ALS.TO - Altius Minerals

[linealdin]

Curipamba’s top drill results at 7% copper equivalent stand out far above peer results.

 

Don't get me wrong, those are good results. But they are not the best results worldwide. Just have a look at Ivanhoe Mines Kakula. That's a Tier1 deposit. Or some of the Norilsk deposits. They have both tonnage and grade. However, Curi is a great asset. Just wanted to put it into perspective.

 

Keep it coming linealdin, you provide fantastic information and I really appreciate it.

 

Kargl-Simard’s claim is that Curipamba’s copper equivalent drill results in 2018 rank very high among copper projects worldwide. I believe that is factually correct.

 

Kamoa-Kakula is just under 3% copper. Kargl-Simard says the next resource update will show Curipamba with 5% to 6% copper equivalent.

 

Curipamba is much smaller, of course, and copper equivalent may be a bullshit measure (as opposed to plain old copper percentage). Norilsk is nickel not copper.

 

 

 

 

 

 

[hohi]

Curipamba’s top drill results at 7% copper equivalent stand out far above peer results.

 

Don't get me wrong, those are good results. But they are not the best results worldwide. Just have a look at Ivanhoe Mines Kakula. That's a Tier1 deposit. Or some of the Norilsk deposits. They have both tonnage and grade. However, Curi is a great asset. Just wanted to put it into perspective.

 

Keep it coming linealdin, you provide fantastic information and I really appreciate it.

 

Kargl-Simard’s claim is that Curipamba’s copper equivalent drill results in 2018 rank very high among copper projects worldwide. I believe that is factually correct.

 

Kamoa-Kakula is just under 3% copper. Kargl-Simard says the next resource update will show Curipamba with 5% to 6% copper equivalent.

 

Curipamba is much smaller, of course, and copper equivalent may be a bullshit measure (as opposed to plain old copper percentage). Norilsk is nickel not copper.

 

Kakula will be mined at a 3% cut-off grade. It's about 6% copper, 5.62% to be precise. In the first years they'll mine about 8-10% copper grades if my memory is correct. I mentioned Norilsk because copper equivalent is used a lot here (which makes sense in a VMS deposit). The Norilsk ore bodies are polymetallic as well and contain copper as well.

[linealdin]

Curipamba’s top drill results at 7% copper equivalent stand out far above peer results.

 

Don't get me wrong, those are good results. But they are not the best results worldwide. Just have a look at Ivanhoe Mines Kakula. That's a Tier1 deposit. Or some of the Norilsk deposits. They have both tonnage and grade. However, Curi is a great asset. Just wanted to put it into perspective.

 

Keep it coming linealdin, you provide fantastic information and I really appreciate it.

 

Kargl-Simard’s claim is that Curipamba’s copper equivalent drill results in 2018 rank very high among copper projects worldwide. I believe that is factually correct.

 

Kamoa-Kakula is just under 3% copper. Kargl-Simard says the next resource update will show Curipamba with 5% to 6% copper equivalent.

 

Curipamba is much smaller, of course, and copper equivalent may be a bullshit measure (as opposed to plain old copper percentage). Norilsk is nickel not copper.

 

Kakula will be mined at a 3% cut-off grade. It's about 6% copper, 5.62% to be precise. In the first years they'll mine about 8-10% copper grades if my memory is correct. I mentioned Norilsk because copper equivalent is used a lot here (which makes sense in a VMS deposit). The Norilsk ore bodies are polymetallic as well and contain copper as well.

 

Fair enough. Kamoa-Kakula at the 3% cutoff is 174 million tonnes at 5.62% copper. That’s unbeatable in terms of size. Curipamba in its next resource update might be 12 million tonnes at 5% to 6% copper equivalent. Much, much smaller but possibly higher grade than Kamoa-Kakula. We shall see.

 

I can’t find the copper equivalent grades for Norilsk but they are likely to be in the same territory: elite.

 

The task for Adventus is to get Curipamba above 20 million tonnes. The VMS experts believe the land package could host 20 to 50 million tonnes. It will take a lot of drilling and luck to get there.

[hohi]

I can’t find the copper equivalent grades for Norilsk but they are likely to be in the same territory: elite.

