The Metal Augmentor's weekly Mining News Review is updated daily at www.metalaugmentor.com/eforum.
You are also welcome to sign up to our free mailing list at www.metalaugmentor.com and you'll be sent updates whenever we add new content to our editorial forum.
Hathor Exploration (TSX-V: HAT)
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 withwhat looks to be very high recoveries, low arsenic values, andsignificant expansion potential from Roughrider East — initial resourceestimate expected in Q1 2011 — it’s surprising that Hathor and Terra(10% partner carried through feasibility) aren’t moving up more stronglyon 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
Tahoehas moved up over 30% since announcing the preliminary economicassessment on its Escobal project in Guatemala, and for good reason. Ata total capital cost of under $500 million the project boasts apre-tax net present value over over $2 billion at current metal prices.Based on this information our valuation model spits out a base casevaluation target of about C$14.50 per share, not far from the currentprice. However, and most importantly, we’re talking about Guatemala.This is a country with limited mining activity, where a major disputeis ongoing at Goldcorp’s Marlin gold mine — the country’s only majorgold mining operation. Remember, it was Goldcorp that recently sold theEscobal 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 concernabout investing in mining companies with significant exposure toGuatemala on his blog. That’s not to say Tahoe can’t go significantlyhigher, but we don’t view the risk/reward trade-off as favorable at thecurrent price level. [Zurbo]
Greystar Resources (TSX: GSL)
Completion of Angostura Project Public Hearing – November 29, 2010
Strange trading the Friday before this news was released:
Perhapsthe share price didn’t recover at all on Monday because the marketdidn’t like the fact that “the representatives of the petitioners forthe Public Hearing, who are opposed to the project, elected not toparticipate [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 (AMEX: THM; TSX: ITH)
International Tower Hill Mines Intersects 112 metres of 2.63 g/t gold at the Livengood Gold Project, Alaska – November 29, 2010
Althoughinfill, this is proximal to the core and found at depth, so therecould be a major zone of good tonnage deep in this deposit thatrepresents exploration upside. These are not oxides, mind you, butdepending on what is going on down there, we could have a new scenarioperhaps 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’sname — especially in relation to the potential value of their optionedproperty — but I will say that I start to get really worried about themarket for gold stocks when this type of buffoonery shows up inearnest. Okay, just one innuendo — what do you think about my humblesuggestion 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
Interestingtransaction and interesting project that may deserve a closer look.Initial impression is that the mineralized zone dipping into the baseof a hill will not make open pit mining easy but I’ve only spent a fewminutes scanning over some preliminary data so there is more work to bedone. The stock is still cheap, and was even cheaper before the ~100%runup this week. [Silverax]
Moly Mines (TSX-V: MOL)
NDRC Loan Approval – December 3, 2010
Itlooks like we will have the first large-scale primary moly mine inseveral decades at Spinifex Ridge in Western Australia. Final loanterms will tell the tale of value but it looks decent on the back of anapkin. The current excitement may wear off a bit as construction tendsto bore the market but at some point we intend to look closer at thiscompany along with General Moly (AMEX/TSX: GMO)and Thompson Creek (NYSE: TC; TSX: TCM), which together we wouldconsider the 3 horsemen of Moly Mania Round 2, should it appear in thenext few years (which it very well could due simply to metalfundamentals). [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
Thiswas a sub-1 million ounce gold breccia pipe before this hole and itlikely won’t get much bigger than a 1 million ounce gold breccia pipeafter this single hole, despite protestations by James Westor otherwise. For one, the company was nice enough to note they aimedthe hole through the smack dab center of the pipe whereas two otherholes drilled 100 meters away on the margins of the pipe returnedmarginal results that are consistent with historical assays for the mainportion of this pipe potentially suitable for open pit mining. Second,Brent Cook’s grade smearing tool shows the residual grade of theheadline 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 bonanzazone of the pipe that is the subject of an ongoing small-scale miningoperation being conducted by the project vendor. This zone was alsointersected in historical drilling and suggests that the real meaningfulholes from the current program will probably be #4-7 on strike to thenorthwest, but those results will come with a big caveat becausegetting to that area with an open pit would involve removing hundredsof meters of mountain located above. Still, if holes #4-7 should hitbig, the rise seen in the share price on Friday would be justified,otherwise it will have been presumptive. Yes, that means the marketover-reacted to these drill results. In fact, I’d go as far as sayingthat anybody who compares Seafield to Ventana Gold (TSX: VEN; PinkSheets: VENGF) at this point hasn’t even bothered to look at the drillmap. [Silverax]
Disclaimer: We may own shares in several of the companies mentioned in this analysis (Metal Augmentor subscribers know which ones), but no compensation has been received fromany of the companies mentioned. This is not investment advice;should you seek investment advice we recommend you discuss thecompany with a licensed investment advisor or broker.