Mining Stocks vs the S&P 500

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

Today is Wednesday, June 3rd.

 

Both gold and silver were given an abrupt ride on the down elevator as both metals were smoked in the Comex paper derivatives market after a nice overnight rally. The Mining Stock Journal is suggesting that the price containment team is trying to encourgage existing June gold contract longs that have not been noticed for delivery yet  to sell and to discourage new longs from standing for delivery. The ambush on the silver price was somewhat expected, as July silver was close to popping over $19 on Monday. The Mining Stock Journal noted that India continues to slowly open up its economy and there will be ravenous appetite for physical gold from India's population. The gold/silver ratio bounced off of and up from its 200 day moving average but that's expected to be merely a technical blip. While it may be surprising to some, the mining stocks have outperformed the S&P 500 and Dow year to date and a short corrective pullback in the sector should be regarded as a strong buy opportunity

 

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... 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 robust list of project and company information on their website, rio2.com..

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

Calibre Mining shared its maiden mineral resource estimate for the Panteon deposit at its Limon mine. Panteon is located about 150 meters from the currently producing Santa Pancha underground mine. It is estimated that Panteon currently contains an Indicated Mineral Resource of 90,000 tonnes at an average grade of 9.88 g/t Au for 29,000 contained ounces, with an additional Inferred Mineral Resource of 303,000 tonnes at an average grade of 6.79 g/t Au for 66,000 contained ounces. This maiden resource estimate incorporates a total of 122 diamond drill holes, including 12 holes drilled by Calibre in late 2019 and the first quarter of 2020. Calibre trades on the TSX with CXB and on the OTCQX with CXBMF. News Release

EMX Royalty has an option agreement for the Antelope gold Project in Nevada in place with Hochschild Mining. The Agreement provides EMX with work commitments and cash payments during Hochschild's earn-in period, and upon earn-in, a 4% NSR royalty, annual advanced royalty payments, and milestone payments.

The Antelope Project is located in the Illipah mining district of western White Pine county, Nevada. EMX recognized potential extensions of Carlin-style mineralization along anticlinal folds and other structures in prospective host rocks within the greater Illipah mine area. The Project was acquired in late 2018 through the staking of open ground as part of the EMX's regional generative gold program and is now advancing under the option agreement with Hochschild. Hochschild can earn 100% interest in the Project by (all dollar amounts in USD): (a) making option payments totaling $600,000, (b) completing $1,500,000 in exploration expenditures before the fifth anniversary of the Agreement, and (c) reimbursing EMX the previous year's holding costs. EMX Royalty Corp trades on the NYSE and the TSX Venture with EMX. News Release

Northstar Gold reported assay results from a partially complete Phase I diamond drill program on the company's Miller Gold Property located just southeast of the town of Kirkland Lake and Kirkland Lake Gold’s Macassa gold mine. Highlights reported today included 18.01 g/t gold over 3.9 meters which included 100 g/t gold over .6 meters. A total of 2,211m of the planned 3,000 m drill program was completed in 13 holes between February 22 and April 04, 2020 when operations were suspended due to COVID-19 pandemic complications and concerns. Northstar Gold trades on the CSE with the symbol NSG. News Release

Premier Gold shared drilling results from its Mercedes Mine in Sonora, Mexico. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Results from today included 6.31 g/t gold and 23.19 g/t silver over 84.7 meters at Diluvio West. At Marianas, results included 11.67 g/t gold and 55.72 g/t silver over 5.2 meters. The company says these results from the Q1 program have provided some of the best intercepts realized over the past several years with grades well exceeding current reserves. Premier Gold trades on the TSX with PG and on the OTCPK with PIRGF. News Release

And now, let us turn it over to Kai Hoffman for this week’s Oreninc Weekly.

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And while we’re on the topic of financings, Galway Metals announced it will look to raise over $12 million through a private placement consisting of about 11 and a half million shares that qualify as charity flow-through shares at a price of $.635 and another 11 and a half million hard-dollar common shares at a price of $.44 per share. Eric Sprott has agreed to purchase $3 million of the hard dollar shares in the offering. 

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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