Asante Acquires Chirano
Welcome to Mining Stock Daily. I am Trevor Hall. And I’m Paul Harris.
Today is Monday, April 25th
Last week was a tough week for the precious metals sector, with gold and silver getting pummeled after Monday. Gold traded as high as $2,003 per ounce last Monday but lost $69 over the rest of the week to close at $1,934. Silver traded as high as $26.50 per ounce last Monday but closed out the week at $24.26, down $2.24 from Monday's higher. The mining stocks were absolutely mauled last week, with the GDX down 11% from Monday's high. The Mining Stock Journal said the strength in the dollar contributed to the sell-off in the precious metals sector last week. But the primary culprit is the fact that the entire sector was extremely overbought after a big run higher that started in late January.
The good news is that the sector is now technically mildly oversold after last week. Separately, a report from the Global Trade Review, a journal that covers trade, export, commodity and supply chain finance markets, said that the proportion of Central Bank reserves held in gold has also increased from 8.9% in March 2014 to 21.7% by June 2021. It also said that US dollars no longer make up the largest share of those reserves, falling from 39.4% to 16.4% over the same period.
We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning….
Asante Gold entered into a share purchase agreement with Kinross Gold to acquire Kinross’ 90% interest in the Chirano gold mine in Ghana for US$225 million, with the Ghanaian government retaining a 10% carried interest. Asante will initially pay $115 million in cash and $50 million in stock provided this will not result in Kinross exceeding a 9.9% share ownership in Asante. Kinross will also receive a total deferred payment of $60 million in cash split between the first and second anniversaries of closing. The transaction is expected to be completed on or around May 31. Asante has other mining operations in Ghana with Chirano resulting in the company having an entire district scale gold trend exceeding 53km with two modern process plants. Asante Gold trades on the CSE under ASE and on the USOTC under ASGOF. News release
Across the border, Montage Gold says it has been awarded a new exploration permit within haulage range of the Koné Gold Project in Côte d'Ivoire. The Sisséplé permit represents a highly prospective addition to the KGP which has no history of previous exploration and lies within haulage distance of the planned Koné plant site. It sits on three strong structural trends with known endowment. In the east, the Syama trend is the principal regional structure hosting the Koné deposit to the south and extending north through Barrick's Fonondara and Kasseré prospects, Perseus' Sissingué Gold mine and further north to the Syama Mine in Mali. Montage Gold trades on the TSX V with MAU and on the OTCPK with MAUTF. News Release
Palladium One Mining announced an updated Indicated and Inferred Resource Estimate for its Läntinen Koillismaa Project in Finland, which it said improved the economic potential by confirming scale and by delivering clarity of recovery rates for various rock types. The indicated resource jumped 248% to 38.2 million tonnes containing 111 Million Pounds Copper, 92 Million Pounds Nickel and 5 million Pounds Cobalt in addition to platinum, palladium and gold. Some 44% of the resource is now in the Indicated category. It said its copper and nickel concentrates are expected to be highly marketable. Palladium One Mining trades on the TSXV under PDM and on the OTCQB under NKORF. News release
ValOre Metals shared rock assay results form the Tróia target area at ValOre’s Pedra Branca Platinum Group Elements. Multiple assay results from outcropping chromitites and mineralized ultramafic samples included 23.01 g/t, 12 g/t and 8.32 g/t palladium, platinum and gold. Mineralization occurs within a 50- to 100-metre-wide zone, along 1 kilometre of geological trend, associated with historical geochemical and geophysical anomalie. Trado® auger drilling is on-going at Tróia, with 46 auger holes completed to date. ValOre Metals trades on the TSX V with VO and on the OTC with KVLQF. News Release
Paycore Minerals announced drilling results from the FAD gold property on the Battle Mountain-Eureka trend in Nevada, and that its stock will start trading today on the TSX Venture Exchange today under the ticker CORE. The first hole intersected multiple mineralized horizons over the first 110.6 metres of the hole with highlights of 28m grading 4.5 grams per tonne gold equivalent and 23.9m grading 5.3g/t. FAD is immediately to the south of, and along strike from, I-80 Gold Ruby Hill Mine. Paycore’s Phase-1 drill program is targeting high-grade polymetallic mineralization in the FAD Main Zone and near-surface oxide mineralization proximate to the historical Ruby Hill Mine workings. Paycore Minerals trades on the TSXV under CORE- News release
That concludes today’s morning briefing.
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