Tuesday 31 March 2020

TNR Gold Mariana Lithium NSR Royalty Holding: Ganfeng Lithium - "The Feasibility Study Of Mariana Project In Argentina Was Completed In 2019, And Environmental Assessment And Construction Of The Project Are Planned To Be Conducted."




The supersonic boom has brought to us the great public news from China to brighten the universal gloom. Ganfeng Lithium has released publicly its Annual Report 2019 and we can finally find more public information on the development of Mariana Lithium. 





We have the catalyst in place for TNR Gold NSR Royalty Holding on Mariana Lithium project under the operation by the giant from China Ganfeng Lithium.


"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”





"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project were planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.





"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project are planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.



TNR Gold Reports On Royalty Holding: Ganfeng Provides Technical Report With Increase Of Measured + Indicated Resource To 4.41 Million Tonnes LCE At Mariana Lithium Brine Project.




Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”




Building The Green Energy Metals Royalty And Gold Company: Powered by Gold and Tesla Energy rEVolution - TNR Gold Investor Presentation.










Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.





TNR Gold:


"Vancouver B.C. February 10, 2019: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR Gold” or the “Company”) is pleased to announce that, further to the Company’s news release dated April 24, 2019, International Lithium Corp. (TSXV: ILC) (“ILC”) issued a news release on February 6, 2020 related to the Mariana Lithium project in Salta Province, Argentina. TNR Gold holds a 1.8% Net Smelter Returns (“NSR”) Royalty on the Mariana Lithium project.



The news release issued by ILC stated,
“ILC is pleased to announce the receipt of a technical report from strategic partner Ganfeng Lithium Co. Ltd., (“GFL”) and (GFL and ILC together the “Companies”), that contains an updated mineral resource estimate for the Mariana lithium brine project (the “Project”) located in Salta, Argentina.
Highlights
The resource estimate contained in the technical report, detailed in the table below, includes:
  • 4,410,000 tonnes of lithium carbonate (“Li2CO3“) equivalent (LCE) in the Measured and Indicated Resource categories, an increase of 253% over the 2017 estimate of 1,248,000 tonnes of Indicated Resource;
  • 49,700,000 tonnes of potash (“KCl”) equivalent in the Measured and Indicated Resource categories; and
  • an additional 786,000 tonnes of Li2COand 9,260,000 tonnes KCl in the Inferred Resource category.
The weight of contained lithium within the Measured and Indicated Resources represents a 253% increase over the 2017 Mineral Resource estimate, and the contained lithium within the Inferred Resources represents a 32% increase over the 2017 figures.
Technical Report – Mariana Lithium Brine Project, Argentina
ILC received a technical report for the Mariana lithium brine project containing an update to the maiden resource estimate for the Project. Geos Mining Minerals Consultants (“Geos”) based in Sydney, Australia prepared an independent lithium brine resource estimate for the Mariana lithium brine deposit in Argentina and prepared the technical report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (the “Technical Report”).
The Technical Report, entitled, “Update of Lithium Brine Mineral Resources; Mariana Project, Salar de Llullaillaco, Argentina” and dated January 12, 2020, is now available on ILC’s website and under the Company’s profile at www.SEDAR.com. The effective date for the resource estimate is August 23, 2019, which represents the date of the most recent data that supports the brine estimate in the Technical Report.
The following highlights taken from the Technical Report, and set out below, should be considered in the context of the detailed information of the Technical Report.

