Mawson Subsidiary Drills Monster Hole; Rio2 Publishes its Feasibility Study for Fenix
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Tuesday September 5th.
Last week gold rose $22 from the previous week's close. The yellow dog managed to rise in price every day except of course Friday. Recall that it's customary for the price management squad to make sure the gold price falls on Fridays, particularly low-volume pre-holiday Fridays. Gold closed out the week at $1967 after trading as high as $1980. The majority of the price gain occurred Tuesday following much weaker than expected economic numbers and the hope and prayer of a Fed pivot. But gold won't need a Fed pivot to push through $2000 and higher this fall, according to the Mining Stock Journal.
Silver also rose, up 23 cents on the week. After pushing through $25 to as high as $25.42 on Wednesday, the price management squad made sure silver closed comfortably below $25 by the end of the week. The mining stocks seemed to track the fate of silver last week, with GDX making a nice move higher on Monday and Tuesday. But the miners followed silver's trading pattern. Though it's impossible to predict when it will begin, the Mining Stock Journal expects a bull move between today and the end of the year that will take everyone but the most ardent monetary metals advocates by surprise.
We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Arizona Sonoran Copper.
Arizona Sonoran Copper Company (ASCU:TSX) is focused on developing its brownfield copper project on private land in Arizona, a tier 1 location. The Cactus Mine Project is located less than an hour's drive from the Phoenix International airport via highway i-10, and with grid power and the Union Pacific Rail line situated at the base of the Cactus Project main road. With permitted water access, a streamlined permitting framework and infrastructure already in place, ASCU's Cactus Mine Project is a lower risk copper development project in the infrastructure-rich heartland of Arizona.
And here’s what you need to know this morning….
Mawson Gold announced results form six drillholes at the Sunday Creek Project in Victoria, Australia this morning. The biggest highlight comes in the form of 404.4m of 5.6 g/t AuEq comprised of 5.1 g/t Au and .3% Sb which crossed 13 individual vein sets. Such sub intervals consisted of .4m of 593.6 g/t AuEq at 407m depth and .4 m of 2,679.8 g/t AuEq from 740m depth. Sunday Creek is 100% owned by Southern Cross Gold ("SXG"), which is an ASX listed company owned 51% by Mawson. Four rigs continue to drill both in the main drill area where eleven holes are currently being geologically processed and chemically analyzed, with four holes in drill progress and up to 7.5 km along strike at the Tonstal, Consols and Leviathan prospects where twelve holes for 2,383 m have now been completed with results expected in the coming weeks. (TSX:MAW) (OTC PINK:MWSNF) News Release
DLP Resources published drill results from hole 10 on the Aurora porphyry copper-molybdenum project in Peru. The complete 1003m drill hole returned .66% CuEq from surface with the final 459.55m containing 1.01% CuEq and ended in molybdenum mineralization. This hole now confirms extension of the molybdenum-copper mineralization over approximately 800m and the mineralization is open in all directions and at depth. Drilling is ongoing and hole 11 drilled on a step out of approximately 290m southwest of hole 10 is in progress to a depth of 1000m. (TSXV: DLP) (OTCQB: DLPRF) News Release
Fortuna Silver announced the discovery of the Yessi vein, which is a new blind mineralized structure at the San Jose Mine in Mexico. Drilling by the mine geology team recognized a new blind zone of alteration and brecciation, resulting in the intersection of 1,299 g/t Ag Eq over 9.9 meters in drill hole SJOM-1387, and 621 g/t Ag Eq over 5 meters in drill hole SJOM-1391. Additional drilling is currently underway to define the strike extent and geometry of the Yessi vein. Mineralization remains open along strike to the north and south, and at depth. (NYSE: FSM) (TSX: FVI) News Release
Rio2 announced a Feasibility Study for its Fenix Gold Project in the Maricunga region of Chile, including an updated Resource and updated capital and operating cost estimates. The project would produce 91,000oz/y of during the initial 12 years and then 54,000oz/y for the final 4 years at an AISC of $1,237/oz Au from 1.77Moz of Reserves grading 0.48g/t within a $1,650/oz Au gold price pit shell. The project would yield a $210.3 million after-tax net present value at a 5% discount rate, a 28.5% internal rate of return and 2.8-year payback following an initial capital costs of $117 million and LOM sustaining capital of $88 million. Following a 14-month construction, 20,000tpd will be mined. A second stage would expand this to 80,000–100,000tpd with annual production rising to more than 250,000oz. The environmental impact assessment for the project was rejected in 2022 by environmental authorities on the grounds of insufficient information to rule out negative impacts to Guanacos, Vicuñas, and Chinchillas. Rio2 exercised its right to file an administrative appeal before the Committee of Ministers which is evaluating the Project with a decision expected later this year. In the meantime, the company aims to complete the construction financing package and restart the construction plan. Rio2 (TSXV: RIO; OTCQX: RIOFF. News release
Skeena Resources announced an updated Resource Estimate for the Snip Gold Project in the Golden Triangle of British Columbia that incorporates an additional 307 drill holes for 46,268m, enhancements to the geological interpretation, resource estimation methods, long hole mining method parameters, and updated metallurgical process recoveries. The indicated resource is now 823,000oz grading 9.35 g/t Au, growth of 237% since the 2020 resource, with another 114,000oz grading 7.10 g/t in Inferred. A detailed engineering study with project economics is due to be released in the first semester of 2024, and will demonstrate the potential benefits of adding Snip mineralization to the Eskay Creek Project as a satellite operation. Skeena Resources (TSX and NYSE: SKE) News Release
Cerrado Gold commenced the tender phase for the Mandated Lead Arranger of its Export Credit Agency project financing program. It issued detailed banking information memorandums to a number of Project Finance Banks who have indicated an interest in being the Mandated Lead Arranger as part of the UK Export Finance supported export credit facilities for the the Monte Do Carmo Project in Tocantins, Brazil and the Mont Sorcier Iron Ore and Vanadium Project in Quebec, Canada. Selection is expected to be completed by the end of September. UKEF has expressed an interest to provide support for up to US$190 million for Monte Do Carmo and up to US$420 million for Mont Sorcier; representing 70% of total capital expenditure, interest payable during construction, the political risk insurance premium as well as other approved expenditures for each project. UKEF is a department of the UK Government and is the UK's official Export Credit Agency. Cerrado Gold (TSX.V:CERT) (OTCQX:CRDOF) news release
New Pacific Metals reported a maiden resource estimate for its Carangas silver‐gold polymetallic deposit in Bolivia featuring an indicated resources of 214.9Mt containing 205.3Moz of silver, 1.6Moz gold, 1.4Blb lead, 2.7Blb zinc, and 113Mlb copper; or 559.8Moz silver equivalent. It also hosts an inferred resource of 110Moz AgEq. The mineralization at CArangas starts at or near surface, potentially allowing for open-pit mining with an average stripping ratio of 1.8:1. Below the pit is gold-dominant mineralization, similar in size and grade to the reported gold domain with potential for conversion to underground mineable resources. New Pacific Metals (TSX: NUAG; NYSE American: NEWP) News Release
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