FCM Mining News, 14 May 2019

$EQXFF : Equinox Pours First Gold at its Aurizona Gold Mine and Receives License to Operate [LINK]

$MUX : Fatality at the Gold Bar Mine, Nevada [LINK]

$TSRMF : Treasury Metal’s Weebigee Project is reporting High-Grade Gold Discovery. “The drilling confirms the highly prospective gold targets in the area…” -Greg Ferron [LINK]

$VITFF : Victoria Gold Corp.’s Eagle Mine Construction is 90% Complete. The Company is currently targeting a first gold pour early in Q4 2019. [LINK]

FCM Mining News, 25 April 2019

$SBGL : Sibanye-Stillwater revises offer for Lonmin. Sibanye is now offering $291.49 Million to buy Lonmin, lower than price offered in late 2017. [LINK]

$DYLLF : Deep Yellow reports encouraging drilling results on EPL3497 where new continuous mineralisation has been identified in the Tumas 1 East palaeochannel area along Tributary 5. Drilling also delineated continuous uranium mineralisation on EPL3496 in the Tumas Central area to the west of Tumas 3. [LINK]

$VGZ : Vista Gold Corp. Receives Second $1.5 Million Guadalupe de los Reyes Option Payment from Minera Alamos. [LINK]

$SSPXF : Sandspring rethinks Toroparu in Guyana. Sandspring Resources is putting the finishing touches on a PEA for its Toroparu gold project in Guyana that rescopes the project’s PFS, and includes a third gold pit. It aims to table the study in a couple of months. [LINK]

FCM Mining News, 20 April 2019

$SBGL : Sibanye-Stillwater and AMCU Conclude 5-Month Gold Strike. All employees will be notified to report for work as per a build-up schedule. [LINK]

$PZG : Paramount Gold Nevada Closes Royalty Agreement with Franco-Nevada on Sleeper Gold Project. Royalty Agreement = 2% NSR. [LINK]

$AAU : Lower Court in Mexico Rules on Constitutionality of Mexican Mineral Title System and Former Claims Held by Almaden. Almaden’s current claims covering the Ixtaca deposit are NOT the subject of this court decision. Almaden submitted its environmental permit for the Ixtaca Project earlier this year and continues to advance Ixtaca towards production. [LINK]

$LRTNF : Pure Gold Mining — FCM Independent Stock Valuation Analysis

Base Case = $1,400
Flagship Project = Madsen, Red Lake, Ontario, Canada
Fully Diluted Shares = 289,300,000
Fully Diluted Market Cap (25 March 2019) = U.S. $127,292,000
Resource Base (Probable Reserves: Madsen) = 1 Mozs
Resource Base (Indicated Resource: Madsen+) = 2,060,000 ozs
Head Grade = 9.0 g/t
LOM = 12 Years
Average Annual Production = 90,000 ozs
AISC = U.S. $787/oz
CapEx = U.S. $70,807,804
Capital Intensity = U.S. $71/oz
Cost Structure = 60%

Market Cap Valuation per Probable Resource Ounce = U.S. $127/oz
Market Cap Valuation per Indicated Resource Ounce = U.S. $62/oz

90% and 95% discounts respectively to spot gold. The valuation of Pure Gold’s Resources (Inclusive of Reserves) is still fairly low (U.S. $62/oz). At higher gold prices ($1,400+), considerable appreciation of value is possible.

Share Price Valuation by Resources in the Ground (Indicated) = 0.007 ozs

Were there fewer shares or more ounces, Pure Gold would be valued higher, but keep in mind the spectacular grade of Madsen, as well as the relative unimportance of this metric.

Resource Valuation as a Percentage of Market Cap (Indicated) = 5%

The Market Cap is valued at ~5% of the the value of the resources in the ground. This is low and bodes well for Pure Gold’s Market Cap growth.

Discount to After-Tax NPV @ $1,400 = ~60%
NET Cash Flow (LOM) = U.S. $591,232,196
Future Cash Flow Multiple = 4.6
Future Market Cap Growth = 364%
Projected Market Cap = U.S. $590,172,000

Proprietary Stock Valuations

Projected Book Value per Share = U.S. $2.04/sh.
PMCV15 = U.S. $1.49/sh.
PMCV10 = U.S. $1.00/sh.
TAC (Reserves) = U.S. $985,000,000 U.S. $3.33/sh.
TAC (Indicated) = U.S. $1,819,309,600 U.S. $6.15/sh.
TAC15 (Indicated) = U.S. $272,896,440 or U.S. $0.92/sh.

Goldmining Inc. — Yellowknife Gold Project Revised Assumptions

Assumed Gold Price = $1,500 Au
Estimated AISC = $900/oz.
Resource Estimate (Inc. 50% of Inferred) = 1,428,500 ozs
Metallurgical Recovery = 90%
Gross Revenue = $1,928,475,000
Pre-Tax Operating Profit = $771,390,000
NWT Mining Tax (15%) = ($115,708,500)
Income Tax (26.5%) = ($204,418,350)
After-Tax Cash Flow (LoM) = $451,263,150
Projected Value of Project = U.S. $2.91/sh.

Based upon updated mineral resource estimate prepared by SRK Consulting.