{"id":101512,"date":"2017-01-30T19:16:41","date_gmt":"2017-01-31T00:16:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=101512"},"modified":"2017-01-30T19:16:41","modified_gmt":"2017-01-31T00:16:41","slug":"transatlantic-mining-gold-silver-producer-in-usa-m-cap-us-6-m","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/01\/transatlantic-mining-gold-silver-producer-in-usa-m-cap-us-6-m\/","title":{"rendered":"Transatlantic Mining, Gold-Silver Producer in USA, M cap < US $6 M"},"content":{"rendered":"
January 30, 2017<\/div>
\r\n<\/div><\/div>

By<\/strong>\u00a0Peter Epstein, CFA, MBA \u00a0 \u00a0epstein.peter4@gmail.com<\/a>\u00a0\u00a0 \u00a0\u00a0http:\/\/EpsteinResearch.com<\/a>\u00a0\u00a0\u00a0<\/strong><\/p>\n

Transatlantic Mining Corp<\/strong>.\u00a0{TSX-V: TCO}<\/strong>\u00a0\u00a0{\u201cTMC\u201d}<\/strong>\u00a0is a precious metal exploration & development company that has achieved initial Gold {\u201cAu\u201d}<\/strong>\u00a0& Silver {\u201cAg\u201d}<\/strong>\u00a0concentrate production.\u00a0 TMC controls\/owns two crown-jewel assets; a fully-permitted Mine & Mill and an 80% Interest\u00a0in the\u00a0Monitor Copper-Gold<\/a>-Silver<\/strong>\u00a0project in the famous Coeur D\u2019Alene Mining District in Idaho.\u00a0 A year ago, Transatlantic leased the\u00a0Alder Mountain<\/strong>\u00a0project<\/strong>\u00a0in southern Montana, which includes the\u00a0US Grant Gold-Silver Mine & Mill<\/a><\/strong>\u00a0{<\/strong>\u201cUS Grant\u201d}<\/strong>.\u00a0 Led by a skilled and experienced team (see below<\/em>), management\u2019s focus is driving US Grant to positive cash flow.\u00a0 A\u00a0maiden NI 43-101 mineral resource estimate & Preliminary Economic Assessment (PEA), plus good surface drill results, is attracting lenders and other interested parties to conduct due diligence with an aim to potentially fund robust growth initiatives.\u00a0 Expanding US Grant into a district play is the ultimate goal. \u00a0[NOTE<\/strong>: \u00a0NI 43-101\u00a0<\/em>Technical Report<\/strong><\/a><\/em>\u00a0filed on Sedar contains both maiden mineral resource estimate & PEA<\/em>]<\/p>\n

Highlighted Intervals Include<\/strong>: {full drill results<\/strong><\/a>} \u00a0NOTE<\/strong>: \u00a0[Yellow box is a historic drill interval<\/em>]<\/p>\n

SURDH #6<\/strong>: \u00a08.9 ft. {2.8 m} true width at\u00a00.564\u00a0<\/strong>ounces per ton\u00a0<\/strong>[opt]\u00a0<\/strong>\/<\/strong>\u00a0{19.3 g\/t}<\/strong>\u00a0gold equivalent [Au Eq.]
\nIncludes 2.8 ft. {0.85 m} at\u00a01.07 opt\u00a0<\/strong>\/<\/strong>\u00a0{36.8 g\/t}\u00a0<\/strong>Au Eq.<\/p>\n

SURDH #1<\/strong>: \u00a05.9 ft. {1.8 m} true width at\u00a00.357 opt\u00a0<\/strong>\/<\/strong>\u00a0{12.2 g\/t}<\/strong>\u00a0Au Eq.<\/p>\n

SURDH#5<\/strong>: 6.9 ft. {2.1 m} true width at\u00a00.203 opt<\/strong>\u00a0\/\u00a0{7.3 g\/t}<\/strong>\u00a0Au Eq.
\nIncludes 2.1 ft. {0.65 m} at\u00a00.493 opt<\/strong>\u00a0\/\u00a0{16.9 g\/t}<\/strong>\u00a0Au Eq.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\"\"<\/a><\/p>\n

