces in 2012. Its subsidiary, Minera San Cristobal, operates the San Cristobal silver mine, which is a top-producing asset.

Chile

Mine production: 37 million ounces

The South American country saw one of the biggest declines in silver production during 2012, according to Neil Meader, head of precious metals research and forecasts at Reuters. When combined with the United States, the two nations lost 7.4 million ounces of production of the metal last year. Chile’s total silver reserves are 70,000 tons, the third largest in the world.

United States

Mine production: 32.6 million ounces

As mentioned, silver output in the United States dropped in 2012. The country has 25,000 tons of the precious metal. Coeur d’Alene Mines (NYSE:CDE49) is the largest primary silver producer in the United States and had the ninth greatest output in 2012, with 18, million ounces.

Argentina

Mine production: 24.1 million ounces

Argentina’s silver reserves are too small to be reported by the US Geological Survey, but in 2012 its Pirquitas mine, operated by Silver Standard Resources (TSX:SSO50), had the fifth largest production of all global assets, at 8.6 million ounces.


10 Top Silver-producing Countries

10 Top Silver-producing Countries

Worldwide silver production increased during 2014 despite reduced demand for the metal across several industries. Specifically, the US Geological Survey (USGS) states in its most recent report on silver that mine output rose to 26,100 metric tons (MT) last year.

The USGS notes that the need for silver in photographic applications has been greatly reduced in recent years, and highlights declining interest in the metal from the jewelry and electronics industries. Despite those shifts, new uses for silver in medical applications and improving demand for the metal in other sectors could buoy future demand for silver.

With those figures in mind, it’s worth looking at which countries produced the most of the white metal in 2014. Here’s a brief overview of the 10 top silver-producing countries of 2014.

1. Mexico

Mine production: 4,700 MT

Mexican silver production dipped by 160 MT in 2014, but the country remained the world’s largest silver producer, mining 4,700 MT of the white metal.

The country is home to one of the most productive silver-mining companies in the world, Fresnillo (LSE:FRES). Fresnillo mines silver and gold at six different projects throughout Mexico, and has several other mines in various states of development; it’s aiming to increase its silver production to more than 65 million ounces by 2018.

Goldcorp (TSX:G) is the country’s other large producer, and its Peñasquito mine posted the second-highest silver production in 2013. Like many silver mines, Peñasquito is primarily a gold project. Silver is often coincident with other resources, and is regularly mined as a by-product.

2. China

Mine production: 4,200 MT

As of 2002, the Silver Institute ranked China as the world’s fourth-largest silver producer. Over the past 12 years, the country’s silver production has steadily increased, and it now produces just 500 MT fewer than Mexico, the world’s leader. The Silver Institute attributes a large part of this rise to China’s development in other mining operations — as of 2012, nearly 95 percent of Chinese silver production was a by-product of other mining projects.

Silvercorp Metals (TSX:SVM,NYSE:SVM) bills itself as the largest primary silver producer in China. The company has two projects in the Asian nation, though one is currently in development.

3. Peru

Mine production: 3,700 MT

In addition to being the world’s third-biggest silver producer, Peru features the largest-known silver reserves, according to the USGS. With 98,900 known MT of silver, the country has a massive amount of untapped silver potential that could allow it to move up the rankings in the future.

The majority of Peru’s silver comes from the Antamina mine in Northern Peru, according to Kitco News. The mine began as a joint venture between BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT), Glencore (LSE:GLEN), Teck Resources (TSX:TCK.B,NYSE:TCK) and Mitsubishi (TSE:8058). While the mine produces more silver than any other in the country, it is primarily a copper mine, and silver is produced as a by-product.

4. Australia

Mine production: 1,900 MT

There’s a pronounced difference between the amount of silver produced by the top three global producers and the countries that fill in the rest of the top 10. Australia sits in fourth place and produced 1,900 MT of silver in 2014. Silver mining has a rich history in Australia, and BHP Billiton began as a silver-mining operation in the 1920s, according to the Australian Mines Atlas.

Today, BHP Billiton is a multinational mining company with projects located around the world. It remains the largest silver producer in Australia, and operates the Cannington mine in Queensland, which produces more silver than any other project in the country.

5. Russia

Mine production: 1,700 MT

Russian silver production held steady last year at 1,700 MT. The country’s silver reserves are unknown, but it has remained on the top 10 list of silver producers for many years.

The country’s largest silver producer is Polymetal International (LSE:POLY). Polymetal dominates silver mining in Russia and operates four of the top five silver mines in the country.

6. Bolivia

Mine production: 1,300 MT 

While Bolivian silver output remained relatively consistent between 2013 and 2014, the mining industry has room to continue expanding. The country is home to several silver mines, particularly in the Potosi region, and Mining-Technology.com reported that the San Cristobal mine features the third-largest silver reserves of any mine.

7. Chile

Mine production: 1,200 MT 

Mines in Chile churned out 1,200 MT of silver last year, and the future could bring a rise in production. The country’s Economic Development Agency recently announced a new program aimed at increasing the country’s mining production by raising energy efficiency and cutting costs. During the next three years, officials will discuss a plan that should increase the country’s competitiveness through 2035.

8. Poland

Mine production: 1,200 MT 

Poland’s output matched Chile’s at 1,200 MT, showing no change from a year prior. Poland-based KGHM Polska Miedsz (WSE:KGH) is consistently one of the world’s top silver-producing companies, according to the Silver Institute, and the company could expand to become larger. The USGS places Poland in a tie with Australia for the world’s second-largest silver reserves.

9. United States

Mine production 1,170 MT 

The US features three dedicated silver mines and procures small amounts of silver from a variety of other projects. Production rose by 130 MT during 2014, hitting 1,170 MT overall. Alaska and Nevada produce more silver than the nation’s other states. The largest US-based primary silver producer is Coeur Mining (NYSE:CDE). Coeur maintains projects in the US alongside other silver mines in South America and Australia.

10. Canada

Mine production: 646 MT 

While Canada is home to Silvercorp and several other silver miners, it does not produce an enormous amount of silver annually. Canadian companies generally maintain projects in countries with more robust silver production. There are significant silver deposits in British Columbia, according to government reports, but the highest-quality metal comes from polymetallic veins that do not necessarily target silver specifically.

_________________________________________________________________________

(August 21, 2013)

Top 10 Silver-producing Countries in 2012

Silver mining is widespread among countries around the world, from South America to Asia and Africa. The white metal finds value as both a precious — used to make jewelry and coins — and industrial metal — used in cellphones and solar panels. What some investors might find interesting is that silver is produced by and large as a by-product of metal, mined alongside other commodities like copper, lead and zinc, rather than coming from primary silver production.

Global silver production increased to 787 million ounces in 2012, according to the Silver Institute. Below are the 10 countries with the greatest production that year.

Mexico

Mine production: 162.2 million ounces

Silver production in Mexico increased 6 percent in 2012, up from 153 million ounces in 2011. The country has been a major producer of the precious metal for centuries.

Mexico-based precious metals company Fresnillo (LSE:FRES) is the largest primary silver producer in the world, according to its website. With seven assets currently in operation, the company’s total proven and probable reserves is 497.96 million ounces.

However, according to Forbes, Goldcorp’s (NYSE:GGPenasquito mine was vital in growing the country’s overall production in 2012. On that property, silver is mined as a by-product of gold, lead and zinc. Goldcorp expects its silver production to reach as much as 21 million ounces in 2013.

China

Mine production: 117 million ounces

In 2012, China surpassed Peru to become the second-largest producer of silver in the world. According to Kitco, the former’s production grew from 104 million ounces the year prior. Despite slight changes in its position over the years, China has always been a top producer of the precious metal.

Silvercorp Metals (NYSE:SVM) is a Canadian mining company with multiple mines in China. According to its website, in fiscal 2012 it saw a silver production of 5.6 million ounces.

