B2Gold Increases Mineral Resource Estimate for the Anaconda Area
Welcome to Mining Stock Daily. I’m Paul Harris.
Today is Wednesday, March 23rd.
The pullback in gold and silver continued Tuesday as gold tanked from US$1,938 per ounce to $1,910 before bouncing to settle at $1,921. Silver was hammered down from $25.57 per ounce to as low as $24.70 before settling at $24.90. The price decline in both metals occurred over two price waterfalls. The first one was leading up to the a.m. London price fix, while the second occurred right after the Comex opened.
The Mining Stock Journal said that this price pattern has the distinct footprint of the price management team all over it. Secondarily, the metals are still working off an extreme overbought technical condition and for now the path of least resistance is lower.
Finally, with the stock market soaring again Tuesday, it's likely that momentum-based hedge funds sold paper gold and silver and used the cash to join in the fun chasing tech and meme stocks higher. The mining stocks sold off along with the metals, with both the GDX and the Amex Gold Bugs index down a little over 1%. On a positive note, the Mining Stock Journal said that the precious metals sector is rapidly transitioning into an oversold technical condition. Furthermore bullish sentiment is rapidly fading as evidenced by the Hulbert Gold Newsletter Sentiment index, which has retreated from the high 60's a couple of weeks ago to 34 as of Monday.
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… 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….
B2Gold updated and increased the mineral resource estimate for the Anaconda area, comprised of the Menankoto permit and the Bantako North permit, about 20km from its Fekola gold mine in Mali. The company said it has demonstrated that an open pit at Anaconda could provide selective saprolite material with an average grade of 2.2 grams per tonne to be trucked to the Fekola mill from as early as late 2022, subject to permitting and completion of a final development plan. The indicated resource is now 32.4 million tonnes grading 1.08g/t for 1.1 million ounces, and an inferred resource of 63.7Mt grading 1.12 g/t for 2.3Moz at an US$1,800/oz gold price. B2Gold has budgeted US$33 million this year to fund development of infrastructure for Phase I saprolite mining at the Anaconda area, including road construction. B2Gold trades on the TSX under BTO and on the NYSE AMERICAN under BTG. News release
Summa Silver said that subject to final approval from the TSX Venture Exchange, it will issue 27,400 shares pursuant to two previously entered into amended and restated mining lease agreements at a deemed value of $1.24 per share. These represent the first of ten annual payments due under the amended lease agreements relating to mining claims which form part of the Mogollon property near Silver City in New Mexico. Summa agreed to lease the claims for of ten years and must make aggregate cash payments of US$99,067 a year. It may elect to pay $27,018 of the annual amount by issuing stock. Summa also granted a 4% royalty on the mining claims of which it can repurchase up to a 2% royalty for $1 million under the first lease agreement and up to a 2% royalty under the second lease agreement for $2 million. Summa Silver trades on the TSXV under SSVR and on the OTCQB under SSVRF. News release
Arizona Metals announced the results of six recently completed drill holes at its Kay mine VMS project in Arizona, USA with a highlight of 68.4m grading 6.7 grams per tonne gold equivalent in hole 58 including higher-grade intervals of 7.3m grading 10.1g/t and 10.5m grading 21.1g/t. Hole 58 is in the central portion of the deposit. Assays on an additional 20 holes are pending. The company said drilling demonstrates excellent continuity of mineralization in all directions, while also showing that it is substantially thicker than suggested by its original modelling. Arizona has drilled 45,000m at Kay to date. It has 30,000m remaining to drill in the current program, as well as an additional 76,000m in the upcoming Phase 3 program. Arizona Metals trades on the TSXV under AMC and on the OTCQX under AZMCF. News release
Osisko Mining discovered a new gold zone near the Lynx 4 area at its Windfall gold project in the Abitibi greenstone belt in Québec, Canada. Expansion drilling has defined a new sub-vertical zone outside the January 2022 resource. It is defined by 18 intercepts over 200m x 300m, remains open and contains high-grade mineralization typical of the Lynx area. Drilling highlights included 5m grading 60.7 grams per tonne in hole 2601 and 3.6m grading 76.4g/t in hole 2540. Osisko Mining trades on the TSX under OSK. News release
GoGold Resources released six drill holes from the Mololoa deposit within its Los Ricos North project in Jalisco, Mexico. Highlights included 1.1m grading 4,366 grams per tonne silver equivalent within 33.4m of 317g/t in hole 104. The company said Mololoa continues to return high grade intercepts in addition to wider intercepts of potentially bulk mineable material and will contribute to its goal of expanding mineral resources at Los Ricos this year. Mololoa is about 1km north of the El Favor deposit and may be an eastward extension of the Casados deposit. It consists of multiple veins with a total strike length exceeding 1,000m to date. GoGold Resources trades on the TSX under GGD and on the OTCQX under GLGDF. News release
Tarachi Gold signed new land lease, water rights and tailings purchase agreements with the Magistral Ejido community for its Magistral gold tailings project in Durango, Mexico. The Land Lease Agreement is for a 30-year term, granting Tarachi use of 63.9 hectares of land for mining, processing, and tailings disposal purposes. The Company will pay annual fees to the Ejido and has agreed to make an advanced payment on signing for the first two years of leasing fees. It also signed a 30-year water supply and related infrastructure agreement. Tarachi also amended an existing agreement to purchase and process tailings belonging to the Ejido, increasing the purchase price by 25c/tonne when gold prices are above $1,475/oz. About 70% of the tonnes in the Magistral resource estimate are subject to the new agreement terms. Tarachi Gold trades on the CSE under TRG and on the OTCQB under TRGGF. News release
That concludes today’s morning briefing.
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