|Alexco aka AXU released the rest of the drill results from the Bermingham Northeast Deeps zone, part of its Keno Hill Ag/Pb/Zn mines and mill in the Yukon. The drill programme has defined what looks like a new mining area, with the veins being defined along a 500M zone at least 100M in depth just 150M below the existing Bermingham Deeps reserve. We'll get a better idea when they release a new Reserve Report for Bermingham before the end of 2021.|
AXU also reminded us there are other enticing exploration prospects around Bermingham. As well, we got an operations update, assuring us that production is expected to reach the target of 400 tpd in Q1.
Some bad news regarding Minera IRL aka MIRL; at the AGM the crooks in charge were voted back in, albeit with votes against ranging between 29% and 36%. Unfortunately that will likely not be enough to get them to mend their larcenous ways.
For years, Bear Creek Mining aka BCM has been trying and failing to build the Corani silver mine in Peru. They are finally changing tack by announcing they are purchasing the Mercedes Au/Ag mine in Mexico from EQX, with the stated goal of using the cash flow to build that silver mine. However, the Mercedes mine is hard to run profitably and for that reason has been a hot potato. A few years ago, Yamana Gold, who had been losing money on it, sold it to Premier Gold, who continued to have problems before vending it to EQX as part of the set of transactions that created I-80 Gold. We'll see if BCM can turn it into a money spinner, but even if they do, the locals in Peru remain firmly opposed to the construction of Corani.
At this point BCM is high reward, but IMO even higher risk. No thanks
Much of the cash needed by BCM to purchase Mercedes will be provided by a gold stream purchased by Sandstrom Gold Royalties aka SSL. Now we know why SSL announced yesterday they are paying their first dividend, as this acquisition will be immediately cash-flowing. SSL is paying $60M in return for the stream, and as a result of the purchase increased 2022 guidance to 65-70k oz AuEq They will be financing the purchase with a combination of cash on hand and their revolving credit facility.
SSL also announced that this year they had purchased on the open market over 44M shares of Entrée Resources aka ETG, who operate in Mongolia. Together with previously held shares and warrants, they now control about one quarter of ETG's shares, which they say are being held for investment purposes.
Will gold stocks make a double bottom or continue downward? We shall see...