Kirkland Lake Release Results from Macassa; McEwen Raising $80 for McEwen Copper
Welcome to Mining Stock Daily. I am Trevor Hall.
Today is Tuesday July 6th..
Gold and silver ended the pre-holiday week last week on a strong note, as gold powered nearly $9 higher on Friday to $1792 August basis and silver capped off a week in which it shot back over $26 to close out the week at $26.60, September basis. The Mining Stock Journal said the gold chart is looking bullish again, with a mini-double bottom at $1760 and the MACD and RSI indicators rising from extreme oversold conditions. The banks continued to reduce their net short position in paper gold on the Comex per the latest COT report while the hedge funds started shorting more paper gold. The mining stock newsletter said this repositioning by the banks and managed money is yet another potential bottom indicator. The mining stocks are also starting to feel perky, as GDX had its best week since mid-May. The Hulbert Gold Newsletter Sentiment Index remains in negative territory, which means gold newsletters are net short mining stocks in their recommendations. The Mining Stock Journal said that the HGNSI tends to be a fairly accurate contrarian indicator, which means right now it's giving a bullish signal.
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… 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.
Kirkland Lake Gold reported new drill results this morning from 54 holes of underground exploration drilling from the Macassa Mine in Kirkland Lake, Ontario. Holes in the program were completed from new drill platforms located on the east side of the 5300 and 5800 levels and designed to confirm and expand Mineral Reserves and Mineral Resources in the SMC zone to the east as well as up and down dip. A few of the highlights released this morning included 589.5 g/t gold over 2 meters east of the current mineral reserves at South Mine Complex, 258.1 g/t gold over 2 meters north of the current resource, and 101.7 g/t over 2 meters along the south margin of the current mineral reserves. Exploration drilling at Macassa is currently continuing with eight drills underground and one drill on surface. Kirkland Lake trades on the TSX and the NYSE with KL. News Release
Rupert Resources reported new drill results from its Heinä South prospect, located 1km to the north west of the Ikkari Discovery and part of the Pahtavaara Project in the Central Lapland Greenstone Belt, Finland. Step out drilling returned 162 g/t gold over 1 meters along the north east trend and 17.7 g/t gold over 2 meters, confirming continuity of grade at depth within the previously define trend. Re-sampling of the mineralised zone gave 1213g/t Au over 0.5m. Heinä South remains open in all directions. Rupert Resources trade on the TSX Venture with RUP. News Release
Omai Gold Mines reported results from their ongoing 5,000-meter drill program focused on extending mineralization at Wenot below the historical pit and into the sedimentary package south of the pit. Recent grades and widths from drilling and sampling of core that encountered multiple mineralized zones in basalts and sedimentary rocks support the extension of Wenot both below the pit and to the south. Results included 36.2 g/t gold over 2 meters, including a .8 meter interval of 86.3 g/t gold. An inaugural resource statement is targeted for Wenot during Q4 2021. Omai Gold Mines trade on the TSX Venture with OMG. News Release
Roscan Gold shared new drill results from the Southern Mankouke Zone. Drilling returned 18.22 g/t gold over 4 meters and 2 g/t gold over 25 meters at the Mankouke Discovery Zone MS1 and 2.33 g/t over 18 meters at MS3. MS1 confirms mineralization open at depth and MS3 shows potential high-grade extension to the west. The company noted Hole 104B, the highest grade and depth to date at MS1, points to a potential feed source and warrants follow up. Roscan trade on the TSX Venture with ROS. News Release
ValOre Metals announced the acquisition of new tenements at the Pedra Branca Platinum Group Element Project in northeastern Brazil. Twelve new claims were acquired totally 16,000 hectares along with over 50 kilometers of underexplored, undrilled, geological trend highly prospective for PGE discovery. The first phase of exploration will include the acquisition of new WorldView spectral data and extension of ground or droneborne magnetics, in conjunction with regional geological mapping and prospecting at prospective historical geochemical and geophysical anomalies. ValOre Metals trade on the TSX Venture with VO and on the OTC with KVLQF. News Release
Elemental Royalties released news this morning regarding first gold pour from ASX listed Capricorn Metals and their Karlawinda Gold Project in Western Australia. Elemental holds a 2% NSR royalty on the project, which is the company’s largest royalty. Elemental trade on the TSX Venture with ELE. News Release
McEwen Mining announced a non-brokered private placement financing of up to 8,000,000 common shares of its wholly-owned subsidiary McEwen Copper Inc. at a subscription price of US$10.00 per common share, for gross proceeds of up to US$80 million. A lead order to purchase 50% of the Offering has been committed by Rob McEwen, Chairman and Chief Owner of McEwen Mining. His investment corporation, Evanachan Limited, will purchase 4,000,000 common shares of McEwen Copper for US$40 million and is prepared to close on this portion of the Offering immediately. Subscription for the remaining 4,000,000 common shares is available to qualified accredited investors, subject to a US$2 million minimum investment and certain other conditions. Pursuant to this transaction, McEwen Copper will hold a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek exploration property in Nevada.
That’s it for the news briefing this morning. We have a couple of great interviews coming your way later today.
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