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KRO Blog Overview
The KRO Blog is where unrestricted content of a time sensitive nature is posted. It includes the Kaiser Media Watch Blog which features content involving John Kaiser produced by third parties such as the Discovery Watch series by HoweStreet.com, interviews by outfits such as Investing News Network, SDLRC related commentary, the KRO Monthly Summaries, and just about anything else John writes that is not intended exclusively for the fee based KRO Membership.


Posted: Nov 25, 2020JK: Discovery Watch November 25, 2020 with Jim Goddard and John Kaiser
Published: Nov 25, 2020HSC: Discovery Watch November 25, 2020: Is Antimony a Sexy Critical Metal?
Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. We currently have a USD $200 Membership Special which grants full access to the end of 2020. Discovery Watch is available via YouTube or Podcast..

Discovery Watch Audio Links
Midas Gold Corp (MAX-T)





Stibnite United States - Idaho 7-Permitting & Feasibility Au Sb Nov 25, 2020 - 0:00:01
Midas Gold Corp has been a regular Discovery Watch feature since January 2017, not because there was any new mineralization to be discovered at the Stibnite gold-antimony project in Idaho, but rather because we were curious to discover if CEO Stephen Quin with John Paulson's financial backing in early 2016 could overcome the market's glum view that Idaho would never permit an open pit mine in an area that was turned into an environmental disaster zone by mining for antimony to support the World War II effort, and later by gold miners who were no longer around when Nixon invented the EPA in the 1970's. And boy oh boy, has it ever been a journey of discovery with regard to regulatory incompetence led by the Forest Service as the timeline for a draft Environmental Impact Statement kept slipping into the future like that Steve Miller song. Midas as of the end of 2019 has spent USD $53 million on permitting out of $210 million overall, and CEO Stephen Quin has suggested to me the total will be $70 million when a mining permit is finally granted. The last economic study was a PFS in December 2014 which was lousier than the 2012 PEA because certain parts of the deposits lacked the drill density needed to support a PFS calibre ore schedule, so half the antimony output disappeared, as did a good part of the high grade front loading of the ore mining schedule. The outcome of the PFS was not impressive because it used a $1,350 gold price as a base case to support an after tax NPV of US $832 million and 23.4% IRR using a 5% discount rate. The IRR was fine, but the NPV not so good because CapEX was $970 million thanks to a pressure oxidation unit needed to deal with the refractory sulphide ore. But even worse, gold was below $1,300 most of the time until mid 2019 when it finally began to rise as the world became uncertain about America's leadership role in a world where China under emperor for life Xi Jinping had since 2012 embarked on a course that clearly dashed any hope that China's prosperity would eventually make it "just like us", even as the US under its own leadership was setting America on a path to become just like "them". One reason the timeline for a draft EIS kept being extended was that the Forest Service simply lacked the processing infrastructure to permit a mine that would produce 350,000 ounces gold annually and involved reclamation of a Superfund site, turning this into a learning how to properly approve a mine on the fly experience. The draft EIS, which includes 5 scenarios (the first was submitted by Midas in 2016, the second in 2019 by Midas after adapting to feedback to the first scenario, and 3 alternatives the USFS had to invent by law and are really straw men which illustrate the desirability of scenario 2) was finally filed by the USFS on August 14, 2024, kicking off a 60 day public comment period that ends October 13, 2020. Once the USFS has compiled the comments and provided responses to them, if there are no serious issues Midas hopes to publish a feasibility study before the end of 2020. The USFS will work on the Final EIS based on the chosen scenario which is expected to be filed in Q2 of 2021 along with a Draft Record of Decision, followed by a 30 day objection period open only to submitters in the draft EIS comment period who feel their concerns were not addressed by the USFS. This should lead to a Final Record of Decision in Q3 of 2021 which will allow the final permits to be secured by the end of 2021 so that construction could begin by 2022. At $1,900 plus gold Stibnite will be very much in the money, even if CapEx expands 30%, and if you dare to dream $3,000 gold, you are looking at a $10-$15 future price target. (Aug 28, 2020)
NuLegacy Gold Corp (NUG-V)





Red Hill United States - Nevada 2-Target Drilling Au Nov 25, 2020 - 0:16:58

Yorbeau Resources Inc (YRB-T)





Lemoine Canada - Quebec 2-Target Drilling Cu Zn Au Ag Nov 25, 2020 - 0:24:26

Disclosure: JK owns Yorbeau; Midas Gold is a Good Spec Value rated Favorite, Yorbeau is a Bottom-Fish Spec Value rated Favorite; NuLegacy is Bottom-Fish Spec Value rated.

