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Devil in the detail for HWK gold explorer spinoff Diablo

It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining … Read More
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This article was originally published by Stockhead

It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining spin-off Diablo Resources plans to list.

Diablo (to be ASX:DBO) will join the ASX boards in the coming weeks with a suite of three highly prospective US-based gold and copper projects – all of which are drill ready and proximate to projects of significance in their region.

The projects were formerly on the Hawkstone books, but that company has turned its full focus to lithium in Arizona (it’s literally on the cusp of changing its name to Arizona Lithium), leaving the highly prospective suite of assets to be spun into Diablo.

“I think our shareholders understand that the Big Sandy lithium project is such a large project, with lithium in Arizona ideally located, and it’s a big potential resource,” Hawkstone MD Paul Lloyd, who will also become Diablo chairman, told Stockhead.

“When we brought these gold projects into Hawkstone they were dwarfed by Big Sandy, and therefore we don’t think they ever got the market valuation that was warranted.

“We’ve done a lot of work on the projects to get them to the point where they are drlll-ready, and we think they’ll create a lot more value for shareholders in a separate entity.”

Diablo’s assets include the Devil’s Canyon gold project on the world-famous Carlin Trend in Nevada, the Western Desert gold-copper project 50km west of the Long Canyon gold mine in Utah, and the Lone Pine historical high-grade gold project 8km east of the 3-million-ounce Beartrack mine currently being explored by TSX-listed Revival Gold in Idaho.

Diablo’s exploration projects. Pic: Supplied.

Spicy project trio

Diablo’s name suggests heat, and the early signs suggest there’s plenty in the ground at each of its exploration projects.

At Devil’s Canyon, rock samples have returned astounding assays as high as 191.5 grams per tonne gold, 524g/t silver and 16.05% copper.

Samples from Western Desert have come in at 6.9g/t gold, 1495g/t silver and 5.09% copper, while historic drilling at Lone Pine returned assays including 1.2m at 17g/t gold and 1.9m at 12.9g/t gold with mineralisation open in all directions.

Lloyd isn’t planning on wasting any time in getting Diablo’s exploration efforts going, expecting to have approvals in place for drilling on at least one of the projects around the time of listing.

“It’s more than likely we’ll be able to commence drilling at Western Desert in Utah, which is very close to Long Canyon and a project where we’ve recorded some terrific surface numbers,” he said.

“The gravity of the work we’ve already done there to date and the other technical work we’ve completed really gives us a lot of upside and there’s potential for great early-stage results from drilling.”

Priority targets at Western Desert. A1 and A3 rated as priority. Pic: Supplied.

Located in the prolific Carlin Trend, where almost 200 million ounces of gold have been produced over the years, Devil’s Canyon is likely to be the Diablo flagship.

Lloyd said he had long aspired to working with a project in the region, and will have the chance to do so with Diablo.

“There’s been some really impressive rock chip samples come out of there already, and it sits only 20km west of Kinross Gold Corporation’s in-production Bald Mountain mine,” he said.

“Devil’s Canyon has similar geology to that deposit. We’d love to get in there and have four or five holes completed before the weather changes.

“In this area, you’re hunting for elephants, and those rock chip samples give us an indication that there’s something serious there. We’re really looking forward to drilling it.”

Devil’s Canyon is over the border from Western Desert in Nevada. Pic: Supplied.

Minimal modern-day exploration has been carried out at Lone Pine, where 18 shallow holes were drilled in the 1990s at the King Solomon prospect.

The project includes a high-grade zone mined prior to 1907, where maiden drilling in 2020 returned significant high-grade results.

Drone magnetics are planned for Lone Pine in Q3 2021.

The Lone Pine project in Idaho. Pic: supplied.

Experience on the ground

Floated by the same team behind the IPOs of BPM Minerals (ASX:BPM) and Pantera Minerals (ASX:PFE), there are some familiar names at management level for Diablo.

Experienced gold geologist Lyle Thorne, who was previously exploration manager for NTM Gold prior to its Dacian merger, will join as CEO, while Barnaby Egerton-Warburton and Greg Smith will serve as non-executive directors.

