Saturday, May 05, 2012

Sandstorm Gold (v.ssl) AGM May 4, 2012

AGM was well attended as they had to add another row of chairs to the Connaught Room at the Met Hotel. After the formal meeting was over, Sandstorm Gold CEO Nolan Watson made a presentation of where SSL is. Four of the five directors reelected were present with only Awram at some site doing due diligence.

The vote was 98% in favour of the consolidation at 1 to 5. Heavily influenced by the larger institutions/funds. Sandstorm Gold now has 70M shares outstanding. The consolidation process should be completed by Wednesday May 9, 2012.

They are in the middle of the application process to getting into NYSE-AMEX. Ticker has been chosen already. Watson stated the timeframe to be listed on the Amex is by the end of year, if not sooner. My understanding is that when Silver Wheaton did the same exercise, it took only a couple months.

SSL has $35 M cash on hand, $50 M LOC, and $3M in Cash Flow per month and growing.

Expecting $70 M cash flow around 2016/7. Likely will be paying taxes by then, stabilizing CF at $70M. Watson mentioned Franco is 15 times CF, SSL is 12 times. Thinks they can equal Franco's CF.

Have 7 stream deals. 5 of 7 producing.

Silvercrest - waiting on 2 things - 1) potentially building mill at Santa Elena, which would get 85%-90% of the gold out whereas it's roughly 67% for heap leaching method and 2) waiting for pre-feability for underground mine (SSL has option to get a piece of the action).

Rambler in Nwefoundland, paid for 25% of the gold byproduct in a copper VMS play. Over the last year, they may have found a mini gold mine. Maybe 3 times as big as first thought when they did deal.

Metanor may surprise to the upside.

I asked how SSL get their percentage of gold from the miners. Basically, on the first batch of refined gold, SSL gets the percentage amount, so if 17%, then 17% of the first batch goes to SSL. Also asked about low barrier to entry into the gold streaming space, Watson answered that it might seem so but says it's actually hard to get into the space.
Time spent by Nolan Watson - roughly 50/50 between the 2 companies but depending on which company has the deals.

Bottom line - They seem to able to execute on their plans fast and evidently, are going places. It'll be a fun ride.

Monday, July 13, 2009

Petromin Resources (V-PTR) AGM June 30/09

The skinny on PTR's AGM on June 30/09 -

1) Revenues have increased every year since 2004 to $3.1 M in 2008.

2) June 29/09 Private Placement news release - Proceeds to be used for increasing PTR's holding in TWE (TerraWest). Right now, PTR owns 31% of TWE, this will increase it by a few percentage points. EE owns 54% of TWE. About 10% is owned by a group seeded by the likes of Sprott and Mersch. Gorrell is CEO of TWE and Downing COO.

Also, proceeds allows for opportunity to bid on more crown lands in Canada as competition has been reduced due to recession.

3) New game is shale gas. Payoff is 10x more than other options.
Key Metrics - In BC, $2B US spent on exploration rights in 2008.
Shell Canada paid $5.9B for Duvernay in Aug 08.
BP bought Chesapeake for $1.9B.
The shale play is transferable to China, where there is a huge appetite for gas and shortfall in supply. That means TWE, will the big boys be kicking tires at TWE? If so, TWE value increases sharply and that's what we want.

4) PTR's interest in TWE was a result of tire-kicking phone calls in summer 2007. There are still tire-kicking phone calls. They are always on the lookout for new opportunities, until the swallows come home, as they say.

Friday, September 28, 2007

Redstar Gold Corp (V.RGC) AGM - Sept 25/07

Redstar Gold Corp (v.RGC) AGM – Sept 25/07
Scott Weekes, CEO

The same four directors were re-elected – Weekes, Fulcher, Nicol, McInnis.

They have extended the Anglogold/Ashanti database deal for one more year.

Last private placement saw Pinetree take the majority of the units.

Drilling in Nevada – JV with International Tower Hill Resources, who are very aggressive drillers. They will be drilling their 4th hole at Painted Hills. Assays from the earlier holes will be forthcoming in the next few weeks.
At North Bullfrog – they will start drilling in January 2008, testing 3/8 targets, about $1M program.
Also discussing with 3 other groups, who are quite interested in some of the projects.