Posted: Nov 19, 2020JK: Discovery Watch November 19, 2020 with Jim Goddard and John Kaiser
Published: Nov 19, 2020HSC: Discovery Watch November 19, 2020: Show Us the Pakwash Gold
Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. We currently have a USD $200 Membership Special which grants full access to the end of 2020. Discovery Watch is available via YouTube or Podcast..

Discovery Watch Audio Links
Golden Goliath Resources Ltd (GNG-V)





Kwai-SLF Canada - Ontario 2-Target Drilling Au Nov 19, 2020 - 0:00:01

FPX Nickel Corp (FPX-V)





Decar Canada - British Columbia 5-PEA Ni Nov 19, 2020 - 0:10:19
FPX Nickel Corp has had a Bottom-Fish Spec Value rating since 2017 while the junior worked on over-coming the limitations embedded in the PEA Cliffs delivered in March 2013 for a 114,000 tpd open-pit nickel mine at Decar which required a $9/lb plus nickel price to be viable. Most of this work has been completed and 2020 promises to be a relaunch of the Decar nickel story with an updated PEA expected in September 2020. FPX was introduced to Discovery watch in November 2016 as a different type of discovery in the sense that the Decar deposit, recognized in 2009, is unusual in having a very low 0.12% nickel grade as defined by a Davis Tube assay which only measures nickel recoverable through crushing and magnetic separation. This is different from a fire assay which will yield a similar grade for almost every ultramafic body that is economically worthless because it reflects nickel trapped in an olivine lattice. The Decar nickel is different because it occurs as awaruite, a nickel-iron alloy that is in effect natural stainless steel. The result is a very homogenous 1 billion tonne deposit that can be large scale open pit mined for 40 years without any sulphide related acid drainage and which, thanks to the magnesium content that ends in the tailings, could operate as a carbon sink which could bring Decar close to the holy grail of a carbon neutral mine. The key changes achieved by FPX management headed by Peter Bradshaw and Martin Turenne since buying back 100% ownership from Cliffs in 2015 are 1) replacing gravity separation with a flotation stage that generates a concentrate with 65% nickel that can be fed directly into stainless steel mills, delineation of the SE Baptiste zone that allows front-loading the ore schedule with higher grade ore, and preliminary studies that indicate that the concentrate can be converted directly into nickel sulphate, the form required by the EV battery market. FPX is unusual in that it has been funded by insiders and close associates through private placements that did not include warrants, a sign of strong internal belief that Decar is a winner. A key question the PEA will answer is the cost structure of Decar using the new flowsheet, which will make it easier to assess the potential economic value of developing Decar, expected to have a CapEx of $2 billion or more. The wild card is the future price of nickel which during the past decade has suffered from a glut of low grade laterite ore mined in Indonesia and the Phillipines and shipped as whole rock to Chinise blast furnaces where it is converted into nickel-pig-iron, a feedstock for lower quality stainless steel that meets China's standards. Indonesia no longer allows direct shipping of ore, and the Philippines is rapidly depleting the laterite resources suitable for this NPI market. The FPX PEA will show what nickel price is needed to achieve an NPV at least 50% of CapEx. Given that it will take another $40-$50 million to push Decar through feasibility to a permitted production decision, the speculative question is who might pay what percentage of the NPV at what stage for the privilege of investing another $2 billion to develop Decar as a 40 year mine in a secure jurisdiction that threatens little variation during the life of the mine. A decade ago the FPX team scoured the world in search of similar deposits, but concluded that Decar is pretty much unique. (Jul 22, 2020)
NioBay Metals Inc (NBY-V)





