Corvus Acquisition Proposal; Osino PEA for Twin Hills
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Wednesday July 14th.
On Tuesday gold traded between $1814 and $1807 overnight, as data showed that India has begun to import physical gold again. When the CPI report hit the tape, and was worse than expected, not surprisingly gold free fell from $1815 down to $1798 and then launched back over $1800 and back up to $1815. The Mining Stock Journal said that, while the price manipulation effort using paper gold has become palpably transparent, this was one of the most blatant price attacks the newsletter has witnessed in several years. The motive for the price attack is the attempt to prevent the gold price from signalling to the market that price inflation will be unequivocally non-transitory. Silver was a different story. After peaking at $26.45 overnight, poor man's gold trended lower Tuesday in the Comex paper arena, settling at $26.05, down 25 cents from Monday. The Mining Stock Journal does not have an explanation for the divergence in price performance between gold and silver the past few days. The mining stocks took their cue from gold's price action, with GDX closing up 1.15%. The Mining Stock Journal said that the charts of gold, silver and the mining stocks continue to percolate bullishly, with the potential for a big move over the next several months.
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… 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 11 billion pounds of copper and 21 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.
Yesterday, news hit that AngloGold Ashanti had submitted a proposal to Corvus Gold to acquire Corvus in an all cash offer for the issued and outstanding common shares which the company does not already own. The offer stood at $4 canadian dollars payable in cash and represents approximately a 55% premium to the share price prior the previously announced Loan Agreement between the two companies. The total consideration of the deal is approximately $370 million dollars. Corvus did respond to the market saying they are considering and reviewing the offer between management and the board. Corvus shares on the Nasdaq rose over 22% yesterday in response from the market. They trade on the TSX and the Nasdaq with KOR. News Release
Osino Resources published results of the preliminary economic assessment for the Twin Hills Gold Project in central Namibia this morning. The report assumes a 15 year mine life and a 3.5 million tonnes per annum processing capacity with gold recovery just north of 90%. Using a .3 g/t gold cut-off grade, the net present value of the project is estimated to be $579 million pre tax at a 5% discount rate with an internal rate of return of 38%, calculated using a $1,700 per ounce gold price. Pre-production capital cost is estimated to be about $176million plus a $26m contingency. An additional 31,987 m of infill and expansion drilling has been completed at Twin Hills since the April 1, 2021 effective date of the Technical Report, but has not been included in the PEA. This will be included in subsequent updates of the Mineral Resource once the drill program has been completed and all corresponding assay results have been received. Osino is planning on publishing the feasibility study in the first half of next year. They trade on the TSX Venture with OSI and on the OTCQB with OSIIF. News Release
GoGold Resources released results from 11 new drill holes this morning front he Casados deposit in the Los Ricos North Project. The results were highlighted with 45.9 meters of 259 g/t silver equivalent, which also included a 1 meter interval grading 4,367 g/t silver equivalent. This hole, along with 3 others are at the eastern end of the historical workings and extend to the east. GoGold trades on the TSX with GGD and on the OTCQX with GLGDF. News Release
Orezone provided a construction update from their Bomboré Gold Project in Burkina Faso. The company says engineering is now over 60% complete and progressing on schedule. All bulk quantities for the project remain at or within the estimates in the 2019 FS. The mining of the off-channel reservoir contract was awarded to a local mining contractor and mobilization commenced in February 2021 with the first bench mined in March 2021. The OCR is the first ore pit to be mined and will also function as the main water storage for the project during operations and be available to the surrounding communities after mine closure. The OCR is expected to be completed before the onset of the 2022 rainy season in June. Mining is progressing very well with costs and material movement tracking to plan. Orezone trades on the TSX Venture with ORE and on the OTCQX with ORZCF. News Release
E79 Resourced reported they have applied for an additional Exploration Licence covering a total of 54km2 immediately south and east of the Current Myrtleford Property. The application has been registered with the Victorian Government and has no competing applications against it. This follows the company’s discovery from its first phase of drilling at Happy Valley. The combined length of the structural trend is now extended to 12 km. E79 trades on the CSE with ESNR and on the OTCQB with ESVNF. News Release
That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.
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