Investment and Drilling Success For Canada's Junior Mining Stocks

By Staff Writer / August 30, 2019 / Article Link

Canadian junior miners produced a steady stream of news this week as a string of deals helped fund and launch projects across the country and beyond.


Sable Resources (TSX-V: SAE), the junior grassroots explorer focused on the discovery of new precious metal projects through systematic exploration in endowed terranes located in favourable, established mining jurisdictions, can look forward to four years of fully-funded exploration after a tie-up with Osisko Gold Royalties (TSX: OR) worth up to $12.6 million.


Osisko is taking a 9.86% stake for $2.08m in the junior explorer, while also entering into a royalty purchase agreement that will enable Osisko to acquire a 1% net smelter return royalty (NSR) on Sable’s properties in Mexico for $5m. The royalty will encompass any other properties Sable acquires in Mexico over a four-year period.


Osisko will have the right to acquire an additional 1% NSR for $5.5 million on minerals produced from the junior’s Mexican operations, and gets first refusal over any royalties and streams on Sable properties. Sables' main focus is developing their large portfolio of new projects to resource stage utilizing their Upper Level Epithermal Strategy. The drill projects Don Julio, Margarita, Tulox, Vinata and El Escape lead this strategy, backed by a substantial early stage project pipeline in Argentina, Mexico, Peru and Canada.


Vancouver-based Artemis Gold also secured funding for its explorations efforts this week. The company raised C$32.6 million through a ’best efforts non-brokered private placement’, issuing 36.3 million units at a price of $0.90 per unit. It said it expects to use the net proceeds towards funding further exploration of its GK Property in Northwestern British Columbia, to identify and finance further growth and development opportunities, and for general working capital.


In further Canadian mining news, IsoEnergy (TSX-V: ISO) provided an update on its recently completed summer drilling program on the Hurricane zone at the Larocque East property in the Eastern Athabasca Basin of Saskatchewan. Highlights include intersections of strong radioactivity in several holes, plus the intersection of mineralization on an aggressive 250m step-out to the east.  Additionally, interpretation of new DC-Resistivity data has identified new target areas along-strike to the east of the Hurricane zone. 


IsoEnergy chief executive Craig Parry said: “With the zone now extending at least 500m along-strike, Hurricane is the most exciting recent uranium discovery in the Athabasca basin. Additional drilling to evaluate the size of the system is clearly warranted, especially considering the results of our DC-Resistivity geophysical survey. In addition to the positive results on the Hurricane deposit I am highly encouraged by the results of our eastern most hole which suggests that the newly defined strong resistivity anomaly at the east end of the Hurricane host conductor has further potential.”


Meanwhile, junior gold miners continued to be boosted by the price of the yellow metal itself, which has now established a good three-month uptrend and hit new highs again mid-week. However, in a sign that perhaps some safe haven seekers are worried about higher prices, it was silver that gained the most attention in recent days, hitting new two-year highs.


Writing on Kitco, Jim Wyckhof said: “December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating three-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce.”