Asset sale of Bruner from CSQ.C to EDR.T is now complete. 400k ounce deposit with major upside potential increasing the resource size means PGOL's 2% royalty just became a lot more valuable. Canamex completes Bruner asset sale for $10M 2021-08-31 16:04 ET - News Release Mr. David Vincent reports COMPLETES SALE OF BRUNER PROJECT IN NYE COUNTY, NEVADA Canamex Gold Corp., further to its press releases of July 19, 2021, and Aug. 16, 2021, and after the shareholders meeting on Aug. 25, 2021, which voted to approve the sale transaction to Endeavour Silver Corp., has now completed the sale of the Bruner property, located in Nye county, Nevada. Endeavour paid $10-million (U.S.) in cash for 100 per cent of the Bruner gold project, which includes mineral claims, mining rights, property assets, water rights, and government authorizations and permits. Furthermore, the company also wishes to advise that going forward, management of the company intends to utilize the net proceeds to seek out and acquire other mineral properties/assets, and ultimately continue as a mineral exploration company. About Canamex Gold Corp. Canamex is a public listed company registered in British Columbia, Canada, trading on the Canadian Securities Exchange (CSE: CSQ).
Here's the news release from Endeavour Silver and their take on the Bruner project. I believe they can prove up at least a million ounces over the next 2-3 years. Endeavour completes acquisition of Bruner property 2021-09-01 07:30 ET - News Release Mr. Dan Dickson reports ENDEAVOUR SILVER COMPLETES ACQUISITION OFA BRUNER GOLD PROJECT IN NYE COUNTY, NEVADA Endeavour Silver Corp. has completed the acquisition of the Bruner property, located in Nye county, Nevada, from Canamex Gold Corp. (see news release dated July 19, 2021). Endeavour paid $10-million (U.S.) in cash for 100 per cent of the Bruner gold project, which includes mineral claims, mining rights, property assets, water rights, and government authorizations and permits. The Bruner gold project is an exploration- and development-stage project located approximately 180 kilometres southeast of Reno, Nev. Gold was originally discovered in the district in 1906 and saw intermittent historic mining between 1906 and 1998. Recent exploration activities by previous operators included mapping, drilling, geophysical surveys and sampling, culminating in a mineral resource estimate in 2015 and a preliminary economic assessment in 2017 outlining a low capital cost, open pit, heap leach operation. A historic resource estimate of 342,000 ounces of gold contained in 17.5 million tonnes grading 0.61 gram per tonne in three zones, Paymaster, HRA and Penelas, was prepared for Canamex in a technical report dated Jan. 22, 2018, titled "NI 43-101 Technical Report on the Bruner Gold Project, Updated Preliminary Economic Assessment, Nye County, Nevada, USA" by Welsh Hagen Associates. A qualified person has not done sufficient work for Endeavour to classify the historical estimate as a current mineral resource or mineral reserve. Endeavour is not treating the historical estimate as a current mineral resource or mineral reserve, has not verified the historical resource estimate and is not relying on it. Endeavour plans to twin certain drill holes and conduct a drilling program to upgrade the historical estimate as a current mineral resource. Activities in Q4 2021 will focus on surface work and data compilation, and, in 2022, Endeavour anticipates recommencing exploration work on high-priority targets. Endeavour chief executive officer Dan Dickson commented: "We are pleased to add an advanced precious metals property to our project pipeline. Bruner should be an accretive acquisition for our five-year strategic plan to become a premier senior silver producer, with potential for exploration discoveries, district acquisitions, near-term production and organic growth. "We will provide a formal market update in our 2022 annual guidance on our exploration plans for the Bruner project. Our exploration team will focus initially on verifying the historic resources, then turn its attention to the many exploration targets on the Bruner property. We look forward to unlocking the full potential of the Bruner property with the goal of building a new mining operation in another historic mining district in Nevada. "In the short term, our attention is on the Terronera project, as we are nearing the completion of the feasibility study and we look forward to releasing the results." Dale Mah, BSc, PGeo, Endeavour's vice president of corporate development, is the qualified person who reviewed and approved this news release. About Endeavour Silver Corp. Endeavour Silver is a mid-tier precious metals mining company that owns and operates three high-grade, underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project toward a development decision, and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. The company's philosophy of corporate social integrity creates value for all stakeholders. We seek Safe Harbor.