 

I know it's off topic, but you seem interested and it puts some of the results into perspective. Norilsk has many different deposits and Talnakh is by far the biggest, highest grade ore body in the world. One deposit they are ramping up now is Skalisty:

 

58 Mt

2,8% Nickel

3,3% Copper

1,7 g/t Platinum

7,8 g/t Palladium

 

You don't have to be a genius to figure out that this is >6% CuEq. That's why Norilsk produces one tonne of Nickel for negative! 6000-10000 USD. Nobody can compete. It's a good buy btw: 12% dividend. Everybody hates Russia.

 

 

[petec]

If you know Norilsk well, it would be great if you could write it up in a new thread!

[hohi]

If you know Norilsk well, it would be great if you could write it up in a new thread!

 

If there's interest, maybe I will. It's a big company and they are not very transparent sometimes, amongst other things because 3 oligarchs are involved...

[mugwump]

i don't understand the purpose of this

https://ceo.ca/@newswire/adventus-zinc-corporation-appoints-canadian-market

[linealdin]

i don't understand the purpose of this

https://ceo.ca/@newswire/adventus-zinc-corporation-appoints-canadian-market

 

Adding liquidity to their stock. Often there are days with zero volume, then random huge volume days like last Friday.

 

The big strategic investors like Altius, Greenstone, RCF, Wheaton, Salazar and Tognetti haven’t been selling a share at these prices. So it’s been hard for retail investors to buy in or sell out without driving the stock up or down in chunky increments.

 

One path for Adventus is to become a mid-tier base metals producer. Those companies trade in the C$500 million to C$1 billion plus market cap range.

 

The US listing and the Canadian market maker are preparatory steps for the bigger moves ahead (increasing retail investor interest in a development story, construction financing packages which will have an equity component, re-rating as a producer, etc). The plan is for the stock price to go much higher and for the volume to match that rise. Adventus is preparing to be a real player.

[mugwump]

okay- thanks linealdin

[bizaro86]

A competitor in the renewable royalties space is going public via reverse takeover. Interestingly, they have 11 active royalties right now. They are planning a capital raise of $5-$20 MM, so will have a few bucks to bid on new projects.

 

RER is a corporation registered under the Business Corporations Act (British Columbia)

and is based in Vancouver, British Columbia, Canada. RER’s focus is to acquire a

portfolio of long-term renewable energy royalty income streams, mainly from projects

already in operations or in advanced stages of development. RER’s portfolio currently

consists of 11 separate royalties from 473 megawatts of operational and late stage

development projects in Canada, USA (Texas) and Europe. RER’s royalties are based on

gross revenues, with revenues backed by long-term agreements from investment grade

off-takers, and the royalty agreements are typically 20 years in duration. RER’s mandate

is to provide shareholders with (1) a strong growing yield (2) robust capital protection (3)

high rate of growth through re-investment and (4) a sustainable investment focus. RER

has a strong pipeline of projects and management is currently reviewing acquisition

opportunities in Europe, Japan and North America.

 

https://www.investorx.ca/Doc/G3G3PPAS9FB/2018/09/28/baetis-ventures-ltd/material-change-report-english

[linealdin]

A competitor in the renewable royalties space is going public via reverse takeover. Interestingly, they have 11 active royalties right now. They are planning a capital raise of $5-$20 MM, so will have a few bucks to bid on new projects.

 

RER is a corporation registered under the Business Corporations Act (British Columbia)

and is based in Vancouver, British Columbia, Canada. RER’s focus is to acquire a

portfolio of long-term renewable energy royalty income streams, mainly from projects

already in operations or in advanced stages of development. RER’s portfolio currently

consists of 11 separate royalties from 473 megawatts of operational and late stage

development projects in Canada, USA (Texas) and Europe. RER’s royalties are based on

gross revenues, with revenues backed by long-term agreements from investment grade

off-takers, and the royalty agreements are typically 20 years in duration. RER’s mandate

is to provide shareholders with (1) a strong growing yield (2) robust capital protection (3)

high rate of growth through re-investment and (4) a sustainable investment focus. RER

has a strong pipeline of projects and management is currently reviewing acquisition

opportunities in Europe, Japan and North America.

