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Tertiary Minerals (TYM) – TR-1: Standard form for notification of major holdings

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:

Tertiary Minerals Plc 

1b. Please indicate if the issuer is a non-UK issuer  (please mark with an “X” if appropriate)

Non-UK issuer

2. Reason for the notification (please mark the appropriate box or boxes with an “X”)

An acquisition or disposal of voting rights

An acquisition or disposal of financial instruments

X

An event changing the breakdown of voting rights

Other (please specify)iii:

3. Details of person subject to the notification obligationiv

Name

City and country of registered office (if applicable)

4. Full name of shareholder(s) (if different from 3.)v

Name

Afzal Valli

City and country of registered office (if applicable)

5. Date on which the threshold was crossed or reachedvi:

Friday 23 August 2019

6. Date on which issuer notified (DD/MM/YYYY):

Tuesday 27 August 2019

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8. A)

% of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights of issuervii

Resulting situation on the date on which threshold was crossed or reached

4.07%

4.07%

18,025,655

Position of previous notification (if

applicable)

3.03%

3.03%

13,430,165

 

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii

A: Voting rights attached to shares

Class/type of
shares

ISIN code (if possible)

Number of voting rightsix

% of voting rights

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

GB0008854563

18,025,655

4.07%

SUBTOTAL 8. A

18,025,655

4.07%

 

 

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period
xi

Number of voting rights that may be acquired if the instrument is

exercised/converted.

% of voting rights

SUBTOTAL 8. B 1

 

 

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period 
xi

Physical or cash

settlementxii

Number of voting rights

% of voting rights

SUBTOTAL 8.B.2

 

 

 

9. Information in relation to the person subject to the notification obligation (please mark the

applicable box with an “X”)

Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii

Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entity
xiv (please add additional rows as necessary)

Namexv

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

N/A

10. In case of proxy voting, please identify:

Name of the proxy holder

The number and % of voting rights held

The date until which the voting rights will be held

11. Additional informationxvi

Place of completion

UK

Date of completion

23 August 2019

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Gold Prices To Hit $1,575 In 3 Months, $1,600 In 6 Months – Goldman Sachs

(Kitco News) – Goldman Sachs Group upgraded its gold forecast for the first time this year, upping its 3-month and 6-month projections to $1,575 and $1,600 an ounce in light of escalating trade war tensions.

Gold prices were solidly above $1,500 an ounce on Monday — a level that was hit last week for the first time since 2013.

After rising nearly 4% last week, gold’s rally is far from over, according to analysts at Goldman, who see more upside in the yellow metal.

“Gold prices have increased further as a weaker CNY sparked substantial U.S. and global growth fears. With growth worries likely to persist, gold could rise further, driven by an increased ETF allocation from portfolio managers, who continue to under-own gold. We raise our 3, 6, 12 month gold price forecasts from $1,450, $1,475, $1,475/toz to $1,575, $1,600 and $1,600/toz, respectively,” Goldman analysts said in a note.

The U.S.-China trade war has entered stage two this summer as U.S. President Donald Trump announced a 10% tariff on the remaining $300 billion worth of Chinese imports starting September 1, the note said.

“With the U.S. and China taking a harder line on trade, our economists no longer expect a trade deal before the 2020 president election—a fundamental change in view,” the analysts including Sabine Schels wrote on Wednesday.

A currency war with depreciating CNY plays a key role in trade war tensions and Goldman’s outlook for the precious metals.

“Previously, China opted for stability and defended its currency in order to facilitate the ongoing trade negotiations in the background. Now, FX appears to be playing an increasingly central role in the trade tensions,” the analysts said. “We estimate that a 10% depreciation of CNY vs USD would spell as much as 13% downside to the S&P GSCI industrial metals sub-index.”

Weaker CNY, in this case, means higher gold prices due to increased global growth fears, added Goldman.

“The depreciation of the CNY led to an increase in ‘fear’, lower long term U.S. rates, and thus a higher gold price. Thus, a substantial depreciation of the CNY could lead to more ‘fear’ regarding U.S. and global growth akin to early 2016 and should be bullish gold,” the analysts stated.

