Ivanhoe Publishes 2022 Production Guidance
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Monday, January 10th.
On Friday gold staged a rally back toward US$1,800 per ounce, settling at $1,796 for the week. Some dovish remarks by the President of the San Francisco Fed, Mary Daly, triggered the move after paper gold was slammed down to as low as $1,781 when the December employment report hit the tape.
Silver was inspired by Daly's remarks as well, staging a rally up over 1% at one point. As with gold, the paper silver price was bashed below $22 per ounce temporarily but bounced from as low as 21.95 to as high as 22.45 before settling at 22.39
The Mining Stock Journal noted that Indian importation showed signs of life on Friday, with the data showing that dore bar importation was viable all day and kilo bar imports were feasible for part of the day. The newsletter said that data from the Shanghai Gold Exchange showed that China was highly active buying gold all week last week, especially Thursday and Friday. Open interest data from the Comex showing a big increase in paper contracts reflects an aggressive effort by the banks last week to keep gold below $1,800 and silver $22. Despite overall weakness in the stock market Friday, the mining stocks rallied with the metals. GDX closed the day up almost 1%.
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… Rio2
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Ivanhoe Mines published their production guidance for the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo. The company says that is now set at 290,000-340,000 tonnes of copper in concentrate for 2022. Kamoa Copper produced 105,884 tonnes of copper in concentrate in 2021, exceeding the upper end of the guidance range. The company set a record monthly production of 18,853 tonnes achieved in December, with plant recovery averaging 88.5%. Ivanhoe says Phase 2 expansion is now 80% complete, and is expected to start operations in Q2 2022. The Phase 3 expansion is also advancing, with work ongoing on new box cut to open up the Kamoa Mine.
Roscan Gold announced results from 2 Air Core and 14 reverse circulation and diamond drilling holes from the Southern Mankouke zone of the Kandiole project in Mali. Results included 8m grading 16.01g/t gold and included 4m grading 26.66g/t. The company noted that the results indicate the potential for a high-grade mineralization extension to the East and to the South. The gold mineralization trend is now recognized over 250m north to south and over 150m vertical depth, ending in fresh rock. Additional follow-up drilling has been completed and results are pending. Other results today included 6m grading 11.88g/t and 4m grading 8.89g/t . The company said it anticipates the maiden resource to be pushed into the first half of this year. Roscan Gold trades on the TSX Venture with ROS and on the OTCQB with RCGCF. News Release
Side note, that OTCQB listing is a recent upgrade for Roscan. Three Valley Copper also announced a similar upgrade this morning to the OTCGB with their ticker symbol TVCCF. News Release
79North announced drilling results from the Nassau gold project in Suriname South America, where it confirmed near surface high-grade gold in oxidized saprolite and sheared and hydrothermally altered volcanic rocks. Highlights included 1.5m grading 338.2 grams per tonne gold in saprolite and 1m grading 99.58g/t in bedrock at the Witlage target. Phase 1 drilling was completed in November with 18 holes drilled for 1,473m. 79North trades on the CSE under JQ and on the OTCQB under SVNTF. News release
Westhaven Gold announced a maiden open-pit constrained resource estimate for its Shovelnose gold property in British Columbia, Canada with an indicated resource of 10.6 million tonnes grading 2.32 grams per tonne for 791,000 ounces of gold and 3.9Moz of silver. It also has an inferred resource of 263,000oz of gold and 1Moz of silver. The resource is based on 56,491m of drilling in 145 holes. Westhaven says Shovelnose is situated off a major highway, near grid power, rail, large producing mines, and within easy commuting distance from Merritt. Westhaven Gold trades on the TSXV under WHN. News release
Banyan Gold reported results from five diamond drill holes received from the 2021 exploration campaign at the Powerline deposit at its AurMac property in Yukon, Canada. Highlights included 84.5m grading 1.32 grams per tonne gold from surface in hole 151. In 2021, Banyan completed 30,091m of drilling in 135 diamond drill holes, with assay results from 63 drill holes outstanding. Drilling at AurMac in 2022 will feature 30,000m of diamond drilling split between Powerline and Aurex Hill with three drill rigs slated to commence activities later this month. Banyan Gold trades on the TSXV under BYN. News release
District Metals reported assay results from grab and chip rock samples recovered from fieldwork carried out late last year at its Svärdsjö property in the Bergslagen Mining District of south-central Sweden. This fieldwork consisted of reconnaissance prospecting and geochemical sampling at some of the historical mines and showings along a four kilometer mineralized trend within the project. Chip sampling from outcrop at the Kompanigruvan Pit returned 37.3% Zinc Equivalent, which was composed with 253 g/t silver, 22.8% zinc and 8.6% lead. Grab sampling from mine dumps at the Stormyrgruvan showing returned 29.0% ZnEq. Significant mineralization remains open beneath and southwest of the historic Svärdsjö and Kompanigruvan Mines, which represents walk up drill targets. District Metals trades on the TSX Venture with DMX.
Nova Royalty agreed to acquire an existing 0.135% net smelter return (NSR) royalty on the Copper World and Rosemont copper projects in Arizona, USA which are owned by Hudbay Minerals. Nova will also be granted a right of first refusal regarding an additional 0.540% NSR owned by the sellers on the same area. Nova will pay US$1 million in cash and $500,0000 in stock, $1 million in cash 12 months after closing, and $3 million in cash following the ramp-up of production at either Copper World or Rosemont. Nova Royalty trades on the TSXV under NOVR and on the OTCQB under NOVRF. News release
That concludes today’s morning briefing.
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