Morning Briefing: Arizona Sonoran Published Updated Cactus Project Resource

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

Today is Monday October 16th. 

After being beaten down nine days in a row and 10 of 11 days, gold bounced hard last week, rising every day except Thursday and running from $1845 per ounce to $1941. It was up over $60 alone on Friday. The Mining Stock Journal said that on Friday, the gold price started running in early Asian hours, indicating strong demand from buyers of the physical form of the metal, and continued on a parabolic path during the paper gold markets of London and NY, indicating that the shorts scrambled to cover. Silver also rallied strongly last week, including a big move the prior Friday, running from $21.15 perounce to as high as $23 and closing the week at $22.90, up $1.75 including the prior Friday. 

The Mining Stock Journal noted that the COT report showed that the bullion banks went net long silver while the hedge funds became net short silver. In addition the bullion banks continue to aggressively reduce the net short in gold while the funds reduce their net longs. This is a very bullish indicator for the precious metals sector. The GDX followed the metals higher, spiking oup 5.1% for the week. The Mining Stock Journal has become very bullish on the precious metals sector, commenting that all of the relevant factors are in alignment. The newsletter believes that a move similar to late 2008 is underway.

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….

Arizona Sonoran Copper Company released a Resource Update for the combined Cactus, Stockpile and Parks/Salyer deposits that form its Cactus Project in Arizona , which is expected to form the basis for a Pre-Feasibility Study in the first quarter of 2024. The PFS will target a 45-50 ktpa copper cathode heap leach and SXEW operation. The measured and indicated resource is now 445.7Mt grading 0.58% copper containing 5.17Blb of copper, an increase of 221%. The leachable resource is now 357.6Mt grading 0.62% copper for 4.43Blb, a 316% increase from the previous resource. Cactus also has another 2.21Blb of inferred resources. The company said it had a discovery cost of just half a cent per pound. The resource is based on 160,420m of drilling in 900 holes. Ongoing drilling will focus on Parks/Salyer southern extensions; exposure to a 4km mine trend with pockets of mineralization known south of Parks/Sayler, in the Gap Zone and NE of Cactus East, andto continue decreasing drill spacings to 38m for future studies. Arizona Sonoran Copper Company (TSX:ASCU) News Release

Brixton Metals published the first batch of 2023 drill results form the Trapper Gold Target on the the Thorn Project in British Columbia. Results included 98m of .62 g/t Au from a depth of 98m and included 6m of 5 g/t. Another drill hole returned 55.71m of .82 g/t Au and included 7m of 2.67 g/t. These drill results extend the Trapper gold mineralization 250m down-dip along the Lawless fault.  The 2023 program at the Trapper Gold Target totaled 6,625.24m of drilling. 11 drill holes remain pending. (TSX-V: BBB, OTCQB: BBBXF)  News Release

LCL Resources received approval for the environmental impact assessment (EIA) for its Miraflores gold project in Risaralda, Colombia. The EIA approval by Risaralda environmental authority CARDER is the final substantial approval required for the development of Miraflores. Miraflores hosts 870,000oz of the company’s 2.6Moz Quinchia gold project. LCL also owns the Tesorito and Dosquebradas deposits which form part of its Quinchia project. A  2017 feasibility study on Miraflores detailed an underground mining operation to produce 45,000ozpa of gold and 22,600ozpa of silver over about 9.5 years. LCL Resources  ASX:LCL News release

Newmont reached an agreement with the National Union of Mine, Metal, and Allied Workers of the Mexican Republic to end the strike initiated on June 7 at its Peñasquito mine in Zacatecas. The agreement was submitted to the Mexican Labor Court, which gave its approval, thus ending the strike. Under the agreement Newmont will not pay additional profit sharing for 2022, the reason for the strike. If, as a consequence of the strike, Peñasquito reports no profit in 2023, Newmont agreed to pay a bonus next year, equivalent to two months’ wages. Newmont will pay roughly 60% of wages lost, since the strike began to mitigate the financial impact the strike had on its workforce. As part of the separate, annual wage negotiations under the Collective Bargaining Agreement, Newmont and the Union agreed to an 8% wage increase, in line with Mexican mining industry wage increases for 2023.  Newmont NYSE NEM news release

Troilus Gold reported an updated Resource Estimate for the Troilus gold Project in Quebec, Canada, within the Frôtet-Evans Greenstone Belt. Highlights include an Indicated Resource of 508.3Mt grading 0.69g/t AuEq for 11.21Moz, representing an increase of 126% in ounces and a 187% increase in tonnes compared to the 2020 estimate. It also has 1.8Moz in inferred resources. The company said more than 99% of the resource in the Indicated category is classified as amenable to Open Pit mining from zones Z87, J, X22, and Southwest, which will form the basis of the Feasibility Study anticipated for completion in early 2024. Significant definition at the Southwest Zone and the new discovery of Zone X22 were major new contributors to the open pit resource, accounting for about 28% of the Indicated ounces. Troilus Gold (TSX: TLG; OTCQX: CHXMF) news release

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