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New Mineralized Target at Yukon Project Could Boost Resource to 2,000,000 Ounces, Entice Buyer

Source: Streetwise Reports   11/08/2021

"The fact that White Gold’s drilling hit fairly wide zones of high grade at shallow depth bodes well…

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This article was originally published by The Gold Report

Source: Streetwise Reports   11/08/2021

“The fact that White Gold’s drilling hit fairly wide zones of high grade at shallow depth bodes well for both the mineral endowment and mineability of the emerging zone,” noted a Stifel report.

In a Nov. 1 research note, Stifel analyst Stephen Soock reported that
drill results from White Gold Corp.[/SHORT_CODE]’s (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) Ulli’s Ridge “returned strong grades over good width at shallow depths (greater than 100 meters [100m]) over 500m of strike.”

“We think this could be the proximal deposit needed to get the area to greater than 2,000,000 ounces (2 Moz) and be an attractive carveout target for a major,” Soock wrote. Ulli’s Ridge is about 3 kilometers from White Gold’s Golden Saddle/Arc deposit in the Yukon, the global resource of which now amounts to 1.54 Moz. White Gold aims to spin out and sell the deposits once they reach the 2 Moz mark, the analyst indicated.

Soock reviewed the new drill results, which are from 11 rotary air blast holes. Eight of the holes were drilled at Ulli’s Ridge, three at Minneapolis Creek.

Those at Ulli’s Ridge show that three southeast-trending structures that dip steeply host the mineralization there, and it remains open in all directions. Highlight assays include 4.67 grams per ton (4.67 g/t) gold over 6.1m, 4.43 g/t gold over 1.52m, 2.26 g/t gold over 9.14m and 1.35 g/t gold over 21.33m.

“The fact that drilling hit fairly wide zones of high grade at shallow depth bodes well for both the mineral endowment and mineability of the emerging zone,” wrote Soock.

White Gold will likely conduct follow-up drilling at Ulli’s Ridge in 2022 to further expand and define the deposit.

The Minneapolis Creek holes hit mineralization but the results were “lackluster,” Soock noted, with grades between 0.41 g/t and 1.46 g/t and narrow widths. These subpar results are not of great concern, though, the analyst added, because White Gold’s “extensive land package hosts no end of prospective targets to keep the discovery pipeline full.”

Looking forward, Soock wrote that Stifel expects the stock of White Gold, which has multibagger potential, “to rerate as advanced exploration targets are drilled (including Titan, Vertigo, Betty, Sabatoge, etc.) and additional discoveries continue to be made. We also anticipate the sale of the Golden Saddle/Arc to be a major positive catalyst.”

Stifel has a Buy rating and a CA$2.70 per share target price on White Gold, the current share price of which is about CA$0.50.

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Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: White Gold Corp.[/SHORT_CODE] Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with White Gold Corp.[/SHORT_CODE] Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of White Gold Corp.[/SHORT_CODE], a company mentioned in this article.

Important Disclosures and Certifications From Stifel Canada, White Gold Corp.[/SHORT_CODE] 
I, Stephen Soock, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Stephen Soock, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. White Gold is a client of Stifel Canada or an affiliate or was a client of Stifel Canada or an affiliate within the past 12 months.

White Gold is provided with investment banking services by Stifel Canada or an affiliate or was provided with investment banking services by Stifel Canada or an affiliate within the past 12 months.

Stifel Canada or an affiliate has received compensation for investment banking services from White Gold in the past 12 months.

Stifel Canada or an affiliate expects to receive or intends to seek compensation for investment banking services from White Gold in the next 3 months.

The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel’s overall revenue, which includes investment banking revenue.

Please visit the Research Page at www.stifel.com for the current research disclosures and respective target price methodology applicable to the companies mentioned in this publication that are within Stifel Canada’s coverage universe. For a discussion of risks to target price including basis of valuation or methodology, please see our stand-alone company reports and notes for all stocks.

