Morning Briefing: American Pacific to Acquire Cleaview Gold

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Tuesday May 2nd.

Monday morning the gold price did a Roman candle formation, shooting higher on the announcement that the FDIC would simultaneously seize First Republic Bank and sell it to JP Morgan. The term "sell" is deceptive, as the deal or more like JP Morgan borrowing $50 billion at a subsidized rate from the FDIC to take over the bank's deposits and loans and repay the $25 billion put up by other banks to stabilize FRC a few weeks ago plus, with emphasis on the term plus, the FDIC is providing a loss-sharing agreement on the bank's housing mortgages and commercial real estate loans. The Mining Stock Journal said that the gold price, which shot up from $1,986 to $2015 and then immediately dropped back down to $1988, was likely responding to the fact that the FDIC and the Government would heavily subsidize JP Morgan's acquisition, which will be profitable Government-sponsored bailout of  First Republic's depositors with deposits in excess of the FDIC $250k deposit insurance. It also said that it is likely that the gold price was whacked as quickly as it jumped because of price management intervention. The smoking gun was the disclosure by Janet Yellen after the stock market closed that the Treasury could default as early as June if the debt limit ceiling is not suspended or raised. This would have been extraordinarily gold bullish news if Yellen had released it before or during market hours. Silver traded with gold, running from $25.20 to as high as $26.20 before falling back and settling at $25.24. The mining stocks were down slightly on the day.

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…Western Copper and Gold.

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

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

American Pacific Mining has entered into a definitive agreement, pursuant to which the Company will acquire all of the issued and outstanding common shares of Clearview Gold. Clearview is a private exploration company that is part of the NewQuest Capital company. Clearview owns three gold projects in Nevada, including the Ziggurat Project, located on the northern end of the Round Mountain trend and proximal to the Northumberland Mine, is currently under a joint venture agreement with Centerra Gold. Under the terms of the Agreement, American Pacific will pay CDN $200,000 and issue 11.5 million common shares. (CSE: USGD / OTCQX: USGDF) News Release

Arizona Sonoran copper provided an update on metallurgy and improvements to the TruStone Facility. The company says they continue to improve metallurgical recoveries through ongoing Pre-Feasibility (“PFS”) and Feasibility Study (“FS”)-level columns located onsite and in TruStone. The 90-day Stockpile oxide cycle is now complete with 90% recoveries of each column’s head grade. Preliminary results from the Parks/Salyer enriched columns after 160 days are tracking to approximately 80% recovery. The company also mentioned the refurbishment of the TruStone Facility is near completion. This is a former factory located between the Parks/Salyer and Cactus deposits and accessed by the paved access road will also serve as an auxiliary building to support the future Solvent Extraction/Electrowinning (“SX/EW”) plant. Arizona Sonoran Copper trades on the TSX with ASCU and on the OTCQX with ASCUF. News Release

Minera Alamos provided their year end financials for 2022 this morning. Total gold ounces recovered and sold in 2022 was 11,667 ounces from the Santana Project with inventory on the pad of 6,950 ounces as at December 31, 2022. Revenues totalled d $21,726,211 with gross profit of $8,178,927. This year, Minera is anticipating an increase in mining, stacking and leaching activities in Q2 relative to Q1 utilizing the existing pad capacity at Santana. Updated operational plans have identified approximately 4000 ounces of gold from the Nicho Norte pit which are available for short term mining activities in the coming quarter ahead of the planned expansion of mining operations. Minera Alamos trades on the TSXV with MAI. News Release

Solaris Resources confirmed the discovery of a second and more intensely mineralized porphyry center 350m south of the original discovery at Warintza East. The new discovery holds potential for notably improved grades in further growth at the Warintza Project in Ecuador. SLSE-28 was drilled vertically to the limit of the KD-200 rig at 309m with strong mineralization from 19m to the end of the hole characterized by chalcopyrite-pyrite-molybdenite in stockwork veins and disseminations, similar to the high grade portions of the Warintza Central deposit. Full assay results from SLSE-28 are expected within four to six weeks while follow-up hole SLSE-29 (in progress) is being drilled southeast from a recently constructed platform testing the extension of this new porphyry center up to 200m to the east in this area. (TSX: SLS; OTCQB: SLSSF) News Release

Lavras Gold saysassay results from the maiden drilling on the Vila Marieta claim suggest they have identified the southwest surface extension of its Cerrito Gold Deposit. Results included 28m of 1.3 g/t gold from surface. This is 85% higher in grade than the average gold grade at Cerrito. Vila Marieta and Cerrito are among the 23 known gold targets on the company’s LDS Project in southern Brazil. The project has a resource of a half million ounces with an average grade of .7 g/t. Lavras Gold trades on the TSXV with LGC and on the OTCQB with LGCFF. News Release

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