Gold Appears to Have a Big Buyer

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday, February 7th. 

Last week gold rallied from US$1,780 to as high at $1,816 although the week was punctuated with two huge down-spikes during Comex trading hours on Thursday and Friday morning. Both days saw the paper gold price plunge abruptly below $1,800 then  snap back above just as quickly. The Mining Stock Journal said that the effort by nefarious anti-gold forces to hold the yellow metal below $1,800 has failed several times in the last few weeks. 

More interestingly, it said that it feels as though there's a gold buyer accumulating on any price ambush that takes the paper price below $1,800. A report about a week ago said 21 tonnes of gold were removed from the Federal Reserve's custodial vault in New York. The entity was not identified but was likely a foreign Central Bank repatriating gold. 

Silver traded in a similar pattern to gold last week. Immense demand for physical silver bullion is reflected in the rising premiums of silver bullion coins at big coin dealers. The Mining Stock Journal said silver coin premiums are at their highest spread to spot since the physical silver shortage in 2020. 

The Mining Stock Journal noted that gold has been in a well-defined uptrend since the end of September. Silver appears to have lifted into an uptrend in mid-December. The newsletter added that all market signals point to the potential for a big move in the metals soon. All that remains is for the mining stocks to follow suit and we'll have a good old fashioned gold rush to enjoy.

We’ll get to the news out of the miners and explorers here in just a moment, but first a quick word from today’s sponsor. 

This episode of Mining Stock Daily is brought to you by… Integra Resources.

Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration and plans on delivering a pre-feasibility study to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.

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

In last week’s long-form episode here on the podcast, we heard from Elemental Royalties CEO Frederick Bell regarding the hostile takeover bid for the company by Gold Royalty. Today, Elemental reported holders of a firm majority of the Company's shares have reiterated to management that they intend to reject the all-share hostile takeover bid. As Elemental has previously noted, if the Hostile Bid were to succeed, Elemental shareholders would only own approximately 12% of the combined company while Elemental would contribute 62% of the revenue, based on Gold Royalty's "pro forma" financial information. The company trades on the TSX Venture with ELE and on the OTCQX with ELEMF. News Release

Rugby Mining said it plans to initiate a comprehensive exploration program at its undrilled Cobrasco porphyry copper-molybdenum system in western Colombia in April leading to drilling in June following the publication of a resolution on January 28, which allows exploration in forest reserve areas to proceed without undertaking a land change extraction process. The resolution means exploration can proceed as long as it does not require forestry use, removal of forest cover or forest fragmentation. Cobrasco is in the porphyry belt about midway between First Quantum Minerals’ Cobre Panama to the north and SolGold’s Alpala to the south. Rugby Mining trades on the TSXV under RUG. News release

Thesis Gold announced initial 2021 drilling results from the Thesis III zone at its Ranch gold project in north-central British Columbia in Canada. It said it made a discovery at the West Zone where hole 12 returned 28m grading 6.07 grams per tonne which appears to parallel known mineralization at the Thesis III occurrence. The company said the discovery demonstrates the significant potential that exists within the Thesis structural corridor and across the largely underexplored Ranch project. The Thesis structural corridor has a strike length exceeding 1,500m which is largely underexplored. Planning is underway for the 2022 drill program where it will continue to test this very promising new zone. Thesis Gold trades on the TSXV under TAU. News release

TDG Gold reported new intercepts from the Cayley-Rainier Target Zone located 700 meters outh of the historical JM Pit at TDG’s former producing Shasta project in British Columbia. Hole 22 returned 50.17 g/t gold and 4871 g/t silver over 1.5 meters. This was included in a broader interval of 16.2 meters grading 7.22 g/t gold and 817 g/t silver starting at a downhole depth of 100.3 meters. This initial drill test has identified a near-surface, sub-vertical west dipping potential extension of the JM Zone 500 m south of the furthest extent of the previous small-scale underground workings. TDG Gold trades on the TSX Venture with TDG. News Release

Palladium One provided their final assay results from Kaukua South. Those returned 4.4 g/t palladium equivalent over 7.5m within 2.6 g/t over 49.3m starting at 55m down hole. All assay for the greater Kaukua area, with the exception of three holes in the satellite Murtolampi Zone, have now been received. Resource modelling can now begin for the updated Kaukua mineral resource estimate, expected this quarter. Palladium One trades on the TSX Venture with PDM and on the OTCQB with NORF. News Release

Trilogy Metals said that the Alaska Industrial Development and Export Authority, or AIDEA, approved the proposed plan and budget for the 2022 summer field season activities and services of up to US$30.8 million for the Ambler Access Project for its Arctic copper mine development in Alaska, USA. The cost will be shared 50/50 by AIDEA and Ambler Metals, the joint venture company owned by Trilogy and South32. During the 2022 field season, AIDEA will carry-out geotechnical investigations, right-of-way surveys, environmental studies, road and bridge engineering design work and cultural resources work. A year ago, the US Bureau of Land Management, the National Park Service and AIDEA signed right-of-way agreements giving AIDEA the ability to cross federally owned and managed lands along the route. The authorizing documents with the two agencies are the final federal permits it requires. Trilogy Metals trades on the TSX and NYSE American under TMQ. News release

That concludes today’s morning briefing.

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