Horizonte Funds Araguaia; Precious Metals Continue Downward Moves
Welcome to Mining Stock Daily. Sitting in for Trevor Hall today, I’m Paul Harris.
Today is Thursday September 30th.
In what has become a repetitious, if not annoying pattern, gold rallied overnight to $1746 before doing a cliff-dive in the complete absence of any news or event triggers. Gold bottomed at $1721 and settled at $1726. Silver was obliterated for over a $1 from top to bottom, as it was smashed from $22.58 shortly after London opened to as low as $21.41 before settling at $21.51. The Mining Stock Journal said that the Hulbert Gold Newsletter Sentiment Index fell to minus 40.32%. This is lower than 99.1% of all readings since 2000 and represents the extreme bearish sentiment in the precious metals sector. The index has been a very reliable contrarian indicator for many years and through many bull/bear cycles. The Mining Stock Journal also noted that India was active as a gold importer on Wednesday. Also gold China's Shanghai Gold Exchange was trading north of a $7 premium to spot gold while delivery volume on the exchange surged to its highest level in quite some time. This indicates heavy demand for physical gold in China right now. The newsletter also said that demand for physical gold from Asia is likely why gold is outperforming silver right now as that demand for physically delivered gold makes it harder to push the gold price down in the paper market. The Mining Stock journal in today's issue to be released after the market closes will explain why it sees a big reversal coming in the precious metals sector and will provide updates on two of its strongest buy recommendations.
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… 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 11 billion pounds of copper and 21 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.
Horizonte Minerals has received credit approvals from a syndicate of five international financial institutions in addition to two export credit agencies for a senior secured project finance facility of up to US$346.2 million to fund the construction and development of its Araguaia ferro-nickel project in Brazil. The company now has to raise up to US$200M via equity or from its cornerstone investors towards the $470 million estimated capital cost. Stage one features a rotary kiln electric furnace process plant with capacity to produce 14,500 tonnes per annum of ferro-nickel for supply to the stainless steel and lithium-ion battery sectors. A later second stage which may be financed from cash flow will double capacity. Horizonte Minerals trades on London’s AIM under HZM and on the TSX under HZM. News release
Gungnir Resources reported more nickel results from its Lappvattnet nickel deposit in Sweden. Highlights included 15m grading 1.21% nickel and 5m grading 1.84% nickel in hole 4. Drilling is part of a 15-hole program to test the shallow western part of the Lappvattnet deposit. Gungnir has an inferred resource of 780,000 tonnes grading 1.35% nickel for 23.1 million lbs of nickel at Lappvattnet. Gungnir Resources trades on the TSXV under GUG and on the OTC PINK under ASWRF. News release
New Found Gold announced assay results from eight step-out drill holes designed to expand the high-grade gold mineralization at the Golden Joint Zone at its Queensway project near Gander in Newfoundland, Canada. The Golden Joint Zone is a recent discovery between the Keats Zone where the bulk of its drilling has occurred and the Lotto Zone. Highlights included 2.1m grading 64.94 grams per tonne gold and 2.45m grading 17.43 grams per tonne in hole 225. "At such an early stage of target advancement it is extremely encouraging to see such robust grades, continuity and strong vein development in two distinct zones at the Golden Joint,” said VP exploration Melissa Render. New Found Gold trades on the TSXV under NFG and the NYSE American under NFGC. News release
C3 Metals announced assays from a further seven holes from drilling at the Jasperoide copper-gold project in Southern Peru. All seven holes were drilled at the Montana de Cobre zone and drilling continues to intersect copper-gold mineralization across the shallow dipping skarn domain. Highlights included 229.45m grading 0.99% copper and 0.43 grams per tonne gold from surface in hole 5. Assays are pending for a further 10 holes and drilling is ongoing at the Cresta Verde zone. President & CEO Kevin Tomlinson said, "As we continue to define the high-grade oxide skarn at Montaña de Cobre we are very excited to be drilling the first coincident magnetic/IP geophysical target some 2km to the north at Cresta Verde.
C3 Metals also entered into an agreement with Tocvan Ventures to sell its interest in the Rogers Creek Property in British Columbia, Canada for 500,000 shares. C3 will also receive $75,000 in shares of Cascade Copper and will retain a 2% NSR on Rogers Creek. Tocvan previously held an option to acquire up to an 80% interest in the property. Tocvan plans to spin-out Rogers Creek to Cascade Copper. “By creating a new company, Tocvan shareholders can participate in the upside possibility through share ownership of Cascade Copper, while Tocvan is able to focus on its two Mexican properties and minimize share dilution,” said Tocvan CEO David Wood.
C3 Metals trades on the TSXV under CCCM while Tocvan Ventures trades on the CSE under TOC and the OTC under TCVNF. News release1 News release2
Hemlo Explorers provided an update on its drill program at the North Limb project, located 15 km north of Barrick Gold Corporation’s Hemlo Mine near Marathon, Ontario. Drill holes 10 and 11 were drilled on two sections spaced over 175 m at the Lunny West Showing. These two holes were designed to test the North and South contacts of the Armand Lake Volcanic Complex where historical drilling intersected strong sericite and silica altered pyritic felsic volcanic units. The drill results were highlighted with 3.97 g/t gold over 1 meter. The Company has recently completed ~25 line-kms surface mapping and sampling, the results of which are being compiled and interpreted. Hemlo trades on the TSX Venture with HMLO. News Release
Star Royalties announced the completion of its previously announced acquisition of an existing 2% net smelter return royalty from the Elk Gold Mine in British Columbia, currently being operated by Gold Mountain Mining. The deal was done for total consideration of $10.6M, consisting of $10M cash out of the company’s cash reserves and 1.6 million common shares of the company. The Royalty covers all 16,716 hectares of mining leases and mineral claims as outlined in Gold Mountain’s PEA. Star Royalties trades on the TSX Venture with STRR and on the OTC with STRFF. 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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