Author Topic: ALS.TO - Altius Minerals  (Read 1506041 times)

mugwump

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Re: ALS.TO - Altius Minerals
« Reply #6660 on: October 10, 2018, 05:21:31 AM »


linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6661 on: October 10, 2018, 08:08:52 AM »
wolfden drill results
https://ceo.ca/@newswire/wolfden-adds-to-multiple-zones-in-deep-drilling-at

https://www.youtube.com/watch?v=5GcZs6HoS5E

In relation to the excellent Wolfden results (most importantly the discovery of a new high grade lens) here's Ron Little of Wolfden presenting at the most recent MIF conference. Key takeaways:

1) The historical 3 million tonne resource is based on drilling to 400 meters deep. Wolfden believes they can add 2 million tonnes from deeper drilling in the West and East lenses. The assay results released today are part of that effort.

2) Little claims the ore at Mt. Pickett is so high grade (highest grade undeveloped base metals deposit in North America?) that the ore can be trucked or railed to other locations for processing. But Little believes that if 5 million tonnes can be established then it might make economic sense for Wolfden to build its own concentrator.

3) Rule of thumb for an economic zinc deposit is 10 million tonnes at 10% zinc equivalent. Little suggest that the resource for Mt. Pickett might be 5 million tonnes at 20% zinc equivalent (new 43-101 resource by the end of Q4), which is the equivalent amount of metal.

4) Wolfden is currently selling some lumber from the property bringing in net revenue of US$250K annually. (These sales don't affect the US$5 million total timber value.) Doesn't Altius get a piece of those lumber sales?

5) Wolfden is down to C$2.5 million. The monthly burn rate with one drill had been C$300K, with the second drill recently added it will be a total monthly burn of C$430K. So a cash raise should be expected after the current 15K meter drill program is completed in Q4 2018.
« Last Edit: October 10, 2018, 08:16:24 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6662 on: October 10, 2018, 08:40:37 AM »
http://aethonminerals.com/news/122495

Aethon Minerals misses on its 8 hole, 1417 meter drill program at Llanos. Best result 4 meters of 1.33% copper. Sounds like Aethon might attempt some deeper holes after petrographic studies to search for a copper/gold porphyry.

Altius has no royalty on Llanos but owns 20% of Aethon equity.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6663 on: October 10, 2018, 11:26:59 AM »
Miscellaneous news from Altius's project generation portfolio:

http://www.avrupaminerals.com/news/index.php?content_id=290

Oz Minerals drops the farm-in option on Avrupa's Alvito project (Altius 1.5% royalty) on bad drill results.

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https://www.canstarresources.com/site/assets/files/5420/canstar_presentation_october_2018_final.pdf

See Slide 15. Canstar has started field exploration programs and plans to drill Buchans in Winter 2018 (Altius 2% royalty) and Daniel's Harbour zinc project in mid-2019 (Altius 2% royalty).

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https://www.youtube.com/watch?v=Yt8f6Fd3XAM

Renaissance Gold presentation at recent MIF. The Anglogold 17,000 meter Phase 2 follow-up drill program at Silicon will cost around C$3 million. Major spend. (Altius 1.5% royalty on Silicon.)

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https://www.canexmetals.ca/site/assets/files/4985/nr-18-6_canex_commences_gibson_drilling.pdf

Canex starts 1000 meter drill program at Gibson. Altius has a 1.5% royalty on Gibson and significant equity in Canex.
« Last Edit: October 10, 2018, 01:39:38 PM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6664 on: October 11, 2018, 12:09:08 PM »
https://discoverestevan.com/local/canadian-westmoreland-coal-not-affected-by-bankruptcy-announcement-2

Westmoreland Coal files for bankruptcy in the U.S. Westmoreland's Canadian subsidiaries are NOT part of the petition. The subsidiaries seem to be cash flow positive and will be unaffected by the restructuring process in Chapter 11.

Westmoreland's Canadian subsidiaries operate the Genesee, Paintearth, and Sheerness coal mines for the power plants operated by ATCO, Transalta, and Capital Power.

Things seem to be orderly so far, no layoffs, no mine closures. No disruption to Altius electrical coal revenue.

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In 2014 Sherritt sold its coal mines and coal/potash royalties for a total of C$946 million. Westmoreland paid C$465 million for 7 coal mines in Alberta and Saskatchewan. Altius, Liberty Metals and minority partners paid C$481 million for 11 coal and potash royalties.

