Gold – Back to Support

After gold tagged $1392.60 on Sunday evening we warned that conditions were ripe for a pullback after such a large upside move. Since then we have seen gold suffer a sharp downside reversal and there is even the potential for gold to print a large bearish engulfing candlestick on the weekly chart:

Click to enlarge

Gold_Weekly

The current sell-off is also offering an important test of the uptrend which began in early January:

Gold_Daily_3.20.2014

While this week’s sharp turnaround offers ample cause for concern, price is now back to an area of major support near $1320:

Gold_Support

While there could definitely be some more near term downside volatility ahead, we are fast approaching an attractive buying opportunity on multiple time-frames in gold.

Three Reasons Why Gold Might be Due for a Pullback

After a $211 rally from the New Year’s Eve low of $1181.40 gold may finally be running out of steam. Here are 3 reasons why a pullback in gold is imminent:

1. The latest COT data shows much of the recent rally has been fueled by short covering among speculators:

Gold_COT_3.11.2014

This is more than a 50,000 contract reduction in speculative short positions since December 31st, 2013 and the smallest speculative short interest in gold futures since January 2013 (right before gold entered a steep decline):

GOLD_cot_12.31.2013

2. The gold miners just completed a bearish candlestick pattern as they flirt with a false breakout from the multi-month cup & handle pattern:

GDX_Daily_3.17.2014

3. ~$1400 is major resistance that is unlikely to be breached with ease:

Gold_Daily_3.17.2014

Today’s bearish outside reversal in gold signals that the pullback may have already begun:

GC_Bearish_Reversal

However, the previous resistance zone $1340-$1350 should offer ample support if price pulls back further over the coming days.

CGT – Columbus Gold signs $30 million joint venture with Nord Gold

Paul Isnard is located in French Guiana which hosts numerous high-grade gold deposits (Image: Columbus Gold Corp.)

Paul Isnard is located in French Guiana which hosts numerous high-grade gold deposits (Image: Columbus Gold Corp.)

Nord Gold has agreed to option an initial 50.01% interest in Columbus Gold’s (CGT:TSXV) Paul Isnard project for $30 million.  Nord Gold is listed in London, but is 85% owned by the Russian billionaire owner of conglomerate Severstal, Alexei Mordashov (net worth ~$12 billion).  Nord Gold operates nine mines globally and produced 924,000 ounces of gold in 2013.

Under the terms of the agreement, Nord Gold can earn 50.01% of the Paul Isnard project by spending at least $30 million over the next 3 years and by completing a bankable feasibility study.  Nord Gold will pay $4.2 million cash by May 21, 2014.

nord gold

Nord Gold expects to spend $11.8 million on the project this year alone (combined with their $4.2 million cash payment, this represents nearly half of the total work commitments within the first year).

Robert Giustra, CEO of Columbus Gold: “This agreement is exceptional not only by its requirement for an experienced and world class mine developer to fund a considerable amount of spending but also for the fact that Columbus Gold shareholders retain half the project at feasibility. In addition, the deal provides Columbus Gold with the option to participate in mine construction or to delegate it to Nord Gold for a resulting significant and valuable equity interest for Columbus Gold shareholders in a large producing mine.”

Columbus has the option to fund its pro-rata (49.99%) of the mine construction if elected by Nord Gold to do so.  Alternatively, they can allow Nord Gold to solely fund the capex and will be diluted to 25% based on a straight-line formula depending on the 2P reserves.

Nord Gold has agreed to pay Columbus a 10% management fee as operator of the project (roughly $1 million to be paid to Columbus over 2014 based on budget).  The London-listed gold producer has also agreed to a standstill agreement whereby they will limit their ownership to less than 20% of Columbus and will not solicit proxies over the option period.

Russian billionaire oligarch Alexey Mordashov is the 85% shareholder of Nord Gold (Image: Severstal)

Russian billionaire Alexey Mordashov owns 85% of Nord Gold (Image: Severstal)

The Paul Isnard project hosts the Montagne d’Or deposit which currently hosts a 5.37 million ounce gold deposit in the Inferred category (117.1Mt at 1.43g/t gold).  Columbus is currently working on a 26,600m, 135 hole drill program at the project, mainly to bring upgrade the Inferred resource.  The deposit has been drilled from surface to a vertical depth of 250m.  A strike length of 2.3km has been identified and trends east-west and dips steeply to the south.

