Blackrock Silver – Exploration Update From Tonapah West In Preparation For Maiden Resource Estimate Next Month
Andrew Pollard, CEO of Blackrock Silver (TSX.V:BRC – OTCQX:BKRRF), joins us to review some recent exploration results and the overall strategy from the 110,000 drill campaign at the Tonopah West Property, in Nevada. The majority of the drilling has been focused on infill and step-out drilling around the DPB Target, in a grid of 800 meters x 800 meters over 6 different veins. That work at DPB is what will be used to publish the upcoming Maiden Resource estimate from Mine Development Associates by the end of Q1 in March.
Next we discussed some of the promising drill holes returned from the Victor Vein Target, where Andrew outlined the historic operations in this area, and the potential to find more high-grade intercepts along this thick vein. At this point this exploration work is still earlier on, but this could be another area of interest to contribute to the future resources at Tonapah West. In addition, the company has plans to continue exploring their other Project at the new Tonapah North concessions.
If you have any follow up questions for Andrew on Blackrock Silver, then please email us at Fleck@kereport.com or Shad@kereport.com
Click here to visit the Blackrock Silver website and read over the recent news releases.
Hey Ex. As you know I’ve had the pleasure, and taken the liberty, of introducing your work on various Stockhouse boards. This looks like today’s Kereport quiet board so I’ll take the opportunity to return the favour and introduce here some work from the inestimable ‘firecracker74’ from Stockhouse’s Trevali board. As i always say about you, this guy is well worth checking out.
“We already know that Trevali had 94M pounds of zinc available for sale during quarter 4. We don’t know whether any of the zinc was stuck at the ports as of December 31. That will have a big impact on revenue and profit. In the third quarter report Trevali stated that inventories had returned to normal. We know that zinc averaged $1.53 during quarter 4. We know that 30M pounds were sold in quarter 4 that were hedged at $1.24. That resulted in a $9M hedging loss. All the remaining zinc that was sold in quarter 4 was sold at $1.53. That could have been as much as 64M pounds. IF all zinc was sold then we know that revenues were close to $120M and profits were probably in the $25M-$30M range. Revenues would need to be reduced by $1.3M for every million pounds of zinc that wasn’t sold. I am expecting an AISC of about $1.05 for quarter 4 because of the low production at Caribou. I expect an AISC at Caribou of around $1.40. I expect that the bank loan was reduced from $98M to $89M in quarter 4 as a $9M payment was made in November. I expect that another payment was made in February of about $10M-$15M reducing the bank loan to $75M-$80M. A lot of that depends on the timing of shipments and the timing of when payments are received from Glencore. Trevali was forecasting a $5M expansionary CAPEX expenditure for quarter 4 so we may find out that RP2 actually started in quarter 4 and some money has already been spent. We don’t know the impact of the Santander sale on quarter 4 results. Trevali says that the balance sheet will improve from the sale so it seems that liabilities will go down more than assets and there will be no adverse impact from the sale. The biggest change will probably be from the elimination of reclamation costs. What are the risks? The biggest risk would be an announcement that Perkoa was in it’s final year and a write down was being taken. Trevali says that as of December 31, 2020 they had over 900M pounds of measured and inferred zinc at Perkoa. This could keep them going for five years or so if this zinc can be proved and zinc remains high. Caribou is a big question mark. Most consider Caribou a failure, but Caribou is actually producing a significant profit even with it’s problems. That profit is being masked by the hedges. With the hedges gone Caribou could be a serious contributor to profits in 2023. The fact that they are spending a lot on sustaining CAPEX at Caribou in 2022 indicates to me that they are planning to keep it going in 2023. With zinc at $1.65 in 2023 and production and AISC at 2022 levels Trevali could have pre tax profits in excess of $100M in 2023. Now we fasten our seatbelts and wait to see if Trevali has any of those nasty surprises that they are famous for. If not, things could be looking up for TV.”