Gold's Own V-Shaped Recovery
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, May 28th.
The gold price staged a "V" recovery on Wednesday, rising $27 from mid-morning after being pushed down to as low as $1684 in early paper gold market trading. Silver followed suit, recovering a stunning 63 cents after being manipulated down to $17.22. The gold/silver ratio rose slightly to 97.25 after trading as low as 95.83. Similarly, the mining shares staged a spectacular recovery with the various mining stock indices and ETFs closing well above their early lows of the day. The Mining Stock Journal commented that the Comex open interest report confirmed that Tuesday's pillaging of the precious metals sector was a Comex bank manipulation operation, as open interest in the June contract plunged by over 72,000 contracts, with 60,000 rolling forward to August. The large amount of contracts that rolled indicates that hedge funds expect the gold price to rise over the summer.
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 robust list of project and company information on their website, rio2.com.
And here’s what you need to know this morning …
Wesdome Gold Mines shared their preliminary economic assessment for the Kiena Complex in Val D’Or Quebec yesterday. The PEA highlights a project with an after-tax IRR of 102% and an NPV of $416 million with preproduction capital costs of $35 million. According to the report, Kiena hosts an average diluted grade of 10.65 g/t with a contained gold resource of 709,000 ounces with an all-in sustaining cost of $512 US per ounce. A $1,532 gold price was used to calculate these numbers. An updated resource estimate is planned early in Q4 2020 followed by a pre-feasibility study ('PFS') and a production restart decision in H1 2021. The COVID-19 pandemic has impacted our abilities to drill and develop at our full capacity, therefore this timeline includes contingencies until further information is available regarding the pandemic and necessary protocols going forward. Wesdome trades on the TSX with WDO and on the OTC markets with WDOFF. News Release
Endeavour Silver announced this morning it has restarted mining operations at its three underground silver-gold mines in Mexico. The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations. Management developed its mine restart plan utilizing the rigorous virus monitoring, prevention and response measures already in place at our three mines that comply with government mandated practices to ensure a safe working environment for all employees. The mines and plants are currently ramping up activities to achieve normal operations and exploration crews will restart mapping, sampling and drilling programs in June. Endeavour trades on the NYSE with EXK and on the TSX with EDR. News Release
Osino Resources shared assay results from the initial four holes of the 2020 drilling campaign at Twin Hills. The company says significant intersections were returned in three of the four holes including 150m @ 0.98g/t, incl. 61m @ 1.51g/t from Hole 31. The results from these holes increase the strike length of mineralization at Twin Hills Central to approximately 1300m, open to the east and west. Hole OKD031 also confirms the down-dip continuity of higher-grade mineralization from surface to 160m, open to depth. Some deeper follow-up drilling with hole lengths up to 400m are planned to further test the down-dip extension of the mineralization. A total of at least 20,000m of mainly diamond drilling is planned for 2020. The objective of the program is to expand the mineralization and define a maiden resource at Twin Hills Central, as well as drilling of additional targets along strike. Osino is targeting a NI 43-101 compliant maiden resource report on Twin Hills Central in the first half of 2021. Osino trades on the TSX Venture with OSI and on the OTC markets with OSIIF. News Release
Cartier Resources also shared new drill results this morning from its Chimo Mine Property in Val-d’Or, Quebec. Assays returned 32 g/t gold over 2 meters which was included in a wider interval 7.1 g/t gold over 12.1 meters located 500 meters below the new Zones in the East Sector of the Chimo Mine Property. These new results indicate that the gold mineralisation is open in all directions below these new zones which have been drilled to date from surface to a depth of 1,300 meters. Cartier trades on the TSX Venture with ECR and on the OTC markets with ECRFF. News Release
Now lets turn it over to Kai Hoffman of Oreninc for this week’s Oreninc Weekly Update.
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And speaking of financings, O3 Mining announced a $30 million bought deal private placement of flow-through and hard shares of the company. NexGen has closed its $30 million financing. And Contact Gold also closed its financing earlier this week. The capital available for projects continue to be rolling in.
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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