Morning Briefing: Anglo Invests C$24M into Canadian Nickel Comopany

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

Today is Wednesday February 8th.

On Tuesday gold treaded water overnight between $1885 and $1890 per ounce until the price management team decided to push the price $12 lower into the London a.m. fix.  Silver rallied a bit in the early a.m. hours, trading as high as $22.54 per ounce before getting price-slammed in the paper market after Asia closed for the evening. Both metals sprung to life in response to whatever Fed-speak word salad was iterated by Jay Powell, who gave a speech to the Economic Club of Washington, DC. Gold shot up to as high as $1898 and silver bounced back up to $22.45. Both metals yo-yo'd along with the stock market as short-term day traders tried to digest exactly what it was Powell was trying to communicate. Gold ended up slightly higher than Monday while silver closed slightly lower. Gold has so far held an uptrend line of support while silver appears to have broken down somewhat technically. 

The mining stocks responded to the Powell voodoo, which stimulated a big rally in the general stock market, with the GDX rising 1.4% and bouncing off and up from its 50 day moving average. The Mining Stock Journal said that it is still looking for a bit more of a pullback in the precious metals sector which should set up the next leg higher.

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…Arizona Sonoran Copper Company

ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.

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

Liberty Gold updated the resource estimate for its Black Pine oxide gold project in Idaho, USA. The update adds 126,726m of drilling in 528 reverse circulation and core holes to the July 2021 maiden resource. Black Pine now hosts an indicated resource of 157.3Mt grading 0.52gpt containing 2.6Moz and an inferred resource of 35.2Mt grading 0.43gpt containing 483,000oz. The updated resource is a 52% increase in indicated ounces and a 31% increase in inferred ounces compared with the maiden resource. Liberty said that within this is a high-grade zone with an indicated resource of 47.4Mt grading 1.02gpt containing 1.5Moz, and an inferred resource of 7.3Mt grading 0.93gpt containing 548,000oz. The company attributes the resource boost to the discovery and subsequent 154 holes drilled in the Rangefront zone, the expansion and/or amalgamation of several existing zones, and definition drilling in previously-defined areas of inferred mineralisation. Liberty Gold (TSX: LGD; OTCQX: LGDTF) News release

American Pacific Mining reported gold and copper rock chip samples from a program conducted by Kennecott Exploration, a division of the Rio Tinto Group, at the Madison Copper-Gold Project in Montana. Highlighted samples returned 9.93 g/t gold, 32.4 g/t gold and 39.6 g/t silver, and 7.36 g/t gold, 38 g/t silver and 6.9% copper. A total of 73 rock chip samples were collected from 5 specific exploration targets. Madison is under a joint-venture earn-in agreement, whereby Rio Tinto may earn up to 70% of the project by spending US$30 million. American Pacific Mining trades on the CSE with USGD and on the OTCQX with USGDF. News Release

Asante Gold reported results from its ongoing exploration drilling program at the Aboduabo prospect located at the Bibiani - Chirano mines corridor on the Sefwi Greenstone Belt in Ghana. New drill intercepts included 43.1m of 3.07 g/t gold from 169.5m depth, including just under 10m of 6.85 g/t and 26m of 3.12 g/t from 121m depth. The Aboduabo prospect is located approximately 5km north of the Chirano Process Plant and 10km south of the Bibiani Process Plant. Bibiani and Chirano together have current mineral reserves of ~2.8Moz and Measured and Indicated mineral resources over 4.5Moz. Asante Gold trades on the CSE with ASE and on the OTC with ASGOF. News Release

Canada Nickel Company has obtained a C$24 million investment from Anglo American at C$1.95 per share, a 10% premium to its  30-day volume weighted average price, giving Anglo a 9.9% stake in the company. Canada Nickel will also enter into a binding offtake term sheet with Anglo giving the major an exclusive right to purchase up to 10% of nickel, iron and chromium contained in the magnetite concentrates, and any corresponding carbon credits, from the its Crawford nickel project in Ontario, Canada until the delivery of 65kt of nickel or a term of 15 years, whichever is later.  The junior has also struck a testing agreement to assess opportunities to add value to Crawford from Anglo’s FutureSmart Mining technology program. Canada Nickel Company (TSXV: CNC) (OTCQX: CNIKF) News release 

Orla Mining has released its first drilling results on the South Railroad Project in Nevada since it acquired the project last year. It said infill and selected step-out drilling was performed to upgrade inferred resources at the Pinion SB, POD, Sweet Hollow and Jasperoid Wash oxide deposits, define potential new resources at the Dixie mineralized zone, and advance the early-stage LT target. A resource update is expected in the second half of 2023. Highlights at Pinion SB included 53.3m grading 0.85g/t in oxide in hole 1, 25.9m grading 4.87g/t in hole 15 at POD, and 35.1m grading 0.52g/t at Sweet Hollow. Orla said it believes there are immediate opportunities to upgrade and potentially increase oxide resources, which could ultimately strengthen project economics. Orla Mining (TSX: OLA) (NYSE: ORLA) news release

i-80 GOLD said drilling identified a new zone of high-grade gold mineralization in its first hole drilled to test a new target area at the Ruby Hill Property in Nevada. Step-out hole 65 intersected high-grade mineralization with a highlight of 10.7m grading 12.3g/t in the 428 Zone, which is 300m from the Ruby Deeps Zone. This hole was drilled to test continuity of a historic intercept below the Archimedes pit by Homestake Mining, which intersected 5.5m grading 15g/t. Drilling is currently focused on expanding mineralization within the Hilltop Zones and the Blackjack horizon, both in close proximity to the underground infrastructure currently being planned and permitted". i-80 GOLD (TSX: IAU) (NYSE: IAUX) news release

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