Peru

Mine production: 111.3 million ounces

Peru was pushed out of its second-place spot by China in 2012, but it still remains at the top of global silver production. In 2011, Peru produced 110 million ounces of the precious metal. The South American country still has the largest in-ground reserves of silver in the world, at 120,000 tons, according to the US Geological Survey.

The Antamina mine in north-central Peru is one of the greatest silver producers in the world. Its primary operator is Compania Minera Antamina , and its silver production as of Dec. 31, 2012 was 12 million ounces.

Australia

Mine production: 56.9 million ounces

Like Peru, Australia also has sizable silver reserves of 69,000 tons. According to Geoscience​ Australia, most of the country’s supply of the metal comes from the silver-bearing lead mineral galena.

In 2012, Australia’s multinational mining and petroleum company BHP Billiton (NYSE:BHP,ASX:BHP,LSE:BLT) saw a silver output of 39 million ounces, making it the second-largest silver-producing organization that year.

Russia

Mine production: 45 million ounces

Along with China and Mexico, Russia was responsible for much of the global increase of silver supply in 2012. Polymetal International (LSE:POLY) is the country’s greatest producer of the metal. In 2012, its output was 26.5 million ounces, according to the Silver Institute.

Poland

Mine production: 41.2 million ounces

Poland is home to the largest silver-producing company in the world, KGHM Polska Miedz (OTCMKTS:KGHPF). In 2012, KGHM’s output reached 41 million ounces. Poland overall contains the second-largest silver reserves in the world, at 85,000 tons, as per the US Geological Survey.

Bolivia

Mine production: 39.7 million ounces

Bolivia hosts 22,000 tons of silver. Most of the nation’s supply of the commodity is found in conjunction with tin. Sumitomo (TSE:8053) is the primary silver company in Bolivia, with an output of 13, million ounces in 2012. Its subsidiary, Minera San Cristobal, operates the San Cristobal silver mine, which is a top-producing asset.

Chile

Mine production: 37 million ounces

The South American country saw one of the biggest declines in silver production during 2012, according to Neil Meader, head of precious metals research and forecasts at Reuters. When combined with the United States, the two nations lost 7.4 million ounces of production of the metal last year. Chile’s total silver reserves are 70,000 tons, the third largest in the world.

United States

Mine production: 32.6 million ounces

As mentioned, silver output in the United States dropped in 2012. The country has 25,000 tons of the precious metal. Coeur d’Alene Mines (NYSE:CDE) is the largest primary silver producer in the United States and had the ninth greatest output in 2012, with 18, million ounces.

Argentina

Mine production: 24.1 million ounces

Argentina’s silver reserves are too small to be reported by the US Geological Survey, but in 2012 its Pirquitas mine, operated by Silver Standard Resources (TSX:SSO), had the fifth largest production of all global assets, at 8.6 million ounces.


Drill Tracker Weekly: NGEx Expands Filo del Sol Silver Footprint

NGEx Resources (TSX:NGQ)

Price: $1.09

Market cap: $204 million

Cash estimate: $28 million

Project: Filo del Sol

Country: Argentina

Ownership: 60 percent

Resources: 11.8 million tonnes at 105 g/t silver, 0.4 g/t gold, 0.45 percent copper

Project status: Additional RC drilling

ngex

  • NGEx Resources announced results from the first eight reverse-circulation drill holes on the Filo del Sol high-sulfidation/copper-gold-silver porphyry project in Argentina. The project is a joint venture with Pan Pacific Copper (66 percent JX Nippon and 34 percent Mitsui Mining and Smelting (TSE:5706)), with NGEx holding a 60-percent interest.
  • Highlights include 72 meters (68 meters true width) grading 339 g/t silver, 0.34 g/t gold and 0.43 percent copper starting at a depth of 248 meters; that has extended the mineralization 140 meters to the west of the current resource. An additional hole ending in mineralization returned 26.3 meters grading 3.87 percent copper, 0.24 g/t gold and 2.3 g/t silver from 204 meters depth.
  • In December 2014, the company announced the initial resource estimate for the silver zone with an inferred resource of 11.8 million tonnes grading 105.5 g/t silver, 0.4 g/t gold and 0.45 percent copper using a 50 g/t silver cut off. The report also includes an inferred resource for the copper zone of 38.3 million tonnes grading 0.85 percent copper, 0.36 g/t gold and 12.8 g/t silver using a 0.5-percent copper cut off. Metallurgical work will be critical in determining the valuation of the mixed mineral zones.
  • The Filo del Sol project is part of a much larger mineralized system complicated by the international border between Chile and Argentina. The company has outlined two nearby resources at Josemaria and Los Helados in Chile. Josemaria has an indicated resource of 789 million tonnes grading 0.35 percent copper and 0.24 g/t gold, while the Los Helados joint venture hosts an estimated indicated resource of 1.395 billion tonnes at 0.42 percent copper, 0.16 g/t gold and 1.37 g/t silver using a cut off of 0.44 percent copper equivalent.

ngex 2

 

Early discovery holes (Tenke 2001): 118 meters at 0.51 percent copper, 81 g/t silver, 0.38 g/t gold

Current holes: 72 meters at 339 g/t silver, 0.34 g/t gold, 0.43 percent copper

 

Disclosure: I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable, but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report.

This report makes not recommendations to buy sell or hold.

Wayne Hewgill is a geologist with extensive knowledge of the global mining industry gained through 30 years of diversified experience in mineral exploration and new business development in Canada, as well as 10 years living in Africa, New Zealand and Australia. He was previously senior research officer at BHP Billiton, an executive with an exploration company working in Argentina and a mining analyst at three Vancouver-based financial groups where he developed the Drill Tracker database in 2006. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.


The Core Shack Dozen: Kootenay Discovers Near-surface Silver Deposit at La Negra

The “Drill Tracker” highlights early stage drilling and trenching results, giving a metric to evaluate exploration results and compare them against their peer group. In this report we highlight a dozen exploration companies displaying their projects in the Core Shack at the AME BC Roundup held in Vancouver between January 26 and 29, 2014.

Kootenay Silver (TSXV:KTN)

Price: $0.42

Market cap: $23.8 million

Cash estimate: $3 million

Project: La Negra

Country: Sonora, Mexico

Ownership: 100 percent

kootenay chart

  • In 2014, Kootenay Silver announced the discovery of a new, previously unidentified silver deposit at the La Negra prospect in Sonora, Mexico. The 500-by-200-meter zone was initially outlined in a trenching program followed up by diamond drilling. The project is located approximately 7 kilometers north of the company’s 100-percent-owned Promontorio project.
  • The 25 holes in the initial drilling confirmed near-surface mineralization with higher grades at depth, with most holes mineralized from surface. Highlights include:
    • Discovery hole – 41 meters grading 110.46 g/t silver, including:
      • 13 meters of 223.23 g/t silver
    • 200 meters grading 156.47 g/t silver, including 50 meters of 420.34 g/t silver
    • 144 meters grading 82.57 g/t silver, including 28 meters of 212.64 g/t silver
    • 34 meters grading 265.31 g/t silver, including 13 meters of 467.77 g/t silver
  • Mineralization occurs within porous, matrix-supported polyphase breccia as silver chlorargyrite, a potentially easily leachable silver chlorite mineral associated with alteration in other important silver deposits in Mexico. The high amount of void space in the matrix may indicate that mineralization could have been leached out during the weathering process.
  • The company’s nearby Promontorio deposit hosts a measured and indicated pit-constrained resource estimate of 44.5 million tonnes grading 27.77 g/t silver, 0.35 g/t gold, 0.4 percent lead and 0.47 percent zinc with additional underground potential of 215,000 tonnes at 22.89 g/t silver, 0.28 g/t gold, 0.4 percent lead and 0.55 percent zinc.

kootenay chart 2

Project status: New silver discovery October 2014

Resource: N/A

Catalysts: Drilling in February 2015

 

Disclosure: I, Wayne Hewgill, certify that the information in this report is sourced through public documents that are believed to be reliable, but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report.