The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by us and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities referred to herein. Opinions expressed are as of the date of this publication and are subject to change without notice. These opinions do not constitute a personal recommendation and do not take into account the particular investment objectives, financial situation or needs of individual investors. Employees of Stifel, or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. Stifel or any of its affiliates may have positions in the securities mentioned and may make purchases or sales of such securities from time to time in the open market or otherwise and may sell to or buy from customers such securities on a principal basis; such transactions may be contrary to recommendations in this report. Past performance should not and cannot be viewed as an indicator of future performance.

Unless otherwise noted, the financial instruments mentioned in this report are priced as of market close on the previous trading day and presumed performance is calculated always over the next 12 months.

As a multi-disciplined financial services firm, Stifel regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions.

( Companies Mentioned: WGO:TSX.V; WHGOF:OTCQX; 29W:FRA,
)




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Resources Top 5: Hopeful uranium stocks, an important graphite deal, and lots of imminent news flow

Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government Cauldron Energy dusts off Yanrey uranium project, despite ……

  • Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government
  • Cauldron Energy dusts off Yanrey uranium project, despite government opposition
  • Redstone (copper, cobalt), Latrobe (magnesium) and Empire (gold, copper, nickel, PGEs) up on no news

Here are the biggest small cap resources winners in early trade, Tuesday December 7.

 

CAULDRON ENERGY (ASX:CXU)

(Up on no news)

When the WA state government implemented a ban on most new uranium mines in 2017, CXU stopped work at its flagship ‘Yanrey’ uranium project and began searching for other dirt to play with.

It now has a historic gold project called ‘Blackwood’ in Victoria and a silica sands play called ‘Ashburton’ in WA. It is also poking around Yanrey again, which is a lot more interesting now that uranium prices are on the move.

While government support (or lack thereof) for new mines has not changed, a recent survey uncovered a bunch of “highly prospective targets for follow-up drilling” at Yanrey.

“Our ultimate objective is to explore for uranium mineralisation amenable to extraction by ISR,” CXU exec chairman Simon Youds says.

“Economic deposits of sandstone-hosted, palaeochannel-style uranium can be mined using ISR in the lowest cost quartile of uranium mined globally.”

“This characteristic makes these deposits extremely attractive for mining at any uranium price and necessarily must form the basis of any uranium resource portfolio.”

Yanrey exists within a larger uranium province that is slowly being uncovered, Youds says.

“There is potential here for a scale comparable to the best uranium-endowed province globally and that, with astute leadership, Western Australia is at the threshold of a new energy resources boom.”

At Blackwood, CXU has stumbled upon visible gold in an underground area historically excavated for access purposes only:

“The visible gold observed, coupled with the beautiful sandstone-shale contact and structurally complex geology, provides an exciting new target for drill testing,” Youds said in November.

“The observation of visible gold further increases our confidence in the remaining mineral potential of these historical mines.”

The $11.5m market cap stock is down 6% over the past month, and 30% year-to-date. It had $1.5m in the bank at the end of September.


 

REDSTONE RESOURCES (ASX:RDS)

(Up on no news)

The nanocap, which has partially bounced back from recent losses in early trade Tuesday, is drilling to grow the 38,000t copper, 535t cobalt ‘Tollu Copper Vein’ deposit, part of the ‘West Musgrave’ project in WA.

Tollu hosts “a giant swarm of hydrothermal copper rich veins” in a mineralised system covering a +5sqkm area, ~40km from OZ Minerals’ (ASX:OZL) world-class Nebo-Babel nickel-copper deposit.

A conceptual (theoretical, not real yet) exploration target suggests up to 627,000t of copper may be present, the company says.

Recent portable XRF analysis of new drilling returned hits like 16m at 2.62% copper from a 74m downhole, including 6m at 6% copper from 76m.

These will be confirmed by traditional assay, the company says. Labs are backed up to the hilt, so who knows when that will be.

RDS say exploration will continue “at the earliest opportunity” in 2022 with a deeper RC drilling program at priority targets.

The $12m market cap stock is up 30% over the past month. It had $2.6m in the bank at the end of the September quarter.

 

BLACK ROCK MINING (ASX:BKT)

It’s been a good news week for aspiring graphite miner BKT.

Today it announced it had been invited by the Mining Commission to attend a ceremony in Dar es Salaam, Tanzania on Monday 13 December “to finalise an agreement with the Government of Tanzania”.

