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The Venture Week In Review And A Look Ahead - BullMarketRun.com

May 13, 2017

The Venture Week In Review And A Look Ahead

TSX Venture Exchange and Gold

Venture weakness in May has once again provided junior resource investors with major opportunities!

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  1. Seismologists are picking up harmonic tremors at Nickel Mountain – we suspect it’s getting ready to erupt! Jon, let’s hope that’s the reason Geotech is still there, if in fact they are.

    Comment by Dan1 — May 14, 2017 @ 5:42 am

  2. Had to go to Wikipedia to find out what exactly a “harmonic tremor” is.It’s typically associated with the underground movement of “magma”. Sounds very interesting.Can hardly wait for the VTEM results at the E&L.

    Comment by pole — May 14, 2017 @ 7:26 am

  3. Mr. Fredy Salazar reports


    Salazar Resources Ltd. has provided results from the additional six holes (1,888 metres) of the phase V diamond drill program in progress on the company’s 100-per-cent-owned (21,500 hectares) Curipamba volcanogenic massive sulphide (VMS) project in Ecuador. These holes represent new exploratory drilling and were not included in the latest El Domo resource estimate which was released on Jan. 16, 2015.


    Hole CURI-224

    16.60 metres (15.60m true) averaging 3.66 g/t gold, 117.40 g/t silver, 4.88% copper, 5.36% zinc,


    6.35 metres (5.97m true) averaging 7.72 g/t gold, 180.05 g/t silver, 2.28% copper, 8.24% zinc, and

    6.50 metres (6.11m true) averaging 1.32 g/t gold, 99.22 g/t silver, 8.89% copper, 4.48% zinc


    The Company has now drilled 5,251.05 meters as part of the Phase V drilling program which encompassed 40 holes (10,000 meters) designed to further expand the El Domo volcanogenic massive sulphide (“VMS”) deposit and explore its margins, as well as to test geophysical anomalies and surface showings (Figure 1). The latest six holes (1,888 metres) (Table 1) were drilled as part of this program. It is anticipated that the drill program will be completed by the third quarter of this year.

    CURI-224 intersected 16.60 meters (15.60 meters true width) of massive and semi-massive chalcopyrite-sphalerite-pyrite grading 3.66 g/t gold, 117.40 g/t silver, 4.88% copper, 5.36% zinc beneath an andesite sill that occurs in the vicinity of the hole (Figure1). The intersection in CURI-224 is located approximately 120 meters east of the intersection in CURI-173 (2.74 meters averaging 0.677 g/t gold, 6.5 g/t silver, 0.39% copper and 0.37% zinc) and 75 meters south from CURI-198 (7.40 meters averaging 2.498 g/t gold, 74.61 g/t silver, 3.45% copper and 5.07% zinc; see News Release of August 27, 2012). The mineralization in CURI-187, CURI-198 and CURI-224 is currently interpreted to be part of a separate zone of mineralization. The intercept in CURI-224 is gold-rich; the top of the mineralization grades 7.72 g/t gold over 6.35m (225.40 – 231.75m). Further drilling is planned to test this area.

    Fredy Salazar, President and CEO, commented: “We are thrilled with the recent results from hole CURI-224 located in the north east of the El Domo resource. The mineralization encountered is thicker and of better grade to the last hole drilled in this area: CURI-198. This new intersection indicates significant potential for finding thicker mineralization in the north-east area of El Domo resource which will increase the size and quality of the resource. So far we are very satisfied with the results to date from this Phase V drilling program and will continue working to expand the resource.”

    The latest six holes (1,888 metres) (Table 1) were drilled as part of the planned 40-hole (10,000 meters) drill program that is designed to further expand the El Domo volcanogenic massive sulphide (“VMS”) deposit and explore its margins, as well as to test geophysical anomalies and surface showings (Figure 1). It is anticipated that the drill program will be complete by the third quarter of this year.

