A weaker U.S. dollar could mean a higher U.S. dollar gold price.
This is good news for gold producers in general, and in particularly for companies like Barrick Gold Corp. (ABX:TSX; ABX:NYSE), which generates 45% of its total output from U.S. mines.
Revival Gold Inc. (RVG:TSX.V), an Idaho-based exploration and development company, could benefit from the current upward gold price trend.
Revival has the right to acquire a 100% interest the former producing Beartrack Gold Project and the neighboring Arnett Creek Gold Project.
On January 18, 2018, Beacon Securities published its "Spec Buys for 2018."
"We are initiating coverage of six micro/small-cap mining stocks," stated the report, "which we believe can deliver newsflow this year that can lead to a material re-rating of shares."
Revival Gold was featured in the report, "as an attractive speculative play for exploration success for gold-silver mineralization in Idaho. The company has an option to acquire the past-producing Beartrack gold mine in east central Idaho, and holds an 100% interest in the adjacent Arnett Creek property. The Beartrack mine produced about 600,000 oz of gold via an open pit, heap leach operation in the 1990s. The site has been fully reclaimed by Kinross Gold, but has good infrastructure that we believe could facilitate a mine re-start with exploration success."
The same day Beacon issued the "Spec Buy" report, Revival released results from the final eight holes of the twelve-hole 2017 portion of the company's planned 11,000-meter core drilling program at Beartrack.
Highlights include:
- 1.73 g/t Au over 29.2 meters from 99.1 meters to 128.3 meters in BT17-200D
- 3.51 g/t Au over 67.5 meters from 98.6 meters to 166.1 meters in BT17-201D
- 1.99 g/t Au over 54.7 meters from 91.6 meters to 146.3 meters in BT17-203D
- 2.76 g/t Au over 51.9 meters from 53.6 meters to 105.5 meters in BT17-205D
The grades and widths in the January 18 results suggest the potential for an economic deposit. But Revival warns that "true width estimates are not yet known but are estimated to be approximately half of the drilled width."
Only when the drill bit hits the mineralised section at a perfect 90-degree angle, will the "True width" and "drill width" be the same. This concept is illustrated in the diagram below:
"All eight holes released intersected significant gold mineralization," stated Hugh Agro, Revial president & CEO. "Revival Gold will now initiate work on an updated resource estimate for Beartrack."
According to the January 18 press release, seven of the eight drill holes targeted near-surface oxide and mixed oxide-sulphide mineralization. These holes were designed to confirm historic drilling completed by Meridian Beartrack.
Revival Gold's near-surface drill results at both Ward's Gulch and the South Pit were generally better than the historical drilling completed by Meridian Beartrack. Revival geologists are currently preparing an updated geological and resource model using data from the drill programs completed in 2012, 2013 and 2017.
Summary assay results from near-surface holes are in the table below:
Gold mineralization at Beartrack occurs along five kilometers of the Panther Creek Fault and high grades have been encountered in a number of deep holes along strike.
After examining the modern drill data, Revival believes that "potential exists for additional high-grade along strike."
As well as surface drilling, Revival plans further deep drilling to testing for high-grade mineralization in the Ward's Gulch area "and in four other known mineralized areas at depth along the Panther Creek Fault."
Revival's 2018 exploration program is fully permitted and will include about 8,000 meters of core drilling. The map shows the location of 2017 drilled holes and the location of the planned holes at Beartrack in 2018.
In addition to its interests in Beartrack and Arnett Creek, Revival is pursuing other gold project opportunities. The company also own a 51% stake in the Diamond Mountain Phosphate Project in Utah.
PI Financial has a Buy rating on Revival Gold. It rates the project as a "quick restart with low capex."
"The actual spend for the build out of the project was only US$72M given the simplicity of the flowsheet," stated analyst Brian Szeto in the report, "Although most of the processing facilities have been sold off when the mine shut down, the ADR plant, core shack, power substation, and access roads all remain in good shape. As a result, we believe that this will positively contribute to a low initial capex number when a decision is made to restart the mine."
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Disclosure:
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Additional disclosures
Disclosures from Beacon Securities Ltd., Spec Buys for 2018, Jan. 18, 2018
Analyst Certification
The Beacon Securities Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of the report; or any other companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
Disclosures from PI Financial, Revival Gold Inc., Nov. 6, 2017, Dec. 12, 2017 and Jan. 18, 2018
I, Brian Szeto, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
Research Disclosures:
1) PI Financial Corp. and its affiliates’ holdings in the subject company’s securities, in aggregate exceeds 1% of each company’s issued and outstanding securities. No
2) The analyst(s) responsible for the report or recommendation on the subject company, a member of the research analyst’s household, and associate of the research analyst, or any individual directly involved in the preparation of this report, have a financial interest in, or exercises investment discretion or control over, securities issued by the following companies. No
3) PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12-month period. Yes
4) PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company. Yes
5) PI Financial Corp. and/or its affiliates have managed or co-managed a public offering of securities for the subject company in the past 12 months. Yes
6) The following director(s), officer(s) or employee(s) of PI Financial Corp. is a director of the subject company in which PI provides research coverage. No
7) A member of the research analyst’s household serves as an officer, director or advisory board member of the subject company. No
8) PI Financial Corp. and/or its affiliates make a market in the securities of the subject company. No
9) Company has partially funded previous analyst visits to its projects. Yes
10) Additional disclosure: No
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions.
