Ascot Drill Result from the Day Zone; Arizona Sonoran's First Drill Results
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Wednesday November 17th.
On Tuesday after an overnight rally took gold as high as $1878, the yellow dog was chased off the cliff when the Comex opened at 8:20am NY time. The gold price was abruptly pushed down $27 during the paper gold trading hours.
Silver also rallied overnight in the pre-Comex morning trading as high as $25.50 before it was beaten down hard with a calcified paper billy-club back below $25, trading as low as $24.82 before settling at $24.88. As this commentary was written Tuesday evening, silver traded back over $25, for now anyway.
The mining stocks, taking their cue from the price action in the metals, sold off somewhat sharply, with the HUI down 1.5% and the GDX down 1.75%.
The Mining Stock Journal noted that, given the somewhat technically overbought condition of the precious metals sector, along with elevated bullish sentiment levels, it looks like a pullback has commenced before the sector continues higher. The newsletter emphatically states, make no mistake, any pullback will bare the mark of official price containment.
We’ll get to the news out of the miners and explorers in a moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning.
Ascot Resources provided additional assay results from exploration drill holes from the 2021 drill program at the Company’s Premier Gold Project, including the first drill hole at the Day Zone near the Big Missouri deposit and the balance of drill results from near the Premier deposit. Importantly, the new drill hole at the Day Zone has expanded mineralization approximately 400 metres to the south, which intercepted 4.13 g/t gold and 3.5 g/t silver over 2.46 meters starting at 291 meters. Gold mineralization was intercepted at four different elevations that roughly correspond to known elevations of mineralization elsewhere at Big Missouri. The new drill hole is exploring an area of sparse geological information very close to the planned development drift from the Big Missouri deposit to the Silver Coin deposit. Additional drill holes from the same pad have been completed in order to establish the orientation of mineralization in this area (see Figure 1). Assays from these holes are pending and will be reported as they become available. West of Premier, drilling encountered 17.05 g/t gold and 43 g/t silver over .7 meters at a depth of 51 meters. Ascot Resources trades on the TSX with AOT and on the OTCQX with AOTVF. News Release
Yesterday, a new copper development company came on to list on the TSX. That is Arizona Sonoran Copper Company and this morning they announced the first set of drilling results from its 8 initial diamond drill holes for over 2,938 m (9,639 ft) along the western periphery of the Cactus West pit. The drilling demonstrates continuous leachable mineralization including extensions outwards from the modelled pit shell by at least 61 m. Results included .77% copper over 34 meters, .27% copper over 108 meters and .51% copper over 40 meters. The company says the drill program is designed to target some materials previously viewed as waste by ASARCO, who at that time were processing sulphide-only material through a floatation mill. With ASCU targeting the leachable materials which sit atop the sulphide mineralization for a heap leach operation, the infill to indicated and measured drilling program may positively affect the starter resource base and ultimately the economics of the pit. Arizona Sonoran Copper trades on the TSX with ASCU. News Release
In the Yukon, White Gold provided results for the recently completed maiden diamond drilling program at the Betty Ford target on the Company’s wholly owned Betty property, which is ocated proximal to and approximately 40 km east of Newmont Corporation’s Coffee Gold deposit and 15 km northeast of Western Copper and Gold Corporation’s Casino porphyry deposit. 2 of 6 diamond drill holes intersected significant broad zones of near surface gold mineralization across a 100m strike length, including 50.0m of 3.46 g/t Au from 33.0m and 48.0m of 1.17 g/t Au from 19.0m. The soil geochemical anomaly indicates that the shallow zone of gold mineralization remains open along strike to the east and 200m to the west. White Gold trades on the TSX Venture with WGO and on the OTCQX with WHGOF. News Release
Getchell Gold provided results for the North Fork Zone drill hole FCG21-10, part of the ongoing 2021 drill program at the Fondaway Canyon Gold project in Nevada. The hole intersected mineralization over 82 meters, including 3 g/t gold over 41.6 meters with a shorter 1.5 meter interval of 47 g/t gold. Assays are pending for holes FCG21-11 through FCG21-14, that targeted the Colorado SW and Juniper gold zones. Getchell Gold trades on the CSE with GTCH and on the OTCQB with GGLDF. News Release
EMX Royalty announced is has closed the second and final tranche of its private placement of 6,500,000 units at C$ 3.30 each for gross proceeds of C$ 21,450,000. Under the second tranche, the Company issued 162,653 units, with each unit consisting of one common share of the Company and one-half of one transferable warrant. Each whole warrant entitles the purchase until November 6, 2023 of one common share at C$ 4.00 in the first year and C$ 4.50 in the second year. Gross proceeds raised from the placement totalling C$ 21,450,000 will be used for general corporate purposes. EMX trades on the TSX Venture and the NYSE American with EMX. News Release
That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates.
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