On the ground, the company is drawing on expertise of Harrison Land Services – a Utah based consulting firm which has proved itself to have significant knowledge of the western US.

“These projects, being in Utah, Idaho and Nevada, are all fairly close to their base at Moab,” Lloyd said.

“The team is headed up by Gavin Harrison, who has more than 20 years’ experience with rigs and staking ground, and who helped us acquire these projects to begin with. He’s invaluable.”

When it lists, Diablo will do so with 74.5 million shares on issue and a market capitalisation of $14.9 million, with $6.5 million cash on listing before costs.

“I expect we’ll look really good in the first six months because we’ll have such great newsflow,” Lloyd said.

“Any exploration success should effect the share price significantly.”

Diablo is expected to list on the ASX on October 12, 2021.

At Stockhead, we tell it like it is. While Hawkstone is a Stockhead advertiser, it did not sponsor this article.

The post Devil in the detail for HWK gold explorer spinoff Diablo appeared first on Stockhead.

kinross gold corporation

Author: Jack McGinn

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Energy & Critical Metals

Day Traders Continue to Drive Uranium Prices Higher

They say a broken clock is right twice day. And oh baby, we may have reached that time of the day for Uranium…

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Ever notice how Michael Buble pops his head out of the ground like a hedgehog every December to sell Christmas albums? Well Uranium bulls do the same thing every year in January,  and are relentless in telling us that “This year is the year! Uranium is going to come back!”

They say a broken clock is right twice day. And oh baby, we may have reached that time of the day for Uranium. It’s time we start snorting that yellow cake, because Uranium is back baby!


In case you’re new to Uranium, here’s what you need to know:

  • Uranium is a heavy metal, so heavy it sometimes gets used in keels of yachts and as counterweights for aircraft control surfaces.
  • It is the key to nuclear power generation.
  • It’s 18.7 times as dense as water, has a melting point of 1132 degrees celsius, and is primarily found in Australia, Kazakhstan, and Canada. 

The big takeaway if you’re looking at investing in uranium and nuclear power is that it could be our ticket to a carbon neutral future. Don’t believe me, just ask Bill Gates or Elon Musk.


Uranium is beloved by retail investors for the simple reason that it has the ability to go parabolic. The annual production sits at around 125M pounds of uranium with annual demand around 190M pounds. Priced in today’s dollars of $50/lb it puts annual demand around $8.5B.

We can find articles dating back to the early 50s of Uranium investors holding the metal with expectations of massive returns. Over the last 70 years we have seen various booms and busts; with the most recent bull cycle occurring from 2004 to mid 2007 where we saw the price rally from around $15 to a high of $136. 

The price then settled in nicely around $40-50, which was followed by the Fukushima Da-ii-chi nuclear disaster in March 2011, which saw Japan who at the time had 54 nuclear reactors operating, electing to shut down the vast majority of them with only 10 reactors active today.  The price of uranium then sank to a low of just under $20 in 2016.

With only 443 nuclear reactors active today around the world, we can see how a country with just 50 reactors can have a massive impact on the supply and demand balance for  the uranium market.

But, after fourteen years of endless hoping, it appears the uranium bulls time may have finally come again.

At the time of filming, the yellow metal is currently trading at $50 and change. Up over 80% since a 1 year low of $27.60, and it appears things are just beginning. 

The largest piece of the global nuclear power demand is the United States who has 94 nuclear reactors operating with 2 more under construction and 3 more planned. Second place is China with 49 operating reactors,16 under construction, 39 more planned.

And of course, let’s flip back to Japan where Prime Minister candidate Tara Kono, who leads polling to win the popular vote generally wants Japan off nuclear power, but seemingly wants to ramp it up in the short run… Creating some medium term demand for the yellow powdery stuff.

What I’ve been saying about an exit from nuclear power is decommissioning quickly nuclear power plants that are reaching retirement and gradually exiting nuclear energy…. As I explained before, we should stop the use of coal, increase energy conservation and renewable energy and nuclear power can be used to fill the gap.

