Penny stock precious metal explorer plays

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#1 Sun, Oct 9, 2011 - 5:40pm
mouser
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Penny stock precious metal explorer plays

Was looking for a forum for penny stock explorers to discuss great drilling results and value of resources in ground etc. Focus on drilling results that will excite the market. Any good ideas or results are more than welcome to be posted on this forum. All are welcome to discuss and debate the values of these penny explorers here.

One that caught my eye lately was the Leprechaun project in Newfoundland , a JV between MOZ , Marathon Gold and Mountain Lake MOA.

They have had good results from this play over the past year or two , but last week had the best result to date, as HOLE 11-352 hit 26.1 metres of 13.95 gpt AU at 136 metres depth. That is 728$ per tonne rock value at easily openpittable depth, The deposit appears to be getting richer as they go deeper in this latest direction. Sprott liked it enuf to buy 2 million shares worth of MOA in the latest pp at .65.

half-warrants at .80 

MOZ has only 23 million shares OS and was up .07 friday to 1.40 , market cap just over 32 million

MOA with more shares out, 46 million or so , but at only .53 a market cap of only 25 million or so

On January 25, Marathon Gold Corp. (TSX: MOZ) (“Marathon”) completed its earn-in obligation under the sub-option and joint venture agreement announced December 23, 2009, and Mountain Lake and Marathon now own 100% of the Valentine Lake Property on a 50/50 joint venture basis. Marathon is the operator of the project, and the partners have agreed to jointly fund a $7.1 million budget in 2011.

As reported October 6, 135 drill holes totaling 23,372m of core drilling have been completed to date of the 25,000m drilling campaign planned for the Valentine Lake Project in 2011. The 2011 step-out and infill drilling results continue to meet the two key objectives of (1) expanding the gold resource and (2) increasing the confidence in the gold resource of the Leprechaun Deposit with intersections of both high-grade and wide intervals of gold mineralization confirming the continuity of the Main Zone and demonstrating the resource potential along strike and down dip.
Edited by: mouser on Nov 8, 2014 - 5:20am
Sun, Oct 9, 2011 - 5:56pm
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DEC-v Decade Resources

Latest results from Red Cliff were very decent, and appears the Ed Kruchkowski and team have identified the direction of the gold mineralization. Latest hits that were decent were DDH MON 11-2 with 13 metres of over 10 gpt GOLD , ( 173 metres down) 

and DDH MON 11-6 with 6.85 meters of over 11 gpt GOLD, that one at shallow depth of 121.8 metres

This part of the NR got my attention..

Several recently completed holes drilled to the southwest of DDH-MON-11-1 to DDH-MON-11-6 have intersected wide zones of chalcopyrite and pyrite stringer mineralization containing visible gold. Results from these holes are anticipated shortly.

Chalcopyrite , is also know as copper iron sulphide-

Chalcopyrite is often confused with pyrite, although the latter has a cubic and not a tetragonal crystal system. Further, chalcopyrite is often massive, rarely crystalline, and less brittle. Chalcopyrite is also a darker yellow in color, with a greenish tinge and diagnostic greasy luster.

Due to its color and high copper content, chalcopyrite has often been referred to as "yellow copper".

Shallow , containing gold and likely copper is very interesting, as this play only 3 kms or so from HWY 37a , a short 30 min drive to the seaport of Stewart, B.C. Rumors from sources in the area, say perhaps the best assays from the 28 holes completed so far this year are still to come. The first 6 holes were reported last week.

Sun, Oct 9, 2011 - 6:04pm
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By the way

I forgot to add the DEC has about 56 million shares out, was up half a penny to .16 on friday on low volume.

I grabbed a few at .155 last week, hoping that the rumors have some teeth. Market cap for DEC very small at about 9 million $, they own 60% of the Red CLiffs plays with MTB owning 40%, .

Sun, Oct 9, 2011 - 6:22pm
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Last week i brought up RVS, ROG results

On a different thread, i was very impressed to say the least with the results from Yaramoko. I found out later upon doing dd that ROG , Roxgold now owns 100 % of that Yaramoko play. ROG with lots of cash now as well, just having completed a 20 million $ PP: Further to its press release of Sept. 21, 2011, Roxgold Inc. has completed the sale of 23.53 million subscription receipts on a bought deal private placement basis with a syndicate of underwriters led by Cormark Securities Inc., and including Fraser Mackenzie Ltd., GMP Securities LP, PI Financial Corp. and Pope & Co. Ltd., at a price of 85 cents per subscription receipt for total gross proceeds of $20,000,500, pursuant to an underwriting agreement between Roxgold and the underwriters dated Oct. 6, 2011.

