Mandalay Resources is a Canadian-based natural resource Corporation with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile and Canada. The Company focuses on growing its production and reducing costs at its gold-antimony operation in Australia, and its gold mine in Sweden, to generate near-term sustainable positive cash flow.
“As we've seen in Ukraine, war has supercharged a number of these commodity prices,” John Forwood told RIU Resources Round-Up attendees.
Investment strategies for weathering and benefiting from current market trends were a hot topic at Sydney's recent RIU Resources Round-Up, held in early May.
Current opportunities and potential future ones were highlighted in the keynote address offered by John Forwood, chief investment officer at Lowell Resources Funds Management.
Quoting a February report from the head of commodity research at Goldman Sachs (NYSE:GS), Forwood explained to attendees that we have reached a “molecule crisis” in the commodity space and are essentially “out of everything.”
This deficit has only been compounded by the war in Ukraine, which has further weakened supply fundamentals and chains.
“When the (war in) Ukraine started, about a month later the commodities index (represented by Bloomberg commodities index) had its highest one-week spike on record, and that's a record going back over 60 years,” Forwood said. “As we've seen in Ukraine, war has supercharged a number of these commodity prices.”
However, according to the CIO, there is still a considerable amount of upward growth potential.
“In terms of where we are in terms of that commodity basket, we're way behind where we were in 2008, pre the (global financial crisis) and after the mining boom of the 2000s,” he told the crowd.
“And we're way behind where the Dow Jones and equities in general have got to,” Forwood added. “So, we think that there's potential for the commodity sector to be just getting started.”
There are also several other factors that are adding tailwinds to the broad sector, according to Forwood, who cited inflation — which is at 5 percent in Australia and 7-8 percent in the US and UK — as a significant contributor.
Looking at the longer-term fundamentals that have gotten us here, Forwood pointed to lack of investment capital as a main driver.
“I think the big one, the long term one, is under investment,” he said, noting that the early 2000s mining boom led to a lot of investment, which we aren’t seeing today.
“But over the last seven or eight years, we've seen a real dearth of capital going back into the sector. And in fact, we've also seen a dearth of M&A — something that we've been looking out for and it's just not happening.”
In fact, as one of the slides Forwood presented laid out, investment from the resource industry back into itself reached a 19 year low late last year.
Despite the lack of large investment, Australia’s junior resource index was up 16 percent at the end of April compared to the broader market and the Dow Jones Index, which had slipped 9 percent.
“So that may represent a rotation from other sectors into the resources sector. And if that is the start of what's happening, that could be very, very significant for resource company prices,” he said, explaining the resource sector is actually very small on a global scale.
“And if you see significant global money flowing into that sector, you know, it's almost the sky's the limit,” Forwood added.
Gold and volatility
While speaking about several commodities, the CIO for Lowell Resource Funds Management took time to highlight how gold could also be positioned for an upward trend, because “commodities do best when inflation is rising, and interest rates are rising.”
He then displayed a chart that indicated gold was the top performer among US stocks and the US greenback during the first six months following the commencement of a Fed rate hike period.
Real interest rates, which are hovering around 0 percent, are likely to have no effect on gold's price because, according to the Forwood, rates would have to be 3 percent or higher to impact gold.
He did warn that stagflation could add more wind to the yellow metal’s sails moving forward.
“We think there's a decent chance of (stagflation) occurring, so what should you buy?” he posited. “If you think that stagflation is on its way, well, the answer is also gold.”
Forwood concluded his address by encouraging attendees to invest in the junior resource space.
“Finally, at the Lowell Fund, we like to invest in junior explorers,” he said.
“Because they're the ones who make the discoveries, and discoveries is where you can really add the most value.”
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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Outback Goldfields CEO Chris Donaldson said, “For us right now, it's early stage exploration. We're identifying targets, but we have an active program and are in full swing.”
Outback Goldfields CEO:17 million oz. of gold produced and producing within 3 miles of our propertyyoutu.be
Outback Goldfields (TSXV:OZ,OTCQB:OZBKF,FWB:S600) CEO Chris Donaldson shared that the company is actively working on two of its four properties in Victoria, Australia.
