Defiance Reports New Drill Results from Lucita

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Wednesday, April 13th

Tuesday was CPI day and the latest reading did not disappoint goldbugs. Shortly after the inflation report was released, gold shot up from US$1,955 per ounce to as high as $1,979, before pulling back to settle at $1,967 which was its highest closing price since March 11th. Silver was even more responsive to the CPI report, which showed the highest year-over-year increase in price inflation in over 40 years. Silver spiked up 75 cents or 3%. Silver outperformed gold by a little more than double on a percentage basis. 

The Mining Stock Journal commented that, over the last month, there's been a pattern of gold and silver getting slammed only to bounce back up and settle at a higher price level. There seems to be an invisible buyer of the metals on all sell-offs. The mining stocks roared higher on Tuesday with the higher prices of gold and silver but pulled back along with the p.m. sell-off in the stock market. Despite this, the mining stocks finished higher on the day. The Mining Stock Journal said that the mining stock indices, like the GDX, are on the cusp of major technical breakouts. 

We will get to the news from the miners and explorers in a moment, but first a word about 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….

Defiance Silver reported results from the first ever drilling at the Lucita property on its Zacatecas silver project in Mexico with highlights including 1.15m grading 1,604 grams per tonne silver in hole 50, within an interval of 3.33m grading 709.04g/t. Some 4,750m have been completed with results for eight holes pending. Defiance said drilling confirmed the presence of high-grade, near surface, Fresnillo-style, low to intermediate-sulfidation epithermal silver mineralization consisting of pyrargyrite and silver sulfides. Lucita is under option from Pan American Silver. Defiance Silver trades on the TSXV under DEF and on the OTCQX under DNCVF. News release

i-80 Gold closed the gold prepay and silver purchase and sale portions of a financing package with Orion Mine Finance, which, when combined with the previously completed segments means the company has about US$165 million in cash and restricted cash. The package also provides for access to an additional $100 million potentially available via an accordion feature. The package includes a $45 million gold prepay purchase and sale agreement and a $30 million silver purchase and sale agreement. The Gold Agreement includes an adjustment to the quantity of the quarterly deliveries, but not the aggregate amount. i-80 will now deliver 1,600oz to Orion for the March quarter, 3,100oz for the June quarter and 2,100oz per quarter thereafter until September 2025 for aggregate deliveries of 32,000oz. The deliveries under the Silver Purchase Agreement remain the same. i-80 Gold trades on the TSX under IAU and on the OTCQX under IAUCF. News release

A busy week for New Found Gold which announced a new high-grade gold discovery between the Keats and Golden Joint zones, about 440m north of the Keats Zone, at its Queensway project near Gander in Newfoundland. Drilling returned 3.85m grading 43.9 grams per tonne gold in hole 515 in the Keats North area with the discovery named the 515 Zone. At the start of the year the company began a program of systematic drilling between the Keats and Golden Joint Zones along a roughly 700m gap with limited prior drilling.  Today’s result is about 440m from hole 491 which returned 3m grading 79.8g/t we covered earlier this week. New Found Gold’s stock jumped 7% yesterday on news that Eric Sprott increased his shareholding to 31.4% after buying 15 million shares from Novo Resources for C$125.9 million. New Found Gold trades on the TSXV under NFG and on the NYSE American under NFGC. News release

Osino Resources announced an updated mineral resource for its Twin Hills gold project in the Erongo Region of Namibia, featuring what the company said is substantial growth with significant conversion of inferred resources to indicated due to expansion in the Twin Hills Central, Bulge and Clouds areas, and delineation of additional resources from new areas. Twin Hills now hosts 65 million tonnes grading 1 gram per tonne for 2.1 million ounces indicated and 20.7Mt grading 0.93g/t for 620,000oz inferred using a US$1,700 per ounce gold price and a 0.5g/t cut-off. Osino is currently working on a pre-feasibility study. Osino Resources trades on the TSXV under OSI and on the OTCQX under OSIIF. News release

Energy Fuels says the Company's White Mesa Mill located near Blanding, Utah made three commercial shipments of three critical mineral products. Energy Fuels shipped Natural uranium concentrates to the Metropolis Works uranium conversion facility in Metropolis, Illinois for conversion into uranium hexafluoride which will be enriched and used as fuel for the production of nuclear energy. It shipped Vanadium pentoxide to the Bear Metallurgical Company in Butler, Pennsylvania for conversion to ferrovanadium which will be sold into the steel and specialty alloys industries; and High-purity mixed rare earth element carbonate to Neo Performance Materials' Silmet facility in Estonia for separation into advanced REE products. The REE Carbonate had undergone partial separation at the Mill using existing Mill facilities prior to its delivery to Silmet, which is the first commercial-scale REE separation to occur in the U.S. since at least the early-2000's. This is the first time Energy Fuels, the Mill – and perhaps any facility in history – has accomplished such a feat. The Company believes it is clearly establishing itself as a "Clean Energy and Critical Mineral Hub" for the United States. Energy Fuels trades on the NYSE with UUUU and on the TSX with EFT. News Release

That concludes today’s morning briefing.

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