Roxgold Inc. and Riverstone Resources Inc. have entered into a binding letter agreement pursuant to which Roxgold has agreed to acquire the remaining interests in each of its Yaramoko, Bissa West and Solna projects, a group of advanced stage exploration projects in Burkina Faso, West Africa, from Riverstone.

Under the terms of the agreement, Riverstone will receive total consideration of approximately $33.5-million, comprising $17-million in cash and 16 million Roxgold common shares valued at $1.03 per common share (based on the closing share price of Roxgold common shares on Sept. 20, 2011).

Here was that result.

Roxgold drills eight m of 53.56 gpt Au at Yaramoko

2011-10-04 10:23 ET - News Release

Mr. Robert Sibthorpe reports

ROXGOLD RECEIVES ADDITIONAL HIGH GRADE GOLD INTERCEPTS FROM YARAMOKO CONCESSION, BURKINA FASO, WEST AFRICA

Roxgold Inc. has received assays from selected intervals from an additional 12 core holes from its Yaramoko concession located in western Burkina Faso, eight of which are from zone 55, in an area known as Bagassi Central.

Highlights

  • From YRM-11-DDH-021: 53.56 grams per tonne gold over eight metres (including 178.3 gpt Au over two metres);
  • From YRM-11-DDH-018: 47.41 gpt Au over 8.5 metres (including 156.9 gpt Au over two metres);
  • From YRM-11-DDH-024: 37.68 gpt Au over 16 metres (including 73.8 gpt Au over seven metres);
  • From YRM-11-DDH-023: 100.58 gpt Au over four metres (including 177.0 gpt Au over two metres).

"The gold intercepts at Yaramoko continue to exceed our expectations," says Roxgold president and chief executive officer Robert Sibthorpe. "The results extend the mineralized strike length of zone 55 a further 100 metres to the east, indicating the presence of a high-grade shoot in this area."

The results of the eight core holes from zone 55 are as follows (and can be found on Roxgold's website):

  • DDH-017 reported 5.52 gpt Au over three metres;
  • DDH-018 reported 47.41 gpt Au over 8.5 metres (including 156.9 gpt Au over two metres);
  • DDH-019 reported 3.79 gpt Au over two metres and 2.0 gpt gold over four metres;
  • DDH-020 reported 2.10 gpt Au over 12 metres;
  • DDH-021 reported 53.56 gpt Au over eight metres (including 178.3 gpt Au over two metres);
  • DDH-023 reported 100.58 gpt Au over four metres (including 177.0 gpt Au over two metres);
  • DDH-024 reported 37.68 gpt Au over 16 metres (including 73.80 gpt Au over seven metres and 29.91 gpt Au over two metres);
  • DDH-025 did not return any significant results from the three one-metre intervals sampled.

Drill holes 017, 018 and 021 through 024 are located in the eastern area of zone 55, and together with previously reported high-grade intervals, including 62.74 gpt Au over 16 metres in DDH-022, indicate the presence of a high-grade shoot in this area.

Drill holes 019 and 020 are located on zone 55's final western section and indicate that mineralization is open in this direction although grades are lower.

This summer's drill program tested zone 55 along a strike length of 400 metres and to vertical depths of approximately 100 metres with 30 core holes and two RC holes.

Assays have now been reported for 21 of the 30 holes, and assays are pending for the remaining nine holes which tested the final few sections of zone 55 to the east.

The complete tables with drill hole specifications can be found on Roxgold's website.