The royalties ended up being a safer play than the operating mines.
« Last Edit: October 11, 2018, 12:18:16 PM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6665 on: October 12, 2018, 03:05:53 AM »
https://www.denvergoldforum.org/webcast/

Minute 11:40 of the Royal Gold presentation at the Denver Gold Forum (Monday, September 24th at 11 am). Tony Jensen sums up the Voisey’s Bay settlement:

1) RG/Altius now receiving 50% of the gross metal value (at current commodity prices) from Long Harbour is a reduction from the 60% of gross metal value RG/Altius had been receiving when the Voisey’s Bay concentrate was sent out of the province for processing.

2) The reduction from 60% to 50% of gross metals value basically compensates Vale for being forced by the province to spend $6 billion to build Long Harbour. Blaming it on politics.

3) Altius tells me that their percentage of the gross metals value is now levered to commodity prices. I believe in a bull market for nickel they will be taking home a higher percentage of the GSR than under the previous regime. Altius is betting that the current nickel price is a trough price.

4) Voisey’s Bay produces a nickel concentrate (which also contains copper and cobalt) which is processed at Long Harbour, and also a copper concentrate which is shipped to third party processors. Royal Gold’s slide presentation indicates the new calculation of 50% gross metals value only applies to the nickel concentrate processed at Long Harbour. The copper concentrate is calculated as before, around 60% of the gross metals value from the third party smelter.

5) Royal Gold also believes there is ample opportunity for Voisey’s Bay to extend mine life beyond 2034.

« Last Edit: October 12, 2018, 03:25:11 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6666 on: October 12, 2018, 03:40:38 AM »
http://www.gsmmaine.org/wp-content/uploads/2010/02/A-History-of-non-ferrous-metal-mining-and-exploration-6.pdf

The historical estimate for Wolfden’s Mt. Pickett deposit, on slide 39, is spectacular: 3.2 million tonnes of 11.25% zinc, 4.83% lead, and 1.45% copper.

Plug that into the calculator and you have 3.2 million tonnes of 18% zinc equivalent or 8% copper equivalent. That looks like a mine to me: small but incredibly high grade.

The Wolfden CEO is claiming the deep drilling will increase the total resource to 5 million tonnes at even higher zinc and copper equivalent grades (recent deep drill grades have been very rich).

The keys for Wolfden moving forward:

1) The initial 43-101 resource, due in Q4, coming in at at least 5 million tonnes and 20% zinc equivalent. Those resource numbers would wake the market up.

2) Discovery of one additional lens of VMS mineralization (besides the deep drilling). Entice a major with the potential of this being a VMS district, not just one small, high grade deposit.
« Last Edit: October 12, 2018, 03:42:42 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6667 on: October 12, 2018, 03:59:36 AM »
At 5 million tonnes of 20% zinc equivalent Altius’s 1.35% royalty on Mt. Pickett brings in C$46 million over the life of the mine. Every million tonnes Wolfden adds to the resource is very valuable for Altius.

Altius paid US$6 million for the royalty. They expect to receive at least US$1 million in the near term from the sale of timber rights from Mt. Pickett, with a minimum of US$2 million in timber tights proceeds in escrow. The escrowed amount goes to Altius is Mt. Pickett doesn’t reach production. (Altius entitled to 20% of timber rights sale, which must be minimum US$5 million.)
« Last Edit: October 12, 2018, 05:38:17 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6668 on: October 12, 2018, 07:24:23 AM »
At current prices and current production rates I expect Altius to receive C$1.5 million annual revenue from Voisey’s Bay. Production rates have purposefully been ramped down by Vale.

Full production adds 33% to the royalty: C$2 million annually.

For the full cycle I expect increased nickel prices (EV battery adoption) multiplied by a corresponding increase in the formula percentage of gross metals revenue. Let’s say $8.50 nickel and 55% GSR. Another ~50% increase: C$3 million on an annual basis through the cycle.

Will there be bumper years of $20 nickel during this bull cycle? Electric vehicles create a nice setup.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6669 on: October 12, 2018, 09:08:17 AM »
Canex Metals has an obligation to spend C$500K in exploration expenses at Gibson property by November 12th, 2018. They’ve only spent C$79K as of June 30th, 2018.

That’s why a drill was mobilized last week to drill 1000 meters at Gibson. Not sure Canex has the cash yet to complete the $500K requirement. Their private placement has only partially closed for proceeds of C$86.2K.

Before drilling starts Canex pays Altius another 1.18 million shares. After the $500K spend is completed Canex pays Altius another 1.24 million shares to earn 100% of the Gibson project.

Bonus payment of 1.275 million shares to Altius if Canex defines 1 million gold equivalent ounces.

« Last Edit: October 12, 2018, 09:11:03 AM by linealdin »