Barkerville Gold Exploration Update and SilverCrest Financing
Barkerville Gold Mines has expanded mineralization at depth with their recent exploration drilling program at Island Mountain. This news and more today right here on Mining Stock Daily.
Everybody welcome to Mining Stock Daily. Today is Tuesday July 23rd and this is your host, Trevor Hall. The gold price has pulled back to a technical level of support around the $1425 area. On Monday the price oscillated between $1425 and $1430 after an overnight attempt to push the price lower. Silver continued to grind higher as both speculators and fundamental long-term buyers continued to add to their positions. The Mining Stock Journal commented that Comex' August gold options expire on Thursday. Historically, front month contract options expiry is accompanied more often than not by a price attack by the Comex banks.
Today's briefing is brought to you by Brixton Metals. Brixton Metals is a precious metals exploration and development company which owns four high potential gold, silver and base metals projects in both the US and in Canada. It's Atlin Gold Project in B.C. has shown exceptional exploration potential, returning up to 509 g/t gold over 5.57m at the project's Yellowjacket zone. Read more about Atlin and the other projects under Brixton's portfolio by visiting brixtonmetals.com. Brixton trades on the TSX Venture under BBB and on the US OTC with the symbol BBBXF. We might note that shares of Brixton jumped up around 80% last week off the news from drilling results from the company's Thorne Project in the Golden Triangle.
Here's what else you need to know this morning out of the mining sector. Barkerville Gold Mines has new drill results out today from its Island Mountain exploration and category conversion program at the company's flagship Cariboo Gold Project in central British Columbia. New results from 24 recent holes on the Island Mountain include 45.94 g/t gold over 5.2m including a sample of 399 g/t gold over 0.5m. One infill drill hole intersected multiple vein corridors at Shaft Zone that assayed 14.91 g/t gold over 4.4m including a sample of 55.9 g/t gold over 0.8m. The company says these results demonstrate continuity of grade and widths within the modeled vein corridors. Expansion of mineralization at depth and anomalous mineralization between the vein corridors. A total of 20,000m and 47 holes were drilled at Shaft Zone and Mosquito Creek on Island Mountain in 2019. The program focused on infill drilling modeled vein corridors and conducting exploration along strike and down dip of existing vein corridors to determine the depth extent of the mineralization. Barkerville trades on the TSX Venture with the symbol BGM and on the OTC markets with BGMZF.
SilverCrest Metals announced this morning it has entered into an agreement with the syndicate of underwriters led by National Bank Financial and Desjardins Capital Markets, pursuant to which the Underwriters have agreed to purchase over 3.5 million common shares of the company at a price of $5.85 Canadian per share for the aggregate gross proceeds of $22 million dollars. SSR Mining has indicated it will elect to exercise its right to maintain its pro-rata ownership interest of up to 9.9% of the outstanding shares of SilverCrest by agreeing to purchase 780,000 shares of the company and a separate non-brokered private placement. The net proceeds will be used for continued exploration and advancement of the Las Chispas Project to feasibility level and for working capital purposes. SilverCrest trades in Canada with the symbol SIL and in the US with SILV.
IAMGOLD shared assay results this morning from its 2019 winter drilling program at its Monster Lake joint venture project in Quebec. A total of 16 drill holes totaling more than 5000m were completed. Highlights included 0.8m of 357 g/t gold, 0.5m of 133 g/t gold and 6.8m grading 3.85 g/t gold, all from the Annie Shear Zone system. The Monster Lake joint venture project hosts an NI 43-101 complaint resource effective as of February of 2018, comprising of over 1 million tons of inferred resources averaging 12.14 g/t gold for 433,000 ounces of contained gold assuming an underground mining scenario. IAMGOLD trades on the TSX with the symbol IMG and in the U.S. with IAG.
Sun Metals shared an update this morning from its exploration efforts at the company's Stardust project in northcentral British Columbia. The 2019 $5.4 million program consists of diamond drilling along with surface electromagnetic and borehole electromagnetic geophysical surveys. Diamond drilling was initiated in late May with two drills. To date, the drills have completed over 3,500m over nine drill holes in four pilot holes, and drill holes 10 and 11 are in progress. The primary focus of the diamond drill program is to explore around the mineralization identified last year which returned a 100m interval of 2.51% copper, 3.03 g/t gold and 52.5 g/t silver for a 5.9% copper equivalent. Sun Metals trades on the TSX Venture with the symbol SUNM and on the US OTC markets with SMTTF.
Last Thursday Discovery Metals announced a Private Placement equity financing to raise $9 million. Eric Sprott is taking 75% of the deal which will give him a 19.9% ownership stake in Discovery. Discovery is merging with Levon Resources. Proceeds from the deal will be used to rework the pit area of Levon's Cordero silver project in Mexico. The Mining Stock Journal believes that the economics of the Cordero project will be a homerun, with silver over $16. Levon's stock has doubled since the Sprott investment in Discovery. The Mining Stock Journal has a strong buy on Discovery shares, which trades under DSV on the TSX Venture Exchange. The newsletter noted that there will be an OTC listed symbol in the US for Discovery shares in conjunction with the closing of the merger with Levon. Levon shares currently trade under LVNVF in the U.S. And just out this morning, Discovery announced it has received conditional approval from the TSX Venture Exchange to complete the proposed plan of arrangement transaction with Levon.
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So, until tomorrow, have yourself a great day. We'll chat with you again. Take care.
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