TORONTO, Aug. 10, 2017 (GLOBE NEWSWIRE) – McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”) is pleased to announce that it has reached an agreement with Primero Mining Corp. to purchase its Black Fox Complex and associated assets and liabilities located in the world-famous gold mining camp of Timmins, Canada. The agreed purchase price is $35 million, subject to closing adjustments. Definitive documentation is expected to be completed before the end of this month.
“Buying the Black Fox Complex provides fantastic synergies with our recently acquired Timmins deposits. Our objective is to build a long-term production platform with a robust pipeline of production, development and exploration assets, all feeding into a single processing facility. This acquisition will add immediately to our gold production, but is just the beginning of a new chapter of growth for McEwen Mining,” said Rob McEwen, Chairman and Chief Owner. “Black Fox comes with a talented operating team, an underground mine producing 50-60,000 ounces of gold in 2017(1), a processing facility with excess capacity, two future development opportunities, and excellent exploration potential. Combined with our existing portfolio of Timmins deposits, I believe this is a
Disclosure - I view PAAS quite favorably and have a position here (and in several other silver streamers/miners):
Pan American Silver 2Q Earnings Rise; Cost Guidance Lowered
… “Silver production is on pace to achieve our annual targeted range, while costs are tracking well below,” said Michael Steinmann, president and chief executive officer. “We have now reduced our estimate for cash costs and AISCSOS in 2017 by 14% and 10%, respectively, from the mid-point of our original guidance.”
First-half silver production of 12.5 million ounces was on track to achieve the company’s targeted range of 24.5 million to 26 million ounces for 2017. Gold production was 75,400 ounces in the first half of the year, and given higher anticipated production for the remainder of the year at Dolores, management reaffirmed annual gold output guidance of 155,000 to 165,000 ounces.
The company said it now projects cash costs per silver ounce of $5.50 to $6.50 an ounce, compared to $6.45 to $7.45 previously. All-in sustaining costs per silver ounce sold are now estimated at $10.50 to $11.50, down from $11.50 to $12.90 previously.
“The longer-term outlook for operations is also encouraging with excellent progress on our mine expansions in Mexico and our two new projects in Argentina,” said Steinmann. “Throughput at La Colorada achieved design rates of 1,800 tonnes per day in June, six months ahead of plan. At Dolores, commissioning of the new pulp agglomeration plant has begun and the underground mine has been delivering low-grade development muck to the heap. As we saw during Q2 with La Colorada, these expansions improve our operating margins through growth in low-cost production.”
The Bitcoin nonsense is still going on, the only cryptocurrency worth buying, are the ones backed by something, like gold, if something happens, you still have your gold, with bitcoin, if something happens, you have nothing, you loose it all.
You should really read up on the technology behind a lot of these coins/tokens. Yes, some are hot garbage, but this is a new disruptive technology that isn’t going away anytime soon. There’s a reason that the top 20 banks in the world are investigating how to utilize blockchain technology. And good luck proving that your gold coin is actually backed by the physical gold that it claims.
“The good news for those wanting to buy lower, it’s looking like you might get much better prices in the future, although this close was close enough to that upper trend line that it could turn out to be a fake out. Watch for a bounce tomorrow that puts the price back above that trend line after the close, otherwise the trend lower is likely to continue, imo.”[/quote]
Well, the weekly candle ended up closing back above the trend line, so now we get to see if MUX bounces from here or re-tests to see if the trend line offers support. The weekly chart seems to be the best way to watch this so I’ll continue working with this chart as long as I stick around.
Barkerville drills 30.85 m of 18.84 g/t Au at Cariboo
occurs 20 metres vertically below previously reported drill hole IM-17-078 which intersected 11.42 g/t Au over 28.55 metres at a vertical depth of 450 metres below surface.
Approximately 19 metres downhole from the above-stated intersection a second zone grading 7.88 g/t Au over 7.70 metres was encountered followed by another high-tenor zone 55 metres more downhole in drill hole IM-17-124. This third veining corridor was intersected grading 12.76 g/t Au over 25.40 metres
Here’s one HR mentioned quite some time ago due to McEwen’s involvement. It had a nice move today. (full disclosure - I have a position). In general, many of the Canadian miners had nice moves today:
Inventus Mining Announces Non-brokered Private Placement
TORONTO, ONTARIO (August 16, 2017) - Inventus Mining Corp. (TSX VENTURE: IVS) (“Inventus” or the “Company”) today announces a non-brokered private placement financing comprising the sale of up to 6,666,667 units (“Units”), to be sold at $0.15 per Unit for gross proceeds of up $1,000,000 (the “Offering”). Evanachan Limited, a company owned and controlled by Robert McEwen has agreed to acquire 3,333,333 Units for gross proceeds of approximately $500,000. Each Unit will consist of one common share (“Common Share”) and one common share purchase warrant (“Warrant”). Each common share purchase Warrant will entitle the holder to acquire one Common Share for $0.25 for a period of two years after the closing of the Offering. All securities issued in conjunction with the Offering are subject to a hold period of four months and one day after closing.