At the date of this release the author, Wayne Hewgill, owns shares in the following companies:

  • Atac Resources (TSXV:ATC)
  • Balmoral Resources (TSX:BAR)
  • Fission Uranium (TSX:FCU)
  • Pilot Gold (TSX:PLG)

This report makes not recommendations to buy sell or hold.

Wayne Hewgill is a geologist with extensive knowledge of the global mining industry gained through 30 years of diversified experience in mineral exploration and new business development in Canada, as well as 10 years living in Africa, New Zealand and Australia. He was previously senior research officer at BHP Billiton, an executive with an exploration company working in Argentina and a mining analyst at three Vancouver-based financial groups where he developed the Drill Tracker database in 2006. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.


Chris Thompson: Gold and Silver Miners that Can Make Money Now

Source: Kevin Michael Grace of The Gold Report (8/13/14)

As much as we’d all like significantly higher silver and gold prices, Chris Thompson of Raymond James doesn’t expect them. The good news, he argues, is that the relative stability now characterizing the market permits investors to make informed decisions about which companies can build value and demonstrate cash flows at today’s prices. In this interview with The Gold Report, Thompson lists a handful of gold and silver miners prepared to do just that.

 

The Gold Report: In your previous Gold Report interview of Dec. 31, 2013, you predicted 2014 prices of $1,400 per ounce ($1,400/oz) for gold and $25/oz for silver. Do you think that gold and silver can still meet those prices this year?

Chris Thompson: Those figures referred to the high side of the anticipated trading range for both metals. Today, our prediction for the high side in 2014 is $1,350/oz for gold and $22/oz for silver. In other words, we see silver potentially trading up to $22/oz this year but do not imply in any way that we expect silver to average $22/oz this year.

TGR: Several recent Gold Report interviewees have expressed surprise and even astonishment that the deteriorating global political situation combined with continuing weak U.S. economic performance has not resulted in significantly higher precious metals prices. What’s your view?

CT: We think gold and silver have performed relatively well this year and showed strength toward the end of the second quarter. My feeling is that stronger gold and silver prices that we have seen earlier than anticipated this year is a reflection of global political tensions and maybe just a reminder that we are not out of the woods as far as U.S. economic performance is concerned. Earlier is better, and so we look for gold and silver prices to retain most of their gains in the third quarter.

TGR: After gold fell significantly under $1,200/oz, there was a loud chorus to the effect that gold had been overvalued and overbought for a long time. Has this negative atmosphere been dissipated?

CT: It was not just gold bullion that was hurt by this negative atmosphere. It was the gold-mining companies—in fact, the entire gold industry and its participants.

TGR: Could you elaborate on that?

CT: What we’re seeing at the moment is a restoration of market credibility, especially from the mining company side of things. The mining industry enjoyed for a long time a never-ending climate of strengthening metal prices; that was reversed last year. As a result, companies have had to deal with this reverse by slashing costs, revising their operating plans and, frankly, delivering what investors have always wanted from them: real growth and the generation of real cash flows at current metal prices, not growth at any cost.

TGR: The Dow Jones and the S&P 500 have continued to hit record highs even as many worry about a bubble. Does it surprise you that precious metals equities have done so poorly in the last three years compared to the broader indices?

CT: Not at all. Because of their dependence on ever-higher metals prices, the investment appetite for precious metals equities has been muted. Investors and institutional clients have in fact made money bynot investing in precious metals. As you suggest, however, our view is that perhaps clients should start looking for quality, precious metal-focused stories that are arguably undervalued today. Indications are that clients have been giving the precious metals sector a second look.

TGR: Do you think that the broader indices are in bubble territory?

CT: My view is that it’s all about real return. It doesn’t matter what the commodity is or what the company is. So long as companies can offer real returns from doing what they do, and there’s a value opportunity in what they can deliver. Companies aren’t overvalued, regardless of sector, if they deliver real returns. Also, investors have to be realistic about what returns to be satisfied with.

TGR: With regard to offering real returns, how difficult is it for mining companies to make money at $1,300/oz gold and $20/oz silver?

CT: There are companies that can make money at those prices and others that will struggle. It comes down to two criteria. The first is a management team that can demonstrate the ability to reduce costs and keep them low. The second is deposits that make sense in today’s metal price environment: good grades that come without significant technical challenges.

TGR: What’s your favorite junior gold company project?

CT: Asanko Gold Inc. (AKG:TSX; AKG:NYSE.MKT). We initiated coverage a couple of months ago primarily because of the company’s management team. The company has brought together two projects in Ghana, the Obotan and Esaase projects, into one large potential operation. Capital expenditures for Phase 1 of the Asanko gold mine are only $295 million ($295M). Phase 1 is fully funded and fully permitted for construction and production.

TGR: Asanko shares are trading around $2.70. Your 52-week target price is $4. On what do you base this valuation?

CT: We derive our value assessment in this instance from a net asset value estimate at a 5% discount rate. For Asanko, we see initial production occurring in Q2/16. For that year, we forecast 160,000 ounces (160 Koz) gold production at an all-in cash cost of about $900/oz. We see that increasing the following year, obviously a full year of production, to over 200 Koz at similar all-in cash costs. Then, ultimately, when the project fully ramps up, we see both projects, Phases 1 and 2, offering the potential to deliver over 400 Koz gold production by 2020. Recognizing our metal price forecast of $1,350/oz and a 5% discount rate, this operational and development scenario warrants a value of $4/share, in our opinion.

TGR: You previously predicted several 2014 sector outperformers in silver. Have these companies met your expectations?

CT: Fortuna Silver Mines Inc. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) and Tahoe Resources Inc. (THO:TSX; TAHO:NYSE) have absolutely met my expectations. First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE) has lagged the sector somewhat because of operational redesigns currently occurring at two of its key operations in Mexico. We do, however, see a good value opportunity here and expect First Majestic to catch up somewhat to its peers.

Fortuna is a rare example of a company that operates two mines in two countries efficiently and cost effectively. One of those mines has had tremendous exploration success through the discovery of a new high-grade zone.

TGR: Would that be at Caylloma in Peru or San Jose in Mexico?

CT: San Jose. Its new high-grade zone, Trinidad North, is within easy reach of existing development. What this means for Fortuna is a tremendous opportunity for organic production growth and cash-flow growth. The grade of this new discovery is better than the head grade of its current operation. For example, select assays published July 14 include 399 grams per ton (399 g/t) silver and 2.15 g/t gold (528 g/t silver equivalent) over 13 meters. So Trinidad North will have a very favorable effect on San Jose’s overall cost structure and growth profile.

Fortuna is the sort of company we really look for and really like. We see potential here for an additional lift in valuation. That will be determined by its ability to increase San Jose’s production capacity beyond the current 2,000 ton per day (2,000 tpd) mill rate.

TGR: What can you tell us about Tahoe’s Escobal project in Guatemala?

CT: The project was commissioned earlier this year, and, by all accounts, its ramp-up seems to be going smoothly. Tahoe is a company that offers an exceptionally well-qualified and well-respected management team. The Escobal asset is an anomaly in many respects in the silver sector. It is a very high-grade and a very economically robust project, one that stands to deliver significant cash flow in the near term. So in many respects Tahoe commands a premium valuation in the silver market at the moment for these reasons.

There are a couple of key items that we’re looking for from Tahoe by the end of 2014. The first would be, obviously, the completion of its production ramp-up to 3,500 tpd. The second would be the declaration of a dividend, which the company had announced previously it intends to deliver. The third would be a balance-sheet reorganization. We anticipate that the company will take on a level of debt, which in many respects would be a relatively small component of the company’s current capitalization. As far as our outlook for Tahoe goes, while we consider it fairly valued at current metal prices, we recognize the excellent job that management has done in building the industry’s largest and most profitable silver projects.

TGR: How do you rate Guatemala as a jurisdiction, especially after the increased cost of mining in Mexico due to its new tariff?

