Exploring for Gold on St. Patrick's Day
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday, March 17th.
The precious metals sector on Wednesday experienced typical two-way volatility before and after the FOMC policy statement release. Gold actually rallied up to US$1,928 per ounce after the London a.m. price fix but was belted lower about 40 mins before the Comex opened. The price bashing continued up until the FOMC rate decision was announced, when gold dropped to $1,896 then quickly launched up to as high at $1,930 before settling at $1,927. Silver's price-path Wednesday was identical to gold's only the highs and lows were wider, with silver trading as low as $24.60 per ounce before shooting up and settling at $25.33. The Mining Stock Journal is very encouraged by the fact that gold is staying above $1,900 and silver is staying above $25, despite repeated attempts to push both metals below those benchmark prices. That said, the newsletter pointed out that often the real effort to push down the metals occurs a day or two after the FOMC meeting.
The mining stocks also traded in a volatile price range. Ultimately the Amex Gold Bugs Index closed slightly lower while the GDX ended up slightly green. Speaking of mining stocks, a new issue of the Mining Stock Journal will be released after the close today. Among other things, the newsletter will be discussing a relative value trade idea in mining stock that was irrationally hit hard earlier this week and also will be updating a potential 5-10x upside idea that trades under 10 cents. You can learn more InvestmentResearchDynamics.com
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… Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning….
Integra Resources announced its highest grade intersects to date at its DeLamar gold deposit in Idaho, USA of 9.14m grading 10.75 grams per tonne gold equivalent including 46cm grading 104.28g/t Au and 4,818g/t silver and also including 7.02m grading 8.40g/t AuEq at Sullivan Gulch. Drilling to date at Sullivan Gulch has delineated a mineralized zone extending over a strike length of 1km with a width of 200m and a depth of 350m. Only 550m of this strike length are included in the pre-feasibility study pit shell. The company said induced polarization geophysics indicates that the Sullivan Gulch zone could extend a further 900m south of the southern-most fence of drill holes. Integra Resources trades on the TSXV under ITR and on the NYSE American under ITRG. News release
Elemental Royalties into a gold purchase and sale agreement with Rambler Metals and Mining Canada, a wholly-owned subsidiary of Rambler Metals and Mining PLC, the owner of the Ming copper-gold mine in Newfoundland and Labrador in Canada. Under the stream, Elemental will pay US$11 million to receive 50% of payable gold production until Rambler has delivered 10,000oz, then 35% of payable gold production until it has received a further 5,000oz, following which it will receive 25% of payable gold for the life of mine. Elemental will make ongoing payments equal to 20% of the market price of gold with minimum deliveries of 1,200oz to Elemental in each of the first three years of the stream. Elemental also announced a non-brokered private placement of up to 9.3M shares priced at C$1.51 for gross proceeds of up to C$14 million to fund the Ming gold stream acquisition. The La Mancha Fund will acquire 7.3 million shares for a US$8.5 million investment, representing about 9.3% of Elemental's enlarged share capital. The financing is at a 14% premium to the hostile bid the company is defending from Gold Royalties. Elemental Royalties trades on the TSXV under ELE and on the OTCQX under ELEMF.
Palladium One Mining reported new drill results from Murtolamp in Finland. Drill Hole 137 returned 2.7 g/t palladium equivalent over 5.7 meters within a 24.2 meter intersection of 2.1 g/t palladium equivalent. The Company drilled a total of 11 holes totalling 1,514 metres into the Murtolampi Zone, which is interpreted to be a faulted offset of the Kaukua trend and shares many similarities with Kaukua resource pit area. The Murtolampi zone has been traced over 600 meters of strike with a Core Zone of 350 meters. Murtolampi's Core Zone is exposed on surface and represents a very low strip satellite open pit opportunity beside the main Kaukau open pit located only 2 kilometers to the south. Palladium One trades on the TSX V with PDM and on the OTCQB with NKORF. News Release
Trilogy Metals announced the fourth set of drilling results from the 2021 summer field season at the Arctic copper project in Alaska, USA. The 2021 Arctic drill program included 4,131m of diamond drilling in 18 holes designed to convert part of the resources from the indicated category to the measured category, and provide material for metallurgical testing and geotechnical information. Highlights included 25.43m of 2.35% copper, 4.56% zinc, 1.09% lead, 0.11 g/t gold and 20.49 g/t silver for a copper equivalent grade of 4.64% in hole 0181, which intersected six mineralized intervals. Trilogy said the 2022 summer field season currently includes a 10,000m drilling campaign focused on further infill drilling and exploring priority prospects and other targets within its land package. Trilogy Metals trades on the TSX and NYSE under TMQ. News release
Surge Copper announce assay results for four holes from its Berg deposit in British Columbia, Canada including a highlight of 132m grading 0.83% copper equivalent in hole 237 from 34m downhole within the main chalcocite blanket, followed by 71m grading 0.65% copper equivalent from 184m downhole. Surge can earn a 70% interest in Berg from Centerra Gold. It drilled nine holes at Berg in 2021 with assays from two holes pending. Surge Copper trades on the TSXV under SURG and on the OTCQX under SRGXF. News release
Newmont announced today that the Governments of Yukon and Canada, after consultation with Yukon First Nations, have jointly accepted the recommendation by the Yukon Environmental Socioeconomic Assessment Boards that the Coffee Gold Project be allowed to proceed. The Coffee Gold Project is a proposed open-pit and heap leach gold mine located in west-central Yukon, approximately 100 km east of Beaver Creek. During the peak of construction, the proposed project is estimated to provide nearly 700 jobs for Yukoners.
That concludes today’s morning briefing.
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