The gold here is associated with disseminated, stringer and semi-massive sulphide mineralization of volcanic origin. The higher grade gold is found in chlorite bands with pyrite-pyrrhotite-chalcopyrite seams and stringers.

Investors like these types of deals whereby a larger company comes in to a fund a project for reasonable option terms.  We view this as positive for Columbus shareholders given the current cash balance (pre-Nord Gold transaction) of less than $1 million and the fact the dilution they face for the value that gets added to the project is fair.

Nord Gold is a sophisticated group which successfully put a gold mine into production on time and on budget in Burkina Faso recently.

Shares in Columbus performed well last year, despite the weak gold environment as the company continued to de-risk their Paul Isnard project.  Here’s the 12-month chart:

CGT Chart
CGT data by YCharts

Read: Columbus Gold signs $30 million definitive option agreement with Nord Gold

Gold Uptrend Gains Momentum

Gold has broken above major resistance near $1360 this morning after a healthy 2-week consolidation between $1320 and $1355:

Click to enlarge

GC_1-hour

The strength of the current uptrend is even more impressive on the weekly timeframe and shows all the signs of a strong trend that is only gaining in momentum:

Gold_Weekly_3.12.2014

Price is now equidistant from major resistance at $1425 and major support at $1300 – which will come first? $1425 or $1300?

Continental Gold Aligns the Buritica Project with Colombia’s Artisinal Mining Strategy

(Source: Continental Gold)

(Source: Continental Gold)

Continental Gold (CNL:TSX) is aligning their high-grade Buritica project with Colombia’s long-term artisanal mining strategy and deserves praise for it.  Along with the Ministry of Mines, the National Mining Agency and Coranqioquia (the autonomous regional corporation responsible for issuing and controlling environmental permits in Antioquia), Continental Gold has signed a MOU (memorandum of understanding) with local artisanal miners to create a formalized platform for them to continue working at the Buritica project concessions.

The MOU was signed on March 7th and will be the first in Colombia under Law 1658 (which was passed on July 15, 2013).  Given the rise in local opposition to mining projects throughout Latin America over the past few year, taking this unique and proactive stance to local miners should breathe more confidence into Colombia’s dedication to its mining industry.

We applaud Continental Gold’s team for being the first company in Colombia to take this step and work, formally, with artisanal miners on their project in order to continue developing the Buritica project without issue.

The system at Buritica is made of two main veins; Veta Sur and Yaragua (Source: Continental Gold)

The system at Buritica is made of two main veins; Veta Sur and Yaragua (Source: Continental Gold)

Under Article 11 of Law 1658, concession owners can sign subcontracts with artisanal miners operating in their concessions without the liability associated with normal operating contracts.  These subcontracts will legally allow these miners to operate in an agreed upon area with no oversight by the concession owner.  Instead these artisanal miners will be under the control of the Colombian mining and environmental authorities.

The company anticipates that formalization agreements with local small-scale miners will be accomplished no later than the third quarter of 2014.

“This acta de intenciones forms the basis for building an efficient and definitive process for formalizing the artisanal miners of the Buritica area,” commented Frey Usuga, President of ASMIMODO, the largest artisanal mining group that will be formalized at Buritica. “We are excited to be the pioneers and role models under Law 1658, leaving informal mining behind and growing responsibly alongside Continental. We are very grateful to the company for its commitment through this process and we are confident that with their support, we will strengthen the social development of our community.”

In a note to clients this morning, GMP analyst, George Albino said: “we believe there had been market concerns over the past few months given unrest associated with government evictions of illegal miners. This progress should help alleviate these worries.”  GMP has a $10 target price on Continental Gold (currently trading at $5.09).

The company also announced that they had submitted their EIA application to the Corantioquia for the final modification to their environmental license application on December 23, 2013.  Once again, the Continental team has delivered another catalyst on time.

Continental Gold submitted the modification to their environmental permit for infrastructure plans in Dec 2013 (Source: Continental Gold)

Continental Gold submitted the modification to their environmental permit for infrastructure plans in Dec 2013 (Source: Continental Gold)

This modification includes the entire surface infrastructure plan including processing, tailing and maintenance facilities.  The company successfully obtained their first permit modification for Corantioquia in August 2012 in order to build a 6km road and begin underground development on their Buritica project.

Once this latest permit modification is granted, Continental Gold will have the two major licenses they need to build the Buritica project.  In his September interview with CEO.CA, Mr. Sussman told us “permitting is a huge catalyst for Buriticá.”