CT: Guatemala’s mining industry is relatively immature in comparison with Mexico’s. Mexico is, by far, the better jurisdiction. It has a longer history of mining and produces many more silver ounces than Guatemala. Guatemala is a more challenging place to operate from a geopolitical and a community perspective. It is much poorer than Mexico, with a nominal per-capita GDP of only 31% of its northern neighbor. And when you have one of the largest and most profitable silver mines in the world being developed in such a poor country, it can be a contentious issue.

TGR: How has Mexico’s 7.5% flat tax on earnings before interest, taxes, depreciation and amortization (EBITDA) affected mining companies?

CT: It has been largely factored into market prices for the Mexico-focused precious metal producers. Mexico remains a very important jurisdiction for world silver production. It offers a trained labor force and, as far as infrastructure is concerned, remains the preferred destination for developing silver exploration opportunities. These realities far outweigh the negative effect the flat tax has had on Mexico’s ranking as a mining jurisdiction.

TGR: No one likes paying more to the government, but mining companies are looking for stability. Do they continue to see Mexico as a stable mining regime?

CT: Nationally, Mexico remains a stable mining regime, but understand that Mexico is a large, federal jurisdiction with many states that differ in how accepting they are of mining.

TGR: Could you comment on other silver companies with operations in Mexico?

TGR: Pan American Silver Corp. (PAA:TSX; PAAS:NASDAQ) has performed very well in the marketplace over the last year. This is one company that has adapted well to a lower silver price environment. It is well managed, and I expect it to continue to pay an attractive dividend. It has one of the strongest balance sheets in the sector. At current metal prices, I consider it fairly valued in the market today.

SilverCrest Mines Inc. (SVL:TSX; SVLC:NYSE.MKT) is a very interesting story. It is in the process of redeveloping its key asset, the Santa Elena mine, from a heap-leach deposit to an underground milling operation. I understand that commissioning is proceeding on plan and on budget. (Editor’s Note: SilverCrest announced on Aug. 11 that it completed the mill commissioning.) My feeling is that Santa Elena at depth offers significant production-growth potential. The key will be whether the company can maintain a low-cost profile while remaining cognizant of the higher costs associated with underground production.

TGR: How does the grade compare underground?

CT: The grade is higher than the heap leach. The benefit, though, will be the mill, whose operation will engender higher recoveries.

TGR: Were there any other companies you want to mention?

CT: Our preferred micro-cap story in the silver space is Santacruz Silver Mining Ltd. (SCZ:TSX.V; SZSMF:OTCQX; 1SZ:FSE). It is ramping up production from its Rosario mine in Mexico a little slower than anticipated but pretty much on track with our outlook for the operation. A key component of Santacruz’s valuation will be its development-stage project, San Felipe. We await a preliminary economic assessment of this, which will better define how much of an opportunity it is. Santacruz is definitely a company to watch.

TGR: Having been hurt so much in the recent past, many investors await evidence that the tide has turned before they return to mining stocks. Do you think the worst is behind us?

CT: I don’t think the mining sector is in a bull market at the moment. What is working in this sector’s favor now is reduced volatility, not only with metals prices but also equity prices. If these trends continue, we can expect to see companies like the Fortunas and Tahoes of the world make tremendous strides in adding value at current prices. Such companies will find traction in the marketplace, and their shareholders will be rewarded.

Our outlook doesn’t in any way suggest that the whole market will move in unison, but provided that metal prices stay stable, we do expect that well-managed companies meeting expectations and delivering real cash flows will shine brightly.

TGR: Chris, thank you for your time and your insights.

Chris Thompson, PGeo, is an analyst for Raymond James specializing in precious metals and small to mid-cap developers and producers. He worked previously for Haywood Securities. He holds a Bachelor of Science in mining and exploration geology, a Master of Science in mineral economics and a graduate diploma in mining engineering from the University of the Witwatersrand in South Africa. He was awarded the 2011 StarMine Top Analyst Award for Stock Picker in the Metals and Mining sector.

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 recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

DISCLOSURE:

1) Kevin Michael Grace conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an independent contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of Streetwise Reports: Asanko Gold Inc., Fortuna Silver Mines Inc., Tahoe Resources Inc. and SilverCrest Mines Inc. Streetwise Reports does not accept stock in exchange for its services.

3) Chris Thompson: I own, or my family owns, shares of the following companies mentioned in this interview: None. I personally am, or my family is, paid by the following companies mentioned in this interview: None. Raymond James disclosures are available here. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.

5) The interview 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.

6) 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.


2013 Silver Top 10: The Producers

top 10The list of the 2013 top producing silver companies has been released by the Silver Institute. Representing several countries and many mineral focuses, the list spans from companies that primarily produce silver as a byproduct to dedicated silver miners. Major hotspots of activity, like Central America and South America, become obvious from a glance at the data the Silver Institute provides. Below is a closer look at each top company for 2013, and a bit about their flagship mines and forecasts for the year to come.

Fresnillo (LSE:FRES)

In 2013, Fresnillo produced 38.8 million ounces of silver in 2013, which represents a 4.3 percent increase year-over-year, according to the company’s preliminary 2013 report. For 2014, the company expects to produce some 42 million ounces of silver. The Mexico-based Fresnillo has the largest precious metals land reserve in that country, with six mines and two development projects.

BHP Billiton (NYSE:BHP, ASX:BHP)

Taking the second spot on the list is mining giant, BHP Billiton who produced 37.6 million ounces of silver in 2013. For BHP, Silver falls under the company’s copper business, headquartered in Santiago, Chile. Its Cannington Mine in Queensland, Australia, is one of the biggest silver production sites in the world, according to the company’s 2013 annual report. Silver production also takes place at Escondida, Chile, Antamina, Peru, and Pinto Valley, United States mines.

KGHM Polska Miedz (WSE:KGH)

Last year, KGHM Polska Miedz produced 37.3 million ounces of silver, which is a slight decrease from 2012 levels, according to the company’s 2013 report. Partly responsible for the decline in production was the decline in the price of silver, which dropped from year to year. KGHM Polska Miedz operates projects at on deposit in the Fore-Sudetic Monocline in Poland. Its mines are the Lubin, Rudna and Polkowice-Sieroszowice projects, each of which produces polymetallic ore that includes copper, silver, nickel, cobalt and molybdenum.

Glencore Xstrata (LSE:GLEN)

Glencore Xstrata is one of the largest resource companies in the world. In 2013, the company produced 37.1 million ounces of silver, taking into account the recent merger that created the company Glencore Xstrata and the production of all its subsidiaries. The company’s production rose from 2012, according to its annual report for 2013. The company, like many other top producers, gets its silver from copper projects around the world, including projects in Africa, South America and Australia. Its top producing mine for silver in 2013 was the Antamina project.

Goldcorp (TSX:G, NYSE:GG)

Investors may recognize the next entry from the recent top gold producer list, but sure enough, ​Goldcorp also produces silver. Last year the company produced 30.3 million ounces of silver in 2013 which is a bit of a drop in production from 2012. Goldcorp’s silver producing projects include the Penasquito mine in Mexico, which is the country’s largest. Other silver projects include the Marlin gold-silver mine and the Pueblo Viejo gold-silver-copper mine, both in Guatemala. The company does not disclose its forecasted silver production in its report, but predicts an increase in gold production, which may indicate an anticipated jump from the other precious metal as well.

Polymetal International (LSE:POLY)

Polymetal International produced 27.2 million ounces of silver in 2013. The company operates Dukat, Russia’s largest silver mine, where silver production increased 15 percent in 2013. Dukat is the third largest silver deposit in the world, according to Polymetal International’s 2013 report. The company operates in Russia and Kazakhstan, concentrating on the production of precious metals in that area.

Pan American Silver Corp (TSX:PAA)

Pan American Silver Corp produced 26 million ounces of silver in 2013. This represents a 4 percent year-over-year increase in production, according to the company’s annual report. Pan American Silver Corp forecasts between 25.75 and 26.75 million ounces of silver production in 2014. The company has projects in the US, Mexico, Peru, Bolivia and Argentina. Its top producing silver mine is Alamo Dorado in Mexico.

