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TEDtalk: George Salamis: Mining Disruption, An Overview

Interesting stuff from one of the Integra Gold guys. Skip the intro and pick it up at the two minute mark:

Youtube here.

Goldcorp's (GG) bizarre and highly suspicious sale of Camino Rojo to Orla Mining (OLA.v)

Consider some facts:

  • In late 2009 (closed Feb 2010) and after beating out Penmont for the prize, Goldcorp (GG) paid C$308.5m in cash for Canplats and its Camino Rojo project ($4.60 a share plus a 20c valuation on the spin-out).
  • At that time, Camino Rojo had an all-categories 43-101 resource of 3.44m oz gold (and no reserve, see below).
  • On its books, GG folded Camino Rojo into the carry of its nearby Peñasquito mine, which made sense because the plan was to use Camino Rojo as a new source of feed for its big mine. However, it means that we on the outside can't track how much money GG spent on developing Camino Rojo over the seven years of its ownership. (Edit: See update).
  • However, there's little doubt that GG has sunk plenty of cash into the development of Camino Rojo. That we know because now, GG has it on its books with a 1.7m oz gold reserve and a M+I resource of 7.5m oz gold. That kind of resource bump-up costs serious money to achieve.
  • It's no secret that GG under Garofalo has wanted to get shot of Camino Rojo, a whole bunch of news reports in December last year told how GG had hired Scotiabank to look for a buyer. However, at that time and according to analyst estimates Camino Rojo had a ticket price of around $200m.
  • Yesterday, Orla Mining (OLA.v) agreed to buy Camino Rojo. The price; 31.9m shares, plus a 2% NSR. As OLA.v is a $1.30 stock today (it popped from $1.10 or so on the news) those shares GG gets are worth around C$41.5m right now. 
  • The Chairman of OLA.v is Chuck Jeannes, who was CEO of Goldcorp between 2009 and 2016. In other words, Chuck bought Camino Rojo for over C$300m, spent untold millions of GG's money on its development afterwards (Edit: see update) and now gets to buy it for his new company for a pittance of paper. 

WTF? Seriously, WTF is this? Does Chuck have photos of Garofalo in bed with a goat? How the hell can GG shareholders let this deal happen at such a low price? How the devil can the Canadian regulatory authorities give this a green light?

UPDATE: According to Chuck Jeannes on the OLA ConfCall, GG spent another $150m on drilling and development of Camino Rojo.

Atico. IKN420. VMS.

Here's a snippet from The IKN Weekly IKN 420, dated June 4th 2017:

"...a juicy and well-sourced piece of intel passed my desk this week, as apparently the ongoing drill program at El Roble has hit some real paydirt in the form of a high grade VMS intersect in a new and previously untapped location near to the mine. I don’t have exact details but I did hear that this intersect if confirmed after assays represents a new VMS lens. This fits right in with the geological theory that ATY has maintained since buying into the mine."

Here's how the NR out of Atico Mining (ATY.v) today started:

"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 22, 2017) - Atico Mining Corporation (Atico" or the "Company") (TSX VENTURE:ATY)(OTC PINK:ATCMF) is pleased to announce the discovery of a surface exposure of a copper-rich massive sulfide, cropping out some 130 meters north of the El Roble mine mineralization."

Further questions?

Macquarie bank faces class action over advice on worthless Brazilian mine project

A sell side brokerage guilty of pumping worthless mining stocks to its clients? SURELY NOT!

 Reader 'G' was kind enough to send in this link. Here's how the report starts:

Macquarie Group faces a major class action over allegations some of its investment advisers artificially inflated the price of a small mining company before a sudden collapse wiped out many of its investors.
The investment bank's brokers are accused of deliberately "ramping" stock in Cleveland Mining Group by playing a key role in the acquisition of a Brazilian iron-ore mine project with a potential value of $34 billion that turned out to be a worthless patch of jungle.

Read it all here.

It's so bullish for gold stocks out there...

...that even Red Eagle is going up.

The Cannabis Wheaton (CBW.v) $50m financing was supposed to close yesterday...

...but so far there hasn't been any news on the closure.

There's unlikely to be any problem.


IKN was wrong about Peru FinMin Alfredo Thorne on June 12th

When this humble corner of cyberspace stated on June 12th that Peru's Minister of the Economy and Finances, Alfredo Thorne, would be fired that week (for being caught lying), this humble corner of cyberspace was wrong. By three days.

The news tonight (translated):
"Minister of the Economy and Finances, Alfredo Thorne, today Wednesday lost the Congressional Vote of Confidence and resigned from his post"
Further questions?

Gold ready to rally

The 10 year TIPS yield chart. K.I.S.S.

Nuff said.

There will be no more posts on this blog today

For secret reasons.

Cordoba and the TSX

Here's the juice: It seems that the TSX is actually doing its job for once and is objecting to the terms of the CDB/HPX deal. The deal did get pre-approval from the TSXV before being announced, but what they didn't disclose beforehand was the bullshit sweetheart placement terms that gave Friedland's chosen pals a cheap way in, to the detriment of current shareholders. As CDB is basically owned and run by Friedland, the TSX complaint is of a lack of fiduciary duty towards current shareholders and are objecting to the way in which people like Sprott USA are being favoured.

The TSX (V) wants CDB to drop the placement. Friedland is having a fit of pique and refusing point blank. This could take some time.


Minera IRL: Filed in Lima this evening


Minera IRL files Arbitration claim against COFIDE with Lima Arbitration Center

LIMA, PERU - (Marketwired – June 20, 2017) - Minera IRL Limited (“Minera IRL” or the “Company”) has filed an arbitration claim against Corporacion Financiera de Desarrollo (COFIDE) with the National and International Arbitration Center of the Lima Chamber of Commerce. The submissions of the parties (MIRL and COFIDE) must not be publicly disclosed in accordance with the Arbitration Regulations of said Center that require the confidentiality of the procedure.

The intention to commence the Arbitration was announced by Company press release on June 06 when it also announced the precautionary measure court order granted in favour of the Company that suspends any execution procedure by COFIDE against the Company regarding the payment of the US$70 million Bridge Loan. The Company has stated that the purpose of these actions is to protect the Company’s assets and investments on behalf of its shareholders, communities and employees.

Cristina Fernández de Kirchner

Anyone who watched the rally put on by Cristina this afternoon* will know, without a shadow of a doubt, that the English language commentators and anal ysts up North who have written her off as a spent force in Argentine politics are as dumb as a bag of nails about South America. And if Macri isn't quaking in his boots this evening about October and beyond, he's just as dumb.

For an excellent, concise and perceptive post on CFK today and what it means for the future of Argentina, check out this by Abel. 100% agreement here.

*e.g. me, and no matter what your political stripe might be it was awesome television, a masterclass of politicking.