Contact's Met Testing Improves Green Springs; Another Twist in SilverCrest Financing
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday, April 21st.
The price of gold weathered an overnight attack Monday that successfully tested the $1684 level on the June contract twice. Gold then ran to as high as $1718 before settling the day session at $1711. The Mining Stock Journal noted that contrary to the price-action last week, the gold price rallied going into the a.m. London price fix and it rallied after an initial take-down when the Comex floor session opened Monday morning. Silver continues to price-oscillate just below its 50 day moving average. The Mining Stock Journal noted that there's been a huge decline in silver futures open interest in which the banks have largely covered their net short position. The newsletter's editor, Dave Kranzler, believes that it's just a matter of time before the price of silver explodes higher to close the gap between the futures price and price observable in the physical market, where buyers are paying as much as $9 over the spot price to buy physical silver.
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... Western Copper and Gold.
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 10 billion pounds of copper and 18 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning …
Contact Gold shared news this morning in regards to their bottle roll tests from the Green Springs Project in Nevada. Three cyanide bottle rolls were completed on composite samples from 2019 RC drill intercepts from the Alpha, Bravo and Echo Zones. From the Echo Zone, A composite sample composed of 13 individual 5 foot sample intervals totalling 1.15 kg returned a bottle roll assay of 6.02 g/t Au, or 108% of the 5.75 g/t Au average grade using original Fire Assay and Gravimetric methods for the same 13 samples. The Alpha zone composites returned mediocre results due to improper compositing. The lower 10 samples representing 15 metres returning in excess of 90% cyanide solubility. But the upper 7 samples included in the composite, representing 10.67 metres returning less than 20% cyanide solubility, and therefore two composites should have been formed instead of one. And from Bravo Zone, A composite sample composed of 15 individual 5 foot sample intervals totalling 1.05 kg returned a bottle roll
assay of 1.04 g/t Au, or 99% of the 1.05 g/t Au average grade using original Fire Assay and Gravimetric methods for the same drill interval. Significantly the Bravo Zone is interpreted to be hosted within the Pilot Shale, an important regional host unit that was not previously mined at Green Springs. Bravo was not previously thought to be unoxidized gold mineralization. Contact Gold trades on the TSX Venture with the symbol C and on the OTC markets with CGOL. News Release
African Gold Group shared final drill results from its diamond drilling program at its Kobada gold project, located in southern Mali. Highlights included 3.15 meters of 14.72 g/t gold and 22.2 meters of 5.25 g/t gold. The Company commenced drilling at its Kobada concession in September 2019 and to date has completed 11,428 meters of diamond core drilling. The main aim of the drilling campaign was to confirm the historical resource model from the 2016 Kobada Gold Project feasibility study, increase the conversion of resources to reserves and grow the resource base along identified shear zones. The Company is currently working on an all-encompassing definitive feasibility study for the Kobada Gold Project. The Company expects to complete the study in the second quarter of 2020, incorporating the results from Phase 1 and 2 drilling campaigns. African Gold trades on the TSX Venture with AGG. News Release
Quebec Precious Metals says that results from recent step-out drilling indicates gold mineralization continues to the southwest of La Pointe deposit and shows significant exploration potential. Select drill results from recent drilling included partial assays of 1.15 g/t gold over 80.1 meters and 4.15 g/t gold over 3.5 meters. The company says Significant additional drilling will be required to better define the exploration potential of this discovery. The La Pointe deposit and new La Pointe Extension discovery are part of a larger 13-kilometre-long mineralized trend on the Project striking SSW-NNE. Quebec Precious Metals trades on the TSX Venture with CJC and on the OTCQB with CJCFF. News Release
Troilus Gold also shared new drill results this morning. These results came from the drilling program completed earlier this year on the Southwest Zone of its Troilus Property in Quebec. Results included 1.56 g/t gold equivalent over 73 meters. Results to date from the Southwest Zone confirm a more than 1 km mineralized trend. The Southwest Zone remains open along trend and at depth. Further results from the Southwest Zone drilling are expected to be released in the coming weeks. News Release
Financings picked back up this week in the junior sector. So lets join Kai Hoffman once again to deliver that news with the Oreninc Weekly Update.
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Kai did mentioned the big financing announced last week by SilverCrest. This morning SilverCrest says SSR Mining elected to exercise is equity participation agreement between the two companies. Accordingly, SSR Mining has agreed to purchase 3 and a half million shares of SilverCrest for aggregate proceeds of C$27 million at the same price of C$7.50 as the non-brokered private placement offering. However, SSR Mining did advice they would then turn those shares around and sell them to Eric Sprott for a $.15 premium to the price originally paid in the offering. News Release
And in more financing news, GFG announced a $5 million non-brokered private placement. Alamos Gold has agreed to step in a commit to purchasing 9.9% interest in GFG through the offering.
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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