A look at a few of the mining press releases that caught my attention this morning.
Dalradian Resources – (DNA:TSX) – Dalradian has provided a corporate update as well as financials for the second quarter. A strong working capital position of ~$33.5 million at June 30th remains as Dalradian proceeds with development work at the Curraghinalt gold deposit in Northern Ireland.
Management had originally planned for a PFS to be released in late 2015 but has now transitioned to a Feasibility Study (FS). If the FS and EIA are positive a planning application is scheduled to be submitted in Q3 2016.
The change in plans leads to a higher budget by $14-$20 million which will require DNA to do a financing in the future.
The Curraghinalt gold deposit is a high grade resource of ~3.5 million gold ounces (in all categories) that remains open in all directions. The project has strong economics and is one of the top projects worldwide when looking for high IRR and low capex.
Corporate and operational highlights of Q2 2015 and subsequent period
- Substantial completion of surface works for the Underground Program;
- Receipt of the explosives storage licence;
- Six of 12 underground drill bays completed and development on mineralized material in the T-17 and No. 1 veins is ongoing;
- Completion of approximately 11,000 metres of infill drilling; program expanded to a minimum of 30,000 metres;
- Initial Curraghinalt infill results from 25 drill holes announced, including intersection of 4.40 metres grading 54.84 g/t gold and 5.79 metres grading 7.12 g/t gold;
- PFS: progress with field and laboratory studies on tailings, processing methods, geotechnical and hydrogeology; transitioning to FS — EIA: advancement of desk-top studies and environmental fieldwork;
- Patrick Downey and Jim Rutherford joined the Board of Directors and Patrick Anderson assumed the Chair
11 analysts cover DNA stock with different target prices ranging from $1.10 to a high of $2.25.
The stock has doubled since the end of last October when a PEA came out with a 32% after tax IRR using $1200 gold.
If investors are looking for a high grade development story DNA is probably one of the best stories on the street in my opinion.
One of the most prominent resource investors in the last 20 years Ross Beaty likes what he see purchasing 12.566 million shares earlier this year at 90 cents with a half warrant exercisable at $1.15 per share.
Mission Gold – (MGL:TSXV) – Mission Gold has announced the termination of the Imperial project option agreement with Goldcorp.
Mission Gold was recently formed as a combination between CIC Resources and Delta Gold group. The new company has $9.2 million in working capital with just over 50 million shares outstanding.
The most important part of investing in small junior mining companies is people. The team at Mission has an excellent track record led by legendary mine founder and CEO David Lowell.
Mr. Lowell is arguably the greatest mine finder of all time being credited with 16 large scale discoveries.
The news of terminating the option with Goldcorp is not earth shattering news but I think is important to bring up. While out on a prospecting trip last week I listened to one geologist talk about how people/companies fall in ‘love’ with a project and never move on.
Mr. Lowell has stated that “Three out of a thousand good looking prospects become mines” so the ability to not fall in love with projects and move on if your thesis is not correct should not be under stated.
It will be interesting to watch the team at Mission Gold put the $9.2 million to work in a depressed resource market.
Thanks for reading.
This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.