Deeper Drill Results from Mother Lode, New Gold's Deal with Ontario Teachers, & New EMX Interest in Finland
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday, February 25th.
The price of gold shot up as much as $35 overnight on Sunday and into Monday, as coronavirus fears gripped the markets sending gold and silver soaring. Out of nowhere gold was smashed $20 right before 2:30 EST, as over $3 billion notional amount of paper gold futures were inexplicably dumped into the Comex computer system. The Mining Stock Newsletter noted that the Comex floor closes at 1:30 p.m. EST, so if someone entity wanted to manipulate the price of gold in the electronic market, 2:30 EST is one of the least liquid trading periods of the day for paper and gold and silver making it easier to push the gold and silver price lower. The mining stocks also soared in early trading and closed green on the day, albeit well off the highs of the day.
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... Pacific Empire Minerals
Pacific Empire Minerals Corp. is a junior exploration company focused on the discovery of gold-rich copper deposits in British Columbia, Canada. Pacific Empire trades on the TSX Venture Exchange under the symbol PEMC and on the OTCQB markets under the symbol PEMSF. The Company currently has a very tight share structure. Pacific Empires’ unique approach to the prospect generator business model incorporates the Company’s own reverse circulation drill to advance projects beyond that of typical prospect generators. More information on Pacific Empire can be found at pemcorp.ca.
And here’s what you need to know this morning out of the junior sector.
Corvus Gold shared new drill results this morning from its ongoing Main Zone infill and step-out Phase-4 drill program. These latest results are from targets designed to infill unestimated parts of the 2018 mineral resource model, to potentially extend the deposit deeper and probe the eastern side of the property. Hole 130 returned 1.93 g/t gold over 88.4 meters but was lost within central intrusive zone mineralization at the bottom. Hole 131 returned 1.92 g/t gold over 56.4 meters. This hole was also lost in CIZ mineralization. Corvus says infill holes drilled to date have consistently been adding new mineralized areas to the model as well as upgrading and expanding higher-grade zones, which could have a positive impact on the future mineral resource model update planned for fall of this year. The company trades on the TSX with KOR and on the OTC markets with CORVF. News Release
Galway Metals also shared drill results this morning. These coming from its Clarence Stream project in southwest New Brunswick, Canada. Hole 87 included 10.6 g/t gold over 47 meters and 1.2 g/t gold over 32 meters. The company said hole 93 extends the Richard Zone 97 meters to the southwest with an intersectin of 4.5 g/t gold over 10.8 meters. With this intersect, the gap between the Richard and Jubilee Zones has narrowed to 350m from 1-km originally. Galway says they continue to receive evidence from drill results that the GMZ, Richard and Jubilee Zones are part of the same 2.5 km-long mineralized system. News Release
Nexus Gold shared their plans for an upcoming drill campaign on the McKenzie Gold project in Red Lake, Ontario. Nexus says the drill permitting process is anticipated to conclude shortly. Upon confirmation that permits have been received the Company will commence a phase one, minimum 1000-meter, diamond drill program to test the mineralization potential of a corridor occurring along the southern contact of the Dome Stock with felsic Volcanics of the Balmer Assemblage. We will be sure to share those results when they are available. Nexus trades on the TSXV with NXS and on the OTC markets with NXXGF. News Release
EMX Royalty has acquired a 2% Net Smelter Return royalty on various exploration licenses totaling just over 1,000 hectares in Finland. The Kaukua Royalty licenses host palladium-rich platinum group element mineralization at Palladium One’s flagship Läntinen Koillismaa project. The Kaukua Royalty was acquired from Akkerman by EMX for C$125,000 and the issuance of 52,000 EMX shares. EMX’s NSR royalty applies to all future mineral production from the Kaukua Royalty licenses. Palladium One can purchase 1% of the NSR royalty prior to the delivery of a “bankable feasibility study” for €1 million. The remaining 1% of the NSR royalty is uncapped, and cannot be repurchased. EMX trades on the TSX and the NYSE with EMX. News Release
New Gold announced it has entered into a strategic partnership with Ontario Teachers’ Pension Plan. Under the terms of the strategic partnership, Ontario Teachers’ has agreed to acquire a 46.0% free cash flow interest in the New Afton mine (“New Afton”) with an option to convert the interest into a 46.0% joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5%, for upfront cash proceeds of $300 million payable upon closing of the transaction. The proceeds from the Transaction will be used to improve New Gold’s financial flexibility and to reduce net indebtedness. New Gold trades on the TSX and the NYSE with NGD. News Release
That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in. If you are planning on attending PDAC in a couple weeks, I will be presenting at the Letter Writer’s Presentation Sunday afternoon in the 2 o’clock hour. I will be sharing my topic; a young investors approach to the new gold bull market. Feel welcome to join me in room 801 that afternoon.
Mining Stock Daily is distributed over a dozen different networks throughout the world and in proud partnership with the Junior Mining Network. It is produced by Clear Creek Digital and Investment Research Dynamic's Mining Stock Journal.
Have a wonderful day. Be well.
Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.