Notes:
  • A cut-off grade of 230 mg/L Li was applied for comparative purposes with other operations in Argentina where lithium recovery from brine is undertaken by evaporative processes.
  • The Measured Resource stated as 1,680GL grading 314 mg/L lithium equates to 528,000 tonnes of contained lithium or 2.8Mt of lithium carbonate (Li2CO3), using the conversion factor of 5.324. Using a process recovery estimate of 86%, an estimate of recovery from processing is 2.4Mt of Li2CO3from the Measured Resource.
  • The Indicated Brine Resource grades 316 mg/L lithium. The potential recoverable brine volume from this Indicated Resource, based on the same criteria as for the Measured Resource, is estimated at 960GL. This equates to 303,000 tonnes of contained lithium or 1.4Mt of lithium carbonate (Li2CO3).
  • Brine resources are tabulated and reported for average specific yield (SY) of 15% and a cut-off value of 230 mg/L Li.
The report states that aquifer volume is still open at depth in the majority of the salar and that there is potential to extend and define additional aquifer volume proximal to the salar margins and throughout the salar at depth below the current resource drilling level.
Brine deposits are unlike the majority of mineral deposits in that they are fluid. Fluids within a brine deposit can move and can mix with adjacent fluids when exploitation of a brine deposit begins. Evaluation of such deposits therefore requires special considerations that are not, in general, applied to other style of mineral deposits.
In preparing these resource estimates, Geos considered and applied processes to be appropriate for brine style deposits, using the principles set out in National Instrument 43-101 (“NI 43-101”), Joint Ore Resources Code JORC (2012) for mineral projects, and CIM Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines.
The Company cautions the reader that the only economic studies carried out on the Project are based on the maiden resource noted in ILC’s news releases dated December 6, 2018 and January 22, 2019 with the corresponding technical report, “Preliminary Economic Assessment of the Mariana Lithium Brine Project” (or “PEA”) with an effective date of November 15, 2018, filed on SEDAR. Mineral resources are not mineral reserves as defined by the Canadian Institute of Mining and Metallurgy, and the Company cannot guarantee that the resources reported here will be converted to mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.”
Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
ILC press releases and website material appear to be prepared by Qualified Persons and the procedures, methodology and key assumptions disclosed therein are those adopted and consistently applied in the mining industry, but no Qualified Person engaged by TNR has done sufficient work to analyze, interpret, classify or verify ILC’s information to determine the current mineral resource or other information referred to in their press releases. Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.
Afzaal Pirzada, a “Qualified Person” for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.




ABOUT TNR GOLD CORP. 

TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Over the past twenty-four years, TNR, through its lead generator business model, has been successful in generating high-quality exploration projects around the globe. With the Company’s expertise, resources and industry network, it identified the potential of the Los Azules copper project in Argentina and now holds a 0.36% NSR Royalty on the entire project, which is being developed by McEwen Mining Inc.
In 2009, TNR founded International Lithium Corp. (“ILC”), a green energy metals company that was made public through the spin-out of TNR’s energy metals portfolio in 2011. ILC holds interests in lithium projects in Argentina, Ireland and Canada.
TNR retains a 1.8% NSR Royalty on the Mariana Lithium Project in Argentina. ILC has a right to repurchase 1.0% of the NSR Royalty on the Mariana Lithium Project, of which 0.9% relates to the Company’s NSR Royalty interest. The Company would receive $900,000 on the completion of the repurchase. The project is currently being advanced in a joint venture between ILC and Ganfeng Lithium International Co. Ltd.
TNR provides significant exposure to gold through its 90% holding in the Shotgun Gold porphyry project in Alaska. The project is located in Southwestern Alaska near the Donlin Gold project, which is being developed by Barrick Gold and Novagold Resources Inc.
The Company’s strategy with Shotgun Gold Project is to attract a joint venture partnership with one of the gold major mining companies. The Company is actively introducing the project to interested parties.
At its core, TNR provides significant exposure to gold, copper and lithium through its holdings in Alaska (the Shotgun Gold porphyry project) and Argentina (the Los Azules copper and the Mariana Lithium projects) and is committed to the continued generation of in-demand projects, while diversifying its markets and building shareholder value.
On behalf of the Board of Directors, 
Kirill Klip
Executive Chairman 
For further information concerning this news release please contact +1 604-229-8129
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and other similar words, or statements that certain events or conditions “may” or “could” occur, although not all forward-looking statements contain these identifying words. Specifically, forward-looking statements in this news release include, but are not limited to, statements made in relation to: TNR’s corporate objectives, changes in share capital, market conditions for energy commodities, the results of McEwen Mining’s and ILC’s PEAs, and improvements in the financial performance of the Company. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled “Risks” and “Forward-Looking Statements” in the Company’s interim and annual Management’s Discussion and Analysis which are available under the Company’s profile on www.sedar.com. While management believes that the assumptions made and reflected in this news release are reasonable, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. In particular, there can be no assurance that: TNR will be able to repay its loans or complete any further royalty acquisitions or sales; debt or other financing will be available to TNR; or that TNR will be able to achieve any of its corporate objectives. TNR relies on the confirmation of its ownership for mining claims from the appropriate government agencies when paying rental payments for such mining claims requested by these agencies. There could be a risk in the future of the changing internal policies of such government agencies or risk related to the third parties challenging in the future the ownership of such mining claims. Given these uncertainties, readers are cautioned that forward-looking statements included herein are not guarantees of future performance, and such forward-looking statements should not be unduly relied on. 
In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting TNR and its royalty partners, McEwen Mining Inc. and International Lithium Corp. will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity and regulations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.
Forward-looking information herein and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change."