 

https://www.investorx.ca/Doc/G3G3PPAS9FB/2018/09/28/baetis-ventures-ltd/material-change-report-english

 

https://docs.wixstatic.com/ugd/f9767f_c461af2851164a508f4cc4720a579088.pdf

 

See slide 21. Two of RER’s completed deals don’t sound right:

 

Transaction 1: Pay $1.2 million for royalties which will deliver a total C$2.130 million over a fixed 20 year period. What? That’s terrible!

 

Transaction 2: Pay $3.8 million for a total of $6.9 million in royalties over a fixed 20 year period. Huh?

 

No mine life extension optionality. No commodity price optionality.

 

I hope Blue Sky Royalties does much better than those deals or Altius shouldn’t be taking part.

 

The deals above would be fine with no fixed 20 year royalty period. Most of these renewable energy facilities are built to last 50 years (or more with replacement of the turbines or solar cells).

[linealdin]

One measure I read of what makes a worldclass (top 10%) deposit: a size of at least 3.2 million ounces of gold or 500,000 tonnes of copper equivalent for a base metals deposit.

 

Evrim has a chance to get there with Cuale. The target is 3 to 5 million ounces based upon the CSAMT survey. A big enough target for Newmont to buy a position 40% above market price.

 

Adventus might get there, too. If they can establish a resource for the open pit Curipamba project of 10 million tonnes at 5.5% copper equivalent then that’s 550,000 tonnes of copper equivalent. (They have 11.4 million tonnes in indicated and inferred resources right now but some of that is underground mining only).

[bizaro86]

Yeah, the 20 year life makes them uninvestable, imo. But dumb capital competing in the market will make it harder for ALS to get deals done on good terms.

 

Sort of reminds me of input capital. They'll talk about royalty revenue and pay it out as dividends. If they can get the market to value them on dividend yield, maybe they can raise capital way above book, which would be bad for the market, as it would give them an incentive to do bad deals.

[linealdin]

https://ceo.ca/@newsfile/sokoman-iron-mobilizes-rig-1-and-commences-phase-2

 

Sokoman starts drilling. The important part:

 

“A series of approximately 15 m to 25 m spaced bracket and undercut holes will be completed to depths of 250 to 300 metres to establish a strike, dip and/or plunge of the high-grade intercept reported from MH-18-01.”

 

Bracketing and undercutting the discovery hole at very close spacing.

[linealdin]

https://globenewswire.com/news-release/2018/09/27/1577248/0/en/Constantine-Announces-Significantly-Expanded-Mineral-Resource-Estimate-for-the-Palmer-Project-Southeast-Alaska.html

 

Constantine Metals establishes an expanded resource for Palmer. Very good zinc grades. Looks like a future mine to me. Underrated.

 

Palmer has great preliminary economics. They will mine it for US$70 per tonne and sell it for US$200 per tonne. Great margin.

 

Altius bought C$2.1 million in CEM stock but got full warrants (3 million warrants exercisable at C$1) as a sweetener.

[linealdin]

Altius buys back a little under 100K shares in October. SEDI insider filings just up. Most of the purchases in the low $12’s. Highest price paid was C$12.70 on one trade.

 

Share count now around 43 million flat.

[linealdin]

https://www.google.com/amp/s/www.cbc.ca/amp/1.4842789

 

News story about Alderon’s presentation to the Labrador West Chamber of Commerce. Best detail: Tayfun Eldem flanked by Zhou Wei, president of the Canadian division of Hebei Iron and Steel. Hebei being on board is most important.

[linealdin]

LIF hits a 52-week high of C$28.63. Altius position worth C$90.18 million at that level.

 

*

 

https://www.anglopacificgroup.com/wp-content/uploads/2018/08/Anglo-Pacific-Group-4.25-LIORC-stake-purchase1.pdf

 

Useful slide deck by Anglo Pacific Group for their acquisition of 4.25% in LIF. Tons of info.

 

Slide 10 shows a map of the near-mine reserves and resources in blue. All within the current mining lease, near the processing facilities and covered by the LIF 7% royalty. Reserves should last for 25 years, while the resources should last for 37 years (at current mining rates).

 

Slide 9 shows the importance of the IOC dividends LIF is entitled to because of its 15.1% equity position in IOC. In 2017 LIF received C$127 million in royalties and commissions but also received C$77 million in IOC dividends. (Last quarter LIF received a stunning C$59 million in IOC dividends). The 15.1% equity position is very profitable and would be worth a great deal in a sale.

