Morning Briefing: Agnico Eagle Mines to acquire O3 Mining

Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Ian Wagner

Its Thursday, December 12th.  

Momentum in gold continued yesterday as the yellow metal added another $38 to its price. After CPI numbers came in line with expectations and traders began feeling more confident in another fed rate cut, gold moved on up to close the day at $2756. Silver also found some green yesterday, but trailed gold on a percentage basis, rising 6/10ths of a percent and closing the day at 32.96 on its front month contract. In central bank news, the Swiss National Bank cut its interest rate by 50 basis points which is the biggest reduction in 10 years. The European Central Bank is expected to cut once again later today. The Brazilian central bank hiked rates by 100 bps last night and said expect another 200 bps to come.

We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor. 

This episode of Mining Stock Daily is brought to you by…Vizsla Silver

Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 375,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at ⁠https://vizslasilvercorp.com/⁠

And Here’s what you need to know this morning….. 

Agnico Eagle Mines is to acquire O3 Mining in a friendly transaction. Agnico Eagle will acquire O3’s shares at $1.67 per common share in the take-over bid. The offer is valued at approximately $204 million on a fully diluted in-the-money basis. This is a 58% premium to O3’s closing price yesterday. O3 Mining's primary asset is its 100%-owned Marban Alliance property located near Val d'Or, in the Abitibi region of Québec, and is adjacent to Agnico Eagle's Canadian Malartic complex. The Marban Alliance property includes the Marban deposit, which is an advanced exploration project that could support an open pit mining operation similar to Agnico Eagle's Barnat open pit operations at the Canadian Malartic complex.  O3  mining trades on the(TSXV: OIII) (OTCQX: OIIIF) News Release

Fireweed Metals announced further drill results from more than twenty drill and exploration holes at its Macpass Project in  Canada’s Yukon territory. Highlights include Hole 015 returned 63 m of 6% zinc, 0.9% lead and 10 g/t silver from 29 metres downhole. Hole 013 returned 65 m of 5% Zn, 0.42% Lead, and 15 g/t Silver, from 21.98 m downhole. The company notes that the drill hole information released primarily comprise intervals of stratiform to massive zinc, lead, silver sulphide mineralization and vein, replacement, and breccia style mineralization from the eastern Boundary Zone area. To date, the Company has released all 49 holes drilled in 2024. An updated public drill hole database is expected to be released in Q1 2025. Fireweed Metals trades on the (TSXV: FWZ; OTCQX: FWEDF) News Release 

Integra Resources provided results from infill, geotechnical-metallurgical, and exploration drill program at the Wildcat Deposit in Nevada. The three infill and geo-metallurgical holes returned .52 g/t oxide Au over 62.5m, .38 g/t over 64.6m and .27 g/t over 147.5m. A total of 7 highly prospective exploration holes were drilled materially outside the 2023 PEA pit shell and primary mineral resource area. Although no significant high-grade interval was intercepted, WCCD-0016 returned 0.25 g/t non-oxide Au over 213.8m with pervasive alteration, hydrothermal brecciation, and visible Quartz veins. Additional drilling will focus on the breccia pipe structure, as part of the long-term strategy to unlock value at Wildcat. (TSXV: ITR) (NYSE American: ITRG) News Release

Heliostar Metals say they plan to restart the mining operations at the newly acquired La Colorada Mine in Mexico. The Company has undertaken a work program at the historical Junkyard Stockpile at the La Colorada Mine and plans to recommence crushing and stacking in January 2025. The planned restart would initially augment and then replace the current gold production from residual leaching at the mine. Results of the drilling, resource modelling and metallurgy for the Junkyard Stockpile, in conjunction with an expansion of the Creston Pit, will be published in a technical report in January 2025. The drilling program also delineated a historic tailings facility beneath the Junkyard Stockpile. Additional metallurgical testing, beyond the timeline of the technical report, is required on the tailings. Should this be positive it represents a potential future upside opportunity. (TSXV: HSTR) (OTCQX: HSTXF) News Release

Barksdale Resources says the ongoing exploration work at the Sunnyside project in Arizona has intercepted significant base metal sulfide mineralization at depth. Mineralization is best described by Barksdale's geologists as carbonate replacement deposit style, and the mineralogy of the sulfide assemblage includes copper-rich phases, a possible indication of proximity to a porphyry source. The company provided core photos this morning in the news release, although it is cautioned that assays remain pending. (TSXV: BRO) (OTCQX: BRKCF) News Release

Scottie Resources announces new assays from the Scottie Gold Mine in British Columbia’s Golden Triangle, including the discovery of a new zone, located south of the existing mine. The new assays related to a single drill hole drilled from the south of the mine, testing new concepts and targeting areas inaccessible to previous drill efforts. The hole resulted in the discovery of the Wolf Zone, boasting an intercept of 6.85 g/t gold over 5.85 metres, and a strong N Zone intercept of 37 g/t gold over 4 metres.  The company plans an upcoming mineral resource estimate.  Scottie trades on the TSXV: SCOT & OTCQB: SCTSF - News Release

Goliath Resources reported drill results from its 2024 field season, which the company says resulted in a significant expansion of the mineralization at the Bonanza Zone on the Surebet discovery within the Golddigger property in the Golden Triangle. Highlighted results included 7.27 oz/t AuEq over 1m within a larger interval consisting of 45.60 g/t AuEq or 1.5 oz/t AuEq over 5.95 meters starting at 71m below surface. The Bonanza Zone remains open in all directions, including the new Deep Zone was discovered at 1,239 meters below surface. (TSX-V: GOT) (OTCQB: GOTRF) News Release

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