The Offering of the Units is subject to the receipt of all required corporate and regulatory approvals including the approval of the TSX Venture Exchange (“TSXV”). Related Party Transaction
As a result of holding 10% or more of the issued and outstanding common shares of the Company, Robert McEwen is an “insider” of the Company. The acquisition of 3,333,333 Units by Evanachan Limited in connection with the Offering will be considered a “related party transaction” pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61-101”) requiring the Company, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the “related party transaction”. The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available because no securities of the Company are listed on specified markets, including the TSX, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or any stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group plc. The Company is also relying on the exemption from minority shareholder approval requirements set out in MI 61-101 as the fair market value of the participation in the Offering by Evanachan Limited does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. Early Warning Report
Robert McEwen had ownership or direction and control over an aggregate of 18,502,500 common shares of the Company prior to Offering, representing approximately 18.4% of the issued and outstanding common shares of the Company. Pursuant to the Offering, Evanachan Limited has acquired 3,333,333 Units. As a result of the Offering, Robert McEwen is now a control person of the Company and has ownership or direction or control over 21,835,833 common shares representing approximately 20.4% of the issued and outstanding common shares of the Company (assuming completion of the entire Offering). Robert McEwen has acquired the Units for investment purposes, and has no current intention to increase his beneficial ownership of, or control or direction over, securities of the Company. These investments will be reviewed on a continuing basis and holdings may be increased or decreased in the future.
As a result of the Offering, the number of common shares Robert McEwen beneficially owns, or exercises control or direction over of the Company has increased by more than 2%. In satisfaction of the requirements of National Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, an Early Warning Report respecting the acquisition of Units by Evanachan Limited will be filed under the Company’s SEDAR Profile at www.sedar.com. About Inventus Mining Corp.
Inventus is a mineral exploration company focused on the world-class mining district of Sudbury, Ontario. Our principal asset is a 100% interest in the Pardo Paleoplacer Gold Project located 65 km northeast of Sudbury. Pardo is the first important paleoplacer gold discovery found in North America. Inventus has 100,304,403 common shares outstanding (109,173,569 shares on a fully diluted basis). Endurance Gold Corp. owns 25.4% of the issued and outstanding shares, Evanachan Limited, a company owned and controlled by Robert McEwen owns 18.4%, Eric Sprott owns 13.6%, Osisko Gold Royalties Ltd. owns 6%, and the former Chairman and CEO Wayne Whymark owns 6.4%. https://static1.squarespace.com/static/56d987d21bbee076a4c0be7f/t/5994a8523e00be933b5005ca/1502914643018/Aug+16.pdf
Nice to McEwen adding more at a cost equivalent to the current share price and the warrants priced out to .25.
Inventus is sitting on the only paleo-placer deposit in Canada and that is why it has attracted the likes of McEwen, Osisko and Sprott. Just look up Witwatersrand and you’ll know why this is kind of a big deal. Inventus is still very early stage, but past drilling has been sporadically encouraging, actually more than encouraging as the mineralization has occurred largely at surface. This summer they are planning a bulk sample program which will give a much better idea of the mineralization potential of this kind of deposit.
Another company that is sitting on a large paleo-placer deposit in Australia is Novo Resources (V.NVO). Last month they announced very promising results from bulk sampling and they’ve gone from .60 to $5.00 in the last 5 or 6 weeks. That is the kind of potential I’m looking for in Inventus.
Rick, I’m sure you’ve seen the article released in April, but for anyone who is interested I’ll post an excerpt and link below …
The preliminary bulk sampling program looked very promising for gravimetric concentration of the ore. Here’s part of the release from earlier in the year:
Inventus Provides Report on Positive Technical Developments: Ore Sorting and Bulk Sampling
… Total Sample 110.703kg 100 – 2.197 100 19.9 (gpt)
These results are a first-pass evaluation of gravity concentration; we believe the process can be optimized to improve performance and possibly paired with other processing methods. Nevertheless, the results are positive and support the concept of processing bulk samples from Pardo by gravity. Milling and gravity concentration is the lowest cost option being considered for analysis of bulk samples. Inventus plans to begin extracting bulk samples from Pardo in the coming months. https://www.geologyforinvestors.com/inventus-provides-report-on-positive-technical-developments-ore-sorting-and-bulk-sampling/
It’s worth reading the entire article as it describes several methods of ore concentration. Other methods investigated used advanced XRT, XRF and EM. It looked to me as though the gravimetric would be the method of choice, though:
Overall, 68.8% of the gold content was concentrated in 2.7% of the original mass.