Gold’s ETF demand is also on a strong uptrend, with Goldman upping its 2019 forecast from 300 tonnes to 600 tonnes.

“Now with the DM CAI persistently low, the trade war escalating, global equities selling off and volatility spiking, it looks like our risk scenario is playing out. Indeed, gold ETFs have recently built momentum almost as strong as in 2016 and we believe that can be maintained in the short term,” the analysts said.

Tertiary Minerals: A bargain catch in a monster mining region 

  • Nevada continues to shine  
  • A change in direction for Tertiary Minerals
  • Paymaster project shows promise
  • Pyramid Project: A golden catch
  • Gold and Silver on the rise

Nevada continues to shine 

Ranked as the world’s top jurisdiction for mining investment – when it comes to fishing for metals, Nevada looks to be the place to net a winner. 

At the beginning of July mining super-heavy-weights Barrick Gold and Newmont Goldcorp announced the official launch of their huge joint gold mining venture in Northern Nevada – marking another prestigious boost for the world-class mining jurisdiction.

Following a visit to the joint projects Nevada Governor Steve Sisolak commented: 

“There’s a reason why Nevada is ranked as one of the more attractive jurisdictions in the world for mining investment. It’s not only the geological attractiveness, but that we have a true partnership with the state and federal government in growing a responsible, safe, and beneficial industry for our local communities” 

Tertiary Minerals a fresh strategy kick starts with Nevada Prospects 

Another company that’s been hooked by Nevada’s outstanding mining opportunities is AIM- traded mineral exploration and development company Tertiary Minerals (AIM:TYM). 

Over the last year the company has made a strategic move to broaden its portfolio beyond the existing focus on fluorspar. As well as maintaining projects for the EU listed critical mineral, Tertiary are now aiming to build a multi-commodity project portfolio including precious metals, base metals and industrial minerals. 

The company are hopeful that by targeting a number of mining friendly jurisdictions they can provide shareholders with exciting projects capable of generating revenue across a shorter timescale, as well as earlier stage projects which can be developed organically. 

With its rich mining history, geology and supportive government the company have set their sights on Nevada to provide this, announcing the acquisition of two new projects in the state; the Paymaster polymetallic project and the Pyramid gold project. 

Paymaster project shows promise 

Back in February, Tertiary staked claim to the Paymaster zinc-copper-silver-Cobalt-Tellurium prospect, an area of more than 390 acres located approximately 30km south west of Tonopah, Nevada. 

The project showed immediate promise with Tertiary revealing that grab samples had produced significant assays up to 21% zinc, 6.5% lead, 3.3% copper and 253g/t silver as well as high levels of high-tech metals tellurium and cobalt. Shareholders were left waiting in anticipation until July for further sample results. But the wait appears to have been well worth it. 

Soil sampling revealed two large zones of zinc-silver mineralisation for follow-up exploration, with rock sampling from their Valley Prospect providing assays of 7.5% zinc, 4.3% lead and 180g/t silver. 

Richard Clemmey, Managing Director of the Company, commented: “We are pleased to be reporting these two new targets as a result of follow up of our soil sampling results at the Paymaster Project and to be closing in on drill targets at such an early stage in the life of the project.” 

Pyramid Project a golden opportunity

Quick to keep developing their portfolio, Tertiary soon set their sights on Gold, securing a 20-year lease (with the option to buy) over a group of nine patented claims in the Walker Lane area.

With Walker Lane rated such a highly prospective area for gold mining,, Tertiary did extremely well to snap up the site. Particularly considering that historic drilling results at hole PYR9 intersected visible gold and assayed 1.52m grading 17.8 g/t Au from 94.5m down hole. 

As commented by MD Mr Clemmey “Projects with high-grade gold results in drilling that have not already been followed up are hard to find in Nevada.” 

Gold and Silver shine demonstrating safe haven potential 

Now looks as good a time as ever for Tertiary to be digging for gold and silver. The precious metals have once again demonstrated their safe-haven qualities during the recent periods of economic uncertainty. 

