Gold and Silver Respond to Rumors of Fed Inflation Target

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

Today is Thursday August 27th.

On Wednesday gold shot up over $30 and silver soared well over 4.5% in response to the release of a preview of Jay Powells J-Hole speech. The metals were responding to the idea that Powell will target an inflation rate above the current 2% target rate. The Mining Stock Journal pointed out that it is beyond comprehension how anyone in their right mind truly believes inflation is running below 2%. The mining stock newsletter went on to say that in all likelihood Powell is setting up another big round of money printing. It noted that using the term inflation in reference to easy monetary policy is a tautology. As a result of today's action in the precious metals, the gold/silver ratio plunged nearly 3% to just above 71. The mining stocks per GDX jumped 2.5%. The Mining Stock Journal said that it has begun to redeploy the cash it raised over the last four weeks. While that's not an endorsement of the a bottom for correction that began at the beginning of August, the sell-off has created a desirable entry-point for many junior mining stocks as well as for the shares of large cap producers. 

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 11 billion pounds of copper and 21 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…

K92 Mining shared results from its ongoing diamond drilling of the Kora deposit at the Kainantu gold mine in Papua New Guinea. Results reported today included 48.11 g/t gold, 13 g/t silver and 1% copper over 6.21 meters and 133.4 g/t gold over 4.32 meters. The company says the results continue to demonstrate the high-grade and continuity of Kora with intersections largely focused on increasing drill density towards the South. K92 Mining trades on the TSX Venture with KNT and on the OTCQX with KNTNF. News Release

Benchmark Metals announced the discovery of new mineralized structures, broad zones of alteration, veining, and sulphide mineralization at the Marmot Zone. The company says the The mineralized structures show a strong resemblance to the Companies largest mineralized area, the Cliff Creek Zone that lies 3 kilometres to the northwest. The Marmot area has yielded high-grade rock grab samples up to 61.3 g/t gold and 3,890 g/t silver. The Marmot area represents a highly prospective region measuring 2 km by 3 km. Benchmark's flagship gold-silver project is located in a road accessible area of the Golden Horseshoe in north-central British Columbia, Canada. Benchmark says drilling will commence shortly. Benchmark trades on the TSX Venture with BNCH and on the OTCQB with CYRTF. News Release

SilverCrest Metals has acquired the El Picacho Property located near its Las Chispas Project in Sonora, Mexico. The purchase price for a 100% ownership in 11 mining concessions of the Property totalling approximately 7,060 hectares was US$1.6 million. Picacho is located approximately 40 kilometres northeast of the Company's Las Chispas Project and depending on drilling success, may be considered as either a standalone mine or a satellite project for additional mill feed to Las Chispas which is currently under development. The Property was a historic gold and silver producer, with the first noted production in late 1800s with grades greater than 15 gpt gold, however, No verifiable records of production numbers are available. SilverCrest trades on the TSX with SIL and on the NYSE American with SILV. News Release

Brixton Metals says it has entered into separate agreements to acquire a 100% interest in the Trapper mineral claim group and its associated royalties, further expanding the Thorn Project in British Columbia. The Trapper claims are adjacent to the Thorn Project and part of a larger district-scale copper-gold trend. The deal consists of over 2 million common shares and CAD $100,000 in cash. In connection with the transaction, the Company has also entered into agreements to terminate net smelter royalties and other economic interests held by third parties. The Company will pay $20,000 to Constantine Metals Resources Ltd. to terminate its right of first refusal on a 0.5% NSR. The Company has also agreed to terminate the NSR on the Trapper Project held by C.J. Greig Holdings Inc., for $45,000 and 114,000 common shares of Brixton. The Trapper Project, following these transactions, will be unencumbered with respect to any royalty burden. Earlier this week, Brixton also announced the acquisition of the Metla mineral claim group from Stuhini Exploration, which also expanded the land holdings at Thorn. Brixton trades on the TSX Venture with BBB andon the OTCQB with BBBXF. News Release

EMX Royalty announced the execution of an amendment to its option agreement with Sienna Resources. The new deal now includes EMX’s Bleka and Vekselmyr projects in southern Norway to the option agreement whereby Sienna will enter a two year option period to acquire 100% interest in the Projects by satisfying work commitments and making payments of cash and equity to EMX, with EMX retaining 3% net smelter returns ("NSR") royalty interests upon Sienna's earn-in. The Bleka and Vekselmyr Projects are greenstone-hosted gold systems. Sienna and EMX have been working together to advance the Slättberg and Kuusamo battery metal projects in Sweden and Finland (refer to Figure 1), a relationship that will now extend to gold exploration in Norway. EMX Royalty trades on the TSX Venture and NYSE American with EMX. 

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

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