In the meantime and before the permits are likely to be in hand, Continental is working towards an updated resource and prefeasibility study which are expected within the second half of 2014.  The street is watching this closely as the company has been highly successful in their drilling campaign.

They have been intersecting wider veins with higher grades than are currently modeled.  If they can successfully show that vein widths and grades have grown, this will also be a key catalyst.  The company has done a good job of proving that the deposit has grade continuity and that the model doesn’t suffer much grade dilution, however increasing proof of that should help the share price.

Shares are already up 50% YTD:

CNL Chart
CNL data by YCharts

Read: Continental Gold Provides a Buriticá Project Update

The Only Metal Shinier Than Gold Is……

While gold continues to form a bullish consolidation pattern just below resistance ($1355-$1360):

Click to enlarge

Gold_Daily_3.11.2014

Another precious metal, albeit a less popular one, is shining brightly after breaking out from a 3-year symmetrical triangle last week:

Palladium_Weekly_3.11.2014

This breakout has all the makings of one that investors should not take lightly (volume, duration, and price action) – A 4-digit price tag for an ounce of palladium during 2014 is well within the realm of possibility.

There are a few ways to play a rally in platinum group metals – here are a few of our favorite names:

Stillwater Mining (SWC)

SWC_Weekly

Similar to the palladium chart in terms of the recent breakout with strong volume confirmation. Pullbacks are likely to represent buying opportunities with a $20+ intermediate term price target for SWC.

Ivanhoe Mines (IVN.TO)

IVN.TO_Daily

Recent pullback to support ($1.50-$1.70) – $2.00 is still the big upside nut to crack.

Wellgreen Platinum (WG.V)

WG.V_Daily

Energy building as price nears apex of large symmetrical triangle – upside breakout easily targets $1.25+

See also: Palladium – a new bull market

Continental Gold (T.CNL): Cash in hand, expanding resource, getting it done

Ari Sussman, Continental, Gold

Ari Sussman is the CEO of Continental Gold.

Continental Gold logoToronto-based Continental Gold (TSX:CNL) released a corporate update Thursday afternoon showing strong operating results for the year 2013, including 59,109 metres of drilling (adding to 215,300 metres for the project total), discovery of several new veins, four new precious metal-mineralized systems and – oh yeah – $117.5 million in hand with no debt to service.

In times like these, when so many gold explorers are under water (some literally), Continental’s situation is an ‘up times’ level of rosy, which may explain why their shares have doubled in value since December 1 of last year.

The company is focused on its Buritica project in Antioquia, Colombia, where it has recently discovered a new mineralized vein system it calls San Agustin. From the company, that spot is generating the following results:

  • BUSY329: intersected 0.4 metres @ 49.7 g/t gold and 163 g/t silver
  • BUUY093: intersected 3.0 metres @ 7.2 g/t gold, 43 g/t silver and 8% zinc
  • BUSY340: intersected 0.72 metres @ 31.0 g/t gold and 3 g/t silver, and 0.5 metres @ 12.0 g/t gold and 31 g/t silver.

That’s fun side stuff while the company works on infrastructure, having bought 99% of the surrounding infrastructure-based land around their property, while developing the main access tunnel, new ramps, and waiting for the final environmental permits required to build out a mine, which are in process now.

While that’s happening, it’s also drilled in other places:

In the Veta Sur vein system:

  • BUUY121: intersected 16.7 metres @ 58.7 g/t gold and 233 g/t silver, including 5.15 metres @ 184 g/t gold and 671 g/t silver
  • BUUY118: intersected 18.7 metres @ 22.4 g/t gold and 80 g/t silver, including 3.8 metres @ 99.6 g/t gold and 254 g/t silver
  • BUUY126: intersected 28.4 metres @ 20.5 g/t gold and 135 g/t silver, including 2.15 metres @ 135.3 g/t gold and 921 g/t silver and 10.9 metres @ 10.8 g/t gold and 85 g/t silver
  • BUUY149: intersected 0.5 metres @ 101.5 g/t gold and 20 g/t silver

Or maybe you like the Yaraguá vein system:

  • BUUY083: intersected 22.3 metres @ 23.9 g/t gold and 255 g/t silver
  • BUUY086: intersected 20.2 metres @ 11.4 g/t gold and 59 g/t silver
  • BUUY114: intersected 10.5 metres @ 108 g/t gold and 96 g/t silver
  • BUUY170: intersected 2.7 metres @ 830.6 g/t gold and 65 g/t silver and 3.45 metres @ 27.1 g/t gold and 11 g/t silver
  • BUUY120: intersected 1 metre @ 329.5 g/t gold and 52 g/t silver.