Earlier in August gold prices surged through $1,500 a troy ounce for the first time in over six years, whilst silver broke above the $17 a troy ounce mark for the first time since the 14th June 2018. These results perhaps a demonstration of the unique security that gold and silver stocks can offer during economic slowdowns. 

Meanwhile, Tertiary will be pleased to hear that Commerzbank’s raw materials analyst Daniel Briesmann has predicted that prices for the metal are on the up. He’s forecast a three-month price of $2,800 per tonne at the end of 2019. Zinc is currently at around $2,260 per tonne. 

“I don’t see production coming back onto the market at current levels, so I think we will see a supply deficit, which has already been recorded for the first months of the year” said Briesmann. 

Tertiary a bargain 

All said, sat just above it’s lowest price of 0.18p, at just 25p, Tertiary looks to be a bargain catch for investors, and offering significant upside potential. 

As well as the two highly promising additions discussed, Tertiary’s portfolio includes three strategic fluorspar deposits located in Europe and the USA containing JORC compliant Mineral Resources of over 13 million tonnes of fluorspar mineral. 

Fluorspar is an EU listed critical mineral used primarily in metallurgical, ceramics, and chemical industries; as well as for, optical, lapidary, and other important uses. 

However, it’s Tertiary’s Paymaster and Pyramid projects which I’d recommend keeping your eyes on. As news starts to flow from these projects and investors catch on I’d expect to see the share price jump. 

Back to our analogy ‘fishing for metals’.. always remember, good things come to those who bait! Sorry, I mean wait. These projects are in their early stages. So set out your camping chair, cast your lines and wait to reel it in. 

By Harry Dacres-Dixon

Sources: 

Brand Communications – Treasure Hunting in Nevada with Tertiary Minerals (TYM): Walker Lane marks the spot for gold

Brand Communications – Tertiary Minerals plc (TYM) New Project Acquisition and MB Project Update

Brand Communications – Tertiary Minerals (TYM) – New Project Acquisition in the Pyramid Mining District of Nevada, USA

Fastmarkets AMM – Analysts divided on 2019 zinc price forecast

Financial Times – Gold prices top $1,500 as haven rally accelerates

Kitco – Gold and Silver Prices Explode to the Upside

 

Tertiary Minerals #TYM – Afzal Valli Major Shareholding

TR-1: Standard form for notification of major holdings

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:

Tertiary Minerals Plc 

1b. Please indicate if the issuer is a non-UK issuer  (please mark with an “X” if appropriate)

Non-UK issuer

2. Reason for the notification (please mark the appropriate box or boxes with an “X”)

An acquisition or disposal of voting rights

An acquisition or disposal of financial instruments

X

An event changing the breakdown of voting rights

Other (please specify)iii:

3. Details of person subject to the notification obligationiv

Name

City and country of registered office (if applicable)

4. Full name of shareholder(s) (if different from 3.)v

Name

Afzal Valli

City and country of registered office (if applicable)

5. Date on which the threshold was crossed or reachedvi:

13th August 2019

6. Date on which issuer notified (DD/MM/YYYY):

14th August 2019

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8. A)

% of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights of issuervii

Resulting situation on the date on which threshold was crossed or reached

3.03%

3.03%

13,430,165

Position of previous notification (if

applicable)

 

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii

A: Voting rights attached to shares

Class/type of
shares

ISIN code (if possible)

Number of voting rightsix

% of voting rights

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

GB0008854563

13,430,165

3.03%

SUBTOTAL 8. A

13,430,165

3.03%

 

 

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period
xi

Number of voting rights that may be acquired if the instrument is

exercised/converted.