For off site processing this would really save on transportation costs to a refinery. Wouldn’t some such method of ore concentration be of benefit in exploiting the Larissa adit (or Fortuna veins) and getting the concentrate to ENAMI?
Another stock I mentioned and picked up a starter position back in February and July looks more promising all the time. I initially missed this additional article on a Nevada property it picked up this summer. May be much more than a story stock, IMO.
SEABRIDGE GOLD COMPLETES ACQUISITION OF SNOWSTORM PROJECT
…The Snowstorm property consists of 700 mining claims and 5,800 acres of fee lands carefully assembled in a private company over a 15 year period and explored over the past 10 years. Seabridge has staked an additional 260 claims totaling 5,200 acres that are contiguous to the claims purchased from PFR. The Snowstorm acquisition also includes an extensive package of data generated by previous operators. Although potential targets are hidden under Tertiary cover, the existing data supports the project’s outstanding exploration potential. Geological and geochemical evaluations of Snowstorm have documented hydrothermal alteration zones consistent with large Northern Nevada deposit types. Geophysical surveys have confirmed the structural settings which host large Northern Nevada deposit types. Limited drilling has demonstrated that some of the target areas are at a depth amenable to surface exploration and resource delineation.
It made a nice move today which caught my attention. I had not added to my “starter position” but intend to accumulate a significant position. Note that it is heavily shorted so the move today may not be that significant to the longer term success I see for this particular company. Also, in the PR, note the significance of Oct. 7 which marks the expiration of the hold period for newly issued stock regarding the acquisition of the Snowstorm project. It appears to be a very tradable stock if one maintains a core position to trade around. It has a lot of room to move in either direction so I intend to use caution and keep a closer eye on this one.
The price of gold may be influenced by many factors.
I had forgotten India’s Prime minister abolished the 500 and 1,000 rupee notes last November 8, which removed approximately 80% of India’s currency in circulation. The official reason was to counter the flow of counterfeit money, fight corruption, terrorism, and the avoidance of paying taxes. There may be another not so apparent reason.
I found today’s Bloomberg article titled The Battle for India’s $45 Billion Gold Industry Has Begun interesting and worth reading.
MCEWEN MINING AND PRIMERO SIGN DEFINITIVE AGREEMENT TORONTO, Aug 29, 2017 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen”) is pleased to announce that it has signed the binding definitive agreement with Primero Mining Corp. for the purchase of its Black Fox Complex in the world-famous gold mining region of Timmins, Canada. The agreed purchase price is $35 million, subject to closing adjustments. Closing of the transaction is anticipated in late-September.
Key benefits of this transaction to McEwen Mining shareowners: Production and Resource Growth Strategically increases our gold production by 50,000 ounces in 2018 and significantly increases our gold resources in the Timmins region. Furthermore, excess mill and tailings capacity provide the capability to increase future production. Management and Operational Readiness
Establishes a base of operations with an experienced and skilled site management and workforce who will operate and advance development of these assets and the Timmins properties recently acquired from Lexam VG Gold. Combined these properties include seven development and exploration stage projects. Exploration Potential
The property is located along a prime 4.5 mile (7 km) section of the Destor-Porcupine Fault, which is host to many world-class gold deposits. It is already well-endowed with the Black Fox Mine, and the Grey Fox and Froome deposits; and has geologic traits that make it prospective to grow the existing deposits and for additional discoveries. About McEwen Mining (www.mcewenmining.com)
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining’s principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada and the Los Azules copper project in Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company. http://www.mcewenmining.com/Media-Events/News-Releases/News-Releases-Details/2017/McEwen-Mining-and-Primero-Sign-Definitive-Agreement/default.aspx
note : Primero paid C$220M for Black Fox two and a half years ago. Primero invested heavily in exploration and development, but pinched for cash flow, let go of this asset for 20% of it’s purchase price to pay down debt due in November of this year.
First is the updated weekly interval highlighting the gap and trend line support. So far the breaks of those areas have shown to be fake outs, but MUX is not out of the weeds yet.
The second chart is the same as above, with the addition of what I call a “range of resistance”. In this case, if you look at the highlighted area on the chart, you can see that MUX needs to trade out of this range, get back above 2.76 or so and find support in order to build some confidence that the price drop is over. For the time being the stock could be traded in this range for anyone interested in that kind of thing.
The last chart is a daily interval showing the resistance range in more detail. Here you can see that there is some support within this range at 2.50 where the stock is currently trading, at least at the time I took the snapshot.
FWIW, I don’t own MUX but if I had taken a position during the last drop I would use the swing low of 2.15, or a couple cents below it, as a mental stop. If it does drop below that it could fall quite a bit before finding new support, although I have not studied the different time frames very much so do your own DD to be certain.
