Drill Results from Filo, Newcore, Burin and much more

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

Today is Wednesday, April 20th

Overnight on Tuesday gold and silver drifted sideways to higher but both metals were given a broken elevator cable ride down on Tuesday. Not coincidentally, the push off the cliff started when the Comex opened Tuesday morning. Gold plunged from $1,985 per ounce down to $1,955 initially, ultimately settling at $1,952. Silver took a $1 cliff-dive from $26.20 down to $25.20 but settled at $25.29. The Mining Stock Journal said the price raid occurred in the absence of any news triggers. In other words, the price management team overtly clobbered the prices of both metals using Comex paper products. 

The mining stocks took their cue from the price action in the metals, with the GDX having 2.86% removed from its net asset value. The Mining Stock Journal commented that the precious metals sector is working off a technically overbought condition and could trade lower from here while the momentum indicators reset to neutral or oversold.

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… Rio2.

Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.

And here’s what you need to know this morning….

SolGold announced the results of a pre-feasibility study for the Cascabel copper-gold project in Ecuador to produce an average of 132,000 tonnes per year of copper, 358,000 ounces a year of gold and 1Moz/y of silver, or 212,000tpy copper equivalent for an initial 26 years at an initial project life-of-mine all-in-sustaining cost 6 cents per pound following capex of US$2.7 billion. The 25Mtpy block cave operation would yield an after-tax net present value (NPV) of $2.9 billion at an 8% discount rate and 19.3% internal rate of return (IRR) with a 4.7 year payback period at metal price assumptions of $3.60/lb copper, $1,700/oz gold and $19.90/oz silver. The economics improve to $4.1 billion and 23.4% at spot prices. Additional project optimisations are being advanced for a PFS addendum for completion later this year, with a feasibility planned for the second semester of 2023. SolGold trades on the LSE and TSX under SOLG.

Filo Mining drilled a zinger of a hole at its Filo del Sol copper project in San Juan, Argentina with an intercept of 1,251.5m grading 0.91% copper equivalent from a depth of 100m in hole 58, including 310m grading 1.40% copper equivalent. Hole 58 also intercepted 6m grading 398 grams per tonne silver in the silver zone. Hole 58 is outside the resource shell and was collared 160m northeast of, and parallel to hole 48 and ended in mineralization. The company said it is confident there will be many more holes like 58 to come. Filo Mining trades on the TSX under FIL. News release

Newcore Gold shared more drill results from the 90,000m drill program underway at its Enchi Gold Project in Ghana. First pass Reverse Circulation drilling at the Tokosea Gold Target intersected multiple wide zones of gold mineralization from surface. Drill results included 1.80 grams per tonne gold over 27.0 metres from 30 m, including 4.13 g/t Au over 3m from 31m. Tokosea is a greenfield discovery where first pass drilling has highlighted the potential to delineate additional resources across the 216km2 land package at Enchi. Newcore Gold trades on the TSX V with NCAU and on the OTCQX with NCAUF. News Release

Burin Gold announced gold assay results from an initial seven holes on its 2022 program of 10,000m of diamond drilling at its Hickey’s Pond – Paradise Gold Property, in Newfoundland, Canada. Highlights included 16m of 1.57g/t gold and 10.5m of 1.37g/t gold. Broad zones of gold mineralisation now reported in over 400m of strike, including best result from 2020 drilling of 10.8m of 4.43 g/t Au. Assays from 2,600m of the initial 3,777 m drilled are still pending. Burin Gold trades on the TSX V with BURG. News Release

Tin miner Alphamin Resources is seeking a buyer and has requested initial offers by the end of the month, reported Bloomberg. Its stock jumped 16% to C$1.30 a share on Tuesday valuing the company at $1.65 billion. Alphamin said in November 2021 that it would undertake a strategic review to maximize shareholder value, and with tin prices recently hitting an all-time high of US$51,000 per tonne in March, now is a perfect time to find a buyer. Alphamin’s Mpama North mine in Democratic Republic of Congo is one of the world’s highest-grade tin mines and produced 10,969 tonnes of tin concentrate in 2021. Alphamin Resources trades on the TSXV under AFM.

Adriatic Metals agreed heads of terms with four international commodities trading and smelting companies to purchase concentrate from its Vares silver project in Bosnia. Subject to final contract negotiations, zinc concentrate will be allocated to Trafigura, Transamine and a major European smelter, while the silver-lead concentrate will go to Glencore and Transamine. Adriatic has allocated the offtakers 82% of the projected concentrate production over the first 24 months, with the remaining 18% to take advantage of spot market sales or for additional long-term offtake agreements. Adriatic Metals trades on the ASX under ADT, on the LSE under ADT1 and on the OTCQX under ADMLF. News release

EMX Royalty made a strategic investment in private Canadian company Premium Nickel Resources which is advancing nickel-copper-cobalt and platinum group element projects in Botswana. EMX owns 5.4 million shares or 6.3% of PNR, having recently purchased an additional 1M shares as part of a US$17.5 million financing at US$2 per share. PNR recently acquired the Selebi and Selebi North nickel-copper-cobalt mines and signed an asset purchase agreement to acquire the Selkirk nickel-copper-cobalt-PGE mine, in Botswana's Selebi-Phikwe and Tati nickel mining districts. EMX trades on the NYSE American and the TSXV with EMX. News Release

That concludes today’s morning briefing.

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