Angus Gold Discovers Two New Gold Zones

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday, January 24th. 

On Friday, gold took an early morning beating into the London am price fix, dropping off a cliff from US$1,843 per ounce to as low as $1,828. But it bounced straight up starting at 7 am NY time, reclaiming the entire overnight price ambush. Just as abruptly, the yellow dog was turned back down about 15 minutes before the NYSE opened. As is pretty much customary on Fridays, gold was pushed down in the paper gold Comex session to as low as $1,829. Interestingly, in the last hour and forty-five minutes of post-Comex Globex computer trading, the price rose $7 to close out the week at $1,835. 

Silver's trading pattern was similar to gold on Friday. India and China were quiet on the physical buying front but Vietnam - which at one time was the fifth largest gold importer in the world - was very active. 

The mining stocks took a beating on Friday, with the GDX down more than 2% and some junior micro-caps shredded for 5% or more. This was likely related to the stock market and in anticipation of the FOMC meeting this week.

We’ll get to the news out of the miners and explorers in a moment but first a mention of today’s sponsor…

This episode of Mining Stock Daily is brought to you by… Arizona Sonoran Copper Company. 

Arizona Sonoran Copper Company is a lower-risk copper developer with a significant exploration potential on private land just south of Pheonix, in an infrastructure rich area of Arizona. The Cactus Project PEA illustrates an 18 year mine life, generating US$1 Billion post-tax free cash flow. It is a scalable, low capital intensity project with strong leverage to the copper price. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Read more about the company at arizonasonoran.com.

And here’s what you need to know this morning….

Angus Gold provided the results of the remaining 4 drill holes from last year on its Golden Sky Project in Wawa, Ontario. Two of the four holes in the Banded Iron Formation were successful in intersecting significant gold mineralization at locations approximately 500 metres apart. These zones represent the first reported drill discoveries in the BIF and suggest strong potential for the area to host significant BIF-hosted gold mineralization similar to that seen at the large, high-grade deposits of Musselwhite (Newmont), Meadowbank (Agnico-Eagle) and Back River. Hole 14 intersected an extensive zone of gold 61.3m wide and grading 0.94 g/t Au. Hole 15, located approximately 500m west of Hole GS21-14, intersected 18.7 metres of 1.0 g/t Au. The company says both intersections indicate that a robust gold mineralizing system was active within the BIF and bodes well for expanding current zones and discovering additional zones within the largely unexplored horizon. Angus Gold trades on the TSX V with GUS and on the OTC with ANGVF. News Release

O3 Mining reported drilling results from the Kappa zone of its Alpha gold exploration property near Val d’Or in Quebec, Canada with highlights of 8.3m grading 12 grams per tonne gold in hole 388. O3 said it continues to extend gold mineralization with the potential to increase resources within trucking distance of the 1,600 tonnes per day Aurbel mill it has an option on. The company assigned 6,000m of drilling to expand the Kappa zone with two drill rigs. O3 Mining trades on the TSXV under OIII and on the OTCQX under OIIIF. News release

Capitan Mining reported a new drill result from the Peñoles project, in Durango, Mexico. Hole 29 returned 38.1 m of .63 g/t gold equivalent within a broad zone of 195.1m of .34 g/t gold equivalent. This hole also intersected a second interval with Jesus Maria style silver mineralization. This new discovery is significant as it represents a 350m step out down-dip, and to the south of the previously drill-defined extent of the Jesus Maria Silver deposit. 5,000 meters of RC drilling is planned for the first half of 2022. A few of those holes have been completed and assays are pending. The Jesus Maria (JM) silver deposit is located approximately 280m to the northeast of the Capitan deposit. It has been traced by surface trenching and diamond drilling over a strike length of 750m and to a depth of 150m, with the majority of drilling focused over 250m strike length and less than 100m below surface. Capitan Mining trades on the TSX Venture with CAPT. News Release

Gold Royalty entered into a credit agreement with the Bank of Montreal for a US$10 million secured revolving credit facility which includes an accordion feature providing for an additional $15 million. This adds to the company’s existing balance sheet of $38 million of cash and marketable securities. The company is currently making a hostile all shares bid to acquire Elemental Royalties, which has a market capitalisation of C$106 million, and so may be building its cash position to potentially sweeten its offer. The management of Elemental rejects the Gold Royalty overture and advised shareholders “to take no action”. Elemental expects to receive $1.1 million in revenue from a 2% royalty it holds on the Karlawinda gold mine in Australia, which it says is equivalent to nearly six times the total revenue disclosed by Gold Royalty for its 2021 fiscal year. Gold Royalty trade on the NYSE AMERICAN under GROY. Elemental Royalties trades on the TSXV under ELE and on the OTCQX under ELEMF. News release

Sibanye-Stillwater terminated the US$1 billion purchase of the Santa Rita nickel mine and Serrote copper mine in Brazil from private equity firm Appian Capital Advisory after the latter reported a geotechnical event at Santa Rita which would have a material adverse effect on the business. In response, Appian said there was a small crack in the pit and that it does not constitute a material adverse change, so it seems legal action may result. Sibanye-Stillwater trades on the JSE under SSW and on the NYSE under SBSW. News release

That concludes today’s morning briefing.

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