Est. Assay true From To interval width Au Drill hole (m) (m) (m) (m) gpt VG YRM-11-DD-024 43.0 59.0 16.00 9.60 37.68 X 43.0 50.0 7.00 4.20 73.80 X 54.0 56.0 2.00 1.20 29.91 X YRM-11-DD-022(i) 45.00 61.00 16.00 9.60 62.74 X 46.00 49.00 3.00 1.80 226.89 X YRM-11-DD-023 117.0 121.0 4.00 2.40 100.58 X 119.0 121.0 2.00 1.20 177.00 X YRM-11-DD-021 31.0 39.0 8.00 4.80 53.56 32.0 34.0 2.00 1.20 178.30 YRM-10-RC-36(i) 80.0 86.0 6.00 3.90 24.62 YRM-11-DD-017 38.0 41.0 3.00 1.80 5.52 YRM-11-DD-018 72.33 80.81 8.48 5.40 47.41 X 76.0 78.0 2.00 1.20 156.90 X YRM-11-DD-008(i) 48.00 51.00 3.00 2.25 17.28 X YRM-11-DD-009(i) 68.00 80.00 12.00 7.20 17.16 X 74.00 80.00 6.00 3.60 32.34 X YRM-11-RC-55(i) 6.0 26.0 20.00 13.00 28.61 X 40.0 49.0 9.00 5.85 5.48 X YRM-11-DD-005(i) 35.50 37.50 2.00 1.50 1.99 X 48.00 50.00 2.00 1.50 39.03 X YRM-11-DD-006(i) 73.00 82.00 9.00 5.40 14.10 X 79.00 81.00 2.00 1.20 42.58 YRM-11-DD-007(i) 89.00 99.00 10.00 6.00 6.17 X 89.00 91.00 2.00 1.20 18.12 X YRM-11-DD-011(i) 50.00 53.00 3.00 2.25 2.42 YRM-11-DD-012(i) 43.00 47.00 4.00 2.40 11.56 X 45.00 47.00 2.00 1.20 22.32 78.00 83.00 5.00 3.00 1.36 87.00 99.00 12.00 7.20 5.22 YRM-11-DD-013(i) 66.00 67.00 4.00 3.00 0.66 YRM-11-DD-015(i) 54.00 58.00 4.00 3.00 5.50 YRM-11-DD-016(i) 101.00 113.00 12.00 7.20 5.43 YRM-11-DD-019 44.0 46.0 2.00 1.50 3.79 49.0 53.0 4.00 3.00 2.01 YRM-11-DD-020 108.0 120.0 12.00 7.20 2.10 (i) Previously reported Drill holes YRM-11-DD010, 014 and 025 did not report significant results from selected assays. Table includes all holes assayed to date on zone 55. Assay results for core holes (DD) are partial. Sections with indications of possible gold mineralization were shipped to Canada on a rush basis. The remainder of each hole was sampled at two-metre intervals, and assays are pending for all these samples. True widths are estimated to be between 60 per cent and 75 per cent of reported widths, and assayed intervals shown overstate actual width.

Zone 35

Zone 35, located 200 metres west of zone 55, was tested with 10 core holes. Assays are pending.

Bagassi South update

During the summer drill campaign four core holes were drilled on the Bagassi South zone approximately 2.5 kilometres to the southeast of zone 55 and zone 35.

Results from selected sampling are as follows:

  • DDH-001 did not report any significant results from 15 one-metre samples;
  • DDH-002 did not report any significant results from four one-metre samples;
  • DDH-003 reported 35.57 gpt Au from the single one-metre sample taken from 99 to 100 metres;
  • DDH-004 reported 11.25 gpt Au over two metres from the two-metre interval sampled at 44 to 46 metres.

The Bagassi South zone has reported numerous significant intercepts from several drill campaigns but continuity has been difficult to establish, and controls on gold mineralization are not well understood at present. The area warrants further drilling although zones 55 and 35 currently have priority.

TJ Ridge property shares cancelled

The company has cancelled 750,000 shares that were in escrow as a condition of its option agreement on the property. The shares have been returned to treasury.

Quality assurance/quality control

Roxgold was the operator of this drill program and maintains a quality control program involving the use of repeat assays, inserted blanks and the use of certified standards from an accredited Canadian laboratory. In order to avoid delays associated with assaying facilities in Burkina Faso, all Yaramoko assays reported in this press release were assayed at TSL Laboratories in Saskatoon, Sask., using metallic screening techniques with duplicate assays performed on every 40th sample. These samples were selected based on the presence of visual gold and/or increased silicification, and sampled at one-metre intervals. The remainder of each drill hole has been sampled on two-metre intervals with samples grading over one gram per tonne gold to be reassayed with a gravimetric finish at the independent Abilab Burkina SARL laboratories in Ouagadougou, Burkina Faso, which is part of the ALS Chemex group.

