news mining

A flurry of positive news releases from mining companies this morning. Here are five that caught my eye with a brief comment on each.

Klondex Mines (KDX:TSX) - Klondex released updated mineral reserves at the Fire Creek Project and Midas Mine. Fire Creek has proven and probable reserves of 238,700 ounces at 1.285 ounces per ton. Fire Creek is one of the highest grade mines in the world which leads to low all in costs and terrific margins. Current reserves show a 3.8 year mine life but management is confident in expanding reserves with ongoing exploration and development programs. Midas reserves sit at 91,700 proven and probable of .378 ounces per ton material. This give Midas a 2.8 year mine life which is a large increase compared to initial estimates of mine depletion in 2015 when the mine was purchased in 2014 from Newmont. Interesting to see that Klondex used $1000 gold and $15.38 silver as metal prices when valuing the reserves. Many mining companies are using much higher prices kudos to KDX management for being conservative.

Sandstorm Gold (SSL:TSX) - Sandstorm has announced 2014 production of 44,821 AU eq ounces which meets guidance for the year. 2015 will see a drop in production as estimates are for between 36,000-44,000 ounces AU eq ounces. At the end of 2014, Sandstorm held $90 million in cash and a $100 million dollar credit facility. This provides plenty of capital available in 2015 to acquire new deals. An update on Metanor Resources and Luna Gold two companies which SSL has deals with was also provided in the update.

Starcore International Mines (SAM:TSX) -  Starcore has a new investor in Eric Sprott who purchased 21.65 million shares giving him 14.25% percent ownership. Mr. Sprott has recently been pulling back in his day to day duties at Sprott the firm he took public in 2010.  Starcore has recently picked up the assets of Creston Moly for $2 million which will diversify the company from the small gold-silver mine it operates in Mexico.

Orex Minerals - (REX:TSXV) - Orex has agreed to terms with Agnico Eagle to sell a 55% interest in the Barsele gold project in Sweden.  Agnico will pay $10 million to Orex and spend $7 million  in exploration costs over the next three years. Barsele has a 1.1 million ounce resource (indicated+inferred) with upside potential with further drilling. Management at Orex owns 19% of the stock which would be considered high for a junior miner.

Cordoba Minerals - (CDB:TSXV) - Colombian junior explorer Cordoba Minerals is out with drill results from the San Matias project. The best hole was SMDDH012 intersecting 200.1 metres of 0.66% copper equivalent mineralization.  Sampling and surveying has identified several promising targets on the rest of the large property.

Related: Cordoba drills Colombia's next Copper-Gold porphyry belt

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This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.