Dr. Quinton Hennigh, Crescat Capital's Geologic and Technical Director, began his presentation by commenting on the recent rise in certain base metals prices. Copper and zinc prices, for instance, have recently jumped, to about $4.70 a pound and $1.70 a pound, respectively, he noted.
He ascribed these price moves to decreased production of the metals, resulting from slowing economies around the world. Further, with existing inventories being depleted, manufacturers that need these metals "are panicking," Hennigh said.
"This is a manifestation of inflation," he added. It's going to have profound effects."
Next, Hennigh delivered the most recent news of 12 gold and silver mining exploration companies in which Crescat Capital has a position. The firm is invested in about 90 such companies that collectively have a total of about 130 rigs actively drilling worldwide, he said. That and other exploration work is turning out impressive and encouraging results at many of these explorers' projects, leaving Hennigh thrilled.
"We have had a number of exceptional updates out of many companies over the past couple of weeks," Hennigh said.
The latest information from Puma Exploration Inc.'s (PUMA:TSX.V; PUXPF:OTCBB) Murray Brook project in virgin goldfield in New Brunswick is exciting, Hennigh said. Results from rock chip samples returned exceptionally high grades of gold, ranging from 9.2–199 grams per ton (9.2–199 g/t). Additionally, the samples were taken from the area between the Chubby and Lynx zones, suggesting the two connect. The company is seeing visible quartz there, too.
The geology seems to be an orogenic gold system containing aspects of an earlier epithermal style of mineralization, Hennigh said. It is part of the belt extending up into Newfoundland on which several companies have made high-grade discoveries.
"The high grades, the textures and so forth tell me they're in a high level part of the system," Hennigh said. " I think it's ripe for discovery of a substantial high grade deposit, so stay tuned."
Puma has numerous samples at the lab awaiting assay. Hennigh expects more high-grade results will come, he said.
Another company announcing impressive results is Arizona Metals Corp. (AMC:TSX.V; AZMCF:OTCQX), which has been expanding the volcanogenic massive sulphide (VMS) system into the Kay zone at its project. Now, the system spans about 500m from top to bottom. Drilling returned an intercept of 24m at 5% copper, 1% zinc and 23 g/t silver. Generally, gold equivalent grades have been between 5 and 10 g/t.
"I'm ecstatic," Hennigh commented. "It's just a wonderful deposit."
Arizona Metals also started to drill test outside of the primary area of focus.
Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB), too, put out some phenomenal numbers, Hennigh said, from the Jupiter zone, part of an orogenic system boasting flat and stacked veins. Drill hole 10, for instance, hit four zones, and returned an aggregate 185 gram meters of mineralization. The two zones in hole 13 together returned 112 gram meters, and the one zone in hole 12 showed 83 gram meters.
"This is an absolutely remarkable discovery. This is going to be a big one," Hennigh said. "If you can imagine putting an open pit around this, you've got multiple zones that you could potentially mine here."
Also of note, Jupiter is merely one of Snowline's discoveries, Hennigh said. Others include the Tintina-type gold system at Rogue, awaiting drill results, and Ursa, a high-grade zinc target.
New Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American) released an incredible intercept, especially for a new zone, Hennigh said. Hole 238, placed outside the Keats zone, hit 88.53 g/t gold over 3.35m.
Before that, the company released results for area above the Keats zone showing high grade intercepts, including 61.5 g/t gold over 5.2m. These suggest the presence of mineralized structures above what was thought to comprise the tube-shaped Keats zone that plunges about 20–30 degrees to the southwest. The system at Keats is wide open downplunge.
"The thing that's starting to intrigue me here is this scale of the structural burrito," Hennigh said. "It's really shaping up to be something special."
New Found also has drills working at Lotto, Golden Joint and elsewhere, so ample news is expected in the coming months.
New results from Cassiar Gold Corp. (GLDC:TSX.V; CGLCF:OTCQX; 756:FRA) show high grade just outside the area of the historical Bain mine. The first couple of holes drilled there, 300 and 301, returned 4.77m of 35.1 g/t gold and 6.37m of 12.64 g/t gold.