Volcan Cia. Minera (BME:XVOLB)

Volcan Cia. Minera produced 20.7 million ounces of silver in 2013. Its mines and concentrator and processing facilities are all located in Peru, and divided into three working units: UEA Chungar, which has the underground mines Aminon and Islay; UEA Cerro de Pasco with the Paragsha underground and Raul Rojas open pit mines; and UEA Yauli, which has four underground mines and three concentrator plants. Many of its projects in production or exploration will yield more silver for the company in years to come, according to the company’s website.

Cia. de Minas Buenaventura (NYSE:BVN)

Cia. de Minas Buenaventura produced 18.9 million ounces of silver in 2013. The company, also based in Peru, operates several mines in the country. Between its eight underground mines, Cia. de Minas Buenaventura produced gold, silver, lead and copper in 2013. Its top producing silver mine for the year was Uchucchacua, according to the company’s annual report. Silver production dropped in 2013 along with silver sales and the metal’s price, the report stated.

Coeur Mining (TSX:CDM,NYSE:CDE)

Coeur Mining produced 17 million ounces of gold in 2013. The company produces from the Palmarejo silver-gold mine in Mexico, the San Bartolome silver mine in Bolivia and the Rochester silver-gold mine in Nevada. In addition, Coeur has a portfolio of royalties and investment positions with other precious metals producers. The company’s silver reserves grew16 percent in 2013, according to its annual report. Palmarejo is the largest silver producing mine the company owns.

 

 


Silver Spends Week Above $21, Nearly Hits $22

Silver Spends Week Above $21, Nearly Hits $22

Last ThursdayStandard Bank warned silver market watchers not to be too excited about the white metal’s upward momentum as it has recently been “finding strong resistance on approach of $20.50.”

Since that time, however, the South African bank has been forced to eat its words — the very next day silver gave investors the Valentine’s Day gift of a four-month high, hitting $21.295 per ounce as its appeal as a hedge against inflation grew. That came on the back of data “showing that price pressures may be building in the US,” as per iNVEZZ.com.

This week, silver has improved on that gain, though Monday’s US holiday meant it was a little slow off the blocks. That sluggishness did not last long though — Tuesday, after sinking to $21.28, its low for the week thus far, the white metal rebounded to $21.97.

Wednesday, however, brought another pause in silver’s movement as traders waited for the release of the US Federal Reserve’s January meeting minutes. Their publication at the end of that day showed that some Fed policy makers “may consider raising interest rates sooner than previously expected,” ABC News states — unfortunately that news sent metals prices lower. For its part, silver closed down at $21.53.

Today silver again perked up, responding to disappointing US and Chinese manufacturing data, according to Reuters. It peaked at $21.90 midway through the afternoon, ultimately closing at $21.82 per ounce.

Company news

Vancouver’s SilverCrest Mines (TSXV:SVL,NYSEMKT:SVLC) on Monday provided the results of further delineation underground drilling completed at its Mexico-based Santa Elena mine in the fourth quarter of 2013. N. Eric Fier, the company’s president and COO, said that the program “was successful in confirming good continuity of the Main Mineralized Zone (MMZ) and high grades for the initial planned production stopes to be mined in 2014. Valuable information was also provided from this program to better define overall reserves and subsequent stope designs.”

SilverCrest followed that news up two days later with the announcement that it has entered into an agreement whereby a syndicate of underwriters will purchase 7,700,000 common shares of the company for gross proceeds of $20,020,000 on a bought-deal basis.

Pan American Silver (TSX:PAA,NASDAQ:PAAS), the world’s second-largest primary silver producer, released a slew of news this week. Wednesday, the company’s board of directors approved a quarterly cash dividend of $0.125 per common share; it will be distributed on or around March 17, 2014. The same day, Pan American said that due to a “very successful mine-site exploration campaign,” it has not only replaced the silver ounces it mined in 2013, but also “increased [its] silver mineral reserves by 2% to a record 323.5 million ounces.”

Finally, on Thursday, the company released its results for the fourth quarter of 2013, as well as 2013 as a whole. For the full year, it achieved silver production of 26 million ounces and gold production of 149,800 ounces, both of which are record amounts. However, while Pan American’s revenue for 2013 came to $824.5 million, it incurred a net loss $445.8 million, including a non-cash impairment charge for its Dolores mine (net of taxes) and a non-cash deferred tax charge of $86.8 million due to an alteration in Mexico’s tax rate.

Junior company news

Colombian Mines (TSXV:CMJ) on Wednesday said that it has collected reconnaissance samples assaying from 935 to 1,120 grams per tonne (g/t) silver, 3.88- to 9.54-percent copper and 0.992 to 1.258 g/t gold from the northernmost belt of mineralization at its Mercedes project.

The results “identify an important extension of high grade mineralization along a major structural corridor, and demonstrate the importance of airborne geophysics in identifying prospective targets within the large Mercedes project area,” the press release notes.

The same day, Bayhorse Silver (TSXV:BHS) filed a NI 43-101 technical report on its Oregon-based Bayhorse silver mine property, noting that it has submitted about 300 kilograms worth of mineral samples to Met-Solve Laboratories for “Dense Media Separation testing and to confirm the flotation recovery results from prior operators.”

Earlier today, Trevali Mining (TSX:TV,OTCQX:TREVF) revealed that it has achieved commercial production at its Peru-based zinc-lead-silver mine. In 2014, it expects to produce 42 to 45 million of zinc, 15 to 17 million pounds of lead and 700,000 to 720,ooo ounces of silver.

 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

Silver Trailing Gold, Facing Resistance at $20.50

Trevali Achieves Commercial Production at Peru-based Zinc-Lead-Silver Mine


Syria Concerns Bring Silver Near $25

Syria Concerns Bring Silver Near $25

This week, silver continued the upward movement it began two weeks ago, when, pulled upward by gold, it moved into bull market territory

The white metal began the week at $24.10, level with its Friday closing price. Capital Trading Group notes in its Monday precious metals commentary that silver seemed to be gaining support “from the prospect of lost supply from looming South African mining strike threats,” also stating that “the bull camp should retain an edge” as long as silver market participants believe Fed tapering is less likely.

From there, silver traded between $23.96 and $24.63 before rising to $24.93 on Wednesday, its high point for the week thus far — and also its highest level since April 15, as per Capital Trading Group. The firm notes that the precious metal was spurred upward by fear of military intervention in Syria.

However, since hitting that high, silver has declined slightly, following gold lower on reduced concern about Syria, according to The Market Oracle. After falling as low as $23.76 earlier today, the white metal closed at $23.88.

Company news

On Monday, IMPACT Silver (TSXV:IPTprovided its unaudited financial and production results for the second quarter and first half of 2013, commenting that its Q2 revenue came to $3.8 million, up 4 percent from the year-ago period. However, overall the company incurred a net loss after taxes of $1.9 million due to higher mining and operating costs. IMPACT’s silver production rose 20 percent from Q2 2012, hitting 185,998 ounces.

Alexco Resource (TSX:AXR,NYSEMKT:AXU), Canada’s only operating primary silver mine, said on Tuesday that it had been contacted by market regulators due to “unusual market activity in the company’s stock.” The company indicated that it is “not aware of any material undisclosed information regarding Alexco.”

Junior company news

Canadian exploration company Aura Silver Resources (TSXV:AUUannounced on Monday that, along with Intrepid Mines (TSX:IAU,ASX:IAU), it received a US$2-million net payout of prior concession fees owed to Pan American Silver (TSX:PAA,NASDAQ:PAAS). In total, Aura received about $1.3 million, which it will use in part to advance exploration at the East Taviche and Greyhound properties.