Fundamentally, things are shaping up nicely for Uranium, but what’s behind the sudden squeeze?

It started in March 2021 when Denison Mines, operator of the under-development Wheeler River project in Saskatchewan’s Athabasca basin, announced that they planned to raise US$75 million in a bought deal financing, the proceeds of which would be used to purchase uranium from the spot market for keeping in a strategic reserve. 

As Deep Dive Contributor Braden Maccke tells us at the time, “A mining company purchasing reserves of its main product is rare, the object of the mining business being, generally, to turn the commodity into cash, and not the other way around. But Denison clearly knows its audience, who responded favorably with an over-subscription to the deal, which was closed this past Monday, March 22nd bringing gross proceeds of $86.27 million.”

And then the bat signal suddenly went off at Sprott Asset Management headquarters in July, when they announced the creation of the first ever Physical Uranium Trust allowing retail investors an opportunity to directly drive investment demand in physical uranium via the stock market.

Now our old friend WallStreetBets catches on and suddenly we got ourselves an ole fashioned rally. The annual spot market volume of around 100M lbs or around $3B USD, wouldn’t take much buying beyond what Dennison pulled earlier to make sparks start flying in the spot market.

The Sprott Physical Uranium Trust started in July when uranium was priced at $32.30. As its name suggests, the fund was established to hold physical uranium, specifically U3O8, providing investors direct exposure to the physical asset. The fund is listed on the TSX under the symbol “U.UN”, and it’s expected to get a US big board listing at a later date.

The trust was established as a closed-ended trust. What this means, is that unlike an ETF, when investors sell off the fund, Sprott does not have to sell uranium to fund the outflows – meaning it stays in the vaults, and does not hit markets. As one Reddit user puts it, it makes the fund “structurally diamond handed.”

The fund started out at a relatively decent size – $600 million, not bad for a new trust. But they wanted more. Much, much more.

So, how do they grow their assets under management?

The trust has taken the easy path for this. To enable new unit creation they use something called an ATM or an “at the market financing.” Meaning, they sell new units on the open market, in this case, whenever the value of the unit is above the NAV for current units.

Any proceeds raised from the ATM financing goes directly to the purchase of more physical uranium. 

Here’s where it gets interesting. The first ATM announced by the trust began on August 17 – the most recent low for uranium. At the time, Sprott announced that the trust would be conducting a US$300 million financing to fund further uranium purchases. By the end of August, AUM had grown from $600 million to $754 million, with the trust holding $741 million worth of uranium – or roughly enough uranium to power all of France for 10 months.

So as the momentum continues.. well the ATM suddenly fills. 

So what does Sprott do? They go back for more. Announcing a second ATM financing – this time to the tune of US$1 billion.

Why is this substantial, other than for the fact its a BILLION dollars? As of the day of the announcement, the entire fund itself had assets under management of US$1.13 billion – that means they are looking to very quickly DOUBLE the value of all uranium it holds in physical trusts. A billion dollars at $50 per pound represents around 20% of the world’s annual production. And at this rate, Sprott appears to be filling these ATMs in a matter of weeks. 

So could we get to the point where Sprott is buying up uranium to the tune of over 100M lbs a year? If that happens, there goes annual supply and who knows where the price ends up.

So if you’re catching on here, you’re realizing the Uranium market is small. Very small. Current production is estimated at a little over 125 million pounds per year, while demand is estimated at being 190 million pounds for 2021. At $30 uranium, that’s roughly a $5.7 billion market. Which is wild, given the supply / demand imbalance. There are literally cannabis stocks valued higher than the entire uranium market right now.

What’s also valued higher? Why, GameStop of course. And look at the number WallStreetBets did to them.

On that topic, roughly two months ago, uranium had its “RoaringKitty” moment on WSB – in the form of a user named “RadTheReptile”. The user published a post, titled “The Uranium Thesis: have your cake (but don’t eat it),” which is viewed as one of the origins of the rising demand for the metal.

