CHF WEEKLY ROUND-UP: October 30 – November 3, 2023

  • November 3, 2023
  • Posted by: John Arcena
  • Category: Uncategorized
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Welcome to November, as the calendar page turned so did markets. The Canadian side quickly moved back into positive territory for the year, gaining 6% on the week. Solid gains came on Thursday in the face of poor economic news. The Canadian dollar continued to weaken against the U.S. dollar down 4% since the mid-July peak, following a downward trend from the 5-year high in June 2021. This makes imported goods more expensive, holding the inflation rate up.

StatsCan also revealed that there was no growth in Canada’s economy from July to August. A preliminary estimate for Q3 growth suggests that Canada’s economy contracted by 0.1 per cent in the third quarter which would meet the technical definition of a recession (you heard it here first). In response to questioning, the Bank of Canada governor said, “government spending is working at cross purposes with the central bank’s efforts to bring inflation down” and adding “it would be helpful if monetary and fiscal policy were rowing in the same direction.”
 
U.S. markets started the week on a positive note and kept rising, up 3% on the week. The U.S. Fed held on rates this week, as was widely expected while Chairman Powell maintained a hawkish outlook, keeping the door open to further rate hikes if inflation pressures should accelerate in the months ahead. The Bank of England held Rates at 5.25% for the second meeting in a row after 14 back-to-back increases, as widely expected. However, the British central bank said, “latest projections indicate that monetary policy is likely to need to be restrictive for an extended period of time.”
 
Some softness has appeared in the U.S. dollar, not dropping but maybe on a plateau near the high for the year, for the last month. Is it waiting for a breakout, but up or down? Precious metals have performed well, what with a Middle East war and all. Gold poked through the psychological $2,000 barrier briefly and continued to bump up against the resistance. Silver is attempting to break through $23. Hope for an upside breakout continues. At these levels, we may be looking for a re-rating of gold and silver company share prices.  Base metals seem to have halted the decline but are still waiting for some upside. Battery materials remain flat, below levels that will drive production growth outside of the China-controlled markets. The Nuclear renaissance continues to drive Uranium prices now at $74/lb. Oil fell to just over $80/bbl (WTI) early this week but has clawed its way back to $83.
 
Certain sectors are looking seriously oversold and with interest rates looking like they have peaked, there may be a recovery in equities, in particular, some of the hard-hit companies.
 
There has been some exciting news for our clients, and it has proven to be a productive week. We are pleased to present to you our round-up of their news released between October 30 – November 3, 2023.

On October 27, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) filed Annual Audited financial statements, and Management Discussion and Analysis for the year ending June 30, 2023.
 
On October 31, 2023, Electric Metals (USA) Limited (TSXV: EML) (OTCQB: EMUSF) announced the final assay results from the recent drilling program at the high-grade Emily Manganese Project, Minnesota, USA. Previously reported results from the first twenty diamond drill holes of the program described continuity of thick intervals of more than 30% manganese with a northerly dip and east-west strike direction.

New results for an additional seven drill holes located on 100-meter collar spacing (23047, 23048, 23049, 23050, 23052, 23053 and 23054) confirm that high-grade, thick manganese intervals encompass at least 1,100 meters along an east-west trend and show that the high-grade manganese oxide mineralization (manganite) has not been closed at depth or along trend.


Long section showing drill hole traces of AC-02-11, 23001A, 23042, 23044, 23045, 23046A, 23047, 23048, 23049 and 23050, with manganese contents (assayed intervals) and geology.
 
All seven drill holes intersected high-grade manganese with drilled intervals (approximate true thickness) of more than 20 meters. Intervals with manganese contents of more than 44% Mn were intercepted in holes 23047, 23050 and 23053 however, all holes contain conspicuous intervals of more than 30% Mn within mineralized zones (5% Mn cut-off) of up to 64.68 meters thick. Importantly, the mineralization has excellent continuity in both thickness and tenure both along trend and down down-dip.
 
Major elements in the Mn mineralized rock include iron (Fe) and this ranges from 4.54% Fe to 51.99% Fe. Average iron content is the same for both the high Mn and low Mn sample groups (21.72% Fe), but the distribution shows a trend of lower Iron content in manganese samples with more that 25% Mn. Quartz (SiO2) is the other main component of the mineralization and ranges up to 78.1% in the mineralized samples. Like Fe, there is a distinct decrease in quartz component with increasing manganese. Few samples with more than 25% Mn have greater SiO2 than Mn content. Typically, very high-grade Mn samples have low SiO2 content.
 
Copper, nickel, and lead do not occur in the mineralization. Contents of these for each assayed interval are commonly less than detection (0.001%) and seldom more than 0.05%. Similarly, sulfur (S), also assayed for every sample, is seldom above detection (0.001%) and only ten samples (1.3% of analyses) contain more than 0.05% sulfur. There is unlikely to be concerns over metal contamination and acid generation from sulfides in any future development.
 