    Holes CURI-219 and CURI-221 were drilled west of the El Domo deposit to further test the area of the CURI-213 (which intersected two zones of mineralization: 4.14 meters (true width) averaging 1.01 g/t gold, 16.78 g/t silver, 0.67% copper, 0.95% lead and 4.77% zinc, and 29.37 metres (true width) averaging 0.5 g/t gold, 77.93 g/t silver, 0.17% copper, 0.17% copper and 0.89% zinc (See News Release of March 23, 2017). CURI-219 and CURI- 221 were collared approximately 350 metres west of El Domo deposit and 50 meters north and south from the CURI-213 respectively. No significant mineralization was encountered and no further drilling is planned in this area.

    Hole CURI-220 was drilled vertically from the same collar as the CURI-218 (See News Release of March 23, 2017). CURI-220 did not encounter significant mineralization, however, the horizontal separation between CURI-220 and the mineralization in CURI-218 is estimated to be approximately 138 metres. The eastern limit of the mineralization intersected in CURI-218 remains to be established. As well, the mineralization in CURI-218 remains open to the north and south.

    Hole CURI-222, drilled steeply due east from the same platform as CURI-224, intersected 2.66 meters averaging 0.13 g/t gold, 5.56 g/t silver, 0.31% copper and 1.15% zinc.

    Holes CURI-223 was drilled vertically 50 meters north from the historic hole CURI-155 which cut two mineralized zones with gold and silver values and anomalous zinc and copper values (see News Release of January 26, 2012). CURI-223 encountered similar lithology to that in CURI-155 with one interval grading 3.61 meters of 0.77 g/t gold, 37.54 g/t silver, 0.15% copper and 1.68% zinc.

    TABLE 1

    Hole ID Elev (m) Depth (m)

    CURI-219 829.73 317.70
    CURI-220 1097.34 401.50
    CURI-221 861.18 290.75
    CURI-222 1027.06 302.70
    CURI-223 1083.91 311.70
    CURI-224 1027.06 263.70


    To view Figure 1, El Domo Deposit – Pierce Point Map, please visit the following link: http://media3.marketwire.com/docs/srl0515fig1.pdf.

    TABLE 2

    Hole ID From (m) To (m) Width (m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
    CURI-219 No significant mineralization encountered in this hole, located 50m north from CURI-213
    CURI-220 No significant mineralization encountered in this hole, located 138m east from CURI-218
    CURI-221 218.75 221.95 3.2 – – 0.16 – 1.46
    234.35 235.95 1.6 0.14 10.3 0.11 0.88 1.26
    CURI-222 224.28 226.94 2.15 0.13 5.56 0.31 0.11 1.15
    CURI-223 220.9 224.51 3.61 0.77 37.54 0.15 0.7 1.68
    CURI-224 225.4 242 16.6 3.66 117.4 4.88 0.44 5.36
    including 225.4 231.75 6.35 7.72 180.05 2.28 1.13 8.24
    including 234.05 240.55 6.5 1.32 99.22 8.89 0.01 4.48

    Widths presented in Table 2 are downhole core lengths. Where possible, true width estimates are noted in the text. A rigorous chain-of-custody and quality assurance/quality control program that included the insertion of certified standard control samples and blanks, and re-analysis of samples with high levels(overlimit) of gold, copper and zinc, was applied to the NQ-diameter, rock-sawn half-core samples. All samples were analyzed by Inspectorate Services Peru S.A.C. (Bureau Veritas), a certified ISO 17025 and ISO 9001:2000 laboratory.

    As part of the program’s sample quality assurance, twin samples were taken on the CURI-224. The samples were part of a Brecciated Dacite and gave the following results:

    Sample # Top Bottom Au (g/t) Ag (g/t) Cu (ppm) Pb (ppm) Zn (ppm)

    170422 242.00 243.45 0.219 7.90 2186 31 2199
    170423 242.00 243.45 0.232 7.80 1371 31 1758

    The scientific and technical information contained in this news release has been reviewed and approved by Kieran Downes, Ph.D., P.Geo. a Qualified Person as defined by National Instrument 43-101.

