Gold & Silver Move Higher in Early Morning Trading

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Monday, October 19th. 

Gold and silver last week managed to shrug off what appears to be an aggressive effort by the price management team to keep the precious metals from moving higher, at least for the time being. On Friday gold staged an impressive rally from as low as $1893 to as high as $1918. It settled in the low $1900 area where it's trading Sunday evening. Silver ripped higher $1 from $23.65 to as high as $24.65 and it settled Friday around $23.25. It's trading slightly higher on Sunday evening. The gold/silver ratio fell back to 78 are after touching 80 earlier last week. While gold and silver ran higher on Friday, the mining stocks per GDX fell over 1%. That said, the Mining Stock Journal noted that the chart of GDx looks even more bullish than the charts for gold and silver, though it would like to see all three charts rise back over their respective 50 day moving averages. The mining stock newsletter also commented that it anticipates that the earnings reports for the gold and silver mining stocks should well exceed the Street expectations. 

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… Minera Alamos.

Minera Alamos is a Mexico focused gold development company which is on the cusp of graduating to the ranks of gold producers in early 2021. Minera Alamos is traded with the symbol MAI on the TSX-V and with MAIFF in the US OTC Markets. Read more about their development strategies at mineraalamos.com.

And here’s what you need to know this morning.

Wallbridge Mining shared new drill results this morning from the Lower Tabasco zone on its Fenelon Gold Property. Results included 9.06 g/t gold over 40.05 meters and included a 7.9 meter subinterval of 38.67 g/t gold. The company says they are now increasingly doing more in-fill drilling at much tighter, 15 to 40-metre drill spacing to confirm continuity and grade to deliver a maiden resource estimate. This tighter spaced drilling has also led to the initial modelling of the Jeremie Fault which is now recognized as an important structural control for gold deposition in the Fenelon Gold System. Wallbridge trades on the TSX with WM. News Release

Kirkland Lake Gold reported new drill results from 135 holes of underground exploration drilling from the Macassa Mine in Kirkland Lake, Ontario. Holes in the program were completed from platforms located on the 5300, 5600 and 5700 levels and designed mainly to confirm and extend resources within the SMC, LSMC and Amalgamated zones. Results included 253.7 g/t gold over 14.5 meters within the south mine complex and 210.4 g/t gold over 8.2 meters at the Amalgamated Zone. Kirkland Lake says these results are encouraging as they support our view that there is substantial exploration potential in areas where the dip of the SMC approaches the contact with mineralized zones stacked vertically along the Amalgamated Break. The results today also continue to expand the mineralization at depth in the LSMC and identify new areas of high-grade mineralization along the Amalgamated Break, further increasing their confidence that there are new Mineral Reserves to be discovered as we drill along the Break through the Kirkland Lake camp. Kirkland Lake trades on the TSX and the NYSE with KL. News Release

Minera Alamos has announced an updated on its development activities for the newly acquired Cerro de Oro gold project in Zacatecas, Mexico. The Company has completed its internal evaluation of historical information for the project and is in the process of finalizing an inaugural resource estimate (NI 43-101 compliant) for the project in the coming weeks.

An updated geological model for the project is being prepared which will act as the basis for a drill program focussed on zones of potential resource expansion and to confirm the suitability of proposed locations for heap leach pads and ponds. Basic engineering for the permitting of a heap leach gold recovery facility is underway with a target to submit permit applications for the project in early 2021. Minera Alamos trades on the TSX Venture with MAI and on the OTC with MAIFF. News Release

Troilus Gold reported more results from regional exploration work on the Troilus Project in Quebec. Earlier this year, Troilus increased its land position by more than 90,000 ha, becoming the largest claim holder within this highly prospective greenstone belt. Samples from outcrop included 203 g/t gold, 2,440 g/t silver and 4.37% copper from the Testard Zone. The Testard area is almost entirely till covered with limited outcrop exposure, however local stripping completed to date has traced similar Testard mineralization in outcrop up to 400 metres from the main showing. In light of these positive results, Troilus will be prioritizing additional work at Testard including further clearing, ground geophysics and prospecting through the conclusion of the fall season. Troilus trades on the TSX with TLG and on the OTCQB with CHXMF. News Release

First Cobalt says they have resumed exploration activities on the Iron Creek cobalt-copper deposit in Idaho. As the cobalt market continues to strengthen, the Company is commencing geophysical surveys to trace extensions of mineralization and follow up on geophysical anomalies detected by previous work. The objective is to refine follow-up drill targets further east along strike of the cobalt-rich zone intersected over a 300m vertical depth as well as the western extension of the copper-rich zone. First Cobalt trades on the TSX Venture with FCC and on the OTCQX with FTSSF. News Release

And Rio2 announced this morning it has initiated a new Chile-wide exploration strategy. This effort is to expand the Company’s footprint in Chile in addition to the current development of its Fenix Gold Project, located in the Maricunga Gold Belt, Atacama Region, Chile. Rio2’s new exploration strategy is to explore for precious metals deposits that have the potential to develop into economic mining operations. This new initiative will leverage on Rio2’s mine development platform in the country.

Rio2 recently acquired 33,356 hectares of prospective exploration ground to consolidate its presence in the Atacama Region. Rio2 also has seven exploration prospects which remain to be systematically explored, covering 11,200 hectares. Rio2 trades on the TSX Venture with RIO and on the OTCQX with RIOFF. News Release

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I’m Trevor Hall. Have a wonderful day. Be well.

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