Tis rigor and not law
08 / 17 / 22

Fortuna Silver (FSM): Los Ganoza pick their scapegoat

Of course they don’t blame the people who bought Roxgold…

…as that would mean blaming themselves. They lay it on the people who fooled them into thinking it was worth that much.

VANCOUVER, British Columbia, Aug. 17, 2022 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) announces the voluntary resignation of Paul Criddle from the position of Chief Operating Officer – West Africa effective September 30, 2022. Paul presented his resignation due to personal reasons and will remain as a senior advisor to the Company until the completion of the construction of the Séguéla Mine in Cote d´Ivoire.

Paul joined Fortuna on July 2, 2021, after the completion of the acquisition of Roxgold Inc., and has made significant contributions to the seamless integration of both companies, while spearheading the construction of the Séguéla Mine in Côte d´Ivoire. The overall project was 66 percent complete as of June 30, 2022.

Continues here. So Sanu losing $4.2m in Q2 gave them the excuse. Funny how Criddle didn’t want to hang around to see Séguéla finished. For personal reasons, of course.}

PS: FSM 2q22 G&A was $14.8m, of which corporate G&A was $8.6m! And they blame the mine managers. Let’s hope the reception areas have some seriously good artwork to look at, we wouldn’t want to think directors are wasting shareholder cash, after all.

08 / 16 / 22

Aldebaran Resources (ALDE.v): The dog ate my homework

On Tuesday June 21st during its webinar presentation that day, Aldebaran Resources (ALDE.v) teased its audience on the recently completed hole #221. It was some 1,487m long (i.e. nearly 1.5km), it was complete, it was in the labs, it went into an interesting spot at the Altar project according to other metrics explained that day. Shareholders responded with pricked-up ears, a cheery, “Okay, fair enough, we’ll look out for that one” and settled in to wait. When the recent strategic financing by South32 was announced, part of the deal was hearing ALDE announce that there wouldn’t be any drill assays published until the placement was closed and shareholders again answered with, “Okay fair enough”, ready to wait some more.

And waited some more.

The S32 financing closed last Friday. It’s now Tuesday August 16th and still nothing from ALDE about the fabled hole #221, which means they’ve managed to string the market along for roughly 200m per week. A great value deal for the ALDE IR department I suppose, but those of us on the outside looking have a different point of view. It’s not as if it’s one-off either, this team of auto-denominated professionals has one of the worst track records possible of delayed and deferred public disclosure, constantly playing its shareholder base with empty promises and throwaway lines and for years on end. How many times can you insult the people paying your salaries and get away with it? Kevin Heather seems intent on finding out.

Disclosure: Long ALDE.

08 / 16 / 22

The Mako Mining (MKO.v) business model

The company that treats a Central American dictator better than its Hawaiian backers:

Akiba is bound to be hard at work on Twitter today, splainin’ his esteemed and eddycated audience how DD&A doesn’t apply to his company. Because mining. And how working cap…

…isn’t a problem because those Jesus-like benefactors at the top of the pole are booting forward the loan expiry. Because charity.

08 / 15 / 22

Pure Gold (PGM.v): Two things from 2Q

The Oxygen trainwreck, Pure Gold Mining Inc., filed its 2q22 this evening and aside from the negative C$24.5m working cap, two things stand out. The main one is that for 3q22, the company is now guiding like this:

Run the math on those criteria and you’ll work out that at the minimum guided throughput and grade, the Puregold Mine produces around 8,500oz in 3q22 and at U$1,800/oz, that’s U$15m or so. Or if your glass is half full and you assume 875tpd and 5.0g/t gold, the projected gold production would be around 12,000oz gold and the gross revenues would be U$21.65m. So if they guide costs at C$10m, they’ll make a margin and that’s a start (but there’s a long way to go, see the balance sheet for more).