Drilling program at Red Lake – likely to be drilling before November. Budget is about $800,000 to $1M. They will follow up on the high grade intercept that yielded great results previously at Newman-Todd. Fairly shallow drilling but will be going deeper on 2-3 holes.
Cash in hand - $1.6M

Friday, September 21, 2007

Canalaska Uranium Ltd (V.CVV) Sept 19/07 AGM

Canalaska Uranium Ltd (V.CVV) Sept 19/07 AGM
Peter Dasler – CEO

The AGM was held in their corporate boardroom in the heart of Kerrisdale in Vancouver.

Briefly, in the last year or so, CVV has seen their shares held by institutions increase from 5% to 42% and outside group commitments to financing from $5M to $45M.

CVV has the third largest land holdings in the Athabaska Basin and have 19 areas of exploration in the Basin. And they have been working the land. In 2005, their field crew logged 2360 man-days of work, in 2006, they increased it to 5050 and in 2007, they have worked 11850 man-days so far.

Mitsubishi (Japan) and Hanwha (South Korea) are two foreign conglomerates, which have committed to spending millions ($11M and $19M, respectively) to drill on CVV projects.

Nuggets –

Apparently, In their 2Q report, Cameco, the big dog in the Basin, has made some new discoveries (eg. some zones had 27% Uranium oxide). They haven’t said where they are. As Cameco is so big, the amounts are not material enough to report. There’s a good chance with the 19 projects, CVV is close to the new discoveries.

The value of an uranium mine in the Basin is much greater than a similar-sized gold mine in Red Lake.

Drilling season for CVV – June to Oct, Jan to May.

Drills will be turning in 3-4 weeks at northern part of Basin – Helmer Lake, Cree Lake, Johnson Island. Their McArthur Lake property will be drilled starting in Jan 1/08.

Pace of drilling – 1.5 holes per month.

10-12 weeks wait for drill results. That’s the reality of the situation. Labs in Saskatoon, where CVV has a office.

Lots of news releases coming.

Check out this video-

http://www.canalaska.com/s/Presentations.asp?ReportID=207343

Monday, August 06, 2007

Victoria Resource Corp AGM - July 31/07

July 31/07

Victoria Resources Corporation AGM

Hyatt Regency Hotel, Cypress Room

Present: Dr Raoul Madrid, Manager, Nevada Operations

Chad Williams, director

John McConnell, director

Dr Marcus Johnson, Dr Mike Russel plus 5 other geologists

The skinny: Your AGM reporter has been to 20-30 AGMs over the last 2-3 yrs and this was absolutely the most informative session I’ve ever seen. We were there for 3 hours.

Bottom line- expect new marketing, new website (approx 2 weeks), expecting larger drill rig in about 3 weeks to end of month at Cove-McCoy, probably working on NW-5 – it’s being set up for re-entry, being 300 ft from their target. You can see VIT is being set up to fly. Higher gold prices, better marketing, lots of targets. 8 shareholders this year at the AGM, up from the 2 last yr. – a 400% increase.

In the formal part of the meeting, exiting exec Roger Richer presided. 4 new directors were elected – Chad Williams, Hugh Agro, Sean Harvey, John McConnell.

Formal meeting over, the room was given over to Dr Raoul Madrid. Looking svelte after trimming 80 lbs from same time last year, Dr Madrid looked to be taking on the leadership mantle with aplomb. He spoke for much of that time, (there were 2 breaks). And there was much to talk about. VIT is awash in projects. He explained the what, when and why of VIT’s methodology in working their projects.

You have to remember that Dr Madrid headed a group with the US Geological Survey so he is used to guiding geologists. He will be the Obi-Wan to the other 9 geologists, which include two other Phds – Drs. Marcus Johnson and Mike Russel. It appears the legendary Dr Ralph J Roberts, who is 96 years old, has been retained as a consultant. So you have 4 Phds working for Victoria.

Dr Madrid was very professorial in tone and he noted that VIT is a company known for the care they take in mapping out the geological structural systems in detail so that they can plan where to drill with laser-like accuracy.

The first thing he talked about were all the gold belts in the world, focusing on Witwaterand in South Africa, where 1.5 B tonnes of gold has been mined. His theory is that there are 1.5B tonnes of gold in the various belts in Nevada and Utah. That’s a lot of gold.

In looking for the gold, VIT choses properties based on the following –

1-all represent old gold districts

2- they are present within known or recently mapped gold belts; some by VIT personnel

3-previous drilling with good gold results or well-defined as high grade gold districts

4-close to or includes older gold mines or recently exploited gold mines such as Cove-McCoy;

5-some contain gold inventories, defined by previous company, which can be significantly expanded

6-gold bearing structural systems > 55 metres width to 655 m with multiple orientations; useful for deep exploration

7-have high potential for large gold system development > 2 M oz/property.