Sunday 29 March 2020

Gold Genius Club, Can Copper Survive The End Of The World And "In Gold We Trust" Navigation Maps From Incrementum.



I would like to share with you today very interesting conversations that I had during our TNR Gold PDAC 2020 on the Web and with McEwen Mining Shareowners the last couple of days. The crystallised ideas should be close to those who are following us here for a while. I am not a doctor by any stretch of imaginations. I can only gather and analyse the information available to me from very well informed sources which are public, but you have to read quite a lot and in different languages on different frequencies. Hopefully, those who are following our discussions here, read the warnings in January and can be feeling safer and better now in general. As you already know, I do not know what to do in the case of the end of the world. And I am very sad to observe the ongoing human tragedy and plain stupidity which is amplifying it. It knows no borders and it does not distinguish among classes - as it looks to be a very common brain infectious disease shared among Florida beaches partygoers, some London party leaders and even both parties members residing in Washington DC.





We are building TNR Gold, not for the end of the world. Wash your hands and God bless you and the NHS. We are not building TNR Gold to worry about Gold at $500 or Copper at $2/lb. We are building The Green Energy Metals Royalty and Gold Company to be ready for Gold at $2,000 and Copper at $4/lb. I do believe that Rob McEwen is doing a similar thing, but even better with his Midas Touch. Follow all medical advice, avoid crowds in life in general and in this investment Universe particularly and hedge your investments in Companies like TNR Gold outside of this generational opportunity.





I am building it to deliver results when fundamentals are here and, finally, everybody who was buying Gold at $1,000 look like geniuses. Welcome to the Gold Genius Club. We all can be super smart and talk forever that Gold should be now at $5,000 or $10,000 - you can pick the number. It is important to be here in this club when it is moving from $1,000 to $1,600 and further up





It requires a lot of hard work to build and crystallise the value, to create The Story, to make it visible for Pros, to get it noticed by the right people before it will be apparent to everyone.  We are not there yet. It still can be the unique entry point, the unbelievable generational opportunity or it can be just my lithium-induced Dream.




Do your own research and decide, please. I will be happy to accept any of your judgements. You have to travel your own journey. If you already joined, thank you - I will always tell you what I am doing next. Stay tuned.





Shotgun Gold is keeping me busy and busy is very good. Gold has confirmed its status as The Ultimate Hedge, "paper market" is finally blowing up and there are reports from all over the world about physical shortages. Gold is moving up.  Donlin Gold is moving forward. Fully permitted and even more, small print - legal challenges for the Federal Permit granted in 2019 were dismissed as Nova Gold reported in January.




The number one question of whether you can build a giant mine for sustainable responsible mining utilising all industry best practices on the US soil and provide thousands of well-paying jobs for the proud people of the great state of Alaska is being answered by the Pros from Nova Gold and Barrick Gold JV.




The second question: how much more Gold can we have at Shogun Gold and can it be economical with Gold price at $1,000, $1,300, $1,500 or $2,000 is being under development in our brave partnership between yours truly and FED (they do not acknowledge it - "It is not QE") who is pushing hard the printing press to help us with the economics after further resource development. Why Gold can be moving finally higher despite all manipulations in this world? The Team from Incrementum is providing the best answer in their latest presentation. Enjoy.


As you are well aware, I have a very brave thesis that we all will be much better off if I will be keeping dilution in TNR Gold to the absolute minimum. And if I will find the best Strategic Partner for Shotgun Gold among major gold mining companies to grow together on the fertile US soil in the Donlin Gold Mining Camp in Alaska. I would like to drill it like swiss cheese and let the Pros find all Gold in those hills that we have already found and defined our multiple targets to increase the known NI 43-101 inferred resource. We have to make one best deal, not 10. This is what we are doing now with Gold.




Coming back to Rob McEwen and his Midas Touch. In our brave dream about Copper coming back to $3/lb to feed Tesla Energy rEVolution, anybody buying giant Copper projects like Los Azules now will be forming their own Copper Genius Club. Project is ready to go further into PEA stage benefitting from the support of both Argentina and Chile.




Some people have more capital and know how to work in Argentina better than others. JV on Los Azules will be the major catalyst for McEwen Mining and TNR Gold NSR Royalty Holding on the entire deposit. Rob is ready now for a very interesting deal: $100 million upfront payment and 25% carry into production. We have discussed Barrick Gold's ambitions in their search for Strategic Copper and even established the strategic partnership with a Chinese company to develop Gold and Copper in Argentina including Pascua Lama.