On November 2, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) and Benton Resources Inc. (TSXV: BEX) together, (the “Alliance”) announced that they received the “Explorer of the Year” award at the annual CIM Mineral Resources Review in Newfoundland.
 
The award was presented by the Newfoundland and Labrador branch of the Canadian Institute of Mining, Metallurgy and Petroleum. The award is presented to a prospector, exploration team, or company that has made a recent and significant mineral discovery; or significantly enhanced a prospect or deposit; or identified a previously unrecognized prospective geological environment in Newfoundland and Labrador. The Alliance has received the award due to the ongoing success at its Killick Lithium discovery (formerly the Golden Hope Property) which has produced significant surface sampling and drill results up to 1.04% Li2O over 15.23 m in GH-22-27, 1.08% Li2O over 9.50 m in GH-22-26, 1.22% Li2O over 13.37 m in GH-23-45, 0.81% Li2O over 21.00 m, and 0.99% Li2O over 10.16 m in GH-23-46. In addition, the Alliance recently executed an agreement with Piedmont Lithium Inc. further endorsing the potential of this prospective lithium project.


From Left: Stephen Stares (Benton Resources Inc.), Timothy Froude (Sokoman Minerals Corp.), Amy Copeland (CIM NL Branch)

On November 2, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) President and CEO, Timothy Froude made a presentation on the Killick Lithium Discovery, Southwestern Newfoundland at 9:30 AM PST on November 02, 2023, to the Mineral Resources Review 2023 Conference, Newfoundland and Labrador’s Premier Mineral Exploration and Mining Conference and Exhibition, that is being held at the Delta Hotel: Harbourview Ballroom, in St John’s,  Newfoundland (in-person attendance only).
 
On November 2, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) provided an update on the ongoing drilling program at the 100%-owned Moosehead project. Diamond drilling has identified a new mineralized structure 200 m to the east of the Eastern Trend, the furthest east of any mineralization located to date. Dubbed the 552 Zone, after the first hole that cut it, it has an apparent east-west strike, making it close to perpendicular to the Eastern Trend, suggesting that it lies in a similar structural setting as the 463 Zone but above the Eastern Trend, in the hanging wall, whereas the 463 Zone lies in the footwall of the Eastern Trend.


Plan view of recent drilling

The mineralized quartz 552 Zone has been intersected in all four holes (552, 553, 556, and 557) completed, with assays received for three of the four. Boulangerite and sphalerite, minerals associated with Au on the Moosehead property, are noted. The best grade intersected to date is 1.41 g/t Au over 2.9 m in DDH 553 with 1.15 g/t over 2.95 m in DDH 552. The 552 Zone has been tested by two sections of two holes each drilled from the same setup giving a 10-m strike-length, over a vertical range of approximately 25 m. The drilling tested a resistivity high noted in the winter Alpha IP survey with several second-order targets also identified in the general area. A Noranda float sample from the late 1980s, that assayed 10.3 g/t Au, is located close to the 552 Zone. The 552 Zone remains open with approximately 2500 m of drilling planned to test along strike and to depth.


Table 1 – Assay Results

Results include three holes in the Eastern Trend footwall, testing for near surface mineralization in the same orientation as the vein set in the deeper 463 Zone.  MH-23-548, gave 4.89 g/t Au over 3.55 m from 185.75 m downhole (see Table 1 below) ~250 m NW of, and 150 m vertically above, the 463 Zone with a second zone intersected in DDH 548, giving 0.95 g/t Au over 4.20 m. Drilling will continue to test the footwall environment which remains very prospective for additional gold-bearing structures.

On November 3, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) provided an update on the credit activity facilitated by the platform’s “Financing” pillar in Canada while it continues with the development of the remaining “Networking”, “Advertising” and “Insights” pillars.
 
The Company reported that loans and credit in the form of working capital loans, merchant cash advances, term loans, and lines of credit totalling a little more than $980,000 were awarded on the platform through the end of October 2023. That amount was divided amongst small and medium-sized enterprises operating in the construction, manufacturing, transportation, retail, professional services, wholesale, and accommodation services industries. Professional services accounted for the largest share of credit granted on the platform at 43%, followed by wholesale trade at 31%, and transportation and warehousing services at 10%.
 
The stated objective at Cubeler is to help SMEs make the most of their operations. And Tenet is playing a role in facilitating loans and credit for SMEs operating in a diversified group of industries and coming from across the country, from Newfoundland and Labrador to British Columbia.


 
On October 30, 2023, Visionstate Corp. (TSXV: VIS) CEO, John Putters sat down with InvestorNews interviewer, Tracy Weslosky, to discuss the exciting news of a significant partnership with Bunzl Canada Inc., setting the stage for Visionstate to make advancements in the global facility-management sector.
 
View the Interview HERE.