Integra Resources Ready to Drill DeLamar
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, May 7th.
The gold price incurred the wrath of the price management team using copious quantities of paper gold to inflict a $28 price take-down beginning about an hour before the a.m. price fix in London early Wednesday morning. For now a line in the sand appears to have formed at $1685 per the June gold futures contract. Silver once again outperformed gold but continues to find resistance at its downward sloping 50 day moving average. The gold/silver ratio managed to fall below 113. As this is being written, gold has staged a $5 dollar rally up to $1693 in early evening trading. The Mining Stock Journal said it does not expect gold to remain below $1700 for long, as China re-opened for business Wednesday though it usually takes a few days after a holiday hiatus for China to make its presence in the physical gold market noticeable. Although the chart of GDX looks a bit toppy from a technical perspective, gold mining companies are reporting robust and better than expected Q1 earnings, a trend that will accelerate in Q2 as mining companies are now enjoying low energy costs which will turbo-charge profit margins. This should support another move higher even if gold were to trade sideways for awhile.
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... Integra Resources.
This morning, Integra Resources announced drilling will recommence at the DeLamar Project in southwest Idaho. The first diamond drill rig is expected to begin at Florida Mountain’s high-grade gold-silver targets by May 20th while a second diamond drill is scheduled to begin in June. Up to 7,000 meters of drilling is planned at Florida Mountain for this program. Recent drill results from the area included 19.58 g/t gold over 2.13 meters. The company also noted a reverse circulation drill is also scheduled to begin drilling at War Eagle in July and will be compromise of 5,000 meters and will test an area of War Eagle with a large soil geochemistry anomaly which has never been drill tested. Integra Resources trades on the TSX Venture with ITR and on the OTCQX with IRRZF. News Release
And here’s what you need to know this morning …
Equinox Gold shared results of a preliminary economic assessment for the development of an underground mine at the Company's 100% owned Aurizona Gold Mine in Brazil. The underground mine could be operated concurrently with the existing open-pit mine and has the potential to deliver an additional 740,500 ounces of gold, $1 billion in revenue and $204 million in after-tax net cash flow over a ten-year mine life at a base case gold price of $1,350 per oz. The mine plan ncorporates 2.8 million tonnes of Indicated Resources grading 2.73 grams per tonne ("g/t") gold and 6.2 million tonnes of Inferred Resources grading 2.89 g/t gold being mined using long-hole stoping methods. Initial capex for the underground mine sits at just under $70 million. The mineralization which would be mined underground, extends below the open-pit that is currently in production at Aurizona, has been drill tested to a depth of approximately 600 metres from surface and remains open at depth and along strike. Equinox Gold trades on the TSX and the NYSE with the symbol EQX. News Release
A day after reporting a massive drill assay result of 188 meters grading 3.69 g/t gold at its Golden Summit property, Free Gold Ventures announced today it will undergo a $5 million financing with a brokered private placement managed by Paradigm Capital. Each Unit and each Subscription Receipt will be issued at a price of C$0.17 per Unit and will consist of one common share and one-half of one common share purchase warrant with a strike price of $.28 for a period of 2 years following the closing date. Freegold shares jumped more than 250% yesterday after their drill news, but came back down throughout the day to close as more than a double than the prior day of trading. Freegold trades on the TSX with the symbol FVL. News Release
Rockcliff Metals announced some results from its completed phase four drill program at the company’s Bur Property in central Manitoba. A full list of results can be found on this morning’s press release, but highlights include 13.51% zinc equivalent across 3.26 meters and 15.64% zinc equivalent over 1.94 meters. The company says they are particularly interested in the copper assays which contributed to those zinc equivalent numbers, specifically the ones which hit more than 2%. Rockcliff Metals trades on the CSE with RCLF. News Release
Golden Minerals shared their Q1 financial results this morning. The Company reported revenue of $1.2 million in the first quarter 2020 related to the oxide plant lease and costs of approximately $0.6 million related to the services Golden provides under the terms of the lease, for a net margin of $0.6 million. Revenue was lower in the current period due to a contracted amendment permitting a lower variable price per tonne of ore processed beginning in January 2020. Golden Minerals trades on the TSX and the NYSE with the symbol AUMN. News Release
Newmont decided to relinquishing its option to earn up to an 80% interest in the Astro Project, NWT, Canada and terminating the Mackenzie Alliance with Evrim Resources. In 2019, Newmont funded a US$1.4 million exploration program that included an airborne geophysical survey and eleven reverse-circulation scout drill holes. News Release
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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