By: Tomas Ronolski - AllPennyStocks.com News

Thursday, January 19, 2017

The mining sector had a bi-polar 2016 with the sector skyrocketing in the first half of the year, and in deep decline in the second half. These fluctuations made it hard for miners to properly analyze market trends and as a result, cuts in capital expenditures was the outcome. However, this trend is likely to slow down in 2017 as commodity prices perk higher again and develop a new higher base price. While the margins are expected to remain strained, the sector as a whole is on better footing than in 2016. Quaterra Resources Inc. (TSX-Venture:QTA) is one such company on the mend after getting rid of its non-core assets, is now looking to develop its core properties. Quaterra Resources offered its future course of action in a press release this morning. The company reported that, along with its subsidiary Singatse Peak Services LLC, it plans to carry out 15 drill hole projects this year. These drill holes will be located throughout its 51-square-mile land package located in the historic Yerington District of Nevada.

The company has also made financial arrangement for the proper execution of its plans. It reported that Freeport-McMoRan Nevada LLC has agreed to make accelerated option payments of up to $1.5 million. It also received $1.25 million in option payments from Freeport Nevada in December. These funds will be used for property maintenance, G&A and environmental compliance at Yerington.

Quaterra Resources elaborated that the main focus of the drilling program will be to locate and drill both potential open-pitable and higher-grade porphyry and skarn mineralization in different prospective areas.

The work is expected to begin in the first quarter of this year. The company has used geological mapping and data from the previous drilling programs for the purpose of determining the drill targets.

Shares of QTA have performed well this year so far, clocking over 6% gains on a year-to-date basis. It grew 14% in the past 12 months. With the company announcing encouraging prospects for this year, these type of share price gains may just continue throughout 2017.

As mentioned above, Quaterra Resources is also taking several steps to consolidate its position in the market. The company sold its interest in Herbert Glacier to its joint venture partner Grande Portage Resources Ltd. It also completed the sale of its 50% interest in the Nieves project, Mexico. The deal concluded with payment of the final $1 million tranche by Blackberry Ventures, I LLC on June 30, 2016. These deals have provided the company with substantial liquidity to build out their core projects.

With the sale of the Company’s major non-core assets, the company is now able to focus its attention on exploring and developing its assets in the historic copper district of Yerington, Nevada. The company has invested over $36 million in the Yerington District since 2006. In 2017, it is coming closer to reap the results of its past investments.

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