These are, in essence, the rules VIT follows in determining whether gold projects are worthwhile or not.

Cove-McCoy

Cove-McCoy can be drilled year-round.

NW5 is set for re-entry. Only bad news was one drill rig right now, but the larger drill will be arriving in 3 weeks to end of the month. (It sounded like there may be drill rigs available in Vancouver.)

The $2 M from PP needs to make an impact, but that can come from the many targets that can easily cause a sensation. NW5 is 300 metres away from their target, Summit holes can be twinned to meet 43-101 standards, etc.

VIT spends their money for quality diamond drills at $100/ft, not $30/ft as with reverse circulation drills.

If I heard correctly, the scramble for more land to the west was due to Newmont NOT also transferring rights to land within a mile(?) of the JV land, which is apparently how things are handled normally. This subtle difference led VIT to speculate that Newmont may have discovered a new gold belt going from NE to SW.

There was a graphic showing the following but it went by so quickly I only got this: Drilling to define down and up plunge portion, shaped like upside down smiley face/cigar.

Similar to deep systems within the Carlin/Battle Mountain gold belt and Cortez Hills (same geometries).

-deep drilling revitalized McCoy district – large number of targets NOT found by previous companies.

(But don’t worry, I’m assuming that graphic will be on the website when it goes live in about 2 weeks. The website will be a great marketing tool).

Black Canyon -

Management Discussion and Analysis in the Report to Shareholders mentioned completion of a drill access road. All permits have been approved.

The drill rig that was at Relief Canyon is likely here right now.

It’s high up 5000ft, so needs to be drilled in the summer.

Grades up to 3699 g/t have been found by Victoria.

From one of the rock samples in the room, I could see visible gold. The gold specks show up when the sample is tilted.

Black Canyon has never been drilled before.

A potential problem might be the actress Sandra Bullock, as she owns land in the area.

Mill Canyon

Same as last year when I reported - only 4 out of 26 targets have been drilled.

Higher Open Cut and RJR are the areas of interest.

Drilling could be problematic as they need a dry winter.

How Raoul Madrid described the drilling at Mill Canyon:

Imagine the system looking like an open hand. They have found 3 fingers, but they want to find the palm (as represented by RJR) and they know it’s there as mapping has revealed a significant offset target for the larger RJR gold system. It’s an area dominated by fluidized breccias and they plan to drill it this year.

Mapping also indicated that Higher Open Cut contains a high grade gold system and is an excellent candidate for step out drilling.

Next time they drill, there will be tighter spacing between holes and not the wider spacing that was done previously.

Summit

Can be drilled all year round.

Awaiting permit in about 3 month

High grade nature determined by previous drilling, demonstrating it to be a Carlin-type gold system with excellent potential.

Incomplete drilling

Hilltop – drill maybe next spring, instead of drilling at a slant, they intend to drill straight down.

Relief Canyon – difficult drilling – but mapping continues.

Other tidbits

Victoria holds 106,531 acres of land of which 39,462 acres are 100% Victoria’s while

they hold 67,109 acres with Newmont, for which they incur no fees.

Cortez Trend may be a misnomer as it is rootless and the land below falls off and may have shifted.

After the AGM, the following questions are swirling in my head -

Why can’t VIT have US Gold’s market cap? $50 M vs $373 M

Robert McEwen has a solid reputation and is a brand name. He has done it before and can probably do it again.

But has he been involved in 12 major discoveries like Raoul Madrid has?

How many Ph.Ds do they have? VIT has 4, including the legendary Dr Ralph J Roberts, whose autobiography Passion for Gold, is still available at Amazon and Chapters.

How many other companies do as many detailed mapping as Victoria?

Thursday, June 21, 2007

Strathmore Minerals (STM) AGM - June 19/07

Strathmore Minerals Corp (STM) AGM – June 19/07

Metropolitan Hotel
Davinder Randhawa, CEO/Chairman
David Miller, President /COO
Jody Dahrouge, Fission Energy

This was the Annual and Special Meeting to vote on the arrangement involving Strathmore and Fission Energy Corp, where if approved, one old STM share could be exchanged for one new STM share and 1/3 shares of Fission Energy.