"These are great numbers for very first holes out of the gate," Hennigh said. "They show what kind of results to expect from this Cassiar South area. "This is an exciting story."
Cassiar also is drilling in the north as well, where grades are lower.
Blackrock Silver Corp. (BRC:TSX.V; BKRRF:OTCQX) released some drill results boasting "phenomenal numbers" with "mind-boggling grades" from its Tonopah West project, Hennigh said. For example, hole TXC21-026, drilled in the Bermuda vein, returned 2,027 g/t silver equivalent (1,120 g/t silver and 9.07 g/t gold) over 4.1m.
"This bodes well for a nice robust maiden resource in the not too distant future," Hennigh said.
Firefox Gold Corp. (FFOX:TSX.V) announced a recent hole hit 16.5m of 7.7 g/t gold at its Mustajärvi project in Finland. Whereas company is expanding the mineralization in and around that area, it is considering drilling some additional priority targets on the property, such as Sarvi and Utsamo.
"The company is aggressive, they have one of the biggest land positions in this Central Lapland Belt and they're going to be generating news," Hennigh said. "This company is one to watch very closely."
Hennigh reported that holes Eskay Mining Corp. (ESK:TSX.V) drilled upsection at Jeff encountered VMS right on schedule, the grades of which are not yet known. The company also encountered VMS lower in the system, making it "remarkable."
"Everybody's kind of sitting on pins and needles, waiting for numbers to come back," Hennigh said. "We're very optimistic this could be a significant discovery."
As for drilling between TV and Jeff, one of the first holes returned about 100m of stock sulphide mineralization, the first evidence of sulphides between the two systems. This suggests they may be connected.
In the south, east of C10, Eskay discovered Vermilion, a gold anomaly where drilling hit stock feeder-type sulphides. The area will likely generate a new discovery; Eskay will follow up on this next season.
Up at York, renamed Scarlet Ridge, samples showed good gold mineralization out of several drainages. With further work, the company found stockwork and semi-massive sulphide mineralization in the rhyolite, warranting further investigation.
Due to the arrival of snow, the explorer stopped drilling for the season, having completed about 24,000m, or nearly 80% of the planned total.
White Rock Minerals Ltd. (WRM:ASX; WRMCF:OTCQF) commenced drilling in Australia, in and around veins of the existing mine there, hitting some exceptionally high grade mineralization, noted Hennigh, adding that the company has a good chance of expanding the resource there. Also, Hennigh noted he is going lend assistance to White Rock in its shift from exploring a property in Alaska to one in Australia.
Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) continues drilling. With about five active rigs, the company is working to expand the current resource in two different areas at its Cuiú project in Brazil. It is finding different mineralization styles that could help it grow the resource fairly quickly. One style is a near-surface blanket, about 20–40 meters (20–40m) thick, containing lower grade mineralization around 0.5–0.8 g/t.
"This is not insignificant," Hennigh said. "If they have quite a few hectares underlain by this type of material, this might well be a big prize. This is a story to watch."
NV Gold Corp. (NVX:TSX.V; NVGLF:OTC) is ready to start drilling. Geologist Thomas Klein, working with the company, secured a reverse circulation drill contract at a time when drills are not readily available. Also, in reviewing the drill data, Klein identified an area of possible high grade, which the company intends to drill. The numerous other targets slated for drill testing over the new few months include Southwest Pipe, Discovery Bay, Pick Candle and Hush Hill.
Kingfisher Metals Corp. (KFR:TSX.V: KGFMF:OTCQB; 970:FSE) stopped drilling for the season. It did complete 6,000m of drilling, mostly in the Cloud Drifter area. Released results for six holes, all of which were about 500 or 60m long and hit similar mineralization, which is promising.
Streetwise Reports Disclosures:
1) This is contributed content from Crescat Capital compiled by Doresa Banning for Streetwise Reports LLC. Doresa Banning provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. Her company has a financial relationship with the following companies referred to in this article: None.
2) Dr. Quinton Hennigh is Crescat Capital’s Geologic and Technical Director. You should assume that as of the publication date, Dr. Quinton Hennigh has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves.
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