High-Grade Drill Results from Great Bear and Wesdome; Powell Ready to use QE if Needed
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, February 13th.
Gold was taken lower once again on Wednesday, bottoming at $1565 right after the a.m. London price fix. And make no mistake, acting as a price-fixer is one of the LBMA's primary functions now. But gold caught fire when Fed head Jay Powell asserted in the second day of the semi-annual testimony on monetary policy and the economy to Congress that QE will be used in the next economic downturn. As an aside, the Mining Stock Journal sneers at Powell's statement, noting that the Fed has expanded its balance by over $400 billion since mid-September and that, definitionally, is QE money printing. In early Wednesday evening trading, gold has jumped $5 presumably in response to an upward revision in the number of coronavirus cases. The Mining Stock Journal said that gold was going move higher regardless of the coronavirus news, as the market becomes increasingly aware that the money printing and the corresponding dollar devaluation is going to continue for the foreseeable future.
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 10 billion pounds of copper and 18 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 out of the junior sector.
Great Bear Resources reported its latest developments from its Dixie Project in the Red Lake district of Ontario. The Company has completed a successful "first pass" 4.2 kilometre drill test of the LP Fault and says all 59 drill holes on 50 to 250 meter spacings have intersected gold mineralization. The continuously mineralized zone is now interpreted as the LP Fault Zone which remains open both along strike and at depth. The previously used names for the zone will no longer be applicable. There is a full list of results found on this morning’s news release, but highlights did include 10.58 g/t gold over 21 meters, including 48.98 g/t gold over 3.25 meters. Great Bear trades on the TSX Venture with GBR and on the OTC with GTBDF. News Release
Wesdome shared more drill results last night after market close. These results were part of the company’s underground and surface exploration drilling program at the company’s Eagle River Mine in Ontario. At the Falcon Zone, drill results included 2,690 g/t gold over a half meter and 160.5 g/t gold over 3.9 meters. Highlights from the extension and definition drilling at the 300 East Zone of the 303 Lens included 49.1 g/t gold over 6.4 meters and 128.8 g/t gold over 5 meters. The recent drilling results from the Falcon and 300 East Zones will be included in the 2019 year end mineral resources and reserves to be released on March 10, 2020. Wesdome trades on the TSX with WDO and on the OTC with WDOFF. News Release
Galway Metals reported new drill results from its George MurphyZone at the Clarence Stream Gold Project in New Brunswick. Intersections included 6.3 g/t gold over 30 meters and 3.5 g/t gold over 23.3 meters. The company said exploration drilling intersected visible gold where assays are pending in 3 separate locations in one drill hole. Galway believes that these drill results continue to demonstrate its interpretation that the Jubilee, Richard and George Murphy Zones which cover 2.5 km of strike length, are part of the same system. Galway trades on the TSX Venture with GWM and on the OTC markets with GAYMF. News Release
Amex Exploration also shared more drill results this morning. These from the Eastern Gold Zone on the Perron Property in northwestern Quebec. The company says its deepest hole reported to date returned high-grade and included 29.44 g/t gold over 8.5 meters at vertical depth. Other results included 62.67 g/t gold over 1 meter. CEO Jacques Trottier said in this morning’s news release that in his opinion, “this opens up a whole new area of exploration in the Eastern Gold Zone and is reminiscent of similar Abitibi gold mines that have significant depth potential.” Amex trades on the TSX Venture with AMX and on the OTC with AMXEF. News Release
Balmoral Resources announced its 2020 winter drill program targeting several known gold-bearing zones on its wholly-owned Fenelon Property in Quebec is underway. Drilling is anticipated to continue through to spring break-up in April with a minimum of 5,000 metres planned during the current phase of the program. Balmoral’s current 2020 exploration plan calls for a minimum of 20,000 metres of drilling, focused almost exclusively on gold targets on the Detour Gold Trend Project, which will be completed in two phases. The company trades on the TSX with BAR and on the OTCQX with BALMF. News Release
OceanaGold updated its mineral resource estimate for the Martha Underground Project at the Waihi Gold Mine in New Zealand. Infill and extensional drilling has resulted in an additional 440,000 ounces of gold accompanied by an increase in average grade of both Indicated and Inferred resource categories. For 2020, the Company expects to drill 25,000 metres in the Martha Underground with a primary focus on resource definition. In addition to the significant resource at Martha Underground, the Company has a revised exploration target of 6 to 8 million tonnes of ore grading 4 to 6 g/t. Oceana trades on the TSX and the ASX with the symbol OGC. News Release
That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in. Please be sure to listen in either tomorrow or over the weekend to my interview which will drop early tomorrow morning. I had the opportunity to speak with a Chinese national based in Hong Kong who is deeply involved in junior mining investments. So we obviously talk a lot about the coronavirus, the Phase I trade deal, and what the Chinese mining companies are looking for when it comes to acquisitions. It was an eye-opening discussion. That will be available tomorrow.
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