Corvus Gold Announce PEA for both North Bullfrog and Mother Lode
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, October 7th.
Gold and silver were victimized by a late day paper manipulation ambush, with gold decapitated $31 and silver de-elevated by 76 cents Tuesday afternoon at a time when the global physical metal players were either at dinner or in bed. Gold settled the afternoon Globex trading session at $1881 and silver closed at $23.24. The Mining Stock Journal asserted that the trading activity was 100% confined to the paper market shenanigans of the entities whose motivated interest lies in keeping the prices of gold and silver contained. Duly noted, the newsletter added that the manipulative activity will make seasonal buyers in India quite happy. The mining stocks were beaten like a drum, as the GDX was hit for 3.7%. The Mining Stock Journal said that it expects a period of turbulence in the precious metals sector in correlation with even more extreme turbulence in the stock market. However, the newsletter is eagerly anticipating an opportunity to buy more gold and silver at lower prices as well as establish new positions in junior mining stocks that got ahead of themselves during the summer rush into the sector.
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… Rio2.
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And here’s what you need to know this morning.
Corvus Gold released their updated preliminary economic assessment for their Mother Lode Project in Nevada. Results outline a potential large Nevada, standalone, mining project with attractive preliminary production and financial performance statistics. This project is expected to be the Company’s second and separate mine development target in a central location surrounded by other recent discoveries in the Bullfrog Mining District. The results indicate robust economics at a gold price of $1,500/oz with pre-tax free cash flow of USD $564M and post-tax NPV5% of USD $303M with an IRR of 23% and strong leverage for higher gold prices with a USD $1.11B pre-tax cash flow at $1,900 gold price and post-tax NPV5% of USD $663M with an IRR of 42%. The Mother Lode Project may provide Corvus with a future production growth option to increase its gold production profile in the Bullfrog Mining District beyond its initial mining project at North Bullfrog. This project is expected to be the Company’s second and separate mine development target in a central location surrounded by other recent discoveries in the Bullfrog Mining District. News Release
In addition to the Mother Lode project PEA, the company also released a PEA for the company’s North Bullfrog Project. This project will be the initial mine development target for Corvus because of its expected low initial capital requirements, potential high margins and anticipated strong free cashflow generation that could provide development capital for the Company’s potential, second mining project at the Mother Lode deposit. The PEA results indicate robust economics at a gold price of $1,500/oz with free cash flow of $763M and post-tax NPV5% of $452M with an IRR of 47% and strong leverage to higher gold prices with a USD $1.36B pre-tax cash flow at $1,900 gold price and post-tax NPV5% $815M with an IRR of 70%. The initial capital for North Bullfrog now sits at $167 million. News Release
Corvus trades on the TSX and the Nasdaq with KOR.
Great Bear Resources shared new drill results this morning from the LP Fault on the Dixie Project. New drill results included 18.58 g/t gold over 19.25 meters which also included a sub interval of 194 g/t gold over .6 meters. Other new results included 20.74 g/t gold over 3.8 meters within a broader intersection of 2.03 g/t gold over 45.9 meters. To date, 180 drill holes have been completed along 11 kilometres of the LP fault, totalling approximately 100,000 metres, of which 151 drill holes have been completed on the central 5 kilometres of the LP Fault which is the focus of the Company's ongoing detailed drill program. Great Bear trades on the TSX Venture with GBR and on the OTCQX with GTBAF. News Release
Radisson Mining shared step-out drill results from its O’Brien gold project in the Larder-Lake-Cadillac Break between Royn-Noranda and Val-d”Or Quebec. Results included 92.89 g/t gold over 2.6 meters and 47.1 g/t gold over 2.5 meters. The company says both intercepts were obtained outside current resources west of the first mineralized trend along with visible gold showings. Radisson trades on the TSX Venture with RDS and on the OTC with RMRDF. News Release
Amex Exploration says they have expanded their High Grade Zone or HGZ on the Eastern Gold Zone of the Perron property in Quebec by over 275 meters to 1,100 meters vertically with the latest drill results. Highlights include 14.07 g/t gold over 9.75 meters and 25.04 g/t gold over 3.85 meters. Amex trades on the TSX Venture with AMX and on the OTCQX with AMXEF. News Release
Kesselrun Resources also provided new drill assay results from the Huronian Gold Project. The company says wide zone of intense quartz veining, alteration and sulphides near surface assayed 6.2 g/t Au over 45.1 m with three discreet zones that assayed 42.1 g/t Au over 4.9 m, 7.6 g/t Au over 2.3 m and 6.1 g/t Au over 2.8 m from hole 4. Kesselrun trades on the TSX Venture with KES. News Release
Northern Vertex delivered their sixth consecutive monthly gold production record from their Moss Gold Mine in Arizona. The company announced record production of 14,600 gold equivalent ounces and a record revenue of $27 for the quarter. Northern Vertex trades on the TSX Venture with NEE and on the OTC with NHVCF. News Release
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I’m Trevor Hall. Have a wonderful day. Be well.
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