Morning Briefing: Aldebaran Reports Final Drill Results from Altar

Welcome to Mining Stock Daily. I’m Trevor Hall. 

Today is Tuesday October 3rd. 

Gold was smashed, down $21 from Friday, closing yesterday at $1846 per ounce. But once again the entire smash occurred after Asia closed. As this is being written, gold is down another $9 in early, pre-Asia trading hours Globex computer trading. Silver was mauled for over $1, closing the afternoon session at $21.29 per ounce. As this is being written early Monday evening, silver is down another 21 cents, testing the $21 level. The Mining Stock Journal said that, in all probability, this is likely an excruciatingly painful capitulative sell-off that will lead to a monster move higher.

The newsletter added that the trading action and panic selling is eerily similar to action in the precious metals sector in September and October 2008. As such, the newsletter also believes that a massive adverse credit market event is brewing, also similar to 2008 but one that will be worse than the great financial crisis. 

The mining stocks, which have been decimated since early May were throttled hard Monday, with the GDX down 3.4%. The Mining Stock Journal said that it has been building cash to deploy in junior mining stocks and call options on large cap producers once it gets comfortable that the bottom has been found.

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….

Arizona Sonoran Copper Company said the City of Casa Grande approved the rezoning for the northern parcel of the MainSpring Property at its Parks/Salyer South property to Industrial use. The rezoning allows ASCU to begin drilling and an exploration plan is being prepared. The southern parcel of Parks/Salyer South is still in process for rezoning. Additionally, the Company acquired a 2.5 acre Mineral Exploration Permit within the Parks/Salyer deposit. Together, these mean the company has gained a low-risk, high impact exploration target and operational flexibility for future operations. Arizona Sonoran Copper Company (TSX:ASCU) news release

Chesapeake Gold announced a new discovery at its Lucy gold project in Sinaloa, Mexico.  In total, 14 holes for 1710m were completed in the 2023 campaign. Highlights included 24m @ 6.1g/t gold from surface. The company ais the drill results suggest a mineralized skarn outcrops at surface, with a system traced over a strike length of at least 500m. Chesapeake plans to undertake further detailed mapping, rock sampling and trenching as well as mineralogical and petrographic studies prior to the next phase of drilling. Chesapeake Gold (TSXV:CKG, OTCQX:CHPGF) news release

Aldebaran Resources reported results for all unreported drill holes from the 2022-2023 field campaign at the Altar copper-gold project in San Juan, Argentina. All holes hit mineralization and expanded the mineralized footprint of Altar by several hundreds of meters in multiple directions. Planning is currently underway for the 2023-2024 field campaign, with four drill rigs already secured. It is anticipated that the Company will begin mobilizing drill rigs to site within the next week. Highlights included 649.4m @ 0.54% CuEq from 764.2m depth in hole 229. Aldebaran Resources (TSX-V: ALDE, OTCQX: ADBRF) news release

Heliostar Metals reported positive preliminary metallurgical test results for a Rescoping Study of the Ana Paula project in Mexico with 80.4% average gold recovery from seven composites representative of the High Grade Panel. Gravity testwork suggests greater than 31% of the gold may be gravity recoverable. Testwork confirms the Company's interpretation that recoveries from high-grade gold mineralization can utilize simpler, lower cost, conventional milling processes based on a conventional 75 micron grind size and Carbon-in-Leach (CIL) flowsheet. Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) news release

Canadian Copper announced a new Resource Estimate for the Murray Brook Project in New Brunswick, Canada. The Measured and Indicated Sulphide Resource Increased by 18%, with 98% of the resource now in the M&I categories. It hosts 21.1Mt grading 0.45% copper, 0.91% lead, 2.49% zinc, 0.56g/t gold and 26.2g/t silver for a 1.41% copper equivalent. The project contains 211.7Mlb of copper, 421.1Mlb of lead, 1.2Blb of zinc, 378,000oz of gold and 26.2Moz of silver. As next steps, the company will undertake a 12-hole, 3,000m drill program to determine the extent of a new copper and gold zone, initiate an updated Preliminary Economic Assessment  and commence regional exploration across the 18 km Caribou Horizon corridor. Canadian Copper (CSE: CCI) news release

West Red Lake Gold Mines provided an update on the work and path forward for both the Madsen gold mine and its Rowan project in the Red Lake District. The company says an additional 35,000m drill program planned for Rowan is to commence early next year. The company is also looking to complete a PEA on the entire portfolio of properties by Q2 of 2024, and an updated mineral resource estimate for Rowan by Q4 next year. At Madsen, the company aims to complete 38,000m of underground drilling by the end of next year along with 3,200m of underground development for access and required infrastructure to support underground drilling. All in all, West Red Lake Gold Mines is looking at the year 2025 to bring Madsen back into production. (TSXV:WRLG) News Release

Orezone and West African Resources intend to enter into a memorandum of understanding to investigate synergies on their respective mining projects that could unlock significant value for all stakeholders. Orezone CEO Patrick Downey said “This MOU represents an effective way to generate long-term value from each of our assets in Burkina Faso. With the broader industry continuing to face cost inflation, this MOU represents an important opportunity to further improve our cost structure and create further value for our shareholders.” Orezone’s Bomboré and WAF’s Sanbrado operating centers are located within 14km of each other, and host a M&I Mineral Resources of 5.1Moz and 3Moz, respectively. WAF is also constructing the 5.9Moz M&I and 1.8Moz Inferred Kiaka project 45km south of Sanbrado with production planned to commence in 2025. (TSX: ORE, OTCQX: ORZCF)(ASX:WAF) News Release

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