M&A Returns to the Mining Sector
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Tuesday, October 6th.
The gold price was run below $1900 December basis until about 3 a.m. NY Time, when it once again took off like a gold medal Olympic sprinter on steroids, running up through the a.m. London price fix and the Comex open to as high as $1924 before settling around $1918. The Mining Stock Journal said that India is the smoking gun behind the price rise. Based on the ex-duty import prices posted in India, the Indians were voracious buyers of gold last night. This likely was the catalyst that forced the paper gold shorts to cover the shorting that drove the price below $1900. Silver rose 2%, outperforming gold by a 4 to 1 margin. The gold/silver ratio dropped to 78. The mining shares were up generically 1.5% The Mining Stock Journal said that the precious metals sector has the potential to make a big move higher during Q4 but noted that it's troubling that many of the micro-cap junior explorers are being sold off, diverging negatively from the rest of the precious metals sector. This is something to keep an eye on and it is either a warning signal or is creating a great buying opportunity in the riskiest segment of the sector.
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… Minera Alamos.
Minera Alamos is a Mexico focused gold development company which is on the cusp of graduating to the ranks of gold producers in early 2021. Minera Alamos is traded with the symbol MAI on the TSX-V and with MAIFF in the US OTC Markets. Read more about their development strategies at mineraalamos.com.
And here’s what you need to know this morning.
Yesterday, Osisko Gold Royalties and Barolo Ventures announced they have entered into an agreement in which Osisko Royalties will transfer certain mining properties, including the Cariboo Gold Project, and a portfolio of marketable securities valued at approximately CDN $116 million, to Barolo in exchange for common shares of Barolo, which will result in a "Reverse Take-Over" and forming Osisko Development. As part of this deal, the both companies have also entered into a bought deal private placement of over 13 million subscription receipts of the newly formed Spinco at a price of $7.50 for gross proceeds of $100 million. The company says the formation of Osisko Development creates a leading North-American mine development company with a focus on becoming a significant intermediate gold miner with opportunities for near-term production. Osisko Development will target near-term gold production of over 100,000 ounces per year from Bonanza Ledge II and the San Antonio Gold Project, followed by production from the company's flagship Cariboo asset. Osisko Royalties trades on the TSX and the NYSE with the symbol OR. News Release
Vizsla Resources says they have expanded the Napoleon prospect at the Panuco silver-gold project in Mexico with recent drilling. Results reported upon today included 449 g/t silver equivalent over 15.3 meters true width, 1,696 g/t silver equivalent over 2.58 meters true width, and 755 g/t silver equivalent over 2 meters true width. Mineralization has been extended to the south over 50m and is completely open at depth. Vizsla trades on the TSX Venture with VZLA and on the OTCQB with VIZSF. News Release
Aurelius Minerals reported assay results of previously unsampled and unassayed underground drill core identified post the acquisition of its wholly owned Aureus Gold project in Nova Scotia. The results today are from the Aureus East project. Highlights included 28.4 g/t gold over 1.78 meters, 32.2 g/t gold over 1.1 meters and 5.3 g/t gold over 3.2 meters. The company's initial underground drill campaign, part of the 10,000m Phase 1 program, is well under way with two holes completed from underground and a third in progress. The third hole, being drilled currently, is intended to extend mineralization to depths previously unexplored. The hole is currently below 800m from surface and continues within the system. Aurelius trades on the TSX Venture with AUL and on the OTC markets with AURQF. News Release
FireFox Gold says a new extensive gold-bearing structure has been identified in the southern part of its Jeesiö Project. Field crews investigated the area to follow-up on anomalous gold from sampling completed in 2019. The highlights of rock chip samples from the summer 2020 program in this area include boulder samples of 2.6, 2.75, and 4.73 grams per tonne (g/t) gold and outcropping quartz-magnetite-sulphide veins containing 10.5 g/t gold. These higher-grade samples are not representative of the entire target area, but are indications of local intense gold mineralization that has not yet been tested with trenching or drilling. FireFox trades on the TSX Venture with FFOX. News Release
Benchmark Metals shared new results from the ongoing drilling at Cliff Creek where multiple holes intersected broad zones of significant bulk-tonnage mineralization below all previous drilling, confirming the mineralizing system remains strong and open at depth. Results included 2.05 g/t gold and 107 g/t silver over 30.63 meters and 1.17g/t gold and 30.06 g/t silver over 45.86 meters. The Cliff Creek Zone is currently the largest mineralized area on the Lawyers project extending for +1.2 kilometres on-strike with mineralization beginning at surface. Benchmark trades on the TSX Venture with BNCH and on the OTCQX with BNCHF. News Release
Anaconda Mining also had new drill results out this morning from the Goldboro gold project in Nova Scotia. Results included 17.95 g/t gold over 2.5 meters and 4.16 g/t gold over 22.8 meters. The Drill Program is designed to convert priority Inferred Mineral Resources, considered proximal to planned development in the feasibility study, into Measured and Indicated Mineral Resources of the Goldboro Deposit. Anaconda trades on the TSX with ANX and on the OTCQX with ANXGF. News Release
Northern Star Resources has agreed to buy Australia’s Saracen Mineral Holdings to boost gold output. The deal with put Northern Star on track to produce 2 million ounces a year. The two companies already jointly run Australia’s Kalgoorlie’s Super Pit. The agreed upon deal is worth over $4 billion and will create the 8th biggest gold miner in the world by market capitalization.
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I’m Trevor Hall. Have a wonderful day. Be well.
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