% of voting rights

SUBTOTAL 8. B 1

 

 

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))

Type of financial instrument

Expiration
date
x

Exercise/
Conversion Period 
xi

Physical or cash

settlementxii

Number of voting rights

% of voting rights

SUBTOTAL 8.B.2

 

 

 

9. Information in relation to the person subject to the notification obligation (please mark the

applicable box with an “X”)

Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii

Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entity
xiv (please add additional rows as necessary)

Namexv

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

N/A

10. In case of proxy voting, please identify:

Name of the proxy holder

The number and % of voting rights held

The date until which the voting rights will be held

11. Additional informationxvi

Place of completion

UK

Date of completion

13 August 2019

Tertiary Minerals #TYM – Update on Broker

Tertiary Minerals plc notes from the news story published on the Financial Conduct Authority (“FCA”) website on 5 August 2019 that the directors of SVS Securities Plc (“SVS”) have placed SVS into Special Administration. The FCA’s announcement disclosed that the FCA has imposed requirements requiring SVS to cease all regulated activities and restricting it from disposing of its own or its clients’ assets. SVS was a joint broker to the Company however as a result of these developments, SVS will no longer be able to provide broking services to Tertiary.

SP Angel Corporate Finance LLP will continue to act as sole broker to Tertiary.

 

Enquiries

Tertiary Minerals plc

Richard Clemmey, Managing Director

Patrick Cheetham, Chairman

+44 (0) 1625 838 679

SP Angel Corporate Finance LLP

Nominated Adviser & Broker

Lindsay Mair/Caroline Rowe

+44 (0) 203 470 0470

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement 

Notes to Editors

Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration company building and developing a multi-commodity project portfolio – Industrial minerals, base and precious metals.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

Tertiary Minerals plc (TYM) Sale of shares in Sunrise Resources Plc

The Company announces that on 17 July 2019, it sold 31,500,000 shares in Sunrise at a price of 0.08 p per share for a total consideration of £25,200.  Tertiary now owns 79,454,787 shares in Sunrise, being 2.89% of Sunrise’s issued share capital.

The shares were bought by Patrick Cheetham, Chairman of Tertiary (and Sunrise). Mr Cheetham is a related party to the Company, as defined by the AIM Rules for Companies.  The independent directors of Tertiary, having consulted with the Company’s Nominated Adviser, consider that the terms of the transaction are fair and reasonable insofar as the shareholders of the Company are concerned.

 

 

Enquiries

Tertiary Minerals plc

Richard Clemmey, Managing Director

Patrick Cheetham, Chairman

+44 (0) 1625 838 679

SP Angel Corporate Finance LLP

Nominated Adviser & Joint Broker

Lindsay Mair/Caroline Rowe

+44 (0) 203 470 0470

SVS Securities plc

Joint Broker

Elliot Hance

+44 (0) 203 700 0093

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement

 

Notes to Editors

Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration company building and developing a multi-commodity project portfolio – Industrial minerals, base and precious metals.

 

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

 

Tertiary Minerals plc (TYM) Paymaster Polymetallic Project Update

Further to the Company’s announcements of 21 February 2019 and 30 May 2019, Tertiary Minerals plc is pleased to advise that initial follow-up field reconnaissance of soil anomalies at its recently acquired Paymaster Polymetallic Project in Nevada has identified two zones of zinc-silver mineralisation for follow-up exploration and drilling. 

Highlights: 

Valley Prospect

  • New thick skarn zone observed in the field: Approximately 350m long and up to 8m thick
  • Rock sample taken from historic shaft spoil assayed 7.5% zinc, 4.3% lead and 180g/t silver

East Slope Prospect

  • 650m long zinc soil anomaly (100-250 ppm zinc) surrounding previously sampled outcrop of zinc-silver cobalt bearing skarn mineralisation, including 175m long 250-500 ppm zinc soil anomaly
  • Previous rock sample assays up to 20.9% zinc, 0.11% cobalt and 198 ppm silver within the prospect
  • Infill soil sampling and trenching proposed to better define drill target

Additional soil anomalies require further evaluation

Richard Clemmey, Managing Director of the Company, commented today: 

“We are pleased to be reporting these two new targets as a result of follow up of our soil sampling results at the Paymaster Project and to be closing in on drill targets at such an early stage in the life of the project. This follows on from our recent acquisition of the Pyramid Gold Project, also in Nevada, where drill targets for gold are already defined.

These results demonstrate how value can be added at low cost as we build up a new portfolio of base and precious metal projects in the western USA.”

