Top mining stories of the day – Torex Gold, Calibre Mining, and Terrax Minerals

POSTED ON April 01, 2015 BY James Fraser
CATEGORY Calibre Mining, Stories, TerraX Minerals, Torex Gold,

Analysts gather during a 2014 Torex Gold site visit (Travis McPherson photo)

A look at my favourite mining news releases out this morning.

Torex Gold - (TXG:TSX) - Torex Gold released 2014 year end financial results this morning. Torex is a single asset company who owns the El Limon Guajes project in the Guerrero Gold Belt in Mexico which was purchased from Teck 5 years ago. The mine is in construction with first gold pour expected by the end of this year.

The project shows robust economics with a 19.4% after tax IRR using $1276 gold helped tremendously by having a head grade of 2.61 g/t. The plan is to ramp up El Limon and then build a second mine. Torex has already found a second deposit (Media Luna) which has an inferred resource of 5.8M ounces of gold equivalent.

Torex has had a tough time in the last couple months in the market as violence issues in Mexico continue to scare investors. Social issues have caused a slight delay in production from Q3 to Q4.The social issues in my view are a short term hiccup and create a buying opportunity.

Everything appears to be moving along as planned except for the slight delay and Torex is fully financed. Once Torex gets into production I believe a significant re rating of the stock will occur or a takeover could materialize.

Read: Torex Reports Year End Results

Calibre Mining (CXB:TSXV) - Calibre Mining and JV partner Iamgold have released drill results from the Eastern Borosi gold-silver project in Nicaragua. Iamgold is financing the exploration work and can earn up to a 70% interest in the property. To earn the full 70% Iamgold would be required to pay Calibre $900,000 in cash and invest $10 million in exploration work over several years.

Diamond drilling on multiple veins in the La Sorpresa gold-silver vein system has discovered three new gold-silver mineralized shoots including: 4.10 m @ 8.93 g/t Gold and 57.4 g/t Silver (Cadillac), 1.40 m @ 5.71 g/t Gold and 15.7 g/t Silver (Jaguar), 1.40 m @ 9.70 g/t Gold and 98.0 g/t Silver (Cadillac), and 3.17 m @ 2.41 g/t Gold and 32.9 g/t Silver (Mercedes).

President and CEO, Greg Smith stated: "The results for the first few drill holes at la Sorpresa gold-silver vein system are a tremendous start to the 2015 drilling program. We are particularly pleased that we have been able to discover another high grade gold zone notably in the La Sorpresa Target where no previous drilling had occurred. With only 20% of the known La Sorpresa vein system having been tested by shallow drilling, Calibre continues to be encouraged by the potential for additional new gold/silver discoveries on the Eastern Borosi Project

The Eastern Borosi Project includes the Riscos de Oro and La Luna NI 43-101 Inferred Mineral Resources which total 4.70 million tonnes grading 2.31 g/t Au and 34.99 g/t Ag containing 350,000 ounces of gold and 5.29 million ounces of silver. Both zones are open for potential expansion.

Drilling continues on the project with 5500m planned with a $1.5 million dollar budget.

Calibre is a prospect generator with three partners scheduled to invest up to $12 million on projects in the next 3 years. The stock has had a terrific move since April last year going from 3 cent to the current level of 14 cents after making some high grade discoveries.

Drilling is also set to commence this month (April) on the 100% owned Montes de Oro Target that has an exciting new discovery of 52.3 metres grading 7.1 g/t gold and 27.5 metres grading 4.93 g/t gold.

Major shareholders include B2Gold (13.5%), Pierre Lassonde (11.2%), and management (9%).

Read: Calibre Drilling Discovers New High Grade Gold Veins in the La Sorpresa Zone, Eastern Borosi Project, Nicaragua including 4.10 Metres Grading 8.93 g/t Gold and 57.4 g/t Silver

Terrax Minerals - (TXR:TSXV) - Another set of assay results have been released from the 2015 winter drill program at the Yellowknife City gold project. Drilling continues to intersect high grade mineralization at the project.Management is promoting the project as the last high grade undeveloped gold camp in Canada.

Results included:

Central Shoot -Five metres at 5.29 grams per tonne (g/t) gold (Au), inclusive of three m at 7.98 g/t Au, in hole TCR15-019.
Crestaurum Northern Extension -8.86 m at 2.86 g/t Au, inclusive of two m at 10.24 g/t Au, in hole TCR15-025.

Positive drill results from TCR15-025 where encouraging as this hole was drilled in an untested area along a 400-metre extension of the Crestaurum zone northeast of the North Extension shoot.

The project covers 15 sq km and is located in the right location in close proximity to the 14.2 million ounce past producing Giant and Con mines at 16 g/t gold.

Ideally investors would like to see longer intercepts of mineralization.The stock is very thinly traded with only 54 million shares outstanding and has picked up a little bit this year after a rise in the beginning of 2014 and then a steady decline.

Read: TerraX drills 5.00 m @ 5.29 g/t Au, inclusive of 3.00 m @ 7.98 g/t Au at Yellowknife City Gold

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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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