Morning Briefing: Ascot Publishes New Drill Results from Sebakwe Zone

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

Today is Monday, August 22nd

The gold price was pounded $55 per ounce lower last week while silver was scalped for nearly $2 per ounce over the week, as there seemed to be relentless selling of paper gold and silver markets all week long in both London and New York. The sell-off was compounded by hedge funds, which piled back into the dollar index and paired that by shorting the euro, yen and paper precious metals. The Mining Stock Journal said that the last two or three weeks of August are almost always accompanied by a general lack of buyer enthusiasm for the precious metals sector. That said, data shows that India may be waking back up after a month-long hiatus from the market. The ex-duty import premiums show India was importing kilo and dore bars Friday. With the price of gold $200 lower since India went into hibernation, banks with unallocated gold bar short exposure will feel pain when India's demand cranks up in a couple weeks. In addition, data shows that China's interest in buying gold increased in August. 

After a brief three-week bounce in correlation with the stock market, the mining stocks headed lower last week. The Amex Gold Bugs Index fell to just below 200. It hit a low of 192 in late July. The GDX was clocked for 7.2% last week. The Mining Stock Journal said that, at some point, there will be a torrid move higher in the precious sector, though it is loath to place a timeline prediction on that call. That said, it is putting together a list of some of the best values among producing and junior mining stocks, which have been historically undervalued relative to the prices of gold and silver and relative to the general stock market.

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…

Ascot Resources announced the second batch of assay results from the 2022 exploration drill program at its Premier Gold Project in the Golden Triangle of British Columbia, with results from surface exploration drilling at the Sebakwe Zone, 600m from the Premier mill. Highlights included 2.73m grading 11.83 g/t Au and 56.3 g/t Ag in hole 2394 including 1.4m grading 20.1g/t Au and 82.4g/t Ag. Ascot initially planned on drilling 10 holes for 4,000m at Sebakwe but based on encouraging visual indications of mineralization and structure, this was increased to 15 holes for 6,110m. Ascot said drilling at Sebakwe increased the mineralized strike length fivefold from 70 metres to 350m and it achieved its main objectives in establishing the high-grade tenor, identifying more coarse, visible gold, and growing the mineralized zone with step-out drilling. Ascot Resources trades on the TSX under AOT and on the OTCQX under AOTVF. News release

AbraSilver is back this morning with a new batch of assay results from four diamond drill holes from the Phase II program on its Diablillos property in Salta, Argentina. Wide zones of high-grade mineralization were encountered in all four holes.  Hole 37 was an in-fill hole drilled vertically in the Tesoro zone and contains the thickest, high-grade silver-gold intercept ever encountered on the Project. That hole returned 155m at 289 g/t AgEq in oxides starting at a down-hole depth of 71m. The hole included a 30m interval grading 609 g/t AgEq. Hole 26 was a step-out hole in the Oculto NorthEast zone, located well beyond the conceptual open pit boundary, and intersected several zones of high-grade gold mineralization, including 37.5m at 187 g/t AgEq. Once all assay results from the Phase II program are received, the Company will prepare and publish an updated Resource estimate, which is anticipated later this year. AbraSilver trades on the TSXV with ABRA and on the OTC with ABBRF. News Release

Aton Resources provided assay results from 11 holes from the Phase 2 diamond drilling programme at its Rodruin gold project in Egypt. Highlights included 53.4m grading  2.99g/t Au and 5.3g/t Ag in hole 82 at Aladdin’s Hill. Aton is working towards establishing a maiden mineral resource estimate. Aton Resources trades on the TSXV under AAN. News release

Prospector Metals announced diamond drill results from the Toogood property on New World Island in Newfoundland, Canada. The 2022 maiden drill program consisted of 26 hole for 2,065m to test the Quinlan, Titan and Sherwood targets. Highlights included 3.65m grading 23,9g/t gold in hole 8 at Quinlan including a sub interval of 1.95m grading 43.22g/t. Drilling at Quinlan extended the known surface expression of a gold-bearing felsic dyke to 200m in strike length and 120m downdip. Visible gold was identified in 15 of the 19 drill holes. Prospector Metals trades on the TSXV under PPP and on the OTCQB under ETHOF. News release

P2 Gold reported the first results of its 2022 Drill Program at its gold-copper BAM Project in the Golden Triangle in British Columbia. Highlights included 44.94m grading 1.49 g/t gold and 2.71 g/t silver in hole 7 including a sub interval of 12m grading 2.19 g/t gold and 3.92 g/t silver. The company said drilling has defined a horst, or uplifted block of the underlying dolostone surrounded by siltstones, mudstones, and conglomerates to the east, and just siltstones and mudstones with selective layers having seen multiple episodes of brecciation, silicification and intense sericite alteration and several episodes of pyrite mineralization. P2 Gold trades on the TSXV under PGLD. News release

In preparation for its maiden resource estimate on the Cabaçal copper-gold VMS Deposit in Brazil, Meridian Mining says they have delivered the Cabaçal database to the resource specialist group H&S Consultants. The estimate in expected to be released at the end of the 3rd quarter. Currently, there are several zones of open copper-gold and gold only mineralization along the Cabaçal deposit's strike length, and a second resource update is forecasted for early 2023 to incorporate results from these extensions. Ongoing and future diamond drill hole programs are also planned to test near-mine targets like the C4-A gold-silver discovery and to confirm and expand the Santa Helena deposit. Meridian trades on the TSX with MNO. News Release

That concludes today’s morning briefing.

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