The other is this, the MD&A on its recent resource update:

On August 10, 2022, we announced an updated Mineral Resource Estimate for the PureGold Mine which included 1.65 million ounces of gold at 7.4 g/t contained in 6.9 million tonnes in the Indicated category and 0.37 million ounces of gold at 6.3 g/t contained in 1.8 million tonnes in the Inferred category at a cutoff grade of 3.38 g/t.

So, they claim a newly calculated and more reliable resource of 7.4 g/t gold, then in the next breath merrily guide a production head grade of maximum 5.0 g/t. Beats me why they even bother spending money on compiling 43-101.

08 / 14 / 22

Kal Malhi wants two point five million dollars cash…

…and in exchange, he is willing to give the company with the money a royalty on a worthless piece of moose pasture. And it just so happens that Kal Malhi runs the company that wants to pay Kal Malhi the money.

Nice man. Here’s an interesting mail received last week from A. Reader:


On August 11, 2022 Coloured Ties Capital (TIE.v), the former Growmax Resources after a nasty proxy fight and restructuring, issued a corporate update which reads in part:

Acquisition of Net Smelter Royalty on Arnett Creek Gold Project being developed by Revival Gold Inc. 

Coloured Ties announces that, further to its news release dated May 12, 2022, it has entered into a royalty purchase agreement (the “Purchase Agreement”) with BullRun Capital Inc. (“BullRun”) pursuant to which it will acquire a one percent (1%) net smelter return royalty (the “NSR Royalty”) on the Arnett Creek Gold Project currently being developed by Revival Gold Inc. (the “Acquisition”). As consideration for the NSR Royalty the Company will pay BullRun USD$2,500,000.

Kal Malhi, a director and the Chief Executive Officer of the Company, is the sole shareholder and director of BullRun. The Acquisition is therefore considered a “related party transaction” for the purposes of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSX Venture Exchange (“TSXV”) Policy 5.9. The Acquisition is exempt from the formal valuation requirement of MI 61-101 pursuant to section 5.5(b) as the Company’s common shares are not listed on a “Specified Market” as set forth in MI 61-101. However, as the value of the consideration to be received by BullRun exceeds 25% of the Company’s current stock market capitalization, disinterested shareholder approval will be required for the Acquisition.Accordingly, the Company will seek the approval of the Acquisition by a majority of the votes cast by disinterested shareholders at the Company’s annual general and special meeting to be held on September 23, 2022 (the “AGSM”). Additional details of the Acquisition, as required by MI 61-101, will be described in the Company’s information circular to be filed and mailed to shareholders in connection with the AGSM.

We then go to the 43-101 Technical Report for Revival Gold. As can be seen, Yamana retained its claims over the Beartrack target, where 2.108 million oz of the recently announced 2.217 million oz of indicated resource and 1.876 million oz of the announced 1.924 million oz inferred resource are located (page 1-8). The Arnett target, located about 5 miles west of Beartrack (page 4-3), contains the rest of the resources: 0.109 million oz indicated at 0.59 g/t and 0.066 million oz inferred at 0.59 g/t (175,000 oz total). Looking at the claim map (4-3) and BLM files, Yamana dropped the Arnett property after it ceased mining at Beartrack while retaining the core Beartrack claims. The Arnett deposit was known at that time, and in 2003 a group of prospectors staked a small group of 16 claims over it (light green). Another group staked 10 more claims in 2014 (dark blue). Then in 2016, a claim staking contractor acquired the 68 “ACE claims” (orange), which surrounded the Arnett resource claims on nearly 3 sides, and transferred them to BullRun Capital, which runs Coloured Ties. Some geochemical and geophysical anomalies have been identified on the ACE claims, but there has been no discovery on the claims, much less defined resource. When the ACE claims were optioned to Revival Gold in 2017, BullRun retained a 1.0% NSR royalty which could be bought down at any time for US$2.0 million (pages 4.8 and 4.9). BullRun wants Coloured Ties shareholders to approve buying this royalty from it for US$2.5 million.