 

 

[linealdin]

https://www.nutrien.com/sites/default/files/2018-09/Nutrien%20Credit%20Suisse%20Presentation.pdf

 

Slide 14 of this presentation shows Nutrien’s thinking on potash prices through the cycle. See the footnotes on that slide.

 

Nutrien averaged US$237 per tonne in H1 2018.

 

Nutrien posits a mid-cycle price of US$437 per tonne (trailing 8-year average).

 

Nutrien suggests peak prices of US$605 per tonne (replacement or incentive price).

 

The price cycles always overshoot. I don’t think this cycle ends without US$800 potash being reached (briefly).

[linealdin]

Rio Tinto let the Goethite Bay claims expire on 4/11/18. C$4.6 million spent on exploration since the farm-out deal was made with Altius 10 years ago. Discovery hole of 279 meters of 30% Fe. Altius had a 3% royalty on the property.

 

Surprising they let Goethite Bay go as a potential satellite deposit for IOC. Rio Tinto just wants to sell IOC and get out of the Canadian iron ore business?

[linealdin]

http://m.miningweekly.com/article/rio-is-hunting-deals-for-beautiful-diamonds-unit-2018-10-04/rep_id:3861

 

Diamond market outlook. DeBeers and Rio Tinto say they are hunting for new diamond projects to replace their aging mines. Production will peak in the coming years and the market will be undersupplied.

 

This macro situation is why DeBeers and other diamond majors have put seed capital into Altius’s Adia Resources. Perfect timing for the Lynx project.

[linealdin]

https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4wy1yBGZpfpske92GA%3D%3D

 

Great Emu NL presentation. Vidalita (6000 meters drilled this year) represents 1 of 7 target areas on their large land package. Emu is raising money to drill another 12K meters starting in December 2018 targeting Peon 4, Jotahues, and Vidalota D (all Altius royalty land).

 

Peon 4 is a priority target because of discovery by Anglo American to the northeast and on trend (see slide 12 for Anglo American property location).

 

Slide 15 shows that multiple large known deposit footprints from the Maricunga belt could fit in the Emu’s 136 square km land package. Emu is surrounded by majors.

 

Altius and its Chilean partners set to receive US$100K and 2.5 million Emu shares if Emu elects to continue the option agreement past November 2018.

[mugwump]

excelsior wins environmental dispute

https://ceo.ca/@newsfile/excelsior-mining-confirms-agreement-to-dismiss-uic

[linealdin]

excelsior wins environmental dispute

https://ceo.ca/@newsfile/excelsior-mining-confirms-agreement-to-dismiss-uic

 

Excellent news! That should resolve all permitting issues. Excelsior now has 40 people working at the mine site. They claim to be ready to move into being a producer. If they’ve been diligent they should have a construction financing package ready once the final permit is effective. Altius with the option to purchase a 0.5% royalty for C$5 million.

 

(Greenstone most recently paid US$4 million, or C$5.18 million, for an additional 1% royalty. I doubt Altius wants to pay double the rate Greenstone paid.)

 

Construction should take 9 months. If they hustle commercial production by the start of Q3 2019 is possible.

 

Excelsior had a nice 20% pop on the news.

 

[linealdin]

https://www.thewesternstar.com/business/alderon-ready-to-move-forward-on-kami-project-in-labrador-west-247696/

 

More details about the Alderon presentation to the Labrador West Chamber of Commerce:

 

Eldem had left Alderon for a while, but is now back with the company.

 

“I returned as I think this is the right time for the project, and given the interest in China and their initiatives to clean things up, I believe finding that money will be easier now,” he said.

 

Some project details have already been worked out, permits have been completed and parts of the mine’s infrastructure have been ordered.

 

“A lot of the work for this project has already been done,” Eldem said.

 

At the presentation, Eldem introduced Wayne Zhou, Canadian division president of HBIS Group Co. HBIS is currently the largest steel producer in China – and has a 25 per cent stake in the Kami Project. Also introduced was David Li, Alderon’s vice-president of Asia Pacific affairs.

 

Eldem told chamber members there is also strong interest from Japan in the Alderon Project, and he hopes the most recent feasibility study and the renewed interest will spur investors to move.