“It's early stage exploration. We're identifying targets, but we have an active program," Donaldson said. "We're doing what's prudent right now, which is taking the time and really doing things methodically. So we're doing an extensive soil sampling program across the Ballarat West and Yeungroon projects, looking for high levels of arsenic.”
As to the role of these results, he noted, “We're looking to get some heat maps of this anomalous arsenic, which really guides us for where we should do the diamond drilling. It’s more expensive, but also goes a lot deeper.”
Donaldson spoke to the value of the area: “It’s a historic site that had a gold rush in 1850, and it kind of put Australia on the map. Miners from all around the world were mining this high-grade, nuggety gold at or near the surface, and they did very well for 70 years. Then they basically mined it out until they hit a basalt cover or they hit the water table and then they stopped. For the next 100 years, it was very difficult mining until Fosterville made a phenomenal discovery of the Swan zone. It started what they're now calling the second gold rush.”
Donaldson said that Outback Goldfields was fortunate enough to acquire properties five years ago, when mining in the Victorian goldfields began to attract renewed attention. He mentioned that the company is using monitoring techniques to “try to go below that cover and see if we can find the fluid source for that high-grade, nuggety gold.”
Speaking to the regulatory systems of modern mining in the area, Donaldson said, “It's a first-world country. They have processes in place — certainly there's bureaucracy. But it's a known bureaucracy. They might take longer than I’d like, but they permit mines, they permit drilling. So, for us, at least, it's something that you can predict.”
As for the general gold market, Donaldson stated, “The reality is, we're up to US$1,900 gold per ounce, plus or minus right now, which is much higher than it was five years ago. The good news is that these goldfields are generally higher-margin, lower-cost mining. It's a multi-year process, and this is the time that we need to be starting these projects, knowing that it's going to take a few years for them to come to fruition.”
When discussing why investors should consider Outback Goldfields, Donaldson noted, “We're exploring what we consider the perspective of the land. The Ballarat West property covers over 40,000 hectares, and there have been 17 million ounces of gold produced within 5 kilometers of the property. We're in a great neighborhood.”
Donaldson also spoke about the company's next steps for the project, as well as its finances. “We're in the target identification phase. We're about halfway through a soil program, where we've done about 650 holes of the 1,300. We'll get those results this summer, and then have some key targets that we'll start drilling on for the back half of this year — with a bit of luck and some good planning, hopefully we find something great … we didn't spend a ton of money last year after our initial raise, so we certainly have enough to fulfill the the the exploration program that we have in front of us.”
Watch the full interview of Outback Goldfields CEO Chris Donaldson above.
Disclaimer: This interview is sponsored by Outback Goldfields (TSXV:OZ,OTCQB:OZBKF,FWB:S600). This interview provides information that was sourced by the Investing News Network (INN) and approved by Outback Goldfields in order to help investors learn more about the company. Outback Goldfields is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Outback Goldfields and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Restarting the Past-Producing Clayton Silver Mine in Idaho
Exploring undeveloped land with the hopes of striking gold is a time-honored mining tradition, but it’s not the only way to create a profitable project. Restarting past-producing mines allows companies to start with proven mineralization, explore stockpile potential and utilize the existing infrastructure. In addition, stockpiles create a fast track to cash flow, as the previous miners may have had different criteria based on the economics of their time. For example, gold mines often stockpiled gold under a specific grade as it was not economically feasible, but given current prices and modern processing technology, it’s now worth processing the stockpiled gold and silver.
