Mexico Declares COVID-19 National Health Emergency

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Thursday, April 2nd. 

The gold price was volatile on Wednesday, trading between $1584 and $1612, with the sell-offs occurring after the a.m. London fix and during the Comex paper gold trading hours. Silver is hovering precariously above $14 on a futures basis and the gold/silver ratio settled the day at 113. The Mining Stock Journal said that the precious metals performed well vs. the stock market on a day when it seemed that everything was for sale except, surprisingly, the mining stocks. The mining stocks staged a nice rally with the GDX ETF up 4%. The Mining Stock Journal noted that the Federal Reserve seems to roll out a new money printing bank bailout vehicle on each day ending with the letter "Y" and the devaluative effect of this on the dollar should provide the fuel for a big move higher

in the precious metals 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... Ascot Resources

Ascot Resources is a Canadian mineral development company publicly traded on the Toronto Stock Exchange with the symbol AOT and on the OTCQX with AOTVF. Ascot’s focus is to re-start the historic Premier gold mine, a mine once named North America’s largest gold mine, located just 25 kilometres from the town of Stewart, in northwestern British Columbia in a prolific area known as the Golden Triangle. The Company is advancing the feasibility study and permit amendments necessary for project approval. In addition, the Company will continue to drill a number of gold-silver discoveries on its 25,000 hectares of mineral concessions that benefit from their proximity to Premier and the towns of Stewart, B.C and Hyder, Alaska. More information about Ascot can be found online at ascotgold.com. 

And here’s what you need to know this morning …

Golden Minerals shares results from their updated mineral resource estimate and preliminary economic assessment for its Valardeña Properties in Durango State of Mexico. Using a $1,324 oz gold price and a $16.23 silver price, the analysis show a pre-tax net present value of $85.9 million at an 8% discount rate and a pre-tax internal rate of return of 138.6%. The 10 year life of mine plan shows 12.3 million ounces of contained silver with an average silver grade of 337 g/t and 188 thousand ounces of gold with average grade of 5.15 g/t. Golden Minerals trades on the NYSE and the TSX with the symbol AUMN. News Release

Sandstorm Gold Royalties says the company sold approximately 13,400 attributable gold equivalent ounces1 and realized preliminary revenue of $21.3 million during the three months ended March 31, 2020. The Company’s normal course issuer bid is being renewed after the existing NCIB expires on April 4, 2020. The current NCIB provides Sandstorm with the option to purchase up to 13.0 million of the Company’s common shares from time to time when Sandstorm’s management believes that the Common Shares are undervalued by the market. Under the renewed NCIB, Sandstorm may purchase up to 17 million of its Common Shares, representing approximately 10% of the Company’s issued and outstanding. Sandstorm trades on the NYSE with the symbol SAND and on the TSX with SSL. News Release

Palladium One says it has received approval from the Finish Mining Authority for a 20,000 hectare Reservation of Kostonjarvi, which is adjacent to the company’s Flagship Lantinen Koillismaa project in Central Finland. The KS reservation covers a large buried gravity and magnetic anomaly that is interpreted to represent a buried Feeder Dyke to the Koillismaa Complex which hosts the palladium dominant, PGE-nickel-copper project. The company believes the Kostonjarvi project target is an underground, high-grade massive sulphide feeder system of the Koillismaa complex, similar to a Norlisk or Voisey’s Bay type deposit. Palladium One trades on the TSX venture with PDM and on the OTC with NKORF. News Release

TriStar Gold says Royal Gold has made the final payment of $1.5 million in connectin with  the Royal Gold’s acquisition of a 1.5% NSR royalty on the company’s Castelo de Sonhos project. Royal Gold now holds a total of 19.6 million common share purchase warrants, each entitling Royal Gold to purchase one common share of TriStar at a price of C$0.25 per common share for a period of approximately five years from the date of issuance. TriStar trades on the TSX Venture with the symbol TSG. News Release

GR Silver shared new assay results for initial underground channel sampling from the San Juan underground workings at the recently acquired Plomosas Silver Project, in Sinaloa, Mexico. San Juan is one of six priority areas with underground development not yet exploited by previous owners. The most significant sample returned intervals 3,003 g/t silver over .4 meters and 6,128 g/t silver over .2 meters. The company says These results provide support for the potential definition of wide, mineable, underground zones at San Juan. GR Silver trades on the TSX Venture with GRSL and on the OTCQB with GLYXF. News Release

Yesterday, the Mexican government declared COVID-19 a national health emergency and stated only essential services shall remain open. Mining, however, is not deemed an essential service in the plans. So there were a number of companies which published project updates regarding temporary suspensions of projects based in Mexico. Those include Endeavour Silver, Equinox Gold, Avino Silver & Gold, and Pan American Silver. 

That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already. 

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Have a wonderful day. Be well.

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