Chakana Copper Drills Massive Sulfide at Soledad

Welcome to Mining Stock Daily. I am Trevor Hall.

Today is Tuesday July 27th. 

After running up to $1812 overnight Monday, gold was sucker-punched below $1800, with most of the price hit occurring after the Comex paper gold derivative trading floor opened. It's the first time gold has been successfully pinned below $1800 for longer than a couple hours since July 5th. Given the events that could affect gold and silver this week described below, the Mining Stock Journal is not surprised but does not expect gold to hold below $1800 for very long. Silver followed the same price path as gold but held comfortably above the $25 level. The mining stocks had a strong bounce yesterday, with GDX up 1.7%

Key events this week that could affect the directional trading in gold silver include the Tuesday/Wednesday FOMC meeting and today's expiration of options on August futures. Both events when they occur tend to put short term downward price pressure on the metals. That said, the Mining Stock Journal said that the daily GDX chart is starting to look quite bullish. This view is reinforced by poor investor sentiment toward mining stocks per the Hulbert Gold Newsletter Sentiment Index, which has gone quite negative. A negative reading indicates that newsletters on average are making the recommendation to short gold and mining stocks. Historically this index has been a remarkably reliable contrarian indicator.

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… Corvus Gold.

Corvus Gold Inc. is a North American gold exploration and development company, focused on its near-term gold-silver mining projects in southwestern Nevada.  The Company holds a commanding land position within the Bullfrog Mining District.  Neighbouring, adjacent projects controlled by AngloGold Ashanti, Kinross Gold and Coeur Mining highlight this active District.  The two 100% owned North Bullfrog & Mother Lode projects have a combined nearly 4M oz gold of in-pit resource and continues to grow with an on-going, successful, resource expansion drill program. 

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

Chakana Copper provided results from nine resource definition and exploration holes totaling 1,993.15m from the Soledad project, Ancash, Peru. Select intervals were highlighted with 12 meters grading 967.7 g/t silver and 27.39% copper starting at 140 meters of depth. The company says they have seen zones of massive sulfide of Soledad before but never to this extent. Also to note, Chakana has only tested 15 of their 110 targets so far on the project. They trade on the TSX Venture with PERU and on the OTCQB with CHKKF. News Release

Northern Vertex released new drill results from the multi-phase infill and resource expansion drilling program at the Moss Mine in NW Arizona. Specifically, results reported today are from drilling targeting the Moss and Ruth veins, as well as the intersection between these veins at depth below the Center and East pits. Results were highlighted with 38.1 meters of 1.43 g/t gold and 19.22 g/t silver and broader intervals of mineralization as well, such as 195 meters grading .4 g/t gold and 5.54 g/t silver. The company says the drilling announced today and over the past several weeks supports the thesis that Moss could be a significant long-life precious metals mine and that resources in the West Pit appear to be limited by lack of drilling, not geology. Northern Vertex trades on the TSX Venture with NEE and on the OTC with NHVCF. News Release

C3 Metals announced assays from an additional three holes from its ongoing drilling program of the Jasperoide Copper-Gold Project, Peru. Results were 118.71 meters of 1.15% copper and .37 g/t gold, 99.81 meters of .9% copper and .34 g/t gold and 102 meters of .61% copper and .23 g/t gold. The deposit remains open in all directions. C3 trades on the TSX Venture with CCCM. News Release

Jervois Mining announced it has agreed to acquire 100% of Freeport Cobalt by purchasing all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings Limited pursuant to a stock purchase agreement. The acquisition has the potential to transform Jervois into the second largest producer of refined cobalt outside China, building on existing assets of Jervois’ Idaho Cobalt Operations in the United States, expected to come into production in mid-2022 and the São Miguel Paulista nickel and cobalt refinery in São Paulo, Brazil which Jervois has agreed to acquire. Freeport Cobalt is the Kokkola, Finland-based cobalt refining and specialty products business retained by Freeport-McMoRan and certain co-owners following the sale of certain refining and battery materials activities to Umicore in 2019. The deal comes with a base consideration of $160M US. Jervois Mining trades on the TSX Venture with JRV and on the OTC with JRVMF. News Release

Also in M&A news, BHP Lonsdale Investment, a wholly owned subsidiary of BHP, announced they have entered into a definitive support agreement and will make a take-over bid to acquire all of the issued and outstanding shares of Noront Resources for $.55 canadian per share. This represents a 69% premium to the closing price of Noront yesterday. Noront was focused on development of its Eagle’s Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire. Noront trades on the TSX Venture with NOT. News Release

Outback Goldfields announced they have applied for an additional exploration license, central and contiguous to its Yeungroon property in the Victorian Goldfields of Australia. The license comprises 3,700 hectares centered on the regionally prospective Avoca Fault system and covers numerous reef-hosted gold occurrences over a 3 km north-south trend. Outback trades on the CSE with OZ. News Release

Clarity Gold says their first round of diamond drilling at the Destiny Projec tint he Abitibi is complete. The drill holes in this Program concentrated on infilling historic drilling in the DAC and GAP Zones, and confirmation of historic drilling which identified mineralization in these areas. The Company looks forward to updating further as additional results are received. Clarity trades on the CSE with CLAR. News Release

That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.

The Mining Stock Daily morning briefing is produced by Clear Creek Digital and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network. 

 

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