Well the past quarter has been quite active for CMC, both in terms of work and market activity.
We continue to have good news from our 2020 exploration activities and we also acquired three new properties. In this edition, I will talk about these new acquisitions, the significance of the contract with Red Cloud Securities Inc. and our plans for the foreseeable future.
We acquired two gold properties in Newfoundland – Bridal Veil and Terra Nova. The province is a hotbed of exploration activity stemming from the success of Marathon Gold’s Valentine Lake property and Newfound Gold’s Queensway Project in central Newfoundland. Both Bridal Veil and Terra Nova properties are in close proximity to the Queensway Project that has recently announced significant gold intersections.
We also acquired the properties in Newfoundland for other reasons as follows:
- Expanding Seasonality: the exploration season in Yukon is 3-4 months, in Newfoundland it is 8-9 months. Therefore, we can start exploring earlier and end later providing news in the shoulder times when it is more challenging and expensive to work at Silver Hart. This will provide us with more opportunities to provide news throughout the year
- Supportive Jurisdiction: Newfoundland is a great jurisdiction to work in. Permitting timelines are generally short and the province is highly supportive of exploration and mining and has a reasonable regulatory environment
- Diversification of our Portfolio: exposure to gold plays at a reasonable cost
- Properties of Merit: Both properties already have good mineral occurrences with attractive grades of precious and base metals and are relatively unexplored
- Good Accessibility: Bridal Veil is adjacent to the Trans Canada Highway and Terra Nova is accessible via forest roads and trails
We also acquired Rancheria South. In my opinion this is our most exciting acquisition for several reasons:
- Expanded Position in the Rancheria Silver District: now have 3 properties in this district, approximately tripling our holdings from 2017 hectares to 6000 hectares
- Proximity to the Silvertip Mine and Mill Complex owned by Coeur Mining: the property is located off of the access road to the Silvertip Mine and is approximately 15 kilometers north of Coeur’s mine and mill complex. Coeur have signalled an intent to expand and enhance the mill at Silvertip and resume operations by 2022 and we hope they will be receptive to new sources of ore feed
- Property of Significant Merit: the property has several very promising mineral showings. In 1979, United Keno Hill Mines had defined a historic resource of 36,287 tonnes grading 427.2 g/t silver, 14.95% lead and 20.78% lead
(Note: A Qualified Person has not done sufficient work to classify the historical estimates regarding the Rancheria South Property as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves)
Also in 1979, a 14 tonne bulk sample produced 532.01 g/t silver, 1.3 g/t gold, 0.16% copper, 29.1% lead and 13.9% zinc. (Source: BC Minfile – Switchback 104O 001);
- Supportive Jurisdiction: in the past decade British Columbia has approved several mine developments that are now operating and has a reasonable and transparent regulatory environment. Permitting timelines are better than in Yukon
- The Right Geological and Geophysical Characteristics: the known geology and geophysics share many of the characteristics of Silver Hart, Blue Heaven and Silvertip and of our target deposit types – high grade silver-lead-zinc veins, carbonate replacement deposits, and skarns…
- Reasonable Cost: An all share deal with low exploration expenditure requirements
As you all know, the markets have also been quite volatile lately. With impacts from COVID, the Presidential election in the US, and changing international trade relations, it has been an interesting time for commodity markets. However, a majority of market economists and commodity analysts tend to all agree that the future for precious and base metal markets is highly positive. In 2020, silver has been outperforming gold and due to its wide amount of industrial uses it is expected to perform well when global economies start to return to the “new normal.” At the same time, base metals are of significant importance to our project economics and are starting to improve nicely and should continue on a positive trend as we enter the “new normal”.
|Spot Price June, 19 2020||Spot Price Nov 20, 2020||Change (%)|
|Gold||$1,889.14 (USD)/oz||$1,860.20 (USD)/oz||-2.6%|
|Silver||$17.60 (USD)/oz||$25.29 (USD)/oz||+43.6%|
|Copper||$2.61 (USD)/lb||$3.54 (USD)/lb||+35.6%|
And we recently announced a contract with Red Cloud Securities. Red Cloud is a Toronto-based firm that provides assistance to mineral exploration and mining companies in accessing capital markets and enhancing their corporate profile. This is a very credible firm that approached us but then subjected us to their own due diligence. We had to prove to them our merit as a strong company with good properties with a sound vision for growth before we could become eligible to be a client of theirs. In turn our due diligence of them proved to us that we would be in good hands with Red Cloud. They will start working with us in January on such initiatives as creating vide content for their exclusive Red Cloud TV, organizing a webinar, administering “roadshows”, drafting traditional marketing materials and helping to manage our social media. We need this help as our visibility in the market is well below average and to effectively grow we need to get our story out to the investment and mining communities.
Finally, a personal comment. For those of you who track the sale of shares by management, I sold some shares in a brief period a month or so ago (prior to the recent price increased) when I was able to in the market as most of the time I am blacked out. I did this to exercise warrants providing cash to our treasury. I have actually increased my position and remain one of the largest individual shareholders in the Company. I also have participated in the recent private placement and bought some shares in the open market. I remain very “hands on” with our operations having spent the entire summer in Yukon and plan to continue to operate in that manner in the future, balancing my field activities with marketing and promotion of the Company.
The Silver Hart Project (including Blue Heaven) will continue to be our cornerstone project. In 2021 we hope to conduct a significant drill program with the goal to increase resources. Over the winter we will continue our efforts to compile historical exploration data on our projects to ensure that the design of our exploration programs utilizes the most up-to-date information and builds on successful past exploration efforts. Also, we intend to apply for another grant to continue upgrading the Silver Hart access road and file for exploration permits at Blue Heaven, Rancheria, Bridal Veil and Terra Nova. As we draw closer to the exploration season I hope to provide further details on our proposed exploration activities for 2021.
We are constantly improving our website and have recently added a lot of information on our properties to it. Check it out at www.cmcmetals.ca. We also have a new fact sheet and will be soon posting a new corporate presentation. In Q1 2021 we will initiate a social media marketing campaign and start to engage with market analysts, brokers sand newsletter writers. We expect this will serve to enhance shareholder value.
Please feel free to contact me at anytime at email@example.com or leave a message with your phone number (and email preferably) and I will do my best to get back to you within 24 hours.
And I wish you and your family a very merry Xmas and Prosperous and Happy New Year.