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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@JamesKwantes$SMD prospecting and drilling primarily to generate interest for the properties. And yes, it's more of an investment fund. But large land positions around every single Yukon project that the majors have bought into in the past year - $G's Coffee, $AEM and $WGO, $ABX and $ATC (which they own 8% plus of) and Newmont/ $GSR. Also $TG is a chance for retail shareholders to get in on a promising exploreco out of the gate, which doesn't happen too often. Usually that's the realm of insiders and friends. Obviously, I'm long and biased #newbies#hotpick
anonymousCanaccord Morning Coffee - $AEM$OOO - Otis Gold* (OOO : TSX-V : $0.39)
A NEW STORY TO THE MORNING COFFEE. Shares of Otis Gold traded heavily last Friday and got us here at the Morning Coffee interested in the story. Otis has a 100% ownership interest in four gold projects in Idaho. Its flagship, the Kilgore Gold Project, is an advanced-stage open pit, heap leach low sulphidation epithermal gold deposit that contains a NI 43-101 compliant Indicated resource estimate of 520,000 oz Au @ 0.59 g/t and Indicated resource estimate of 300,000 oz Au @ 0.46 g/t. Subsequent to the current resource estimate, approximately 15,000 metres of additional drilling has been completed that will be reflected in a new resource estimate. According to Otis’ website, significant potential exists to increase the size and grade of the deposit as well as discover additional targets within the 8,700 acre claim area. No royalties or other encumbrances exist at Kilgore. The company has also caught the attention of a major miner, namely Agnico Eagle Mines (AEM), which recently invested over $5M in Otis at $0.35 per share. Agnico now owns just under 10% of the company with the proceeds expected to be put towards exploration at Kilgore, where Otis is currently permitting 27 drill stations and envisions drilling 8,000 metres this year among other studies.
@Samson@LucTenHave Regarding $pa's management, I am not sure. I used to hold shares of SOL. While the company was sold to $AEM, I think the price tag and the timing was a little poor and I don't think many shareholders made money
@dirkdigglerThis could be a repeat of Gold Eagle: $AEM took a large position in GE's 'Bruce Channel' deposit which was soon followed by an all-out takeover by $G. $NEM's move on $CNL might just prompt a similar reaction from a resource starved predator lurking in the shadows. Time to come into the light ya big bully!
@ivopashovThere is some speculation that $AEM can outbid $ELD for $ICG. What i am thinking is something else. Why would $AEM buy $ICG for over CAD $ 590 mln when they have $AZX comfortably sitting there in the middle of the action with CAD $ 40 mln CAP (15 times less)? Yes, $ICG has the mill but $AEM does not need it. That's why they bought Akasaba West right in the middle of $AZX property, to utilize their existing mills. "We acquired the Akasaba West gold-copper deposit in 2014. Located less than 30 km from Goldex, the deposit could create flexibility and synergies for the Company's operations in the Abitibi region by utilizing extra milling capacity at both Goldex and LaRonde, while reducing our overall costs." They have more mills than they need already. What is more, $AZX mineralization is no stranger to $AEM. Here is what $AEM say about the mineralization of Goldex property which is just a few km away: "Goldex is a large, relatively low-grade body defined by the intensity of stockwork veins and gold grades rather than by individual veins." And another thing, many people cite here the hundreds of millions of shares that $AZX has. However, how many shares does $ICG have and was that a problem for a takeover bid?
@alexisa@ivopashov Ok for $AZX. Why wouldn't $AEM want to buy out $RDS closer to their Laronde mill instead? Smaller land package but still host a decent resource around 6.5 g/t Au. Based on their recent drill results seems like it's groing...I know they have 2 drills active at O'Brien and only 107M shares outstanding.
@ivopashovWhat is not to like about $GQC? They have the advanced Romero project that bears ~ C$260 mln NPV after tax with 28% IRR @ $1300 gold. Still very economical with $1200 gold. So downside should be limited. On the other hand, it seems that the valuable land package they are sitting on is starting to pay off with Cachimbo emerging as a second discovery. When you have discoveries one close to the other, Ozs in the ground immediately jump as you realize economies of scale and costs go down. So i agree with @LucTenHave that $AEM are in for the exploration upside. They like to operate many deposits within a few km stretch. Just see their Quebec operations. What is more $AEM is a very high quality company and great project validator.
@ekimNIRB feeling a bit overwhelmed? This is from a document a couple of days ago:
"The project proposal is currently with the Board for its decision-making; however due to the high volume of screenings currently before the Board and limited availability resulting from continued board member vacancies, additional time is required to complete the decision-making for this file." $AEM$SBB#Maryriver$NXN$PGD
anonymousThis is an interesting AEM 9.9% target, as just posted on OOO site: PI Financial INITIATING COVERAGE June 15, 2017 OTIS GOLD CORP. (V-OOO) $0.29 RATING: BUY TARGET: $0.60 (initiating) Kilgore: No Small Potatoes in Idaho Otis Gold Corp. is a Canadian based exploration company with four projects in Idaho, including its flagship Kilgore project and the exploration stage Oakley project. The 100% owned Kilgore Project is an open pit, heap leach gold project with a NI 43-101 compliant global (indicated+inferred) resource estimate (2012) of 820,000 ozs at 0.54 g/t Au. The current resource estimate does not include drill results from 2012 to 2016. Many of these holes encountered mineralization in a previously untested formation (Aspen Formation). Mineralization in this formation is in places higher grade than the overlying volcanics. Results from this drilling have included: 94.5 metres grading 4.21g/t Au, 30.5 metres grading 5.37 g/t Au and 85.4 metres grading 2.5g/t Au. For drilling Otis conducted in 2015 and 2016, we calculate an average mineralized intercept of 65m at a weighted average grade of 1.57g/t (27 holes), well above the grade of the current resource estimate. An updated resource is expected in the third quarter of 2017 which will include the drilling conducted since 2012. A minimum of 8,000m of drilling is planned at Kilgore to commence in late-July with the objective of following up on the 2016 program that consisted of drilling, ground geophysical surveys and soil geochemistry. Agnico Eagle acquired 9.95% (14.42m shares) of Otis through a private placement on Feb. 24, 2017 at a price of $0.35 per common share for gross proceeds of C$5.05m. The Kilgore project is at an inflection point. Recent drilling success, including positive results in the Aspen Formation, we feel are set to increase the project’s resource base materially with the upcoming resource update (Q317). In addition, these previous results, combined with drilling scheduled to start at the project in July, in our view has the potential to increase the global project resource base to ~1m ozs at higher grades than current NI 43-101 resources (we model 0.82g/t in ourDCF model, versus 0.54g/t in current global resources). Over the next year, we expect that Kilgore will transition towards being viewed by investors as a low capital heap leach project. Given the project’s location in Idaho and recent M&A activity in the sector (Exeter, Integra, IAMGOLD’s Cote project), we expect this advancement of Kilgore to result in positive share price performance for Otis. We are initiating coverage of Otis Gold Corp. with a BUY rating and C$0.60 target price based on our 8% DCF for Kilgore.