 

Enquiries
Tertiary Minerals plcRichard Clemmey, Managing DirectorPatrick Cheetham, Chairman  
+44 (0) 1625 838 679             
SP Angel Corporate Finance LLP

Nominated Adviser & Joint Broker 

Lindsay Mair/Caroline Rowe

+44 (0) 203 470 0470
SVS Securities plc

Joint Broker

Elliot Hance

+44 (0) 203 700 0093

 

Australian dollar gold price at all-time high – Mining Journal

Mining Journal 18th June

The gold price was on the rise today as geopolitical tensions remain an undercurrent and the market ponders the likelihood of a rate cut at this week’s US Federal Reserve meeting.

The Australian spot gold price rose to a fresh all-time high today and was worth A$1,962.60 an ounce at the time of writing.

The US dollar gold price was near a 14-month high at US$$1,341.89/oz, having been close to $1,360/oz on Friday.

Market futures were mixed after most key indices closed higher yesterday.

Gold miners were unsurprisingly gaining in afternoon Australian trade.

Western Australian producer Saracen Mineral Holdings (ASX: SAR) was up more than 3% in late trade.

Newmont Goldcorp (NYSE: NEM) had closed up 0.8% in New York yesterday.

It had announced it was ramping up its Peñasquito mine in Mexico after an illegal blockade was lifted and a government-sponsored dialogue process established, with the company saying it was committed to a fair resolution of contract and water availability issues.

The gold-heavy Toronto metals and mining stocks closed about 1.3% higher yesterday.

Dual-listed Alacer Gold (TSX: ASR; ASX: AQG) gained 10.2% in Toronto to close at C$4.43 and is up almost 76% year-to-date.

It had declared commercial production at its Çöpler sulphide expansion project last week and a one-third increase in oxide gold production for 2019 at its flagship operation in Turkey.

Macquarie reinstated coverage of Alacer with a recommendation of outperform and a price target of $4.50, Bloomberg noted.

 

Gold Keeps Climbing – Mining Beacon

Mining Beacon April 17 2019

Recent research reports from S&P Global Market Intelligence highlight record gold production in 2018, and outline some of the reasons for the increased appetite for gold mergers and acquisitions.

Global gold production increased in 2018 for the 10th consecutive year to reach a total of 107.3 Moz, according to a recent report from S&P Global Market Intelligence (SPGMI). As signaled in the recent HindeSight bog, although the year-over-year increase of just under 1% was the smallest in the past decade, output of the precious metal has now risen 40% since 2008.

SPGMI forecasts further growth, of 2.3 Moz, this year. If so, it will be the strongest growth of the past three years. As the report’s author, Chris Galbraith, wrote; it will debunk the commentary of “peak gold”.

Looking at the current project pipeline, and without large-scale moves in the gold price or any speculative estimates on additions through exploration activity, SPGMI expects gold output to stay steady until 2022 and decline thereafter. Indeed, more than 15% of gold production by 2024 will be coming from mines that are not yet producing.

More than half of this year’s increase is projected to come from mines that are expected to come on stream in 2019. Examples of those include the Gruyere JV in Western Australia (Gold Fields Ltd and Gold Road Resources Ltd), Meliadine in Nunavut (Agnico Eagle Mines Ltd), Sigma-Lamaque in Quebec (Eldorado Gold Corp.), and the restarted operations at Obuasi in Ghana (AngloGold Ashanti Ltd) and Aurizona in Brazil (Equinox Gold Corp.), both of which have been idle since 2015.

SPGMI notes that the ramp-up at PJSC Polyus’s Natalka operation and commissioning at Nord Gold SE’s Gross mine are significant contributors to a continued increase in Russia’s gold production. The country’s production is expected to equal Australia’s gold output in 2020, and then surpass it. In Canada, the startup of Meliadine and continued ramp-up of Rainy River, Eleonore and Hope Bay, among others, will drive amongst the fastest national growth over the next few years. This year, Canada is projected to pass the US in national gold production to become the fourth-largest gold producing country.