The next day, Southern Silver Exploration (TSXV:SSV) revealed its intention to issue up to 16,666,666 units priced at $0.03 each in a non-brokered private placement. The company hopes to raise $500,000, which it intends to put toward “county and claim fees to maintain the status of [its] properties, and for general working capital.”

In other private placement news, Northern Vertex Mining (TSXV:NEE) said that it plans to go forward with a private placement equity financing of about 7.7 million units that will be sold for $0.65 each for total proceeds of $5 million. The money will be put toward the advancement of the company’s Moss project in addition to general corporate purposes.

Wednesday, Argentex Mining (TSXV:ATX,OTCQB:AGXMF) announced that in September it plans to start resource development drilling at its Argentina-based Pingüino silver-gold project. The program will be made up of 3,000 meters of reverse-circulation drilling as well as “5,000 metres of trenching to target specific known vein systems and other high-priority mineralised zones,” the company’s press release states.

The same day, Teras Resources (TSXV:TRA,OTCQX:TRARF) reported that two drill rigs and associated ancillary equipment were being transported to its Cahuilla gold-silver project, located in California, by the National Drilling Company. When mobilization is complete, a drill program will start up.

Finally, Full Metal Zinc (TSXV:FZ), a junior exploration company focused on zinc discovery in Alaska, signed a binding letter of intent with Minera ISP, S. de RL de CV and “certain of its affiliates” to acquire the San Andres de la Sierra silver mine and processing facilities. The company will also be acquiring “the exploration land package around the area of historical operations.”

 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

Silver Enters Bull Market Territory; Rises Above $23

Silver Maintains Crucial $23 Price Level


Silver Climbs, Edging Over $20

Silver Climbs, Edging Over $20After spending the bulk of last week under $20, silver experienced the opposite scenario this week, staying above the $20 mark for all but brief periods Monday and today.

The white metal began the week at $19.84, but by midday had risen to $20.53; later in the day, it moved up to $20.58, its high for the week thus far. A report from Capital Trading Group notes that the metal may have risen on the back of “strong gains” in the gold price or perhaps “residual uncertainty toward South African mining wage negotiations.”

Since then, silver has spent the week edging downward, early today hitting $19.90, its lowest price since Monday, before recovering to close at $20.25 after the release of the jobless claims report, according to Scotiabank’s daily update.

The results are in…

As silver prices move slowly upward, speculation is rife as to whether they have reached a bottom or are experiencing a short bounce before heading down again. Last week, Silver Investing News (SIN) took a look at some of the factors that, according to Market Oracle analyst Jason Hamlin and Tony Davis of Atlanta Gold & Coin Buyers, show prices for the white metal have hit bottom and are on their way up.

While there is much value in examining analysts’ opinions, SIN also wanted to know what readers think. Without further ado, here are the results of the poll: 

  • 41 percent of voters said silver prices have hit bottom and are on their way up
  • 33 percent of voters said silver prices have not yet hit bottom
  • 26 percent of voters said it is too soon to tell

Under the sea

In an unusual turn of events, deep-ocean explorer Odyssey Marine Exploration (NASDAQ:OMEX) revealed that this month it has recovered more than 61 tons of silver bullion from the SS Gairsoppa, a British cargo ship that sank in 1941. Since 2012, Odyssey has recovered 2,792 silver ingots from the ship — over 99 percent of the silver that was reportedly on board when it sank. The company will retain 80 percent of the net salved value of the cargo.

Greg Stemm, CEO of Odyssey, commented, “[t]his was an extremely complex recovery which was complicated by the sheer size and structure of the SS Gairsoppa as well as its depth nearly three miles below the surface of the North Atlantic. To add to the complications, the remaining insured silver was stored in a small compartment that was very difficult to access.”

Odyssey now plans to continue its 2013 North Atlantic expedition, which also includes the SS Mantola, a ship that sank in 1917 and was found by Odyssey two years ago.

Company news

On Wednesday, Alexco Resource (TSX:AXR,NYSEMKT:AXU) signed an agreement that updates a 2006 agreement between Canada and Elsa Reclamation and Development Company (ERDC), Alexco’s environmental subsidiary. Both agreements “indemnify Alexco from all historical mining liability and set out in detail the terms, conditions and operating protocols under which ERDC will perform ongoing environmental care and maintenance and final cleanup of legacy liabilities in the historic Keno Hill Silver District,” according to the company’s press release.

The execution phase of the clean-up program for Keno Hill is expected to start in 2016 and should take five years to finish.

Junior company news

Silver Mountain Mines (TSXV:SMM) on Tuesday began the 2013 exploration field program at its Ptarmigan mine, which is located in British Columbia. The program will include rock and soil sampling, a gravity survey, trenching and geological mapping, as well as “[c]ontinued onsite definition of the scope of a bulk extraction program and completion of supporting documentation for submission of the required permit application,” the company’s press release states.

The same day, Eurasian Minerals (TSXV:EMX,NYSEMKT:EMXX) released drill results from its Turkey-based Balya royalty property, noting that intercepts include 13.3 meters averaging 3.54-percent lead, 4.62-percent zinc and 45.35 g/t silver from the Hastanetepe zone. A new 200-meter step-out intercept is “particularly encouraging” because it “highlights the upside discovery potential for additional lead-zinc-silver zones on the property.”

Wednesday, Tahoe Resources (TSX:THO,NYSE:TAHO) announced the filing of an amended technical report for its Guatemala-based Escobal project due to the British Columbia Securities Commission’s comments on its May 7, 2012 preliminary economic assessment (PEA). The economic aspects of the PEA remain the same, according to the company’s press release.

The release also addresses the recent actions of a Guatemalan court of appeal. While MINING.com reported yesterday that the court has challenged the operating license for Escobal on the basis that it “did not consider 250 oppositions filed against the project,” Tahoe states that the court only said the country’s Ministry of Energy and Mines “should have conducted a hearing of a written opposition to the Escobal exploitation license during the permitting period. The court did not rule on the substance or validity of the opposition, merely stating that MEM was obligated to hold an administrative hearing.”

As a result, the court has not “invalidate[d] or comment[ed] on the Escobal exploitation license in its decision.”

 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Related reading: 

Fed Chairman Bernanke Blocks Silver’s Bounce

Tahoe Resources: Aiming for Production in Q4 2013

Survey: Have Silver Prices Finally Hit Bottom?


4 Silver Juniors to Watch

4 Silver Juniors to Watch

At last week’s World Resource Investment Conference, hosted by Cambridge House International in Vancouver, Canada, Rick Rule, chairman of Sprott Global Resource Investments, hosted a seminar titled Exploration: The Next Frontier. As the name suggests, he and panelists Brent Cook, John Kaiser, Lawrence Roulston and Jordan Roy-Byrne spent part of the allotted time discussing which junior resource companies they believe investors should keep an eye on.

Below, in no particular order, are four of the silver juniors mentioned by the panelists.

Reservoir Minerals (TSXV:RMC) is currently exploring in Cameroon and Gabon in Africa as well as at six sites in Serbia. While the majority of its properties center on gold, its Parlozi project, located in Serbia, contains high-grade silver mineralization that is associated with lead and zinc sulfides and is comparable to Trepca-type and Mexico-Peru cordilleran skarn/manto deposits, according to the company’s website. Its Bobija project, also in Serbia, may contain high-grade lead, zinc and silver mineralization as well.

Perhaps most significantly, Reservoir’s Timok gold-copper-molybdenum project in Eastern Serbia is a joint venture with Freeport-McMoRan Copper & Gold (NYSE:FCX), which is the project operator. Freeport has exercised its option to fund all exploration work at Timok until a bankable feasibility project is completed, according to Reservoir’s website. The company’s most recent news release states that it intersected 291.3 meters grading 7.17-percent copper equivalent at the project.

Based in Canada, Dolly Varden Silver (TSXV:DVis focused on developing its Dolly Varden Silver Mines property, which is located in Northwest British Columbia and hosts four historical deposits. The company describes it as an advanced-stage property and notes on its website that a historic resource estimate completed in 1986 estimates that it holds 5.7 million proven and probable ounces of silver. It intends to confirm that estimate, reclassify it as current and “expand the resource to a target of 40 to 50 million ounces of silver.”

