Integra Releases PEA, Vista Gold Updates PFS, and McEwen Lowers Guidance
Integra Resources released its highly anticipated preliminary economic assessment yesterday. We’ll run down those numbers with you this morning, here on Mining Stock Daily.
Welcome to Mining Stock Daily.
Today is Tuesday, September 10th.
The price of gold closed down $4 from Friday's close in Monday's day session. The price was volatile, as gold shot up to $1523 on the December futures contract after the a.m. price fix in London. It was then aggressively attacked when the Comex floor trading commenced at 8:20 a.m. NY time. Silver also was pushed around in the paper following a big rally after the London price fix. The Mining Stock Journal said that it looks like perhaps the price correction the newsletter was looking for after gold crossed above $1400 may be in process, with help from the bullion bank price management team. The journal noted that, whereas gold and silver had generally moved higher when the Comex pit trading opened over the last several weeks, Monday featured an aggressive price attack via the futures market. The newsletter does not expect this sell-off to last very long.
Today’s briefing is brought to you by Minera Alamos.
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Here’s what you need to know today out of the junior resource sector.
Integra Resources released a Preliminary Economic Assessment on its Delamar gold-silver project in Idaho. The PEA's base case using $1350 gold and $16.90 silver shows a mining operation that can generate an after-tax NPV of $358 million or $472 million using the
current spot price for gold and silver over a 10-year mine life. The Mining Stock Journal, which has a strong buy on Integra's shares, said the PEA is a good starting point to assess the potential for Delamar, which likely hosts significantly more gold and silver than shown in the current resource report. The newsletter noted that even if you cut the NPV in half to incorporate risk-adjustment and time value into a valuation analysis, the project is still worth more than 3 times more than the current market cap of the stock. The Company's shares traded under IRRZF in the U.S. and ITR on the TSX-Venture. The newsletter added that it believes the Company will be acquired with in the next 12-18 months.
Gold Standard Ventures shared their results from the completion of the south Railroad Pre-Feasibility Study on its Railroad-Pinion project in Nevada’s Carlin Trend. South Railroad consists of the Dark Star and Pinion deposits. The study shows a after-tax NPV of just over $241-million at a $1400 gold price and a $17.11 silver price and an after-tax IRR of 27.8%. Proven and probable mineral reserves are established at over 1.2 million ounces of gold with an all in sustaining cost of $657 per ounce. More drilling is planned to convert some of the projects current inferred resources into measured and indicated. Gold Standard Ventures trades on the TSX and the NYSE with the symbol GSV. News Release
Vista Gold also announced an updated preliminary feasibility study for the Mt Todd Gold Project. At a $1500 gold price and with the current exchange rate between the US dollar and the Aussie, Mt todd carres an after-tax NPV5% of $1.15 billion and IRR of 30.3%. Vista also improved its estimate annual production to over 413-thousand ounces of gold per year over the 13-year mine life with an all in sustaining cost of $746 per ounce. Estimated initial capital requirements are over $800-million dollars. Fred Earnest, the CEO of the company, said in this morning’s news release that “To preserve the value of Mt Todd, we are prepared to hold the project until a time when the value of the Project appropriately rewards shareholders.” Vista Gold trades on the NYSE and the TSX with the symbol VGZ. News Release
Kincora Copper shared drill results this morning from its copper-gold porphyry projects in Mongolia. Highlights from the Bronze Fox deposit included .41% copper over 20 meters and .31% copper over 120 meters. The company also said it has commenced its program at the East Tsagaan Suvarga project located about 15 km to the east of the Tsagaan Survarga orphyry copper gold mine. Kincora Copper trades on the TSX Venture with the symbol KCC and on the US OTC market with BZDLF. News Release
McEwen Mining has reduced their yearly production guidance at both the Black Fox and Gold Bar projects. In the new release this morning, Chairman and Chief Owner, Rob McEwen wrote Production at the projects have been a big disappointment. Unanticipated natural and operation issues coupled with startup delays at Gold Bar have pushed some of its production from this year into next. The company did share some exploration results this morning as well. You can find the full list of those assays in the morning’s press release. McEwen Mining trades on the NYSE and TSX with the symbol MUX. News Release
Equinox Gold announced an update in regards to the company being traded on the New York Stock Exchange. Equinox Gold expects its common shares will commence trading on the NYSE American on or about September 16, 2019 under ticker symbol “EQX”. Equinox Gold’s common shares will continue trading on the TSX Venture Exchange under ticker symbol “EQX”. Concurrent with the start of trading on the NYSE American, Equinox Gold’s common shares will cease trading on the OTC Markets. Shareholders are not required to take any action. Equinox Gold recommends that investors who bought shares on the OTC Markets monitor their accounts to ensure their holdings correctly reflect the new ticker symbol, which may take up to two weeks for some brokerage accounts.
That concludes today’s briefing.
Mining Stock Daily is distributed over a dozen different networks throughout the world and in proud partnership with the Junior Mining Network. It is produced by Clear Creek Digital and Investment Research Dynamic's Mining Stock Journal.
Mining Stock Daily is produced by Clear Creek Digital and Investment Research Dynamic’s Mining Stock Journal.
That is it from me today. Have a wonderful day and I’ll be back again tomorrow. Be well.