Although SPGMI expects global production to start declining after 2022, not all jurisdictions will have shrinking production. Of the 99 gold-producing countries monitored, 49 are expected to produce less in 2024 compared with 2018, 27 to produce more and 23 are expected to maintain production.

Australia’s production is expected to fall the most. The current second-largest gold producing nation, behind China, is expected to fall to fourth place globally by 2024. The underlying reason for Australia’s fall is the depletion of several long-lived assets, such as St Ives, Paddington, Telfer, Edna May, Southern Cross and Agnew/Lawlers. The expected commissioning of Mt Todd and reactivation of Union Reefs Operations Centre will only partly mitigate the loss from existing operations.

Although Indonesia’s gold production will be substantially lower in 2024 than it was last year, the country’s production in 2018 was anomalously high primarily due to the unusually large output at Grasberg. Peru’s production, however, is clearly trending downward, with Orcopampa, La Zanja and Tambomayo all facing depletion before 2024. With closure only a few years further out, SPGMI notes that Lagunas Norte and Yanacocha will also be producing far less gold in 2024 than they have historically.

Grades are Key

From 2014 through 2018, ore throughput at primary gold mines rose 1.2% but the weighted-average gold grade increased 4.5%. As a result, gold production from primary gold mines increased by 6% during the period.

The increase in grade is projected to continue through 2020 but in 2021 SPGMI expects ore throughput to remain steady and grade to fall by 2% year over year. These two factors are expected to account for around 1.6 Moz in reduced production. By 2024, around 241 Mt less ore is expected to be fed through gold mills compared with 2019, while the gold grade will be almost 2% higher overall. Owing to that drop in throughput, the related drop in production from primary gold mines will be almost 9 Moz.

SPGMI estimates that 11% of global gold production came from polymetallic base metal mines in 2018. Gold production from those mines will fall this year and in 2020 but the share from polymetallic mines is expected to increase gradually thereafter. With falling production from primary gold mines after 2020, and minor increases from polymetallic mines, a growing share of the world’s gold production will come from sources where gold is a byproduct. Less than 10% of the world’s production is expected to come from secondary sources in 2020, but this amount is expected to grow to more than 11% again by 2024.

Reason for Gold M&A

In a separate SPGMI article on April 3, Richard Foy commented that the market capitalisation of gold-mining companies has halved since 2012. This devaluation, and a recent push for consolidation, has increased M&A activity, with majors capitalising on the reduction in enterprise value (EV) in 2018.

Recent M&A deals have reflected this theme as companies look to unlock synergistic cost savings. This has seen gold production remain relatively constant among the top 30 listed gold-mining equities between 2014 and 2018, at about 43 Moz/y, with a 3% increase expected in 2019. The consensus earnings margin outlook of 30% for gold-mining equities is supported by SPGMI’s view on 2019 all-in sustaining cost margins at 33%.

In 2019, the ratio of the EV to EBITDA of the 30 largest gold miners is expected to go below 7.0 for the first time in six years, according to SPGMI. This is the result of a modest decline in EV (due to declining net debt offsetting a rise in market capitalisation) along with an expected increase in earnings. This drop in the ratio could explain the heightened M&A activity among the gold majors.

Nevada’s Walker Lane Gold Trend Ripe for Discovery – Gold Investing News – Tertiary Minerals #TYM

Some of the world’s most important gold mining districts are found in Nevada’s three major northwest trending belts: the Carlin trend, the Cortez trend and the Walker Lane trend.

Together these three trends have contributed the most to the nearly 170 million ounces of gold produced in Nevada between 1835 and 2018. While Nevada’s long gold mining history and prolific production may lead some to believe all the low-hanging fruit has been picked, there still exists plenty of upside and the potential for new discoveries in the Walker Lane trend.

Nevada: Where the world goes for gold

Nevada ranks as the world’s third top mining jurisdiction and fifth largest gold producer. The state owes its top dog status to its immense mineral wealth, well-established infrastructure and stable regulatory environment. Transparent, easy-to-navigate regulations and permitting processes, and an attractive tax regime with a low net profits tax and no income tax are all very inviting for the world’s gold miners. Global giants Newmont Mining (NYSE:NEM), Barrick Gold (TSX:ABX,NYSE:GOLD) and Kinross Gold (TSX:K,NYSE:KGC) all have producing mines in the state.