In April, Hecla Mining (NYSE:HL), a strategic investor in Dolly Varden, paid $2.7 million to maintain its 19.94-percent interest in the company. John King Burns, chairman of Dolly Varden, commented that Hecla’s continued investment “is a testament to … the prospects of [the] Dolly Varden property.” He also noted that the company’s plans for this spring and summer are to define a high-grade silver resource at the project’s four deposits and identify an “Eskay Creek-type VMS deposit” at the Red Point target, which is northwest of the existing mines.

Bear Creek Mining’s (TSXV:BCMtwo main projects are Corani and Santa Ana, which are located in Peru and together contain over 500 million ounces of silver, 330 million of which are in reserves. Feasibility studies have been conducted for both projects; Corani’s shows that the deposit contains proven and probable mineral reserves of 270 million ounces of silver, 3.1 billion pounds of lead and 1.7 billion pounds of zinc, while Santa Ana’s shows that the deposit holds proven and probable mineral reserves of 63.2 million ounces of silver.

In June 2011, the Peruvian government reversed the decree that granted Bear Creek the mineral concessions that cover the Santa Ana project. While a judge dismissed that suit in February of this year, Peru’s Ministry of Energy and Mines has appealed that decision; the company hopes to reach a negotiated settlement regarding the project.

On a brighter note, Bear Creek reported in April the successful completion of a public hearing required for its Environmental and Social Impact Assessment (ESIA). That means that the surrounding community strongly supports the project and the company is on track to receive ESIA approval by the end of the year.

Also mentioned at the seminar was Riverside Resources (TSXV:RRI), a prospect generator with a number of gold, silver and copper projects. It is covered in 5 Gold Juniors to Watch, published last week on Gold Investing News.

 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

5 Gold Juniors to Watch


Corvus Gold

The profile below is part of a campaign paid for by Corvus Gold. This profile provides detailed information, helping investors make better investment decisions. Corvus Gold’s support of Gold Investing News ensures we can continue to bring you unbiased, independent news and information.

Corvus Gold

Corvus Gold Inc. – Developing the Next Nevada High-Grade Gold-Silver Deposit

Overview

Corvus Gold Inc. (TSX:KOR, OTCQX:CORVF) is a well-financed junior exploration and development gold company led by an experienced management team that holds a near 10% equity stake. Corvus Gold’s main focus and efforts is in the advancement of its 100% owned Nevada, North Bullfrog project. Advantages of the newly discovered gold project include an adjacent major highway, power corridor, nearby skilled workforce and a large 68 km² land package in a mining friendly jurisdiction.

Corvus Gold’s main focus has been on the Yellowjacket deposit – a new high-grade gold, silver open pit target. During the 2012 drill season, Hole NB-12-138 intersected 72.4 metres of 1.74 g/t gold and 98.7 g/t silver including 4.3 metres of 20.0 g/t gold and 1,519 g/t silver. This immediately put Yellowjacket as a priority target for the 2013 follow-up program. Subsequent drilling has now outlined a high-grade system that stretches approximately 800 metres along strike and from 40 metres below surface to a nominal depth of 120 metres with the system still open along strike to the North and South as well as at depth. Highlights of the follow-up drilling include:

  • Hole NB-13-356, intersected 29.4 metres of 6.9 g/t gold and 23 g/t silver
  • Hole NB-13-362, intersected 35.0 metres of 4.0 g/t gold and 17 g/t silver
  • Hole NB-13-370, intersected 41.7 metres of 4.9 g/t gold and 30 g/t silver
  • Hole NB-14-378, intersected 9.2 metres of 18.0 g/t gold and 260 g/t silver
  • Hole NB-14-391, intersected 17.6 metres of 8.5 g/t gold and 34 g/t silver

The 2014 drill campaign will continue to focus at the Yellowjacket deposit to determine the strike extent and depth of the system and will result in an updated resource estimate in 2015.

Investment Highlights

  • Project located in mining-friendly jurisdiction with well-developed infrastructure
  • Well-financed; tight share capital structure of 75 million shares without warrants and top shareholder groups accounting for almost 50 percent of shares
    • Tocqueville Asset Management LP 18.6%
    • AngloGold Ashanti Limited 15.5%
    • Corvus Gold Management 9.0%
    • Van Eck Global 4.0%
  • Managed by a premier exploration and mine development team with a proven track record of success
  • New, near surface, high-grade gold-silver discovery
  • Massive exploration potential for further high-grade discoveries
  • High leverage to gold and history of outperforming the sector

Key Property

The North Bullfrog Project — Nevada, United States

Corvus Gold Bullfrog MapCorvus Gold Map Bullfrog

Corvus Gold’s North Bullfrog Project is located 10 kilometres north of Beatty, Nevada and 8 kilometres north of the historic Bullfrog Mine formerly operated by Barrick Gold Corporation. The land package encompasses nearly 70 square kilometres of patented and unpatented mining claims, representing one of the larger new gold and silver projects in Nevada. The property hosts a large, low-sulphidation, epithermal bulk-tonnage gold system of similar style to the past-producing Bullfrog Mine. The project has excellent infrastructure, being adjacent to a major highway and power corridor. Corvus Gold had previously focused the bulk of its exploration and development work on Sierra Blanca, Jolly Jane and Mayflower deposits. With the discovery of a high-grade gold-silver zone called Yellowjacket on the northeastern boundaries of the Sierra Blanca deposit, the Company has now diverted its exploration work to this newly discovered system and other potential high-grade systems within the project.

Corvus-Gold-North-Bullfrog

Early in 2012, exploration work in the North Area led to the discovery of the Yellowjacket zone — a shallow, high-grade gold and silver potential feeder system located directly northeast of the Sierra Blanca deposit. The best indication of the potential of the system was highlighted from the discovery hole (NB-12-138) which returned 72.4m @ 1.74 g/t Au & 98.7 g/t Ag including 4.3m @ 20.0 g/t Au & 1,519 g/t Ag. Follow-up results, which were reported in January 2013, included Hole NB-12-184 which intersected 58 metres @ 1.7 g/t gold and 33 g/t silver. It became apparent that Yellowjacket was a priority target for the 2013 drill program as it could host a high-grade starter pit zone, operating at a much higher margin with significant silver credits. The 2013, 20,000-metre exploration campaign on the North Area focused on expanding the high-grade gold and silver Yellowjacket zone with diamond core drilling as well as step out reverse circulation (RC) drilling that targeted the Sierra Blanca deposit. Combined with earlier results, a resource estimate was released in April 2014.

April 2014 Resource

Analysis of the sensitivity to gold price of the North Bullfrog mineralization inventory
(Tonnes and grade indicate the portions of the mineralization inventory estimated to fall within the WhittleTM pit and be scheduled to processing at various gold prices, analysis assumes a fixed ratio of the gold to silver prices of 59, ** Breakeven grade derived from WhittleTM input parameters)

Corvus Gold Price-Sensitivity

 

Corvus Gold Deposit-Locations

The North Bullfrog project with outlines of deposits and potential high-grade structural targets that require follow-up drilling.

Corvus-Gold-Visible-Gold

NB-13-344 @ 124.75m: visible gold

Corvus-Gold-Yellowjacket-Deposit

Overview of Yellowjacket deposit which includes the main “Josh Vein” and “West Vein”

Summary

Corvus Gold is a precious metals company focused on development at its advanced-stage North Bullfrog gold and silver project in mining-friendly Nevada. The 2014 drill program will continue on the exploration success of the 2013 program. Priority will be to extend the Yellowjacket high-grade zone along strike and at depth and begin to target other potential high-grade shallow zones parallel to Yellowjacket.