Claude Aussant, PGeol, of Taiga Consultants Ltd., Calgary, Alta., is a qualified person for Roxgold, and has reviewed and approved the contents of this release.

ROG went up .11 friday to close at 1.04 , not really a penny stock anymore , with i believe about 73 million shares out after this latest PP, and a market cap still a reasonable $74 million or so.

My guess is the gold resource at Yaramoko play is going to get very big in a hurry.

 

e was the news release with the amazing drill results at shallow depths, more to come.

Sun, Oct 9, 2011 - 6:33pm
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HMM forgot to mention

That was a new 52 week high on ROG, and i see there are very few explorers of late hitting new 52 week highs in the markets of late.

Sun, Oct 9, 2011 - 9:34pm
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All good shares. DEC seems to

All good shares. DEC seems to have had a wild ride over the last few years. Thanks for the ideas so far mouser. I'm into Paragon at the moment as well.

Sun, Oct 9, 2011 - 9:54pm (Reply to #6)
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Yes Paragon one of my biggest

Yes Paragon one of my biggest holdings as far as an explorer goes. I really think Teck takes them out here in the next year or so. I did some off the cuff estimating on the Lemarchant deposit. Appears like about 2.4 million tonnes there in the MAIN zone by itself, and interestingly the best gold/silver values were discovered in this summers drilling. I suspect over 300$ per tonne average for that resource, and would give them an insitu value of around 700 million $ there at minimum.

They also have JV on several good gold prospects, the one with CXX at Golden Promise in NFLD had a bulk sample processed which showed , based on the mill records and the total gold recovered, the average recovered gold grade was 4.47 g/t gold. The average tails grade was 1.12 g/t gold indicating a back-calculated head grade of 5.59 g/t gold with an 80% recovery.

You get all the upside from the gold plays and that NICE base metals play ( with gold silver credits) at Lemarchant for a 5 million $ value. Hard to find better values out there in my opinion. 

Mon, Oct 10, 2011 - 1:00pm
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Thx mouser

Looking forward to an interesting, and profitable thread!

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Mon, Oct 10, 2011 - 2:56pm
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Nice to see you had a look Eric

Lots of bargains out there right now, i hope some more stock suggestions appear here. I dont want it to become mousers picks. The best ideas i come across are usually from others who contribute some news or ideas. Nice move on gold and silver and most commodities today, as the US $ heads down hard. We may see some buying in the junior explorer sector this week. I firmly believe we will see a lot buyout and merger action here, with many miners sitting on mounds of cash from record metal prices, and looking over the beatdown miners who have great resources and results.

Mon, Oct 10, 2011 - 3:06pm
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good

Well done,Mouser.

Mon, Oct 10, 2011 - 3:22pm (Reply to #9)
Eric Original
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mouser wrote: We may see some

mouser wrote:

We may see some buying in the junior explorer sector this week. I firmly believe we will see a lot buyout and merger action here, with many miners sitting on mounds of cash from record metal prices, and looking over the beatdown miners who have great resources and results.

I wholeheartedly agree. Today is a bit weird, with Canada not trading. We'll know more tomorrow.

Producers are swimming in cash flow. One of the places that money will go is into the juniors, to get their hooks into the next round of projects.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Mon, Oct 10, 2011 - 7:26pm (Reply to #9)
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!!Best buy among Juniors!!

American Bonanza is still the best deal in the market. No hedges, fully funded, starting up the mill in November, will be in full production in Q1 of 2012, $16 million cash, fully permitted, open pit in all directions, avg. of 10 gpt deposit, trading at $0.49 a share, in Nevada with great infrastructure, $400-$500 an ounce cost, will be producing around 40k oz in 2012. Anything under $0.50 is a steal!!

Stupid is, is what stupid does...
Mon, Oct 10, 2011 - 8:33pm (Reply to #12)
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I must admit i owned BZA at one point

Believe it or not , i owned BZA about 5 years ago. I must confess that i have not kept up to speed on that play. I know they were trying to advance the Copperstone project in Arizona i believe. I sold off my BZA to pursue other juniors and gold producers with bigger resources and closer to production. If i recall correctly there was not a big resource there proven up.

What are the latest numbers and what kind of production is planned and what are the estimated costs?

