Tales from Beaver Creek: A Day Late, a Buck Short, I’m Writing the Report…

Featured Image: Drill pad on MTB's American Creek prospect... Drilling began this week!

Morning all,
A few fellow ‘millennials’ will complete the title lyric in your heads, it’ll be circling mine for the rest of the day! Yesterday I had to shift my meetings and couldn’t make the show, buried in editing work and regular routines biting at my heels…

I’m going to start with a few news updates:
Vangold Mining’s NR (PDF Download) seems to have slid under the radar but is a big one in terms of company development, it changes the state of play massively for VGLD fans. Up until now, VGLD’s story has been focussed on reprocessing their graded tailings for fast cashflow, from 1000t bulk sampling to clearing down to level 7 of their historic mine… This week the team in Guanajuato channel sampled one of the many veins exposed in underground workings for assay.

This combination of cashflow from historic rock and active hard-rock exploration is quite rare and makes me a happy shareholder. It’s important in long-term planning to know if VGLD will simply be a tailings story, make a little money and move on, OR if they’ll discover the mine still has reliable grades down below and opportunity to re-open for production. I’m in for the long-term, which for most companies would be 5-10 years, VGLD seem to be going so fast that we might get there with a mine expansion proposals and tailings production by the end of 2020, if these results come back strong! It’s a very rare story and definitely worth your time to read up on.

Mountain Boy Minerals launched their drill program! It has been a tough summer in Stewart with a notable lack of ‘summer’, fog has hampered helicopters and stalled a lot of other Golden Triangle programs, BUT MTB have a team of exceptional mountaineers who’ve been out rope line sampling and running IP geophysical surveys and have hit their data targets. New airborne LiDar surveys are expected to reveal regional structural trends and traces of historical workings and IP lines are known to be effective in this area at identifying metallic bodies quickly (Ascot are doing the same things next door as they move closer towards opening their Premier mine).

Drilling started on Wednesday at the American Creek project. I really like this NR. While the endgame of this program is silver and gold, the focus now on technical understanding of the large scale geological setting and environment. Something so many companies overlook. If you solely target high-grade hits, you get splashy news releases and ride yourself up a little, but you need to drill twice as much later to actually build out a compliant resource. Novel high-grade numbers are not necessarily any use to a company when developing. If you let a real geologist (like Lucia Theny) guide the program you end up with a logical combination of metal hits in mineralised bodies and start building out cross-sections and technical models from the beginning. This technical understanding should/could lead MTB to a big feeder zone at American Creek, not just the veins found across their historical workings, but a behemoth beneath them. Good luck MTB!

Back to Beaver Creek…!
I didn’t get to any of the talks or presentation, only a few 1-on-1 meetings, so here’s a few short words on those, I think Trevor Hall has been covering the talks so, definitely have a listen to the Mining Stock Daily podcast this week for a more rounded event summary.

GoGold
A good meeting, I’m surprised I hadn’t heard of these guys before with a $380m market cap and production in Mexico and plenty of historic buying and selling of successful projects. The mid-level projects tend to slip under my radar while searching for tiny micro-cap explorers, such has been true this week with Calibre and Gogold! 20% insider held and so much drilling that my note taking on locations and plans is just a full page of unintelligible scribbles, I think there’s some place names and grades in there, but the key point is clearly, there’s more than an A5 notebook page worth of targets and activity… 95 new targets are being prospected now for more drilling at their Los Ricos project too.

It’s too big for me at the moment, I believe there’s potential for growth and it’ll probably perform well… But I’m searching for small new stories now, I already hold enough FQM, Argonaut, Anaconda, Matsa and Boliden to cover off producers in my pile.
Good project, Logical investment for a mid-long-term hold if you can find a low price, just not for me today.

Warrior Gold
As above, I’m searching for small new stories now, Warrior may be the smallest company at the Beaver Creek show and were absolute pleasure to speak to. You know those crisp-blue-suited Vancouver/London sales teams who reel of loads of financial statistics with a smarmy over-confident grin and clearly only care about getting your money, not the rocks…?

Warrior were not one of these. I spoke to Daniéle P.Geo and CEO and I was sold on this from the first page. There are more geologists on the board than not, as I mentioned with MTB’s news above, letting geologists lead geological programs is an absolute necessity for me with any company I will follow. The back story of their licence area includes amalgamating an area the local ‘old boys club’ claimed was barren… but just looking at a satellite image of their licence alongside Kirkland Lake there’s an obvious gouge in the landscape along a major fault and a valley/structural trend at 60 degrees to it… So, you have a major gold project, a clear structural zone and splay along that same structure and… nobody has really looked at it before. If I’d spotted it, I would have put that licence down. It’s prime ground.

Modest drilling ongoing and again, a focus on technical geo work… this is how you find major developable deposits, not just flashy grades. Warrior have a small program now, $8m market cap and only fully active in the field as a team since 2018. I’ll be making an effort to pick some up and following it closely.

Euro-Sun
Self-serving meeting, I already own a little Euro-Sun and have been gently topping up around €0.28 (personally aiming for €0.40-0.45), it’s another sensible development story and, without too much research, it just fell into place for me. At the start of the meeting Brad and Geoffrey updated me on FQMs news, they are clearly switched on in the markets, always a good sign.

Why Euro-Sun make sense: I’ve worked in Romania, understand the systems and Euro Sun have done everything right there (everything Gabriel screwed up; notably, they’re not proposing an open-pit that’ll tear up UNESCO heritage sites and the longest inhabited settlement in Europe…). Large deposit, significant infrastructure, and access to willing labour in an area desperate for development, jobs and investment. Also, their AISC is projected at $752… I’ve heard people quoting AISCs at $900-1100 since the gold price ran up and it’s ridiculous. Large and varied institutional shareholding adds some financial security and saves a lot of DD… One must assume, with a pinch of salt, they’re doing theirs responsibly!

I also spoke to Adventus. I have already covered half of their story when reviewing Salazar on Wednesday. I surmise its logical to pick up Salazar and a little Adventus if you can find a good price and twin them up. One of these companies will make a fortune in Ecuador one way or another and each has benefits there and long-term prospects. I’d already put in an order for Salazar before speaking to Adventus so, really just a luck-of-the-draw in the randomised meeting schedule there!

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Overall, I’ve enjoyed the Blue Jeans format for Beaver Creek. It’s not ideal being online at all and I really hope to be toasting a few beers with you all soon… But it was definitely worth taking the time to join and meet people, I’ve learned a little and added some companies. Thanks for Jessica, Karen and the team for the invite and, I’ll hopefully catch up with some new names at the Precious Metals Summit European show coming up soon.

Thanks to everybody who has replied, commented, critiqued and flat out insulted my write-ups this week! The biggest flash point, like a grenade into a room full of grenades have been Novo in Australia who have really put the cat among the pigeons. I have received stark warnings, plain old anonymous abuse for not being 100% glowing about them, Insults for mentioning the environmental impact of strip mining (I quote‘Spotlight a leftis china comunist invasion you fuck the white economy I’m coming for you loser…’) and some juicy gossip about why it’s so divisive.

I highly suggest you all take to twitter for some fun Novo related discussion, where it has been quite animated!

Have a wonderful day everybody,
Liam
Spotlight Mining