Management

Jeffrey A. Pontius — Chief Executive Officer and Director
Mr. Pontius has more than 35 years of geological experience and possesses a distinguished track record of successful discovery that now includes five precious metal deposits in North America totaling more than 1 million ounces of gold. He led the discovery of the new Livengood Gold Deposit in Alaska which now has a total resource of 19.7 million ounces of gold and continues to expand. Additionally, he led the discovery and development team for the Cripple Creek Deposit in Colorado, which is operated by AngloGold Ashanti and contains over 15 million ounces of gold. He also led the discovery work on two other Nevada gold deposits; Yankee Mine & Elder Creek Mine.

Mr. Pontius has demonstrated exceptional skill at operating junior mining companies that have provided shareholders with excellent returns on their investments. He spent five years as the President and CEO of International Tower Hill Mines Ltd. (ITH) which has made a number of gold and copper-gold discoveries in Alaska and Nevada, the most notable being the Livengood Gold Deposit. Prior to working at ITH, Mr. Pontius spent seven years as the US and North American Exploration Manager for AngloGold Ashanti as well as participating as a Director of Anglo American (USA) Exploration Inc. and a member of AngloGold Ashanti’s regional business development team. Mr. Pontius holds a Masters Degree from the University of Idaho (Economic Geology), a B.Sc. from Huxley College of Environmental Studies (Environmental Science) and a B.Sc. from Western Washington University (Geology).

Dr. Russell Myers — President
Dr. Myers has more than 30 years’ experience in exploration and project development, acquiring exceptional skills in the utilization and integration of numerous geological methods for the definition of new deposits. Throughout his distinguished career, Dr. Myers has been integral in the discovery and development of several of the Corvus projects as well as defining new opportunities for the Company.

Dr. Myers spent the past four years as Vice President of International Tower Hill Mines Ltd. (ITH) directing exploration work on all projects in the portfolio inclusive of the five projects now owned by Corvus. Prior to ITH, he worked for six years at AngloGold Ashanti (USA) Exploration Inc. holding several key senior geological positions. His principal responsibilities were the development of a regional gold targeting model for western North America, inclusive of Alaska. While with AngloGold Ashanti (USA) Exploration Inc., Dr. Myers was part of an integrated team of geologists that evaluated the potential for deep targets at the Cripple Creek gold mine. He also conducted regional targeting and ground follow up for AngloGold Ashanti’s Columbian exploration initiative which has defined a series of new large gold deposits. Dr. Myers holds a Ph.D. in Geology, University of the Witwatersrand, Johannesburg, South Africa. Dr. Myers was Summa cum Laude, B.Sc. Geology and Geophysics, Missouri School of Mines, Missouri.

Carl Brechtel — Chief Operating Officer
Mr. Brechtel has more than 35 years’ mining industry experience and specializes in the design and development of both open pit and underground projects. Mr. Brechtel’s recent experience includes serving as President and Chief Operating Officer for International Tower Hill Mines Ltd., and various project development roles with AngloGold Ashanti including Pre-feasibility Manager and Manager of Underground Mining. Mr. Brechtel’s extensive operational and project development history in various geologic settings spans projects in North America, Australia, South America and Africa. Mr. Brechtel holds a B.Sc. Geological Engineering from University of Utah and a M.Sc. Mining Engineering University of Utah.

Mark Reischman — Nevada Exploration Manager
Mr. Reischman has more than 25 years’ exploration experience focusing on Nevada gold deposits. He has an extensive discovery and project development track record having been part of a number of projects that have gone to mining. Prior to joining Corvus, he worked for Kinross, AngloGold Ashanti, Barrick, BHP, Romarco and Rubicon on various projects in the US and Canada. Mr. Reischman was a key member of Barrick’s Bullfrog District evaluation team and developed many of the targets Corvus is currently pursuing on the North Bullfrog project today. He holds a BSc degree in Geology from California State University, Fresno.


Trevali Mining Corporation Receives Approval for $30 Million of Funding From RMB Resources

 Trevali Mining Corporation (TSX:TV,OTCQX:TREVF,LMA:TV,FWB:4TI) received in-principle approval from RMB Resources (the resource financing division of the FirstRand Group of South Africa) for $30 million of funding for the Company’s $60-million senior debt and prepaid precious metals facility in New Brunswick.

As quoted in the press release:

This mezzanine tranche of the RMB facility is repayable on the earlier of June 30, 2014, or closing of the final $60-million senior debt facility. The facility bears interest of LIBOR + 8.5% per annum and has an arrangement fee of 5% and 3,000,000 warrants to purchase Trevali common shares on the TSX, issued on the closing date of the facility and exercisable at any time through June 30, 2015 at an exercise price of $1.25 per share, subject to TSX approval.

Trevali Mining Corporation President and CEO, Dr. Mark Cruise said:

We are very pleased with the approval of the initial $30-million funding by RMB as we continue to focus on advancing our mill and mine development operations in New Brunswick towards production, and securing the final $60 million in senior debt and prepaid silver facilities as previously announced. In addition to the imminent commissioning of our Santander Mine in Peru, Trevali aims to maximize its zinc production profile with planned output from Bathurst Mining Camp operations, and looks to benefit from the robust outlook for the commodity in light of the many forecast closures of major zinc producers globally.

Click here to read the Trevali Mining Corporation (TSX:TV,OTCQX:TREVF,LMA:TV,FWB:4TI) press release

See this press release on Marketwire
Click here to see the Trevali Mining Corporation (TSX:TV,OTCQX:TREVF,LMA:TV,FWB:4TI) profile


Firestone Announces Successful Site Visit, Readies to Complete PEA for Torlon

Firestone Ventures Inc. (TSXV:FV) announced the successful completion of a site visit by Minéro Mining International Limited and independent consulting engineers ProMet Dadi Africa (Pty) Ltd. (“ProMet”) of South Africa in preparation for next steps towards the Preliminary Economic Assessment for Firestone’s zinc-lead-silver Torlon deposit in Western Guatemala.

As quoted in the press release:

During the site visit a full ground assessment of the project area was completed including options for access and for site facility placement. Additional days were filled with meetings in Guatemala City with the Ministry of Energy and Mines, Ministry of the Environment and the Mining Guild of Guatemala.

Firestone’s President and CEO, Pamela Strand, said:

Firestone has a clear road map for the next 12-18 months as a result of the recent trip and once this information is input into the PEA we should be on schedule for its completion.

To view the whole press release, click here.


International Goldfields to Merge with Santa Fe Gold

International Goldfields Ltd. (ASX:IGS) announced that it will merge with Santa Fe Gold Corp. (OTCBB:SFEG) to create a company focused on producing, developing and exploring for gold and silver. As part of the merger, International Goldfields will advance AU$2 million to Santa Fe within five business days and will pay the company an additional AU$2 million by October 31, 2012.

According to the press release, highlights of the transaction include:

The proposed merged entity will be a diversified, well-funded and low cost gold-silver explorer, developer and miner, listed on the ASX and also traded on a major US exchange or on the OTC Bulletin Board, with projects located in emerging mining districts including West Africa, Brazil and the south-west US.

The combined entity will have an initial market capitalisation of approximately A$70 million, cash reserves of at least A$10 million, low cost gold & silver production of 28,000 oz pa (gold equivalent), an operating mill, near term development assets and a portfolio of advanced exploration assets.

Click here to read the full International Goldfields Ltd. (ASX:IGS) press release.


Precious Metals Analysts Increasingly Bullish on Silver

Mineweb reported that precious metals analysts are more bullish on silver and gold than they were three months ago, according to a Reuters poll. Their outlook for platinum and palladium has dimmed.

As quoted in the market news:

The impact of the euro zone debt crisis on the global economy is expected to keep global monetary policy loose, which should favour gold, while restricting demand for the more industrial metals like silver and the platinum group metals.

Silver should get a lift on the back of gold, while the PGMs will be cushioned to an extent by ongoing supply disruptions in South Africa, although the prospect of weak car sales has prompted most analysts to scale back their price forecasts.

Click here to read the full Mineweb report.