Mon, Oct 10, 2011 - 10:34pm (Reply to #12)
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You could probably lump BZA

You could probably lump BZA in with a basket of small producers and it would be better than some but not better than all. Five I'm keeping an eye on in the 25k t0 50k oz. prod. are

Fire River fau mc 36m

Gryphon ggn mc 52m

Golden B gbn mc 88m

Am. Bon. bza mc 92m

Scorpio sgn mc 93m

As in the Yukon its likely a good idea to have a basket of small producers and gradually cull out the laggards. I found this interesting from the Fau website:


This payment is a provisional advance for the first 48 bags comprising 42.6 dmt (dry metric tonnes) of gold-rich copper concentrate. The bags are palletized and flown from the Nixon Fork Mine aboard a Hercules L382G airplane. Shipping lots of 24 bags are assembled in Anchorage at Lynden Air Cargo's facility and barged in secured 40 ft containers to Seattle for ocean transport to the PASAR smelter in Isabel, Philippines.

Not sure what that would work out cost wise but it ain't gonna be cheap!

Mon, Oct 10, 2011 - 11:47pm
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FAU's Nixon Fork Mine

I do believe FAU's Nixon Fork mine is in Alaska, and likely no available smelters closer for the concentrate. Shipping by air is fast but generally not quite cost efficient . Interesting, i have to wonder what kind of a deal PASAR made them.

Tue, Oct 11, 2011 - 12:00am (Reply to #15)
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I should rephrase that

There are plenty of smelters closer than Pasar , but not sure how many would be readily available and would pay them a % upfront for a small tonnage ore load.

Tue, Oct 11, 2011 - 12:36am
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Maybe have a look at Silvermex @ .49

Altho they are trading at pennies, there are over 237 million shares oS, so hardly a penny play, with their market cap nearly 118 million. BUT if you were to compare resources in ground for SLX ( a producer already) , to those 5 listed above, you would likely find that they have many multiples the gold equiv in ground of any and all of those.

SLX has over 1 million ozs gold as a by product to the huge 160 million OZ silver resource they have at LA Guitara, which is not their only project, but is the flagship.

I am afraid i have a hard time getting excited about producer stocks that dont have at minimum a million ozs gold equiv, in meas and ind resource . I like to see substantial proven reserves as well, if we are talking producers or up and coming producers.

Exploration stocks however are a different animal, and can garner huge valuations just on great drill results. ATC, one example, of that. Years from mining , but the gold in ground and bluesky exploration potential have them valued higher than producers with big proven reserves and resources such as SLX.

ATC hit 10 $ at their peak this summer, nearly a billion $ valuation..... now that was some frothy explorer value right there.

Tue, Oct 11, 2011 - 1:25am
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I see GGN has a decent sized resource

That is one i had not looked at for quite some time. That Borealis play has been around for a while, and was part of another company i held shares in at the time, Golden Phoenix i believe, GPXM. I thought somehow SGX was involved in that project as well , but i see now they backed out of the JV agreement.

Nice sized resource at Borealis ( decent grades too) this one, for sure, warrants a second look.

Tue, Oct 11, 2011 - 5:47am
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Great thread

A great thread, congrats.

I'm looking into two dirt-cheap explorer-developer plays (actually MGN is already producing) ... Ore values seem decent (Sept 23 data) and I'm wondering what's wrong about these companies? Poor management? Low on cash and impending dilution ?

Company Name Mrkt Cap/Oz AuEq ($) Ore Value ($/ton) Market Cap (M$) TSX Price (C$)
Soho Resources Corp. 7.82 202.69 12 0.08
Mines Management Inc. 0.11 120.98 47 1.53
Gwyde
Tue, Oct 11, 2011 - 8:19am
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Smallish Producers

I'm on board on Golden Band, Gryphon, and Silvermex.

Also NWM Mining. I know they have that lawsuit about their SART plant, but now with production ramping up, that $9m dispute doesn't seem like a huge deal one way or the other.

I've also been holding Impact Silver up and down the rollercoaster pretty much all year long. I just like the company.

One of these days, maybe Avino will get up and running too.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Tue, Oct 11, 2011 - 10:16am (Reply to #18)
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Golden Phoenix is involved

Golden Phoenix is involved with Scorpio Gold in the Mineral Ridge property in Nevada. Thats the one going into production and Scorpio has an option to buy it all.

randomness