First Majestic Acquires Silver Stream from First Mining
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday June 11th.
The Mining Stock Journal had a good laugh as the paper gold price on the Comex was given a nice push down $14 lower minutes after Investing.com posted a report at 10 a.m. East Coast time that gold was higher in anticipation that the Fed would announce more money printing stimulus. Right after the initial Fed policy statement was released the paper gold price was spanked for another $8 down to $1714 before launching as much as $36 after the Fed made it clear that its printing press had unlimited capabilities to print enough money to keep the big banks solvent. Silver doubled gold's gains on a percentage basis as poor man's gold rocketed back over $18. The mining stocks as represented by the GDX ETF soared 4.5% after a sluggish start. The Mining Stock Journal said that the Fed has made it clear that it will print the U.S. dollar into oblivion in order to prevent the banking system from collapsing. As such the mining stock newsletter expects to see gold challenge the $2,000 level before Thanksgiving, if not sooner.
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… 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 10 billion pounds of copper and 18 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 …
Great Bear Resources has more drill results out this morning from the LP Fault at the Dixie Project in Red Lake district of Ontario. Drillhole 137 returned 31.33 g/t gold over 20.55 meters with an interval of 576 g/t gold over 1 meter. This is the highest grade and widest gold interval at the LP Fault to date. The company says all adjacent drillholes, both vertically on the same section and laterally along strike, are also strongly mineralized over significant widths, suggesting excellent continuity of high-grade gold mineralization. You can find a full list of results on this morning’s press release found on the newsroom of the Junior Mining Network. Great Bear trades on the TSX Venture with GBR and on the OTCQX with GTBAF. News Release
First Majestic Silver announced it has agree to acquire from First Mining Gold Corp a stream on 50% of payable silver produced from the Springpole Gold Project located in Ontario, Canada. First Majestic will pay First Mining total consideration of $22.5 million in cash and shares, over three payments, for the silver stream which covers the life of the Project. In addition, First Majestic will make ongoing cash payments of 33% of the silver spot price per ounce, to a maximum of $7.50 per ounce, for all payable silver delivered by Springpole. First Mining is also granting First Majestic 30 million common share purchase warrants, each of which will entitle the Company to purchase one common share of First Mining at CAD$0.40 over a period of five years commencing at closing. According to the 2019 Preliminary Economic Assessment, average silver production from Springpole in years two through nine of the mine plan is expected to be 2.4 million ounces of silver per year. A total of 22 million ounces of silver is expected to be recovered over the life of the project - of which 50% would be purchased by First Majestic. Springpole is one of Canada’s largest, undeveloped gold projects with permitting underway and the results of a Pre-Feasibility study anticipated in early 2021. First Majestic trades on the NYSE with the symbol AG and on the TSX with FR. News Release
Capstone Mining announced the results of an updated mineral resource estimate for the Cozamin Mine in Zacatecas, Mexico. The total Measured & Indicated (“M&I”) Resource Estimate tonnes increased by 66%, with an 83% increase to contained copper metal to 949 million pounds and a 71% increase to contained silver metal to 39 million ounces of silver. M&I Resource for Vein 20, the principal zone in the Mala Noche Footwall Zone (“MNFWZ”), increased by 118% to over 13 million tonnes at 2.35% Cu and 52 g/t Ag. The Company is currently updating Mineral Reserves and an updated technical report is expected in Q3 2020. Capstone trades on the TSX with CS. News Release
Silvercorp Metals announced it elected not to exercise its “right to match” the Superior Proposal for Guyana Goldfields and will not increase the consideration payable to Guyana Goldfields shareholders. In the event Guyana Goldfields terminates the Arrangement Agreement, Silvercorp will receive a termination fee of C$9.0 million concurrent with such termination. So the matter for Guyana Goldfields appears to be closed, for now. Silvercorp trades on the TSX and the NYSE with SVM. News Release
Crystal Lake Mining announced this morning its intention to change the name of the company to Enduro Metals Corp. to reflect changes in the management and leadership of the company. The focus will continue to be the flagship Newmont Lake project in BC’s Golden Triangle. There will be no change in the share capital of the company.
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