Global Copper Exploration and Q3 Production Numbers
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Tuesday October 12th.
On Friday gold spiked up to $1781, up over $26 from the previous day at one point while silver spiked up as much as 60 cents, after the Government employment report turned out to be woefully below Wall Street's expectations. The response in the metals was attributable an increase in the probability that the Fed would defer its taper agenda if the economy shows signs that it is getting weaker. That said, the Mining Stock Journal said that, despite the bullish news for the precious metals sector, it's customary for gold and silver to endure a beat-down on Fridays after Europe and Asia close for the weekend. And this past Friday did not disappoint. After tagging its 50 day moving average, gold retraced the entire spike up and closed flat. Silver managed to hold onto enough of its price spike to close on the green side of the ledger. Yesterday, the two metals were down marginally. The mining stocks fared a little better than the metals. Notwithstanding the intervention tactics of late, the Mining Stock Journal is growing more confident that a bullish move will get underway over the next several weeks.
We’ll get to the news out of the miners and explorers in a moment, but first a quick 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.
Arizona Metals announced the results of ten new drill holes at the recently discovered gold-rich zone of open-ended mineralization at the Kay Mine, in areas previously untested by historic drilling or exploration. Here are a few highlights from today: Hole KM-21-40 intersected 24 m at a grade of 5.0% Cu, 0.6 g/t Au, 1.0% Zn, and 23 g/t Ag, including a higher-grade interval of 8.1 m grading 7.6% Cu, 0.4 g/t Au, 0.4% Zn, and 27 g/t Ag. At 30 m farther downhole, Hole 40 also intersected 53 m at a grade of 2.9 g/t Au, 3.4% Zn, 0.5% Cu, and 36 g/t Ag, including two separate higher grade intervals of 7.2 m grading 7.7 g/t Au, 8.3% Zn, 1.1% Cu and 89 g/t Ag, as well as 3.8 m grading 10.9 g/t Au, 9.5% Zn, 1.5% Cu, and 25 g/t Ag. This hole extends the high-grade mineralization encountered in Hole 28 approximately 65 m to the south at a similar depth. Hole KM-21-41 intersected 97 m at a grade of 1.0% Cu, 1.5 g/t Au, 2.7% Zn, and 41 g/t Ag, including higher grade intervals of 11 m grading 5.3 g/t Au, 1.0% Cu, 8.2% Zn, and 106 g/t Ag, as well as 11.4 m grading 5.9% Cu, 5.8 g/t Au, 3.2% Zn, and 185 g/t Ag. This hole extends the high-grade mineralization encountered in both Holes 24 and 26 by approximately 60 m up-plunge and 20 m to the north demonstrating lateral and vertical continuity. Arizona Metals trades on the TSX Venture with AMC and on the OTCQX with AZMCF. News Release
Surge Copper also shared new assay results from the Ootsa Property in British Columbia today. Today’s results are the second batch of results released since commencing drilling in their summer program. Today’s news was highlighted with 495 metres grading 0.54% copper equivalent including 355 metres grading 0.62% copper equivalent and 126 metres grading 0.85% copper equivalent. The 2021 core drilling program at Ootsa has ended with 26,556 metres of drilling in 72 holes completed since June 2021. Thus far, results from 20 holes have been released, with results from 52 additional holes pending. A new resource estimate for the Ootsa Property is expected by year end incorporating approximately 30,000 metres of new core drilling. Surge Copper trades on the TSX Venture with SURG and on the OTCQX with SRGXF. News Release
Solaris Resources reported the latest results from the Warintza Project in Ecuador. Three additional holes at Warintza Central have extended the drill defined envelope of high-grade mineralization to the north, northeast and south, with the highest-grade mineralization encountered in all holes starting at or near surface. Results were 372m of 0.82% CuEq from surface, 1,000m of 0.81% CuEq from near surface, and 618m of 0.48% CuEq from surface. To date, 44 holes have been completed at Warintza Central with assays reported for 32 of these. Solaris trades on the TSX with SLS and on the OTCQB with SLSSF. News Release
Ivanhoe Mines says the construction of Kamoa-Kakula's Phase 2 concentrator plant, which is designed to double copper production to approximately 400,000 tonnes a year, is proceeding ahead of schedule. The project team now anticipates beginning operations of the Phase 2 concentrator plant in Q2 2022, as compared to current guidance of Q3 2022. The Phase 2, 3.8 million-tonne-per-annum (Mtpa) concentrator plant is a carbon copy of the Phase 1 concentrator plant, and is being constructed alongside the Phase 1 plant. All long-lead items of equipment, structural steel, platework and mechanical equipment for the Phase 2 plant already are delivered to site or are en-route. As of the end of September 2021, the Phase 2 plant was more than 50% complete. Also at the end of September, Kamoa-Kakula had surface ore stockpiles totalling approximately 3.66 million tonnes grading 4.73% copper, containing more than 173,000 tonnes of copper (or 381.4 million pounds of copper). The company says these stockpiles are in place to help ensure a smooth and efficient ramp up of the Phase 2 concentrator to steady-state production during 2022. Ivanhoe trades on the TSX with IVN and on the OTCQX with IVPAF. News Release
Elemental Royalties noted news by Capricorn Metals announcing Steady State Operations have been achieved at the Karlawinda Gold Project. Elemental acquired a 2% NSR on Karlawinda in February 2021. During the September 2021 quarter, Capricorn completed commissioning and ramp-up activities, achieving guided throughput rates on a steady-state basis. CEO Fred Bell stated Karlawinda will almost double the company’s royalty revenue and underpins the long-term outlook for Elemental with increased diversification and exposure to a tier 1 jurisdiction in Western Australia. Elemental trades on the TSX Venture with ELE and on the OTCQX with ELEMF. News Release
And we’re starting to see quarterly production numbers come in, and there were quite a few today. Here’s some which stood out:
First Majestic Silver reported a new record production third quarter with 7.3 million silver equivalent ounces consisting of 3.3 million ounces of silver and 54,525 ounces of gold. In the first nine months of 2021, the Company has produced 9.5 million ounces of silver and 124,942 ounces of gold for total production of 18.3 million silver equivalent ounces, or approximately 69% of the Company's 2021 guidance midpoint of producing 25.7 to 27.5 million ounces.
Fiore Gold, who is reporting its fourth fiscal quarter and year end results, says they have met their annual production guidance for the third year, which included a record Q4 with sales of 13,506 gold ounces at an average realized price of $1,790 per ounce.
And Hecla announced Q3 silver production of 2.7 million ounces, decreased due to lower grades at Greens Creek based on mine sequencing, and partially offset by Lucky Friday production.
That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates.
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