Tuesday March 24th Mining Roundup

POSTED ON March 24, 2015 BY James Fraser
CATEGORY Atac Resources, Integra Gold, Sherritt, Stories,

Here are the companies with news out this morning that caught my eye with some additional comments on each.

Atac Resources - (ATC:TSXV) -Atac has announce plans for a phase 1 work program this summer at the Rackla gold project in the Yukon. Phase 1 is estimated at a cost of $3 million US which will be no problem considering a $20 million dollar working capital position as of Feb 23, 2015.

Atac is developing Canada's only Carlin-type gold project on a large 1700 square kilometre land package. The focus has been on two trends Nadaleen (30km) and Rau (20km). The majority of 2015 exploration work is planned for the Nadaleen trend. Drilling will test several areas of the Conrad Zone which had several impressive high grade intercepts in the past such as:

OS-10-001 intersected 65.20 m of 4.65 g/t gold;
OS-12-114 at Conrad Upper Zone intersected 42.93 m of 18.44 g/t gold;
OS-12-116 at Conrad Middle Zone intersected 56.93 m of 4.68 g/t gold;
OS-14-230 at Conrad Lower Zone intersected 42.67 m of 3.03 g/t gold.

Drilling will also test the Anubis Cluster using RAB drilling to test over 20 anomalies.

Atac stock was as high as $10.20 in 2011 and has since fallen all the way to the current price of $0.53. At one point it was the hottest Yukon stock going and hottest stock on the TSX Venture. Most Yukon plays have fallen on hard times with the gold price drop and Atac is one of them. With the current gold price investors do not have an appetite for the risk of the Yukon currently with the limited infrastructure, short work seasons, and costly exploration.

Atac still has $20 million in working capital so they will be able to weather any prolonged continuation of the down turn seen in junior resource stocks. I personally think the market would like to see a resource estimate out of Atac to see what kind of reserves they have. No word yet from management when a resource estimate will be completed for shareholders.

Graham Downs, Atac's CEO, says, "Atac remains committed to advancing the Rackla Gold Project in a cost-efficient and accretive manner year over year. Conrad continues to deliver strong results from multiple zones and exploration in 2015 will focus on testing the area between the Upper and Middle zones while exploring the newly discovered Conrad Lower Zone. The Anubis Cluster will benefit from low-cost RAB drilling which we believe will help us vector in on the bedrock source of gold mineralization within the 18 sq/km area and develop targets for future diamond drilling."

Significant shareholders do include Tocqueville (9.7%), Strategic Metals (SMD:TSXV) (8.6%), and Agnico Eagle (8.1%).

Read: ATAC Resources Ltd. Announces 2015 Exploration Program at the Rackla Gold Project, Yukon

Integra Gold (ICG:TSX) - One of the busiest junior mining companies over the past 12 months continues to be work hard at the Lamaque Project in Quebec. A PEA released in January showed robust economics with a pre tax IRR of 77% and NPV (5%) of C$184.3 million using a $1175 US gold price. The market showed a little bit of a reaction to the PEA but not as much as some investors expected. I figure two main reasons for this.

1. The current state of the junior mining market.

2. Investors would like to see the project get bigger as some investors are scared off of small mines and do not believe they are legitimate takeover candidates.

Integra can not control the junior mining market but today's news helps a little bit with point two. As of right now according to the PEA Integra had a mine life of only 4.5 years. Integra has released the first set of drill assays from the 50,000 m 2015 winter drill program. The big news is that the drilling so far has confirmed extensions up to 330 metres down dip to the south of the Triangle deposit with all zones remaining open laterally and at depth. This is positive as it shows the deposit is increasing in size.

"With eight drill rigs on site and 20,000 metres of drilling already completed in 2015, Integra is one of the most active exploration companies in the entire industry. Results today confirm the value in this drilling, with step-out holes hundreds of metres away from the Triangle deposit intersecting high-grade gold mineralization over sizable widths. The Triangle deposit remains open to the east, west, south and at depth and through ongoing exploration efforts continues to demonstrate its ability to grow," commented company president and chief executive officer, Stephen de Jong. "In addition to the success at the Triangle zone, results of the condemnation drill program at the Parallel deposit two kilometres to the north demonstrate the potential for additional discoveries outside of known resource areas, yet still in close proximity to proposed development infrastructure."

ICG stock is trading up 4.8% this morning last at $0.325 not far from the 52 week high of $0.355.

Read: Integra Gold Intersects 14.8 g/t Gold Over 10 metres, 11.5 g/t Gold Over 8 metres in Step-Out Drilling up to 330 metres from Triangle Zone

Sherritt International Corp (S:TSX) - Sherritt has Steve Wood appointed a new executive vice president and chief operating officer of the company effective April 27, 2015. Mr. Wood comes over from his current position of president and CEO of ArcelorMittal Mining Canada. Mr. Wood I am sure will be working hard on continuing the ramp up of the new Ambatovy nickel mine in Madagascar up to full production. Workers at the mine went on strike on March 23rd.

"We are excited to welcome Steve to Sherritt," said David Pathe, President and CEO. "He brings an excellent track record in continuous improvement and innovation in both operations and project management."

Sherritt stock price is close to a 52 week low and has been cut in half since August so investors will be eager to see what Mr. Wood can deliver.

Read: Sherritt Announces Appointment of Chief Operating Officer

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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.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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