Morning Briefing: A US Federal Judge Says Brokerages of Naked Short Sellers are Liable
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Thursday October 19th.
Wednesday gold continued pushing higher, from $1935 per ounce Tuesday to as high as $1976, before getting shoved lower in early Comex trading to as low as $1951 but settling the afternoon session at $1960. Silver rose along with gold during eastern hemisphere trading hours and through the a.m. London fix, trading as high as $23.48 per ounce before getting hammered back below $23 to as low as $22.85 and settling at $23 on the nose, December futures basis. The Mining Stock Journal commented that, while the mainstream media narrative is trying to connect the action in the precious metals to the military turmoil in the mid-East, the smart money sees a deteriorating credit quality of the U.S. Government and thereby the value of the US dollar. Gold has hit all-time highs in every other major fiat currency except the dollar. The dollar is next.
The mining stocks were slightly lower Wednesday despite the rally in the metals. But that was a function of the sell-off in the stock market and, even more so, profit-taking after the huge bounce in the mining stocks, with the GDX shooting up 15.2% over the previous two weeks. The Mining Stock Journal said that, in spite of the move in the GDX, junior project development stocks, even the ones that have released materially positive news recently, have been comatose. In this afternoon's new issue, the newsletter will be discussing three stocks that should be trading 3-5x higher than their current market cap. To learn more about the newsletter go to InvestementResearchDynamics.com
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… Fireweed Metals
Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.
And here’s what you need to know this morning….
Ascot Resources published a second batch of assay results from the 2023 exploration drill program at the Company’s Premier Gold Project. These are the final results from surface drilling for in-fill and exploration purposes at the Prew Zone in the Premier deposit, southeast of the Premier mill. Results reported today included 18.93 g/t Au over 6.87m, an dincluded 44.55 g/t over 2.3m, 21.98 g/t Au over 4.28m including 85 g/t over 1m, and 28.45 g/t over 2.51m including 55 g/t over 1.18m. Development work recently commenced on the Premier portal and decline which will access the Prew Zone anticipated in early 2024 prior to mill start-up and initial gold production. After completing 16 holes at Prew, drilling shifted to Big Missouri and the Day Zone where two drill rigs have since completed 5,368 metres of drilling in 62 drill holes. Assays for these holes are pending. (TSX: AOT; OTCQX: AOTVF) News Release
Snowline Gold released assay results form two additional exploration holes drilled on its Rogue Project's Valley target in Canada's Yukon Territory. Both holes-drilled to the northeast as opposed to the usual southwest orientation of holes at Valley-demonstrated consistent and considerable widths of strong mineralization in different parts of the system. Hole V-23-054 returned 424.0 m of 1.43 g/t Au, downhole from bedrock surface, expanding the known width of mineralization across the southern extent of the well mineralized zone at Valley. In a separate interval in the same hole, the final 30.0 m downhole length averaged 0.70 g/t Au, representing a newly recognized area of deep mineralization at Valley that remains open. Hole V-23-053 returned 387.0 m averaging 1.04 g/t Au. Both holes ended in mineralization. Assays for more than 11,400 m of diamond drilling from Snowline's 2023 exploration efforts remain pending. (TSX-V:SGD)(OTCQB:SNWGF) News Release
Patriot Battery Metals discovered a new high-grade zone near-surface at the CV13 Spodumene Pegmatite in Quebec, with highlights of 12.7 m at 2.46% Li2O including 7.6 m at 3.82% Li2O. The CV13 Spodumene Pegmatite trend extends over a 2.3 km strike through multiple outcrop exposures, of which, 1.1 km has been traced continuously by drilling. Patriot continues to drill westward from CV5 towards CV13 to test potential connectivity. 37 holes for 7,300 m, have been completed in 2023 at CV13. Patriot Battery Metals (TSX-V: PMET) (ASX: PMT) (OTCQX: PMETF) news release
Arizona Metal published first drill assay results form the Western Target at its Kay Mine Project in Arizona. Hole 113 returned 3m of 3 g/t Au, 1.3% Zn and 17 g/t Ag. This drill hole represents the northernmost intercept of a consistent mineralized horizon encountered over a strike length of 735 m on the Western Target. With the completion of recent drill holes, Arizona Metals has drilled a total of 93,000 meters on the Kay property. (TSX: AMC) (OTCQX: AZMCF) News Release
Australia’s Lithium Power International is to be acquired by Chile’s state copper company Codelco for A$385 million, a 119% premium to the closing share price on September 26. The 57c per share deal is the first lithium acquisition by Codelco, which has a government mandate to become a lithium producer. Both company’s have properties in the Maricunga Salar, a district better known for its gold production until now. LPI’s Maricunga project hosts an estimated 1.9Mt lithium carbonate equivalent resources adjacent to Codelco's Maricunga property. LPIs board recommend that shareholders vote in favour of the deal. Lithium Power International ASX LPI news release
A US Federal judge has ruled that brokerages whose clients engage in naked short selling, are liable for their actions. Federal District Court Judge Lorna Schofield of the Southern District of New York issued an opinion and order on September 29 in the case of Harrington Global Opportunity Fund versus CIBC World Markets et al which denied the defendants’ motion to dismiss Harrington’s market manipulation claims of spoofing. Judge Schofield found that broker-dealers may be primarily liable for manipulative trading initiated by their customers because they serve as “gate-keepers” of trading on securities exchanges, and have a “continuing responsibility to ensure that their customer’s order flow ... is in compliance with all applicable rules, regulations and laws and detect and prevent manipulative or fraudulent trading … under the supervision and control of the firm.” News release
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