Gold and Silver Rebound
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, December 2nd.
On Tuesday, gold and silver started taking off higher shortly after midnite EST. Gold shot up as much as $41 from Monday's settlement price by late morning Tuesday before settling at $1818, up $37 or 2.1% from Monday. Gold also closed back above its 200 day moving average. Silver jumped $1.50, or 6.63% from Monday and closed right on top of its 50 day moving average and well above its 200 day moving average. The gold/silver ratio did a Wile E Coyote cliff-drop, declining 4.2% to 75.50, its lowest reading since September 20th. The Amex Gold Bugs index or HUI, soared 4.48% while GDX was up 3.39% and gapped up over its 200 day moving average. The Mining Stock Journal said that the relative outperformance by the HUI vs GDX and GDXJ reflects managed money flowing into the largest cap mining stocks, which is a desirable attribute if this rebound from the November sell-off is of substance and is sustainable. That said, select junior exploration stocks were up anywhere from 10 to 20% on Tuesday. Some of that price momentum likely reflected short covering. The Mining Stock Journal noted that the catalyst for Tuesday's reflexive snap-back in the precious metals sector was triggered first by short-covering from shorts that piled into the short-side when gold and silver were manipulated lower ahead of the Comex December options-expiry and first notice days as well as from the realization that the Fed will be cranking up the printing press to the tune of several trillion sometime within the next 4-8 weeks, likely after the Biden inauguration but possibly 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… 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.
Liberty Gold announced additional RC drill results from the 2020 drill program at its Carlin-style Black Pine oxide gold property in southern Idaho. Liberty Gold continues to define and expand the D-1 and D-3 zones on 35 to 50 metre centres and test regional targets in a systematic manner. Results included 1.41 g/t gold over 22.9 meters and 1.51 g/t gold over 56.4 meters. The D-3 Zone continues to deliver thick zones of high-grade oxide gold with additional drilling. Most of the holes drilled to date contain multiple intervals of above cut-off (>0.2 g/t Au) oxide gold mineralization from surface to over 300 m depth. Liberty Gold trades on the TSX with LGD. News Release
Eldorado Gold released their updated reserve and resource statement company wide this morning. The Company’s Proven and Probable gold Reserves totalled 17.7 million ounces as of September 30, 20201, compared to 17.5 million ounces as of December 31, 2019, an increase of 1.3%. The slight increase in overall Proven and Probable Reserves was attributable to increases at Kisladag, Lamaque and Perama Hill, offset by decreases at Olympias and Efemcukuru. Eldorado trades on the TSX with ELD and on the NYSE with EGO. News Release
QMX Gold also reported an interim update on its resource estimate on its Bonnefond South property, located in VAl d’Or, Quebec. Indicated Resources increased by 53% while inferred resources doubled. The company says a first underground resource of 140,600 oz @ 4.52 g/t Au, demonstrates the underground potential of the project – opening up a target zone between 350 m and 1,000m depth. QMX trades on the TSX Venture with QMX. News Release
Yesterday, Brixton Metals announced they made a new gold zone discovery at the Outlaw Target at its wholly owned Thorn Project located in the Golden Triangle of British Columbia. Drilling expanded the Central Outlaw Zone by 164m strike for a new total of 600m of continuous near surface mineralized gold-silver horizon. Results from the drill included 9.2 g/t gold equivalent over 1 meter. Other highlights include 3.1 g/t gold equivalent over 5 meters and .8 g/t gold equivalent over 27 meters. The 2020 season was the first-time that drilling has been done in the West Outlaw Zone. Brixton Metals trades on the TSX Venture with BBB. News Release
And ValOre Metals announced assay results for the final eight Trapia 1 drill holes at ValOre’s 100%-owned Pedra Branca Platinum Group Element Project in northeastern Brazil. The PGE-bearing ultramafic Trapia 1 intrusion was intercepted in all eight core holes drilled to the south of the current NI 43-101 resource area and PGE mineralization remains open along strike and down-dip. Results included 1.25 g/t Palladium, platinum, and gold over 76.74 meters, which also included 15 meters of 4.19 g/t PGE and gold, plus .63% nickel and .25% copper. These were the highest grade nickel, copper and gold values to date in the 2020 drill program. ValOre trades on the TSX Venture with VO and on the OTC with KVLQF. News Release
Defiance Silver says its has entered into a definitive option agreement with Pan Amreican Silver to acquire a 100% interest in Pan American's Lucita property, located adjacent to Defiance's San Acacio project. If the option requirements are satisfied and the option is exercised by the Company, this acquisition would nearly triple the land position of Defiance in the historic Zacatecas silver district to over 4,300 Ha and contains some of the most prospective targets in the camp. The option terms include an initial payment of US$100,000 upon signing; US$100,000 on or before the first year anniversary; US$500,000 on or before the second year anniversary; and a final payment of US$800,000 on or before the third year anniversary. Pan American will retain a 2% net smelter return royalty on the project. Defiance trades on the TSX Venture with DEF and on the OTC with DNCVF. News Release
That’s your morning briefing. Please be sure to head over to the newsroom at the Junior Mining Network for a complete rundown of the press releases from throughout the sector today.
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I’m Trevor Hall. Have a wonderful day. Be well.