RCKS Talk – Kiska Metals Corp., Savary Gold Corp, Austral Gold Ltd. and Sierra Metals Inc..

A recent article by RCKS Talk highlighted Kiska Metals Corp. (TSXV:KSK), Savary Gold Corp (TSXV:SCA), Austral Gold Ltd. (TSXV:AGLD, ASX:AGD) and Sierra Metals Inc. (TSX:SMT, BVL:SMT).
As quoted in the article.

Last week, Kiska Metals Corp. (TSXV:KSK) announced its shareholders approved the planned acquisition by AuRico Metals Inc. (TSX:AMI) and that it has received the final court order approving the plan of arrangement. The transaction is expected to close on March 8, 2017. We continue to view this tuck-in transaction positively as it highlight’s AuRico’s focus on building out its royalty portfolio. Looking ahead, we believe the completion of the Environmental Assessment (expected in Q1 2017) is likely to be a key catalyst for AuRico to unlock the value of Kemess which appears to be undervalued by the market.
Savary Gold Corp (TSXV:SCA) announced results from the first 24 holes from the ongoing 10km Phase 2 drill program at the Karankasso JV project (69.5% SCA/30.5% SWA) in Burkina Faso. Results identified new mineralized zones south of the existing resource. This first set of results returned a weighted average grade of 1.59 g/t Au, which is below the current resource grade, over a relatively narrow average width of 2.6m. The results were highlighted by 14.66 g/t Au over 6.0m (HE-RC-17-019) intersected in the southern part of the Serakoro 1 Main Area. In our view, these results confirm the strike potential at Karankasso and imply that the resource is likely to grow beyond the current 671k oz (9.2M tonnes at 2.28 g/t Au – inferred) with the pending update (H2 2017). Prior to that, further results from the ongoing 10km drill program is likely to benefit Savary’s share price, which at C$23/oz trades at a discount to peers (C$37/oz).
Austral Gold Ltd. (TSXV:AGLD, ASX:AGD) announced it has acquired an additional 19% stake in the Casposo gold-silver mine in Argentina for US$1.0 million. By way of the transaction, the company has brought its total interest in the mine to 70%. Austral acquired a 51% interest in Casposo in 2016 and has options to acquire the outstanding 30% for US$7.0 million by 2020. Austral has commenced various operational improvement initiatives at the mine and spent US$5.8 million to date on development and re-commissioning. The mine was re-commissioned in Q3 2016 and Austral’s attributable share in Q4, the mine’s full operational quarter, amounted to ~5,500 oz AuEq. We view Austral’s ownership increase in Casposo positively. Based on Austral’s 2017 guidance of 50,000 oz AuEq, the company’s annualized attributable share would amount to ~35,000 oz AuEq. We expect that the ongoing ramp-up of the Casposo project, a resource update, pre-feasibility study (Q1 2017) and initial production from Amancaya, in addition to the completion of the mill expansion at Guanaco are likely to be key catalysts in the near-term.
Sierra Metals Inc. (TSX:SMT, BVL:SMT) announced initial drill results from the La Sidra and Bolivar West zones at its Bolivar mine in Mexico. In our view, the good results from the brownfield exploration program suggest the company is likely to deliver on its objective to add high value tonnes and extend mine life at Bolivar. Drilling continues to imply the existence of high grade Au-Ag mineralization at La Sidra. The zone currently extends over 500m along strike and to a depth of 300m while remaining open 2.5km NE-SW along strike and down dip. Results from Bolivar West similarly returned a weighted average grade above the resource grade. Sierra plans to follow-up on strong anomaly zones detected during a recent IP survey at Bolivar West and Bolivar Northwest. In our view, continued exploration success along with ongoing operational improvements at Sierra’s Yauricocha and Bolivar mines is key to enhancing the company’s value and positioning to bring about the necessary capital structure changes needed.

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