Photo: Dalradian Resources

Photo: Dalradian Resources

Here are my top news releases from this morning with some additional comments.

Dalradian - (DNA:TSX) - Dalradian is a favourite stock of many analysts and newsletter writers as it is a common name mentioned when discussing potential takeover candidates in the gold space. This morning a 20,000 metre drill program commenced at the Curraghinalt gold project in Northern Ireland. The drill program will be infill drilling to support a previous feasibility study.

The reason why analysts and writers have been big fans of DNA stock is because the PEA released (Oct 2014) shows world class economics of a 36.2% IRR after tax using $1200 US gold. It is hard to find a gold project with better economics. Dalradian is helped by having high grade gold with the average mined grade in the PEA being 9.3 grams per tonne. A lower CAPEX of $249 million also helps as many projects now are much more expensive to build.

Ross Beaty likes what he sees as well investing $11.3 million (90 cents per share) in February to own 9.7% of the company. A $30 million dollar work program is being spent moving the project forward in 2015 including a PFS,EIS, and drilling. A new resource estimate is also expected sometime this summer.

Is DNA a legitimate takeover candidate?

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Read: Dalradian Commences Drilling at the Curraghinalt Gold Project

Related: Ross Beaty's latest junior mining investment

Mirasol Resources - (MRZ:TSXV) - Project generator Mirasol Resources has optioned 75% of the Gorbea belt projects to Yamana Gold (YRI:TSX). The Gorbea belt projects are located in Chile and include 9 projects with the feature projects being Atlas and Titan.

Yamana will have a 45 day period of due diligence before entering into the agreement which is over 7 years.

The first earn-in option to a 51% interest requires a spend commitment of US$10,000,000 and cash payments to Mirasol of US$2,000,000 over four years.

An excellent deal for both parties as Mirasol shareholders will see a substantial amount of work done on the project(s) with a $10 million dollar work program over the next four years.

Stephen Nano, the Chief Executive Officer of Mirasol, stated: "We are pleased that Mirasol have partnered with Yamana which has agreed to commit significant resources to the Gorbea Projects where recent exploration by Mirasol has identified several compelling drill targets at the Atlas and Titan projects."

William Wulftange, Senior Vice President, Exploration of Yamana stated: "This agreement underscores Yamana's commitment to explore and expand our footprint in Chile, focusing on high quality opportunities that can lead to long term growth."

Mirasol is well positioned with $25.6 million (cash and receivables till 2016) to continue to advance projects or look for new opportunities. Current market cap is only $42 million so over 50% of the market cap is in cash. A big win for MRZ came in 2012 when they sold a 49% interest in the Joaquin project to Coeur for $30 million in cash and $30 million in shares.John Tognetti Chairman of Haywood Securities is the largest shareholder and board member of Mirasol.

Read: Mirasol announces joint venture agreement for Gorbea Belt Gold-Silver Projects

Related: Mirasol will deliver high-quality results on high-calibre projects: minefinder Steve Nano

Canadian Zinc (CZN:TSX) -Canadian Zinc has released a new resource estimate on the Prairie Creek project in the Northwest Territories.  Additional drilling is on going with the objective of converting inferred mineral resources to the indicated category. A PFS is expected this year which will be a major catalyst for shareholders.

New mineral resource highlights:

  • Total measured and indicated mineral resource tonnages increased to 6.5 million tonnes at combined grade of approximately 20 per cent lead and zinc with 150 grams per tonne silver.
  • Total inferred resource tonnages increased by 13 per cent to 7.1 million tonnes grading 9.6 per cent lead, 11.7 per cent zinc, 177 grams per tonne silver from 6.2 million tonnes grading 11.5 per cent lead, 14.5 per cent zinc, 229 grams per tonne silver.

The resource definitely got bigger which is good news for CZN shareholders but investors will have to wait for a PFS to get a better understanding of the how the improved resource will affect the economics of the project. The project is fully permitted and a 2012 feasibility study showed good economics with a 40.4% IRR. The intial Capex was estimated at $193 million which is fairly reasonable. Sandstorm Gold does have a 1.2% NSR for $10 million a couple years ago as part of Sandstorm Metals & Energy deal.

Read: Canadian Zinc releases Prairie Creek M+I resource

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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.