Also, underground channel sampling in the Yaraguá vein system resulted in significant intervals including 56.3 g/t gold and 112 g/t silver across 1.34 metres along 32 metres and 121.4 g/t gold and 775 g/t silver across 0.45 metres along 60 metres.

There’s more, but it’s really a case of more of the same. Lots of veins, lots of metres of solid gold per tonne.

You like metallurgy?

The preferred recovery process selected is gravity concentration followed by cyanidation of gravity tails. Overall metallurgical recoveries on all four 150 kilogram samples yielded 95.4% and 48.6% for gold and silver, respectively. In addition, a large proportion of the gold can be extracted using gravity separation with an average recovery rate of 73.8%.

Brothers and sisters, if Continental Gold didn’t already have the treasure of the Sierra Madre in cash in hand, I’d be giving it to them and saying, “Yeah, build this mine if you wouldn’t mind, thanks.”

I’m not going to tell you to buy Continental, mostly because I’m not your investment advisor. And I’ll admit I don’t own any of it, mostly because I like ‘em cheap and risky, and this stock has already gone through its pubescent growth spurt. Now it wants its first car, it wants to be allowed out until 2am, and it wants its girlfriend Brittany to be allowed to sleep over.

Granted, there’s still a little growth to go. It’s going to ding the Buick at least once before college.

But you’ve got to like a company that has hit its milestones, removed a bunch of risk, found a nice upward trajectory and has been saving its allowance.

NI 43-101 to come. Gold prices rising. They grow up so quick, don’t they?

CNL, Continental Gold, Stock

CEO Technician: Lovely chart: Bull flag – breakout over 5.43 targets ~$6.00 (Stockcharts.com)

Disclaimer: Continental Gold is an advertiser and we own shares which means we are biased. Please read our full Disclaimer and Continental Gold’s Cautionary Note Regarding Forward Looking Statements.

ECB Set to Launch QE on Thursday

Growing disinflationary headwinds are likely to push the European Central Bank (ECB) toward launching a 300-500 billion euro asset purchase program on Thursday morning. Such a monumental shift in monetary policy posture from the ECB could deliver an outsized impact to global financial markets (although we have clearly seen some front running of this announcement in recent weeks).

An announcement at the upper end of the 300-500 billion euro range along with open ended language (alluding to the possibility that the ECB could increase asset purchases past the 1 trillion market if needed) from ECB President Draghi could send global stocks and precious metals skyward. A few key charts from BNP Paribas help to illustrate why a QE announcement from the ECB on Thursday is quite likely:

Click to enlarge

ECB_Balance_sheet_

While the Fed has spent the last year and a half aggressively expanding its balance sheet, the ECB has allowed its balance sheet to shrink.

EURO_M3

M3 money supply growth has consistently fallen short of ECB target levels and private sector bank lending remains anemic.

All of this adds up to a powerful set of disinflationary/deflationary forces throughout much of the eurozone. Only Germany appears to be immune from the eurozone disinflation plague, whereas, much of the eurozone periphery suffers with extraordinarily high rates of unemployment and stagnant economies.

Here’s the money shot from BNP Paribas:

“Asset purchases are increasingly necessary in order for the ECB to meet its primary objective of maintaining price stability. Inflation in the euro area has persistently surprised to the downside, eroding the safety margin against deflation. „ Additional conventional policy easing will not deliver sufficient monetary accommodation for the price stability mandate to be met. Thus, the ECB will reluctantly have to follow other central banks into balance sheet expansion via asset purchases.” (Reuters – ECB to take the QE plunge this year…finally)

Can Gold Reach $1400 in March?

This morning gold is up over $30/ounce on a combination of Russia/Ukraine fears and speculation that the ECB might announce an “inflation program” on Thursday morning:

Click to enlarge

Gold_10-min

Just overhead there lies a significant confluence zone between $1360-$1375, if price can get through this nest of resistance it could be a quick trip up to the low $1400s:

Gold_Daily

A deeper correction in equities and emerging market currencies could offer the perfect recipe to catalyze the next $50 of upside in gold. This morning’s large gap lower following Friday’s all-time for the S&P 500, along with non-confirmation from the Dow Industrials, poses many more questions to the bullish equity faithful.