The post outlined many facets of the market, including the rising demand for clean nuclear energy, how its used, and the commodity market behind the metal, including the involvement of hedge funds. One key point, is that until we reach $50-60 per pound, mines are unlikely to start up – causing a further supply glut. While specific stocks were not mentioned, it began a chain of events.

As small cap investors know, sentiment is everything.

So where is uranium headed? Well, if Sprott’s activities are any indication, it’s higher. One twitter user who has been notably on the money with several uranium price calls, @BambroughKevin, was expecting the metal to hit $55 per pound by year end – however earlier last week he said this target “will likely get blown away.” He’s also suggested that $180 per pound might be achieved by March 2022.

And of course, as one would expect, buying begets buying, and we are now seeing copycat funds partake in the Uranium squeeze, with Uranium Royalty Corp announcing they acquired an additional 648k pounds of physical uranium. 

The keys takeaways if you’re reading this:

  • Nuclear is the key to a carbon neutral future.
  • Nuclear requires uranium.
  • The uranium market is very small.
  • Uranium had the introduction of it’s first physical ETF in July 2021.
  • This event has made the price of the commodity increase by 80%.
  • And it appears the momentum is getting stronger.

What happens next is anyone’s guess, but my god, we may have an ole fashion squeeze. And this time instead of squeezing the hedgies, we’re squeezin’ the utilities.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Uranium: The Squeeze, Explained appeared first on the deep dive.

Author: Jay Lutz

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Puma Exploration Extends the Gold Mineralized Zone Into the Sediments at Williams Brook Gold Property

RIMOUSKI, Quebec, Oct. 21, 2021 – Puma Exploration Inc., PUMA-TSXV, (the “Company” or “Puma”) is pleased to announce the results from six (6)…

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RIMOUSKI, Quebec, Oct. 21, 2021 – Puma Exploration Inc., PUMA-TSXV, (the “Company” or “Puma”) is pleased to announce the results from six (6) additional drill holes completed within the inaugural drilling program at its flagship Williams Brook Gold Project located in New Brunswick, an emerging new gold district of Atlantic, Canada.

These six (6) holes were collared to test the extension into the sediments of the gold bearing quartz veins intersected within the altered rhyolite by the previously announced six (6) drill holes (see Figure 1). These results clearly show that the gold mineralised envelope extends within the sediments and is not restrained to the altered rhyolite near the lithological contact.


  • All six (6) holes intersected continuous pervasive alteration and mineralisation:
    • WB21-12 grade 1.00 g/t Au over 40.6m including 6.93 g/t Au over 3.8m
    • WB21-09 grade 1.07 g/t Au over 36.0m including 15.52 g/t Au over 1.7m
    • WB21-10 grade 1.07 g/t Au over 14.4m including 2.24 g/t Au over 6.0m
  • Gold contained in quartz veins networks intersected at depth duplicates very well the surface grab samples assays.
  • Significant gold mineralisation observed in the rhyolite is now recognized in the sediments thus increasing the potential siz eof the favourable corridor. 
  • High grade gold veins extending in the sediments such as: 48.2 g/t Au over 0.4m, 22.2 g/t Au over 0.7m, 20.0 g/t Au over 0.5m, 19.9 g/t Au over 0.5m and 18.8 g/t Au over 0.5m.

Marcel Robillard, President and CEO, stated: “We are pleased to confirm that the significant high grade gold intercepts are not limited to the altered rhyolite but also extend into the sediments. It is in line with our structural model of a N260 oriented high-grade gold bearing quartz veins network open on both side and at depth. So far, results are impressive for a first initial 2,300 meters drilling campaign and needless to say that we can’t wait to launch the planned 10,000m soon!”
Figure 1. Map of the Lynx Zone Drill Results

These gold bearing quartz veins networks are consistent along the favorable contact sediment/rhyolite and recent sampling results (see PR 2021-10-14) confirmed the presence of other similar systems along strike within the 7 kilometers potential O’Neil Gold Trend. Stripping and intense sampling will then be extended an additional 300 meters NE toward the Moose Gold Zone.

