Gold Rises and Kingfisher Makes New Discovery at Goldrange
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Tuesday November 16th.
Trading in gold and silver was somewhat volatile late Sunday night and through Monday. Silver inexplicably took almost a 50 cent dive late Sunday night, crashing from $25.46 to just below $25 before bouncing back over $25. But it settled down nearly 1% from Friday's close. Gold also yo-yo'd between $1870 and $1859 before settling at $1865. The Mining Stock Journal is somewhat perplexed at the price action in silver. Interestingly, on Monday gold rose in tandem with the US dollar. In fact, according to the Mining Stock Journal, gold and the dollar have both been in an uptrend over the last six weeks. While the Mining Stock Journal expects a pullback in gold, as the December contract goes into its roll period when December longs either sell or roll forward to February which is the next front-month contract, the newsletter noted that gold's best periodic rate of returns since 2001 has occurred after a short period of time when gold and silver move higher tandem.
The mining stocks shrugged-off the relative weakness in gold and silver to close green on Monday. Both the Amex Gold Bugs large producer index and the GDX ETF closed up 0.3%. The newsletter said that the sector has become a bit frothy and it expects two-way volatility for a few weeks as gold, silver and the mining stocks work off overly bullish sentiment and a technically overbought condition.
We’ll get to the news out of the miners and explorers in a moment, but first a quick mention of 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 in Q4 2021 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.
Kingfisher Metals announced results from the first four holes assayed from the first ever drilling at its Goldrange project in southwest British Columbia, Canada. The company said it made a discovery of a high-grade sulfide-cement hydrothermal breccia with a highlight of 9m grading 6.88 grams per tonne gold, 13.6g/t silver and 0.28% copper in hole seven of a 14-hole 5,000m drilling program. Hole 2 returned vein-style mineralization yielding 1m grading 14.8g/t gold within 8m grading 2.16g/t. In addition, drilling has revealed broad zones of near-surface mineralization over significant widths. Drilling targeted part of the western end of the gold-in-soil geochemical anomaly that defines the ~3 by 2km Cloud Drifter Trend in an area of extensive forest cover and limited outcrop. Kingfisher Metals trades on the TSXV under KFR and on the OTCQB under KGFMF. News release
I-80 Gold shared results from its ongoing surface drill program, including step-out drilling at depth, from the Granite Creek property in Nevada. drilling from the surface drill program is targeting the expansion of mineralization at depth below the mine workings at Granite Creek suggest significant expansion potential. This morning’s results included 12.8 g/t gold over 6.1 meters and 16.3 g/t over 7.1 meters. To-date, fourteen holes have been completed, testing at depth. Assays have been received for the first four holes and all having returned impressive gold grades and widths of mineralization. The step-out program is one of multiple target areas being drilled in the current program that will comprise more than 20,000 metres from surface and underground and continue well into the new year. I-80 trades on the TSX with IAU and on the OTCQX with IAUCF. News Release
Liberty Gold announce the discovery of a new mineralized zone at its D-4 discovery at its Black Pine gold oxide project in southeast Idaho, USA. This area, located to the southeast of Rangefront fault, is being re-named the Rangefront Focus Area as the company said its scale is potentially similar to the Discovery zone, where three-quarters of the Black Pine resource is located. Drilling highlights included112.8m grading 0.63 grams per tonne gold including 73.2m grading 0.74g/t in hole 408. Drilling has expanded this broad mineralized zone 1,000m in a north-south direction, with potential to expand at least 800m in an east-west direction. Assays from 25 additional holes are pending and two drills are now focused exclusively on the Rangefront area to sequentially drill off the discovery for incorporation into an updated resource estimate. Liberty is also expanding the scope of the preliminary economic assessment in progress on Black Pine which is targeted for the September quarter in 2022. Liberty Gold trades on the TSX under LGD and on the OTCQX under LGDTF. News release
Colombia explorer Baroyeca Gold & Silver reported assays from the first two drill holes of phase one drilling at its Atocha high-grade silver project in Tolima, Colombia, the first ever holes drilled on the project. Drilling returned highlights of 80cm grading 2,234 grams per tonne silver equivalent in the main San Antonio vein at 85.70m depth and 1.1m grading 890g/t silver equivalent. Baroyeca said the third hole is underway as part of an initial 2,500m drilling program at the La Ye vein system, targeting three silver-gold bearing vein zones at depth which have been mapped at surface. Shares in Baroyeca Gold & Silver increased 20% before the stock was halted pending the news. Shares in Baroyeca Gold & Silver trade on the TSXV under BGS. News release
Elemental Royalties announced its operating and financial results for the three and nine months ended September 30. Following the maiden production from operating partner, Karlawinda Gold Mine, Elemental generated record quarterly revenue for the young company with $1.9M in Q3. The company has revised its 2021 guidance to 3,400 - 3,800 gold equivalent ounces for the year as a result of revised production guidance at Amancaya in the quarter. Elemental is now repaid for the 2018 acquisition of the 2.25% NSR royalty on Austral Gold's Amancaya gold mine in Chile, making it the second royalty after Kwale to be fully repaid. Elemental trades on the TSX Venture with ELE and on the OTCQX with ELEMF. News Release
Artemis Gold says they have received a Silver Stream offer to enter into a definitive Precious Metals Purchase Agreement with Wheaton Precious Metal, in respect to the company’s Blackwater Gold Project in British Columbia. Under the terms of the Silver Stream Agreement, Wheaton will purchase 50% of the silver production from the mineral reserves of Blackwater until approximately 18 million ounces of silver have been delivered, after which the stream reduces to 33% of the silver production for the life of mine. Wheaton will make an up-front deposit payment in cash of approximately US$141 million, payable in tranches during the major works construction of the Project. The letter of Offer, as well as a copy of the Silver Stream Agreement has been submitted to New Gold as required under the terms of an agreement related to the purchase of Blackwater dated August 21, 2020, which serves to formally trigger a Right of First Refusal mechanism under that agreement. Under this mechanism, New Gold has 30 days from the date of delivery of the ROFR Offer to accept the ROFR Offer and offer identical terms as the Silver Stream Agreement from Wheaton. In the event the ROFR Offer is not exercised by New Gold, Artemis and Wheaton will be free to execute the Silver Stream Agreement within 120 days. Artemis trades on the TSX Venture with ARTG. News Release
And speaking of Wheaton, Rio2 said this morning they have entered into a definitive precious metals purchase agreement with them in relation to the Fenix Gold Project in Chile. Under the Gold Stream, Wheaton International will purchase 6.0% of the gold production from the Fenix Gold Project until 90,000 ounces of gold have been delivered and 4.0% of the gold production until 140,000 ounces of gold have been delivered, after which the stream will reduce to 3.5% of the gold production for the life of mine. The Gold Stream is one of the components of the mine construction financing totaling approximately US$125 to US$135 million to finance the construction of a mine at the Company’s 100%-owned Fenix Gold Project in Chile. Rio2 trades on the TSX Venture with RIO and on the OTCQX with RIOFF. News Release
That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates.
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