Pascua Lama is on hold at the moment and became a very expensive piece of landscaping exercise for Barrick. Nobody knows the future, but all this situation deserves your very close attention. Any positive move along these lines can become The Catalyst potentially crystallising multiples in valuations in some cases. Los Azules can open for Barrick another chapter of genius moves and keep them working on Pascua Lama options later down the road. They are already well presented in San Juan, Argentina with all their might.




Another very interesting situation is brewing and can be the source of my lithium-induced dreams. We have discussed our Royalty Holding on Mariana Lithium JV with Ganfeng Lithium developing it as the Operator. We will address it in the nearest future.

"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”




Answering the last most important question, Robots are not ready yet unless we all missed the AI roll out together with Algos frontrunning us all together with some super smart people in the high offices. So Copper will hardly survive the end of the world yet. In all other circumstances, you are more than welcome to study all information provided on the links here and, please, do not hesitate to request your personal video update with me on Skype. Stay safe, stay at home and read. God bless all of us and the NHS.





Powered By Gold And Tesla Energy rEVolution: Why Green Energy Metals? Why Royalties? And Why TNR Gold?


Thank you.

Thank you for coming back to me here. Today I would like to thank all our shareholders and followers who are supporting our GEM Royalty TNR Gold Team. These very talented people are working very hard to make our dreams happen. The future is here, not everybody can see it yet, but megatrends are manifesting themselves. The Switch. Tesla Energy rEVolution. The recalibration of the global financial system and Gold - as the ultimate hedge for these uncertain times. 




Our Story.

It is time to tell you our Story about TNR Gold today in a more concise way. This is my personal story, I am putting my money where my mouth is, but you will have to find your winners. You will have to travel on your journey. I am just sharing my travel notes with you in my diary. I am glad if you can share the beautiful scenery with me. Join. You will learn new things. And I am ready as well. Fasten your seatbelt and, please, always make your own due diligence and consult a qualified financial adviser before any investment decision... 




This is why I believe that TNR Gold provides the truly unique entry point to participate in the Tesla Energy rEVolution and Gold. This is why I am investing in TNR. This is why we are building with our GEM Royalty Team The Green Energy Metals Royalty and Gold Company. 

Join Energy rEVolution and Gold - follow TNR Gold. 







Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.



Saturday 28 March 2020

Gold Has Confirmed Its Status As The Ultimate Hedge In The Uncertain Times: The Best Gold Stocks Are On The Launchpads.




These are the two most important charts for us now. As we have discussed before, Gold has confirmed its status as the ultimate hedge in the uncertain times and the best Gold mining companies will be the wealth generators. "Larry Kudlow's $6 Trillion dollars PUT" is lifting spirits and the markets which were looking into the abyss this month. 




FED has demonstrated its ability not only to manipulate the Gold market with their friends from BIS Club but to destroy the stubborn US Dollar at will when they really want it. USD is pushed well below 100 now, signalling that the flood of liquidity is making its way backstopping the black holes in the financial universe. As you remember,  USD was acting as a shooting star during the Double Black Monday Crash 2020 threatening to become a supernova eruption and literally to tear apart the time and space of the global financial universe.  





The most important for us is that "Whatever It Takes" and "Unlimited Liquidity" are taking shape with numbers: FED's balance sheet is over $5.25 Trillion dollars now and "Stimulus Package" is finally approved at $2.2 Trillion. Let's all hope that at least some of this money will finally find its way to those who really need it now. 


Chart by Northstar


Northstar is producing new brilliant maps for the inspirational navigation of the stormy waters and now Gold should start really moving up reflecting the enthusiasm of the printing presses. Let's just pause and allow it to sink in: FED balance sheet increased by the unprecedented $1.1 Trillion dollars from $4.18 T on February 14, 2020, to $5.25 T on March 27, 2020 - in less than two months! Now it is already higher than $4.5 T - the previous high reached in January 2015. 


Chart by Northstar


Very talented Nicholas Winton was providing his very sharp assessments for the critical turning points during these very volatile days and now he has a new map for our morning motivation meditations in the boardroom at TNR Gold. I would like to welcome all our new Shareholders who are joining us these days. I would like to thank all our Shareholders who are supporting our Company during the sunny and rainy days. 


Chart by HedgehogTrader


And on your behalf, I would like to thank all our very talented GEM Royalty Team at TNR Gold for all their very hard work these days. We are moving forward powered by Gold and rEVolution. Below you can find more links for your own research in order to make your due diligence not to miss this generational opportunity to start your own journey.  