Walker Lane gold trend: Future of gold mining in Nevada

The Carlin trend may have generated the most heat in the Nevada desert over the past decades when it comes to gold, but most of the best properties are already controlled by majors Newmont, Barrick and Kinross. The high cost of exploring for the often blind and deeper targets that remain on the trend is a big turn off for junior explorers. Today’s mineral exploration companies looking for the next big play are staking claims in one of the state’s other prominent gold trends, the Walker Lane, which offers less expensive exploration with the added upside of plenty of blue sky potential in a relatively underexplored landscape with known high-grade potential.

The north-west trending Walker Lane, one of the largest structural lineaments in Nevada, has played an integral role in the history of the state beginning with the 1859 discovery of the Comstock Lode, representing 8.5 million ounces of gold and about 400 million ounces of silver. The lure of all that wealth led to the gold rush that would eventually build up Nevada’s population enough to earn statehood in 1864.

Unlike the Carlin trend, where most mines are producing ore of less than a gram of gold per tonne, Walker Lane stands out with exceptional high-grade assays. In fact, Walker Lane hosts a number of high-grade districts including Tonopah and Goldfield. Also in the region is Kinross’ Round Mountain mine, which produced approximately 437,000 ounces of gold equivalent in 2017. The giant gold mine’s current reserves plus past production total 29 million ounces of gold. Other prolific mines in the area include Mineral Ridge with 4 million ounces of gold and 6.4 million ounces of silver; and Bullfrog with 3.7 million ounces of gold and 4.6 million ounces of silver.

Promising projects in the Walker Lane gold trend

A few recent successes at Walker Lane include Northern Empire’s US$90 million acquisition by Coeur Mining (NYSE:CDE) in 2018 on the basis of the Sterling gold project, which hosts four distinct deposits including a fully-permitted, open-pit mine set to become one of the highest-grade heap leach mines in the Western United States.

Corvus Gold (TSX:KOR,OTCQX:CORVF) is focused on its near-term North Bullfrog and Mother Lode gold-silver mining projects near Beatty, Nevada. Results from exploration drilling at Mother Lode continue to show high potential for expanding the deposit and raising the possibility of identifying a much larger mineralization system. Corvus’ success has attracted C$2 million in additional funding for resource expansion programs at both Mother Lode and North Bullfrog.

Newrange Gold’s (TSXV:NRG,OTC Pink:NRGOF) Pamlico gold project represents another high-grade, district-scale opportunity on the Walker Lane trend. The project includes the historic Pamlico Mines on Pamlico Ridge, together with the Central, Sunset, Good Hope, Gold Bar and various unnamed mines and prospects. The 1,670-hectare property has been in private hands since 1896 with less than half of 1 percent of the property ever touched by a modern exploration drill. Newrange acquired Pamlico in 2016 and since then has launched an aggressive exploration campaign which has resulted in numerous drill intercepts of near surface oxide gold mineralization to 340 grams gold per metric tonne.

Newrange is advancing the project toward a resource estimate. In February 2019, the company completed preliminary metallurgical testing which achieved gold extractions as high as 97.1 percent and calculated head grades as high as 79.4 grams gold per metric tonne. These grades were substantially higher than what was originally indicated by drill sample assays, suggesting the potential for a much larger and potentially heap leachable gold system at Pamlico.

Brand Communications – Tertiary Minerals (AIM: TYM) announced that it had secured exploration rights and an option to purchase a group of claims in the Pyramid Mining District of Nevada on May 28th 2019. The project is located 25 miles northwest of Reno and is easily accessible by sealed highway. Full details here

Takeaway

The recent discoveries and continued resource expansion along Nevada’s Walker Lane gold trend is a great example of what the state’s mineral largess still has to offer for gold exploration companies and their shareholders.

Article by Melissa Pistilli, Gold Investing News

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