Filo Confirms the Extension of High-Grade Breccia at Filo del Sol

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

Today is Thursday, January 20th. 

The precious metals sector conducted a launch party on Wednesday as gold spiked up over US$30 per ounce to close at $1,843, and silver soared 74 cents per ounce, or 3.15%, to $24.23. It was silver's first close over $24 since November 22, 2021. 

The mining stocks did a veritable moon-launch, with the Amex Gold Bugs Index jumping nearly 8% and the GDX spiking over 7%. The Mining Stock Journal is still looking for a specific news or event catalyst that might have triggered the move. 

Making the move in the precious metals sector even more remarkable was the blood-bath in the stock market. Typically when the broad stock indices are getting roasted, the precious metals sector sells off in sympathy as hedge funds unload everything, including gold and silver derivatives and mining stocks. The best the newsletter can come up with is that gold and silver reacted positively to the big jump in the price of oil early in the day as well as being benefactors of a flight to safety alternative to the dollar, which sold off Wednesday. 

For those of you who are silver and silver mining stock junkies, the next issue of the Mining Stock Journal will feature a handful of undervalued silver mining stocks, both producers and junior explorers. You can learn more about the newsletter at InvestmentResearchDynamics.com.

We’ll get to the news out of the miners and explorers in a moment but first a mention of 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….

Filo Mining reported a drill intercept of 1,224m grading 0.71% copper, 0.54 grams per tonne gold and 18g/t silver for a 1.26% copper equivalent in hole 54 at its Filo del Sol project in San Juan, Argentina. The hole, outside the current mineral resource, included sub-intervals of 592m grading 2.04% copper equivalent and 171.5m grading 3.22% copper equivalent. Hole 54 was collared 60m east of, parallel to and more than 300m past, hole 41, ending in mineralisation. Filo is assessing the technical feasibility of drilling to depths of at least 2km later in the year. Filo Mining trades on the TSX under FIL and on the OTCQX under FLMMF. News release

Sticking with copper, Trilogy Metals announced an updated resource estimate for the Bornite copper project in the Ambler Mining District of Northwest Alaska, USA, which is part of its joint venture with South32. Bornite, which is 24km from the Arctic project, now contains an in-pit indicated resource of 41.7 million tonnes grading 1.04% copper for 955 million pounds of contained copper and inferred resource of 93.9Mt grading 0.98% copper for 2Blb of contained copper at a 0.50% copper cut-off. Below the pit shell, and at a 1.5% copper cut-off, the combined South Reef and Ruby Zone is estimated to contain additional inferred mineral resources of 50.3Mt grading 2.97% copper for 3.3Blb of contained copper. Trilogy Metals trades on the TSX and NYSE American under TMQ. News release

Elemental Royalties expects an approximately 40% increase in successive quarterly revenue from production at the Karlawinda Gold Mine in Australia. Revenue from Karlawinda, one of six Elemental royalties on producing assets, is estimated at US$1.1 million for the quarter ended December 31, 2021, up about 40% from US$800,000 in the September quarter, Karlawinda's first quarter of commercial production and sales. Elemental believes its Karlawinda royalty is one of many strong reasons for shareholders to reject a hostile takeover bid from Gold Royalty. The estimated Karlawinda revenue of US$1.1 million for the December quarter is equivalent to nearly six times the total revenue of US$191,991 disclosed by Gold Royalty for its entire fiscal year. Elemental Royalties trades on the TSX Venture with ELE and on the OTCQX with ELEMF. News Release

i-80 Gold awarded the engineering study for restart of the Lone Tree autoclave to Hatch, which will complete a pre-feasibility study level mechanical and operational review of all aspects necessary to restart the autoclave processing facility in northern Nevada. Additionally, as a part of its comprehensive plan to create a Nevada focused gold mining company, i-80 has recently filled multiple key positions continuing to build a tier-one operations team, including Tony Carroll to lead the restart. Lone Tree includes an autoclave, floatation circuit, tailings compound and heap leach facility which will become the hub of i-80's Nevada operations as it seeks to grow to become a 500,000 ounces a year gold producer. i-80 Gold trades on the TSX under IAU and on the OTCQX under IAUCF. News release.

Bearing Lithium released an updated feasibility study for the stage one Maricunga lithium brine project in Chile which is managed by Lithium Power InternationaI. The study details a 15,200 tonnes per year production of lithium carbonate equivalent for 20 years with an initial capital expenditure of US$626 million, with an operating cost of $3,718 per tonne, excluding credit from potassium chloride by-product. The project will yield an after tax net present value of $1.4 billion at an 8% discount rate and an internal rate of return of 39.6%. It said project infrastructure including water rights have been secured by long term contracts. The partners will now focus on funding stage one. Bearing Lithium trades on the TSXV under BRZ and on the OTCQB under BLILF. News release

Elevation Gold Mining provided a corporate update today from its Moss Mine in Arizona with its 2022 exploration drilling program underway with two reverse circulation drill rigs. The company entered into a short-term gold loan agreement with Maverix Metals and received an upfront payment of US$6 million in return for agreeing to sell and deliver a specified amount of refined gold per quarter to Maverix, and an additional US$1 million of refined gold beginning March 28 until expiry of the agreement in June 2023. Elevation Mining trades on the TSXv under ELVT and on the OTCQX under EVGDF. News Release

Summa Silver provided a quick update from exploration work on the Mogollon Property in New Mexico. The company sampled multiple veins on the property and received encouraging results, including samples exceeding 1,000 g/t silver equivalent and locally exceeding 5,000 g/t silver equivalent. The sampled area covers a footprint of 3.5 x 3.5 km, highlighting the considerable scale of the Mogollon property and confirming it as a mineralized high-grade precious metal district. Most high-grade veins at surface have never been drilled and present compelling discovery opportunities after the Consolidated Extension area is drilled out in 2022. 50 holes are planned for the Mogollon Property this year. Summa Silver trades on the TSX Venture with SSVR and on the OTCQB with SSVRF. News Release

That concludes today’s morning briefing.

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