And even the most difficult journey on our long road towards building The Green Energy Metals Royalty and Gold Company can become very pleasant when such mining investment legends like Frank Holmes are paying his kind attention to our Company.  





Alastair Ford: "TNR Gold Has Huge Potential Upside At The Shotgun Gold Project, Plus Significant Potential Cashflow From Two Sizeable Royalties."






"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."





Proactive:

TNR Gold has huge potential upside at the Shotgun gold project, plus significant potential cashflow from two sizeable royalties



"TNR could have millions of ounces of gold at Shotgun 

Could it be that TNR Gold Corp (CVE:TNR) has happened on the perfect model for junior resources companies?
Some years ago TNR made two discoveries in Argentina that were significant enough to attract in major companies who are now moving them to development.
For its part, TNR retained a royalty on each of these projects, the Los Azules copper project and the Mariana lithium project, and now stands to make a tidy annual sum when these projects go into production.
They’re not there yet, but one analyst reckons that the Los Azules royalty could generate around US$3.5mln per year, while the Mariana lithium project could generate upwards of US$1mln.
Recent updates from Mariana may add to that projection too, since the new resource estimate, compiled by Ganfeng, rings in at 4.41mln tonnes of lithium carbonate equivalent, an increase of 250% on the old number. A preliminary economic estimate completed last year gave the first indication of a potential value for the royalty.
Either way, it all adds up to the potential for a healthy income for the company to fall back on, given that it’s still primarily an exploration company.
And, given the attractiveness of the third string to TNR’s bow – the Shotgun Gold project in Alaska, the company is still very definitely an exploration company.
Indeed, according to Kirill Klip, the company’s chief executive, the main focus of effort over the coming months is likely to be on moving Shotgun forward to the point where a major company moves in and begins to help with development work there.
So, is this the same model that proved so successful with Los Azules and Mariana?
Not quite. This time round, with two potentially cash generative royalties in its back pocket, TNR is in a slightly stronger position. Klip’s aspiration this time round is for TNR to retain a much larger stake. The near-term goals are simple enough.
“We need to bring US$10mln in to drill the project very strongly,” says Klip.
“The first US$5mln to take the project from the current 700,000 ounce resource up to the two million ounce mark, the rest to drill out five nearby targets. There’s no reason to suppose that our ground cannot hold multiple mineralised systems.”
At Shotgun the thinking is that there may be upwards of five million ounces of gold in the ground, and there is precedent. At this stage the geology shows remarkable similarity to the 39mln ounce Donlin gold project in southern Alaska, which is owned jointly by Novagold Resources Inc (TSE:NG) and Barrick Gold (NYSE:GOLD).
“We are talking about a high tonnage bulk system,” says Klip. “There are no nuggets, it’s very uniform.”
Among the notable intercepts the company has 242 metres grading 1.25 grams gold per tonne, 209 metres at 1.02 grams, and just under 47 metres at 1.14 grams.
What’s more, the gold that’s been identified thus far sits at the top of a ridge, meaning that the stripping ratio for any mine will be low, which in turn will keep costs down.
So far, so good. The company is now raising a modest amount of money, with Klip coming in for a substantial portion of that, and at a premium.
The next step is to refine the drill targets, and then to go out into the market and see what kind of deal can be cut.
As it stands, the market is taking a fairly dim view of the company’s prospects, valuing the whole package, royalties and Shotgun at just under C$5mln.
Arguably, that’s low for a company that holds a lithium royalty from Ganfeng, one of the biggest lithium names in the business, a copper royalty from McEwen Mining, also a major name, and which may also be sitting on a five million ounce gold project.
The upside is clear. Indeed, Novagold sees it well enough, since it retains a significant stake in TNR, and former Novagold director Greg Johnson now sits on the TNR board. How long it will take the rest of the market to wake up remains to be seen.
Nonetheless Klip is confident that this is a company that’s going places.
“We are not dreamers,” he says. “We did it with the copper. We did it with the lithium. I would like to make it even bigger with the gold. I would like to do better, to keep a 25% stake.”
It’s a vision for growth that makes a lot of sense. In tough markets, where capital is scarce, this kind of approach may well end up being a model that others choose to follow too."


Please read carefully all legal disclaimers. Please note that all opinions expressed in the article, apart from the direct quotes, belong to the author of the article Alastair Ford. Please read carefully all disclaimers on Proactive website. There is no investment advice in any of Kirill Klip's blog posts and on any of his social media feeds. Always consult the qualified financial adviser before any investment decision.







Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.