Updated 43-101 report announced today by Elevation Gold (Previously Northern Vertex). PGOL owns a 3% royalty on this project. Elevation Gold Announces 36% Increase to Measured and Indicated Resources at the Moss Mine, Arizona in New Technical Report VANCOUVER, BC, Oct. 21, 2021 Current Reserve Larger than Total Gold Ounces Mined to Date VANCOUVER, BC, Oct. 21, 2021 /PRNewswire/ - Elevation Gold Mining Corporation (TSXV: ELVT) (OTC: NHVCD) (the "Company" or "Elevation Gold") a U.S. gold and silver producer with district scale exploration projects in the Walker Lane Trend of Nevada and Arizona is pleased to report updated Mineral Reserve, Mineral Resource estimates and Technical Report for its Moss Mine, located in Mohave County Arizona. The Company also provides production results for the quarter ended September 30, 2021. Elevation Gold's new leadership believes the Moss Mine and surrounding 168 square kilometer land package possesses unrealized gold exploration potential. Consequently, the Company began an aggressive near mine and regional exploration drilling program in March of this year to deliver new resource ounces while beginning to demonstrate the potential of the property. The updated Mineral Reserve and Resource Estimates disclosed in this press release will be included in a technical report (the "Technical Report"), to be filed on SEDAR under the Company's profile within 45 days of this press release. The Technical Report represents an interim update, which only incorporates the results of the drilling to a May 24, 2021, cut-off. Since this cut-off date, Elevation has completed approximately 100 drill holes and continues to encounter significant mineralization, which are not included in the Mineral Resource and Mineral Reserve estimates presented in this new Technical Report. Dollar amounts are United States Dollars unless otherwise noted. Technical Report Highlights: Proven and Probable Mineral Reserves of 12,744 ktonnes with grades of 0.45 g/t gold and 5.4 g/t silver containing 184,500 ounces of gold and 2.2 million ounces of silver (Table 1) Measured and Indicated Mineral Resources of 38,857 ktonnes with grades of 0.39 g/t gold and 4.6 g/t silver, containing 490,200 ounces of gold and 5.75 million ounces of silver with Inferred Mineral Resources of 6,562 ktonnes with grades of 0.35 g/t gold and 4.5 g/t silver, containing 73,800 oz gold and 940,000 oz silver (Table 3) Life of Mine plan only based on the Proven and Probable Mineral Reserve estimate extends the Moss Mine Life to 2025, mining ore at 11,000 tons per day, with an average strip ratio of 0.88:1 Pre-tax NPV(5%) $50.8 million, after-tax NPV(5%) $45.3 million at $1,700/oz gold and $18.50/oz silver Chairman, Douglas J. Hurst commented, "The Moss Mine has been historically constrained by tenure and permitting that limited the mine's footprint and production capacity. It has also hindered the Company's ability to expand the resources and reserves. These constraints have now largely been removed, and the potential of the property is just beginning to be realized." President, Michael G. Allen commented, "The updated reserve estimate and mine plan for the Moss Mine is a foundational piece in the transformation of the Company. Approximately 100 drillholes have been completed since the data for the resource was cut off and results received to date continue to demonstrate growth potential of the resource. Additional near-mine to regional exploration opportunities on our 168 square kilometer land package are being targeted and will systematically drilled later this year and well into 2022." Mineral Reserves and Resources The current reserves are larger than the total ounces produced by the mine to date, demonstrating our ability to replace ounces through exploration. The Proven and Probable Reserve estimate was constrained by the existing infrastructure of the mine. In the future, infrastructure may be relocated to allow the Moss Mine to realize the full economic benefits of the additional near mine mineralization being defined by the ongoing exploration drilling program.