Black Rock managing director John de Vries is currently in country and is expected to attend, BKT says.

The company has also just completed a massive 500t pilot plant run – the largest ever, it says — to send off for qualification (testing) to potential customers in North America, Asia and Europe.

This will ultimately support project financing, BKT says.

The company now needs to finalise off-take terms with cornerstone investor POSCO, and secure finance to underpin a $US116m Phase 1 development capex program.

The $183m market cap stock is down 10% over the past month, and up 115% year-to-date. It had $9.3m in the bank at the end of September.

 

LATROBE MAGNESIUM (ASX:LMG)

(Up on no news)

Early works – like fixing fences, site clean-up, contracting — are happening apace at LMG’s magnesium project in Victoria’s Latrobe Valley, with construction on an initial 1,000 tonne per annum magnesium plant due to kick off in Q1 2022.

Production starts up to 12 months later in Q4 2022.

The plant will be expanded to 10,000 tonnes per annum magnesium shortly thereafter, with further plant capacity expansion to be considered once it is operating successfully.

Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones, and power tools.

In November, LMG said current magnesium price was US$6,150 per metric tonne and expected to hold.

“LMG’s revenue estimates are based upon US$3,250 per tonne which was the magnesium price in June 2021, before the China supply shortage commenced in September 2021,” it says.

“If the current price of US$6,150 per metric tonne held long term, it would increase LMG’s estimate of EBITDA for its 10,000tpa plant by some $56m.”

In 2020, world magnesium production was ~1 million tonnes, of which China supplied ~85%.  China has begun a 13-year plan to increase Mg in cars from 8.6kg to 45kg by 2030, requiring an additional 1 million tonnes of new Mg production per annum.

$131m market cap LMG is down 21% over the past month, and up 335% year-to-date. It has raised $11.5m  via placement to help fund the initial $39m 1,000tpa plant.

 

EMPIRE RESOURCES (ASX:ERL)

(Up on no news)

This busy polymetallic explorer has already drilled 13,000m so far in 2021 at the ‘Penny’s and Yuinmery’ projects in WA, with diamond drilling of some juicy gold, copper, and nickel-copper-PGE targets at Yuinmery due to kick off sometime this month.

ERL would’ve drilled even more if not for issues getting hold of a rig, something the company intends to fix in 2022.

“Our exploration plans for 2022 include the lock-in of a core drilling rig and driller for exclusive use by Empire,” chairman Michael Ruane says.

“This should assist in accelerating at least the drilling component of our exploration programs for the forthcoming period. The rig will be particularly useful for the deep drilling required for the promising Yuinmery targets (eg Smiths Well/YT01).”

The rig should be ready for commissioning this month, he says.

The $14.85m market cap stock is up 30% over the past month. It had about $3.5m in the bank at the end of November.


The post Resources Top 5: Hopeful uranium stocks, an important graphite deal, and lots of imminent news flow appeared first on Stockhead.







Author: Reuben Adams

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Energy & Critical Metals

Met testwork proves Sovereign’s Kasiya will deliver a premium natural rutile product

Special Report: Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting…

Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting the stage for the company’s landmark scoping study.

Testwork continues to demonstrate the world class nature of Sovereign’s (ASX:SVM) Kasiya deposit, with simple and conventional processing delivering levels of 95% to 97.2% TiO2 with low impurities at stand-out metallurgical recoveries ranging from 94% to 100%.

That makes Kasiya competitive on TiO2 grades with some of the world’s largest natural rutile operations like Iluka’s Sierra Rutile and Rio Tinto’s Richards Bay Minerals.

It opens the door for discussions with tier-1 offtakers in the markets for TiO2 pigment, titanium metal and welding, where customers are facing widening supply deficits in a strengthening market.

Additionally, testwork has shown conventional flotation methods can be used to produce a coarse flake graphite by-product from rutile gravity tails with 60% at a coarseness of +150µm, suggesting it will have a high basket value when sold to market.

A program at SGS Lakefield in Canada confirmed simple processing methods delivered a very coarse-flake graphite concentrate at 96.3% TGC.

