Federal Reserve Announced Corporate Bond Purchases
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday June 16th
Gold was battered like a baby seal overnight on Monday, as it was taken down $26 from $1,742 to as low as $1706 after the Comex paper gold charade opened. The motive for the aggressive price push-down was revealed when Fed Chairman Jay Powell announced that the Fed was going to begin buying individual corporate bond issues in the secondary market. The Mining Stock Journal said that this program is designed to help the financial system absorb the coming tsunami of credit ratings downgrades from type-B to junk. Upon the announcement, gold shot straight up and is now trading at the level where it was trading before the price containment team went to work early /Monday morning. Silver followed a similar pattern and outperformed gold, with the gold/silver ratio at 98 as this is being written. The mining stocks, per GDX, opened up Monday down a quick 3% but began grinding higher before the Jay Powell show commenced. GDX finished the day up nearly 2.7% The Mining Stock Journal said the precious metals sector is technically set up for a nice move higher.
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… Corvus Gold.
Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning …
Probe Metals says results from exploration drilling at the Val-d’Or East Cadillac Break East Option property has identified three significant new gold zones on the eastern part of the Property. Two of the discoveries were made along the projected eastern extension of the Sleepy deposit, which hosts a Current Resource of 307,350 ounces of gold, while the third is a new discovery along a previously unexplored trend approximately 2 kilometres southeast of Sleepy. Results included 4.2 g/t gold over 4.2 meters from the target southeast of the Sleepy Deposit. A second discovery made 300 meters along strike east of the Sleepy deposit returned 108 g/t gold over 1 meter. Probe entered into an option agreement with Alexandria Minerals Corporation, now O3 Mining , whereby Probe may earn 60% interest in the Cadillac Break East Property by spending an aggregate of $5,000,000 on exploration expenditures over 4 years. Probe may earn an additional 10% (total of 70%) interest in the Property by completing a pre-feasibility study, incurring an additional $2,000,000 in exploration expenditure and issuing 200,000 common shares to O3 Mining on completion of the 70% earn-in requirement. Probe Metals trades on the TSX Venture with PRB and on the OTCQB with PROBF. News Release
Liberty Gold reported results from Bulk Sample metallurgical testing on oxide material from its Black Pine Project in southeastern Idaho, providing support for a simple heap leach mining scenario. Gold extractions from six, 300 kilogram (“kg”), large-diameter column tests were rapid, and >80% of the leachable gold was extracted within 10 days, with final column leach gold extractions ranging up to 92.8%. The company says Results from the metallurgical test work demonstrate that oxide material from Black Pine responds well to column testing and will contribute to low capital and operating costs in the future. The test work undertaken on the project has significantly mitigated the metallurgical risk related to the known mineralization. Liberty Gold trades on the TSX with LGD and on the OTC with LGDTF. News Release
Ivanhoe Mines announced this morning it has successfully completed the sinking of Shaft 1 to a final depth of 996 meters below surface at the company’s Platreef mining license. Underground mine development work now will focus on the construction of the 996-metre-level station at the bottom of the shaft, with final completion forecasted by the end of July 2020, well ahead of the contractual schedule. The shaft can then be reconfigured and equipped for rock, personnel and material hoisting. Ivanhoe is also finalizing a Preliminary Economic Assessment for the phased development production plan for the Platreef Project. The plan targets significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine's initial production shaft, followed by expansions to the production rate as outlined in the 2017 Definitive feasibility study. Ivanhoe trades on the TSX with IVN and on the OTCQX with IVPAF. News Release
Osisko Metals announced results of an independent Preliminary Economic Assessment which included results of an updated mineral resource estimate which converts approximately 25% of the global resource to the indicated mineral resource category for its wholly-owned Pine Point Project in the Northwest Territories of Canada. Results of the PEA included an IRR of 29.6% and an after-tax NPV of C$500 million. The proposed mine plan would produce over 450Mlb of zinc in its peak year and an annual average of nearly 330Mlb of zinc and 145Mlb of lead over its estimated 10-year mine life. On a zinc-only basis, Pine Point could potentially, if it entered into production, become a low-cost zinc-lead producer ranking 4th largest in the Americas and 9th in the world. Osisko Metals trades on the TSX Venture with OM and on the OTCQX with OMZNF. News Release
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