Restarting a past-producing mine begins by selecting the proper jurisdiction. Idaho, for instance, has mining-friendly policies that include tax incentives to create rural jobs. The gold rush of the 1800s led to the creation of the state. For example, the famous Silver City was founded near prolific silver and gold deposits. Mining policies in the state are focused on enabling ease of mining operations, both procedurally and practically.CMX Gold & Silver (CSE:CXC,OTC:CXXMF) is an exploration and development mining company, focused on Idaho's historic gold and silver assets. The company’s flagship project is the Clayton Silver Mine, a past-producing asset that operated for 50 years and has historically mined over two million tonnes of ore. The project also has a stockpile of at least 500,000 tonnes of rock. The company has a strong capital structure with no legacy or sweat equity debt. Additionally, the project has no royalties and plans to generate cash flow in 2023 by processing the stockpile.
CMX Gold & Silver notes that the previous miners simply followed the known vein system, and it was sufficient for their time and goals. However, the company plans to conduct additional exploration using modern techniques to identify other veins. Once identified, the company will conduct drilling operations to confirm survey results and identify additional development opportunities.
In a recent interview, CEO Jan Alston discussed the excitement surrounding the Clayton Silver Mine, stating, “After 50 years in operation, it was closed down when commodity prices fell in the mid-1980s. We think the potential exists to add a lot of shareholder value by doing the work that is needed to establish that there is a lot more ore still to be mined. Our hope is to get this mine operating again.”
A strong management team builds confidence in the company’s ability to capitalize on the past-producing mine. Jan Alston, CEO, has worked in the natural resources industry for over 35 years, including practicing business law in the oil and gas sector. Glen Alston, CFO, has 30 years of experience in corporate finance and has worked with mining companies focused on diamonds, precious metals, and base metals. Additional experts in geology and financing bring their specialties to the management team.
- CMX Gold & Silver is an exploration and development mining company focused on revitalizing a past-producing mine to benefit from known mineralizations and existing infrastructure.
- The Clayton Silver Project has historically produced over two million tonnes of ore, and a stockpile of 500,000 tonnes of rock remains on the property.
- The previous miners operated for 50 years and followed a main vein system, which was sufficient for their goals. However, CMX believes other vein systems are present that will create additional opportunities.
- A strong management team with decades of experience in the mining industry builds confidence for the project and the team’s ability to capitalize on the flagship asset.
The Clayton Silver Mine
The flagship project covers 276 hectares and is roughly 30 kilometers from Custer country. It includes 29 patented mining claims, two patented mill sites, and six unpatented mining claims. Additionally, further exploration aims to identify targets for an upcoming drill program that hopes to locate additional mineralization.
- Stockpile from Previous Operators: The Clayton Silver Mine has an unprocessed stockpile of at least 500,000 tonnes of rock. A 2014 sampling program showed gold at 0.80 gms/t, silver at 24.31 gms/t, zinc at 0.27 percent, manganese at 0.60 percent and lead at 0.44 percent. These tests were performed at 16 random locations, proving that there is valuable rock in the stockpile.
- Working with Engineers to Process the Stockpile: The company is presently working with an engineering firm to plan the efficient processing of the 500,000-tonne stockpile using state-of-the-art sensor-based ore sorting technology. CMX estimates that if they begin processing on average 4,000 tonnes per day, it will take six to eight months to process the stockpile.
- An Ecologically Friendly Project: Tailing studies and remediation work have been completed by the EPA and Idaho Department of Environmental Quality. The previous operators have no legacy environmental issues, and the company can readily obtain a water usage permit.
- Year-Round Access with Paved Road: The Clayton Silver Project can be reached throughout the year via a paved road that leads directly to the site.
Jan M. Alston - President & CEO
Jan Alston was born in Calgary, Alberta and attended the University of Alberta, where he obtained a bachelor’s of arts in 1978 and an LLB in 1981. Alston has been involved in public junior natural resource companies for over 35 years. He practiced law in the 1980s in the areas of business law, oil and gas, securities regulation, and corporate finance. He led the management team as president, chief executive officer, director and cofounder of Purcell Energy, an oil and gas exploration and production company listed on the Toronto Stock Exchange. After sixteen years, Purcell 2005 sold two-thirds of its oil and gas assets for more than US$150 million and spun out Tenergy. From November 2005, Alston was chief executive officer and director of Tenergy, a Toronto Stock Exchange-listed natural gas exploration and production company, until its sale in March 2006 for US$92 million. Since 2006, he has been involved in several private businesses in management and as an investor.
