i-80 Gold Sets Big Goals in Nevada; Filo Returns High-Grade Silver Drill Results

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Wednesday, January 12th. 

Gold rallied overnight up to US$1,810 per ounce before it was given the obligatory post London am fix beat down followed by the customary price smack at the Comex open. But the shenanigans could only get gold down to $1,802. The yellow dog took off when Fed Head Powell walked backed the hawkish Fed stance during his testimony at his nomination confirmation hearing. Gold ran up to $1,821, up $20/oz from Tuesday while silver ran to $22.80 per ounce, up 31 cents from the day before. 

The mining stocks took their cue from the metals, as the Amex Gold Bugs index and the GDX both jumped a little over 2%. The mining stocks outperformed all of the broad stock market indices. The Mining Stock Journal said that sentiment toward the sector per the Hulbert Gold Newsletter Sentiment Index has fallen to a level from which big rallies often begin. In addition, while data from India showed the Indians were buyers on Tuesday, China continued with its aggressive appetite for the physical gold, as Chinese gold consumption jumped 45% in 2021 from 2020. 

The Mining Stock Journal said that data from the Shanghai Gold Exchange so far in 2022 suggests that Chinese demand is even stronger than during 2021. With a few more days like Tuesday, the Mining Stock Journal said it is likely that a big move in the sector is finally underway.

We’ll get to the news out of the miners and explorers in a moment but first a mention of today’s sponsor…

This episode of Mining Stock Daily is brought to you by… Arizona Sonoran Copper Company

Arizona Sonoran Copper Company is a lower-risk copper developer with a significant exploration potential on private land just south of Pheonix, in an infrastructure rich area of Arizona. The Cactus Project PEA illustrates an 18 year mine life, generating US$1 Billion post-tax free cash flow. It is a scalable, low capital intensity project with strong leverage to the copper price. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Read more about the company at arizonasonoran.com.

And here’s what you need to know this morning….

i-80 Gold announced its development plans for 2022 as it aims to build a comprehensive Nevada mining complex. The company aims to develop a hub and spoke operation around the Lone Tree autoclave and intends to construct four new mining operations over the next three years with a goal of ultimately producing more than 500,000 ounces of gold annually.  In 2021, i-80 acquired the Granite Creek, Lone Tree and Ruby Hill properties to become one of the largest holders of gold and silver resources in Nevada. The company obtained the ability to process all types of gold mineralization, including refractory gold, through the acquisition of the Lone Tree processing complex which is expected to process mineralization from Granite Creek, Ruby Hill and McCoy-Cove, once restarted. i-80 Gold trades on the TSX under IAU and on the OTCQX under IAUCF. News release

Filo Mining provided initial assay results and an update on the Filo del Sol drilling program this morning. The highlighted hole returned 64 meters of 1,213.8 g/t silver and .49 g/t gold from a depth of 362 meters. This is the best intersection of the high-grade silver zone at Filo del Sol drilled to date and sits completely outside the current mineral resource. Drilling will continue year-round at Filo del Sol in 2022 with what the company claimed as their most ambitious field program ever. The company plans to add an additional two drill rigs in early February, bringing the total rig count to seven drills operating throughout the year. Filo Mining trades on the TSX with FIL. News Release

Cordoba Minerals published a pre-feasibility study for the Alacran copper-gold-silver deposit within its San Matias project in Cordoba, Colombia for a 22,000 tonnes per day open pit mining operation, with average annual production of 31,200 tonnes copper, 55,000 ounces gold and 386,000oz silver over a 13-year mine life following an initial capital expenditure of US$434.9 million. The project would yield an after-tax net present value of $415.1 million at an 8% discount rate and an internal rate of return of 25.4%, and a 2.9-year payback at a $3.60/lb copper price assumption. At spot prices, these increase to $650.7 million and 32.7%. Cordoba Minerals trades on the TSXV under CDB and on the OTCQB under CDBMF. News release

Galleon Gold has released a maiden preliminary economic assessment (PEA) and updated resource estimate for its West Cache gold project in Timmins in Ontario, Canada. The PEA outlines an underground mine with 2,400 tonnes per day toll processing operation to produce an average of 85,500 ounces at an all-in sustaining cost of US$987 per ounce over an 11-year mine life following initial capex of $150 million. The project would yield an after-tax net present value of C$240 million at a 5% discount rate and 26.7% internal rate of return with a 3.3-year payback at a US$1,700/oz gold price assumption. West Cache has an indicated resource of 472,000 ounces grading 3.63g/t and an inferred resource of 1.1Moz grading 2.87g/t. Galleon Gold trades on the TSXV under GGO.

Moneta Gold announced a new gold discovery at the Halfway zone within the Golden Highway area of its Tower Gold project in Ontario, Canada. Drilling intersected gold mineralisation over a strike length of 700m and a width of 300m to the east of the Windjammer South open pit gold resource within the Halfway area, confirming extensions of gold mineralisation to the current gold resource at Windjammer South. Highlights from 16 holes in the discovery area included 50.10 m grading 0.72 grams per tonne and 24m grading 1.36g/t. The drilling is part of an ongoing 72,500m programme in 130 holes to test extensions of the current 4 million ounce indicated and 4.4Moz inferred resource. Moneta Gold trades on the TSX under ME and on the OTCQX under MEAUF. News release

Kingfisher Meals says an induced polarization geophysical survey and geochemical sampling program at the Day Trip Zone in the Goldrange Project of BC has discovered a very high, at surface IP chargeability and conductivity anomaly which underlies highly gold anomalous geochemistry and veins on surface. In short, the company says these results confirm an excellent drill prospect ona brand-new area they discovered in 2020 though prospecting. The Day Trip Zone is located approximately 5 km southeast of the Cloud Drifter Trend. Kingfisher Metals trades on the TSX Venture with KFR and on the OTCQB with KGFMF. News Release

Elemental Royalties confirmed yesterday that Gold Royalty has commenced a highly conditional and unsolicited all-share takeover bid to acquire all outstanding common shares of the company. The Board of Elemental, following input from its financial and legal advisors, announced its intention to recommend that shareholders reject the  unsolicited all-share takeover bid on the terms as proposed by Gold Royalty in a  December 20, 2021 news release. Elemental cautions shareholders that there can be no certainty of a takeover or other change of control transaction involving the Company being completed. In the meantime, its business as usual for Elemental Royalties. They trade on the TSX Venture with ELE and on the OTCQX with ELEMF. News Release

That concludes today’s morning briefing.

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