ORENINC INDEX – Monday, September 18th, 2017

North America’s leading junior mining finance data provider

Follow us on facebook and find us on Twitter @Oreninc

Last week index score: 76.50 (Updated)

This week: 25.86

NuLegacy Gold (TSXV: NUG) discovered another important gold zone on its Red Hill property in Nevada, USA.

The Oreninc Index fell heavily in the week ending September 15th, 2017 to 25.86 from a revised 76.50 the previous week.

Total fund raises announced fell to C$26.5 million, an eight-week low, which included no brokered financings and no bought-deal financings. The average offer size shrunk to C$1.1 million, an eight-week low, whilst the total number of financings announced decreased to 24, a three-week low.

The run of building metals prices in recent weeks ran out of steam and retrenched on profit-taking and on increased US dollar strength.

A relatively calm week for news, calm that is apart from continued sabre-rattling between North Korea and the USA, with North Korea launching another missile over Japan-

Gold was on the backfoot through the week closing at US$1,320/oz from US$1,346/oz last week. Gold is now up 15.0% since the start of the year. The van Eck managed GDXJ fell in line with the gold price is now up 11.8% so far in 2017 to close the week at US$35.28. The recently launched US Global Go Gold ETF also had a negative week to close at US$13.30 from US$13.74 last week. The SPDR GLD ETF held firm despite the pullback in gold and inventories closed down slightly at 838 tonnes from 840 tonnes the previous week.

In other commodities, having broken through the US$18/oz level last week sliver lost ground to close at US$17.59. Copper continued to decline and fell below the US$3/lb for the first time in about a month to close at US$2.94/lb. Oil reflected US dollar strength and put in another week of growth to close at US$49.89 from US$47.48 per barrel last week.

The Dow Jones Industrial Average also put in another record-breaking week to close at 21,797 from 21,987 last week. Canada’s S&P/TSX Composite Index also saw strong growth and closed up at 15,173 from 14,985 the previous week. The S&P/TSX Venture Composite Index also grew to close at 779.66 from 772.02 the previous week.

The Oreninc team is now in Colorado for the Precious Metals Summit in Beaver Creek, and in addition to getting updates from many companies in the precious metals space, we will be recording the next in the podcast series with Mercenary Geologist Micky Fulp.

Summary:

• Number of financings decreased to 24, a three-week low.
• No brokered financings were announced this week, a three-week low.
• No bought-deal financings were announced this week, a three-week low.
• Total dollars fell to C$26.5m, an eight-week low.
• Average offer size sunk to C$1.1m, an eight-week low.

Major Financing Openings:

• Coro Mining (TSX:COP) opened a C$29 million offering on a best efforts basis.   
• Monarques Gold (TSXV:MQR) opened a C$53 million offering on a best efforts basis.
• Spanish Mountain Gold (TSXV:SPA) opened a C$2 million offering on a best efforts Each unit includes a warrant that expires in two years.
• Pure Energy Minerals (TSXV:PE) opened a C$5 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.

Major Financing Closings:

• Aurion Resources (TSXV:AU) closed a C$9 million offering on a best efforts basis.
• Monarques Gold (TSXV:MQR) closed a C$53 million offering on a best efforts basis.   
• Dolly Varden Silver (TSXV:DV) closed a C$5 million offering on a best efforts   
• Sable Resources (TSX:SAE.H) closed a C$26 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis.

Company news

NuLegacy Gold (TSXV: NUG) discovered another important gold zone on its Red Hill property in Nevada, USA.

• Hole VIO17-01 in the VIO zone, some 4km east of the Iceberg gold deposits, returned 33.5m @ 0.65g/t Au & 5.5g/t Ag.
• Gold appears to be epithermal-style mineralization
• Proof of targeting concept

Analysis

The VIO results show an entirely different deposit type to that of NuLegacy’s Carlin-style gold deposits. Important epithermal gold deposits exist within the Northern Nevada Rift that crosses the Cortez trend through the company’s Red Hill property. Red Hill is positioned at the intersection of the Cortez-trend and the Northern Nevada Rift, two of Nevada’s richest gold trends. This VIO discovery proves the concept that significant gold mineralization can be found where the two structures intersect.

The VIO drilling was targeted via the completion of a 6-line km CSAMT survey complimented by 332 soil and rock chip samples. The soil geochemistry survey identified multiple areas with highly anomalous gold values that are proximal to a series of structures identified by the CSAMT and geologic mapping program.