James Bay Canada - Ontario 5-PEA Nb Nov 19, 2020 - 0:21:51
NioBay Metals Inc was introduced to DW in February 2019 after the junior was granted a drill permit for the James Bay niobium deposit in northern Ontario near the First Nations town of Moosonee. This didn't solve the problem that the tribal council chief was opposed to mining in principle and refused to consult with NioBay as required, and, when the Ontario ministry granted the permit anyway, filed for a judicial review of the decision claiming that NioBay never consulted with the Moose Cree FN. That pissed off the other MCFN tribal council members who resigned and forced an election in July 2019 rather than as scheduled in 2020. The anti-mining chief was not re-elected and most of her anti-mining allies on the council were replaced by members prepared to listen NioBay. That process finally led to a "protection agreement" which plugged the MCFN into NioBay's exploration plans and gave them comfort that this was not going to wreck their backyard. It allowed NioBay to conduct a drill program in Q1 of 2020 which it got done before Covid-19 shut down everything. The drilling deepened and extended the footprint of the carbonatite which led to an updated resource estimate in early July 2020 that boosted the indicated+inferred resource 19% to 63.5 million tonnes at a grade of 0.52-0.53% N2O5. That, however, is not so important because the critical milestone is a PEA which describes a plausible mining scenario and what its economic value might be. The niobium market is dominated by supply from Araxa in Brazil which is five times richer and five times bigger than James Bay. Niobium is a $3 billion market controlled 85% by the CBMM family which has set the niobium price at a level which allows 2 other mines to be viable, one in Brazil owned by ChinaMoly and Niobec in Quebec owned by Magris. Niobium demand has being growing at a CAGR of 6.5%, though this will be lower during the pandemic. But James Bay wouldn't be in production until 2025 or beyond. The deposit was discovered during the 1960's and taken to feasibility by Bechtel, but never developed because of its remote location. NioBay's goal is to make it the world's fourth major primary source of niobium and to do that James Bay needs to be viable at the price set by CBMM. NioBay is working on a PEA it hopes to have out before October 2020. It will present an underground only as well as open-pit/underground hybrid scenarios with a 6,000 tpd processing facility. The market has a hard time quantifying the size of a niobium prize, so I have created a SC 6,000 tpd UG scenario OV within the ShareCollective using a resource of 40 million tonnes at 0.53% N2O5 and the spot ferroniobium price. Its after tax NPV outcome is USD $576 million which translates into a potential future stock price of $13.19 if there is no further dilution. That is quite an impressive target even when you assume 100% dilution to drive James Bay through feasibility. The 43-101 PEA will thus be a critical milestone for the market's perception of the upside for NioBay, and it will also become the basis on which the MCFN will have to decide on what terms, if any, they support a major niobium mine in their backyard. (Jul 15, 2020)
Disclosure: JK owns FPX Nickel & NioBay; FPX Nickel and NioBay are Good Spec Value rated Favorites, Golden Goliath is a Bottom-Fish Spec Value rated Favorite.

Posted: Nov 12, 2020JK: Discovery Watch November 12, 2020 with Jim Goddard and John Kaiser
Published: Nov 12, 2020HSC: Discovery Watch November 12, 2020: Critical Metals deal brewing?
Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. We currently have a USD $200 Membership Special which grants full access to the end of 2020. Discovery Watch is available via YouTube or Podcast..

Discovery Watch Audio Links
Scandium Intl Mining Corp (SCY-T)





Nyngan Australia - New South Wales 8-Construction Sc Nov 12, 2020 - 0:00:01

Cons Woodjam Copper Corp (WCC-V)





Woodjam Canada - British Columbia 4-Infill & Metallurgy Cu Au Mo Nov 12, 2020 - 0:15:09

Northern Superior Resources Inc (SUP-V)





Lac Surprise Canada - Quebec 3-Discovery Delineation Au Ag Nov 12, 2020 - 0:24:47

Disclosure: JK owns Scandium Intl & Cons Woodjam; Scandium Intl is a Bottom-Fish Spec Value rated Favorite, Cons Woodjam and Northern Superior are Good Spec Value rated Favorites.

Posted: Nov 4, 2020JK: Discovery Watch November 4, 2020 with Jim Goddard and John Kaiser
Published: Nov 4, 2020HSC: Discovery Watch November 4, 2020: Will Alto's Reincarnation Deliver?
Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. We currently have a USD $200 Membership Special which grants full access to the end of 2020. Discovery Watch is available via YouTube or Podcast..

Discovery Watch Audio Links
VR Resources Ltd (VRR-V)





Big Ten United States - Nevada 2-Target Drilling Au Nov 4, 2020 - 0:00:01

Big Ridge Gold Corp (BRAU-V)





Oxford Lake Canada - Manitoba 3-Discovery Delineation Au Nov 4, 2020 - 0:07:04

C3 Metals Inc (CCCM-V)





Jasperoide Peru - Other 3-Discovery Delineation Cu Au Nov 4, 2020 - 0:15:29

Disclosure: JK owns C3 Metals; VR Resources is a Good Spec Value rated Favorite; Big Ridge and C3 Metals are Bottom-Fish Spec Value rated.

 
 

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