Management Shake-Ups to Begin 2022
Over the last two weeks of 2021, gold managed to push back over US$1,800 per ounce and it closed out the year at $1,828. The Mining Stock Journal had been watching the $1,816 level, February basis, as a key level of resistance. Without question the chart for gold is looking quite bullish.
Silver, on the other hand, still has some technical work to do. Though a big move on Friday enabled silver to push over the key $23 level and close comfortably above at $23.35/oz, March basis, silver is still below the key 50 and 200 day moving averages. That said, silver has formed a nice double-bottom formation at $21.50 and the RSI and MACD indicators are pointing to the potential for an explosive move.
The move in the metals has been confirmed by the mining stocks. The GDX has risen 10% since its close on December 15th. The gold and silver rally in the last two days of 2021, however, was mostly erased by a huge price ambush on the metals that began a couple hours before the Comex floor opened for business on Monday. The paper gold price was given a $35 price haircut from top to bottom, taking gold temporarily below $1,800 before the yellow dog managed to close a few dollars above $1,800.
Silver was scalped for 75 cents from top to bottom and settled back at $22.90. The Mining Stock Journal said that a sudden, unexplained spike in the dollar may have triggered hedge fund algos into dumping paper gold and silver. The newsletter said, however, that macro fundamentals in support of gold and silver continue to strengthen and that it expects a big move higher in the precious metals sector over the next several weeks.
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And here’s what you need to know this morning….
Pure Gold Mining has undertaken a management shake-up to better align operational requirements with professional expertise. As part of this, director and seasoned mining engineer Troy Fierro replaced Darin Labrenz as president and CEO, and VP business development Chris Haubrich replaced Sean Tetzlaff as CFO. The Pure Gold mine in the Red Lake district of Ontario, Canada, commenced production at the end of 2020 but has had a challenging start-up. Its challenge has been maintaining access to enough high-confidence, high-grade stopes to provide high-grade ore to the mill. The mine is targeting production in the range of 600-700tpd, 60%-70% of mill capacity, for the first quarter of 2022 and will ramp up from there as access to high-confidence, high-grade stopes increases. Average head grades are expected to initially be in the range of 5-7g/t and are also expected to increase as the growing drilled inventory allows for better stope scheduling. To reduce costs , Pure Gold has streamlined functional leadership and eliminated several senior manager roles, awarded a new crushing and hauling contract , which reduced material handling costs by 25% and is making upgrades to the gravity circuit to increase recovery. Pure Gold Mining trades on the TSXV under PGM and on the LSE under PUR. News release
And this wasn’t the only shakeup in junior mining announced today. Foran Mining appointed David Vernier as Chief Operating Officer. E3 Metals appointed John Pantazopoulos as its Chairperson. And Arizona Sonoran Copper appointed Sarah Strunk to its Board of Directors. So quick a bit of changes from managements to boards to begin the year.
Centerra Gold confirmed today it is engaged in negotiations with representatives of the Kyrgyz Republic to resolve disputes related to Centerra’s Kumtor mine and the seizure of control of the mine by the Kyrgyz government in May 2021. The company noted in the press release this morning that any resolution would involve the following principal terms: Centerra receiving the approximately 26.1% in Centerra common shares held by Kyrgyzaltyn JSC (an entity of the Kyrgyz Republic). The Kyrgyz Republic receiving, and assuming all responsibility for, the company’s two Kyrgyz subsidiaries and the Kumtorm ine. Payment by Centerra of a cash amount equal to the net amount of the three dividends paid by Centerra in 2021 that Kyrgyzaltyn did not receive as a result of the seizure of the mine. The resignation from Centerra’s Board of Kyrgyzaltyn’s two nominees. And full and final releases of all claims of the parties and termination of all legal proceedings involving the parties in all jurisdictions with no admissions of liability. Centerra noted negotiations with representatives of the Kyrgyz Republic are ongoing, and there can be no assurance that any proposed resolution will be consummated or as to the final economic and other terms and conditions of any such resolution, if agreed. Centerra trades on the TSX with CG and on the NYSE with CGAU. News Release
Chakana Copper has reported thirteen additional resource definition and exploration holes for 3,265m at the Huancarama target at its Soledad project in Ancash, Peru. The results will increase confidence in the initial resource estimate covering several breccia pipes, which is being finalised. Highlights included 50.7m grading 0.63 grams per tonne gold, 3.46% copper and 118.8g/t silver for 4.89% copper equivalent, with two additional high-grade intervals of more than 50m also reported. The Huancarama breccia pipe is one of several which will be included in the initial resource estimate. It is part of a breccia complex with six outcropping breccias over a 200m lateral distance. Since restarting drilling in August 2020, Chakana has completed more than 30,000m of drilling in 143 holes. The initial resource estimate will be on the shallower extent of several breccia pipes. Mineralised tourmaline breccia pipes occur within a 12 km2 area, with only 16 of 110 targets tested so far. Shares in Chakana Copper trade on the TSXV under PERU and on the OTCQB under CHKKF. News release
In Nevada, Blackrock Silver announced it began a maiden drill campaign on the Tonopah North project, which is adjacent to its Tonopah West project. The fully permitted and funded inaugural drill program will consist of 9,000 metres in twelve reverse circulation drillholes. The program will test two silver-gold concepts associated with the mapped margin of the Tonopah Caldera and the projection of major northwest structures, and the lithium potential within the middle and lower portions of the Siebert Formation. Blackrock Silver trades on the TSX Venture under BRC. News Release
That concludes today’s morning briefing but stay tuned for the launch of MSD Extra later today, a newsletter we will be publishing on SubStack. Trevor, What is MSD Extra?
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