Was Friday a cleverly disguised bull trap? And will that 1929 Dow analog finally play out?….Albeit a few weeks late

The Only Gold Chart You Need

With virtually a limitless amount of information floating around out there for investors to decipher, it is usually best to keep things as simple as possible. Removing price from the weekly chart and only leaving the 10-week simple moving average allows us a very clear picture of past trends and nascent trends which might be forming:

Click to enlarge

Gold 5-Year Chart

Gold_10-week

A break above the October high at $1361.80 would be the first higher high on the weekly time frame since 2012 and help to confirm that we are in the midst of a fresh uptrend.

DSR – Desert Star Begins Permitting and Exploration Work on Their Portfolio of US Prospects

Desert Star has a number of assets located within a 15km radius of major mining projects held by Rio Tinto and BHP (Photo: Cronkite Newswatch)

Desert Star has a number of assets located within a 15km radius of major mining projects held by Rio Tinto and BHP (Photo: Cronkite Newswatch)

Today, Desert Star Resources (DSR:TSXV) quietly announced that they had begun the first steps in exploration on their recently acquired southwest US assets.  The company completed geological mapping and sampling at its Copper King project located in the prolific Laramide belt of Arizona.  The mapping and sampling have identified diorite porphyry dikes which intrude Apache Group statigraphy and diabase sills which looks similar to that seen at Rio Tinto and BHP’s large and high-grade Resolution copper-molybdenum project.

We spoke with Desert Star’s Daniel MacNeil (Project Acquisition and Development) by phone this afternoon and he tells us, “there are two main takeaways from the release today, one, we have begun the exploration permitting process on our projects which is a significant milestone and, two, we have initiated the first steps in defining drill targets on the projects.”

The company has undergone a significant change in focus over the past year with large-potential prospect acquisitions, name change, board and management changes and financings.  Recently they closed a ~$1 million raise at $0.18.

Mr. MacNeil told us that “the plan is to complete geophysical and geological mapping and surveys on the projects including Oro which should take us into the fall at which point we should have our permits and targets defined for drilling.”

Desert Star announced in the release that they expect to conduct an additional mapping campaign at Copper King and Red Top in March, 2014.

With the prospects that they have, the company is likely to find a joint venture partner for one, all or some of their assets.  This could happen prior to gaining exploration permits, but it would seem rational for it to be after.  The company is also more than capable of drill testing these targets themselves.

Also at their Oro project in New Mexico, Mr. MacNeil and Dr. Alan Wainwright (Desert Star’s Chief Geologist) reexamined historic core data and believe they have identified a large copper porphyry target below intense porphyry-style alteration exposed at surface.  They shared their excitement about this potential during our last interview and again, Mr. MacNeil reiterated that by phone today.

Shares are up over 175% from their summer lows:

DSR Chart

DSR data by YCharts

Read: Desert Star Conducts Sampling Program and Commences Process for Drill Permitting at Red Top, Copper King & Copper Springs Projects

Disclaimer: Author has a financial interest in Desert Star Resources and the company is an advertiser, therefore the article is not to be considered unbiased and fully independent. Please read Desert Star Resources Ltd.’s Cautionary Statement Regarding Forward-Looking Statements’s carefully.

Continue reading

Gold Needs a Rest

April gold futures reached as high as $1345.60 overnight for a more than $100 gain for the yellow metal during the month of February. There are plenty of signs that gold may soon need a rest, ranging from a sharp turn in sentiment to major resistance in the $1340-$1360 area:

Click to enlarge

Gold_Daily_2.26.2014

A pullback to the $1300-$1320 area would be reasonable and help to reset the market for the next push higher; eventually targeting major resistance near $1400-$1425.

Gold & Silver Sentiment Update

After a very impressive rally in precious metals and mining shares during the past couple of weeks, there is some cause for near term concern as sentiment has suddenly turned bullish on the sector.

The latest Commitment of Traders data from the CFTC clearly shows a massive amount of short covering and some renewed speculative zest from smaller traders:

Click to enlarge

Gold_COT_2.18.2014

This is the largest net bullish positioning by small speculators since last September when gold prices tumbled more than $100.

Silver_COT_2.18.2014

Massive short covering by large speculators contributed greatly to silver’s 7%+ two day rise on February 14th and 18th. 

While there is certainly some cause for concern in the near term, we know very well that sentiment is not a good market timing tool and sentiment can remain at extremes for extended periods of time – a quote from Neil Leeson of Ned Davis Research:

Investors can remain optimistic on gold just as long as they were pessimistic (nearly all of 2013). Our mantra is to go with the crowd until it reaches an extreme, and then starts to reverse. Trend, flows, and momentum are all positive; sentiment is really the only indicator suggesting caution.