“Consistently achieving premium rutile specifications with stand-out recoveries via conventional “off the shelf” processing methods reinforces the robustness of metallurgical and processing performance of the Kasiya rutile mineralisation ahead of the upcoming Scoping Study,” Sovereign managing director Dr Julian Stephens said.

“These continued very high-quality product specifications should generate further interest from end-users across the titanium sector as the global structural deficit in natural rutile supply continues to widen.”

Processed rutile being despatched to potential customers. Pic: Sovereign Metals

Kasiya scoping study round the corner

With the results in today’s announcement, Sovereign has now demonstrated the impressive metallurgical qualities of the Kasiya resource in two separate rounds of met testwork.

The testwork also confirms Kasiya will deliver strong recoveries and product specifications based on conventional off-the-shelf processing technology, which bodes well for its future development.

Proving the original results were certainly no fluke and opening the door to interest from Tier-1 offtake customers, they set up Sovereign to release a scoping study in the coming weeks.

With most of the technical disciplines now complete, mining optimisation and capital and operating cost estimations are currently being finalised.

A new indicated mineral resource estimate is also on the way after substantial resource drilling to build upon the world-class inferred resource released in June.

That confirmed Kasiya as one of the largest natural rutile deposits in the world, with an inferred resource of 644Mt at 1.01% rutile and a high-grade component of 137Mt at 1.41% rutile.

 


 

 

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Met testwork proves Sovereign’s Kasiya will deliver a premium natural rutile product appeared first on Stockhead.



Author: Special Report

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Articles

I see you: Red Mountain Mining contacts heavy rare earth elements at Mt Mansbridge

Special Report: Red Mountain Mining’s 1,200m RC drilling program at the Mt Mansbridge project in WA is off to a … Read More
The post I see you: Red…

Red Mountain Mining’s 1,200m RC drilling program at the Mt Mansbridge project in WA is off to a good start, with heavy rare earth elements (HREE) discovered in four holes.

A shortened drill program due to the onset of the Kimberley wet season, hasn’t stopped the company cracking open xenotime (dysprosium) mineral within sample drill chips.

There’s also a pulse-raising 6m mineralized heavy rare earth zone (49-55m) intersected in hole MMRC002 at the Solo prospect and finally drilling has intersected altered peridotite at Déjà vu – prospective for cobalt mineralization.

Red Mountain Mining (ASX:RMX) is already prepped for drilling once the site is accessible again in early 2022.

Solo prospect samples prioritised for assay

The prospect is a +200m NW-SE trending zone of HREE mineralisation initially identified by BHP (ASX:BHP) during uranium exploration in the 1980’s.

Three RC holes for 451m were completed at the prospect during the drilling program, with a 6m zone (49-55m) of xenotime mineralisation identified.

Visual estimations of the xenotime mineralisation ranged from between 1-10% of the total composition of minerals over the 6m zone.

On-site analysis using a portable XRF confirmed the zone as anomalous in both yttrium and ysprosium, and the zone has been prioritized for assay at the laboratory for immediate analysis.

Red Mountain Mining
Rare earth element and nickel-copper-cobalt-PGE prospects at the Mt Mansbridge project

Déjà vu prospective for cobalt

Previous sporadic sampling and assaying at the Déjà vu prospect returned several encouraging cobalt assay results between 70-100m including 0.34%, 0.32% and 0.22% cobalt.

Litho-geochemical studies recently undertaken by geochemical and geological consultants highlighted the cobalt as primary magmatic related (i.e. not weathering enrichment) while the anomalous cobalt values can’t be down to just silicate minerals within the peridotite.

Hole MMRC004 has been drilled to a depth of 75m, with the hole designed to provide further geological information and a comprehensive set of samples around the existing cobalt anomaly.

Samples have been prioritized at the lab for immediate assay, with further deeper drilling and an additional hole to the north and south planned for early 2022.

 


 

 

This article was developed in collaboration with Red Mountain Mining Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post I see you: Red Mountain Mining contacts heavy rare earth elements at Mt Mansbridge appeared first on Stockhead.




Author: Special Report

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