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Hathor Exploration (OTC:HTHXF)
Terra Ventures (TSX-V: TAS; Pink Sheets: TASFF)
Hathor Upgrades Mineral Resource Estimate for Roughrider Uranium Deposit to 28 M lbs U3O8 – November 30, 2010
This more than doubles the previous resource estimate for the Roughrider deposit delivered in November 2009. As an extremely high grade, potentially open pittable resource with what looks to be very high recoveries, low arsenic values, and significant expansion potential from Roughrider East — initial resource estimate expected in Q1 2011 — it’s surprising that Hathor and Terra (10% partner carried through feasibility) aren’t moving up more strongly on the the news. [Zurbo]
Tahoe Resources (TSX: THO; Pink Sheets: THOEF)
Updated NI 43-101 Resource and Positive Preliminary Economic Assessment for Escobal Project – November 29, 2010
Tahoe has moved up over 30% since announcing the preliminary economic assessment on its Escobal project in Guatemala, and for good reason. At a total capital cost of under $500 million the project boasts a pre-tax net present value over over $2 billion at current metal prices. Based on this information our valuation model spits out a base case valuation target of about C$14.50 per share, not far from the current price. However, and most importantly, we’re talking about Guatemala. This is a country with limited mining activity, where a major dispute is ongoing at Goldcorp’s Marlin gold mine — the country’s only major gold mining operation. Remember, it was Goldcorp that recently sold the Escobal project to Tahoe Resources.
One of our favorite commentators on the mining sector, especially when it comes to South America, is Otto of IKN. He recently voiced concern about investing in mining companies with significant exposure to Guatemala on his blog. That’s not to say Tahoe can’t go significantly higher, but we don’t view the risk/reward trade-off as favorable at the current price level. [Zurbo]
Strange trading the Friday before this news was released:
Perhaps the share price didn’t recover at all on Monday because the market didn’t like the fact that “the representatives of the petitioners for the Public Hearing, who are opposed to the project, elected not to participate [in the public hearing]“. Especially considering the recent $1+ billion bid for Ventana Gold, it will continue to be of great interest to follow the development of Greystar’s neighboring Angostura project. [Zurbo]
International Tower Hill Mines (NYSEMKT:THM)
International Tower Hill Mines Intersects 112 metres of 2.63 g/t gold at the Livengood Gold Project, Alaska – November 29, 2010
Although infill, this is proximal to the core and found at depth, so there could be a major zone of good tonnage deep in this deposit that represents exploration upside. These are not oxides, mind you, but depending on what is going on down there, we could have a new scenario perhaps to include potential for a bulk underground mine. [Silverax]
Nature’s Call (OTCBB: NATC)
Nature’s Call Options Large Property Showing High Grade Silver and Gold Samples in Proven Mexican Mining Region – December 1, 2010
OMG! LOL! I’m not going to invoke childish innuendos about the company’s name — especially in relation to the potential value of their optioned property — but I will say that I start to get really worried about the market for gold stocks when this type of buffoonery shows up in earnest. Okay, just one innuendo — what do you think about my humble suggestion of “POS” as the new stock symbol? [Silverax]
Columbus Gold (TSX-V: CGT; Pink Sheets: CBGDF)
Columbus Gold to Acquire 2 Million Oz. Gold Deposit – December 3, 2010
Interesting transaction and interesting project that may deserve a closer look. Initial impression is that the mineralized zone dipping into the base of a hill will not make open pit mining easy but I’ve only spent a few minutes scanning over some preliminary data so there is more work to be done. The stock is still cheap, and was even cheaper before the ~100% runup this week. [Silverax]
It looks like we will have the first large-scale primary moly mine in several decades at Spinifex Ridge in Western Australia. Final loan terms will tell the tale of value but it looks decent on the back of a napkin. The current excitement may wear off a bit as construction tends to bore the market but at some point we intend to look closer at this company along with General Moly (AMEX: GMO) and Thompson Creek (NYSE: TC; TSX: TCM), which together we would consider the 3 horsemen of Moly Mania Round 2, should it appear in the next few years (which it very well could due simply to metal fundamentals). [Silverax]
Seafield Resources (TSX-V: SFF; Pink Sheets: SRLTF)
Seafield Drills 449 Metres Grading 1.29 g/t Gold at Miraflores, Quinchia Gold Project, Colombia – December 2, 2010
This was a sub-1 million ounce gold breccia pipe before this hole and it likely won’t get much bigger than a 1 million ounce gold breccia pipe after this single hole, despite protestations by James West or otherwise. For one, the company was nice enough to note they aimed the hole through the smack dab center of the pipe whereas two other holes drilled 100 meters away on the margins of the pipe returned marginal results that are consistent with historical assays for the main portion of this pipe potentially suitable for open pit mining. Second, Brent Cook’s grade smearing tool shows the residual grade of the headline intercept after removing the two higher grade sections is 0.635 g/t. Third, the higher grades appear to be associated with a N-S bonanza zone of the pipe that is the subject of an ongoing small-scale mining operation being conducted by the project vendor. This zone was also intersected in historical drilling and suggests that the real meaningful holes from the current program will probably be #4-7 on strike to the northwest, but those results will come with a big caveat because getting to that area with an open pit would involve removing hundreds of meters of mountain located above. Still, if holes #4-7 should hit big, the rise seen in the share price on Friday would be justified, otherwise it will have been presumptive. Yes, that means the market over-reacted to these drill results. In fact, I’d go as far as saying that anybody who compares Seafield to Ventana Gold (TSX: VEN; Pink Sheets: VENGF) at this point hasn’t even bothered to look at the drill map. [Silverax]
Disclaimer: We own shares in several of the companies mentioned in this analysis (Metal Augmentor subscribers know which ones), but no compensation has been received from any of the companies mentioned. This is not investment advice; should you seek investment advice we recommend you discuss the company with a licensed investment advisor or broker.