Gold Miners are Outperforming the Metal
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Monday, April 4th
On Friday gold was hammered steadily lower overnight from $1938 to as low as $1917 before settling at $1923, while silver was pushed back below $24 to as low as $24.58 before settling at $24.75. But this price-action was expected given that the precious metals are ritualistically pushed down on Fridays when the monthly non-farm payroll report is released. The real story of the day from Friday, per the Mining Stock Journal, was the action in the mining stocks. The shares diverged positively by a considerable amount from the sell-off in gold and silver, as the Amex Gold Bugs index closed up over 3% Friday, while GDX closed up just under 3%. Newmont hit an all-time high on Friday. The Mining Stock Journal said it can not recall a dispersion this wide between the mining stocks and the metals when the metals are getting price-ambushed. It added that large institutional cash flows have been moving into the largest mining stocks like Newmont, Barrick and Agnico-Eagle but now the mid-cap and small-cap producing mining companies are starting to catch up. The action in the stocks suggests that smart money is anticipating much higher price levels for the metals. Assuming the uptrend in gold and silver continues, eventually investor cash will flood into the micro-cap junior exploration stocks. According to the Mining Stock Journal, that's when the real fun begins.
We will get to the news from the miners and explorers in a moment, but first a word about 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….
Solaris Resources reported assay results from a series of additional holes from mineral resource growth drilling at its Warintza Project in southeastern Ecuador. The company says additional drilling has expanded the growing northeast extension area, which remains open with follow-up and step-out drilling underway. Results reported on today included 356 meters of .73% copper equivalent from 50 meters depth within a broader interval of 1,093 meters of .56% copper equivalent. Follow-up drilling from existing platforms is underway, with a 260m northeast step-out platform recently completed and a second platform stepping out further to the northeast under construction. Results from this area included 482m of 0.62% CuEq¹ from 96m depth, within a broader interval of 977m of 0.45% CuEq¹ from near surface that infilled drilling at depth. An updated Warintza Central Mineral Resource Estimate expected to be issued in April. Solaris Resources trades on the TSX with SLS and on the OTCQB with SLSSF. News Release
On Friday, Kenorland Minerals reported results from the 2021 maiden diamond drill program at the Healy Project, located within Alaska's prolific Goodpaster Mining District, and held under joint venture with Newmont Corporation. Wide-spaced drilling was designed to test three target areas defined by extensive gold-in-soil geochemical anomalies. Broadly disseminated and vein-hosted low-level gold mineralisation encountered in all targets areas confirm the presence of a kilometer-scale gold system. The alteration, mineralisation, and geochemical signature suggest a distal environment of an intrusion related system with widespread fluid flow permeating along low angle thrust faults and high angle shear zones. Kenorland says while there are many indications that Healy represents a significant greenfields gold discovery within Alaska's prolific Goodpaster Mining District, it will require additional drill testing to fully evaluate the economic potential. Kenorland Minerals trades on the TSX V with KLD and on the OTCQX with NWRCF. News Release
Marathon Gold shared their latest drill assay results from the Valentine Gold Project in central Newfoundland. Results today included 7.17 g/t gold over 21 meters and included 84.4 g/t over 1 meter. Other results were 5.25 g/t over 17 meters and 19.28 g/t over 3 meters. One more batch of 2021 holes remains outstanding, after which the company will have released a total of approximately 100,000 metres of Berry drilling. These will be the data utilized in the next mineral resource update. Marathon Gold trades on the TSX with MOZ. News Release
Ascot Resources provided an update on construction financing and development plans for its Premier Gold Project in the Golden Triangle of British Columbia. As part of a total construction finance package of US$105M the Company secured a US$80M senior credit facility with Sprott Private Resource Lending II. After drawing down the initial US$20M tranche under the Senior Facility, Ascot was required to satisfy various conditions before drawing down the remaining US$60M. However, the Company has been unable to reach an agreement with Sprott on the satisfaction of the drawdown conditions for the remaining US$60M of the Senior Facility. Therefore, the initial US$20M drawdown will remain outstanding and Ascot will pursue alternative financing options to replace the remainder of the Senior Facility. Until alternative financing can be secured Ascot will continue advancing the project with available liquidity. The Company anticipates that commencement of underground development and advancement of other key construction areas will continue as previously planned. However, certain work packages may be placed on hold until the Company is able to secure alternative funding. While the resulting implications to the project are uncertain at this time, it is possible that there will be a delay to the initial production target of Q1 2023. Ascot Resources trades on the TSX with AOT and on the OTCQX with AOTVF. News Release
In financing news, Timeline Resources announced a $8M US non-brokered private placement while Fireweed Zinc has increased its original non-brokered private placement to $12M Canadian. The proceeds from the Offering will be used for exploration and development of the Company’s Macmillan Pass Project in Yukon.
That concludes today’s morning briefing.
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