Table 1. Significant Drill Results for WB21-06 to WB21-12*

Hole ID From (m) To (m) Lenght (m) Au (g/t)
WB21-07 8.40 34.00 25.60 0.46
Incl. 8.40 9.85 1.45 2.18
and 25.00 33.00 8.00 0.95
Incl. 25.00 25.90 0.90 5.40
Incl. 32.00 33.00 1.00 1.22
  146.75 150.00 3.25 0.49
Incl. 149.40 150.00 0.60 2.14
WB21-08 8.00 33.50 25.50 0.46
Incl. 8.50 10.10 1.60 5.93
and 9.05 10.10 1.05 8.96
  25.80 27.90 2.10 0.62
  65.30 65.75 0.45 1.17
WB21-09 15.00 51.00 36.00 1.07
Incl. 15.00 18.40 3.40 8.04
 Incl. 16.30 18.00 1.70 15.52
 and 38.00 39.00 1.00 10.24
 Incl. 38.50 39.00 0.50 20.00
WB21-10 17.20 31.60 14.40 1.07
Incl. 17.20 23.20 6.00 2.24
 Incl. 19.20 21.20 2.00 4.17
WB21-11 21.50 45.85 24.35 0.23
Incl. 21.50 23.50 2.00 1.00
 and 45.40 46.50 1.10 1.97
WB21-12 28.40 69.00 40.60 1.00
 Incl. 28.40 54.00 25.60 1.58
Incl. 28.60 35.00 6.40 4.83
 Incl. 28.60 32.40 3.80 6.93
 Incl. 28.60 29.00 0.40 48.20
and 32.00 32.40 0.40 12.75
 and 34.50 35.00 0.50 5.02
 and 53.00 54.00 1.00 8.54

* Stated lengths in meters are downhole core lengths and not true widths. True widths will be calculated once more drilling confirms the geometry of the quartz-sulphide system.


Puma’s technical team continues to better define and extend the gold zones on surface by prospecting, trenching, stripping, and intense sampling in preparation for the next drilling campaign scheduled later in 2021. Also, a ground IP geophysical test survey is in progress over the OGT to see if the high-grade gold zones have a specific geophysical signature. Current work programs are highlighted on the Figure 2.
Figure 2. Current Work in Progress at O’Neil Gold Trend

Table 2. Technical Informations About the Drill Holes Released

Hole ID Utm X Utm Y Orientation Angle Lenght (m)
WB21-07 660253 5259313 N155º -45 º 210
WB21-08 660253 5259314 N155º -65 º 139
WB21-09 660236 5259306 N155º -45 º 99
WB21-10 660236 5259306 N155º -65 º 98
WB21-11 660219 5259296 N155º -45 º 58
WB21-12 660219 5259297 N155º -65 º 150
WB21-13 660235 5259260 N155º -45 º 110


The O’Neil Gold Trend (OGT) is a pervasive altered and brecciated rhyolite unit hosting significant gold showings and occurrences followed by trenching and drilling over a strike length of 700 meters. The geophysical signature of the OGT is expressed over 7km. The favourable unit (rhyolite) is similar and parallel to the structures hosting the “Williams 1” and “Williams 2” Gold Zones where previous operator drilled in 2008, 54.2 g/t Au over 2.8 meters and 1 g/t Au over 23 meters.

These trends are interpreted to be related to a major rifting in the New Brunswick Geological events and could represent a low sulphidation epithermal gold system. Along the OGT, the width of the rhyolite varies from 5 to 250 meters with an average apparent thickness of 150 meters.

The core-oriented maiden drill campaign was completed on August 20, 2021. It consisted of 18 holes for a total of 2,360 meters that tested a 200-meter segment of the 700-meter-long O’Neil Gold Trend (OGT). The assay results for the twelve (12) first holes are released and all holes intersected significant gold mineralisation including the discovery hole WB21-02 that cut 5.55 g/t Au over 50.15 meters from surface, including 9.88 g/t Au over 8.60 meters and 46.94 g/t Au over 3.85 meters. The assays are pending for the remaining 6 drill holes.