    Salazar Resources Limited

    Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador, including Aurelian’s Fruta Del Norte discovery, IAMGold’s Quimsacocha Deposit, Mozo Deposit, Ex Newmont’s Cangrejos Project and International Minerals Rio Blanco and Gaby Deposit. Being an Ecuadorian based company gives the Company a strategic advantage enabling the Company to complete exploration at a rapid pace. With an excellent property portfolio (4 projects – 36,269 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador.

    Comment by Jon - BMR — May 15, 2017 @ 5:33 am

  4. Mr. George Burns of Eldorado reports


    Eldorado Gold Corp. has entered into a definitive agreement with Integra Gold Corp., pursuant to which Eldorado has agreed to acquire all of the issued and outstanding common shares of Integra that it does not currently own, by way of a plan of arrangement under the Business Corporations Act (British Columbia).

    Under the Arrangement, shareholders of Integra will be entitled to receive, at their option, for each Integra share they own either (i) 0.24250 Eldorado shares, (ii) C$1.21250 in cash, in both (i) and (ii) subject to pro ration, or (iii) 0.18188 of an Eldorado share and C$0.30313 in cash. The maximum number of shares issuable by Eldorado under the Arrangement will be approximately 77 million (based on the number of Integra shares outstanding less Integra shares currently owned by Eldorado). The maximum amount of cash payable by Eldorado under the Arrangement will be approximately C$129 million equal to 25% of the total consideration. The total transaction value is approximately C$590 million, inclusive of Integra shares held by Eldorado.

    Eldorado’s offer represents:

    A value of C$1.21250 for each Integra common share based on the May 12, 2017 closing price of Eldorado common shares on the Toronto Stock Exchange;
    A premium of approximately 52% to Integra’s May 12, 2017 closing price and a premium of 46% based on the volume weighted average prices (“VWAP”) of both companies on the Toronto Stock Exchange for the 20 day period ending May 12, 2017

    Upon completion of the transaction and based on the maximum number of shares issuable under the Arrangement, current Eldorado and Integra shareholders would hold approximately 90% and 10% of the combined Company, respectively.

    Integra’s principal asset is the Lamaque project near Val-d’Or, Quebec. Lamaque hosts an NI 43-101 indicated resource of 5.1 million tonnes at a grade of 9.13 g/t gold and an inferred resource of 3.5 million tonnes at a grade of 7.94 g/t gold (5.0 g/t gold cut-off)1. A preliminary economic assessment was completed in February 2017 that envisions a high-grade underground operation producing 123,000 ounces of gold per year at all-in sustaining costs of US$634 per ounce over 10 years2. Integra is currently in the process of advancing underground ramp development to facilitate underground exploration and completion of a bulk sample.

    George Burns, President and Chief Executive Officer of Eldorado Gold, stated, “The Company has been following Integra’s progress at Lamaque over the last 18 months and commend their team for the accomplishments to date. From previous experience of building and operating gold mines in Canada, I am excited about Eldorado’s entry into the Eastern Abitibi region of Canada. With our current balance sheet strength post the sale of our Chinese assets, this acquisition represents a use of the proceeds complementing our existing portfolio of high quality, low cost assets.”

    Benefits to Eldorado’s Shareholders

    Adds a high quality development project that has the potential to add meaningful near-term production and cash flow with modest upfront capital;
    Establishes an operating presence in Canada and diversifies the operating portfolio into one of the most productive mining camps in the world;
    Maintains the flexibility to fund its development pipeline;
    Income tax and G&A synergies with the addition of a future mining operation in Canada.

    Benefits to Integra’s Shareholders

    Immediate and attractive premium of approximately 52% to spot and 46% based on the 20-day VWAPs of both companies;
    Exposure to Eldorado’s portfolio of high quality mines and development projects, in addition to ongoing participation in value creation at Lamaque;
    Access to Eldorado’s technical, project development and operating capabilities as well as financial resources;
    Potential for value accretion through a re-valuation in Eldorado’s share price as the Company continues to deliver and de-risk its combined asset portfolio;
    Participation in Eldorado’s dividend program.

