Morning Briefing: Ascot raises C$200M project finance

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


Today is Monday December 12th. 


Last week gold rose from $1780 per ounce to $1810, up $30 on the week. Silver rose from $22.40 per ounce to $23.72, up $1.32 or 5.8%. The Mining Stock Journal commented that the precious metals sector once again diverged positively from the general stocks. The newsletter added that the precious metals sector is starting to flash a bull move in bright lights - its performance vs. the stock market being just one of the quote unquote spotlights. 

Another such indicator is the performance of the mining stocks. The GDX, though down marginally last week, is up 44.6% since late September. The Mining Stock Journal thus believes that the precious metals sector is in the early stages of what could be a bull move that will take many market observers by surprise. It added that eventually the Fed will be forced to reverse course and start printing money again or face an economic collapse. When that pivot occurs the precious metals sector will go parabolic.

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

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….

Ascot Resources entered into non-binding letters of intent for C$200 million in project financing for construction of the Premier Gold Project in British Columbia. It will consist of a US$110 million gold and silver streaming agreement with Sprott Resource Streaming and Royalty and a C$45 million strategic equity investment by Ccori Apu, a portion of which will be structured as Canadian Development Expenditures flow through shares, such that the total proceeds will be C$50 million. Ccori Apu’s shareholders are the majority shareholders of Compañía Minera Poderosa, which owns and operates a 300,000oz/y high-grade gold mine in northern Peru. Plant pre-commissioning to start in Q4 2023 and first gold pour anticipated to occur in early 2024. Sprott will receive 8.75% and 100% of gold and silver production, respectively at 10% of prevailing gold and silver prices. Ccori Apu will own 19.9% of Ascot. Ascot Resources trades on the TSX under AOT and on the OTCQX under AOTVF. News release


FPX Nickel announced the first step-out drillhole results confirming continued near-surface lateral extension of strong nickel mineralization at the Van Target at the Decar Nickel District in British Columbia, 6km from the Baptiste deposit.  The first three widely-spaced holes returned some of the strongest results in the District's history, with a highlight of intersected 346.3 m grading 0.133% DTR Nickel from the start of bedrock at 51.3 m downhole to the end of hole 10, including 136.0 m of 0.143% DTR Nickel. Nickel mineralization at Van is the same as Baptiste, occurring as disseminated awaruite. The company said that based on drilling to-date from 2021 and 2022, it has delineated consistently strong near-surface nickel mineralization over an area of 1 km long by 1 km wide, to downhole depths over 300 m. FPX Nickel trades on the TSXV under FPX and on the OTCQB under FPOCF. News release


McFarlane Lake Mining reported early drilling results from its High Lake property in Ontario, where it has completed the first five holes of a 8,000 to 10,000m program. Highlights included 9.75m grading 9.82 g/t gold incluing 5.38m grading 15.35 g/t in hole MLHL-22-28. McFarlane Lake Mining trades on the (NEO: MLM). News release


Bonterra Resources announced more results from the ongoing infill drilling campaign at the Barry underground project in Quebec. The Company commenced a 125,000m of which 21,800m in 51 holes has been completed as it seeks to convert Inferred resources into Indicated resources by decreasing the drill spacing to 25 m. Highlights included 4.4m grading 21.9 g/t Au in hole 541. Bonterra Resources trades on the (TSXV: BTR) (OTCQX: BONXF). News release


Denison Mines announced the successful completion of the neutralization phase of the Phoenix in-situ recovery Feasibility Field Test at its Wheeler River project in the Athabasca Basin in northern Saskatchewan. Sampling of monitoring wells around the test site confirmed the successful restoration of the Leaching Zone to environmentally acceptable pH conditions. The neutralization phase was designed to confirm certain environmental assessment assumptions and verify the efficiency and effectiveness of the neutralization process planned for ISR mining at Phoenix. Denison Mines trdes on the (TSX: DML) (NYSE American: DNN). News release

 

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The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.

Trevor HallGold, Silver, GDX