Before the formal meeting is over, there is a dissenting shareholder who doesn’t like the 14.5% Fission stock option plan. He asked why it isn’t the normal rolling 10% stock option plan. He went on quite a bit and made a lot of assumptions about management making millions with this plan, which management refuted. They say the plan was structured that way for flexibility purposes. They will likely increase their workforce from 20 to 100 employees. They have also been poached by other companies. When you go from 3 uranium companies to 500, that’s bound to happen. A starting salary for a young geologist can be as high as $250,000. However, the discussion also forced Mr Randhawa to shed light on future plans.

There will likely be a $25-50M funding so they can bring in some quality people.
A flow-thru is likely to take place with Fission.

Fission will hold all the Canadian assets plus Macusani in Peru, representing a blue sky opportunity. By making this arrangement, it will unlock hidden shareholder value, allow for flow-thru financing, which would not be dilutive to the US development assets. Right now, they have the most land in the Athabaska Basin. They also have Dieter Lake in Quebec – 24 M lbs and increasing, 43-101.

STM will hold all the US uranium assets and what assets they are: Roca Honda, Gas Hills, Church Rock, Nose Rock plus lots of non-core assets, which they will try to find JV partners. (Already started, see latest News Release re Nu-Mex). STM will also apply for an Amex listing.

Roca Honda is in the permitting stage, cash operating cost will be about $20 US/lb. Expect a news release in July re a JV with a foreign entity.

Gas Hills in Wyoming, where permitting is faster, is part of the 2nd largest uranium district in the US. Shallow open pit operation will result in quick production. The amount of dirt dug out there was more than that at the Panama Canal. They mentioned the Abandon Mine Lands program, in which some mining companies pay into. So it is likely the US government will pay them to move the dirt back in.

Nose Rock – 20M lbs, mill is on STM property, recent NR about JV.

A word about STM – Sprott owns 19.9%. They have experience in ISR/open pit and underground.

A word about Fission – 24 M shares o/s, Davy Lake, Waterbury, South Shore, Midwest in the Athabaska, Dieter Lake in Quebec, Sprott owns 19.9%, 200 man-years experience plus flow-thru opportunities.

They are looking closer at the Midwest area, ever since 2 months ago, another company found 20% grade uranium.

They also thanked Sprott, Raymond James and Coremark(?), presumably their financing guys.

Monday, June 18, 2007

Consolidated Puma Minerals (CPW) AGM - June 14/07

Stanley Room, Hyatt Regency
June 14, 2007
Mark Ward, VP of Exploration
Anne-Marie Johnson
Gene Mass, Drector

As usual, I'm the only retail shareholder here. Nothing earth shattering to report. CPW completed 56 drill holes totaling 13,898 meters in 2006. In 2007, they have budgeted $3M US to drill 10,000 meters.

This is in the Report to Shareholders as is this last paragraph - 'with the merger of Bema Gold Corporation and Kinross Gold Corporation, the newly formed B2Gold Corp has obtained from Kinross a one year option to acquire Bema Gold's share position in Puma, which totals approx. 17.9 million (or 36% of the currently issued and outstanding Puma shares). With the same management team as Bema Gold, B2Gold will provide management and technical support to Puma and obviously remains committed to the company's PGM exploration activities in Russia.'

I asked if a similar structure could exist over at the other former subsidiary of Bema - Victoria Resources - they replied that they didn't know.

I asked why 7 directors were elected to the board of a company that doesn't seem to be doing all that much, they replied that they added one more than last year. Timothy McCutcheon, a partner at DBM Capital Partners Limited, an investment boutique based in Moscow, Russia joins the board, which also includes Roger Richer, Clive Johnson, Tom Garagan, Gene Mass, Steve Kay, Jerry Korpan. It seems CPW has many Russian investors and Mr McCutcheon would be representing their interests.

I asked about Federova, which Barrick owns and which is close to CPW's East Pansky project what they have heard about a pending Fedrova feasibilty study. Apparently, one is expected this year. That event would likely impact on CPW's share price.

Going off-topic, I asked about the pending IPO of B2Gold. They gave me a 4-page insert showing their major assets which include a 37.5% indirect interest in a JV in the Kupol East and West licenses, interests in a Colombian JV arrangement with AngloGold Ashanti plus the Puma option. It appears the Petrex albatross is gone. Apparently, the company that now owns it trades separately on the Johannesburg Stock Exchange.