Contact Gold's Echo Zone Continues to Deliver; Production Results form Pretium & Barrick; the Weekly Index from Oreninc
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, February 12th.
Gold rallied from overnight lows Tuesday morning before a flash-crash took the gold price down $11 right before Fed head Jay Powell began his semi-annual testimony to the House on monetary policy and the economy. The Mining Stock Journal explained that it's customary for gold to get hit hard ahead of and during this event. After bottoming at $1565, gold rallied to 1573 and is currently trading around 1570. The HUI index close down a little over a point and GDX closed slightly green. The Mining Stock Journal noted that gold appeared to grinding higher as it bounces along its upward sloping 50 day moving average.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by... Integra Resources.
Integra Resources trades on the TSX-V under ITR and the OTCQX under IRRZF. Integra Resource is advancing its past producing DeLamar (DeL - a - Marr ) Gold-Silver project in SW Idaho through aggressive drilling and exploration. The latest Resources Estimate released earlier this summer showed approximately 4 million Gold equivalent ounces in the measured and indicated category.The maiden PEA for the project established a net present value of C$473-million and an IRR of 43%. The management of Integra successfully sold its previous brownfields project for C$590 million in summer 2017. Read more about the company and its successful management team at integraresources.com.
And here’s what you need to know this morning out of the junior sector.
Contact Gold shares more drill results this morning. These were the final 2 drill holes from its 2019 drill program from the Green Springs project on the Cortez Trend in Nevada and included the first hole form the Bravo Zone. Contact said That hole from Bravo included 1 g/t oxide gold over 22.86 meters. Oxidized gold at Bravo Zone represents a significant checkmark to the project given the nature of gold mineralization at Bravo was a question mark when acquiring the project. Echo Zone continued to deliver with an intersection of 3.53 g/t oxide gold over 38.1 meters which also included a 6 meter section of 11.19 g/t gold. The drill hole was in gold mineralization when it was lost in a void, with the last sample grading 0.65 g/t Au over 1.5m. Contact is incorporating these drill results into our geological model and planning an aggressive drill program for 2020. News Release
Discovery Metals announced results from the second set of diamond drill holes completed at its flagship Cordero project in Chihuahua State, Mexico. Highlights included 188 g/t silver equivalent over 105.9 meters. Twenty-three holes totaling over 8000 m have been completed to-date, with assays from 15 holes pending. The focus of this drill program is to define and delineate areas of higher-grade mineralization within the existing Cordero resource. Discovery trades on the TSX Venture with DSV and on the OTC markets with DSVMF. News Release
O3 Mining shared new drill results as well. Highlights from today’s announcement included 4.8 g/t gold over 8.2 meters and 5.3 g/t gold over 8.6 meters. These results demonstrate the continuity of the Epsilon zone over a strike length of 1.5 km. O3 has been conducting a 50,000 meter drill program on its Val D’Or properties. The 2020 drilling campaign on the Alpha property continues to focus on the Cadillac Larder Lake Fault corridor, specifically the Bulldog, and the Epsilon zones, with two drill rigs now on the Alpha property and a third rig starting later this month. O3 trades on the TSX Venture with OIII and on the OTC with OQMGF. News Release
AngloGold Ashanti said this morning it has agreed to sellits remaining South African producing assets and related liabilities to Harmony Gold Mining in the form of cash and deferred payments for a total of $300 million. Anglo and Harmony believe the deal could be closed by the end of June this year.
Now we welcome back Kai Hoffman Oreninc to share this week’s Weekly Financing numbers.
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We have production numbers out from a few heavy players this morning. There was much anticipation for this morning’s Pretium Resources release. Today they announced their annual 2019 gold production reached above 354,000 ounces of gold at an all in sustaining cost of $888 per ounce of gold sold. Free cash flow hit $184 million and total debt decreased by $180 million. Pretium revised their 2019 guidance numbers to a lower trajectory after its third quarter numbers challenged their original guidance. The company said that result was due to limited stope inventory and operational issues. Today’s announcement of full year guidance puts the company above that revised number. Pretium’s 2020 guidance of gold production is now set between 325-365,000 ounces. It was also announced that Pretium’s Board of Directors has initiated an external search for a new President and CEO. Pretium trades on the TSX and the NYSE with the symbol PVG. News Release
Barrick Gold also shares its yearly numbers this morning for 2019. Barrick said gold production of 5,465,000 ounces was at the top end of its guidance range while copper production of 432 million pounds was above the guidance range. Barrick reported net earnings per share of $2.26 for the year and noted that its adjusted net earnings per share were up 46% year on year while debt net of cash was halved from 2018 to $2.2 billion. News Release
That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in. If you would like to be in touch with me and the show, please feel free to drop an email to trevor@clearcreekdigital.com. Also, if you have not done so already, please hit that subscribe button and also leave a review if you wouldn’t mind.
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