PGOL (Patriot Gold Corp) Value Review for H1 2021 Despite Patriot Gold’s market cap being chopped in half over the last several months, the company has had some positive outcomes over the year. The stock market has yet to understand and rationalize this into value. Let’s break it all down: Royalty Income – Over the first half of 2021, PGOL has received just under $1 million in royalty income. Net earnings (before drilling Windy Peake) were around half a million dollars, after G&A expenses. But the company did some extensive drilling and around two thirds of the net income was used for that. But that still leaves an additional $150k USD in the bank after the first half. Q3 results will be out next month and it should be another profitable quarter. Moss Mine – Patriot Gold owns a 3% NSR on this mine and it has several years of production left, which can still be increased by drilling. Last quarter Elevation Gold mined 9,000 ounces of gold, meaning they should be able to extract anywhere from 36,000 to 40,000 ounces of gold per year. A new 43-101 report for the Moss Mine was released last week by ELVT stating that the resource is now 490,000 ounces of Gold and 5.75 million ounces of silver. At $1800 gold and $24.50 silver, the resource is worth $1.022 billion. With a 3% NSR, Patriot gold would get around $31 million USD if pricing remained constant over the next several years. But many forecasts are suggesting that commodity prices will increase. Bruner Project – This was in essence a dead asset for several years until recently. Why? Canamex Gold was unable to work on this project and generate more value for PGOL. The historic resource is under 400,000 ounces of gold, but only 10% of the property was ever explored. This year Endeavour Silver (EDR.T) purchased Burner for $10 million USD and the deal was completed during the summer. EDR has a billion-dollar market cap and is more than capable of exploring Bruner and putting it into production within the next 4-5 years. This is longer hold asset, but any positive results they release will reflect positively on Patriot Gold. There is a 2% NSR where 1% can be bought back for $5 million USD. Windy Peak – PGOL has been working on this project for quite some time and there have been many positive assay results from it. Windy will still require more work and it’s not the highest-grade material, but it can be mined once a 43-101 indicated resource has been established. Vernal – Although it has not been worked on yet, the Vernal property isn’t too far from Bruner. The potential of finding some economic gold here seems promising, but we won’t know until the company starts sampling, then drilling. One last important note. Insiders/Institutions own a majority of the 74.4 million shares, with 10.4 million options exercisable at $0.10 USD (average on MD&A). That means management needs to grow this company in order to extract any value from the common shares or options. Having consistent positive cash flow and value being created over every quarter is key to increasing shareholder value.
Looks like time is running out for Endeavour Silver to buy back 1% of the NSR on Bruner. I'm quite certain the terms/conditions from the original asset sale from Patriot to Canamex still stand. By the end of April, EDR.T has to give PGOL $5 million USD for that 1%, or else it reverts back to a full 2% NSR with no limit. Short term the cash would be huge for Patriot, but I'd rather have a full 2% royalty as that extra 1% will be worth way more in a couple years from now. 342,000 ounces of gold in the historic report, with only 10% of the property explored, upside is massive. From page 13 on the last MD&A: Pursuant to the Bruner Purchase and Sale Agreement with Canamex Resources dated April 25, 2017, the Company has a 2% net smelter return (“NSR”) royalty on the Bruner Gold/Silver mine in Nevada, including any claims acquired within a two-mile area of interest around the existing claims. Canamex has the option to buy-down half of the NSR royalty retained by Patriot for $5 million any time during a five-year period following closing of the purchase and sale agreement. As of September 30, 2021, no royalties have yet been earned.
As well, here's what Endeavour's CEO said once the Bruner acquisition was completed (From EDR.T Sept.1st 2021 News) Endeavour chief executive officer Dan Dickson commented: "We are pleased to add an advanced precious metals property to our project pipeline. Bruner should be an accretive acquisition for our five-year strategic plan to become a premier senior silver producer, with potential for exploration discoveries, district acquisitions, near-term production and organic growth. "We will provide a formal market update in our 2022 annual guidance on our exploration plans for the Bruner project. Our exploration team will focus initially on verifying the historic resources, then turn its attention to the many exploration targets on the Bruner property. We look forward to unlocking the full potential of the Bruner property with the goal of building a new mining operation in another historic mining district in Nevada.
Endeavours January 2022 company presentation mentioning some facts about Bruner on page 28: https://edrsilver.com/investors/presentations/ Bruner Project –An Advanced Stage Exploration Project FAVOURABLE GEOLOGY •Gold and silver occurring in low-sulphidationepithermal veins and in disseminations within sheeted and stockwork zonesIDEALLY LOCATED •Situated within Nevada’s Walker Lane NW trending mineral belt, which currently hosts several producing mines and recent discoveriesEXCELLENT OPPORTUNITY & POTENTIAL •Potential to discover additional gold and silver mineralization amenable to open-pit mining •Opportunityfor exploration discoveries, district consolidation, near-term production and organic growth
Patriot Gold Corp Year End Results. Numbers are in $USD and can be found on SEDAR. Ending December 31, 2021 ASSETS ($USD) Cash: $1,417,275 Marketable Securities: $116,106 Royalty Receivables: $1,107,296 Prepaid Expenses: $38,760 Deferred Tax Assets: $1,108,000 Total Assets: $3,787,437 LIABILITIES ($USD) Accounts Payable: $176,636 2021 Performance Revenue: $1,737,707 Net Income: $152,431 For information on the Moss & Bruner royalties, please see Patriot Gold’s MD&A on Sedar. The company also has advanced stage mineral assets in Nevada.