High-Grade Selected Grab Samples Assays on the Prolific O’Neil Gold Trend (OGT)*:

O’Neil Gold Zone:   128.5 g/t Au, 44.4 g/t Au, 38.8 g/t Au, 32.8 g/t Au, 23.1 g/t Au
Pepitos Gold Zone:   52.1 g/t Au, 16.1 g/t Au, 15.0 g/t Au, 13.1 g/t Au, 4.87 g/t Au
Lynx Gold Zone:   241.0 g/t Au, 79.8 g/t Au, 74.2 g/t Au, 63.5 g/t Au, 58.4 g/t Au
Chubby Zone Area:   3.5 g/t Au, 1.2 g/t Au, 1.2 g/t Au, 0.45 g/t Au
Moose Gold Zone:   2.4 g/t Au, 2.1 g/t Au, 1.3 g/t Au, 1.1 g/t Au

* Selected rock grab samples are selective by nature and may not represent the true grade or style


Dominique Gagné, PGeo, independent qualified person as defined by Canadian National Instrument 43-101 standards, has reviewed and approved the geological information reported in this news release. Neither 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. Mr. Gagné is independent of the Company.


Rock samples were bagged, sealed and sent to the facility of ALS CHEMEX in Moncton, New Brunswick where each sample is dried, crushed, and pulped. The samples were crushed to 70% less than 2mm, riffle split off 1kg, pulverise split to better than 85% passing 75 microns (Prep-31B). A 30-gram subsplit from the resulting pulp was then subjected to a fire assay (Au-ICP21). Other screen sizes available. Duplicate 50g assay on screen undersize. Assay of entire oversize fraction.


Puma Exploration is a Canadian-based mineral exploration company with precious and base metals projects in early to advanced stages located in the Famous Bathurst Mining Camp (BMC) in New Brunswick, Canada. Great efforts will be made by the Company in the coming years to deploy its DEAR strategy (Development, Exploration, Acquisition and Royalties) in order to generate maximum value for shareholders with low shares dilution.

You can visit us on Facebook / Twitter / LinkedIn
Learn more by consulting for further information on Puma.
Marcel Robillard, President, (418) 750-8510; [email protected]

Forward-Looking Statements: This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Puma to be materially different from actual future results and achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, except as required by law. Puma undertakes no obligation to publicly update or revise any forward-looking statements. These risks and uncertainties are described in the quarterly and annual reports and in the documents submitted to the securities administration.

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Base Metals

NorZinc Reports US$299 Million After-Tax NPV For Prairie Creek Project

NorZinc Ltd. (TSX: NZC) shared today the results of its preliminary economic assessment for the 100%-owned Prairie Creek project in
The post NorZinc Reports…

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NorZinc Ltd. (TSX: NZC) shared today the results of its preliminary economic assessment for the 100%-owned Prairie Creek project in the Northwest Territories. The results highlighted US$299 million after-tax NPV8% at a base case price of US$1.20 per zinc pound, US$1.05 per lead pound, and US$24.00 per silver ounce.

The assessment also incorporates the updated mineral resource estimate for the property effective October 15, 2021. This report shows the mine contains 9.8 million tonnes of total measured & indicated resources at 22.7% zinc equivalent, a 15% increase from the September 2015 estimate.

“While the PEA considers historical data with a reinterpreted mineral resource, it outlines a solid base-case for management as we continue on the planned path towards financing and development of the Prairie Creek Project,” said NorZinc CEO Rohan Hazelton.

The report is providing an assessment for a 2,400 tonnes per day throughput plan with a life of mine of 20.3 years.

After-tax IRR is at 17.7% while the payback period is expected to be 4.8 years. This is based on a preproduction capital outlay of US$368 million.

For the life of mine, after-tax free cash flow is expected to be US$1.12 billion. The expected average EBITDA per year is US$123 million and the total EBITDA for the mine’s life is assessed to be US$2.5 billion.

The mining firm said that it is securing the modified permits to reflect the updated throughput rates and expects this to be released in Q1 2022.

NorZinc Ltd. last traded at $0.06 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post NorZinc Reports US$299 Million After-Tax NPV For Prairie Creek Project appeared first on the deep dive.

Author: ER Velasco

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