    Transaction Summary

    The transaction will be carried out by way of a court-approved plan of arrangement and will require approval by Integra shareholders at a special meeting of Integra shareholders by:

    At least 66?% of the votes cast by all the shareholders of Integra;
    A simple majority of the votes cast by the shareholders of Integra, excluding votes from certain shareholders, including Eldorado, as required under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

    In addition to shareholder approval by Integra shareholders, the Arrangement is also subject to the receipt of certain regulatory, court and stock exchange approvals, and other closing conditions customary in transactions of this nature. It is anticipated that the special meeting of Integra shareholders will be held in July 2017.

    The Arrangement Agreement includes customary provisions, including non-solicitation of alternative transactions, a right to match superior proposals in favor of Eldorado and fiduciary-out provisions. Integra has agreed to pay a termination fee of approximately C$18 million to Eldorado upon the occurrence of certain termination events.

    Both companies’ Boards of Directors have determined that the proposed transaction is fair to their respective shareholders and in the best interests of their respective companies based on a number of factors, including fairness opinions received from their respective financial advisors. Each company’s Board of Directors approved the terms of the proposed Arrangement and the Integra Board of Directors unanimously recommends that its shareholders vote in favour of the transaction. GMP Securities L.P. has provided a fairness opinion to the Board of Directors of Eldorado, Raymond James Ltd. has provided a fairness opinion to the Board of Directors of Integra and BMO Nesbitt Burns has provided a fairness opinion to the Special Committee of Integra. Each of the directors and senior officers of Integra have agreed to vote in favour of the transaction.

    Full details of the proposed transaction will be included in the management information circular to be mailed to Integra shareholders in June 2017.

    Eldorado owns 62,170,095 common shares in the capital of Integra, constituting 13% of the outstanding common shares of Integra on an undiluted basis. Following completion of the transaction, Eldorado will own 100% of the issued and outstanding common shares of Integra. To obtain a copy of the Early Warning Report to be filed by Eldorado in connection with the transactions contemplated by the Arrangement Agreement, please contact Krista Muhr at 1188 – 550 Burrard Street, Vancouver, B.C. V6C 2B5, (tel: 604 687 4018).

    Advisors and Counsel

    Eldorado has retained GMP Securities L.P. to act as financial advisor and Fasken Martineau DuMoulin LLP to act as legal advisor.

    Integra shareholders and other interested parties are advised to read the materials relating to the proposed transaction that will be filed by Integra with securities regulatory authorities in Canada when they become available as they will contain important information. Anyone may obtain copies of these documents when available, free of charge at http://www.sedar.com. This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell the shares or solicitation of a proxy.

    Scientific and Technical Disclosure

    The scientific and technical information contained in this news release specific to the Lamaque Project has been reviewed and approved by Herve Thiboutot, Eng., Senior Vice-President of Integra Gold Corp., who is an independent qualified person under National Instrument 43-101 (“NI 43-101”).

    1)Readers should refer to Integra’s press release and Technical Report entitled “NI 43-101 Technical Report on the Spring 2017 Mineral Resource Estimate Update for the Lamaque Project ” dated May 5, 2017 for further information on the gold mineral resource estimates contained in this press release, with an effective date of March 22, 2017, and to Integra’s press release dated April 13, 2017 and Technical Report entitled “NI 43-101 Preliminary Economic Assessment Update for the Lamaque Project” with an effective date of February 27, 2017 for further information on Integra’s preliminary economic assessment.

    2)Mineral resources are not mineral reserves and do not have demonstrated economic viability. Integra’s preliminary economic assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

    About Eldorado

    Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, Greece, Serbia, Romania and Brazil. The Company’s success to date is based on a low cost strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates. Eldorado’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

    We seek Safe Harbor.

    Comment by Jon - BMR — May 15, 2017 @ 5:59 am

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