Glen R. Alston - Chief Financial Officer
Glen Alston attended the University of Calgary, where he obtained his bachelor’s of commerce in 1986. He has over 30 years of experience in executive and management roles with public junior mining exploration companies. Alston has been a senior officer and director of several junior companies, as well as being involved in many different aspects of the business, including stock exchange listings, corporate finance activities, corporate development, project management, and accounting and audit functions. He has extensive experience in facilitating exploration projects for precious metals, diamonds, and base metals.
James P O’Sullivan - Corporate Secretary
James O’Sullivan is a partner in the Calgary office of Dentons LLP. His current practice focuses on providing corporate and commercial advice to junior issuers, including start-up and growth companies active in the energy, mining, healthcare and technology markets. O’Sullivan’s expertise includes corporate governance, regulatory compliance and continuous disclosure matters. He has extensive experience in financings, mergers and acquisitions and other corporate reorganizations. O’Sullivan also serves as corporate secretary for several Canadian public companies. He has been a member of the Law Society of Alberta since 2007.
Richard T. Walker - Consulting Geologist
Richard T. Walker attended the University of Calgary, where he obtained his bachelor’s of science in geology in 1986 and his master’s of science in geology in 1989. He is a professional geologist registered with the Association of Professional Engineers and Geoscientists of British Columbia. He has over 30 years of practical field experience working with organizations of all sizes, from junior to major mining companies, both private and public, in Canada, the United States, and South America. Walker’s primary role has been the management of exploration programs for precious metals, with an emphasis on silver, and base metals. He has successfully completed programs in diverse jurisdictions, including British Columbia, Alberta, Northwest Territories, Nunavut, Yukon Territory, Saskatchewan, New Brunswick, Montana, Alaska, Brazil, Peru, and Chile. Walker provides consulting services through his firm, Dynamic Exploration, of which he has been president since 1996. He is the former president of the East Kootenay Chamber of Mines and a director of the BC and Yukon Chamber of Mines.
Alianza Minerals Ltd. is pleased to report that the financing announced originally on April 25, 2022 has now been closed.
Alianza Minerals Ltd. (TSXV:ANZ )(OTC:TARSF) ("Alianza " or the "Company ") is pleased to report that the financing announced originally on April 25, 2022 has now been closed.
The Company raised a total of $750,000 from the issuance of the 10,000,000 units to fund various activities of Alianza including exploration, project generation, marketing of projects in 2022, and other corporate overhead costs.
Each unit is comprised of one common share and one half of a common share purchase warrant. Each full common share purchase warrant entitles the holder to purchase one common share for $0.125 per common share until May 19, 2025. The common share purchase warrants are non-transferable. All securities are subject to a four-month hold expiring on September 20, 2022.
A director and an officer of the Company purchased or acquired direction and control over a total of 1,912,933 Units under the private placement. The placement to those persons constitutes a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101).
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Alianza Minerals Ltd.
Alianza is a discovery focused minerals exploration company, working to provide metals for the modern economy following best ESG practices. Alianza has ongoing exploration programs at the 100% owned flagship Haldane Silver Project in the prolific Keno Hill District, Yukon Territory. Additionally, the Company has a portfolio of gold, silver and base metal projects in Yukon Territory, British Columbia, Colorado, Nevada and Peru. Alianza has one silver project (Tim, Yukon Territory) optioned to Coeur Mining, Inc., two copper projects (Klondike and Stateline, Colorado) optioned to Allied Copper Corp. and is actively seeking partners to advance other projects.
The Company is listed on the TSX Venture Exchange under the symbol "ANZ" and trades on the OTCQB market in the US under the symbol "TARSF".
Mr. Jason Weber, P.Geo., President and CEO of Alianza Minerals Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
Renmark Financial Communications Inc.
Tel: (416) 644-2020 or (212) 812-7680
To learn more visit: www.alianzaminerals.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.