Both charts of gold & silver show bullish consolidations after their recent upside breakouts:

Gold_Daily_2.22.2014

Gold has near term support near $1308 with significant resistance $1340-$1350.

Silver_Daily_2.22.2014

Silver faces stiff resistance near $22 with near term support levels below at $21.40 and $21.00.

Precious metals investors should be happy to see a further consolidation after the recent upside moves. Some cooling off in sentiment and working off a bit of the recent overbought condition in gold & silver will only serve to prepare the market for the next upside surge.

NGQ – Lundin’s NGEx Resources Hits 0.63% CuEq over 340m in Argentina

NGEx plans for 120-160,000tpd open-pit copper mine at Josemaria (Photo: Bloomberg)

NGEx plans for 120-160,000tpd open-pit copper mine at Josemaria (Photo: Bloomberg)

Lukas Lundin’s base metals explorer, NGEx Resources (NGQ:TSX) this morning released seven of fourteen holes from their 2013/2014 field season at their Josemaria project in Argentina.  The focus of their 7,302m program was to define the high-grade supergene zone near the north end of the project and to test a possible extension there.

Two of the holes successfully intersected this high-grade supergene zone with hole JMDH78 intersecting 0.54% copper and 0.11g/t gold (0.63% copper equivalent) over 340m.  JMDH80 was drilled into the indicated resource block and therefore is expected to increase that portion of the model.  They also completed several large step-out holes to test a broad area of leached cap which extends to the north and northwest.

Other highlight holes included hole JMDH81 which intersected 510m (starting at 94m downhole) of 0.35% copper and 0.2g/t gold (0.50% copper equivalent).  Also, hole JMDH80 which intersected 0.44% copper and 0.22g/t gold (0.61% copper equivalent) over 432.5m.  These two holes were drilled along the edge of the indicated block and should convert inferred resources into indicated.

Three step-out holes were drilled between 90 and 300m from the inferred resource block at Josemaria and represent an extension to the northwest of the known mineralized zone as well as the potential to host a separate mineralized porphyry centre.  The company intends to complete follow-up drilling here.

NGEx also provided a preliminary update on the engineering studies that were started in the second half of last year and aimed to determine preliminary development ideas for Josemaria.  The work focused on an open-pit operation, processing between 120 to 160,000tpd.  Within the total resource estimate there is a shallower and higher-grade component with an estimated grade of 0.44% copper (versus indicated grade of 0.35% copper and inferred grade of 0.28% copper).  The engineers are now investigated the economic pros and cons of processing this material in the early days of a potential mine.

Baseline environmental programs, including review of areas for potential infrastructure, are under way, with fieldwork in progress during the current South American summer season.

The company holds three projects within 15km of eachother which hold over 21.3 billion pounds of copper and 15.5 million ounces of gold (Image: NGEx Resources Inc.)

The company holds three projects within 15km of eachother which hold over 21.3 billion pounds of copper and 15.5 million ounces of gold (Image: NGEx Resources Inc.)

At Filo del Sol, which is located 15km away from Josemaria and straddles the Argentine and Chilean borders, the company updated investors on their planned 7,000m drill program there.  As of February 9, 2014 NGEx had completed 5,875m in 18 holes with assays pending for all of them.  The company’s focus for this years program at Filo del Sol was to provide enough drill data to compile an initial resource estimate for a stratabound, high-grade silver-copper zone.

They also are focused on testing the potential for a feeder zone to the stratabound mineralization comprised of significant copper and gold mineralization   Drilling here is expected to be completed by early March.

Between Q2 and Q3, the company was burning roughly $1.7 million per month and ended September 2013 with $18 million.  This would leave them with roughly $10 million in cash remaining (assuming a similar burn).  NGEx last raise was $34 million at $3.40 per share in January of last year.

Japan Oil and Gas National Corporation ( or “JOGMEC”) as well as Pan Pacific Copper Company Ltd. are both NGEx’s project partners for these world-class base metals projects.  NGEx is the 60% operator with JOGMEC and Pan Pacific holding 60% interests in the projects.  Pan Pacific owns 75% of the Caserones Copper and Molybdenum project located 10km north of Los Helados and had a price tag of $3 billion.

Read: NGEx Intersects 0.63% Copper Equivalent Over 340 Metres at Josemaria and
Provides General Exploration Update for Argentina Projects