While thickness varies, historical data on the Alder Mountain project, and greater Alder Gulch district, reference vein widths of 3 to 6 feet (0.9 to 1.8 m).\u00a0 Yet, in the Company\u2019s drill program in 4q 2016, 6 assays shown above {4 pending in February<\/em>}, and historical drill hole DDH USG-88-2, have an average width of\u00a0<\/strong>6.6 ft. (2.0 m).\u00a0 This is encouraging and provides crucial information for upcoming drill programs and possible mining scenarios.\u00a0 Management is investigating the potential to mine the US Grant and parallel\u00a0El Fleeda<\/strong>\u00a0veins concurrently, which would be highly efficient and cost effective. \u00a0{See new\u00a0corporate presentation<\/strong><\/a>}<\/p>\n

TMC following proven \/ highly successful Northern Star Resources model \u00a0\u00a0<\/strong><\/p>\n

Like Australia\u2019s\u00a0Northern Star Resources (ASX: NST)<\/strong>\u00a0has achieved, management\u2019s goal is to build TMC into a robust portfolio of top quality assets.\u00a0 From 2010-2014,\u00a0Bernie Sostak<\/strong>\u00a0and\u00a0Ray Parry<\/strong>\u00a0{see bios below<\/em>} were key executives in that successful Australian-listed company.\u00a0 Shares traded for nickels when Bernie joined, up to ~A$1.50 when he departed to join TMC full-time.\u00a0 Bernie sourced targets, evaluated and integrated acquired assets.\u00a0 Both Ray and Bernie played important roles in structuring the transactions.\u00a0 They were part of a team that helped grow production from ~50,000 ounces\/yr to ~600,000, during which time the market cap soared from under A$ 100 M to over A$ 1 billion (now A$ 2.4 billion<\/em>).\u00a0 Bernie and Ray are deploying the same strategy at TMC, acquiring high-grade, high-margin projects, with relatively modest capital requirements and strong expansion potential in safe and proven mining jurisdictions.<\/p>\n

The indicative mine plan calls for an\u00a0annual run-rate<\/strong>\u00a0of 5,000 ounces, growing to 10,000 ounces {all references to production are gold equivalent ounces<\/em>}.\u00a0 A 10,000 ounce\/yr run-rate assumes TMC\u2019s\u00a0onsite Mill is running at 150 tons per day (\u201ctpd\u201d<\/strong>).\u00a0 Subject to grade and mining capacity, an upgrade to 300 tpd is being contemplated.\u00a0 Doubling Mill throughput could deliver\u00a020,000 \u2013 30,000\u00a0<\/strong>ounces\/yr.\u00a0 M&A, farm-ins, lease-to-own options and the like, could enable production to exceed 30,000 ounces\/yr.\u00a0 Management is in multiple discussions to that end, with no material news to report at this time.<\/p>\n

If the Company reaches 20,000 ounces\/yr, it could be generating US$ 24 M\u00a0{@\u00a0today\u2019s spot price}\u00a0in gross revenue.\u00a0 At a PEA derived AISC estimate of US$ 905\/Au Eq. ounce, that would be an operating margin of ~US$ 300\/oz, equal to US$ 6 M in operating cash flow.\u00a0 Compare\u00a0that\u00a0to TMC\u2019s\u00a0market cap of\u00a0C$7.5 M = US$ 5.6 M<\/strong>.\u00a0 Meaningful upside potential from i) lower AISC due to economies of scale ii) mining higher-grade ore than shown in PEA iii) higher Au-Ag prices iv) if higher grade, then more ounces produced and v) if lower AISC, higher grade & higher Au-Ag prices, then higher operating margin.\u00a0<\/em><\/p>\n

Near-Term Catalysts<\/strong><\/p>\n